Nikonomics - The Economics of Small Business
My mom always told me "There's no such thing as a dumb question... Only dumb people!"
What she meant was that those who DON'T ask questions are the dumb ones! At least, that's what makes me feel better about asking so many questions :)
I've bought, run & sold dozens of companies in the SMB space, with multiple 7-figure exits. Over the past 5 years my companies have generated over $100M of revenue and Millions of dollars of shareholder value.
Now I let my curiosity drive as I interview Entrepreneurs and ask them to walk me through how their businesses work.
Nikonomics is a place for curious Entrepreneurs and Wantraprenuers hungry to learn. So come join our big group of DUMB people, ask some questions and maybe we will learn a thing or two together.
Follow me on Twitter here: https://twitter.com/CoFoundersNik or @CoFoundersNik
Nikonomics - The Economics of Small Business
53 - From Employee to Owning a $3.5M Accounting Firm in Only 2 Years with Patrick Dichter
Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Patrick Dichter ( https://x.com/patrickdichter ), the owner of Appletree, an accounting and tax firm he acquired just two and a half years ago. Despite not being a formally trained accountant, Patrick managed to grow Appletree from $1.2 million to $3.5 million in revenue in just two years. In this episode, we dive into the unique challenges and opportunities of buying and growing a business, particularly in the service-based industry. Patrick shares his insights on the benefits of owning an accounting firm, including its recession-resistant nature, high profit margins, and the "sticky" nature of client relationships.
We also explore his strategies for scaling through acquisitions, the importance of clean bookkeeping, and why having a "chip on your shoulder" can be a powerful motivator in business.
Questions this Episode Answers:
- How did Patrick grow Appletree from $1.2 million to $3.5 million in revenue in just two years?
- What are the advantages of owning an accounting firm, even without a background in accounting?
- What challenges did Patrick face in managing a team and integrating new acquisitions?
- How can you successfully scale a service-based business?
- What should entrepreneurs consider when buying a business?
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This week we covered:
01:30 Sponsor Message: Win $100
02:12 Interview with Patrick Dichter Begins
02:18 Patrick's Journey into Accounting
03:16 Understanding Bookkeeping and Accounting
03:46 Why Accounting Firms are Attractive
05:23 Acquiring and Growing the Business
08:47 Financing the Business Purchase
12:40 Transitioning the Business
15:52 Managing and Growing the Firm
16:34 The Demand for Accounting Services
17:06 Challenges in the Accounting Industry
17:35 Connecting with the Accounting Team
18:38 Growth and Expansion Strategies
21:07 Acquiring and Managing New Practices
23:13 Customer Acquisition and Retention
26:17 Rapid Fire Questions
29:46 Podcast and Final Thoughts
