Nikonomics - The Economics of Small Business 53 - From Employee to Owning a $3.5M Accounting Firm in Only 2 Years with Patrick Dichter
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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