53 - From Employee to Owning a $3.5M Accounting Firm in Only 2 Years with Patrick Dichter

Nikonomics - The Economics of Small Business

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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