We have been reading an interesting book by Andy Kessler called Eat People: And Other Unapologetic Rules for Game-Changing Entrepreneurs (get it here). Kessler introduces several fascinating new ways for businesses to think in today's economy.

One of his 12 key rules is "When in Doubt, Get Horizontal." The old-line vertically integrated business (in your case, the "full service accounting firm") model is dying. If there is something you do really well, why not sell, sub-contract, re-package, or outsource it to others??? Then let somebody else worry about the infrastructure, billable hours, collections and other headaches that don't bring in revenue. Your horizontal offering can now be sold everywhere.

Here is an example I frequently see: professional services corporations (PC or PA) that are C-corporations, such as physician practices. They can't utilize the Georgia Retraining Tax Credit since they pay limited Georgia income taxes.

Well, I went out and found a CPA firm with the expertise to help these practices convert from a C-corporation to an S-corporation, and it has a great ROI (won't bore you with details here). Unfortunately, I can't introduce this CPA firm to a client of another CPA firm without causing trouble, if you know what I mean! But, if this were a separate, self-contained offering, then other CPA firms might well want to bring it to their clients who need it. This same concept could potentially be leveraged nationally.

What capabilities do YOU have sitting on your "full service" bench that could bring in more revenue? Think horizontal, not vertical to bring in more revenue!