Alright – so today we’ve got the honor of introducing you to Jose Ortiz . We think you’ll enjoy our conversation, we’ve shared it below.
Jose , looking forward to hearing all of your stories today. One of the things we most admire about small businesses is their ability to diverge from the corporate/industry standard. Is there something that you or your brand do that differs from the industry standard? We’d love to hear about it as well as any stories you might have that illustrate how or why this difference matters.
The Scale Collective distinguishes itself within the accounting industry through a unique combination of personalized service and a holistic, strategic approach to tax planning and financial management. Unlike many traditional CPA firms that may emphasize volume and focus primarily on transactional relationships—viewing services like tax preparation as one-off annual tasks—our firm operates on a model designed to foster long-term, value-driven relationships with our clients.
Divergence from Industry Standards:
Yearly Subscription Model: Unlike the standard pay-per-service model predominant in our industry, we offer a yearly subscription that not only includes tax preparation but also strategic planning, mentorship, bookkeeping, and financial analysis. This model encourages continuous interaction and proactive management of our clients’ financial affairs, aligning more closely with their ongoing needs rather than once-a-year engagements.
Holistic and Strategic Approach: Our approach goes beyond basic compliance. We integrate tax planning with business strategy, helping clients understand how various financial decisions will impact their taxes and long-term financial health. This holistic view is rare in a field that often isolates tax from other business considerations.
Target Clientele and Custom Solutions: We specifically target entrepreneurs, high-earners, and real estate investors who are not just looking for a CPA but a strategic advisor. This focus allows us to tailor our expertise to the unique challenges and opportunities these individuals face, such as optimizing business structures, leveraging tax credits, and proactive estate planning.
Illustrative Story:
A particularly telling example of how our non-traditional approach benefits clients occurred last year. We worked with a client who owns multiple real estate investments and was facing significantly higher taxes due to increased rental income. Traditional firms might have simply looked for deductions or credits applicable in the fiscal year. However, we took a strategic approach, reviewing their entire business structure. We identified an opportunity to reclassify some of their income through a real estate professional status, which not only optimized their taxes considerably but also set them up for more favorable tax treatment in future years.
This proactive strategy not only saved them from a hefty tax bill that year but also improved their cash flow management and reinvestment strategy for their real estate portfolio. The client appreciated that our service model—unlike a conventional transactional relationship—placed a premium on understanding their long-term business vision and integrating their personal financial goals.
Our firm’s commitment to diverging from the norm by focusing on these strategic, long-term relationships rather than purely transactional interactions has been crucial. It not only helps our clients save money but also empowers them to make informed decisions that positively impact their financial futures. This approach, paired with our subscription model, ensures that our clients view us as integral partners in their financial journey rather than as just another service provider.
Jose , before we move on to more of these sorts of questions, can you take some time to bring our readers up to speed on you and what you do?
I’m the founder of The Scale Collective, a forward-thinking CPA firm that specializes in holistic tax planning for entrepreneurs, high-earners, and real estate investors. My journey into the world of accounting and tax planning was driven by a desire to see a change in how financial services are delivered to high-potential individuals and innovators.
Background and Entry into the Industry:
My foray into this field was not born out of a conventional interest in numbers alone but from a recognition of the pivotal role strategic financial planning plays in achieving long-term business success. I noticed a significant gap in the market: many CPAs offered only piecemeal, reactive services without considering the broader financial picture of the clients. I founded The Scale Collective to bridge this gap, emphasizing proactive strategies that align tax planning with clients’ ultimate business and personal goals.
Services Offered:
At The Scale Collective, we provide comprehensive financial services that extend well beyond traditional accounting:
Strategic Tax Planning: We devise strategies that minimize tax liabilities and optimize clients’ financial situations year-round, not just at tax time.
Bookkeeping and Financial Analysis: These services provide clients with clear insights into their financial standings, helping them make informed decisions.
Mentorship and Advisory: We guide our clients through complex financial landscapes, offering advice tailored to their unique situations.
Tax Preparation: Although we offer it as a one-time service, our approach integrates this into a larger strategy of continuous financial optimization.
Problems We Solve:
Our clients typically face issues such as inefficient tax structures, underutilization of tax incentives, and the complexities of financial management across multiple revenue streams. We solve these problems by:
Implementing effective business structures to reduce tax exposure.
Utilizing lesser-known tax credits and deductions.
Providing year-round engagement and strategic foresight rather than reactive solutions.
Unique Selling Propositions:
What sets The Scale Collective apart is our commitment to building lasting relationships through our subscription model, which ensures that we are not just a once-a-year service but a year-round partner. This model allows us to:
Plan proactively rather than reactively.
Tailor strategies to individual client goals, adapting as those goals evolve.
Focus on comprehensive wealth management, integrating personal financial goals with business objectives.
Pride and Message to Potential Clients:
I am most proud of the trust that our clients place in us and the tangible results they see—whether that’s significantly reduced tax bills, optimized investment returns, or simply greater peace of mind about their financial futures. Our clients learn to view us not merely as tax preparers but as integral components of their success.
To Our Potential Clients:
If you are an entrepreneur, high-earner, or real estate investor who is tired of reactive, impersonal financial services and interested in a partnership that prioritizes your financial growth and strategic goals, The Scale Collective is your firm. We aren’t just here to prepare your taxes; we are here to help you scale your dreams into realities.
Our firm is for those who dare to dream big and are ready to take proactive steps towards financial efficiency and strategic wealth accumulation. We believe in not just meeting expectations but exceeding them, not just maintaining standards but setting them. Join us at The Scale Collective, where your financial future is strategized, optimized, and prioritized.
Any thoughts, advice, or strategies you can share for fostering brand loyalty?
Keeping in touch with clients and fostering brand loyalty are central to the operational philosophy at The Scale Collective, especially given our commitment to long-term, value-driven relationships. Our strategies are designed not just to maintain communication but to actively enhance client satisfaction and deepen trust over time. Here’s how we do it:
1. Proactive Communication
Regular Updates and Check-Ins: We schedule regular meetings (monthly or quarterly, depending on client preference) to review financial plans, discuss new opportunities, and adjust strategies as necessary. These aren’t just updates on financial status but strategic sessions that help clients feel guided and informed at every step.
Newsletters and Email Campaigns: Clients receive personalized newsletters that not only provide updates about the firm and relevant financial news but also include insights tailored to their interests and industries. This helps in keeping the communication line open even when not in direct contact.
2. Personalized Client Experiences
Customized Service Offerings: Understanding that each client has unique needs, services are highly customized. From the frequency of communication to the specifics of tax planning strategies, personalization is key.
Client Appreciation Events: We host annual client appreciation events that serve as both a thank you and a casual way for clients to discuss their visions and needs. These events are pivotal in strengthening relationships.
3. Responsive and Accessible Service
Accessibility: Clients can easily reach their dedicated account managers via multiple channels—phone, email, or messaging apps. This ensures they always have a direct line for any questions or concerns.
Quick Response Times: We prioritize responding to client communications quickly, often within the same day, which is crucial for client satisfaction and helps mitigate any issues before they escalate.
4. Educational Engagement
Workshops and Webinars: These are not only about sharing knowledge but also about engaging clients with the latest developments that can impact their financial strategies. These sessions help clients feel well-informed and supported.
Resource Portal: We are building an online portal where our clients will have access to an that includes a library of resources such as articles, guides, and tools related to tax planning and financial management. This not only empowers them but also reinforces the value we provide.
Are there any books, videos or other content that you feel have meaningfully impacted your thinking?
Two concepts that have significantly influenced my approach to managing The Scale Collective and shaping its entrepreneurial philosophy are “Cash Flow Quadrants” by Robert Kiyosaki and the idea of “Who Not How” by Dan Sullivan and Dr. Benjamin Hardy. Both of these concepts provide deep insights into efficient business management and entrepreneurial growth.
1. Cash Flow Quadrants by Robert Kiyosaki
Book: Rich Dad Poor Dad and Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom
Concept Overview:
Robert Kiyosaki’s Cash Flow Quadrants explain the different ways individuals earn income, categorized into four specific quadrants:
E (Employee): Trading time for money, with security often prioritized over freedom.
S (Self-employed): Owning a job; more freedom than an employee but still trading time for money, heavily reliant on personal involvement for income generation.
B (Business owner): Owning a system that generates income; focuses on creating and managing systems that operate independently of the owner’s time.
I (Investor): Money generating more money; using investments to generate income passively, leveraging money and other people’s time.
Impact on Management and Entrepreneurship:
The Cash Flow Quadrants have been instrumental in shaping my understanding of financial freedom and strategic business growth. By striving to transition from the S quadrant to the B and I quadrants, the aim is to develop The Scale Collective not just as a practice but as a systematized business that can operate independently of any single individual’s efforts. This involves:
Systematizing Operations: Creating robust processes that allow the firm to function efficiently without constant direct oversight, freeing up time to focus on strategic growth.
Delegating Effectively: Hiring the right people for the right roles, particularly those who can take over operational responsibilities.
Scaling Up: Leveraging technology and automated systems to handle routine tasks, allowing us to handle more clients and increase profitability with less incremental work.
2. Who Not How by Dan Sullivan and Dr. Benjamin Hardy
Book Concept:
The premise of “Who Not How” is that to achieve your goals, you shouldn’t focus on the question of how to get something done, but rather on who can do it for you. It’s about leveraging other people’s strengths to achieve more effective and efficient results.
Concept Overview:
This philosophy argues that by focusing on ‘who’ can help you rather than ‘how’ you can do it yourself, you:
Accelerate your progress with less personal effort.
Avoid the trap of overburdening yourself, which can lead to burnout.
Enable a focus on your highest and best use within the business or personal realms.
Impact on Management and Entrepreneurship:
“Who Not How” has profoundly impacted how I manage the firm and delegate responsibilities:
Building a Team: Actively seeking out individuals whose skills complement my own and whose involvement can multiply the firm’s effectiveness.
Empowerment through Delegation: Assigning tasks to the right people, not only to free up my time but to also enhance job satisfaction and efficiency among team members.
Strategic Partnerships: Outsourcing non-core activities to trusted partners who can perform them better, faster, or cheaper than we could internally.
Conclusion and Integration into Business Philosophy
Both the Cash Flow Quadrants and Who Not How encourage a mindset that is essential for scaling a business effectively. They teach the importance of building and investing in systems and teams that can operate independently of the entrepreneur. This aligns perfectly with our model at The Scale Collective, where we emphasize strategic delegation and systematization as core components of our service delivery. This approach not only enhances operational efficiency but also ensures that we provide consistent, high-quality service to our clients, fostering sustainable growth and strong client relationships.
These frameworks have helped clarify my strategic focus, ensuring that I spend time working on the business rather than just in it, and have allowed The Scale Collective to thrive in a competitive marketplace by emphasizing scalability and efficiency.
Contact Info:
- Website: www,thescalecollective.net
- Instagram: the_scalecollective
- Facebook: https://www.facebook.com/joserortizjr
- Linkedin: https://www.linkedin.com/in/joserortizjr/
Image Credits
Graciela Valdes