Presentation on theme: "Page 1 Page : 1. Page 2 NEW POSSIBILITIES FOR YOUR PRACTICE Make more money in fewer hours Presented by Rick Solomon, CPA CEO, RAN ONE Americas Contents."— Presentation transcript:
Page 4 There is only one success – to be able to spend your life in your own way Christopher Morley American writer
Page 5 Agenda The problem Business owners Accountants Solving the problem Possibilities & Profits Getting into action Discussion
36% of clients plan to switch firms in the next year. Many clients are being prospected by other CPA firms. The top reason clients would consider leaving their firm is if the firm did not regularly check with them on their changing needs. CCH Accounting firm client survey
Text 1 Traditional Services –Accounting –Tax –Audit Results –Commodity perception –$ = Hours –Buy because they “have to” What Clients Want –Success: –$–$ –Quality of Life Results – Value Perception – $ = Value – Buy because they “want to”
Text 1 Traditional Services –Accounting –Tax –Audit Results –Commodity perception –$ = Hours –Buy because they “have to” What Clients Want –Success: –$ –Quality of Life Results – Value Perception – $ = Value – Buy because they “want to”
Hierarchy of Customer ValueUnanticipatedBasic Desired Expected Professional’s Guide to Value Pricing; Third Edition; Ronald J. Baker
Text 1 Basic & Expected Accounting, tax, audit, etc. – compliance services Desired & Unanticipated Impact $ and Quality of Life Low Perceived Value High Perceived Value
The neo cortex is where rational thought takes place. People can understand “what” & “how” facts and figures, but it does not drive behavior. The limbic system is responsible for all human behavior and decision-making. It has no capacity for language. They “why” talks to this part of the brain, where decisions come. It “feels right" and we can't even say why. Once the decision is made, people then rationalize based on what we say. Selling & delivering the “WHY” is the core of RAN ONE’s Thriving Firm Program.
There is a significant opportunity for CPA firms to expand their services to clients, and there is a growing risk in not doing so. How can your firm differentiate itself in response to this conclusion? CCH Accounting firm client survey
60% of businesses are becoming more focused on the return they are getting from their accounting firm. How does your firm deliver and communicate its ROI to clients? CCH Accounting firm client survey
Page 14 It’s not enough to be busy; so are the ants. The question is: What are we busy about? Henry David Thoreau
Page 15 What are you busy doing?
Page 16 How to Impact $ and QOL Made Simple
Page 17 It isn’t that they can’t see the solution. It is that they can’t see the problem. G.K. Chesterton English Journalist and author
Page 18 Poll What % of your clients would be likely candidates? 50% or more 30% - 50% 15% to 30% 5% to 15% Few, if any What do you love about working with business clients?
Page 19 Personal Goals Business Planning Monitor/Manage Result: Profitability & Professional Wellbeing Help business owners clarify their personal and quality of life goals Impacting $ and Quality of Life
Page 20 Personal Goals Business Planning Monitor/Manage Result: Profitability & Professional Wellbeing Align business and personal objectives. Develop a plan to achieve them Impacting $ and Quality of Life
Page 21 Personal Goals Business Planning Monitor/Manage Result: Profitability & Professional Wellbeing Keeping an eye on actual vs. intended results greatly increases chances for success. Impacting $ and Quality of Life
Page 22 Personal Goals Business Planning Monitor/Manage Result: Profitability & Professional Wellbeing As they win, you win Impacting $ and Quality of Life
Choose Your Level of Involvement Proactive Advisor Guide & Facilitator Business Intelligence Provider Provide a road map & intelligence for their journey Show up periodically to help them stay on track Walk with them on their journey
Page 24 RAN ONE Rocket Internal factors
Page 25 Vision The Rest Start with an idea but no real vision Lack a clear, purposeful direction Take whatever work comes along – mortgage over mission
Page 26 Strategy Top Performers Have a clear and consistent plan target markets defined products/services defined start external, then go internal Track business performance and act quickly to change if necessary Risk management adopted The Rest Planning is ad hoc and informal May start internal then “fit” to external environment Fire fighting mentality
Page 27 Structure Top Performers Adapt structure to business needs over time Professionalize management Identify and seek out the right type of people early, including specialists The Rest Have less formal structures Build around leader’s personality Are thinner on management talent
Page 28 Culture Top Performers Build corporate culture – not dominated by founder but on values Attitude to growth high imperative growing the pie more important than size of share Environment manages pressure, deadlines and priorities Willingly take external advice The Rest Dominated by personality of founder/leaders (good in start up but must mature past this) Environment endures pressure, deadlines and priorities Look for an internal solution ahead of an expert one
Page 29 Products & Services Top Performers Have attractive products/services to sell life cycle position profit margin Try to secure their valuable formula using IP or some other security eg. an exclusive license Productize the business repeat sales become cheaper efficiency increases quality improves, risk falls The Rest Do not critically analyze and refresh their portfolio frequently enough Reinvent the wheel too often Too readily justify one offs as “strategic positioning”
Page 30 Marketing & Sales Top Performers Very good at winning business i.e. finding new markets, positioning they’re not egg warmers; they create or find new business Strong sales culture and ability to convert at all levels Strong reputation Acutely aware of the competition The Rest Compete predominantly on price over other benefits/value proposition elements Poor quality or non-existent marketing plans Less market aware overall
Page 31 People Top Performers Look for the right type of people early – including specialists Create a great place to work Attract and retain good people Develop & significantly improve their people’s capabilities Look to reward in line with business performance The Rest Don’t always try to get the best people they can i.e. not better than themselves Have poorer people management skills Are vulnerable to losses in key positions Don’t invest so readily in their team as a core asset
Page 32 Systems & Processes Top Performers Systemize the business from an early stage for efficiency, succession and risk management Use mainstream technology - stay current but not bleeding edge Protect and leverage intellectual property used in the valuable formula The Rest Do not systemize the business, so frequently reinvent the wheel Are often technologically challenged Are often under-invested in IT
Page 33 Finance Top Performers Some start up capital (usually limited) Make working capital management a priority – have KPIs and use them Reinvest in the business as a priority Profitable business model The Rest Have far poorer working capital management Lack profitability Are unable to reinvest optimally ie. when funding allows, not when business needs
Entrepreneurs Want to grow, willing to invest Greatest opportunity for business development Holy Grail Already very successful SWOT analysis can take them deeper In the Dark Business is a“job” Educate to motivate Lifestyle Not necessarily motivated towards growth Enhance Processes and efficiency Client Opportunity Quadrant
While 94% of business owners said they view their CPA as a strategic partner, only 10% were completely engaged in that way. CPAs have the opportunity to leverage this valued-advisor relationship to expand the services they provide to clients. How can your firm leverage this opportunity? CCH Accounting firm client survey
Page 36 Poll What % of your clients would be likely candidates? 50% or more 30% - 50% 15% to 30% 5% to 15% Few, if any How would improving clients $ & QOL impact your practice?
Page 37 Poll What % of your clients would be likely candidates? 50% or more 30% - 50% 15% to 30% 5% to 15% Few, if any What are your concerns about impacting $ & QOL?
Page 38 Result: Profitability & Professional Wellbeing Personal Goals Business Planning Monitor/Manage Impacting $ and Quality of Life
Advisapedia Business diagnostic process
Clients know they need more help. 70% of clients were not aware of all the services the firm offered. 80% said they wished their firm offered services that were in fact already available. How can your firm address this? CCH Accounting firm client survey
Page 41 Are you a fraid to talk to your clients about their changing needs?
Page 42 How do you know client’s changing needs?
Page 43 The Formula Help clients solve business problems and become more successful. They will love you stay with you pay you very well & Your practice will flourish
Page 44 Principles & Guidelines of Value Pricing People will pay for value received Let go of any ideas to the contrary
Page 45 Agree on value up-front Use fixed price agreements
Page 46 People value more dearly that which they pay more dearly for
Page 47 Helping clients succeed is a great way to differentiate your firm
Page 48 There is only one success – to be able to spend your life in your own way Christopher Morley American writer
Action Items Start a firm discussion on how to apply the webinar information Get a copy of the slides or access recording from CPALI Explore RAN ONE. No cost or obligation trial. NEVER sales pressure Thriving Firm Conference San Diego Oct. 26 & Oct. 26 & 27 San Diego Firm Alignment Workshop Oct. 28