Presentation on theme: "Page 1 Page : 1. Page 2 TURNING CLIENT PROBLEMS INTO LUCRATIVE ENGAGEMENTS Make more money in the process Presented by Rick Solomon, CPA CEO, RAN ONE."— Presentation transcript:
Page 3 Agenda Business client migration Your new role How to deliver Understanding the problems Getting into action Discussion & next steps
36% of business clients report they are likely to switch CPA firms in the next year. The top reason clients would consider leaving their firm is if the firm did not check with them on their changing needs. CCH Accounting firm client survey
Page 5 Which end of the migration pattern will you be on?
Most clients will not tell you they are dissatisfied unless you ask them. They will just stop doing business with you. CCH Accounting firm client survey
Page 7 Formula to Win Help clients solve business problems and become more successful. They will love you stay with you pay you very well & Your practice will flourish
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”
60% of businesses are becoming more focused on the return they are getting from their CPA firm. CCH Accounting firm client survey
Page 11 Any concerns about being an advisor?
Page 12 Poll What % of your clients would be likely candidates? 50% or more 30% - 50% 15% to 30% 5% to 15% Few, if any What stops you from having a greater impact on business clients?
Page 13 It’s not enough to be busy; so are the ants. The question is: What are we busy about? Henry David Thoreau
Page 14 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 15 Business Advisory Made Simple
Page 16 Five key advisor abilities: 1.ask questions 2.listen and understand 3.analyze information and draw conclusions 4.creatively solve problems through facilitation 5.communicate and relate to people
Page 17 Personal Goals Business Planning Monitor/Manage Result: Profitability & Professional Wellbeing Business Advisory Components Help business owners clarify their personal and quality of life goals
Page 18 Personal Goals Business Planning Monitor/Manage Result: Profitability & Professional Wellbeing Align business and personal objectives. Develop a plan to achieve them Business Advisory Components
Page 19 Personal Goals Business Planning Monitor/Manage Result: Profitability & Professional Wellbeing Keeping an eye on actual vs. intended results greatly increases chances for success. Business Advisory Components
Page 20 Personal Goals Business Planning Monitor/Manage Result: Profitability & Professional Wellbeing As they win, you win Business Advisory Components
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 22 Poll What % of your clients would be likely candidates? 50% or more 30% - 50% 15% to 30% 5% to 15% Few, if any What’s your current advisory role?
Page 23 RAN ONE Rocket Internal factors
The Rest Start with an idea but no real vision Lack a clear, purposeful direction Take whatever work comes along – mortgage over mission
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
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
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
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”
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
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
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
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 33 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
Page 34 Result: Profitability & Professional Wellbeing Personal Goals Business Planning Monitor/Manage Business Advisory Components
Page 35 Poll What % of your clients would be likely candidates? 50% or more 30% - 50% 15% to 30% 5% to 15% Few, if any How do you see advisory fitting into your firm?
Advisapedia Business diagnostic process
BlankBlank Marketing & Sales Training & Support Software & Resources Process & Deliverables Skills and confidence Win the work
Page 39 Solving problems differentiates your firm
“ You can't afford to rest on last year's assumptions in this unpredictable, rapidly changing world. The biggest sales mistakes we see accountants making is 'The Don't Ask; Don't Know' syndrome. Far too few CPAs make the effort to ask the right questions that reveal prospect's real needs and desires.” Rick Telberg, President and CEO Bay Street Group Publisher, CPA Trendlines
Page 41 Poll What % of your clients would be likely candidates? 50% or more 30% - 50% 15% to 30% 5% to 15% Few, if any Interest in RAN ONE’s Tax Season Marketing Program?
Page 42 There is only one success – to be able to spend your life in your own way Christopher Morley American writer
Page 43 Questions & Discussion For more information about RAN ONE