Accountants: Business Advisory
Compounding growth strategies for Accountancies.
Firm Objectives:
80% of your Tax Clients buy;
Spending 3% of their revenue;
Within 44 months of initiative;
With >20% new client acquisition/year.
Most Accountancies are not happy with their Business Advisory results. The assumption is that Clients enjoying the Firm’s Tax capabilities will buy their Business Advisory at the same rate. Unfortunately they don’t.
Clients don’t understand what “Business Advisory” means. It’s a generic term that is quite different from the Client’s understanding of their Accountant’s tax capabilities. Clients are busy; they will not invest their time in figuring this out. This is a classic business challenge called “positioning”. It’s difficult for Clients to replace the initial idea of your Firm (“Tax problem solvers”) with a new idea (“Financially informed decision-making guidance” or “fractional CFO for SMB)”.
Clients want “CFO help” but Accountancies need a new approach to realize their potential. Outlined here in 4 stages:
(1) Position the Firm as Offering “Client Success”
Overcome the Client’s perception that your capabilities are limited to Solving Tax Problems by building a new position called “Client Success”.
To sell more Business Advisory we need access to understand their business and ID issues/opportunities. “Client Success” is an attractive, accurate umbrella term that facilitates access and engagement.
The position is not simply the two words: ’client’ + ‘success’. It requires more thoughtfulness to create something meaningful and distinctive. What matters is that the position communicates your Firm is focused on facilitating their success. For example, “Profit strategists with tax capabilities”. It’s a statement that the partnership formally agrees to. It’s essentially a public statement of your Firm’s priorities/strategy.
(2) Issue Identification
Via in-depth executive-level interviews along with secondary research generate a comprehensive understanding of the Client’s strategic agenda.
This includes the Client’s idea of success, goals, operations and the issues that inhibit success. Each issue is explored in detail: their origin, their pain/cost, solution options as well as elements of value that will enhance the Solution’s utility.
This is where our value is created; it’s these issues that we will solve. There are lots of them and they come with complex parameters. By asking good questions, listening smartly, being open minded we form an understanding of how your knowledge can help the Client.
(3) Solution Utility
Solution’s have degrees of utility. Clients determine utility; we always ask because it matters. A Solution can be a technical answer, a tactical project or be these and offer strategic relevance.
Solution utility is co-developed with the Client. The Solution begins as a sketch idea, then prototyped with the Client until it’s good enough to be implemented. Thereafter, each iteration is measured and refined. Co-developing ensures Solution utility while the process increases conversion rate.
The Solution’s utility is its value. It correlates to the product of its Fee, Frequency of purchase (Period) and conversion rate in the market. A Solution’s value can be massive.
(4) Offer Solutions to Win Market Share
Marketing solutions has a 300% higher conversion rate than the marketing of capabilities. Therefore, rather than market your Firm or its capabilities market actual Issue/Solutions.
In most cases, high value solutions will be of significant interest to a large segment of the target market.
Depending on the Solution’s potential value we employ direct and indirect marketing initiatives. “Direct” is to contact the prospective Client directly. “Indirect” is about generating awareness of the Issue/Solution and providing opportunities for the prospect to contact. It’s a longer process and incorporates SEO, social, digital communications as well as thought leadership and events.
Most Owners of small medium businesses wear too many hats. They will benefit from financially informed decision-making support. There’s an unlimited number of issues to solve:
Costs, sourcing, operations
Revenue, sales, marketing, digital, identity
Technology; implementation
Strategy, planning
KPI, management performance
Competition
Funding, Cashflow, Investments
Equity Value, exit strategy, Unsolicited Acquisition Offer
HR
New markets; innovation
A robust Business Advisory thrives with a Client Success strategy. Implement a service posture that is proactive, strategic and offers solutions.
Please contact Doug Stewart to discuss.