With the onslaught
of big accounting firms branching everywhere and alternate online
& software solutions AND outsourcing services in Third World
countries, what is a CPA to do in order to hold onto his or her
local clients and market share?
Accountancy
Marketing Newsletter
CPA Marketing
Newsletter: Methods of CPA competion
CPA - Accounting
Firm Marketing Newsletter:
Two methods of CPA competition
In this issue
we discuss a somewhat unpleasant reality involving expansion
and existence.
It is so that
it's basically impossible to remain stable in the business world
in terms of the size, income, profits and success (and future)
of any company or business venture.
If one's income
stays level then the inflation — and the expansion of competitors
in the area — will mean that the firm is contracting in
actual fact.
This is especially
so in this age new alternative solutions for the traditional
accounting work, such as online services, accounting software
and whatnot.
Heck, we even
have to compete with bargain-basement outsourcing solutions as
the Internet enables accountants in Third World countries to
take on work from anywhere in the world!
Thus, to "remain
as you are" you need to EXPAND a little every year.
Give those
choices then I'm guession that you would prefer your practice
to expand at a reasonable and hopefully comfortable pace.
Essentially,
there are two ways of making the grade in the competition in
your local area.
One is to take
clients away from local competitors.
This can be
difficult unless you can offer something BETTER — something
of more value — to accounting clients AND have a successful
method of making them REALISE this unique value your accounting
services provide.
The other method
of expansion is to offer your existing and new clients MORE
services so you earn more from each.
This second
method will actually lead to obtaining clients from others since
you will develop more VALUE to offer which cannot fail to influence
client-acquisition positively sooner or later.
Merely taking
clients from competitors is difficult also because the supply
of accounting services is usually greater than the demand.
In most regions,
there are more accounting professionals than there is demand
for their services. The law of supply and demand can thus make
every one of the practices in your area suffer from a chronic
lack of clients.
And those who
HAVE enough clients must do one of two things.
They must compete
with either COST or QUALITY. Lowering your hourly rates, underestimating
the time it takes to do a job... these are not necessarily the
favourite choices of a practitioner.
More work for
less pay makes expansion expensive and risky.
Of course,
every CPA firm or accounting practice in existence HAS some clients,
but most suffer from the chronic lack of available new clients...
and especially those who would be willing to pay well for the
services and knowhow of the accounting professional.
There just
aren't enough of THAT type of client to go round in the area.
Value added
accounting — unique value for the best kind of client
The usual thinking
in this matter is to wait for better times. We wait for something
good to turn up... all while the more established firms, having
more resources at their disposal for client acquisition, take
over even more of the available clients in the region.
Waiting can
be prudent at times but not so when it comes to the explansion
of your CPA firm or accounting practice. The longer you wait
the more advantage you're giving your competitors — and
new, big competitors' branch offices — as they have time
to establish themselves on your market area.
Thus, the imbalance
between the small and the big practices tends to worsen rather
than improve for the smaller practice with the passage of time.
This "elimination
contest" plaid regionally is like a game of musical chairs
in slow motion. And it's a deadly game in which time works against
most of the players.
Do you want
to expand your CPA firm / accounting practice?
So, how do
you counteract the better resources of bigger firms? And how
do you compensate for the smaller accounting practices' expansion
/ client-acquisition projects in YOUR area?
My recommendation
is to do so by using the SECOND alternative available to you,
namely to offer MORE services and offer more VALUE.
By "more
services" we mean "more closely adapted to those NEEDS
that clients can be made to realise."
And "more
VALUE" is defined as "those services, support, backup,
information, consulting and help which CLIENTS consider valuable."
Amazingly,
what CLIENTS consider valuable is SO below of YOUR view of "value"
that it can be difficult to grasp sometimes.
It follows
the same scales as expertise in financial matters.
So you should
not be surprised that YOUR expertise in financial planning, tax
planning and accounts is up there in the stratosphere
compared to what the average business owner understands about
these things.
Thus, you can't
just up and start offering what YOU think they
need. Or you can but you'll find it tough going, as you've doubtlessly
experienced if you've tried it.
You'll need
to find out what the majority of your target group wants, how
they see accounting, find what they think they need and then
start building an added-value service and the tools to communicate
its value to businesses.
Alternately
you could avoid re-inventing the wheel and secure yourself the
basic added-value accounting service model AND its proven presentation
tools.
This system
has been exhaustively researched, tested and USED for years with
hundreds practices so that it works in the hands of every single
accounting professional.
It might be
just the thing you've been looking for to secure a healthy market
share in your local area!
Keep up the
great work,
Best wishes,
Harry Kafka HDK Consultants
Ltd
32 Manning Close
Richmond Square
East Grinstead RH19 2DR
West Sussex, United Kingdom
Tel. 01342-328 116
From U.S: 011-44-1342-328-116 CONTACT
FORM
