TURNING CLIENT PROBLEMS INTO ENGAGEMENTS PART 2
Transcript of TURNING CLIENT PROBLEMS INTO ENGAGEMENTS PART 2
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TURNING CLIENT PROBLEMS INTO ENGAGEMENTS – PART 2 And make more money in fewer hours
Presented by
Rick Solomon, CPA
CEO, RAN ONE Americas
Contents Copyright © 2010 RAN ONE Americas,
LLC
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How to Solve Your
Clients Biggest
Three Problems
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Percentage of
business clients who
could use more
help?
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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”
Evolution of your practice
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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”
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Personal Goals
Business Planning
Monitor/Manage
Result: Profitability & Professional Wellbeing
Entry
Business Advisory Process
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The Big 4 Issues Overview
1. Lack of clear
personal and
business objectives
When you come to a fork in the road,
take it.
Yogi Berra
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2. Lack of
effective
business plan
One day Alice came to a fork in the road and saw a Cheshire cat in a tree. “Which road do I take?” she asked. His response was a question: “Where do you want to go?” “I don’t know,” Alice answered. “Then,” said the cat, “it doesn’t matter”
Lewis Carroll
English Novelist
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3. Liquidity and
profitability
challenges
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Biggest Problem#1
Setting Goals
Clarifying business and
personal objectives
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To be an effective business
advisor you MUST know
your clients business &
personal goals
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Symptoms of conflicting business and personal objectives
Symptoms of “No clear Goals”
• Don’t know where they’re going
• Poor return for the effort
• Lack of stakeholder alignment
• Decline in business value +/or
personal wealth
• Decreased quality of life
• Increased business dependency
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Clarifying objectives is the starting point Find out what they want so you can help them get there.
Do not make the mistake of assuming you know what your client wants
The business plan must help achieve the owners’ personal objectives
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Three Elements of Planning
1. Personal Financial Goals
2. Business Goals
3. Quality of life
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1. Personal Financial Goals
a) Current requirements
b) Retirement plans
c) Dependency on business for financial well being
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Ask the right questions:
2. Business goals
a)Dependency
b)Saleability & value
c)Operations & profits
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Ask the right questions:
3. Quality of life
a) Health
b) Relationship with business
c) Outside interests
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One Page Goals Statement
Your Personal Financial Goals
Capital Target: To have $3m on retirement plus
my home so I can generate an income of $150k pa
from investments.
Estate Planning: Update wills, power of attorney
and document loans to kids.
You and Your Business Goals
Dependency: Reduce dependency on my
involvement in the business by:
-Training the business manager to succeed me
-Spend 50% of my time working ‘on’ not ‘in’ the
business
Saleability: Prepare the business operationally for
sale by documenting major contracts and
processes by March 31.
Family Charter: Document current agreement by
November 30.
TEAM: arrange formal HR management system so
that new talent can be identified and developed.
Management Information: Get more reliable
information regularly and include non-financial
targets like TEAM development progress.
Your Quality of Life
Health: Reduce stress- lower blood pressure and
increase general fitness. Sleep better.
Role in Business: Aim to be out in 5 years, with a
replacement CEO in place within 3 years.
Outside interests: Get handicap under 20, go to a
pro for lessons and take a two week golfing
holiday each year. Year 1 Pebble Beach, year 2 St
Andrews, year 3 Augusta.
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Project plan
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Benefits of developing a personal plan
Results:
• Increase business value • Increase personal wealth • Improve return for effort • Better quality of life • Increase exit options • Decrease business
dependency • Expand opportunities and
options • Alignment among key
stakeholders
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RAN ONE tool is PGS+
Personal Goal Setter does
all of the above
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Thoughts on helping
clients set business &
personal goals?
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Biggest Problem#2 Lack of effective business strategy
Business Planning
Lack of effective
business plan
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Symptoms of lacking an effective business strategy
Symptoms of “No effective business
plan”
• Not clear where they’re heading
• No overall game plan
• Busy working IN, not ON, the business
• Competition is gaining
• Not responding to changing market
• Owner prefers the old ways.
• Management indecision
• No growth or ‘edge’
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Why plan in business?
It’s estimated that over 70% of SMEs go onto the playing
field without a plan
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Vision – where you are going
Vision
What the business is aiming to become
• guides consistent decision making
• builds team alignment and individual motivation
• helps to establish values and builds culture
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Strategy – How you plan on getting there
Strategy; How the vision will be achieved
Strategy is not an end in itself
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Understand
problem
Develop
solution
Implement
plan
Advisory Workflow
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The steps in developing a plan for business
Evaluate Ideas
Develop Plan & Milestones
Manage and Monitor
Understand Current Position
SWOT Analysis
Generate Ideas
Where is the business now?
Evaluate strengths, weaknesses,
opportunities and threats
Clarify Vision
and Direction
Develop a Plan for Action
Manage and monitor plan
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Business planning framework
Vision
Stra
teg
y
Stru
ctu
re
Cu
lture
Products and Services
Marketing and Sales
People
Systems and
Processes
Finance
Assess what’s working well and
what needs improvement
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Tool for business planning
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Developing a business plan
Helping a client develop a business plan creates opportunities for additional services. • General Management Help (OWLs)
• Monitoring and Reporting - KPIs
• Activity Based Costing
• Efficiency and Effectiveness enhancement
• Marketing
• And lots more….
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Biggest Problem#4 Liquidity and profitability challenges
Profit Improvement and
Cash Flow
Liquidity and profitability challenges
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Symptoms of liquidity & profitability challenges
Symptoms of profit & liquidity
problems
• Cash flow problems
• Lack of growth
• Ineffective cash management
• Profit margins are low
• Poor ROI
• Potential loss of business
• Possible personal bankruptcy
• STRESS!!!
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What is profit improvement and cash flow?
Four ways to grow a business
1. Get more customers
2. Increase the number of transactions per customer
3. Increase the value of each transaction
4. Reduce operating costs
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1
2
3
4
1 More customers
2 Increase # transactions
3 Increase $ value @ transaction
4 Improve operating costs
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Making all 4 ways work for you
Try this calculator on your own practice
It’s simple to understand and discuss with a client
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Level of interest in
exploring some
resources?
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