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Being different - is this the route to growing your practice?

4th Oct 2013
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One of the biggest debates (let's call them debates!) I have with owners of small accountancy practices is the need to be different, but more importantly 'how to be different'. This isn't going to be a blog post bashing 'boring accountants' as I have spent the last ten years working with anything BUT boring accountants. However, it's not easy differentiating yourself in a marketplace when you sell pretty much the same services as your competitor down the road. 

If you are going to build a scalable marketing and sales system which fuels your practice growth you are going to need to do just that. I.e. differentiate yourself in a way which is meaningful different from your local and now, not-so-local competitors.

Times have changed

Five years ago clients bought accountancy services on the basis of a recommendation and generating leads was all about doing a good enough job with your existing clients, and shaking enough hands at events. However, the rise of purely on-line accountancy firms such as Cheap Accounting have demonstrated that you can easily win clients without any face-to-face contact. Plus 'good enough' service is no longer 'good enough' to generate a good level of referrals from existing clients. The problem is that your potential client's buying behaviours may have changed in the last five years, but has your marketing systems and processes adapted to the new realities of marketing? I would hazard a guess to say that most accountancy practices have NOT changed how they market, service and sell to their clients.

The best performing small accountancy practices ARE different

I was at the recent Xerocon, as the guest of Gary Turner,  and got to mix with some owners of accountancy firms who are really embracing both cloud accounting but also the need to be different. For example, let's take one of our recent accountancy clients, who I met up with on the evening, WBS accountants who we helped triple their lead generation. Wow, yes triple their lead generation in the space of 18-24 months. We did this by helping them to be different. Whilst it may have only been tweaks around the edges, after all they are a small local practice serving local micro businesses, this was all that was needed to create a compelling proposition to attract in new clients, and help them triple their lead generation and triple their GRF in just over 2 years.

You then take a look at the WOW company. This accountancy practice was awarded Xero partner of the year. It also stood out head and shoulders above all the other Xero partners. Just take a look at their website, and you will see how they really are different.

Different doesn't mean turning away existing clients

Well, unless you want too! Far too often I see that owners of small accountancy practices resist becoming a little bit different and specialising on a niche because they don't want to alienate their existing clients. Your retention of existing clients is based on how well you service them, not how you package your services to new potential clients. I'd also say that becoming a little bit different may actually help you keep your existing clients as you will become more to them than just another accountant.

Small business owners don't need to choose a local accountant

The advent of cloud accounting and online accounting software means that small business owners no longer need to choose an accountant who is local to them. That means you are competing against the likes of the independent firms on your patch and the small online accountancy firms not on your patch - but who may be aggressively marketing to small business owners local to you. If you were a small business owner, how would you choose between your firm and the firm down the road? If your answer is 'I don't know', then your potential clients also have the same problem. Which means that your prospects are more likely to choose a firm which can articulate why it is different; and 'why' this will benefit you as the client.

If you want help to make your firm just that little bit different, then download now our guide to finding and capitalising on your niche.

Author Credit

Heather Townsend helps professionals become the Go-To-Expert. She is the author of the  award winning and best-selling book on business networking, the ‘FT Guide To Business Networking’ and the co-author of ‘How to make partner and still have a life’. Over the last decade she has worked with over 300 partners; coached, trained and mentored over 1000 professionals at every level of the UK's most ambitious professional practices.

Heather blogs regularly at How to make partner and still have a life and Joined Up Networking

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Replies (5)

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By MissAccounting
07th Oct 2013 12:33

I still dont totally "get"

I still dont totally "get" the whole cloud accounting thing people are trying to push onto everyone at the moment.  If you can find me a cloud accounting package that can beat VT for speed and ease of use (and of course therefore profitability on jobs) then I'll sign everyone up if they can beat VTs price too!

There is nothing wrong with being different I Agree but I dont agree with your point about small business owners wanting a local accountant as I find perhaps 90% of my clients like to meet face to face now and again, even the ones who use online packages.

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By RussellD
07th Oct 2013 13:45

Direction of travel/ trend

It is true that not everyone wants or needs Cloud Accounting, but it is the direction of travel.

If you were setting up a business now providing mobile phones, unless they were smart phones, the margins would be very small. Does everyone have a smart phone? Obviously not, but it is the 'direction of travel'. If you were in the mobile phone business you would be better off preparing now for smart phone orientation. Working within the direction of travel can support margin levels.

Accessing software (including accounting) and services online is a direction of travel. 

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By MissAccounting
07th Oct 2013 14:00

I agree....

...but, some people (not the blog author) are suggesting that you should be ONLY selling smart phones.

Of course your comparison is very limited, perhaps the non-smart phone is similar to our incomplete box of records and the smart phone is Xero but where does the excellent bookkeeping jobs that have been completed in Excel or the half done job in VT that couldnt be easier to put right with a few corrections?

Unlike technology/smart phones, there will always be a need for solutions that arent cloud based purely because of clients not wanting to do the bookkeeping or not having time, or both!  To me the push for the cloud is somewhat of a scare tactic, use it or you will be left behind whereas I am more than happy to use it (I use Xero for my practice and think its great) but I cant see it ever replacing VT for the bulk of my work/clients.

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By User deleted
08th Oct 2013 15:26

Luckily, as an IRIS user ...

... we are assured that equal effort is being put in to cloud and desk based applications as they realise both have their place, often complimenting each other.

Agree totally with MissAccounting, many self-employed mini-cab drivers, electricians, whatever, just want to dump a box/bag of paper with their accountant every month/quarter/year, they couldn't give a stuff about cloud computing, viewing their accounts online etc. They know they put through enough to keep the tax man happy and a cloud package will add squat to the knowledge of their cash flow, the size of the bundle of used notes in their back pocket tells them that!

So, I suppose I am saying their are broadly two sorts of clients, those that want a compliance job as quickly, easily and with as little input from them as possible, and those who need/want timely management information to run their business.

Choice is what is needed, one size does not fit all.

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Heather Townsend - accountant's coach
By Heather Townsend
08th Oct 2013 16:47

One size does not fit all

Thanks for your great comments:

@old grey accounting - you have hit the nail on the head. It's not about having to adopt the cloud, it's about tailoring your offering to what your audience wants and needs. By tailoring your offering it helps you stand out and be different.

@miss accounting - thank you for your comment. You are absolutely right, I wasn't suggesting that every accountant should adopt the cloud. It's all about choosing the right tools to suit your clients needs.

 

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