Beat the recession masterclass, part one: The brutal truths

Steve

An excellent article. My recollection of the last recession is that it hit my firm about 9 months to a year after many other businesses. i don't know if this was typical, but if it is many firms will feel the effect when they find that some of their recurring fees are not recurring, and the ones that do recur want fees reduced.

Regarding Bob's comment about start ups, many will be people who have been made redundant and are undercapitalised, they not only need marketing skills, but they will need help being put on the straight and narrow regarding financial management. This should be an opportunity for some firms - however many of the start ups won't survive.

On a positive note, I believe that businesses (old & new) that are proactive and deal with the realities of this changed world (and take advantage of new opportunities) are more likely to come out of the recession stronger.

Regards

David
Camrose Consulting

Yes, for some it's going to be a nightmare. They will lose clients to the economy and smarter competition, experience increased price pressure from existing clients and see their profit and practice values eroded.

On the otherhand start-ups and young firms will grow quicker than ever if they have the right proposition and know how to market themselves.

We've found the market has been too complacent but now it's different.

Bob
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Interesting article, if not a little scary, but then the truth sometimes is. Keyword = Change!

Don't go slashing any wrists yet!

As you will see in future parts, there is so much that we can do - and so many opportunities - that I for one am very positive.

Its just that it is essential to start off with a reality check so that the need to take action is crystal clear.

Steve

Might as well all slash our wrists now then.

Here are a couple of other facts and figures:

• 52% of clients are now in switcher mode and open to conversations with competitors

• There will be 30% less new business for accountants in 2009

• 60% of clients expect to spend less on accounting services over the next two years

• A 10% decrease in fee levels will reduce a firm’s profit by 38%

Only a small percentage (my estimate is less than 5%) of accountants will invest time, money and energy implementing a strategy to address the challenges and take advantage of the current climate.

Bob
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