Chartered Accountant CheapAccounting.co.uk
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HMV – What would you have done?

1st Feb 2011
Chartered Accountant CheapAccounting.co.uk
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A question posed on Sift Media’s UK Business Forums recently asked …

If you owned HMV what would you do?”

Pages of suggestions followed – maybe the management of HMV should have a read. They might get some ideas.

The suggestions focus on a few salient points …

  • They lost sight of the competition and new entrants
  • Too expensive
  • The offering is out dated – old fashioned stores
  • Physical stores no longer work – go online
  • Too much competition – move into niche areas
  • Customer service needs to improve

My contribution to the debate was: “Don’t wait until it happens to you. Keep looking at competition, market place, technology etc and get on board sooner rather than later.”

Reading through the suggestions thought it struck me ….

Could the same happen in the Accountancy Practice world?

The business landscape is changing.

We’ve just sent the launch of the new Enterprise Allowance Scheme aimed at people who have been claiming Jobseekers Allowance for more than six months.

With the number of unemployed on the rise coupled with promised forth coming public sector job cuts, would it be fair to say that the future could be in self employment – either as unincorporated or incorporated businesses.

The statistics at the companies house web site would suggest incorporated businesses, as almost 1,000 companies are being registered at Companies House every day.

Such businesses are likely to be small in size – or at least start small. Maybe many will fail.

However all will need help from an accountant to meet the increasing complex reporting requirements, even if they think they can do it themselves.

Will they want to pay the prices of the high street accountant?

The HMV’s in this scenario with the physical high street presence.

Will the new business owners be tempted by the on line Accountancy Practice entrants to the market place who are able to offer the same service at reduced fees?

Do the existing high street Practices need to find niche offerings to maintain their foot hold in the market place?

Change is inevitable

Even in the Accountancy world. Keeping an eye on the competition, the changing landscape, new entrants etc is vital. Evolving your offering, your processes and your prices is key to survival.

You wouldn’t want to end up in the same place as HMV and many before it such as Woolworths.

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