Welcome to The Perfect Firm

Transcription

1 Welcome to The Perfect Firm Rob Nixon Founder #perfectfirm

2 @therobnixon #perfectfirm

3 @therobnixon #perfectfirm

4 #1 - Managerial (USA) #1 - Financial (USA) #1 - Accounting (USA) #1 - Accounting (UK) #1 - Industries & Professions (Germany) #2 - Accounting (France) #1 - Business & Investing (Netherlands) #1 - Management (Canada) #1 - Financial (Canada) #1 - Financial (AUS) #1 - Management (AUS) #1 - Strategy and Management (Italy) #3 - Industries & Professions (Japan)

5 PROMISES DISTURB RESULTS DIRECT / NOT AGREE TOOLS YOU INSPIRE HOW TO S SYSTEMS #perfectfirm

6 AVERAGE OF FIRMS COACHED Averages of the full financial year prior to implementation Starting average End of year 1 Year 1 increase End of year 2 Year 2 % increase on year 1 Year 2 increase on the starting numbers Revenue $947,418 $1,556,258 64% $1,936,512 24% 104% Profit before partner salaries $304,915 $587,290 93% $801,620 36% #perfectfirm

7 In the trenches David Auer Tulsa, #perfectfirm

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11 WE BELIEVE Accountants are the natural trusted advisors Accountants can make a massive difference to their clients condition Most business clients will buy additional services Accountants can help their clients build great businesses Accountants revenue is being digitally disrupted you must change to #perfectfirm

12 PROBLEMS Accountants traditional margins under massive threat: Commoditised compliance technology is taking away the bread & butter work New nimble players in the market tech savvy / low costs Clients have more information than ever asking questions Business clients need help Accountant needs to BE the trusted advisor Training people how to deliver new business advisory services Capitalising on cloud technology without a clear focus it ll take revenue away.

13 GLOBAL PROFESSION Global Accounting Services: Market Research Report Report Snapshot Market Share of Companies Deloitte 7.7% PricewaterhouseCoopers 7.6% Ernst & Young 6.2% KPMG 5.6% Industry Statistics and Forecast Revenue $464bn Profit 17.3% Annual Growth % Employment ( 000) 5,652 Annual Growth % Businesses #perfectfirm

14 DISRUPTING A $500BN PROFESSION

15 CHECKING & #perfectfirm

16 CHECKING & PROCESSING Client side inefficient systems Accountants inefficient systems Government inefficient #perfectfirm

17 THERE S A STORM #perfectfirm

18 @therobnixon #perfectfirm

19 Convergence of #perfectfirm

20 Convergence of #perfectfirm

21 Convergence HEAVY DATA VS of LIGHT technology #perfectfirm

22 @therobnixon #perfectfirm

23 PANALITIX MEMBERS USA

24 @therobnixon #perfectfirm

25 THE EFFECTS OF CLOUD ON COMPLIANCE C A PA C I T Y H O U R S 10,000 8,500 7,000 5,500 4,000 Y E A R S #perfectfirm

26 CLOUD NZ SINCE 2008

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33 We re turning the traditional CPA firm upside down Ricky Lavina CEO - #perfectfirm

34 @therobnixon #perfectfirm

35 @therobnixon #perfectfirm

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45 REDUNDANT OR REAL TIME Redundant Data Accountants Offers advice late or not at all Real Time Accountants Offers advice before it happens Processes work and administration Waits for things to happen Majority of revenue in compliance Prices in arrears Doesn t visit / call me Doesn t follow up Doesn t promote the latest thing Most clients on hard drive accounting Numbers power with the client Value added services that help On front foot making it happen Majority of rev in Business Advisory Prices every project upfront Visits and calls on systematic basis Follows up on every opportunity Always promoting Most clients on cloud accounting Numbers power with the #perfectfirm

46 #perfectfirm

47 MODEL CENTRIC SERVICES CENTRIC PURPOSE CENTRIC MARKETING CENTRIC YOU VALUE CENTRIC CLIENT CENTRIC EFFICIENCY CENTRIC CULTURE #perfectfirm

48 @therobnixon #perfectfirm

49 GROWTH PROFIT #perfectfirm

50 THE OLD BUSINESS MODEL People Power X Productive time (%) Average charge rate Write downs X = - Revenue - Labour costs = gross profit overheads = #perfectfirm

51 WHO WAS THE CULPRIT? Reginald Heber Smith created billable hour Why would you operate an outdated model developed by your great #perfectfirm

52 THE NEW BUSINESS MODEL Lead Generation conversion X = rate % Existing clients + acquired clients = Total clients X retention rate % activity monitor, test, change Average Projects / X project value client / year = X vs results monitor & alter activity Revenue Labour costs = gross profit overheads = #perfectfirm

53 THE 8 NON- NEGOTIABLES BUSINESS ADVISORY SERVICES PRICE EVERY JOB UP FRONT VALUE PRICING ON SPECIAL PROJECTS SALES SKILLS PROFIT CAPACITY GROWTH CLIENT COMMS PROGRAM MARKETING THAT WORKS WORKFLOW EFFICIENCY MODEL ALL CLIENTS ON CLOUD #perfectfirm

54 NEW MODEL IN ACTION Lead Generation 50 conversion X = rate % 70% Existing clients acquired clients 35 = Total clients 420 X retention rate % 90% Average Projects / X project value X client / year = 2,750 2 Revenue 2,079,000 Labour costs 950,000 = Gross profit 1,129,000 Overheads 429,000 = Profit 700,000

55 ROB S RULE OF 38:43 5% increase in client numbers PLUS 3% increase in retention rate PLUS 10% increase in the price per project PLUS 20% increase in the number of projects per client per year EQUALS 43% increase in #perfectfirm

56 38:43 IN ACTION Lead Generation 70 conversion X = rate % 80% Existing clients acquired clients 56 = Total clients 441 X retention rate % 92.7% Average Projects / X project value X client / year = 3, Revenue 2,967,938 5% increase in clients 420 to 441 3% improvement in retention rate 90% to 92.7% 10% increase in average project value - 2,750 to 3,025 20% increase in the number of projects per year per client 2 to % increase in Revenue 84% increase in Profit Labour costs 1,150,000 = Gross profit 1,817,938 Overheads 529,000 = Profit 1,288,938

57 1M PROFIT PER PARTNER Key Area Partners Accountants Administration & Marketing Client numbers - groups Average project value Number of projects per year per client Average fee per client group per year (projects x fee / project) Revenue Salaries excluding partners Office overheads Total costs Profit before partner salary Productivity / Utilization Partners Productivity / Utilization Accountants Average Hourly Rate (AHR) - client hours Average Hourly Rate (AHR) - all team all hours worked Now , ,800 1,760, ,000 (74% GP) 310, ,000 1,000,000 (57%) 30% hours 75% hours

58 GROWTH PROFIT #perfectfirm

59 PROFIT PER CLIENT MODEL 1 28 hours to complete 175 average hourly rate 4,900 priced in arrears 2 3 4,900 priced in advance 3,900 new projects 20 hours to complete 8 hours to complete 245 average hourly rate 487 average hourly rate TOTAL NEW PROFIT FROM THIS CLIENT = 3, ,800 total client fee 28 hours to complete 316 average hourly #perfectfirm

60 FIRM DEVELOPMENT PROCESS Upfront Pricing process GROWTH PROFIT #perfectfirm

61 In the trenches Aaron Blau Tempe, #perfectfirm

62 MARGIN PROGRESSION M A R G I N = A H R Value Pricing + NOK 1 per hour + time budget 100% price up front + efficiency + charge rates still 5 6 No time sheets Some price up front + some write ups Price arrears + AHR targets + some new services Price arrears + AHR aware + charge rate increase YOUR VALUE BELIEF & YOUR VALUE #perfectfirm

63 ANNUAL ACCOUNTING SERVICE Basic Intermediate Advanced Cloud accounting software Cloud accounting software Cloud accounting software Lodgment / Filing of TAX Lodgment / Filing of tax Lodgment / Filing of tax Lodgment / Filing of annual return Lodgment / Filing of annual return Lodgment / Filing of annual return Year end review meeting Year end review meeting Year end review meeting Unlimited phone and support Unlimited phone and support Unlimited phone and support Regular tax updates Regular tax updates Regular tax updates Interim financial statements Year end tax planning Interim financial statements Year end tax planning Annual cashflow forecast Monthly cashflow report 250 per month 500 per month 750 per #perfectfirm

64 FIRM DEVELOPMENT PROCESS Upfront Pricing process WIP and Receivables GROWTH PROFIT #perfectfirm

65 In the trenches Matt Schlyder Brisbane, #perfectfirm

66 FIRM DEVELOPMENT PROCESS Upfront Pricing process WIP and Receivables Write offs / ons GROWTH PROFIT #perfectfirm

67 @therobnixon #perfectfirm

68 @therobnixon #perfectfirm

69 FIRM DEVELOPMENT PROCESS GROWTH PROFIT Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing #perfectfirm

70 TO VALUE PRICE Value Belief Value Perception Value #perfectfirm

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74 @therobnixon #perfectfirm

75 FIRM DEVELOPMENT PROCESS GROWTH PROFIT Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate #perfectfirm

76 THE M ZONE (margin = AHR) PRICING UPFRONT MZ COURAGE #perfectfirm

77 FIRM DEVELOPMENT PROCESS GROWTH PROFIT Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. #perfectfirm

78 CLIENT COMMUNCIATION PROCESS Business Performance Review What if AGM ENGAGER 6 monthly Visits Service New Opps Add value Seminars CAB s Social Media No Charge / phone calls Phone calls 3-4 times per year Sporadic s / letter / texts

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81 June 16 at the Stockholm Waterfront in Stockholm. June 19 at Scandic Crown in Gothenburg. June 21 at Norra Latin in Stockholm. #perfectfirm

82 GROWTH PROFIT #perfectfirm

83 In the trenches David Carpenter Newcastle, NSW, #perfectfirm

84 FIRM DEVELOPMENT PROCESS GROWTH PROFIT Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. CAPACITY Policies / processes Workflow #perfectfirm

85 @therobnixon #perfectfirm

86 @therobnixon #perfectfirm

87 ,000 4, #perfectfirm

88 FIRM DEVELOPMENT PROCESS GROWTH PROFIT Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. CAPACITY Policies / processes Workflow management Efficiency model

89 How much more efficient (% reduction in time) can your firm #perfectfirm

90 REDUCING TIME Gather all of the information before starting Self imposed deadlines communicated to team and clients One job at a time worked on uninterrupted time Productisation and systemisation of everything Clients on cloud #perfectfirm

91 TO BUILD A HOUSE Just go and do #perfectfirm

92 REDUCING TIME Gather all of the information before starting Self imposed deadlines communicated to team and clients One job at a time worked on uninterrupted time Productization and systemization of everything Clients on cloud #perfectfirm

93 FIRM DEVELOPMENT PROCESS GROWTH PROFIT Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. Team Performance Client cloud CAPACITY Firm cloud Policies / processes Workflow management Efficiency model

94 @therobnixon #perfectfirm

95 FIRM DEVELOPMENT PROCESS GROWTH PROFIT Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. Administration team Team Performance Client cloud CAPACITY Firm cloud Policies / processes Workflow management Efficiency model

96 FIRM DEVELOPMENT PROCESS GROWTH PROFIT Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. People mix / location. Administration team Team Performance Client cloud CAPACITY Firm cloud Policies / processes Workflow management Efficiency model

97 GROWTH PROFIT #perfectfirm

98 FIRM DEVELOPMENT PROCESS Niche markets GROWTH People mix / location. Administration team Team Performance Client cloud CAPACITY PROFIT Firm cloud Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. Policies / processes Workflow management Efficiency model

99 NICHE MARKETS Are there lots of them? Do they have the ability to pay? Does your intellectual property help them? Do you enjoy working with them? Will the niche exist in business in the #perfectfirm

100 FIRM DEVELOPMENT PROCESS Web dominance Brand development Best buyer strategy Niche markets GROWTH People mix / location. Administration team Team Performance Client cloud CAPACITY PROFIT Firm cloud Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. Policies / processes Workflow management Efficiency model

101 @therobnixon #perfectfirm

102 FIRM DEVELOPMENT PROCESS Lead generation program Web dominance Brand development Best buyer strategy Niche markets GROWTH People mix / location. Administration team Team Performance Client cloud CAPACITY PROFIT Firm cloud Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. Policies / processes Workflow management Efficiency model

103 MARKETING GRAVITY ACT LIKE A THOUGHT LEADER CLEVER USE OF TECHNOLOGY CONTENT MARKETING EVENTS SEMINARS / WEBINARS ENDLESS LEADS WEB DOMINANCE DIRECT RESPONSE MARKETING SOCIAL PROOF #firmofnow

104 FIRM DEVELOPMENT PROCESS Sales process Lead generation program Web dominance Brand development Best buyer strategy Niche markets GROWTH People mix / location. Administration team Team Performance Client cloud CAPACITY PROFIT Firm cloud Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. Policies / processes Workflow management Efficiency model

105 SALES PROCESS

106 FIRM DEVELOPMENT PROCESS Sales skills Sales process Lead generation program Web dominance Brand development Best buyer strategy Niche markets GROWTH People mix / location. Administration team Team Performance Client cloud CAPACITY PROFIT Firm cloud Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. Policies / processes Workflow management Efficiency model

107 @therobnixon #perfectfirm

108 FIRM DEVELOPMENT PROCESS No. projects / client / year Average project value Retention system Sales skills Sales process Lead generation program Web dominance Brand development Best buyer strategy Niche markets GROWTH People mix / location. Administration team Team Performance Client cloud CAPACITY PROFIT Firm cloud Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. Policies / processes Workflow management Efficiency model

109 ALL CLIENTS BUYING EVERY SERVICE THEY NEED THAT HELPS THEM ACHIEVE THEIR GOALS!

110 DELIVER THE AWESOME 8 GROWTH ESTATE PLANNING / LEGACY PROFIT SUCCESSION CLIENTS CASHFLOW FINANCIAL RETIREMENT ASSET PROTECTION TAX #perfectfirm

111 FIRM DEVELOPMENT PROCESS Business Advisory Services. No. projects / client / year Average project value Retention system Sales skills Sales process Lead generation program Web dominance Brand development Best buyer strategy Niche markets GROWTH People mix / location. Administration team Team Performance Client cloud CAPACITY PROFIT Firm cloud Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. Policies / processes Workflow management Efficiency model

112 YOUR BUSINESS ADVISORY PROCESS ELEVATE (new leads) Business Performance Review - all clients TRUST assessment for all clients & leads Monitoring Program - Revenue, profit & cashflow Monitor all cloud accounting clients Full planning session Cashflow forecast planning session Growth #perfectfirm

113 FIRM DEVELOPMENT PROCESS Business Advisory Services. No. projects / client / year Average project value Retention system Sales skills Sales process Lead generation program Web dominance Brand development Best buyer strategy Niche markets GROWTH People mix / location. Administration team Team Performance Client cloud CAPACITY PROFIT Firm cloud Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate Productivity People development Client selection Client service Communication program. Policies / processes Workflow management Efficiency model

114 @therobnixon #perfectfirm

115 YOUR IMPACT No. Business Clients Average sales revenue REVENUE IMPACT Revenue IMPACT Average Profit / client PROFIT IMPACT Profit IMPACT Valuation multiple WEALTH IMPACT No. Business Clients Employees / client HAPPINESS IMPACT

116 YOUR IMPACT 200 No. Business clients Clients 100M Revenue revenue IMPACT 20M Profit IMPACT profit 500K Average sales revenue sales Average 20% Profit / profit client Valuation multiple 5 X multiple 100,000,000 REVENUE IMPACT revenue + 20,000,000 PROFIT IMPACT profit + 100,000,000 WEALTH IMPACT wealth + No. Business Clients Employees / client 200 clients 10 employees 2,000 HAPPINESS IMPACT lives +

117 PURPOSE Helping Accountants build great businesses, so that they can build great #perfectfirm

118 Thank You!