Welcome to The Perfect Firm - PDF Free Download

Welcome to The Perfect Firm Rob Nixon Founder PANALITIX @therobnixon www.panalitix.com #perfectfirm

@therobnixon www.panalitix.com #perfectfirm

#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)

PROMISES DISTURB RESULTS DIRECT / NOT AGREE TOOLS YOU INSPIRE HOW TO S SYSTEMS MINDSET @therobnixon www.panalitix.com #perfectfirm

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% 163% @therobnixon www.panalitix.com #perfectfirm

In the trenches David Auer www.provident.group Tulsa, Oklahoma @therobnixon www.panalitix.com #perfectfirm

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 matter! @therobnixon www.panalitix.com #perfectfirm

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.

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 10-15 3.9% Employment ( 000) 5,652 Annual Growth 15-20 3.95% Businesses 1,273,466 @therobnixon www.panalitix.com #perfectfirm

DISRUPTING A $500BN PROFESSION

CHECKING & PROCESSING @therobnixon www.panalitix.com #perfectfirm

CHECKING & PROCESSING Client side inefficient systems Accountants inefficient systems Government inefficient systems @therobnixon www.panalitix.com #perfectfirm

THERE S A STORM BREWING! @therobnixon www.panalitix.com #perfectfirm

@therobnixon www.panalitix.com #perfectfirm

Convergence of technology @therobnixon www.panalitix.com #perfectfirm

Convergence HEAVY DATA VS of LIGHT technology DATA @therobnixon www.panalitix.com #perfectfirm

@therobnixon www.panalitix.com #perfectfirm

PANALITIX MEMBERS USA

@therobnixon www.panalitix.com #perfectfirm

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 1 2 3 4 5 @therobnixon www.panalitix.com #perfectfirm

CLOUD NZ SINCE 2008

www.indinero.com

We re turning the traditional CPA firm upside down Ricky Lavina CEO - Taxfyle @therobnixon www.panalitix.com #perfectfirm

@therobnixon www.panalitix.com #perfectfirm www.smacc.io

@therobnixon www.panalitix.com #perfectfirm

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 Accountant @therobnixon www.panalitix.com #perfectfirm

#perfectfirm

MODEL CENTRIC SERVICES CENTRIC PURPOSE CENTRIC MARKETING CENTRIC YOU VALUE CENTRIC CLIENT CENTRIC EFFICIENCY CENTRIC CULTURE CENTRIC @therobnixon www.panalitix.com #perfectfirm

@therobnixon www.panalitix.com #perfectfirm

GROWTH PROFIT CAPACITY @therobnixon www.panalitix.com #perfectfirm

THE OLD BUSINESS MODEL People Power X Productive time (%) Average charge rate Write downs X = - Revenue - Labour costs = gross profit overheads = Profit @therobnixon www.panalitix.com #perfectfirm

WHO WAS THE CULPRIT? Reginald Heber Smith 1889-1966 1919 created billable hour Why would you operate an outdated model developed by your great granddaddy? @therobnixon www.panalitix.com #perfectfirm

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 = Profit @therobnixon www.panalitix.com #perfectfirm

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 ACCOUNTING @therobnixon www.panalitix.com #perfectfirm

NEW MODEL IN ACTION Lead Generation 50 conversion X = rate % 70% Existing clients 385 + 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

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 revenue! @therobnixon www.panalitix.com #perfectfirm

38:43 IN ACTION Lead Generation 70 conversion X = rate % 80% Existing clients 385 + acquired clients 56 = Total clients 441 X retention rate % 92.7% Average Projects / X project value X client / year = 3,025 2.4 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 2.4. 43% increase in Revenue 84% increase in Profit Labour costs 1,150,000 = Gross profit 1,817,938 Overheads 529,000 = Profit 1,288,938

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 1 4 3 200 2,200 4 8,800 1,760,000 450,000 (74% GP) 310,000 760,000 1,000,000 (57%) 30% - 506 hours 75% - 1265 hours 316 130

GROWTH PROFIT CAPACITY @therobnixon www.panalitix.com #perfectfirm

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 = 3,900 4 8,800 total client fee 28 hours to complete 316 average hourly rate @therobnixon www.panalitix.com #perfectfirm

FIRM DEVELOPMENT PROCESS Upfront Pricing process GROWTH PROFIT CAPACITY @therobnixon www.panalitix.com #perfectfirm

In the trenches Aaron Blau www.blauco.com Tempe, Arizona @therobnixon www.panalitix.com #perfectfirm

MARGIN PROGRESSION M A R G I N = A H R 1 2 3 4 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 CONTRIBUTION @therobnixon www.panalitix.com #perfectfirm

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 email support Unlimited phone and email support Unlimited phone and email 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 month @therobnixon www.panalitix.com #perfectfirm

FIRM DEVELOPMENT PROCESS Upfront Pricing process WIP and Receivables GROWTH PROFIT CAPACITY @therobnixon www.panalitix.com #perfectfirm

In the trenches Matt Schlyder www.fwo.net.au Brisbane, QLD @therobnixon www.panalitix.com #perfectfirm

FIRM DEVELOPMENT PROCESS Upfront Pricing process WIP and Receivables Write offs / ons GROWTH PROFIT CAPACITY @therobnixon www.panalitix.com #perfectfirm

@therobnixon www.panalitix.com #perfectfirm

FIRM DEVELOPMENT PROCESS GROWTH PROFIT Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing CAPACITY @therobnixon www.panalitix.com #perfectfirm

TO VALUE PRICE Value Belief Value Perception Value Contribution @therobnixon www.panalitix.com #perfectfirm

@therobnixon www.panalitix.com #perfectfirm

FIRM DEVELOPMENT PROCESS GROWTH PROFIT Upfront Pricing process WIP and Receivables Write offs / ons Services mix Value Pricing Average Hourly Rate CAPACITY @therobnixon www.panalitix.com #perfectfirm

THE M ZONE (margin = AHR) PRICING UPFRONT MZ COURAGE EFFICIENCY @therobnixon www.panalitix.com #perfectfirm

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 @therobnixon www.panalitix.com #perfectfirm

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 email / phone calls Phone calls 3-4 times per year Sporadic emails / letter / texts

June 16 at the Stockholm Waterfront in Stockholm. June 19 at Scandic Crown in Gothenburg. June 21 at Norra Latin in Stockholm. www.vismaspcs.se/visma-panalitix @therobnixon www.panalitix.com #perfectfirm

GROWTH PROFIT CAPACITY @therobnixon www.panalitix.com #perfectfirm

In the trenches David Carpenter www.catcher.com.au Newcastle, NSW, Australia @therobnixon www.panalitix.com #perfectfirm

@therobnixon www.panalitix.com #perfectfirm

8 2 5 80 80 50 4,000 4,000 100 400,000 @therobnixon www.panalitix.com #perfectfirm

How much more efficient (% reduction in time) can your firm be? @therobnixon www.panalitix.com #perfectfirm

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 Accounting @therobnixon www.panalitix.com #perfectfirm

TO BUILD A HOUSE Just go and do that! @therobnixon www.panalitix.com #perfectfirm

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 Accounting @therobnixon www.panalitix.com #perfectfirm

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

@therobnixon www.panalitix.com #perfectfirm

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

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

GROWTH PROFIT CAPACITY @therobnixon www.panalitix.com #perfectfirm

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

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 future? @therobnixon www.panalitix.com #perfectfirm

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

@therobnixon www.panalitix.com #perfectfirm

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

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 REFERRALS @therobnixon www.panalitix.com #firmofnow

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

SALES PROCESS

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

@therobnixon www.panalitix.com #perfectfirm

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

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

DELIVER THE AWESOME 8 GROWTH ESTATE PLANNING / LEGACY PROFIT SUCCESSION CLIENTS CASHFLOW FINANCIAL RETIREMENT ASSET PROTECTION TAX MINIMIZATION @therobnixon www.panalitix.com #perfectfirm

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

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 Plan @therobnixon www.panalitix.com #perfectfirm

@therobnixon www.panalitix.com #perfectfirm

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

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 +

PURPOSE Helping Accountants build great businesses, so that they can build great economies! @therobnixon www.panalitix.com #perfectfirm

Thank You!