Whether you are new to advisory or looking to advance your existing offering, the opportunity to learn from other members in the field can give you valuable insights. We asked Paul Layte FCA, Practitioner Business Advisers Community Advisory Board member, to reflect on the top 5 questions he would pose to anyone considering developing their advisory practice, as well as any further advice he would share.
Advisory. That word that means everything but describes nothing specific. Whether you like that word to describe using your accounting skills as a force for good or not here are my top questions and tips if you and/or your practice is thinking about starting or advancing your advisory offering.
My top 5 questions to ask yourself and practice about your business advice offering
- What problems am I looking to solve? You can start here with a blue-sky piece looking at particular interest areas, skills, industries, topics or go practical and inbox audit of every question or piece of advice you have been asked for over the last year or so. Identify common themes, frequency and potential size and value to the client. If you match more often than not you might find implementation is going to be the focus but if you don’t find many matches you might need a game plan that looks at serving todays clients whilst building and offering for tomorrows.
- Do you have the capacity? Perhaps if you would classify your practice as busy, busy, busy there isn’t time to dedicate to a new challenge. On the other hand perhaps you would rather be busy doing something else. Either way having or making time is required. Hiring, technology, outsourcing, task shifting, reducing client numbers and more are all often discussed ways to increase capacity. If it’s important, you will find a way.
- Do you know what the product is? Compliance products were largely scoped by others so accountants and tax professionals have often not productised before. Productising your chosen advice offering will make it much easier to implement, deliver and monetise. Who the product is for, the problems it solves or benefits it brings, how it will be delivered, how the client will feel after it has been delivered, what the investment (not cost) is required from the client and how it is differentiated? The stronger the product the stronger the results for you and your client.
- Is your practice positioning right? If you know what problems you are trying to solve and what products you will offer to solve them. Plus, you have the capacity to do it then you need to ensure you and your practice are positioned correctly to communicate all that. Your brand, online and offline profiles and assets need to communicate clearly to existing and future clients.
- How will you deliver? The usual who/what/where and when elements come up here and it’s important to have at least an initial view of this upfront to guide a more detailed implementation plan later.
My top 10 tips to prepare or advance your business offering
Once you’ve answered these questions for yourself, here are what I consider to be my top 10 tips to prepare or advance your business offering.
- Stay up-to-date: Stay up-to-date with the latest business trends, regulations, and economic changes that may affect your clients. You will surprised how many don’t have a full appreciation for the landscape and how it my impact their business. Dealing with inflation, lending appetite, bank failures, pandemics and more is all par for the course these days.
- Develop a business mindset: Think like an entrepreneur and try to understand your clients' businesses from their perspective. Tools like the business model canvas can be a great help to quickly build a picture.
- Build strong relationships: Invest time to build strong relationships with your clients. Listen to their concerns, understand their goals, and establish trust. If you can do this as part of a structured advisory service all the better.
- Weaponise financial data for good: Use financial data to analyse your clients' business performance. Assume high quality monthly data is required. This can help you to identify areas where they can improve their profitability, reduce costs, or manage cash flow. Customer reviews and supplier reviews are low hanging fruit.
- Understand industry benchmarks: Know the key performance indicators (KPIs) for your clients' industries and what good looks like. Help them understand where the biggest improvements could be made. The true entrepreneur responds well to this gamification of business.
- Develop communication skills: Develop strong communication skills to convey your advice in a clear, concise, and understandable way. A touch of empathy also helps build bonds. Role plays in your team help build confidence as a training exercise and remember proper preparation and structured agendas are key.
- Use technology: Use technology to streamline your accounting processes and improve efficiency to arrive at the numbers quickly so you can spend more time on the insight and action side. Cloud accounting is a given but build into that a technology stack that supports what you are trying to achieve.
- Collaborate with other professionals: Collaborate with other professionals, such as lawyers, bankers, other accountants and business consultants, to provide a holistic approach to business advice if you are going down that road or simply tailor your advisory approach to the skills that exist in your practice today and ones that can be developed into tomorrow.
- Be proactive: Be proactive and anticipate your clients' needs. Offer solutions and advice before they ask for it. One of the best ways to do this is have regular interaction with the client as it is amazing how far 30 minutes a month can get you.
- Focus on value: Focus on providing value to your clients by offering relevant and actionable advice that helps them achieve their goals. As a rough rule, try to provide 10 times the value you charge. Keep a value register for each client of the tangible and intangible value you have added. Review this regularly with them.
About the author
Paul Layte FCA
Paul is a business growth specialist who has founded, grown (to £100m+) and exited several high profile corporate start-ups in the telecoms & technology area. Paul has worked in board level roles in four different listed businesses and been a Non-Executive director & Chairman in a number of smaller ones. A chartered accountant by background with a passion for growing businesses of all shapes and sizes which he now does through his own advisory led chartered accountancy firm Next Level Business where Paul acts as an advisor and CFO to many ambitious start-ups and scale-ups.
Interests
Paul is a keen motorsport enthusiast of anything with an engine and wheels and also like to watch rugby of the English and Welsh variety whilst reminiscing about past sporting glories in the swimming pool.
