Vertical nichefinal
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Selecting Vertical Markets for a Digital Firm Thomas R. Gawne, CPA, Director of Professional Services, CPA.com
description
When looking for professional services today people are looking for experts in the field. To be an accountant offering accounting services you need to develop verticals/ niches that you will serve to be that true expert and become the trusted business advisor to your clients. Review the selection process, tools to arm yourself with and how to expand in a vertical niche.
Transcript of Vertical nichefinal
Selecting Vertical Markets for a Digital FirmThomas R. Gawne, CPA, Director of Professional
Services, CPA.com
Thomas Gawne, CPADirector, CPA.com
28 years in the tax and accounting technology sector
Speaker, Facilitator, Consultant
AICPA & CPA.com
Transforming how firms deliver Client Accounting Services as
they transition their practices to be more efficient and productive by
leveraging innovative new technologies and services.
Empowering CPA’s and businesses for the digital age
Practice
Workflow
Professional
Services
CPA.com
Services
AICPA Store
LMS
Mobile Apps
Audit
Confirmations
Payroll
General
Ledger
Bill Pay
CPA.com Firm Solutions Portfolio
Training
Professional Services
Guiding your journey
to meet the unique
needs of your firm:• Training
• Consulting
• Change Management
• Firm Tested Processes
• Firm Centric
• Client Centric
• Client Implementations • Webcasts
• Live Workshops
• Onsite Consulting
Vertical Focus
Agenda
Vertical Selection
Right Tools in the Toolbox
Vertical Expansion
Putting it in Action
Wikipediavertical market (plural vertical markets)
1.(marketing) A market made up of similar businesses
and customers with particular specialized needs.
2.A vertical market is a market in which vendors
(Accounting Professionals) offer goods and services
specific to an industry, trade, profession, or other group
of customers with specialized needs.
Geoffrey Moore
Whitepaper Releasedhttp://www.cpa.com/conference
Why Target Market Focus?
Clients aggregate into market segmentsCommunities with shared interests
Self-organized around industry, geography, & profession
Who talk to each other before making buying decisions
Two lessons from Marketing 101Cost-effective growth is impossible without target market focus
Tipping point dynamics accelerate your success
Target marketing success factorsParticipate in the segment’s relationship network
Develop domain expertise relevant to the segment
Over-deliver to create strong reference accounts
Encourage word-of-mouth referrals
More Specialization = More Value!
Medical Practices
Orthopedic clinics
Pediatricians
Chiropractors
Construction
Electrical Companies
Plumbing Companies
Non-Profit
401(c3)
401(c6)
401(c7)
Service opportunities grow
HR/Staffing decisions
Software consultation
Business expansion decisions
Business analytics/comparisons
Insurance decisions
Deeper more impactful client relationships!
How the Restaurant Niche Got Started for One
Firm . . .
Passionate about the food service industry Existing clients
•Accounting Cleanup
•Disparate Systems
• Inaccurate Data
•Out-of-balance accounting
•Tax Compliance
•Employer Tip Credit
•Cost Segregation
•Opening new locations
Client Needs
•Management reporting
•Uniformed, standardized accounting system and structure
• Internal Controls
Restaurant Industry
Niche
Wh
y th
e R
esta
ura
nt In
du
str
y?
To Transform Restaurant Accounting
Restaurant Group
Consistent Processes
Cash Control
Consolidated Financials
Multi-Entity Reporting
Full Financial Visibility
Cloud Based Systems
Today: Disconnected Systems Ideal: Connected/Holistic
QuickBooks POS Payroll
Manual Processes
RestaurantManagers
Many checkbooks
Several locations
Bookkeeper Inventory
Digital CPA
Client Accounting Services
Virtual Controllership
Collaborative Advisory Services –
Virtual CFO
Bookkeeping
Business Process Outsourcing
Advisory
Transactional
Specialize in Client Industry Verticals
Healthcare
Not-For-Profit
Technology
Professional Services
Property Management
Government Contractors
Retail
Franchises
Selection
It Starts with Why
Golden Circle:
“Start with Why”
Critical to Firm Success
Source: Simon Sinek
Vertical Selection – The “Why” Fit
Passion, Mission – the “why”
What is your firm most passionate about?
Tie in to Firm or Personal “Mission”
Existing Expertise Fit
Is there already expertise in this vertical?
Do you have existing clients in this vertical?
Untapped expertise within your firm?
Market Assessment Fit
Big enough to matter
Small enough to lead
Marketplace penetration
Room for growth?
Can we make money at it?
Need overall market analysis
Client Needs Assessment
What is the key information they need for
success?
Develop “core” then expand down to key KPI’s
Attain a deep knowledge of client best practicesPeriodicals
Trade Associations
Web Chat, Blogs, etc.
Vertical Selection – Culture FitDoes the firm culture fit the vertical?
Getting Vertical through the Cloud
Business
Intelligence
Reporting
Real-Time
Client
Collaboration
Standardized
Workflows
Client Accounting Capability
driven through
cloud computing
• Professional Services – 90%
• Construction – 76%
• Retail – 75%
• Not-for-Profit – 73%
• Manufacturing – 65%
• Wholesale Distribution – 61%
• Technology Companies – 59%
• Transportation – 48%
• Hospitality – 45%
• Franchises – 40%
• Government – 29%
Most Popular Client Verticals
for Outsourced Accounting Services
Tools
Tools
Key PrinciplesAll Digital, all in the cloud
Designed for timely “prospective” insight
Collaborative
Tools – Core Elements
A/P – Bill Pay
A/R – POS
Payroll
Inventory Control
Accounting – G/L
Document Management
Tax System
Other Industry Specific
Bill.com
Industry Specific
Paychex, ADP
Industry Specific
Intacct, Xero, QuickBooks
Sharefile, Box, etc.
CCH, Thomson, Etc.
As needed
Signature Functions Applications
Tools – Workflow Effects
Digital Core Transaction Capture
Information & Insight Delivered Prospectively
Intelligent, Timely Business Decisions Made
Tools - Collaboration
Video Conferencing – Skype, Zoom, etc.
Web Conferencing – WebEx, GoTo Meeting, etc.
Social Media – Linked In groups, Twitter feeds
Tools – Management Tracking
Workflow Management – XCM
Contact Management – CRM
Internal KPI trackers
Expansion
Expansion – Within Existing Vertical
On going services
Additional Need
Identified
Services scope
expanded
Expansion - like parallel verticals
Review “like” parallel verticals for need &
processDentists vs. Optometrists
Differing types of Restaurants
Auto Repair vs. Body Shops
Expansion – New Start Ups
Create new start-ups among different verticals
Template appropriate process steps
Concluding Thoughts
Selection key concepts
Tools of the vertical trade
Expansion past that first vertical
Make it happen!
Resources
Reference Material
“Start with Why” by Simon Sinek
Ted talk “The Golden Circle” video
“The Power of Real Time Financial Data & Analytics to
Penetrate the Restaurant Niche Market”
A case study whitepaper by Dixie McCurley of Trusted
CFO Solutions available at CPA.com
“Leveraging the Cloud to Start or Grow a Vertical Niche
Practice”
A Whitepaper by C. Keith Willis CPA.CITP, Cohen &
Company available at CPA.com
Your Title Goes Here
Staying Connected
@CPAcom
@ThomasGawneCPA
@PetePotsosCPA
@pwhitmo
Thank You
Enjoy the remainder of the
Conference!
