Accountant to Advisor Journey
A Forbes article last week asked the question “Is it the end for consultants?”
It is a very good question. The article cited research by McKinsey which showed that 70% of all complex business transformations end in failure.
It can be even more difficult for businesses at the smaller end of the market. Poor professional advice has resulted in one in six small and micro-businesses losing money, with 19% in the past year saying their losses were between £50,000 and £100,000.
This affects the 5.4 million micro businesses employing nine people or fewer, which makes up 94% of all businesses in the UK. And they they don't set out to buy consultancy, but they can run into problems. And when they run into a problem, they look around desperately for someone that can help them.
Unfortunately, those problems often get worse instead of better when a business consultant is hired. Part of the problem being that many of those offering consultancy have never successfully run a business themselves. The cost can also be prohibitive for small and micro-businesses, who struggle to afford rates in the region of £500 per day for more than a day or two. Not long enough to have a lasting effect.
What is needed in the long-term, Duncan says, is to set up an industry body specifically for small business consultants, run similarly to the ICAEW / ACCA and providing industry standards. These could range from practical training, standard client contracts to fee structures, and recourse for any small business owner who is unhappy with the service they receive.
Runagood® provides much of this structure, bringing peace of mind to small business owners, nervous about what to expect. It works by automating the work usually done by consultants which is process-based, such as research, providing a SWOT analysis and drawing up a business plan and an action plan. That means it comes in considerably cheaper than hiring an independent consultant has been until now.
Technology has brought the price down so much that we can provide a £30,000 consulting project for £3,000 – that’s £250 a month, less than £10 per day.
Runagood®’s AI is also great news for accountants who want to move into advisory but don’t know how without a readymade system like this.
It might not spell the end for consultants, but the industry is rapidly changing shape – and that can only be good news for small businesses and the accountants who serve them by providing quality advice profitably yet at prices that sustain projects for long enough to make permanent and beneficial differences.
Get into advisory by booking a 121 planning session by clicking here.