Every practice has been considering how to do this since the accounting institutes authorised the addition ‘and Business Advisors’ and introduced a ‘qualification’.

Thus, many have tried to transition to business advisory, then retreated, because what at face value seemed straightforward and logical was anything but that, in reality.

Enter Runagood® in 2019 with an appealing solution; automated business consultancy processes that do the jobs of selling, analysing, forecasting; planning; implementing solutions, for new, long-term recurring new revenue client projects. All readymade and online with tech licences and training.

What Worked?

Practices that were already providing clients with ‘Financial Management’ services such as budgeting, forecasting, planning, management accounting, fundraising, locum FD services, tax planning, moved relatively easily into full ‘Business Management’ services.

They were already identifying client problems to which Runagood® had immediate solutions. It was a close to a ‘no brainer’ to sell the additional work of a ‘whole business’ performance improvement programme as the benefits had been quantified and were self-evident.

Another favourable factor was their sales culture developed from the need to cost justify the sale of elective ‘Financial Management’ services, rather than the obligatory nature of compliance work arriving automatically.

So, they were already experienced and confident at selling and delivering advice.

What Didn’t Work?

Practices that were compliance-only had a culture of automatic revenue and no experience of selling advice. So, introducing ‘Business Management’ services to even the closest of clients was a step too far for most who feared upsetting important relationships and making mistakes while learning on the job.

Instead, they turned to marketing to find new suitable new businesses willing to buy business advice. Not only did they not have a marketing culture, but any consultant will tell you how hard that is, anyway. And it breaks the cardinal rule ‘you can sell a new product to an old market and an old product to new market, but you can’t sell a new product to a new market’

Yet Compliance-Only Practices Need to Do Something

Their service is being commoditised by software and unqualified competition, so profit erosion is guaranteed.

It is logical therefore, for them to think in terms of providing additional services to the existing client base. Services that will bring in added revenue at better margins and bind the client closer to the practice. Hence the institutes encouraging ‘business advisory’ (but without saying how).

Every practice has a captive client base, which trusts them and has money to spend.

But are the clients up to it?

80%+ are sole traders, just wanting annual tax returns for minimal cost. The remaining 20% are companies who pay a profitable rate and must be nurtured. So, the former aren’t worth the time and for the latter ‘nothing is too much trouble’, to the degree of not upsetting them by presuming to offer business advice which may not work.

So how does a compliance-only practice develop an advisory model from such an unpromising base?

Every business wants to make more money

…regardless of its size or type. And every one has problems and unfulfilled ambitions, whatever they may say to the contrary.

The trick is to crystallise these for them and motivate action from a vision of what is possible.

But how?

By introducing ‘Financial Management’ services. As accountants they already know 80% of how to do it. And the other 20% is easy to add with knowledge modules and standard accountancy software.

This is the route from client past to client future to become the ‘trusted advisor’, developing a ‘process’ operating style. No longer the expert, but the friendly collaborator, working together to find solutions.

It just needs a mindset change. But how easy is that?

Enter personality profiling.

No one can change their character; ‘you are what you are’. But anyone can learn to adapt their behaviour to get the results they want from anyone, by reading them and responding constructively.

That worked…

So, we then identified the 3 types of practice (below):

We now assess every enquiry to see where they fall:

95% are Green
10% are Blue
1% are Gold

And that determines where to begin on the ‘Pathway’

Quite simply:

Greens get a Blue development programme
Blues get a Gold development programme

Find out more here for either a chat or an assessment to see where you are and what your tailored programme would look like. There is room for everyone and it isn’t expensive…

Upgrading from Compliance to Business Advisory – How Difficult?