A regular feature of our daily interaction with accountants is around the difference between what they are being offered by accountancy software providers as ‘business advisory’ and their understanding of what a good business consultant provides.

Essentially, ‘business advisory’ is light touch advice, based on the accountancy numbers, forecasts and management accounts, highlighting areas of the business to focus on for improvement. Useful for sure, and absolutely the place to begin in setting a client on the path to building a better business, be it a problem solved, or ambition achieved.

But next step is the killer, because whilst the issues to work on have been identified and solutions outlined by the ‘business advisory’ project, the detailed actions to take are missing, leaving the client to experiment in the hope of getting it right. Losing you a new revenue opportunity and quite possibly the whole relationship.

So, business consultancy deals with the next step and the table below shows how.

Client Problem	Business Consultancy Solution	Business Advisory Solution
A one-man plumber asks how to get more customers.	Load a free CRM with local consumer data, get it working, teach how to use it to reach every household with ‘calls to action’.	Sell a management accounting / financial forecasting package. Issue reports and meet regularly to discuss trends. Hand over advice sheets on things to think about to improve specific non-financial performance areas. Coach on cost cutting and cashflow. Project finishes after 6 months when all possible costs have been cut and cashflow accelerated. The basic (non-financial) problem still remains so introduce a £500- £1000 per day coach / consultant. They make a good start but don’t solve the problem either because the amount of time needed to do so is unaffordable. Unhappy client.
A corner shop asks how to get more repeat sales.	Set up a loyalty scheme app to collect customer contact data and provide incentives to return. Train how to use it.
An IT consultant asks how to get more productivity from their people.	Introduce a performance management system, get it working, show how to use it.
An architect asks how to use technology to work more efficiently.	Introduce a project management app, load it and teach how to use it.
A garage asks how to make more profit and improve cashflow.	Carry out a cost and revenue review to identify the SWOTs and create a plan. Implement it together.
A builder asks how to exit the business with enough retirement capital.	Calculate current value and potential value. Implement a value improvement programme. Prepare a sale prospectus and target logical purchasers. Project manage the implementation.
A small manufacturer asks how to recover the business from a big setback.	Create a sales and margin recovery plan and implement it with the client until volume and profits are restored.
A wholesaler’s business has stalled and asks how to restore growth.	Conduct competitor research and SWOT analysis. Create a growth plan to increase sales and implement it together.
Office products business owner wants to take it easy but is stuck working 24/7.	Develop process automation and restructure the team so the business can run itself. Install online pre/post sale reporting so the owner can track performance from afar and intervene early if needed. Coach the owner and team through implementation.
Restaurant owner wants to diversify into commercial catering but doesn’t know how.	Research the market for prepared food consumption in all its forms and identify an underserved area. Develop a plan that builds on existing skills and resources to either start from scratch or make acquisitions. Project manage the implementation.
An online retailer complains of feeling ineffective personally and its effect on the team and the business.	Counsel the owner about their life issues and management style. Take feedback from relatives and colleagues. Develop a personal performance improvement plan and mentor its implementation.

Fine, so business consultancy is the answer but since it’s unaffordable what’s the point of talking about it?

Just this. 90% of consultancy work is manual and very time consuming.

But if automated, the cost collapses to rates so affordable that any business of any size can buy it forever to make permanent improvements to performance and value.

See how Runagood has done it here

…turning any accountant into an AI Business Advisor® to solve every business problem.

By Duncan Collins

Founder of Runagood.com Ltd

Runagood® Blog

Here is what I call real business advice