Communications can generate revenue!

“In presentations, as in the rest of life, sticking with the same old presenting styles on the basis of ‘that’s how I’ve always done it’ really means you’re standing still while the rest of the world rushes past you.” - Brad Smart, “Selling the Message”

In a podcast recorded last year, Brad Smart made the following comments:

“We are staring down the barrel of high inflation, rising interest rates and the cost of living and the cost of doing business is heading for the moon!”

“This means in 2023/2024 businesses going to face some difficult times.  It’s going to get harder and harder to hold onto our clients as competition for their business will increase.”

“Accountants need to create a real reason to talk to clients more frequently – you need a Communication Plan.”

ESS BIZTOOLS introduced “Business Plus” newsletter. Business Plus is a monthly newsletter for our subscribers to badge and send to their SME clients and prospects. Our subscribers Business Plus as a way of raising issues with clients or prospects, which then they follow up with a telephone call, a few days after the release of the newsletter.

In the November 2023 edition of Business Plus, we suggested that our subscribers should read the newsletter before dispatching it to clients and prospects, and determine which articles that could be discussed with individual clients and prospects.

Let’s run through some of the articles within our latest edition of Business Plus and give consideration to the follow-up that you could make.

Innovation requires budgeting

Budgeting is part of the Predictive Accounting Process which is very important for all business operators but in particular for businesses that are contemplating undertaking the “innovation journey”.

Why?

Business operators need to know where the funding for the business is going to come from and what the end result of research activities, going through the patenting process, focus groups, estimating costs, securing funds by the issue of shares – what does all this mean?

If you know that a client or a prospect is contemplating undertaking a research process which in its totality we are referring to as the “Innovation Journey” we believe that this article will give you a discussion point to start talking to your client – because if they are going to undertake the “Innovation Journey” there is a lot of work to be undertaken!

This type of communication will assist with an ongoing dialogue with clients and prospects on the additional “Business Improvement Services” that your firm could offer.

To give you a better appreciation of the benefits of having this type of communication available to your clients and prospects on a monthly basis, a complimentary copy of the November edition of Business Plus is available. Keep reading to find out how to obtain your copy.

Goalsetting is vital

If you are pursuing a strategy for your company to be committed to “scaling up” it is important that your vision has been divided into separate goals.

This article is targeted at people who want to grow their businesses by “scaling up”.

“Scaling up” means different things to different people. Your client is “scaling up” if they are considering increasing their annual turnover from $800,000 to $2million within two years. Whereas you may have another client or prospect whose current turnover is $3million and he/she is planning to increase that turnover to at least $10million within three years.

Goalsetting is very important in this context because it needs to be clearly expressed within the Business Plan. Some of the goals that could be considered include:

• Exit goals

• Next month’s goals

• Next Quarter goals

• One year goals

• 5 year goals

Within a few days of sending Business Plus newsletter to your clients/prospects, you could then contact those who you believe are interested in “scaling up” their business, to see whether they would like to have further discussions with you. The strategy of the newsletter is to alert your clients and prospects that you can supply the type of “Business Improvement Services” that will help them run better businesses.

Cash Flow Forecast identifies funding shortfalls

The Predictive Accounting Process is very important for every business irrespective of their size.  One of the key documents that is prepared is the “Cash Flow Forecast”.

As accountants we know that it is very important to be able to identify whether the business is going to run out of money – every CEOs nightmare.

This article refers to strategies that could be implemented:

Borrowing additional money – great, as long as the business has security if the loan is going to be more than about $150,000. Many fast-growing companies do not have spare security.

We then move on to discussing capital raising which could be from the following sources:

Section 708 of the Corporations Act: ability to raise up to $2million in 12 months.

Early-Stage Innovation Company (ESIC): incentives are available for investors who invest in an eligible young company that has been involved in the development of new technologies.

Crowd Sourced Funding Equity Raising: if the company’s group annual turnover is lower than $25million and the gross value of assets is less than $25million, the company could raise up to $5million in a 12-month period.

In each of these capital raising opportunities the companies will require a business plan and Predictive Accounting Reports; such as budgets, cash flow forecasts and projected balance sheets.

Assistance will be required in the preparation of the specific documentation required for whatever capital raising strategy they wish to pursue.

This edition of Business Plus gives you the opportunity to follow up clients and prospects who you know are considering their need for additional funds and enquire whether they have read the article and if they have any questions. This is the start of the very important communication process.

You need to plan to start a business

You are not going on a cross-country holiday without looking at a roadmap to work out where you are going to stop and what sightseeing activities are available on the way – would you?  In 2023/24 with higher interest rates and high levels of uncertainty around the world which are causing supply chain difficulties there are a lot of matters which need to be taken into account in planning your business.

In each edition of Business Plus, we endeavour to include at least one article for people considering going into business. It’s great that people are still interested in going into business, but unfortunately we know that there are a lot of problems.

This article aims to alert them of some of the challenges that they will face, because we want our clients to be successful and happy in their business activities.

You could contact those clients and prospects that you know are considering going into business. Ask them if they have read the article and ask them their thoughts. Provide suggestions on what they could do to develop strategies which, hopefully, will make them successful in business.

Portfolio allocations are important

You will find that the management of the business benefits from the preparation of specific responsibilities for the key portfolios within your business.

Most businesses will have 40 – 60 portfolios that should be allocated to the leadership team and team members, so as to ensure the efficient operation of the business and not having everything being the responsibility of 1 or 2 people. That is not good business management!

This article is targeted at clients and prospects who have recently commenced business and may not have completed their business plan, or who are reluctant to delegate responsibility within the business. Our aim is to create the opportunity for you to have a discussion with that client or prospect and, out of those discussions, hopefully this will lead to a work assignment for your firm.

At ESS BIZTOOLS, we don’t agree that a Communication Policy is just sending out emails to clients. Our recommendation is that you distribute Business Plus and then have a plan to follow up specific clients/prospects, to discuss particular issues that have been raised in the newsletter that you think that might be of interest to your clients/prospects. This will hopefully culminate in a professional engagement for your firm.

The Communication Policy is being utilised to send interesting information to your clients and prospects and to generate interesting and challenging work for your accounting team. These types of activities are a “significant contribution to your ability to attract talent and to retain that talent within your firm”.

Click here to obtain your complimentary copy of this month’s edition of Business Plus newsletter. You’re most welcome to utilise this to promote your firm to your clients and prospects.

If you wish to have further discussions, contact us on 1800 232 088 or email to arrange a complimentary initial consult via Zoom.

ESS BIZTOOLS Product Packages

Product packages to assist your firm to implement Business Advisory Services.

Starter Package

Monthly payment: $197 including GST

Discounted upfront payment (12-month subscription): $2,100 including GST

Click here to find out more and to subscribe.

Advanced Package

Monthly payment: $596 including GST

Discounted upfront payment (12-month subscription): $6,500 including GST

Click here to find out more and to subscribe.

Financial Forecasting Package

Monthly payment: $908 including GST

Discounted upfront payment (12-month subscription): $9,900 including GST

Click here to find out more and to subscribe.

Want to know more?

Visit www.essbiztools.com.au.

If you would like to have a discussion about how this concept of virtual CFO services can be supplied by Australian accounting firms please ring our Managing Director, Peter Towers, on 1800 232 088 and we will arrange a complimentary 45-minute Zoom meeting to discuss your firm’s position and to give you our advice.

We believe that this is the blueprint for the delivery of an enhanced range of services by Australian accounting firms to assist SME businesses to add value to their businesses and to assist accountants not only to attract but to retain outstanding talent who want to be involved in the delivery of “real accounting services”.

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