Don't Forget Medium-Sized Companies for Crowd Sourced Funding

Accountant's Minute 177

Medium-sized companies, turnover $2 million to $25 million, are a prime group of clients to whom accountants could consult relative to their directors’/management’s vision for the future to determine whether they're interested in raising capital as a Crowd Sourced Funding company.

These companies could be interested in “scaling up” their businesses to the next level, or even beyond but besides:

  • people;
  • a strategy; and
  • being able to drive execution

...they will require cash.

Growth sucks cash – inventory, debtors, capital expenditure, training, research and development, protecting intellectual property, people, premises, all cost money.

A medium-sized company, keen to “scale up”, could be very interested in understanding the Crowd Sourced Funding Equity Raising process.

In the first instance, you should identify the clients that meet this category.

Why not have a conversation with the clients that you have identified as being medium-sized companies and advise them how Crowd Sourced Funding Equity Raising can assist them to implement their objectives?

But, for accountants to be recognised as the “trusted advisor” for Crowd Sourced Funding Equity Raising, they will need to be proactive in training, marketing, promotion and then first-class implementation.

Your clients and prospects need to clearly understand that your accountancy firm is keen to work with them as they move into this new area which could prove to be an “apprenticeship” for a subsequent Initial Public Offer for a listing on a stock exchange.

The experience of participating in the Crowd Sourced Funding Capital Raising process, working with an Intermediary, accepting that a group of shareholders own a percentage of their company, the experience of having some external directors on their Board of Directors and potentially dealing with auditors, will be valuable experience, if the company ever decides to proceed with an IPO.

Accountants shouldn’t assume that medium-sized businesses know all the details of Crowd Sourced Funding – Mike Rich, Managing Director of Attaché Software in an article in “For Accountants” – October edition, commented about single touch payroll which, as you know, was introduced from 1st July this year for businesses with more than 20 employees.

“The new payroll reporting is a door opener as it impacts medium businesses the most.  But only one in 20 say their accountant has even mentioned it which puts your trusted advisor status at risk.”

Rich went on to say “This is still an opportunity to re-engage with your medium business clients and get talented young staff involved”.

Exactly the same sentiments apply to the Crowd Sourced Funding opportunity that accountancy firms now have available to them – an opportunity to re-engage with medium business clients and get your talented young team members involved.

Crowd Sourced Funding is now operational – now is the time to contact clients who you have identified as meeting the characteristics for Crowd Sourced Funding Equity Raising to fulfil your obligations as the “trusted advisor”.

ESS BIZTOOLS has developed a comprehensive Crowd Sourced Funding Equity Raising Product Package to guide you through the entire process from team training, marketing through to the delivery of an outstanding professional service to your clients.  Why not visit us at  ESS BIZTOOLS' website  -  Crowd Sourced Funding Equity Raising?

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Episode 177 - Don't Forget Medium-Sized Companies for Crowd Sourced Funding

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