Vertical nicheil final

Selecting Vertical Markets for a Digital FirmThomas R. Gawne, CPA, Director of Professional Services, CPA.com

Thomas Gawne, CPA, Director, CPA.com Director of Professional Services

28 years in the tax and accounting

technology sector

Speaker, Facilitator, Consultant

Your Title Goes Here

Transforming how firms deliver Client Accounting Services as they transition their practices to be more efficient and productive by leveraging innovative new

technologies and services.

Empowering CPA’s and businesses for the digital age

AICPA & CPA.com

PracticeWorkflow

ProfessionalServices

CPA.comServices

AICPA Store

LMS

Mobile Apps

Audit Confirmations

Payroll

GeneralLedger

Bill Pay

CPA.com Firm Solutions Portfolio

Training

Professional Services

Guiding your journey to meet the unique needs of your firm:• Training • Consulting• Change Management• Firm Tested Processes• Firm Centric• Client Centric• Client Implementations • Webcasts

• Live Workshops• Onsite Consulting

Vertical focus

Agenda

Vertical Selection

Right Tools in the Toolbox

Vertical Expansion

Putting it in Action

Wikipedia

vertical market (plural vertical markets)

1.(marketing) A market made up of similar businesses and customers with particular specialized needs.

2.A vertical market is a market in which vendors (Accounting Professionals) offer goods and services specific to an industry, trade, profession, or other group of customers with specialized needs.

Geoffrey Moore

Whitepaper Released

http://www.cpa.com/conference

Why Target Market Focus?

Clients aggregate into market segments Communities with shared interests Self-organized around industry, geography, & profession Who talk to each other before making buying decisions

Two lessons from Marketing 101 Cost-effective growth is impossible without target market

focus Tipping point dynamics accelerate your success

Target marketing success factors Participate in the segment’s relationship network Develop domain expertise relevant to the segment Over-deliver to create strong reference accounts Encourage word-of-mouth referrals

More Specialization = More Value!

Medical Practices Orthopedic clinics Pediatricians Chiropractors

Construction Electrical Companies Plumbing Companies

Non-Profit 401(c3) 401(c6) 401(c7)

Service Opportunities Grow

HR/Staffing decisions Software consultation Business expansion decisions Business analytics/comparisons Insurance decisions Deeper more impactful client relationships!

Digital CPA

Client Accounting Services

Virtual Controllership

Collaborative Advisory Services –

Virtual CFO

Write-Up

Business Process Outsourcing

Advisory

Transactional

Span a Service Spectrum

Specialize in Client Industry VerticalsHealthcareNot-For-Profit

TechnologyProfessional Services

Property ManagementGovernment

Contractors

RetailFranchises

Selection

It Starts with Why

Golden Circle:

“Start with Why”

Critical to Firm Success

Source: Simon Sinek

Vertical Selection – The “Why” Fit

Passion, Mission – the “why”

What is your firm most passionate about?

Tie in to Firm or Personal “Mission”

Existing Expertise Fit

Is there already expertise in this vertical?

Do you have existing clients in this vertical?

Untapped expertise within your firm?

Market Assessment Fit

Big enough to matter

Small enough to lead

Marketplace penetration

Room for growth?

Can we make money at it?

Need overall market analysis

Client Needs Assessment

What is the key information they need for success?

Develop “core” then expand down to key KPI’s

Attain a deep knowledge of client best practices Periodicals Trade Associations Web Chat, Blogs, etc.

Vertical Selection – Culture Fit

Does the firm culture fit the vertical?

Getting Vertical through the Cloud

Business Intelligence Reporting

Real-Time Client

Collaboration

Standardized Workflows

Client Accounting Capability

driven through cloud

computing

• Professional Services –

90%

• Construction – 76%

• Retail – 75%

• Not-for-Profit – 73%

• Manufacturing – 65%

• Wholesale Distribution – 61%

• Technology Companies –

59%

• Transportation – 48%

• Hospitality – 45%

• Franchises – 40%

• Government – 29%

Most Popular Client Verticals for Outsourced Accounting Services

Tools

Tools

Key Principles All Digital, all in the cloud Designed for timely “prospective” insight Collaborative

Tools – Core Elements

A/P – Bill Pay A/R – POS Payroll Inventory Control Accounting – G/L Document

Management Tax System Other Industry

Specific

Bill.com Industry Specific Paychex Industry Specific Intacct Sharefile, Box, etc.

CCH, Thomson, Etc. As needed

Signature Functions Applications

Tools – Workflow Effects

Digital Core Transaction Capture

Information & Insight Delivered Prospectively

Intelligent, Timely Business Decisions Made

Tools - Collaboration

Video Conferencing – Skype, Zoom, etc. Web Conferencing – WebEx, GoToMeeting,

etc. Social Media – LinkedIn groups, Twitter feeds

Tools – Management Tracking

Workflow Management – XCM Contact Management – CRM Internal KPI Trackers

Expansion

Expansion – Within Existing Vertical

On going services

Additional need

identified

Services scope

expanded

Expansion - Parallel Verticals

Review “like” parallel verticals for need & process Dentists vs. Optometrists Differing types of Restaurants Auto Repair vs. Body Shops

Expansion – New Startups

Create new start-ups among different verticals

Template appropriate process steps

Concluding Thoughts

Selection key concepts Tools of the vertical trade Expansion past that first vertical Make it happen!

Resources

Reference Material

“Start with Why” by Simon Sinek Ted talk “The Golden Circle” video

“The Power of Real Time Financial Data & Analytics to Penetrate the Restaurant Niche Market” A case study whitepaper by Dixie McCurley of

Trusted CFO Solutions available at CPA.com “Leveraging the Cloud to Start or Grow a

Vertical Niche Practice” A Whitepaper by C. Keith Willis CPA.CITP, Cohen

& Company available at CPA.com

Available at www.CPA.com

Copyright © 2014 American Institute of CPAs. All rights reserved.

Thank You

Enjoy the Remainder of the Conference!