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Friday 18 November 2016 11:45am Niches: why differentiation is vital for survival ICAEW Practice 2016

ICAEW Practice 2016 Niches: why differentiation is vital for survival

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Page 1: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Friday 18 November 2016 11:45am

Niches: why differentiation is vital for survival

ICAEW Practice 2016

Page 2: ICAEW Practice 2016 Niches: why differentiation is vital for survival

We think differently, are inno

va tive and

to challenge the status quo.

Page 3: ICAEW Practice 2016 Niches: why differentiation is vital for survival

we are social

@aynsleydamery @tayabalitomlin

Tayabali Tomlin & Tayabali Entrepreneurs Group

Tayabali Tomlin & TT Entrepreneurs Club

Download the Tayabali Tomlin App

#icaewPractice

Page 4: ICAEW Practice 2016 Niches: why differentiation is vital for survival
Page 5: ICAEW Practice 2016 Niches: why differentiation is vital for survival
Page 6: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Purpose

“…. we want to enable the UK small business community to thrive through innovative accounting solutions, inspirational advice and powerful connections”

Page 7: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Small business is BIG business

5.5m small businesses in the UK - (up by over 2m since 2000)

Combined Turnover of £1.8 trillion - (½ of the entire private sector)

Incredibly, 1 in every 3 new jobs in the UK in 2014 was created by high growth small businesses

..and, if 1 in every 3 small businesses employed another person, there would be no unemployment

Page 8: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Profit distribution in accounting profession

Page 9: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Why is that? - well everything has changed!

Increased competition and downward pressure on pricingProliferation of small firmsBarriers to entry generally low and exit relatively highTechnology is cheap making scalability easierOffshore accounts production facilities are easier to accessGlobal market - open 24/7

Internet and social mediaOperational excellence and adopting best practice, now only get you in the game!

Page 10: ICAEW Practice 2016 Niches: why differentiation is vital for survival
Page 11: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Think back 10 years ago……….

Tony Blair was PMWindows Vista was releasedSaddam Hussein was aliveThe first tweet was sentFaceBook wasn’t open to the publicEngland lost in the 1/4 finals of the World Cup to PortugalWe still used floppy disksYouTube was launchedBluray was introducedWe had no iPhones…….

Page 12: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Just think what the next10 years is going to belike……….?

Page 13: ICAEW Practice 2016 Niches: why differentiation is vital for survival
Page 14: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Uber Ford

6 years old Valued at $70bn

103 years old Valued at $60bn

Page 15: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Airbnb Marriott

8 years old Valued at $25bn

58 years old Valued at $21bn

Page 16: ICAEW Practice 2016 Niches: why differentiation is vital for survival

“too many opportunitiesare lost simply because youcan’t see them”

Page 17: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Change in technology

1998: Annual revenue of $3.9bn Founded1999: Debuts subscription service

2000: Declines offer for Netflix at £50m2007: Hires new CEO Jim Keyes, formerly of 7-Eleven who says

Rents 1 billionth video and commences steaming service

“I’ve been frankly confused by this fascination that everybody has with Netflix…..Netflix doesn’t really have or do anything that we can’t or don’t already do…….”

2010: Files for bankruptcy 20m subscribers, $2.2bn revenue Valued at $24m Market cap £3.55bn

2015: $6.77bn revenue Value $32.9bn

Page 18: ICAEW Practice 2016 Niches: why differentiation is vital for survival

There hasNEVER

been a timelike this!

Page 19: ICAEW Practice 2016 Niches: why differentiation is vital for survival

4 significant

(global) shifts

Willyam Bradberry / Shutterstock.com

Page 20: ICAEW Practice 2016 Niches: why differentiation is vital for survival

01BABY BOOMERS TURNING 70

Joseph Sohm / Shutterstock.com

Page 21: ICAEW Practice 2016 Niches: why differentiation is vital for survival
Page 22: ICAEW Practice 2016 Niches: why differentiation is vital for survival

MILLENNIAL ADVANCE

02

Page 23: ICAEW Practice 2016 Niches: why differentiation is vital for survival
Page 24: ICAEW Practice 2016 Niches: why differentiation is vital for survival

03TECHNOLOGY ADVANCEMENT

winui / Shutterstock.com

Page 25: ICAEW Practice 2016 Niches: why differentiation is vital for survival

What the heck has happened?

We are at an inflection pointwhere we need a fundamental shift inbusiness strategynothing less is sufficient

Andy Gove - Intel

Page 26: ICAEW Practice 2016 Niches: why differentiation is vital for survival

The knee of the curve

Page 27: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Automation v efficiency

Page 28: ICAEW Practice 2016 Niches: why differentiation is vital for survival

3 Billion new Internet Users

Page 29: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Technology Advancement

Page 30: ICAEW Practice 2016 Niches: why differentiation is vital for survival

04GOVERNMENT

AUSTERITY

Page 31: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Government Austerity

Rising health care costs - from Baby Boomers Fewer jobs and lower income taxesGlobalisation - tax bases overseas

10/15 years to sort

Page 32: ICAEW Practice 2016 Niches: why differentiation is vital for survival

…..what doesthis all mean forus……?

Page 33: ICAEW Practice 2016 Niches: why differentiation is vital for survival

…..this is what#icaewPractice is allabout……

Page 34: ICAEW Practice 2016 Niches: why differentiation is vital for survival

The benefits of a niche practice

Less price sensitivityStickier clientsLess competitionMarketing and pitching becomes easierYou become a KPIEasier for prospects and referral sources to remember youRecruitment becomes easierUltimately leading to an increase in profits

Page 35: ICAEW Practice 2016 Niches: why differentiation is vital for survival

CULTUREENTIRE ECOSYSTEM

THAT ENABLES A COMPANY TO DELIVER

EXCELLENCE, VALUE & MAKE A DIFFERENCE

AYNSLEY DAMERYAndrey Armyagov / Shutterstock.com

Page 36: ICAEW Practice 2016 Niches: why differentiation is vital for survival

What the niche for me?Niche by service area, sector or industryWhat do your top 20 clients have in common, what do they value, why did they choose to work with you and what makes them love you?Don’t have too many…..The focus must be on the clientBe authentic

There is no one way!

But remember: sustainable market, with a need, a large pool of prospects, who want to pay….

Page 37: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Jim Goetz - Sequoia Capital

Page 38: ICAEW Practice 2016 Niches: why differentiation is vital for survival

The best products and services in the world don’t simply invite people to say ‘this is awesome’; they remind people of how great they are themselves.

Bernadette Jiwa

Page 39: ICAEW Practice 2016 Niches: why differentiation is vital for survival

People are choosing to spend their money with companies whose actions resonate with their values—companies that thrive by doing the right thing and by making things customers love instead of trying to get customers to love their things.

Bernadette Jiwa

Page 40: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Our job is not simply toobsess about thefeatures and benefits ofwhat we’re making: it isto wonder and careabout the difference wecan make to people andto our world.Bernadette Jiwa

Page 41: ICAEW Practice 2016 Niches: why differentiation is vital for survival

believe

#icaewPractice

Page 42: ICAEW Practice 2016 Niches: why differentiation is vital for survival

…..let’s together create an amazing business in amazing times!

Page 43: ICAEW Practice 2016 Niches: why differentiation is vital for survival
Page 44: ICAEW Practice 2016 Niches: why differentiation is vital for survival

we are social

@aynsleydamery @tayabalitomlin

Tayabali Tomlin & Tayabali Entrepreneurs Group

Tayabali Tomlin & TT Entrepreneurs Club

Download the Tayabali Tomlin App

#icaewPractice

Page 45: ICAEW Practice 2016 Niches: why differentiation is vital for survival

Friday 18 November 2016 11:45am

Niches: why differentiation is vital for survival

ICAEW Practice 2016