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The accounting profession is finding the growing demand from businesses to have a deep level of knowledge on a wide range of topics. This is 1 reason firms are finding success by selecting a vertical market, but that can be challenging. This session will cover key decision points to find the right fit for your firm.
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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!
