Business Strategy Required to Manage Risk

Are you ready to grow your business?  According to Statistics Canada[1],  the top three reasons businesses fail is lack of vision, lack of knowledge, and the inability to use outside advisors effectively. 

Lack of marketing strategies also have substantial impact — firms that fail do not establish a market niche. If any of these concerns apply to your practice or your clients’ businesses, taking time to do some strategic planning now makes sense. 

Statistically, firms fail mostly because of lack of management skills — lack of knowledge, inability to run a firm financially, and the inability to market to their niche. Strategic thinking is necessary to avoid business failure and successful firm owners make time to do so. Transition problems can be averted with a focus on three primary issues:

• The ability to ride through an external shock like economic downturns, which requires vision, initiative, and  adaptability. Successful owners can answer the following questions:
  • Do you have a vision for your firm over the medium to long term? 
  • Where do you want to take your firm’s growth?
• A focus on the development of equity — a shift away from the day-to-day activities — to better understand what drives profitability and how to develop a unique advantage? This is critical in order to attract investors. Key questions are the following:
  • Is there an ongoing process around an exit strategy?
  • Is the firm independent of one person’s talent or personality? 
• The ability to establish a market niche, or a competitive advantage that will direct the best way to implement change, improve productivity, and meet the expectations of clients, regulators, and employees.
  • Is there a marketing plan in place?
  • Can market share be maintained or grown despite new competition?

The DAC (Distinguished Advisor Conference) provides an opportunity to build relationships with advisors who know and understand the challenges of tax and financial services companies. A news release about this annual event, being held November 10-13 in Ojai, CA, follows. Are you ready to grow your business?  If so, you should be there.