Lynn Northrup

Recently, I have written about defining the future, being unemployed, and underemployed. Having a good insurance policy on avoiding these difficult challenges would be a good idea. However, buying a policy off the shelf from your insurance agent just isn’t an option.

One way to cope with challenging situations emerged from some words of wisdom from Pete Drucker who is known as “the father of modern management.” The best insurance policy is to build and develop a full life complete with diversity, multiple relationships, and interests. It is a process of developing “You Inc.” in ways that allows one to quickly bounce back from adversity and the challenges of life.

In my recent book, Learn to Win – A Major, written in collaboration with Dr. Mo Pickens, we tell golfers they have to invite and embrace challenge. While this book is about golf and providing the insight required by golfers to play better and learning to win, it provides the basic rules for success in any endeavor or line of work.

The first step in challenging uncertainty is to understand your strengths and likewise, identify areas where improvement is necessary. This means that you’ll always be assessing and developing areas of strength. It also means practicing self-development. This requires thinking about your life as it is and how you would like it to be. Golf is a lot like life. You decide what’s working and what’s not working and then implement a plan to fix it.

In the current economic environment, it probably makes sense to make sure you have plenty of options. This could mean creating a second career or a least something that parallels what you are doing now. In fact, this is the path I have taken. I have utilized my knowledge and skill with golf combined with the ability to write to expand from my CPA and consulting career into new areas of endeavor.

I haven’t given up on being a CPA, but I am using my ability to write to create new books, concepts, and other efforts including teaching. This is a great way for me to share my knowledge and expertise in different ways. I have chosen to define the future by creating it.

The future will be a new series of business books which will be based on my teaching and training programs. This information and knowledge will be shared on this web site and with posts to my blogs. Another new book will be developed to help unemployed people discover themselves and ways to earn a new living. We are also going to keep writing golf books with special emphasis on junior golf.

This will keep me energized and focused and provide my readers with an abundance of new ideas and material. It will be an interesting journey that provides a win/win for everyone.

Everyone has their own perspective and method of doing things. The same is true of organizations. This is known as culture. Another term to describe these beliefs, habits, and traditions is known as paradigms. Paradigms are frequently so deeply rooted and ingrained that they become barriers to a person’s ability to see new ideas and opportunities.

Joel Baker who wrote Paradigms: The Business of Discovering the Future states that “a paradigm is a set of rules and regulations that establishes or defines boundaries; and tells you how to behave inside the boundaries in order to be successful.” Paradigms have a tendency to guide people in their jobs and lives. They also can become barriers to change and innovation.

Paradigms provide a framework for understanding the forces that prevent people from successfully dealing with change. In reality, they make available a universal basis for discussing change. Additionally, paradigms help to explain reasons for negative reactions to new ideas. They also provide a basis for reducing the degree to which people see change as threatening.

When dealing with extensive change and turbulence, the concept of paradigms enhances your ability to become more probing and open to new ideas. You can gain thoughts on where to look for the ground-breaking changes that basically rewrite the rules of the game. Expanded insight provides for innovation and development of new ideas. Understanding your limitations opens up new solutions and approaches to problems.

People (and organizations) always tend to see the world through their paradigms. This tendency to follow old rules and regulations causes existing paradigms to filter reality. People need to be aware of the impact paradigms have on their ability to make judgments, make recommendations, and take action.

If you are struggling to find a job or start a new business then this post provides a basis to help you analyze why things are either working or not working. Take time to reflect on your paradigms so you can move beyond the boundaries and limitations that challenge you. A little time spent on this reflection might be more important than time unproductively doing things that aren’t producing results.

Your unemployed, so now what do you do? Keep looking for scare jobs or do you launch your own business? Continuing to look for a job that either doesn’t exist or that is being pursued by untold numbers of applicants feels like a hopeless situation. This is the new reality and a dilemma facing millions of people.

I have been in this situation. It feels awful and tears at your self-esteem. Why me and what did I do to deserve this fate? I’m fortunate that I’m a CPA and licensed to practice accounting and consulting. Still, it didn’t remove the hurt and the feeling of frustration.

I moved on but can still relate to people who are faced with the challenge of “what do I do and how do I do it.” From my vantage point, as an observer and an advisor, I don’t see the employment situation improving. The world is different and likely will never return to the good old days.

The good old days are gone so what are unemployed people to do? Well, they can keep looking for the same old job in the same old way or they can start doing things differently. Businesses have downsized and in other instances relocated. The reality is that the old job the way you knew it no longer exists.

If nothing is available regionally, you may be forced to relocate to areas that do have employment. Another option is to accept less. This is a problem since there are a lot of overqualified unemployed people looking for work. The bad news is overqualified people have been out of work for a long time. How do you respond to the question about “what have you been doing for the last year?”

I have some thoughts about possible steps that unemployed folks might explore. The first step is to brainstorm all the possible options. Some people will opt for more training. Others will decide to get training in areas where there may be a shortage of qualified help. Many people are considering a 2nd or a 3rd career. Ask yourself what do you know and what are you passionate about? You might be surprised to find out that answers to these questions could open up lots of new opportunities. Start thinking outside the lines and then begin drawing some new ones.

People struggle to deal with paradigms and get locked into old ways of thinking. The world is different and it’s going to stay that way. This means developing new strategies and going in different directions. While these steps might lead to different job opportunities, it might also lead to becoming an entrepreneur. Becoming your own boss isn’t such a bad thing. You’re the only one who can fire you.

This is how businesses get started. When you find yourself locked into a tough situation, sometimes the only way out is to take bold new steps and embrace the reality of change. Take a look at the possibilities. Set goals and create a plan. Figure out what you can do and might want to do. This planning process should include a budget so you can stretch your finances over as long a period as possible.

Creating a budget is essential when starting a business. Any business you launch is going to take time to generate adequate cash flow and profitability. Starting a business is a scary process. It also can be a lot of fun. Take time and really think through your business model. While it might seem like an impossible endeavor, realize that millions of people have done it, and so can you. It might be the most important thing you ever do in your life.

I have been both unemployed and underemployed. It is a pretty scary situation that has you asking “what do I do now?” While I can’t fix the situation, I have some ideas based on my own experience that might help.

The unemployment report indicates that the rate in the United States at around 10%, the highest in 26 years, will likely inch higher before leveling off and then starting to decline. When tossing in the underemployed and those who just stopped looking, we’re probably up to 18 %. Then consider that almost 26 % of working Americans have nonstandard jobs. This includes part-time, independent contractors, temps, on-call workers, and others. It’s a bleak picture.

This scenario isn’t limited to the uneducated and untrained, it’s across the board. My sense is that things aren’t going to get better any time soon. In fact, it may get worse. For people in this situation, and others who could land up in this basket, it means you better begin developing some options and a survival plan.

Just sending out more resumes isn’t going to get you where you want to be or need to be. The first step is to carefully assess your situation, your skills, and financial requirements. Establish a clear and honest evaluation of who you are, what you can do, and what you want to do. Most people don’t face up to current reality. This assessment is like a SWOT analysis (Strengths, Weaknesses, Opportunities, and Strengths). Establishing a baseline creates the basis for going forward.

One option is to accept less. Another is to become self-employed. You might have to combine both of these options. Getting more training is another option. As you go through this process of establishing your future direction, it is essential to be honest and realistic.

This situation might mean adopting a second or third career. Ask yourself what can I do? What are you passionate about? As you go through this process, set goals with timelines. Also, set up your financial plan and understand what you need and consider the possibilities of achieving it. The process of setting goals gives you a better chance of success. Your performance will be higher with goals.

Just the thought of becoming self-employed is daunting. It raises multiple questions like how do I get started and what will I need to be successful. Probably the most challenging question will be what will be my business? Only you can answer that question. Since I have been through it and successfully launched my CPA and consulting practice, I can offer advice and assistance.

My first piece of advice is to figure out what you really want to do and think about how that fits into the economic landscape. When you make the paradigm shift from working for someone else to working for yourself you are on your way. It’s a scary leap of faith, but once it’s made you’ll find yourself in a better place.

The road is long and takes a lot of hard work. At least you are controlling your own destiny. Having been through the process, I can tell you that your frame of mind and reference will improve because you have input on what happens. It’s you Inc. so jump in and get started.

Ask and Listen

A key tool in assessing a business is diagnostic interviewing. This is a process of asking questions and then carefully listening to the answers. W. Edwards Deming, the man who helped the Japanese recover from World War II, always said, “Ask the people who are closest to the action to find out what was really happening.” This advice has never failed me.

Diagnostic interviewing provides indications and clues as to problems. It is a technique I have used to conduct assessments in countless organizations. Getting business owners and management to open the lines of communication can be difficult, but it’s worth the effort. Employees might be reluctant to open up and provide the “unvarnished truth.” It is essential for management to make it clear that they want the truth and the facts. Tell me like it is.

The real key to success is listening and hearing what people are telling you. Frequently, what people say with body language is more revealing than the words that are spoken.

Other Thoughts

A business assessment involves more than just looking at financial data. Take time to step back and thoroughly evaluate the business. Find out what hurts and locate the source of the pain.

Assessments should encompass the entire state of the business from every aspect and all points of view. Get an effective understanding of what is happening in the industry and in the business. Get the big picture as fast as possible.

Analysis

Analysis is performed in order to prioritize problems. Examine problems and then break them into their component parts. Conclusions then can be developed to fit the problem. This is when symptoms are distinguished from problems.

Analysis depends on the specific problems under consideration. Here is my three phase approach:

1. Sort out the facts,

2. Applying analytical techniques, and

3. Use judgment to draw conclusions from the analytical process.

Sorting out the facts is a process of categorizing all the information collected during the assessment. The facts should be sorted based on the assessment parameters. There will be a lot of data to match up including the information gathered from the interviews. Take time with this process and avoid jumping to premature conclusions.

Once the facts are sorted, then start applying analytical techniques. There is both qualitative and quantitative analysis. Qualitative techniques are used to analyze factors which can’t be measured in numerical terms. Examples of qualitative techniques include the development of matrices, asking fundamental questions, and searching for patterns. Additional examples include comparison of events for the purpose of identifying both differences and similarities. Qualitative techniques also include development of flowcharts and fish bone diagrams. Applying analytical techniques is very important so think carefully about the potential range of possibilities.

Self-Assessment Toolkit

I developed a Self-Assessment Toolkit for use in my consulting work. You don’t need to use it but the checklists and questionnaires it offers provides a good roadmap. Another component of the toolkit is a team survey to gain feedback regarding employee opinions about the organization.

The 10 Step Process

To get things on a profitable footing I created the 10 Step Process to Building Business Value:

1. Identify and locate the pain.

2. Establish the parameters on what needs to be done.

3. Evaluate your market, products, and services – are they right for your business?

4. Right size the business.

5. Financing the business.

6. Maximize asset utilization and returns.

7. Improve employee productivity.

8. Conduct product and customer analysis.

9. Improve business processes.

10. Measure and monitor performance.

These 10 steps represent the essential components of what every business needs to do to maximize profitability and build the value of their organization. These steps represent a long-term no nonsense approach to value based management that produces results.

This methodology works because I have used it to produce results in a number of businesses. When businesses apply the tools and employ them consistently over a period of time, the benefits are record growth in sales and profitability.

These concepts are not silver bullet fixes. They represent a common sense application of tried and true methodologies that can make the difference between survival and failure.

Health care costs are outrageous and continue to climb. A Business Week article reported that over 700 hundred billion dollars is wasted on countless wasted procedures, fraud, and unnecessary treatments. After thinking about the current state of the economy, this revelation struck home. With all the effort being placed on health care reform, it is shocking that this legislation will have no impact on the rising level of health care costs.

Because the health care system operates on a fee-for-service basis, there is no incentive for doctors and medical care facilities to eliminate waste and do a better job of cost control. While there is no incentive for doctors there seems to be plenty for those who are interested in using the system to fraudulently rip off the system for an estimated $150 billion dollars or more.

In thinking about this mess, I tried to consider some potential solutions. CPAs have lots of tools to assist in fraud investigation. The talent is there to get the job done. Why not engage some of the best resources available to stem the tide of leakage from fraud?

The health care system is a process, just like internal control and business processes. Again, wouldn’t it make sense to tap into the lean experts that are streamlining our supply chain and provide focus on the health care system?

When considering cost containment and control, health care represents one of our biggest challenges. I realize the political sensitivity and polarization that surrounds these issues, but government could wake up and pay attention to the talent pool available and make some real progress in contrast to pushing legislation that isn’t going to get the job done. The answer doesn’t lie with Congress; it requires executive action to take the steps that could really make a difference.

Everyone wants success. The difficulty with achieving success results because it hasn’t been clearly defined. I am going to give you a 5 step approach to achieve success and build the value. The secret to creating value and achieving success starts with a vision for what you want to achieve and how you define success and the steps that are associated with it. The 5 steps necessary to achieve success are:

1. Create a Vision for Success

2. Set Objectives

3. Develop a Strategy for Making it Happen

4. Build Action Plans

5. Evaluate Performance

Following these 5 steps and documenting them are essential to keep your life or your business on track. This doesn’t need to be a complicated process, and in fact, the simpler the better. However, putting these steps into a written document is essential and helps to build the commitment necessary to convert the vision for success into reality.

1. Create a Vision for Success

A mission statement should be brief and focused. It can be nothing more than a few words or phrases that provide a description of how you define success for you and your business. It should become a living document about where you’re headed going down the road. When you define where you are going you have a better chance of getting there.

Your vision statement should spell out where you plan on going and the steps required for getting there. There needs to be a link with the goals and objectives required for achieving the desired level of success. The best vision statements are simple and straight forward. Keep it simple and spell it out in contrast to just thinking about it. Writing the vision versus thinking about it is usually the difference between success and failure.

2. Setting Objectives

After establishing a vision for success, the next step in the process it setting goals and objectives. Setting goals and objectives stems from the vision statement and assessing current performance and the major issues that need to be addressed and how they relate to strategy to accomplish your objectives.

Objectives should specify measureable results that need to be accomplished together with a target date or a time span for completing it. Objectives should be as specific and quantitative (measurable and verifiable) as possible. Development of objectives should specify only what and when it needs to be accomplished and should not venture in to the why and how. Objectives and goals should relate directly to crafting a strategy to achieve your objectives.

3. Develop a Strategy to Make it Happen

Strategy corresponds to the actions and approaches necessary to achieve your objectives and fulfill your vision. The components of strategy include deciding on those attributes which offer the best chance to achieve your objectives or to gain a competitive edge. Strategy is where you focus on the skills, expertise, and competitive capabilities that will set you apart from your rivals.

Strategy is about being different in contrast to something that everyone is or should be doing. It boils down to making the tough choices that create a sustainable competitive advantage. These choices are those that allow you to change the rules in your favor.

4. Build Action Plans

Action plans are when you need to get more specific to clearly identify what has to take place. They represent an opportunity to test and validate your objectives. In addition, they provide a basis for communication for others who need to contribute to or will be affected by what takes place.

The following basic components should be part of the plan development. First, document the specific steps that will be required. Next, it is important to identify the people who will be held accountable making sure that each action step is completed. Developing a timetable getting things done is essential. Make sure to determine what resources will be needed to achieve your objectives. Finally, it is critical to provide feedback mechanisms to monitor progress.

Documentation provides a basis for monitoring the progress of each action step. Incorporate this documentation into a schedule that spells out what needs to get done and when.

5. Evaluate Performance

“If you can’t measure it, you can’t manage it” is a term frequently associated with achieving results. Monitoring and evaluating performance is essential if your vision is to become reality. It might be necessary to reevaluate your strategy depending on how things are working out. Assessing the financial impact is essential in determining if you are achieving the level of expected results. Regularly evaluate your resources. Do you have everything in terms of personnel, materials, information, and other resources to support your vision and strategy? After establishing the vision, the strategy, objectives, and action plans, it is essential to monitor the few vital factors that let you know whether or not you are on track or if modifications are necessary. Continually check your progress and respond appropriately.

Final Thoughts

When creating a vision and converting it into reality is not only critical, it is essential to put it into writing. Written goals and objectives are more likely to be accomplished. Make this a habit and I think you’ll start to see success. Written plans represent a commitment that translates into success.

Running a business in a saturated market if no easy feat – in fact, it’s downright tough. With more and more businesses popping up daily, entrepreneurs are facing the challenge of not only making their product or service available, but rather, making them more valuable than anyone else’s.

With this in mind, small business owners have taken to the web to build the value of their business.

Here’s what they’re doing to effectively build the value of their small business – consider doing the same for your own business!

1. Branding

Creating a recognizable profile for your company and yourself is important when building value online. Whether you run a website, a blog, a collection of social profiles, or all of the above, it’s important to create an image for your business so people will recognize it across the web.

Branding your business online is about consistency. Help your visitors recognize your profiles, blogs, and website visually by adding a simple picture of yourself – not your business logo. The first step in tapping the social sphere as a business entity is creating transparency – in other words, you need to introduce yourself and let your visitors know who you are. By spending time branding yourself first as an authoritative person in your niche, visitors are more likely to stick around and trust you.

Once you’ve successfully branded yourself online as an authoritative source, you can then proceed to brand your product or service.

This step is all about consistency and persistence. To brand your product of service, create an image and let people know it exists – in other words, remind your visitors it’s available where ever possible without spamming them.

One of the best ways to remind your visitors that you have something to sell is to post a banner in your own sidebar, header, and in the footer of your blog posts. Remember, this game is all about reminding your visitor – the more you remind them, the more likely they’re going to buy.

Why?

Because they trust you … don’t they? Wait, how do you build trust online so that you can brand yourself as an authoritative voice?

2. Building Trust

The practice of building trust with your visitors is similar to building credit – it takes time and it requires a record of good history.

To start building trust with your visitors, you need brand yourself as a transparent source of information – that is, someone interested in providing information … for free. Even if you’re helming a business and need to focus on making money to stay alive, you need to position yourself as a source of information and help that visitors can depend on. If you don’t then visitors will happily click away from your site and visit someone else’s – and there are plenty to choose from.

Becoming transparent is simple – just be you. Avoid hiding behind company logos, mystery profile pictures, and other tactics designed to shield your identity from your customers – you don’t want people to think you’re shady. Reveal yourself and give people a reason why they should trust you – it should be clear, to the point, and fast.

Giving your visitors a reason to trust you can happen in as little to one to three steps – if you’re new, chances are it will take a bit longer.

First, create something of value your visitors can use. For example, if you have a blog, create a post that your targeted visitors will find helpful. The goal at this point is to attract your future customers, hook them with helpful content, and lead them to one of two places … which leads us to the second step:

Second, provide your visitor with an impressive “about” page. Whether you’re working from a blog, a social profile, or traditional website, you need to create that “about page” so that your visitors can read more about you once you’ve impressed them with your post (the about page is one of the most popular pages visited on a site). Tell the visitor who you are, what your experience is, and what you’re doing.

It’s completely up to you whether to take the modest approach – some find it effective, others find it effective to blatantly spell out why they’re at the top of their game. Perhaps a balance of both would serve your goals best. Visitors want to be in the hands of a pro, yet too much arrogance or confidence could result in a backfire and you’ll lose the customer.

Usually at this point you will have either gained or lost a new reader, but sometimes readers will stick around undecided, which brings us to the third step … which is more of an ongoing step:

Third, continue to help your visitors with helpful information (such as blog posts, guest posts, eBooks, reports, and more). This step depends entirely on your performance either as a social media personality, blogger, or other web publisher. Your activity and production will determine whether or not your readership grows, shrinks, or flatlines, so it’s crucial to stay on top of it at all times.

Blogging and social activity can be very rewarding, but it requires dedication of time and effort. This brings us to the final method I’d like to explore …

3. Building Useful Content

With the boom of social activity online, including networking, bookmarking, commerce, and more, there’s no question that every business owner online is a hyphenate – that is, you’re a business owner – web publisher.

By publishing blog posts, submitting to article directories, updating your status, and uploading photos or videos, you’re a web publisher. How much you do is entirely up to you – there is no secrete formula or mixture that leads to success … it’s all about experimenting what works and what doesn’t. If you’re selling cameras of developing photographs, you might find more results joining photo sharing sites than video sharing sites. Likewise, you might find that your crowd prefers to follow you short updates than your drawn out blog posts.

Regardless of platform, the point is that business owners should to take advantage of the web by providing useful content for their visitors, followers, and customers.

What type of content?

Helpful, of course! Write an article that solves someone’s problem, provides a possible solution, or other helpful resource. The idea behind producing content is to feed the conversation online and help visitors in the process – those visitors will turn into your customers depending on how well you present yourself as an authoritative voice in your niche.

If you position yourself and your business as a helpful resource, you increase the chance of turning your visitors into customers – especially when you reach out and provide help with your social profiles.

Building value for your business online isn’t all that complex; it just takes time and effort, which for most business owners, isn’t an option. If you have the time and ability to create content, it’s highly recommended. Every piece of content you publish is like an active banner – the more you publish, the more likely you’ll be able to attract some visitors. That said, creating content is also an exceptional way to connect with your customer – it enables you to open a discussion with them, hear their feedback, and even track them as customers. It also happens to be one of the ways small businesses can win customers from the conglomerate giants … connection. For more on this, check out The Power of the Business Owner’s Connection with the Customer.

Brand yourself and your business, build trust with your readers through transparent presentation, and provide helpful content – just a few ways to build value for your business online.

Christopher writes about building more value, finding more customers, and making more money online at the Dapeem blog.

Gaining an understanding of strategy and its objectives is essential not only for business, but in everyday life. I teach this topic to my accounting and finance students and thought it would make a good blog post.

Competitive strategy is really about being different and selecting a different set of activities capable of delivering a unique mix of value to customers. In the process of selecting a different set of activities it boils down to the choices you make to change the rules in your favor so you create a competitive position that eliminates the competition.

Choices to change the rules should include setting the right goals. A sound strategy might be to achieve superior profitability by not becoming too big or growing too fast. It might involve becoming a technology leader. Strategy needs to have continuity and is something that can’t be constantly reinvented. It boils down the basic value you are trying to deliver to customers. It is important to maintain a strategy that is consistent in the face of a multitude of changes.

A good strategy will ensure that its components will drives competitive advantage and sustainability. There should be a simple consistency between each functional activity and the overall strategy. This will occur when activities are reinforcing and there is an optimization of effort. A good competitive strategy will grow out of the entire system of activities.

Essentially there are five steps in developing strategy which are presented as follows:
1. Formulating a strategic vision of the organization’s future business composition and the direction on where the entity is headed.
2. Setting objectives.
3. Crafting a strategy to achieve the desired outcomes.
4. Implementing and executing the selected strategy efficiently and effectively.
5. Evaluating organizational performance and making appropriate corrective adjustments wherever necessary.
These five primary tasks become a continuous loop whereby you are observing, orienting, deciding, and acting on necessary adjustments as needed. In the current economic environment, organizations need to be agile and quick in making these decisions.

Good strategy can involve a variety of approaches. This might include a variety of cost approaches ranging from low cost/low price, differentiation, to a specific market niche. Other approaches include responses to changing market conditions, moves to secure a competitive advantage, geographic market coverage, and vertical integration. In addition strategic approaches include financial approaches, human resources, R. & D., marketing, manufacturing, and collaborative partnerships and alliances. The development of the strategy will certainly consider some of these options.

In addition to various approaches, there are some fundamental components of strategy. Foremost, it will be essential to decide what product or service attributes offer the best chance to win a competitive edge. The next step is to develop the skills, expertise, and competitive capabilities that will set the business apart from rivals. Your choice of strategic components should insulate the business as much as possible from the effects of competition.

Attempt to evaluate your firm or company as to whether it is either conventional or reactive. Another way of looking at the evaluation is to determine whether your firm is distinctive and far-sighted. One way of assessing this is evaluating which issues absorb management’s time and attention. How does management’s point of view regarding the future measure up against the competition? Are you better at improving operational efficiency or at creating new businesses? Is the company’s agenda determined by actions of competitors or is it set based on your own unique vision of the future? Within the organization, what is the balance between anxiety and hope?

Finally, it is essential to assess the quality of your strategic market leadership in terms of the customers being serviced today in contrast to those you expect to service in the future. This same question can be directed to your current competitors and who you expect to compete against in the future. Where are your profits earned today and versus where they will be earned in the future? Effective strategy is dependent on resolving the key questions of what drives your business today in contrast to what will provide the competitive advantage in the future. In too many instances, organizations fail to address these issues and follow the course of plodding from day to day with not real thought of the future.

How valuable are CPAs to their clients? What do clients want their CPAs to do for them? These questions have puzzled me and frustrated me for some time. After giving this some thought I reached the conclusion that clients don’t receive value and CPAs don’t provide the value they are capable of delivering.Creating value lies in the pursuit and development of value propositions. Value propositions aren’t defined in the tax code or in generally accepted accounting principles, yet it is the secret to greater profitability which is created by providing needed and necessary services. Clients want more than taxes and accounting from CPAs. They want and need help with their businesses, especially when economic conditions are tough. This means defining customer value in terms of what services CPAs provide and how they do business with their clients. Here is where you can link price together with reliability, dependability, and convenience of the service provided.

Far too many CPAs provide a service, but miss out on providing and building client value. This occurs because they haven’t taken the time to develop the knowledge and understanding as to what clients really need. You need to ask the key questions of clients so you know what they expect of you and how they think you could help them address their challenges and opportunities. This most likely means the ability to provide them with management consulting in strategic and operational areas.

Developing a basket of services which provide value will allow you to value bill. This begins with understanding clients needs and translates into increased profitability for you relative to the hours expended. You now have a choice on what you charge because the client is receiving greater value from the services you provide.

You might end up servicing fewer clients and receiving greater revenue. Providing added value services to clients you truly want to work with ends up being a win/win situation. You can develop some ideas relative to the types of services by reviewing the list of services I offer both to clients and as resources to CPAs.

Employing a value proposition strategy to your practice is an effective way to re-engineer what you are doing by giving clients the services they need and want. Providing added value to clients puts you in the driver’s seat and lets you value bill in contrast to just being paid for the hours you charged to an engagement. It also creates a better overall client experience since it enhances the flow of communication and avoids difficulties and problems which can occur.

You can now start charging the maximum amount that a client is willing to pay which results in greater revenue and a more productive work environment. You will have happier clients since they now perceive they are receiving the value they wanted and are willing to pay for it. Your practice should grow because happy clients talk and this should translate into increased work. This is truly a way of working smarter and not harder.