Goals and Challenges of Australian SME Accounting, Tech and Law Firms

Late last year, Listen Innovate Grow in partnership with The Evolved Group conducted a study of Australian SME Accounting, Technology and Law firms to understand their goals and challenges.

Here are the key takeaways as well as implications for firms as they undertake their growth endeavours.

KEY BUSINESS GOALS

The study found that key business goals of Australian SME Accounting, Tech and Law firms  are:

• Enhancing Profitability
• Business Growth
• International expansion
• Improving customer service

In terms of how these goals would be achieved, the study revealed the following:

Firms plan to increase sales and revenues through:

• Expanding the client base via client acquisition
• Improving client retention
• Improving client engagement
• Expanding market reach via trade shows and better advertising
• Simple Sales Training
• Hiring Business Development Managers using direct hiring platforms

Profit Maximisation to be achieved through:

• Improved product offerings
• Reduced overhead costs
• Revenue growth via enhancing marketing efforts

Market Expansion through:

• Overseas expansion into the Northern hemisphere
• Entering regional markets
• Expanding interstate

To enhance service quality, many accounting, technology and law firms also plan to:

• Leverage new technologies
• Conduct market research
• Improve client experience

Firms recognise that service quality is a key driver for business growth and client retention. AI is increasingly being used by these organisations to gain insights from data, streamline software architecture and develop integrated software platforms that can support market expansion.

Implications and Considerations for B2B Accounting, Technology and Law Firms

• Account Based Strategies (ABS) that are cross-functional strategies are critical to manage key clients and accounts to improve client engagement, deliver the level and types of client service expected and provide an overall excellent client experience. Therefore, it is highly recommended that firms proactively develop, tailored account-based strategies to deliver a holistic end to end cross-functional experience that meets the requirements, preferences and priorities of your key clients and accounts
• Enhanced marketing strategies can help drive revenues. However, marketing initiatives need to be executed as part of an overall holistic, Buyer-Driven Go to Market (GTM) strategy that is aligned to the needs, priorities and purchase behaviours of the buyers of B2B professional services-which are complex and have changed significantly over the past few years
  • Careful examination and consideration of client needs to be taken regarding the use of advertising and trade shows as recent studies have indicated the use of such approaches do not align with the primary research and purchase behaviours of the buyers of B2B Accounting, Technology or legal services
• In terms of identifying opportunities for market expansion, firms need to undertake extensive industry and market research (akas “Listening to Market”) to identify appropriate expansion opportunities that align both with the firms’ capabilities and strategic objectives. For further insights on identify market expansion opportunities, check out my article, “Listening to the Market: A Deep-Dive“.

BARRIERS TO GOALS

This study revealed that Australian Small and Medium Accounting, Technology and Law Firms are facing the following barriers that may impede their ability to achieve their goals

• High competition
• Economic uncertainty
• Clients delaying investments
• Balancing operational priorities such as Client Relations, Research and Development
• Staffing Issues

How can Australian SMEs Respond?

• Undertake industry, market and competitor analyses (ideally quarterly) so that your firm can:
  • Understand its key competitors and identify how to differentiate
  • Fully informed of changing market conditions and adapt accordingly
• Focus on your existing clients by:
  • Meeting with key decision makers from a cross section of your client base to understand their current priorities and challenges
  • Develop and implement account-based strategies to address their key priorities, challenges and requirements including potentially addressing a broader set of their needs
  • Deliver a holistic end to end client experience which provides the engagement, support, service levels your clients seek
• Develop and assess strategic options to drive client acquisition, retention and client spend. Examples of options include: strategic collaborations, joint ventures, enhanced support, financing options

Need help in overcoming barriers to achieve your firm’s a call. Email me to arrange a chat.