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Perspectives on Strengthening Small- and Medium-Sized Practices (SMPs): Parts Eight and Nine
by Giancarlo Attolini, Past Chair, IFAC SMP Committee | September 21, 2015 |
In Part Eight of the nine-part video series, Perspectives on Strengthening Small- and Medium-Sized Practices (SMPs), IFAC SMP Committee Chair Giancarlo Attolini describes an approach to managing client relationships that involves four different types of client profiles. Each client can be assessed based upon its potential to become a long-term relationship and the provision of different types of services, depending upon its size and operations. He also stresses that, in many cases, SMPs could develop the ability to cater to specific niches and industries, which can help reduce competition and may facilitate higher profit margins.
In Part Nine, Mr. Attolini provides a brief overview of the importance of monitoring key metrics regarding sales and client activities. SMPs can use metrics such as percentage of fees from new clients vs. existing clients, average fee per client, and number of services each client purchases. Over time, these metrics provide valuable information about an SMP’s performance, sustainability, and growth.
In Parts One and Two Giancarlo Attolini discussed the importance of SMEs to the global economy, the role of accountants as trusted business advisors, and the use and benefits of engagements to review historical financial statements, including relevant guidance.
In Part Three Giancarlo Attolini provides insights on new service offerings firms can provide to their small- and medium-sized entity (SME) clients.
In Part Four Giancarlo Attolini offers an international outlook on the importance of networking in building and cultivating relationships between SMPs and SMEs.
In Parts Five and Six Giancarlo Attolini discusses the IFAC Guide to Practice Management for SMPs, the concept of value pricing, and the need to embrace social media as a key marketing strategy.
In Part Seven Giancarlo Attolini shares his ideas on staff development and technological awareness.
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