Accounting Overview Summary
Establishing an accounting business clientele will take time, as the research revealed word-ofmouth/recommendations/referrals as the primary way in which accounting services are selected by new clients. People who are completely new to the area, or who have few established connections, may look to the Yellow Pages or other advertising to establish available services, then call for information or pricing.
According to the County and City Data Book 1994 published by the U.S. Department of Commerce, Greater Market has 27,620 total households and 2,141 business establishments (less than 20 employees). Given that the 35 accounting firms/CPAs/tax preparation services in the area have an average of 200 individual and 50 business clients (accounting firms/CPAs only), each yields a served market of roughly 7,000 households and 1,300 businesses. The established business market appears to be fairly well penetrated, but potential exists for the self-employed, home-based businesses and individuals (all likely captured as "households" in the census data).
Between 1990 and 1996, an estimated 6,400 people moved into Market County (SE WI Regional Planning Commission Annual Report 1996) and 96 new businesses were established (County Business Patterns 1995). Capturing a share of the new arrivals will be a priority for Marcus Accounting.
Competitive Advantage
Internal Assessment of Marcus Accounting Written by the Outside Advisors to the Company.
Strengths of Marcus Accounting include Mary Beth Marcus' broad base of experience in different types of companies from banking to manufacturing, and in different types of financial positions. This experience means Mary Beth understands the needs of small businesses and individuals when it comes to managing money—hence, her tag line "Keeping an Eye on Your Dollar." Her emphasis is on consulting with clients as well as keeping their books, bringing their attention to areas where money could be saved, strategies for better cash flow, etc., in a pro-active manner, as opposed to waiting until the client has a question about something, which may be too late to do anything about it.
This "full service" niche appears to be vacant in the market, with most accounting/CPA firms focused on volume and throughput, leaving little time available to get to know the client's business well enough to become a financial "partner." In addition, Mary Beth's willingness to meet with clients during evening and weekend hours, as well as in their own office or home offers convenience for the client, and is especially attractive to the elderly or disabled. Mary Beth's own in-home office is set up professionally, with adequate equipment to perform the services she offers.
As the business grows (especially among the business customer segment), Mary Beth may need to upgrade to the professional version of the tax preparation software. She may also want to consider offering electronic tax filing services for all clients.
Industry Keys to Success
Following is a list of the industry Keys to Success:
- A Vital Service Designed for the End User
- Customer Care Advantage Program "Keeping An Eye on Your Dollar"
- Controlled Overhead and Operational Costs
- Regular and On-Going Customer Feedback
- Sufficient Forms and Technology/Software Capacity
- Consultation Services - Ongoing
- Dedicated Management and Support Staff
Appendix a -Appendix a - Appendix a - Resume of Ms. Mary Beth Marcus
Olsten, Manpower, Officeteam, Accountemps Employment Agencies
Appendix B - Example Promotional Materials
Appendix C - Example Fee Schedule
