by Mark | Jan 25, 2022 | Uncategorized
Business Growth Strategies: Boost Your Profitability & Improve Your Business’s Long-Term Value
Every business faces the existential threat of competitors. Many small businesses don’t make it to the ten-year mark. For this reason, you have to be strategic from the very start as a small business owner. If you don’t have a tangible development strategy for your business, you risk losing business to your competitors and even obsoletion.
What’s the one thing you can do to ensure your small business is sustainable? A growth strategy is a clear, actionable plan that will set your business on the path to long-term success. It’s a plan that makes your position in the market more dominant and stable while capitalizing on opportunities for market expansion.
What’s more, you may run a small business now, but that may not always be the case. Inevitably, you’ll need the help of small business advisory services to develop a growth strategy that orients your company towards success and ensures the sustainable expansion of your business.
There are four major business growth strategies that will ensure growth and profitability go hand in hand for your company.
1. Increase Market Penetration
A market penetration strategy aims to increase the sales of your products or services within your current market. Pricing is one of the main tactics companies use to grow their share of the market while increasing revenues. Lowering prices and bundling product offerings work well in gaining traction in market portions you haven’t yet penetrated.
As a small business owner, it may not always be practical to charge considerably lower rates for your offerings. Lowering prices typically work when costs can be spread over a larger number of goods. As such, it’s important to work with a small business advisor to determine which market expansion strategies will work best for you. Some strategies employ social media campaigns, direct sales outreach, and other marketing strategies to reach untapped market segments.
2. Product Development and Diversification
There’s a reason why Apple releases a new iPhone every year – to keep customers coming back to buy the newest release. Improving existing products is an efficient yet cost-effective method for product development since you don’t have to dedicate a lot of time and resources to creating a new product. A well-designed product development strategy can breathe new life into your business, helping your brand stay relevant with its customer base while naturally growing your market share.
Similarly, market conditions evolve with time, as do consumer preferences, so it makes sense to adjust your product mix accordingly. As a business growth strategy, product development helps you keep pace with changing technologies, trends, and preferences, while diversification opens up new markets for your business.
3. Strategic Partnerships and Acquisitions
In this strategy, you can grow your market share by collaborating with complementary businesses. Partnering with another small business will give your company access to its existing audience. Ideally, the partnership ought to benefit both businesses significantly. It can involve developing a new product that serves the interests of both parties or hosting an event to promote both brands.
Acquisition is another business growth strategy that can increase your market share. It involves buying a large portion of another company to gain control of its operations. The principal motive for acquisitions is to create value, whether by increasing economies of scale, business diversification, or increasing market power.
Strategic partnerships and acquisitions require a great deal of market research. A business advisory firm will provide you with the data and tools needed to make the right decision.
4. Market Development
Market development is a business growth strategy aimed at capturing an entirely new market share. Small businesses often struggle to gain a footing in competitive markets because they don’t have the same resources as larger brands. That’s why it’s important to evaluate your company’s market position and narrow down your target.
Every market can be divided into smaller subsets based on factors such as demographic characteristics or buying habits. Focusing on a specific market segment like underserved or unserved demographics, can help you expand your business. Plus, creating a marketing strategy that appeals to a specific group of potential customers is far easier than trying to appeal to a massive group.
Transform Your Firm with a Successful Advisor Partnership to Learn More about Business Growth Strategies
FMA CPA is a CPA firm in Clearwater that works with small businesses to improve their operational and financial management strategies. Contact us to develop a business growth strategy that will propel your firm to new heights. Contact us to develop a business growth strategy that will propel your firm to new heights. We will assist you with our business advisory and tax planning services and ensure your business develops a sound strategy for long-term growth.
by Mark | Dec 4, 2020 | Uncategorized
How to choose the best accountant for your business.
Every business owner understands the intricacy of hiring or working with new people and firms. The decision to outsource particular accounting responsibilities for your business is one decision you cannot take lightly. The right business accountant is one who is adept at tax management as well as strategic planning for the future. To help you find the right C.P.A., we have rounded up our top ten tips for how to choose an accountant for your business.
What Does a C.P.A Do?
Unlike traditional accountants, a certified public accountant (C.P.A) receives high-level certifications and has extensive tax law experience and knowledge. A C.P.A. must take exams, obtain a license, and continuously take professional courses; to stay up to date with tax laws and keep their license.
These professionals offer the following business tax services.
- Handle all tax services, including personal tax planning and representing you before the I.R.S.
- Perform Audits to ensure tax compliance
- Business advisory services to help with budget preparation and financial risk assessments
- Bookkeeping services
How to Choose an Accountant for Your Business
A business C.P.A. will help you save time and money, offer solid financial advice, and overall make your life easier by relieving you of your complex tax filing burdens. Keep reading to learn how to choose an accountant that is right for your business.
1. Find out what you need
Professional Business C.P.A firms offer various accounting and tax services. Even so, the solutions will differ for every firm due to several factors, including its size, business needs like growth/expansion, and more.
Therefore, you must determine your business needs, whether its financial risk management, audits, or tax planning services. Remember to consider how this business accountant will fit into your future needs when your business grows.
2. Check for relevant business experience
It would be best to partner with a C.P.A firm that has relevant business experience. This firm needs to have previously worked with businesses in the same industry plus similar in size to yours. For instance, if you are operating a small business, you require a business accountant that works with small-size enterprises. It helps because they will be familiar with the everyday challenges and the tax laws specific to your business and industry.
3. Seek referrals
Reach out to your personal and business contacts for recommendations. Find out which accounting firms they have partnered with and whether they would recommend their services. Word-of-mouth referrals from business associates working in similar industries are beneficial.
4. Research thoroughly
Make sure to investigate the list of recommendations. It never hurts to do a background check to confirm their credentials and specializations. By visiting these firms’ websites, you will get an idea of their services to gauge whether they match your business needs. Also, check their reviews and location.
5. Compare service fees
Each C.P.A firm charges differently. You should therefore find out whether they will charge per hour or minute. Check whether their charging rate is different for every service. Do not forget to compare the fees of several firms before making a final decision.
6. Conduct interviews
An interview session is perhaps the most useful tip for how to choose an accountant. Think of it as a job interview because this business accountant will significantly impact your business’s success. Below are some of the questions you ought to ask.
- How many clients (in your industry) does the accounting firm work with?
- Are they willing to represent you before the I.R.S. in the event of a tax issue?
- Do they offer a full range of accounting services?
7. Find out their communication channels and frequency
The accounting firm must understand your requirements. Additionally, it would be best to find out their communication channels and frequency to set realistic expectations. Ask them whether they will be willing to offer regular feedback and advice and not just during tax season.
8. Check whether you connect with the firm
Even though you will be looking at the firm and not an individual, your values should match theirs. The team should be approachable, and you ought to feel comfortable discussing all financial matters with them.
9. The accounting firm should have robust security systems
Look for a C.P.A. firm that takes a proactive approach by implementing tight security measures. It helps to know that your information is secure. The firm should have a specific portal for sharing documents to reduce the risk of a security breach.
10. The C.P.A. firm should help your business grow
Finally, before you decide to hire a business accountant, you should examine whether this partnership will ultimately lead to business growth. For instance, by offering financial advice, they could help you invest in the right projects.
Watch Your Business Grow with the Help of F.M.A., C.P.A. In Clearwater
F.M.A. C.P.A. offers tailored business advisory services to secure our clients’ business future. We provide a range of financial services to help you monetize your assets and mitigate liabilities. Our services include tax planning and business advisory services in Clearwater. To learn more about what we do, call us at 727-530-0036 to book a free consultation.
by Mark | Dec 19, 2019 | Uncategorized
Often people do not make a change in the way they do things until they experience a significant problem. Over the years, we have had clients turn to FMA, C.P.A. for many reasons. Many of these clients were working with other CPA firms in Clearwater, FL before they came to us.
Let’s look at 4 common issues businesses have with their CPA.
1) No business guidance
Many Clearwater CPA firms are reactive. They just handle the bookkeeping and file the tax forms. FMA, C.P.A is proactive. We give our clients financial advice on how to reduce their tax burden, improve their cash flow, and structure their businesses. We go beyond basic bookkeeping and tax services, and function like a partner and trusted advisor.
2) No meaningful relationship
Many businesses only communicate with their CPA a couple of times a year during tax season. They don’t really know their CPA and feel like their CPA doesn’t really know them or their business either. The relationship – if you want to call it that – is purely transactional.
We at FMA, C.P.A. believe that for trust to thrive, there must be a relationship between client and CPA There must be good communication and regular conversations. The CPA firm should have a good understanding of where the business is financially, what it’s goals are, and what challenges it’s facing. This relationship and understanding are essential to be able to offer sound financial and business advice.
3) Not getting the right answers at the right time
Obviously, you are not the only client your CPA has. However, there is an expectation that when you contact your CPA, if they aren’t available then, they should get back to you in a reasonable amount of time. When you do not get the answers that you need at the right time, it is frustrating and can cost you money. An opportunity may only come once, and when you miss it, it may be gone forever. We believe good, responsive communication is just as important as the accounting and tax services we provide.
4) You get billed for a 5-minute conversation
If you get charged extra every time you communicate or ask for advice from your CPA, then it may be time to rethink your CPA firm. Nobody likes to get nickel-and-dimed for every little bit of advice or help provided.
All our advisory conversations with our clients are part of our client-CPA relationship dynamics. We want our clients to talk with us when they need information or advice for a business decision.
Many business owners experience these issues with their CPA and just put up with them figuring, “That’s just the way it is with CPAs.” No, it doesn’t have to be that way. If you are looking for a CPA firm in Clearwater, Largo, Dunedin, Oldsmar, Land O’ Lakes, or Lutz that will get to know you and your business and offer sound, proactive financial advice, contact FMA, C.P.A for a free consultation.