rob nixon panalitix visma forward 2016

Welcome to Firm of NOW

Rob Nixon

CEO & Founder PANALITIX

@therobnixon|www.panali2x.com|#firmofnow

PURPOSE

Helping Accountants transform businesses


Local & Linear vs.

Global & Exponential


TAKE 30 LINEAR STEPS

0102

0304

0506

0708

0910

1112

13

30metres@therobnixon|www.panali2x.com|#firmofnow

TAKE 30 EXPONENTIAL STEPS

01 02 04 08 16 32 64 128 256

…1,073,741,824metres

26XaroundtheEarth!


UNDERSTANDING EXPONENTIALS • Apieceofpaperis0.135mmthick• Howthickisitifyoufoldit502mes?

• 11Foldsà2.5CM• 20FoldsàFootballField

• 38FoldsàAroundtheEarth

• 50FoldsàEarthtotheSun

UNDERSTANDING EXPONENTIALS

•  Imaginealakewithlilypadsthatdoubleinnumberseveryweek.

• …andonthe20thweek,thepondwascompletelycovered…

• Onwhatweekwasthepond50%covered?

•  IfonDay1,therewasonlyasinglelilypad…


THE POWER OF DOUBLING

Disrup2veStress/Opportunity

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

FORCE: Rising Billion

2000 2010 2020

GLOBAL POPULATION (BILLIONS)

6%

23%

66%

Global Population Internet Users

3 BILLION NEW MINDS


1965 Publication: “# of transistors doubled every year from 1958 until 1965.”

Moore’s Law today: “Integrated Chip (“I.C.”) price-performance doubles every 18 – 24 months.”

WHAT IS DRIVING THIS? MOORE’S LAW


6 D’s of Exponentials


Digitized (Information Tech)

Deceptive

Dematerialize

Demonetize Democratize

Disruptive

“6D’s” – EXPONENTIAL FRAMEWORK

LINEAR VS EXPONENTIAL GROWTH

01234567891011121314

150140130120110100908070605040302010

KneeofCurve

LinearTrendExponen2alTrend

(Disrup2ve)

(Decep2ve)


Deceptive

Dematerialize


Disruptive


20 years later…

All of these things fit in your pocket


Deceptive

Dematerialize


Disruptive


Classifieds

LongDistance

Research/Libraries

BookStores

HotelChains

TaxiFleets


Deceptive

Dematerialize


Disruptive


AfricanMobileGrowth:~1Bbyend2016

READING AN EXPONENTIAL ROAD MAP

Whereisthe“kneeofthecurve”?

Whendoesatechnologygofrom“Decep2vetoDisrup2ve”?

CREATING OF THE USER INTERFACE

MarcAndreessen

ü 1992–10Websitesü 1995–23,500sitesü 2000–17,087,182sites

ü 2006–85,507,314sites

ü 2010–206,956,723sitesü 2014–968,882,453sites

ü 2016–1,072,538,700sites+++

WEBSITE + WEB TRAFFIC GROWTH

10 23500 17087182 3876037351611646

85507314

172338726206956723

697089489

968882453

1072538700

-

200000000

400000000

600000000

800000000

1000000000

1200000000

1992 1995 2000 2002 2004 2006 2008 2010 2012 2014 2016

Kneeofthecurve

WE BELIEVE IN YOU Accountants are the natural trusted advisors

Accountants can make a massive difference to their clients condition

Most business clients want additional services

Technology needs content AND methodology to really fly.

Accountants revenue is being ‘digitally disrupted’ – you must change to matter!


PROBLEMS Accountants traditional margins under massive threat:

Commoditized compliance – technology is taking away the bread & butter work

New nimble players in the market – tech savvy / low costs

Clients have more information than ever – asking questions

Business clients need help – Accountant needs to BE the trusted advisor

Training people – how to deliver new business advisory services

Capitalizing on cloud – without a focus it’ll take revenue away.


GLOBAL PROFESSION

Global Accounting Services: Market Research Report

Report Snapshot

Market Share of Companies Deloitte 7.7%

Ernst & Young 6.2%

KPMG 5.6%

PricewaterhouseCoopers 7.6%

Industry Statistics and Forecast

Revenue

$464bn Annual Growth 10-15

3.9% Annual Growth 15-20

3.95% Profit

17.3% Employment (‘000)

5,652 Businesses

1,273,466


DISRUPTING A $500BN

PROFESSION

CHECKING & PROCESSING


CHECKING & PROCESSING

Client side – inefficient systems

Accountants – inefficient systems

Government – inefficient systems


THERE’S A STORM BREWING!


Convergence of technology


HEAVY DATA VS LIGHT DATA Convergence of technology


1 2 3 4 5 Y E A R S

THE

EFFE

CTS

OF

CLO

UD

O

N C

OM

PLIA

NCE

C A

PA C

I T

Y H

O U

R S

10,000

8,500

7,000

5,500

4,000


CLOUD NZ SINCE 2008

@therobnixon|@pauldunn|#firmofnow

www.indinero.com

“We’returningthetradi2onalCPAfirmupside

down”RickyLavinaCEO-Taxfyle


www.smacc.io


REDUNDANT OR REAL TIME Redundant Data Accountants Real Time Accountants

Offers advice late or not at all Offers advice before it happens

Processes work and administraYon Value added services that help

Waits for things to happen On front foot making it happen

Majority of revenue in compliance Majority of rev in Business Advisory

Prices in arrears Prices every project upfront

Doesn’t visit / call me Visits and calls on systemaYc basis

Doesn’t follow up Follows up on every opportunity

Doesn’t promote the latest thing Always promoYng

Most clients on ‘hard drive’ accounYng Most clients on ‘cloud’ accounYng

Numbers power with the client Numbers power with the Accountant


WELCOME BACK

#firmofnow

PURPOSE CENTRIC

CLOUD CENTRIC

VALUE CENTRIC

CLIENT CENTRIC

EFFICIENCY CENTRIC

MARKETING CENTRIC

CULTURE CENTRIC

IMPACT CENTRIC

YOU


PROFIT

CAPACITY

GROWTH


134 FIRMS SURVEYED

Do you have a model and proven method to create over 25% of capacity this year?

Do you have a model and proven method to double your profits this year?

Do you have a model and proven method to increase revenue by over 25% this year?

18% YES 82% NO

11% YES 89% NO

23% YES 77% NO


AVERAGE OF 800 FIRMS COACHED

Averages–ofthefullfinancialyearpriorto

implementa2on

Star2ngaverage

Endofyear1

Year1increase

Endofyear2

Year2%increaseonyear

1

Year2increaseonthestar2ngnumbers

Revenue

Profit–beforepartnersalaries

$947,418

$304,915

$1,556,258

$587,290

64% $1,936,512 24% 104%

93% $801,620 36% 163%


THE OLD BUSINESS MODEL

Produc2ve2me(%)

PeoplePower

Averagechargerate

WritedownsX =- Revenue

Laborcosts

grossprofit

overheads

Profit

=

=

X-


THE NEW BUSINESS MODEL

LeadGenera2on

conversionrate%

acquiredclientsX =

reten2onrate%

Exis2ngclients

+

=Totalclients

Averageprojectvalue

Projects/client/yearX =X Revenue

Laborcosts

grossprofit

overheads

Profit

=

=

X

ac2vitymonitor,test,change

resultsmonitor&alterac2vity

vs


NEW MODEL IN ACTION

LeadGenera2on

50

conversionrate%70%

acquiredclients35

X =

reten2onrate%90%

Exis2ngclients385

+

=Totalclients420

Averageprojectvalue$2,750

Projects/client/year

2X =X Revenue

$2,079,000

Laborcosts$950,000

Grossprofit$1,129,000

Overheads$429,000

=

=

X

Profit$700,000

ROB’S RULE OF 38:43 5% increase in client numbers

PLUS

3% increase in retention rate PLUS

10% increase in the price per project PLUS

20% increase in the number of projects per client per year EQUALS

43% increase in revenue!


38:43 IN ACTION

LeadGenera2on

70

conversionrate%80%

acquiredclients56

X =

reten2onrate%92.7%

Exis2ngclients385

+

=Totalclients441

Averageprojectvalue$3,025

Projects/client/year

2.4X =X Revenue

$2,967,938

Laborcosts$1,150,000

Grossprofit$1,817,938

Overheads$529,000

Profit$1,288,938

=

=

X

43%increaseinRevenue

84%increaseinProfit

ü  5%increaseinclients–420to441ü  3%improvementinretenXonrate–90%to92.7%

ü  10%increaseinaverageprojectvalue-$2,750to$3,025ü  20%increaseinthenumberofprojectsperyearperclient–2to2.4.

YOUR JOURNEY TO BETTER NUMBERS, MORE TIME & DELIGHTED CLIENTS


YOUR JOURNEY TO BETTER NUMBERS, MORE TIME & DELIGHTED CLIENTS


FREE (hand in business card)

December14th

December12th

December16th

November28th

November30th

December2nd

December9th

December5th

December7th

2 x FREE tickets valued @ $594

(hand in business card)

Key Area Now Partners Accountants Administration & Marketing Client numbers - groups Average project valueNumber of projects per year per clientAverage fee per client group per year (projects x fee / project) Revenue Salaries – excluding partnersOffice overheadsTotal costsProfit before partner salaryProductivity / Utilization – PartnersProductivity / Utilization – AccountantsAverage Hourly Rate (AHR) - client hoursAverage Hourly Rate (AHR) - all team all hours worked

1 4 3 200 $2,200 4

$1,760,000 $450,000 (74% GP) $310,000 $760,000 $1,000,000 (57%) 30% - 506 hours 75% - 1265 hours $316

$130 $1M

PRO

FIT

PER

PART

NER

$8,800

PRICE EVERY JOB UP FRONT

VALUE PRICING ON

SPECIAL PROJECTS

CLIENT COMMS

PROGRAM

WORKFLOW EFFICIENCY

MODEL

ALL CLIENTS ON CLOUD

ACCOUNTING

MARKETING THAT WORKS

SALES SKILLS

BUSINESS ADVISORY SERVICES

THE 8 NON-NEGOTIABLES

PROFIT CAPACITY GROWTH


PROFIT PER CLIENT MODEL

28hourstocomplete

$4,900pricedinadvance

$3,900new

projects

$8,800totalclient

fee

$175average

hourlyrate

20hourstocomplete

8hourstocomplete

28hourstocomplete

$4,900pricedinarrears

$245average

hourlyrate

$487average

hourlyrate

$316average

hourlyrate

123

4

TOTALNEWPROFITFROMTHISCLIENT=

$3,900

@therobnixon|#firmofnow|www.panali2x.com

PROFIT PROGRESSION

P R O F I T

YOUR VALUE BELIEF & YOUR VALUE CONTRIBUTION

Price arrears + AHR aware + charge rate increase 1Price arrears + AHR targets + some new services 2

Some price up front + some write ups 3

100% price up front + efficiency + charge rates sYll 4

Value Pricing + $1 per hour + Yme budget 5

No Yme sheets 6


ImplementaXonplanpresented

yesterday...clientsignedtoday.2xfeefromwhatIwouldhave

chargedbeforePANALITIX.AnotherimplementaXonplanpresentedtonight...and2

exisXngclientsitchingtoget

intoournot-ready-yetadvisoryservices.

Thisisge`ngtobefunagain!

AaronBlauwww.blauco.comTempe,Arizona

In the trenches


Value Belief

Value PercepYon

Value ContribuYon

TO VALUE PRICE


MarkSaidwww.mksgroup.com.au

Melbourne,VIC

In the trenches


“Ourchargeratesareinlinewith

others”

“I’mtoobusy,I’lljustchargebythe

hour”

“It’llprobablytakeXhourssowe’llchargeY”

“Icangetitdonereallyfast”

“There’stoomuchXmeontheclock–webeferwrite

someoff”

“I’mafraidofwhattheclientwillthink”

“Whatiftheysaynotome”

“Myclientswillneverpaythat

much”

LIM

ITIN

G P

RIC

ING

BEL

IEFS


Do we have the RIGHT people?

Are they MOTIVATED?

Do they know WHAT to do?

Do they know HOW to do it?

Do we have the right ENVIRONMENT?


IhavejustloggedintothelearninghubandI

amlostforwords!Thisisthemostcu`ng

edgetechnologyIhaveseen.Thelayout

anddesignofallthekeyelementsinthe

learningcentreintoshortcoursesisexactly

whatIneedinmyfirmandtodevelopthe

team.

IfeelnowthatIhaveabeferdirecXonand

structureandcan’twaittosmashthrough

thesecoursesandgrowmybusiness.

Ican’trunmybusinesswithoutthis!!!

LookingforwardtokickingsomeSERIOUS

goalsnow.

PhillipEvhimiouwww.pwk.net.au Melbourne, VIC

In the trenches


LEARNINGHUB

PracYcal e-learning courseware – hard and soe skills

Offer business improvement courses to your clients – free value add

Endless PD – new courses every month

Manage / add your own content + Vendor content

Transform your firm and your clients businesses


USING PANALITIX TO ADD VALUE TO YOUR CLIENTS

Be automatically alerted to client problems


Find opportunities in the data


Conversation starters with clients


ALL CLIENTS BUYING EVERY

SERVICE THEY NEED THAT HELPS THEM

ACHIEVE THEIR GOALS!

GROWTH

PROFIT

CASHFLOW

ASSET PROTECTION

TAX MINIMIZATION

FINANCIAL RETIREMENT

SUCCESSION

ESTATE PLANNING /

LEGACY

DELIVER THE AWESOME 8

CLIENTS


PURPOSE CENTRIC

CLOUD CENTRIC

VALUE CENTRIC

CLIENT CENTRIC

EFFICIENCY CENTRIC

MARKETING CENTRIC

CULTURE CENTRIC

IMPACT CENTRIC

YOU


1.Revenue 2.Profit 3.Wealth 4.

Happiness

4 LEVELS OF IMPACT

REVENUEIMPACT

YOUR IMPACT

No.BusinessClients

Averagesalesrevenue

PROFITIMPACTRevenueIMPACT

AverageProfit/client

WEALTHIMPACTProfitIMPACTValua2onmul2ple

HAPPINESSIMPACTNo.BusinessClients

Employees/client

200clients $500Ksales

$100,000,000revenue+

$100Mrevenue 20%profit $20,000,000

profit+

$20Mprofit 5Xmul2ple $100,000,000

wealth+

200clients 10employees 2,000lives+

PURPOSE CENTRIC

CLOUD CENTRIC

VALUE CENTRIC

CLIENT CENTRIC

EFFICIENCY CENTRIC

MARKETING CENTRIC

CULTURE CENTRIC

IMPACT CENTRIC

YOU


PURPOSE BHAG

Helping Accountants transform businesses

10,000 Accountants 2M SMB’s


Thank You!

Rob Nixon CEO & Founder, PANALITIX

www.panalitix.com – www.robnixon.com [email protected]