AN OPPORTUNITY FOR SMEs AND ACCOUNTANTS!
An accountant’s ability to supply a range of advanced business advisory services to small business and medium sized enterprise directors and senior managers to equip them with an understanding of the new capital raising opportunities that are available for private companies will be a significant contribution to business success during the “Decade of Change” commencing in 2020.
Over the next decade we should see a material shift in business ownership as the next generation make their way into leadership and ownership roles. These new owners are embracing technology and are more connected to their customers than ever before. There is significant innovation in the Australian SME market, however these businesses often run into brick walls because access to traditional capital is limited and therefore, growth stagnates.
Crowd Sourced Funding Equity Raising flips the old capital markets model on its head by centralising the investment opportunity into one platform and defining clear outcomes for the business. It also brings more speed and energy into the capital raising process as the investment opportunity can now be marketed and advertised, especially with digital and social channels in ways that were not envisaged when Section 708 of the Corporations Act was introduced 35 years ago.
There is a sweeping global trend that is not going to go away anytime soon which thankfully, Australia has finally embraced.
The challenge for accounting firms from small practitioners to top 100 firms is to be able to embrace the new knowledge and skills that are going to be required to offer services to your clients. If you do not offer these services, you will run the real risk that the energetic, ambitious entrepreneurs that you have within your client list will seek advice from other accounting or professional advisory firms with at best your firm retaining the compliance component or at worst your firm losing the client in its entirety.
There is also a new breed of investors now operating in Australia numbering in excess of 38,000 people who have already invested into Crowd Sourced Funding Equity Raising.
There is now an opportunity for these investors to participate in the opportunity to make investments into a wide range of businesses operating in Australia – something that in the past has been reserved primarily for sophisticated and wholesale investors.
2020 is the start of a new decade – the “Decade of Change”. There will be changes made in how small businesses and medium-sized enterprises operate and there will also be changes in how “Mum and Dad Investors” participate in these new market opportunities.
Whilst I expect there will be substantial professional services required in this space, there will not be enough work for every accounting firm in Australia. ESS BIZTOOLS recently conducted a survey of the ASIC appointed Crowd Sourced Funding Intermediaries who identified a range of services that accountants/business advisors could provide to assist clients and prospects on their capital raising journey.
If you would like a copy of the Intermediary Survey Summary please click here.
Now is the time to gear up to supply an outstanding range of services to assist your clients on this new financing journey. You are invited to visit our free information service to learn more about Crowd Sourced Funding Equity Raising.
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