They’re reliable, they’re high margin, they usually pay on time and, they always need your advice.
I’m talking about your medium-sized business clients.
For many accountants, these are the 20% of your clients, who provide 80% of your turnover and these are the interesting clients…. the ones who almost always have an eye on growth.
If your medium-sized business clients are turning over between $2 million and $25 million annually, then they could be ideal candidates for one of the biggest business game change to come along in decades.
I’m talking about a new source of capital raising that’s been successfully operating internationally for around 7 years and could make bank loans and directors guarantees a thing of the past!
It’s called Crowd Sourced Funding Equity Raising and it’s now legal here in Australia.
So, what’s it mean for you and your medium-sized business clients?
Well, for your clients, it offers the opportunity to raise up to $5 million each year from retail investors.
This is capital that could well be used to grow their businesses or to retire debt.
Some of your clients’ strategies could be to “scale up” their businesses to the next level, or even beyond but besides:
- people;
- a strategy; and
- being able to drive execution,
they will require cash!
Growth sucks cash – inventory, debtors, capital expenditure, training, research and development, protecting intellectual property, people, premises, all cost money and this is where Crowd Sourced Funding Equity Raising gives this generation of medium-sized business operators a fantastic opportunity.
Some of your clients will view this as an opportunity to undertake an “apprenticeship” in capital raising and working with a more professional board of directors if they have a long-term strategy to participate in an Initial Public Offering for a listing on a stock exchange.
Others will view it as an opportunity to grow their businesses, thus creating interesting management challenges which will encourage the development of a strong corporate team.
For you, it’s the opportunity to become an even more “trusted advisor”, by bringing the opportunity to your medium-sized clients and, in doing so, generate new income streams for your accountancy/business advisory firm.
Those new fees will be there because your clients will need someone to explain the Crowd Sourced Funding Equity Raising process to them, to advise them on the course they should take, to prepare the necessary valuations and offer documents and to liaise with the ASIC appointed Intermediaries, who will raise their capital from their websites.
Your team members will benefit by having a unique opportunity to work with fast-growing companies that require a broader range of professional services than just income tax.
To achieve all of this without your accountancy firm having to reinvent the wheel, you’ll need someone you can trust to help streamline this process, by providing you with detailed marketing strategies and professional documentation relative to Crowd Sourced Funding Equity Raising.
This is where my company ESS BIZTOOLS comes in.
At ESS BIZTOOLS we’ve already done the backroom work for you so that you can concentrate on guiding your clients through the capital raising process.
Why not take the first step in understanding Crowd Sourced Funding Equity Raising by clicking here.
I love talking with professional accountants who are fulfilling the “trusted advisor” role, about the significant benefits that can flow to your accountancy firm, your team and your medium-sized clients from Crowd Sourced Funding Equity Raising.
Have a great day!
Peter Towers | Managing Director, ESS BIZTOOLS
- Export Market Development Grant - 4 November 2024
- Equity Financing 101: Empowering Accountants and Advisors in SME Growth - 21 October 2024
- Debtors Management Needs Attention - 7 October 2024
