Diversify the Revenue Sources Valuation consultants usually have training and experience with the process of normalizing owner compensation. They may also have access to compensation comparability data, which is a collection of actual amounts paid by other employers which can be sorted. Therefore, valuation specialists may already have what they need to begin adding compensation consulting services to their practices. Valuation consultants usually have training and experience with the process of normalizing owner compensation. They may also have access to compensation comparability data, which is a collection of actual amounts paid by other employers which can be sorted. Therefore, valuation…
-
-
You Should Feel the Same Way There is a great expression that is used as advertising in our industry: the business we value most is yours. (It is like: The customer is always right.) It is a great slogan and one the author quoted in his LinkedIn profile! And then, as the author states, he wised up and discovered that the business he valued most was his own. In this article, he explains why the reader should also feel the same way. There’s a great expression used as advertising in our industry: The business we value most is yours. (It…
-
Key Components How did so many business owners succeed in this current crisis? How did some business owners even thrive during the most challenging year one will hopefully ever experience? Because they stuck to the basics—staying focused. These business owners continually promoted their vision, ensured they had the “right people in the right seats” throughout their organization, used scorecards and measurables to track all critical data, and prioritized and solved all issues that popped up. These business owners stayed true to their core processes and instilled the discipline and accountability (Traction®) necessary to deliver their annual plans and goals. This…
-
How to Make Pricing Your Competitive Advantage This article is a follow up to the author’s April 2021 QuickRead article: “Here is What Prospects Believe About Our Pricing.” The lesson by the author is that prospective clients believe what the professional believes about pricing. If the professional believes that the price is too high, so will the prospect. If the professional believes that the price is a bargain for the value created, that professional is communicating that belief to the prospect. This article describes the choices the valuation professional faces in terms of pricing and how to make pricing a…
-
What Prospects Believe About Our Pricing is What We Believe About Our Pricing When prospects say, “You’re too expensive” (and some inevitably will), we may have a problem. Because on the one hand, they may be telling us the truth (or their truth). But on the other hand, we think we are worth it. This article identifies two issues, suggests that there may be one impediment, and provides readers with resources on the subject of pricing services. That is an impactful statement. And of course, it is not quite THAT simple. But it goes a long way toward explaining why…
-
These Drivers Quantify the Time and Money You Get from Your Practice Time and money. These are two things we generally want more of. Because they are generally two things, we think we don’t have enough of. If you want more time and money than you are currently getting out of your practice, this QuickRead deconstruction is for you. Time and money. These are two things we generally want more of. Because they are generally two things we think we don’t have enough of. If you want more time and money than you are currently getting out of your practice,…
-
Confessions of the Pricing Man, How Price Affects Everything Financial experts often struggle with setting fees for their own services and expertise. It is easy to see how someone could have trouble with decisions involving hourly billing versus fixed fees, premium pricing, bundling, discounting, and adjusting for scope creep. The author in this article shares insight from Hermann Simon on the above considerations. Financial experts often struggle with setting fees for their own services and expertise. It is easy to see how someone could have trouble with decisions involving hourly billing versus fixed fees, premium pricing, bundling, discounting, and adjusting…
-
If I Were Starting Today Business valuation and financial litigation services (BVFLS) practitioners—since the COVID-19 disruption—have embraced the use of social media. Yet, some BVFLS practitioners remain on the sidelines. In this article, Rod Burkert shares 10 social networking tactics he would use today to build his BVFLS practice. One thing I have seen since COVID-19 began is the uptick in social media usage by business valuation and financial litigation services (BVFLS) professionals … first, by those who were already using social media and who were amping up their efforts, and second, by those who were not previously using social…
-
the Value of a Business Buyers look at earnings as a primary driver of value. There are many other factors such as strategic value, competitive position, branding, secret processes, and cost to duplicate. There are also many other factors, some not so evident or obvious, some intangible and some in the “good feelings” attitude about the business or its prospects. At the end of the day, it is sometimes hard to pinpoint exactly what made the difference for the buyer to close on the transaction. This article presents 64 items that can either increase or enhance a business’ value, or…
-
Perceived Value is the Driver Alan Weiss wrote a book titled Value-Based Fees, How to Charge – and Get – What You’re Worth. Even though the book was published more than fifteen years ago, it still offers pearls of wisdom for consultants today. One key takeaway involves recognizing the importance of perceived value, which should be the basis of the contractual relationship. Alan Weiss wrote a book titled Value-Based Fees, How to Charge – and Get – What You’re Worth. Even though the book was published more than fifteen years ago, it still offers pearls of wisdom for consultants today.…
-
Here is How I Changed my Mindset Asking for a referral may seem egotistical and a bit self-centered, but it is also a good business practice. In this article, Rod Burkert shares two personal obstacles he overcame that kept him from asking for referrals and what changed his mind on this matter. When it comes to building a pipeline of work, referrals are the lifeblood of a BVFLS practice. So why did I feel so awkward asking my clients for them? What was my problem? Turns out there were two. Problem #1 The first problem was my personality. I know…
-
Operational Finance—A New Way to View your P&L? Have you ever thought about your accounting systems as more than an expense, and how it may benefit you, above and beyond reporting numbers and forms? It can and should be more than an expense. In this article, the author discusses the potential insight gained by tracking the data. Books and records. Bookkeeping. Accounting. Tax returns and quarterly filings. Businessowners typically view these as required administrative duties and consider it an expense. Have you ever thought about your accounting systems as more than an expense, and how it may benefit you, above…
-
Beyond the 40 Hours of CPE and Embracing Continuous and Mindful Learning The traditional requirement to account for 40 hours of CPE is often viewed as an annual hurdle. This mindset needs to change. This requirement is an opportunity to commit to continuous learning and improvement. In this article, the author identifies the impediments and opportunities to continuous professional and mindful development. [su_pullquote align=”right”]Resources: Consultants’ Training Institute Professional Education [/su_pullquote] In a world that is rapidly changing, company leaders in every industry are being faced with adapting to the trends that redefine the ways in which we conduct business. While…
-
Relative to “Those” Competitors Many BVFLS practitioners have a mind-set that presents a self-made obstacle to successfully marketing their professional services. In this article Rod Burkert shares three reasons he has observed that may explain why we, as professionals, struggle with pricing relative to “those” competitors and suggests ways to address those concerns of losing out on price. I want to go on record that I am not immune to price compression. And if I haven’t said that before, I’m saying it now. But if I’ve been more fortunate than others it’s because, in the years after the Great Recession…
-
Rethinking the Role of Your BD Team (Part II of II) In the November 2020 post, an alternative way to structure your firm’s BD efforts that relies less on a central “rainmaker,” and more on an integrated team. In this post, the focus is on how to execute the various activities involved in BD, such as hiring, outsourcing, or cross-training existing staff. For this exercise, do not get hung up on specific titles; in reality, team members’ skills and interests are more important than their titles. Your BD team structure might look something like what is discussed here. Rethinking Activities…
-
Turning Traditional Business Development on Its Head (Part I of II) Business development (BD) used to be simple: do good work for existing clients, be active in your local community, and watch the referrals roll in. To be a successful rainmaker for a firm, all a professional needed was a little confidence, some networking skills, and perhaps the occasional educational presentation. But BD has changed, driven by changes in the behavior of professional services buyers. Rather than ask a colleague about a business question, they began using search engines. In one industry after another, including professional services, digital transformation has…
-
Litigation and Non-Litigation FAQ Interpretations Initiative Business valuation/appraisal standards are promulgated by different business appraisal organizations. The NACVA’s Standards Board was formed to continually review the organizations standards and to ensure that the NACVA’s Professional Standards remain up to date, relevant, and relatively consistent with the standards of the other professional organizations. This article contains the first published Litigation and Non-Litigation FAQ Interpretations. [su_pullquote align=”right”]Resources: NACVA’s Professional Standards [/su_pullquote] Business valuation/appraisal standards are promulgated by different business appraisal organizations. The NACVA’s Standards Board (SDB) was formed to continually review the organizations standards and to ensure that the NACVA’s Professional Standards…
-
Finance & Accounting for Lawyers, Second Edition, by Brian Peter Brining, JD, CPA BVR has just released Finance & Accounting for Lawyers, Second Edition, by Brian Peter Brining, JD, CPA. The purpose of this edition is to provide the reader, lawyers particularly, with a technical overview of accounting principles and methods so the knowledge can be applied in the practice of law. In the finance and valuation sections of the textbook, the reader is introduced to the principles of finance and valuation that underlie monetary transactions that are the subject of contracts, tax matters, disputes, and litigation. The textbook proceeds…
-
The Marketing Funnel (Part II of II) In the August 2020 article, the author discussed five basic ways website planning and organization can result in sub-optimal results. In this article, the author drills down and looks at ways a website can fail to support a firm’s marketing funnel. The author explores the three key parts of the marketing funnel and shares where poorly designed websites come up short in each stage. In my previous post, I discussed five basic ways website planning and organization can result in sub-optimal results. In this post, I want to drill down and look at…
-
Speaking Our Client’s Language How many times have readers started reading an e-mail from a colleague or peer with questions on a valuation you performed and been simply lost as to why they are asking? As you re-read the e-mail time and time again, you cannot understand where their questions are coming from. You feel confused, frustrated, and lost. In this article, the author proposes that we reflect on the need and value provided to clients by virtue of recognizing the importance of being bilingual. How many times have you started reading an e-mail from a colleague or peer with…