Don't state the obvious

As you read this, I am sitting at a new desk in a new firm and staring out of a new window. Moving is always an interesting albeit stressful experience, as you come to terms with different ways of working and fresh corporate strategies.

It’s made me think about the fundamental differences in the way firms approach and run their businesses, and the importance of creating a unique selling point (USP).

Your USP is supposed to be indicative of what makes your firm unique and distinct from others. It could be a slogan, a logo or even an approach. For example, Domino’s in America claimed to “deliver hot, fresh pizza in 30 minutes or less, or it’s free”, which was the launch pad to a huge increase in sales.

If you have doubts about the power of a logo, don’t forget that a few years ago McDonald’s golden arches were reportedly the most recognised symbol
in the world – more so even than the Cross. So, your USP is the foundation
on which marketing campaigns stand.

Each firm has its own approach to creating a brand and a USP. Unsurprisingly, some do it better than others. Professional services firms are particularly poor at distinguishing themselves. A potential client browsing websites would find it difficult to distinguish any real differences between most firms of accountants. So what creates a good USP?

In lay terms, you need to identify who your target market is and what problem you are going to solve for them. You then need to show how your way is different, and better than what competitors offer.

Raison d’être

Think of FedEx and “when it absolutely positively has to be there overnight” or Apple and “everything is easier on a Mac”. Both recognised a market, the problems in it and how to solve them. They also wrapped their whole raison d’être into a short tag line.

A USP also has to be unique, which may sound obvious. However, many organisations seem to miss this point. An accountancy firm that simply states it ‘does tax’ is unlikely to impress. What it needs to do is demonstrate that its offering is not just better than others
but unlike competitors.

At my firm, we structure our tax consultancy offering like a barristers’ chambers, offering specific expertise
from specific senior members of the
firm in precise areas. I am unaware of any other accountancy firm that is structured in the same way.

We also provide consultancy services to other professional practices. They may not feel comfortable in certain technical areas and can refer work to us, which they can ‘white label’ if necessary. This enables them to keep certain clients that they may struggle servicing if they were relying purely on their own internal resources. Once again, not many firms seem do this.

Any service offering also has to be in an area for which there is a clear demand. There is no point in trying to sell snow to Inuit. As a tax practitioner, I see the demand for compliance services dropping and increase for consultancy services. To have someone complete your tax return is an expense, and for some an indulgence.

However, to have someone provide consultancy services is a capital investment that should benefit you for many years to come. Therefore, I regard tax consultancy as being the biggest growth area in my industry and that is where I will be focusing my attention.

When you have identified your audience, their demands, and your solutions or approach, you need to condense all that into a simple slogan
as FedEx did. You then have the start
of a potentially great business. 

Geraint Jones is a tax partner at Berg Kaprow Lewis

www.bkltax.co.uk

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