2000 Ways How to Build a Million Dollar Technology Consulting Practice

by Metzler, James C.

• ISBN13: 9780156063036
• ISBN10: 0156063034
• Edition: 1st
• Copyright: 1999-01-01
• Publisher: PROFESSIONAL PUBLISHING

Summary

2000 How to Build a Million Dollar Technology Consulting Practice is a comprehensive guide for CPAs and other technology consultants on how to build and grow a successful technology consulting practice. It includes all the difficult lessons and explanations in order to build a technology consulting practice in your firm. The guide also includes many true-life stories and addresses the unique issues that firms have when trying to build this niche. The powerful CD-ROM is packed with electronic versions of the forms, checklists, practice aids, and management tools found in the guide. All documents can be customized using Word "RM" WordPerfect "RM" for Windows "TM" .

Table of Contents

Preface	v
CD-ROM Contents	xix
About the Electronic Workpapers	xxiii
About the Author	xxvii
Introduction	1	(4)
Getting Started: Planning To Succeed From The Inside	5	(26)
Overview	7	(3)
The Changing Face of the Accounting Profession	10	(1)
Accounting for the Future	11	(3)
Choosing Technology Consulting	12	(2)
Deciding Who You Want to Be	14	(8)
Choosing the Market	15	(1)
Selecting Software	16	(1)
Deciding on an Identity	17	(1)
Value-Added Resellers	17	(1)
Consultants	18	(1)
Combining VAR and Consultant	19	(1)
Building a Business Model	20	(1)
Price Driven Model	20	(2)
Customer Intimate Model	22	(1)
Envisioning the Types of Services Your Firm Can Offer	22	(6)
Delivering Value to Your Clients Using Information Technology	24	(1)
Basic Competencies of the IT Services Provided	25	(1)
Deciding on Services	26	(1)
Connection between IT and Business Improvement	26	(2)
Strategies & Discussion Points	28	(3)
The Next Step: Planning To Succeed In Your Marketplace	31	(44)
The Small Business Market	34	(5)
The Middle Market	39	(2)
The Large Enterprise Market	41	(2)
Another Very Large Opportunity...	43	(1)
Building Your Marketing and Sales Strategies	43	(11)
Developing a Detailed Sales Plan	45	(1)
Researching Your Market	46	(1)
Customer Base	47	(1)
Market Size and Trends	48	(3)
Estimated Market Share and Revenues	51	(1)
Competition	51	(2)
Ongoing Market Evaluation	53	(1)
Getting It All Completed	54	(8)
Your Relationships with Others---Software and Hardware	54	(1)
Software	54	(4)
Hardware	58	(1)
Alliances with Other CPA Firms	59	(3)
Strategies & Discussion Points	62	(5)
Practice Aids	67	(8)
Preparing to Plan	75	(22)
Developing the Business Plan	78	(3)
Being Able to Turn on a Dime	81	(1)
Meetings, Meetings, and More Meetings	82
Strategies & Discussion Points	81	(5)
Practice Aids	86	(11)
What Will You Deliver to the Marketplace?	97	(60)
Installation, Implementation, and Integration of Accounting Software	99	(6)
Retailers versus Consultants/VARs	101	(2)
Determining Fees	103	(1)
Commissions and Markup	103	(1)
Installations Costs and Fees	104	(1)
Educating Executives Once Implementation Is Complete	104	(1)
Implementation and Integration of Business Management Software	105	(23)
Requesting Outside Help	107	(1)
Determining Fees	107	(1)
Gaining Leads from Clients	108	(1)
Training	108	(1)
Network Design and Installation	109	(3)
Communications	112	(1)
Software Modification and Custom Programming	113	(3)
Integration and Connectivity	116	(1)
Productivity Tools	116	(1)
Internet Services and Electronic Commerce	117	(2)
WebTrust	119	(1)
IT Management Services	120	(1)
Service Bureau	120	(1)
Consulting Services	121	(1)
Needs Analysis and Software Selection	121	(1)
Formation and Facilitation of Client Technology Committees	122	(1)
Project Management Services	123	(1)
Development of IT Strategy with Management	124	(2)
Process Improvement and Workflow	126	(1)
Knowledge Management	127	(1)
Strategies & Discussion Points	128	(7)
Practice Aids	135	(22)
Building Your Team of Professionals	157	(50)
Caution! Looking to Your CPA Firm Staff Can Be Dangerous!	159	(4)
Adequate Staff	161	(1)
100% Commitment	162	(1)
Caution! Looking to Your CPA Firm's MIS Staff Can Be Dangerous!	163	(1)
Caution! Looking to Your CPA Firm to Be the ``Customer'' for the IT Practice Can Be Dangerous!	164	(2)
Committed or Not?	165	(1)
Anatomy of an IT Professional	166	(4)
What's the Difference between an IT Professional and a CPA?	168	(1)
Personality Tests	169	(1)
How Are IT Career Drivers Different From CPA Career Drivers?	170	(2)
Compensation	171	(1)
Personal Training and Development	172	(1)
Knowing What to Look for in an IT Professional	172	(5)
Candidates Who Haven't Had Client Experience	173	(2)
Strong Interpersonal Skills	175	(1)
Organizational and Planning Skills	175	(1)
Self-confidence and Self-motivation	176	(1)
Business Savvy	176	(1)
Recognizing Potential Performers	176	(1)
Compensating Your IT Professionals	177	(3)
Compensation for IT Professionals versus Accounting Professionals	178	(2)
Attracting and Retaining IT Professionals	180	(3)
Financial Motivators	180	(1)
Nonfinancial Motivators	181	(1)
Finding the Best of the Best	182	(1)
Training and Development of IT Professionals	183	(1)
Strategies & Discussion Points	184	(4)
Practice Aids	188	(19)
Building a Solid Infrastructure	207	(28)
The Partner Champion	209	(1)
Building Your Leadership	210	(3)
IT Partnership Leadership	211	(1)
Management Development	212	(1)
Compensation of Your Leader	213	(1)
Building Your Financial Investment (a.k.a. Sticker Shock!)	213	(9)
Gaining Capital after the First Three Years	217	(5)
IT Practice Infrastructure---The CPA Firm S-t-r-e-c-h	222	(2)
Integrating the IT Practice Business Plan with the Firm's Business Plan	224	(2)
Obtaining Consensus within the Partner Group	224	(1)
Challenges as an Aligned Partner Unit	225	(1)
Building and Growing Your IT Practice from Scratch or Acquiring/Merging with Others	226	(4)
Strategies & Discussion Points	230	(5)
Building Your IT Practice Within the Firm or Establishing a Separate Entity	235	(28)
Overview	237	(2)
Benefits of Operating the IT Practice as a Separate Entity	239	(4)
Accurate Measurement	239	(1)
Separate Market Value in Addition to the CPA Firm	240	(1)
The Marketplace Is Large Than Just the CPA Firm Clients	241	(1)
Identity and Relationships with Others	242	(1)
Non-CPA Ownership	243	(1)
Sale or Merger Issues	243	(1)
Tax Issues	244	(4)
Flexibility of Ownership	245	(2)
Asset Protection and Liability Limitation	247	(1)
Challenges of the IT Practice as a Separate Entity	248	(2)
Us versus Them: ``The Wall''	248	(2)
Separate Buy-Sell Agreement	250	(2)
Non-CPA Shareholders	250	(1)
Noncompetition	251	(1)
Value	252	(1)
Sale Merger and New Partner/Shareholder	252	(1)
Capitalization and Financing	253	(1)
Organizational and Operational Factors of the IT Practice as a Separate Entity	254	(3)
Allocation of Expenses	255	(2)
Strategies & Discussion Points	257	(6)
Unique Factors Involved in a CPA Firm's IT Practice	263	(26)
Lack of Understanding of the Need for a Specialized Approach	265	(1)
Lack of Commitment of the Firm	266	(1)
The Cost of Beginning an IT Practice	266	(3)
Loss Leader Syndrome	269	(1)
Damaged Relationships with Accounting Clients	270	(7)
Incomplete Knowledge of an Industry	271	(1)
The Assumption That Good Clients Make Good IT Services Candidates	271	(1)
Diagnosis Shortcuts	272	(2)
Lack of Understanding of the Ability to Change	274	(1)
A Three-Sided Relationship	275	(2)
Unlimited, Free IT Services for Accounting Clients	277	(1)
Reluctance to Get Involved	278	(1)
Firm Members Lack Knowledge of IT Services	279	(1)
Drafting Staff In and Out of the CPA Firm	280	(1)
Existence of the Wall	280	(1)
Second-Class IT Clients	280	(2)
Philosophical Differences	282	(1)
Compensation and Benefits	283	(1)
Continuing Professional Education (CPE)	284	(2)
Strategies & Discussion Points	286	(3)
Establishing, Implementing, and Managing Your Sales Plan	289	(24)
The Nature of the Business as It Relates to Sales	291	(1)
Why Is a Sales Process Necessary?	291	(1)
Building Your Sales Force	292	(1)
Who Should Be Selling IT Services?	292	(1)
The Anatomy of the IT Sales Professional	293	(3)
Training the IT Professional	294	(2)
Pre-Sales	296	(1)
The Sales Process	297	(2)
Sales Management	299	(1)
Crafting the Annual Sales plan	299	(2)
Compensating Sales Professionals	301	(2)
Potential CPA Firm Conflicts with Your IT Sales Professional	303	(1)
CPA Firm Sales Incentives	304	(1)
Getting Your IT Practice Started in an Established Sales Process	305	(2)
Don't Take Shortcuts	305	(1)
Outside Sales Training and Partnerships	306	(1)
Strategies & Discussion Points	307	(2)
Practice Aids	309	(4)
Marketing Your IT Practice	313	(28)
Overview	315	(1)
Image	316	(2)
Marketing Activities That Work	318	(10)
Targeted Seminars	318	(1)
Invitations	319	(1)
The Seminar: Before and After	320	(1)
Industry Organizations	320	(1)
User Groups---Join One!	321	(1)
User Groups---Form One!	321	(1)
Community Involvement	322	(1)
Utilizing the Media	322	(1)
Gaining Referrals	323	(2)
Telemarketing	325	(1)
Mailings	326	(1)
Newsletters	326	(1)
Advertising	327	(1)
Maximizing Marketing Benefits from Your Strategic Partners	328	(1)
Web Site	328	(1)
Incentives for the CPA Firm Staff	329	(1)
Market Intelligence	330	(1)
How Is the Firm Going to Get All of These Marketing Activities Going and Completed?	331	(1)
The Bottom Line	332	(1)
Strategies & Discussion Points	332	(4)
Practice Aids	336	(5)
Delivering Your Services	341	(42)
CPA Practice Engagements versus IT Practice Engagements	344	(2)
CPA Practice Engagements	344	(1)
IT Practice Engagements	345	(1)
The Engagement Delivery Process	346	(11)
Prequalification and Qualification	347	(1)
Diagnosis/Needs Analysis	347	(3)
Develop and Present the Solutions	350	(1)
Gain Client Commitment	351	(1)
Assurance Meetings	352	(1)
Detailed System Specifications	353	(1)
Execute!	354	(1)
Manage the Engagement	354	(1)
Quality Assessment	355	(1)
Quality Surveys versus Quality Assessment	356	(1)
Dealing with Client Complaints	357	(1)
After the Engagement	358	(1)
Engagement Letter versus Legal Contacts for Services	359	(1)
The Need for Structure	360	(1)
Strategies & Discussion Points	361	(4)
Practice Aids	365	(18)
Building a Successful IT Practice by Partnering with Others	383	(26)
Some Disadvantages	385	(2)
Limiting the Market	385	(1)
Giving Up a Degree of Control	386	(1)
Curtailing Equity Value	386	(1)
No Sense of Permanency	386	(1)
Advantages	387	(1)
The Country Club Referral versus the Working Alliance	388	(6)
Truly Meaningful Alliance	388	(1)
Selecting a Strategic Partner	389	(1)
Well-Capitalized with Management Depth	389	(2)
Similar Client Service Philosophy	391	(1)
Strong Vertical Market Knowledge	391	(1)
Training Capabilities	392	(1)
Support Infrastructure	392	(1)
Customer Satisfaction	393	(1)
Engagement Delivery Process	393	(1)
Revenue Opportunities for an Accounting Firm That Allies with a Strategic Partner	394	(3)
Process Improvement and Workflow Consulting	394	(1)
Client Technology Committee Facilitation	394	(1)
Training	395	(1)
Implementation Services	396	(1)
Year-End Audit Efficiencies	396	(1)
Key Understanding with Your Strategic Partner	397	(6)
Investment of Time and Resources: Facing Nonbillable Hours	397	(2)
Clear-Cut Engagement Roles and Responsibilities	399	(1)
Billing Agreements	399	(2)
Goals and Measurements	401	(1)
Exclusive or Not Exclusive?	402	(1)
Conflict Resolution	403	(1)
Formal Understandings and Agreements	403	(1)
One Face/One Identity	404	(1)
Benefits for the Nonaccounting Firm Strategic Partner	404	(2)
Strategies & Discussion Points	406	(3)
Allowing Your IT Practice to Mature	409	(8)
Recognizing Quality Clients	411	(1)
Pricing	412	(1)
The Power of Processes	412	(1)
Where to Go from Here	412	(4)
Strategies & Discussion Points	416	(1)
Index	417