Big go bigger but small is majority in 2019 - A 2019 prediction
At Amplify we knew this last prediction was coming and it’s one of the reasons we saw a business plan with potential. I wrote about the importance of small business in our economy before: https://www.amplifyadvisors.ca/2018/10/14/why-one-of-the-reasons/
The majority of businesses are small and medium in size, but as business-to-business entities get stronger and larger it becomes harder to serve SMEs. There’s a few reasons for this:
- High overhead (that translates to high fees/prices for the client)
- Volume: you will hear “it’s easier and more affordable to serve one large client than it is to serve multiple small ones”
- Whale hunting (justified by above)
- Cadillacs when you’ve been asked to sell a Civic which equates to the challenge of selling or executing on continuous improvement or incremental projects when your methodology is transformation. I’ve written about transformation which can be found at: https://www.amplifyadvisors.ca/amplify-transformation/
At the end of the day the business strategy for larger organizations has to be a focus on larger clients. It makes sense based on their model. So the big go bigger.
But small & medium are the majority and there’s an opportunity to serve that market. Aligned with my other 2019 predictions it’s an opportunity for freelancers, contractors, small firms and fellow SMEs. An under-served market exists & it’s the majority of Canadian businesses.
At Amplify we serve the whales too. Our business advisory services include finance projects for even the largest of businesses. We have experience with public entities and big business but we can scale to help SMEs too. Our connector services are also a good fit for all size companies. We can place CPA's in all types of organizations!
Even with all of this, our core service is for the small and medium client. It’s an opportunity to get an executive level CPA that brings the best of the big but is scalable & practical. It allows SMEs to receive CFO/Controller services on a contract basis that meets the needs & is affordable. Our finance leader services is for the growing market that is the engine behind Canada’s economy. It’s about helping growing companies envisage their complete financial picture. It’s about changing the stats for business survival & amplifying growth. We are excited to have the opportunity to work with entrepreneurs, start-ups, small business & medium sized business. We are excited to be their finance leader on a contract basis. Most of our contracts are anticipated to be 3 years. We automate, set up scalable processes and work within the finance function. As the client grows we grow with them. The growth supports a controller role before long and at that point we prioritize their development so that when the growth requires a full-time CFO we have a successor in place. It works because you get the level your growth requires but you are not paying for a FTE that you aren’t ready for.
With this trend, the BIG go bigger but small is the majority, there’s an opportunity for all of us to win.
The big, the small & the businesses in between!
All of my 2019 Predictions are in! If you missed it, you can read all about what we see for 2019 here: https://www.amplifyadvisors.ca/2018/12/17/2019-predictions/