We are a small company in the consulting business.
We provide an external-cfo-service for small companies. Our customers are not able to employ a commercial finance person due to budget constraints – hence, we support them with monthly reporting, budgeting and ongoing insights. Our product is a highly standardized process and therefore high value to a low monthly fee.
We are fact-driven. We are able to process big data and identify hidden opportunities. We are able to support our clients corporate development with forecasts and projections, which also include benchmarks within their respective industry.
We are empathic. We address risks and opportunities early in the process. We focus on the individual development of the owners of our clients, using an objective-based action plan monitoring.
We bring corporation standards to small companies who normally do not have access to that.
We have great systems and tools to support our clients with. Also, we are experts in data processing. There is really only a few people in the market who can compete in this aspect.
We provide a flexible and comprehensive reporting, combined with a very detailed approach on analysis. 90% of the german tax advisors use normally one specific software solution which is not capable of that.
Our network is very small. We are not known as a brand. Also, we believe that our product is often seen as „nice to have“, while our research shows that it is more a necessary thing to have. In our market (Germany), tax advisors are normally expected to deliver the service we provide. However, tax advisors don’t do that due to too low margins.
Consulting companies provide the service we do, but it is not their core business. They look at the financials from time to time, but they normally do not focus on this on an ongoing basis. There are a few competitors: http://www.kernaussagen.de (not focussed on an individual industry), planvoll.com (also more a general provider), W&K (http://www.wk-controlling.de) offer our service and software consulting, bwlc.de are a tax advisor company providing our service; http://www.teamdenzer.de ; http://www.nordconsulting.de is also more generalized on their approach. http://www.cmc-controlling.de is another example.
Most of these competitors have a very „sober“ approach and factual appearance. They tell us what they do, but not what the client will benefit from. And that is transparency. We enable our client to make solid decisions and to grow sustainably.
The market potential is quite big. A potential reason for many consulting companies not to pursue this opportunity ist the presence of the tax advisors in the minds of many company owners. They have big faith and trust in their tax advisors and think, that the T.A. (who normally performs the accounting for them) also provides budgeting and early warning systems. But the T.A. don’t.
Secondly, small companies are not aware of the value a process like this provides to them. Hence, the market is not attractive from a daily rate perspective for many consulting businesses. Reports or presentations are only made adhoc.
Thirdly, the number of bankrupt companies is decreasing in Germany. People are doing well, hence there may be currently no need to invest in transparency.
Fourthly, about 70% of the german owner operators have no proper education in financial processes or even commercial education. It occurs quite often that people need to take a credit from a bank to be able to pay their income tax liablilities.
Many software companies provide analytics similar to ERP systems. However, most companies are not aware of the potential within their applications, so they don’t use it properly. The ongoing digitalization will increase, and it will be more and more important to keep all data at one location/database. This is what we can provide.
We want to start this consulting approach freshly. We had a test phase which was successful, but now we plan to roll out on a larger scale. Hence, we need a fresh design which signalizes a prospering and sustainable development of our customers organizations.