Traditionally the Business Services sector (eg Accountants, Lawyers, Insurance, Finance and Financial Planners) have been highly regulated. There have been significant barriers to entry to these industries. Some barriers have included codes of conduct and rules of industry organisations which have precluded actively competing with other firms to entice clients to your firm. Currently, clients are more demanding as they become better educated; particularly from online sources and all round higher general levels of education in the community. Clients are therefore demanding higher quality information in a timely manner, broader service, and more support. Traditional methods of growth have included “head-hunting” key personnel from competitive firms and/or acquiring competitive firms.
The challenge is that the owners of these competitor firms are becoming far more demanding and therefore are seeking far higher prices making the viability of the transaction far riskier. Additionally, key personnel are becoming far more selective about the firms they will agree to join. They are increasingly seeking out firms with a great “brightness of future” story; that is growth firms. It is far easier to attract “A players” if business’s owners set the goal and complement this with a strategy to become the employer of choice in their chosen market as in business and business services, in particular, people are the backbone of every business.