Welcome to part 3 of our 6-part series “If they can, so can you!” in which we feature ordinary business owners that have thrived, in spite of COVID and economic challenges.
In part 2 we looked at Marquerite and PK van Wyk from the Hospitality industry. who had a had a restaurant…and then they didn’t.
This time we feature AJM Financial Services. Covid and the related lockdowns have posed some major challenges to the continued survival of many accounting practices and B2B firms. But as AJ Martin has learned, by asking for help and doing the hard yards, it’s possible to come out the other end of the tunnel – stronger than before and ahead of the planned profit.
CASE STUDY #3: AJM Financial Services
Owned by AC Martin
Alcid John Martin, known to his clients as AJ, qualified as a Chartered accountant in 2001 and worked in commerce for about 12 years as a Financial Manager at 3 large companies in various industries before being retrenched. Left with the decision of whether to find another job or use his professional qualification to start his own Accounting and Tax practice, AJ decided to form AJM Financial Services Inc. in 2013.
The decision was made easier when as he realised that opening his own practice meant no more corporate red tape to deal with, and the ability to make more time for his family. Work/life balance was important. Although the risks and stresses of the two options were different, he believed the stress of running his own business were more in his control. How wrong he was!
Skill alone does not make a profitable business
It took AJ two short years to appreciate that one’s professional craft is not the same as turning that into a successful business. You can be a great accountant, but not able to run an accounting business. You can be a hotshot photographer, and fail at turning that skill into a business. You can be the best attorney in town, but it doesn’t necessarily equal a great, profitable practice that gifts you financial security. Craft or skillset is simply what gets professional business owners to the starting line – it is their “product”. But building a business off the back of it, means learning how to scale this craft, how to market this craft consistently, and how to sell to customers and ensure they “see” and “feel” value.
All the things that years at university qualifying as a CA did not teach AJ.
Know when to get help
But AJ has that unmatched quality of a great entrepreneur: he knew when he was beaten and he wasn’t afraid to put up his hand and get help. He remained teachable. After months of turning over what amounted to a fraction of his previous corporate salary, he reached out to get help and got himself a business coach. “I had to learn the skills I needed to run a business, especially when it came to sales and who my ideal target market is,” says AJ. These were foreign concepts and required a language that many an accountant simply does not know how to speak.
And AJ is not alone. So many entrepreneurs start businesses as technicians (good at what they are trained to do), but ‘don’t know what they don’t know’. They think (wrongly) that if they are great at what they do, clients will come…and stay.
We are smack bang in the middle of an economic winter. The way to engage new clients and grow any business is to sell. This does not mean what it used to, i.e. flogging products and services down people’s throats. Nor does it mean waiting for the phone to ring or relying solely on word-of-mouth. It is appreciating, then developing and mastering a sales and marketing pipeline – even as a B2B practice – that generates a lead flow and consistent conversions to paying clients. Every month.
Defining your market
With business coach Kathi Clarke’s help, AJ defined his target market as those SMEs who need assistance in compliance, specifically with SARS (South African Revenue Services) and the full range of well-priced, timeous financial help that sets an owner up to make great financial decisions each day, week and month. Together they ensured AJ created basic, almost-free marketing collateral and a calendar that ensures a manageable flow of new leads when the business needs them – not when they come in. He learned sales-speak and handling objections, as well as presenting professionally and compellingly to generate leads and establish a visible reputation as an expert.
Now, 9 years later, AJM Financial Services has grown from a one-man band to a team of 4 employees, servicing approximately 90 clients in various industries. The services offered include basic bookkeeping, payroll, tax submissions for companies and individuals, preparation and sign-off of Financial Statements, company secretarial services and general management consulting on the financial side of the business. AJ has had a consistent and growing turnover per month that is now six figures. He owns a great red Audi, his children are being educated well and his wife was able to give up work she didn’t enjoy.
“Surround yourself with the right support to remain positive. Spend on technology and your team to leverage how you work. Force yourself to master the essential skills like selling.”
AJM Financial Services’ strap line is “Growing Together”. And with bi-monthly accountability all the way through COVID with his coach to “keep me brave and on-track”, AJ continues to fly his vision. He believes that clients are deserving of good working knowledge and the sort of partnership that sets both clients and staff up for great results.
Juggling how to keep client expectations real and meet their need for good, regular, useful accounting and financial communication is a priority that was made possible because AJ had taken to heart Kathi’s warning before COVID to “date your prospects, clients, suppliers, strategic alliances well. If it won’t work in dating, it won’t work in this type of marketing and selling. Pick up the phone, serve strategically by being useful and stay in touch beyond just doing business”.
Be willing to upskill and adapt – fast
Keeping up-to-date with changes is always a hard one for professional firms, because it eats into billable hours. But again AJ and the team have taken to heart Kathi’s mantra: “If you want to build a bigger, better business, you have to build a bigger, better you.” And if AJ wants bigger, better clients, he and his team need to stay on point with finance, compliance and accounting knowledge in order to serve their clients well. This means investing in the time for self-education, training, online presentations and reading. And as the boss, AJ has been encouraged to lead from the top.
Working from home during the pandemic meant that staff needed the right tools and equipment fast. Financially this was a big outlay, however through coaching AJ had been encouraged to build a nest-egg for such eventualities and so the money was there when he needed it. As too were the standard operating procedures, software, meetings’ roster and clear job descriptions which enabled staff to “keep on” during lockdown from their home offices. Not only was it good for business, but in the scary times of so many going bust and so many losing jobs, the AJM team had security, an uninterrupted income and peace of mind. Invaluable.
AJ’s advice to other B2B business owners is simple: “The secret to success is surrounding yourself with the right support to remain positive. Spend on technology and your team to leverage how you work. Force yourself to master the essential skills like selling; and finally, outsource those tasks that you love – like the technical accounting work – so that we have time to market and sell…which needs constant push. Remember you don’t have to do everything yourself.” How right he is!
So, if your business is not working well or you are backed into a corner – don’t wait till later to fix it. If it’s growing too fast or too slow, and this is robbing you of stability or a good work/life balance – don’t hesitate in tackling it. If the pandemic taught us anything, it was that windows of opportunity don’t last, and life is short.
We as business owners are required to adapt, flex and keep going with all sorts of new challenges on the back of those we’re still dealing with from the last two years. And getting help may be the very best investment you can make. Help to ensure that you are building a profitable business that can work without you. It’s there – so don’t wait until you’re sick to get better.
The economy needs SMEs to grow. And if other business owners can do it, so can you!
By Kathi Clarke, registered Industrial Psychologist, internationally-certified Business Coach and an award-winning business growth expert.
