Accounting Firm Marketing Plan
Franklin & Moore LLC
This sample marketing plan was created with Marketing Plan Pro software.
Franklin & Moore LLC offers expertise in all areas of accounting, bookkeeping, and financial-based planning. The firm has a solid and loyal customer base in a market that has experienced constant but slowing growth in recent years. We have increasing competition from a variety of sources. The firm is highly dependant on revenues from tax planning and preparation for businesses and individuals. These areas account for more than 75% of total revenues. This presents a long-term threat to the firm due to competition and changes in our market. We must diversify our revenue base to realize ongoing growth and stability in a changing industry.
Franklin & Moore LLC provides tangible and intangible value. Our objective is to minimize the tax exposure of our clients and adhere to all state and federal tax laws. The bigger picture means that we are providing peace of mind for our clients - they are legally using their financial resources in the most productive manner possible. We work to make the complex understandable. We act in an advisory role to our clients that will enable them to better influence and optimize their personal and/or corporate wealth. We desire to make them more money and give them a better night's sleep.
Franklin & Moore LLC is a full-service accounting firm, serving the personal and business needs for the community of San Clemente, California and beyond. Our most important clients are mid to large-size organizations that rely on our services for their accounting needs. Tax preparation and planning is just the beginning as we strive to become an integral part of their financial management and planning process. Our best clients value their time and resources, and seek to minimize their tax obligations. They do not like negative surprises. They realize and appreciate the value in the services we offer, along with the lost opportunity costs of not benefiting from our services.
Individual Accounts - The base of individual accounts serves to offer consistent revenues for the firm. Approximately 20% of these accounts also depend on the firm for ongoing financial planning of their investment portfolios. The balance of the clients primarily look to the firm for tax planning and preparation.
Organizations of Over 50 Employees - Our most profitable business clients fall into the "over 50 employees" category. These corporate accounts generate the highest revenues on a per-hour basis and also generate revenues on the most consistent basis throughout the year. Many of these accounts are in the medical/health, dental, and lodging industries. These clients are also more likely to look to Franklin & Moore for the widest range of services the firm offers, such as assisting with pension planning and investment management services. Target clients in this category have annual sales over $3 million, operate more than one location, serve a national customer base or more, and are publicly owned.
Organizations Under 50 Employees - Organizations under 50 employees represent some of the fastest growing clients within the firm. Franklin & Moore offers attractive services that understand and meet the needs of these clients. Again, many of these clients are in select vertical markets, including medical/health, dental, and lodging industries. The key clients in this category have annual sales between $250,000 and $3,000,000, serve customers in the Southern California market, have a local or statewide customer base, and are privately owned. The long-term strategy is to grow with these clients as they expand and their needs for our services increase.
Market trends fall into three general categories: increasing use of software, and key client growth.
Increasing use of software - Tax software is one of our major competitors and continues to erode revenue from individual clients with simple returns. This includes products produced by Intuit with their "Turbo Tax" line and H&R Block Financial with their "Tax Cut" products. Software has also been a resource to increase efficiencies within the firm. For example, we are producing in excess of 50% more work, and therefore billable hours, with the same resources we did in 1995 due to the computer systems now in place.
Key client growth - A cluster of our premier clients have experienced substantial success and growth. Meeting these clients' needs will "bring us along" to offer additional services and provide an opportunity for us to strategically expand the services we offer. As we gain expertise and establish our reputation in these areas, we market those to other clients and use them as a point of interest to attract new clients. Pension planning services are one example of this phenomenon.
The growth rate of our combined target markets has averaged approximately 8.6%. This is due to the growth of established businesses as well as movement into the San Clemente area. This growth rate has plateaued in recent years and is expected to remain constant for the foreseeable future.
The following issues impact market acceptance and Franklin & Moore's ability to generate revenue:
Consumer trends - Those clients that are PC literate are more likely to consider tax preparation software as a viable alternative to using our services.
Economic changes - Two economic changes are taking place, due to the increasing assets of the over-70 "depression generation" and their saving behavior. First, they have proportionately greater assets than their predecessors, particularly individuals with assets in excess of $1.2 million. This group and their heirs may realize increased benefits from tax and estate planning. There is also a phenomenon where the children of this aging population are more likely to inherit assets and need to integrate these newly acquired assets with their own. Both present opportunities for tax and estate planning activities.
Technology advancements - Franklin & Moore has benefited from firm-based software that is enabling us to become increasingly more productive with our existing resources. Unfortunately, technological advancements are also creating greater challenges in the competitive environment.
Competitive activity - Competition has increased on all fronts. In addition to the impact end-user software is having on the industry, firms of similar size have grown and expanded and there are more sole proprietors and licensed tax consultants and bookkeeping services. We consider the market to be at or near saturation.
Political and legal environment - Our business activity is directly related to changes in state and federal tax laws. The most negative activity in this area would be tax laws that lead to significant simplification of tax laws.
Franklin & Moore LLC is an accounting firm offering traditional accounting services and business consulting. The firm's reputation is impeccable and is known throughout the San Clemente, California area as one of the top three accounting firms. Franklin & Moore LLC serves the accounting and financial needs of businesses and individuals to enable them to realize their financial goals.
Franklin & Moore is to be a profitable firm that continues to meet the financial objectives of the shareholders and provides a successful environment for its employees. Our firm will maintain strong growth as a provider of high quality professional services to our clients. We will strive to consistently be perceived as a firm that is professional, trustworthy, accurate, and timely. Franklin & Moore will offer the innovative approach clients need to reach their business and personal financial goals. Wealth is good.
Our services offer expertise to enable our clients to better realize their financial objectives. Accomplishing this for our clients falls into these basic service areas:
Providing quality service is also critical. Our business and individual clients judge our competence based on how we treat them. This is their primary - and in many cases their only - measurement of our capabilities. They ask themselves the following about our firm:
Our services must be strong enough that each of our clients will answer positively to these questions.
Franklin & Moore LLC offers a unique team of CPAs and a professional accounting and bookkeeping staff with proven expertise as business consultants. We do more than prepare taxes. We also provide a variety of valuable services that enable a business to optimize their profitability and minimize their tax exposure. We will work to offer our services in an innovative manner to create a source for business planning solutions that will be difficult to emulate. We offer a premium level of service and expect to receive premium compensation for those services.
The SWOT analysis addresses the strengths and weakness within Franklin & Moore and the opportunities and threats that exist in our environment. This analysis highlights areas to be leveraged and points out where we must improve within the firm and within our industry and market.
Our past marketing activities have produced mixed results. The following is a summary of those activities and categorizes them in terms of "successful" and "unsuccessful." A successful marketing activity produced billable hours that were equal to or greater than the total investment into the activity, excluding time. An unsuccessful activity generated traceable revenue but was less than the cost of the effort.
Additional work is required to better track revenues resulting from each of our marketing activities.
Competitors fall into four primary categories; other firms, sole practitioners, licensed tax consultants and bookkeeping services, and software.
Other CPA firms - A total of 5 firms conduct business in our area that are comparable to Franklin & Moore in size and capabilities, including one that is a national firm. These firms have staff and technology resources similar to ours, although their focus and areas of specialization vary.
Sole practitioners - An estimated 23 sole practitioners exist in the immediate area. This ranges from individuals that have been in business for over 20 years to those that are in their sixth month. Their resources are limited in terms of staff and technology.
Licensed tax consultants and bookkeeping services - The "Type I" individual client, with straightforward and uncomplicated needs, often looks to licensed tax consultants and bookkeeping services in lieu of the services we offer. This client type may consider these preparers on the basis of "self preparation avoidance" rather than from seeking proactive advice and council.
Software - Increasing competition from individual software, particularly Intuit's "Turbo Tax" and H&R Block Financials' "Tax Cut."
The following companies are direct competition to Franklin and Moore. More about them are discussed in the following tables and charts.
Tax Software is our largest indirect competitor.
As the public becomes more comfortable with home computer technology, they are increasingly relying on tax software packages like Intuit's "Turbo Tax" and H&R Block Financials' "Tax Cut." However, for the kinds of clients we pursue, these software packages lack the nuances and prompting that yield best results.
|Select Individual Accounts||6%||380,000||402,800||426,968||452,586||479,741||6.00%|
|Market Segments||Benefits||Product Attitude||Loyalty Status||Buyer-readiness||Characteristic|
|Growth Business||Future Planning||Interested||Medium||Unaware||-|
|Select Individual Accounts||Tax Minimization||Positive||High||Ready to buy||-|
|Company Market Share||12%||13%||13%|
|Industry Variable Costs||$1,318,100||$1,448,400||$1,539,200|
|Company Variable Costs||$120,082||$136,320||$151,996|
|Industry Gross Contribution Margin||$8,688,700||$9,457,200||$10,152,800|
|Company Gross Contribution Margin||$1,080,734||$1,226,880||$1,367,964|
|Company Net Contribution Margin||$1,076,734||$1,222,480||$1,363,124|
|Growth and Share|
|Competitor||Price||Growth Rate||Market Share|
|Huber & Huber PC||$150||10%||9%|
|Lang Pauls & Rowe||$145||7%||14%|
|Wright & Ellison||$155||6%||11%|
|Franklin & Moore LLC||$160||9%||15%|
|Competitor||H & H||LP & R||W & E||Insight||Sole Pract.||Tax Services|
|Product and/or Service||H & H||LP & R||W & E||Insight||Sole Pract.||Tax Services|
|Image||H & H||LP & R||W & E||Insight||Sole Pract.||Tax Services|
|Quality||H & H||LP & R||W & E||Insight||Sole Pract.||Tax Services|
|Location and Physical Appearance||H & H||LP & R||W & E||Insight||Sole Pract.||Tax Services|
|Added Value Factors||H & H||LP & R||W & E||Insight||Sole Pract.||Tax Services|
|Pre and Post Sales Service||H & H||LP & R||W & E||Insight||Sole Pract.||Tax Services|
|Experience||H & H||LP & R||W & E||Insight||Sole Pract.||Tax Services|
|Expertise||H & H||LP & R||W & E||Insight||Sole Pract.||Tax Services|
|Pre and Post Sales Service||9||8||7||5||4||5|
|Other Marketing Activities||H & H||LP & R||W & E||Insight||Sole Pract.||Tax Services|
|Established Sales Channels||7||7||9||5||4||3|