Michael A Wallace LLC as Thought Partner A Case Study
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This slide deck is a high level summary of a demographic study conducted by Michael Wallace. This is unusual work for an accounting firm but grew out of the desire to become a Thought Partner with our Clients. To keep it short and simple virtually no detailed data is presented.
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Michael A Wallace LLC as Thought Partner A Case Study
- 1. MICHAEL A. WALLACE LLC AS THOUGHT PARTNER A CASE STUDY
- 2. A Thought Partner Deeply Explores Business Issues with Clients • A Deliberative, Interactive and Creative Process • Discussions are Knowledge Based, Not Opinion • Research is Conducted and Models Built
- 3. Case Background Representative of Actual Conversations, Research and Reports Names, Data and Location Changed to Preserve Confidentiality
- 4. The Client Conversation Size of Market? • How Many People • The Physical Size Population • Growing or Shrinking Changes? • Is It Aging Market Share? • Stable or Changing • Changing Up or Down
- 5. The Client Conversation Customer • Do They Drive By Competitors Travel • How Many and Why Time? Spend in Market? Change in Spend? • How Much Per Person • How Much By Family • Up or Down • Who is Spending
- 6. The Pitch We Proposed Providing Specific Demographics about the Market Such As Population of Market Spend in Market Client Wants This! Market Share
- 7. The Plan Create Map Showing Where Customers Live Define the Physical Market Determine Market Population Obtain Market Demographics and Compare to Client’s Customers Determine Spend in the Market for Client’s Product Estimate Market Share By Spend and Population
- 9. The Market
- 10. Demographics 2010 Census Population: 13,024 Households: 5,432 Families: 3,561 Average HH Income: $48,160 Expenditures for Product of $532,498 or $112/HH Spend is Increasing in the Area
- 11. Conclusions Actual Market Share Much Less Than Client Estimate Spend for Client’s Product in the Market Was Increasing There was Room for Significant Growth Within the Existing Market
- 12. As Thought Partner We Deeply Engaged with the Client • Listened to the Client Asked Questions and Identified a Major Knowledge Gap • Proposed and Helped Implement Programs to Grow the Business Let’s Schedule a Time to Talk It Is Worth Your Time
- 13. Contact Information Michael A. Wallace CPA, CGMA, MBA michael.wallace.cpa@icloud.com 303.725.1805 @mawallacehrco
Editor's Notes
- During a conversation with a client about business trajectory, We asked this question:How big is Your Market? You mean what area does it cover?Well, yes, but also how many people live in your market, what is the spend in the market for your product and what is your market share?I could make informed estimates, but I really don’t know.
- What is your market share today?Gut tells me around 60%.Any data or numbers for support?No, there isn’t any.Do you know if your market is growing or shrinking? What about the population? Is the population growing, is spend for your product/service increasing? I don’t know.Do you specifically know how far your customers travel to visit your business? They come from around the area. Though I never thought about how far and why they travel that distance.
- And this is a Value Add service provided to Client
- The Client agreed the best definition of the market was where existing customers lived. So we downloaded the Client’s customer list to a mapping tool and produced the map on the next slide.
- There are more than seven customers, but that is all we are showing.
- Then we drew a line around the marketClient sells from a retail store frontNo Internet, no catalogue, no trade showsClient didn’t think it likely anyone would cross the river to come to their storeClient agreed this drawing fairly represented the marketSo we obtained demographic data for this defined area.
- This is a simplified view of the data we obtained. Much more information was available and analyzed. Importantly we had a good estimate of the annual spend per household on the Product and that the spend per household had increased over the previous decade. We also identified age related variations in the spend. Variations which affect the definition of the Client’s target customers.
- So what happened next? Client and Michael A. Wallace LLC developed a program that identified the Client’s Value Proposition and determined how to communicate that Value Proposition to potential customers. That is, we developed a plan to grow the business by building on the business’s strengths. As a result after years of no growth the client determined there was an opportunity to grow the business.