#120: Getting Businesses To Take Action By Being Better Advisors

with Rhondalynn Korolak

Our Guest Mentor:

Rhondalynn Korolak is founder and Managing Director Businest®  and award winning Business App which teaches accountants to master the specific skills required to build & scale a thriving advisory practice. Rhondalynn has worked across two continents, articled as a tax lawyer, and served in general management and as a business coach.

Rhondalynn has also written three books: Sales Seduction; Financial Foreplay; and On The Shoulders of Giants. She also as an upcoming book on Pricing Value.

Rhondalynn holds a CPA designation and lives in Melbourne, Australia.

Key Quotes From the Episode:

 “[On what Rhondalynn uncovered working with SMEs] 95% of small business owners are financially illiterate and that’s a huge problem for us as accountants and finance professionals.” [07:52]

 “[On the biggest opportunity for accountants] I believe that the biggest opportunity doesn’t lie in any of this technology, the apps, any of the stuff that we’ve got? I believe it lies in us unlocking within ourselves better communication styles that actually speak to a layperson In learning what we need to gain leverage on our clients in to influence them to take action and I think that is the future of our preferred our profession.” [09:11]

“[On a practical definition of advisory] Do what you love and the money will follow.” [11:07]

“[On accountants making things too complex] most of the problems that I see small businesses suffering from are not that complex. They’re your simple little rookie mistakes that these people are making and it is actually very easy to strip away all the accounting and help them to just fix their business. I always like to think of it like this. You don’t have to be a hairdresser in order to be the accountant of a hairdresser. And that hairdresser doesn’t need to learn accounting to run a successful business either. But we just have to get better at explaining to them why their business doesn’t have any money.” [20:37]

“[On Pricing Value] We’ve got to put the Value Up before we can ever hope to put the Prices Up.” [28:52]

“[On Best Bit Of Advice To Accountants] People don’t really care what you know, They care that you can help them achieve what they need.” [34:34]

 (Other resources and how to connect with Rhondalynn below).

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Key Points From the Episode:

  • Why financial illiteracy in SMEs is a big problem for us accountants, why we’ve not made it simple for people and the huge dilemma and opportunity for us.
  • The damning survey results on how poorly finance professionals are at communication and a number of steps on how to improve our communication styles to build better leverage and better create value for our clients and organisations.
  • The importance of Pricing Value as opposed to the more detrimental approach of Value or Value-based Pricing.

Time Stamped Show Notes

[02:21] – Rhondalynn shares her career journey from university to Big 4 public tax accounting and not fitting in with the traditional numbers.

[05:20] – On her journey from oil and tax lawyer in Canada to General Management in Australia, before then going into business coaching with small businesses (and the difficulty of taking enterprise level KPIs and dashboards to SMEs).

[08:06] – Why financial illiteracy in SMEs is a big problem for us accountants, why we’ve not made it simple for people and the huge dilemma and opportunity for us.

[10:20] – Why accountants don’t have a sales problem, we’ve an influencing problem.

[11:07] – Rhondalynn’s practical definition of advisory.

[12:15] – A funny story on the outcome of a survey that business owners thinking they need more customers to fix their cashflow and is the reason why they don’t go their accountants first.

[15:18] – On how to improve our communication styles and leverage.

Stop whipping out dashboards and KPIs

Get their attention by quantifying the cost of the client ignoring the problem (i.e. doing nothing) in their own language (i.e. mortgages, boats, young families, take action work with me next 60-90 days, stop washing down toilet)

[16:52] – Why Rhondalynn started studying neuroscience and how she uncovered that the most primitive part of our brain does not recognise numbers, so why do we sell them dashboards and graphs and financial models and why it’s too complex for them to decide upon.

[19:28] – Why we need to be storytellers on how to fix the business and why that is the future of our profession.

[21:50] – What’s exciting Rhondalynn about her current work and why accounting firms are leaving up to 30% of pricing opportunities on table.

[26:32] – The importance of Pricing Value as opposed to the more detrimental approach of Value or Value-based Pricing. “We’ve got to put the Value Up before we can ever hope to put the Prices Up”

[31:33] – Why Pricing Value is not linear, it is a conversation and really understanding what others value and what the cost to them of the solution is before you ever open your mouth and quote the price. Stop premature quoting

[34:34] – The best bit of advice Rhondalynn has ever received and why we’re in a relationships business as opposed to the business of transactions.

[36:00] – The impact of technology change and what it means for our future as finance professionals.

[37:19] – How best to connect with Rhondalynn.

[38:21] – Rhondalynn’s parting thoughts and why we are in great competition now and need to be better at communication than sales and marketing.

[41:20] – A story of why you should be spending 76% of your marketing budget on your existing customers and how you can’t grow a business by cutting costs.

Resources Mentioned:

  • On The Shoulders of Giants: 33 New Ways To Guide Yourself To Greatness 2008, by Rhondalynn Korolak,
    • Paperback/Kindle: Link
  • Financial Foreplay (Whip Your Business Into Shape Book 1) 2010, by Rhondalynn Korolak,
    • Paperback/Kindle: Link
  • Sales Seduction: Why Do You Say Yes? 2012, by Rhondalynn Korolak,
    • Paperback/Kindle: Link
  • Businest (website)
  • Make the SHIFT™: (website)

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