What if Richard Branson came to disrupt the accounting profession?
Disruption will come to every industry at some point in time. As technology and the world changes it’s inevitable.
The concept of huge disruption in the accounting profession hit me like a lightning bolt at a conference in 2013 when Greg Sheehan asked the question about what would happen if Sir Richard Branson entered the room to announce he was launching ‘Virgin Accounting’. Not only that — but he’s launching in your neighborhood.
It’s not unrealistic. Just like providing a low-cost no frills airline the same Virgin model in accounting would find a place. You might have to book all your meetings with your accountant online to save admin costs. All documents might be delivered electronically with extra charges for paper copies and there might only be a limited set range of services available.
But if the level of customer service is high and the price makes it a compelling option — it would find its market. Being able to build and rollout the company at scale would create incredible efficiencies in how they’d operate. Current technology would make it possible for the whole company to operate online and expand at a rapid pace.
I can see it now. Sir Branson on TV grinning and telling everyone to login and see a new way to ‘make your numbers fun’.
Now of course it wouldn’t fit everybody. Many clients would have specific needs or require a level of service beyond the “no frills” approach. Virgin Airlines didn’t destroy Qantas in Australia but did create a new competitive landscape in air travel. There still remain compelling reasons to fly Qantas and often pay more. Anybody who has experienced flight delays and reschedules on a holiday with a super budget airline will instantly appreciate the value in being confident when your plane will actually arrive. But despite that many still want the no-frills option and will keep doing so.
The real question is if ‘Virgin Accounting’ came to your neighbourhood would you be 100% comfortable with your current offering?
Would you be confident enough with your relationship with clients that they’d still see your value? Would your services, time frames and guarantees be able to compete? Are you able to demonstrate and explain what the “frills” are with you and why they’re important? Would your marketing and brand still be able to attract new clients to you?
They’re important questions to ask. Although it’s unlikely that Sir Branson will be jumping off a plane any time soon to launch his accounting practice, there’s no reason not to answer these questions now and play like he’s checking in at Heathrow.
It’s how you grow. It’s how you change. It’s how you innovate and keep moving forward.
You see it many not be “Virgin Accounting” coming to town but it could be a 25 year old with an app and an idea. It could be a changing demographic demanding something more. It could be technology doing the work faster, cheaper and better. It may not even be in accounting but it may your client’s industries.
Answer the questions now and don’t stand still. Because the disruption is inevitable and somewhere and in some form — it’s boarding a plane to come to town.
Answer the questions now and it may even be you holding the ticket.
