Here's some great advice you can bank on -- perfect for those of you who want to open a bank auditing and consulting business.
Why Banks Need Auditing & Consulting Firms
Like other types of businesses, banks rely on third-party consultants to perform a variety of business activities. The difference is that accounting standards require banks to obtain independent audits. So to maintain compliance, banks hire auditing and consulting firms to conduct reviews and compile financial statements for regulators.
But in a typical audit scenario, your company will likely do more than meet minimum compliance requirements. In most cases, auditors also make recommendations to help the bank improve operational efficiencies and institute stricter financial controls.
Expertise is not negotiable for bank auditing startup owners. As a bank auditing and consulting entrepreneur, it's vital to have firsthand experience in the field of financial institution auditing. At a minimum, you'll need to have either worked for a bank auditing firm or worked with auditors in your role as a bank employee.
Selling Points for New Bank Auditing and Consulting Companies
Securing clients is a never-ending struggle for bank auditing and consulting entrepreneurs. Client loyalty only goes so far since accounting rules encourage banks to periodically change auditors as a protection against intentional or unintentional oversights. As a result, your startup will need to consistently leverage several key selling points to maintain a stream of fresh bank clients.
- Experience. It can be difficult for startups to sell their services based on experience. To overcome your firm's youth, you will want to leverage the experience of your team. By hiring seasoned CPAs, tech experts, regulatory compliance specialists, former bankers, fraud experts and other staff, your company gains the ability to compete with more established firms on the basis of industry experience.
- Customization. The audit process is fairly standard. But when it comes to additional services, banks look for auditors and consultants that are willing to offer services that have been tailored to the institution's needs. From this perspective, successful bank auditing and consulting entrepreneurs need to be customer service pros who know how to create unique experiences for their clients.
- Professionalism. Banks take the audit and review process extremely seriously. Small errors or breaches in protocol can jeopardize the bank's regulatory standing, so it's essential that both you and your workforce operate according to the highest professional standards. Your startup's employee handbook and orientation process should include ample coverage of professional standards and spell out the consequences for workers who refuse to act professionally.
How to Create a Winning Bank Auditing & Consulting Firm Business Plan
You've heard that a quality business plan is the first step toward a successful bank auditing and consulting business.
We'll add one more voice to the chorus – writing a solid business plan is the most important thing you can do for your startup. If you take your business plan seriously, the end product will be a document that will guide your company through the critical first year and beyond.
If that's not enough, consider that business plans inoculate your business from common startup mistakes. While other startup bank auditing and consulting businesses are floundering, your business will be on course for growth and profits, protected by a carefully conceived plan that reflects real world business conditions and your business's unique characteristics.
Check Out Competitors
Before you open a bank auditing and consulting business in your area, it's essential to determine how many competitors you have. Use the link below to generate a list of competitors in your area. Complete the form by entering your city, state and zip code to get a list of bank auditing and consulting businesses that are close by.
Prior to opening your doors for business, be sure you fully understand the competitive landscape and where your new business will fit in.
Turning Competitors Into Collaborators
Once you've finished assessing the competion, it's essential that you learn as much as you can from somebody who is already in the business. Local competitors are not going to give you the time of day, mind you. The last thing they want to do is help you to be a better competitor.
But, a person who owns a bank auditing and consulting business in another town may be more than happy to give you a few tips, after they realize you reside far away from them and won't be stealing their local customers. In that case, the business owner may be more than happy to discuss the industry with you. If you are persistent, you can find a business mentor who is willing to help you out.
Do you know how to find a bank auditing and consulting business entrepreneur outside of your area who is willing to talk?
Simply, try our helpful link below, type in a random city/state or zipcode, and start calling.
Acquisitions vs. Startups
Unfortunately, many inexperienced bank auditing and consulting business entrepreneurs approach ownership with the mistaken idea that a startup is their only option when they could also pursue a business acquisition.
Unless you have compelling reasons to launch a new business, buying an existing bank auditing and consulting business may be the better choice.
Established bank auditing and consulting businesses are already equipped with the resources and processes new business owners struggle to acquire. The key is to locate a business-for-sale that closely matches your ownership philosophy and professional objectives.
Franchising May Be a Better Way to Go
As an entrepreneur, your chances doing well with your venture zoom upwards if you opt for franchising rather than going it alone.
Prior to making the decision to open a bank auditing and consulting business, it's worthwhile to investigate whether purchasing a franchise might make sense for you.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding getting started as an entrepreneur may be of interest to you.
If you currently own a bank auditing and consulting business, try these useful resources:
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