I got couple of queries regarding my previous articles where I was asked that why only cover cost accountants and not company secretaries.  Well my practising articles are applicable for both the professions and I have full support and patronage towards both the practising communities. In continuation to my previous articles about Invisible capital : For Cost Accountants in Practice – PART 3

I have found we do certain mistakes in the initial days when we start planning about the practising. The biggest mistake we do is that we take the decision of starting the same alone. This is the biggest mistake in the initial process we commit due to which we keep on creating mistakes one after the another. We should always begin practising business with multiple or group of qualified or semi-qualified members/candidates. The biggest advantages to this point are that you get many young brains from where you get energy as well as motivation followed ideas to move the wheels of the practising. Remember business with multiple founders’ works best since it creates value proposition from all angles. 

I find that while starting practising we don’t focus on the segment of clients we need to cater. We move blindly and try to tap every client without having a specific target. This is the biggest mistake. When we commit these types of mistakes we get frustrated easily later on since we don’t have clear map regarding the segment of client we should focus. We always make a comparison with others while starting the practice and we dream that we will be able to create a replica of the same. This is the point of birth of disaster. We need to understand that their business models, their clients, their services and quality of delivery are different and we cannot copy the same on a overnight basis. I repeated several times that don’t try to copy or get into the shoes of someone else. Every business has its own process and expertise of growing and developing. Hence you must try and work hard to understand the clients of you want to acquire and you have acquired. This is the inflection point of creating the difference and your practising business.

Now in order to understand your clients you need to create a profile file for your clients where you will record all the brief details about the clients business and its process. This would work as a bible for developing your advisory business where you will provide cost management business strategic expertise to the client. You need to document all the hardcore facts and brief details about the clients business and read that several times so that you can create value proposition for your client. This also helps you to understand several inter linked business models associated with your clients. You networking would get new shape since as you keep on understanding your clients business you will be keen to develop networks related to his business where you can link up those networks and create difference for the clients. This is the process of creating invisible capital.

This is process through which you create value and competitive advantage. When you have the documented text with yourself where you don’t include any finance or tax related document but only business profile and its process matters you get a clear understanding of the business process. This will work as reference book for you even when you escalate your business of practising to new heights. I have found that we discuss in small groups about the professional draw backs and our limited area of scope and about our competitors. Our biggest challenge is that we are competitors of our own and not of any other. The earlier we adopt and change the attitude of creating a different identification and signature we will be able to create a strong practising business model. We need to understand that we are sating limited scope of practising by getting into the eyes of someone else and not from out of the box. We need to think out of the box and create new avenues for the practising profession of Cost Accountants and Company Secretariats.

Last time I was discussing about value and ethical values which are linked with your Invisible capital. You all must have heard about Sarad Scam and now Rose Valley Corporation. I don’t need to explain further about them. The point here is that you will get many companies like this in the form opportunity where you can make extensive amount of money if you get attached to them. They might be short term windfall gainers but the long term heads only towards spoiling the practising business and spending sleepless nights. Hence avoid these lucrative opportunities which are non- other than death traps. This is the prime reason why I persisted on ethics and high moral values to be part of the Invisible Capital. Your invisible capital would save you from death traps as well as also increases your business opportunities and improvises your quality of service. Remember if you don’t compromise with yourself neither will be your practising.  Try to increase the moral values then automatically you will find incremental increase in the cost accounting profession and within the competitors.