1. 1 Crowe Horwath International © 2009 IFAC Small and Medium Practices Forum 2009 - Role of SMPs in providing business support to SMEs Mr. Paul MP Chan Beijing, China. October 28, 2009 Audit | Tax | Advisory

2. 2 Crowe Horwath International © 2009 Supporting SMEs By Market Demand and By Necessity SMEs – Worldwide, all Governments help SMEs because of Employment & Politically Popularity SMP’s Capacity constraint in serving large companies

3. 3 Crowe Horwath International © 2009 Supporting SMEs Ranked the most trusted advisers to SMEs, not just on accounting and business matters, but also on a variety of issues

4. 4 Crowe Horwath International © 2009 Supporting SMEs Own skills need to be upgraded to meet market demand e.g. Software Packages make book-keeping services almost obsolete

5. 5 Crowe Horwath International © 2009 Supporting SMEs Focus your market segment/choose your expertise; e.g. Risk Consulting IPO Consulting Obtaining finance Investment advisory Insolvency

6. 6 Crowe Horwath International © 2009 General knowledgeExperience & Knowledge Uniqueness & Pioneering concepts Skill level requirement Volume + Management Talent + Brand Experience + Trust Critical Success Factors Margin Rocket Science Time Grey Hair Procedures & Practices Practice Economics - Life Cycle of Professional Services Source: Adapted from Professor David Maister's book

7. 7 Crowe Horwath International © 2009 Supporting SMEs Formation of Strategic Alliances, and what else?

8. 8 Crowe Horwath International © 2009 Supporting SMEs Pricing Differential Pricing Value Pricing

9. 9 Crowe Horwath International © 2009 Finding New Clients Situation of 2 Professional Firms: Firm A

10. 10 Crowe Horwath International © 2009 Situation of 2 Professional Firms: Firm B Finding New Clients (Cont’d)

11. 11 Crowe Horwath International © 2009 Marketing Over 70% of new businesses are from existing clients Don’t overlook opportunities in existing clients while chasing new clients

12. 12 Crowe Horwath International © 2009 Thank You ! Contact Information: Tel:(852) 2165 7887 Fax:(852) 2881 8766 Email: paul.chan@chhkcpa.com Website: www.chhkcpa.com www.paulmpchan.org