Tax & admin Rebecca Smith · 1 October 2015
CEO of the UK’s fastest-growing accountancy firm: Don’t wait around for a game-changing idea like Uber
Since founding Crunch Accounting in 2007, Darren Fell has overseen its speedy ascent to the current heady heights asthe UK’s fastest growing accountancy firm, as noted byaccountancy Age. He spoke to Business Advice to share his thoughts on how to get a new micro business onto a fast-track to growth. While Fell didn’t come from an accountancy background his graduate training and early work was in corporate telecoms, after setting up his first business email marketing service Pure360, he felt the accounting industry was ripe for a massive overhaul. Accounting specialist Steve Crouch approached him with an idea for a system that could help freelancers, contractors and small businesses and Crunch was created, funded by money from the sale of Pure 360, and investments from Bebo co-founder Paul Birch and former Skype CEO Michael van Swaaij. The firm has appealed to the UK’s SMEs, recognising its efforts to change how accounting works for smaller firms we want it to be cheap, simple and on-demand. Crunch recently reached 7, 400 clients, up from 4, 700 at the same time last year. Fell is unsurprisingly proud of this figure, noting that an accountancy business having nearly 60 per cent growth in one year is pretty phenomenal. Its online system can provide an interim set of accounts in two seconds, which Fell stated was ‘still the most cost-effective in the marketplace. He feels that while some of the bigger accountants have been trying to muscle in on the idea, they haven’t yet had the effect on the marketplace that Crunch has. For Crunch, filling a gap in the market and then doing it better than competitors has proven the recipe to success, but as with all new firms, there were obstacles to overcome in the early stages. the actual launching of Crunch was the toughest part by miles. For a good while there were five-figure sums leaving my bank account every month and still no revenue on the horizon, Fell said. It took two years of development before the company started taking clients on board at a decent rate, with things picking up from there. For micro businesses assessing how they too can develop at an impressive rate, Fell said it’s important not to get disheartened if they don’t initially see the growth they desire. don’t get too hung up on the perfect idea, Fell added. If you think your idea is a good one, then run with it. At the same time, he stressed the importance of taking in others’ input make sure you listen to feedback and tweak it if you need it if you need to. He thinks too many possible entrepreneurs ‘sit around waiting for the big game-changing idea; the Uber or the Facebook; but that’s never going to happen overnight. Crunch after all, started life as simply a piece of software as Fell pointed out. It was only during the development that we realised we needed to be an accountancy firm as well, he said. He also urged caution about going into business with someone who is already invested in another firm too. I decided to go down that road but discovered the conflict of interest can really jeopardise your position.
ABOUT THE EXPERTRebecca Smith
Rebecca is a reporter for Business Advice. Prior to this, she worked with a range of tech, advertising, media and digital clients at Propeller PR and did freelance work for The Telegraph.