Frequently Asked Questions about G & G
Dear friends, I am always glad to answer your questions regarding your perspectives upon joining audit companies network G & G. I will be happy to answer any additional questions that you send by e-mail to gostew@gostew.ru
- Question: Are there any network fees?
Answer: We do not collect any fees, as organization has different economic purposes.
- Question: What is the aim of network creation?
- Question: What does network expect from its members?
- Question: What are the benefits of being a network member?
- Question: Organization of seminars and use of brand marks can hardly justify themselves
Answer: to questions № 2, 3, 4, 5
Network was created with the following purpose – main network enterprise with resources (monetary and labor) unites small audit, accounting, legal, and consulting firms into one network to consolidate their annual sales into one network turnover. Such capitalization gives the network and its’ members opportunities to considerably increase ratings and obtain more chances to conclude major and medium-size agreements on providing audit and other network services. Any network member may conclude such contracts using logos, certificates, licenses of main enterprise independently without any payments, as they will conclude agreement with their organization on the basis of agreement on cooperation (this international practice is used by G4, and all network companies use similar schemes).
Main enterprise of audit network may also conclude contracts on its behalf. Members enjoy the benefit of consolidation (capitalization) that promotes fast development of all network audit companies, since we represent ourselves as a major audit structure and jointly develop this brand that helps us to achieve more confident of potential clients who conclude more and more agreements with us providing profits.
Network members constantly exchange experience, useful contacts and contracts. You may conclude an agreement on any type of service even if your company does not provide this specific type. For example, you do not provide IFRS audit or audit with access to state secret, but there are companies in the network that can do it. You may simple resell the contract to your network partner (by posting announcement at network site – in Tenders section), choose the most profitable offer or the most reliable member that you trust and enjoy the benefits as contract’s owner by using FSSR license of the main enterprise.
Note that most of the risks while applying this structure are almost reduced to zero. For example, you will never lose a client to another network member as it is not profitable. Network experience shows that audit companies joining networks develop 2-3 times faster than those who try to survive alone.
As for seminars, they do not involve making profits. They are more an experience exchange. You can earn money by organizing seminars for unlimited customers’ audience, not for limited network audience. Besides seminars do not cost much, expenses mostly include speakers and chairman compensation, coffee breaks, and premises rent. Profit will not exceed 10%, however this may decrease seminar costs by 20-30% comparing to current costs.
Speakers at seminars are rarely side theorists, mostly they are engaged in practical work and wish to share their experience and use innovations of network partners (enterprises) which may also lead to additional income. We plan to invite mass media and TV to report on these events and advertise network brand, and consequently each member’s enterprise as they all work under this brand. These events will undoubtedly have double effect – we will receive information and knowledge and benefit of trust of potential clients which gives us more opportunities to conclude new contracts and gain more profit.
Survival at audit, accounting, and consulting market becomes increasingly hard. We saw that in other countries, and today it happens in our country as well. That is why most companies try to consolidate but do not know the way to do it, besides first stage is very costly. However, the game is worth the candle. We saw the development and prosperity of such audit networks as Price, Deloitte, KPMG, etc. We know the way and we are sure that our goal is within our reach. We will learn from positive experience of G4 applying it to our own visions.
Best regards,
Igor Valentinovich Gostev
Contact phone: 8(495) 648-53-55
Mobile phone: +7(963) 656-00-11
