Setting the right price for your fractional CFO services is crucial. The rate you choose doesn’t just reflect the value of your work; it also influences your business growth, client satisfaction, and long-term success.

Understanding how to price your services properly, especially in a role as critical as a fractional CFO, requires more than just a look at market averages. It involves a strategic approach that considers your unique value proposition, market demands, and the specific needs of your clients. Let’s take a deep dive into the various strategies for setting your fractional CFO rates, including the benefits of integrating value-based pricing into your pricing strategy.

Understanding Fractional CFO Services

Before diving into pricing strategies, let’s take a moment to recap what fractional CFO services entail.

A fractional CFO is a financial expert who works with multiple companies, typically on a part-time basis, to provide high-level financial guidance and management. Unlike traditional CFOs, who are full-time employees, fractional CFOs offer flexibility and scalability, making them an attractive option for businesses that need financial leadership but can’t justify the expense of a full-time CFO.

The scope of fractional CFO services can vary widely depending on the client’s needs. Some common responsibilities include financial planning and analysis, budgeting, cash flow management, risk management, and financial reporting. In many cases, fractional CFOs also play a strategic role, advising on business growth, mergers and acquisitions, and other significant financial decisions.

One of the primary benefits of offering fractional CFO services is the ability to serve a broader range of clients. Startups, small businesses, and even larger companies undergoing transitions or facing financial challenges can benefit from the expertise of a seasoned CFO without committing to a full-time employee. This flexibility not only meets client needs but also allows fractional CFOs to diversify their client base and income streams.

Factors Influencing Fractional CFO Rates

Fractional CFOs must consider several factors before pricing their services. Understanding these factors will help you align your pricing with both market expectations and your unique value proposition.

Market Demand and Industry Standards

Make no mistake, there is a huge market demand for fractional CFO services. Owners of small and medium sized businesses have become more sophisticated, and they recognize the value of strategic financial leadership, However, these business owners often can’t justify the overhead of a full-time CFO. This has led to a surge in the demand for fractional CFOs. And, as we learned in high school economics, this demand, combined with industry standards, can provide a baseline for your pricing.

However, it’s important to remember that industry standards are just averages and may not fully reflect the value you bring to your clients. For instance, if you have specialized expertise in a particular industry or a track record of driving significant financial improvements for your clients, you may find your firm is in higher demand and be able to command rates above the industry standard.

Client Needs and Expectations

Another crucial factor in setting your rates is understanding the specific needs and expectations of your clients. Different client segments may have different priorities when it comes to financial management. For example, a startup might be focused on cash flow management and fundraising, while an established business might need help with strategic planning and risk management.

Tailoring your pricing and your approach to reflect these needs can enhance client satisfaction and increase your chances of winning new business. This is where value-based pricing can play a significant role, as it allows you to align your rates with the perceived value you provide to each client.

Setting Your Fractional CFO Hourly Rate

Once you have a clear understanding of the factors that influence your pricing, the next step is to determine the pricing approach that works best for your firm. Let’s start with the hourly pricing model.

Determining Your Base Hourly Rate

In hourly pricing, your base hourly rate is the foundation of your pricing strategy. To calculate it, you’ll need to consider several key factors:

1. Experience and Expertise: The more experience and specialized expertise you have, the higher your rate can be. When communicated effectively, many clients are willing to pay a premium for seasoned professionals who can offer valuable insights and drive significant financial outcomes.

2. Operational Costs: Fractional CFOs already know this, but we’d be remiss if we didn’t remind you: Don’t forget to factor in your operational costs, including overhead expenses like office space, technology, and administrative support. These costs must be covered by your rates to ensure your business remains profitable.

3. Market Comparison: You don’t want to base your rate solely on what others are charging, but understanding the market and how other fractional CFO firms are positioning themselves can help you price your firm’s services competitively. Research the rates of other fractional CFOs in your area or industry to get a sense of where your services fit within the broader market.

4. Value Proposition: Every fractional CFO firm – even those using a scalable and repeatable system like Profit First – offers unique value to their clients. This could include specialized industry knowledge, a proven track record of success, or the ability to offer services beyond traditional CFO responsibilities. The more value you provide, the higher your rate can be.

Value-Based Pricing vs. Hourly Rates

While an hourly rate is a straightforward way to price your services, it’s usually not the best approach, especially for high-impact roles like a fractional CFO. This is where value-based pricing comes into play.

Value-based pricing involves setting your rates based on the value you deliver to your clients rather than the number of hours you work. This approach can be particularly effective for fractional CFOs, as your work often has a direct impact on a client’s financial performance.

For example, if you help a client improve their cash flow or secure a significant investment, the value of your services extends far beyond the hours you spent on those tasks. In such cases, value-based pricing allows you to align your compensation with the outcomes you deliver, rather than simply billing for your time.

There are several scenarios where value-based pricing can be more advantageous than hourly rates:

High-Impact Projects: If you’re working on a project with significant financial implications, value-based pricing can better reflect the importance of your work.

Strategic Advisory Roles: When you’re providing strategic advice that could shape the future of a company, value-based pricing ensures that your compensation is aligned with the long-term value you’re creating.

Performance-Based Incentives: In some cases, you might structure your pricing to include performance-based incentives, where a portion of your compensation is tied to achieving specific financial goals. This approach can further align your interests with those of your client.

Communicating Your Rates to Clients

Once you’ve determined your pricing strategy, the next challenge is communicating your rates to potential clients in a way that highlights the value you bring to the table.

Effectively Presenting Your Pricing

A common mistake fractional CFOs make is to focus on the cost of services rather than the value and benefits. Clients are more likely to accept higher rates if they understand how your expertise will positively impact their business.

Fractional CFOs who use our Value Starts With Hello approach virtually remove cost from the value conversation. Download this free resource to test it out for yourself.

Handling Price Negotiations

Occasionally, even those who use the Value Starts With Hello approach find themselves navigating price negotiations. The key is to approach negotiations with flexibility while maintaining your commitment to delivering value.

One approach is to offer different service levels based on access to you or a member of your firm. For example, you might offer a lower rate to clients who are willing to work with a (well trained, of course) member of your firm, making you a “premium” offering in the firm. Or, you might offer a higher rate for quicker response times. The goal is to find a pricing structure that works for both you and the client, without compromising the value of your services.

Reviewing and Adjusting Your Pricing Strategy

Pricing is not a set-it-and-forget-it task. You must regularly review and adjust your pricing strategy, for your own firm as well as your clients’ businesses.

Monitoring and Analyzing Your Rates

Analyze key metrics such as client retention, profitability, and the impact of value-based pricing on your revenue. Gathering feedback from clients can also provide valuable insights into how they perceive your rates and the value you deliver.

If you find that your rates are no longer competitive or aligned with the market, it may be time to make adjustments. This could involve increasing your rates to reflect your growing expertise or introducing new pricing models that better align with your clients’ needs.

Adapting to Market Changes

Your pricing strategy should evolve with the changing financial consulting industry. Staying informed about industry trends, economic factors, and changes in client demand can help you anticipate shifts in the market and adjust your pricing accordingly.

For example, during economic downturns, clients may be more cost-conscious, making it necessary to offer more flexible pricing options or emphasize the cost-saving benefits of your services. Profit First Professionals have access to a “playbook” of recession response tools that can help with this.

Conversely, in a booming economy, you might find opportunities to increase your rates as businesses invest more in strategic financial management.

Conclusion

Setting the right rate for your fractional CFO services is a dynamic process that lies at the conjunction of your value proposition, market conditions, and client needs. By integrating value-based pricing into your strategy, you can align your rates with the outcomes you deliver, ensuring that both you and your clients benefit from the relationship.

Refining your pricing strategy is a milestone each Profit First Professional is encouraged to reach. If you’re interested in becoming a Profit First Professional fractional CFO and exploring how value-based pricing can elevate your business, then schedule a call with us today.

Financial leadership is essential to a company’s success. Large organizations rely on full-time Chief Financial Officers (CFOs) to manage their financial strategies. However, startups and small to medium-sized enterprises (SMEs) can also benefit from CFO-type expertise. Enter the fractional CFO—a role that is gaining traction for its adaptability and targeted expertise.

Business owners in the growth phase and financial professionals who are interested in offering fractional CFO services must understand what “fractional CFO” means. Let’s delve into the concept of a fractional CFO, their core responsibilities, strategic functions, and why they are increasingly becoming a vital asset for businesses of all sizes.

What Does Fractional CFO Mean?

A fractional CFO (or outsourced CFO or part-time CFO) is a financial expert who provides strategic financial services to a company on a part-time, contractual, or as-needed basis. Unlike a traditional, full-time CFO who is an in-house executive, a fractional CFO often works with multiple companies, offering their expertise to businesses that may not require or cannot afford a full-time CFO.

The role of a fractional CFO is tailored to the specific needs of the business. Whether it’s navigating financial challenges, preparing for investment or acquisition, or simply improving financial efficiency, a fractional CFO steps in to offer high-level financial guidance and strategy without the long-term commitment of a full-time hire.

How Fractional CFOs Differ from Full-Time CFOs

The key difference between a fractional CFO and a full-time CFO lies in the scope and duration of their engagement. While a full-time CFO is an employee who is deeply embedded in the company’s day-to-day operations and long-term strategy, a fractional CFO is an outside provider who focuses on specific financial challenges or strategic goals over a defined period. Depending on the services provided and the company’s needs, this period can last a few months or a few years.

This flexibility is particularly beneficial for growing businesses that need seasoned financial leadership but do not have the budget or consistent need for a full-time CFO. By hiring a fractional CFO, businesses can access top-tier financial expertise and leadership on a scalable basis, paying only for the services they need.

Core Financial Responsibilities of a Fractional CFO

A fractional CFO’s responsibilities can vary depending on the company’s needs, but they generally cover several core financial functions:

Managing Financial Planning and Analysis (FP&A):

Fractional CFOs take charge of a company’s financial planning and analysis, including managing cash flow in real time, forecasting future revenues, analyzing financial trends, and developing strategies to achieve financial goals.

Overseeing Budgeting and Forecasting Processes:

A fractional CFO ensures budgeting and forecasting processes are carried out effectively, aligning the budget with the company’s strategic goals and ensuring that resources are allocated efficiently.

Ensuring Financial Compliance and Risk Management:

Fractional CFOs play a key role in ensuring that the company adheres to financial regulations and standards. They also identify potential financial risks and implement strategies to mitigate them, protecting the company from unforeseen financial pitfalls.

These responsibilities may be carried out by a single provider, or a business owner might engage multiple providers to fulfill all of these functions. The beauty of the fractional CFO role is its flexibility and adaptability, allowing business owners to build an “ecosystem” of professionals with deep expertise in any given area.

Strategic Advisory Functions

Management of responsibilities and process is one thing, but great fractional CFOs go beyond this to provide strategic guidance that can shape the future of the business. A great fractional CFO also:

Guides Business Strategy and Financial Decision-Making:

By analyzing financial data and market trends and distilling this information in a way the busy owner of a growing company can digest, fractional CFOs help business owners develop strategies that align with both short-term objectives and long-term goals.

Assists with Mergers, Acquisitions, and Capital Raising:

For businesses looking to expand through mergers or acquisitions, or those seeking to raise capital, a fractional CFO can provide expert advice and management throughout the process. They ensure that financial considerations are at the forefront of these decisions, helping to secure favorable terms and outcomes.

Aligns Financial Strategies with Business Objectives:

A fractional CFO aligns all financial strategies with the overall business objectives. This alignment helps to drive growth, improve profitability, and ensure that every financial decision supports the company’s broader goals.

Operational Management

Operational efficiency is another area where fractional CFOs make a significant impact:

Streamlining Accounting and Financial Operations:

Fractional CFOs often take a hands-on approach to optimize accounting processes and financial operations. This can involve implementing new financial systems, improving reporting accuracy, and ensuring that financial operations are running smoothly.

Implementing Financial Systems and Technology:

With the growing reliance on technology in finance, fractional CFOs are often tasked with selecting and implementing financial systems that enhance operational efficiency. Whether it’s accounting software, ERP systems, or financial analytics tools, they ensure that the technology aligns with the company’s needs.

But a great fractional CFO doesn’t stop there. The most effective fractional CFOs use technology to analyze data so they can have meaningful conversations with their clients. In other words, a great fractional CFO won’t simply provide their clients with technology and call it a day.

Managing Cash Flow and Working Capital:

Effective cash flow management is crucial for any business, particularly for startups and SMEs. Fractional CFOs monitor cash flow closely, ensuring that the company has sufficient working capital to meet its obligations and invest in growth opportunities.

And Profit First Professionals fractional CFOs do this using a proven methodology that startups and SMEs can understand and act upon without changing the way they think or behave.

Client-Centric Approach: How Fractional CFOs Add Value

A successful fractional CFO tailors their services to the unique needs of each client using a scalable and repeatable approach. This approach sets them apart from their competition while still enabling them to grow their firms.

They do this by:

1. Tailoring Services to Meet Client Needs:

Fractional CFOs offer bespoke financial services, adapting their expertise to fit the specific challenges and goals of each client using a scalable and repeatable system. Think of the system as the “skeleton” and the tailoring to the client as the “muscle.” This allows the fractional CFO to provide maximum value without the overhead of a full-time role.

2. Building Strong Client Relationships for Long-Term Success:

A fractional CFO’s success hinges on the relationships they build with their clients. By understanding the client’s business and industry, they can provide more relevant advice and contribute to the company’s long-term success.

A powerful way to build these relationships is to ask the right questions, listen for the clients’ answers, and then deploy solutions when the client is ready for them. Our Value Starts With Hello e-book contains a roadmap that guides fractional CFOs through this process.

3. The Importance of Communication and Transparency:

Clear communication and transparency are particularly important for fractional CFOs who may not be present in the company every day. By maintaining open lines of communication, being transparent about their findings and recommendations, and using language their startup and SME clients understand, fractional CFOs build trust and ensure that their advice is acted upon.

What Does Fractional CFO Mean for Growing Businesses?

For startups and growing businesses, hiring a fractional CFO is a game-changer.

Benefits of Hiring a Fractional CFO for Startups and Growing Businesses:

Startups and SMEs operate with limited resources, making it difficult to justify the expense of a full-time CFO. A fractional CFO provides a cost-effective solution, offering the expertise needed to navigate financial challenges without the long-term commitment or the expense of hiring and managing yet another employee.

How Fractional CFOs Help Scale Operations and Drive Growth:

As a business grows, so do its financial complexities. Fractional CFOs help scale financial operations to match the growth of the business. They bring in systems and processes that support expansion, ensuring that the company remains financially healthy as it scales.

Conclusion

The fractional CFO role is an ideal solution for businesses that need high-level financial expertise without the commitment of a full-time hire. By managing core financial functions, providing strategic advice, and streamlining operations, fractional CFOs play a crucial role in driving business success.

Understanding what “fractional CFO” means and the role played by a fractional CFO is essential for business owners looking to leverage this flexible financial leadership model. Whether you’re a growing business in need of financial guidance or a financial professional considering this path, the value of a fractional CFO is clear.

If you’re intrigued by the opportunities presented by the fractional CFO model and want to explore how you can step into this role using an innovative system business owners actually LIKE using, schedule a call with Profit First Professionals. We can guide you on the journey to becoming a fractional CFO, helping you make a significant impact on the businesses you serve.

Client satisfaction and retention are the cornerstones of a successful fractional CFO consulting practice. As a Fractional CFO, your financial management is crucial. But equally important is your ability to understand, address, and anticipate the unique needs of your clients in a way they can understand and act upon. Let’s explore some strategies to elevate client satisfaction, strengthen relationships, and ensure long-term success in your Fractional CFO practice, using a client-centric approach.

The Importance of Client Satisfaction and Retention in a Successful Fractional CFO Practice

A thriving Fractional CFO practice is not just built on technical expertise but also on the satisfaction and retention of clients. Why? Because satisfied clients not only stick around—they also refer others, leading to organic growth in your practice. In a field where trust and reliability are paramount, the quality of your client relationships have a direct impact your business’s stability and success.

By focusing on client-centric strategies, you ensure that your services are not only effective but also tailored to the specific needs and pain points of each client. This approach enhances client satisfaction and fosters long-term loyalty, which drive sustained success for your practice.

Understanding Client Needs

Identifying and Prioritizing Client Pain Points

You can’t meet your clients’ needs unless you first understand their pain points. Every business faces unique challenges, and your role as a Fractional CFO is to identify these challenges and deploy solutions. Whether it’s cash flow management, financial forecasting, or cost reduction, understanding what keeps your clients up at night is the first step toward delivering value.

But how do you do that? Simple…you ask.

Ask your clients about their biggest financial challenges, what they wish they could change, and what they hope to achieve. By using the strategies in our Value Starts With Hello e-book, you can gain deeper insights into your clients’ needs and craft solutions that directly address their concerns.

Tailoring Services to Meet Specific Client Needs

Once you’ve identified your clients’ pain points, the next step is to tailor your services accordingly. A one-size-fits-all approach won’t cut it in Fractional CFO consulting. Instead, your services should be customized to meet the unique needs of each client. This might involve developing specialized financial strategies, creating custom reports, or offering tailored advice on specific issues.

For instance, if a client is struggling with cash flow management, you could focus on improving their cash flow forecasting and management processes. If another client is looking to expand, you might provide strategic financial planning to support their growth ambitions. The key is to align your services with your clients’ goals, ensuring that your value proposition is clear and relevant.

I know, I know…who has time to do all of this when you’re already too busy?

Fractional CFOs with a proven scalable and repeatable system like Profit First, that’s who.

Building Trust Through Deep Client Understanding

To have a successful client relationship, you must first earn trust. Trust is earned by demonstrating a deep understanding of your clients’ needs and consistently delivering on your promises. By taking the time to understand your clients’ businesses, industries, and financial goals, you will build a level of trust that goes beyond numbers.

When clients trust you, they are more likely to share their challenges, seek your advice, and view you as a true partner in their success…all vital elements for client satisfaction and retention.

Personalizing Fractional CFO Consulting Services

Strategies for Customizing Financial Solutions

Remember that proven scalable and repeatable system we mentioned earlier? Yeah, you’re still going to need to personalize that because personalization is key to enhancing client satisfaction in Fractional CFO consulting.

By tailoring your services to the specific needs of each client, you can provide more value and build stronger relationships. This might involve developing customized financial strategies, offering personalized advice, or providing tailored reports and analyses.

Fortunately, personalization isn’t as hard as you might think. Take onboarding, for example. During this process, you can assess a client’s financial situation, identify their goals, and develop a tailored plan that aligns with their needs, all by using a script and a set of “riffs” you create in advance. This personalized approach is scalable, it sets the stage for a successful engagement, and it demonstrates your commitment to their success from the outset.

But best of all, you can teach your team how to repeat this process, which means your Fractional CFO firm can grow even when you’re not the one doing the work.

The Impact of Personalized Consulting on Client Satisfaction

Personalized consulting has a direct impact on client satisfaction. When clients feel that their unique needs are being met and that they are receiving tailored advice, they are more likely to be satisfied with your services. This satisfaction, in turn, leads to greater client retention and referrals.

Think about a client who is struggling with managing their operating expenses. By developing a customized expense management strategy and regularly reviewing their progress, you can help them achieve their financial goals while also demonstrating your value as a Fractional CFO. This level of personalized service can make a significant difference in how clients perceive your practice.

An Example of Personalized Fractional CFO Consulting

Suppose you have a client in the retail industry who is facing declining profit margins. After conducting a thorough analysis, you identify that their inventory management is inefficient, leading to excess stock and higher holding costs. By implementing a tailored inventory management system and providing ongoing financial oversight using the Profit First methodology, you will help them reduce costs and improve profitability.

With just a little bit of effort, you have solved the client’s immediate issue and positioned yourself as a proactive partner in their success.

Enhancing Communication and Transparency

Importance of Clear and Consistent Communication in Fractional CFO Consulting

Clear and consistent communication is especially critical in Fractional CFO consulting. Clients rely on your financial expertise to make informed decisions, but they also need to understand the information you provide. Regular updates, clear explanations in a language they understand, and timely responses build trust and ensure that clients feel supported.

Tools and Techniques for Improving Client Communication

Client portals. Project management software. Automated reporting systems.

I see you salivating, technophiles.

These tools can streamline communication, making it easier for clients to access the information they need and stay informed about their financial situation.

However, these tools are tools for YOU to use. Yes, they can provide your clients with transparency and accessibility, but even more important in fostering stronger relationships is distilling the information provided into strategies your clients understand and can act upon.

In other words, technology does not a Fractional CFO make. Don’t become overly reliant on it.

The Role of Transparency in Building Long-Term Relationships

Clients need to trust that you are being open and honest with them, especially when it comes to their financial health.

And they’re not going to get that if you use accounting lingo.

You need a Rosetta Stone that gives you and your clients a common language. By making it easy for clients to understand their financial situation, you can build trust and foster long-term loyalty.

Measuring Client Satisfaction and Retention

Key Metrics to Track Client Satisfaction

No news isn’t necessarily good news. Sure, your clients might not be complaining, but by the time a client complains the damage is not only done, it’s often insurmountable. So, you need key metrics in place to track your clients’ satisfaction.

There are two simple key metrics every Fractional CFO firm should track:

• Net Promoter Score (NPS)
• Client retention rates

Regularly monitoring these metrics will help you stay on top of client satisfaction and make proactive adjustments to your services.

But how do you track these metrics?

• Client Retention Rates. To assess client retention rates, track how many clients renew their contracts, how often they engage your services, and whether they refer others to you. To improve retention, focus on delivering consistent value, maintaining open communication, and addressing client concerns promptly.
• Net Promotor Score (NPS). Feedback loops are a powerful tool for refining your services and improving client satisfaction. By regularly soliciting feedback from your clients using the Net Promotor Score, you can gain valuable insights by asking one simple question: “On a scale of 0 to 10, how likely are you to recommend our firm to a friend or colleague?” You can then use the score to dig deeper into what might be keeping you from a 10.

Building Long-Term Relationships Through CFO Consulting

Strategies for Nurturing Long-Term Client Partnerships

Regular check-ins, ongoing support, and personalized advice are all essential components of a successful long-term relationship. As a Fractional CFO, you must stay engaged with your clients. This is the only way you can deliver consistent value and build lasting partnerships that benefit both your clients and your practice.

The Importance of Ongoing Support and Advisory in CFO Consulting

Clients need to know that they can rely on you not just for one-off projects, but for continuous support and guidance as their business evolves. By offering ongoing advisory services like Profit First, you can help clients navigate challenges, seize opportunities, and achieve their long-term financial goals with confidence.

How Strong Relationships Lead to Client Referrals and Business Growth

Satisfied clients are more likely to refer you to others, helping you grow your practice (see the Net Promoter Score KPI above). When you focus on building and maintaining strong relationships, you create a network of loyal clients who are eager to recommend your services to others.

Adapting to Evolving Client Needs

Staying Ahead of Industry Trends to Offer Relevant Services

The business landscape and your clients’ needs are constantly evolving. To stay relevant, your firm must stay ahead of industry trends and refine your services to address those trends.

How to Refine Your Fractional CFO Offerings

It seems that part of the human condition is to first complicate things and then simplify them. We’re on the other side of our Complication Era; now, to stay competitive in the Fractional CFO space, we must enter our Simplification Era.

Simplifying to Meet Client Demands

Fractional CFO firms have historically focused on data analytics in financial decision-making. The problem? These analytics have flown over their clients’ heads. Even worse, Fractional CFO firms didn’t have the language to explain these analytics to their clients.

By investing in a system like the one offered by Profit First Professionals, Fractional CFO firms are able to offer more advanced financial insights to their clients in language the clients understand, setting themselves apart from competitors and meeting the evolving needs of its clients.

Conclusion

Building a client-centric Fractional CFO practice requires a commitment to understanding your clients’ needs, personalizing your services, enhancing communication, and continuously refining your offerings. By focusing on client satisfaction and retention, you can build strong, long-lasting relationships that drive the success of your practice.

If you’re looking to take your Fractional CFO practice to the next level by offering a system your clients can easily understand and act upon, apply to become a Profit First Professional. Let’s explore how you can make a difference in your clients’ financial success while building a successful, client-centric practice.

Call me Pollyanna, but I like to look for the bright side in all things. And one of the best things about the current capacity issue in the accounting industry is that it’s encouraging us to collaborate with our fellow financial services professionals.

Buh-bye, competition

Maybe you’ve always been of the “there’s plenty of business for everyone” persuasion. But now more than ever before, it’s actually true.

There aren’t enough accounting professionals to serve the business owners who need us.

Of course, that doesn’t mean that every accounting or bookkeeping firm will be successful. There are a variety of factors that can make or break a firm.

Right now, though, lack of work is not one of those factors. In fact, the opposite problem exists.

Too much work can spell death for a firm. And because it’s not in an accountant’s DNA to turn away prospects who need our help, many of us end up with too much work.

So how do we solve this problem?

Collaborate to increase capacity

There’s no such thing as a bad client, but there are clients who aren’t a great fit for your firm. When capacity is an issue, knowing who you serve and serving them well is crucial.

But what do we do about our prospects who aren’t a great fit?

What do we do about our existing clients who are no longer a great fit?

If you’ve read this far, you know my answer is going to be to collaborate with another professional, or several other professionals. This collaboration could be a traditional referral partnership, or you could collaborate with others to take a fractional approach where each of you has a portion of the client relationship.

Whichever method you choose, you want to make sure you are choosing the right collaborators. And that’s where Profit First Professionals comes in.

Community for collaboration

Profit First Professionals is a membership organization of elite accountants, bookkeepers, and other financial professionals. Here, you will find a community of forward-thinking firm owners who work together to make their businesses stronger by helping their clients make their businesses stronger.

I’m not such a Pollyanna that I’ll say there’s no competition among our ranks, but I will say the minimal competition that does exist is friendly and not based on scarcity. And our “no dicks allowed” immutable law means you don’t have to worry about your collaboration partner(s) “poaching” your clients.

If you want to offer a highly sought-after advisory service, learn from other firm owners who want nothing more than to celebrate your successes with you, and solve your firm’s capacity issue through collaborating with other elite accounting professionals, then apply to be a Profit First Professional.

Are you tired of hearing about the “talent drought” in the accounting industry yet? I know I am. Are accountants retiring at a faster rate than before? Are there fewer young people graduating with accounting degrees? Yes, and yes.

Is this happening in nearly every other industry in the US? Also, yes.

Does this mean you are doomed to recruiting headaches and staff retention issues?

Nope! Absolutely not.

Is your group/mastermind/business coach filling you with wrong information?

Everyone has an opinion about why people no longer want to be accountants. And those same people have opinions about how to fix it.

They tell us to develop a Mission, a Vision, and a Plan.

To Find your Why.

Of course, the people saying this also want to sell you something. Namely, coaching services or membership into their mastermind program.

Call it your Why. Call it MVP. Call it whatever you want, if your mastermind group or business coach is telling you to find it or create it but NOT telling you how to fund it, they are selling you a pipe dream.

This is how you resolve the talent drought

People don’t want to work for a firm. They don’t want to work for a business. And – sorry – they don’t really care that much about your MVP or your “Why.”

They also don’t work only for the salary. Sure, they want a great paycheck, but if they’re miserable, they will never stay.

People want to be part of a culture. And culture comes with a price tag.

You must have a plan to fund a culture top-notch employees want to work in. Otherwise, your firm is going to be just as susceptible to the talent drought as the tax sweatshop down the street.

What you should be funding

True, salary is important, but that is only one very small part of the culture equation. Here’s what your coach or mastermind group should be teaching you:

• How to design your pricing with your company culture in mind. If you don’t nail this, you’re setting yourself up to lie to your employees and prospects. Unintentionally, of course.
• How to provide your staff with annual salary increases of 10%.
• How to offer 8 weeks of paid vacation time to employees, every year.
• How to have “summer hours” all year round.
• How to create a plan to give to charity. Not just the ones you support, but the ones that matter to your team.
• How to pay for FUN quarterly staff events.
• How to gift services (house cleaning, pet sitting, lawncare, etc.) to employees experiencing a hardship.
• How to fund the expansion of your business, be it technology upgrades, new hires to maintain a healthy work/life balance for your team, or something else.
• How to have a FAMILY-FIRST environment…and really mean it.

Solving your talent shortage, once and for all

We teach our Profit First Professionals members how to fund all of the above, and more. This “how to” is included in all three of our membership levels.

Interested? Then click here to apply now.

Once you have dialed this in, you will never have a hard time recruiting or retaining top-notch talent again.

Unless you’re a jerk…and that’s not something we can help you with.

Friends, today I come to you with a plea.

Don’t join Profit First Professionals.

This elite membership organization for accountants, bookkeepers, and business coaches is not for everyone. I’d go so far as to say it’s probably not for you.

How do I know?

Your attributes

Forgive me for being so bold, but I kind of feel like I know you. Or, at least, I know some of your key attributes.

How? Because I, too, am a member of the accounting profession and have been for (mumble) years.

We’re alike, you and me.

Here’s why Profit First Professionals is not a fit for your firm:

1. You’re getting paid well for the value and impact you provide. You don’t want to earn – or keep – more money for the work you do. You don’t need to. Your retirement is fully funded, your kids’ college tuition is paid for, and you’ve made all the investments into property you care to make. Plus, you take numerous weeks of vacation each year, and so you’re not looking to earn more money while working fewer stressful hours.
2. Your CLIENTS are doing just as well as you are. Not only are they doing well, but you have a plan in place to make sure each client is successful and consistently profitable. And your clients rave about you for it.
3. You are the go-to authority on profitability in your niche. On top of that, you have a waiting list of top-tier businesses who are praying for an opening in your client roster.
4. You get regular guidance from an expert who helps you increase your profitability. Again, not that you want, or need, it (see #1), but you have regular conversations with a coach who has your firm’s best interests in mind. Heck, they want you to succeed MORE than you want to!
5. You’re not a fan of resources. Besides, you already have a full library of resources that help you set up processes, sell advisory services, and brand yourself in a way that makes you stand out from the competition. Plus, you know how to use them because that coach in #4 helps you brainstorm that, too.
6. You have more than enough people to talk to about business “stuff.” And you sure don’t want to talk to other people who are doing what you aspire to and are willing to share their best practices with you.
7. You’ve learned everything you ever wanted to learn. About business. About personal development. About profitability. Nah…you’re all good here, too.

Seriously, though…

Don’t click here to apply for Profit First Professionals membership. You don’t need it.

I know I didn’t need it to create what is now a second-generation bookkeeping firm. Nope…membership didn’t help me at all. 😉

There’s no question that the accounting industry is facing greater challenges than ever before (and, yes, we do remember the Enron scandal). We are in the eye of a perfect storm composed of three “pressure systems”:

• The increased push to implement client advisory services (CAS) in answer to the continued automation of compliance work
• A record number of accountants retiring as fewer students are graduating with accounting degrees
• Clients asking for price reductions, scaling back, or canceling engagements altogether as they tighten their belts to weather the tail end of the latest economic downturn.

Blame the industry?

It’s tempting – and easy – to throw up our hands and blame “the industry.” For decades – possibly forever – “the industry” has allowed itself to be undervalued, underpaid, have no boundaries with clients, and basically operate from a fear-based mentality.

Here’s the thing:

You are the industry.

Life lessons

What do you do when there’s a problem in your life that you have caused? Do you sit around, blame yourself, and wait for someone else to fix the problem?

Of course not! You get off the sofa and go to work to fix it!

If you need to fix your life, you fix the problems you’ve created.

And if you want to fix the industry that provides your livelihood – and the livelihoods of your staff – then you must start by fixing your firm.

Fixing your firm

So, how do you address the three “pressure systems” threatening to sink the industry? How can you find the time or energy to offer advisory services when you can barely keep your office staffed because the few qualified employees out there want more money than your clients are willing to pay for services?

Let’s chunk that down piece by piece:

1. Offering advisory services. Spoiler alert: You already offer advisory services. If you meet with your clients regularly, you offer advisory services. If you tell your clients to open a savings account for taxes, you offer advisory services. If you make software suggestions, you offer advisory services.

   In short, “finding the time/energy to offer advisory services” is a non-existent problem. You already do it. And if you don’t believe me, download our Client Advisory Services Roadmap and take the quiz to get your CAS score.

2. Keeping your office staffed. We’re not here to pretend there isn’t a talent drought in the accounting industry. There is.

   Wanna know a secret, though? There’s a talent drought in almost every single industry in the US.

   Baby boomers are retiring. Birth rates have been declining for decades. In short, there are fewer workers to do the work that needs to be done.

   AI doesn’t look like such a scary enemy now, does it?

   But AI can’t do everything. You’re still going to need people, especially for your client advisory services.

   Those people, though? They don’t need to have accounting degrees, and we’re not the only ones who think this.

   The few folks who are graduating with accounting degrees might want more money than you are currently willing to pay, and good for them for leveraging the laws of supply and demand. Focus on your client advisory services instead, and hire people with good communication skills. Then, use the revenue generated from your CAS offerings to hire that accounting grad or licensed CPA…if you still need them.

3. Getting clients to pay for services. This is the hardest of the three pressure systems to overcome because it requires outstanding sales skills. Something our profession lacks.

   We couldn’t even type that with a straight face.

   Getting clients to pay for your services is NOT HARD, and it DOES NOT require you to be a sales ninja. You just have to help your clients see you as an investment instead of an expense.

   Do this now:

   1. Pick a client.
   2. Pull up that client’s P&L or Expenses By Vendor Summary or any other report that shows a detailed listing of their expenses.
   3. Highlight duplicated services, excessive office supply spending, and other waste. Spoiler alert: You’re probably going to find that 10-25% of this client’s expenses are not necessary.
   4. d. Add everything up, email the client, and ask them if they want to schedule a call with you to discuss how they can save $XXX (or possibly $X,XXX) per month.

   Boom. In less than 10 minutes, you’ve shown your client how to pay for your services.

   (By the way, we teach our Profit First Professionals how to leverage this technique along with an ROI calculation to get clients to say yes to high-value advisory services.)

Fixing the industry

When enough individual firms change, the industry will follow. It’s inevitable. As we said earlier, you are the industry.

Wanna move things along faster? Cool…here are a few action steps for you:

1. Complete steps 1-3 above. Don’t wait for the end of busy season or to have a full day to work on it. Invest 30 minutes and do it now.
2. Measure and let us know your results.
3. Start telling your colleagues what you’ve done. Share your successes with them. Some of them will want to follow. You’ll create a snowball that will become an avalanche.
4. Apply to become a Profit First Professional. Yeah, we’re biased, but we believe the power and simplicity of Profit First and a Profit First Professionals membership is a keystone to changing the face of the accounting industry and small business.

Be the change you want to see. Fix your firm. Fix the accounting industry.

All the industry experts agree: implementing client advisory services (CAS) is critical to the ongoing growth and profitability of your firm. CAS not only adds revenue and profitability to your firm, but it is also a “sticky factor” that makes it difficult for your clients to compare you to your competition. Plus, with automation and AI becoming more prevalent by the day, higher-level CAS offerings differentiate you from the claims made by overly ambitious software companies.

It makes even more sense for tax-heavy firms with a high level of seasonality to offer CAS. This type of firm has historically relied on part-time or seasonal labor during the busy season, which can be difficult to count on year after year. Offering CAS can help you keep your top-tier seasonal team engaged year-round, reducing the risk of them not being available when you need them for the next busy season.

There’s an elephant in this room, though.

It’s easy enough to implement and deliver CAS during the “off season.” But what happens during the “busy season”? How do you manage your commitments to your CAS clients while processing tax returns for your compliance clients?

Do you have to choose to be a “CAS firm” vs. a “tax firm”? Should you put CAS on hold until after tax season?

Can you have the best of both worlds and finish the busy season with your sanity intact?

Reality check

As much as we might wish it to be different, tax-heavy accounting firms have a “busy” season and a “slow” season. Some firm owners embrace this seasonality and strategically design their firms so the revenue earned – and the hours worked – during the first few months of the year sustain them until the next busy season. There’s a certain allure to working all-out for four months and then having the rest of the year more or less “off.”

Not every firm owner wants this model or can sustain it long-term, though. Most firm owners supplement the busy season with other streams of revenue. Historically, bookkeeping services have helped these firms bridge the gap between busy seasons. But – unfair though it is – bookkeeping has faced increasing downward pressure in terms of pricing and perceived value by clients. Bookkeeping-centric firms have addressed this downward pressure by introducing CAS. And although tax-heavy accounting firms can – and should – consider offering CAS as well, these firms seem to be at a disadvantage.

The tax firm disadvantage?

Most bookkeeping services are not critically deadline-driven. Yes, you might have made a commitment to your client to deliver financial statements by the 15th of the month, and payroll is always on a schedule, but missed deadlines don’t typically result in exorbitant penalties that cannot be abated.

Tax services are different, though. With the exception of filing extensions – which, when used incorrectly, only extend the pain of the busy season – there isn’t much relief for the deadline-driven nature of a tax-centric firm. You must complete all the returns in a short period of time, or your client faces interest and penalties, which – chances are – your firm will have to cover.

So, while a bookkeeping-centric firm can easily manage deadlines while still fulfilling their commitments to their CAS clients, tax-focused firms are faced with the double-whammy dilemma of a high volume of work that must be completed in a short period of time. This can make it seem difficult – if not impossible – to offer CAS in your tax-heavy firm.

What’s the solution?

Do you put CAS on hold during tax season? That’s not fair to your CAS clients, and chances are they aren’t going to want to pay you for the months you aren’t working with them.

Do you stop offering tax services altogether and focus on CAS? You could, but that’s like throwing out the baby with the bathwater, especially if your firm is known for tax work.

Do you work more hours during tax season to serve both your tax clients and your CAS clients? I don’t know you, and I know nothing about your firm, and I can still tell you that’s not sustainable.

Do you hire more employees to serve everyone? Oh goodness, where do we even start with the pitfalls of this one?

So, how do you overcome the tax firm disadvantage? How can you offer CAS and still deliver tax services?

Both/and instead of either/or

The financial professional’s ability to see things in black and white is both a blessing and a curse. It’s a blessing in that we can be confident that 1 + 1 will always equal 2, a bank account can always be reconciled, and we can bring certainty to our own little corner of the world.

It’s a curse in that it often blinds us to opportunities.

There’s an easy answer to the question of how to offer CAS in a tax-heavy firm, and it’s this:

Tax work is CAS work.

Now, I’m not saying that you can plug numbers into your tax software, print a return, and say you offer CAS. But what you can do – what you should do – is make CAS an integral part of your tax preparation process.

You accomplish this by remaining mindful of your clients’ needs, especially in the throes of tax season.

For example, you notice your client owes $12,000 in taxes. You take another look at their return and find $1,500 in credits (this is CAS). Then you run a quick calculation and see that they would have saved $1,000 had they made an S-corp election, so you make a note to schedule a call with the client to discuss this (also CAS). You notice they only have $7,000 in their bank account to pay the $10,500 tax liability, so you add a note to talk to them about a tax savings account (again, CAS…and, ahem, Profit First).

Notice that you haven’t added much work to your plate. Yes, you’ve taken another look at the return to find additional savings, and you’ve made some notes of things to talk to your client about, but these steps are part of your process, anyway. You’ve just become more mindful of your client.

And that’s CAS.

It doesn’t have to be complicated to be impactful

Too often, we think we must put in hours of work in order to justify calling ourselves advisors. But the truth is, you can offer CAS to your clients, even during the busiest time of the year, with minimal impact to your workload.

Profit First is an excellent way to offer CAS in a way that is impactful without adding hours to your schedule. Profit First Professionals leverage a system that requires little time commitment on the part of the advisor, while helping the client achieve phenomenal results. And these results help you add revenue to your top line and profit to your bottom line.

Even though it’s the busy season, I hope you’ll apply now to start your Profit First Professionals journey. You could have CAS up and running in your tax-focused firm before the start of the filing season.

Have you ever played the game “Tap Away”? I recently started playing it on my iPad and it just struck me how much it reminded me of running a business.

Just stay with me for a moment.

The point of the game is to clear away blocks. Simple enough, right? Well, each block can only move in one direction and can only move when it can be cleared away (it can’t move just one place). In theory, running a business is also pretty simple, right? We simply need clients who will pay us money for our services or products.

The beginning of Tap Away is easy because there are many options to move the blocks. Same with our business when we first start out. We have a lot of ‘things’ to do so we see progress quickly. We don’t have to be as strategic. We can be a little more random in our actions. But soon, all of the easy blocks have been moved, and all of the easy tasks are completed.

One of the key strategies in the game is to keep rotating the board around to look at it from various angles. A block might look like it’s not able to be moved when looking from one perspective and it can look different from another perspective. Same with our business. There is a challenge that we think can’t be solved, until we shift our perspective and suddenly the option is clear.

As we continue to play Tap Away, the board keeps changing as we clear away blocks. Same with our business, we have to keep assessing where our opportunities are and what might be blocking our access.

I haven’t mentioned the leaderboard yet. As we clear away blocks, we keep moving up the leaderboard, then we level up. When we level up, we essentially start at the bottom of that level’s leaderboard. We do the same thing in our business. As we cross milestones (number of clients, MRR, Revenue) we keep leveling up our business.

The moment we set the game down, get comfortable, and maybe hit a level we are happy with, that is the moment we slide down the leaderboard. There will always be someone else playing the game. We often get comfortable in our business and settle in for a minute. Then we lose a client. And then we realize that because we haven’t been working our systems, we no longer have a steady stream of leads coming in. And the panic begins.

So, what’s the lesson here? We must keep working ON our business, not just IN our business.

Taking a break and a moment to celebrate is important, we know this. But strategically building time to change perspectives and see things from different sides is crucial to your overall success on our own leaderboard.

If you’re ready to level up your business, click here for an introduction to a Certified Profit First Professional. Or, if you’re an accountant, bookkeeper, or coach looking to get to the top of the leaderboard, click here to apply to become a Profit First Professional. See you on the playing field!

There’s a common misconception that Profit First emphasizes expense reduction to the point that businesses are forced to run on “leftovers.” Yes, an expense analysis is one of the first things a Profit First Professional will do when implementing the program with a new client. And, yes, we do put a large amount of emphasis on reducing unnecessary or redundant expenses.

But not all expenses are created equal. In fact, there are certain expenses that – if cut – can actually cost your business money.

When you approach expense reduction as a “slash and burn” endeavor, you run the risk of harming your business. Just as you should be cautious of a tax accountant who encourages you to “spend down your profit” to save money on taxes, you should be cautious of an accountant, bookkeeper, or coach who tells you to cut expenses to the bare minimum without going through the additional step of individually weighing the benefits and risks of cutting each expenditure.

So, how can you determine what expenses you should cut? It’s really pretty simple.

Cut Expenses. Keep Investments.

Let’s address the elephant in the room: Some “pure expenses” are essential to your business operations. Things like utilities, business licenses, and breakroom coffee (I said what I said) might not generate a direct return for your company, but you must maintain them in order to operate a business.

But aside from these “necessary evils,” the best way to determine whether to cut an expense is to ask yourself this question: Does this expense generate a return for my business?

If the answer is no, then you can – and should – eliminate it.

You see, even though they appear on the profit and loss statement instead of on the balance sheet (where “true” investments in the accounting sense of the word reside), some expenses are really investments in your business. These are the expenses that generate a return for your company. This return can be monetary, but it can also be in the form of efficiency.

You want to avoid eliminating investments. Eliminating an investment is the equivalent of approaching weight loss by removing muscle because it “weighs more” than fat.

A (Tricky) Example

It’s often easy to identify pure expenses. The subscription to the newsletter you intend to read “later” but rarely do. The Subscribe and Save order for rubber bands when your desk drawer is overflowing with them. That pesky $5/month for the app you keep but don’t use because the hassle of canceling hurts more than paying the $5.

But sometimes an investment can masquerade as an expense.

I was working with a professional services provider who needed to make some dramatic expense reductions (we had already addressed her pricing issues, which is a topic for a different article.) Like most business owners, she had reviewed her expenses and homed in on the largest one.

In this case, it was her virtual assistant.

“I have to cut her,” the business owner said. “If I cut out the amount I’m paying her, I’ll be more than 75% of the way to my expense reduction goal.”

“Okay, let’s discuss this. What does your VA do for you?” I asked.

Her answer? “Everything.” And she wasn’t exaggerating.

Basically, the VA handled the entire operations end of this professional services business, freeing the business owner to focus on the revenue-generating activities only she could do as a licensed professional. Without the VA, the business owner would more than double the amount of time she spent working, and by her own admission most of the essential tasks would either go undone or be done inadequately.

You see, the math worked, but the physics didn’t. The easy answer – cut out the VA – would have been detrimental to the health of the business. In fact, the cut probably would have completely sunk the business.

Rather than cut the VA altogether, we dove deeper and identified things the VA was doing “just because they had always been done.” By eliminating those tasks, we were able to keep the VA but reduce the amount she was being paid.

What about the rest of the expense reductions? We found them in seemingly insignificant increments of $10 here and $25 there. Was it a quick process? Absolutely not. Was it fun? Also no. But we got there, and when we were done, the business was running more efficiently and more profitably than ever before. The business owner didn’t even feel the “loss” of the expenses we cut. And – even though she was being paid less – the VA was happier because she was able to focus more on essential business tasks than the minutia she was burdened with before our analysis.

Proceed With Caution

Of course, the opposite scenario can also occur. You might be able to look at every expense your business incurs and justify why it’s necessary.

This is why it’s paramount to work with someone who understands your business and will take the time to analyze and challenge your assumptions about what is necessary and what isn’t. And that’s exactly what our Profit First Professionals are taught to do.

If you’re interested in working with a professional who will turn your business into a lean, mean, profit-generating machine, click here. We’ll happily introduce you to a PFP who will guide you through the expense reduction process in a way that is – if not exactly fun – at least safe for your business’s health. Investing in the services of a Profit First Professional will yield returns well beyond what you pay for their expertise.

If you’re interested in helping businesses do this sort of expense reduction, I encourage you to apply to become a Profit First Professional. This investment in your firm will garner returns well beyond increased advisory revenue. Our team will share the details during your enrollment call.

We got spoiled.

In 2020 and 2021, business owners were clamoring for help. Accountants, bookkeepers, and financial coaches were the beneficiaries, and for a moment in time, we basked in the glory of knowing business owners saw us as the trusted advisors we are.

Then the world opened back up, and things slowly returned to business as usual.

Now, with the economy still in a state of uncertainty, many business owners are cutting back on financial services. Just as we benefited from the surge in demand at the start of the pandemic, we now feel the discomfort of our prospects’ and clients’ decisions to tighten their belts. Sure, the dwindling number of accounting services professionals works in our favor to an extent, but many providers are finding it harder to retain existing clients in the high-value services we want to offer and to attract new high-paying clients.

But that doesn’t mean you should throw your hands up in defeat. In fact, there are four client attraction tactics that are bringing our Profit First Professionals members great success.

Wanna know what they are? Read on!

Tactic #1: List nurturing

Unless you started your business yesterday, you have the following lists:

1. Prospects who didn’t become clients
2. Former clients who departed on good terms
3. Current clients who aren’t fully utilizing your services

That’s three groups of people you can market to. And the best thing about these lists? The hardest part of marketing to them is already done. You’ve already gotten their attention. Now you just need to nurture them.

How?

Provide them with valuable, actionable information that (1) they can use and that (2) highlights the ways you can help them.

Don’t worry about “giving away the farm”; you aren’t going to go into their numbers and solve their specific problems. Instead, you are going to give them just enough information – in the form of targeted emails, short videos, and simple resources – to show them what is possible if they work with you.

List nurturing takes time. Don’t expect to get a new or increased engagement with the first email. Build out a sequence of 12-16 emails you can “drip” on your lists over the course of several weeks, saving your “let’s schedule a time to discuss how I can help your business with this” call to action for some point during the second week of emails.

Once this sequence has run its course, put anyone who hasn’t responded or engaged on a “keep warm” list, and send out a monthly – or even biweekly – email to them to keep you at the top of their minds.

Tactic #2: In-person networking

Those of us who are a bit more on the introverted side of the scale have been more than happy to let in-person networking fall by the wayside these past few years. However, depending on which research you choose to believe, anywhere from 50-75% of the population is extroverted…and they really, really missed in-person networking.

Love it or hate it, in-person networking is one of the fastest ways to gain trust, which we all know is a financial professional’s most important asset. Our Profit First Professionals members who are engaged in in-person networking are finding they get results quicker…usually within three months of networking with a new group. (Email marketing is usually taking at least six months to produce results, and those are the exceptional cases.) In-person networkers are also signing higher-end engagements.

Tactic #3: Talk to low-revenue prospects

One of the biggest mistakes I see financial professionals make is to base their decision to speak with a prospective client on the business’s revenue. I could write an entire article about why this is a horrible idea, but for now, let’s focus on the solution:

Do some research before rejecting the prospect.

Is this a new business?

Is the business owner an employed professional or a retiree?

Does this prospect currently own another business, or have they owned a business in the past?

You can get most of this information from LinkedIn. A “yes” to any of these questions could be an indicator that the business owner has money to invest in the business, meaning they have money to invest with you.

So, talk to (almost) EVERYONE. Sure, you’ll kiss some frogs in the process… but you’ll also likely find a prince(ss) or two.

Tactic #4: Sell your prospect what they want… not what you think they need

Back in May, marketing consultant Robin Robbins spoke with our Mastery level PFPs. She shared tons of great examples, but one in particular has stuck with me:

A business owner calls an IT company because their Wi-Fi is out. The IT company launches into a sales pitch for their managed services program. The business owner isn’t interested in managed services… they just want their Wi-Fi fixed. The IT company doesn’t do break/fix work, so they send the business owner to another provider who does. A few months later, the first IT company discovers the business owner who called them is now on a managed services program with the other provider.

What the heck happened?

It’s pretty easy to see from this side of the example: The second provider sold the prospect what they wanted – working Wi-Fi – and then used that as a steppingstone to sell additional services.

Now, think about the prospects who come to you for bookkeeping work, or a tax return, or bookkeeping work so they can file their tax return. Or maybe they just want a budget or a cash flow projection. You launch into an explanation of your packages and advisory offerings and…

The prospect just stopped listening. In fact, they’re Googling the phone number of the next financial professional on their list.

Yes, you want to protect your workflow. You definitely don’t want to go back to the “checkbook and a pulse” qualifier for a client. But don’t throw out the baby with the bathwater. If a prospective client wants to pay you to fix the problem they know they have, and you can fix that problem, fix it. Sell them what they want. Once you’re through the door, so to speak, then you can make suggestions about how you can continue working together. That’s when you can sell them what you know they need.

Bonus Tactic: Collaborate with other professionals

Remember Tactic #2? Yeah, the one you skimmed past because you really don’t like in-person networking (I see you, fellow introvert). Here’s a secret to networking that will pour rocket fuel on your client attraction efforts.

Profit First Professionals who are leveraging in-person networking aren’t only – or even primarily – networking for new clients. Instead, they are networking for and with complementary service professionals with whom they can share business. These connections are broadening their sphere of influence, providing them with referral partners who understand the sorts of clients they want to work with, and shortening the sales cycle when the introduction is made.

Suggestion #1 (good): Find a networking group – like your local chamber of commerce, or your bank’s lunch and learn series – where you can find attorneys, insurance brokers, bankers, and HR and IT professionals. Start attending this group regularly. Make connections. Build trust. Pay it forward by referring your clients who need these services.

Suggestion #2 (better): Become a Profit First Professional. Here you will find a ready-made community of complementary service providers – accountants, bookkeepers, business coaches, financial advisors, fractional CFOs – who are constantly looking for collaborative partners to help them help their clients become more profitable. Click here to make your fully-refundable deposit and schedule your enrollment call.

“Profit First isn’t necessary.”

This is one of the objections we hear most often from accountants and bookkeepers. And, as much as it pains us to say it, they are correct.

Profit First isn’t necessary… if you’re already wired to think like a financial professional. Which most business owners are not.

In fact, I’d go so far as to say many financial professionals aren’t wired to think like financial professionals. Instead, they have trained themselves to look at the world through a certain lens. This training takes years of dedicated focus and a narrowing of perspective.

This is something most business owners won’t do. In fact, it would likely be to the detriment of their business if they did.

Profit First democratizes the visibility of a business’s financial information so any business owner – regardless of how they’re “wired” – can consume and act on it.

Not everyone thinks like you.

A shortcoming of the financial services profession is the mistaken belief that everyone thinks the way we do.

Scratch that. A shortcoming of the entire human race is the mistaken belief that everyone thinks the way we do.

Because we tend to see the world from a certain perspective, and because this perspective makes sense to us, it can be hard to remember there are countless other perspectives out there. What makes perfect sense to us can be the equivalent of an alien language to the person sitting on the other end of the Zoom call.

We financial services professionals think business owners “should” learn to budget and read their financial statements and analyze and act on their KPIs because that’s what we have learned to do. In some cases, we learned to do that because the skills came naturally to us.

Pro-tip: Check yourself every time you find yourself using the word “should.”

Don’t should on your clients

The problem with the word “should” is that it implies some sort of shortcoming. There are numerous studies and articles decrying the use of the word “should.”

It’s demotivating.

It implies an obligation to do something you might not want to do.

It’s inherently negative and leads to feelings of inadequacy.

When financial services professionals say, “Profit First isn’t necessary,” what they really mean is “Profit First shouldn’t be necessary from my perspective.”

But the few who embrace Profit First and become Profit First Professionals add on to that: “but it is necessary for the business owners I serve, and so I am going to help them use this tool to run the best business they can run.”

Profit First: The Great Equalizer

I thought I’d heard all the arguments, both for and against Profit First, until a recent webinar we co-hosted with our banking partner, Relay. At the end of the webinar, one of the participants shared the following:

I haven’t seen this feedback anywhere, but this visibility set up is incredibly “safe” for neurodivergents like me. I’m AUDHD and having the immediate knowledge of where everything is makes me breathe easy. Where DEI Is a huge initiative right now, Profit First is hitting the mark by being an inclusive system.

Wow.

Not only will most business owners not train themselves to think like financial professionals, but some literally cannot train themselves to think this way.

Profit First can be structured to bring the exact level of clarity a business owner – any business owner – needs to run their business effectively. Whether it’s with three, five, or twenty bank accounts, a Profit First Professional can help their clients see their businesses through the lens that works best for the “eyes” they have.

If you’re interested in becoming a Profit First Professional and helping your clients see their businesses through the right lens for them, click here to schedule an enrollment call.