Shannon Vincent
November 21, 2022
min read

We have been in a lot of conversations about pricing, pruning and business model.

Several take aways:

Most people aim at nothing and hit it with amazing accuracy. Begin with the end in mind. Eg. what do you want your business model and pareto to look like in in 3 years.

Have clarity about what you want, what you don’t want and why you are making the changes you are making.

The fewer clients you have the less email, calls, information you will have eg. more sanity

F Clients.  Friends and family.  Wow firms have a lot more than they expect..  One firm we met with last week had 30.. 40 hours worth of tax season work. Ouch. Our suggestion is 5 or less.

Beware of the Danger Zone.  Firms don’t want to lose revenue.. so they create services for clients that don’t fit their model and no one wins. 

Be mindful of the incremental steps and next steps in upgrading your client base.

Pay attention to the numbers.  MRR (Target 75%  MRR is a leading indicator!), Revenue per Professional (Target is $250K), Labor as a % of Revenue (Target 30%), Average Price Per Client (Depends on firm model yet we like 10K),  Average Charge Rate (Target $200)

Lots of trading dollars happening. Eg. keeping revenue to pay for under-performing team members.  Reminder:  Revenue is vanity and Profit is Sanity.

Identify your friction points.

Dictate the Terms of the Client relationship.  Service providers allow clients to dictate terms.

Remember, each firm runs its own race.

Happy Thanksgiving!

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