The widely quoted accountant guru messages to small / medium practices are to:
Drop every client that can’t pay £500+ pm
- Specialise partner roles in the practice by matching (eg*DISC) personality types so that:
- Highest S leads client service delivery - focused on fabulous service levels
- Highest I leads marketing - focused on finding new clients able and willing to pay at least £500+ pm
- Highest C leads practice finance / admin / HR / tech - focused on cashflow, profits, efficiency, reporting, processes & systems, skills
- Highest D leads the practice - focused on performance management and diversification.
3. Which will build a high value practice that gives you a great lifestyle and wealthy exit
So, is it possible to make a profit from very small (rejected) clients, as well or is that it?
We suggest you can and that isn’t ‘it’.
Using AI, you can now take on the smallest of businesses, profitably whilst spotting and building your future winners.
No more loss-leading.
Can you really make a profit on clients paying £50 pm?
Yes, because Runagood® AI has compressed consulting time by 90%
Consider this: There’s 5.5m small businesses out there, 3.7 million of which are self-employed, mostly working from home. A market that most accountants have abandoned because it conventionally isn't profitable. And the potential clients have colluded in that by doing their own accounting, using online technology.
They see accountants as a compliance service, not providing business advice, on which, they are spending at least £2000 per annum.
And that money isn’t going to accountants. If it were, the average practice (out of 22,000) would have an extra £350K of revenue each year. But the cost of servicing it would be prohibitive under present structures.
Unless, of course, you could replace time-based consultancy with AI, in which case, at even £50 per month a client using the AI themselves still makes you at least 50% net profit for the practice. Not a fortune, but fertile ground for travelling upwards with and retaining the winners of, the future.
By simply monitoring client performance online for a few minutes monthly the accountant can intervene from that level to upsell the next monthly subscription at the right moment, providing further services, step-by-step and profitably.
This is the future.
Contact us today to learn more