This is a written topic, there is no video.
If you meet with a prospective client to discuss your tax and compliance service offering it is perfectly acceptable to attempt to close the sale at the initial meeting.
This is because the prospect is purchasing a known service, and the purchase price is relatively inexpensive.
Selling business advisory services is different. You are asking the client to make a substantial investment where the service is unknown and the outcomes are not certain.
If you reduce the risk you increase the likelihood of client commitment.
I am confident the profit improvement strategies you can offer to clients will produce far more profit then the fee they pay. You need to develop the same level of confidence.
However, as we have limited control over our clients implementing the strategies we recommend, or the timing of any implementation, we cannot guarantee the client will achieve profit improvement.
But there is another way to reduce the risk associated with committing to a significant service fee. This can be achieved by bringing our prospect to the position where they hold the same level of confidence in the profit improvement strategies as we do.
I have devised a system to achieve this, refer to the next topic for details.
And with this system in place you can close your presentation meetings as follows:
We know small improvements in each of these key areas produce significant increases in profitability. As to where we start, and the extent of the work we do will depend on several things, including your current position, and your appetite for change.
It is too early to make a judgement about this, and too early for you to make a judgement as to whether you can commit to the process.
Our experience is the best way forward is for you to sample our services before making a judgement as to their suitability to your circumstances.
We are confident if you choose to work with us, we can help you increase the profitability of the business. Rather than take our word for it we would prefer you to make your own assessment.
To this end, we invite selected business owners to engage us for an initial project, our fee for this project will be $5,000. At the conclusion of the project you will have a documented plan outlining specific actions, when implemented, will produce a lift in profitability and cash flow.
If you are in any way dissatisfied with the outcome of this initial work there will be no charge. Simply let us know within 14 days of the project completion.
The cost of providing this guarantee is your labour cost on $5,000 work, say $1,500. And the potential lifetime value of the client we looked at in an early topic was between $75,000 and $100,000.
In the next topic, I outline what work you need to do with the client in the initial project, and in topic 7 I discuss aspects of the guarantee, including how it works to reduce your risk associated with the success of the advisory project, as well as the risk faced by your client.