The True Value of a Small Business Client
Have you ever stopped to consider the overall value of a single monthly business client? I have, and when you look at this closely you start to get a sense of the tremendous value NCI can bring to your new or established accounting practice. In order to do this you have to start with assumptions based on experience. We know from working with thousands of accounting firms what to expect as far as average fees, additional billings and life span of a typical client. Here are the assumptions we’ll use in conducting this little exercise: Average monthly fee: $250.00 Average year-end business tax preparation: $600 Average year-end personal tax preparation: $275 Average life span of a client: 10 years Installation fee per client: $300 (paid once)
The total value for the client over 10 years is $39,050. If this one client refers you only one client during their 10 year life span, a very likely outcome, you double that value and reach a total of $78,100 from that initial small business client. That puts small business clients in a whole new light.
Now let’s assume NCI can show you how to obtain only 30 of these business clients over a one year period. That represents $1,171,500 in value to your business over the next 10 years. If you were to reach the projected growth for our Plan 2 Client Acquisition Program at the end of one year, 80 clients, the 10 year value on them is $3,124,000.
Too often we hear about the negatives some people assign to the small business client. When you break down the long term value of these loyal clients, things don’t look quite so small over the long run. Call us at 1-888-639-2543 to discuss how we can help you build a lot of value in your practice through the small business market, a market that makes up over 80% of the entire business marketplace.