Episode 2 – Can That Lead Afford You?
Can That Lead Afford You?
We all get excited about new business leads and the possibility of the new engagement and how you can help out that business. But, don’t forget to take the time to see if that lead can actually afford you when reviewing their books. Think of it as being both an advisor to your own business and to theirs.
- When reviewing the books, look at some of the following to see if that lead can afford you:
- How much are they paying the bookkeeper prior to you?
- How much cash do they have?
- What does their balance sheet look like over time?
- Are their credit card and loan balances just increasing over time?
- Are they showing a loss on the P&L every month?
- Review the cash flow statement by month
- If there is an increase in costs, how do you explain value if there is a huge jump in cost?
- What are the different methods of getting the client to pay you to manage the risk?
- Don’t forget to manage your profitability and do what is best for your business.
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