My dad has his own accounting firm. Recently, we were discussion options for expansion when I suggested adding services geared towards small business owners. His response was quite a surprise to me: except for the bare necessities geared towards taxes, most small business owners don’t really use accounting services. What? To me it seems strange… how can you be successful in business without keeping a keen eye on managing expenses, cash flow, etc.?
But what about you? Are you stuck in a sphere where your clients only use your services for the bare minimum or call you when there is trouble? Don’t you think it would make more sense for both you and your client if he just had you on retainer? Essentially, you’d become what John Warrillow calls a “Managed Service Provider”or (MSP).
As a MSP you will offer a standard set of services to your clients. Warrillow acknowledges that that difficulty in this arrangement will be “persuading customers who have had the luxury of calling only when they had a problem to commit to an ongoing relationship focused on a standard set of services.” But to help you in your efforts, Warrillow has provided 5 Benefits that you can use when pitching your clients.
1. You are Now A Specialist (Which is Better Than a Generalists)
Unlike a generalist (who provides customized solutions for each client), because you are repeatedly providing a standard set of services, you are now a specialist. As a result, you are more competent and efficient.
2. Faster Access To Service Provider
By eschewing a litany of services, as a MSP, your decision to offer only a standard set of services on contract means your customers gets access to a service provider much faster.
3. Problems Resolved Much Quicker
Again, because you are now a specialist in the service you do offer, your customer’s problems will be resolved much quicker than before.
4. Your Clients Get The Benefits From Economies of Scale
As a specialist, you will probably be able to buy the raw materials you need at better prices because of economies of scale. You will be able to pass on the savings to your clients.
5. You Fix Your Client’s Issues Before They Become A Real Problem
Because you have a long term relationship with your clients, you have intimate details of their particular issues. As such, you are better able to proactively act to resolve them before they become major problems that can impede your clients’ business.
Now that we’ve gone over the benefits that you can pitch to your clients, remember that your goal here is to get them to sign a long-term service agreement. Yes, you will have to put together a contract because the longer and closer you work with someone, the probability for dispute increases and you want to protect yourself legally (just in case you are sued). If you review our Contracts Cheat Sheet, you will see that we have provided you with a link to a number of free contract templates. However, I cannot stress enough the need to have a lawyer review any agreement you decide to use long term. Some of you may be able to take advantage of the free attorneys in your area. If not, I highly suggest you use some of the low-cost options available from online legal service providers.
