I. Prepping the Client:
Let your clients know you are introducing a new value-added service for financial assessment and would like to ask them a few questions to direct how you will customize the performance evaluation to best suit their individual needs and concerns. Some possible questions and areas to consider include:
What financial issues most concern you—liquidity, sales growth, profitability? How many employees do you have this period? Last period?
How quickly are you collecting accounts receivable—40 days or less? How quickly are you paying your accounts payable?
When was the last time you increased prices? Are you able to pass these increases on to your customers?
The idea is to pique their interest about the possibilities of using this report and let them know how it will be useful to them. Wait at least three days to schedule an in-person meeting in order to discuss the report.
II. Discussing the Report:
Bring a color printed version of the report to your meeting with the client. Make sure you have tailored it to your client and his/her business, or at a minimum, customized it with your own logo or letterhead.
Begin by stating you have compiled a summary financial assessment that can help clarify their
financial statements and help them make their business more profitable. Then give an overall summary assessment based upon the scoring system of the report.
If sales are excellent (i.e. above average, or greater than 70): Looks like sales are growing well. Can we find better ways to utilize that revenue?
Then discuss each of the major areas covered in the report. Ask questions, using the report as the basis for your discussion. The next few items will give you some examples of how to use each section of the report effectively in your communication with your clients.
If liquidity is poor:
Do you have a plan to help generate better long-term profits? Do you need help in creating one?
How are you funding your short-term liquidity problems?
How is your relationship with your banker? Could I introduce you to mine?
If liquidity is excellent:
Are there better ways of using excess funds? Investment opportunities?
Profits and Profit Margins
What are their goals?
Is your goal high profits or growing your business rapidly?
How can we increase profits—through significant growth or cost cutting?
What are their goals?
Is your goal rapid growth or moderate controlled growth? Could I introduce you to my other clients who may be potential customers?
I know of other businesses similar to yours that have been very successful in this area. Would you like me to introduce you?
Areas to consider:
What is your feeling towards debt? Would you consider yourself debt averse or do you view debt as a way to leverage growth?
Are your cost of funds and interest rates lower than your return on assets? How is your relationship with your banker? Could I introduce you to mine?
Ideas about buying new assets:
What will the return be on your investment? What are your target returns for your major assets?
Can I help you assess the profitability of your major assets—should you divest? Sell some? Expand a current line?
Attitude towards employees:
What is your target return on investment when hiring someone new? Can I help you with the hiring process?
Do you consider temps or only full-time employees? Why?
Please remember that there is little value in the reports themselves. The value comes from the knowledge that you possess and your ability to provide high quality work for your client. This is done by presenting and packaging everything for them in an easy to read format that the client can understand. Also, our reports will allow you to ask the right questions. This will give the client a perception of value and leave them with a good feeling that you are making efforts to understand their business. Keep these tips in mind while using Sageworks and you will be on your way to a successful partnership with our suite of applications. For more information on presentation tips please contact customer support at 866-603-7029 option 1.