Back Office Advisor Blog

As I work with my existing clients, I have found many recurring themes. One of them is the definintion (or lack thereof) of the services they are giong to provide.  Not having a clear definition of these services can get you in trouble quickly.  Let me explain.

You get a new client and of course, you want to do the best job possible. So, in addition to the services you would normally provide, you start doing all kinds of extras - running spreadsheets, analyzing documents, etc. - services that are outside the normal range of offerings.  Now what happens?  You’ve just set the bar to a new level and not only will this client continue to expect this service level but any referrals they bring you will as well.  Now all of the sudden, you can service less clients because of the increased time it’s taking you and my guess is, you are not charging them additional fees.

Sit down and define your services carefully and then stick to it.  If a client needs extra work, make sure they understand there will be additional fees for this work.  It’s okay to perform additional work as long as you are charging appropriately for it.  If you charge appropriately for it, you can hire someone to assist you and still maintain a healthy profit margin.