## removing the friction of the non-ideal client a non-ideal client will wreck team culture, processes, technology ### ideal clients - are focused on value (i.e, outcomes) → increases pricing power - are you going to be *value* or *utility*? - increase practice efficiencies → increasing profit margins - because they *use* your tech, send docs where you ask, etc. - contribute to a positive practice cultures → increasing team productivity and team member retention. - have longer lifetime value (they stick around more) → increase practice valuation and profitability - you inherit the *fail rate* of businesses who may not be prepared to work with you. - respect your boundaries → preserving profit margins - you are working at the pace that *you* design - have greater upsell and cross-sell potential → increasing revenue ### key questions - are you achieving at least a 66% gross profit margin? - if not, will the client accept a price that will achieve this margin? - does the client account justify at least your target minimum price per cycle? - should be *at least* $1,500. - does the client need controllership, fp&a, or fractional cfo? - is the production / payment cycle one month or less? - i.e, if you have quarterly bookkeeping work, they’re too small for you. - if a prospect, does the business need your services of a period of at least two more years? - if a current client, does the relationship indicate significant, entrenched scope creep? is this correctable? - does the client align with my practice’s industry niche? - does the client’s back office operations and reporting fit my systems and processes? - is the client willing to work with our processes and technology? - how large is the client? - ideal range of $1-10 million - ideal employee count of 10+ - gives you greater potential for upsells. - **does the client pass the “wince test”?** - how do you *feel* when an email, etc. pops up?