A few days back I watched Accounting Web’s video on YouTube talking about having a few high value fee clients instead of many low fee ones. For those who have not got round to watching the video here it is:
I think it is a high risk strategy. Just think, having 15 or so high value clients generating an average fee of £10k. Now think of the impact of one of these clients leaving for whatever reason. The impact on the practice income would be significant. Now lets think of say 150 clients with an average of £1,200 and one of them departs. Do you see what I mean?
I believe in lots of clients with simple work that do not require a high skill level. This means that the work can easily be delegated and I would continue to build my business, looking for clients that require simple compliance work.
My experience of high fee client is they demand a lot of attention from the owner of the practice. It means the work cannot be delegated.
I found the video interesting but the high value client model is not for me.