HOW WE MAKE SURE OUR FEES ARE AFFORDABLE
Updated: Jul 28, 2021
Pricing Pillar 5: Benchmarked Vs Your Sales
We want to make sure that the fee we’re charging you is:
Affordable from day one – on one hand
You’re investing enough in your business’s financial wellbeing – on the other hand
Let’s explore those in a bit more detail….
Affordable from day one
We want to make sure that the fee we’re proposing to charge you is not going to wipe out all of your hard-earned profits, and send you below the poverty line.
We want you to have enough cash left in the pot for you to pay yourself a decent amount, and make sure that you’re able to live your MVL (minimum viable lifestyle).
We don’t ask for huge investments up front that only pay off months and years down the line.
We make sure you’re investing enough into your business
We want to make sure you’re investing the right amount into your business’s financial wellbeing.
By investing the right amount we can provide you with all of the services you need on your journey.
Underinvesting means we wouldn’t be able to provide you with the level of help & support you need, and your business would not be able to fulfil its potential.
We aim to charge you a fee that lands between 2% and 4% of your annual sales
After we’ve produced the first draft of your proposal, we benchmark the fee against your current or expected level of sales.
We typically aim for our fee to land between 2% and 4% of your annual sales.
This is because in our experience…
If you’re spending over 4% of your annual sales on your finance team – it might not be affordable for you. We’d look more closely at how profitable the businesses is, to check that it’s not going to wipe out too much of your personal income
If you’re spending under 2% of your annual sales on your finance team, you’re probably under-investing. You could get better results by increasing your investment.
Where you land on the scale depends now quickly you want to move, and how much work you want to do yourself
The difference between 2% and 4% still presents quite a wide range for the fee to land between. One is double the other after all.
How do we decide where on the scale is the right balance for you?
You would typically be towards the 2% end of the scale if:
Your business has been operating for a number of years
You are close to reaching your overall vision
The time it takes you achieve your vision is less important
You have a small team
You are happy to do some of the financial work yourself, and have us do less
You have no plans to sell your business
And you’d be at the 4% end of the scale if the opposite was true:
You’re a new or recently formed business
You’ve got a way easy to go to realise your vision
Your timeframe for achieving it is shorter
You have a large team
You want us to handle all of the financial work so that you’re free to work on running and growing the other parts of your business
You have plans to sell your business in the future