As an accountant, financial coach or outsourced CFO, offering advisory services is the key to uplevelling your practice. However, there are a lot of misconceptions out there that scare many practice owners away from offering advisory services. Today, I’m going to debunk these myths and set the record straight when it comes to advisory.
Myth #1 – You Need Expensive Technology
The reason I advise my clients to offer advisory is because you get to keep more of the money you make, and this is partly because you don’t need to fork out for expensive technology.
Traditional accounting businesses rely heavily on client and team management software to serve hundreds, or even thousands, of clients at once. Such technology is not necessary when you offer advisory services.
Technology can be a supportive tool but your practice is ultimately built around you and your particular expertise. It’s about asking questions, analysing the numbers and delivering results.
Myth #2 – You Don’t Have the Skills or Experience
Wrong! If you’re a qualified accountant, bookkeeper or outsourced CFO then you already have skills and experience that will prove enormously valuable to your clients. Your guidance will allow your clients to achieve results far more quickly than they could on their own, and thus you are most definitely qualified to offer advisory.
The only real requirement for offering advisory is knowing more than your client does. In fact, I’ve noticed that many so-called experts out there only know 3% more than the clients they advise. It’s a huge knowledge gap. You don’t need to know more than every single one of your peers, because they’re not the ones paying for your services.
Don’t get me wrong: I don’t condone winging it. But as an accountant or bookkeeper, you have knowledge and expertise that you could be using to transform your clients businesses right now. Believing in your own value will allow you to make a bigger impact.
Myth #3 – You Need to Be an Extrovert
This one really gets my goat. I’m very much an introvert myself, and yet I have still created a lucrative freedom practice by offering advisory to clients from all over the world. I show up via live video four times a week and I speak at conferences. Yet I am not the extrovert everyone assumes that I am.
The truth is that a quiet leader who listens and analyses can offer more value to a business than an extrovert who shouts loudly, but provides little insight.
Of course, I’m not saying that extroverts cannot be effective advisors either. But listening skills and effective guidance are far more important than a forceful personality.
Myth #4 – It’s Not Worth Offering Advisory If I Have a Small Practice
This couldn’t be further from the truth! Whatever the size of your practice, offering advisory services will allow you to uplevel by decreasing your costs and time spent working, whilst increasing your turnover. This results in far more attractive profit margins and more time to invest in practice growth via sales and marketing.
Myth # 5 – Advisory is Still Time for Money
Whilst it’s true that advisory can be time for money, offering leveraged advisory services permits exponential growth. By packaging up your knowledge and expertise into a new service offering, you can create residual income and scale up without spending every waking hour working with clients.
Examples of leveraged advisory include:
- Group question-and-answer sessions with clients
- Mastermind programs
- Video libraries
Advisory is the key to building a freedom practice that allows you to earn more and work less. One of the reasons advisory services are so lucrative is because you don’t need expensive technology in order to advise your clients. Your advisory services are built around your particular expertise and technology is simply there for support; it’s not the main event. Furthermore, by offering leveraged advisory services you can scale up your earnings without working longer and longer hours.
As an accountant, bookkeeper or outsourced CFO, you already have the skills and expertise necessary to deliver results for your clients. Don’t let the myth that you need to know more, shout louder or own a bigger practice than everyone else stop you from offering your valuable advisory services to your clients. Believe in yourself and focus on delivering results.