The Client Interview

Extend a Client Interview

If a client waits several weeks to perform the client interview for the Cost Approach report, and you'd like to keep it open awhile longer, here is a quick guide for extending the 30-day limit on the interview.

The Cost Approach

The Cost Approach (AKA the Many Hats Approach) is the most common way to determine reasonable compensation. It calculates a reasonable compensation by determining what the replacement cost for each service a shareholder provides their business. Over 70% of reports ran in RCReports use this approach. This interview can be completed by you or your client.

The Cost Approach Interview

The Cost Approach is the most common way to determine reasonable compensation. It calculates a reasonable compensation by determining what the replacement cost for each service a shareholder provides their business.

The Market Approach & Interview

The Market Approach (AKA the Industry Standard Approach) compares the business owner’s compensation to the compensation of a CEO or General Operations Manager within an industry, location, number of employees, profit, and proficiency level. This approach is typically used at medium to large scale companies where the owner is primarily managing the company (not working within the company).

The Income Approach & Interview

The Income Approach (AKA the Independent Investors Approach) requires only 4 inputs. Because of this the interview will open in your RCReports dashboard (there is no option to have your client input this data). To make gathering the required information as simple as possible you can download a paper version of the interview from the Resource Library located in the Tools tab and have your client fill it out.