Because my professional niche is helping accountants enhance their business development skills, inevitably some of what we talk about touches upon marketing. With the exception of a couple of a couple out-of-the-box marketing techniques I’ve touched upon in this blog, I believe the vast majority of practices can effectively utilize mainstream marketing methods to generate a suitable pool of prospects.
One of today’s marketing tools is a web site. And, most of the owners I’ve spoken with are not exactly thrilled with their web site. It is technology they don’t understand, it requires expensive outside help, it needs frequent updating when changes occur (e.g. personnel come and go), and the majority don’t think their site really adds anything positive to the practice. It’s there, the complaint goes, because everyone else has one, so we’d better have one too or appear to be not “with it.”
Like every other profession, the cream rises to the top, and there are web designers who really know how to construct an effective site. Seminars are held, papers published, interviews printed, etc. and from these some “best practices” have emerged. Here are three for you to consider.
1. Know what people are doing on your site. You can use site analytics (i.e. Google Analytics, Web Trends, Site Catalyst, Coremetrics) to find out what pages visitors look at, how long they stay, etc. What this does is tell you what they want to look at. You can then decide whether you wish to enhance these areas or stay with what you have. Measure the results from the ongoing changes and optimize your site over the following months. If you have a number of pages no one cares about, then get rid of them. You site designer can fix you up with one of these analytic sites in a matter of minutes, and there is little to no expense.
2. Keep it simple. Your site needs only to intrigue the visitor to the point where they contact you. Or, a prospect may look at your site to verify you are “real.” Yes, they will develop some opinions of you based upon your web site, so keep it simple, well done – even elegant, use mainstream colors (a site emphasizing various shades of bright orange is probably NOT a good choice), everyday neutral fonts such as Arial or Verdana, and leave some white on the pages, that is to say don’t make the content so dense that it becomes a sort of visual mush. Lower the barriers. Describe clearly how to contact everyone.
3. Personalize your site. It doesn’t need a big Wow! factor. Its purpose is to describe an accounting firm – who the people are and what they do. The most highly rated sites include a good bit of personal information. What this means in practical terms is that in addition to a photo of the partners and staff, there is an accompanying bio that touches upon education and professional accomplishments but really focuses upon humanizing the members of the firm. It might mention, for example, two sons currently attending University of Ohio, she shares the house with three cocker spaniels, husband owns a landscaping company, finished 5th in this year’s Founder’s 5K race, etc., etc. If it is suitable, an innovative option is to include a link to a video. One site’s bios included a statement that the individual was learning how to ski and that it was a slow process. The reader was invited to click a link and see how he was progressing. The humorous video showed him falling (several times) on his backside on the bunny hill. He later reported that almost every new client he obtained in the next year mentioned the video. To him, this was anecdotal evidence people were in fact looking at his firm’s site.
Regarding photos, you can opt for studio head shots, but consider something more intimate. For example, a photo showing you kneeling by an inflated child’s pool in the backyard with your daughter splashing away tells a much more compelling visual story about you than a mug shot.
An Easy Promotional Tool To Use With Your Site:
There is no cost to list your practice in Google Local. This is a passive, free, 24 hour a day addition to your marketing effort. For example, if you are located in Eugene, Oregon, there are 76 listings in the Yellow Pages for “accountant.” But, if you list your Eugene practice in Google Local, a search reveals you would be the 11th listing. So, you’ve scrubbed off 65 potential competitors, and it also shows your location on Eugene’s Google map.
If you open your Google Search box, type in “google local” and click enter. When the screen opens up, click “Local Business Center” to find out how you can register your practice. Amazingly enough, It is quite straightforward and manageable.
The listing can contain a link to your website, a brief description of your services, and you can include a picture if you wish.
Check it out in your area: go to Google. Click Maps, then type in, e.g. “accountant Newark, CA” or “accountant des moines, IA” and see if this is something that can raise your visibility.
Saturday, July 11, 2009
Tuesday, July 7, 2009
Getting People To Say “Yes”
Accountants are often involved in situations where they are attempting to obtain agreement. Examples include negotiating terms, reaching compromises and a host of other instances where you, “as the keeper of the numbers,” are seeking to persuade one or more people to adopt/accept your (or your client’s) viewpoint.
We begin with the assumption that the negotiation isn’t a scorched earth situation. In other words, you’re hoping to obtain the “yes” without use of undue pressure and/or destruction of the relationship.
While experts will disagree about how to classify the basic elements, there is a generally agreed upon series of negotiating best practices if you are attempting to get others to say “yes.” What follows is a quick hit on each.
#1 – respond with your brain, not your emotions.
Just like business development, you need to be deliberate in your responses. Words once said are like toothpaste squeezed from a tube – impossible to take back. Emotionalism breeds emotionalism and you don’t want the discussions to be at the mercy of unfocused passions. If that occurs, you have lost control of the situation. Always respond with thought. Just like business development, you want to understand as quickly as possible what it is the other side really wants, because your negotiating approach will be structured around that reality.
If you find yourself strongly emotionally triggered, it is always OK to request a couple minutes to stretch and walk around, or for an opportunity to talk with your client privately or to take a bathroom break. Collect your thoughts and return to the table.
#2 – eliminate Us and Them
In a real negotiation the other side shouldn’t be your opponent, and it isn’t a war. If you treat it that way, they’ll feel your mindset and respond in kind. Instead, you’ll achieve better results if you can see the situation from the other side’s perspective. Instead of advancing your agenda and seeking to persuade them to your viewpoint, first look for those things you can say “yes” to. Where you can, agree with them, find common ground and build a consensus. To emphasize agreement, highly skilled negotiators eliminate the word “but” and replace it with “and.” There’s a limit to this, of course. The take away here is that many studies have made it clear that emphasizing what you can agree upon will disarm the other side, greatly reduce the typical adversarial nature of many negotiations, and foster an environment that will more frequently result in a successful agreement.
#3 – meet objections head on
The key here is to understand what the other side really wants and cares about. Once you understand this, you can anticipate their objections to your negotiating positions. The question then becomes how to resolve them. The wrong answer is to try and duck objections. The more clever negotiators focus upon reframing each potential objection by phrasing it as a mutual concern for both sides and then offering ideas for addressing the objection.
#4 – make the negotiation a win-win
To the extent you can, it is desirable to include the other side’s ideas into each of your proposed solutions. This evidences good faith, flatters them, brings the two sides closer together and fosters collaboration. At the bottom line, give them some ownership in reaching a successful conclusion to the negotiation.
Additionally, there are typically any number of less important things you can agree to as part of the give and take leading to the eventual deal that is agreed upon. Since the other side doesn’t really know how you value each of these, you have the power to influence their thinking. If you lead them to believe one or more of these is important to you, but you then – in the spirit of compromise – soften or even forego each “important” concern, it can lead to them pulling back on their demands.
Don’t give these up too quickly. The idea is give a little and get a little as you inch along toward an agreement.
# 5 – make it easy for the other side to say “yes”
This is a powerful closing tactic, but can be overdone. I recommend you tread lightly. It has been said that in a successful negotiation you bring the other side to its senses, not its knees.
The tactic is used after both sides have had the opportunity to explore their differences and isolate where the real issues are. You are at that point in the negotiation where the resolution – if it is going to happen – is starting to become apparent. You begin by starting to, a) propose your solution and then, part way through, you, b) shift gears and describe – in neutral terms – the problem (and its real or potential downside) that led you both to enter the current negotiations and then, c) continue and complete the description of your solution. In effect, by doing this you are highlighting both the cost of not reaching agreement and emphasizing the value to both parties of reaching an agreement.
Just like the best practices business development methods discussed in this blog, certain behaviors are especially valuable in conducting successful negotiations. The five elements briefly described above are among the most important.
An interesting publication that gets much further into these tactics is a book by William Ury titled “Getting Past No: Negotiating With Difficult People.” Check it out.
We begin with the assumption that the negotiation isn’t a scorched earth situation. In other words, you’re hoping to obtain the “yes” without use of undue pressure and/or destruction of the relationship.
While experts will disagree about how to classify the basic elements, there is a generally agreed upon series of negotiating best practices if you are attempting to get others to say “yes.” What follows is a quick hit on each.
#1 – respond with your brain, not your emotions.
Just like business development, you need to be deliberate in your responses. Words once said are like toothpaste squeezed from a tube – impossible to take back. Emotionalism breeds emotionalism and you don’t want the discussions to be at the mercy of unfocused passions. If that occurs, you have lost control of the situation. Always respond with thought. Just like business development, you want to understand as quickly as possible what it is the other side really wants, because your negotiating approach will be structured around that reality.
If you find yourself strongly emotionally triggered, it is always OK to request a couple minutes to stretch and walk around, or for an opportunity to talk with your client privately or to take a bathroom break. Collect your thoughts and return to the table.
#2 – eliminate Us and Them
In a real negotiation the other side shouldn’t be your opponent, and it isn’t a war. If you treat it that way, they’ll feel your mindset and respond in kind. Instead, you’ll achieve better results if you can see the situation from the other side’s perspective. Instead of advancing your agenda and seeking to persuade them to your viewpoint, first look for those things you can say “yes” to. Where you can, agree with them, find common ground and build a consensus. To emphasize agreement, highly skilled negotiators eliminate the word “but” and replace it with “and.” There’s a limit to this, of course. The take away here is that many studies have made it clear that emphasizing what you can agree upon will disarm the other side, greatly reduce the typical adversarial nature of many negotiations, and foster an environment that will more frequently result in a successful agreement.
#3 – meet objections head on
The key here is to understand what the other side really wants and cares about. Once you understand this, you can anticipate their objections to your negotiating positions. The question then becomes how to resolve them. The wrong answer is to try and duck objections. The more clever negotiators focus upon reframing each potential objection by phrasing it as a mutual concern for both sides and then offering ideas for addressing the objection.
#4 – make the negotiation a win-win
To the extent you can, it is desirable to include the other side’s ideas into each of your proposed solutions. This evidences good faith, flatters them, brings the two sides closer together and fosters collaboration. At the bottom line, give them some ownership in reaching a successful conclusion to the negotiation.
Additionally, there are typically any number of less important things you can agree to as part of the give and take leading to the eventual deal that is agreed upon. Since the other side doesn’t really know how you value each of these, you have the power to influence their thinking. If you lead them to believe one or more of these is important to you, but you then – in the spirit of compromise – soften or even forego each “important” concern, it can lead to them pulling back on their demands.
Don’t give these up too quickly. The idea is give a little and get a little as you inch along toward an agreement.
# 5 – make it easy for the other side to say “yes”
This is a powerful closing tactic, but can be overdone. I recommend you tread lightly. It has been said that in a successful negotiation you bring the other side to its senses, not its knees.
The tactic is used after both sides have had the opportunity to explore their differences and isolate where the real issues are. You are at that point in the negotiation where the resolution – if it is going to happen – is starting to become apparent. You begin by starting to, a) propose your solution and then, part way through, you, b) shift gears and describe – in neutral terms – the problem (and its real or potential downside) that led you both to enter the current negotiations and then, c) continue and complete the description of your solution. In effect, by doing this you are highlighting both the cost of not reaching agreement and emphasizing the value to both parties of reaching an agreement.
-o0o-
Just like the best practices business development methods discussed in this blog, certain behaviors are especially valuable in conducting successful negotiations. The five elements briefly described above are among the most important.
An interesting publication that gets much further into these tactics is a book by William Ury titled “Getting Past No: Negotiating With Difficult People.” Check it out.
Thursday, July 2, 2009
Can You Become A “Brand?”
In marketing-speak, the word “brand” can be defined as an identity that distinguishes one product from another. It can be a logo (think Apple Computers), a name (think IBM, Rolex or Coke), or other identifier (think of a FedEx envelope or a brown UPS truck). How about YOU as a brand?
What can you do to stand out against the noise? In other words, what can distinguish you from the other competing accountants in your trading area?
One of my clients is exploring how she can go “green.” Her idea is to become the go-to accountant in her area when the discussion turns to green practices and the potential tax implications. To do this she is going to explore the myriad of Federal, State (she’s in California) and local laws, regulations, rules and court interpretations that impact personal and business tax exposure.
Her basic promotional tool will be a high quality multi-color handout. The handout will summarize her findings in a graphic matrix organized by jurisdiction. It will be, in effect, a, “one or more of these factors could apply to your situation and are you anticipating the potential effect?” teaser. Her contact information will be prominently featured on the handout.
The marketing plan will focus upon two tactics. The first is to write a number of relatively brief (300 – 600 word) articles about the subject that will be suitable for local newspapers, accounting trade publications, web sites, meeting handouts, etc. The second is to look for public speaking opportunities. These can be with real estate, business, “green” organizations, investment groups, etc. The list is almost without limit.
How will she benefit from this exposure?
She will become recognized as a local expert. This can lead to media exposure - appearances on radio, television and interviews for various publications.
Her expertise will be valued by a population who not only desires her services; they can afford them.
Her efforts will frequently produce immediate results. In other words, if she speaks at a gathering of, for example, general contractors, she may have members of the audience request appointments as soon as her presentation is concluded. Or, if someone reads one of her articles, her contact information will appear adjacent to the article.
What she is doing is MUCH more persuasive and targeted than any form of typical commercial advertising and should be quite inexpensive. Designing and printing a thousand handouts isn’t very costly.
Finally, her efforts have spin-off possibilities. For example, the research, article preparation, presentation materials, etc. all have potential to be recycled into a book, online course, or an audio/video program she could sell to other accountants wishing to replicate her success in their area.
Is her “green” idea the only one? Absolutely not. Topics are only limited by your imagination and areas of interest. Scanning the articles in accounting-specific web sites, various trade journals and a host of other media will give you ideas about what’s hot and what’s not.
Pick a niche. Do your homework. Become an expert. Let everyone know you are that expert. Create opportunities to write and speak.
As stated so succinctly in the movie Field of Dreams, “Build it and they will come.”
What can you do to stand out against the noise? In other words, what can distinguish you from the other competing accountants in your trading area?
One of my clients is exploring how she can go “green.” Her idea is to become the go-to accountant in her area when the discussion turns to green practices and the potential tax implications. To do this she is going to explore the myriad of Federal, State (she’s in California) and local laws, regulations, rules and court interpretations that impact personal and business tax exposure.
Her basic promotional tool will be a high quality multi-color handout. The handout will summarize her findings in a graphic matrix organized by jurisdiction. It will be, in effect, a, “one or more of these factors could apply to your situation and are you anticipating the potential effect?” teaser. Her contact information will be prominently featured on the handout.
The marketing plan will focus upon two tactics. The first is to write a number of relatively brief (300 – 600 word) articles about the subject that will be suitable for local newspapers, accounting trade publications, web sites, meeting handouts, etc. The second is to look for public speaking opportunities. These can be with real estate, business, “green” organizations, investment groups, etc. The list is almost without limit.
How will she benefit from this exposure?
She will become recognized as a local expert. This can lead to media exposure - appearances on radio, television and interviews for various publications.
Her expertise will be valued by a population who not only desires her services; they can afford them.
Her efforts will frequently produce immediate results. In other words, if she speaks at a gathering of, for example, general contractors, she may have members of the audience request appointments as soon as her presentation is concluded. Or, if someone reads one of her articles, her contact information will appear adjacent to the article.
What she is doing is MUCH more persuasive and targeted than any form of typical commercial advertising and should be quite inexpensive. Designing and printing a thousand handouts isn’t very costly.
Finally, her efforts have spin-off possibilities. For example, the research, article preparation, presentation materials, etc. all have potential to be recycled into a book, online course, or an audio/video program she could sell to other accountants wishing to replicate her success in their area.
Is her “green” idea the only one? Absolutely not. Topics are only limited by your imagination and areas of interest. Scanning the articles in accounting-specific web sites, various trade journals and a host of other media will give you ideas about what’s hot and what’s not.
Pick a niche. Do your homework. Become an expert. Let everyone know you are that expert. Create opportunities to write and speak.
As stated so succinctly in the movie Field of Dreams, “Build it and they will come.”
Monday, June 22, 2009
Learning From The Best
Of all the accountants I’ve had the pleasure of working with, Michael is the best business developer. His practice focuses upon businesses with annual revenue ranging between one and twenty million dollars. The billings his efforts have generated since 2004 average over $3,000,000 annually. He personally manages a book of business approximating $1,000,000 and has spread the other clients among younger, but nevertheless highly capable accountants in his firm.
We had a pleasant lunch recently and in response to my prompting Michael gave me an overview of his success formula.
He began his practice with a few clients he “inherited” from a retiring accountant. By conventional personal marketing tactics, e.g. encouraging referrals, networking, socializing, getting involved within his community, etc., he slowly grew his practice to the point where he was working approximately 65 – 75 hours a week.
He then made his first hire. He selected an experienced, knowledgeable and relatively highly paid former staffer for one of the national firms. He delegated everything he could to her, and within a month her efforts had freed up almost half of his time. (Since then several more professional staff have been added; each one hired only when revenue growth could support the added overhead.)
The strategy was then to contact every one of his business clients and arrange an informal lunch date. When he met with each client he had a simple business development strategy he refers to as “casual probing.”
Here’s how it works: (In advance of the meeting Michael has reviewed the client’s latest financial docs so he’s very familiar with the numbers.) He begins by thanking them for their business. Then there’s a bit of chit chat to catch up on personal events and at an appropriate point he asks, in effect, “So, how’s the business doing?”
As the client responds, Michael interjects comments like, “Yes, I noticed your year over year margins have dropped about 5 percent,” so the client knows Michael is up to speed and they can discuss details. By asking more questions (probing) Michael isolates various issues the client perceives as problems. Michael then offers casually phrased suggestions about possible courses of action, e.g. “The best way to anticipate what funding package will be optimal to purchase the tractor is to do some projections so we can predict where you’ll be with cash, the bank line and profitability,” or, “We know that closing the Kansas City sales office will cut expenses, but it’s more complex than that. You need to run the numbers out so you have a handle on how this impacts longer term profitability, cash, quantity purchase discounts with vendors, and other factors.”
As Michael makes these comments, he’s mindful to never suggest any course of action that doesn’t have intrinsic value to the client. In other words, he never suggests anything that doesn’t have an obviously excellent ROI. In the first example above, the tractor will cost around $250,000, so paying Michael, say, $4000 to run a fairly detailed projection is an easy decision to make because a funding package that is poorly thought out could cost much more in terms of interest, lost opportunity, etc. In the second example, closing or not closing a sales office is another action that has significant ramifications. It involves personnel, leases, revenue, costs, client/customer service, and a host of other meaningful issues. Again, the prospective dollar impact will be much greater than the cost of the study to examine the elements.
Michael never goes into business development mode during these meetings. He keeps the luncheon discussion completely conversational and he picks up the tab.
If he doesn’t act like he’s looking for work, how does Michael benefit from this process? First of all, he retains ALL of his clients. They don’t go somewhere else because they aren’t getting enough love. They send him an inordinate number of referrals because he’s helpful and expresses an interest in them. And, approximately half of them will engage Michael on the spot to do some sort of project work or schedule a consulting session!
Whenever his client activities involve interaction with an attorney or consultant, he ALWAYS repeats the above procedure and invites them to lunch. He thanks them for their help and cooperation; talks about mutual interests and asks them about their business. Because he is so experienced with this methodology, he can “wing it” as they talk about their business and toss in valuable suggestions and ideas.
Even if they don’t hire Michael as their accountant, they more frequently than not become part of his network and send him referrals.
Michael averages about 75 lunch dates a year with clients, attorneys, consultants and others individuals who are centers of influence. This process has made him millions of dollars and generated hundreds of loyal clients. The other accountants in his office are expected to adopt the same approach.
As a caveat, Michael mentioned that these lunch meetings are not the only time he interacts with his clients. He deliberately creates situations where he will be talking with and/or actually visiting his clients, especially the ones that generate significant revenue.
As Michael points out, with this method he doesn’t ever have to “sell.” He only talks, asks some questions, expresses interest in the client, makes them feel appreciated, picks up the lunch tab and offers some casual advice. He recognizes that an important element of his continuing success is that the suggestions and ideas he offers are based upon solid knowledge and a sophisticated understanding of how for-profit enterprises really work. This level of acumen has taken years to acquire, but when he began he knew no more than any other accountant with a couple of years experience. Nevertheless, the method worked well right from the beginning.
There you have it. That’s how one of the masters does it. Can Michael’s method work for you?
We had a pleasant lunch recently and in response to my prompting Michael gave me an overview of his success formula.
He began his practice with a few clients he “inherited” from a retiring accountant. By conventional personal marketing tactics, e.g. encouraging referrals, networking, socializing, getting involved within his community, etc., he slowly grew his practice to the point where he was working approximately 65 – 75 hours a week.
He then made his first hire. He selected an experienced, knowledgeable and relatively highly paid former staffer for one of the national firms. He delegated everything he could to her, and within a month her efforts had freed up almost half of his time. (Since then several more professional staff have been added; each one hired only when revenue growth could support the added overhead.)
The strategy was then to contact every one of his business clients and arrange an informal lunch date. When he met with each client he had a simple business development strategy he refers to as “casual probing.”
Here’s how it works: (In advance of the meeting Michael has reviewed the client’s latest financial docs so he’s very familiar with the numbers.) He begins by thanking them for their business. Then there’s a bit of chit chat to catch up on personal events and at an appropriate point he asks, in effect, “So, how’s the business doing?”
As the client responds, Michael interjects comments like, “Yes, I noticed your year over year margins have dropped about 5 percent,” so the client knows Michael is up to speed and they can discuss details. By asking more questions (probing) Michael isolates various issues the client perceives as problems. Michael then offers casually phrased suggestions about possible courses of action, e.g. “The best way to anticipate what funding package will be optimal to purchase the tractor is to do some projections so we can predict where you’ll be with cash, the bank line and profitability,” or, “We know that closing the Kansas City sales office will cut expenses, but it’s more complex than that. You need to run the numbers out so you have a handle on how this impacts longer term profitability, cash, quantity purchase discounts with vendors, and other factors.”
As Michael makes these comments, he’s mindful to never suggest any course of action that doesn’t have intrinsic value to the client. In other words, he never suggests anything that doesn’t have an obviously excellent ROI. In the first example above, the tractor will cost around $250,000, so paying Michael, say, $4000 to run a fairly detailed projection is an easy decision to make because a funding package that is poorly thought out could cost much more in terms of interest, lost opportunity, etc. In the second example, closing or not closing a sales office is another action that has significant ramifications. It involves personnel, leases, revenue, costs, client/customer service, and a host of other meaningful issues. Again, the prospective dollar impact will be much greater than the cost of the study to examine the elements.
Michael never goes into business development mode during these meetings. He keeps the luncheon discussion completely conversational and he picks up the tab.
If he doesn’t act like he’s looking for work, how does Michael benefit from this process? First of all, he retains ALL of his clients. They don’t go somewhere else because they aren’t getting enough love. They send him an inordinate number of referrals because he’s helpful and expresses an interest in them. And, approximately half of them will engage Michael on the spot to do some sort of project work or schedule a consulting session!
Whenever his client activities involve interaction with an attorney or consultant, he ALWAYS repeats the above procedure and invites them to lunch. He thanks them for their help and cooperation; talks about mutual interests and asks them about their business. Because he is so experienced with this methodology, he can “wing it” as they talk about their business and toss in valuable suggestions and ideas.
Even if they don’t hire Michael as their accountant, they more frequently than not become part of his network and send him referrals.
Michael averages about 75 lunch dates a year with clients, attorneys, consultants and others individuals who are centers of influence. This process has made him millions of dollars and generated hundreds of loyal clients. The other accountants in his office are expected to adopt the same approach.
As a caveat, Michael mentioned that these lunch meetings are not the only time he interacts with his clients. He deliberately creates situations where he will be talking with and/or actually visiting his clients, especially the ones that generate significant revenue.
As Michael points out, with this method he doesn’t ever have to “sell.” He only talks, asks some questions, expresses interest in the client, makes them feel appreciated, picks up the lunch tab and offers some casual advice. He recognizes that an important element of his continuing success is that the suggestions and ideas he offers are based upon solid knowledge and a sophisticated understanding of how for-profit enterprises really work. This level of acumen has taken years to acquire, but when he began he knew no more than any other accountant with a couple of years experience. Nevertheless, the method worked well right from the beginning.
There you have it. That’s how one of the masters does it. Can Michael’s method work for you?
Thursday, June 11, 2009
War Stories
I’m getting more war stories from readers. Some are very businesslike, and I respond to those in a serious manner, but a few are humorous and I think you will enjoy reading one of these every now and then. Here’s something from Diane, who has a practice in New York (facts are slightly altered to protect the client’s identify).
“For several months I have been cultivating a gentleman who owns a large automotive body repair and painting shop and he recently invited me to meet him at his office and discuss the possibility of using my services.
It turned out to be a large facility, with at least twenty cars being worked on. His office is on the second floor and overlooks the shop below. His wife was also there. She majored in accounting and has been acting as his in-house bookkeeper and tax preparer since the business was started in the mid-‘70s. I was told she wanted to step down from that role and that’s why they wanted to talk with me.
Surprisingly, the office has birds. Lots of birds. Parrots, macaws and a host of others whose names I had never heard before. Big, small, blue, yellow, red and more. A few were in cages, others were on perches and some were free to roam about the room. They weren’t noisy, but it was disconcerting to have this sense out of the corner of my eye that there was constant movement all around us.
Things went well for awhile and then, without looking, I reached down into my briefcase I’d placed next to my chair. Instead of the folder I sought my hand wrapped around a warm, feathered and suddenly highly agitated trespasser. I screamed and the bird screeched. This set the rest of them off and for a few seconds every other bird in the office was squawking at the top of its lungs. Then, as though a secret command had been issued, all the birds went back to whatever it is they were doing as though nothing had happened.
Whatever sense of professional competence I’d been projecting had evaporated. My heart was jumping out of my chest and for a moment I thought I was hyperventilating. The owners apologized for the ruckus, but didn’t seem all that surprised. I got the impression that this wasn’t a particularly unusual occurrence.
We got back to business and things seemed almost normal. Except, of course, for the 20 or more sets of beady eyes I now imagined were watching my every movement. Was this going to evolve into something out of Hitchcock’s “The Birds?” What would my family think? “Accountant pecked to death!” Film at 11.
I heard movement behind me and correctly surmised a bird had landed on the top of the back of my chair. I was determined not to lose my composure and pressed on. The owner and his wife glanced at each other and I could tell she was suppressing a smile. The reason became clear a moment later when the bird latched on to my left earring. Struggling mightily to not completely lose it, I slowly reached up with the intent to gently push the bird away. It repaid my concern for its welfare by drawing blood on my index finger. Now angry, I snapped my head around to face my tormentor, who quickly flew away before I could punch its little lights out.
The owner and his wife were laughing hysterically. After we all recovered our composure and I had stopped the bleeding with a Kleenex, he apologized and inquired if this meant I wasn’t interested in becoming their accountant. I hesitated because I really was thinking about whether or not I wanted to. The wife, who was still chuckling, broke the silence by wondering if it might help if we scheduled any future meetings at my office.
That worked for me.
My feedback is that the business development method works well. I don’t suppose you could provide an update explaining how to avoid situations like this in the future? No, I didn’t think so.”
“For several months I have been cultivating a gentleman who owns a large automotive body repair and painting shop and he recently invited me to meet him at his office and discuss the possibility of using my services.
It turned out to be a large facility, with at least twenty cars being worked on. His office is on the second floor and overlooks the shop below. His wife was also there. She majored in accounting and has been acting as his in-house bookkeeper and tax preparer since the business was started in the mid-‘70s. I was told she wanted to step down from that role and that’s why they wanted to talk with me.
Surprisingly, the office has birds. Lots of birds. Parrots, macaws and a host of others whose names I had never heard before. Big, small, blue, yellow, red and more. A few were in cages, others were on perches and some were free to roam about the room. They weren’t noisy, but it was disconcerting to have this sense out of the corner of my eye that there was constant movement all around us.
Things went well for awhile and then, without looking, I reached down into my briefcase I’d placed next to my chair. Instead of the folder I sought my hand wrapped around a warm, feathered and suddenly highly agitated trespasser. I screamed and the bird screeched. This set the rest of them off and for a few seconds every other bird in the office was squawking at the top of its lungs. Then, as though a secret command had been issued, all the birds went back to whatever it is they were doing as though nothing had happened.
Whatever sense of professional competence I’d been projecting had evaporated. My heart was jumping out of my chest and for a moment I thought I was hyperventilating. The owners apologized for the ruckus, but didn’t seem all that surprised. I got the impression that this wasn’t a particularly unusual occurrence.
We got back to business and things seemed almost normal. Except, of course, for the 20 or more sets of beady eyes I now imagined were watching my every movement. Was this going to evolve into something out of Hitchcock’s “The Birds?” What would my family think? “Accountant pecked to death!” Film at 11.
I heard movement behind me and correctly surmised a bird had landed on the top of the back of my chair. I was determined not to lose my composure and pressed on. The owner and his wife glanced at each other and I could tell she was suppressing a smile. The reason became clear a moment later when the bird latched on to my left earring. Struggling mightily to not completely lose it, I slowly reached up with the intent to gently push the bird away. It repaid my concern for its welfare by drawing blood on my index finger. Now angry, I snapped my head around to face my tormentor, who quickly flew away before I could punch its little lights out.
The owner and his wife were laughing hysterically. After we all recovered our composure and I had stopped the bleeding with a Kleenex, he apologized and inquired if this meant I wasn’t interested in becoming their accountant. I hesitated because I really was thinking about whether or not I wanted to. The wife, who was still chuckling, broke the silence by wondering if it might help if we scheduled any future meetings at my office.
That worked for me.
My feedback is that the business development method works well. I don’t suppose you could provide an update explaining how to avoid situations like this in the future? No, I didn’t think so.”
Monday, June 8, 2009
Sometimes You Get Lucky
Todd, who has his practice in the Chicago area, sent me a recap of a recent business development experience that contains lessons for all of us. I then phoned him and got the details so you can really get a flavor of what happened. The names have been changed to protect the client’s privacy.
Todd has a 1040 client who works as a nurse at a local hospital. Her annual income from her work is in the mid 60s, but she additionally receives disbursements, amounting to low six figures, from a trust.
When “Shelly” picked up her return she unexpectedly said to Todd that she wanted to look at engaging another accountant for the trust, and would he be interested? Having come from several years of blue chip non-profit experience with a national firm, Todd replied that yes, he would.
Shelly said that she’d set up an informal meeting so her two siblings could meet Todd and he could get a feel for the situation. True to her word, a couple of weeks later Shelly called and said that they’d meet at her sister’s house and gave Todd the address which, not surprisingly, Todd recognized was located in an area of expensive houses.
The appointed date and hour arrived and Todd entered the circular driveway of a large – make that very large – estate. Impressive, with a number of upscale cars parked in front.
Shelly’s sister, “Kate,” greeted him at the door and after a brief introduction he was ushered into a formal living room and offered something to drink. There were nine people in the room, and Shelly introduced him to her brother “Tom,”
and six (!) other professionals – four lawyers and two accountants; only one of whom he had met before.
They all seemed to be sporting full briefcases. Documents were scattered around on various tables. He sat down next to Shelly with a dawning understanding he was there to represent her interests and a growing feeling of dread, knowing that he was completely unprepared to participate in a substantive discussion about any aspect of the trust. In fact, he learned there wasn’t just “a trust,” but instead three, with a total value exceeding two hundred million dollars!
Hardly an informal, let’s-chat-and-kick-things-around gathering, Todd watched as things immediately evolved into a contentious, tension-filled meeting wherein the participants were voicing strongly held and widely different opinions about the trust and how its assets were being disbursed. The lawyers postured and competed and highly detailed spreadsheets were produced by the accountants who then advocated their respective positions.
It turned out that Kate was the dominant sibling, and also the oldest. Tom was a manager of an insurance office and quite aggressive about accelerating the pace at which the discretionary portion of the disbursements were finding a home in his personal bank account. Kate’s agenda seemed to revolve around passionately advocating any position that stood in stark opposition to Tom’s. Todd learned Shelly was the youngest and both Kate and Tom were dismissive and uninterested in her opinions as they conducted their own private war.
Fortunately, Shelly didn’t have any convictions she was seeking to advance, so she wasn’t relying upon Todd to cross swords with the other participants. He spoke up every now and then, but for the most part kept his head down in his foxhole as the bullets flew overhead.
At the end of the meeting Shelly formally engaged Todd and he is, perhaps as I write this, quickly coming up to speed so he can effectively advise Shelly in the future.
He is fully aware he got lucky and hopes he learned from the experience.
As Todd phrased it – He:
a) didn’t understand anything about Shelly’s siblings or their dynamics
b) didn’t know anything about the trust(s) and the dollar magnitude
c) accepted Shelly’s interpretation that the meeting would be informal
d) didn’t ask any questions
e) was completely unaware of the agenda
f) didn’t realize Shelly was relying upon him to represent her interests
g) didn’t ask to see Shelly’s copies of the trust accounting/returns/etc.
h) didn’t know who would be at the meeting
i) (here’s my favorite) will never again show up at a shark feeding frenzy armed only with a couple brochures, a yellow legal pad, some pens and a few business cards.
Good advice for all of us.
Todd has a 1040 client who works as a nurse at a local hospital. Her annual income from her work is in the mid 60s, but she additionally receives disbursements, amounting to low six figures, from a trust.
When “Shelly” picked up her return she unexpectedly said to Todd that she wanted to look at engaging another accountant for the trust, and would he be interested? Having come from several years of blue chip non-profit experience with a national firm, Todd replied that yes, he would.
Shelly said that she’d set up an informal meeting so her two siblings could meet Todd and he could get a feel for the situation. True to her word, a couple of weeks later Shelly called and said that they’d meet at her sister’s house and gave Todd the address which, not surprisingly, Todd recognized was located in an area of expensive houses.
The appointed date and hour arrived and Todd entered the circular driveway of a large – make that very large – estate. Impressive, with a number of upscale cars parked in front.
Shelly’s sister, “Kate,” greeted him at the door and after a brief introduction he was ushered into a formal living room and offered something to drink. There were nine people in the room, and Shelly introduced him to her brother “Tom,”
and six (!) other professionals – four lawyers and two accountants; only one of whom he had met before.
They all seemed to be sporting full briefcases. Documents were scattered around on various tables. He sat down next to Shelly with a dawning understanding he was there to represent her interests and a growing feeling of dread, knowing that he was completely unprepared to participate in a substantive discussion about any aspect of the trust. In fact, he learned there wasn’t just “a trust,” but instead three, with a total value exceeding two hundred million dollars!
Hardly an informal, let’s-chat-and-kick-things-around gathering, Todd watched as things immediately evolved into a contentious, tension-filled meeting wherein the participants were voicing strongly held and widely different opinions about the trust and how its assets were being disbursed. The lawyers postured and competed and highly detailed spreadsheets were produced by the accountants who then advocated their respective positions.
It turned out that Kate was the dominant sibling, and also the oldest. Tom was a manager of an insurance office and quite aggressive about accelerating the pace at which the discretionary portion of the disbursements were finding a home in his personal bank account. Kate’s agenda seemed to revolve around passionately advocating any position that stood in stark opposition to Tom’s. Todd learned Shelly was the youngest and both Kate and Tom were dismissive and uninterested in her opinions as they conducted their own private war.
Fortunately, Shelly didn’t have any convictions she was seeking to advance, so she wasn’t relying upon Todd to cross swords with the other participants. He spoke up every now and then, but for the most part kept his head down in his foxhole as the bullets flew overhead.
At the end of the meeting Shelly formally engaged Todd and he is, perhaps as I write this, quickly coming up to speed so he can effectively advise Shelly in the future.
He is fully aware he got lucky and hopes he learned from the experience.
As Todd phrased it – He:
a) didn’t understand anything about Shelly’s siblings or their dynamics
b) didn’t know anything about the trust(s) and the dollar magnitude
c) accepted Shelly’s interpretation that the meeting would be informal
d) didn’t ask any questions
e) was completely unaware of the agenda
f) didn’t realize Shelly was relying upon him to represent her interests
g) didn’t ask to see Shelly’s copies of the trust accounting/returns/etc.
h) didn’t know who would be at the meeting
i) (here’s my favorite) will never again show up at a shark feeding frenzy armed only with a couple brochures, a yellow legal pad, some pens and a few business cards.
Good advice for all of us.
Friday, June 5, 2009
Making Your Marketing Efforts Really Pay Off
If you wish to find prospective clients for your practice the options available to you are relatively straightforward and well understood.
If you have a general practice primarily serving individuals, small businesses and organizations you can reach your target audience by conventional marketing avenues. Almost every city or trading area with a six figure or greater population has marketing services available. If you do your homework you will be able to mount an appropriately scaled program and the upfront costs shouldn’t break the bank.
On the other hand, if you have, e.g. an audit practice, or service non-profits, high wealth individuals or larger businesses, classic direct marketing isn’t very effective. Instead, you will be better served to rely upon more personal marketing such as, e.g. referrals, speaking, authoring articles or a book and meeting prospects at appropriate gatherings, etc.
In this blog we’ve talked about some techniques to get your own personal marketing campaign going and, if you are a ProfitCents subscriber the new business development manual I’ve written for Sageworks has some very specific, step-by-step suggestions for how to do this.
Whatever the nature of your practice or how you market it, the bottom line is you want to create opportunities to talk with, and persuade, the “right” prospects to become clients.
If your goal is to add clients whose annual billings are almost always less than, say, $500 - $1000, then you will in all likelihood interview and close them over the phone or a relatively brief meeting in your office.
But if your practice consists primarily of clients with more complex situations and annual billings ranging into four figures or above you will almost always meet with them in person before a client relationship is formed.
In this latter instance there is, as Shakespeare famously put it, “Many a slip between the cup and lip.”
I conducted a survey for several years in the mid ‘90s with the goal of determining the conversion rate of accountant – prospect business development meetings. The results were sufficiently consistent to conclude that the industry average was a success rate of roughly one out of three, i.e. if an accountant had three meetings with prospective clients, one would become a client.
Personal and/or relational marketing can be time intensive and you are balancing lost time you could be billing against the up-side opportunity you are pursuing. If you improve your conversion rate it can dramatically alter this equation. Either you can derive more revenue from the number of hours of marketing you currently allocate, or you can maintain the same level of revenue and invest fewer hours to do so.
The second half of the survey was to determine if the conversion rate was meaningfully improved after the accountants were given appropriate training.
Yes, it was. From approximately one out of three to one out of two. A dramatic improvement!
For a given level of marketing, improving your conversion rate is the most effective thing you can do to immediately improve your financial picture.
Since the ‘50s, the business and academic communities have spent countless hours and hundreds of millions of dollars to figure out how industry can “sell” products and services. Not surprisingly after this much effort, what works and what doesn’t is almost universally agreed upon.
The techniques I write about in this blog and that are contained in the ProfitCents business development manual (and the generic manual I’m writing that will be completed in July) have been specifically adapted for use by accounting service providers and are exactly the things that will improve your conversion rate.
If you are already good at it, then hopefully I can provide a few ideas that will drive your success to new heights. If you are new to business development, please take advantage of these techniques and hit the ground running.
If you have a general practice primarily serving individuals, small businesses and organizations you can reach your target audience by conventional marketing avenues. Almost every city or trading area with a six figure or greater population has marketing services available. If you do your homework you will be able to mount an appropriately scaled program and the upfront costs shouldn’t break the bank.
On the other hand, if you have, e.g. an audit practice, or service non-profits, high wealth individuals or larger businesses, classic direct marketing isn’t very effective. Instead, you will be better served to rely upon more personal marketing such as, e.g. referrals, speaking, authoring articles or a book and meeting prospects at appropriate gatherings, etc.
In this blog we’ve talked about some techniques to get your own personal marketing campaign going and, if you are a ProfitCents subscriber the new business development manual I’ve written for Sageworks has some very specific, step-by-step suggestions for how to do this.
Whatever the nature of your practice or how you market it, the bottom line is you want to create opportunities to talk with, and persuade, the “right” prospects to become clients.
If your goal is to add clients whose annual billings are almost always less than, say, $500 - $1000, then you will in all likelihood interview and close them over the phone or a relatively brief meeting in your office.
But if your practice consists primarily of clients with more complex situations and annual billings ranging into four figures or above you will almost always meet with them in person before a client relationship is formed.
In this latter instance there is, as Shakespeare famously put it, “Many a slip between the cup and lip.”
I conducted a survey for several years in the mid ‘90s with the goal of determining the conversion rate of accountant – prospect business development meetings. The results were sufficiently consistent to conclude that the industry average was a success rate of roughly one out of three, i.e. if an accountant had three meetings with prospective clients, one would become a client.
Personal and/or relational marketing can be time intensive and you are balancing lost time you could be billing against the up-side opportunity you are pursuing. If you improve your conversion rate it can dramatically alter this equation. Either you can derive more revenue from the number of hours of marketing you currently allocate, or you can maintain the same level of revenue and invest fewer hours to do so.
The second half of the survey was to determine if the conversion rate was meaningfully improved after the accountants were given appropriate training.
Yes, it was. From approximately one out of three to one out of two. A dramatic improvement!
For a given level of marketing, improving your conversion rate is the most effective thing you can do to immediately improve your financial picture.
Since the ‘50s, the business and academic communities have spent countless hours and hundreds of millions of dollars to figure out how industry can “sell” products and services. Not surprisingly after this much effort, what works and what doesn’t is almost universally agreed upon.
The techniques I write about in this blog and that are contained in the ProfitCents business development manual (and the generic manual I’m writing that will be completed in July) have been specifically adapted for use by accounting service providers and are exactly the things that will improve your conversion rate.
If you are already good at it, then hopefully I can provide a few ideas that will drive your success to new heights. If you are new to business development, please take advantage of these techniques and hit the ground running.
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