All posts from May 2010

I recently spoke with a practitioner in the south. His firm was much like  others I have observed over the past decade with one exception. His annual revenue was triple that of most.

He was very organized.  He had planned well and executed a growth strategy that included acquiring small firms as well as developing a disciplined approach to new business development. He treated clients of the acquired firms just as he did prospective clients he was courting.

In fifteen years of working with tax and accounting professionals we have encountered firms with various levels of success.  We have seen some of the worst performing firms turned around by buyers who was intentional about creating and developing loyal clients.

Successful firms use a systematic business development process.  In a recent survey of 1,000 practitioners we found: 

• 40% responded their practice has a business development culture
• 42% of respondents agreed or strongly agreed that their team or staff were responsible for business development
• However, only 25% indicated their team or staff received any training on how to develop business

While many practitioners were optimistic about the upcoming year, they really had no plan or process in place that would help them create new clients and increase their revenue. Having business development process would help quantify those projections.

Developing (or learning) a simple process to support your efforts to acquire new clients will assure you understand a prospect’s business challenge and are able to offer the right solution at the right price. 

Your process should include: 

• Taking time to prepare (emotionally and technically) for a business development meeting or call.
• Developing a style of interaction that builds trust. 
• Establishing a basis for mutuality in the relationship. 
• Asking appropriate questions that help you discover a prospects felt need, that is, the emotional motivation that is leading the prospect to seek accounting or tax services. Exploring the financial burden represented by this need. 
• Identifying the  how the prospect will make a final decision and who else is involved in the decision making process.
• Establishing a clear future so the prospect feels a growing sense of confidence in your ability to satisfy the need

Following these simple steps will provide you a systematic approach to increasing your client base.  It will provide the business development found that will allow you to make continual improvement in your practice and keep building a successful firm.

Contact me with any questions.  If you would like to learn more, join us for upcoming web presentations or consider our 2 day workshop Becoming a Rainmaker: Winning the Practice Development Game.

Put into practice these simple steps and begin your turn around today. 

Comments (0) • Posted May 14th, 2010 at 3:36pm

I’ve often heard two things in life are certain: death and taxes. Taxes, for a tax or accounting professional, are usually a very good thing. Death, on the other hand, is not so good and, without proper planning, can be very bad.

Some time ago, we had a call from a CPA interested in selling his practice. He mentioned that he was ill and would not be able to work much longer. He wanted our help selling his practice.  However, he kept pushing aside our paperwork and focused on taking care of other issues in his life. He mentioned to his wife that he had contacted us about selling, but did not involve her in any planning. When he passed away a few months after our initial conversation, he had never finished the paperwork we required to market his practice for sale.  He also did not leave any instructions for his wife.

Months later his widow contacted us to get the practice listed for sale.  Unfortunately, it was too late.  Most of the clients, who knew of the CPA’s illness and death, had already found other suitable accountants.  As a result, his wife and family received zero proceeds from the practice.

If you die without developing some form of practice continuation plan, your family is at risk of receiving nothing for your business.  Having a plan should enable your family to insure the continuation of practice through an internal buyout with an employee or partner or an external sale.  Whether you draft a plan or not, your family or estate will need to move very quickly.  Word travels fast and within a matter of weeks the value of your practice can decrease dramatically.

To help your family address the issues surrounding the transfer of your practice in your absence, we recommend you write a letter to be opened upon your untimely death.  The unexpected loss of you and your earnings will be hardship enough and handling the details of your business will likely be overwhelming to your family.  Help them profit from your years of hard work by documenting your plan and providing instructions for them to follow.

We are available anytime to discuss this or any concerns you may have.  It may be too early to begin a transaction, but it is never too early to begin planning.

Comments (0) • Posted May 6th, 2010 at 10:44am