How can improve/what should I change?

How can improve/what should I change?

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I set up a new practice earlier this year and I am really struggling to get clients.

I am currently operating from an office at home. I have been mail-shotting potential clients in the area, which has got a success rate of about 1%. I have also met with local bank managers to introduce myself and ask for referrals etc. On average I am taking on just 1 client a month. Once I have met with clients I have no problem at all converting them to clients - it’s just getting contacts to start with.

I am using a professional phone answering service with an 0871 number so that all calls are transferred to my mobile giving the impression of a staffed office.

Cash flow is now getting very tight and I am unable to secure further funding.

I am starting to feel a bit disillusioned with what I'm doing and will be grateful for any suggestions as to how I can boost client numbers. I know I have to change something but not sure what/how.

Replies (22)

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By spayne
30th Oct 2008 12:28

Adverts ??
When I started not so long ago I decided to

Advertise in local papers - my area does 6 weeks for £150 - first client more than pays for it - keep the advert going for at least 6 months
Do not be afraid of taking anybody on - you have to take what you can get
Make sure your advertising is personal - the advert should say who YOU are not the XYZ accounting Co - people like to talk to a name and make sure you answer the phone personally using that name - do not use a mobile number , use a local number so that people can see where you are located
Yell etc are all very well but generally a waste of money until you have enough clients to pay for it

If you are running short of cash do subcontracting - its not pretty and not well paid but it is money and will keep your hand in

Good luck

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By RogerNeale
17th Oct 2008 13:28

Phone number, Networking, Plus....... STICK AT IT !!!
The telephone number is definitely one key area and you have resolved that now.

Second is networking which has already been suggested.

Third is getting your practice name put around far and wide.

Find out from your local Business Link office the names and numbers for all the local business clubs/groups that are around and go to meetings as a guest to find out if they're suitable for you.

Go and visit all the business support agancies that you find from the above.

Then go and visit any local colleges or universities where they do business studies courses and ask them to introduce you to any potential new business owners. (many people thinking of starting a business will go on these courses.)

Another option is a leaflet drop around all your local housing estates, especially the ones where the big houses are.

Advertise and run a FREE workshop on small business accounting, you'll be surprised how many wil lattend because it's FREE.
But.......run it when people can get to it NOT between 9:00am and 5:00pm


Good Luck .

Regards
Roger Neale

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By julieraikes
17th Oct 2008 13:09

Network!
Hi, best thing to do is get networking. Try 4Networking.biz - they are national but you can get a passport and network at lots of breakfasts in your area. These are small and new businesses so just your market.

Have a look at their website www.4networking.biz and book in to go along to one to try it - you can try 3 times before committing. They are also a very friendly, relaxed bunch so if you havent done much networking before its a good start

On another note - stay positive. I started my business in January and what a culture shock but it will work, you just have to scrape money from anywhere to keep going. Speak to Accountants as well - they are always on the look out for bookkeepers to support them.

Good luck!

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By User deleted
17th Oct 2008 12:26

Anonymous secrets!
Hi
i have been focussing on building my own client base for the last year and have used teh following tools:
1. read local newspapers and keep eyes open for new businesses,. Most new businesses state that the have just opened. It is easier to secure a new client if you are the first accountant they speak to. It is nearly impossible to come between an already existing client:accountant relationship no matter what you try.
2. meet with your local business advice centre. I gave a few talks about tax stuff e.g. 2008 budget. You get a good audience at tehse things who are all in awe of your knowledge so its a good way to make a positive impression.
3. find out about other accountants (especially ones getting older and are thinking about exiting). There is no harm in writing to them and let them know you are nearby if they are wanting to shed any clients...

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By User deleted
15th Oct 2008 16:46

Thank you all for the further thoughts and suggestions - I think it's fairly clear no easy answer /quick fix but all the ideas have been so helpful. I quite like the idea of a Sheila's Accountancy!

If its of any interest to anyone else reading these postings in a similar posistion having done some research on the net I have found some great information/tips at www.marketingforaccountants.com - very much geared to the US market but still very relevent and useful.

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By geoffpym
15th Oct 2008 09:53

Sheilas wheels
Hi Jane

Just a thought, as you practice is quite young, you could target female owner managed businesses specifically, just as the insurance firm targets female drivers. I am sure that their are quite a few businesses out there that are driven by females and would appreciate a female accountant rather than another bloke!

This approach could take you beyond you immediate geographical area. I m not suggesting this route only. I think niche marketing is miss understood, its not so much tageting one area but breaking down your overall target market into groups and treating each as a niche.

Good luck with your practice.

Geoff

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By AnonymousUser
15th Oct 2008 09:45

Advertising
Although not what you want to hear, my experience was that the paid advertsing through Thompson (with a web-site for people to look at) was the best way to build quickly. I spent about £3k per year for the first two years and got to about 60-70 clients. I had the biggest and first listing beacuse my business begins with an 'A' which I think helped and it was carefully pitched to appeal to smaller clients. I haven't spent anything since then and my business has doubled with referral work.

Getting to a living volume of fees is the ONLY barrier to entry in our market and the sooner you get there the better. £6k on advertising was, however, a lot cheaper than buying a block of fees! I also had a vitual office and meeting facilities at Regus at the begining which again I think was invaluable. I now have none of this expense but as others have said ... the clients really don't mind once they get to know you.

Good luck!

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By pauljohnston
14th Oct 2008 13:46

Well done every poster
I agree 0871 are a big NONO

If you want a local number you could consider using a internet based system I use www.voxhub.com based in Bedford. Through them I have also invested in an 0800 number. The actual costs are now very good when compared with the past. Just make sure if you follow this route that you quote both numbers.

Good Luck and there is no easy fix. You mayb consider it worthwhile visiting out other one man band accountants near to you. This could provide some overspill work and if he or she is thinking of selling up you could get first bite at the opportunity.

If you want a professionally answered phone you could try yourofficeand pa which I am trying out on 0844 44 80 680 (Sarah)

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By David2e
14th Oct 2008 13:15

In your hands
Hi Jane

Many good suggestions here which I'm sure you've picked up on already.

I do agree 1% is not a bad response rate, though I know a bookkeeper that's been getting 3% response without spending a lot or even following up with a phone call (something which I'd also recommend if you want to increase your success rate).

Little things such as personally address letters, hand written envelopes can also help with your response rate.

I'd also emphasise the networking, and getting business cards out there. Build your contacts and your relationships with those contacts.

I'm not sure what sort of area you live in, or what your letter/mail-drop contains but does it address your target markets needs? Have you considered it from their point of view, and what would attract them?

I know savings, personal service etc all sound great... but if you're targeting mostly trades what might it be that appeals to them? Is it the fact they can work out on site all day without worrying about accounts in the evening?

If it's mostly office-based services something different might appeal more to their needs. Could it be processes to reduce their time spent? Or to provide managers better reports which they understand and will help with their decisions?

It can be quite powerful targeting a specific problem and presenting a solution. Something that may change depending on where you're targeting so a few different versions may be needed.

And when mentioning your services, it's all well and good to say bookkeeping, management accounts, year end accounts but if you can express it in a way that means something to them (eg. provide samples), from the way they see it and the difference it can make - that's another plus.

Hope that helps a little more and best of luck!

David Toohey
The Accountants Circle

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By User deleted
14th Oct 2008 10:22

Thank you very much Jack and Peter for the added suggestions.

Jack I really appreciate your suggestions - I am going to get some mailshots done today rewritten using the points suggested. It may be that in trying to give the impression of being a larger practice, which I had done, it has actually had the opposite effect. It can be easy to overlook the obvious when your so close to it and on your own - they are after all my USP's!

Thanks again all.

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By petersaxton
14th Oct 2008 06:27

Advertising
The most effective marketing I have found is:
Website with a good position on Google,
Yell and Thomson Directories paid for adverts adverts both in the books and online. They don't have to be big but they are better than the free adverts, and
Join the accountants organisations of software suppliers

I must spend close to £10k per year on advertising on the above. The point about them is that it is where people look when they want an accountant. Once you are more established you will pick up more from referrals.

Do you have a sign outside your home?

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By User deleted
13th Oct 2008 21:34

Emphasise the positives
Hi

I have also set up in practice in the last year and seem to be attracting on average one client a week although this can depend obviously on circumstances, qualifications, area etc

I have prepared mail shots for the local area and contacts that I have built up during my career. I work from home as a sole practitioner and so I sell my positives in this being;

1. Cheaper overheads for us = Cheaper fees for you
2. Qualified/Senior accountant preparing your accounts start to finish to ensure the best service.
3. As a smaller firm you are able to offer a more personal, professional service.

Enclose a business card and a list of the services you provide.

I have set up a website using Microsoft Office on the internet. I have designed myself and costs £8 a year to run. It won't win you clients itself but makes you look more professional and looks good on the business card. You get an email such as [email protected] which is also better than the hotmail address I was using.

Do the freebie lines (as others have said) on Yell etc and also enter your business on other websites such as freeindex. This helps your google position. Dropping the 08 number is a wise move too.

Also, get out and about with your business card to the local businesses such as newsagents etc. Asking can you leave some cards on the counters will be free publicity not only to that business's customers but also the business itself. I have yet to be told no when I have asked and have picked up half a dozen or so clients from this.

If you haven't got a business card go to Vistaprint as they printed about 250 tidy quality business cards for us and it cost about £7-£8. They aren't the greatest but they more than do the job.

Finally, keep being optimistic about your venture. Your client base will only grow if you offer the right service and you need to be confident when meeting a client to win the client so to speak.

Good luck.

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By petersaxton
13th Oct 2008 16:59

Present it as a positive
Faerie Girl
I agree totally about what clients look for. I always say that with bigger practices a new client will talk to an impressive partner who will then pass the work to a trainee. Some trainees are good ... some not so good ... Unless it's pure data input I say I do the lot. I would also ensure the data input was accurate, too!

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By User deleted
13th Oct 2008 16:17

THANK YOU
Thank you all very much for the very positive comments and suggestions.

I have rung BT and ordered a new number immediately. I used the 0871 intially for 2 reasons - first I envisgaed moving to an office quickly and hence thought it would save changing the number and also as I had so many problems with BT trying to get a landline when originally I set up. I think on reflection it was unwise.

I was starting to feel like I was hitting my head against a brickwall but am not one to give up. Thanks again all.

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By AnonymousUser
13th Oct 2008 16:03

I agree it's hard work. you need a plan of action
I agree it's hard work and don't want to repeat the other postings, you also need a plan of action.Firstly your 1% response rate is pretty good. A lot of direct marketing articles claim higer rates but those that get higer response rates have deeper pockets, and can afford to buy lists. I suggest you look at your situation in the sense what services are you providing and what services are most required in you area.
From what you have written I would suggest possibly that you either get some temporary or part time work to help your cashflow, after all the few clients that you have could quite easliy be serviced on a part time basis. If you have some capital I would suggest buying a block of fees or buying a small practice, if money is tight try asking the vendor for an " earn out". At this time of year if you offer tax services, accountants in practice get a lot of tax work and may be able to subcontract some to you. This is true bearing in mind that paper returns have to be in by the end of this month.
I hope this is useful. Most of all be positive, good luck, never give up..

Mino

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By User deleted
13th Oct 2008 14:34

Hard work
In spite of what has been suggested on this forum from time to time gaining clients is hard work and takes time. I bought a small block of clients and built up from there but is does not happen overnight.

You can just use call divert i.e the person dials you home/office number
but you have it on divert and it rings on your mobile. nobody is any the wiser.

Maybe you could get a part time job to keep the cash flow going

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By petersaxton
13th Oct 2008 13:37

It's so difficult starting from scratch
I had a full time job and worked for clients on evenings and weekends and then gradually cut back the day job. It took years but at least I didn't run out of money.

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By User deleted
13th Oct 2008 13:33

Local advertising
I advertise in a small advertising mag that gets delivered locally each month - I take on around 1 client per month from this as it's where all the new traders look. Also took on subcontracting work when I first started out as already suggested. Most work now though comes from referrals. Agree with getting rid of the 0871 number too.

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By AnonymousUser
13th Oct 2008 13:32

Get rid of the 0871 now!
0871 numbers are very unpopular, I will refuse to call one unless I absolutely have no choice and I know I am not alone in this.

You don't need to present as having a staffed office - some people actually want a one man band, they want the personal service. People can usually see through a 'looking bigger than I am' act and it won't hurt to be honest that it's 'just you'.

Local directories are great, but I wouldn't get more than a free line entry in Yell or Thompsons - though definitely get the line entries. And register on Google Maps.

Good luck :)

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By User deleted
13th Oct 2008 13:16

Do people know you exist?
Apart from direct mail shots, are you advertising on yell.com / yellow pages / local gazettes etc? You may be missing out on new businesses seeking their first accountant and also individuals requiring personal tax return & other non-business related advice.

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By geoffwolf
13th Oct 2008 13:11

why 0871
I agree with previous comment re phone number.
Get to know other trades and profession by attending networking events.

Try business link

Obtain sub-contracting work to fill unused time.

Make existing clients aware that you can take on work from their contacts.

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By User deleted
13th Oct 2008 12:58

do something about that phone number...
0871 numbers put people off - they certainly do me.

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