The Power of Networking for CPA Organizations

I want to share a story which really illustrates the power of networking for CPA organizations.  In my opinion, it should be a CPA requirement for CPA firms.

I  have  a  friend  who  is  a  CPA.  For  many  years  she’s  had  a  successful  practice  and has  never  had  to  go  out  looking  for  new  clientele.  She lives in the triangle area of North Carolina and has clients throughout Chapel Hill, Durham, and Raleigh.  In  November  of  2011,  shortly before  the  start  of  Tax    Season,  Caroline  received  a  bad  medical  report.  Actually,  the news was  quite  devastating;  Breast  Cancer.

Caroline  was  in  complete  shock.  With tax  season  just  beginning,  this  was  not  the  kind  of  news  she  wanted  to  hear  nor expected.  She  was  what  appeared  to  be,  very  healthy.  With  her  husband  and  three teenage  daughters  at her  side,  Caroline  went  through  chemotherapy,  radiation,  and  a  double mastectomy.  There  were  complications  and  Caroline  experienced  a  much  longer recovery   than   anticipated.   While   all   this   was   going   on,   Caroline’s   CPA   practice dwindled  down  to  almost  nothing.     She  was eventually  able  to  go  back  to  work,  but she  had  no  clients  to  work  with.

In  December  of  2012,  Caroline  went  to  work  for  another  CPA  firm to  help  out  for  the upcoming  tax  season.  Caroline  did  so  well  and  helped  the  other  CPA  so  much,   when April   15th passed,   he   offered   Caroline   a   full   partnership.  However,   the requirement  was  that  Caroline  would  have  to  bring  a  certain  percentage  of  new clients  over  the  next  year  and  an  additional  number  of  clients  over  the  coming  years in  order  for  the  partnership  to  continue.  Caroline  saw  this  as  a  great  opportunity.  Either  way,  she  was  going  to  have  to  bring  in  new  clients  if  she  was  going  to  start her  own  CPA firm  again.  Caroline  was  faced  with  a  situation  she  had  never  faced  before,  going  out  and  getting new  clients.

We  met  for  coffee  on  a  Monday  morning  and  Caroline  explained  to  me that  she  was  very  concerned  that  she  would  not  be  able  to  get  new  clients.  She  has never  had  to  do  prospecting  before and  had absolutely  no  idea  how  or  where  to start.   The one thing that came to mind was her CPA organization or Accountant organization.  But, she was unsure how to use it.  She  complained  that  she  is  not  a  sales  person.  I  let  her  talk  and  cry  about  not being  able  to  take  on  this  task.  She contemplated  the  idea  of  working  for  a  franchise accounting firm.  I  waited  until  I  felt  she was ready  to  listen.

“How  many  new  clients  do  you  need  to  bring  before  next  tax  season?”  I  asked.  Caroline  answered  “Thirteen.”  That’s   13   new   clients   in   8   months.  I   asked   Caroline   if   that   was   possible.   She explained  that  it  was  very possible  for  someone who knows  sales  and  marketing.  Again,  she  reminded  me  that  she  knows  nothing  about  either.  I  explained  to  Caroline,  “We’re  going  to  do  some  Networking.  I  think  you  will  do  very well  as a networker.   We   will   help you build a network of  clients and  referral partners  that  will  blow  that  13  number  out  of  the  water.”  She was about to experience the power of networking for CPA’s and CPA organizations.

I  took  out  a sheet  of  paper  and  I  asked  Caroline  to  write  down the  names  of  10  of  her former  clients.  After  she  wrote  down  the  names,  we  developed  a  letter  to  reach  out to  these  former  clients.  In  the  letter,  Caroline  explained  that  she  is  back  in  action  and in  great health.  She  understands  that  they  are  working  with  new  CPA’s  and hopes they  are  very  happy  where  they  are  now.  What  she  asked  each  former  client  for were  referrals  to  other  people  in  their  spheres  of  influence.    Caroline explained  she would  call  on  a  certain  date  and  time  to discuss.

Caroline  was  very  surprised  by  the  response  she  received.  Of  the  10  letters  Caroline sent  out,  only  2  of  the  former  clients  could  not  be  available  to  speak  to  Caroline.  7 out  of  the  remaining  8 made  referrals  to  multiple  new  contacts  and  2  of  the  former clients  rehired  Caroline  as  their  CPA.  Caroline  was  off  to  a  good  start.  Of  the multiple referrals  Caroline  received,  over  the  course  of  the  next  several  months,  Caroline  was able  to  convert  4  of  those  referrals  into  new  clients.  Caroline  didn’t  wait  for  the  phone  to  ring.  We  still  had  to  reach  that  13.  This was just the beginning of the networking strategy.

For  a  month, Caroline  went  to  multiple  networking  meetings  to  get  a  feel  for  the  professionals attending.  At  first  she  was  very  scared  and  shy.  I  went  with  her  to  a several  of meetings  when  she  first  started  going and  introduced  her  to  as  many  people  I  could that  I  thought  could  be  of  help  building  her  business.  Some of  the  meetings, Caroline found  very  helpful.  Some  she  found  were  not  her  cup  of  tea.  This is one of the things to discern when networking.

Caroline  also  visited several   exclusive   networking   organizations   that   allow   only   one CPA member or firm.  The  investment to  join  the  group of  $500  was  tough,  considering  she was  still  fighting  her  way  back,  but  she  looked  at  it  for  exactly  what  it  was, an investment.  She  narrowed  it  down  to  one  organization,  joined  and  became  a  very  visible active  member  of  the  group.

Caroline  also  became  active  at  the  Chamber  of  Commerce.  She  volunteered  at  events when   she   could.   She   attended   most   of   their   networking   events.   Caroline   was becoming  very  visible.  She also became a board member of her CPA organization.  People  were  talking  about  Caroline  everywhere.  She  began  to know  many  people  in  the  business  community  and  began  referring  people  in  the business  community  every  chance  she  got.

Developing   referral   partnerships   became   very   helpful   in   building   Caroline’s business.   She   developed   alliances   with   other non-­‐competitive professionals   that were  going  after  the  same  target clients.  They  passed  business  back  and  forth  to each  other,  helping to  increase  visibility  and  reduced  the  need  for  cold  calling.

I  helped  Caroline  develop  a  tracking  system  so she  could  keep  an eye  on  the  contact list   she   was   building.  She   purchased a subscription   to   a   Customer   Relation Management  system  that  helped  in  building  her  database.  After  speaking  to  other CPA’s  that  networked  well,  Caroline  determined  when  and  how  to  stay  in  touch  with her  new  contacts.  She  stuck  to  her  system    and  continued  a  steady  program  of  follow up.

Then  the  magic started  to  happen.  One  new  client,  led  to  two  new  clients,  led  to  five new  clients.  Caroline  was  a  superstar  connector.  In  her  Exclusive  Networking  group, she  was  passing  and  receiving  the  most  referrals  every  week.  She  was  experiencing the  law  of  reciprocity.  People  wanted  to  give  Caroline  a  referral.

By  December  of  that  year,  Caroline  had  30  new  clients.  When  tax  season  began, Caroline  and  her  partner  had  to  bring  on  additional  help  just  to  make  it  through  the season.  I  didn’t  see  Caroline  for  a  few  months.

We  had  coffee  together  one  morning  in  the summer.  She  talked  about  being  involved  in  an  organization  that  supports woman entrepreneurs  and  was  becoming  very  active.  She  told  me  she  didn’t  know  how  she had  ever  worked  without  networking  before.  Caroline  was  extremely  pleased  with the   level   of   business   she   was   building,  and then she  exclaimed that the great relationships  she  developed  through  networking  was  a  benefit  she  never  expected.

The power of networking for CPA organizations is tremendous and should be a requirement for any firm that wants to be successful.

Call me, Joe Novara to learn more and hire me to train/speak/motivate you and your staff.

347-623-1773

joe@joenovara.com

www.joenovara.com