How to Start an Accounting Business Without a Cpa
Pricing to Keep Clients Coming Back Again and Again
Hannah's firm is modeled on a fixed fee engagement. It's basically like a subscription to work with Hannah. And the monthly fees are all-inclusive:
- Quickbooks review
- Monthly statement production
- Unlimited access for questions
- Tax planning
- Business tax return
With this, clients aren't worried about the big bill coming in the mail. They know exactly what they're paying and what they get.
Her price is based on how much Hannah estimates they will utilize her. This is a risk to estimate, but you can always raise the price later. She looks at their Quickbooks and bank statements to determine how deep she will be each month. The more she's doing, the more she charges.
One client wants her to touch their books every business day. For that, Hannah charges $3,500/month. That's cash rolling in each month like clockwork.
Normally, she'll close 80% of prospects and rarely gets pushback on price. For the most part, prospects aren't leaving their old firm because of price. It's more due to service. That's why Hannah will send gifts and notes to clients to show her appreciation.
However, if they do balk at your price, Hannah recommends a secret. She tells them all of the services that are excluded at the low rate. When she does that, the prospect realizes what they could be missing out on and typically agrees to the regular, higher price.
Push your service and how you will take care of them, and they'll be a client for a while. And they won't push back on fees.
How to Get New Clients when Starting an Accounting Firm from Scratch
Right now, Hannah doesn't anticipate taking on new employees. She's pretty happy with her client roster. Right now, she has around 19 clients. Her goal was to get to 20 so she's right at that point. She's also working the number of hours she wants and making good money.
That's all because she's adapted one of the most unusual, but effective, ways to bring in new clients.
Hannah does admit she's been in her town for most of her life, so it does give her a leg-up, but don't disregard what she's about to reveal:
She volunteers, and that's where most of her clients come from.
It's pretty incredible; we hadn't heard this before. She volunteers at her church (where many wealthy people attend charity events). She also volunteers for her local hockey teams (she loves hockey). She gets to meet people in the NHL and business owners tied to those owners. She estimates 14/19 clients came from volunteering her time.
Then, as you volunteer more, people recognize you around. They ask what you're doing, and you tell them you're in accounting. Suddenly, these people know someone who knows someone. It's pure genius networking.
She's used over 300 business cards because in town people are connecting with others.
Look around for a volunteer opportunity in your town. It might be the missing link for finding new clients.
Hannah says she's growing faster than she thought, and it's incredible to see.
Update From Hannah
Since we're nearing the end of tax season, here's a tip to keep in mind:
Don't get so busy during tax season that you can't talk to new potential clients.
This is the time of year where business owners are looking for help, switching accountants, tax compliance, etc. Don't get so busy that you don't have time for those potentials. Remember, clients generally switch accountants due to non-communication, so don't give the impression right off the bat that you're going to be just another non-communicative firm. Take the time, impress them immediately, and you can have a life-long client.
For more words of wisdom like these, listen to the full episode!
How to Start an Accounting Business Without a Cpa
Source: https://jetpackworkflow.com/blog/start-an-accounting-firm-bank-6-figures-first-year/