Building a Million Dollar QuickBooks Consultancy

Over the years I’ve worked with hundreds of resellers ranging from small reseller shops to large international resellers. In summary, the bullets presented below summarize some of the more successful hints and tips that you should follow to build a million dollar consultancy.

1.      It is mostly about Marketing, good quality people, and the right mix of people.

2.      A Continuous Marketing Effort should be employed.

3.      Marketing Methods:

4.      Marketing to CPAs:

a.      Their addresses are easily findable.

b.      Each CPA represents about 80 clients.

c.       Clients usually trust/involve their CPA.

d.      CPAs are influential.

e.      Takes years to earn their trust.

f.        Easy to target them.

g.      Avoid cold call, try a lunch and/or shirt.

h.      CPAs can be a royal pain to deal with.

5.      Benchmarks:

a.      To achieve 2 to 4 new clients a Month you need 4 to 6 market activities each month.

b.      Marketing Budget

                                                  i.      < $1,000,000 firm, then 5% to 10% of your revenue

                                                ii.      > $1,000,000 and up, then about 5% of your revenue

                                              iii.      Sales Cycle Tip - Don’t Waste Your Time

6. Biggest Challenge – Finding and Keeping Good Employees:

1. They are the only asset you have.
2. Customers come second.
3. No-hire agreements with clients.
4. Praise and recognition.
5. Communicate what is expected, values, company results, success stories.
6. Interview potential employees continuously – whether you need them or not.

7. Keep Marketing & Consulting positions separate:

1. A Full time marketing person almost always works out – unless you just hired poorly. Show of hands?
2. One marketing person can keep 2 to 3 consultants busy.
3. Shoot for $300,000 in revenue a year.

8. Dedicated Telephone Support:

1. 45 to 90 minute telephone response works.
2. Next day response does not work.

9. Hire an Account Manager.

1. Not the marketing person.
2. Not the consultant.
3. Responsible for client communications, generating new work, maintaining on-going relationship.

10. Staff Mix:

11. A Proper Business Image:

1. Carpet worn?
2. Styrofoam cups?
3. Secretary chewing gum, doesn’t look up?
4. Old newspaper?
5. Voice mail menu?
6. Inadequate web site or no web site?

12. Growth Expectations:

1. Most 2-3 person firms grow to 7-8 persons in 2 to 3 years.

13. Use Proper Billing Rates:

14. Revenue Benchmark:

1. $130,000 to $170,000 per employee (including all employees)

15. Compensation Plans for Marketing Persons:
    1. Salary.
    2. Salary plus Incentive Pay - Problem – If tied to new business, employee has incentive to sell product where it may not fit; If tied to firm profit it encourages the right attitudes.

16. Qualify Prospects:
    1. First year happy for any work.
    2. Second year happy to get paid.
    3. Third year – start looking for better clients.

                                                              i.      Check out account number structure.

                                                            ii.      Interview controller, bookkeepers.

                                                          iii.      View clients as life long clients, not one time sales.

17. Why Clients Leave:
    1. Perceived Indifference – 65%.
    2. Wrong product – 15%.
    3. People did not like each other 10%

(What Do I Mean by Perceived Indifference?)

# 1 – No pro-active advice

# 2 – Don’t thank them

Don’t return phone call

Not delivering timely

Don’t listen

Lack of professionalism

18. Top Ten Seminars - Keys to Success:

1. Many top products covered in one forum.
2. Includes strengths and weaknesses of all products covered.
3. Independent instructors who avoid a pushy sales pitch.
4. Every 2nd or 3rd month, offer a similar seminar in your community.
5. Use the same facility each time.
6. Schedule the same day each time (ie: First Tuesday of the month).
7. Promote seminar in all marketing efforts.
8. Serve breakfast (coffee, fruits, donuts – include both healthy and fattening choices to appeal to all people.
9. Don’t be discouraged, Give it some time, 6 to 18 months.

19. Common Mistakes When a Reseller Tries to Produce Sales Seminars:

1. They get discouraged when nobody shows.
2. They don’t stick with it, therefore it does not “catch on”.
3. They fail to market it with ads, telemarketing, direct mail, web site, literature, articles, radio, etc.
4. Screen is too small, poor quality projector, too “salesy” – audience doesn’t know what to believe.
5. Too long winded – s/be no more than 3 hours, feed them, shake their hand, listen to them.

20.  PowerPoint Tip - Uncheck the checkbox labeled Popup menu on right mouse click, so the left and right mouse buttons will take you forward and backward.