{"id":23478,"date":"2021-08-18T08:00:38","date_gmt":"2021-08-18T13:00:38","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=23478"},"modified":"2021-08-25T07:48:15","modified_gmt":"2021-08-25T12:48:15","slug":"referrals-are-key-to-growing-a-tax-and-accounting-firm","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/practice-management\/referrals-are-key-to-growing-a-tax-and-accounting-firm\/","title":{"rendered":"Referrals are key to growing a tax and accounting firm"},"content":{"rendered":"

When you launched your tax and accounting practice, did you think that all you had to do was hang out your shingle and the clients would pour in? I didn’t either, but I wasn’t sure where I could find my first client, let alone how to grow my practice.<\/p>\n

Clients are the lifeblood of our practice; without them, our practices won’t grow, our businesses won’t stay afloat, and we won\u2019t have the resources to solve problems and find the solutions our clients need. Without them, we can’t take on the role of the trusted advisor<\/a>. With all the demands we place on ourselves to run a successful practice, who has time to find clients? You do!<\/p>\n

With so many different ways to build your practice, where do you focus your time and what brings the most bang for your buck?<\/p>\n

One of the best ways to grow your business is through building a referral<\/a> network \u2013 a powerful and crucial strategy you need to grow. A referral network is a group of professional colleagues who send you clients, market your skills, and actively help you grow your business. When someone from your referral group tells a prospect that you are the “go-to” person for a certain issue, your credibility with the prospect goes up, and closing the sale is almost a sure thing. Nothing is more powerful than getting others to refer and send business.<\/p>\n

Again, this is easy, right? Not by a long shot. It takes work, time, and discipline to find, build, and grow your referral network. If you don’t make the time, you won’t have a pipeline<\/a> of clients, and ultimately, you won’t have a business. You need to devote at least 20 percent of your time each week to building and growing your referral network. However, if you stick with it and are disciplined about your approach, you will see many powerful benefits, including more revenue.<\/p>\n

Here are some ways to build your referral network.<\/p>\n

Create your ideal client profile<\/b><\/p>\n

Who is your ideal client? What type of client do you serve best? What are their pain points? What are their goals? What problems do they need your help solving? Is it a gig worker<\/a>? A high-net worth client? Is it a small business in a specific industry, such as manufacturing<\/a> or advertising? Be as specific as possible. As you start to build your referral network, a well-defined client profile makes all the difference.<\/p>\n

Here is an example:<\/p>\n

An ideal client is in her 40-50s. She runs a highly successful middle-market business with annual revenue of $10M, has a 50% net profit margin, and a 10-person team of employees. Her firm has a strong social media presence, and she has worked hard to build her highly successful brand. She has had little-to-no employee turnover because she provides a great working environment, compensation, and benefits. She knows her employees are the backbone of her success. She wants to focus on growing her revenue to $15M in three years and retire in 10 years. Her biggest joys are telling puns and her schnauzer “Peanuts.”<\/i><\/p>\n

Is this profile too specific? Maybe. Do your referral partners know someone who meets these exact details? Probably not. However, they may know someone<\/i>\u00a0who is close to this ideal client profile and fits in most of the details. The more details you provide your referral partners, the better the referrals will be.<\/p>\n

Build your power team<\/b><\/p>\n

It\u2019s time to build your power team to help market your practice. Your power team should be comprised of six to eight people who offer services complementary to yours, but don’t compete with you. The reason to keep this team small is so everyone can focus and strategize providing referrals for each other.<\/p>\n

Questions to ask your potential power team members could include: \u00a0<\/span><\/p>\n