Discussion:How to handle this client
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Discussion Forum Index --> Business Growth Community --> How to handle this client
| 19 November 2007 | |
| Hi all,
I have my first official/unofficial client. I have been using the new business listing and calling around. Most either have Accountants or are doing the records themselves. I find that what I am calling the 'New Business Finance Package' for do-it-yourself owners is gaining a lot of traction. That is basically the new client setup that most of you would do at a slightly higher rate....COC setup, accounting system setup, etc. I have had several people very interested in that, just no biters yet. I just received a call from an electrician I talked to on Saturday. He was busy and told me to call back after 5, which I did. He didn't answer so I assumed that I lost him. Nope, he just called back. His wife is going to do the bookkeeping for him but he wants to incorporate and wants some help with deciding how to do that (I am thinking S corp or LLC). With a small business with no employees, I don't see him making enough to really make a huge difference. The S corp would provide the ability to consider that above a 'standardized salary' as a dividend and avoid the SE tax on that portion. However, that invites more IRS scrutiny. Thoughts? I may get the business for filing the corporation and it looks like I will get their tax return. I will give them a customary free consultation. I don't, however, want to disclose too much information for fear of telling them everything they need to know for free. Likewise, I don't want to seem like I am nickle and diming them or being a vulture. How do you guys handle the first consultation and hook the client? Thanks, Michael | |
| 19 November 2007 | |
| Check that, the COA (chart of accounts)....it would be helpful if their Accountant could spell, huh?
Michael | |
Bottom Line (talk|edits) said: | 19 November 2007 |
| Since the wife's going to be doing the bookkeeping, you don't want to criticize her abilities (especially when you don't know what her knowledge level is). Find out what accounting program she'll be using and you can wing it from there. (Quicken is not a business accounting program but many don't know the difference between Quicken and QuickBooks.) Just because they want to do everything by hand, doesn't mean that they are clueless. Try to talk to the wife and find out her knowledge and interest levels. (Sometimes wives are volunteered for things that they don't want to do.) Throw in a quarterly review. If everything is in good shape, should only take you about 15 minutes and you've made a contact to keep the client connected to you. If it's a mess, you'll need to clean up the mess and do some training. Better to do it during the year when you have time and everything's fresh in people's minds instead of during the tax season crunch. | |
| 20 November 2007 | |
| No, not at all. In fact, he said that it would be next week because of the holiday before we could meet so I told him that in the mean time I would send a letter out with a more formal introduction to my firm. In that letter, I mentioned that I would have some information for HIM and HIS WIFE to review regarding incorporation options. He may twist the wires, but SHE opens the mail! She's the key to this client situation :D
He said that they were going to be using quickbooks. I offered them: -Incorporation services -Accounting button up services (month-end, year-end, reviews, etc) since she is doing the books -The business starter plan (helps them get started and standardized and meet IRS/State requirements) -Personal financial planning I hope to convince them to let me guide them in incorporating their business, and I will pull out the "Let's get started now (so that I can have some revenue) with the name search and reservation process but wait to file until next year so that you don't have to pay the fee this year and renew the LLC in the first quarter of 2008". Show them how I am looking out for them. He definitely looks like a hot lead, albeit small and not a lot of revenue. Since he is an electrician, it might help me land the other electrician that told me to call back at the beginning of the year. He has a brother and father that currently drive a long way to their accountant's office so I might get them too. Michael | |
Bottom Line (talk|edits) said: | 21 November 2007 |
| Looks like a great lead! A line I've used on car mechanics (and it's the truth) that are hesitant to pay for my services is: I could could change the oil in my car but it would take me all day OR I can pay someone to do it that knows what they're doing and use the rest of the day to make money or spend with my family. Another comment is: I'll ask - How long does it take you to do the books each month? They'll usually grumble about it and say a couple of days. I then ask how much money they would make in that two days if they were turning wrenches. They'll usually say around $400. I then counter with that I could do their books for $150-$200 (whatever amount I've determined). They wouldn't have to worry with doing the books which always gives them a headache, it will be done right and they can actually make more money by paying me to do their books. | |
