Practice Development Articles
How to Prospect for New Business Clients
New Businesses Are Starting up Every Day
By: Sandi Smith, CPA
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More than 600,000 new employer businesses are created each year in the United States, according to the Small Business Administration, [Note 1] and all of them will need to file taxes and maintain accounting records. In this article, we'll show you how to promote your services to these new business owners with the objective of gaining them as long-term clients.
Hiding in Plain Sight
Most new businesses will file some initial paperwork. Examples include
- Assumed name certificate, also called a fictitious name or DBA (doing business as) filing.
- Sales tax application.
- Articles of incorporation.
- Business license (with a local or state government agency).
Most of these lists are available to the public and are printed in newspapers.
From these lists, which include name and address, you can develop a mailing list of new business prospects.
Start by finding your local city business newspaper. Many cities are covered by a chain of local papers owned by American City Business Journals, Inc. [www.bizjournals.com] These business newspapers print a weekly list of new business licenses, new real estate contracts, new fictitious names notices, and other such leads lists.
If you can't locate a local business journal for your city, check the business section of your local daily paper to find these leads.
Letters Get Attention
Since direct mail has declined significantly due to the increased use of email, its value to get the attention of business prospects may have actually increased. That's why I suggest you send your new prospects a professional-looking letter to introduce your accounting business and services.
The Basics of a Good Letter to Prospective New Businesses
Here's what to put in the letter:
- Start with a sincere compliment. Everyone loves a compliment.
- Introduce your business and include its strengths in relation to the prospect, such as:
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- Let the prospect know why keeping books are important (without talking down to them).
- Give some testimonials or examples of how you've helped other businesses like theirs.
- Offer a free consultation.
- Include a value-add tips sheet.
- Thank them for their time.
We've included a sample letter that you can modify for your own use. We've also included a tips sheet that you'll want to upgrade to your own ideas and customize to your city and state. (See links below.)
Providing immediate value with your tips sheet and customized letter will ensure a stronger response from prospects. Also, if you run into them at the Chamber of Commerce meeting, you'll likely be remembered and will have something to talk about to break the ice.
To increase response, follow up the letter with a quick phone call welcoming them to the community. Ask them if they have any questions you can help them with. That should get the conversation and relationship started.
If new businesses are a target client for you, try these sales tools to boost your client base this fall.
Prospect Letter and Handout
Download and adapt these Word documents as needed for your outreach to new business clients.
Note
Small Business Administration. See statistical FAQs here. The 600,000 figure derives from the growth of new employer firms each year (with 637,100 quoted for 2007, the most current year for which figures are available). Many more new small businesses are categorized as "nonemployer." While not tracked on a yearly basis, the SBA notes that from 2000 to 2007 the number of nonemployer firms has risen steadily from 16.5 million to an estimated 21.1 million, or about another half million new businesses each year on average.
Sandi Smith, CPA, coaches CPAs to succeed in business. She is a frequent contributor to Intuit® ProConnection®. Her website is www.BrainWaysTraining.com.
Last Updated: 09/04/2009
