I have a problem

[gts1330]

I have no business.

I went out on my own this tax season. I was with a Big 6, then Big 4 firm. I have 12 years of experience and living in a new town. The town, which is also the county seat, has a population of 20,000, the county has a population of about 172,500. I am about 30 to 35 miles from a major metropolitan area.

I have a MBA in Accounting, a MS in Taxation from a prominent university in NY. I spent most of my time working on very large 1065's, 1120 REIT's and less, but significant time on 1040's for high net worth individuals. My target market now is just 1040 work small returns to more involved returns to get started. I have checked my pricing against the local Jackson Hewitt and Block and I am well below that for now. I have invested in tax prep software and offer e-filing.

I have put an ad in the local paper and passed out a lot of business cards but I haven't even received one phone call. I started my marketing 6 or 7 weeks ago.

Any ideas???

By the way, TheTaxBook Deluxe is great. Excellent resource.

[taxmandan]

You started marketing about 8 months too late for this tax season. Newspaper ads don't generate much interest, and pricing below the low price leaders means your service isn't worth much in the eyes of the public. You're looking at an entirely different market than you had in an accounting firm. Do you offer RALs? The market you seek wants those. The low price market wants coupons, discounts, some sort of a "deal" for low prices. If that's your target market those are things that will draw them in. Not now though, that market has been in and gone for this year. They file late January, early February.

Yellow page ads have been the best source of new clients for my office, next to referrals. But referrals take a long time to build a business.

Thru the summer, maybe offer some free one hour seminars on general tax topics that will attract folks to your office. 'Divorce and taxes,' 'Taxes and death' something along those lines.

Good luck, it takes 5-7 years to build a business from scratch to a sustainable level of activity.

[gts1330]

I can't just sit around...

Thanks taxmandan. I am way behind in the marketing dept. but I still would like to try and make a $'s this tax season. I'm thinking about sending out some flyers from a mailing list. I may even go door to door just handing out business cards, flyers and introducing myself to get my name out there.

I can't just sit on my hands the rest of tax season. It doesn't feel right to be sitting around this time of year after the extremely hectic pace that I have been accustomed to for the past several years.

Maybe I'll stalk the local H&R Block/Jackson Hewitt shops and hand out my business and introduce myself before the client goes in...LOL

[JohnH]

Simulus Returns

Can't believe I'm saying this after all the discussion we've had about Stimulus Returns. However, if I were in your shoes I might consider contacting the local Meals on Wheels or other senior programs (community centers, churches, erc) and offer to prepare rebate returns for seniors for a small fee or even for free.

Doing them at no charge and telling them you'd appreciate a referral might generate some business among their younger working family members or even among other seniors who do have filing requirements. I'm not promoting this as a first-choice practice builder, but you did say you are sitting on your hands...

You said you are in the county seat, so there must be plenty of lawyers in town who would like to know there's someone with your experience close by. They all probably have working relationships with existing CPA's, but they generally aren't known for their loyalty.

[erchess]

more ideas

If you have the time for seminars now give seminars now. The suggestions already made are great topics but I would also offer one on the upcoming stimulus payments.

I get most of my business from fliers handed out at upscale health food grocery stores. I get permission to be there by booking talks in their community rooms. I pay teens from my church youth group to dress as if for office jobs and approach people with the question "Are you happy with your tax professional?" Yes just gets a smile and a thank you but No or I don't have one gets you my flier. The pay for the young people is $25 per two hour shift. I print the fliers on my printer so we are talking chump change for that and each two hour shift has gotten me from one to three returns. The best days are Wednesdays and Saturdays.

Also, everyone who would speak to you if they passed you on the street should know that you are a tax guy, what sort of returns you are looking for and a bit about your background.

A display with several of your brochures should be in every place frequented by your desired clients that you can get permission to leave it. Just keeping these stocked will take you half a day each week but the good news is that you can do your other personal and business errands on the same trip.

Register with the BBB (they won't let you join yet but they would appreciate knowing you exist and they will tell inquirers that they know you exist and they have had no complaints. Join the Chamber of Commerce and attend every event you can.

[Bonnie]

I go to the local branch of the library once a week for an hour and answer any tax questions anyone has free of charge. The library advertises this and I usually gain a customer or two because of doing it. This year I am scheduled for 6 weeks. Sometimes no one comes in but it's a nice quiet time to catch up on other stuff I take with me. Last year an elderly lady needed help because she had a 1099-Misc from handing out fliers once a month. I tried to explain to her how to do it, but she couldn't catch on so came to me and I did her return. She'll be back every year as long as she is doing this type of work. My best advertising is satisfied customers but that takes awhile to develop a customer base. I give a $20 discount to any customer who refers someone. Makes them more willing to tell others about me. I learned that from JH. A sign on your vehicle, either magnetic sign or window clings gets people to notice who you are. If you have a financial advisor leave business cards with him or her and ask them to referr people to you. Real Estate agents are good sources of referrals as they are usually the first professional person someone meets when they relocate. I'm fortunate, I do returns for several Real Estate agents and they give me referrals of their customers. Hope this helps.

Bonnie

[gts1330]

Wow! A lot of good ideas. Thank you very much. If anyone else has a marketing idea for me please let me know. I need to get this business off the ground. Thanks again.

[Snaggletooth]

Not Conventional

GTS, conventional marketing methods will NOT work in our business. None of the marketing ideas you have done will work, but some of the other members have given some solid advice as to what works for them.

Your credentials are excellent. We welcome you to this forum and hope to take advantage of your knowledge and training.

But it's like that old Thomas Gray poem about the flower in a remote location that blooms but "wastes its fragrance upon the desert air." Your potential clients will admire you for your education and background, but what they are interested in more than anything else is money and convenience. You've moved to a new town. (By the way, you have just described Murfreesboro, TN). No one knows you. This must change.

You must meet and get to know people. The more personal, the better. They have to know YOU. These people regard flyers as junk mail. You also have other acumen besides taxes -- you can help people who need accounting, need payroll, etc. Find a banker who needs an accountant to help a company that is in financial distress, and make doubly sure you have assurance that you will be paid. Do a five-year business plan for a bank customer who must have one to qualify for an SBA loan. Volunteer your services as treasurer for a local non-profit that has high visibility. Spend a week down at VITA.

Don't turn down easy forms and short forms. The young couple filing them may have parents that own a business. Remember that most clients of business tax preparers are very entrenched. They don't want to change unless they have a reason. My annual retention rate is some 93% - and this includes people who move off, retire, divorce, or die.

Another thing that has worked for me, and retained customers for me early on when there were other more knowledgeable and experienced tax preparers available. And that is to treat your client's taxes as if they were your own. Have genuine concern for clients who have to pay even if they deserve their fate. Aggressively pursue refunds, 1040X stuff, as if that tax return was your OWN. Go the extra mile to chase down an extra $50. Whatever it takes.

I remember when I got started. I used a network of good friends to help me -- I was not in a new town. Worked very very hard for low fees (you can't imagine how dirt cheap HR Block was back in the late '70s before RALs) I spent a ton of money on flyers and coupons and they didn't really work. In those days you could deduct things on a Sch A that the average Joe never dreamed of. If I had it to do over again, I would charge more because I think clients are negatively impressed by low fees, even if they save them $.

I sincerely wish you well. It is harded now than then. But you've got a wide range of skills in your favor. Consider tax work as a complement to your other skills. And visit us often on our message board.

[ED SMITH]

Go to library and get a copy of "Guerrilla Marketing" by J. Conrad Levinson. It is full of good ideas and ideas on how to create ads and what words to use and what words to avoid. The book is a goldmine.

He has written about a dozen books, but I think the 1st GM is still the best. You will also find out why only 7 weeks of newspaper advertising doesn't work.

His credentials - he created the Marlboro Man and the Fly United commercials.

[myerstaxes]

True it does take time

I retired from IRS four years ago and immediately got my EA license and started my practice from home...Funny thing is that HRB tried to get me to work for them for pennies and told me that I would never get a client base working from home...It has taken time, but I am up to about 150 clients now (I am not trying to be real big I want to enjoy a practice and freedom of retirement at the same time)...Anyway, I have taught VITA, Small Business Workshops at our local county small development centers...also I have joined networking groups and garnered some support and referrals from there...In my town we have a local community website where I advertise as well, I post tax tips on it throughout the year...Word of mouth in this business appears to do wonders, each one telling another and from there it grows slowly but surely...Good Luck, find those groups that you can speak to at no charge, I recently did a free presentation to a Child Care provider group, out of 30 ladies I got four new clients...Drumming up business as has been said is a year round thing...

[Acownt4it]

Another thought

If there are businesses in town that would like to give their employees a little perk: ask if you can set up a table in the lunch room and do returns on site. The employees drop them off in the morning or during lunch and then pick them up after work.

NETWORK with professional groups in your area. That is huge for me. Many of my business referrals come from the business networking group I belong to.

Good luck. This is my 6th tax season and my business is booming. It took 3 years for me to build it to 150 returns and this year I will do well over 350 (business and personal). 98% of my business is from referrals.

[oceanlovin'ea]

Appreciate suggestions

You have all given some good suggestions. Some I might try after I get all these returns finished that are on my desk right now.

My business grows some each year from referrals but I would like it to be just a little bigger. I'm doing around 125 returns a year now plus I have about 10 businesses that I do either quarterly bookkeeping or just payroll or help with some of their financial needs. I think I could handle around 200 returns a year by myself. I don't want to get to the point that I need to hire another person to work for me.
I could hire my daughter to answer phone and make appointments for me when I are really busy during February. My husband helps me too.

So I appreciate some of these suggestions. I will mark this thread and revisit later.

Linda F

[Lion]

Businesses

Visit local small businesses and not-for-profits. Those that are outgrowing the owner-do-it-all stage are ripe for your skills and might need year-round services too. Plus, you'll get a business return and personal return at one time! They will have employees, customers, volunteers, etc., who will meet you and perhaps become your clients too. Introduce yourself to lawyers and bankers and brokers and realtors and leave cards. Let everyone you meet know what you do for a living. Answer questions free.

[taxxcpa]

Office visibility

If you have an office with good visibility, people will come. However, you pay a lot to rent the office. If you are in an office building and your office is not visible from the street, you won't get much drop-in business.

When I had an office, I got new clients who saw the office sign. Now I work out of my home and only get new clients through referrals.

[Burke]

You said you are in the county seat, so there must be plenty of lawyers in town who would like to know there's someone with your experience close by. They all probably have working relationships with existing CPA's, but they generally aren't known for their loyalty.

I agree.
If it were me, I'd be contacting every lawyer and CPA, EA that you can find and see if they would put you on in their firm to help them out this year. Do that for a season, maybe even two, and you will eventually be able to branch out on your own.