When you're hungry, E.A.T.

Every small business has, or should have a marketing strategy. If, like us, you sell to other businesses instead of directly to consumers, referrals are likely a huge part of that strategy.

I have seen small business owners put a lot of effort into obtaining referrals: they join networking groups, visit socials, and schedule 1-on-1s with various referral partners (or potential referral partners).

However, many business owners neglect to put any thought into their best potential referral source: current clients.

Now, asking a client for referrals is a delicate science. (After all, you've already asked for and obtained their business; it can feel presumptuous to ask for even more on top of that.) But if you are strategic, while continuing to put the client first, current clients can be an incredible pipeline for new business.

If you are hungry for new business, remember the acronym "EAT".

FSP - Earn laptop

"E"arn

This shouldn't need to be clarified but, in order to get referrals, you need to earn referrals. If someone is giving you a referral, they are sticking their neck out for you because, if you do a bad job, it reflects poorly on them.

This is especially true for clients, who should know better than anyone what level of quality service you provide. And if they are not completely happy with your service, pushing for a referral they don't feel you've earned may actually cause them to reevaluate their relationship with you.

FSP - Ask handshake

"A"sk

Asking for referrals can be awkward, but if you have a client who is thrilled with your services and is already telling you they're happy, it is reasonable to transition to a request for referrals at that time. It also never hurts to have a bonus for referrals, whether that's a discount, cash bonus, or a discounted rate for the client they're recommending. (Note: Some businesses can't receive cash gifts, but might still appreciate a gift basket or being taken out for a meal.)

Beyond asking the right way, you need to be thoughtful in your timing of asking clients for referrals. Don't ask for referrals right at the beginning of an engagement, as they have not yet had accurate time to reflect on your service. Also don't ask for referrals if the client is in the middle of a crisis you're helping to solve; their minds are not in the place to think of anyone who could use your business, and it is a bit manipulative to put that pressure on them when they are already stressed out.

FSP - Teach writing on board

"T"each

If your clients are very happy with you, they might want to send you referrals, but just don't know how. This can especially be true if your business is one that many people don't understand, or if you work with a wide variety of clients.

For instance, many of our clients and referral partners don't initially realize that, though we mostly work with established companies, we also work with very small and new start-ups. Once they found that out, several of my business friends told me, "I have someone who needs your help." The issue wasn't with a lack of referrals, but with a lack of education coming from me.

Keep your clients up-to-date on what you're working on, without being intrusive, and they will likely think differently about how they can refer business to you.


thumbs up

Networking: What's Worked for Us

I know this will probably get lost in the sea of thousands of articles telling you how to be a better networker. But if you're reading this, it's likely that you are at least passingly familiar with The Bookkeeper. We get asked frequently how we grew our business so fast, and networking is certainly a component of that.

When it comes to networking, here is what has worked for us over the last three years.

 

Know your message.

women presentingA friend in marketing once told me, "Don't tell people how you're better. Tell people how you're different." We expended a lot of energy, early on, in trying to present the image we thought a serious bookkeeping company should have. (I, in particular, in an effort to look older, adopted a uniform of all-black, conservative clothing with my hair in a perpetual bun.) People didn't respond to the image we were putting forth because a) it wasn't genuine and b) they had seen it a thousand times.

Success came when we nailed down who we are, specifically. We're the company who does high-standards bookkeeping, but then also uses the information the books provide to do so much more for our clients. Once people found out that we did things like pricing strategy, forecasting, or even just filing 1099s, they got a lot more excited about our business.

Knowing exactly who we are has also helped us pinpoint who our ideal client is. In networking, it's easy to say, "My ideal referral is anyone!" But that really does not help the people who are trying to send you referrals. Yes, we would love to work with just about any small to mid-sized business. However, our ideal referral is really a potential client who is willing to listen and follow guidance; otherwise, they wouldn't be taking full advantage of our services.

Narrowing the scope of your business, as opposed to using a "shotgun" approach, helps your message penetrate deeper in your audience's mind and leave a lasting impression.

 

Mix it up.

Every company officer at The Bookkeeper has membership in a seat-specific networking group (i.e. a group where we're the only bookkeeper represented). Some of us are in more than one. And we demonstrate reliability to those groups by honoring the attendance requirements, but we also try to keep our routine fresh. Changing up our 60-second "elevator pitch" (a short spoken commercial about the company) week-to-week helps, as does bringing visitors or sending substitutes when we're absent. If we were to come and make the same speech week after week, the members of our groups would learn nothing new about us. Sometimes, just wording our pitch a little bit differently can spark something in another member's mind to make them realize, "Ah, I have a referral for them."

We've also found it helpful to break outside of our own groups. Visiting other groups, even if they have a member who might be considered "competition", is valuable. Not all bookkeepers work with all types of clients, and we frequently receive referrals from other bookkeeping companies who don't do exactly what we do. Night networking, which is typically more casual, can be beneficial as well. This is particularly good for those who are nervous about public speaking, as there's never a moment when you have to stand up and be the center of attention. And, since many small business owners are still working day jobs while they grow their own business, you get to meet a different set of people.

 

Follow up!

phone callYes, every bit of networking advice includes this, but only because it is so important. If someone meets 100 new people in an evening, how can you expect them to remember you long-term unless you remind them?

In a networking situation, you're not getting to spend much time with each person. The real work comes after that initial meeting, when you follow up with a 1-to-1. The one-on-one follow-up meeting is where you get to really show the person why you're interested in their business and what you have to offer, to them or referrals.

However, 1-to-1s don't have to be strictly business. It's always good to take a more professional tone with someone you're just getting to know, but it's also great to "touch base" with close referral partners. That can be an office meeting, but it can also be meeting for drinks or going to watch a game.

 

Come to serve, not to sell.

"Show, don't tell," works as well for networking as it does for storytelling. Someone who spends their entire time networking telling everyone how great their services are is off-putting, and has not yet earned enough trust to make those claims believable. Someone who shows that they are a competent and honest individual, by helping others within the group, commands respect.

One of my favorite things in networking is when I identify someone who would be either a good vendor or customer for one of my clients. Without a word of self-promotion, I'm empowered to benefit two businesses within my networking circle. Though it doesn't result in immediate business for my company, I still consider it a win-win, because it benefits my client, and it helps me to make a good connection with someone who could be a future client or referral partner. By referring them to each other, I am demonstrating my value to both.

Serving others also gives them a great opportunity to return the favor. No one enjoys 1-way relationships; you have to show a willingness to put others' needs before your own, and the right people will honor that by sending business back your way. However, that does not mean you help others only with the intention of getting something in return. Which leads to our final point...

 

Be real.

handshakeThere is this tendency in new networkers to act like they have everything together, all the time. And while you do need to be professional and not falling apart during a networking meeting, it is also okay to be honest about business challenges you're facing. Keeping a perfect veneer can be very unsettling to the people you meet, and you will find that you form better bonds when you allow people to help you.

No one has it all together, and people recognize that. You will never lose business just because you're human. If you do, it's not business you really want to have.


business people

3 Questions for Defining Your "Ideal Customer"

Whenever I'm networking and have spoken to someone for more than a few minutes, the question I most dread comes up. No, not, "What do you do?"

 

"Who's your ideal customer?"

 

I feel like that's hard to answer, so I normally make a joke of it and answer like a dating show contestant. "Oh, someone who's a good listener and open to change."

 

But it's not entirely a joke, because, though I do tend to serve businesses of a certain size, I also do want clients to both listen to me and implement suggested improvements.

 

If you're having trouble defining your ideal customer, ask yourself these three questions.

 

Can I help them?Cleaning Service

Most businesses, particularly in the B2B or professional service realms have a certain scope within which they're comfortable. For instance, if you have a professional cleaning service, maybe you don't have enough cleaners to pick up a contract with a large office complex. On the flip side, maybe you don't do residential cleaning, because those jobs are too small for the revenue gained to cover the expenses they require. So your ideal customer is somewhere in the middle.

Or, maybe a certain company just has requirements which are out of your wheelhouse. If you are a business attorney and someone contacts you for divorce representation, they're not your ideal client. You might be able to get some business out of them, but if it's an area in which you aren't experienced, you're probably doing a disservice to you both.

 

Do they want my help?

Remember my date show answer about wanting a client who listens?

There will be certain clients who, though you could help them, aren't interested for whatever reason. Maybe they're a brand new business and they're not ready to outsource any services yet. Or perhaps they're a larger business who can't be convinced you have anything to offer them.

Maybe you've found that clients in certain types of businesses are less receptive to outside advice, due to the specifics of their industry. Or you haven't gotten your foot in the door with that industry yet.

None of this is to say that you can never work with these types of clients. However, for the purposes of referrals, they are not your ideal clients.

 

Nuclear Power PlantDo I want to work with them?

It's a fact of business that certain customers are not worth the hassle. Maybe they want to pay you bottom rates, but they require 100% on-site work (and their office is on 3-Mile Island).

Maybe they've had multiple failed business ventures, and stiffed their vendors on unpaid invoices when they closed shop. Perhaps they are unethical in their dealings with employees or customers.

If a client is going to be a lot of work for little return, or if they could bring down your reputation just by association, they're probably not the client you want to pursue first.

 

Again, someone being a "no" to one (or all) of these questions isn't a reason to absolutely never pursue them as a customer. However, when you are in a networking situation and only have minutes to describe who you're looking for, use these parameters to describe your "ideal" client.