Few ambitious accountants have ever chosen a career in sales. And yet, almost all accountants need to be able to generate income. Inevitably that income will come from clients and you will have some, possibly a large, responsibility for helping to generate those ‘sales’.

My friend, Richard White, describes those of us who are in this position as “Accidental sales people”. We didn’t choose to work in sales but it is still an integral part of what we do. Richard’s view is that we will be more successful if we adopt a ‘soft-selling’ style rather than attempt to emulate the salespeople whom we hate. You know – those pushy people who try to persuade people to buy things they don’t want.

We need to ensure that our sales techniques are appropriate and that our prospective clients do not feel we are pressurising them to engage us for services they do not want. For this reason traditional sales training techniques are unlikely to be very effective when trying to help ambitious accountants enhance the results of their networking and client development activities.

I have long admired Richard’s ‘soft-selling’ techniques as they are very similar to solution based selling and consultative selling. These are the approaches that I learned some years ago and still favour. The essence of all these concepts is to work with rather than against human nature. Rather than attempt to push your services, soft-selling demands that you first understand the primary motivations of your clients and prospective clients. Then, and only then, you should be able to make your services seem so compelling that they attract your clients to want to engage you.

The skills you need to develop are less a hard nosed approach to selling and more an understanding of human nature and a degree of patience. 

Last year Richard wrote the ‘Networking Survival Guide – the essential hands-on manual for winning more business and gaining new sales leads’. In it he demolishes the myth of the ‘elevator pitch’ and explains what you can do to stand out and be remembered as distinct from every other accountant. He stresses the power of stories and highlights the benefits of thinking this all through. Spend some time getting this right and you will start to ‘accidentally’ gain referrals and sales from your networking activities. It won’t happen overnight though. But it will happen a lot faster than if you network aimlessly. Richard encourages a clarity of thought that could benefit many accountants whose networking is proving to be less effective than they would like.

I was surprised recently to see a firm of accountants being applauded for the fact that partners were given goals regarding client time. This is hardly newsworthy. Then I read more closely. The partners in this firm are measured in terms of three categories of time:

1. chargeable time (as has long been the case in many larger firms);
2. contact time with their clients in a relationship management capacity (with a view to scoping ABOs – Additional Billing Opportunities); and
3. time spent with prospective clients.

The most significant issue here was that the category three time was rated as important as chargeable time. This is worthy of applause, although it is open to abuse if not carefully managed. That though is indeed a management issue. It is absolutely right to record and measure the time. To consider the  LONG TERM impact of attending a regular networking group and comparing this with more generic and random networking events. In both cases it’s important to also spend time and track the time spent on follow up 1-2-1 meetings with prospects and referrers. Focusing on short-term results is to misunderstand the way that business networking and referral marketing work.

Long time readers of this blog may recall a post I wrote 3 years ago: Are accountants as ‘stupid’ as lawyers? In it I repeated a David Maister story that is relevant here. David noted that there is general agreement amongst lawyers (and most other people too) that it is generally easier to win more work from existing clients than it is to get engaged to provide services to strangers (new clients). “Why then,” he asks, “do we risk upsetting clients by treating all the time we spend with them as potentially billable? And why do we only consider ‘billable’ time to be of value”

I would put it this way:

A firm will encourage and motivate the partners to devote time to those activities that they believe are being recorded and measured and rewarded. I stressed the importance of looking beyond fees billed in my 2006 blog post: Fees, fees, fees.

In the traditional model all the focus was on ‘billable time’. More sophisticated models take account of how much of such time is actually billed.  This then requires careful monitoring to ensure that write-offs are fairly allocated to the partner’s time costs vs that of their teams or of specialists who have been working on the same clients.

When I was at Touche Ross (now Deloitte) many years ago they already had a time recording system that allowed client time to be recorded ‘below the line’. This was the category two time above and quite forward thinking for the 1980s.

Almost thirty years later, how many firms track and monitor category two or category three time? Do you think they should?

I was on Netski 2011 recently and met up with Brad Burton and the rest of the team behind 4Networking. It’s been around for over 4 years and is very different to the traditional structured breakfast networking popularised by BNI and BRX.

I checked out the website and saw that there are almost 300 4N groups around the UK. There is also an active online networking facility with over 42,000 members.

Yesterday morning I attended the 4N group meeting at Monument (London) and saw what a slick operation they run. ‘Slick’ but relaxed and informal. There was none of the forced referrals or the membership restrictions imposed by some other networking groups.

4N meetings have a number of clever features that almost guarantee you will have a good time.

If you are looking for a local (or National) networking group I would strongly recommend you check out your local 4N group. You can try it out for £10 – the price of your breakfast.

Full details here.

And just to confirm the value of networking, at yesterday’s meeting I met up with:

• an accountant who started in practice under a year ago. ex KPMG she gave me advice re my son who has just secured a training contract in the group she used to work in;
• an old friend I met 4 years back though Ecademy
• a business mentor whose wife is CFO of a multibillion pound energy company (I mention this as it’s a good reminder that you are never just networking with the people physically in the room)
• a property investor and mentor who recommended a book, (authored by a US guy) that I need to read as it covers the same ground as one of my seminars
• one of my new skiing chums from Netski 2011 – who presented a captivating and motivating 4sight session.

There were plenty of other interesting people there too.

All networking groups are NOT the same. Do try 4N. I suspect it’s a great way for local accountants and other professionals to build relationships and to secure new clients. NB: BUT please do not go to meetings with the intention of ‘selling’ and of winning new clients at each meeting. Networking does NOT work like that – as I’ve explained before on this blog.

Related posts:

• 10 top networking tips

I was one of the hosts at a recent business event and had invited a number of guests. As is the norm all received name badges that also had their company name on them.

Well, almost.

Those guests who had a single permanent role with one firm or company had that business name beneath their name on the badges.

I had sat down with a colleague before the event to help her decide what business name to put on the badges for those where it was less than clear. The reasons for the lack of clarity were due to certain guests having multiple roles, consultancies and/or business activity. In each case they had accepted the invitation by email but had not confirmed the business name that should appear on their badge.  We plundered my memory and checked Linkedin. In many cases it just wasn’t obvious.

In almost every case this was a missed opportunity as all names also appeared on the guest list either with no business name or perhaps simply that of their personal services company or the smaller of the companies with which they are associated. And this despite my best efforts to help our guests gain maximum exposure and benefit from their attendance.

My tip then is to ensure you always make clear what business name you would like used on guest badges and guest lists when you are invited to events.

I spent last night in the company of numerous ex colleagues from WJB Chiltern. It Was great seeing do many old friends. What has prompted this post though is a realization I had part way through the evening Almost without exception everyone of my Chiltern Alumni was working in onevof two types of firm.  Either they are Now part of a big accountancy or law firm or they are a key member of a niche practice. Indeed the majority were in such practices. The speciialisations ranged from Tax investigations to VAT on yachts to high net worth private clients to simple accountancy to trusts and estates work. I also met a number of ex colleagues who will shortly leave their current firm to establish a new niche practice. And good luck to them. Every single one of the people I spoke to last night could articulate their area of specislism. None talked in generic terms if being a tax adviser or an accountant. They arexall successful and will remain so. They have a clear ficus and a niche. Do you?

Last week I spent a very enjoyable evening in the company of dozens of ex colleagues from WJB Chiltern. I left Chiltern over 6 years ago. Most of my ex-colleagues have also moved on – indeed what’s left of Chiltern is now owned by BDO.

It was great seeing so many old friends. What has prompted this post though is a realisation I had part way through the evening.

Almost without exception everyone of my Chiltern Alumni is now working in one of two types of firm.  A minority are employed by a big accountancy or law firm. The majority however are key members of niche accountancy or niche tax practices.  In each case they have a clear focus and  specialisation. These range from Tax Investigations to VAT on yachts to high net worth private clients to trusts and estates work. I also met a number of ex colleagues who will shortly leave their current firm to establish a new niche practice. And good luck to them.

Every single one of the people I spoke to last night could articulate their area of specislism. None talked in generic terms of being a tax adviser or an accountant. They are all successful and will remain so. They have a clear focus and a niche. Do you?

(Yes, some of those I spoke with last week will become members of the Tax Advice Network. After all, it’s a marketing portal for tax specialists and will increase the level of referrals they receive. Like my ex-colleagues, every one of the tax adviser members, who operate as independent specialists, has clear areas of expertise)

I had lunch yesterday with an old friend, Clare Murray. I say old friend as that’s how she described me afterwards in a tweet:

Terrific lunch today at 1 Lombard with old friend @bookmarklee

It did seem as if we were old friends and yet we met originally in 2001 in a professional capacity and have simply said hello a few times at meetings of the APP over the years. I think this was actually our first substantive conversation lasting more than 5 minutes since 2001.

I mention it on this blog because Clare displayed so many positive attributes of a good networker – that I think it’s worth using the lunch as a textbook example of ‘how to do it’.  We’ve all had occasions where a business lunch has been a struggle. This one wasn’t – not for me, nor I think for her.

Let me tell you a little about Clare first. She’s the managing partner of a niche law practice based in Canary Wharf – CM Murray LLP. Earlier this year she had her first baby and took about 4 months off work. She lives close to the office, with her husband and evidently loves her work.  Prior to setting up her practice Clare qualified at a leading national law firm and was subsequently a partner in a City law firm particularly recognised for its employment and partnership law expertise.

So what did Clare do that so wowed me yesterday?

• Encouraged me to talk about me before I could get her to talk about her. Ok, I made it easy for her! But she seemed genuinely interested in the story of my career since we last talked properly in 2001. She asked open questions, expressed concern and interest and evidenced her legal skill; friendly, professionally and easily.

• Responded openly when I asked about how she’d come to set up the practice a few years ago.  She avoided the trap we sometimes fall into – she gave me no sales spiel.  This was casual chat between ‘old friends’ who were catching up.

• Even though Clare had invited ME to lunch (actually her PA had emailed me to find a good date), when we moved to business issues her first question was about what she could do for me. She didn’t start by asking me how I could help her.

• When I asked Clare about her practice she told me about it in a really positive, enthusiastic and engaging way.  I learned about her lateral hires, the team spirit, the extra talent and spark she looks for in potential recruits and the types of clients they act for.  All very matter of fact. I was genuinely interested as it sounded different to many other employment lawyers I’ve spoken with. Let’s see what I can remember 6 hours later (when I’m typing this):
  • A focus on high level executives in the city banks based in and around Canary Wharf. CM Murray were the first niche practice in the area (it’s why they located there);
  • Expertise and a focus on advising the UK subsidiaries of US corporations on employment related matters; and
  • Specialist knowledge and expertise in partnerships and LLPs

• Of course CM Murray has expertise in more areas than this but Clare seemed to know, instinctively I think, that there is little point in talking about everything you can do over lunch. The same is true at networking events. How much can one person remember – especially about someone they’ve just met?  So far as i can recall,  Clare focused on just 3 key memorable niches and added that the firm also does a lot of work with SMEs too.  As I explained though – everyone works with SMEs. That acronym describes 99.9% of all businesses in the UK.

• When I asked what I could do to help her, Clare picked up on something I’d said earlier in the conversation (so she had been listening) and asked if I could think of any niche accountancy firms based in or near to Canary Wharf, City or central London who also have a focus on the same sort of clients as her – especially the UK subsidiaries of US corporations. Maybe they could collaborate and travel to the US to promote their practices together. We also joked about finding a way for her to expand her practice into her home town of Newcastle where her parents still live. But that’s more of a long term dream.

• We also talked about social media for professional advisers, my paid for talks on the subject, twitter (see @BookMarkLee @CMMurrayLLP and @ClareMary), blogging and holidays in Italy. Oh, and she inspired an amusing thought which will shortly appear on the Accountant jokes and fun blog.

Our lunch lasted almost two hours. The time flew by. It did feel as if we were old friends. I have a couple of things I promised to do by way of follow up. This blog post was NOT one of them. But as the day wore on I was reflecting on how enjoyable our lunch had been. I decided to share my positive feelings and, hopefully, in so doing, help others who may struggle with business lunches.  I don’t think I’ve ever felt inspired to do this before. And I doubt I’ll do it again.

By the way I’ve now checked back to CM Murray’s website.  My recollection wasn’t bad. In fact I now realise that during our conversation Clare spoke about the firm’s experience in dealing with the following as well as partnership issues and business immigration law:

• Board room disputes
• Executive bonus and departure issues
• Senior executive appointments and service agreements
• Expatriate and international secondment arrangements and disputes
• Large scale redundancy programmes

There’s another lesson. It’s unwise to expect the people with whom we network to remember all we say to them at meetings or over lunch. Despite my best intentions I still could not recall accurately the specialisations that Clare mentioned over lunch – or maybe I did and her descriptions were more focused than the wording on the website. Reading it now I do recall Clare mentioned them all. But I think she wisely summed them up into pretty much what I sumnmarised earlier.

A sole practitioner accountant recently asked how could he attract the ‘bigger fish’? In effect he wanted to know how he could start to attract and win clients who would be prepared to pay bigger fees. He said he wants to more than double his average fee – moving from around £600 upto £2,000.

Here’s my initial reply:

What services do the ‘bigger fish’ look for and that you can provide? Are you looking to attract prospects with more complex affairs or those with more messy records?

What services would anyone want and be prepared to pay £2k for that you have the interest and ability to provide.

When you are networking are your stories and examples about small clients or big clients?

Do the messages on your website and marketing material represent the right sort of bait for the work you want to attract?

What would YOU suggest?

Last week I interviewed Daniel Priestley on a webinar during which we discussed ways in which accountants in practice can become more entrepreneurial.

One of the issues we touched on was the benefits of identifying a niche, or preferably a micro-niche.  Daniel made the point that this makes you more referable as it distinguishes you from all the other accountants. And this is a point with which I certainly agree. I’m always amused when I see a list of “areas in which we specialise” on accountants’ websites. In fact such lists are more often simply a list of all those areas in which the firm’s clients operate. As such they provide less evidence of specialist expertise than is ideal.

The same point arises when accountants try to describe all the things they can do when they announce themselves at a networking event. All this does is to make you sound just like every other accountant. And that means you’re BORING and not memorable. So the low rate of referrals and new work introductions that follows from such activities shouldn’t be a surprise.

Claiming a micro-niche involves focusing on something like: “Divorced women over the age of 50 who are worried about their finances.” That’s a clear memorable and distinct focus. It’s a micro-niche.  You probably are already finding yourself thinking of people who fit that demographic. If so you’re putting yourself in the position of someone who could refer work to an accountant who focuses on that micro-niche. And that’s why it can be so valuable to have such a focus. Clearly you should pick one that relates to your own experience. But PLEASE make it different to all the other accountants who (claim to) focus on SME businesses…. (yawn),

Daniel suggested that micro-niches might include reference to gender, age, level of wealth, location, income, beliefs, values or any other such distinguishing personal or business feature. Focusing on micro-niches also makes it easier for search engines to find you. This is relevant for when your target audience is looking for an accountant. Your micro niche makes you more referable, more memorable and more obviously a specialist from the media’s perspective too.

I had one further thought after the webinar had finished. And anyone who has ever worked for or met someone from a larger firm of accountants will be able to relate to this. Often their business cards will define the niche or area in which they work. They are not simply a partner or a manager. Often they are not simply a tax partner or audit manager. Their business cards typically identify an area such as ‘property’, ‘retail’ or ‘international’.  These are akin to niches. But I know dozens of property tax specialists in large firms and I have difficulty in distinguishing them in my memory.

The accountants (in any size of firm) who stand out are those who emphasise their own unique micro-niches.They make these clear on their websites, on their marketing material, when networking and seeking referrals and when obtaining media coverage.

During the webinar Daniel answered a couple of related questions:

a)  Can you have more than one micro-niche? Yes you can but it’s rarely necessary and will confuse people if you mention them both in the same conversation;

b) What about the work and opportunities you miss through focusing on a micro-niche? In real life you gain far more than you lose.

What do you think? Do you have micro-niche you’re prepared to share?

It seems there is a tricky balance to be made here. I’ve written previously about how networking, whether online or offline, can be an effective way to secure new clients of the type you want – just as long as those with whom you network know enough about you, like you, trust you and know the sort of referrals that can help you.

I’ve recently seen the results of some research from the respected Kellogg school of management in the USA.  The Price of a Billable Hour – Social networks affect transaction costs. The summary is dated July 2009 but the research itself seems to date back to 2004 and thus pretty much predates the rise of online ‘social’ networking.

Nevertheless, this research highlights what may be a key disadvantage of networking – especially online where we are encouraged to include social and personal material rather than to have a solely business focus. (Although I would always advise caution and remind you that anything posted online will be there for all time. It could come back to haunt you if it is too personal, unprofessional or otherwise indiscreet).

To paraphrase one key finding, the research suggests that you will charge lower fees to your friends than to clients with whom you share no social interactions. And put like that it’s almost obvious isn’t it?

In the UK, Barristers are often perceived to be more expensive than solicitors and, in general, they are perceived as less approachable. Is there a correlation?

One conclusion that could be drawn is that you will end up charging lower fees to clients ‘won’ as a result of relationships developed through ‘social’ networking. I wonder whether, for example, regular attenders at weekly BNI breakfast meetings charge their fellow group members the same fee levels as would be charged to new clients who are total strangers? Maybe any reduction in normal fees is justified if the client in question is a regular and reliable introducer of new clients.

I’m curious as to whether real life supports the conclusion drawn from the above research. And how you feel about it.

I’d appreciate your views as comments below or by email to the usual address.

* Relevant previous posts include:

• 10 top networking tips
• People do business with people they know, like and trust
• Why gaining advocates is important
• Networking for professionals
• Networking mistakes to avoid

This is a first. It’s the first time I’ve had something to blog where I can see how it could fit on any or even all 3 of my blogs!

• It sounds like a riddle or joke – so would fit well on: Accountant jokes and fun
• It includes reference to tax planning – so would seem well suited to the TaxBuzz blog
• On reflection though, the rationale for the post is related to my advice and tips for ambitious accountants.

Earlier this week I was chatting with a nice guy who has been on a sabbatical since taking early retirement from a public sector role. He is now thinking about what he’s going to do next and is quite happy to accept that he may need to start networking once he secures a position.

I suggested this was to confuse networking* with selling. He would be much better off to start networking asap. Networking to build relationships. Networking to identify ways in which he can help other people. And Networking to build a deep and wide network of people who know him, like him and trust him. This cannot be done overnight.

It’s the same with inheritance tax planning. Ideally one would do this at least seven years before dying. I’m not suggesting that you need to start networking seven years before you hope to reap the benefits. Of course not. It’s just that seven years pre-death is the optimum time to start inheritance tax planning. Of course it’s not possible as you rarely know when that seven year period begins. Still, if you leave it too late your inheritance tax planning may be ineffective.

So, returning to Networking: If you want to achieve promotion and advancement within your firm you will generally increase your chances if you are well known and liked before your name is first mentioned as a potential partner.  If you are thinking of setting up your own practice, how much easier would it be if you were already well known  in the local community – by people who could become clients, recommend clients or help you source trusted suppliers? You get the picture.

If you leave it too late to start networking you could come across as desperate, needy and ill-prepared. In effect if you leave it too late your networking efforts will be ineffective – for a while at least.

* Relevant previous posts include:

• 10 top networking tips
• People do business with people they know, like and trust
• Why gaining advocates is important
• Networking for professionals
• Networking mistakes to avoid