Starting New Practice in a Recession

Developing another accounting practice in a small market – Charleston SC

Goals:

Going into 2008, Ben’s top three goals were:

• Build an accounting practice from scratch and retire comfortably in ten years
• Increase firm revenues by at least $75,000 - 100,000 each year
• Generate net profits that will replace income from my last business venture (e.g., above $200k annually) in three years

Background:

Ben had an accounting practice from 1982-1996 (14 years) and sold it to operate a successful transportation company for nine years. After the transportation business was sold in 2007, Ben decided to get back into the public accounting business for his second foray into public accounting.

For those unfamiliar with Charleston, South Carolina, this is a relatively small market that generates lots of business from tourism. The city has a population of 118,492 and metropolitan area has 423,410 residents. The beaches are beautiful, historic pastel-colored homes showcase the downtown area, and grand oak trees are lined with Spanish moss. History buffs are attracted to Civil War History and the city dates back to 1670.

For an entry strategy, Ben looked into buying an existing accounting practice near Charleston, SC. While he looked at several practices, most were not in the immediate area that he wanted to practice. He did seriously look into one practice up near Myrtle Beach, approximately 90 miles away, but the “monthly nut” was steep because the seller wanted to package in a commercial building with the sale.

Ben also looked back upon how he developed his first accounting practice, which was developed using referrals and virtually no marketing effort. However, he soon learned that the marketplace had changed since the “old” days because public accounting had become more niche oriented and specialized. As well, he also wanted to ramp up the practice much faster than the first time because his financial expectations were now higher. The dilemma was “how the hell am I going to meet my goals and expectations,” said Ben.

To learn how to build a practice from scratch using a marketing system, Ben responded to a direct mail letter and attended Build Your Firm’s Accounting Marketing Workshop in late 2007 down in Dallas.

Shortly after attending the Dallas Workshop, Ben started to entertain the Quarter Million Dollar program so he could capitalize on his business experience, reputation in the local community, and accounting expertise. In early 2008, he enrolled, completed the training in February, and the marketing program started in March of 2008.

Results:

“I am pleased to report that my goals have been met so far and my outlook for 2009 is very positive despite the recession,” said Ben. “After less than one year in the Quarter Million Dollar program, I have been acquiring approximately $9,000 in new business each month (over 20 business clients). Each month, I receive approximately 9 new leads each month and close over 35%. At the current pace, I expect to have a minimum of $150,000 – 175,000 in billings for 2009 (2^nd year of QMDP).

By working with Build Your Firm, I know what types of clients are right for me, how to run the practice effectively, and how the leads will be generated. In a nutshell, the website is great and our search engine presence is impressive. By having a diversified marketing approach, we have a nice blend of leads coming from direct mail, internet marketing and referral marketing each month.

In addition to a systematic marketing program for acquiring business clients, the BYF Practice Management program has provided us with a structure for how our practice will ultimately “look like” in a few years. The work flow procedures and firm documents enable us to operate efficiently and with a lean staff.

Based on my experience with this program, “I recommend BYF’s Quarter Million Dollar program to accountants outside of South Carolina. For accounting firms in South Carolina, the program sucks and you should strongly consider other approaches.”