Starting your Virtual Bookkeeping business....
Last week's bookkeeping tips e-mail from AIPB included some tips on starting your own bookkeeping business. Some are good so I thought I'd summarize for you.
1. Negotiating the price to get your first client. At first I disagreed with this suggestion but after thinking about it thought it might actually help some people. Sometimes it's hard to get your first client. They suggested taking a lower rate with the agreement that "after 30 days, when you like my work, we go to my rate of $XX per hour". Like I said, at first I disagreed with this thought but then I remember when I first got started and didn't have any clients I had a hard time, I don't recommend lowering your rate but I can see where giving a 30 day "get started/test" discount might help at first.
2. Make sales calls count. Personally I don't do in-person sales calls because I prefer non-local clients. So this was hard for me to read. Plus, some of the advice wasn't practical for where I live. But, I'll still share:
a. Present a business-like appearance -- I'd add dress for the area and the type of business you are marketing to. For example I don't recommend dressing in a suit if you live in a laid-back rural area and are marketing to auto shops. People will make assumptions on your dress and if you're overdressed they can assume you're too expensive just because of your dress. But, also don't under dress. A good rule of thumb is to dress one step up from what your target market would likely dress. For example: if your target will be in greasy jeans and shirt then wear pressed khakis and a nice shirt and flats.
b. Be firm, but not pushy -- the point here (and they didn't word it well) is to engage the person. If they are happy with their current solution then don't bash it, if they aren't happy find out why and see if you can help them.
c. Be practical -- I actually don't fully agree with this but there is a point to it. They suggest not knocking on doors that are too small to afford a bookkeeper. I don't like this suggestion only because I don't think you should pre-judge a company. I'd be more apt to being able to offer various solutions for them. If they can't afford to have you do everything offer to help with a couple things at first. I tailor what I do for my clients based on what they need and what they can afford. Businesses grow and this could end up being a perfect client down the road, plus you don't know who they know.
d. Keep the door open -- After your initial contact set another appointment to detail how you can help them but leave them with something. This is a good tip for cold-contacts, keep the initial contact short then come back.
e. On the second visit, act as though you have the job -- be prepared for the second visit with things you can give them that show's how great you are. A free form that will help their business, a sample of the financial reports that you send to client's monthly (be sure to change all identifying information) or a sample log-in of how working with you will look like. Talk as though you have the job using phrases like: "this is how you'll log-in", "these are the reports I'll be sending you monthly", "when would you like me to pick up your work"...
3. Get referrals. This is something a lot of new VAs struggle with. I often hear: I don't have any clients how do I get referrals. Ask for them. Talk to old co-workers, friends, family, people you know and tell them what you do and ask them for referrals. Another idea is to contact CPAs in your area. You'll want to work with smaller (usually solo) CPAs not the big firms because they usually have their own in-house bookkeeping department. Ask to meet with them and explain what they do. Ask them for referrals from their clients and offer to refer your clients to them for tax work. Point out how working together can benefit them.
4. Bill for top dollar. Again, some of these I, personally, agree with more than others.
a. Vary your rate by the job. They suggest looking at the organization of the client and what you will be doing for them and basing your rate on that. I see the argument for both sides of that. Personally, I have one rate and that's it...doesn't matter if they are up-to-date or 2 years behind that's my rate.
b. Be prepared to back up your fees. This doesn't mean be prepared to justify your fees. But, knowing what others charge and knowing your rate is comparable. It also means having testimonials from people that will say you are worth your rate. That brings up another thing people worry about and that's getting testimonials. I've heard lots of people comment that they don't have their first client so how do they get a testimonial. If you're going to do bookkeeping work you need to have experience so, ask old employers for testimonials.
c. Get to know local CPA firms. You really want to work with your client's CPA not against them. They suggest having a meeting with the client and their CPA so the two of you can work together. This will impress the CPA and could result in more referrals.
d. Triple-check your work. The best way to keep clients is to make them happy with your work. Triple-checking, mini-audits, and reconciliations are the best way to make sure there aren't any mistakes in what you're submitting to your clients.
5. When to bill by the hour vs. by the job. Personally I only bill by the hour. They give some tips on billing by the job. First, work with the client on a hourly basis for a few months before switching to a job rate. If a potential client is looking for a job rate then do so on a trial basis and relook at it after 2-3 months. But, remember it's easier to reduce than raise someone's fees.
They also brought up the being flexible but firm. You have to know what you can offer to clients and be a little flexible to help them. For example: if it's a local client and they usually drop things off but are having a family crisis offer to pick things up. But, also be aware when someone is taking advantage of you and stand firm.
Hope some of this is helpful.
__________________
Lanel Taylor, CVA ~ Virtual Bookkeeper
Taylored Office Solutions
Custom fit solutions for all your office needs.
|
That's funny, when I was reading the article I kept thinking testimonials instead of referrals too. 
Linear Mode
