Accounting Today - June 2011

financialplanning

to assist with the transition.
Client
FROM PAGE 22

may only net one or two As and one
or two Bs in the first year of these
new, tougher standards. But if you
do it consistently, by the end of the
third year, your new client flows will
be back up to the old levels of 20 or
more — except they’ll all be As and
Bs. It is then that you, too, will love
all of your clients and only work
with those who meet your firm’s
stringent quantitative and qualita-
tive criteria. AT

CLIENT PROFILES

Profiling new clients is even more critical when it comes to the wealth management side of your practice. A small client may take as much time as a larger client with far less revenue and opportunity. In fact, it seems that client complaints and problems happen more frequently with smaller D clients than larger A clients.

A common mistake that most firms make when they get started in wealth management is to start with the small clients. Their theory is to start where the exposure is less and the work is simpler. A better alternative may be to start with your A clients, who already love you and depend on you for more than just your accounting or tax expertise.

Don’t be shy when meeting new prospects. A big part of their enjoyment in working with your firm will be based on how well they fit your ideal client profile. Ask the questions that you need to ask in the first interview to see if they fit your profile. It makes the first meeting experience more of a mutual interview than a “sales” meeting where you are simply trying to generate more fees. You may be surprised how liberating it can be to turn down new business because it doesn’t meet the criteria of clients that your firm can help. Of course, be professional about it and have a few names of other practitioners who may be able to help them.

The most successful firms are those that have drawn a clear line in the sand about what new clients will look like. It sounds a lot harder to implement than it actually is, and most practitioners fail miserably at living by the line-in-the-sand rule. They continue to accept any and all comers whose payment for services will clear the bank.

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This value-added service can:

Increase revenue year-round Enhance client and personal satisfaction Boost client retention and referrals

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(800) 742-7950 (800) 742-7950

www.hdvest.com/atjunewww.hdvest.com/atjune

DON’T RUSH IT Setting higher standards for the acceptance of new clients will not change your firm overnight. In fact, the first year may seem a little painful. If your typical year yields 20 new clients ranging from A to D, under the line-in-the-sand theory, you

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Securities offered through H.D. Vest Investment ServicesSM, Member: SIPC, Advisory services offered through H. D. Vest Advisory ServicesSM,
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