TaxCoach Briefs:    March 4, 2010

Volume 5, Number 9

• Marketing Minute: Five Steps to Your Dream Practice
• Member Event: Why SuperTable?
• Member Testimonial of the Week: 3 Clients From 1 Meeting
• Member Call-In: More Clients, Less Taxes

****Attention All-Stars and Press Club members ****: Our next monthly webinar will be on Tuesday March 9 at 4pm Eastern. Our topic will be "Hunters vs. Farmers" — understanding and profiting from personality types. Look for the agenda and connection instructions on the All-Stars Page in TaxCoach.

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MARKETING MINUTE (EAL)
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FIVE STEPS TO YOUR DREAM PRACTICE

Yesterday afternoon, during our weekly Member Call-In, a member from Seattle asked a question that many of you are asking right now - especially those of you north of the Mason-Dixon line:

During tax season, knee deep in tax preparation, I dream about relocating. If a tax coach started in a new town what 5 point plan would you recommend to establish a new practice?

After the call, I got to thinking just how appropriate that question was - especially now in the middle of tax/cold/flu season. Is there a formula for building a dream practice? Every one of you joined TaxCoach to do that, whether you just read the Briefs or you join Press Club for us to do it for you.

The question is also relevant whether you're actually interested in relocating or not. While many of our members are just establishing their practices, many more are looking to reinvent existing practices that have grown haphazardly over the years. What does it take to build that dream practice?

So here's my five-part plan:

1. Decide What You Want to Do. The first step is to decide exactly what sort of work your dream practice involves. Do you like preparing taxes? Compiling financial statements? Consulting with business owners? Duking it out with the IRS? Managing investments?

   You also want to think about what you want your practice to look like. Do you like hiring and managing staff? If so, you can leverage them to build volume and offer ongoing services like payroll and writeup. If not, perhaps you'll be happier with a "boutique" practice, serving a smaller number of higher-value clients.

   Regardless of your preferences, or how you manage your practice, if you don't like the day-to-day work you do, you're not going to wake up energized to do it.

2. Decide Who Values That Work. Your next step is to target a market that wants and values the work you want to do. We've talked before about the value of targeting markets. My point here today is choosing one that wants and values the work you want to do - not just a one that's easy to reach or pays the bills.

3. Craft a Message to Attract That Market. This one is easy. I don't care if you're looking for business owners, professionals, young families, or retirees. They all hate paying taxes. I don't care if you're in a red state, a blue state, a border state, or a swing state. They all hate paying taxes. I don't care if they're black, white, young, old, or my friend's kid with the hangover I wrote about last week. They all hate paying taxes!

   The only challenge, such that it is, is customizing your message for your target market. You'd focus on different skills and strategies for real estate agents than you would for retirees. So you need to understand your market's unique challenges and frustrations. Make them feel the pain of wasting money of taxes they don't have to pay. Then offer yourself as the remedy for that pain. That's how you attract clients.

4. Figure Out How to Present That Message. This is the hardest step. Once you've targeted your market and crafted your message, what's the best way to deliver that message to your target market? Is it large enough to merit direct mail? Do they congregate in groups, like chambers of commerce or trade associations? Can you reach them through networking groups like BNI? Test as many ways as you can to reach them. Measure your results to see which ones give you the ROI you need.

5. Work It, Baby! Implement Step 4 and work your plan until you reach your goal. In the words of the immortal Greek philosopher Nike: "Just do it!"

I wish I could give you "one thing" to use over and over until you build that practice. (Actually, I wish I could sell it to you - I could charge a fortune!) But in the real world, it's not that easy, for you or for me.

The good news is, if you do your homework - decide what you really want to do, target the right market, and craft the right message to attract them - Steps 4 and 5 become just a numbers game. You'll "work them" knowing you've positioned yourself perfectly to attract the clients you want to work with and given yourself the best shot at winning them.

Are you frustrated with a knee-deep pile of tax returns right now? Are you dreaming of reinventing your practice? If so, don't just nod your head, put down this article, and resolve to do "something" about it later. Grab your calendar - now - and schedule a time to review it right after "the season." (I say Monday, April 19, at 3pm your time. Seriously.) Invite your spouse, your staff, or whomever you "brainstorm" with to discuss it with you. Plan to listen with an open mind. And see where that discussion leads.

You've all heard Albert Einstein's definition of insanity: " . . . doing the same thing over and over again and expecting different results." If you really want to built your dream practice, you can't settle for business as usual. Getting there might not be easy - but you can do it, with the right plan and the right support. And I know that once you do it, you'll be glad you did.

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MEMBER EVENT (EAL)
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WHY SUPERTABLE?

We've talked for the last few weeks about the upcoming SuperTable this May in New Orleans. We've announced our focus on helping you master the skills you need to charge premium fees and make them stick. But what will you actually get from the meeting? Why should you want to swim through shark-infested waters (with pork chops tied to your knees!) to make the event?

Here are just a few of the specific, nuts-and-bolts strategies you'll take home:

• How to structure tax-planning and tax-prep fees
• How to sell planning fees to new clients
• How to present fee increases to long-term clients
• How to use premium fees to attract referrals
• How to answer fee objections
• How to eliminate fee comparison forever
• The single most important strategy for selling audit protection
• How to structure audit protection programs to benefit your client and yourself
• How to structure monthly service agreements for maximum profitability
• How to sell monthly service agreements
• The one key to managing monthly service agreements that no TaxCoach member has ever regretted implementing
• Success stories from fellow TaxCoach members
• The single most expensive mistake you’re making, right now, that costs you thousands
• Eye-opening group demonstrations that will change how you look at pricing
• Specimen fee structures and client presentation materials to take home and customize for your practice

Click here for more information. But don't wait too long! Seats are limited and going fast!

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MEMBER TESTIMONIAL OF THE WEEK (KAV)
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"FYI: I created the ‘shock and awe package’ (like the sample we discussed at the Tampa Roundtable), and then hosted a chamber business card exchange. We were overflowing; I gave out five boxes (included my book and two audio CDs), and picked up three new business clients — good clients. I am down on # returns in the door, and ahead in revenue due to my price increases, which you know I have had issues with. :) THANK YOU, THANK YOU THANK YOU!!!"

Christine Pavlik, CPA,
Elkton, MD

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MEMBER RESOURCE (KAV)
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MEMBER CALL-IN WITH ED AND KEITH

This week: "The Goodness" again, as usual — with an especially phenomenal turnout given our timing in the depths of tax season. Here's an excerpt of questions and comments, straight from the call log.

• Hey friend! I am working on more speaking engagements because I think that’s the best way to get traction in the planning field. So far, my admin is focused on Real Estate agencies (with no success). NJ agencies are the worst! I’d like to get your thoughts on other effective ways to get speaking engagements.
  • RE: SPEAKING...CHK OUT LOCAL IRS OFFICE...THEY MAY BE LOOKING FOR PARTNER TO PRESENT SEMINARS...I AM DOING ONE A MONTH THRU END OF YEAR. IT MAY NOT BE THAT TARGETED...MOSTLY BIZ OWNERS SHOW UP. EASY TO SET UP...NO MARKETING COST. GO TO IRS.GOV AND TYPE IN "Small Business Tax Workshops".
  • That's awesome. I'm going to look into immediately.
  • IF PUTTING ON A SEMINAR OR WORKSHOP... ALWAYS HAVE A METHOD OF GATHERING A LIST... MAYBE HAVE A LEAD GENERATION MAGNET... FOR EXAMPLE, THE EIGHT REASONS BUSINESS OWNERS OVERPAY THEIR TAXES AND WHAT TO DO ABOUT IT" COLLECT A BIZ CARD IN EXCHANGE FOR THE CD OR SPECIAL REPORT
  • You mentioned a power point presentation made up for a BNI meeting. Where exactly is this resource located?
    [A: In the Playbook, #7 under the Seminar Kits heading, titled "Networking Mini-Presentation." ]
• Our parish is having a business fair where all small business owners can have a table set up at church after week-end masses in a couple of weeks to promote their businesses. What are some essentials that I need to make this event a success for my business?
• Did a plan for a long time client/friend and initiated the savings first month immediately I let my guard down and sent a bill for payment and no engagement agreement what I got back was a letter from the client/friend refusing payment as he thought I was helping him out. Going forward am i screwed and do you have a sample engagement agreement for tax coach I can use. Any suggestions on fixing this.
  [A: Yes, it's #8 under the Sample Letters heading in the Playbook. ]
• I work with a lot of real estate agents and find a common fact pattern. They are semi-retired, own several appreciated rental properties and wish to sell the properties and reinvest in real estate that doesn’t require as much hands-on management. Any thoughts about how to achieve the client’s goals and minimize taxes.
  • Have client who sold local commercial RE that had good steady positive cash flow. Did 1031 reinvestment into TIC development in NJ. Reinvest was great for 2 years but now TIC has problems related to general RE downside. Client has had 2 "Capital Calls" over $10,000 each in past 18 months. Warn TC members to do lots of homework on TIC's, including planning possible downside.
  • With a 1031 transaction to a tenants in common situation what is the personal liability to the taxpayer. Is it analogous to a general partnership.
  • I'd be careful in saying a TIC is like a partnership. My opinion is that a TIC is a security and would stay away from promoters selling not as security.
• With new clients coming in during season who are already expecting you to do a return, and they agree to do planning, would you try to get it done during season, or would you put it out until after season. Trying to juggle the timing is an issue right now.
• (regarding discussion two weeks ago about a client who wanted to bargain down the already discounted $1,750 fee for a plan that would save him $12K per year): Sold the optometrist the tax plan for 1750; stuck to my guns!
• Over past 20 years have unfortunately given away almost all tax planning steps to almost everyone of my commercial clients. So now literally none of those clients see "additional value" to my advice as I have always just done it for them for free. How do I convert these existing clients to the real value of my services now? And more importantly, how do I get them to pay for it now?
• Does TC provide guidance on entity selection? Where is the line between tax advice and legal advice?
  [A: The latter question depends on the state. For the former question, short of that line, TaxCoach offers several resources to help, including strategy modules on the different entity structures, and two items in the Implementation Guides section of the Forms & Templates folder, #5 "Separate Entities for Business Assets," and #6 "Business Entity Comparison Grid." You'll also find the "S-Corp Mini-Presentation" as #8 under Seminar Kits in the Playbook, which helps explain the relative advantages of the S election to a single client or small groups. All of these address tax strategies for different business entities, but stop short of recommending one form over another. ]
  • I once asked an attorney this question, he said, do what everyone else does!
  • Accountants practicing as lawyers in New York? Fugggedddabiudit!
  • Less of an issue when working with an existing LLC and taking the "check the box" elections.

If you're looking for clarification on TaxCoach strategies or more ways to profit from TaxCoach too, join us for the next call, on Wednesday March 10, at 1pm Eastern. Enter a question or just listen in on the repartee. Check the "Contact Us" button within TaxCoach for registration instructions.

While our elite members (All-Stars, Press Club, and Hall of Fame) can still schedule time directly with Ed as part of their coaching programs, we simply cannot answer marketing and tax-strategy questions via email or unscheduled calls.

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We can answer questions on using TaxCoach system features anytime. (Save marketing and tax strategy questions for Member Call-Ins.) For best response, email support@taxcoachsoftware.com.

Regards,