Richard A. Lindsey, CPA

Lindsey & Waldo, LLC – Certified Public Accountants

  • Oct 27

    Business people seem quite willing to throw lots of money at the newest, unproven tactic for acquiring new customers/clients/patients when they would be better off plugging the holes in their existing processes that are leaking profits…

    Often right into their competitors’ pockets.

    Here are a couple of areas where you could quickly seal the holes and perhaps, double your profits.

    Probably the biggest area of opportunity for most people is following up with non-buyers. Often there is none. No systematized, automated strategy to follow up with prospects to turn them into customers.

    Of course, you have to capture the prospect’s information first and that’s another possible leak. But, if you’ve done something to capture their name and address or email, then you have the ability to stay in touch and perhaps move them from simply interested to paying customer. The higher the cost of your product or service, the more important this is.

    Capturing prospect’s information is an absolute must! It can be done online or offline, in-person, or by phone. Even though it’s easier than ever, many make no attempt whatsoever and it’s costing them thousands and thousands of dollars.

    Most business owners, when asked where their best leads come from, invariably say it’s a referral from an existing or past customer/client/patient. Yet most stumble across these referrals by chance. Almost none have a systematic approach to generating a steady stream of referrals.

    What if you weekly, monthly, or even just quarterly provided your referral sources with the tools they needed to refer others to you, such as useful reports, newsletters, emails, and instructions on your ideal customer and how to introduce others to you. You could create an “unpaid sales army.” By the way, your best referral sources might not ever have been customers. There are others who might champion your product or service. It’s not about who you know, it’s about how well you know them. If you’re curious, look up BNI.com

    Plugging holes in your leaky profit bucket is often all you need to do to provide for all the growth you can handle. It just takes a commitment on your part.

  • May 24

    They played baseball together for ten years, and it happened so often, Franklin P. Adams, a New York Evening Mail columnist, wrote an eight-line poem about it. Originally published under the title “That Double Play Again,” it is better known as “Baseball’s Sad Lexicon,” or simply as “Tinkers to Evers to Chance.”

    These are the saddest of all possible words:
    “Tinkers to Evers to Chance.”
    Trio of bear cubs, and fleeter than birds,
    Tinker and Evers and Chance.
    Ruthlessly picking our gonfalon bubble,
    Making a Giant hit into a double—
    Words that are heavy with nothing but trouble:
    “Tinkers to Evers to Chance.”

    A little background: Back when the Chicago Cubs were a dynasty they won the National League pennants in 1906, ’07, ’08, and ’10 and the World Series in 1907 and ’08. Anchoring their infield were shortstop Joe Tinker, second baseman Johnny Evers, and first baseman Frank Chance -the best
    double play combination of the day.

    Adams considered the poem a throwaway when he wrote it. He simply wanted to get out to the ballpark and watch the game. But those three may still be the best known Cubs of all time.

    But, it didn’t happen by chance. (Did you see what I did there?) It happened by teamwork. It happened because they practiced. It happened because Tinkers and Evers and Chance developed a special relationship with one another unlike most others. The same is true if you’re trying to grow your business by word-of-mouth. You can’t expect people to shout your praises and send you referrals just because you showed up at the ballpark. It takes a relationship to make it work. Referral relationships work just like other relationships work.

    Think about the relationships you have with your neighbors. How willing would they be to help you out if your car broke down? Depending on your relationship, they might each respond differently. One might outright refuse to help. Another might share the name of his favorite mechanic. Another might be willing to take you or pick you up at the garage. Still another might insist on fixing it for you at no cost. Each of your neighbors may display a different willingness to help. And naturally, your willingness to help them would probably differ as well. Even your requests for help would be dependent on your history with each of them.

    Great referrals don’t happen just because you ask. At some level of consciousness, people who are good salespeople know this. Yes, sometimes, just asking for referrals will work, but more often, asking someone with whom you haven’t yet developed a relationship, may sour them forever.

    Like a great double play combination, it may look easy, but it takes a lot of work behind the scenes to make it happen. Getting ideal referrals with strong introductions from influential people involves planning, preparation, and practice. It involves developing that special relationship.

  • Oct 3

    It never ceases to amaze me: I observe business people and salespeople allowing customers (and money) to leak out of their business. Many times without even realizing it.

    For example, I watch people go to Chamber, or other networking, events with the sole purpose of collecting as many business cards as they can. Somehow they seem to feel, the more cards they collect, the more contacts they can make, the more business they will generate. And they will be everywhere, at every event tangentially connected to their business. Others may view them as the king or queen of networking.

    Yet the business, the referrals, aren’t coming and they ask, “Why aren’t I getting referrals?”

    There could be several reasons such as forgetting to ask, focusing on the wrong people, having no system in place, or putting pressure on customers or referral partners unknowingly.

    Here are six things you can do to increase your referrals.

    Ask. Yes, it starts here. If you don’t ask you may get a few haphazard referrals, with the emphasis on few. If you learn how to properly ask your customers and partners for help, some will enthusiastically promote your product or service. In my experience, you’ll never get all of your customers to give you a referral, but you don’t know which ones will be ambassadors for you until you ask. Note: Referral partners don’t have to be customers. They could be friends, vendors, or others in a supportive group, who have, over time, come to know, like, and trust you.

    Make people comfortable giving you referrals. It’s important to remember that your customers don’t like to feel like they are selling their friends to you. For many, offering an inducement or a bribe in exchange for names not only makes them uncomfortable, but may cause them to question the quality of your goods or services.

    You may have customers or referral sources who would like to refer, but don’t know how. By giving them easy ways to refer their family and friends without making it feel like you are paying them, you will receive more and a better quality of referrals.

    Show appreciation. Remember to thank your referral partner or customer for the referrals. If privacy allows, let them know when a referral works out and give them an update. One of my favorite ways to do this is with a handwritten card. People like to be appreciated. When you take the time to do something so few do these days, send a handwritten card – NOT a text, NOT an email, NOT a tweet, a handwritten card – your referral source will be pleased and more willingly refer you the next time.

    Focus on the right relationship. You don’t have the time to have a great relationship with everyone you meet. It’s impossible! That’s why you have to focus your energy developing the right relationships. For example, would you spend the same energy on a customer who has only purchased one entry level item from you in the last year, as you would a CEO who purchased your product for every employee at her company?

    Put systems in place. You already know that you don’t have time to build quality relationships with everyone; however, you can put systems in place such as follow up procedures to help nurture and develop relationships so that you can have more of those quality relationships referring you.

    Grow referral partners. Being an active member of a closed networking group, like BNI, gives you the opportunity to develop relationships with potential referral partners without the distraction of direct competitors. Unlike other networking opportunities, BNI encourages your efforts to build quality relationships with referral partners. Those trusting relationships can develop into your most prolific referral partners.

    Generating referrals takes a well-designed system and consistent effort to operate reliably. But the pay-off is worth it. Referrals are one of the highest probability and most profitable sources of new customers.