Discover the perfect solution for product pipeline management for Accounting and Tax

How to create outlook signature

you guys are out there just buying these firms like crazy you know I talked to a guy yesterday and just constantly buying businesses hundred thousand four hundred thousand it's interesting because typically when you buy in an accounting firm tax and accounting for you to pay about one time sales but the problem is most people don't analyze the business and I had a client come in a few months ago bought a business six hundred thousand dollars in sales paid seven hundred for it so more than one X revenue okay brings the business in but the problem is he was new to the industry like even though he had a job in accounting he didn't really know how to analyze the clients didn't know how to look at okay of the six hundred thousand how much that's tax how much that's accounting okay on the tax side how many business returns how many scheduled sees how many individual turns what's the price per business return price per Schedule C price per individual how much of this is tax planning versus tax prep is there any tax resolution you know and what really are the size of these businesses then going on the accounting side okay how many total monthly recurring counting clients okay what about the price per client what's the scope is this sub account management apna or is it just monthly accounting is it controller CFO level work like what is the level of service here okay so actually going through analyzing how many other services right is there any wealth management in this business are there any other consulting services what does that made up of and so many times people the people that do the worst the people that buy a business because they don't know how to get clients I'm all about buying a business if it's a good deal right I have another client bought a firm 500k in sales bought it for 200 K great hey that's a steal right if you're thinking of or you already bought a business because you don't know how to get clients that is a problem that is a very big problem because what happens is with this guy that bought the firm for 600 K two years later that's 600 K a bank debt that is a bank debt loan it's real dead now the business is down at 250,000 in sales that debts still there okay the reason is because he didn't know how to get clients he didn't know how to upsell clients didn't know how to repackage clients he didn't how to renegotiate clients he didn't know how to add commissionable services he didn't know how to have these conversations because he'd never learned how to do sales or consultations he just bought the business and so if you're at a situation where you just bought a business you don't know how to monetize it sometimes you because it took me years years and years and years of figuring out how tax and accounting work for small businesses in America to be able to understand this stuff I mean and I worked at a job I mean I'll tell you right now working at a job at a big accounting firm that made me learn a lot of bad habits for how to think about things the corporate mentality having a job being at a big company it just it doesn't make any sense when you come to this small business market so I would not have known how to analyze a farm I would not have known how to buy it and so if you're in that situation where you didn't even know right didn't know what you're looking at your site buy it then all the sudden you realize 50% of my clients are 1040s that 1040s are paying $200 a year and I can't even monetize these clients because if I double the fees it's still gonna suck and what do i do what do i do at this point so for those of you guys that either been thinking about starting a business or singing about buying a business paying 1x revenue generally when we go out we do active marketing we're looking to pay 20% of first year sales maybe less depending on how we get the client and so you know really you got to really think what am I doing here and sometimes you know really it can be a lot less be 5% of your 1 sales when you talk about adding in multiple services right if you do a tax plan first you monthly cutting after that you do tax preparation you do wealth management can be a very small percentage of first year sales as suppose like I see people come sometimes I can spend a hundred thousand dollars on a hundred thousand dollar business not even worth it just go out and get the hundred thousand dollars in revenue yourself that's only 20 tax plans at five thousand that's only eight thousand a month which is four eight accounting clients at thousand a month I mean it's not that many human beings and if you don't feel like a hundred thousand is it accessible to you without spending a hundred thousand you've got some skills you need to skill up you need to skill up and how to get appointments you just go up and how to show the value you need to skill up in terms of look you just editor on this business okay if you don't want to do sales you don't get clients great go back to job right oh great there's great opportunities there I've got amazing people on my team we're looking for people on our team so if you're looking for a role you should go back and do it there's absolutely nothing wrong with that and so many people are greater contributors on a team than they would be on their own but if you've chosen to go out on your own and you're responsible for that the very first thing at the top of the P&L is revenue and got to take care of that and if you can't get it you think that's gonna be solved by taking out debt or borrowing money or lumping down a plot a plot of cash on this business you got another thing coming every interaction with the client is a sale whether you are acquiring revenue with from a brand new prospect or you are retaining revenue for something that you already sold or you are upselling the client every single interaction is something where you need to approach it from the perspective of what is sales guys what is sales sales is about value creation it's not about getting the money get the money how do you know it's about creating value for the person getting that person to see that value getting that person to commit to solving that problem and achieving that value with you and paying for it so if you don't know how to do sales it's because you don't know how to do value creation that's really what sales is at its most fundamental form so if you've been watching this video this long I can tell you that at least setting up a time to talk with me my team would be worth it for you so we do about 45 minutes consultation we'll go through and show you our deck you know it's hundreds of slides probably 350 slides at this point of every single thing that we do how to look at the business how to look at the different types of clients what we would do in your situation who we would upsell versus how we go out and get new clients who we would renegotiate a tree price so I'll go and put the application below you'll talk with me or somebody from my team and I will see you on the other side