By Annie Makoff Client relationsDon’t just attract clients – attract the right clients16 Oct 2024 When setting up practice, attracting new clients is essential. So how picky should you be?There’s a lot to think about when setting up in practice: getting licensed, having the right insurance, formulating business policies, installing and setting up software packages – the list goes on. But when it comes to business growth, attracting new clients is one of the most crucial elements of business success.General advice on finding the first paying clients includes:Utilise social media platforms such as LinkedIn: Update your profile, post regular updates and thoughts which demonstrate your expertise and become active on relevant business groups and forums.Message contacts directly with your availability and what you can offer.Network in person or online.Network/get involved in your local AAT branch.Consider speaking at local business events for free.But for many newly established accountancy practices, it’s not just a case of attracting clients, it’s a case of attracting the right clients. Do you say ‘yes’ to every client who approaches you or do you only say ‘yes’ to the ‘right’ clients?And how do you know who those ‘right’ clients are? The ones who are in your desired niche or those who are Higher Valued Customers (HVCs) – those who generate higher value work and therefore more revenue and profit for your business?Some practice owners say ‘yes’ to every client initially and then, once established, become more selective – but it’s not a straightforward process and will look different for every business.We asked accountants to reflect on their journey to attract the right kind of clients. Here’s what they said.Know when to say ‘no’Ria-Jaine Lincoln MAAT, Director, The Beauty AccountantWorking with people with shared values creates a synergy that helps with open and honest communication. This is important as there’s often an extra layer of stress when working with tax and money.I look for the following in my clients:respectpositive work ethicaccountabilityopen-mindednesshonesty and transparencydedication to being the best version of themselves.Most hair and beauty business owners are extremely hard working with a positive work ethic and an incredible drive and creativity so I really love to partner with them. It helps that I’m a former beauty therapist myself, so I speak their language!Accountability is a big value for me, so I run regular accountability sessions at no extra charge for our existing client base. These sessions help to build connections with clients and encourage regular touch-points.When starting out, saying ‘yes’ to every client isn’t necessarily a bad thing if there are robust processes in place. Client onboarding is a great way to see how things will go. If there are issues at onboarding level or when setting up software we take action as appropriate.I have a three-strike policy on everything now. I wish I applied this more in the early days!For me I began being pickier and setting boundaries when I worked out how much money was being lost to scope creep (overservicing), taking on clients who weren’t the best fit and the associated emotional stress.So I don’t think the issue is saying ‘yes’ too quickly but not saying ‘no’ – it’s important to set boundaries very early on.Verdict: Set boundaries and know when to say no. I have a three-strike policy on everything now.Specialising early on has helped attract the right clientsStephen Gibbens, Director, Accountech SolutionsWhen I started my accountancy business, I knew from the start that I wanted to specialise in tech start-ups as that was where I had the experience and networks.Not specialising would mean you’re just another general practice and only really compete on price.To start with you have to say ‘yes’ to almost everything to build up a reputation. Ultimately, you want to get to a point where you can say ‘no’ to almost everything except your dream clients.Over the past 22 years, our client base has evolved from initially being a mix of tech start-ups and other larger non-tech clients to exclusive tech companies – from start-ups to Series A. These tech companies are in the areas we’re most interested in and where the greatest opportunities lie: life sciences/medical devices and climate tech.Specialising early on has definitely made a difference – as a qualified accountant, you can do anything but you can’t do everything.Setting your company values early on and finding clients that align with them is also very important.Ours are to work with clients that do good, to act as a member of our clients’ teams and to treat every client as if they were our only client.We now specialise in impact-driven clients in these sectors, who treat us as members of their team, keep us informed of what the business is doing and value being part of an exclusive group. We limit the number of clients that we have which gives them easy access to experienced staff with the relevant background they need.Verdict: Specialising early on has made a difference in attracting the right clients.Accountancy-client relationships require mutual respectClare Bowen, Partner, MonahansIf our clients’ values don’t align with our own, then fundamentally, the client/accountant relationship won’t be as effective and productive as it could be. We want to work with clients who have the goal of improving their business finances and who want to take advice from valued professionals. In addition, we want to be part of our clients’ journey towards solid environmental, social and governance values.Our clients must treat their customers, employees and suppliers with respect and integrity. Additionally, an accountancy-client relationship has to be two-way for it to be successful and that level of respect needs to be clear from the beginning.When you are just starting out, you may not be considering the values of clients quite so much because you want to gain a broad amount of experience across a range of industries to build your portfolio. In some cases, accountancy firms have no choice but to take on clients even if they don’t feel their values align, but this can be detrimental to the industry as a whole. There needs to be trust between the business and accountant for the partnership to work effectively.Verdict: Accountancy-client relationships require mutual respect that’s clear from the start.I choose clients who are a good fit and share my valuesBatool Haider, Director, Account IncAlthough my practice is still in its infancy (it’s been operating for a year and a half) my approach in finding clients has been the same from the start.I’ve always been careful with the clients I take on – I choose clients that I feel would be a good fit instead of just chasing fees. A client that is not the right fit for the practice (or vice versa, as this is a two-way street) won’t last very long.All prospects are encouraged to book a no-obligation chat with me, where we talk about their business, what they are looking for from their accountant and how I can help them. This is to figure out whether we can work together and if our values align on both sides.My values are transparency, mutual respect, kindness and trust. I also look for family values and commitments in my prospective clients. Business owners with families have their hands full. I should know – I’m a business owner with a family!These clients are my favourite people to work with because I understand the sense of overwhelm and also, helping them sort their business affairs means I’ve made a tangible difference in their stress levels.Ultimately, it’s about building sustainable, long-term relationships that are mutually beneficial. The client needs to feel able to reach out to us and we need to be able to give advice that’s in their best interest.Verdict: I’m careful to choose clients who are a good fit – but it has to work both ways.Would you like to contribute to future articles like this one? If so, please get in touch with Annie Makoff-Clark at [email protected]. Annie Makoff is a freelance journalist and editor.