David Cottle Consulting: Key Points

Plant Seeds in tax season for a bountiful harvest in the summer

Income tax season is when clients are most receptive to tax, estate, business, and financial planning. Yet that is when you have the least time available to deliver these services. It's ironic that your clients are the hottest prospects just when you don't want them to be.

What to do... What to do...

Use the tax season to set up later appointments to address these important issues with clients.

For example, my latest book Target Marketing: How to Gain Profitable New Business¹contains a checklist, 60 Clues to Tax and Financial Services on your Client's 1040. Since the book was published earlier this year, I have expanded the list to 84 clues.²

Here's how to use the list:
When clients come to deliver their data or to pick up their return, sit down with them and say, "If it's alright with you, I would like to review your data/return with you to see if there are opportunities we are overlooking or threats we should address. Would that be alright?" Nine out of 10 clients will be glad you take the time to review their data or return with them. The review should take about a half-hour with most clients.

By the way, those bold-faced phrases, "If it's alright with you" and "Would that be alright?" are very important. They let clients feel in control of the interview and its outcome. You don't want to ram anything down your client's throat, so "ask to ask." Okay?

You can apply this interviewing technique to non-tax and business clients also. The Target Marketing book also has checklists for a Business Client Meeting Agenda, an Individual Client Meeting Agenda, and a Business Goal Sheet and Action Plan.³

KEY POINT: If nothing keeps your client awake at night, maybe you have not asked the right question.

Here's a variation: "If it's alright with you, I would like to ask you a few questions to see if there are financial/business opportunities we are overlooking or threats we should address. Would that be alright?"

Then go over some of the items on the checklist.

Clients are willing to pay significant fees if you can save them potential taxes or improve their financial position or business. Tell clients during the interview that they may have an estate, business or financial problem.

EXAMPLE: Every client with combined net worth and life insurance coverage of over $675,000 is a potential estate planning client. But too many CPAs do not even know each client's net worth. And even fewer know each client's life insurance coverage.

As you know, life insurance is the most heavily taxed asset in America. So much insurance is included in the estate - starting at 35 percent! It is simple to set up a life insurance trust. Yet few CPAs take the time to investigate.

You owe it to your clients to identify every one with a potential tax, financial, or business problem.

EXAMPLE: "Jim" reviewed clients' 1040s for dividend and interest income. He identified an elderly couple with a $400,000 estate tax liability when the second spouse died. Setting up an A-B Trust protected the clients' estates. When Jim met with the clients to discuss his recommendations, the husband was delighted at the savings and happily paid a fee over $1,000 above the CPA's standard charges, and indicated he would have been happy with a fee of $15,000! KEY POINT: Since people buy solutions to problems, if your client does not have a problem, you do not have a prospect.

For clients to act, they must be dissatisfied with their current state of affairs. Use the interview to find, awaken, and stimulate that dissatisfaction about the current situation to convince the client to make changes, such as planning his or her estate or retirement.

Dig your well before you're thirsty

If you wait until summer to talk to your clients about tax, estate, business, and financial planning, they might think you were looking for their business only because you have a vacant appointment book. That is bad for your credibility.

The fact is that clients need these value-added services all the time - you just don't have the time during the busy season.

Instead, talk to them during the tax season - just set up the work appointment for after the busy season.

Do it this way: "Well, Charlie and Janet, it looks like you may have an estate tax problem. I won't know for sure until I get more information and do some research. Let's set up an appointment for May 17 to discuss this. Would that be alright?"

About the toughest response you will get is "How much will that cost?" In which case reply, "Nothing. The meeting will be our gift to you. If it turns out that you do need an estate plan, I'll be happy to discuss prices with you after I know more about how much work we need to do. Fair enough?"

That "fair enough" comment is also a valuable communications tool. It lets clients keep control of their situation and assures them you will not run up a bill without their agreement.

When you meet in the summer, decide whether the client needs the service and discuss prices. If you get a price objection, try this response: "I'm fortunate. I am in a financial position where I do not need your money. But that is not as relevant as the fact that you need this service. It will help you achieve your financial goals and sleep better at night knowing that you are taking the right steps to secure your financial future.

"My experience has been that when you really need something, you are going to pay for it whether you buy it or not. And it will usually cost you more and be more painful if you don't buy it."

I hope you find these observations helpful. If you would like a copy of the 84 clues, write, fax, or email us at clues@cottleconsulting.com

If your profitability or growth is not what it should be, or if you feel like "I don't own my business; my business owns me!" maybe we can help you like we have helped hundreds of other businesses. Call us for a no-obligation free consultation valued at $400. And you will always make a profit on our services. Remember: Our service doesn't cost . . . It pays! We are not an expense: we are an investment!

Dave Cottle

¹ (c) 2000 by Harcourt Professional Publishing. Available for $74.00 at www.hpponline.com with money-back guarantee. Available for $54.20 at www.amazon.com.

² If you would like to have a copy of the clues, I'll send you a printed copy for a nominal charge, or I'll email you one for free.

³ I can't send you those, but you can always buy the book or develop your own.

David Cottle Consulting
3007 Lake Woodward Drive

Eustis, FL 32726

Tel: (352) 301-4725
Fax: (772) 673-0293