In this document, Dana Bottorff discusses the importance of networking for business development in small and mid-sized accounting firms. Bottorff emphasizes that networking involves developing mutually beneficial relationships over time through various professional organizations and events. Effective networking requires partners to dedicate time for business development activities and maintain relationships by following up with contacts. Measuring the success of networking efforts can include tracking new leads and referrals generated for the firm on an annual basis.

1. Networking:
Growing Your Practice
One Handshake at a Time
Webinar by Dana Bottorff

2. BusinessDevelopmentOverview
In small and mid-sized accounting firms, business development is a
responsibility that is — ideally — shared by all partners. But of course,
very few firms are “ideal,” and the question of who takes responsibility
for business development is one that should be openly and honestly
discussed among partners.
Is it solely the responsibility of…
• The managing partner?
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

3. BusinessDevelopmentOverview
In small and mid-sized accounting firms, business development is a
responsibility that is — ideally — shared by all partners. But of course,
very few firms are “ideal,” and the question of who takes responsibility
for business development is one that should be openly and honestly
discussed among partners.
Is it solely the responsibility of…
• The managing partner?
• The partner who has the most talent as a “natural
rainmaker?”
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

4. BusinessDevelopmentOverview
In small and mid-sized accounting firms, business development is a
responsibility that is — ideally — shared by all partners. But of course,
very few firms are “ideal,” and the question of who takes responsibility
for business development is one that should be openly and honestly
discussed among partners.
Is it solely the responsibility of…
• The managing partner?
• The partner who has the most talent as a “natural
rainmaker?”
• The partner who has the most time available?
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

5. BusinessDevelopmentOverview
In small and mid-sized accounting firms, business development is a
responsibility that is — ideally — shared by all partners. But of course,
very few firms are “ideal,” and the question of who takes responsibility
for business development is one that should be openly and honestly
discussed among partners.
Is it solely the responsibility of…
• The managing partner?
• The partner who has the most talent as a “natural
rainmaker?”
• The partner who has the most time available?
• The youngest and most energetic partners?
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

6. BusinessDevelopmentOverview
TEAMWORK
Though the focus is usually on partners, the responsibility for business
development really belongs to everyone at a CPA firm.
Managers, supervisors and other staff
should be part of the business
development loop at levels
appropriate to their experience and
expertise. Particularly at smaller firms,
everyone should be encouraged – and
TRAINED – to participate in business
development efforts.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

7. BusinessDevelopmentOverview
Responsibility for business development should be
discussed and agreed upon by a
consensus of partners, and everyone should
understand that the likely results — firm growth — will be
directly linked to the size and level of commitment that is
agreed upon.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

8. BusinessDevelopmentOverview
Formula for calculating business development ROI
Use average partner income plus a factor for partner expenses on the financial
statement. Take that cost times the number of hours you spend with growth
activities. Compute a 20% return on that investment and then consider the
margin on the average dollar of revenue the firm produces to determine the
revenue that must be generated from the time investment in business
development activities.
Here's an example:
• 300 hours per year on growth @ $150/hour
• Cost per partner = $45,000
• 20% ROI on partner time = $54,000 ($45K + 20% of $45,000)
• Revenue at 30% margin = $180,000
Source: Inside Public Accounting, July 2006
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

9. BusinessDevelopmentOverview
or
Business development, for the most part, cannot be
delegated. Billable work can, and it’s important for partners to
distribute the workload internally to allow themselves time
for business development.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

10. BusinessDevelopmentOverview
or
Business development, for the most part, cannot be
delegated. Billable work can, and it’s important for partners to
distribute the workload internally to allow themselves time
for business development.
After all, business development today will create the billable
work for tomorrow.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

11. Networking
An important element of any business development
plan is networking, which is where we will keep our
focus today.
Remember, networking is only a PART of a well-
conceived business development plan, but it’s a very
important part.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

12. What is networking?
Developing mutually beneficial
relationships
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

13. What is networking?
Developing mutually beneficial
relationships
That’s all there is to it.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

14. Where do wefind our natural networks?
Soccer moms are great at networking
• Find carpool partners
• Share babysitters’ names
• Who came down with strep this week?
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

15. Where do wefind our natural networks?
Professional services providers need to be like soccer moms!
Who are your likely professional
allies/referral partners?
• Lawyers
• Bankers
• Business insurance brokers
• HR consultants (retirement plan
audits)
• Trade association members and
professionals (niche markets)
• College alumni groups
• Business owners
• Current clients
Who are your natural networking
partners in other areas of your life?
• Golf club members
• Friends
• Fellow religious congregants
• Fellow members of civic
organizations and boards
• Relatives
• Parents of children’s friends
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

16. NetworkingOpportunityWorksheet
Category Group Key
Influencers
Contacts 2015
Objective
Civic (example) Rotary Club Ray Smith, prez Steve Sims, sec’y Relationships with 5
local business
owners & 3 new
referral partners
Civic
Business
Social
Religious
Children
Hobbies
Neighborhood
Interests
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

17. How is networkingbeneficial?
Know me
Like me
Trust me
Refer me
By building relationships over time,
networking partners get to know us and trust
our expertise enough to refer business leads
to us.
It won’t happen after only one
meeting. Business networking is most
effective when you get to know people over a
period of time, with repeated exposure.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

18. How is networkingbeneficial?
Effective networking builds not only
your personal brand, but your firm’s
brand, as well. While the people you
meet respond to you as an individual,
you are an ambassador for your firm.
Use networking as an opportunity to
mentor younger members of your firm!
They need to learn how to develop
business.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

19. Networking:Getting started
• Networking can happen in a variety of settings:
 Organizational events (i.e. chamber of commerce meetings, trade
association conferences, seminars and workshops)
 Individual one-on-one or small group settings (lunches, after-hours
cocktails, etc.)
• Solidify and expand existing networking relationships — make a
phone call, send a handwritten note, share an article that might be of
interest to them or their clients, invite them to lunch with a third
party who might be a good introduction for them.
• Let your referral partners know of any new service lines your firm has
added or areas of increased expertise and knowledge you’ve
developed.
• Most importantly — give something to them. Be generous.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

20. Networking:Be a joiner
Maximize your networking experience with organizational events
Consider which organizations would most benefit your firm.
• Attend a few events as a nonmember.
• Once you decide an organization is worthwhile, join it so you can get the
benefit of being listed in its directory.
• Once you have joined an organization, make a commitment to attending its
events on a regular basis.
Assign one or two individuals to “own” each
organization the firm joins.
Those individuals will have primary
responsibility for developing networking
relationships in those organizations.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

21. Networking:Makingit comfortable
Networking is conversation, not selling.
• Ask questions — observe the 80/20 rule
• Share information — be generous
• Exchange business cards
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

22. Networking:Makingit comfortable
A word about the ‘elevator speech’
Typically, an accounting professional will describe his/her firm as
“a full-service accounting firm offering accounting, audit and tax
services.” It is not very memorable.
That same 30 seconds could be put to much better use with:
“Is your company looking for a higher line of credit at a lower
interest rate from your lender? A financial statement audit
from an independent CPA firm could help you achieve that
goal, and much more. I’m Jo Smith with Smith & Jones, a full
service accounting firm based in Yourtown, and we help
privately-held businesses stay on firm financial footing.”
Change up your elevator speech to fit the situation - if a new tax
provision will affect many businesses, build your elevator speech
around it. If your firm is building a new service niche, mention
that.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

23. Networking:Makingit comfortable
At an organization event, you may not know anyone in the room. To prepare,
arrive with three topics in mind as conversation starters:
• 1 or 2 business headlines of the day
culled from web sites, The Wall
Street Journal , your local business
journal or industry trade
publications.
• Current local events that affect
business — Is there a new business
locating to your area? Has the state
or the city announced new tax
incentives for hiring or keeping jobs
in the area?
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

24. Networking:Makingit comfortable
Keep the conversation going — ask
the other person’s:
• Perspective
• Approach
• Take on
• Ideas about
• Vision
• Outlook
• Viewpoint
• Perception
• Prediction
More conversation
boosters:
• Tell me more...
• What do you think about that?
• How so?
• For example?
• How would that affect you?
• Why now?
• What has changed?
Steer clear of religion, politics and conversational dead ends.
Personal topics are OK, such as sports, movies and music, but don’t
let them dominate the conversation. You have a business goal here.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

25. Networking:Makingit effective
Advance audience analysis
When you are attending an event, ask
for an advance attendee list from the
sponsoring organization.
• Search list for 2 - 3 people you want
to make contact with.
• Seek out these individuals at the
event, or tell the organizers in
advance that you would like to be
seated with them.
• Arrive armed with some industry
information you can share with your
targeted individuals.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

26. Networking:Makingit effective
Follow up - follow up - follow up!
• Send “great to meet you” emails.
• Share an article of interest.
• Send a handwritten note attached to your firm’s most recent newsletter.
• Invite them to lunch, if appropriate.
• Invite them to attend an industry event with you.
• Invite them to “connect” on LinkedIn.
Be sure that all networking contacts are given
to your admin department for addition to the
firm’s database.
Your networking contacts should receive all
firm newsletters and e-blasts as a way to
keep your relationships current and educate
them as to your firm’s expertise.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

27. Networking:Makingit effective
A note about business cards
• Remember to have business cards with you at all times! Keep a stack of
them in the glove compartment of your car for emergencies.
• At networking events, designate one pocket for your business cards,
and another pocket for other people’s business cards.
• Ladies — Do NOT fumble around in your purse for business cards! Have
them ready before you enter the room. Carry a small purse (if any) with a
shoulder strap so your hands can be free for shaking hands, holding a
drink, etc.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

28. Networking:How does socialmediafit in?
LinkedIn is an excellent way to reinforce your
networking relationships
• Create your LinkedIn profile.
• See who among your current contacts is on LinkedIn
and invite them to “connect.”
• When you meet someone at a networking event
with whom you want to maintain contact, invite
them to connect on LinkedIn.
• Take note of which LinkedIn groups your contacts
and clients belong to.
• Join LinkedIn groups that appeal to your professional
interests.
• Post articles to your LinkedIn status update at least
once a month.
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

29. ROI:Measuringnetworkingsuccess
How will you measure the success of your networking efforts?
• Number of leads added to the firm’s sales pipeline
• Number of referral contacts added to the firm’s database
• Number of contacts added to your personal contact list
How long will it take to see measurable results?
Networking activities should be reviewed on an
annual basis.
• Are organizational memberships yielding
good contacts?
• Should the firm put more people into a
certain organization?
• Should the firm drop certain
memberships or activities ?
• Are all partners doing as much individual
one-on-one networking as possible? Are
they getting leads in the pipeline?
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff

30. A final thought
Business networking is an ongoing
process. It is never “finished.”
Remember to give more than you
expect to receive, and stay OUT THERE,
constantly circulating.
Thank you for your time and attention.
Questions?
Networking: Growing Your Practice One Handshake at a Time Presenter: Dana Bottorff