{"id":225255,"date":"2023-03-29T18:00:05","date_gmt":"2023-03-29T18:00:05","guid":{"rendered":"https:\/\/www.markperlbergcpa.com\/the-why-how-of-business-referrals-for-atlanta-owners\/"},"modified":"2023-03-29T18:00:05","modified_gmt":"2023-03-29T18:00:05","slug":"the-why-how-of-business-referrals-for-atlanta-owners","status":"publish","type":"post","link":"https:\/\/prosperlcpa.com\/blog\/2023\/03\/the-why-how-of-business-referrals-for-atlanta-owners\/","title":{"rendered":"The Why & How of Business Referrals for Atlanta Owners"},"content":{"rendered":"
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Firstly, before I jump into what business referrals could mean for your Atlanta business, I wanted you to see this<\/span><\/a>. <\/p>\n

Even though I don\u2019t normally talk about tax stuff \u2026 the explosion of shady flim-flammers gaming the Employee Retention Credit and making questionable claims on behalf of business owners is raising all kinds of red flags at the IRS.<\/p>\n

As it should.<\/p>\n

Here is the headline of the IRS\u2019s most recent \u201cDirty Dozen\u201d release: IRS opens 2023 Dirty Dozen with warning about Employee Retention Credit claims; increased scrutiny follows aggressive promoters making offers too good to be true.<\/strong><\/p>\n

Indeed.<\/p>\n

And there\u2019s more to say about this in the future, but for now, if you\u2019ve been potentially victimized by one of these overly-aggressive promoters, let\u2019s talk:
calendly.com\/mark-perlberg-cpa<\/a><\/strong><\/span><\/p>\n

One of the strategies employed by these slim shadies is offering extravagant referral fees. And I\u2019m not opposed to a nice referral bonus.<\/p>\n

But when they made it so large (sometimes into the five figures), it became a recipe to attract the sharks. <\/p>\n

However, when you do things right \u2014 working ethically, professionally, and well behind the scenes with vendors, clients, and other businesses \u2014 it means good things for your Atlanta small business. After all, you\u2019re small fish in an economic tank with much bigger fish (and those sharks). Survival chances are greater when you swim with others.<\/p>\n

That will be the subject of today\u2019s Note.<\/p>\n

But before I dive more into that, I do want to make one more brief diversion to revisit the global banking situation\u2026 and the vulnerability of the banking world right now. <\/strong><\/p>\n

It\u2019s easy to let panic set in. The reality that your Atlanta business could take a big hit because the bank fails in which your money is invested, means you might be tempted to scramble to pre-emptively right the ship. <\/p>\n

Yes, things could get rough ahead, and the recession that\u2019s been threatening for the last year is almost a certainty. And if you\u2019re looking for a business loan, banks are going to be much more stringent about giving those out. They want to make sure you\u2019ll make good on their investment. <\/span><\/p>\n

As far as the possibility of your business being threatened by a bank failure, if you\u2019ve got under $250,000 in FDIC insured US bank account, then you can take a breath (also, joint accounts are covered up to $500,000). <\/span><\/p>\n

More than that, we should take a look at what that means for your business. It might be time to \u201ckick the tires\u201d of your bank to ensure reliability. It might even mean making a switch.<\/span><\/p>\n

And we can talk about what that looks like. Just grab a time with us.
calendly.com\/mark-perlberg-cpa<\/a><\/strong><\/span><\/p>\n

Most of all, don\u2019t get caught up in hysteria. <\/span><\/p>\n

Alright.<\/span><\/p>\n

So, today I want to talk about a way that you can build your business and create some strength in your financial framework through a bit of an indirect method. (A little something called business referrals.) <\/span><\/p>\n

What does building a referral system mean for you?<\/i><\/span><\/p>\n

The Why & How of Business Referrals for Atlanta Owners<\/strong><\/span>
”You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.\u201d – Dale Carnegie<\/i><\/span><\/p>\n

Everybody knows about <\/i>customer and employee referral programs, which usually offer a quick, monetized reward for sending business your way. They\u2019re great when they work well. (Most word-of-mouth programs are as long as your company has a good reputation.) <\/span><\/p>\n

As small business owners, we all know referrals are GOLD. Most customers who have a good experience with a company will recommend that company. Leads from those referrals tend to be worth more in both the short and long term, and most people trust referrals from people they know personally. <\/span><\/p>\n

It\u2019s like having salespeople you don\u2019t have to pay. <\/span><\/p>\n

Then there are other businesses (non-competitors of yours) who may be willing to recommend your company to their own customers. You, of course, must be willing to recommend your customers to them. You may well already have an ad hoc, informal version of this arrangement. Nowadays, this is called a \u201creferral team.\u201d You can formalize this process for an even better payoff. <\/span><\/p>\n

Here\u2019s how to start on the business referrals track.  <\/strong><\/span><\/p>\n

Building a business referrals team: <\/strong>Who to approach?<\/strong><\/span><\/p>\n

Ideally, you\u2019re looking to put together a team of about six or so associates who have companies that complement \u2014 but do not compete directly \u2014 with what your company does. Your prospective team members are determined by your company\u2019s goals, your market and industry, your (presumably good) opinion of your prospective fellow team members, and your idea of who\u2019d be most willing to spread the word about you.<\/span><\/p>\n

Regarding competition, there is wiggle room in your choices: In our line of work, for instance, one accounting firm that does only tax preparation might make an excellent referral teammate for an accounting firm that does only business advising. Maybe an accounting firm that handles tax and accounting could find good prospective teammates in lawyers, insurance agents, IT providers, and so on. <\/span><\/p>\n

The point is to create a steady, two-way flow of new customers. An effective referral team is also usually a small one. That\u2019s the best way to hold every member (including you) accountable for sending referrals to each other. <\/span><\/p>\n

A little common sense here: Make sure your company is ready to participate in this network and handle the new business. If there are any problems handling the business coming through your door already or any customer service issues you\u2019ve been meaning to clean up, now\u2019s the time! You do not<\/i> want team members referring customers to you and then having those new relationships consistently go south \u2014 there\u2019s no quicker way to see your referral team unravel. <\/strong><\/span><\/p>\n

Building a business referrals team: Formalities<\/strong><\/span><\/p>\n

As we said, you probably have informal referral arrangements with some businesses already. A proper business referrals team (sometimes called a cross-referral network) takes the expectations of the idea a step further to build reciprocal relationships. Here are some thoughts:<\/span><\/p>\n