4 ways to add $100,000 in new business fees every year

help others to help you.

by domenick j. esposito
8 steps to great

all partners and partner candidates in small and midsized cpa firms are very aware that they need to originate new business each and every year. some are very successful at this aspect of the business; others not so much.

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many of those who are not very successful at originating new business haven’t developed the necessary skills to be effective at it. as a result, it isn’t an awful lot of fun.

to help partners and partner candidates with their responsibility of originating new business, i have identified four “tips” and “hooks” that will enable you to easily originate over $100,000 in new business fees each and every year. by the way, depending on the nature of a firm’s practice, $100,000 in new business fees a year is not a very lofty goal. in fact, it is a low goal for midsized firms in financial centers and major cities, where the goal usually is about $250,000 a year in new business fees for the most effective partners in firms in those locations.

“growth is never by mere chance; it is the result of forces working together.”

– james cash penney

founder, jcpenney

presented below is a summary of the four tips and hooks:

it starts with building relationships with your clients, who usually are the best source of new business. now we understand that you will not be able to build meaningful relationships with all your clients. there can be age differences and the like that become obstacles. so, find those clients who you can relate to and who can relate to you. go to lunch to discuss business, challenges and obstacles and see if your firm has observations and solutions that would help. inevitably, your conversation will shift to your lives outside of the office. that’s an opportunity to get to know each other beyond business, go to dinner with your significant others. try a round of golf if that works for you. these are great relationship builders. now here is your “hook.” while you are building your client relationships, make sure you are servicing your clients with high-quality compliance and advisory services. when it’s appropriate, ask your client if he/she is happy with the services you provide and when he/she says yes, let them know that you have a responsibility to build your own business and that you would appreciate an introduction to another business owner or cfo who might need a quality cpa.
while your clients are the best source of new business, attorneys, bankers, wealth management advisors and investment bankers are also great sources for potential referrals. start first with those advisors who work with your clients. you should find these professionals easy to talk to as you have a common interest – the same client(s). find out who these professionals are, reach out to them, go to lunch together. find out what they particularly enjoy and what they have to offer your clients. at the same time, make it a point to tell them what you and your firm are particularly good at, what you enjoy and how you might be different than your competition. see if your personalities mesh and if you have other common interests. and again, go to dinner with your significant others or try a round of golf if that works for you. now here is your “hook.” let your potential referral source know that you are very aware that, just like you, he/she is responsible for building their business and you will do your best to identify opportunities within your client base to refer them into. all you ask is that they keep you in mind when they are talking to their clients. if they have a need for a quality cpa, you would welcome an introduction.
while many small and midsized cpa firm partners/partner candidates don’t think about other accountants/consultants as potential referral sources, we suggest that you give them some serious consideration, particularly those who are partners/partner candidates at either larger or smaller firms. many times, larger firms have an opportunity for a new piece of business that doesn’t meet their firm’s new business criteria. rather than waste the opportunity to make “hay,” they will refer that opportunity to another cpa at a smaller firm. same goes for smaller firms. oftentimes, smaller firms don’t have the skills or credentials to handle a complex piece of work and, when this happens, there is an opportunity to refer that work out to another cpa firm. you want to be top of mind when these opportunities arise. now here is your “hook.” let your potential referral source know that you are very aware that, just like you, he/she is responsible for building their business and you will do your very best to reciprocate when the opportunities present themselves in your client base.
smaller cpa firms are also sources for potential acquisitions or mergers which, of course, is new business origination of a different sort but nevertheless just as important, if not more so, than a piece of business for a new client. that is why we suggest that it is particularly important to get to know who is out there. we just don’t know what the future holds and many times relationships with partners at smaller cpa firms can eventually lead to an opportunity for a strategic transaction. the “hook” in this particular situation is quite obvious. if a smaller firm is struggling with growth, profits, talent and/or leadership, and your firm can provide a solution to the smaller firm, you are creating a “win-win” situation for all involved. there are few things more rewarding than identifying a potential transaction that eventually gets consummated.

in conclusion

i hope these “tips” and “hooks” will help you unlock the key to being successful in originating new business each and every year. and while $100,000 in new business fees might initially sound daunting and an impossible goal, it really isn’t.

consider the cost of doing business every year. there isn’t a year that goes by when you don’t need to reward employees a compensation adjustment. there isn’t a year that goes by when you don’t have escalation in your lease commitments. there isn’t a year that goes by when you don’t have to enhance your technology. as an owner, these things help you keep in focus the need for you to originate new business.

posted on december 7, 2018

dom esposito

about the author

domenick j. esposito was the ceo of grant thornton, vice-chair of bdo, and national growth director at cohnreznick.

he is the author of "8 steps to great: the eight essential strategies driving success at the world's largest cpa firms. and how to apply the lessons at firms of all sizes," published by 卡塔尔世界杯常规比赛时间.

a life in public accounting

in 2016, esposito, then a former ceo of bdo, moved from a 46-year career in public accounting into the next phase of his professional life – consulting to cpa firms, launching a boutique advisory firm, esposito ceo2ceo, that provides advice to ceos, managing partners and other senior partners of cpa firms focused on the mid-market throughout the u.s.

with the launch, esposito authored “8 steps to great," a guide for ceos, managing partners, and other senior partners on how to move their firm to the next level.

cohnreznick national growth director

esposito was one of the most qualified individuals in the country to advise cpa firms on growth and profitability. through 2015, he was national practice & growth director and an executive board member of cohnreznick, llp, a mid-market sustainable brand and the tenth-largest cpa firm in the united states. he oversaw cohnreznick’s go-to-market industry specialization and consulting and advisory service lines. he was also intimately involved in the firm’s mergers and acquisitions and strategic and tactical activities for its public company and capital markets initiatives. dom joined the predecessor firm of j.h. cohn in 2002 as the chief operating officer and executive board member.

dom was also an independent director of ethan allen interiors inc. for several years (through 2014), dom was a member of the nasdaq listing and qualifications committee to the organization’s board of directors. he formerly served as the leader of the new york state society of cpas committee for large and medium-sized firms practice management. he also was an adjunct accounting professor at c.w. post/long island university.

bdo and grant thornton

through october 2002, dom was vice chairman at bdo, a mid-market sustainable brand and the seventh-largest international accounting and consulting firm in the u.s., with almost 50 offices and 3,400 employees. during his brief time with bdo, he was responsible for the alliance distribution network (at the time consisting of over 80 cpa firms, 10 law firms, and 25 consulting firms). he was also responsible for attracting and servicing a number of clients.

from 1979 through 2001, dom was with grant thornton, another mid-market sustainable brand and the sixth-largest international accounting and consulting firm in the u.s., with over 50 offices and 4,500 employees. he joined grant as an audit manager, became a partner in 1981, led the long island office from 1984 to 1986, became assistant managing partner of the new york office in 1986, and from 1988 to 1999, led the new york office. in 1999, esposito became a regional managing partner and for two years, through 2001, was the firm’s chief executive officer.

cpa, partner, mba, leader, influencer, media celebrity

between 1996 and 1998, and while he was ceo, esposito was on the partner board and was also on the board of grant thornton international – the worldwide umbrella organization. in these capacities, he developed strong experience in strategic thinking and execution, international relationships, corporate governance, partnership matters, branding, expense control, client relationships, and new business development.

as ceo, he took grant thornton to record earnings, consummated the largest line-of-business sale in the firm’s history, developed a major joint venture with axa financial, and made the largest practice acquisition in the firm’s history. from 1969 to 1979, esposito was with price waterhouse (now pwc), servicing ibm when he was promoted to manager in 1976.

dom was a cpa, has been quoted in national and local media, and has appeared on radio and cable tv.

esposito also testified before the securities and exchange commission.

he received his m.b.a. from st. john’s university and his b.s. from ferris state university. accountingtoday, one of the leading trade journals for the accounting profession, named esposito one of the most influential people in the profession for two consecutive years.

he passed away in 2021 at the age of 74.

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