Networking and the dying art of referrals

In a world where people are more likely to check your references on google than they are by picking up your phone is the age old business stalwart of the "qualified referral" dead and buried?

These days it seems harder and harder to just to keep track of my friends birthdays (unless facebook reminds me) let alone establish if they need a good electrician. I think more and more this referral function for better or worse is being replaced with facebook, linked in and especially twitter. I have actually lost track of the number of times someone has told me they found so and so through twitter!

So what is the new referral etiquette? Do you need to actively network on these mediums so that people will then refer work to you within the platform or can you rely on having a more passive presence to attract and secure work?

Small Business Accountants

Mining Super tax

Wow the mining industry must really care about the "super tax" they even have their own ads! Industry is normally hesitant to get involved in politics, at least in public.

I wonder if the Rudd Government will run a matching campaign?

Why don't clients recognise that commisions are a problem?

I had an interesting chat with a buyers advocate this morning and she is coming up against a commission issue, she has a client who has been told by their advisor to buy an off the plan property no doubt heavily influenced by the fact the advisor will receive a very healthy commission cheque.

When offered the option of having a third party review the deal to ensure it stacked up their reply was "we trust the financial planner". This comment is the problem, clients inevitably trust their advisers who have more knowledge and experience about financial matters than them.

The problem occurs because these commission payments DO influence advisers and the advice that they give, any advisor who says it doesn't is either crooked or kidding them selves.

Crunch time

In the next week or so I have to explain to my first existing client who is used to commisions paying for my work that all of a sudden he needs to fork out $1000+ for me to do the work he has asked me to do.

I"m sure he will be fine just all the other clients I have expelained fee for service to so far have been distinctly better off with fee for service whereas this client will be worse off both in real $ terms.

Small Business Accountants

Start up capital for super clinics

One of the Announcements on budget night was that the Government will spend $ 355 million on multidisciplinary super clinics. This funding is being made available in the form of grants for both the private and not for profit sector to build new multidisciplinary super clinics.

If you are a Doctor or associated practitioner then our advice is that you should be looking very hard at this round of grants to see if you can take advantage of them, it is not very often that the Government supplies start up capital to businesses of any description. Under the current round of funding it appears the Government will supply 50% of the start up capital to successful projects up to $ 2.5 million. We have extensive experience in putting together business plans in the medical industry and have access to all the resource you need put together a successful project including specialist lenders to fund the other 50% of the required funding.

If you are looking at these grants it is important to understand the Governments objectives and make sure you align your porject with them, also make sure you understand it the project that matters to the Government and not the business case. (unlike when presenting deals to banks or venture capital firms)

Source: www.smallbusinessworks.com.au

Referall Fees

I have an ethical Dilemma;

We receive referal fees for some referral's we give, in most cases the referral fees have little $ value so we have refused to accept them going forwards as it is just easier but for one service we receive very high referral fees. The service is good for our clients but if we do not get paid for the referral there is little reason to refer or market the service leaving our clients potentially disadvantaged or us working for free.

What should we do?

Small Business Accountants www.smallbusinessworks.com.au

Industry Funds Marketting

Once commisions become illegal what will Industry funds use in their TV advertising? It will be interesting to see what happens, I don't really mind but i do think it is a bit of a fear/scare campaign (no doubt it is extremely effective).

The new BT ad (i think only on foxtel) is a lot nicer, re-enforcing the positives and good strategy of long term investing.