Rainmaking and Your Sales Mindset
Last week, I introduced my first blog on rainmaking, and introduced why and how I plan to share my 20+ years’ experience of selling professional services with my readers. I’ve learned many things over those years - most of them in the 13 years of building Miles Consulting Group, where as the owner, it is absolutely my responsibility to bring in the revenue. But, like many of my readers, clients and strategic partners, I’m a financial person. I certainly didn’t start out wanting to be in sales and marketing! Now, some of the biggest compliments I can get are, “Are you in sales?” OR “You don’t SEEM like an accountant! You have a much better personality.” Thank you very much.
For many of us in public accounting or financial consulting, the thought of having to go out and drum up business is scary and daunting. Our profession is largely comprised of very bright, yet often introverted individuals that very much want to get to the right answer, and in the process benefit our clients. Many of us are good with people as well and genuinely want to build relationships of trust and longevity with our clients.
Yet when we think about “Selling” – which often comes at the very beginning of that relationship that we wish to build, we get outside of our comfort zone. After all, no one wants to be “sold to”. People are selling to us all day long, and as trusted business advisors to our clients, we want to be above that fray. And yet, we need to engage in honest business development in order to build our businesses as well. It’s finding that balance that will lead us to the right place.
So much of it is truly believing that we have a product or service that people want and need, and that we offer it for a fair price. But since we are in the financial services industry, people also need to trust us before they’ll buy from us. And that doesn’t happen overnight. So, the mindset needs to be more about believing that we have a good product, people want and need it, we’ve priced it correctly, AND we need to spend time up front developing a relationship enough such that we can ultimately have the right to ask for the business. How long is that? It varies, of course. And it HAS happened to me that someone found out about my services at a networking event, took my card, and then called me to engage with me. But more often than not, it’s a process that can take weeks or months – even if they need my service. Patience is key. But it’s also not just about sitting by the phone and being patient. There are things you can be doing to gain that trust and credibility with a potential client while you wait!
In this blog series, we will share tips with you about how to get into the right frame of mind AND how to get the right practical tools to become more successful at starting and building those relationships and ultimately turn them into your “perfect client”. Check out our blog next week, when we discuss the perfect client and how to identify them.
Monika Miles is President of Miles Consulting Group, a firm specializing in multi-state tax consulting for middle market businesses. Clients include technology, manufacturing, software and SaaS based companies doing businesses across state lines. Miles Consulting Group assists companies in determining the sales tax and income tax ramifications of creating a taxable presence in a state and how to address these issues with the various states. When she’s not assisting clients with multi-state tax issues, she passionately shares Rainmaker strategies with other professional services firms. Check out our “Jumpstart Your Rainmaking” webinar series, debuting in November! Stay tuned.
What's out and what's in for California Legislation
Last Saturday, October 10th was a very busy day for Gov. Jerry Brown as decisions were made on the status of multiple bills. The Governor of California vetoed a package of nine bills that would have created new tax credits for the state. Here is a list of vetoed Assembly and Senate bills:
WHAT’S OUT
- A.B. 35 by Assembly member David S. Chiu (D-San Francisco) – Income taxes: credits: low-income housing: allocation increase.
- A.B. 88 by Assembly member Jimmy Gomez (D-Los Angeles) – Sales and use taxes: exemption: energy or water efficient home appliances.
- A.B. 99 by Assembly member Henry T. Perea (D-Fresno) – Personal income taxes: income exclusion: mortgage debt forgiveness.
- A.B. 428 by Assembly member Adrin Nazarian (D-Sherman Oaks) – Income taxes: credit: seismic retrofits.
- A.B. 437 by Assembly member Toni G. Atkins (D-San Diego) – Research and Development: Small Business Grant Program.
- A.B. 515 by Assembly member Susan Talamantes Eggman (D-Stockton) – Income taxes: credits: food bank donations.
- A.B. 931 by Assembly member Jacqui V. Irwin (D-Thousand Oaks) – Taxation: credit: hiring.
- S.B. 251 by Senator Richard D. Roth (D-Riverside) – Disability access: civil rights: income tax credit.
- S.B. 377 by Senator Jim Beall (D-San Jose) – Income taxes: insurance taxes: credits
Welcome to the Rainmaker Series
I recently attended the Women’s Business Conference, sponsored by NAWBO – the National Association of Women Business Owners. As a member of NAWBO for over 10 years (and current chapter President of NAWBO-Silicon Valley), I’m proud to say that the recent conference made me even more inspired to be a Woman Owned Business. As we celebrated the organization’s 40 year anniversary, some of our “founding mothers” were introduced, as were many Past National Presidents and other women who have truly blazed a trail for those of us who own our businesses today.
I got to thinking, what do we all have in common – besides being women? As business owners, we are responsible for bringing in the revenue – making rain. Without these skillsets in attracting customers, we could not have started or grown our businesses.
According to Wikipedia, “In business, a rainmaker is a person who brings in new business and wins new accounts almost by magic, since it is often not readily apparent how this new business activity is caused.” Read more
Example: Amnesty Programs in Action
If you saw our blog post last week, you know that there is a lot of amnesty program activity taking place right now. Although there are benefits to these types of programs, we have some objections to the way they work, including:
- A client fact pattern often needs to fit exactly into the state’s amnesty time window to be effective.
- The types of taxes considered under the amnesty can be limited and may not encompass our client’s entire picture.
- The rules for an amnesty program tend to be fairly rigid, not offering much leniency for either overpayments or underpayments.
Check out last week’s post for more detail. In the meantime, read on for an instance of how difficult amnesty programs can be.Read more
[Time Sensitive] Upcoming Amnesty Program Activity
We are seeing a lot of amnesty program activity taking place among the states right now. So what is an “amnesty program”? It is a specific initiative determined by a state’s legislature and governor, where delinquent taxpayers can come forward, make themselves known to the state, and file tax returns (and pay taxes) on specific taxes that the state designates through the program. An amnesty limits the taxable period covered, (e.g. all taxes due before 1/1/13), and the time period for coming forward (e.g. the taxpayer must come forward between 9/1 – 10/15/15 to be eligible).
The benefit to an amnesty program is it allows taxpayers to come forward voluntarily for back taxes. The understanding is that the taxpayer comes forward and the state will generally waive penalties and interest; it’s a method of bringing companies into compliance in a non-punitive way.
Sounds like a great idea – right?Read more
FOCUS ON LOUISIANA
As the calendar turns to autumn, we dedicate this month to Louisiana, the Pelican State. This state is a place for all ages. Louisiana is known for its soulful music, amazing food and rich heritage. The state’s multicultural background comes together in the form of festivities and lively interactions with the locals. Its annual Mardi Gras festivities and extravagant floats bring visitors from all over the world. After suffering a tragic loss in the form of Hurricane Katrina ten years ago, the state has been putting emphasis on its efforts to restore business and livelihood. Louisiana’s economic rise has been as hot as its climate.
Business Climate
For years, Louisiana has suffered a reputation as a challenging state in which to do business. However, Louisiana has been making significant changes. Since Gov. Jindal’s election to office in 2008, he has initiated state governmental ethic reforms and business tax cuts. Among the tax cuts is the removal of sales taxes on manufacturing machinery and equipment, natural gas and business utilities. The state also eliminated franchise tax on corporate debt and taxes on the sale of privately held business in order to persuade successful entrepreneurs to stay in the state. These changes have proved to be significant as the perception of the state is changing favorably.
A fascinating program Louisiana has is its LED Faststart program. The state partners with eligible companies to help develop their business, which in turn goes back to the community in the form of jobs and benefits to employees. Read more
Football and Multi-state Tax Issues
Yup! It’s that time of year again. Football season! Love it or hate it, we are in for several months of highs and lows (depending upon your favorite team), fantasy football and tailgate parties. So, before we get fully into the season, let’s examine how football is impacted by state tax laws.
The biggest state tax implications are arguably at the professional athlete level. As the attached article, indicates, millions of dollars are at stake not only for the states in which those athletes reside, but also in the states in which they play, practice, train or attend meetings. It all gets back to nexus and proper allocation of revenues to the states in which earned. What is nexus? Read more
Escheat Laws & Changes in Delaware
If you saw my last post about escheat laws, you understand the basic idea that California requires businesses to report unclaimed property in an effort to get it to its rightful owner. Another state with fairly aggressive escheat laws, Delaware, recently made some changes to the legislation that affect how the rules play out for businesses.
Changes to Escheat Laws in Delaware
In an effort to improve the state's escheat laws, Delaware changed a few of the regulations behind the law:
1. The look-back period for unclaimed property audits was reduced. Those meeting certain requirements will be able to enter into a voluntary disclosure agreement (VDA) which provides a shorter look-back period, meaning that if the State Escheator audits an organization holding unclaimed property, the dates of records reviewed will be years shorter. The VDA program is designed to encourage holders to become compliant without worrying about an unclaimed property audit.
- Moving forward, "For any ongoing audits the lookback period is reduced to begin with calendar year 1986. For any audit initiated from the date of enactment through December 31, 2016, the audit look-back period is reduced to begin with calendar year 1991. For any audit initiated on or after January 1, 2017, the audit look-back period will be 22 years prior to the report year for which the State Escheator provides written notice of examination."
California’s Escheat Laws & How They Affect Your Business
Are you familiar with escheat laws and how they may affect your business? A little-known process in many states (including California), escheat laws transfer “unclaimed property” to the state for safe holding and potentially, if they remain unclaimed, permanently.
How Escheat Laws Work
The theory behind escheat laws is that there is certain property that goes unclaimed by the rightful recipient. The organization with control over this property needs to return it to the rightful owner and, if they aren’t successful, the state government steps in to take control of the property until it’s returned to the owner or enough time passes that it’s forfeited (you can check out this website to see if there’s any property out there that belongs to you). Typical examples of escheatable property include dormant bank accounts, un-cashed payroll (or other) checks from businesses to employees and vendors, certain unclaimed gift certificates without expiration dates, and other property.Read more
Focus on Massachusetts
By being a part of the first 13 colonies, Massachusetts has had a long and rich history. From the arrival of the pilgrims, the first Thanksgiving celebration, to all the patriotic battles in order to form this nation, Massachusetts has been at the forefront of many things. In present day, one might say it is tough to live in this state due to the high costs of living; however its long history has allowed the state to establish solid foundations for the education and health of its citizens. Based on our research, the quality of life in Massachusetts is great, it just comes at a high price.
Business Climate
Whether the business climate of Massachusetts is good or bad depends on your perspective. The state is among the worst when it comes to business costs (labor and taxes) and cost of living, however the state has some very bright spots. In terms of quality of life, education, technology and innovation, Massachusetts is one of the best. Massachusetts has been able to capitalize on the financial and technology industry. The state is the home to many brokerage firms, insurance and tech companies. The state has also taken advantage of its geography as its fishing industry nets more than 2.5 million pounds of fish every year. Despite the high costs of living, the state provides a bountiful supply of highly-educated graduates from top-rated schools, notably Harvard University. The state is seeing an influx of start-up companies due to the skilled labor force. Massachusetts’ ability to provide a high quality of living and innovation likely offsets the cost of doing business.
Taxes
Receiving the nickname “Taxachusetts” in the past, the state of Massachusetts has always ranked largely unfriendly when it comes to state and local taxes. Yet, according to the Tax Foundation’s 2015 State Business Tax Climate Index, Massachusetts sits in the middle of the pack as it ranks 24th out of 50.Read more
