Why Referral Marketing And Accounting Software Are Business Essentials

Zach Cutler

Young Entrepreneur Council

Offices aren’t prestigious anymoreFor my first couple years as an entrepreneur, I was constantly trying to figure out ways to rent office space. I thought that it would add prestige or glamour to my business. I didn’t have enough cash flow to justify office rent, and therefore sacrificed the office in favour of working hard to deliver an amazing service. I then became aware of virtual offices, in which $80 per month got me a prestigious address in the heart of Washington DC’s business district.

Recently, my company moved into a real office, and while it’s nice, all the glamour I had envisioned was in fact just a fantasy. I wish I had realised sooner that a business is offering a great product or services and has a growing clientele is what really mattered. Everything else is just gravy, including the all-too-coveted office.

Word-of-Mouth is the Best Marketing

When I started The Cutler Group, my time was split between offering a great service to existing clients and marketing my services to potential new clients. As the months progressed, I realised that those clients for which I had performed best began referring me to new clients. The deals from referrals were easy to close because of the strong endorsement from other satisfied clients. From that point, it all clicked: spend 100 per cent of my time delivering an incredible service, so my clients will be thrilled and will refer me to new clients. This is by far the best marketing strategy a 21st-century company can execute. Had I known it from the outset, perhaps my client base would be double what it is now. Seth Godin provides a great in-depth explanation about word-of-mouth marketing in his book Purple Cow.

Accounting Software Is Key

As a bootstrap entrepreneur, the $300 investment in accounting software seemed unnecessary, especially with my command of Excel. This turned out to be absolutely wrong. For the first year in my business, I spent many wasted hours trying to remember which clients had paid, who owed me money, what expenses I needed to write off with my tax returns, etc. It turned out to be a big headache that caused me untold amounts of time. Therefore, I encourage all budding entrepreneurs to invest in accounting software from day one. It’s not just about convenience, accounting software is essential for the legal and financial organisation of your business.

Zach Cutler is a dynamic entrepreneur and marketing professional who formed The Cutler Group, a communications firm, in 2009. He specialises in crafting innovative communication campaigns to help businesses and organisations thrive.

The Young Entrepreneur Council (Y.E.C.) is an invite-only nonprofit organisation comprised of the country’s most promising young entrepreneurs. The Y.E.C promotes entrepreneurship as a solution to youth unemployment and underemployment and provides its members with access to tools, mentorship, and resources that support each stage of a business’s development and growth.

NOW WATCH: Ideas videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.