Podcast Transcript: From Corporate Sales to Self-Employed Tax Consultant with Thomas Bennett
Introduction
AJ Riedel: Tom, welcome to the podcast.
Thomas Bennett: Thanks for having me.
Path to Self-Employment
AJ Riedel: What was your path to becoming a self-employed consultant?
Thomas Bennett: My path came from spending over seven years in sales, a lot of that in corporate America. What really did it for me was when I was offering a pandemic relief tax credit through a Fortune 500 company I was working for. When that credit came out, I got extremely passionate about actually making an impact on business owners' lives, and I never really had an option to do that before.
That became my passion and what I was going to focus on. I helped a client get back a very large amount of money - we're talking about $350,000 back, essentially in a check. My commission was a couple hundred dollars. I realized that I wasn't being treated like I was valued there, and I wasn't going to be able to make the impact I wanted if I was getting treated like that.
I ended up partnering with a small firm I connected with through a local networking group and went all in with them as a 1099 self-employed partner while also building my brand and business, "The Money Connector." That was about three and a half years ago, and I don't plan on looking back.
Biggest Challenge: Cash Flow Issues
AJ Riedel: What's been the hardest thing you've been through in these three and a half years, and how did you overcome it?
Thomas Bennett: There have been a lot of setbacks and challenges. If I had to pick one, mainly because it was probably the first setback I experienced, was that a lot of what I did was paid out through the IRS. We would get paid when the client received their credit. As everyone knows, the IRS isn't the fastest moving organization. I have clients still to this day that I helped over two years ago who are still waiting for their check.
We got into other different tax credit opportunities and faced the same issue with significant delays. I've been self-employed for about three and a half years, and I'm probably looking at at least a year, probably more, of income that I'm still waiting on. That's definitely not the ideal start to self-employment and building a business, but no one said it was easy.
AJ Riedel: How do you manage your cash flow and incoming revenue in that situation?
Thomas Bennett: That's really what shifted me as "The Money Connector." When I had that large cash flow issue, I had to quickly pivot. I had that passion for tax credits and tax savings, and where I was able to pivot was getting into business funding. We already knew it was a four to eight-month range for when clients were projected to receive funds, so we could work with them and offer business funding in the meantime.
When those timelines extended significantly, it became a real concern that businesses needed lines of credit and SBA funding. Under "The Money Connector" brand, I've been able to handle all things money-related for businesses - creative insurance options, lending, and access to about 20 to 25 other tax and interest savings programs. This allows me to focus on some things for quicker cash flow while keeping my focus on the tax savings side.
Client Acquisition and Marketing
AJ Riedel: If a new consultant asked you how to get their first 10 clients, what would you tell them based on what's actually worked for you?
Thomas Bennett: It's all about building relationships. Obviously, that's not as easy in the climate we've adapted to with telesales and Zoom meetings, but just really being myself and being able to build relationships works. I get straight to the point when reaching out and mention some sort of value. "If this would be beneficial to you, does it make sense to connect now, or is there a better time?"
A lot of the people I'm reaching out to has been through relationships I've built over 10 years of being in sales, but also building momentum around who I'm helping. I might help a real estate company in New Jersey, then ride that momentum and reach out to other real estate firms in that area or businesses in general. "We're helping ABC Company do this. Is that something that would help your business?" People are pretty receptive to saving money on taxes through strategies they might not be aware of.
More recently, I've been building referral partnerships with CPAs, accountants, bookkeepers, and other business-to-business advisors. That's become pretty quick growing, and working alongside other advisors has helped me grow the business quickly.
AJ Riedel: So you actively seek referrals by asking the important question that many consultants are afraid to ask: "Who else do you know that could benefit from my services?"
Thomas Bennett: Yeah, I think that's the quickest way to build your brand and reputation. When you help someone and bring value to them, if you do a good job, they should naturally have other people for you. It's something I was dropping the ball on early in my career, but now it's such a huge and important piece - just asking, "Who else comes to mind? Do you have other business owners who would benefit from a quick conversation?" They're usually giving me at least one person, and maybe that turns into a huge partnership.
In my 10 years of experience, 95% of my success has come from picking up the phone and building relationships. I have other strategies in place, but that's what I've done to build the foundation, and it's something I love doing to this day.
Sales Advice for Non-Sales Consultants
AJ Riedel: What advice would you give to consultants who haven't been in sales and are intimidated by the idea?
Thomas Bennett: I think the industry as a whole has a bad connotation around the word "sales," but I don't. At the end of the day, we're doing a transaction - I'm helping a business save money, they're paying me out of that savings. It's considered a sale, and I'm passionate about the value I bring.
I think there are two completely different sides to the issue. One: people are scared to ask for the business. They make calls, go through presentations, and bring so much value, then just leave it there. They wonder why the sale didn't move forward, why they didn't sign on. Well, did you ask for the business?
The other side is people trying aggressive, hard-hitting tactics that people see right through from the beginning, ruining the relationship from the start.
My advice is to really understand what you're offering, but don't get stuck in analysis paralysis. Activity is the most important piece, along with building relationships and asking for the business. Follow-up is very important, but have your own system that's authentic to you. People want to know, like, and trust you as an individual - they don't want to buy from ABC Corporation.
AJ Riedel: You mentioned the importance of getting a yes or no rather than spending time on maybes.
Thomas Bennett: Exactly. It takes a hundred no's to get to a yes, or every no gets you closer to the yes. When you're not asking for the business at the right time, you don't want to ask too early, but you need to build value first. It's very important to get that yes or no. You get a yes, great - you provide value and build that long-term relationship. You get a no, that might mean "not yet" or it's not a fit.
When you build up a business, you don't really have time for the maybes. You need to quickly find out if it's going to be a mutual fit instead of playing that maybe game where you're consistently following up, and six months down the road you're still reaching out and the deal is never going to go anywhere.
Overcoming the CPA Gatekeeper Challenge
AJ Riedel: You work against a lot of "no's" because of the gatekeeper called the CPA. Tell me how you realized they were blocking you from getting business and what you did about it.
Thomas Bennett: Starting out, I was offering tax credits and pandemic relief. The good thing was it quickly became popular - every business started to know about it, so it wasn't like I was offering something that sounded too good to be true.
The challenge I ran into was when I'm offering tax credits and checks to businesses - we're talking pretty large numbers - I had no problem explaining the credit, getting their information, and using my team of CPAs and tax professionals to run the numbers down to the penny. Then I'd go back to the client with forms to sign and move forward.
Sometimes at that point, I'd hear, "Well, my CPA reviewed everything. We're actually not eligible, or there's no way we're eligible for this amount." We'd go back and explain that this was through all the information they provided us - tax documents, P&Ls, tax returns, 941s, everything. They'd still push back.
What I started doing was explaining, "Let's get on a call with your CPA, go over everything, explain the program, and why this is legitimate." That helped oftentimes, though sometimes their CPA was too busy or wouldn't take the time to meet with us.
In cases where it was over six figures, I would let them know: "I can't sit back and let your CPA cost you over a hundred thousand dollars in credit to your business." I'd stay consistent with that and get them across the finish line.
What I've broken it down to is that more than 99% of CPAs focus really on tax returns, making sure the business is paying their taxes, and maybe help with depreciation or write-offs. But less than 1% of CPAs actually focus on tax strategy and tax education. It's not part of their licensure or requirement, so they don't spend time on tax strategy or getting to know the tax code.
Due to that, I've put even more focus on CPA partnerships because it's such a strong partnership with what I do and what they do. Just last week, I had a CPA in New Jersey reach out saying, "I've done everything I can for my clients, I've saved them as much as I can. I like what you're doing. Can you tell me what you can do for them?"
This was the second time talking to the CPA, and he sent me four very strong cases right off the bat. We're talking about one individual making four million dollars a year in income and paying way too much in taxes. When a CPA has that relationship and says, "See where you can help them out," they're going to move forward because their CPA sent them.
It started off as a challenge, and now it's becoming probably the main source of my revenue within the next few months.
Lessons Learned: What Would You Do Differently?
AJ Riedel: What would you do differently if you were starting your consulting practice today, knowing what you know now?
Thomas Bennett: I think I was very fortunate with the start I had - good partners from the beginning, an offering that was a no-brainer, and really just my drive and commitment to making it happen. But I was jumping into it with a program that I knew would not pay me for at least six months, which was obviously very challenging.
Starting out, I would make sure I have a full picture plan from marketing, systems, operations, and even maybe having a team. That's one area that would have streamlined my results - really having a strict plan for the day. I would often lose focus or focus in the wrong area because there was so much opportunity and so many businesses I felt obligated to get in front of.
I would say partners are very important. I got to the point where I was trying to do way too much on my own. When I leverage the right partners, it benefits everyone. Just staying consistent and passionate about what I do and not getting analysis paralysis - there are times where we might get stuck learning so much information that we're focusing on something that's not actually generating revenue.
Make sure you're in the right mindset, motivated, and have that drive to go out there and have the conversations. Make sure you're doing something that you believe in and provides value. For like seven years of my career, it was more "nice to have" - it wasn't a true need or value. Once you find that, it really makes a world of difference.
Vision for Growth
AJ Riedel: What's your vision for how you want to grow your practice?
Thomas Bennett: Right now, realistically, within the next five years, I believe I can be a leader in the industry when it comes to tax savings and tax strategy through the partnerships I have. It's my obligation to get in front of as many business owners and individuals as I can. A big part of that is content creation and continuing what I'm doing and building those relationships.
For the practice, it's consistently having those conversations with business owners and seeing what type of impact I can have on their business. I know early on if I can or can't help them, and I'm never going to waste a business owner's time. I'll let them know right up front if we might be a little ways away from this, but let's check back in six months.
It's been three and a half years of building this out. There have been a lot of ups and downs, pivots, and changes in the offerings, but I've always aligned at the core of what the brand represents - connecting businesses to money. Moving forward, it's taking everything I mentioned and making sure I stay disciplined and continue to grow the business by leveraging all the right resources.
Key Mindset: Obligation to Help
AJ Riedel: You mentioned having an "obligation" to make business owners aware of savings available to them. That stood out because many consultants say they don't want to be too salesy or pushy. You have the mindset that says, "I have a valuable service, I'm saving people money, and I'm doing them a disservice if I don't talk to them."
Thomas Bennett: I have not always felt that way. For the first seven years of my career, I didn't feel that way at all. I was selling products that were beneficial to business owners, but it wasn't changing the business or the business owner's life.
What changed for me was seeing business owners' doors shut down left and right during the pandemic. I didn't realize how passionate I was about small business, but I was talking to business owners in tears saying their business was going to shut down. I've had hundreds of clients whose businesses stayed alive because of the help we were able to provide.
That's continued to grow my passion every day because I know I truly am making a difference for business owners. The majority of businesses that made it through the pandemic are getting in a better spot, but there's still a large amount facing financial challenges. Business owners have had to put everything they have into keeping the business alive.
When I can come in and save them on probably one of their largest expenses, it gets me very excited about what I do. I think a consultant really does need to make that shift to get where they need to be in business. As a consultant, your job is to bring value to your clients and make an impact on their life. If you're worried about bothering them or being a nuisance, maybe it's the wrong offering for you, or maybe you need to find that passion.
Final Advice for Struggling Consultants
AJ Riedel: Any last words of advice for self-employed consultants struggling with the feast or famine cycle?
Thomas Bennett: Unfortunately, I think it's an important part of the business. It's very important for business owners and entrepreneurs to have those ups and downs - that's why it's called entrepreneurship. No matter what you're doing, there are going to be times probably every month where you think it'd be easier to pack things up and go back to something else. That's oftentimes just a sign of growth - you get through that, and then you get a big win in business.
It's very important to truly find out who you are as a person and business owner and stay true to that. One of the biggest issues I see is people trying to align more with someone they might not be. That costs them business and ruins relationships.
Build something up, be yourself, be passionate about it, and help as many people as you can. Recognize that you're not for everybody - you're looking for the right fit. Part of the process of selling is making sure they meet your qualifications. It's not just taking any client; it's clients that meet your criteria and that you want to work with.
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This interview was conducted for the "Thriving Through" podcast with AJ Riedel, featuring Thomas Bennett, founder of "The Money Connector," discussing his journey from corporate sales to successful self-employed tax consultant.
