Networking is a crucial part of planning for most small businesses.

Most professional service firms are small businesses. Whether it is a 10-partner law firm or a computer consulting firm, yours is a small business. But many service providers find it very hard to plan their revenues.

After all, a law firm can't predict when a client is going to need it to litigate a matter or to write a contract. A computer consulting firm may have an easier time, if it has longer-term contracts, but it is still hard to know when new business will come along. How do you plan for this type of business?

Marketing and sales planning begins with a thorough analysis of every current client. During the last quarter of the year or in January, it is very important to set some time aside for planning. In many service businesses, this should be easy because the pace of business seems to slow down dramatically.

Starting with the existing business, dig in and find out what was done and whether similar work will be needed during the next year. Planning next year's work on a general basis is a good way to cement relationships with your clients. During the holiday slow-down, every lawyer and accountant should make a point of visiting any client who provided 10 percent or more of his or her billings this past year. Your clients may not believe that you want to spend an hour or so, with the meter off, but once you have gotten together the effort will pay off.

After you have a fix on current clients, move on to areas of opportunity. Who are the prospects that you have been cultivating during the year? What can you do to turn a prospect into a client?

If you do have a holiday slow period, can you turn down-time into productive up-time? You might do a project or some initial work for a client for a lower fee. Some additional billing during the slow period is better than none. You have to avoid agreeing to lower fees for all work, but like an empty airline seat after the flight has left, uncharged hours can never be billed again.

Marketing for many service providers is very dependent on networking. But for many lawyers, accountants and consultants, however, networking is a soft concept - sort of like trying to nail pudding to a tree.

Over the years I've discovered that effective networking is a fine art that requires practice and discipline. Effective networking begins with the allocation of time to network. The time is structured to achieve one specific goal - get in front of real, qualified, prospective clients as often as possible.

What if your client base has eroded during the past year? Many professionals are seeing changes due to acquisitions, company relocation and business changes of all sorts including failures. When you see erosion, there is all the more reason for getting your power networking program into high gear early in the year and sustaining it all year.

Your Rolodex is a great starting point. Sort through your list and select five people that you feel can influence others to select your firm.

How can you work with each of these people to build your business next year? Can you ask each of these influencers what ideas he or she has for you in terms of building your business?

Remember, influencing is a two-way street. What can you do for your influencers to help them?

The end of the year is a good time to renew marketing and sales strategies because most budgets are annual. When each individual has assessed prospects and built plans, it may be clear that tools or programs are needed to add to the marketing and sales effort of the firm. You may decide to create a new brochure, do a mailing or hold a seminar. The strengths and weaknesses of the firm's marketing and sales are the accumulation of the individuals strengths and weaknesses. Improvement requires both a firm-wide and individual effort.

RELATED ARTICLE: Action Items

1. Review all client activity from the past year. Assess how business revenues came about.

2. Meet with every client that provided 10 percent or more of your billings. Work together to examine the client's needs for next year.

3. Find and develop influencers.

Haskell is a sales and marketing consultant based in West Los Angeles.

Dan Rabinovitch, coordinator for the Small Business column, welcomes reader feedback and topic suggestions. He can be reached by e-mail at [e-mail] or by telephone at [phone], ext. 8081022.