Developing a successful business is similar to building a durable house. Just as every house is built with a strong foundation, walls and a roof, every business should have goals, a marketing plan and involvement within the industry. Start off the New Year by building a strong resolution to enhance your business structure. Increase your production in 2015 by considering the following tips.
The Foundation: Develop goals
To build a sturdy foundation you must identify the type of clients you want to work with and how many new clients you want to obtain. “As many as possible” should not be the definitive goal. When attempting to take on everything, it’s common to easily get distracted because you mentally cannot latch onto every task.
It also may be tempting to take on anyone as a client, but we need to remember to stay focused on building long-term relationships. We as business professionals of this industry tend to dismiss the importance of having a few dedicated clients over a mass number.
How do you develop goals? It’s best to focus on what you do best and the clients you enjoy working with most. If you are still trying to determine what that is, try answering the following questions:
- Can you elevate your prospecting to a different market?
- How do you upgrade to a different market?
- Do you have the internal technology and staff to accomplish your new business goals?
- Do you want to take on 25 percent more new business with your current staff?
Answering these questions becomes a important part of building your foundation and starting the New Year off on the right foot.
Building Walls: Determine a client segment
Once your foundation is set, the next step is to identify where your source of new clients will come from. This has been an integral role in helping me increase my productivity year after year. You can determine how much your current client or prospect relationship is worth by going through your client list and looking at the cost to service them, and the amount of resources you need to develop or maintain that relationship.
For example, I thought a certain segment of my clientele was generating most of my revenue and should remain the primary focus of my prospecting. However, when I reviewed my book of business and analyzed where my net revenue (after servicing costs) was coming from, I found the segment I thought was giving me financial gain was actually the least profitable.
Click here to view an infographic of the structure for a successful business.
The revenue and marketing cost to maintain that segment were not on point. If I wanted to increase my production with that type of client segment, I would have had to increase my hiring efforts and staffing to net the same revenue.
The first step you need to do after you review client segmentation is to ascertain how much it will take to staff and service those clients once you attain them. Only at this point will you be able to determine your class of clientele.