Here’s a unique recommendation that might initially challenge your thinking: REPLACE once client each year. Most of us think only about adding clients, not replacing them. The more I thought about this concept, however, the more potential benefit I saw.
Now, the goal is to replace one client each year with a client who is a better fit for your current business objectives and goals. Your criteria for what constitutes a good fit may be unique to your business.
Do you have a client who:
- does not utilize your core services?
- is a real “time hog?”
- utilizes only one small aspect of your total services?
- is not profitable?
If you cannot convert this client to a more full-service, profitable customer, perhaps it’s time to REPLACE them. Consider working with the existing client to match them with a service provider who specializes in their area of need, and then focus on replacing that client with one who matches your business objectives. Not only will you see an immediate increase in profit, but it is possible that you will have access to a fresh network of business contacts associated with the new client. It is likely that this new network will also be a better match for your company.
It can initially feel uncomfortable to 'let a client go.' Chances are, however, that if it was not a great business fit for you, the client might also benefit from working with a new provider.
Make it a point each year to reevaluate your clients in terms of your long-term goals and overall profitability.