Marketing

With all the marketing focus on getting clients, let us not ignore the clients you should get rid of.

“You’re crazy!” you say, “Why would I want to fire a customer?”

Here’s why:

The client is unprofitable or distracting to the rest of your business. They may have been good in the past, or perhaps you should never have taken them on.

Here’s the thing – it’s possible you’re putting way too much attention and effort into a small a number of customers that are never satisfied. This is at the expense of other customers who are happy and complementary of your work.

When your company is small, you take in any business to build it up. When times are good, perhaps you take on any customer. But as you grow, it’s prudent and profitable to become more selective. And as business slows, you should be less tolerant of marginal or unprofitable customers. They can actually threaten your business.

When to fire a customer:

  • The job is too small, and the cost of serving them takes most of the potential profit.
  • They are too large, and keep insisting that you lower your price — until the work is unprofitable.
  • They are too different. They buy something that you have been selling but you no longer want to sell. For example, a print shop wants to close its graphics department, or a landscape contractor wants to close its maintenance section.
  • The job is too distant. When you had a lot of customers in their area, it was worth serving them; but now that you only have a couple, you actually lose money on them.
  • They are more trouble than they are worth. These customers argue with you, are never satisfied, are slow to pay, or all the above.

Now, obviously it’s not easy to fire a customer. Here are some suggestions to soften the blow:

  • Refer them to someone else that you know would be more appropriate for them. Sending business to someone else may entice that person to send a good referral back to you. However, don’t send problem customers to your good referral sources!
  • Give them some warning. “After this next project, we won’t be able to work with you any more.” Tell them why.
  • Instead of getting rid of a customer, ask yourself how you can turn an undesirable one into a good one?
  • Then when you tell them why you can no longer work with them, they may be able to change something that will make them a good customer.
  • Raise your price. They will either leave, or it becomes profitable and more enjoyable.
  • Change the way you work with them. Instead of 1 on 1, get them into group workshops, or steer them to online programs.
  • Change the terms of your work. Instead of fixed price, charge for your time and materials. Make sure you get change orders for extra work they request. Overcome your timidity and be polite but firm: “Yes! We’d be delighted to do that for you, and it will only cost you an additional…$$.”
  • Require pre-pay or payment by credit card, to cure slow payers.
  • Be the squeaky wheel. Stay on them. Oftentimes we don’t hold clients to the agreements they make with us. We let them slide and then we moan about it. Remind them what the agreement is, and request firmly that they abide by it.

You have nothing to lose by doing any of these things. Bad clients lower profits and distract your business. Since you were going to fire them anyway, they just might work.

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You’re a busy business owner, you’re up to your ears in scheduling, bookkeeping, and managing people. Do you really have to handle every aspect of marketing, too? Here’s the blunt truth: No one you hire will ever care as much about your business as you do. Period. You can’t clone yourself, but you can put your time and energy where it counts. Here’s why, and how, to delegate your marketing:

Yes, You Do Have to Take the Lead in Marketing

  • It’s your company. You care the most about it.
  • You know it best.
  • You are the most motivated to sell.
  • You got into your business because you are good at marketing and selling your offering.
  • Customers want to connect with you, the owner.

No, You Don’t Have to Be a Marketing Martyr

  • It gets to the point where it’s too much for you to handle—plus do customer work.
  • Doing all the marketing tasks is not the best use of your time.
  • You may not be the best sales person in your company.
  • Parts of the marketing are easy to hand off to others.
  • You don’t have the expertise to handle all the parts.

There Are Some Things Only You Can Do:

  • Set the mission, vision, strategies, goals
  • Build strategic relationships.
  • Choose good people to help you market and sell.
  • Make sure they do what you want.
  • Approve your marketing and promotions.
  • Insist on results, not just effort.
  • Tweak your direction and offering; develop new things.

You Should Never Do Things That . . .

  • You are not good at. You can find better people to do them
  • You can easily hire and delegate to other people.
  • Get in the way of you doing what brings the greatest value to your company

Do this . . .

  1. Make a list of the Marketing tasks you’re good at, and that bring the most value.
  2. Then make a list of the tasks you’re eager to get off your plate.
  3. As you hire people – contractors and in-house, be clear about the tasks you want them to take over, and what you will continue to do.

Your Marketing Job

  • Define your pathway—your overall strategy to reach your vision.
  • Build your marketing team of skilled people who can help you execute your strategy.
  • Orchestrate your team; oversee team performance.
  • Review results, tweak, refine, and change direction when needed.

As the owner, it’s up to you to set the overall vision and define what success looks like. From there on, empower people to make it happen.

Does All This Pertain to a One-Person Business?

As a solopreneur, unless work just falls into your lap, you have to spend a good portion of your time drumming up new business. Plus doing the work. Plus all the admin stuff. How many hours a day do you want to work? (Clue: the max is 24!)

If you have a viable business, you soon discover that it’s worthwhile to hand off pieces to others: website design and maintenance, social media, copywriting, maintaining your marketing database. You notice that you depend on all these others, even though they aren’t your employees. You’re no longer a one-person business.

The option is to stay tiny and run yourself ragged.

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