Grow Your Business Through Events

How I…Grew by Ditching My Only Client, JANUARY 28, 2010

[Summary] To say it was a rough time to start up a tech company after the dot-com bubble of the late ’90s burst would be an understatement. For digital agency Rokkan, which was started in 2000 by two twenty-somethings out of a Jersey City, N.J., living room with limited resources, it was sink or swim. Things looked promising when Rokkan landed their first and only client, a major rock musician who was launching a new clothing line, but it wasn’t long before the project hit a wall. After ditching his only client, Mr. Noe knew he had an uphill battle ahead of him. He sat down with his two partners and they had a long discussion about what to do next. Read the Full Article

The article talks about finding success after ditching a bad client and the struggle the company went through in deciding to sever ties with a longstanding client. Choosing to end a bad business relationship is difficult for any business to do. What many small business owners fail to acknowledge is that as the owner you have the right to choose whom you work with. Whether this means ending a bad business-client relationship or choosing not to enter into one in the first place.

This principle applies primarily to businesses selling a service but in some cases can apply to products as well. Far too often small business owners, especially those just starting out, feel compelled to say “yes” to every deal that lay before them. They believe that declining a potential client is a recipe for failure when in fact the opposite can be true. Ask yourself these 3 questions before accepting a new client:

1. Is it a good fit for your target market? A business should not feel confined or restricted by their defined target market. However, if a client’s needs lie outside of the target market it is important to evaluate whether or not you want to take on this client and the impact that doing so can have on your business. For example, as an event planner I do not plan children’s events. Just a few months after launching Starr Studded, I was contacted by a prospect that needed a planner to plan his son’s 5th birthday party; he had dropped the ball and the party was only a few weeks away so he was ready to sign on the dotted line. Although I already had a couple of contracts this event would have been the first to take place. As I evaluated the opportunity, I realized this could take my new business down a path I didn’t want to go. Once I planned that event and the client was pleased, he would likely refer me to others and I would have photos posted from the event. The next time a prospect calls requesting a children’s party it would be difficult to say “I’m sorry I don’t handle children’s parties”; one referral leads to another and I have a blackberry full of clowns, face painters, and petting zoo’s.
2. Are your personalities a good fit? The type of service you provide dictates the length of a client relationship and how much time you will have to spend with them. Taking into account personalities and work habits are important. As an event planner I spend anywhere from 3 to 12 months with a client; if our personalities don’t mesh that could be detrimental for my company. When I meet with a prospect I am not only trying to sell myself and my business but I am evaluating the client to determine if we are a good fit.
3. Is the potential revenue worth the investment in times and resources? Service oriented businesses have the most flexibility in price. It is therefore easy to adjust pricing in order to land a client. However, in determining if a client is right for you consider the potential revenue compared to the investment you have to make to uphold your end of the relationship. For example, if I have to clients who are requesting services for the exact same events except one lives within 5 miles of my home and the other lives 45 miles from my home. The client that lives further away requires a greater time investment because I have to travel further for site visits, client appointments, etc. If I’m not able to increase my price to cover this investment it is (likely) in my best interest to refer them to someone who lives closer.

If you determine that a client isn’t right for you, don’t hesitate to refer them to someone else. It shows you are connected in your industry and have their best interest in mind. They will thank you for it and likely will still refer business to you.

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What is Wall Street Wednesday? The Wall Street Journal Digital Network has a section specifically for small businesses. They address business related topics such as Financing & Investing, Building your Business, Technology, Franchising and more. Every Wednesday we will share a relevant small business article from the Wall Street Journal and provide our take on what WSJ has to say.

When Business Owners Are Control Freaks – January 24, 2010

In the start-up years, the necessity of dictating how everything around you is done can serve you well. Hyperattention to detail, intimate knowledge of your company’s operations and the lessons you learn by doing it all yourself are invaluable.

Unfortunately, many business owners become control freaks. When the business finally grows enough to hire staff, these control-freak business owners aren’t willing to let workers do their jobs. Instead, they watch over employees’ shoulders, trying to make sure everything is done exactly the way they would do it themselves. They become maddening, arrogant and overbearing, and they pretty much refuse to leave the building. And they’re generally miserable.

What’s important to remember is that while you must be hands-on in the early days of running a company, you also must step back to allow it to grow.

Click here to read the full article.

As a small business owner, even the most uncontrolling person can become a control freak when it comes to their business. We all want our business to be successful and often have the mentality “no one can do things like we do”. However, there are several reasons why it is important for small business owners to try not to do it all. Here are three key reasons not to become a control freak in your business:

1. There are only so many hours in the day, time is one of our most precious resources and we all have the same 24-hours in each day. In order to grow your business your time should be spent on revenue generating tasks such as sales and marketing, product development, networking and relationship building to name a few. Tasks that are essential but not revenue generating need to be delegated to an employee or outsourced to a virtual assistant or other entity. Read the rest of this entry »

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What is Wall Street Wednesday? The Wall Street Journal Digital Network has a section specifically for small businesses. They address business related topics such as Financing & Investing, Building your Business, Technology, Franchising and more. Every Wednesday we will share a relevant small business article from the Wall Street Journal and provide our take on what WSJ has to say.

Three Best Ways to Win a New Client, January 14, 2010

Many small businesses ring in the new year by taking a fresh approach to winning new clients. Whether you plan to reinvent your company or just attract an untapped demographic, there are a few ways to achieve your goals. After pinpointing your audience, reposition your message to gain those customers. Work your connections, but keep in mind, it’s tougher than ever to land deals. These days, your potential clients might be hurting or short of funding, says Mike Silverman, managing partner of engineering-services firm Ops A La Carte LLC in Santa Clara, Calif. “If you’re fairly new at this, you really have to not be afraid of rejection,” Mr. Silverman says. “You can’t give up. There is light at the end of the tunnel.” Here are three best ways to win new clients:

1. Go where the growth is.
2. Ally with other businesses.
3. Use online tools.

Click here to read the full article

Go Where The Growth Is: What Are Your Key Opportunities?

Every year (or quarter depending on the length of your sales cycle) you should be evaluating the viability of your primary target market. Outside factors influence every type of business and the target market that was once a gold mine may now be a dessert. Think about products and services that have been phased out based on external factors. For example, as technology developed some providers of dial-up internet services shifted their focus to cable and DSL services. More recent, as business travel has declined due to the economic downturn many airlines shifted their focus to selling upgrade services to individuals and families. In order to win more clients to need to target a viable market.

Event Planning Tip: If you are shifting towards a new target market, now is the time to plan a growth event. This is a great way to gain exposure to a large number of potential clients in your new target.

Ally With Other Businesses: There is Strength in Numbers

Far too often small business owners try to do it all themselves. Being a successful soloprenuer or small business owner is all about leverage. You must leverage your money, time, talents, and other resources. Think about other business types that offer complimentary services, how could you collaborate with them to leverage their client lists or to co-market in order to reduce marketing expenses? These businesses also become key sources for referals making it easier to close new clients.

Event Planning Tip: If you aren’t already well connected in your industry try hosting a networking event and invite related businesses. By hosting the event yourself, you place your business at the center of the event and it can help to establish your business as an influential business in your industry.

Use Online Tools: Inexpensive Marketing That You Can’t Live Without

It is 2010 and we are in the heart of the information age, online marketing is a MANDATORY component to your marketing plan. No matter what product or service you are selling, you are hindering the growth of your small business if you do not have a solid online presence. At MINIMUM, you should have a website that provides the basic information about your business and its products or services. In addition, there are an abundance of other networking and social media tools at your disposal that will allow people to connect with your business. Facebook, Twitter, Ning, Squidoo, and YouTube are among my favorite online marketing tools. Using these tools individuals are able to find and learn about your business and through social media they are able to connect to your brand. When that connection exists sales will follow.

Event Planning Tip: Using online tools is an ongoing effort building a solid following will help when you get ready to market your small business event. The people you interact with online already have a connection to your business, even if they aren’t in your target market they are far more likely to recommend your event to a friend.

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