I've been in business more than 20 years and each year I have striven for growth. During the fourth quarter of every year I take a serious look at my business. What worked, what didn't work? Where did my resources get spent most effectively in building my business? And I put a plan together for the next year.
I was amazed a while back when I told someone that I was proud I was making my "numbers" each month. They worked for a company and couldn't believe that I had individual sales goals for everyone in my business, including myself. They assumed I just did what I could each month because I didn’t “report” to anyone. I guess because I came from "corporate" I structured myself accordingly. I put my budget together every year for my sales and my expenses. I look at them every month to see where we are and where I need to improve.
Monthly Goals Help Achieve Overall Growth
I have to admit, I've always been a goal oriented person. It helps me focus my efforts and make the best use of my time.
Each year I look at who my best customers have been and who my worst have been. I have to admit, some of my worst customers in the past I have actually had to "divorce." I had a very large national fast food company as a client for more than 10 years. Truly loved working with them. Unfortunately they were bought out. The new owners of the company decided that vendors would be put on 90+ day terms for payments. My clients there begged me to continue to work them. And I admit, giving them up was hard. I gave them a chance on a small project since they said they would ensure I still got paid in 30 days. Well, it took 105 days to get paid. In that instance, it wasn't about the money (it was a small project) but it showed me their new process. I put them on cash due with order. Obviously we never got another project. Initially the hit hurt, but in the long run it was the right business decision. I am not their bank and will not finance their orders for free.
Sometimes Firing a Client is Best for Business
This is not the first instance where I have had to fire clients. Those clients that waste my resources for little profit are just not worth the effort and actually takes us away from our growth goals (spending time that could be used more effectively to bring in better clients!).
I did a study a few years ago to see how much internal time was spent on each order – from the initial contact to receiving the order, processing the order, billing and getting paid. It was an eye opening experience! It's not hard to realize that making $8 profit on an order (when you take into consideration the employee time) is not worth it. So I fired a group of clients and got a better hold on the type of businesses and budgets we need to work with. Yes, our revenues were down for a short while, but in the long run my profits increased dramatically.
As I mentioned, each year I have goals to increase my business with existing customers and gain new customers. I am fortunate that most of my large clients have been with me for more than 10 years, but as I mentioned before, you can't count on changes not occurring. You have to be prepared.
I have a business development plan that is also always changing. Yes, I have my list of key prospects but as I meet new people at events my priority list is always being updated.
Promotional Products are Effective for Opening Doors
I have also developed some great leave behinds and direct mail packages for some of our key businesses that we want to increase or just get in the door. And they are working, we’re up again and have picked up a couple of key new clients. Of course, I use promotional products to showcase how effective they can be in increasing visibility and sales. We are in the business so we should know how to make them effective.
I admit, I go after some pretty large companies most of the time so my sales cycle can typically be 6-12 months. But for my business it’s what makes good business sense. It's what we all have to do to be successful.
Find the right mix and stick with it.
Danette Gossett is the founder of Gossett Marketing, co-founder of Promotions Rescource LLC and co-author of the best-selling book "Transform" with Brian Tracy. Danette utilizes her more than 30 years of advertising agency and corporate marketing experience to develop effective promotional campaigns and products for her clients. Visit GossettMktg.com or SalesPromo.org and follow us on twitter @MarketngTidbits.