Survive your first 5 years in business – part 2!

In the last article we talked about how setting up good financial systems is crucial to surviving your first 5 years in business. In this article we’re going to talk about the other most important thing. Your clients!

Its obvious. No clients = no sales. If your business is to survive, you need a steady stream of clients/customers who are buying your product/service. So the big question for all businesses of all sizes is:

‘How do I obtain and retain my clients’

Now, I’m no marketing expert. But I’ve run my own business for more than 5 years now, so here are some tips I’ve picked up along the way. Oh, and remember if you’re spending money on acquiring new clients (networking/advertising/wining & dining) – its ALL tax deductible. So make sure you’re keeping a record of what you’ve spent!

Obtaining clients

Attracting new clients is the trickiest thing to do for any new business. Here I’ll share some strategies that have worked for me in the past. Feel free to adopt some of these ideas and see if they will work for you.

Produce quality content

…Which is what I’m (trying?) to do right now! I started my accounting firm in the middle of the COVID-19 era. At that stage I wrote extensively on how NZ businesses can apply for the wage subsidy grant from the Government. Over a few months, my articles got shared and I managed to establish myself as a bit of an expert on the matter.

Good content creates good visibility. This visibility translated into many new business owners reaching out to me directly, asking me to become their accountant. In fact, I had no plans of setting up my own accounting firm until random strangers online asked me to be their accountant.

Always be networking!

If you can’t (or won’t) produce content, at the very least you should be out there, networking. Networking is the act of going out, talking to people and making connections. I highly recommend starting out by becoming a member of your local chamber of commerce. Find out what events they are organising and attend all those that are relevant to you.

Find out what networking groups are in your area. If you are a woman, or belong to a minority group, there usually are business networking groups for your particular ethnic/gender/sexual identity. The more you meet people, the more likely you are to run into individuals who require your service/product.

Clients create more clients

Look after your clients. Take good care of them. Deliver on your promises and then some. Do this and your clients will bring in more clients for you. This is especially true for service based businesses where trust is so, SO important. Individuals will trust the word of their friends more than the words in some random advertisement.

For retail style businesses – looking after clients is still important. The relationships that you build with your current clients will encourage them to bring more of their friends and acquaintances through their door. If their friends are looking for recommendations, a happy client is more likely to recommend you than an unhappy one.

Retaining your clients

Ideally your want your clients to keep coming back to you. You want them to keep buying your products or keep using your service. Obviously delivering quality products/services will keep most of your customers using you. However there are some extra things that you can do to make it more likely for them to stay.

Have you considered a newsletter?

As a business owner, I recommend setting up a Customer Relationship Manager (CRM) system. There are a lot of free solutions you can use to keep track of your customers’ contact details, location, industry etc. Or at the very least you should have a spreadsheet of your existing customer’s details.

With a customer database, you can start sending out regular newsletters to them. Depending on your business, your newsletter is your chance to:

1. Share useful content with them
2. Share hot deals and discounts
3. Let them know what’s happening in your business

Having monthly/weekly newsletter is a great way to keep your business in the forefront of your existing clients’ minds. If you are showing up in their inbox on a regular basis, they are less likely to forget about you. The more they think about you – the more likely they are to continue to buy from you!

Every client is important

It feels like this should be obvious. But I’ve seen many business owners treat their ‘difficult’ clients with disdain. I’ve personally walked into shops where I’ve been treated like my money is worthless. By the end of the day, genuine respect for each client is important. Even the ones you don’t like!

Believe me, it takes a Herculean amount of effort to be nice and polite to a client that keeps getting on your nerves. But, remember, unless that client is being inappropriate or is verbally insulting you, you need to stay patient and treat them with all the respect you’d give to your favorite client.

Remember that even if a client gets on your nerves, you must do your best to not get on THEIR nerves. Even the most difficult client has a trusted circle of friends whom they may end up recommending to you. DO NOT burn that bridge! Remember that clients create more clients! Even the difficult ones!

Be responsive

This is especially important for service based businesses. Most clients will expect a response within 24 hours. Some will tolerate 48 hours. But remember that the prompter your reply, the happier the clients will be.

For non-service businesses, a quick response is important too. A defective product may need replacing. Or maybe a client wishes to exchange their product for a different one. Regardless of what it is, a quick response will go a long way in retaining your client’s repeat business.

Your clients pay your bills

Always remember that!

Without clients your business does not exist. You will always need to be acquiring new clients and retaining the ones that you have. This is not an exhaustive list, there are so many other tips and tricks out there. But these are the ones that have worked the best for me.

As a business owner you will need to figure what works the best for your business. Every business is different, so start thinking about how you can attract and retain clients effectively.