Catching the Big Fish

The ones to throw back

Business owners too often hold on to the clients that they feel secure in servicing, rather than making the tough decision of letting those clients go, so that they can concentrate on their true, ideal clients. But, as mature business owners, there is one fact we all must face; the sourcing and servicing of a small customer, probably takes just as much time and cost as a large customer – but with far less return on investment.

They say everything is a choice; therefore you must choose what and who you’ll focus the bulk of your energy on.

Where do I begin?

There are 4 key questions you should ask yourself, to prepare for attracting those medium and large size business customers:

1. Do I understand the value of the clients I have now, and the value of those I want to do business with?
2. Have I taken the time to define what my ideal customer looks like and why they are my ideal?
3. Do I know what my ideal customers need/want, and can I give it to them? Or will I need to automate or grow my resources?
4. If I had 10 big clients would I still want to do the small client work?

Each client type has an average value, but how do you work that out?

To keep it straightforward you can use the following formula:

The average Number of Hours/week (or Month) X The hourly rate (or fees charged for that work) – less the cost of sale/servicing them.

Don’t forget to include travel time in your estimates (billable/unbillable).

This should give you some basic ballpark estimates to help think through the value and potential value of your clients.

Sometimes you need help to work through these questions and drill down into the details. Use your peers and mentors, or a business consultant to help you to answer them and make some tough choices.

But like fishing, the bait and equipment you use is entirely dependent on the fish you’re trying to catch.

You can’t use a hand reel off a pier, to catch a Marlin.