These days, everybody is talking about the importance of technology, of achievements or the competition, but the factor that makes companies rise or fall are clients.
The best coffee isn't the one with the green and white mermaid and the best hamburger isn't the one with the yellow M. They are the most popular products in their segment because of the number of clients purchasing them.
Without clients, it's impossible to move forward. For companies, They are the air that makes the bread rise everyday. The problem is payments. While there are many clients that make good on their payments, the payment period can be 30, 45, 60 or even more days, affecting cash flow. If you use things like invoice factoring or credit lines, in which your profit margin is affected, you can fall into an operational loss. In the service sector, this is difficult because the services must be provided immediately, meaning they must be paid for up-front.
Another challenge that many many small companies face is rapid growth, driven by the inertia of their large customers. However, if these big companies encounter problems or changes in their plans that no longer include the service or product that you provide, or if they get the “flu,” it is highly probable that your company could get “pneumonia.” That is why you need to have a sales strategy in which no single client accounts for more than 50% of your income. This can be difficult because it can fall outside your comfort zone; it is much easier to grow with the clients that you have than to go out and look for more.
It is essential to seek out new opportunities, and to understand what the new market trends are and who your competition is. Innovation and looking outside the box keeps a company fresh, allowing it to offer different products or services that are in high demand.
Many companies began by making one good product or providing a service. They then try to diversify their services or goods. The result is that they lose sight of their core business and risk neglecting their company’s essence. It is also important to understand your clients needs and to evolve with them and the market. .
A common misconception is that price is the most important factor for clients. In fact, the focus should be on service. If clients leave you because of poor service, it will be difficult to win them back but if they leave because of price, they may come back regardless of price if the competition’s service fails to live up to expectations. For me and for my company, the most important factor is to make sure our service distinguishes us from our competition. As such, the price is pushed to the background.
There can never be enough clients for your business. If you are over capacity, it’s time to invest in machinery and increase your staff numbers, while also considering your operating margin. It's important to remember that the number of clients in your portfolio can be vital for pricing in case of an acquisition.
Ultimately, the key to success is to attract as many clients as possible and to continue providing them with a quality service to ensure they stay with you for the long term.
Today in our company’s specific market, there are many competitors offering many services but our focus is on creating value in the service we provide, so our clients stay with us..
In conclusion, focus on your clients because having a high number of clients makes you more attractive in the market, and if one client encounters a problem, your own business likely will not be affected.