When starting any business, the role of clients is paramount. That is probably the most obvious understatement I have ever written! But what many new business owners do not spend enough time on are guidelines for picking those clients. It is especially important for agencies, firms and individuals to establish early on the profile of the client they wish to engage with.
The Council of Public Relations Firms published a great piece hitting on this point called, How to Avoid Taking on New Business That is Bad for Business where industry leaders impart their secrets…
PR All agencies expend tremendous energy attracting and signing new clients. In their eagerness, they often bring on clients that don’t work out. The goal of any PR agency is to create a good fit between client and agency. This takes work. But how can you recognize a client that’s not a good fit with your firm before you sign a contract? Are there telltale signs you should be able to see in your first few meetings?…
On its website, the Council offers “Fit to Win”, an evaluation tool designed to help firms assess new business prospects. The page offers a self-test, which includes these questions:
- Is the business a good fit, strategically?
- Is the business a good fit, culturally?
- Is the business a good fit, financially?
- Is the business a good fit, operationally?
- How competitive are we?
- What are the expectations?
- Are there any hidden cards or jokers?
- What is really motivating us to pursue this account?
At the end of the day, it is really not about the client picking you, it is about you determining if the client is a good fit for your agency and if you can actually accomplish something for them. As Ford Harding notes, “if you tell someone you aren’t the right firm for them today, you will have extra credibility tomorrow.”
Sometimes, it can mean turning down a major account. But you will be better off in the end with the respect you will gain, and the headaches you will avoid.
-Jess
Can we move “are there any hidden cards or jokers?” a little higher up on the list? ; )
Comment by Chris Blanchard — June 18, 2008 @ 3:08 pm |
A major portion of solving this equation for us was introspection. We had to identify what we do well, what we wanted to be doing day-to-day, and for who we wanted to be doing it for.
Starting out, we had a broad spectrum of different client types – local retail shops, local service professionals, local non-profit organizations, regional software startups, etc. We did lots of design, and the projects had clear start and stop points. This felt unfulfilling. We were more interested in getting invested in their business and helping them day to day, month to month.
These days, we are actively targeting clients that have national (or global) potential, and we like to be continuously involved in all of their online activities. The reason for this is that we’ve found that we are well suited to plan, design, build and market products and services online for our clients on a regional to national scale.
Now, that doesn’t mean we don’t work with small businesses. We absolutely do, and we really enjoy helping local businesses sell to people beyond our geographical limitations. There are tons of great small businesses in the Treasure Valley that have products and services that can be sold to people all over the world.
By way of example, our target client focus simply means that if a plumber and a handheld widget maker walked through the door at the same time, all other things being equal, we would gravitate more to the offering of the handheld widget maker. They offer a product that can be effectively marketed and sold online to people all across the world. The plumber really can’t market and sell his services online beyond a certain geographical area, and his company’s bandwidth is much more limited because it is a service intensive business.
So, what we’ve learned in finding clients to work with is that you have to know who you are before you can identify them. It has helped us, and I hope it helps you!
Comment by J. Glerum — June 18, 2008 @ 5:06 pm |
Telling a client that you are not willing to take their business often increases their desire to work with you. The first time I turned away a big account I worried that I had lost them forever. Before I could finish my explanation of why I felt we weren’t right for them, they were trying to find other ways for us to work together.
While I don’t recommend false coyness, I do believe that if you have substantive reservations about taking on an account, you should state them clearly. At the same time make it clear that under the right circumstances you would very much like to work with them.
Ford Harding
Comment by Ford Harding — June 19, 2008 @ 11:31 am |