some of them, and re-invest your time and money into the most promising ones). Focus also means have the courage to say“ no” and reject low-margin, undesirable business.
Invest You have to invest to grow. That means:
Invest in your best relationships. Be willing to go the extra mile. Bring these clients unsolicited ideas and suggestions for improving their business. Don’ t tenaciously haggle over every last penny of fees or every small scope change.
Invest in your own skills and capabilities. Read, go to workshops, take online courses, get a mentor or coach.
Invest in new solutions and offerings for your clients. While the foundational idea of my own business has not changed very much- helping companies and individuals build their clients for life- I have developed many new services and applications over the years. A few were not hugely successful- but others been widely used by my clients and, as a collateral benefit, turned into major revenue streams for my firm. A couple of them have been huge homeruns, and more than made up for my less-successful ideas.
Build Flagship Clients
Focus( no. 2) and Invest( no. 3) are the secrets to the“ Flagship” client strategy that my client used to build a $ 100m relationship. The ballast and steady revenues that a flagship client provides can be critical to some firms. A lioness can’ t live on a diet of mice alone- she can’ t catch enough of them to feed herself and her pride. If you are a small firm or solo practitioner, and offer a very narrow product or service, this may not be the right strategy for you- you may have to instead build a group of eight or 10 clients for whom you are the go-to, trusted expert in your area of specialty. Some may not buy your services in a given year, but as a group they will provide steady revenues for you.
Move up, move down, and move laterally in your clients’ organization
Always look for opportunities to build more senior executive relationships( up). Never underestimate the challenge of implementation for your clients, and how you might help them downstream( down). And always, if the client organization is large enough, build relationships horizontally into other functions and business units( move laterally), so that you will have the chance to understand those executives’ issues and potentially offer them a valuable solution.
Treat prospects like clients( and they’ ll probably become one)
Don’ t approach prospective clients with mistrust and a negative attitude that“ they are just going to steal our ideas if we share too much.” If you think a prospect meets many of your acceptance criteria for new clients, then act like their trusted advisor from the get-go. Clients will want a second meeting when you’ ve already been helpful and added value in the first meeting. If by some chance it eventually turns out you’ re wasting your time, you’ ll know it and then you’ ll move on to greener pastures. That’ s part of doing business.
Stay in front of your network
The well-known decision bias, called the“ Recency Effect,” can be your friend- or enemy- when it comes to growing your business. The Recency Effect means that our thoughts are heavily influenced by what we have recently seen, experienced, or read( e. g., you read an article about the horror of Lyme disease, and begin worrying about ticks in your backyard). If you are getting your name and your thought leadership / ideas out in front of your network on a regular basis, you will be top of mind when people have a need in your area of expertise. Conversely, if your past clients haven’ t heard much from you lately, when they do face a challenge they may very well turn to that( mediocre) competitor of yours who they heard on a webcast last week.
Differentiate yourself
The more clients perceive a group of potential providers to be more or less equal / the same, the more they will put downward pressure on their fees. If you want to get lots of inbound leads and charge premium fees, you have to be perceived as different. This is a complex and challenging topic, but let me share a few suggestions on how you can do this:
Have a deep expertise that you can validate to clients. In a recent newsletter I talked about the“ bankable advisor.” You need to project very clearly that you have solved the problem at hand many, many times over, and that you have the latest and best methodologies for doing so. Remember, however: Your core expertise is your“ tip of the spear” to build your brand around and gain renown. But it’ s not ALL that you do- you probably will have other skills and other solutions that you can offer clients. But the deep expertise wins you recognition in the marketplace.
Build deeper, more trusted relationships than your competitors. Yes, you can differentiate yourself by the quality and depth of your client relationships. The real differentiation here is not that you drink a lot of beer together, although likability is actually very important- it’ s that through the close relationship you know the client as a person and his or her business better than ANY of your competitors. And that’ s worth a lot to some people. It means your advice will be more targeted and more properly contextualized. It means the client doesn’ t have to explain things to you from scratch. It means you can work rapidly and seamlessly together.
Demonstrate association with admired names and brands. Who is perceived as more differentiated( and worthy of high fees): A professor at a local business school the client has never heard of, or a professor at Oxford or Harvard? A banker who worked on Facebook’ s IPO or one who took a relatively unknown tech company public? You get the idea. How can you raise your brand and profile through affiliation with other renowned people and organisations?
Where do you start? Begin right where you are today. Take an inventory of your current clients and prospects – make lists. Review your marketing and client outreach activities. Pick a couple of these strategies that you think will especially work for you, and start implementing them.
Dr. Clifford J. Ferguson is the Managing Partner of Rainmakers, and Board Member of Glad’ s House Kenya. You can commune with him on this or related matters via email at: Drcliffordjferguson @ me. com.