By Don Williams
There is always a point in one’s life where they proclaim, “I wish I were big!” Tom Hanks’ character said that very sentence in the 1988 cult movie classic, “Big”. It’s normal. In fact, businesses say this too. There’s an old adage that says, “if you aren’t growing, you’re dying!” While this might be a bit drastic, there is a lot of truth to it as well.
At this point in the blog it’s important to note, smart businesses do not chase new business at the expense of their current client portfolio. Businesses do not want to sacrifice an existing client for the “what if” of a new shiny client. Wanting to grow your business must be balanced with your existing work load.
What is the magic formula between new business and your current client’s expected deliverables? There isn’t a magic ratio – I have seen some stories stating an 80-20% rule. Obviously, the 80% reflects the clients you are actively working with. Each business must determine their own ratio based on what the team can effectively handle. It’s true the majority of your time should be spent on your existing accounts – keeping those relationships in good standing. But, I would always recommend that your business keeps hunting for your next great client that fits with your agency’s strengths.
Another consideration – do you have the staff to take on new clients and projects? Will you need to ramp up staff to support the additional workload? This must be considered or work will suffer.
Another benefit to having healthy great relationships with your current client lineup is when they are happy they’re more likely to refer your company to others. Word-of-mouth advertising is the best type of advertisement.
This is a topic that all existing businesses must weigh for themselves. To make sure you maintain the proper balance between new business acquisition and client retention a minimum of 5-10 hours a week should be focused on prospecting new clients. The rest of the week can be dedicated on making sure your clients are satisfied with the services and results your providing them.
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