If you think the customer isn't important, try living without them for 90 days!

Create charts and accompanying text for a business presentation

The proverb in the title is not just a witty expression. It can also be found to have a deep meaning.

Indeed, among individual entrepreneurs, especially novice businessmen in the post-Soviet space, there is a prevailing opinion that the client is not the most important thing; they say, one can «make» a lot of money that way without bothering to search for and attract clients, without spending on advertising, marketing, etc. So, is it really possible to get by without new clients? Can such a business be successful? Let's try to figure it out.

In any business, there are only three legal ways to make money:

payments from customers purchasing products or services;
Investor contributions (founders);
loans.

However, if you receive investments or loans, you will still have to pay back more money than you received, considering dividend payments to investors and interest on loans. And you cannot do without additional funds obtained from selling goods and services to customers. Otherwise, you will face either bankruptcy or a loss of business reputation (which also threatens bankruptcy).

Another way to make money is to simply sell your business, but if this is the solution you're interested in, we can help you with that too. However, the question is, is it worth making a hasty decision? Perhaps it's worth working on the business a bit and bringing it to the desired profit levels and enjoyment of the business management process, rather than stress and constant problems. This is what we do in consulting.. Our website primarily covers topics of personal leadership effectiveness and team development, business growth, customer acquisition, sales growth, and profit generation. Therefore, you'll find many useful tools and actionable recommendations here!

Output: Revenue from your clients is the only reliable source of your income (as well as funds for dividends and loan repayments).

Everything earned money comes from those people who have bought something from you at least once. All other people are potential customers—a potential source of your income.

How do you handle the only source of your income?

Do you keep track of every client? Do you maintain contact with them? Do you encourage their loyalty? Do you attract new clients, thereby creating conditions for preserving and increasing your revenue?

Each of these questions is so important that it could be the subject of a separate article. We have already covered some of them (for example, an article is dedicated to the issue of increasing customer flow «Sales funnel and increasing inbound traffic».

Mastering the art of customer acquisition is no longer just a useful skill; it's a vital necessity for all businesspeople.

It doesn't matter what kind of business you're in – IT, accounting, construction, retail, or hairdressing. Just being a professional in your field is no longer enough. To succeed in business, you need to be able to promote your products and services, and dedicate a lot of attention and time to customer service. Modern, customer-oriented technologies are widely used in business and have fully proven their worth.

One of the key questions you need to clearly answer is: Who are your main customers? The ones who account for the lion's share of your revenue. It is well known that 80% of a company's revenue comes from 20% of its customers (Pareto principle). So figure out for yourself what kind of customers make up these 20%! Identify them and create a database of loyal and reliable customers—that’s where your real money comes from. Focus on working specifically with them—your «golden pool» of customers! This will significantly boost the effectiveness of your business.

By eliminating 80% in costs associated with low-potential customers—who generate only 20% in profit—you can increase the profitability of your business. And use the money you save to find and attract new, promising customers who, by all indications, can become part of your «golden pool.» Think of this as an investment in the growth of your business.

Customer acquisition is not a one-time event; it's an ongoing process that requires constant effort, developing your network of contacts, and promoting your goods and services on social media and other platforms.

What will happen if you don't have new clients?

YOUR BUSINESS WILL DIE!

You'll last a little longer thanks to your old clients, but that will only prolong the agony, not prevent the inevitable death. Someone might open a new business if they have the funds and strength. However, if they run the new business the same way and make the same mistakes, without caring about attracting new clients, they'll likely run out of money again and go bankrupt again.

We wouldn't want to end the article on such a somber note. We are confident that this material and common sense will prevent you from making the indicated mistakes, but, on the contrary, will help you draw appropriate conclusions and achieve success in the prosperity of your business.

WE SINCERELY WISH YOU THAT!

Go back