Why More Isn’t Always Better For Small Businesses

When we first started our corporate events business, we jumped at every new lead that came in the door, hungry for revenue and resume building opportunities. This was great in the short term, because we didn’t have anything else competing for our time. But time is a precious resource, and one that is not renewable. As our company moved from start up mode into growth mode, our lead-chasing became a hard habit to break. After all, who wants to turn away business? And all of our clients loved us!

More is not always better.

More of the right kind of clients is a good thing. The kind of clients that drain your resources — especially your time — and don’t provide the relative amount of profitability are a hindrance on your growth. And when you are growing fast, your time and your human capital are at a premium. Continued growth will depend on how well you steward these resources of time and human capital.

1. Client knows what they’re looking for.

Clients who know what they need in a service provider will do research before sending a request for proposal (RFP), narrowing it down to two or three companies at most that are the best potential fits for them. When that list is longer than three, you know they have not done their due diligence and they may simply be looking to do just that in speaking with you. That’s not a good use of your time.

2. Client is open to hop on a phone call with us.

Every event is unique, and the better our business understands your goals and objectives, the better our proposal will be. If you can’t take thirty minutes to discuss it with us, you are likely just shopping price.

3. Client’s budget is realistic.

This speaks for itself. We are a high-level service provider, and we will never be the low-cost provider in any bid situation. We are wasting our time with any work spent in the low end of the pool.

4. Client’s deadline to create a proposal is realistic.

A quality proposal requires sufficient time for the provider. Clients who don’t understand the process or don’t respect our time may not be good partners in the short or long term.

Jeff is an entrepreneur and hospitality industry expert. He has founded 10 companies and is the author of “Have Fun, Fight Back and Keep the Party Going”.

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