Lifestyle businesses are most at risk.
Money for old rope
One of the easiest ways to grow is through repeat business.
Repeat marketing, relationship building and selling to an existing customer base is a hell of a lot easier than finding new business. Many small businesses seem to be quite content being floaty lifestyle businesses where risk is minimal, things are profitable and existing customers dont raise above the parapit. These customers will steadly pay monthly fees for services that for which the majority of work has already been completed, and the owner rubs their hands together. The creative industries are well known to fall into the lifestyle business niche.
Happy in the knowledge that salaries are being paid, customers appear happy, and they are financially comfortable themselves, its easy for business owners to become complacent and take the path of least resistance. However, failing to be more aggressive in fact puts the business at more risk – as a happy customer doesn’t necessarily mean a repeat customer.
Problems arise when an external factor, such as the global economy takes a dramatic shift like it currently has, and the proverbial hits the fan.
Obama hit the nail on the head with his speech – “Greatness is never a given. It must be earned,” he said. “Our journey has never been one of shortcuts or settling for less. It has not been the path for the faint-hearted — for those who prefer leisure over work, or seek only the pleasures of riches and fame.”
One of the best ways to protect yourself is to continue to listen to your existing customers, adapt, improve and resell. Grow new business slowly, and never sacrifice an existing customer base to bring on the new. Never take existing customers for granted – better to grow slowly reliably and maintain your reputation, than to try and grow at speed and sacrifice existing clients.
If you aren’t innovating, and telling (selling) to your existing customer base, it’s only a matter of time before someone comes along and rips the rug out from under your feet.
