Smart Growth: Fewer Clients Can Lead to Profits

Have you ever fired a client? If you’re new to business you might think that this would be a crazy thing to do, but ask some more seasoned business owners and almost everyone has a story about how they had to cut a high-maintenance client loose.

The other day I was talking with some fellow business owners and one of the group shared that she had done exactly that. This woman had done some real soul-searching, which resulted in her restructuring her business and letting 30% of the clients go. At first those of us in the conversation were all kind of surprised by this woman’s audacity in firing all of those clients, but then she reminded us of the 80/20 rule. In her case, 80% of her profits were coming from 20% of her clients, so letting the less profitable ones go actually significantly increased her profitability – that all important bottom line.

And here is the part of the story that is really interesting. When this person fired all of those clients her business revenue – her top line numbers – took a nosedive. Some of the clients she was releasing were really very large accounts. But despite the temporary reduction in revenues what she found was that, at the end of the day, her profitability was up more than 50%!

“I think one of the hardest parts about this restructuring,” she shared, “had to do with my own ego. Everyone likes to say that they have a company of a certain size or X-million-dollars in revenue, but if you’re not all that profitable then it really doesn’t matter.”

Another friend of mine ended up letting her largest client – Walmart – go, after experiencing years of intense pricing pressure and many “logistical hoops” from the behemoth organization.

I know that making that decision wasn’t easy for this friend, but although her overall volume is down, she too has experienced increased profitability and – also importantly – she also seems a lot less stressed these days, too.

When considering the smartest way to grow your business, there really is a lot more to look at than just sales volume. It’s about not only knowing your numbers but also about knowing which of those numbers really matter the most to get you to the fastest -and smartest- growth.

Elin Barton is the President of White Knight Productions and the host of the podcast, Ready, Set, Grit.  Her first book, Ready, Set, Grit: A Three-Step Formula for Turning Your Daydream Into a Phenomenal Success, will be released early 2018. To find out more about how you can use video as a smart tool to grow your business visit our website.

Why Use Video Marketing for Your Small Business?

Welcome to our first guest blog, written by Nicole Standish of Charm Digital Media. Enjoy this article and let us know what you learned in the comments below!

Videos are some of the most effective marketing tools today. Customers find them attractive, relatable, and relevant. They are highly effective at capturing and retaining the client’s attention. Small Businesses especially can benefit from the value and engagement that video provides.

So, how can this form of marketing be useful to your small business?

Boosting Conversion Rates and Sales

Using a targeted video content strategy, you will not struggle to boost your conversion rates and sales. Therefore, be ready to make serious money and become wildly popular. A landing page that contains a video is capable of increasing conversions by as much as 80 percent.

Amazing ROIs

Videos offer amazing returns on investment (ROI). They guarantee the best results based on what you spend. They are a worthy investment when done correctly. All it takes is a bit of planning, a great video marketing team, and a smartphone to begin seeing your conversions soar.

Research shows that businesses publish on average 18 videos per month according to this HubSpot Infographic. That is close to 1 video per work day. Do not, however, place too much emphasis on producing perfect videos. Instead, focus on the content and solving problems for your target audience.

Building Trust with Clients

Videos are perfect for building trust with your customers. Most times, clients find it easier to relate with brands that produce videos. Trust is the foundation of any business relationship, especially if you are a small business that is just getting acquainted with your buyers. To do this,  Use video to highlight your team, show your community involvement, outline your mission and vision as a company, and show off your well-earned testimonials. 

Search Engines Love Videos

Google – and all the other major search engines – love videos. They reward marketers who use videos to pass messages across. Visitors on your site tend to spend more time browsing through your pages while engaged in one of your videos, improving your reach and validating your relevance to search engines. 

The likelihood of showing on the first results page increases 53 times when you feature videos.

Popular with Mobile Phone Users

Mobile users love videos. Today, there is a 233% increase in mobile video views. Businesses can take advantage of this trend and reach people on their mobile devices, while they are at work or at leisure. Video is the easiest content to consume on a smartphone or smaller device.

Tip: Include text in your video as many viewers watch with the sound off.

Videos are Ideal for Explanations

You have a higher and better chance of reaching out to your customers with a message they understand when using videos to explain your product, service or process.Explainer videos are popular with more than 98% of all video viewers, meaning they value the effort that you are taking to produce the videos and provide the answers they are looking for.

There are many ways to create an entertaining explainer video. If your subject is difficult to explain and low on the likeability scale, you can easily narrate or animate your videos to add more emotion or pizzaz. Use emotion, drama or humor to draw in your audience and keep them engaged.

Popular with Lazy Buyers

Today, your business will engage with many lazy buyers. Such buyers are a difficult lot to market to without videos. They are not interested in your long-form content, they want to know quickly and easily how your product or service can solve their problems. Video allows them to listen or watch while they are multi-tasking. Additionally, video gives them a deeper glimpse into your businesses without needing to visit your about us page, removing another click in their buyers’ journey.

Vidoe Marketing For Small Businesses = Conversions & ROI

If you have small businesses or any business for that matter, video can work for you. Using a mix of written and video content, you will surely attract more customers and do so in the way they feel the most comfortable engaging with your brand. There really isn’t a down-side to video marketing. Video marketing is affordable, easy to produce and has outstanding ROI. 

Nicole Standish is the President of Charm Digital Media.  As a digital media consultant, Nicole helps businesses attract and convert online business.  Nicole evaluates existing digital resources and strategies; develops campaigns to reach targeted audiences, and optimizes marketing channels to reach and exceed sales goals. Follow Charm Digital Media on Facebook at Charm Digital Media and Twitter at @CharmThem

Interested in learning more about video marketing? Comment on this post or subscribe to our digital marketing blog – The Content Catch Up! 

 

Up For the Challenge

How are you – as a business owner, entrepreneur, wife, husband, daughter, friend, employee – challenging yourself today? How are you getting smarter, more successful, and better than you were yesterday?

Are you getting by with the same old same old, or are you being very deliberate about your growth and development? The good news is, there’s no need to reinvent the wheel. Here is what has worked for tens of thousands of people who have gone before you:

  1. Find a mentor. Find someone you really admire who is better than you – smarter, richer and living a life that you admire. Find a person like that who is willing to teach and guide you, then take the time to truly appreciate them and listen to what they have to say. When you find such a person make sure you realize their worth and tell them frequently how much you appreciate their time and help. A good mentor can easily make the difference between you staying stuck and getting to where you really want to be.
  2. Get some good books. Embrace reading .- or audio books or podcasts – as an opportunity to get smarter and to get an edge over your competitors and others who are in the proverbial room. Reading and learning helps to keep your creative juices flowing too, so be sure to dedicate time every day to this practice.
  3. Examine your habits and figure out which ones are not serving you well. Which habits are bad for your health, are unproductive or even harmful? Which habits do you need to shed and which other ones should you be cultivating? If you can make good habits as much of a no-brainer as brushing your teeth you’re going to start seeing tangible results, pretty much guaranteed.
  4. Rub shoulders with the upper crust. If you aspire to be more successful, richer and more influential than you are now, it’s important to start associating with people of the caliber you wish to become. Please don’t take this as permission to be a fake friend or a “social climber” but do take note of who you’re spending time with. Create and cultivate real friendships with people you actually like, but also think about doing this somewhat strategically. If you want to be an artist you’re probably going to be more successful if you start hanging out with other artists and get into the circles of buyers and gallery owners. The same goes for almost every other industry I can think of.
  5. Think good thoughts. You have to teach yourself to focus on positive, not negative, thoughts. Learn to imagine life as you would like it to be, and not focus on the problems at hand. When you do this you’ll be much quicker to shift your energy into being productive, and you’ll also turn into a kind of magnet for others who will show up and want to do business with you, or help you out in some way. All of that positive energy will make you practically irresistible!

Stronger Together

Indisputable Truth: The solution to a problem is often right in front of you but cannot be teased out without some creativity and thought.

I recently participated in a workshop where we were presented with a problem involving rare pheasant eggs. This supplier has a certain price that he needs to get for his eggs, as there is a limited supply and his boss is pressuring him to come back with at least a certain dollar amount. Three buyers come forward with offers on the eggs but none are offering enough to satisfy the boss’ requirements.

One buyer wants only some of the eggs because a limited amount of the shells for a pharmaceutical product his company produces. Another buyer wants to sell the eggs in very high end restaurants where they are made into a special meringue-like delicacy and the other buyer wants to buy all the eggs for a nutritional supplement that his company makes, but he is not authorized to spend as much as the seller needs to receive.

Negotiations ensue but are guaranteed lukewarm success unless one thing happens. Have you guessed it yet? It’s a creative solution and requires a level of cooperation, but because all the buyers actually need a different part of the eggs, it is feasible that everyone could work together to get what they want and the seller can over-deliver to his boss on the money front, thereby guaranteeing himself a nice fat bonus.

Now, before some smarty pants comments on this blog about any technical reason that the above scenario couldn’t work, I ask you to please not bother. That really isn’t the point. I’m not an expert on eggs, nor do I wish to be, but what I do know about is strategic partnerships and cooperation. And after I started to change my business strategy to that of a lone wolf to an expert collaborator and partner, everything really start to shift for me in a very positive direction.

Any small to medium sized business person will tell you: life can be very lonely when you’re trying to run your business. You most likely have limited resources and are wearing a few too many hats. And trying to carve out your slice of the pie in a crowded marketplace can prove to be very challenging, to say the least.

This is where strategic partners can come in and become an important part of your high-level plan for sales and growth. If you can identify other businesses with complimentary products or services to your own, and come up with a plan that both sides benefit by, it becomes an attractive prospect to consider. Sure, it may take come creativity as in the egg example, and you may even find yourself working together with one-time rivals, but if you’re open to experiencing the magic of partnerships and collaboration you may quickly see how your influence can quickly extend to a whole new sphere of people that you may not have had access to before.

Now, of course I probably don’t need to explain to you what the word “strategic” means. Partnerships of any kind are never something that I would enter into lightly. There are a million reasons why they may not work, and whenever you do anything like this, I would strongly suggest a lawyer looks over any agreements that you decide to abide by.

But for all of the potential headache or risk, I would still contend that strategic partnerships are well worth exploring. If you can find other companies whose services dovetail or compliment your own, and either become an affiliate seller of those services, or if the two of you agree to team up and work together you will most likely find that your company is quickly getting in front of customers that you would not have been able to serve on your own. And in that exposure lies enormous potential and opportunity for growth – for both you and your partners. And that, my friends, is a beautiful thing.