When starting a new business, making a profit may be the first thing on your agenda, but should you say yes to all potential new clients who come your way?
The answer is, in a word, No.
While it can be extremely tempting to take on as many clients as you possibly can when you’re initiating your business, there are actually several reasons why you should be very selective – even if it means forgoing some income. One of the biggest reasons for this is because you could end up spending an inordinate amount of time providing some clients with your product or service, only to find out that they will take up much more of your time than necessary and / or they will end up returning the product they bought because it was not a good fit for their needs.
Just as in other areas of life, the 80 / 20 rule applies when searching for clients to work with in a new business. This means that the bulk of your income will oftentimes come from 20% of your clients, and the other 80% of your customers could very well end up costing you precious time.
So, what should you look for in a good, solid client for your new business? First and foremost, it is important that your product or service will be a good fit for their needs. As an example, if you offer something that they truly need, they are much less likely to return the product, or to complain about the service not leading them to the solution they are looking for.
Another key trait is to look for clients that have a realistic budget. For instance, in this case, even if your product or service fits their needs to a tee, some potential customers will still haggle over the price you are charging. In this case, you must be extremely careful, because if you move forward, it may mean that you are actually losing money on the deal or working for very little income.
Where can you find good advice on finding profitable clients for your new business endeavor? One way is to associate with other business owners who are in the same boat. This can easily be accomplished by <joining the Startup Forums>. Here you will discover that there are many others who are also in the process of building up their businesses, and who can provide you with advice on what has – and has not – worked for them.
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