Tradesmen, Fire Your Customers.
What ? Yep I said fire your customers. But before you start letting loose on the phone there is a business strategy that needs to be applied to this.
There is a common sales theory that 80% of the money you bring in will be generated by 20% of your customers. Think about that, 80% of your customers are not creating enough value for you to have a profitable, sustainable business.
So how do we apply this to our trade ? If you’re starting out chances are you’re picking up a few bits here & there from old bosses, builders etc. But to sustain a business you really should be starting to plan how you get off the tools. If you’re early doors in your business career that might be looking to get off the tools 1 day a week to start with and looking to grow from there. Our industry is notorious for lads setting up to go out on their own but ending up back in employment with their tail between their legs.
If we’re serious about growing a business then we need more customers than our old mates of mates or the odd builder. We need to build various streams of customers & never rely on one or two contacts to keep us alive. Once we’ve decide who our customers are it’s a constant auditing process. For example if you decide that builders are best suited for what you do & you go and find 5 to work with through the year, a true audit of your time, energy & resources will point to one of them customers providing approximately 80% of the money you bring in. We call this finding our ideal customer or sweat spot customer.
Make sure to take the time to sit back & look at what you do as business. Get out of the mindset of “I’m just out working for myself” Even if it’s just you or just you & your mate get into the business mindset, look at where your money is coming from, what type of customers, find more of the ones that don’t absorb the majority of your time & energy & fire the ones that do. Once you know & understand the value you can offer your ideal customer go a find more of them, its guaranteed results.