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No Customers? No Business!

Posted On - 26/02/2016 08:47:03

Measuring Customers

So, "By the Book?" told you told you the text book way to run a business.

And while none of it's wrong even with the best will in the world doing it all's a tall order.

That's why we staged our Open Day session. To set out what you really must do to be a healthy business. Want a clue? It isn't a new miracle product or service…

Feet on the ground

We can talk about how not so many years ago when being ‘in' computers was good money. And we can mourn how it isn't like that anymore.

We can speculate, wish and even hope for some new product or service that'll sell-like-hot-cakes. Or we can look ourselves in the eye, fess up to that likely never happening, and get on with running our businesses better. That's what healthy businesses do. They don't pin their futures on hope, they run things right - today. That's what this blog is all about.

Means and ends

At the risk of repeating ourselves we're going to. Just in case you've dropped into "Better Business" now it's important you catch up on a really important point. And if you haven't, we're repeating ourselves because this is genuinely crucial for your success.

Peter Drucker, the renowned management thinker, has many great observations on business. "The purpose of business is to create and keep customers" is one.

Notice what he said: create and keep customers – no mention whatsoever of making money! It was all about customers. Why? Because he understands the real issue. It's about cause and effect. Customers and money – you get it?

Marginal gains

When we talk to people about attracting new business the word ‘new' seems to disappear. We've asked rooms full of people how they attract new business and the answers always tend to be things like up-sell or cross-sell.

Now, both these are great ways to add to your sales. But just as they are good, they completely miss the point. New business isn't additional business, it's new. It's business from customers who have never used you before.

Genuinely new business is so important because it's worth so much more than just the sale that made them a customer. It's worth that and the stream of sales that'll come from now on. Completely new income you've never had before.

So the value of new business isn't incremental, it's exponential. And a healthy business keeps a count of how many new customers it recruits. It's always got an eye on getting them in.

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