<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=290086984736480&amp;ev=PageView&amp;noscript=1">
Search
word-map-thumb

The Alternative Board Blog

3 Ways To Ensure Profitability By Diversifying Your Client Base

Jul. 30, 2019 | Posted by Phil Spensieri, TAB York Region
Phil S. July 30th image

Diversifying your client base can offer incredible opportunities for your business, and can serve as a way to protect your business from revenue fluctuations, create ongoing growth, and increase profit. However, issues can arise when business owners only cater to specific industries, rely too heavily on  “larger” clients, or require a deeper knowledge of their targeted clients.

Instead of putting all of your eggs in one basket, seeking a more diverse client base is the best possible option to encourage better opportunities for your business’ success. Here are three ways in which you can ensure greater profitability in your business by diversifying your client base.

1. Ensure that you have all types of clients in your roster


When you look at your existing clientele, what do they have in common? Many business owners share with me that they target only one industry. Although it may be easier for business owners to find and target these customers, putting your focus on one industry can put your business at risk.

For example, if a downturn impacts a specific industry from which many of your clients are based, your business will more than likely experience an impact from that downturn. I’d suggest lessening the impact by having a client base that caters to a variety of industries, which can be an essential aspect of keeping your business on top of any potential challenges.

Ultimately, targeting clients in a diverse range of industries can help you maintain your profitability during more challenging times, and reduce your risk of reduced profitability for your business’ future.

Want additional insight? Read 4 Step Guide to Strategic Planning now to learn more

DOWNLOAD

2. Have several smaller clients

Many business owners put a lot of their hard work and energy into targeting and maintaining large clients.  While financially, this may make sense off the bat, the risk factor to your bottom line can be greatly impacted.

By adding several smaller companies to your client list, it will help you mitigate that risk, as well as protect your bottom line, if one of your larger clients was to leave. Smaller clients allow business owners to maintain a certain level of income, internal resources, and equipment without it impacting your bottom line.

3. Create a targeted client list

One thing that I’ve encouraged many business owners to do is to create a more targeted client list. To begin, this could simply mean defining your ideal client or customer. However, as you start to look at your current customer base, your targeted list could begin to include more “big picture” ideas.

Is there a service or product beyond what you currently offer that you think would benefit your clients? Opportunities for innovation can be an exciting and valuable endeavor for any small business, especially ones that are looking to diversify their existing roster. I find that thinking outside of the box and examining new industry trends and possibilities can offer you a more profitable means of engaging a wider range of clients and customers.

To receive one-on-one coaching and peer advice about business issues like this, become part of a TAB board today.

 

Read our 19 Reasons You Need a Business Owner Advisory Board

DOWNLOAD

Written by Phil Spensieri, TAB York Region

Phil Spensieri is a TAB Facilitator in the York Region of Ontario, Canada.

Related posts

How To Find And Keep Profitable Clients
Aug. 13, 2019 | Posted by Phil Spensieri, TAB York Region
In my previous blog, I discussed why diversifying your client base is important for your business’ profitability. Once you’ve targeted the right people, how do you go about keeping those profitable...
7 Tips for Managing Millennials on your Sales Team
Jul. 25, 2019 | Posted by The Alternative Board Worldwide
We often hear that millennial employees are a breed apart, and require a shift in management style and perspective. The same can be said about a millennial sales team and what’s needed to effectively...
What's the Difference Between Business Development and Sales?
Jul. 18, 2019 | Posted by The Alternative Board Worldwide
At first glance, there doesn’t appear to be much distinction between business development and sales. Aren’t both activities geared towards generating more profit for the organization? Isn’t a sales...
5 Customer Acquisition Strategies that Spur Growth
Jul. 9, 2019 | Posted by The Alternative Board Worldwide
Maintaining a strong base of existing clients is essential for every business, but acquiring new customers is equally important. Without an influx of new and prospective customers, a business may...
How to Generate Word-of-Mouth Sales Referrals
Jun. 25, 2019 | Posted by The Alternative Board Worldwide
Think about how you choose to make your purchase. There’s research you do online, or perhaps you’ve bought a product or service from a particular company before, and you’re comfortable doing so...
5 Customer Service Blunders Made by Small Businesses
May. 28, 2019 | Posted by The Alternative Board Worldwide
Is “quality customer service” part of your brand promise? If so, you’ve made a commitment to deliver an outstanding buying experience each and every time a customer (or would-be customer) interacts...
How A Sales Performance Plan Can Help A Struggling Rep
May. 2, 2019 | Posted by Joe Zente, TAB Austin
Whenever a sales rep isn’t performing, it is time for swift and decisive action. Let’s say our rep (we’ll call him John) is falling short of his goals. Depending upon the extent to which John’s...
5 Tips on Improving Your Company’s Sales Process
Feb. 5, 2019 | Posted by The Alternative Board Worldwide
For just about every business, one principle is tantamount: every sale counts. A company’s sales process should be streamlined, well-structured, transparent and efficient. When one or more of those...
A Quick Guide to Hiring a High Performing Sales Team
Jan. 29, 2019 | Posted by The Alternative Board Worldwide
A quality salesperson is vital to sales team success This individual is responsible for generating leads and closing sales, which translates into revenue-generating activities for your organization....
5 Tips for Leveraging Social Media to Boost Your Sales
Apr. 9, 2018 | Posted by The Alternative Board Worldwide
Like virtually everything else in business, sales activities have been forever altered in the digital era. Use of mobile technology, for example, has dramatically enhanced the ability of sales teams...