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Phillip chichoni
To lift an autumn hair is no sign of great strength; to see the sun and moon is no sign of sharp sight; to hear the noise of thunder is no sign of a quick ear. What the ancients called a clever fighter is one who not only wins, but excels in winning with ease. He wins his battle by making no mistakes.
Making no mistakes is what establishes the certainty of victory, for it means conquering an enemy that is already defeated. Hence the skilful fighter puts himself into a position which makes defeat impossible, and does not miss the moment for defeating the enemy. Thus, it is in war the victorious strategist only seeks battle after the victory has been won, whereas he who is destined to defeat first fights and afterwards looks for victory. — Sun Tzu: The Art of War
Frank has been in business manufacturing domestic and office fittings for the past 10 years.
There is one thing though that really bothers him: his business has not grown as fast as he envisaged when he started his own company.
His biggest client is a large and well-known retail group, but this company takes its time to pay for the work done.
When I spoke with Frank a few days ago, the company had still not paid for the work done five months ago.
When he asked for the payment again at the beginning of the year, he was told to bring a copy invoice, a delaying tactic which this company uses against SMEs a lot of the time.
As we talked with Frank, he came to the realisation that he has to stop depending so much on a single and problematic customer.
Here are five ways of increasing your customer base and growing your business:
Set aside time for marketing and look for new business
Many business owners are so caught up in the daily grind of running the business and fulfilling existing customers that they rarely have time left for the important task of getting more clients. In business you have to realise that existing customers can go at any moment.
They may get out of business, become broke, die or simply find another supplier. To cushion your business against the effect of some customers leaving, try and attract as many new customers as possible. This needs a well-thought-out strategy and plan of action; so set aside time daily to do the thinking and acting on the plans.
Get referrals from satisfied customers
The most effective and inexpensive way to get more customers is by asking existing customers to recommend your products and services to their relatives, friends and associates. If each of your customers brings you one new client, you will easily double your customer base. And the new customers may stick with you even if your old customer goes.
Position yourself as a guru
Customers prefer suppliers who are authoritative in their fields. If you become known in your industry as the expert, you will find customers who are ready to buy flocking to you. You can position yourself as an expert by writing a book, contributing useful articles to business magazines, newspapers and to popular blogs.
Network more
Networking is one of the best ways of meeting new potential customers and people who may know your potential customers. Because people prefer to do business with people they know, directly or indirectly, networking increases the size of your potential customer base.
Don’t skimp on marketing
Many SMEs are penny-pinchers when it comes to spending money on marketing.
In business, it is usually necessary to spend money in order to make more money. Placing advertisements in the media, printing flyers and posters, hiring marketing consultants, setting up a website, joining business associations: all that costs money. But when done wisely, it is a good investment that will help you attract more customers.
The 2012 Simplified Guide to Taxes for Entrepreneurs is now available.
People on my mailing list have already received their free copies. If you need one just drop me an email.
The first SME BusinessLink breakfast meeting is set for Friday January 27 and renowned marketing and branding expert, Nigel Jumbe, will talk about how entrepreneurs can effectively market themselves and their businesses so as to accelerate their growth.
You will get more entrepreneurial resources at my website http://smebusinesslink.com or subscribe to my free weekly newsletter by sending me an email.
Phillip Chichoni is a strategic business planning and financial management consultant who works with SMEs and entrepreneurs. You may contact him by email on
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