Business Growth – Are You Asked The Wrong Question?

I’ve seen and heard so many people bleat on about how business growth is vital to maintain profits and a fully employed workforce.

Eh?

Doesn’t the customer figure in the business growth equation?

Highly paid consultants fight with one another to come up with the most incredible acronym for their never-fail business growth methodology. They then go and inflict it on unsuspecting clients.

Now, let me hold my hands up here. I truly believe in better processes and a business growth methodology so you don’t repeatedly deliver poor service to that much under-rated resource – your client.

But when I look at Business Link’s site on setting a vision for business growth…

The fourth page of information introduces the idea of a customer:

Who are your existing customers? Are there any other groups that may require your product or service and that you haven’t targeted before? Can your product or service be used for other purposes that you had not previously considered that could make it appealing to a wider market?

Does that really explore who your typical customer is?

Better questions would be:

1. Who are my best customers and how would you describe a typical one?  The most loyal, buy the most, generate the most referrals – however you want to measure “best”
2. What else do my best customers look for when they buy this product or service?
3. Can we provide that to them, or through a joint venture or create a new service or product?
4. Are there any other sectors of the whole market that “look” like our best customers – if so let’s go for them too!

So be wary of consultants bearing methodologies that trot out ideas that whilst logical don’t truly maximise your profits.

In addition don’t mistake making your business deliver products and services more efficiently as making more money. Because you may be making lots of what your worst customers will buy whilst ignoring the products your best customers pay a sky high premium for.

Efficiency is rather like a couple running an Eastbourne hotel letting their rooms out to coach parties at £18-20 per night and yet they could have been getting £100-120 per night. They’re still delivering the same service whether they take £18 or £120 and it wouldn’t have mattered if they weren’t full. Which would you prefer?  (By the way the couple changed their strategy and now take £120 per night).

So remember, as Tony Robbins says, “Ask better questions”