Getting VC's interested in your business

A simple formula to getting VC's interested in your business.

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Great Client Retention hints and tips

Have you listened lately?

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Steven Jobs

May he rest in peace.  He will be missed.

There is only one boss!

Keeping the Good client Good.

"There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else." - Sam Walton

Customers are fickle, fickle, fickle.  They jump ship at the drop of cell phone and never look back. Which begs the question, how do you keep your customers loyal?





Answer number one: keep the value of your services foremost in the mind of your clients.

How do I do that you ask?  Here is an example:

During a review of their client list, the managing partner of the law firm, pointed out an account he decided to 'forgive' the outstanding invoice.  It was $6K worth of legal work for the wife of a top client.

I suggested that instead of writing it off quietly and feeling frustrated by loss of the fee,  he could contact the client/husband and let him know the law firm was forgiving the debt.  It would buy good will and show the customer the value of a strong relationship between top client and the law firm.

The managing partner's eyes lit up at the prospect of  the 'miles of good will' he would earn and strengthen the exiting relationship with this client.

Two weeks later, the managing partner relayed that his top client was extremely touched by the gesture and handed the firm another $250k in legal work.

How do you reinforce the value of your services to your best clients?

The Price of Bad Service

"For two years, FreshDirect stopped soliciting new customers to work on better serving its existing patrons. That strategy seems to have paid off: A loyal core of repeat customers — about 45,000 to 50,000 in all — now generates two-thirds of the company’s revenue. Richard S. Braddock, chief executive, reports that the company had its first profitable year in 2009 on revenue of $250 million and he expects the company’s 2010 revenues will rise to $300 million."

Reprinted from the New York Times, Thursday August 19, 2010 by Jessica Bruder

I am constantly reminding my clients that revenues primarily come from their existing client base.  How they treat and service those clients who opted to work with them in the first place is key to that magic in business called "repeat revenue."

This is why Strategies for Growth exists. I wish to beat our own drum a bit here. We create Client Retention Programs designed to keep your good clients repeat customers, convert the bad to good and fire the ugly. Our success rate has been an overall up-tic in revenues of over 250%!

It is more cost-effective to maintain and resell your existing client base than to constantly try to acquire new customers.   For a review of how Strategies for Growth can help increase revenues from your existing clients, give us a call at 818-512-6477.

Toxic Clients: 3 Reasons to Fire Them

I ran across a fantastic blog that said it all so well that I rushed to gain permission to re-blog.  I have cut the article in two parts for easier reading. Here is Part 1.

A bit about our guest blogger: Emily Brackett is president of Visible Logic, Inc. Established in 2001, Visible Logic is a graphic design firm that works across all media—including web sites, logos, print materials, annual reports and book design. Based in Portland, Maine, Visible Logic builds complete
branding systems and designs individual projects for clients across the U.S. You may reach Emily or learn more at: www.visiblelogic.com

Unfortunately, I am currently in the midst of “separating” myself from a toxic client. And while this blog post is not about design, it is about being a small business owner, and I had to write it.
First of all, what makes a toxic client? There can be many variations and each is unique but there are usually early red flag warnings, followed by one or more of the following:

• Disrespectful behavior. Any client relationship should be a partnership, not a stomping ground.
• Pays late, disputes bills. If you are providing a professional service you should be paid. Someone who constantly questions your bills are questioning the quality of your work or your honesty in billing them.
• Questions your skills and expertise. If you are providing a service you are getting paid to help someone using your specialized experience. If a client continually questions your decisions, they don’t feel comfortable about your level of expertise.
• Undermines projects. When working with a  client, there should be a mutual goal of creating something together. For us, that means a web site, a logo, an ad, etc. We should be helping each other. When a client becomes an obstacle rather than a resource, there is a problem.

The first question I always ask my clients is:  How many toxic clients do you currently have and what are they costing you in time and revenue?
 It takes guts and courage to fire a toxic client.  How do you do it? Think about finding a colleague or consultant to 'second' you in your decision and communication with the client.

Second Part of blog next week.  Stay tuned. 

Laurelle Johnson
Strategies For Growth
The Good The Bad and The Ugly
Client Retention Program
laurelle@laurellejohnson.com

Client Retention Program

As most of my readers are aware, I have developed a  program called The Good The Bad and The Ugly Client Retention Program.  Focused on service firms that are in need of a client management program that is NOT computer-based, GBU creates a process to convert the bad clients to good, manage the good with first-class service and fire the ugly.

The reams of information on good client relationships, managing those relationships, and keeping those good clients fills a giga-bite-plus of internet space. Popular CRM software cannot classify the organic nature of client management.  This huge gap leads to mis-communication, bad feelings AND loss of revenue.

Client relationships are built between human beings. A Client Retention Program is a execution plan.  Plain, simple and straightforward, it allows a firm to deploy precious  resources to the good, convert the bad and fire the ugly.

Time to ask your service firm the following questions:

How do you manage your clients?  What relationships do you actively maintain and why?  What revenue is stuck behind a difficult relationship?

Feel free to comment on your current state of clients: The Good, The Bad and The Ugly!

Change is good for the heart!

Change is good for the heart and the soul.  After five years, I am retiring the Innerwealth brand and moving forward with Strategies for Growth.

This new company is focused on creating Client Retention Programs for service organizations. Firms such as Consultants and Adviors, PR firms and law firms will benefit from the focus The Good the Bad and The Ugly program brings to their bottom line.  My clients have experienced at uptick in revenues of over 450%.


Stay tuned - more coming.

What's left for fun?

Received this message from a friend of mine. Thought it worth a blog.


Just saw your tweet. Your front yard got tp'd? Seriously? And I didn't grow up here, but honestly, are the kids' parents going to tell them off? Is there any consequence? 

Umm... having been a superb TP'er in my day, I cannot fault American kids for a bit of old-fashioned fun.  It's harmless, a mark of honor among teens (you're worth our time) and just plain fun for those doing it in the middle of night.   It's the thrill of doing something where you CAN get caught, but nobody does.  So what if the front yard looks a bit bedraggled?  All our neighbors came by and laughed and shared with us their own youthful "TP" stories. 

We have taken away all the fun stuff kids used to have outdoors. They now only have the net to surf.  And then we complain bitterly about their sedentary lifestyle. 

I remember egging houses, sneaking into movie theaters, and the best, absolute best, was throwing laundry detergent bombs into the myriad of fountains lining the streets of a planned neighborhood named (of all the Hollywood myths to copy) Mt. Olympus!  It was thrilling to execute, thrilling to not get caught and satisfying to go by the next morning and view each and every fountain foaming huge mountains of suds.  There was a certain "performance art" beauty to it all. We the perpetrators still LOL over the stunt when we get together.

Had a friend who, with a group of young guys in their 19ish year, changed the Hollywood sign to read "Hollyweed"in celebration of the marijuana law of 1976.  The leader of the weed patrol died recently.  His funeral was attended by a cross-section of mourners who knew him throughout his life.  But what was the one thing everyone brought up and told over and over again?  Not his thriving furniture business, not his board membership of several non-profits, but the planning and execution of the 'Hollyweed' stunt. It created a truly joyous LOL moment in an otherwise grim situation. 


So I say - TP away - it's the only fun thing left to do.  And parents, don't call the cops,  just get your kids to clean up the mess.  REALLY,  I mean REALLY!

Lunchtime Dreamers

I worked for a busy Fortune 500 corporation from the age of 24 to 40something.  I rarely looked up from my desk from 7AM-10PM that the job and promotions demanded.  But on the weekends I turned into the outdoor adventuressI wanted to be in high school.   Why did I not pursue this path full time?  'Cause of the money honey.  There was NO money in adventuring in those days.  You took a vow of poverty and that was that.

Well I like to inhabit nice, clean places and wanted to own a home of my own. So off to work I went on Monday mornings, tired, exhausted from the all-night driving when coming back from a high energy weekend in some distant California outpost.  I kayaked, skied, climbed, backpacked every weekend and had a blast.

During the week, I ate lunch at my desk and plotted with my travel agent adventure buddy where to go next.  I wished I had had the internet then to keep me company.  I could have viewed all manner of places with out leaving my desk and reduce my stress. Check this link out and you'll know what I mean.

http://bit.ly/cWUI72

Happy Lunchtime Dreaming!

The Brand Within, By Daymond John, Shark Tank Investor

Sarah Shaw of Entreprenette interviewed billionaire Daymond John on the secrets of his success.  He is known for the creation of the FUBU clothing line and one of the investors on 'Shark Tank.' It is a riveting, powerful 30 minutes of direct, honest answers about starting up companies, investing and continuing the success from company to company.  Sarah Shaw is a member of my mastermind group and one very smart seasoned entrepreneur.  Take a moment to listen to this interview as I think you will find the lessons useful to your enterprise.

http://bit.ly/cH6xK2

Enjoy!

The Ugly

We all have clients.  We love our 'good' clients, we work hard with our 'bad' clients.  But no matter what we do, we can never seem to make the 'ugly' happy!  They are impossible to coach, yell back or are unreachable or nasty on the phone when we do reach them. I define the ugly as non-paying, unreasonably demanding and rude. 

I like to categorize my clients so I know what to expect each time I speak with them. I made a vow, when I started Innerwealth Communications that I would  jettison those that are out to make my life miserable. I always assess the 'why' of the ugly - did I miss something, is there an issue they are not sharing with me,  cannot vocalize their dissatisfaction, etc.  Once I have determined I have done everything for them I can do and it's still not good enough, I do not hesitate to FIRE them quickly.  It frees up my time to find a 'good' client.   

How you deal with your 'ugly' clients?  Comments welcome!