“I have a relatively successful business and now wish to increase my client base by a further 20%”
This is what I was approached to do not too long ago and whilst that is an admirable objective, there are many aspects that need to be considered beforehand.
You have to ask the following questions:
- What sector is this business placed?
- How likely is it that a 20% increase is, after all, possible?
- How stable is the existing business model?
- Does the proprietor know the profit level and breakeven point for the existing business?
- What management information is available already to determine the impact of such a growth target i.e. cash flow, extra resources to complete intended growth in terms of machinery, staffing?
- To achieve this aim is it best to grow the existing business or consider an acquisition with the benefit of a more robust management structure?
- Has the business a written plan to achieve this aim and what are the objectives?
- How can we measure the impact of such a growth target?
- What systems and procedures do they need to put in place?
These are only a few of the issues that need to be examined before we look at the marketing aspect. It could be that selling more to the existing customer base will achieve the same results rather than embarking upon a costly marketing programme.