Episode 380 – Choosing the BEST Customers For Your Business
Today is Mike’s second live podcast, where we will be chatting about something every business owner worries about; Finding the right customers.
A lot of times people think that your customers don’t matter too much as long as they pay, but that isn’t actually true. To start today’s blog off, we are going to focus on why it is so important to have good customers.
The first reason having bad customers can be detrimental, is for your employees. If you have customers that aren’t respecting your employees or always complaining and making life difficult for you, it’s going to tend to drive your good employees away. Having a good all-around environment is essential for keeping not only you, but your employees sane as well. On top of that, your bad customers tend to be the ones that take the most time and resources to deal with, which is especially damaging as it can take your time and passion away from your good customers as well.
In order to get good customers, you first have to get a few things in place. First, you have to change your mindset. If you don’t know how to get good customers, or who the good customers even are, then you’re going to be stuck on the mindset that you have to take on, or keep bad customers. Just because a customer has money, does not mean you have to take them. You want to run your business, not the other way around. Another mindset that you may want to change is thought of “the less money I charge, the happier the customer will be”. Charging a fair price is not taking advantage of a customer. It’s better to provide premium services at a higher price point to better customers than it is to make tiny margins across a sea of bad customers.
So now we have an idea of what beliefs are going to hurt your company, now let’s talk about the good stuff. We are going to go point by point, and expand on some of the mindsets and systems that you may want to implement into your own business.
- No such thing as a good, unprofitable customer.
- Good customers should understand that you have margins, employees to pay, etc. and should understand your pricing. If your customer doesn’t appreciate the services that you provide and is always fighting you on pricing, maybe it’s time to start allocating your resources to your other, better customers.
- Good Customers should not treat you as their bank, or make you beg for your own money.
- Piggybacking off of the last bullet point, Good customers should understand that you are putting their money back into the business, and that they can’t mess around with your pay. If a customer is making late payments, putting you through the ringer just to so you can collect the money for services that you’ve already provided or any other shenanigans, then it may be time to move on.
- Good customers are repealed by desperation, attracted by success
- Even though it may seem like your losing money in the short term, dropping your prices and making special adjustments here and there for certain customer can actually be a hindrance in the long run. This will start to attract the shady customers, and start to drive the good customers away. Good customers should always appreciate the value that you bring.
- Core Value Match
- Core Values is actually one of the very first things Mike talks about in his Clean Profit Method. You need to have your own personal values that you hold above all else, that should shine through in everything you do. This will help in all parts of your company. You’ll start to get better, more like-minded employees, better customers that you can have a superior relationship with, more trust between all parts of your business, etc.
- Your business is never going to grow without a client attraction system
- Another part that Mike talks about in his Clean Profit Method, is client attraction systems. When you have a steady influx of people, a lot of your stress will seem to dissipate. Letting bad customers go will be easier, you won’t have to worry so much about margins, and if you’re going to make it that month, because with a good system in place, you should never have to worry about finding more clients.