Episode 352 – Growing Your Business by Adding Larger Clients
Today we’re talking with Jared from Picture Perfect Cleaning!
Jared has experienced a lot of good growth in his business in the past eight years and currently has 165 clients. He’s looking to take his cleaning company to the next level and onboard higher level clients. Jared is asking Cleaning Nation, what strategy should he use to make this strategy successful?
The first step is to identify what Jared is looking for. We want to define what higher level clients mean. For Jared, this is a $20,000 a month client. Now, we’re going to identify the three types of clients Jared could come in contact with. We will label them as red, yellow and green.
Red prospective clients are customers that he is not interested in working with. For example, a one-time cleaning client or a client that pays $250 a month. For Jared, these clients aren’t worth the hassle of onboarding or up keeping. He wants to avoid these clients and be aware that they aren’t going to help him achieve his goal.
Yellow prospective clients are customers that he will gladly do business with, but isn’t necessarily going to spend time or money attracting them. For example, this could be a client that pays $2,500 a month. Since Jared is aiming for higher level clients that pay $20,000 a month, his client is still profitable, but not worth spending time or resources marketing to.
Green prospective clients are the customers Jared is aiming to on board. In this case, they are $20,000 a month clients. These are the clients that Jared is going to spend time and money marketing to in order to land as many as he can.
We can even break down this strategy further, and define Green prospective clients with three tiers. For example, a $100,000 plus client could be tier A. Anything above that could be tier AA and a $1,000,000 client could be tier AAA.
This strategy reverse engineers your marketing process and shows you how much money is worth spending to market a $1,000 a month client and a $100,000 a month client. For example, if it costs $1,000 to land a $1,000 a month client, you’ve done a great job. If it costs $20,000 to land a $100,000 client, you’ve also done a great job.
The level you are going to market depends on the person you are trying to attract.
When you look for higher level clients, ask yourself where is my Dream 100 clients? Create a marketing plan for them. This plan may cost a substantial amount of money per year, but landing just one of those Dream 100 clients will have a positive return of interest and you’ll walk away money positive.
Best advice you’ve received either personally or professionally?
Everything should be systematized.
What’s the biggest mistake you’ve made in the cleaning business we can all learn from?
Picking up restaurants to clean because they are low-profit margins and tough hours.
What is your favorite book?
The E-Myth: Why Most Businesses Don’t Work and What To Do About It by Michael Gerber