Big Blunders You Need to Avoid Part 2
Previously, we went over the first two big blunders that you should avoid when making deals. In this lesson, we’ll go over the next two: biting off more than you can chew and having all of your expectations on one contract.
Biting Off More Than You Can Chew
Taking on too much business before your company can handle it can backfire. It becomes impossible for your company to keep up with all of the demands on it from your clients. This situation can turn into one where you’re unable to function and lose control. For your business to be successful, you need to have a clear plan for how you’ll handle growth. You must be able to provide the high-quality service, products, and customer service that your clients will expect from your company. Their concern is their business, not how your company handles things behind the scenes.
Defeat this blunder by looking for these signs:
- Some or all of your clients aren’t having their needs met.
- Your clients aren’t happy, your staff morale is down, and you feel panicky.
- You and your staff are always in emergency mode to handle customer needs.
- You’re losing profit and clients.
- You have to reallocate your resources.
- You’re trying to hold your business together with your fingertips.
It may be time to implement the Mock Fish Plan. It’s a valid plan that makes it possible for you to react positively to what’s going on so that you can put your business back on the right track before it’s too late.
What this plan does for your business:
- Add sales for the short term
- Improve your services and products
- Make it possible to meet any promises to clients
Steps in the Mock Fish Plan:
- Create a team made up of your best employees that can meet the needs of your clients.
- Go over your current operations.
- Brainstorm potential problems and determine how to solve them.
- Improve your communications process.
- Put costs in all of your quotes.
- Make a backup plan to fall back on.
Having All of Your Expectations on One Deal
You’ve probably heard the phrase do not have all your eggs in one basket meaning that this one basket could break with all of your eggs in it. You don’t want to depend on one client or deal for your company. There are going to be times when that client isn’t as active as you’d like or they may have a situation that comes up where they’re no longer your client. What happens to your company if this happens? Your business may suffer. It’s vital to have a diverse range of clients to keep your business prosperous.
Problems with one client can result in difficulties with potential clients. Here are some steps that can help you create a stable company with a secure future:
- Stay connected with your client’s company to have an idea of what’s going on internally not to get blindsided by news that could impact your deal.
- Stay aware of your industry and revamp your company to remain industry leaders.
- Remain exclusionary.
- Have a goal of contracts and commitments that are long-term rather than one year.
- Contracts should be spread out among a variety of clients.
- Stay aware of your pricing within the industry to keep your prices competitive.
It’s essential to reduce the dependency that you may have on just one client. You’ll be able to measure this with either profits or sales. It may be helpful to go back and look over previous lessons to find the best way to bring on more clients to achieve this balance.
Another lesson down on how to avoid these blunders to keep your company running strong. Need help with your business? Contact us today to learn about our services and how they can make a difference for your company.
Our next lesson will cover the final big blunder that you need to avoid for your business.