Choose your Customers wisely - removing excess baggage - Russell Colbourne

Russell Colbourne - “Your Money Machine”

IBGR.Network – Profit Radio. Everything a business owner needs to start, grow or exit a business. Grow With Us.

Introduction
Your business is Your Money Machine.  In this Show – I’ll take you under the hood of your enterprise and show you how to fine tune your business.  Get ready for lift off as we add rocket fuel to your profitability!  This show is focused on businesses that have launched and are preparing for exponential growth

Most companies deal with many customers. Inevitably, some customers are more profitable than others—and you can’t make sound business decisions without knowing which is which. Understanding which customers are most profitable, gives you the basis for marketing, inventory and pricing strategies.

Show Objectives
The SECRET to “cracking the client code” is in your Accounting System!
Understanding who are your most profitable clients
What makes some clients more profitable than others?

1. They buy higher margin products
2. They take up less resources
3. They demand less attention
4. They use fewer features
5. You hold less stock for them
6. They Pay on time or better still up front

How to find your ideal client and then multiply that client as many times as you want.
 
Key Issues

1. The Problem- when you cast your net that wide- is you inevitably catch something you don’t want to catch
2. A paying client is not the same as a PROFITABLE client.
3. Simple three step process - using your accounting system - to find the diamonds in your client list. 

What You Need to Do

1. Sales by Customer report from your accountant ( or system ) 
2. Set up a rating system for your clients
3. Target your ideal clients
4. Review quarterly or annually and adjust as needed. 

Shows
Previous: Episode F3.006 Fine Tuning your products and services for maximum Profitability  

Next: Episode F3.008 Preparing for lift off - understanding your Income Ratios

Written by Russell Colbourne
Your Money Machine


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