Letting Go of Less Than Profitable Clients
A tough decision many firms face is whether or not to let go of less-than-profitable clients. It comes down to the business model you want for your future. Some firms will work with any client who wishes to take positive action in their lives, regardless of their profitability to the firm. This can be a successful model, but it may require increased overhead, technology or staff to support the service needs long-term. On the other hand, letting go of less-profitable, lower-tier clients may allow you to provide a more boutique experience for your “A” clients and high-potential relationships and give you time to focus on markets that are appropriate for your business.
Developing a Niche Market
Whether you are just starting out in your business or managing a successful practice, developing a niche market is one of the most effective strategies for long-term growth. A profitable niche market solves many business challenges, including building significant client relationships and branding yourself in the marketplace.