Author: Yafit Davis, Your Business Development Team, TAB Member since 2017
It is a known fact that most established businesses rely less on new business sales and more on customer retention and referrals. This is as it should be because these are key factors in the development of any company contributing to its stability and profitability. However, how many of you hold on to your existing clients at any rate because you would rather deal with the devil you know?
I am sure that you will not be surprised to hear that this is one of the top reasons we hear from companies considering their business development strategy.
Indeed, there are many reasons to focus on your existing client at the expense of developing new markets including:
- Hiring or developing the resources required is expensive
- There are no guarantees that you will get a return on your investment
- You might have to make concessions or changes to your product to make sure it fits
- Developing new business takes a lot of time and effort
That said, there are also many reasons why you should consider new markets. Here are some of my favourite ones:
- Overdependency on your current client base. Depending on your industry your cliental may be very specific and limited or it might have a wider reach. Like everybody else, some of your clients might be great and others less so but any company can change direction, fold or decide to hire someone else. If you have a healthy pipeline of new opportunities this might be less of a blow.
- Over-dependency on specific industries. You may well be an expert and a brand in certain industries which is great. However, as economic circumstances change, some industries may experience a decline which can put you at risk. Adding diversity to your sales can put you a step ahead of your competition and keep you in profit. Diversity does not have to mean a different industry all together but also improving your reach within your existing one.
- Limiting your own growth. If you only operate within one target market, you may well reach a saturation point which hampers your growth efforts. A new market can provide you with a fresh opportunity to grow and develop.
- Becoming a bit stale. If you always do what you have always done you cannot really expect change, even Einstein said that. Going for new markets will force you to update your products and consider how you do things which is never a bad thing.
Whatever you do in 2020, don’t dismiss approaching new markets and developing new clients. Besides obvious reasons such as growth and diversity it will also add to your team’s engagement and interest. Nothing like a challenge to bring everyone together.
As Managing Director at the Your Business Development Team, I hope this is useful and will support you in including a plan to enter a new market sometime this year. If you do, be sure to contact us to see how we might help. We have introduced some very specific products on top of our lead generation and lead nurturing so you may want to visit our site and have a browse.
Yafit Davis | Your Business Development Team | TAB Member since 2017Find Out About TAB Membership