Category: Business Advice

How to increase your business capacity without breaking the bank!

Posted on | by Jade Donno

Winning new clients should be an exciting part of growing a business. And yet, due to the current climate, this rising demand is often met with limited resources and labour shortages.

Throughout this article, we’ll explore how outsourcing and offshoring can help you increase your capacity without breaking the bank!

What is the difference between Outsourcing and Offshoring?

Outsourcing is when a business hires a third party to perform tasks in order to improve efficiency and cut back on costs. Think of this as hiring freelancers.

Offshoring, however, is when a business bases some of its in-house operations overseas. By moving entire processes overseas (i.e. manufacturing or customer services), they’re able to source cheaper labour and gain access to a much larger talent pool.

Both options serve as a cost-effective solution to labour shortages and fulfilling increasing demands.

4 ways outsourcing can increase your capacity

Now that we understand what outsourcing and offshoring are, let’s explore how they can help your business increase capacity:

1. Expanding your skillset

We all understand the importance of identifying and remedying gaps in our workforce. However, hiring and training specialist staff comes at a cost. So, what’s the solution?

By outsourcing global talent, you’re able to employ highly skilled professionals for just a fraction of the cost. In turn, you can address any gaps in your workforce and leverage their talents to expand your services and attract new clientele.

2) Boosting Productivity

By assigning repetitive tasks to your external team members, you can save a lot of time otherwise wasted on labour-intensive, lower-value tasks. As a result, you’re able to boost your existing teams’ efficiency and engagement, scale your overall output and ultimately increase your capacity.

3) Facilitating 24hr operations

Many people are hesitant to outsource global talent because of the time difference. What they don’t realise is that this can actually work in their favour!

By outsourcing a global team, you’re able to extend your working hours and potentially operate 24-hours a day. In turn, you have the opportunity to accept a lot more work and expand your client basis. After all, you’ve practically doubled the number of hours in your working day!

4) Offering fast and flexible labour solutions

Labour shortages are placing a real strain on businesses at the minute. Thankfully, outsourcing provides a fast and flexible solution to this problem!

By hiring freelancers, you’re able to continue growing your business, fulfilling demand and satisfying customers. What’s more, these flexible contracts come with no strings attached, giving you the freedom to adjust your external team to match your capacity and workload.

Expand your team to increase capacity

Instead of surrendering to your current circumstances, try expanding your horizons by outsourcing global talent.

Outsourcing allows you to scale your business, increase your clientele and reach your highest potential – all for a fraction of the price of hiring internally.

So what are you waiting for? Offshoring could be the beginning of your global enterprise!

Why sole traders need a separate bank account

Posted on | by Jade Donno

If you are just about to become a sole trader, or have been one for a while, you might be wondering whether it is worth getting a separate bank account for your business. There is no legal requirement for sole traders to have a separate bank account for their business unlike Limited Companies which are required to do so. This is because HMRC views Limited Companies and the Directors as separate legal entities, whereas sole traders and their businesses are viewed as the same. Therefore a Limited Company is required to keep its bank accounts separate from the personal accounts of the directors. For more information about the differences between these two business structures read our blog.

We usually recommend that all of our sole trader clients get a separate bank account for their business. Here are some of our reasons:

1) It makes your accounts more accurate

Having a separate bank account for your business income and expenses has the obvious advantage of being able to keep any other income and private expenses separate. This will stop any chance that they could become mixed up or confused which will in turn ensure that your bookkeeping and accounts are accurate.

2) It stops you missing anything

Similarly, if all of your business expenses are in one account then you know you will not miss anything. It can be very time consuming to go through your personal account and pick out the transactions that relate to your business, so with a separate account you (or your bookkeeper) will not have to do this!

3) It helps to keep your numbers up to date

If you have your accounts separate and your bookkeeping up to date then you will have a better overview of how your business is performing.

With a personal account, you may not be able to get as clear a view of what your numbers are which could lead to making incorrect business decisions.

4) It makes HMRC inspections easier

In the event that you get an inspection from HMRC, the first thing they will look at is your business account. This means that you won’t have to hand over your personal bank statements to them in the first instance. This process is likely to be a lot more straightforward if HMRC only have one bank account to look through.

5) It makes bookkeeping in Xero easier

We can set your Xero up so that it has a bank feed running to your sole trade bank account. This will mean that we won’t see your personal transactions or need you to send in bank statements for any other account. This could also save you money as our bookkeeping service includes up to 50 transactions per month. Using a personal account is likely to put you over this!

We recommend…

Some banks may charge a monthly fee for a business bank account. You don’t necessarily need to have a specific business bank account set up, however some banks do specifiy in their terms and conditions that you cannot use a personal account for “business use”.

Some banks however do specific bank accounts for sole traders, and don’t charge a monthly fee! We particularly like this one from Starling Bank https://www.starlingbank.com/sole-trader-bank-account/

(We are not affiliated with Starling Bank)

As you can see, it makes so much sense to keep a separate bank account for your sole trade business. It will save you & your bookkeeper time and hassle and make sure that you don’t include or miss anything important from your accounts.

Talent Management Planning: Why Do It?

Posted on | by Jade Donno

Talent management planning is a term we often hear floating around the business world, but what exactly does it mean and why should we do it?

To help you gain a clear understanding, we’ll explore what talent management planning is, what it consists of and, most importantly, why it’s beneficial to both you and your employees.

What is talent management planning?

Talent management planning is all about implementing effective strategies to attract, retain and nurture skilled professionals.

What should a talent management plan consist of?

Each company’s talent management plan will look slightly different based on its unique set of goals and objectives. However, each company’s plan should focus on improving these primary features

  • Recruitment
  • Training and development
  • Employee retention
  • Performance management
  • Employee engagement
  • Succession planning

Why is talent management so important?

Talent management planning helps ensure you’re getting the most out of your teams by implementing systems and processes to support their development and improve their performance.

In short, it is the blueprint for hiring and maintaining a highly-skilled, high-performing workforce, which, as we all know, is imperative to your company’s success.

How does talent management planning benefit your business?

Besides the obvious advantage of strengthening your overall workforce, there are several other benefits to implementing a talent management plan. Some of which include:

  • Increased engagement: by demonstrating a keen interest in your employee’s goals and personal development, you will find they are more engaged with their work, making them more productive and more profitable.
  • Efficient recruitment: you can utilise recruitment software to streamline your recruiting process, filter applicants and ensure you’re attracting only the highest quality candidates.
  • Improved staff retention: by offering your employees consistent opportunities to enhance their skills and advance their careers, you’re providing them with a clear incentive to retain their position within your company.
  • More candidates for succession: by adopting formal performance management techniques, you can see which employees are most suitable for senior roles and adapt their training to prepare them for these positions.

How does talent management planning benefit your employees?

Perhaps the best thing about utilising a talent management plan is that it’s mutually beneficial. To demonstrate our point, here are just a few of the benefits your employees can enjoy as a result of effective talent management planning:

  • Better onboarding process: by refining your onboarding process, employees will be more engaged and more at ease from the get-go. So do your best to make the onboarding process as personal as possible.
  • More training opportunities: by facilitating regular training opportunities, you’re providing your team members with the necessary tools to upskill and advance their careers.
  • Greater career autonomy: by partaking in mentorship programmes, you’re able to support your employees with their own career goals by offering advice, recommending training programmes and aligning them with appropriate internal opportunities.
  • Positive working culture: by assisting employees with their goals, funding their training and fostering a culture of growth and development, your employees will be more motivated, engaged and invested in your business.

Don’t underestimate the value of talent management planning

There are countless benefits to developing a talent management strategy, so don’t overlook this opportunity to strengthen your team! Invest in their development, support their career aspirations and focus on creating a compelling company culture. Your employees, profit margins and performance metrics will all thank you for it!

How to combat rising wages and staff shortages

Posted on | by Jade Donno

It’s no secret that hundreds of small businesses are suffering from increased wage costs and staff shortages. These issues span multiple industries, from hospitality to construction, and have only intensified since the beginning of the pandemic.

So, how do you handle rising demands with limited labour?

To help you navigate these challenging times, we’ve curated a list of strategies to boost your staff retention, improve your recruitment processes and increase your profit margins.

Here are our 5 strategies for combating rising wage costs and staff shortages:

1) Hire graduates, and interns, and apprentices

Graduates and interns offer an effective and inexpensive solution to staffing shortages.

Straight out of college or university, these young adults are primed for training, ready to be moulded to your company’s exacting needs. What’s more, studies have shown that hiring graduates can significantly increase your staff retention rates. Approximately  57% of graduates still retain their position five years later.

Hiring an apprentice, whilst quite an investment in time, can also be beneficial for many companies.

Although hiring a graduate may not be a quick fix, it’s a brilliant way to source new talent – plus, the ROI is second to none.

2) Invest in your employees

Loyalty is a two-way street. Therefore if you want your employees to remain loyal to your company, you need to invest in their development.

Provide them with opportunities to upskill, fund their training and encourage them to diversify their skillset. Not only will it improve your retention rates by 30-50%, but it will also allow you to cultivate a team of highly skilled professionals.

3) Utilise mergers and acquisitions

More and more companies are deciding to partake in mergers and acquisitions. Why? Because resources are limited and successors are few and far between.

By combining forces the parties involved gain access to a larger workforce, a greater array of talents and more viable candidates to succeed their business.

Plus, with an increased market share, companies are better equipped to manage rising wage costs as they acquire more capital and increase their profit margins!

4) Delegate administrative tasks

With labour dwindling and demand rising, our employees are really being pushed to their limits. So don’t exacerbate the problem by burdening them with non-essential responsibilities. Instead start automating repetitive tasks and hiring administrative staff to handle any paperwork.

Although investing in new employees and tech can be costly, they can notably increase productivity, profits, and employee engagement. Stop placing unnecessary strain on your staff and start streamlining your administrative tasks!

5) Update your recruitment style

Now more than ever you need to be investing your resources into your recruiting process. After all if you want to solve your staffing issues, you’ll need to attract and attain new employees. So what can you do to improve your recruitment style?

Firstly, you need to be harnessing the power of social media. This allows you to broaden your search whilst offering applicants an accurate insight into your business.

Secondly, you want to focus on your company culture as this can quickly attract or deter applicants. Ask yourself, what makes your company the place to work? Do you offer impressive employee benefits? Do you accommodate flexible working?

Whatever it is that makes your company attractive and unique, make sure to funnel that into your recruiting process.

Take care of your employees

Running a business is never easy, but our current climate is making things even more challenging. We wanted to end this discussion with some words of encouragement.

If your business can survive Brexit, a global pandemic and an inflating economy all in quick succession, it can also survive these labour shortages. Just remember to streamline your processes, adapt your recruitment methods and take care of your staff, as they will take care of your business.

6 key changes businesses should have made over the past 2 years

Posted on | by Jade Donno

The pandemic has been transformative in many ways. It has changed how we view our health, how we communicate and, of course, how we run our businesses. Whilst we certainly wouldn’t want to do it again, it has taught us a lot of valuable lessons. In light of the lesson we’ve learnt, we thought we’d share 6 key changes we believe all businesses should have made since the pandemic:

1) Hybrid Working

Before the pandemic hybrid working was a lot less common, however this is no longer the case. Recent studies have shown that 76% of companies have adopted a hybrid working model since the pandemic because it has proven to be so effective!
Employees are more productive, more engaged and generally happier when provided the opportunity to choose their work environment. Your employees and your profit margin will thank you for adopting a more flexible working model!

2) Internal Communications

Learning to navigate a business in social isolation has really highlighted the importance of effective communication, not only between team members but between firm owners and partners too.
We made sure to have daily zoom meetings with the whole team throughout the pandemic so that we all had a chance to see and talk to each other, even if there was nothing particular to report. Without these open streams of communication we would not have been able to adapt our businesses, engage our teams or maintain operations during the Covid-19 crisis.
Therefore, you must continue to prioritise and invest in your internal communications. After all, if the pandemic has taught us anything, it’s that effective communication is a valuable commodity.

3) Digital Processes

Working from home forced us to adapt in more ways than one. However, the most notable difference has been the global shift towards virtual working and digital processes.
Adopting cloud-based software has innumerable advantages, but perhaps the most noteworthy is its ability to increase efficiency. In a recent survey, 48% of respondents agreed that cloud computing increased their efficiency thanks to cloud automation and broad network access.
So, if you haven’t already, do yourself a favour and start streamlining your processes by using a digital payment process and introducing automation tools to your workflow.

4) Advisory Services

If guiding our clients through the pandemic has shown us anything, it’s that our advice is both valuable and scalable. Developing your advisory services is something you need to make sure you are doing.
Offering tailored advice can be a simple way to utilise your expertise, enhance client relations and increase revenue. So don’t limit yourself to debits and credits – expand your services by offering relevant business advice!

5) Outsourcing

In a time when we had to adapt quickly many businesses had to outsource labour and resources to operate, and that continues to be the case. Labour shortages have forced us to seriously evaluate what we can and can not deliver in-house.
Yet, despite the great resignation and the global pandemic we’ve come to find there are actually many benefits to outsourcing.
Outsourcing can improve revenue, increase efficiency, and reduce operational costs. What’s more, it enables you to delegate tasks outside of your expertise, allowing you to channel your energy into what you do best. Don’t be afraid to ask for help as you’ll need it if you want to scale your business.

6) Refined client base

They say that every cloud has a silver lining. Whilst the pandemic did present us with many hardships, it also allowed us to take a good look at our client base.
If you’re yet to do so, we highly recommend reviewing your client base as well. Who are your high-value clients? Which clients drain your resources? The aim is to identify which clients you can afford to let go in order to save yourself both time and money.
Although culling clients is never easy, refining your client profile can be extremely beneficial if done respectfully. This will help you make space for more clients that fit your ideal client profile!

Future-proof your business

Unfortunately Covid-19 won’t be the last challenge we face. There will always be another bump in the road or another fire to put out. By implementing these suggestions you have the ability to streamline your business, optimise your performance and keep up with your competitors, all of which are essential when preparing your firm for the future.
Try not to be despondent when times get tough. Remember, challenges are also opportunities for growth and innovation.

How automation can improve your efficiency and productivity

Posted on | by Jade Donno

Automation was already on the rise pre-pandemic, but now it has become a business priority. The positive benefits of automation pay dividends for those businesses that invest in it. Many business owners don’t know that accountants can offer a lot of assistance in this area: streamlining and automating processes to improve business efficiency, so here are the many benefits.

1) Automation reduces the time spent on repetitive tasks and the risk of human error.

Expenses is an area that is notoriously labour-intensive, time-consuming for staff to submit and finance departments to process, and it’s extremely prone to human error. The same goes for invoicing and purchase order processing. However, with a streamlined and automated workflow, the whole process is connected through a single system from start to finish. This means it’s a lot quicker and, therefore, cheaper (less time is wasted, and the risk of manual input errors are eliminated), and skilled staff can now spend their time on higher-value tasks.

2) Automation results in better credit control.

Late payments are one of the biggest causes of stress for business owners, not to mention it has a huge negative impact on cash flow. With the use of digital payment process, however, late payments can be greatly reduced. Automation makes it easier and faster for businesses to chase payments; it increases the chances of invoices being paid on time, and it saves 15 hours on average per week on credit control management.

3) Automation gives you accurate real-time reporting.

Knowing your numbers is crucial for business success. However, it is both time-consuming and expensive to have your staff monitoring every KPI and to have to trawl through all the data. With automation, however, you have the ability to see your overall business performance at any given time. With real-time financial reports, you can then accurately budget and forecast cash flow and make effective business decisions.

4) Automation increases both client and staff satisfaction.

Contrary to what people believe, automation does not take away from human interaction. In fact, it does the opposite. Speeding up and streamlining business processes means that your staff have more time and energy to better serve your clients. It gives them the time and means to respond to needs and nurture stronger client relationships.

As well as improving customer service, automation also leads to higher employee engagement. Your staff will no longer have to concern themselves with paperwork or mindlessly boring manual tasks. They will now be free to focus on higher-level, more rewarding tasks such as spending more time with clients to understand their goals and how the business can help deliver those. Satisfied and engaged staff will directly contribute to growing your business so this is a very important benefit of automation.

5) Automation improves productivity and the bottom line.

Streamlining processes means that staff and the business as a whole work more effectively and efficiently. This time can then be spent on the higher-value tasks that will increase revenue. As well as enhancing workflow, automation can also help solve the current talent shortage as employees can be better trained and developed on the job.

Save time and money with automation

Too often, business owners spend too much time working in the business rather than on it. However, with automation, employees can be relieved from these day-to-day menial tasks to focus on what will directly grow the business.

As well as increasing efficiency and productivity, automation can save you a lot of time and money by eliminating errors and reducing staffing and credit control costs. So, if you want to streamline your business, don’t hesitate to reach out!

The Do’s and Don’ts of pricing in a recession

Posted on | by Jade Donno

No matter how big or successful your company is, maintaining business throughout a recession is hard. With fluctuating demands, losses in sales and competitive price drops, the whole experience can feel like a rollercoaster ride. So how do you survive the economic chaos?

To help guide you through, we’ve created a comprehensive list of pricing do’s and don’ts. These tips can help you find long-term solutions to your turbulent, but hopefully temporary, problems and ensure you not only survive the recession but develop strategies to help you thrive long after.

The Do’s

Do promote your value

Unforeseen circumstances can quickly change the landscape of the economy. However, these external factors shouldn’t directly impact the value of your products or services. Therefore, we believe the best way to navigate a recession and stand out from your competitors is to focus on communicating the intrinsic value of your products and services. Through effective marketing, you can remind your clientele of your unwavering commitment to high-quality service and customer satisfaction regardless of the economic landscape.

Not to mention that it will take you a lot longer to do all your finances than a professional anyway. Why would you waste your time when you could be doing what you do best and what you actually enjoy?

Do control your costs and address inefficiencies

Controlling your prices during a recession is incredibly important. Why? Because the decisions you make during times of crisis strongly reflect your company standards and values. Make the wrong call, and it can irreparably damage your reputation and relationships with customers, which in turn will harm your sales long after the recession is over.

Instead of altering your prices to increase your profit margins or sales, focus on streamlining your companies’ processes. Address any inefficiencies, create long-term solutions and invest in your team’s development.

Do create valuable bundles

Dramatic price cuts aren’t as effective as you may think – not to mention, they’re almost always unsustainable. Instead, you want to find solutions that will accommodate your customer’s current needs without compromising the value of your products or services.

Creating valuable bundles and packages is one solution that is both reliable and sustainable. By offering a range of bundles (from low to high value), you’re able to attract a variety of customers and cater for their varying needs. As a result, you’re able to drive up sales, preserve the value of your products and services, and accommodate your cost-conscious customers throughout these difficult times.

Do keep looking ahead

Every business owner, CEO and partner knows that for a business to succeed, you must constantly be looking ahead – innovating and improving upon your current position. (Even amidst a recession, you must focus on long-term solutions.) Therefore, it’s vitally important to focus on your research and development strategies. Assess your customer’s wants and needs – ask them how you can improve and really listen. You can then use this information to improve upon and create products/services that incentivise customers to start (or continue) investing in your business.

The Don’ts

Don’t rapidly reduce your prices

There are several reasons why rapidly reducing your prices is an ineffective and ultimately damaging tactic during an economic downturn. However, we believe the most significant reasons are:

  1. You can destroy your long-term value. If you lock in a long-term price drop, you’re signaling to customers that the value of your products and services are significantly lower than your standard price point.
  2. Discounts won’t resolve your demand issues. If your products or services aren’t currently in demand, lowering your prices won’t change a thing. For example, there was little to no demand for theatre tickets at the height of the pandemic. However, since restrictions have eased, sales have returned to normal, and box offices have successfully maintained their original prices.

So don’t fall into the trap of lowering your prices – they are not the problem.

Don’t rapidly increase your prices

If you’re experiencing a sudden surge in sales – fantastic! Be grateful, not greedy. Rapidly increasing your prices when your products/services are in high demand implies that you are taking advantage of your customers and their needs. Not only will this alienate your customers and damage your reputation, but it can also lead to legal implications. So, whenever you are increasing your prices, make sure you do so ethically and sustainably.

Don’t get into a pricing war

If a competitor reduces their prices, don’t immediately assume you have to do the same. Competitive pricing will only damage your value (and your profit margins). Now, that isn’t to say you can’t develop a cheaper product or service that’s of equal value to your competitor’s offering – but you should only cheapen your services if you have adjusted their intrinsic value.

Remember, customers will respect your pricing so long as the services or products you provide are of a high standard.

Don’t focus on quality over quantity

Guiding your business through a recession is no mean feat. It takes a lot of courage to maintain your prices and values. However, this perseverance will help to preserve your reputation and uphold your high standards. So, instead of taking a reactive approach, focus on being proactive! Find long-term solutions, provide non-monetary discounts and drive sales based upon the quality of your products and services.

How accountants can make you look good

Posted on | by Jade Donno

When you as a business owner think of an accountant, you think of taxes, financial reporting, or loan applications. While this is all correct, it is just the beginning!

Accountants may be the frontrunners when it comes to your finances, but we can offer so much more than that. One of our most valuable offerings is making you look good!

Here are some ways that accountants can help you with your image:

1) They help you look professional 

Accountants can help you manage your accounts, budget smartly, and fix your cash flow, all of which are the foundations of a successful business. They can also help you to automate your business and work more efficiently.

For example, automating your invoicing system so you no longer need to chase unpaid invoices or reconcile payments manually. Not only does this save you a lot of time and free you up to focus on other areas of your business, but it also makes you look professional to your clients as they can see that you’re on top of your processes.

2) They help you remain competitive

One of the most common mistakes that business owners make is that they become too chargeable. I.e., they are not charging enough for their services. While this may bring in more business initially, in the long term, it will start choking your business growth.

By pricing correctly, you can let go of the clients who are not paying enough or who don’t align with the direction of your business. Once you start pricing what you’re worth, you’ll soon see that you will attract the right types of clients – the ones who support your growth and overall goal.

3) They help you look & feel confident

With an accountant by your side, you will be able to walk the walk as well as talk the talk. You will be making smarter business decisions such as increasing your capacity by outsourcing working rather than hiring a full-time employee, and you will have the figures you need at your fingertips. Figures that will give you, your clients, and any other third-party peace of mind.

4) They help to reassure your clients

If your business grows suddenly and takes on more clients, some of your existing clients may be worried that you can’t handle this growth, or they worry that they will become less important to you. To reassure your clients that you’re growing sustainably, an accountant can help you forecast the future and outline your business strategy. They can help you make necessary changes now so that you’re prepared for any growing pains.

Invest in your image 

A good impression of your brand is incredibly important, so invest in an accountant to make sure that you give off a positive one. From helping your business run smarter, to outlining the future for your business, an accountant can help you to reassure yourself and your clients that you will sustain value and growth for the foreseeable future.

KPI blog

Setting KPIs for your business: 6 tips

Posted on | by Jade Donno

KPIs (Key Performance Indicators) are metrics that tell you if what you’re doing is working or not. As you can imagine, this makes them incredibly important for productivity and business growth.

How do you know that you’re on the right track to achieving your goals if you don’t measure progress?

How do you know that you’re doing exactly what you should to get to the place that you want to be?

The short answer is, you don’t.

If you want your team to work more efficiently and if you want to actually reach the goals that you set out for your business, you need to start setting and monitoring the right KPIs. Here’s how.

1) Set KPIs for everyone

Regardless of the size of your business and team, you need to set KPIs for each team member. Metrics allow you to measure performance and improve it, so don’t be tempted to not set them at all.

2) Don’t set too many KPIs

This is a big mistake that many business owners make. Avoid this. Less is more when it comes to improving performance, as too many goals affect focus. Aim to have no more than 5 KPIs for each team member.

3) Choose KPIs that are relevant to the businesses overall goal

KPIs need to directly link to the demands of the individual’s role and what the business is trying to achieve, so look at your business plan. Where is the business going? What are the key figures that you need to know and measure?

4) Agree on these with each individual

Once you’ve chosen the KPIs for each individual, sit down with them and agree on them. Set your expectations but also explain how they will support the business by achieving these targets. The more you can show them how they contribute to the overall success of the business, the better.

5) Measure and monitor KPIs

It’s not enough just setting KPIs, you need to measure and review them. Setting and monitoring KPIs is an essential business development task, so schedule in time to review this data every month. When you do, you’ll see what tweaks you need to make to improve productivity and move the business forward.

6) Review and reset these every quarter

As your business grows and changes, your targets will be out of date. Make sure to review them with your team every 3 months so that you can update them and ensure they are still relevant. During this time, give your employees feedback, seek out their views on what is working or not working, tell them how the business is performing, and discuss what they can influence to move the business forward.

Start getting results by setting KPIs

Don’t just set arbitrary goals, set KPIs too. If you do, and you track them and monitor performance, you’ll soon see if you’re getting the results that you want. If you’re not, then the great thing about KPIs is that you can identify that something isn’t working a lot sooner. All it takes is another tweak here and an improvement there, and you’ll find what works best for you and your business.

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How to attract the right clients (ones who value what you do)

Posted on | by Jade Donno

I heard this saying recently, “you get the clients you deserve.” At first, I wasn’t sure what it meant so I dug a little deeper, but my conclusion was and still is, that this is 100% true.

Think about it, if you’re accepting low-paying, nit-picky clients and you’re not setting their expectations for how you actually like to work, you’re going to keep getting these types of clients who you don’t even enjoy working for. Conversely, if you stick to your guns with your prices, you set client expectations, and you emanate confidence and passion for what you do, you’re going to weed out the energy-drainers and only attract the type of clients that you actually want.

Sounds perfect, right? It really is as simple as that. If you want to attract the right kinds of clients – the ones who actually value what you do and are willing to pay for it – here is how you do it.

Step 1: Create a growth plan and strategy

Choose your ‘one big focus’ for your business for the year ahead. Maybe it’s to win X amount of clients or to reach a financial goal. Whatever it is, write it down and work backwards to create actions that you need to take every month, week, and day, to reach this goal.

Step 2: do a full client portfolio analysis

Make a spreadsheet of all your clients and go through them all individually. Record what you do for them, how long it takes, your profit margin, whether they are easy/medium/hard to work with, if you like working with them, and whether you’d be happy to lose them.

Step 3: create your client personas

Now you have identified your best clients, create a client persona/s. This should outline their age, gender, occupation, education, family/marital status, goals, values, personal aspirations, fears, challenges, and pain points. The more detailed you can be with this, the clearer the picture will be of who you are targeting, what they want, and how you should communicate with them.

Step 4: tailor your marketing to your client personas

The mistake that many business owners make is being too generic with their marketing. They want to cast as wide a net as possible to “appeal to more people,” but what ends up happening is they make no impact at all. When you have your client personas, adapt your marketing message to target them. You only want to win these types of clients so address their specific pain points and position yourself as the solution or the guide that can help them achieve their goals.

Step 5: ditch your ‘D’ clients

Look back at your client portfolio analysis and identify your A-B-C-D clients. Typically, they are as follows:

  • Clients who make up 65% of your sales = A clients
  • Clients who make up 20% of your sales = B clients
  • Clients who make up 15% of your sales = C clients

D clients are those low-paying, nit-picking clients who you’re not really happy with and who don’t contribute a huge amount to your bottom line.

The last step in the process of attracting the right clients is to ditch these clients. Not only does this give you more time to go after the ones you actually want, but it makes room for them too so that you can provide them with the service they deserve.