26 May Why Getting More Client’s Won’t Save Your Business
Full disclosure, mastering marketing has been crucial in my growth from a solo practice owner to a 7-figure per year health clinic by providing me with the ability to get new clients on demand.
I came to realize that getting more leads and clients wasn’t the most efficient way to grow my business and frankly is expensive restricting profitability. To grow my business I needed to shift my strategy away from the focus of just new clients.
See, most practitioners believe that by getting more new clients their problems will all be solved.
The reality is there are a few problems with that mindset.
More clients equal more work, energy and stress.
Unless you have an innovative way to differentiate and deliver your services, you always are going to be battling competitors with similar ways to attract leads and clients.
This battle leads to low-profit margins making it increasingly difficult to compete as you have less money to invest in your business’s lifeline – structures, systems and strategies.
We see this story play out time and time again. I live in East Toronto and in the past 3 years, I have seen 100s of local businesses open and close.
I am sure their intentions were good, providing a better life for their families and themselves but in the end, they went bankrupt.
What is interesting to note is the reasons the 99% of business owners provide as to why they failed.
- Poor economy
- No one has money
- Not enough sales
- Too much competition
While these could very well be true, wouldn’t that mean all of their competitors close up too?
The reality is if a successful business is only tied to how well the economy is then there would be no industry and in my case, I wouldn’t have been able to grow from a solo practice owner to a successful health clinic at the same time as these businesses that were closing.
The real reasons for the failures are more likely to the fact that 99% of business owners don’t know anything about effective structures, systems or strategies especially when it comes to marketing or profitability.
One of the biggest problems related to this is how most businesses rely on a single marketing & revenue stream, which is usually word of mouth and their primary service.
In today’s marketplace, competition is ruthless and more aggressive than ever before and businesses following this “old school” model will struggle with profitability and soon become burnt out and obsolete.
So what’s the solution?
One thing I do to keep ahead of competitors is schedule time quarterly review of my numbers and brainstorm potential ways to increase profitability and revenue streams.
This is a process I’ve learned from business mentors of mine such as Jay Abraham and Gino Wickman, where I look at over 50 sections of my business identifying areas of opportunity and ranking them based on complexity, time to execute, and the potential return on investment.
Part of this process is spent on improving the client’s success journey. Retention is a key component to profitability and we all know it is at least 5x more expensive to obtain a new client than to retain one.
I look for ways to improve the client’s experience and our communications to them, often by simply asking them what they want and how we can better serve them.
Often what we find is a way to add a new service or product to better help our clients get superior results.
For example, adding nutraceutical supplements and nutritional counselling was a success because many clients were purchasing low-quality products from Walmart and MLM companies.
Now our clients can get the best products without having to travel to a store and be uncertain if what they are buying is even right for them.
When executed properly and ethically this strategy can make your business more money, especially since your main service is covering business expenses.
My 7 figure health clinic business model consists of 8 revenue streams all offering services and products that help facilitate superior results to clients.
- Personal Training
- Info Products
- Lifestyle Services
- Continued Education
You don’t need all of them and depend on your business but I can tell you that the health practices and clinics that incorporate multiple streams; retain their clients longer, get better results, make more revenue per client and get a higher return on advertising spend compared to competitors.
As a result, they become enormously more profitable and are able to grow despite fluctuations in the economy.
Want to get your business on track? Schedule your free sales pitch-free strategy call below HERE