In the bustling world of business, the quest for more clients often consumes our attention because of the widespread myth that an increase in the number of clients is directly correlated to an increase in sales. However, oftentimes this myth remains exactly that: a myth. Business.com emphasizes this by explaining that it is often more expensive to acquire new customers (five to ten times the cost) than retaining old ones who are likely to spend 67% more on average.
Additionally, focusing solely on acquiring new clients serves a much bigger risk that most businesses realize. Studies have shown that the success rate of selling to new customers is 5-20% in comparison to a staggering 60-70% chance of selling to existing customers. These statistics highlight the growing need in the business community to focus more on current customers and increasing existing customer loyalty than acquiring new clients.
Cultivating Customer Happiness…
The key to retaining existing clients lies in keeping them happy and engaged. In an extremely competitive business world, businesses are required to go the extra mile to make their current clients feel valued and appreciated.
Below are listed some strategies businesses can harness to go this extra mile:
Personalized Attention:
Embrace direct marketing tactics such as handwritten notes accompanying your products. This helps showcase a personal touch that resonates with clients.
Highlight long-term clients on social media: make them feel special!
Utilize Upselling Opportunities:
Upselling opportunities are opportunities a business might have to sell more expensive items or add-ons to generate increased revenue. A business can utilize upselling as a sales technique by selling such items among loyal customers (who you have already established a positive relationship with).
Identify complementary offerings or upgraded versions that align with the needs and preferences of your existing clients.
Remember: Effective upselling not only boosts revenue but also adds value to the client relationship.
Exclusive Treatment for VIP clients:
Extend exclusive privileges to VIP clients, such as sneak peeks at upcoming product lines, priority access to products or services, and unexpected gifts delivered straight to their doorsteps.
By making VIP clients feel appreciated and valued, you reinforce their loyalty to your brand and foster long-term relationships.
Leveraging Seasonal Trends:
Capitalize on seasonal trends to introduce special discounts or promotions tailored specifically for existing clients. This can help make them feel special and thus enhance the loyalty they have with your business!
By aligning your offerings with seasonal demands, you not only enhance customer satisfaction but also demonstrate your attentiveness to their evolving needs.
Extra Incentives:
Utilize grassroot marketing by establishing referral programs.
Reach out to repeat customers directly and give them a discount or reward for every successful referral.
Actively seek feedback from repeat customers! This helps demonstrate your commitment to continuously improving their experience with your products or services— thus enhancing customer satisfaction.
Implementation strategies…
Below are some common steps you can use to integrate client satisfaction as a standard practice within your business:
Assess Your Current Practices: Evaluate your existing customer engagement strategies and identify areas for improvement.
Conduct Customer Satisfaction Surveys: Gather feedback from your clients to gain insights into their needs, preferences, and pain points.
Establish Performance Standards: Set clear benchmarks for customer satisfaction and monitor your progress towards achieving them.
Create Exclusive Offerings: Develop special incentives or rewards exclusive to existing clients, incentivizing their continued loyalty.
Know Your Customers: Invest time and resources into understanding your existing clientele on a deeper level, allowing you to tailor your offerings to their specific needs and preferences.
In Conclusion…
It is imperative that businesses realize that oftentimes the true gold mine for sustainable business growth and increased sales lies within our existing client base. By prioritizing client satisfaction, leveraging upselling opportunities, and fostering meaningful relationships, businesses can unlock the full potential of their current clientele.
Remember, in the pursuit of long-term success, nurturing existing relationships is just as crucial as acquiring new ones.
An important decision for any business owner is how to legally classify their company. Whether they opt for a corporation or an LLC, a partnership or a nonprofit, this choice impacts the ownership, liability, and taxation of their business.
While there are many structures available to business owners, at EGBI we commonly work with clients who are deciding between a C Corporation and a Limited Liability Company.
C Corporation
A C Corporation, or C Corp, is one of the most common types of corporations. Companies that are incorporated (commonly shortened to “inc.”) are typically more complicated and expensive to set up and maintain, but offer benefits for businesses that need to raise money or plan to be sold.
Ownership: One or more people
Liability: Owners are not personally liable for business debts
Taxation: The C Corp pays taxes on its profits according to national and federal corporate tax rates
Limited Liability Company
A Limited Liability Company (LLC) is a legal entity that protects owners from personal liability for business debts. While LLCs don’t offer the same benefits for raising funds as a corporation, theytypically require less recordkeeping and paperwork.
Ownership: One or more people
Liability: Owners are not personally liable for business debts
Taxation: Owners have flexibility in choosing between paying self-employment tax or corporate tax
Each structure offers its own advantages and disadvantages, but ultimately the “right” choice depends on each individual business, and is best decided with the help of a legal professional.
If you’d like to consult with an attorney and learn which business structure is best for your company, please join us for one of our upcoming Legal Clinics where you will have the opportunity to speak with an attorney privately for 30 minutes at no charge. Click here to learn more and sign up for your free session.
The total solar eclipse will be coming to Central Texas on April 8th with the possibility of one million visitors in our area due to this solistrial event. Businesses should take advantage of the rare event and the opportunity to capitalize on the excitement and maximize their revenue.
Let us explore some strategies on making this happen:
1. Eclipse-Themed Promotions: Embrace the celestial theme by offering eclipse-themed promotions and discounts. Consider also having eclipse-themed merchandise; tapping into the event’s spirit can attract locals and tourists.
2. Extend Operating Hours: Since the eclipse will draw new crowds, consider extending your business hours to accommodate the influx of visitors. Staying open later or opening earlier can provide additional opportunities to serve customers and boost sales.
3. Collaborate with Local Attractions: Forge partnerships with local attractions or travel agencies to offer bundled packages that combine eclipse viewing with other experiences unique to Central Texas. Collaboration can attract visitors looking for comprehensive experiences.
4. Create Eclipse Viewing Events: Organize special events around the eclipse. Whether setting up viewing stations with telescopes, hosting educational talks by astronomers, or arranging live music performances, providing a festive atmosphere can draw crowds to your business.
5. Ramp Up Marketing Efforts: Leverage social media, email marketing, and local advertising to promote your eclipse-related offerings and events. Utilize hashtags related to the eclipse to boost engagement and generate awareness leading up to the event. Contact news stations and publications to let them know what your business has planned for this moment.
Consider some of the strategies above, as the total eclipse is an excellent opportunity to capitalize on the influx of visitors and boost revenue.
Trading military uniform for loafers or heels, salutes for spreadsheets – transitioning from military service to civilian life can be a thrilling yet daunting adventure. But for those with the entrepreneurial spirit burning bright, it’s also the perfect time to launch your own venture. Owning a small business offers freedom, flexibility, and the chance to build something truly your own. It requires careful planning, dedication, and a systematic approach.
So, veterans, buckle up for a crash course in turning your military expertise into business success!
Step 1: Find Your North Star (aka-Your Business Idea):
Identify your passion: What skills did you hone in the military that could translate into a business? Are you a logistics whiz? A master of communication? A data analysis dynamo? Finding your niche not only fuels your passion but also helps you target the right market. Assess your skills, experience, and passions to determine your potential business ideas.
Conduct market research: Don’t jump in blindfolded. Research your target market, identify existing competitors, and pinpoint any gaps you can fill. Is there a demand for your unique skillset or service? To try to understand customer needs, conduct market research interviews with friends and family. This will help you identify any challenges with your idea early.
Step 2: Craft Your Battle Plan (aka-The Business Plan):
Write a business plan: This roadmap will guide your journey. Define your business goals, target audience, marketing strategy, and financial projections. Remember, a solid plan attracts investors, partners, and ultimately, success.
Seek funding: Explore your options. Veterans have access to special loans, grants, and programs like the SBA’s Veterans Business Development Center. In addition, Economic Growth Business Incubator (EGBI) has several resources we can share with you to help you source for the best local funding opportunities. If needed, don’t shy away from seeking funding to fuel your growth.
Step 3: Choose a Business Structure and Register Your Business with the Texas Secretary of State (aka-Business Formation):
Select a Legal Structure: Choose the most suitable legal structure for your business, such as sole proprietorship, partnership, LLC, or corporation.
Register Your Business: Register your business name and obtain necessary licenses and permits at the federal, state, and local levels. Lastly, apply for an Employer Identification Number (EIN): Obtain an EIN from the IRS for tax purposes with the IRS.
Step 4: Set Up Your Operations:
Establish Your Workspace: Set up a physical or virtual workspace for your business operations. Procure Equipment and Supplies. Purchase or lease necessary equipment, tools, and supplies to support your business activities.
Set up your business accounting and financial systems. Implement accounting software and financial systems to track income, expenses, and financial transactions. This includes opening your business bank account to connect your accounting information.
Step 5: Assemble Your Team:
Leverage your network: Your military connections are a treasure trove! Reach out to fellow veterans with business experience, tap into mentorship programs, and build a team of advisors and collaborators.
Hire strategically: Surround yourself with talented individuals who complement your skillset. Don’t be afraid to delegate tasks and leverage the strengths of your team.
Step 6: Develop Your Brand and Marketing Strategy:
Create Your Brand Identity: Develop a strong brand identity, including your logo, website, and marketing materials.
Define Your Target Audience: Identify your target customers and develop tailored marketing strategies to reach them.
Implement Marketing Tactics: Execute marketing tactics such as digital marketing, social media, networking, and advertising to promote your business.
EGBI has resources such as our Marketing Roundtable, Toastmasters, and other marketing support to help you during your business journey.
Step 7: Execute with Precision (aka-Launch Your Business):
Start small and scale gradually: Don’t try to conquer the world overnight. Test your concept, refine your offerings, and grow organically based on customer feedback and market demand. You may want to consider having a “soft” launch to gather feedback and make improvements from the onset. Then you can plan an official launch after making any necessary changes based on the outcome of the soft launch.
Embrace the power of technology: Utilize tools like project management software, online marketing platforms, and communication apps to streamline your operations and stay ahead of the curve.
Monitor and Adapt: Continuously monitor your business performance, gather customer feedback, and make necessary adjustments to improve operations.
Step 8: Manage and Grow Your Business:
Provide Excellent Customer Service: Prioritize customer satisfaction and strive to exceed their expectations. After all, your customers are the heart of your business.
Manage Finances: Monitor your financial performance, manage cash flow, and make informed financial decisions to ensure business sustainability.
Seek Growth Opportunities: Explore opportunities for expansion, diversification, and innovation to grow your business over time.
Step 9: Remember Your Mission (aka-Your Why):
Maintain discipline and focus: Military service instilled in you the value of hard work, perseverance, and discipline. Apply those qualities to your business and stay laser-focused on your goals.
Never stop learning: The business world is a dynamic battlefield. Stay updated on industry trends, attend workshops, and continuously hone your skills to adapt and thrive.
Step 10: Stay Informed and Seek Support:
Stay Educated: Stay updated on industry trends, regulations, and best practices to remain competitive.
Join Veteran Entrepreneurial Networks: Connect with other veteran entrepreneurs and business organizations for support, resources, and networking opportunities.
Utilize Government Resources: Explore government programs, grants, and resources available specifically for veteran-owned businesses.
Extra Tip: Don’t hesitate to tap into the vast network of resources available to veterans! The Small Business Administration,SCORE, and Veteran Service Organizations offer invaluable support, training, and guidance. EGBI also provides a number of valuable resources for our veteran business owners as well as it is a privilege for us here at EGBI to support our veteran business owners.
Remember, transitioning from military service to business ownership is a marathon, not a sprint. Embrace the challenges, celebrate the wins, and never lose sight of your mission. With your unique skills, unwavering determination, and a well-crafted strategy, you can conquer the entrepreneurial battlefield and build a business as impressive as your military service.
About the Author,
Monica Perras, Army Veteran, Entrepreneur, and Business Coach and Veteran Services Coordinator at Economic Growth Business Incubator is an advocate for veteran and non-veteran small business owners. With over seven years as a small business owner, Monica works to support aspiring and existing business owners who face barriers to growing a successful business, often, many of them being military veterans. If you’re a veteran looking to start or grow your business, reach her at perras@egbi.org for more information.
Every Wednesday, members of the EGBI Toastmasters club gather to practice their public speaking, presentation, and interpersonal communication skills.
The first part of the meeting is probably what you think about when you think about Toastmasters, where participants deliver prepared speeches to the rest of the club. (Unfamilar with Toastmasters? Click here to learn more.)
But the reality of life is that we often don’t have the time or opportunity to prepare what we want to say ahead of time — and we have to think on the spot.
This is where Table Topics comes in.
In each Toastmasters meeting, participants have the chance to practice their improvisation skills in front of a supportive audience. After the host introduces a question or prompt, random participants are invited to speak about the topic for 1–2 minutes.
Through practice, members learn to organize their thoughts and deliver concise responses without preparation. By presenting and providing feedback to others, Toastmasters members build confidence in their ability to contribute meaningfully to any conversation.
But outside in the real world is where these skills really come to life. Whether you’re answering a customer’s question, participating in a panel discussion, or delivering a last-minute presentation, the ability to respond effectively in any situation is a huge asset. An engaging conversation might turn a one-time visitor into a loyal customer, a speaking opportunity into invaluable publicity, and a restless audience into a motivated one.
If you’re ready to practice your impromptu speaking skills, you’re invited to join the EGBI Toastmasters International chapter, where you will learn and practice alongside a group of supportive peers. Click here for more information on how to join.
Clearly articulating your value is critical in a world where people’s attention spans are getting shorter, and opportunities arise suddenly. Times like these are where an elevator pitch comes in. In the time it takes to ride an elevator, you should be able to provide a concise and powerful overview of who you are, what you do, and why it all matters.
What is an Elevator Pitch?
An elevator pitch is a brief, persuasive speech that you can use to spark interest in what you or your business offers. It’s called an elevator pitch because it should be short enough to present during a brief elevator ride – typically around 30 seconds to two minutes.
The Purpose of an Elevator Pitch
Capture Attention: An elevator pitch is designed to quickly capture your audience’s attention and pique their interest in what you offer.
Make a Memorable Impression: First impressions are essential, and an elevator pitch is your chance to make a lasting one. By delivering a brief and persuasive message, you increase the probability that your audience will remember you and your value proposition.
Communicate Your Value Proposition: Regardless of whether you are an entrepreneur, a salesperson, or a job seeker, an elevator pitch allows you to communicate your unique value proposition clearly and concisely. It answers the question, “What do you do, and why should I care?” in a compelling way.
Open Doors to Opportunities: Opportunities often arise unexpectedly, and you never know when you’ll find yourself in a situation where you must pitch yourself or your business on the spot. An elevator pitch equips you with the confidence and clarity to seize these opportunities.
Start Conversations: An effective elevator pitch serves as a conversation starter. It is about delivering a monologue, initiating a dialogue, and engaging your audience meaningfully.
