You Need To Run Your Business Like Studio 54!
The title of this article may seem a bit weird, but see if this theory of mine makes sense to you.
Peachtree Technologies is committed to creating exceptional marketing and advertising that turbocharges businesses. Our goals are 100% client-focused because we understand the goals that our clients have for their businesses. Goals like: getting the phone to ring, attracting more customers, and increasing sales and revenues. That’s exactly what all business owners want, right? Well, not so fast…
If you polled 100 business owners and asked them if they want more customers (and consequently more business), I bet 99% (or maybe even 100%) would give a resounding “Yes.”
But if you sat each of these business owners down and used some advanced-interrogation techniques, you would find that some of these business owners “say” they want more customers, but deep-down in the back of their minds – they really don’t want more business/customers.
The reason why this weird phenomenon takes place is because some owners (consciously or unconsciously) end up equating more customers/business to more work, more hassles/headaches, more problems to deal with, and more unforeseen stuff that needs attention.
These are the business owners that often times are lukewarm about taking steps to growing their business.
Many are in the “just wanting to keep everything status quo” mode and are like the proverbial little Dutch boy – keeping his fingers in the dike so that everything doesn’t fall apart.
But that’s the wrong way to look at things – ‘more clients’ actually equates to ‘increased demand’. If you have more demand you actually have a lot more control and a lot more options. For instance, you can raise your prices and target a higher-quality clientele – which increases your profitability. This enables you to actually work less and make more money. So…
More Clients = More Demand = More Power/Control = More Options for You = More Money
Your Business Can Take A Lesson From Studio 54
The most famous nightclub in New York City during the disco craze of the 1970s was Studio 54. It was so legendary that movies and documentaries were even made about the unbelievable scene at Studio 54. The club was filled with world-famous celebrities and millionaires, and in its heyday the line for people clamoring to get in was blocks-long.
I’ve watched some of the documentaries about the club and often times the owners would stand outside and select or reject patrons due to some of the most ridiculous things – like the clothes they were wearing, hairstyles, etc. The reason they were able to be this ‘ridiculously selective’ was because there was so much demand to get into their club and therefore their authority increased – along with their egos. (fyi – the club was eventually shut down because the owners were arrested for tax evasion. So examine their marketing methods – not their accounting skills )
These owners became much more selective about who they let in, and ended up maximizing the popularity and profitability of their club. But if you think about it, any club or restaurant (or even grocery store for that matter) has the same limitation problem in that their facility can only hold a maximum amount of people.
You may be in a business that doesn’t face a square footage limitation, but you’re still facing other ones like the biggest limitation of all – time! Many businesses suffer from their own specific limitations in that they have a maximum: clients they can meet, prospects they can phone, patients they can see, or customer service calls they can answer. We’re all working on a fixed amount of time.
The solution to this time limitation problem, once again, is more advertising and marketing. Marketing and advertising creates more demand which allows you to be more selective – enabling you to make more money and work less!
Hitting Your Max
Going back to the analogy of the little Dutch boy, if you’re a business owner of a growing business, and you don’t make changes to how you run your business (or who you target), as your business starts increasing things will start getting out of control. Eventually you’ll hit a maximum ceiling where you’re bursting at the seams. One wrong move, one small aspect of some process that doesn’t occur perfectly, and chaos ensues for that hour of the day – or even for the whole day. It’s like the proverbial house of cards that can collapse any moment.
It’s also similar to a segment that used to take place during the variety shows of early television back in the 1950s. In those variety shows they would often have a skit with some guy spinning a bunch of plates on sticks. And the big goal was how many plates he/she could get spinning at one time. It was always fun to watch for the audience, but it was a stressful situation for the plate spinner. Many business owners can share that same feeling of stress because they have so many “plates” spinning.
Grow and Specialize, Grow and Specialize, Grow and Specialize…
That’s the key to creating a strong, powerful, and profitable business. When you first start off in a business endeavor you end up taking any client that can fog a mirror. Then as you start attracting more and more clients in building your business, you start identifying qualities of clients that you are drawn to. Identifying those qualities enables you to start creating a blueprint for the target market (or markets) that you want to pursue.
The key point is to continue to become more specialized. Think about it, doctors that make the most money are the ones that become highly specialized. Lawyers that make the most money are the ones that become specialized, etc… But these same doctors and lawyers will tell you that if you’re beginning a company on your own – it’s hard to start ‘off the bat’ and specialize.
That’s where advertising and marketing comes in. It’s very doable to develop a highly-focused advertising campaign that allows you to isolate and cultivate the exact target market that you want to work with. Advertising and marketing also enables you to move more quickly towards your specialty.
Moving towards your specialty is also a good feeling because it allows you to phase-out people you don’t want to deal with. This highly-focused target market could be based on several different criteria. It could be people that are more affluent, or it could be people that are less affluent. You might want to market local people, or people from out of town. You figure that local people already know XYZ, so out of town people need my help. Or, out of town people don’t know what they’re doing so they’re more work – I’d rather deal with local people. Whatever your reasons and whatever your target markets – it’s a good feeling.
This specialization scenario will also mean that your business has the ability to run more smoothly and more stable – you’re dealing with less (and a higher-quality of clients) coming through the door. You’re able to relax and focus on delivering good customer service and working with people you want to work with.
So now you know what other people ‘say’ they know, but might not really truly know. ‘More clients’ is a good thing.
