How do you find new business? It’s a question that many business owners ask each other on a regular basis. I actually had that discussion just the other day. I believe we are hopeful that one day that magic answer will appear that will business grows easily and consistently.
Unfortunately I don’t think that will ever be the case. I am sure we all have ways that we use to find new business. With spring supposedly right around the corner, I’ve been thinking about growth (you know, spring, things sprout) and thought it would helpful to discuss some of the most common business development options.
1. Referral Organizations
There are many organizations solely designed for helping their members get business referrals. Once of the most well-known is Business Network International (BNI). They have more than 8200 chapters across the country and more than 225,000 members. I’ve had account managers try this over the years. Some did very well, others only moderately well. Some success I think depends on the chapter, some success depends on your own consistency in attendance and providing referrals to other members. I personally determined it wasn’t for me as I know my schedule doesn’t permit me to commit to being at the same place at the same time every week. It’s just not me. But others have found great success. There are other organizations that have referral groups. One of our local chambers has a group that meets twice a month specifically to give each other referrals. Depending on your business model it could be worth researching in your area.
2. Networking Organizations
There are many ways you can utilize organizations for referrals. While they may not like being characterized as a networking organization many people join most organizations for that purpose. Our local Chambers of Commerce are a great resource. To be honest, it is my number one source for referrals. However, I am extremely active and visible at the Greater Miami Chamber of Commerce, so that does have an impact. As I explain to potential members, “it’s like a gym membership, if you join and don’t do anything you will look the same a year from now.” It holds true for any organization membership. If you don’t get involved you won’t reap the benefits of membership. It may seem “cold” but you need to determine which organizations will work best for you. Not all are a good fit. I had a fellow business owner that was on the board of an organization for two years (it was a 2-year term) and after her term she decided to sharply decrease her participation with the organization primarily because she wasn’t getting the type of referrals that were necessary for her to justify the amount of time she was volunteering. We all need to make sure our time is wisely spent even if an organization’s mission pulls at our heart strings!
3. Client Referrals
How many people have a consistent “ask” for referrals of existing clients? Not many I would suppose. I admit, I ask periodically but not on a specific schedule and sometimes I forget to ask for months! I have one client that we have an annual lunch (he’s the CEO) and he typically comes prepared with some new names for me. Granted, we’ve been doing this for years and he has always wanted to help me grow my business but that is truly an unusual situation. There are a number of strategies that people use to get client referrals. Some send a thank you note for every order and state: If you know anyone that would also benefit from our services please don’t hesitate to refer us. Referrals are always appreciated. Some people include the ask as part of their email signature and others include it as part of their regular client meetings and conversations. Many times we forget to ask for referrals within the same client organization. I’ve discovered that most organizations are very decentralized in their buying habits, even if they have a central supply chain department. So it’s a very good idea to penetrate as many departments as possible, including marketing, sales, human resources, finance, IT, and more. And don’t forget to ask your clients for referrals outside their organization. There could be other vendors they use that could benefit from your services. One thing is for sure, we should always ask for the referral!
4. Prospecting or Cold Calling
Many people like to get out into the business community and drop in on potential clients. And granted I have heard some great success stories with this strategy. One in particular turned into a very large client for one business owner. He walked in just as the marketing director discovered that their current supplier had dropped the ball on a project. He was able to save the day and win a great client. But I have major reservations about cold calling. Those “success” stories in my experience are few and far between and I’d prefer to use my time more productively. But, if it works for you, you work it consistently and with a plan or if you’d like to try you never know.
5. Business Trade Shows
There are Industry shows, expos specifically geared to business development, and shows geared specifically to various populations: women, military, diversity to name a few. This can also be a very effective way to spend your time “cold calling” in a different format. It’s a way to find out what companies may be looking for or find out the best departments to call on or even get to meet the buyer! I attended a show last year that was a diversity expo sponsored by a local healthcare organization. They had people not only from their various departments but many of their vendors were also in attendance. I was fortunate enough to meet a number of key buyers and have picked up two new clients as a result!
I’m a big believer in having an active and constantly changing pipeline of potential prospects. Those in my pipeline either become clients, are deemed to not be a qualified prospect (too small or under contract with someone else) or they are just not interested in us (shame on them). That’s why I am constantly working the chamber, client referrals and business trade shows!
What works for you?
Danette Gossett is the founder of Gossett Marketing, co-founder of Promotions Rescource LLC and co-author of the best-selling book “Transform” with Brian Tracy. Danette utilizes her more than 30 years of advertising agency and corporate marketing experience to develop effective promotional campaigns and products for her clients. Visit GossettMktg.com or SalesPromo.org and follow us on twitter @MarketngTidbits.