13 June 2017
Having a queue of clients banging on your creative agency’s door, asking to work with you, sounds like a great position to be in, right? But taking on every client that comes your way, without any kind of filtering, can be a recipe for disaster if you’re not careful.
As an agency that’s looking to be profitable, it’s important to have a really rounded picture of your ‘ideal client’, so you can gradually refine the kinds of business you work with and grow a client base that you’re truly happy with.
So, how do you know which clients are the right clients?
As a creative business, you want to work with clients who inspire you – businesses where there’s a connection and where you can see ways to be innovative and create bold new ideas that fit their brief.
But the potential for innovation isn’t your only consideration when looking for new clients. There are other things that will define whether a new customer falls into the ‘good client’ or ‘bad client’ category – and that means asking yourself a few searching questions both before and after you’ve started working with a new business
By asking yourself these key questions right from the start of a project, and continuing to ask them as the relationship evolves, you’ll very soon start to see the clients that are making your life easier, and those that are dragging down the agency’s bottom line.
So what makes the perfect client for your agency? The specifics will be different for every agency owner, but there are some core attributes that every good client needs if they’re going to be an asset to your agency, and you’re going to be of value to their business.
Time and labour will be two of your biggest concerns as an agency owner. And bad clients are a drain on both of these resources.
So you’ve got to be proactive in tracking and reviewing your customer base to find the clients that are nibbling away at your time and resources – and when you do, being as direct as possible about bringing them to heel, or letting them go.
As we mentioned in a previous Bristol Media blog, measuring your agency’s performance is incredibly important. By tagging the time spent, costs incurred and revenue made on each and every client, over time you’ll begin to see the trends and patterns that show you where your gold-class customers lie and where the silt that’s weighing you down is located.
KPIs to track will include:
Include these KPIs in your regular reporting and you’ve got a constant check on which clients are gobbling up your precious time and which ones are bringing in the revenues and end profits you need to meet your goals and keep on expanding.
Here at FD Works our team of accountants and business advisors are here to help you understand the numbers behind your business and empower you to make bold decisions. Our team of experts work with clients in Bristol, Bath and the wider South West.
Get in touch and we’ll help you get in control of your client selection process.Call us for a chat