I love real stories of smart business decisions that lead to more profit and relief for the owners of agencies. One of these stories came up the other day when I was coaching with some great partners of an agency.
Last year, they made an intentional decision to let go of a lot of smaller clients that were not profitable. As usual, fear was a factor in making the decision - "are we getting rid of revenue?" "can we replace them?" The partners helped each other through the emotional decision to prune clients. During the coaching session, we were comparing one quarter of financial activity with the most recent quarter of financial activity in their agency. And even though they had less clients this quarter than last quarter, they made more money. The were doing less work with less clients, and they feel less stressed and overwhelmed.
This is a common phenomenon I see in coaching - that pruning often leads to growth. Of course, you can prune too deep, and too fast, and this could damage your cash flow. But when you intuitively know that you are serving one wrong client, pruning that client will often create space in your calendar, your mind, and your abilities to go find a better client to replace that wrong client. I recommend every agency find one wrong client to prune and just experiment with what they can do for your future growth.
Here are some new things my client is doing because of their decision to prune:
- learning new tools that can add more value to existing clients
- demonstrating the confidence to sell their services for higher prices
- selling in a new way to larger clients that can afford their prices
Are you ready for less clients and more money? It's a real thing! Try pruning as a growth strategy and see what happens.comments powered by Disqus