Is Your Business Doing too Much for too Few Clients

By Darren Cherry

We're all guilty of it from time to time. Our Client asks us to do something outside our core business and in many cases, outside our Zone of Genius. Not only do we say yes, but we will likely charge them a fee lower than they are currently paying in the marketplace when we should be charging a premium. 

We all make mistakes with our business at some point. But if you feel that your business is doing too much for too few clients, then something needs to change. 

When Should You Be Wary of Core Focus Creep?
It is common knowledge that acquiring more business from existing clients is far less expensive than acquiring business from new customers. But even this business fact has its practical limits. 

On the positive sign, you have a faster, less expensive path to sales growth. You may even have a more loyal customer base. However, too much of a good thing can prove problematic; here are a few caution signs:

✅ A limited amount of your resources can execute the work (creates bottlenecks)
✅ Your efficiency slips and cost begins to creep
✅ Your company's success becomes more dependent on the customer 
✅ The growth of your core products begins to decline

The expanding level of offerings creates an environment where your team is spending time learning how to deliver new items. This takes away from the time they have to innovate your current offer and expand your customer base.


How to Avoid Service or Product Creep
Generally speaking, the easiest way to avoid a creep in your portfolio is to "Just Say No." For those who believe the opportunity is too good to pass up, it would help to evaluate new items using the pre-established criteria. 

Some items to consider:
• How easily can staff be trained to perform work?
• How complementary is the new item to the core [sellable to existing customers]?
• Is the profitability higher than the existing portfolio?

Typically, a hard look at the request will result in a no with pre-defined criteria.