American Business Brokers & Advisors - June 2019

Make a Positive Impact

3 Strategies for Genuine Community Involvement Even if most of your clients are located in other parts of the globe, the place your business calls home is a huge part of your identity. When a company makes a point to get involved locally, it’s doing more than making new connections and getting its brand out there — it’s also making a positive impact on the place it calls home.

a gala that raises money for a children’s hospital. Supporting charities demonstrates your values and attracts the kinds of customers who share them. Join a Parade This sounds unconventional, but sometimes it pays to think outside the box. Most towns put on a Fourth of July parade in the summer, so why not join in? Building a float could be a great team-building exercise, and a lot of people will turn up and see your mobile advertisement in the parade. Being in the parade shows that you’re part of the community, and when you top it all off by tossing candy to the kids, you’ll really make an impact. Work With Local Schools Your company could donate school supplies or even sponsor a program. Art and music programs are often the first to suffer from budget cuts, so support from a local business could make a huge difference. Donate art supplies to the classroom, sponsor high school theater productions, or offer scholarships to help young musicians pay for new instruments. Keep the arts alive by helping the kids in your community do what they love. These suggestions require time and resources to pull off, but making the effort can transform your company from just another business in a sea of many to a pillar in your community.

Most companies experience a slowdown in the summer. Here are some strategies to take advantage of that lull and create a plan for your business to get involved in the community and be a good neighbor. Support a Local Charity Every town boasts its share of charities and nonprofits looking to make a difference. Find a cause you believe in, then help out. This could mean donating a portion of your revenue to a local women’s shelter, volunteering as a company at the soup kitchen, or sponsoring

Are You Chasing the Wrong Customer?

THE MOST PROFITABLE TYPE OF CUSTOMER

When a business spends money on marketing or advertising, they want to ensure they are getting their money’s worth. It would be great if we could track every marketing and advertising dollar we spend to make sure we get a good return on our investment — but it doesn’t always work that way. What I have found out over the years is many businesses spend too much money chasing the wrong customer. There are three types of customers: past customers, who we used to do business with; present customers, who we do business with now; and future customers, with whom we have not yet done business. It’s easy to think attracting new customers is the best way to make a profit when really the opposite is true. A business’ most profitable customers are their present customers. They’re already spending money at your business, and you don’t need to spend a lot of marketing and advertising money on them. You just need to ask them what you can do for them, and what they would like to buy.

maybe reintroduce them to new products or services that have become available since they left. This is not a particularly hard sell — it’s just a matter of reaching out and asking. The most expensive customer is the new customer. We have to find them and then convince them to do business with us. People don’t like to change, which makes it hard to convince new customers to do business with us. We may have to offer discounts, or some other compelling bonus, to get their attention. Don’t fall into the trap of chasing the wrong customer. Instead, invest your time and money where you can get the biggest bang for your buck: customers who make your business profitable today.

The next best customers to market to are past customers. We don’t have to spend a lot of money and effort educating them, except to

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