Do You Really Need New Clients?

I found this blog post and wanted to share it with you. It is a very simple question, but one we all should answer for ourselves. If we want to grow our company, do we need new clients or is providing more services to existing clients the key to growth?

Do You Really Need New Clients?

By Randy Shattuck

“Can you not realize your growth goals without adding new clients?”

Your Best New Client is an Old Client

I’m concerned that many PS executives are obfuscating, and potentially substituting, “client acquisition” with “revenue generation.” To me, the two are not one and the same. New clients often come with high risk and may not remain good clients over time. New clients are far more likely, in my experience, to negatively impact profitability and create management headaches. More often than not, existing clients are the best source of quick new revenue.

There is wisdom in the proverb that reads: “It’s easier to sell something new to an existing client than it is to sell an existing service to a new client.” Numerous research studies have shown that the cost of acquiring new clients is exorbitantly high and full of risk.

The goal of this exercise is to rationalize the requirements for a new service that you can offer a substantial number of your clients, all while making a solid profit.

Read the full article here. It gives great advice about growing your existing business by servicing current clients and avoiding the cost of acquiring new clients.