Freedom Blog

Friday, December 30, 2011

Reboot Your Business!®| The Freedom Coach

25 Mistakes To Avoid, #2

Written by Steven Griggs |

Excerpted from my coming book: “REBOOT YOUR BUSINESS! How to Restructure Your Business to Survive and Thrive in Today’s New Economy”

2.     Not Knowing Who Your Ideal Customers Are

Do you really know who your ideal customer is? Not focusing on the right niche in the marketplace is a critical mistake. You need to be absolutely clear about who you are marketing to.

There are three groups.  First came the Baby Boomers, then Generation X, then Generation Y.  Gen X is very internet savvy but may be short of money. Gen Y is also internet savvy and they may have more money but they tend to be thriftier.  Baby Boomers have the most money but vary in their proficiency with the internet. 

Actually, opinions on the foregoing vary, it depends on which books you read, but you get the idea.  Do your homework. 

Do market research to make absolutely sure your target market is viable, that they want your product(s) and have the ability to purchase them, and that you understand the best ways to reach them.

One critical mistake that we tend to make is not knowing when to ditch unprofitable customers. These are the ones whom are high maintenance, cranky, demanding or wasters of your time….or all of the above. If you have dealings with too many of these types, beware, the costs outweigh the benefits.  Add new clients to your base, then slowly rid yourself of the problem ones. 

TIP: Never let one or two customers constitute more than 30% of your revenues. This is dangerous. It creates too much dependence and could lead to your having to cater to them too much, to them becoming “problem” customers, as mentioned above (more on this later). 

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