A lot of businesses develop products with certain clients in mind. Through a loss of focus, early successes and/or lack of controls and desperation they can end up servicing clients who will not benefit the most from their value proposition or less than ideal clients.
Identifying your ideal client is about much more than just identifying the people with the ability to pay or whose need gets satisfied the most by your value proposition. It is identifying the client who is most likely to complete the sale and who exhibits the right kind of behaviour for the cash flow in your business. The ability and will to pay are bare minimum requirements for a client to be a Most Wanted or Most Valued customer. ,I often find many clients who keep providing their services to clients who don’t pay them or clients that keep them helluva busy for little to no money. This is when you actually finance your clients business by giving them value, goods and services prior to them paying you. When these guys don’t pay it often is the case that not enough controls were put in place to:
- Verify how well these clients pay their other suppliers;
- Research who they are. Who owns the business?;
- The schedule of goods and services they offer;