Always saying yes might not get your business where you want.
Hi y’all,
Welcome back to Busy Season, your guide to the hot takes, pro tips, and real stories sweeping the events industry.
Last week we touched on finding the sweet spot of the clients that bring in the most profit and the clients you enjoy working with. This week, let’s dive in deeper and talk about which clients you should say “no” to.
It’s easy to always say “yes” to every new inquiry, especially when you’re first starting out or business is slow.
But the clients you take on can really shape the outcome of your business. If you start executing events with clients that aren’t your ideal customer, those clients could refer others who aren’t ideal fits, and before you know it your business isn’t what you set out to be.
Of course, you shouldn’t be so rigid that your business can’t adapt to changing times. But if your clients are taking you away from what makes you profitable and brings you joy, something is off.
The trick is assessing if each project is ‘worth it’ to you and your business. There are the quantitative factors: Are you covering all your expenses (including employee salaries), plus a margin between 10%-40%?
Then there are the qualitative factors. Will the event enhance your portfolio or hurt it? Is it an event you’d be proud to put on your website?
Consider this:
- Who are the top 25% of your customers?
- Who are the bottom 25% of your customers?
- What if you took the time and energy you spend servicing the bottom 25% to land a handful more in the top 25%?
That bottom 25% may be bringing you down more than you think. It could be worth considering saying “no” to them in favor of others…just a thought!
See you next Tuesday,
Mallory Mullen
Goodshuffle
P.S. I’m putting on a webinar tomorrow, August 28th, with Lindsay Seel of Vivant Event Rentals. It’s all about when to say “no” to an event opportunity. If you’re interested in learning more about the topic or have specific questions, register or watch the recording here!
