Here’s the reality: not all clients are a good fit for your business.
Sure, having a steady clientele is essential for any entrepreneur, but landing “ideal” clients can be tricky. While it can be tempting to cast a wide net to increase the number of potential clients for your business, it’s best to narrow your search and find the clients whose needs align with the products or services you provide.
I’ve come to realise this while spending sleepless nights poring over potential clients.
After I make my pitch to a potential client and don’t back from them for a few days, I can’t help but think, “What did I do wrong?” I even go over it with my wife, asking, “Do you think I talk too much?” regardless of how well the pitch went.
As always, my wife has great insight into these things. “Not everybody’s like you,” she’ll say. “Not everybody sends an email or a text response within minutes of being contacted.”
True enough. I do eventually get a response from these potential clients days, weeks or even months later after we’ve had our call.
As a lawyer, I’m used to being in control. Running a law firm, however, means that I also have to be an entrepreneur – sometimes, I have no control and I just have to wait to hear from potential clients.
On the brighter side, you do develop a sense for weeding out decent clients from those who are just out there to waste your time as you start to build a brand for yourself.
How do you attract the right type of clients for your business then? I recently featured on The Josh Gerben Show, a podcast run by Josh Gerben, a fellow trade mark lawyer based in the United States. Here are some tips I shared during our session. (You can also listen to the podcast here!)
-
Define your ‘red flags.’
To avoid clients that are not a good fit for your business, you need to be aware of certain signs like missed payments, demanding extra work from you without paying a fair price, and changing the guidelines set between you. These signs all point to a client that will take advantage of you.
I’ve slowly started to get to the point where I’m not going to undercut myself, my services or my price just to bring in or keep a client. When you’re a business owner, you’ll realise your time is far too precious for this.
If you’ve got a problem client who has been questioning your fees from Day 1, the chances are they’ll complain when you send that invoice and this will end up being an absolute headache for you and your team.
-
Earn referrals.
Referrals are one of the best ways to attract high quality clients. To maximise referrals, focus on your best clients – those who have worked with you for a long time and really trust you.
Nowadays, I’m pretty set on what I would charge for certain pieces of work. I always say, I will never lose a client over $500, for example, because Joe’s lawyer down the road is $500 cheaper. I always look at the long term and think, well, if I pick up this client to draft their terms and conditions, or their manufacturing or distributional supply agreement for $500, I build a relationship with them so they not only refer me to others, but also provide me with additional work going forward.
-
Know your worth.
If a client turns around and says, “Hey, Mark, we’ve been hunting for a few lawyers and you’re X thousand dollars, but this other lawyer will do it for $500.” You know what my response will be?
I wish you all the very best. I do a lot of litigation at our firm, and please do think of me when shit hits the fan because I will help you.
As a business owner, it’s important to protect your price points while also ensuring you are aligned with your client. If not, it will just be a problem in the long run because they are not in tune with what you need to push your business forward.
It’s especially difficult with legal services because some people think the fees are too high. Realistically, however, with the amount of time that goes into what we do, we could be charging 4 to 5 times what we should have originally charged, but we choose not to. For businesses, if you lose clients over this, then I guarantee they are not the ones you want to keep.
Instead, focus on clients who appreciate the value of your products and services. It will take time and practice, but if you pay attention to such clients, your business will benefit.
The best clients are not pursued, rather, they are attracted. When you have a great business and provide amazing products or services, your reputation precedes you, and client acquisition will be a breeze.
Sign up for our newsletter to stay informed about legal news, business trends and more. For help with legal matters and requirements, contact us here.
