Running a business

Running a Business: Doing business with the right customers

Business sense says you must find customers who bring you more business and discourage those who make you less profit (but involve the same amount of overheads and time).


Go after bigger orders. Find customers who will buy in bulk. Find out which product/s are bringing you the most business. Let go of small customers (with tact and respect) if you are too busy handling the big orders.


Three main kinds of customer problems


1. Customer who always pay late: Rethink the details of your contract. Rethink how long you can keep supplying (if customer is a frequent buyer). Rethink raising prices and fees.


2. Customers who will take advantage/abuse the relationships: Frequently returning purchases (ask them why) - Always complaining and demanding more (keep records of calls and solutions offered, provide documentation if they need help)


3. Customers who will stop buying suddenly: Get back to them, ask why and promise to act on their suggestions. Then get back them with updates.


Remember two rules about customers

- The Pareto rule: 20% of your customers will bring you 80% of your business. Find out who they are. Get in touch.

- Whatever happens, never lose your cool with your customer. Say 'thank you' often. Apologize and act promptly whenever the need arises.


Thank you for reading.
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