01/ 31/ 2005
by Jeffrey Moses
Once you've started your new company, put ink on all the documents, moved into your new space, installed your equipment and put your sign on the door, there's one all-important next step: getting your first customers.
Rather than just take out an ad in the local paper and wait, the following hands-on strategies can help bring in your first workâand your first paychecks.
Contact all companies and individuals with whom you have done business in the past. This could include former employers, previous co-workers or former customers. Since you know these people, you may be able to offer them specific benefits from using your services. You may be familiar with their operations, the levels of quality they demand and their special needs. If you can offer a price advantage, work more quickly or be more flexible, you can provide them a reason for doing immediate business with you.
Work your personal list! Contact your circle of friends and social connections. If you're a member of a local club, a church or other religious organization, a fraternity or a sorority, or other associations, you should be able to make direct contact with people who can either give you business or send business your way.
When you contact individuals in either of the previous two categories, always ask for referrals. These people trust you because they know you and may be able to recommend you wholeheartedly to others. When possible, ask your contacts to call referrals directly and pave the way for your call. Also, consider offering a referral fee to those who connect you with a customer. Usually, 10 percent is the most appropriate referral fee. Five percent may not be motivating, and 15 percent or more will drain too much from your income.
It's a little-known fact that the best source for new customers may be from your competition. Call larger firms in your industry and ask if they have extra work they can outsource to you. Make sure that your hourly charges allow them to adequately mark-up your invoices so they can make money on the work. Often a new company can establish ongoing relations with established companies, assuming that the new company does great work, meets deadlines, maintains confidentiality and charges the right amount for the work done.
Trade-association contacts can be a ready source of new business. Use these contacts to network, asking for referrals with every call you make.
Going door-to-door isn't the best idea these days (people are reluctant to enter into conversation with strangers approaching unannounced), but you can use the same principle by approaching individuals within companies or organizations you've done business with in the past. These include, among many others, your banker, your doctor, your dentist, your attorney, your accountant, your dry cleaner and your pharmacist.
Neighbors are approachable, and often can give you business or refer to you others who can. Call before dropping in. Describe your new business, and see if you can address any needs your neighbors have.
When advertising in local media, you'll probably have quicker results by offering special discounts for new customers. But be creative. The offer of a free one-hour consultation, for example, may not be as enticing as another offer because everyone gives free consultations these days.
As long as you're short on customers, you'll have the time to market. Spend this time wisely; don't just read the newspaper or watch television. Start your research into your market so that you know who you're competing against and what you'll need to do to come out on top.
