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Business owners: Are you missing this simple growth strategy?
Andrew Stubbs • Mar 09, 2019

How highly do you value leads in your business? 

For any small or medium business, leads should be the most highly prized currency - to be consistently sought and converted. 

Without a steady flow of new opportunities, how do you grow? How do you take things to the next level? How do you prepare for the future? 

There is one simple lead generation system that EVERY single business should be using and MANY are not - even though it's absolutely FREE. 

It is practically guaranteed to bring in a steady flow of opportunities if you design a system around it; yet most businesses either treat it as an afterthought or let it take care of itself completely. 

LinkedIn? Facebook? Events? Webinars? 

No. We're talking about client referrals

The low-hanging fruit  

Many business owners admit that they get most of their clients by "word-of-mouth". But ask them what system they use and they stare back blankly. 

At the same time, they waste marketing dollars on campaigns (SEO, social media, paid search) designed to generate leads but which often don't live up to expectations.

The truth is that they could be MUCH more effective in tapping into the large pool of warm leads right there under their noses! 

Client referrals really are the low-hanging fruit when it comes to generating leads. Why spend more of your valuable resources to climb the ladder and pick the apples at the top of the tree if there are plenty of crisp and tasty ones lower down? It makes no sense. 

To start realising the potential of client referrals, get smarter about designing a system around them. It should not be a matter of hope. 

By following the nine steps below, you can implement a system that allows you to pick the lowest- hanging fruit much easier… 

Your 9-step lead referral system  

  1. Get clear on your value proposition  

What are you able to provide that most other businesses cannot? 

For your client referral system to work in the long run, you need to understand your key selling points: why you're unique. Peel back the 'layers' of your business and define what makes you special. 

Keep this in mind, as you will use it to 'sell' the idea of your business to existing clients and to new ones. 

Ask yourself: Why would businesses refer their clients to me rather than to one of the many thousands of businesses out there?  

  1. Trim your existing client list?  

This step may seem a little odd. But many business owners are busy looking after low-value or 'problem' clients that result in limited time to properly serve higher value clients - or to take on new business. 

If you are "flat out" looking after problem clients who bring little value to your business, find a way to trim them so that you can focus on more profitable new business: perhaps recommend them to another business that can better serve their needs? You may even be able to earn a referral fee from it! 

  1. Start by asking the question to your closest clients  

The best way to get referrals is to simply ask the question. Yet this can be a perceived obstacle for some business owners. They feel awkward in asking for business and prefer to appear "flat chat" all the time. 

There's no harm in being busy but - as per point two above - what are you busy with ? Profitable business or fire-fighting? The day you stop asking for new business is the day your firm stops growing. 

If you have invested time in building relationships with your most valued clients, there is no reason why you cannot approach them by email or in the next meeting for a couple of names of businesses owners who would benefit from the unique service you provide (defined in point 1 above). 

Start with the real low-hanging fruit to gain practice and confidence for asking the rest of your database. 

  1. Segment your database: Ask the right question in the right way  

Once you are comfortable with asking the question, you need to systemise it so that it becomes part of your process of doing business. 

You should consistently ask the question of both existing and new clients - and even of prospects. 

For instance, with a prospect who has downloaded a free eBook or received a free business health check-up and found it useful, is it possible that they know others who would find these resources useful? 

Most likely there would be: so your lead referral system can include those who are not yet clients of yours. 

If you have not segmented your database, you will need to identify clients by their value, how long they have been with you, or what stage of the sales funnel they have reached. 

You cannot shape your questions to a client of 10 years in the same way as you would ask a client of three weeks or a prospect who is not yet with you. 

  1. Set expectations from day one  

Even before a prospect becomes a client, start setting the expectation for referrals. 

Make it clear when they sign up: should they find your services of as much value as you would expect (just like all the other clients you show them via testimonials), you will request at least two referrals from them. 

You can even specify "after the job is done", "after one month", or "after six months" (if they become an ongoing client). 

  1. Deliver on the expectation  

After you've set the expectation and the time comes around, make sure you ask for the referrals as promised. 

Automate reminders for this part of the process. 

Decide whether you will ask only for contact details (email address, phone number) or a face-to-face introduction. A meeting may be possible if there is an urgent need for your services. 

If there is no immediate need, request the details of businesses who may appreciate receiving your newsletter. You can include them in your mailing list or refer blog posts to them to help build the relationship over time. 

  1. Expand your horizons  

Lead referral is not confined to your clients. As a business owner, you probably have a vast network of professional service experts such as accountants, lawyers, financial planners, banking contacts, etc. 

Think a little laterally here and include these professionals in your referral system - start expanding beyond your immediate circle. 

  1. Get creative

Get creative with your ongoing referral system. Include a line in your email signature asking clients or prospects if they know anyone who would benefit from the value you provide (defined in Step 1, remember!) 

Alternatively arrange special events that provide clients with value adds - and ask them to bring two business associates for free. 

  1. Show your appreciation  

Whenever you receive a referred lead, don't forget to thank the referrer - whether or not it results in business for you. 

The fact that they have trusted you enough to refer one or more of their valued network to you is an excellent sign that you are doing the right things. 

Show that you appreciate the relationship - a verbal or emailed 'thank you' may be enough. Or you may like to take it a step further and send a card or gift. 

What could this look like for your business?  

The maths on client referrals is as simple as it is eye-opening. 

Say a business has 100 clients. And say that each client is worth around $5,000 per year to you. 

Conservatively, imagine that one in three of these clients are able to refer two other businesses to you per year - and you have a 50% conversion rate on the referrals.

Before you start your referral program you have:  

100 clients x $5,000 = $500,000 revenue  

After the first year of your referral program you have:  

The original 100 clients x $5,000 = $500,000 revenue  

+  

(100 x 33%) = 33 clients who referred x 2 referrals each = 66 referrals x 50% conversion rate = 33 new clients x $5000 each = $165,000 in new revenue.  

TOTAL REVENUE NOW: $665,000 (33% growth)  

Then imagine this compounded over the years. It's excellent growth for your business just from referrals. Plus, you have all your other marketing activities bringing in other leads. 

Few businesses can afford to let such an opportunity pass as they build their futures.  

Implement the nine steps above and you will be well on the road to securing a steady flow of leads to your business from your existing client base and your prospects.

By Andrew Stubbs 05 Jun, 2022
Here's some good news if your business sends invoices to business or government customers. Peppol* is on its way. (That's Peppol, not Peppa .) Ever had this conversation in your business? You or one of your team: "Hello, I'm calling to follow up the invoice we emailed to you last month. It hasn't been paid yet." Customer: "Really? We didn't receive that invoice?" In addition to the time and expense of following up, the cash flow delays create stress for you and they hurt your business. Thankfully, the adoption of Peppol will solve this problem. What is Peppol? Peppol is an obscure acronym for Pan-European Public Procurement On-Line. What's more important than what it stands for, is what it enables. Peppol is an international 'eProcurement' framework for the electronic exchange of information. It creates a standard approach for governments and businesses to structure and exchange information such as invoices and other documents. What Peppol means for you and your business Peppol makes electronic ordering, invoicing and shipping between governments and private companies faster, simpler and more secure. This means your business will get paid faster when dealing with government and larger businesses. In 2019, Australia and New Zealand adopted this platform for e-invoicing which, when implemented, will make 'we never received your invoice' issues virtually impossible. The new e-invoicing system is more secure than email and provides many other benefits. Which countries are adopting Peppol? There are currently 40 OpenPeppol member countries: 32 countries in Europe plus Australia, New Zealand, USA, Canada, China, Japan, Mexico and Singapore. Each country has a Peppol authority. For example, in Australia that's the Australian Tax Office (ATO). Is Peppol already in use? Yes it is. For example, the SuperStream system in Australia-which many businesses are currently using to automate the payment of employee superannuation contributions-is based on the Peppol protocol. How does e-invoicing work? The system connects the accounting systems of all businesses and government departments via the secure Peppol network.  Suppliers generate sales invoices in their accounting systems which are sent to Peppol.
By Andrew Stubbs 04 May, 2022
If you're a director of an Australian company-or you plan to be-take 5 minutes now to read this article. All existing directors (and intending directors) of Australian companies need to be aware that the Australian Government has announced the introduction of a new mandatory Director Identification Number (DIN) system. (You'll notice the term director ID is also used for DIN.) This system is the initial step in the Modernising Business Registry (MBR) Program which has been established under the Treasury Laws Amendment Act which was legislated by the Australian Government in 2020. More information on the MBR program can be found here . What is the DIN system trying to achieve? The DIN aims to provide accountability and traceability of a director's relationships over time, across all companies and will provide information on a director's involvement in what may be repeated unlawful activity, including illegal phoenix activity. It should also solve the problem of false or fraudulent director identities. What are the key features? It is mandatory for all directors, foreign directors and alternate directors of Australian companies to hold a DIN. The DIN is a unique 15 digit number. The first 3 digits will be 036 which is the identifier for Australia. The last digit is a check digit to help with accuracy when quoting your DIN. Like your tax file number, you will only be issued with one DIN which you will hold for life - even if you cease acting as a director for any period. To obtain a DIN, you will need to prove your identity so you will not be able to hold multiple DINs. Other office holders (e.g. company secretaries) are not required to register. The director is responsible for updating the DIN records for any changes in personal information within 7 days of the change. The director must apply personally. The process cannot be completed by your accountant, lawyer, spouse or executive assistant. There are significant penalties for non-compliance. How do you apply for a DIN? Directors have 3 options for applying. You can apply online from 1 November 2021. To use this method, you must first establish your identity via myGovID (an app you download on your smart device which is different from myGov). Once set up, your myGovID will make accessing a wide range of government services easier. (It's not just for your DIN application). For information on how to set up a myGovID please go to https://www.mygovid.gov.au/set-up During the DIN application process, you will need additional information such as your tax file number (TFN) and your residential address as per ATO records. It would also be advisable to have other personal details such as bank account details, medicare card or a recent income tax assessment available in case these are required. You can also apply by phone ( 13 62 50 ). During the call, the operator will ask for the identity documents you would have used to obtain your myGovID (passport and driver licence) as well as the additional information listed above. These details will be confirmed with the records held on existing government databases and, assuming the details agree, your DIN will be issued. Or you can apply by mail, but this is not recommended because the process for doing this seems vague ("Write to us") which means you can probably expect a lengthy process of certifying documents and coping with the vagaries of the postal system. One of the other two methods would be a better choice. When will you need to apply for a DIN? Transitional arrangements will allow directors to become familiar with the new requirement. When you need to have a director ID will depend on when you were appointed as a director.
By Andrew Stubbs 07 Apr, 2022
If you're a small business owner, you're always on the lookout for better ways to go about routine tasks to boost growth and underpin reliability. So, yes, you have the will; now, what are the ways? What are those consistent routines you can instill that will have the most benefits? This article looks at the top 6 things you can do to help your business thrive. We're going to cover finances, goals, marketing, technology and you ! So, let's take a look… 1. Your finances are a scorecard … and a predictor Boil it all down and dollars in the bank are the report card on the health of your business operations. Surprising then that so many people don't really pay much attention to how much they've earned, nor how much they're likely to earn. As much as it might feel like a chore, reviewing your sales and financial projections and then using them to ascertain if you need business financing is a discipline worth cultivating . If you suspect that your cash flow is precarious, you should be checking out your options today. First metric to check: your credit score. If it is too low, you need to take steps to shore it up. Next, check in with your bank or finance broker about what loans are available. 2. Goal setting, goal achieving, goal celebrating So, if you're using current and future dollars in the bank to keep score, the next thing is to do something about it. This is where goal setting comes in. If thoughtfully set and persistently pursued, goals help you orientate your willpower and your energy at each moment of the business day. This is the hidden power of goals: giving you a good sense of direction and a way to channel your instincts towards wise objectives. Constantly checking in with your goals makes them a benchmarking tool to keep your business pointed in the right direction. Yes, just having goals helps. Actually achieving a goal helps too, of course! 3. Increasing the impact of your marketing Marketing is not magic. It is not a mystery. It is not an art. However, many less-than-reputable marketers will try to claim that it is. They do so to gain wiggle room to pad their invoices and cover up their lack of skill. What this means is that it is easy to waste money on ineffective marketing. The good news is that there are many low-budget marketing strategies that actually work to help grow your brand and reputation. Scout around on the internet and choose one or two new tactics. Deploy them and test them. If they work, double down. If they don't, try something else. If you can't tell if they're working, also try something else. Social media is the obvious starting place for these low-stakes experiments and the old classics of LinkedIn, Facebook and Twitter are where to trial them. 4. Bringing your business up to date technologically The ability of modern productivity and project-management tools to give small players the same capabilities as the big boys simply cannot be ignored. Harness them properly and they'll let your small businesses operate with the same productivity as the titans of your sector. And, if your business is in the services sector, the increased controls that business technologies can yield also lets you be highly agile - that's something the big boys can't do. So, ask yourself: are you taking full advantage of what's out there? Don't worry, the answer to this question is always 'no' - the field is simply moving too fast for anyone to be able to take full advantage. However, if you have a realistic view of your needs, then you have a yardstick to help assess all the solutions out there. When you know what you need the technology to do, then you can wisely choose what hardware, software, platforms and techniques to introduce. 5. SEO has changed and it is going to change again Google - indeed all platforms offering broad search functions, from Youtube to Facebook - are constantly altering and optimising their algorithms. This, in turn, means SEO practice must constantly evolve to keep pace. So, if your SEO approach hasn't been overhauled in a few years, the time has come to give it some attention. Do a review of best practice and score how you cater to SEO in your online presences. Yet, because the underlying concept of SEO has not changed, the corrective actions you need to take may not be major. Then again, they might be! It is better to know unpleasant news sooner than outright bad news later. 6. Download the right new apps The remote work trend has gone mega and this means mobile productivity apps are very much of-the-moment. See, you can get a surprising amount done with just your phone and tablet. And apps are how it all happens … plus connectivity and a full battery, of course! Usually, apps are best for keeping an eye on things, boosting effectiveness on the "busy" tasks and enabling you to give your stamp of approval to work that needs your say-so to progress. In general, these are not value-adding tasks, just the value-neutral tasks that get in the way of the value-adding tasks. Now, there is no end of apps out there. So, as always, don't bother looking until you have some idea of what you need. 7. You are the ultimate business tool Health is the single most important aspect to consider for anyone running a business. It's the non-negotiable factor that governs everything else you are capable of. To adapt a quote from Arnold Schwarzenegger, being fit and healthy is "a status symbol. It reflects you worked hard for it; no money can buy it. You cannot borrow it, you cannot inherit it, you cannot steal it". This means that you must get enough sleep every night (most people need 7 hours or more). This means a healthy diet must become your preferred way of eating. This means that you should exercise every single day (except when sick). This means you must give your mind a rest too . Meditation isn't some mystic monkish thing, it's simply the practice of letting your thoughts come and go while you - the observer - stay peaceful and undisturbed by them. Think of it like this, meditating is mediating your mind. Take stock, choose wisely, make small steps in the right direction In this article, we've talked about some improvements you can make to what you're already doing. You don't have to do all of these at once. Start with the one that seems easiest and then stick with it to see if it works. Remember, it's not always about big changes. Often, you can make major improvements in outcome by making small changes to input. Doing the little things better. So take stock, choose wisely and be sure to make those small steps in the right direction for success today, tomorrow and the next day.
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