WHO IS YOUR IDEAL CLIENT OR CUSTOMER?

If you know me, you know that I spend a significant amount of time networking and building relationships with other professionals. I find that the most fun and rewarding part of these efforts is connecting people who can potentially do business together. So inevitably, I always ask, “Who is your ideal client or customer?” In response to this question, I have heard all sorts of answers, from general responses like “anyone who will buy my product” to the very specific “high net-worth families in their 50s who are approaching retirement and need comprehensive financial planning.” As a business coach, specifically knowing your ideal client is the way to go because it allows you to narrow your focus on sales and business development. Plus, especially in a service-based business, such as mine, it helps referral sources identify real opportunities for you.

Real Case Study

Let me lead by example - “Steve, who is your ideal client or customer?”

Before answering this question, let me first discuss my process for reaching the answer. First, I look at the basic demographics of my ideal client. Because of the cost, method, and required commitments, the Scaling Up method is not the best fit for all organizations. I have found that demographically speaking, my ideal client should have at a minimum three members on the Executive Team and at least $5-100 million in annual revenue.

After I established these demographic requirements, I analyzed the type of business that would be my ideal client. I look for the following characteristics in organizations that want to scale their business:

• The head of the company is willing and able to drive the initiative to grow and scale.
• Everyone on the leadership team is willing to spend 2-5 hours a week working on the business.
• An established company with a marketable business model, product, or service.
• Clients who are open to learning new strategies and methods, and implementing changes to improve their business.
• Commitment in terms of both time and money. Scaling a business requires both to be successful.
• Ideal clients should have growth targets for revenue, market share, and reach.
• The business should have a reasonably solid operational foundation in order to optimize and streamline processes to handle growth.
• Ideally, they are stuck somewhere and have some barriers to growth or challenges that I can help them effectively address.
• Honest, ethical, and transparent people. 

 My Answer

So, if I was at a networking event and asked, “Who is your ideal client or customer?”, I would say the following:

A business with over $5 million in annual revenue with at least 3 members of their Executive Team. The business may be facing some challenges and pain points but the leaders, while stuck in overcoming these challenges, are committed to addressing them and taking the business to new heights. They just need somebody who has a proven track record to help guide them and will hold them accountable.

Less Than Ideal

Now, do all of us sometimes take on less-than-ideal clients or customers? Sure, we do. But the point is to get as close to ideal as possible. However, defining your ideal client will help you focus, allocate resources, and drive referrals. 

One more thought - one of the first things I do with clients is to define their core values. While a discussion on core values could last hours, the point here is that sometimes it’s best to reject a potential client or customer, ideal or not, if they are not aligned with your core values. For example, one of a company’s core values is producing high-quality, premium products or services that come with a higher price point. However, the customer wants the company to compromise on the quality of its offerings to reduce costs. Would you want a customer that does not honor your core values, diminished your product, and dilutes your brand? Probably not.

The Takeaway

If you have not already done so, take some time to identify and define your ideal client or customer. Be specific as possible, and tell it to your network! I am here to help - just reach out.