That’s a good solid strategy. I’ve seen it work very well (multi-million dollar well!). It takes some time to build, but the things you build this way are rock solid.

The smalle things (in this case sales) ALWAYS add up in the long run. My brother and I, when we get our business up and running, are concentrating on the community first and small sales…work our way up the ladder

-Gregg

Thanks for sharing that story! I’ve seen a couple companies start by going after the “up and down the street” business. Just having that growing visibility got them the attention of ever larger customers. It works. And it very works well.

Your caveat about not getting paid for a large contract is also an important one. It can kill a new company. When I was in the bottled water business we got hung out to dry for 7 figures … luckily we recouped about 70 cents on the dollar, but a lot of other companies involved in the mess got little or nothing.

No contract is worth the paper it’s printed on. It’s only worth the integrity of the people signing it.

Hey Robin,

That’s a nice percentage of repeat business. All the small sales you have give you a good diversified client base. That’s good. There’s nothing worse than having all your eggs in one basket … and then tripping.

Follow up service is so important. A lot of companies don’t seem to think so … which to me is a huge opportunity.

Big sales can make you or break you or both. If you are neglecting the smaller sales you are not doing the right thing. The way I look at it in my business, the smaller sales keep me in business and the bigger ones are a bonus.

Follow up a sale with quality service and your clients will keep you in business. Each year about 40% of my business comes from existing clients. Good post, I liked what Steve had to say too.

Take care and Cheers.

This is a great post and right on the money (no pun intended).

I incorporated my consulting practice in March of 1977. To get some buzz going, I spoke at every service club meeting I could find. My first clients were small business owners as a result. It was hard work, a lot of “no’s”, but bit by bit they started talking with their friends and I began doing work with Fortune 500 companies.

Thirty years later most of my clients, globally, are large corporations. BUT…the numbers show that small business owners still contribute a significant amount of revenue and require less admin time–as well as a much shorter sales process.

For a while I ignored the small business market, believing that the bigger money coming in from large companies was the only way to go. I was very, very wrong. And a lot of the reason has to do with the momentum that you mention. When you aren’t out doing your thing every day and waiting for the big fish, you lose your edge and the Word of Mouth buzz, even after many years of success.

BTW: In 30 years, I have only been stiffed once on a contract. It was for more than a million dollars. I had brought in some of the best consultants known to do some of the specialized work and still paid them as a matter of honor and integrity. But here’s what I learned:

1. Just because someone signs a contract doesn’t mean they’ll live up to it, especially if they have an in-house legal team (after the fact I discovered that this had happened before).

2. Don’t get blinded by a big score. I saw the money and ignored my intuition and discernment which was telling me all along that something wasn’t quite right. So I paid the price.

Whether you are starting out or a seasoned businessperson, lots of small sales can make a difference as long as you watch the cost of sales.

If you aren’t making a sale, you aren’t in business.

Yep, starting small and “testing the waters” is a great way to make sure your idea is gonna fly before you get too far into it.

Nobody buying…means you don’t know that yet!