How to Lose 80% of Your Business

Originally, I was thinking about this title. 

How to Lose Your Stake Holders, Best Customers and Evangelists

but I realized that some business owners don’t know that they have Stake Holders, Best Customers and Evangelists and they don’t know how important they can be.

So, what’s a Stake Holder? Look at this diagram. That’s a lot of people that depend on you doing a good job. Let’s focus on Customers. Your customers depend on you delivering, staying in business. You may be part of their offering. Your service may keep them up and running. Some of your customers invest their faith in you.

Who are your Best Customers? Are they the ones that buy the most from you? Are they the ones that pay you on time? Are they the ones that don’t complain? That appreciate your efforts? That thank you for being you? Have you thought about who your Best Customers are and what makes them best?

Evangelists: Compare this definition to some of these. Notice the similarities in the biblical and the business definitions. Religion, speading the word, way of life, love the cause, good news. Evangelists use, love and tell the world about what you do for them.

Have you heard of the 80/20 Rule? So, my simple explanation is that if you look at any business, club, association, or any other organization, 80% of the good will come from 20% of the members. 80% of your business will come from 20% of your customers. By the same token, 80% of your problems will come from 20% of your customers. (I try not to sell that 20%. and focus on the good 20%.) In any referral group, 80% of the referrals will be passed by 20% of the members. They get it. They believe. They make it happen. I know who my evangelists are. They believe in me. They do anything that I ask. They work on my behalf without me asking. All associations, whether they’re a chamber of commerce, charitable non-profit, or industry or trade group has members and donors that pay dues and make donations. Some pay big dues or make big donations. They’re important. Some members donate their time. They evangelize. They spread the word. They believe in the cause. They find new members and new donors.

So, you want a great business? Focus on the 20% that bring you the 80%.

You want to go out of business? Focus on the 80% that bring you the 20% and watch the Stake Holders, Best Customers and Evangelists go to your competition.

Advertisements

Care to share what you think?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s