Obtaining clients who you actually want
Thomas Libertiny President, Libertiny Group Growth Through Strategy www.LibertinyGroup.com
Š 2006 by www.mondolithic.com. Used by permission
Obtaining clients who you actually want
Agenda Growing through client acquisition Step 1: Analyzing your present clients—should you keep them? Step 2: How to bring in new clients—sources, timing, cost Step 3: Funding your growth Questions
Obtaining clients who you actually want
Step 1: Analyzing your present clients—should you keep them? Profitable clients Good clients who will be profitable Unprofitable clients
Unprofitable
Good clients
Obtaining clients who you actually want
Step 2:
How to bring in new clients—sources, timing, cost
Sources Special events (1 per year) Industry network events (4 per year) Participate
Monthly industry breakfasts (12 per year) Host them yourself
Volunteer work (12 per year) Referrals (12 events per year minimum) Clients, friends, family
Mailings, E-mail, Blog (12 per year) Quantity, then screen
Obtaining clients who you actually want
Step 2:
How to bring in new clients—sources, timing, cost
Timing Hot leads—1 to 3 months Warm leads—6 to 12 months Cold leads—2 to 3 years
Obtaining clients who you actually want
Step 2:
How to bring in new clients—sources, timing, cost
Cost Budget for each event—small or large Track spending If unsuccessfully from timing or cost perspective, end program
Obtaining clients who you actually want
Step 2:
How to bring in new clients—sources, timing, cost
Cost for source (over a 1 year period) Special events—$15K per event $150/person (100 people per event) Hit ratio: 2% per event Cost per new client: $7,500 per year (1 event per year) Total new clients: 2 per year Industry network events—$2K per event, $8K total annual cost $80/person (25 people per event) Hit ratio: 4% per event Cost per new client: $2,000 (4 events per year) Total new clients: 4 per year
Obtaining clients who you actually want
Step 2:
How to bring in new clients—sources, timing, cost
Cost for source (over a 1 year period) Monthly industry breakfasts—$250 per event, $3K total annual cost $25/person (10 people per event) Hit ratio: 2% Cost per new client: $1,500 (12 events per year) Total new clients: 2 per year Volunteer work—$200 per event, $2.4K total annual cost $40/person (25 people per event) Hit ratio: 8% Cost per new client: $1,200 (12 events per year) Total new clients: 2 per year
Obtaining clients who you actually want
Step 2:
How to bring in new clients—sources, timing, cost
Cost for source (over a 1 year period) Referrals—$0 per event Hit ratio: 50% Cost per new client: $25 (12 events per year minimum) Total new clients: Depends on size of present client base Mailings, E-mail, Blog—$5K per event, $60K total annual cost $0.5/person (10,000 people per event) Hit ratio: 0.005% (0.5% show interest, 10% of 0.5% are clients that you want) Cost per new client: $1,200 Total new clients: 50
Obtaining clients who you actually want
Step 3:
Funding your growth
Sources Debt Personal Banks Suppliers
Obtaining clients who you actually want
Step 3:
Funding your growth
Sources Equity Other businesses Venture capital Joint ventures Personal
Obtaining clients who you actually want
Step 3:
Funding your growth
Venture Capital Your own money Angels Seed money (Round 1) Expansion (Round 2) Mezzanine (Round 3) IPO/Merger/Acquisition (Round 4)
Obtaining clients who you actually want
Step 3:
Funding your growth
Venture Capital Your own money Angels Seed money (Round 1) Expansion (Round 2) Mezzanine (Round 3) IPO/Merger/Acquisition (Round 4)
Commonality Where are they?
Obtaining clients who you actually want
Step 3:
Funding your growth
Venture Capital Your own money Angels Seed money (Round 1) Expansion (Round 2) Mezzanine (Round 3) IPO/Merger/Acquisition (Round 4)
$1 to $ 7 million 2 years
Obtaining clients who you actually want
Step 3:
Funding your growth
Venture Capital Your own money Angels Seed money (Round 1) Expansion (Round 2) Mezzanine (Round 3) IPO/Merger/Acquisition (Round 4)
$7 to $25 million
Obtaining clients who you actually want
Step 3:
Funding your growth
Venture Capital Your own money Angels Seed money (Round 1) Expansion (Round 2) Mezzanine (Round 3) IPO/Merger/Acquisition (Round 4)
$25 to $350 million
Obtaining clients who you actually want
Step 3:
Funding your growth
Venture Capital Your own money Angels Seed money (Round 1) Expansion (Round 2) Mezzanine (Round 3) IPO/Merger/Acquisition (Round 4)
One exit strategy
Obtaining clients who you actually want
Step 3:
Funding your growth
Tips Debt More control Need tangible property to secure Equity The importance of $7million
$7 million
Obtaining clients who you actually want
Questions
Š 2006 by www.mondolithic.com. Used by permission
Obtaining clients who you actually want
Thomas Libertiny President, Libertiny Group Growth Through Strategy www.LibertinyGroup.com
Š 2006 by www.mondolithic.com. Used by permission