I was sitting down with one of our clients, Oliver Russell, on Thursday and was struck when the Managing Director said they won’t take any business that doesn’t represent a determined amount in yearly revenue to the firm. I wondered for a moment how they got the nerve to draw such a clear line in the sand. Especially considering some of the challenges we have faced when doing the same thing.

I was impressed that they, unlike many small businesses, have determined their target market and are sticking with it. They realize that by accepting business opportunities from companies outside of this focus they reduce their ability to target the bigger more profitable prospects. As further proof of their understanding of this concept they are primarily interested in a few key industries for which they have great expertise and a proven track record. Additionally, they have chosen to pursue business interested in a particular type of work for which they are among the best in the world. It is this type of focus that has earned them a spot among the top 100 B2B marketing agencies four years in a row.

As I was visiting with them I thought about a Harvard Business Review article from the November-December 1999 issue titled The Strategic Power of Saying No. (This is a must read for any small business attempting to define their target market and growth strategy.) From this article and my meeting with our client I thought I would pass on a few key points.

1. Your time and expertise is best spent on a key market that represents a great opportunity for
profit and a great chance to shine.

2. Saying no to the wrong type of prospect especially in a down market is one of the hardest
things you will ever do. (Even more so if that wrong prospect represents a significant chunk of
revenue.)

3. After you have determined your target market you must make sure you have the internal
resources required to meet that market’s needs.

After working on this at A Plus Benefits I can attest to its difficulty and also to its subsequent rewards. Making the effort to designate the right target and saying no to those that don’t fit has the power to transform your business and give clarity in times of economic hardship.

Jake Lunt is the Director of Client Accounts for A Plus Benefits, Inc.

This entry was posted on Monday, March 15th, 2010 at 1:48 pm and is filed under Core Competency, Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.