I contest the short answer for many is, unwittingly, YES. Here’s a random example (from what I’m sure is a great firm).

https://www.textrequest.com/blog/small-business-marketing-tips-drive-exponential-growth

Because it’s what marketing firms do so well, the volume of content offering accelerated business growth via on-line lead generation is infinite. It’s a commonly held belief that spending on more leads in this way first is the quickest route to exponential growth. There’s usually a case study where that dream £1 million client is closed. Here’s a thought, what if it becomes 60% of your company’s revenue and left, didn’t pay or wasn’t profitable?

The compulsion to spend on on-line lead generation can be overwhelming if you lie awake at night worrying about paying next month’s payroll. Or maybe “if we had just a few more clients I’d have the profit to hire people and see my family”, or “let’s borrow more to grow quick before others steal our market and we can cash out sooner”…The answer must lie on-line surely these days? Can it work? ABSOLUTELY. Will it drive sustainable, exponential (profitable) growth for your current business? Unlikely I propose unless you’ve considered the following questions:

  1. Have you got a strategic plan, that also delivers what you want out of life personally with a purpose and mission? i.e. what growth gives you what you want?
  2. Do you (really) deliver good enough, profitable, consistent service with processes (including recruitment/training) in place to be able to continue to deliver when the enquiries rack up (and be able to fund the growth and maintain cash flow)?
  3. Have you measured sources, numbers and conversion rates from the leads you currently get? Then worked on strategies to ensure your conversion rate is higher (like sales scripts) and invested more in the sources that already deliver profitable clients?
  4. Do you know which of your clients deliver most of your profit, why they buy from you and what would make them buy more? How about sacking or increasing your prices to the unprofitable ones? Does all your messaging appeal to that ideal client specifically and ooze quality and credibility? Are you niche?
  5. Do you know the average lifetime value of these clients? Have you then invested in strategies to improve the amount of profitable revenue your existing clients spend with you (buying more profitable services, more often, over a longer -term, increasingly on recurring contracted basis)?
  6. Have you worked to create raving fans of your clients and initiated referral strategies to bring in pre-sold, higher-profit leads? Engaging them to build your ‘brand’, which is after all what others say about you.
  7. With ALL strategies, have you TESTED & MEASURED first to find what works before spending bundles? Once you have several working strategies that deliver these clients (i.e. the cost to buy a new client is less than the acceptable net profit over the average lifetime of a client) you have an unlimited marketing budget, as every £1 you spend you get more back in profit.
  8. Have you then invested to grow exponentially while consistently investing in greater efficiency and doing more with less (processes, leveraging technology…)?

Marketing is so critical we need to be qualified enough (not a specialist) to make it work as part of the bigger plan. Note the initial question referenced “your business”, not all businesses. There’s not a risk if you:

  • know you are not gambling more than you can afford without getting the returns needed (80% of marketing doesn’t work, invest in testing which 20% does)
  • can cash flow the growth and scale to deliver consistently when it does happen
  • do not end up selling a lot more of a part of your offering that once analysed loses money
  • avoid attracting/retaining the wrong clients that ultimately kill your business, especially those that don’t pay promptly (by being laser focused on who you do want as clients)

If sustainable, exponential growth for your business were as quick and easy as spending money on-line for lead generation we’d all be hanging out together on our yachts (or wherever we set out to get to) but most struggle or plateau. When you do grow, you can end up like many with a business that runs your life. Rather than delivering the life you wanted when you set out.

Why is that? The biggest limiting factor in an owner/managed business is the owner, yep YOU and I! If you want to grow your business, invest in growing yourself as a business owner first and work on your business not just in it. Read books (or listen if you prefer or don’t think you have time), I’ll happily make recommendations. Go to seminars (you are welcome to mine if you’re local to London:-), grow your network (learn to do it with a strategy!), meet people who you can learn from, ask for help, understand your strengths and weaknesses, recruit others to compensate, learn to build great teams (they do the rest for you but work for great leaders with a great purpose), get someone to hold you accountable to your goals (have your goals impact the ones you love positively if you find it tough to do some things without a boss, you won’t let them down) and yes, get a coach and mentors like all top sportspeople who want to push themselves to grow…

Whatever success looks like to you it’s there for everyone who (really) wants it. It is genuinely different for every owner I ask, of those few who do know, and have it written down (Step 1).

Sounds like a lot of work (sorry), that’s why it usually takes several years. That’s if you can have fun doing it, grow over that time to have the ability and discipline to take the daily actions needed for your plan, while staying focused. Prioritise and do the most important things each quarter, if you try to do it all at once you end up being less productive and may burnout. A Chinese proverb to end with, “the best time to plant a tree was 20 years ago, the next best time is now”…

Are you the owner of a small or medium sized business in London, dissatisfied with profitability, growth, your working hours or team? Maybe you are keen to increase value for exit or need the clarity of a plan?

Jeff Gosling is a Business Planning & Growth Specialist, licensed ActionCOACH and business owner of Precessional Effect Limited. Passionate about helping business owners who want to grow, he guarantees to increase profits and value for clients by more than any investment in services within 6 months.