Why Contacts and Referrals are Not Enough to Grow Your Business

Contacts and referrals are awesome.

They know you.

They like you.

They know how you work and the results you can help them to achieve.

None of that annoying and costly pitching or getting to know you stuff.?

It’s?easy, with pretty much the only question being: who should I send the invoice to?

Sometimes, that’s EXACTLY how it works.

Which is why contact and referrals are awesome.

That is, until they’re not.

People can change jobs, or leave the industry - or country -- or have to work with different supply partners due to international alignments. Or budgets are cut etc. etc.?

Last year, we did a survey of B2B business owners and managers about where their new business leads came from;?79%?of respondents said, you guessed it, that?they relied on contacts and referrals to grow their businesses.

Basing your future growth solely on contacts and referrals is like going on a roller-coaster without a seat belt. You may?not be thrown out of the car, but the chances that it will happen increase dramatically.

Don’t Get Me Wrong

Contacts and referrals?can?generate millions of dollars.

If you have a bulging black book - virtual or paper (remember that?) - chock full of influential contacts who are crying out to work with you, well done you!

Keep riding that bucking bronco for all it’s worth.

We’ve spoken with many owners who rely almost exclusively on their contacts and run very successful businesses.?

However, they tell us that there is always this little knock in the back of their head that this well-spring of work from their loyal contacts could one day simply go away.

It has happened to us - to our highly stressful cost - and it could just as easily happen to you.

Predictability is the cornerstone of business growth. When you’re basing that predictability on the behaviour of human beings, it’s not particularly reassuring or rock-solid.

The Three-Step Growth Strategy

So, how can you break free from an over-reliance on contacts and referrals??

Here are three things that you can implement quickly:

1. A Process:

By implementing a predictable sales process, your business can streamline its operations, improve conversion rates, and ultimately drive revenue.

Most importantly, it can help you to sleep easier at night.

This process can include:

• Lead Generation:?Identify your target audience and employ strategies to attract qualified leads.
• Qualification:?Assess leads to determine their fit for your business's services.
• Presentation:?Present your services in a compelling way that addresses the prospect's needs and pain points.
• Closing:?Make that prospect a new client.

2. Effective Marketing:

Building on point 1, you need to identify your target market, understand their needs, and craft messages that resonate with them.?

It’s simple and marketing 101, but too often it’s not done.

It can include traditional advertising, content marketing, social media, SEO, and another strategies that help your business stand out.

Put as many quality touchpoints out there as you can, all of which lead back to you as the solution to their problems.

3. Operational Scale:

Operational scale refers to the ability of your business to handle growth without compromising quality.

It involves implementing systems and processes - the stuff that makes the eyes glaze over of those of us in more ‘creative industries’ - that allow your business to operate efficiently and effectively, even as your client base expands.?

Operational scale includes:

• Automation:?Use technology to automate repetitive tasks and streamline workflows.
• Standardisation:?Establish standardised processes for delivering your services to ensure consistency and quality.
• Scalable Infrastructure:?Invest in infrastructure that can support your business's growth, such as scalable software solutions and flexible work arrangements.

Building a Sustainable Pipeline

By diversifying your approach beyond contacts and referrals, you create a robust pipeline that fuels consistent revenue growth.?

While contacts and referrals may still play a role, they become just one piece of the puzzle rather than the only piece.?

This approach ensures that your business can be resilient in the face of market fluctuations, changing trends, and unforeseen circumstances.

Take Action NOW!

Don’t do what?way?too many businesspeople do and be complacent when things are looking rosy, and the dollars are coming in.?

Be proactive. Every. Single. Day.

What’s the net result of a proactive approach: you’ll be making money AND creating?new?contacts and referrals every day!

If you want to get bigger clients and bigger budgets, we can help you achieve that! Book a session with us here .

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