Many companies have tired and drained owners who have lost passion for the business. Despite this, some of these businesses have great potential and will prosper under a motivated owner. Plus, considering the economy being what it is, you may find a good deal. Not only does buying a company grow your business, but also it expands your offerings and brings in more customers.
The oil and gas industry's growth has created many new jobs helping states with active wells enjoy lower unemployment rates. One of them is in North Dakota's Bakken Shale and it's seeing unexpected benefits: a surge in the needs for railroad, trucking, construction and medical staff and housing.
So you decided to trim the fat and fire a client. That's the easy part. The hard part is making it happen especially when it comes to the good clients. Good or bad, be amicable in showing them the door without slamming it. A bad break up could cost you.
What? How dare I suggest getting rid of some of your clients in this economy? Yep, I'm encouraging you to review all your current clients and fire those that are not only difficult, but also nice. Letting them go helps your company stick to its vision, mission and goals while better serving your employees by shedding the negativity and energy drain that comes with having the wrong clients.
We'll start with the easy one: bad clients. These clients hold up work. They pay late. They don't return calls. They contact you often and at all hours.
To find qualified talent in the oil and gas industry where demand exceeds supply, Range Resource Corp. uses unconventional targeted recruiting methods as The Wall Street Journal reports in A Tactical Recruiting Effort Pays. The natural gas company's efforts are paying off, plus it has also overcome its problem of high turnover.
Many companies have had a rough year that meant cutting budgets and letting employees go. Few want to think about having a party when struggling to have enough cash flow to pay employees, vendors and other bills. How will cutbacks affect the holiday season and celebrating with employees? Yes, cuts force companies to cancel holiday parties. But is it a good idea to do that?
Research shows that it's easier and cheaper to keep and sell to existing customers than to new ones. A Sales & Marketing Magazine survey reports that it costs 133 percent more to sell to new customers than current ones.
In Customer Winback, Jill Griffin and Michael Lowenstein say that selling to new customers has a success rate as low as 5 percent and selling to current customers has a success rate up to 70 percent. That should be enough to convince companies to work harder on customer service to ensure current clients are happy.
Banks have been using the Small Business Lending Fund disbursement to repay Trouble Asset Relief Program (TARP) loans instead of using it on small business loans according to the Wall Street Journal article (membership required).
No matter the size of a company, everyone has a supplier. You use a phone for business? The Internet? Applications? All those require having a supplier. Do you provide a product or service to others? That makes you a supplier, too.
The Wall Street Journal has a fascinating story about the discoverer of Bakken Shale in North Dakota, Harold Hamm, CEO of Continental Resources. Hamm claims that Bakken holds 24 billion barrels of oil, enough to double America's oil reserves and to make it twice as big as Prudoe Bay's reserves.
What Our Clients Are Saying
- Brenda and Mark Neufeld,
In our very first conversation I noticed that you not only understood our situation, but also the Oil & Gas trade. Capital Solutions has been an invaluable help... We have grown our business exponentially thanks to you. I can now probably qualify for a traditional line of credit (...but I'm not sure I want to).
B.N.M. Piloting Services
- George Del Toro,
We were funded [in 10 days] (the approval process was very smooth). The way I spend my time has changed dramatically since then. I can spend as much time as I need visiting with customers and out on the field... In closing I would like to tell you that Capital Solutions has made it possible for GDT Well Service, Inc. to triple (300%) its business in the last year, without any of the "growing pains".
GDT Well Service
- Keri Gray,
The HUGE difference I found since we are working with you... is in the day-to-day life... Since Capital Solutions is funding us there is no "fear"... when I talk to a vendor or need to make payroll. You guys have also bent over backwards... to make it work for us. I really appreciate that.