Getting your first few clients is unpredictable. I was surprised by the people that came out of the woodwork to help and provide those first few opportunities. The cash flow / profit will depend on your business model. Most people will say 2-3 years for small businesses. I started drawing a salary after 6 months and was profitable in year 2 and beyond. We did ask for retainers from private sector clients in the beginning which helped with cash flow, but out focus was always on municipal projects which will not provide a retainer. A few prime firms were able to release payment to us prior to being paid by the client. Avoid spending on unnecessary big ticket items like cars, office space, TVs. Invest in people (experience), computing power and software, and professional services you cannot do efficiently (accounting, legal, graphic design).
So very appreciated, That makes so much sense and is the most practical and insightful advice on this topic I've heard yet!! That's really interesting and encouraging about how the early opportunities came to you. Sounds like you had a great network!
Episode was great. Looking for top 3 tips of getting new clients when starting a new firm. And how long it generally takes to establish cash flow/profit. Is it good practice to request retainers up front to get the cash rolling in sooner?
@stephendodson8302 Here are 3 top tips for getting new clients when starting a new firm: Target your ideal client: Instead of trying to be everything to everyone, focus on the specific type of client your firm excels at helping. Tailor your marketing and outreach to their needs and pain points. This will make your approach more relevant and attractive. Become a thought leader: Share your expertise through content creation, like blog posts, industry articles, or even social media discussions. This establishes you as a trusted authority and positions your firm as the go-to for that specific problem you solve. Network strategically: Attend industry events, connect with potential clients and referral partners on LinkedIn, and join relevant online communities. Building relationships increases brand awareness and opens doors to new opportunities. As for establishing cash flow, it can vary depending on your industry, niche, and workload. It's not uncommon for new firms to take 6 months to a year to reach profitability. Retainers can be a good practice for getting some cash flow upfront, especially for larger projects. This demonstrates your commitment and helps manage your own cash flow. However, be sure to clearly outline the scope of work covered by the retainer to avoid any misunderstandings. It's also important to offer alternative payment options to cater to different client preferences and budget constraints.
Getting your first few clients is unpredictable. I was surprised by the people that came out of the woodwork to help and provide those first few opportunities.
The cash flow / profit will depend on your business model. Most people will say 2-3 years for small businesses. I started drawing a salary after 6 months and was profitable in year 2 and beyond. We did ask for retainers from private sector clients in the beginning which helped with cash flow, but out focus was always on municipal projects which will not provide a retainer. A few prime firms were able to release payment to us prior to being paid by the client. Avoid spending on unnecessary big ticket items like cars, office space, TVs. Invest in people (experience), computing power and software, and professional services you cannot do efficiently (accounting, legal, graphic design).
So very appreciated, That makes so much sense and is the most practical and insightful advice on this topic I've heard yet!! That's really interesting and encouraging about how the early opportunities came to you. Sounds like you had a great network!
It's amazing how unexpected opportunities can pave the way for your business. Thanks for sharing your experience!
Episode was great. Looking for top 3 tips of getting new clients when starting a new firm. And how long it generally takes to establish cash flow/profit. Is it good practice to request retainers up front to get the cash rolling in sooner?
@stephendodson8302 Here are 3 top tips for getting new clients when starting a new firm:
Target your ideal client: Instead of trying to be everything to everyone, focus on the specific type of client your firm excels at helping. Tailor your marketing and outreach to their needs and pain points. This will make your approach more relevant and attractive.
Become a thought leader: Share your expertise through content creation, like blog posts, industry articles, or even social media discussions. This establishes you as a trusted authority and positions your firm as the go-to for that specific problem you solve.
Network strategically: Attend industry events, connect with potential clients and referral partners on LinkedIn, and join relevant online communities. Building relationships increases brand awareness and opens doors to new opportunities.
As for establishing cash flow, it can vary depending on your industry, niche, and workload. It's not uncommon for new firms to take 6 months to a year to reach profitability.
Retainers can be a good practice for getting some cash flow upfront, especially for larger projects. This demonstrates your commitment and helps manage your own cash flow. However, be sure to clearly outline the scope of work covered by the retainer to avoid any misunderstandings.
It's also important to offer alternative payment options to cater to different client preferences and budget constraints.