Expert Advice - April 2008

Power Rainmaking Techniques

Increase Your Business Profits

by Daniel Stock

Effective business development can be a daunting task. It’s time consuming. It takes away from regular activities and often requires too much time. Businesses owners are often not experts at business development, so they risk valuable time and money. But, as the adage goes, if you don’t grow your business, chances are your business won’t grow.

Businesses let the fundamentals of development slip to the back burner in favor of other activities. While the following is but a short list of effective tools, try incorporating some of these basic rainmaking strategies into your business day and watch your profits soar.

Referrals

Referral programs are developed to grow organically by using an existing customer base. Rewarding your customers with an incentive for sending new business your way can be an incredible source of new revenue, but most businesses have a passive, unmanaged referral program. Build a consistent and well-defined program and execute it with the understanding that it often costs less money to “sell” to a customer that doesn’t need selling to, than it does to a customer that has never heard of you.

Networking

For many business owners, networking can be the “Holy Grail” of rainmaking strategies. It involves defining possible contacts, determining your purpose, developing a plan of action, and committing the time and energy necessary to produce results. By constantly reaching out and nurturing existing relationships and establishing new ones, you can position yourself in a stream of opportunities, resources, information and contacts that will pay dividends for years to come.

Loyalty

Loyalty programs are used when a business already has a solid customer base, but wants to ensure they remain happy and loyal customers. However, but it needs to be managed and accountable. Build a loyalty program tailored to your ideal customer. Make it meaningful. It can include anything from rewards, thank-you notes or complimentary add-ons that your customers think have value.

Events

Hosting or attending an event can be costly and time-consuming, yet an excellent way to raise profile awareness about your business within a target group, but head into this one with very clear and realistic objectives and goals and devise ways of measuring results. Consider hosting a workshop and invite prospective customers for a one-hour class that explains or teaches something of relevance.

Connections

Often, business owners just need a few of the right connections to make significant progress in their business. Develop a “wish list” of influential contacts – the 100 top professionals – that could truly affect your business, whether they’re potential customers, colleagues or even competitors. Rank those contacts and find time every day to make a connection. As with networking, a consistent connections program will lift any business to new heights over time.

Business rainmaking can include a myriad of other action strategies, including clear branding, effective advertising techniques, streamlined sales systems and experiential marketing and, while intimidating, is not rocket science. Consider outsourcing to professionals for best results. Short of that, formulate a plan with realistic goals and stick with it. The effort will be well worth the time and energy and will pay great dividends in return.

Daniel Stock
Daniel Stock is managing partner for Corporate Rain Makers, a business development firm.