As a business owner, you are faced with many big decisions. At some point, you will be dealt the following question: is it more important to grow your customer base or focus solely on increasing profit?
Before we go any further, it is important to note that there is no right or wrong answer to this question. The approach you take may not be the same as the next business owner.
Benefits of Growing your Customer Base
There are several benefits of focusing on the growth of your customer base, including but not limited to:
- The more customers you have the more revenue you will eventually generate
- With more customers you can avoid “putting all your eggs in one basket,” meaning that if one client moves on your business will not suffer too much
- The larger number of customers you have in the pipeline the better chance you have of upselling them in the future, thus increasing revenue
Benefits of Focusing on Increased Profit
Is there anything more important than improving your bottom line? Like most, you are in business to make as much money as possible. For this reason, it is only natural to focus some or all of your attention on growing profits. Here are a few benefits to consider:
- The higher your profit the more money you can put back into your business
- Profit growth can put you in position to hire additional workers who can help push this number even higher
At this point, you should realize that growing your customer base and increasing profits are both essential to the future success of your business. While you may put more time into one or the other, you should never neglect either one entirely. If you do, you may find yourself scrambling to get back on track at some point in the future.
If you play your cards right, your profits should increase as your customer base grows. This is the best of both worlds!