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Balance Customers and Capacity

Grow Your Business by Balancing Customers and Capacity

Leo Manzione

I need more customers!

I need to be able to serve more customers!

These are two things I hear time and time again from my clients. Some feel like they don’t have enough customers and think they have a sales and/or marketing issue. Others feel like they don’t have the capacity to serve enough customers – essentially a value delivery issue.

We’ve talked previously about the concept of akrasia and how we sometimes sabotage ourselves by not truly wanting the consequences of reaching a milestone – sometimes, that’s what’s holding us back from not getting those new customers or not having the capacity. Other times, we might actually be focused on the wrong one.

Check out the video below to learn more:

What kind of customers do I really want in order to build the right kind of capacity?

Are you focused on the right one?

Sometimes clients say their focus is to get more customers, but when the opportunity for more presents itself, they hold back. Why? They should really be focused on capacity.

Inversely, some business owners are very focused on capacity and being sure they can take on more customers, but the idea lingers without real action. Why? They should be focused on how they’re filling that capacity (aka getting more customers).

Changing the narrative

Instead of blindly saying “I need more customers,” it’s important to ask ourselves the following: “What customers do I really want?” This key question then inevitably takes us back to the capacity side where we have to ask ourselves, “What type of work do I really want to be doing or what kind of offer do I really want to be selling within my business?

Inversely, instead of blindly saying “I need to be able to serve more customers,” it’s important to ask ourselves the following: “What kind of customers do I really want in order to build the right kind of capacity?

That’s the real nugget – THE RIGHT KIND OF CAPACITY.

The right kind of capacity

Many businesses have a so-called “bread and butter” offer that is not actually very profitable. It’s important to look at your offers regularly and make sure they are the best uses of your time.  

Even more difficult is understanding that a business is really meant to be a long-term system that can operate without you. If it can’t run without you, it’s more of a job than a business.

In fact, in our interview with Bharat Kanodia – a business valuation specialist who has valued just about everything from businesses, real estate, industrial assets, governmental infrastructure, to financial assets – he told us the major factors that drive up the value of a business.

The major factors that buyers look for are the following:

  1. Businesses with predictable and reliable cash flow
  2. Businesses where the buyer doesn’t have to do anything to enjoy that predictable and reliable cash flow

So when you’re analyzing your customers and capacity, make sure you keep your eye on the big picture – ideally you want to find the customers who will fill a capacity that you aren’t essential to delivering.

There you have it! The simple ideas of “I need more customers!” or “I need to be able to serve more customers!” aren’t always so simple. It’s essential to take a step back to make sure you’re focusing on the right one, in the right way, and with the right goals.

Want help doing this in your own business? Feel free to apply for one of my complimentary diagnostic sessions and we can review this concept and uncover anything else that might be holding your business back.

APPLY HERE!

Talk soon,

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