How do you determine what additional business to add to your present model?

Normally, this is an easy task for businesses that are just getting started. But as you build your business and grow, you should build it with accounts that work in your system. Of course, anyone who is fighting for survival might have a different point of view, because any business can be good business if you are in survival mode. The point is that you can create a more profitable business if you focus on selling accounts that are somewhat connected.

If you are selling little league trophies and county fairs and small corporate accounts, you might choose to specialize in one of these areas. By doing so, you accomplish several things. Let’s say you choose to expand your presence to little leagues – now you can combine your orders to your suppliers and increase your margins by buying in greater quantities of figures, bases, and columns.

In addition to increasing your margins and specializing, you become more educated and establish a presence that the buyer can identify with your business brand. You increase your opportunities to have more repeat business, which is a major key in building your business. One thing that might help you select the right market to enter is to ask, “Do I like these people?” (Not, “Do I admire these people?”) This chemistry is important to long-term success, and it’s always easier to work with those you like.

-Stephen Capper, A-1 Awards