How I Choose My Clients

by Mark Gandy

I do not market. I suppose that’s slightly misleading because one could say I market every day as I work with business owners, their bankers, and other third parties. When they hear and see my work, they get exposure to what I do. But in terms of direct marketing, I do none.

But Mark, you write a lot. I like your blog posts. If I gain a client from SEO, and I have, it’s a byproduct of something I enjoy doing. I find writing cathartic, and the exercise helps me to clarify my thinking. Additionally, 100% of my posts answer questions that other CEOs and their accountants have. That’s probably the main reason I write, not to gain clients.

My Client Filtering Process

If I don’t market, you may wonder how I gain clients. I only take on work through referrals. That means they are already pre-determined, pre-disposed, and pre-qualified to get started before we’ve had a meeting (in my space, we call it a value conversation).

Every client I work with can tell you why I said ‘yes’ to them because it’s their job to sell themselves to me. During my first value conversation with a potential client, I do very little talking as I listen carefully to identify their fears and frustrations. I’m also evaluating if they have a growth mindset.

I’m also looking for something else, and it’s easier to show you than to write out what I’m trying to explain.

If you are already a client of mine, this probably makes sense to you. Revenue, number of employees, or location in the U.S. have nothing to do with my selection process.

FAQs

For about six years, I worked with a startup. My job was over when we hit about $1.3 million in revenue in the SaaS space.

I stayed in touch with the owner, and just a few weeks ago, he called me to say, “Mark, you’re the first person to hear this. I just sold the business for slightly more than $20 million.”

Revenue is irrelevant in my decision process. However, reality comes into play. I’m not cheap, so if the revenue number is small, the owner may be unable to bring on an outsider to help meet their potential.

I wanted to answer this question because it’s officially my favorite story, thanks to that phone call. As I write this, I’m working with a small organic farm with around $1 on the top line. First, he can write checks (to me), and I like the potential of his business even though it’s nuanced. I have many other examples.

In the video, what do you mean by the growth mindset?

I will not answer this the way Angela Duckworth would. I’m seeking people who are lifelong learners. I love working with Bob. He doesn’t read many books but is part of Strategic Coach. His executive administrator would describe him as someone wanting to improve continually. While that’s an incomplete definition, I can tell quickly if someone has a growth mindset or just wants quick answers with simple tactics to employ, hoping and praying they will save the day.

I call that a fact of life. I have clients that are also in the consulting business. I should let them answer that question. They will tell you about the so-called value curve. The x-axis represents time. The y-axis is subjective and represents the value provided in the eyes and mind of the client. As time passes, the value given grows at a snail’s pace. Refer back to my continuum. It’s because they have newer and bigger capabilities.

In these cases, I look to exit, but only for moral reasons. I’ve worked with Brian since 2001 before he took over the family business. The potential is low compared to when I got started. But he has a growth mindset and loves our lunches because he’s learning something new each time we meet.

I have another client I’ve been working with since 2008, and they have the best leadership team I’ve ever experienced. They don’t need me. But they want me. In my opinion, their ROI is low on the investment they are making.

Accordingly, you know my opinion on this question, but I never decide unilaterally.

Next Steps

See something you like? Would you like your potential to be sized up by an independent financial leader? Feel free to ping me on LinkedIn.

Categories: CFOs

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