Can small businesses live off referrals?

Mountains don't travel well!

In my work I talk to many small business owners, and on a daily basis. Some in professional services are doing pretty well without making any effort to market. This is because they provide their clients with reliable, dependable support, and in return their clients recommend them to others. That way they have a steady stream of new business to replace the natural wastage, which is often due to other clients retiring and very often selling up.

These established businesses living off recommendations generally are not looking to grow too much, but their owners find themselves able to live a comfortable living. That’s great, isn’t it, in a time when the general business is difficult?

The whole world of small business isn’t like that though. I was talking to the owner of a start-up business two years old, and he told me that business was really very poor. They had hardly any clients coming to them. I commented that they did not seem to have a website and that they were almost invisible in the search engines. The owner said “But in our line we get all our business through word of mouth”; in other words through referrals. Except they aren’t getting any. This is two years down the line.

In some ways I understand my friend’s comment. I believe that once he worked in one of those established businesses I mentioned at the beginning; one where the work just kept coming in because their good service reputation was passed on by word of mouth. In a start up business you just don’t have that. You have to take the initiative. It is no good expecting the mountain to come to Mohamed.

A small business has to market. Any professional service business must have a website, and preferably a blog or good content showing the expertise of the owners. Content marketing for goodness sake! Then once a few clients come along and sign up, rightly convinced you know what you are talking about, they will talk about you. Your best marketers are your client advocates, but you have to have a virtual shop to display your wares.

It’s no good hiding your light under a bushel, especially as we all need money to live on. It’s really not true that if you build it they will come (sorry, Kevin).  You need publicity, your potential clients need to know where to come and they need to know what great stuff they will get when they arrive.

Are you hiding or is it easy to find you?

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