In B2B, Bigger Isn't Necessarily Better
The strategy of many business-to-business (B2B) companies is often to go after the biggest accounts they can get and ignore the little guys. But as the old adage goes, bigger isn't always better. One Long Island, N.Y., CPA firm believes a company can achieve better results by accepting startups and smaller businesses as clients.
CFO Consulting Services, a firm that provides part-time CFO services to small- and mid-size businesses, advises B2Bs not to turn away a client because of its size. Successful B2Bs rarely turn down smaller accounts because they know these clients can be just as beneficial as larger ones. Rather than focusing on landing that one big account, companies should take on more, smaller accounts: Though they may not bring in a lot of revenue individually, the combined dollar amounts will add up substantially.
Lawrence Teicher, founder of CFO Consulting Services, said that smaller businesses tend to be run by more personal, accessible executives, making it easier to work with them.
"It's always good to do business with a company that you can form a healthy relationship with," he said.
Most importantly, Teicher reminds B2Bs that small companies have great growth potential.
"Regardless of the size of your company, taking on a smaller clients is hardly ever a bad business decision," Teicher said. "As they grow and become medium- or large-sized companies, they will continue doing business with you because you were helping them when they were just a small startup. Usually these types of relationships prove to be lucrative in the end."
Originally published on BusinessNewsDaily.