Are Your Best Clients Those Who Pay Fastest?

Wells Fargo’s Small Business Roundup Newsletter features an Albuquerque printer APC, recent winner of a SBA award.  One of the best pieces of advice I’ve seen in a while comes from APC’s owner, Pedro “Tony” Fernandez.  Mr. Fernandez explains how his business focused on cash flow to stay in business after 9/11:

To regain momentum, Fernandez turned to his customer base. “Rather than concentrating our marketing on high-revenue or high-volume clients, we went after our best payers,” he notes. “We looked at those who paid their bills consistently and quickly. Revenue dropped, but the method helped us strengthen our cash flow, which brought us back to pre-9/11 profit levels by 2004.”

Your biggest clients aren’t always your best.  If you are looking to focus certain marketing efforts on your existing clients, think about trying APC’s approach.  Focus on your best payers, not your biggest accounts.