I see way too many business professionals going to every event they can possibly go to in an effort to meet as many new people as they can possibly meet to build their businesses. There’s no rhyme or reason. They just go where the people are. The problem is that there is no guarantee that it will be a room full of their ideal clients.

Over the years I’ve experienced three main ways that small business owners and professionals acquire substantial client bases—they’re born to it, they buy it or they build it themselves.

#1 – THEY’RE BORN TO IT:

Think about the person you know who is running a business started by his or her parents or grandparents. Now second or third generation business owners, they are expected to strengthen the family legacy. They have inherited a client base and possibly even some collaborative relationships. Being born into an existing business with existing relationships has its challenges:

•    You may still be a child in everyone’s eyes; that snot nosed little kid that used to run underfoot. You’re all grown up but they’ve been in this business since you were in diapers. The reality is that you are expected to do more than everyone else just to come out even.
•    Don’t take anyone for granted. Once upon a time something brought the staff, clients, and vendors together and they’re like family. You’re gonna have to earn your place in your own family’s business.
•    You must ensure that the agreements made prior to your participation continue to serve you, your company, your employees, and all other parties involved. Continue to identify new ways to support one another as the market and economy experience ups and downs.

#2 – THEY BUY IT:

Other folks enter the business world by purchasing an existing business, which can come with payables, receivables, furniture, files, and even an active client base. I bought one of my businesses from someone who chose to build the business around themselves instead of around the products, the services, and the brand.

Guess what happens when you remove the original owner from that equation? It’s kind of a good news bad news thing. Let’s start with the bad news. There could initially be a mass exodus of the people that were there for the wrong reasons. They got wined, dined, and golfed to death so they never really cared about experiencing success as a client. Now for the good news: The people who remain are counting on your products and services to work and they will shout it from the roof tops when they do. You can’t buy better word of mouth.

Here are a few things to keep in mind when you consider purchasing an existing client base or business:

•    Take a look at their most active customers. Do they resemble your ideal target market; the select group of people that you and your team are most qualified to serve?
•    Understand that some folks were there specifically to do business with the previous owners. You can try to earn their business but don’t expect a 100 percent retention rate. It will allow you the opportunity to bring in clients who you’ve always wanted to work with.
•    Talk to the current owners about the things they’re doing to connect with their clients—website, e-mails, newsletters, phone calls, etc. It doesn’t mean you’ll follow suit but you’re at least aware of the current expectation.

#3 – THEY BUILD IT THEMSELVES:

I learned something years ago that has really stuck with me. On average, business people know between 250-500 people. I believe that number has dramatically increased due to ever-evolving tools that technology provides. Take a look at your database. Most of us have thousands of names we’ve entered over time.

The conservative numbers are on your side, which means you really only need to develop strong, reciprocal relationships with a handful of folks to successfully build your business by referral. Do the math. If you work with five referral partners who have access to your target market x 250 average contacts in their databases, you gain access to a minimum of 1,250 prospective clients.

If all 1,250 people made your phone ring or walked in your door in one month’s time most of us couldn’t handle all that business. We truly don’t have the infrastructure in place to support it. Honestly, we might even have a hard time keeping up if they directed it to us over the course of a year.

So what are some first steps toward building your own client base through your strongest relationships?

•    Determine how much referral revenue you need to generate in the next year and come up with a plan to make it happen including how many referrals you need to receive on a weekly basis. Feel free to take advantage of the Referral Pipeline Calculator on my website to help.
•    I agree with Jack Canfield. You are the average of the 5 people you spend the most of your time with. Make a list of the 5 people you actually spend most of your “golden” time with each week (Monday – Friday, 8 to 5). Consider getting involved in a structured, proven referral group. Your net worth is directly related to the strength of your network when you’re building your business by referral.
•    Block out time to network. How much time? If sales are only part of your role, about eight hours each week should do the trick. If sales is your full-time responsibility, you should invest at least half of your work week (20 hours) into getting out and about to meet new people. Join your local chamber, mark your calendar, and go with purpose.

When it comes to your client base you can be born to it, buy it, or build it yourself. Typically, 78 percent of small business owners are counting on more than 90 percent of their business to come by referral—and they don’t have a plan to purposefully make it happen. What’s your plan?

Paula Frazier is a referral marketing expert for BNI & Referral Institute and has helped thousands of business people create millions of dollars in qualified referrals over the last nine years. She is part of an exclusive team of international Master Trainers and collaborates with the leaders in her industry to continually develop cutting edge referral marketing concepts for the organization. Paula can be contacted at paula@referralinstitute-va.com.