Picking Your Ideal Customer
Stop chasing every lead — define who's actually worth your time.
Notes from Randall Harper. Thirty years working alongside owner-operators, executives and boards — companies of all types and sizes — across entertainment & media, hospitality, service based business, lifestyle businesses, financial services, retail and not-for-profit, in Australia, Asia, the United Kingdom and the United States. What follows is the thinking I keep returning to.
The customers you serve shape who you become
Owners often imagine they choose their customers. In a young business it works the other way — the customers you accept slowly shape the kind of business you turn into. Take too many low-paying, high-maintenance jobs and you become a low-paying, high-maintenance operator. Choosing your ideal customer is not snobbery; it is one of the most consequential strategic decisions a small business makes.
Describe them in one sentence
Take fifteen minutes and write a single sentence describing the customer you would like more of. Include who they are, what they need, what they value, and what they can afford. The more specific the sentence, the easier every subsequent marketing and sales decision becomes. 'Anyone who needs my services' is not an answer; it is the absence of a strategy.
The four filters
- Profitability — does this customer's typical job earn a margin worth the effort?
- Pleasantness — is dealing with them energising or draining?
- Predictability — do they pay on time, decide cleanly, respect scope?
- Potential — do they refer, repeat, or grow with you over time?
Fire your worst, gently
Once you can see your ideal, the inverse becomes visible too — the customers who fail most of the four filters. Owners do not need to formally fire them; they can simply raise prices, tighten terms, or stop chasing repeat work. Within a year, the worst customers quietly self-select away, and the room they leave is filled by ones closer to your ideal.
Pricing is the strongest filter
The fastest way to attract more of your ideal customers is to charge prices that signal who you are for. Cheap prices attract cheap customers; considered prices attract considered ones. The discipline is to hold the price even when it costs you a job in the short term, because the cumulative effect of holding it is the customer base you actually wanted.
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The contents of this paper are the opinion of Clear Point Advisory only. Readers should rely on their own judgement and obtain professional advice appropriate to their circumstances.