Depending on your business, and most commonly at the higher end of the market, a major part of making a deal will sometimes involve entertaining and looking after your clients. When a major decision is about to be made and personal relationships need to be put to the test before a business partnership goes ahead, it can be profitable to host an event where you can get to know your potential new partners better. Here are some key considerations if you’re taking this route.
1) Assign a value to the relationship
It’s a common myth that personal relationships are always priceless. Within business, that certainly isn’t true, and in fact you would do well to assign a nominal value to all of your partnerships. There is a certain amount of potential profit involved whenever you consider bringing a new client on board. If you can work out this figure, you can accurately judge the value of getting to know them better.
2) Stick to a budget
Once you have completed the first step, you should understand how much you can spend on hospitality. Do what you need to do in order to develop that relationship, ensuring the cost is less than what you stand to make as a result.
3) Maintain existing clients
There may be a lot more value in your existing clients, but only if you show that you still care about them. Factor in future expenses where possible, and don’t forget that loyalty is not forever within the business world. Meeting and entertaining your top clients in person on a regular basis can be invaluable.
4) Research carefully
Make sure you don’t waste your time and money by doing some background research before you start making bookings. You need to be sure you’re impressing the right person, first of all, and once you’ve established what their preferences are you can come up with a solution that’s likely to win over that particular individual. In any case, you need to conduct thorough research to establish whether the client’s business is really worth your investment.