In talking about a local bank that had great profits and low overhead, Kevin Stirtz talks about the two simple things they did to be one of the highest performing banks in the region.
The first decision they made was to serve a very specific loan market. Only one.
Secondly, because of the first decision, it allowed them to be choosy about who their customers were, and then they could serve the right ones extremely well. They wouldn't work with those who didn't fit in with what their expertise was.
This is a great strategy. Think of the additional benefits of doing business this way.
The major one is training. You don't have to have all of that cross-training and cross-selling and all that it entails.
Your marketing budget is minimal, as in this type of niche concentration, word of mouth is the chief method of spreading the word. This releases funds and time so that you can concentrate on what you do well with the customers that you want to do business with.
This bank has no problem defining what business it is in or who its customer is. In its expertise nobody comes close to delivering the goods like they do.
Running a business in this way will ensure that that consistency and steady growth will be a part of doing business and the ups and downs of the economy have a minimum effect.
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