A sizable portion of our practice at DE involves working with clients at or on the verge of their “next event.” These brands and businesses have enjoyed immense success at one level but need assistance to continue their ascendancy. For some, a next event is their first or largest priced commissioned piece. For some, it’s an athlete enjoying their second contract or entering their second career ready to explore what it really means to be and build a brand. And still for some, it’s landing their first major contract or purchase order (PO). Regardless of where a client finds themselves, all are faced with the question, “What do I do?”

Being on the precipice of a next event is a pivotal moment. You’ve worked incredibly hard to get where you are, and you don’t want to squander the opportunity. First things first, enlist some help. You may be great at creating art, delivering fitness instruction, or performing, but managing the business of what you do can be a bit much for most artists, makers, movers and shakers. And it is why the most successful small businesses rely on experts to help them. When evaluating your first big contract, PO, or other next event, here are five factors to consider:

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Contract Terms & Deliverables

Does the current infrastructure allow you to meet the requirements of the contract?

• What needs to be done in terms of resource allocation, insurance, equipment, materials, and labor?

To begin, review the contract or PO, what the key deliverables are, and when those deliverables are due. Additionally, outline what the penalties are for failing to meet the contractual requirements. Knowing what happens if something goes wrong BEFORE it goes wrong is extremely helpful when it comes to planning. Next, conduct an infrastructure assessment to ensure you have what you need and to optimize operations. Many agreements with midsize to large companies have minimum insurance thresholds, labor requirements, and materials specifications. To best understand what gaps, if any, exist, you must answer the question, “What adjustments in how you currently do business do you need to make to meet the demands of this Next Event?”

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Capital

• How much will it cost to fulfill the requirements of the agreement?
• Do you have enough cash on hand or credit available to pay for everything?

Landing the contract, client, or PO is step 1 in a multistep process that is worth celebrating. However, you may want to go for the value brand of bubbly over the expensive stuff because the amount of time it may take you to get paid in full can be 30–90 days, which can be a strain on even the most cash-flush small business. Contact your bank, accountant, and partners/investors (if applicable) to evaluate your options and devise a plan for your current and future financial needs. Be conservative in your estimates just in case the accounting department inadvertently turns the company’s Net 90 into Net Forever with delays.

Also, this new opportunity may be a great time to renegotiate with your suppliers for friendlier terms, particularly if you’ll need larger quantities. Essentially, you’ll be using the contract or PO as a bargaining chip. Look to develop and strengthen relationships with suppliers, investors, bankers, and other industry players to expand the rolodex of experts you can tap for advice or assistance in the future. Your network is just as much of an asset as your ability to execute. Also, if the next event requires travel, look into acquiring a credit card you can use for business travel that will yield points for purchases. This can help you with cash flow and maximize your spending.

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Current Business

• How will this next event affect current business?
• How do I make sure my current clients, customers, and partners remain taken care of?

It’s great that you’ve scored the new opportunity, but you wouldn’t be where you are without your current customers and clients. So, while you’re addressing the needs of the new client, it’s important to maintain the same quality of service and product for existing customers. A good COO, operations manager, or business manager can support operational efficiency, supply chain management, and resource allocation. Make sure you’re still able to maintain business as usual as you grow.

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Storytelling

• How do you take what you’ve done, how you’ve done it, and what you’ve learned and share it with others so that they will want to know more? Or better yet, do business with you?

One of the greatest challenges small businesses face is storytelling. When you land the deal, think about chronicling every step of the journey. No, you don’t have to go out and hire a film crew to document every step. But, at the very least, write down where you started, where you are, and everything you do as you go. Don’t rely on your memory to save you in the end. It won’t. Additionally, take photographs and videos along the way. Especially if the infrastructure assessment we referenced above results in you needing to reallocate space, buy more equipment, or hire more staff. It would make for great “Before/After” or “How it started vs. How it’s going” content.

Be sure to do a pre/post contract assessment to see how the opportunity has helped your business overall. Consider using this opportunity to write a case study to share with clients, customers, and industry professionals. Whether you pitch the story to media outlets or simply share it on your social outlets, getting the story out is incredibly important. Why? Because it provides a tangible example of your capabilities and accomplishments while serving as a powerful testament to your expertise and reliability.

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Partnership

• What will this partnership actually look like?
• How low will you have to go in terms of price?
• What are some of the anticipated challenges you might face in regard to executing the terms of this agreement?

If the deal isn’t done yet, then as you’re negotiating, don’t lose sight of the fact that this is a partnership that should be mutually beneficial. Yes, your partner (client, customer, partner) may have the strategic advantage of capital, brand cache, and market share, but you are working collaboratively toward a common business goal. Be clear about your questions, concerns, and reservations and communicate your challenges. Oftentimes, companies have resources for similarly situated companies to help them through the growing pains. All you need to do is ask.

Getting the lowest price is the goal of most big businesses, whereas making the most profit is yours. Those two objectives are at odds with each other, and usually the smaller businesses lose or forfeit by just offering to deliver at the lowest price. Be realistic about your margins and understand what your boundaries are. Many companies have been crushed under the weight of giving away too much and receiving too little from their next event.

DE has a lot of experience helping clients get to and leverage their next event: from securing their first purchase order from a large retailer to closing deals on ABC’s Shark Tank and supporting athletes as they transition to their second careers. If you find yourself  at this stage, or anywhere near this stage, schedule your free consultation today to learn how we can add strategy to your great ideas.

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