You’ve finally found it…
This page is designed for online business owners that sell Digital Products, Physical products, Coaching, Consulting and Online Courses, that want a refresher course on the foundational principles of building a strong business & marketing strategy.
You see, all business owners and entrepreneurs are STUCK at various levels.
There’s just so much to learn.
We are all looking for ways to get better at what we do and always looking for an edge. It’s our defining characteristic as entrepreneurs.
But sometimes we tend to forget. Just because we have supply (services, products, trainings etc.) doesn’t necessarily mean that we’re entitled to demand. The market chooses what it wants. As business owners and marketers we do our best to influence that choice.
This page is here to help you understand & create an unstoppable business and marketing strategy:
What I call “The Ultimate Business Formula”
Whether you’re selling your consulting services, digital products and courses or physical products, your business’s success comes down one simple yet powerful formula.
This is the same formula that Starbucks & Pizza Hut follow to dominate their market.
This is the same formula that Amazon follow to run their E-commerce empire.
Aaaaand *drumroll* here it is:
This formula applies to small & enterprise level businesses. Simply because it follows the immutable laws of business growth.
Let’s break down this formula into simple words so it can make more sense to you and your business:
The Number of Leads you get X the Percentage of these Leads that become Customers X The profit you make from every customer X The number of Times this customer purchases from you is your Growth potential.
Pretty simple, right ?
Well, it sounds like it is, but you will be shocked by how many times I consult online businesses that at first think they do understand their customer journey and their marketing strategy yet they do not plan their marketing efforts in alignment with this formula – And you’re probably aren’t doing that either.
That’s why getting an eagle-eye view of the main components that your business success depends on is a crucial thing to do AND track on weekly/monthly basis.
Focusing On the Wrong things = You’re Leaving Money On the Table
Most of the times, when I start consulting a new business and ask them about their goals they say things like: “We need more traffic to scale our business” or “we need more leads to get more sales” or “We need a bigger email list to get more profits”
Hey … you might be pulling out your hair, trying to go after the same things too; Trying to get more traffic, trying to get more leads or trying to grow your email list because you heard some marketing gurus saying “the money is in the list”
Well, guess what… You’re just focusing on the first element of the formula: The “Lead”.
Yes, Leads are the fuel of your business but with other elements neglected or doing very poorly, it doesn’t matter how many leads you get, the end result (Gross Profit) is going be less than your expectations. *memories of last quarter come in*
And NO, most of the times, the solution is NOT to get more leads. The solution is to turn MORE leads into customers, Making MORE profit from each customer, and Making your product & service so fantastic that your existing customers buy from you again and again.
Here’s a typical scenario I see with businesses that are trying to increase their profits:
Let’s say, John runs an online business for dog training.
In January he got 1000 Leads from FB ads, 50 of them became customers (that’s 0.5%) and bought his flagship course at a $1000 Price a pop. John made $50,000 in Revenue this Jan.
(I’m excluding cost & keeping the numbers simple to get to the point)
So, before he sleeps, John thinks (yes we all do think before we sleep): “Okay, so if I want to scale my business and hit my goal of $100,000 in Feb, all I have to do is get Twice the number of leads and … I’d hit my goal.”
Well, yes, that might be a way to approach this … but that’s the most difficult/costly/ineffective way to approach the solution because he’s only focusing on the first element of our FOUR-element formula.
Instead, think of this scenario:
Number of new Leads acquired can stay the same for February: 1000
(which is great since we’re not increasing our cost of lead acquisition)
Leads converted into customers Increased by a conservative 25%: 63 Customers
Profit generated from each lead: Increased by a conservative 25%: $1250
Frequency of purchases is 30%: so 30% of these customers will purchase again (Lets say ONLY ONCE): that’s 12 Customers purchasing again.
If you do the math, you’ll have 63 customers X Profit $1250 X 1.30 Frequency = $102,375
Nothing doubled, Nothing even increased by half its size, and yet John’s profit more than doubled without changing increasing new leads nor advertisement cost.
Now of course you don’t want to do that, Increasing leads by 50% or even 100% as this business owner intended to do in the first place will increase the gross profit by 4X instead of 2X. BUT you should only increase your leads acquisition budget once all the other elements are optimised. – Or else you’re bleeding cash and you don’t know it.
That’s the power of having a strategy to improve and optimize on every single element of the Ultimate Business Formula.
So… what is your growth potential, and what can it do for your business ?
The potential is to optimise and double ALL elements that your business relies on.
Doubling all the elements will lead to this:
2L x 2C x 2P x 2F = 16X Gross Profit
Yes, the potential is to sexdecuple your profit. (that’s to 16X your profit)
I know that some elements are really difficult or impossible to double, and others are easy or could even be tripled. And that’s what you’re marketing strategy and planning should be based on.
Ask The Right Questions to Make Better Decisions
Questioning every marketing tactic or strategy helps you take the right decisions that align with your goals.
You should be asking questions like:
Is this current project/product/campaign affecting the Ultimate Business Formula ? What element(s) does it affect ?
How is this new product or service is going to affect my Business formula ? What effect will it have on the end result ?
What elements are my Marketing & Advertising efforts affecting ? And what is their ROM ? (Return on Marketing)
What element of the formula is currently weak ? And how can we improve it ?
If you aren’t asking these questions, then you should start. Every move and decision you make in your business should contribute to one of these elements, or else … whats the point ? huh ?
Build a marketing strategy that contributes in every way on each element.
So, to recap, what’s your goal?
To create a customer journey that lowers the cost of acquisition, while simultaneously increasing instant and lifetime value of the customer…
And in order to do that, We have to break down the sales process into different sections and dive deep into each section in order to make sure it contributes to the Growth potential of our formula.
A Corporation fails every 3 minutes.
A directorship changes ever 32 seconds.
A company changes control ever 15 minutes.
96 percent of all companies fail within 10 years.
26,000 new products and brands are introduced every year.
16 percent to 30 percent of consumers change brand loyalty in one evening of watching commercial
What are you doing to stay on top of your game ?[mashshare]