business_misc

• 0 - 3 million
  • Pick one avatar, one product, one channel to get leads from
  • Make sure its profitable (3x cac, 2x(cac+filfill), 80% margins)
• 3-10 million
  • Multiple products (cross sells and upsales)
    • What’s the next thing they will need
    • What else can we do for them
    • What else would they naturally need
    • This will increase LTV
  • By this point you have already mastered getting customers cheaply (cac) via one lead generation channel
    • This is why you are now adding more products and looking at other lead avenues
  • Potentially multiple channels
• 10 million-30 million
  • Need to start to hire corporate ppl
  • Need to have hr, corporate structure, protected from liability
  • Need lawyers for lawsuits as you are now a target
  • Need to get IT systems
  • Need finance department
• 30 million+
  • Need more people like the founder to grow
  • Do not hire entrepreneurs
    • They are working for you because they cannot make it on their own. They will always complain they don’t make enough.
    • They will get confidence back and want to steal your business model and become your competitor
  • Hire ppl that have creativity and drive but want to work in a corporate setting. Called entrepreneurs
    • This ppl do not take risks and would rather try things with a salary. They like the feeling that if they blow it, they will still get paid.
  • You need more bodies as there is not enough owner to keep moving the business forward
  • You need to find someone as smart as you to run your new product lines

There are only 3 ways to grow your business: §

1. Get more clients
2. Increase the average purchase
   • Increase price
   • Up sales
   • Cross sales
3. Get people to buy more frequently

EXIT Profit Levers: §

1. Price levers
   1. The billing cycle
      1. Stop charging monthly
         1. Charge every 7, 14, 28 days
         2. It’s easier to sell 7 day billing as the price will look cheaper
         3. If you charge $200permonth,changeto$49 every 7 days (30/7 * 49 = 210). So you actually make a little more per customer and it is easier to sell $49every7daysthan$200 a month.
         4. If you increase weekly price from $34to$39, this doesn’t look like much, but it is. It is (30/7 * 34 = 145.7143) vs (30/7 * 39 = 167.1429). That’s a $20 increase per month.
         5. If you go with $49 every 7 days, bill the customer on a 28 day billing cycle.
      2. Price of service
         1. If you really want to help people, you have to make it a priority for your customers. Nothing does that better than money. So make sure to increase your prices. Don’t be afraid, charge more.
2. Capacity Levers
   1. Number of showings per week
   2. Number of open houses per week
   3. Duration of showing per week
   4. Duration of open houses per week
   5. How many showing or open houses an agent can do in a week
   6. Limit number of available sessions
      1. Schedule in advance
      2. Offer less popular days/times first
      3. Don’t offer unlimited services
      4. Instead of allowing clients to show up anytime any day of the week. Limit to 3 times a week (M|W|F or T|TH|S). This way you know when customer is supposed to show up and hold them accountable, send them reminders.
   7. Have cancellation fees for no shows ($15)
      1. Tell them you are taking up a spot of someone who wants to come
      2. This is an accountability measure
3. Overhead levers
   1. How much does it cost to service a buyer monthly
   2. How much does it cost to service a seller monthly
   3. Rent
   4. Utilities
   5. Internet
   6. Phone
   7. Office supplies
   8. Marketing
   9. Software
   10. Licenses
   11. Organization fees
   12. EXIT fees
   13. Agent commissions
   14. Events
   15. Conferences
   16. Training

Test to see which one works better §

• Go from ad to phone call
• Go from ad to in-person