As a coach to entrepreneurs I’m often asked about the things I focus on. My number one focus is to teach people to be Optimal Performing Entrepreneurs. What I mean by that is that we work on them as much as we work on the business. My belief is that if you build an incredibly successful business, but your family and relationships are falling apart, you have poor health, and you’re not happy… then you’re not a success.
There’s a lot more to being a successful entrepreneur than just building a great business.
But in this article I want to share the “Four Areas of Focus” that all business coaches target to help their clients build successful businesses.
I’m not going to go through the specific strategies to accomplish our desired out comes here. You can watch my Business Mastery Masterclass to learn some of these strategies and immediately implement them at no cost.
Here I will show you some examples of the impact these strategies will have on your business.
The first area of focus is to increase the number of leads your business generates. We do this by implementing different lead generation techniques.
Let’s look at the impact creating more leads can have:
Let’s assume that your business is generating 100 leads per month which is resulting in $10,000 per month in revenue.
100 Leads = $10,000 Revenue
If you double the leads to 200 and everything else stays the same, you will double your revenue to $20,000.
200 Leads = $20,000 Revenue
This is simple math. If your conversion rate and everything else remain the same, by doubling the number of leads you generate, you will double your revenue. It’s a matter of implementing the lead generation techniques that will double your leads.
The next step is to improve your lead conversion process.
The key to successful marketing and increasing your conversion rate is that you must be able to enter the conversation taking place in the head of your prospects. Another way to look at it is to be able to address the number one question on your prospects mind at just the right time.
The conversation that’s taking place in every prospects mind revolves around two major points:
- There’s a problem they have and don’t want.
- There’s a result they want but don’t have.
How are you going to improve your lead conversion process? By having a better sales message that adds value to your prospect. By having your BIG DOMINO and THREE SECRETS. By understanding and implementing the CONVERSION EQUATION (Hook, Story, Offer).
Let’s look at the impact it will have when you improve your conversion rate:
Your business is currently generating $10,000 per month on 100 leads at a 20% conversion rate.
In the last step we doubled the leads to 200, which doubled the revenue to $20,000 per month.
In this step, if we double the conversions to 40%, we will double the revenue again to $40,000 per month.
Increase Your Prices
Most small businesses have not raised their prices since… NEVER!
They’re scared to death that ANY price increase will lead to a mass exodus of all their customers.
In the example that we’ve been using above, the price of the product or service is $500. If you decided to increase the price by 10%, the new price is $550.
First, will that small of an increase really lead to a loss of customers?
There may be a few that leave, but they are most likely your biggest price shoppers that have no loyalty to your business.
With this new price you are making an additional $50… All of which is PROFIT!
For the ease of calculation, let’s say that from your original price of $500, $250 of that was profit.
By increasing your leads to 200 per month and increasing your conversion rate to 40%, you have $40,000 per month in revenue, which generates $20,000 in profit.
This calculation is based on 80 purchases: 200 leads @ 40% conversion = 80
80 X $500 = $40,000 per month, which equals $20,000 profit
By increasing your price by $50, your new profit is $300. At $300 profit, you only need to sell 67 products rather than 80 to make the $20,000 in profit. You would have to lose nearly 17% of your customers just to break even, and that’s not g to happen.
If you didn’t lose any of your customer over the price increase that would equate to an additional $4,000 per month in profit!
I recently did a Facebook live where I talked about these “4 Areas of Focus.” Under this topic of ‘Increased Prices,’ I also gave the option of adding a new High Ticket Offer. If you’d like to hear me talk about these scenarios, plus talk about impact of a high ticket offer, you can watch the replay here:
Improve Your Retention
There are a number of different strategies we look at for improving retention. These also play into The Buyers Journey which I talk about in the Business Mastery Masterclass.
One simple way to improve your retention is through a continuity program.
A continuity program is a subscription or membership program. Examples of this are newsletters, coaching programs, Netflix, Clickfunnels, or anything that you pay regularly on to be a member.
If we look at an example of a continuity program we can see the benefits.
If you are to create an offer that you charge $97 per month and 8 people per month join, that’s an increase of $776 per month.
As you can see in these examples, you can make some significant improvements to the success of your business by focusing on these four areas:
- Increase the Number of Leads Generated
- Improve Your Lead Conversion Process
- Increase Your Prices, and
- Improve Your Retention
My question for you is this, do you want me to keep doing this work for you and show you how to implement these strategies, or do you want me to go do this for your competitors?
If you’d like to see if you qualify to work with me and if you see it as a good fit, let’s set up a time to have a conversation. Send an email to firstname.lastname@example.org with the subject line, “Application.”
Discover How to Double Your Revenue in Just 5 Moves: https://jeffheggie.com/businessmastery