How to increase profits by selling more to existing customers


In college I sold used cellphones. Back in those days there was always someone who wanted to sell and someone who wanted to trade up or buy a used phone. My profit on each sale was usually between $20–$50. That of course isn’t much these days but in college it was better than being broke like everyone else.

My problem was that I could sell a ton and still not have enough profit to engage in bigger ventures.(or more like to fund my escapades). All of that changed when I discovered these simple steps that even big companies use.
Continue Reading…

The Ultimate Startup Growth Strategy Guide

ulimate startup growth strategy

Source imgur.com

In 1972 when Bobby Fischer was playing Spassky, he used an opening from the 1800s called The Scotch Game to become World Champion. Everyone gasped because most Americans were using openings and styles that the Russians already knew how to defeat.

One of the reasons it was difficult to beat Bobby Fischer lay in his phronesis.
I’ll explain in a bit but first, a personal example. 

“Your business will not grow bigger than your mind.”
A successful doctor and entrepreneur who I now consider to be a  mentor said that at a STEM workshop I had organized for local teenagers a few years ago.

To be honest, those words bothered me for months.
Surely, there had to be more to business success than behavior.

You see at the time I was a year into my startup but I wasn’t making the money or progress I desired.
On social and in the eyes of the world I should have been content…BUT I was not.
I was attending conferences, reading business books, sleeping 4 hours at night and taking a power nap at 4 p.m.
Very soon I could work 18 hour days and not even feel the effect.

Where was I missing it?

Why did it feel like a merry-go-round?
I was like that guy who is always in the gym but only loses 2 pounds.
Or the site that has millions of visitors but can’t monetize more than an iota of the traffic. Continue Reading…

Wisdom vs Knowledge:How to bulletproof your business from failure

 

Wisdom vs Knowledge:How to bulletproof your business from failure

According to E.W Kenyon; “Only about three percent of the men who go into business for themselves succeed…Only a few who have had the privilege of college and university educations make a real success of life.”

In summary
1 Learn to know when to skip reason
2 Get understanding
3 Make execution a habit

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How To Grow A Startup Without Outside Investors

These are five strategies I have used to grow a startup without outside investors or venture capital.

You should not let the lack of financial capital stop you from starting or growing your startup.

Consulting
When I started out, I reached out to a local restaurant owner and offered by Branding and Graphic design services.
She also needed a website but was not willing to pay my fees.
My goal was to build apps and games but I started out with consulting.
That first deal brought in about $1,500.
The next one brought about $3,000.

Even though I was having to share the money with my friend who is a designer, it gave me the boost I needed.
I did this for about 2 years before I got tired of low paid consulting and freelancing.

Now that my business is established, I still use Consulting as one of my main drivers of growth.
Some forms of consulting are joint ventures where I don’t have to do much work.
If consulting distracts you from working on the core of your business, then stop.

I would also recommend high paid consulting, coaching or advisory services.
Today I can charge $10,000 per month helping one client.
I reserve 2 hours a month per client.
The 2 hours are for one on one consulting even though I probably prepare up to 3 hours for the meeting.
The higher value the client is and the more value you are giving them, the higher your fees can be.

Using Leverage To Grow Your Startup
By leverage, I mean using someone else’s resources.

For example, a friend of mine runs a gaming company.

He is non-technical and has a full-time job at a big corporation.

To grow his startup, he hires developers based on a revenue and equity share arrangement.

He handles the marketing, sales, finances and other non-technical aspects.

His partners get equity and get paid whenever they get revenue from the apps.

The Debt Based Models You Can Use

If you have close to 100% surety that you can return a 4 to 10x return on investment, then private equity is a viable option.

This is basically giving part of your business to someone in exchange for money or resources.

Some software development shops do this.

They will build your app, distribute it and sell it for a piece of the company.

This works out for some founders.

Just make sure both parties understand what the expectations are.

Joint Ventures and using someone else’s resources

Need office space?

Rent some space in another startup’s location.

Successful businesses like Basecamp and Instagram started this way.

and even factories do this.

For example you can use a factory after closing hours in exchange for equity.

This way you don’t have the upfront costs of buying machinery.

Fashion brands do this all the time.

Creating Information Products

Another revenue source that few people know about is information products.

Special reports, eBooks, manuals,

There is a reason Growing Startup has the Focused Growth workshop and books.

You could even say Coudal Ventures’ Field Notes is an example of this.

Moz and Hubspot have both tried these approaches as well.

Businesses like Infusionsoft have workshops and seminars  that bring in good money.

Most importantly it creates goodwill in your marketplace.

The little known secret about information products is that your market will perceive you as an authority if they keep coming to you for knowledge.

If you seek recognition, respect and authority, follow this tip.

Final thoughts

The ways I have described that help you grow a startup without outside investors or venture capital are;

  1. Consulting
  2. Leverage
  3. Joint Ventures:Using other people’s resources
  4. Using Debt
  5. Creating information products

I would advise that you focus on one approach for at least 3 months.

I started off with consulting, then I used joint ventures before I created my own information products.

Looking back I would have used Leverage, Joint Ventures and Information products if I had understood how to use them.

 

 

 

Three things you can do to improve your business today

You can improve your business today with these 3 steps
1 Change who you sell to
2 Change what you sell
3 Automate your lead generation, conversion and retention systems

Thanks for watching.

Please leave a comment below and subscribe to the channel.

What do you see?

At the inauguration of the theme park, the reporter said to the wife of the man who had the vision for the project but had sadly passed away before it was completed, “Your husband would have loved to see the completion of this project.”

The widow laughed and responded “My husband saw this theme park completed a long time ago.”

Look at your website and see 20 million daily visits

Look at your ideas and see your first product

Look at your products and see your first 100,000 customers

Look at your first customers and see the next one million transactions

Look at that business and see an empire of global relevance

Faith is reality.

It’s looking and seeing past the report of the five senses.

It’s living in the reality that with God all things are possible to those of us who believe.

Its the same with people.

You have to look at your spouse, children, family and only see the best.

You have to look at your team and see a world-class workforce.

Others may be not agree but you don’t need anyone else’s opinion.

Faith is enforcing spiritual reality into the physical realm.

Faith is now. Faith is not going to happen. Faith has happened.

As David Oyedepo once said “I was a rich man even before I had a bank account,”

What do you see?

At the inauguration of the theme park, the reporter said to the wife of the man who had the vision for the project but had sadly passed away before it was completed, “Your husband would have loved to see the completion of this project.”

The widow laughed and responded “My husband saw this theme park completed a long time ago.”

Look at your website and see 20 million daily visits

Look at your ideas and see your first product

Look at your products and see your first 100,000 customers

Look at your first customers and see the next one million transactions

Look at that business and see an empire of global relevance

Faith is reality.

It’s looking and seeing past the report of the five senses.

It’s living in the reality that with God all things are possible to those of us who believe.

Its the same with people.

You have to look at your spouse, children, family and only see the best.

You have to look at your team and see a world-class workforce.

Others may be not agree but you don’t need anyone else’s opinion.

Faith is enforcing spiritual reality into the physical realm.

Faith is now. Faith is not going to happen. Faith has happened.

As David Oyedepo once said “I was a rich man even before I had a bank account,”

How to use emotion coupled with logic to attract the right clients

Many experts agree that both emotion and logic can be used to attract paying customers.
The problem is no one really teaches you how to do it.

Depending on that you’re offering, your client may skew in either direction.

For example, higher priced purchases sometimes need a logical justification because the client will have to explain it to his wife.

Your job as a marketer to provide him with both an emotional reason and a logical one.

When I run an Internet Marketing business, some of the first courses I ever sold were to people who had full time jobs but wanted to start a side business.

My research showed that my ideal customer(let’s call him Sam) was a male between the ages of 35 to 42.

Sam had at least 7 years of work experience, was married with kids and made between $30,000 to $48,000 a year.

He was tired of living someone else’s dream and wished he could contribute more.

Sam also wanted flexibility and freedom.

Lastly, he wanted to make enough money so he could quit his job and live a more fulfilling life.

I deduced that Sam’s greatest desires are-

  • 1 Freedom
  • 2 Wealth
  • 3 Contribution

Freedom to do whatever he wanted.

Wealth so he could live in comfort without having to worry about money.

Contribution so that he could turn his ideas into profits and to be appreciated by people around him.

If you take a closer look, out of the three desires, only one of them had to do with material things.

His other two drivers were emotional.

This is the same with your prospects.

They may want food as their physical desire but their emotional desire is satisfaction.

They may want a ride as their physical desire for transportation but their emotional desire may be to save time or to impress their neighbors.

If you are selling a house, make sure you know if they are looking for a home big enough for their children or if they want one just to have a place to stay.

Smart business owners know how to use the physical desire as the bait and the emotional desire as their back up.

There is a marketing proverb that says “People don’t buy because they understand you. They buy because they feel understood.”

My customers emotional desires are……

My customers physical desires are ……

What are the emotional and logical desires of your clients?

I use this same framework today with my high fee clients and students at Growingstartup.com

The way to use this to attract the right customers is to first identify both of the principal reasons for which people buy.

Secondly, appeal to those reasons in your copy, your content strategy and your Advertising.
For example, Nike’s Just Do It mantra is great partly because it preaches action to athletic people who either already think that way or want to.

Any other mental triggers that you have found success with, please share in the comments below.

 

Book review:The Hero And The Outlaw

book review the hero and the outlaw

Purpose for reading-

To understand how to use archetypes to tell better stories. I’m working on a project that involves storytelling so I picked this up.

Content- 3 out of 5.

The quality is good but the book could have been written in 100 pages.

Highlights-the authors have invented a framework that lets you understand what your brand’s story is and how to augment it.

For eg Nike=hero, Oprah Winfrey=sage, Apple=the cool guy etc

Undesirables-

My main contention is that if I didn’t need the insight i would have found the material a little too serious.

Secondly I think some of the justifications were a little too far fetched.

If you own a business and your responsibilities have to do with marketing, branding, advertising or film making, this book is useful.

Check out these book reviews as well.

1 Bloomberg on Bloomberg-Michael Bloomberg

2 Sam Walton-Made In America

3 Amancio Ortega-The Man From Zara

What’s Your Picture Of Your Future?


Everyone needs a picture of the future as it pertains to them. Thats what gets you where no one else has been. It encourages you when challenges come and when ppl around you are thinking about today or yesterday. What is your picture of your future? -David Oyedepo

Special thanks to HowwemadeitinAfrica.com

jeffrey manu how we made it in africa success

Here is an excerpt on how to grow a business in Africa without government contracts.

Do you have effective lead-generation and -conversion systems in place?

In my experience, very few startups answer this question with a yes. Having started my own businesses, I know how hard it is to access and retain new customers. But there are a few steps that I’ve found help in developing a strategy for doing so.

Step 1: Define the market in which you can create the most value

First, identify who wants and is willing to pay for your product. Is your ideal customer a female corporate banker who lives 30km away from her office? Is she actively looking for a brand new vehicle? Would she rather own an SUV or a compact car?

Second, decide on what your message, positioning and differentiation will be. This is about defining what you do, but also what sets you apart from other similar businesses and demonstrates that you know your ideal customer better than they do. Are you the safer option? The cheapest? The one who delivers in 3 days?

Third, find a way to distribute your message and product to them. Some businesses use websites and social media, such as Twitter, YouTube and Facebook, to get their message and products to their customers. Other options are traditional retail outlets in good locations, and physical advertising such as billboards or flyers.

Read the rest at the link below

www.howwemadeitinafrica.com/grow-small-business-africa/55711/

How To Use Direction and Certainty To Convert Prospects Into Buyers

Have you ever seen any advertisement or promotion that offers promises like these “3 easy steps to a better golf swing”—

“7 ways to become a better manager”—

“3 simple negotiation techniques for salespeople”?

Mobile Application developers have found out that by reducing the number of times someone has to tap their screens to get a certain result, the higher the engagement and user retention.

The reason these are so successful is because people will pay for certainty.

The more uncertain someone is about what your product will do for them, the less inclined they will be to buy.

As humans we have a fascination with maps, blueprints, formulas, tips and advice.

We will do almost anything to clear up doubt from our minds.

When someone tells you something you don’t believe, you either go online to find the answer or ask someone else’s opinion.

Successful companies know that their websites, retail space and sales materials should offer step by step instructions.

The mind will always seek the clearer option because it doesn’t want to be in darkness.

Offer step by step instructions to your prospects.

People should know what to do if they want to buy something, speak to someone, try your product or have it delivered.

The simpler it is to find the BUY button, the more sales you will make.

Give them formulas, tips and steps to success.

No one ever bought anything and said “I bought this because it was so difficult to use”.
Everyone brags about things that are easy to use.

What are some other ways you can use certainty in your Marketing to grow your business?

Please comment below.