Business Advice: Key Takeaways
Speaker Background
- 13 years in business.
- Sold nine companies.
- Last sale was for $46.2 million.
- Current portfolio: $17 million/month at acquisitions.com.
Key Business Insights
1. Anchoring in Pricing
- Offer an extremely expensive product you don’t plan to sell.
- This high anchor helps sell more of your core offer.
- Example: A friend increased profits by adding a higher-priced version of his product.
2. Importance of Advertising
- Many people are unaware of your existence.
- Continuous advertising is crucial; consumers need constant reminders.
- Repetition strengthens brand presence.
3. Advertising Focus
- Until reaching $100,000/month, focus solely on advertising.
- Advertising brings iterations for product improvement.
- Once established, focus on fixing product issues.
4. Narrow Focus
- Under $1 million/year, focus on one channel, one avatar, one product.
- Avoid spreading efforts too thin.
5. Starting for Free
- Always begin by offering services for free to build testimonials and referrals.
- Progress from free to charging incrementally.
6. Proof Over Promise
- Proof is more persuasive than promise.
- Capture proof effectively: recent, visual, high volume, and relatable.
7. Raising Prices
- Often increases profit despite fewer sales.
- Understand price elasticity.
- Consider impact on conversion rates.
8. Customer Feedback
- Solve business problems by talking to customers.
- They provide essential feedback on product and marketing.
- Engage even with those who didn’t buy to understand gaps.
9. Sales Call Framework (CLOSER)
- Clarify why they’re interested.
- Label their problem.
- Overview past attempts and present pain.
- Sell the ultimate benefit (vacation, not plane flight).
- Explain concerns away.
- Reinforce the buying decision.
10. Scale Existing Success
- Focus on amplifying what already works.
- Identify constraints preventing scaling and solve them first.
11. Understanding Business Stress
- Acknowledge stress as an inherent part of business.
- Recognize that growth, stagnation, and decline all have stress.
12. Billing and Customer Loyalty
- Longer billing cycles can improve retention.
- Consider offering prepaid options with incentives.
13. Utilize "Sawdust"
- Create additional revenue streams from existing resources.
- Find creative ways to use excess capacity.
14. Support Your Sales Team
- Equip them with content to handle objections.
- Consider merging sales and marketing roles for better synergy.
15. Three Key Business Roles
- Acquisition (customers), Delivery (products/services), Operations (support functions).
- Each role should have a clear leader.
16. Hiring Best Practices
- Ensure new hires raise the average standard of the team.
- In interviews, learn from candidates to assess their contribution to the team.
17. Addressing Performance Issues
- Five reasons for non-performance: not knowing expectations, lack of skills, timing issues, lack of motivation, or obstacles.
18. Tackling the Unknown
- Focus on solving the most impactful unknowns in the business.
- Hard work involves confronting and solving the unfamiliar.
19. Empowering Teams
- The person with the highest standards should lead.
- Promote individuals who elevate the team’s performance.
20. Learning and Adaptation
- Fastest learners adapt behaviors in response to consistent stimuli.
- Implement lessons from content and experiences to truly learn.
Additional Insights
- High Standards: Leadership should demand high-quality output.
- Customer Satisfaction: Last purchase often dictates satisfaction.
- Investment in People: Autonomy and investment foster loyalty and growth.
Note: This is a condensed version of key lessons from a comprehensive business advice session.