Scale your business by 350% in a year: 5 insanely easy stepsUncategorized, 02/02/18
Here’s something that all of us would probably agree with:
Scaling and growing a business is incredibly tough
You’re always looking for ways to increase profits for your business. Maybe you spend too much of your time thinking about how to grow and scale your company. You want to work less and reduce your overhead costs but don’t know how.
Here’s the deal:
There’s a really simple strategy that you can use to scale your business quickly. Personally, this has been the single most effective strategy in scaling all of my businesses…
… a strategy that has been constantly generating six-figure revenues as of today.
In this post today, I’m going to lay out the details of my strategy as well as walk you through it step-by-step. At the end of this post, you’re going to know the EXACT steps and techniques that I did to increase my business growth by 350%.
Just a quick note before we move on…
I’ve included an exclusive complimentary offer to add $100,000 in revenue for your business within 90 days at the end of this post. Do take some time to check it out.
With that being said, let’s get on with the strategy.
The Think Tank Plan
The Think Tank Plan is a strategy that we (the SBPC team) have developed and perfected based on a mixture of our success and failures in previous experiences.
By the end of this strategy, you will:
- Be able to manage and scale your business more effectively
- Increase your business growth, customers and revenue by 5-10x in the coming years
- Become a leader or authority in your niche
Why Is Scaling Company Growth So Important?
Having a well-structured business scaling strategy could literally make or break your company’s success. When we started our RBT gym businesses, we used to have 50% net profits at the beginning of our operations which is absolutely brilliant. But as we started to scale, our profits were actually getting lesser by the day.
What we did next was the key in conquering the challenges that came from our business growth.
Before we move on, there are 3 things that you need to master before you begin to scale your company.
This is an overview of the 3 key masteries to understand before you go on.
Money Mastery – Understanding your cash flow and how to increase it by 10x
Having a complete understanding of how your money flows in and out is crucial in running a business, regardless of whether you’re expanding it or not.
We hired Simone, our general manager, to help us out with our cash flow management.
She helped us with the whys, whens and whats of our spending which led us to have a cash flow that was 10x more than what we originally had.
These are the things that you should look at if you want to achieve a great business growth and cashflow:
Get a good understanding of your margins
You should have your business margins planned out as soon as you can. You can build off your plan from these 3 questions:
- What is my break even point?
- Where can I reduce my costs?
- What is my net profit margin?
We’ll explain these points in detail later on in the article.
Measure key performance indicators (KPIs) that actually matter
You must also have an understanding of what KPIs to track for your money. These are a few examples of what I ask myself to give me a better view of my my KPIs:
- How much do my leads cost?
- What is the percentage of the overall wages for my business?
- What should the percentage of my profits be to sustain my business?
- What are my total expenses to run the business?
Analyse the profitability of the business to plan a solid business growth strategy
You should also spend some time to analyse the profitability of your business to make sure that you are not losing money especially in the long run. Here’s some sample KPIs to include in your analysis:
- What is my return on investment?
- What is my average revenue per customer?
- What is my customer lifetime value and customer acquisition cost?
Figure out your break even points to bring in more revenue
A break even point is where the total revenue of your business is equal to your total costs. After the break even point, you’ll start to make money or profits.
Knowing the break even points of your business is essential in making sure that you get the operations of your business right especially in determining your pricing or rates.
The following graph depicts our break even point and profit curve.
After the break even point, you can clearly see that revenue rises substantially faster than the cost which means that profit is also rising rapidly.
Discover the area of your business that brings in 80% of the revenue
Some areas of your business contribute as much as 80% of your total revenue. For instance, our $97 a week transformation challenge program for our RBT gyms brings in the bulk of our revenue compared to our other programs.
This leads us to the famous 80/20 rule by the famous economist, Pareto.
20% of your customers makes up for 80% of your total revenue – something that is heavily overlooked by business owners everywhere. Simply put, 20% of the people who pay you want to pay you more money.
This is the perfect time to analyse your products or services and find out the core offer of your business that drives in the majority of your incoming cash.
Time Mastery – Achieve more with efficient time management
Understand the productivity of what you do and when you do it to cut down the amount of time spent on work
Ask yourself this question:
Are you really that busy?
The people who make $100,000 a year or $1 million every month all have the same amount of hours in a day, but the end results are very different.
The key here is to make sure that the quality of your tasks are fantastic. You don’t have the luxury to waste your hours on unproductive habits and activities as a business owner.
One of the biggest struggles that business owners have is that they tend to work both on and in the business. What happens when you try to handle every single aspect of your business single-handedly?
You will get burned out. Quickly.
Delegate your tasks to trusted employees. If you don’t have employees under you, outsource your work to quality workers online. As the owner, you need to spend more time working on your business rather than in it, so try to reduce your workload as much as you can.
Having a strong work ethic is excellent, but if you put in too much effort on the wrong stuffs, you will end up in more trouble rather than success.
Construct meaningful KPIs for yourself and your staff to increase productivity and achieve greater end results
You need to maximise every minute of your time that you are working on.
How do I do that?
You do it by setting meaningful KPIs to your daily schedule. Here’s an example of a KPI-optimized schedule:
As you can see, you have 90 minutes to finish a blog post for your website. You can take a break in between the 90 minutes, go for walk, maybe a cup of coffee.
But, you must make sure that by the end of that 90 minutes, your blog post is done and dusted.
What happens when you go over the 90 minutes and drag on with your tasks?
You start to become unproductive!
This principle also applies to how you manage your staffs’ schedules. The truth is, the traditional way of scheduling your staffs’ work will result in reduced productivity as well as a poor end result. Business owners don’t even know that they are the ones who are set their staffs up for failure.
How can I fix that?
Start off by implementing meaningful KPIs to every hour of the workday for your staffs. You could come up with goals such as 1 1500-word article needs to be written by your editorial team from 9am-12pm. Make sure that every hour counts and has a meaning to it.
Business owners also make another major mistake which negatively affects productivity among employees. That mistake is leaving major tasks and decisions to be made at the end of the day.
Research has shown that the first 3 hours of work is the best time to achieve maximum productivity. The first 3 hours is where you are the most innovative, creative and focused, not at the end of the day.
What all of us have been doing all this while is completely wrong!
Fix this situation by moving high-quality tasks and major decisions to be done at the start of the day. As the day goes on, we start to get decision fatigue which leads to poor decisions and end results. This technique will help us to prevent that thus leading to greater productivity and better achievements overall.
Structure your day and make sure that your daily time markers are correct to become more productive
All of us wake up with a set of habits every day. You could be up in the morning, head in the shower, brush your teeth, have a coffee and head to work. These are some examples of daily time markers in our lives.
We do these things subconsciously, which is why it is so powerful in creating a more productive you.
Unfortunately, for most of us we haven’t designed our daily time markers for optimal success.
Here’s the deal:
You can and should make a conscious effort to become more productive.
Want to know how simple it is?
Write the things that you want to do in a piece of paper and practice it for 90 days straight until it becomes your new subconscious habit.
Voila! You are now more productive.
You should also do this with your work routine. Let’s say that sales is the biggest issue that you have for your business right now.
Instead of waiting till the end of the day to hit those calls, do it right when you arrive at work! Going back to the decision fatigue comment, it makes complete sense for you to tackle your problems at the start of the day when you are in the best form of your life.
Once you start feeling fatigued, go have your lunch and take a well-deserved break. When you come back feeling energized, have a go at solving your problems once again!
Before we move on…
Talking about sales, a common KPI for business owners to implement on their sales staffs is to have a set amount of calls each day.
Let me tell you why this is a loss to the business:
Calls don’t mean a damn thing! Over here at RBT, we use conversations as a KPI instead of calls.
Having a conversation actually means something. A conversation builds rapport with the potential customer, a call does not.
I set a target of 4 conversations in a day for my sales team. I don’t mind if it takes them an hour or 10 hours, just have 4 conversations and they’re good – they don’t even need to be sales!
Well, nobody wants to work for 10 hours that’s for sure which is what motivates my team to be more productive and efficient in their work.
The moral of this story is, manage things that actually have an outcome. Don’t waste your time on fluff KPIs, you have more important things to achieve.
Time chunking to save time and efforts
Put every aspect of your business into chunks. For instance, incorporate actual sales calls into your sales training. Put your content creation into your marketing pieces.
This saves time and energy, as well as helping with organisation and effectiveness in the long run.
Here’s a brand new concept that may be hard for you to take in:
The faster that you can NOT be the lynchpin in your business, the faster your business will grow.
Did I get that wrong? Definitely not.
Genius-level tasks are tasks that are way out of your reach, skill and experience-wise.
For instance, if you are not a technical founder, then you should get out of the technical side of your business and get someone skilled to do it for you. If you have enough money, promote your part-time employees to full-time employees.
You will reach a point in your business where YOU become the obstacle in your company’s growth.
At that point, you will need to sacrifice two things: your ego and your money.
You will need to hire someone better than you to help you scale your business. If they are not better than you, then make them better than you because that is your job as a leader; to make your people better.
Hire a few skilled people to help with your genius-level tasks and position them in the marketplace as people who are better than you. Then, you will have yourself a well-oiled system – a system that is capable of scaling your business exponentially.
Delivery Mastery – The Art Of Gaining More Loyal Customers For Your Business
Actually deliver what you sell
Many businesses do the same mistake of blatantly OVER-PROMISING what they can offer.
Here’s an example:
Banter aside, it is crucial to never take on what you can’t do. Your reputation and trust is on the line here.
Reduce your complaints to virtually zero and gain more customers with this handy technique
Most people over-promise and under-deliver. You want to under-promise and over-deliver. That’s what you need to do all the time.
This is not just limited to customers either, give your employees some love too.
Here’s a list of things to do that can help you over-deliver:
- Give unexpected bonuses and incentives to your employees
- Include small gifts when delivering the final product to your customers
- Include hand-written thank you notes in your product packaging
- Show appreciation to your employees with a surprise celebration on their birthdays with the whole team
These are all small gestures that go a long way in building reputation and trust in your business.
Fact: you get raving fans from over-delivery, NOT price
It’s been quite a long read so far, take a break and come back to this page in a while 🙂
Where to focus to scale your business
Focus on authority positioning to double your revenue
Here’s what I harp upon all the time; be a generalist and you lose, be a specialist and you win.
Do you have a business that focuses on a specific niche? If you don’t you need to identify one NOW.
You can literally double your profit margin by specializing in a niche without a significant change in your costs. What happens when your profit margin grows? Your business grows.
The infographic below perfectly explains why you should never, ever be a generalist.
Now that you have a clear understanding on the 3 things that you need to master, we’ll head on with the big reveal.
The 5 Simple Steps To Grow Your Business By 350%
There’s only 5 key metrics that you need to improve to increase your business growth by 3.5 times in just under a year.
These are the 5 factors:
This is what you need to do to these key metrics to triple your business growth:
Increase everything by 30%
It’s that simple. Here’s a chart of how your key metrics would look like with a 30% improvement.
It’s that easy.
As you can see from the chart above, a small 10% improvement in the 5 key metrics brought in an extra $75,000 in profit.
A 30% improvement would net an additional $339,116 in profit or more than 350% of the original profit, which is absolutely massive in terms of your business’ growth.
That’s total bullsh*t, Travis. You’re just calculating some imaginary numbers to fool us.
Not really. 30% is a completely achievable figure and you can do it in less than a year. I built 14 gyms and generated over $450,000 in a month with this EXACT strategy.
Here’s the best part:
In the following section, I’m going to show you a list of INCREDIBLY effective techniques to improve your key metrics, step-by-step.
Optimising and scaling your profit margins
The photo above is a detailed (but not definitive) list of things to consider while calculating your margins.
Ask yourself critical questions to get a better overview of how to improve your margins. Some examples include:
- Can I find more cost-effective marketing options?
- Am I spending too much on the back-end of my website?
- Am I spending too much on wages relative to my revenue?
At the very least, you need to have these 4 questions answered which will help you tremendously in optimising your profit margins:
- When is my break even point?
- Where and how can I reduce my costs?
- When will I make my first $100,000 in profits?
- When will I make my first $200,000 in profits?
If you’ve already made $200,000, aim bigger!
- When will I make my first $1,000,000 in profits?
These are 4 simple but extremely effective tips to actually improve your profit margins by 30%.
Tips and techniques to improve your conversion rates
We know our margins now, and we’re getting more leads.
However, all of that is not going to grow your business without a good conversion rate.
The photo above are some of the things that we go through to improve our conversion rates. For us at RBT, test and measure is one of our favourite conversion optimisation techniques.
Here’s a test strategy that we did for our weekly packages:
We bumped up our $97 a week packages to $127 per week. However, we offered a 3 month discount for clients who subscribed to the annual package. We were essentially offering a buy 9 month, free 3 months deal, which when you work it out is exactly the same as our original $97 a week package – with a spin on it.
Running a business is always a test and measure. There will always be changes in how you run your operations in pursuit of success. Sure, the foundations of your strategy is more or less the same but using the exact same template for different businesses is definitely a recipe for disaster.
You need to adapt to be the best.
Sales process flow-chart
The above is a sample of what a sales process flow-chart looks like.
I know that 43% of people who see my ads click on it, and 54% of people who signed up through my landing page turns into actual paying customers.
This flow-chart is incredibly important in knowing which part of the funnel is slowing your scaling efforts.
For instance, I want to improve my landing page opt-in rates. How do I do that?
- Write a better copy for my landing page that includes value-packed CTAs to promote readers to take action
- Design a better landing page or hire someone to take care of the UI/UX aspect of the landing page to promote conversions
- Include an irresistible offer to persuade readers to take action
You can have a look at a blog post that we did recently which covered the entirety of creating an offer that is guaranteed to bring in leads and sales to your business.
For convenience though, I’ve included an infographic that aptly describes the elements of an irresistible offer.
Improving your average sales to attain greater revenue
If I could sum this section in a phrase, it would be: high-ticket offers.
Remember the 80/20 rule? 20% of your customers make up for 80% of your total revenue.
You’re literally leaving money on the table by not crafting a high-ticket product or offer. That’s right, 20% of your customers are willing to fork out insane money for premium products.
So, why are you not taking advantage of that?
If you don’t do it now, someone’s going to take that opportunity away from you. You don’t want that to happen, do you?
Innovate an exclusive product and up-sell that offer that to your most valuable customers. You don’t have to worry about being too expensive or costly in regards to your premium product.
If you can provide an amazing service (remember the over-delivery part?) as well as providing the experience and outcome that is expected of a premium product, there is absolutely no reason for you to shy down on your offers.
There are other factors for you to work on in order to improve your average sales, but up-selling or even cross-selling high-ticket products is the single most effective way to increase your average sales.
I have included a photo below to help you with determining what to manipulate in improving your average sales.
The grand-daddy of all business operations and something that many businesses struggle at.
Organic reach on Facebook is dead.
The way to build up your brand on Facebook is through well-optimised Facebook ads. Don’t believe me? Have a look at Coca-Cola’s Facebook page.
That’s right. Coke is failing to crack 1,000 likes on a post despite having over 100 million likes!
So, what should you do?
- Read up a lot of material on Facebook advertising. Facebook has their very own advertising course for their platform, which is all you need basically to run great ads.
- Catch up with the latest Facebook trends and updates. Head on over to HubSpot or Kissmetrics to get actual insights from people who are knowledgeable in Facebook marketing.
- Actually take a shot at running your ads on small budgets monthly. I’d suggest a maximum ad spend of $10 daily to get a good feel of the editor and test your ad’s effectiveness.
- This advice also applies to AdWords. The only difference between these two platforms is shown in the image below.
Contrary to popular belief, PR is still not dead.
I am a regular columnist for Women’s Health & Fitness Magazine over here in Australia and that’s been generating a good amount of buzz and hype for my RBT gyms.
If you can’t do it yourself, hire a PR firm to do it. It still works and it’s going to bring a good amount of exposure and leads to your business, particularly if you are in the service industry.
Now, the key to any sorts of marketing is to include the correct call-to-actions.
For instance, we ran promotional offers on brochures and in magazines nationwide for our gyms. The call-to-action was simple yet incredibly effective.
I included a mobile number in the promotions and anyone who was interested could just text the number and get a response from my sales team swiftly. That strategy brought in a significant amount of leads who unsurprisingly turned into loyal long-term customers.
Number of transactions
Call cycling is simply the act of cycling through your customer base and giving them a call for up-sells.
Call them up and have a cracking conversation to go with it. At the end of the call, tell them about a special premium offer that you’ve set up exclusively for loyal/VIP customers. Heck, you don’t even need to call to execute this strategy.
You could just post the irresistible offers on a special Facebook group for your clients and watch them come to you.
Here’s a killer strategy:
Plan a VIP night or a special seminar for your customers only. Then, let them know that they can bring one and only one friend along to the event.
Now, you’re not only able to sell your products to your clients, but you also have access to a room of potential new clients – just what you need to scale your business effectively.
All of these strategies boil down to one very important concept – the law of reciprocity.
When you over-deliver, you’re giving your customers than what they expect. Naturally, they’re going to feel that they owe you something and what does that translate into?
More sales and more business.
Thank you for taking the time to read this (very lengthy) article on how to scale your business by 350% in 5 simple steps. As promised, here’s a special offer just for you.
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