How To Build Lasting Value In Your Business
How do you build value in your business, and by value, I mean how do you go about making sure that your business survives, not just in the short term but in the long run?
Hello everyone, join me on this episode of the virtual entrepreneur, I am super excited to have you join me today. If you're new to this podcast, a very warm welcome. I am your host, herbert, innocent, and today we're going to be talking about how to build value in your business.
Now, if you're new to this podcast, in the last few episodes we had been talking about the different mindsets that, and the different mindsets, as well as the different principles, right success, and business principles that all entrepreneurs know and use but somehow the successful ones use them different than other intrapreneurs who go about and struggle and struggle, and ultimately close down their business. Right.
So if you didn't get a chance to listen to that episode I want you to go and listen to that episode.
There is about two or three episodes, And you're gonna get a tonne of value from that, and you just pick up a few tips that will open your mind to things that you can do in your business that you didn't think about before and you can find the notes, those episodes at hermit marketing help.com that is h e r b e RT marketing help.com
And with that said, This podcast is the podcast for entrepreneurs like yourself who see their business as a vehicle for change. Right.
We live in a world today that with just enough resources, we can influence our environment and build communities that supports each other and build upon each other to make a much more fuller and richer life experience, without going too much into those.
Let's jump into what today's episode is about and the aim for this episode is you walk out of here with tonnes of values and tonnes of how-to things to consider for your business. Things that will really help and even maybe increase the likelihood that your business could succeed if there was another change,
just a very simple example if you look at today, right, a lot of businesses were based on a lot of business that has survived in the past were businesses that depended on having their doors wide open for people to walk in and burned by but, you know, in the last 24 months on the last 12 - 18 months, you know, the climate just changed, businesses that we've had, we survived for so we're now you know being threatened because they couldn't keep their doors open to keep doing business, and there are things those businesses could have done that would have guaranteed that they thrive. Right.
And so, it's time we start rethinking how we go about doing businesses because our business landscape is literally changing it's shifting beneath us.
This isn't a new phenomenon, it says been happening over and over and over, the economy has crashed several times, you know, things go up and down changes happen, new competitions come along, new technology happens, You know the website came along and transformed our business happen, and you know with credit cards we can are purchasing the land, a lot of things are going to continue to change.
And so for us intrapreneurs. One of the things that I'm noticing is that successful entrepreneurs don't depend on one thing, they don't put their eggs in one basket, because if that basket shakes or if that basket falls, then everything cracks. So what do you want to do is you want to make sure that you have multiple baskets all in different places, and when one breaks you can concentrate on the ones that aren't broken yet.
Right. So, with that said, let's jump to today's ideas we're going to talk about business, building value in your business.
What I mean is, it's a revenue stream, right, you may be selling something online but selling online and offline means there are two ways you're getting revenue and what that means as well is, you're a much higher chance of surviving should one of those things get affected, but if you only have one thing online, and something happens, then you know you news because you didn't have control, you don't have much control they're the same as getting customers.
If you're using a very specific one type of social media platform to get all your clients should one thing change, a new update in that platform, you could find yourself losing a tonne of clients a tonne of customers. So you want to make sure that you've been diverse ways of getting a tonne of clients. So now I've talked about one is how you're selling a product and another is how you're getting a client, right, so that's just, those are just two. Another thing is payment methods, right there are stories of entrepreneurs who have their credit cards shut down.
Now, look, if your transactions are coming along and your console shuts down. It means your business is gonna hold up you're gonna have to wait until everything you know reopens up so you want to make sure that you've a diverse way of getting paid so that if one method goes down, you're still getting paid,
Right, you are not being held back because technology happens, and we can't build our entire business within another business look if you're building your entire business if your business is the website and that is all there is to it, then you don't own a business because that website provider if they go under with you, they go under with you, they take you with them.
Right. If your business is on a particular platform, and this is dependent on that platform and that platform only should something happens, then everything goes under and you go under with it.
So our goal is to be able to build our business, but not depend on one thing, right, We don't depend, our information to just be on podcasts, we want podcasts as well as blogs, we don't want our information to just be videos, we want videos, audios written, we know, pictures you want all these because are always, everywhere in different spaces and by being able to use that it means if one person goes down, we are still up and running,
we just concentrate or focus on the remaining areas, right, and this is ultimately what gives us the edge, you know, the agility to navigate this shifting landscape, right, because if you're not agile, if you're not, if we don't have the ability to quickly adapt to new circumstances, then our businesses are doomed to fail why because changes are inevitable, they will happen sooner or later they will happen.
Right, no matter how big a giant is sooner or later change will happen, life is change essentially. So with that said, that's the first thing there essentially so the first thing is revenue streams.
Now when it comes to revenue streams. I want you to think, three things the first thing is you have a the high ticket back end, offer. And this usually does is, this is usually something you sell after the customer the client has already bought, and what this does is it significantly boosts boost up your sales because once the client purchases once they're much more likely to purchase the second time.
The second sale is so much easier than the first one. And the best part is you don't have to pay for the second cost of customer acquisition, you have the same client, and that's such a powerful way to leverage that. Right, so that already boosts up your margins significantly, but that's just one way, right. Another way is reoccurring revenue.
Now the difference between that method I talked earlier which is the second offer versus the recurring revenue is that this their reoccurring revenue is gonna keep going on on a monthly basis, and this gives you a very nicely steady passive income, right. So your business is gonna continue having money, even if you don't sell and this is really good because some days, things just go down and you don't sell.
And so having the recurring revenue means you're still serving those clients that you have and it go and it does wonder to your business, it does so much more wonder.
So with that said, now we have two things with recurring revenue and your back-end offer. Right, but we don't just stop there.
Now, I call that thing we, the back end, offer because this is when you give them a one-time offer kind of thing or like you know because you've made a purchase, you'd like to make you this one time offer that's just available here right now, right, and what that means is they can take advantage of that but if we go back to the website, the prices may be different but that offer is only because they made a purchase.
That's why it's called the back-end offer, right. So that's just one
process, but it goes even better.
Right, so you can take that concept of back-end offer and then figure out what problem does your offer, create, and then solve that problem with another product, and that becomes the next step. So, you know.
And this all goes and plays into the area of packaging offers, right, there are methods and different ways you can go about packaging offers, but essentially what this means is if you're selling a single product.
If you can find a way to sell the next product. After that, what will definitely what that will mean for your ideal prospect is that they can come back to you to purchase. So for example, someone bought a juicer or something to make juice right.
They bought that and maybe you sold them that and then you sold them a warranty for two years, as the one time offer warranty right in case something happens. So they're very partial they have all this thing now that juicer is going to create a problem. They have a beautiful juicer. Now they need the ingredients, you can sell them the ingredients but if you don't have the ingredients you can sell them juice recipes. Right.
And there you go now you have a nice beautiful juice recipe, you can even sell them a course on all these different juice recipes or they can create an auto even sell.
Now look what you've done, you've taken this product which was costing you to sell because of the cost of customer acquisition, which is something that so many entrepreneurs don't understand, essentially when you have a product, and you want to get the marketplace to sell it, it's going to cost you money to get to the clients to get all those customers to come to you to buy it cost you money. Just because you're not advertising it doesn't mean doesn't cost, it's going to cost you.
You say they're gonna cost you a tonne of money, or a tonne of time. Right, so I know the other. And if your business once is doing, it's meant to scale, it's gonna cost you a tonne of money, whether you advertise or not, it's always gonna cost you money, either have to hire me, a marketing team, sales team to sell those products, that's a cost of customer acquisition right all those build up into those. Right, so sorry that happened cost of sale and cost of customer acquisition and all those are the big numbers of where they are.
The idea here is these earliest costs of getting a customer from a prospect where they don't know you, to acquire a customer who is purchasing from me now being able to sell them extra means that you benefit a lot from that one sale. Right. So I touch a lot of ideas there and I've danced around with those ideas of explaining to you what this means to you. But what this means ultimately is this. If you have different ways at which, if you have different things that you're selling, it means that you have the opportunity to sell more. Right.
If this one times offers an obvious, you have the opportunity to sell more to one client, so instead of selling a 299 product, or a 100 or $100 coaching course, or whatever it is that you're selling maybe one time coaching a package, you can sell the back end, offer, and will easily boost up your sales significantly. That's the first thing the second thing is if you have reoccurring payments while that means is it will secure you with your clients, right, meaning that each time you get a client you are adding this compound effect, right.
So if 50 per month. Now you have 100 per month, that's coming in, activate.
That's coming to you. Each month, that you don't have to do anything to get that you already have the packages they just purchase and everything goes on, right, and each time we get new clients, it just builds up, lovely, wonderful little package, right, with that said, next thing then becomes, where you're getting clients from right, you know, and then diversifying, as well, you won't get YouTube, Facebook, Twitter, Instagram, Pinterest, Google search, all these wonderful social media platforms and you want to diversify.
Right. Then the next thing becomes, well, what are you what are your methods of sales, I selling just online or selling online plus offline I sell affiliate products. Right. And so by diversifying means that if one revenue stream is suffering because remember the business is having one production line is having one revenue stream.
Right, you could have a business when you combine all these several revenue streams to keep your business growing and providing more services regardless of the changes in the marketplace.
Business is a game that requires and rewards you for staying longer in the game, not finishing not winning but staying longer in the game, and they were the person who can keep playing until all the players have dropped out, that's the winner
to win is to keep playing regardless of the changes in the marketplace, regarding changes in the economics, regardless of changes in our world.
The Greek godless of changes in the industry for as long as you can keep playing, you're essentially successful on each increment, and this is what I am learning about business and I think it's a very powerful mindset for us, entrepreneurs who want to go about and really go and create those, so if you don't have any particular revenue stream or diversified, or you haven't diversified methods of getting clients, selling your production distributing your product, then you may consider this, right, you may even have mentioned is, right, they may say, or they may not.
But the idea here is some of these things don't cost you to put there. Let me just close to a bit of time a little bit of money, but they really really go a long way in making sure that you have several types of revenue streams, because some clients won't just stop at buying one thing they'll buy multiple. Right.
And so some very good tools about this will be to look at how other businesses, combining different types of revenue streams. And just because you have a package that has different types of pricing, doesn't mean you have several different types of revenue streams you only have one. Right.
You want people to purchase two completely different things from your company. With that said, thank you so much for tuning in on this episode I hope you got a tonne of value. My aim was to give you this information so that you're able to sit down and look at your business and decide where the weaknesses and where the strengths and how can you reinforce it, right, so that it's much much stronger regardless of the changes.
With that said, you can find the notes for this episode at the verge, at the website habit marketing help.com And if you have any question you can ask me over there. Other than that, I will talk to you on our next episode of the virtual entrepreneur.
And as always, I want to thank you and have a wonderful evening.