Consistent and predictable profit is not a wildly complex algebraic equation. It’s about having enough leads, enough daily conversations about hitting sales targets, and being consistent as a decision.
Why does predictability matter? Because predictability is how the business owner can relax and have peace of mind.
Predictability really comes down to future results that you can count on. It’s knowing that you have the right infrastructure systems and people in place, the right processes in place and knowing without a shadow of a doubt that the sales are coming. Thus making sure your cash flows easily without your intervention.
So let’s talk about some steps to creating predictability in your business growth this year. These are areas where you can really reinforce and make some quick decisions that are going to substantially impact this particular area of your business, and most importantly, of your life.
Recurring Revenue Is The Top metric Which Defines How Valuable And Predictable Your Business Is
You should focus on recurring revenue and have a mechanism in place to drive growth every month.
Now, does this happen perfectly all the time? No.
Are there going to be times where you fall underneath that? Yes.
Have we had months where we’re above and months where we’re below? Absolutely right.
But: you have to first have the awareness of the focus and the goal of achieving this. Secondly, you have to put parameters in place to make decisions around it.
Your decision process also needs to include that you have both sides of your sales system dialed in – daily sales and conversion event systems.
There needs to be something happening in your business every single month, which will spur predictable sales that is going to bring in multiple predictable sales. That could be a live launch, that could be an open house, that could be an info session. It could be a webinar, a live and or a blitz, a summit, or a speaking engagement.
It doesn’t matter what you choose as your mechanism for doing this. If I were to look at your planner for the year, does your business have some event that’s happening every month which is going to drive multiple sales?
Profit Predictability Comes From Consistency, and That Consistency Comes From Your Decision To Execute A Monthly Plan For Your Business
Consistency means deciding to do something every month that will help your business grow profitably. This will help us reach our goals. This, however, hinges on having enough volume of qualified leads to make the exercise of doing this conversion event.
There are three buckets of how you can make sure that conversion events are productive and profitable each month
Bucket one: organic lead generation through social selling
This is literally going to the market via social media, sending outbound messages, engaging with people’s content, engaging with people in your ecosystem. This is also you following other accounts and engaging on content, interacting online, and pulling people over into your events
Bucket two: referral marketing
If you do not have an aggressive, dedicated focus on referral marketing in 2022, your business is probably going to be in trouble.
The social media world of advertising and algorithms right now are very unpredictable. Does that mean that you’re not going to be successful with it? No, not at all. It just means that just like anything else, one is always the most dangerous number, you have to have more than one line in the water.
I think this is the most important strategy for 2022. I see so many business owners ignoring what’s right in front of them, which is the 10 or 15 really good relationships with valuable clients. This is important because these clients are those who are invested and have enjoyed good results in the product program or services.
You need to triple down on those relationships.
from there. There’s obviously both direct and indirect ways that you can get consistent referrals in your business. You can do this by directly asking for an introduction, or simply just asking people to share when you’re having a conversion event. Both of which work, and both of which can produce consistent, valuable, and productive results in your business.
Referral marketing has to be systematized and be integrated into the business every day.
Let’s say that you need to close 50 customers this year. If you even have 15 good customers, right now, you can close another 50 by really reinvesting in those relationships you already have, and then slowly padding out. But you need to have a strategy and put some thought and intention into it.
This idea is not magic, it’s really taking the time to sit down and decide how you’re going to make an investment in those relationships. How are you going to add value to them, and then leverage those relationships to lilypad out to get in front of other people’s communities?
Bucket three: advertising
Advertising still works, but you have to know your numbers and you have to do the math all the way through. What is your cost per acquisition from a customer standpoint, and then what is the profitability on that sale?
If you’re running a multi $1,000 program, for a lot of you, even with the cost of leads going up the way that it has, it’s still a profitable sale. You just have to be comfortable riding the rollercoaster of bearing the kind of wild numbers that we’re seeing on the front end right now.
For example, do you have a conversion event on the calendar each month? Are the leads coming in? Are you getting enough leads to make it valuable?
Are you nurturing leads in between these conversion events and carrying them from one conversion event to the next? If you’re not carrying your leads from launch to launch, you’re missing out on a lot of potential customers.
Your Ascension Model Will Dictate Your Growth Into The Seven Figure Per Month Income
What is your ascension model? You need to make it so that the sales you’re making in the business actually create growth, versus the sales just covering the fall off of people that are completing their time with you. When you have an ascension model for your clients to uplevel into (or downsell into) as they complete your program, you are creating more opportunity for income and client retention.
So: take a look at how you can impact the lifetime value of your customer and their desire to keep growing with you.
The Most Important Element Of Building A Predictable And Profitable Business Is Daily Consults
It is shocking and mind blowing to me the number of small businesses that are executing 1000 things tactically throughout the day and week each week. Yet, if I were to ask them, “how many prospects are on the books each day?” It would be like radio silence.
The most important metric that creates predictable profitable growth in a service based business is daily consults.
You can drive daily consults, obviously, manually – posting, emailing, invitations, live streams and your call to action on your content – all of that. And you can also drive daily consults by running consult ads. We do both. We do both consistently.
So we are always running ads that lead people through a funnel that gets them to apply for a consultation. And we are always manually inviting people into consultations.
Predictable, profitable growth is not this wildly complex algebraic equation, it’s having enough leads coming into the business to hit the sales target. It’s enough conversations happening in the business each day or each week to hit the sales target. And it’s being consistent and consistent as a decision.