Is it possible to make a profit quickly in your business? Don’t you need to wait 2 years before you’re paying yourself? In today’s episode, we’re going to talk about how to make a profit quickly when you’re starting a business.
Absolutely, it’s possible. In fact, it’s smart business. It comes down to finding a strategy that works for you.
Watch, listen or read on below …
Ultimately, every business strategy can be boiled down into three core elements:
- Reach a bunch of people who are potential clients.
- Convert the appropriate ones into paying clients.
- Continuously support and nurture your mindset and energetic well-being.
A lot of the time our results come down to the fact that we are sabotaging ourselves. Maybe we’re not doing the things that we need to do, we may be procrastinating and all of those sorts of things.
I truly believe that mindset and energetic well-being need to form part of your core business strategy.
When it comes to key strategic decisions that you need to make to grow your business, most people think their number one job is to get reach. That is, to get in front of as many people as possible. The more people you get in front of, the more sales you will make, right?
But that’s actually not where profitability comes from. Why?
Because reach is the biggest expense in your business.
If you need to reach thousands of people in order to make sales, you will either need to do it through ads or organic strategies. That will either take money or time.
Even if you keep doing it purely through organic strategies, you are either investing your own time, or you are paying for someone else’s. Either way, you’re either paying money, or you are facing an opportunity cost. That’s still a cost.
If you have started a business, and to get your first sale it took reach of 100 people:
Would it be smarter to go out and find another 100 people to make one more sale?
r would it be smarter to focus on your conversion strategies and make another sale with your existing reach?
Now, this might sound counterintuitive, and it might sound like it goes against the grain of what a lot of other experts and marketers out there are telling you.
But ultimately, the higher your conversion rate, the less people you need to reach.
Therefore, the more profitable your business will be. Because you’re not needing to invest as strongly in that most expensive expense – reach.
When people are working with me in startup, a lot of the time they find this really disconcerting. They say: “No. I need to reach more people with my Facebook page. No, I need to reach more people. I need to get more people watching my blogs. I need to have more people visit my website.”
Ultimately, yes, for scalable growth in your business, more reach is an important metric. But when you’re first starting out, you are more likely to be profitable if you focus on your conversion strategies over your reach.
High conversion!?! How do we get this?
The number one factor driving your conversion is connection.
And this is why I think women are so much better at online business and can be so much more successful: just by tapping into our innate strengths. No one connects like the ladies connect.
And we don’t connect over perfection, or the sexy tools we have, or perfect photoshoots and all of those sorts of things.
For most women, we connect over the things that make us human – our periods, nipple chafing from breastfeeding children, feeling frumpy in a dress, whatever it might be.
Those things actually make us connect with each other more deeply than any perfect Prada handbag ever will. Even when we do connect over the Prada handbag, we are quick to reassure everyone that we’re still human. We’re still just like everyone else.
There’s a whole other conversation about needing to be relatable (don’t go there Tash!). Ultimately, by tapping into your capacity to connect, you will be able to improve how much you convert in your business.
So instead of trying to focus on ways that you can reach thousands of people, and then sell to them in “one-to-many” models…
If you want to get to profit quickly, you will be more likely to do so by selling one-to-one and delivering one-to-one.
That is where early profitability shines through, particularly for service-based businesses. By focusing on ways that you can create connection with people, and ways that you can deliver one to one VIP services (and charge appropriately for those VIP services)… you will maximise your profit in startup and get you to profitability faster than any of these high reach, low-cost product strategies.
Think about it – in order to get one lead these days with Facebook ads, you’re looking at least $5 in Facebook ad spend – I’ve even seen $20 and $30 per lead being thrown around. So if it takes 100 leads to make one sale (the rule of 1%), you need to spend at LEAST $500 per sale!
Even if your VIP service is $1,000, that 1% conversion rule means that you would need to spend $500 in ads. Whoops, you’ve instantly halved your potential profit.
Instead, what if you focused on getting out in front of 10 people? What if you did it organically, and had conversations with those 10 people? What are the odds that you’re going to convert one of them into being a paying client with you?
By having that one to one connection, you get to understand them deeply
You get to understand what their challenges are, you get to understand what it is that they’re looking for.
You can present a compelling message and a compelling offer that will help them achieve what is important to them, and also help you make great money.
It’s a no brainer to me, and yet still hundreds of people starting businesses fail to see that this could be the smartest strategy for them.
But that doesn’t have to be you, right? Promise me!
If this sounds really good for you, and you would like to start exploring low-cost reach strategies that are high connection and high conversion, I actually have a free training called The Zero Dollar Facebook Marketing Plan.
In this free training, I show you how you can use free strategies on Facebook to get connected leads and have high-converting sales conversations with them. And, it’s completely free. In this training I’ll be showing you how you can create highly connected reach through Facebook strategies that cost nothing.
Wouldn’t it be worthwhile trying that out? I think it would be worth investing a little bit of your time in order to get that outcome.
Here’s the link to access this free training: tashcorbin.com/zero
Until next time, I cannot WAIT to see you SHINE.
Hi, I’m Tash. And I am so excited that you’re here. As you may have noticed I’m a total business and marketing strategy geek and I absolutely love helping women to create online businesses and courses that are perfectly aligned with THEIR zone of genius, AND that have a super-specific and strong value proposition for their ideal clients. Connect with on social media (links below) and come join the #ladyposse on Facebook.