3 Powerful Business Accelerators Right Under Your Nose: How To Get Momentum In Your Business
As entrepreneurs, we are looking for momentum at every turn. Usually, momentum appears in the form of gross revenue and profit.
It's the symbolic response from the market that your product or service is valuable.
Momentum is like a drug that feeds our creativity and fills our tank with energy for the next day.
This past week I identified three major growth triggers in one of my businesses. They all can stimulate a chain reaction of momentum mojo throughout your business.
No matter where you are in your business ownership journey, these can help you.
To keep things simple I divide my core business operations into three areas. I am a simpleton, after all.
Marketing, Sales and Customer Success.
The first two represent activity in front of the pay wall, the latter is for activity behind the pay wall.
This is significant to understand. Each of these parts of the sales funnel have different metrics that act like pressure valves.
Almost like pistons in an engine. When one pumps, the others respond to create combustion and acceleration.
Boom! I tied in my title with my content.
Each accelerator is a gas pedal that you control.
And each of the core areas of business have their own gas pedals.
So, here we go with the three accelerators you control:
Business Accelerator #1 - Lowering Cost Per Lead
Let's start with marketing. You can divide marketing into a million metrics if you want. Matter of fact, the larger your business gets, the more you'll identify.
But for most small businesses online, if you can control or even lower how much it costs to buy a lead, you can win big.
The reason this is an accelerator is because it allows you to stretch your advertising dollars.
You can get more for your money. This allows you to control larger numbers.
And in sales, the law of large numbers is key. The sales pipeline that has a constant line of leads coming from the marketing funnel wins.
Lowering your CPL contributes to the general cost per acquisition. The CPA is in most cases the most important metric in business.
Because it is the amount you can spend to buy a customer...
...and until you can buy a customer, you don't have a business.
You, my friend, have a marketing slot machine.
"So Josh, how do I lower my cost per lead?"
Great question that has a thousand possible answers. This is something I work on with my inner circle members on very closely.
Usually, CPL falls when messaging is on point, you advertise on the right medium and your copy drives emotion.
Split testing is the task that allows you to master CPL. Do it.
Business Accelerator #2 - Increase Average Transaction Value
Remember, we are talking about business growth and acceleration.
I talk and coach entrepreneurs every day who are "getting sales", but they are selling the wrong offer.
The offer is crucial as it is where value comes from.
Value drives pricing.
Business owners often choose to sell a low priced product that doesn't create enough cash flow as their flagship offer.
That's why most endeavors fail.
They run out of money. Cash flow is oxygen. So think about it, if cash flow is oxygen, where do you think momentum comes from?
Cash. Profit that you can reinvest into more growth. Big injections of cash from your sales funnel will turn the wheels faster.
I know this sounds super logical, but you'd be shocked at how many people undercut themselves on this.
Business owners need to snap out of it.
Now, I understand that you may not be able to charge $10,000 every time you move product.
So you need to know how to leverage volume if that's the case. If you are in a "populist" market that has an infinite number of possible customers, then focus on NEW UNITS SOLD.
Usually this is a B2C strategy. Just don't water down your offer of devalue it with unnecessary low prices.
Create a valuable offer. This is something I do at my masterminds with 90% of my inner circle clients.
Their offer is usually not structured for cash flow or scalability.
If you are in a B2B market, you definitely have an opportunity to create cash flowing offers because, well...
...your client has more money than most consumers. Pretty simple.
If you don't have a high grossing offer right now, let's talk.
Business Accelerator #3 - Decrease Churn (Grow LTV)
If you have an agency business or a SAAS, you've met our nemesis we call churn.
This is the rate at which you are losing monthly recurring customers.
If you don't run a business that has a recurring revenue offer, at some point you'll want one if you have plans to scale.
You see, the "reordering" business model is the most rewarding.
First of all, each time the customer pays you again, it lowers the ultimate CPA.
Second, more cash gets injected into the business.
As you stack these repaying customers, it turns into an accelerating flywheel.
Your recurring revenue will feed more accelerators in your business.
So by lowering your churn rate, you lengthen the amount of time you have cash "onboard" your business.
This is huge.
This revenue works well to supply your cash on hand or further client acquisition funnels.
If you churn rate goes unchecked, you'll find yourself stuck faster than ever.
If you can find a way to control these three accelerators, you can influence the destiny of your business.
That's the point right?
To gain and maintain control in your business is the heart of capitalism.
In my Sales Funnel Mastermind, I work to increase the amount of money my members make in a shorter amount of time.
Wish that could be you?
Book a call with me on this page ASAP. I only allow up to 12 entrepreneurs in my inner circle mastermind per year.
If you are doing 5 or 6-figures, I can get you to 7-figures using my pattern recognition experience.
Get in while you fit in.