“Sales are the lifeblood of your business” is a very commonly used phrase. And it is very true.
You only have to look at the stats:
In the UK
- 20% of businesses fail in the first year
- 50% of businesses fail by the fifth year
In the US (according to the SBA small business association)
- 30% of businesses fail within 2 years
- 50% of businesses fail within 5 years.
That can seem pretty gloomy when starting out. Scary even. especially when a lot of people are giving up their stable income and jobs for the privelege.
There are lots of reasons or even ‘excuses’ sometimes as to why businesses fail. This post is too short to go into them all.
However, nearly always it is a lack of business coming in which is the issue, coupled with costs that can’t be met quickly enough. So the inevitable happens. You lose your business.
Barefoot Business Wants To Reverse This Trend
and the best way to do this? Be profitable to the point where you are beyond the ‘hits’ in business. Make yourself almost invulnerable!
I know exactly it feels to lose a business. I managed to lose my business and home in one fail swoop 3 months apart.
“I can put this down to one single reason!”
I wasn’t generating enough business to pay my overheads when a recession hit. And when this happens people you owe money to, like suppliers (vendors) and mortgage companies suddenly lose their sense of humour and come at you all guns blazing…
…it is not a nice place to be I promise you!
“Normal Lead Generation”
This is where creativity comes into it’s own.
We are all programmed to believe:
- We have to advertise in some way to expand
- We have to network like mad to grow our business
- and many other things (i’ll let you fill in the blanks)
This may work sometimes.
However it is often not as effective as we like to think.
If you count your person hours (trying to be PC here!), you will often find the return on your time investment is not great.
Likewise with some form of advertising. Unless you have a budget of millions to grow a brand, you must have a good return on your advertising investment to make it viable and make you profitable.
Exactly the same if you employ sales people. How much ROI are you getting on each sale?
The problem is, we often know what to do, or we would be doing it, right?
Power Sales Deals
The case for Power Deals – The numbers…
This is where Power Deals can come into their own.
Allow me to explain if I may.
If you know (counting time as well) that your costs to make a sale for your product are say 25% of the sale and your product or costs of service are 50%, you are making only 25% profit on each sale.
Please bare with me if you eyes are starting to glaze over….
This means on a $300 product you are making $75. Not bad.
You know (counting time as well) that your costs to make a sale for your product are say 15% of the sale and your product or costs of service are 50%. You are now making only 35% profit on each sale.
This is where things start to get exciting…
This means on a $300 product you are now making $105.
… this is a lot more!
This is the same benefit as rasing your prices by 40% overnight for this kind of endorsed business.
What would happen to your business if you could raise your profit by 40% overnight?
Would that bring in much more money? Would you do this if you knew how?
My guess is yes!
So HOW do you do this?
You Align With A Power Player.
A power player is an authority or influencer who has an audience already. People already know, like and trust them.
You simply cut a deal with them to endorse and promote you for a finder’s fee.
Get Your Creative Business Head On!
You are looking for people/niches who can transform your business. People who can generate consistent repeat new business and ideally have authroity and influence.
This is the fun part. Get a pen and piece of paper (yes, a real pen and paper, it can be more creative)
Read below. Then…
…let your mind run wild. Think of anything and everything, everyone, who might benefit from what you offer. Wirte everything down you can think of, even if you think it is stupid (stupid is often the link to a genius idea!).
Brainstorm with someone who is outside of your niche (our Facebook group is great for this)
So now read below…
- How many aligned industries need what you offer?
- How many of your suppliers need what you offer that can you can incentivise for a finder’s or introduction fee?
- How many authors have written books about your niche, but have no product or service to offer?
- How many people are there in your niche in different areas where you can do reciprocal endorsements?
People Love These Deals
I am not exaggerating when I say people are crying out for these deals. You are literally putting cash into their pocket. They will loooooove you for it!
There are things you need to put in place to make these deals compelling.
And you need to be able to be introduced to the Power Players who can do this for you obviously.
But both of these are not actually that hard. And it is a whole load easier than cold calling, or hoping business comes in.
It is all about how to create deals that are outside of the normal ‘box’. Where everyone wins and is happy with the result.
I talk more about how to structure compelling deals and, also how to get persnally introduced to these Power Players.in a future course coming out and in a future post.
These people really do have the means to transform your business, and, as such, your life.
For the moment though…
- Who can you align with to create a winning deal with?
- How creative can you get ?
- Can you try and create just a few deals like this?
Thinking outside of the box like this keeps you away from the scary statistics above. You will be more profitable, make more money,…
make a genuine difference in the world too!
(hope changing the world is not too much responsibility for you! (joke))
If you like this post…
please comment below and let me know any ingenious and creative ways you thought of, or, better still, use, to get more high value business.
I apprecaite and value your comments always.