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Archive Monthly Archives: May 2019

Opportunities Inside Your Business: Prune Your Advertising! Cash Flow Catalyst #2

Cash Flow Catalyst 2

In this series, I’m talking about opportunity inside your existing business. Because a lot of times there’s sales revenue sitting right under your nose and you’re overlooking it.

When you’re in the business working in the business every day, it’s sometimes easy to miss these profit opportunities. As I’ve talked to entrepreneurs over the years, it’s been very simple for me, from an outside perspective, to pinpoint where these profit opportunities were.

I created this checklist so my readers could use my method as well.

It’s simple to go to a thing like this list and use it almost like a money hunt. Go and look for those hidden profit opportunities, those hidden, overlooked assets in the business. It’s like an Easter egg hunt for entrepreneurs!

If you are more of a video person check out the Cash Flow Catalyst series on YouTube channel, I explain everything here in a really easy to follow video.

Cash Flow Catalyst 2 YouTube

Let’s get started on number 2: Killing your cash sucking advertising

When looking for these “hidden” profit opportunities in your business, don’t always look for more money instead, look to spend less money. Better yet get rid of things that aren’t productive.

If you had an employee in your business and they weren’t producing, what would you do? Either fix it or get rid of them, right?

In marketing and advertising, I find entrepreneurs just throwing money out there, it’s like slinging mud against the wall to see what sticks.

Throwing a Handful of brown earth in the air – isolated on black background

In the old days, before the Internet, it was a lot more challenging to track what worked then it is today. This is one of the things I love about the Internet.

In 2004 when I went all in with the Internet. One of the number one things that attracted me was that every click is measurable. Every visitor was trackable. I mean you could see everyone that’s coming to your website and it’s just gotten better over the last 10 – 12 years.

John Wanamaker said many years ago, “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”

John Wanamaker Quote

Well, with the Internet that’s not actually true anymore. Now, even in the offline world, you can put a mechanic or a piece in that makes your advertising trackable. Maybe a coupon code, something they have to bring in, or a phone number they call. In the offline space nowadays, there’s almost nothing in terms of marketing or advertising that can’t be tracked.

Even with referrals. If I was going to ask my clients to give me referrals and I had an offline local business, I would give them gift certificates to give to their friends.

Why? Because I can track that.

I can see what kind of customers were brought in from the referral, so now I know to invest more money at this end of marketing.

Let’s say we buy so adds on Facebook and people go to our page, we can track every bit. We then get on the phone and close the sale.

That’s measurable and trackable.

Look at your business. If you’re spending $500 a month or $5,000 a month or even $100,000 a month on advertising, whatever that number is, look at those ad dollars and find out what’s working and not working. We go through this same process at Harbor City inc.

We have a three-step process called Tests, Scale, Manage.

So testing is where we allocate a certain number of dollars every day for 10 days.

At the end of the first day, we may look at the results and see that men responded to this ad more often than women. Then the second day we scale, we’re going to eliminate or reduce the budget to the female audience and double down on the male audience. By the end of the second day, let’s say mostly men over 45 are responding. We’re going to reduce or eliminate the lower ages and double down on the upper end.

Now you’re “pruning” your advertising, this is that manage step I mentioned earlier. You’re eliminating the old and what doesn’t work and you’re doubling down on what does work. You’re going to see exponential growth in your business.

So not only do you eliminate expenses that are unproductive, but you actually put that money into things that are working. This is huge. It creates immediate cash flow and can create a multiplying effect on your profits.

If you would like to see the rest of my tips about opportunity inside your existing business, follow this link: JPMARONEY.com/CASHFLOW



Opportunities Inside Your Business: # 1 Identify Your Best Clients

Opportunities Inside Your Business: # 1 Identify Your Best Clients

Cash Flow Catalyst, # 1 Identify Your Best Clients Article Graphic
1 Identify Your Best Clients Article Graphic

Identify Your Best Clients

I’ve been building companies for almost 30 years now. One thing I’ve found in my own businesses, as well as associating with other entrepreneurs, is that a lot of us overlook opportunity.

If you’ve ever seen anything I’ve done, you’ve probably heard me talk about how sometimes entrepreneurs can get too much opportunity. We’re always chasing the next bright shiny object.

That’s not what I’m talking about now though.

In this series, I’ll be talking about opportunity inside your existing business. Because a lot of times there’s sales revenue sitting right under your nose and you’re overlooking it.

This is because you get up every day and go through the mechanics of running the business. When this is all you’re doing, you end up missing a lot of this stuff because you’re so close to your business.

Have you ever heard the saying “Can’t see the forest for the trees”? It’s very much like that.

When you’re in the business working in the business every day, it’s sometimes easy to miss these profit opportunities. As I’ve talked to entrepreneurs over the years, it’s been very simple for me, from an outside perspective, to pinpoint where these profit opportunities were.

I created this checklist so my readers could use my method as well.

I often say that Service to humanity is man’s greatest lot in life. We get back in direct proportion to what we give to the universe, but you’ve got to give a gift first if you want to get one back.

It’s simple to go to a thing like this list and use it almost like a money hunt. Go and look for those hidden profit opportunities, those hidden, overlooked assets in the business. It’s like an Easter egg hunt for entrepreneurs! What’s funny is that when you get into it, they all seem really simple.

I was like “Duh, why didn’t I see that?

The fact is is that we’re just close to our businesses and have to take a step back.

This could be great for a retreat or if nothing else, an offsite day. Maybe pull your top team members together, go rent a board room at a hotel, grab some refreshments and snacks, and pack them in there for a day. Get them away from what’s going on and the mechanics of running the business on a day to day basis. Take this checklist and go down it item by item.

If you’re more of a video person check out the first episode of my Cash Flow Catalyst series on YouTube, we are talking about the same topic.

Now! Let’s get into that list.

Identify the best clients support photo

#1: Your existing client base

If you have an existing business, you have an existing client base. If you want to make more money from the existing business, one of the best things you can do is to look at your existing client base.

Don’t look at it as these are your customers or clients.

Look for your best clients.

You can look for things like

  • They produce the greatest amount of revenue
  • They come back and purchase the most often
  • They give you the most referrals
  • They never complained

A lot of people look at their client list and try to group everybody in together. In almost every business we have pockets of different types of clients, but we also have our best clients. The ones that bring in the most revenue, they’re easy to sell, they’ve fallen in love with your product or service. They trust you.

Look for those particular types of clients and cater to them. If you look at the Pareto Principle, the 80/20 principle, it’s not that everything is always 80/20 it could be 90/10, or 70/30. The idea behind the Pareto Principle is there are certain categories or areas that are smaller than the whole but out produce all of the rest combined.

So if you look at your client base that same way, it’s very likely there’s 10 or 20 percent of your client base that’s producing 60-70 or 80 percent of your sales revenue in your business. Look for those people and find ways to cater to them.

So if you’ve already built a customer base, think about this, you’ve already spent the money once before. You’ve already expended that client acquisition costs, generated the leads, went through the conversion process, and maybe you paid your salespeople for converting the sale.

Once you identify this category of customers that have the highest productivity, focus on them with special care. What you’ll find is that you can actually model those best clients and go find more people just like them.

That’s it for number one on my 17 part list. Check back soon for number 2.