Disruptors Caffeine Cast: 7 Things That Break Businesses [Business, mindset, entrepreneur, disruptors]
May 30, 2019
16:52
Is your business breaking? Are you trying to avoid factors that could break your business and cause you damage? Today, Rob discusses the seven things that break businesses and what you can do to avoid them. Tune in today, to discover how to safeguard your business, secure future growth and take your business to the next level.
KEY TAKEAWAYS
7 Business Breakers & How to Avoid Them.
- The first one is when people say the product sells itself. A lot of people think that if they create a good product, it will sell itself. Nothing walks out of your office and goes and makes you millions, the product does not sell itself. [Text Wrapping Break][Text Wrapping Break]Of course, the better the product over time, the more referrals you're going to get, the more reach the more impact, But for the first few months, maybe even years, you've got to go out and sell it, you've got to pitch it, you've got to create an ideal client demographic, you've got to understand that market, then you've got to create a compelling marketing message, which says in as few words as possible, the benefits of the product or the service you have, how it changes their lives, how it serves them, how it solves, how it makes their life easier, faster, better.[Text Wrapping Break]
- The second thing is, not actually knowing what their business model is. Most businesses don't realize that they're actually a marketing company, or they're a digital agency, they think they are a creator of their products and services, But if you don't get your products and services out to as many people as possible, then you don't have a business.[Text Wrapping Break]
- The third thing is not saving cash when things are going well, for when it gets hard. People get complacent when things are going well, they spend money frivolously they relax some of their criteria, they don't keep an eye on the cash. [Text Wrapping Break][Text Wrapping Break]They think all things are great and they don't realize that things could be bad tomorrow, the best time to save for a recession is either in the current recession for the next one 15, 20 years in advance or when you've got money when you've got cash. When things are going good, you want to have a little bit of fear in you.[Text Wrapping Break]
- The fourth thing is giving the market what they think the market wants, rather than what the market actually wants. This is not giving the clients and the market what it wants, it's giving the clients in the market what you want.[Text Wrapping Break]
- The fifth thing is overspending and underspending. Both of these, depending on your personality traits can really break your business. Underspending means you don't get new leads, you don't reach new markets, there comes a time in business when you picked on the low hanging fruit of social media, your friends and your family and your contacts and you have to actually do marketing and advertising, you now have to reach new leads and clients, you'll always want to be testing new lead sources, investing in, creating interest awareness, and getting people into your product staircase so that you can ultimately sell them your products and services.[Text Wrapping Break][Text Wrapping Break]Overspending is obviously more common, most people tend to not keep their eye on the numbers, they don't manage their key performance indicators, they don't know what they're spending, they have too many subscriptions, they have this fear of not getting clients, so they spend money blindly, they hope that a big Magazine Ad or a newspaper ad will save their lives. [Text Wrapping Break][Text Wrapping Break]You’ve got to kind of balance that and you do that by having a budget that you set yearly, break it down per month, you spend the budget, you review the KPIs to see if you went over under budget, to see if that spend hit you the turnover and net profit that you were after and then you re-adjust your next month budget accordingly, spend a bit more, spend a bit less or improve some of the systems and the tracking and then you repeat that process. You’ve got to keep a real eye on your spending.[Text Wrapping Break]
- The sixth thing is relying on single sources, like single sources for recruitment, for leads, for income, for suppliers, for media, et cetera. You need multiple streams of leads, clients, recruitment, revenue, cash flow is vital.[Text Wrapping Break]
- The seventh thing is not having a close eye on the metrics, the KPIs, the KRAs, the P&Ls, et cetera. They are your key performance indicators. They are your profit and losses. Your key result areas where you get the best return on your time invested, the balance sheet of your company, tracking all the spend and the return on spend and the cost per lead and the cost per sale and the lifetime client value and the net profit per vertical if you've got multiple products, profit and loss for each product, as well as the profit and loss for your whole business.
BEST MOMENTS
- “If you're no good at the selling and marketing stuff, and you just want to create and design and innovate, then you need to align yourself with people, whether it's partners, staff, affiliates, who can do the selling and the marketing and get your product out to the market for you.”
- “Businesses can change over time.”
- “Be greedy when others are fearful and fearful when others are greedy.”
- "If you don't risk anything, you risk everything."
[Business, mindset, entrepreneur, disruptors]
VALUABLE RESOURCES
ABOUT THE HOST
Rob Moore is an author of 9 business books, 5 UK bestsellers, holds 3 world records for public speaking, entrepreneur, property investor, and property educator. Author of the global bestseller “Life Leverage” Host of UK’s No.1 business podcast “Disruptors”
“If you don't risk anything, you risk everything”
CONTACT METHOD
Rob’s official website: https://robmoore.com/
Facebook: https://www.facebook.com/robmooreprogressive/?ref=br_rs
LinkedIn: https://uk.linkedin.com/in/robmoore1979