August 29, 2021 6 minutes read
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Many business owners have shared their success stories on social media about how they created a seven-figure consulting, coaching or marketing agency. Even though you should take such self-promotion seriously, it is worth recognising its simplicity and remarkable calculus, This refers to a company that generates more than a million dollars per year in total revenues. That works out to about $83,333.33 per monthly!
Since 2006, I had managed and built several successful businesses across a variety of industries. However, for some reason, I couldn't make it past the seven-figure mark for at least several years. 2013 was the year I passed the California bar exam. In that same year, I decided to open a law office. I wanted to try something new to invent and implement different strategies. I have invested over $300,000 in mindset, business, leadership, mentorship programs and business coaching. I have also had the chance to work alongside seasoned business owners who have built seven- and eight-figure businesses. As a result that process, Ive distilled three core strategies that enabled me to break that million-dollar-a-year mark.
1. 1. Rethink the client acquisition process
It's easy for entrepreneurs on a mission to become complacent and accept every offer. You can use this strategy to attract and convert more clients, including those who are better suited for your programs and who value your expertise. You shouldn't try to sell your services by telling prospects that your program is the greatest thing that ever happened to them. After learning everything about your prospect, including their pain points and thoughts, audition them and let them prove that your program is the solution they have been searching for. For a moment, think about American Idol. Would you rather be on the stage or as a judge? I hope you voted for it.
You are the expert prospect wants to find answers and solutions. Your knowledge, insight, and expertise are yours to assist. Use that advantage to position yourself as the expert who can choose the customers. This strategy also requires you to be able to say no to customers who aren't a good fit. Make a list of all the qualities you desire in your ideal customer and stick to it.
Similar: Stop Chasing Customers with 'Pick Me' Posts, and Other Desperate Tactics
2. Selling high-ticket items is much easier than selling low-ticket deals
My market value was $1,000 to $10,000 depending on the complexity of my filings and contracts. I was a lawyer who specialized primarily in business formations, contracts, and intellectual property filings. These services were time-consuming and required effort. I also hired support staff to make margins that weren't too tight.
My strategic strategy was to find solutions for bigger problems and then charge more. This allowed the company's services to be more valuable, offered more resources to customers and dramatically increased profit margins. These profits could then be reinvested back into the business, creating a cycle for growth.
Instead of marketing a service for business formation, we developed a consulting program that allows customers to access marketing, branding, and financing solutions. These solutions were packaged together and sold for $25,000.
You may think, "Who has $25,000 to spend on marketing, coaching, consulting or training?" If you look at all options available, you will find that the potential cost of time and revenue is often much greater than the fee for an expert to put together the puzzle pieces.
Smart entrepreneurs make decisions based on logic, facts, and numbers. These can all be easily integrated into your presentations. The bundled price seemed fair when we included statistics from the Small Business Administration that showed that only half of businesses survive beyond five years, and that only 30% survive for 10 years or more. Conduct market research in your industry to find reliable statistics that support your solution's value. You will find better clients who will pay what you are worth and will be more willing to invest the time and effort required to get the best out of your investment.
Similar: This is How to Sell High-Value Items Online in 2018.
3. 3. "Who?
One final strategy shift that can help break through the seven-figure mark, is to remember a phrase: "Who, Not How". This refers to the power of harnessing true helpful talent, finding areas where you excel, and outsourcing everything that has a lower return to a carefully selected staff.
This is a quick image that will show you how the process works. As the CEO of a company, the bullseye is the area where you want to be positioned in order to make million-dollar decisions. As you work your way out, each circle will outline functions of different value. The outermost circle is the place you don't want to be.
Many offshore virtual assistant companies will provide you with an experienced (or trained) person who is highly functional and can work in your outermost circle. The more tasks you can remove from your to-do-list, the higher your revenue.
Related: 7 Things You Can Outsource Right Away to Scale Your Company
Practice makes perfect
These strategic shifts are not easy to master, but they will change how you attract, convert, and serve your ideal customers. They will also help increase profitability, efficiency and output.