Scalable Business Formula:
How to Build a THRIVING Online Business!
Great, you’ve found it ….
But Fair Warning…
This article is over 3000 words and would take good 15min of your time to read through and absorb the information. If you are in a rush then I’ve prepared a checklist of the article for quick consumption.
Now let’s continue….
This resource is designed for consultants, coaches, authors and freelancers who want to grow or scale their business without burning out.
It will also serve as a roadmap for your STRUGGLING business.
This article is for you if you find yourself in one or more of these situations…
“I need to get paid more”
“I need more clients”
“My income is tied to my time. If I’m not working, then I’m not getting paid”
“I make money by the hour or by the project”
“I’m working too many hours but still unable to have continuing growth”
“I’m spread too thin, wearing too many hats”
“I have a service business idea and want to leave the corporate jungle”
This page is here to help you get FINANCIAL ABUNDANCE.
Most businesses struggle to grow. They don’t know what to do next. How to generate more leads. How to market and promote your business online. How to optimise the processes for increased profits.
What they lack is a SYSTEM, a roadmap to refer back to at all times and not only in times of struggle.
This system particularly works well for a service based business.
It works because it exploits the irrefutable law of business growth put forth by Jay Abraham:
There are only three ways to grow a business,
1. Increase the number of customers
2. Increase the average transaction value per customer
3. Increase the number of transactions per customer
We call it Scalable Business Formula or SBF.
Read this page carefully. Read it multiple times and commit it to memory.
This is the stuff they don’t teach in business school.
Learn the steps to Scalable Business Formula
The following infographic outlines the SBF system.
Print it and stick it to the wall next to your work desk. If you plan to to take action, you’ll need to reference it often.
When you’re creating your products or running traffic to them or generating clients via your website, you’ll need to constantly remind yourself of the Scalable Business Formula. Otherwise, you’re wasting time and money.
Here are what I call the, 5 ’S’ steps to the Scalable Business Formula:
1. Skill - Determine your value proposition
2. Scheme - Define your “One Thing”
3. System - Develop your product eco-system
4. Spawn Traffic - Drive online traffic to your offers
5. Sell On Autopilot - Streamline and grow your business
Lean in to this article and pay close attention — we’re about to reveal the exact process we use to sell our very own productised services successfully, while building a business that not only pays the bills, but grows in value.
Let’s begin with …
SKILL - Determine Your Value Proposition
Value proposition is a promise of full and remarkable solution to be delivered. It’s the primary reason a prospect should buy from you.
In a nutshell, value proposition is:
a clear statement that explains how your product solves customers’ problems or improves their situation (relevancy),
delivers specific benefits (quantified value/outcome),
tells the ideal customer why they should buy from you and not from the competition (unique differentiation).
People don’t buy products and services. They buy outcomes.
E.g. Our customers buy the outcome of being ‘financially free’. To be able to build a business that grows independently of the owners time.
In other words, your value proposition should be so strong, that the service practically sells itself. For your most ideal customers, spending money to gain the benefit that your service offers should be a no-brainer.
The success of your scalable service business will depend entirely on your value proposition. It has to be compelling enough not only for one customer to be willing to pay money for it, but for multiple customers to reach that threshold again and again.
The best value proposition is clear: who you are, what is it, for whom, how is it useful and what are the benefits? If those questions are answered, you’re on the right path. Always strive for clarity first.
The key thing to remember is that you don’t need to be unique in the whole world, just in the customer’s mind. The closing of a sale takes place in a customer’s mind, not out in the marketplace among the competition. Your product or service only needs to appear or seem unique.
So, for e.g. the value proposition for: A website providing natural remedies for health problems
“The only natural health website that is created by a panel of international experts”
SCHEME: Find Your “One Thing”
This step is the most important exercise & integral part of growing your business or if you are new to all this then it will help you focus on the parts that will form the foundation of your business.
If you are looking to work IN your business for the rest of your life OR
Do not care about selling your business at some point in your life OR
Do not wish to grow/scale your business OR
Do not wish to streamline your product line, marketing efforts & your bottom line
Then DO NOT bother with this step… and you may wish to skip to the next.
HOWEVER…if building a business that not only pays the bills but grows in value too then i urge you NOT TO miss this vital step as it is a game changer.
So, what do i mean by finding your “One Thing”?
Very simply put, finding your one thing is about building a system around the process you take your client through to help them overcome a specific challenge or achieve their desired results.
It is different for everyone depending on where in the cycle of business you are.
So, if you are a startup or someone looking to leave their job to work for themselves but don’t quite know yet what to do:
Don’t limit yourself to what skills you might possess. Think along the lines of what knowledge, experience or expertise you possess
Write them all down. Now write problem solving statements next to each of them i.e. what problem do they solve.
Then do a bit of internet research to figure out their demand & if people are paying for similar products to solve their problem
Out of those, shortlist 3 which resonate more with you in terms of value and interest both
Then focus or pick ONE
If you already have a struggling freelance, coaching or consulting business:
Focus on the issue/problem that most clients come to you for or the one service which has a quick turnaround or the one service out of many you offer that will give you the most pleasure working with clients
Now that you have your One Thing, package it into a compelling value proposition and offer it at a set price and terms. This is commonly termed as ‘productising your service’.
So, for example: Let’s say you are a fitness trainer who likes best to work with new mums trying to loose post natal weight.
You could package your service into the following products:
Bronze package: includes a 30 min Skype consultation, an 8 week weight loss fitness plan (accessible online), post 8 week 30 min Skype consultation - $299
Silver package: includes everything in the bronze package + 8 week dietary plan with recipes (accessible online) - $399
Gold Package: includes everything in the silver package + 8 week supply of ready made healthy meals delivered to your door - $799
Now do you see what i mean by productising your service?
The next step in the roadmap will delve deeper into the types of products you need to create in your business but for now i wanted you to understand how you could position your service as a product so you may quickly scale and grow your business.
Systems & processes can now be put in place to automate the customer acquisition & conversion process, making the core business independent of your hourly billing. By doing so, you are setting the groundworks for building an income generating asset which in turn makes your business acquirable or sellable.
“Often, the more money you make the more money you spend; that’s why more money doesn’t make you rich – assets make you rich.” - Robert Kiyosaki (Author of Rich Dad, Poor Dad)
Your goals as you build your scalable business are:
Create a service that does one thing exceptionally well (solves a painful problem)
Differentiate and add value by methodising your offer
Offer a clearly defined package with a set price and non-negotiable terms.
As Robert Kiyosaki said in his book Rich Dad, Poor Dad that, “ Income follows Asset & Expenses follows Liabilities.” We need to build assets in the business if we want to grow our venture (however big or small).
Assets ——-> Income
Liabilities ——-> Expenses
This is the only way we can grow successfully in life whether we are a one man band or ten.
Assets are not just equipment & land but also exist as Intellectual Property, among other things. Without building assets we are just another rat in the rat race, constantly chasing money.
SYSTEM - Develop Your Product Eco-System
Knowing what you are passionate about isn’t enough to make money in business. Having a product isn't enough either. If you want to make money from your business you need to have a Product Eco-System.
What is a product eco-system?
It is the creation of multiple products ranging from low end to high end.
Most small businesses make the mistake of just having one core product that they sell.
The Accountant sells accounting. The Lawyer sells legal services. The Plumber comes and fixes your plumbing issues. Right? Wrong!
I’m going to introduce you to four types of products.
2. Foot In the Door (FID)
3. Core Offer
4. Profit Booster
1. It starts with the GIVEAWAY offer.
The first 2 types of product (Giveaway & FID) show you how to grow your business through the first of Jay Abraham’s methods, increase the number of customers.
Giveaways are free products. An irresistible bribe, that is valuable and enticing to a prospect in exchange for their contact details (usually an email address).
A great giveaway is delightful if it is given to the right person. It needs to be thoughtful, valuable and open people up to a whole new world.
Your giveaway should entice people to want to know more about what you do and what value you offer.
Software companies offer free trials. That is a Giveaway product.
A small business can offer, templates, cheat sheets, webinars, ebook, dvd, sample products, even short courses for free as a Giveaway product.
The Giveaway Product is usually offered on a web page called a, Landing Page or a Squeeze Page.
The Giveaway exists to increase leads. Because the Giveaway is the very top of the product eco-system funnel, increasing opt-ins here will pay dividends throughout the rest of the system.
2. The second type of product is the Foot In the Door or FID Product.
Remember the goal here is to increase the number of customers. So far, we have only gained leads through the Giveaway Product.
The FID product is shown to those who have signed up for your Giveaway product.
This is a product for people who want to try you out without committing too much money or time. This type of offer is designed to offer a quick win or a first hand experience. Its a sample of things to come, a test drive or a first step in the right direction. It’s specifically designed to turn a lead into a buyer at cost or maybe even at loss. You’ll recoup the money further down the product line as you study the SBF system. The point is to create buyers at this stage even if it is for a £1 sale.
Look at this example of a jewellery store:
They are offering 2 rings for free if a postage charge of $1.95 is paid for each.
A small business might invite you to a low ticket seminar, essentially a FID product.
A good FID product leaves your ‘new buyer’ feeling “pre-sold” to do further business with you.
The FID products are all around us. Heavily discounted gadgets & electronics, £20 food voucher for £50 worth of food on deal sites etc.
The strategy behind the FID product is simple:
Convert as many leads gained from the Giveaway product into buyers.
Now that we have learned how to increase the number of customers, let’s move onto increasing the average transaction value of a customer (following Jay Abraham’s law of business growth).
3. The third type of product is your CORE OFFER, which you probably already have.
Many small business people make the error of pushing their core offer too soon. They expect people who hardly know them to open their wallet and start spending thousands. It is almost like asking someone to marry you on the first date.
When this doesn’t happen, the business owner makes the mistake of lowering the price of the core business to a level that isn’t profitable and they begin to resent their business.
If they don’t lower their price, not enough customers make the leap. If they do lower the price there’s plenty of customers but the business doesn’t make very much money.
The issue isn’t the price of the core business. The issue is the business has not created a Giveaway or FID product.
The addition of Giveaway & FID products reduces the risk of rejection and warm the prospects up to eventually buy your core offer. Much like the dating scene. It takes time & a few meetings/transactions to occur before they feel confident enough in you or your services to deliver a remarkable solution to their major problem.
4. You see, even if the business has the FID and Core offer it will be profitable however, without the 4th type of product called the PROFIT BOOSTER, the business is probably doing barely half the profit it could do if it did.
This is where you increase the number of transactions per customer.
It can be offered in 3 ways:
Right after the core offer is purchased as an upsell (would you like fries & drink with that?)
At a later stage via email or retargeting ads (hope you enjoyed your straight hair extensions, would you be interested in the NEW trend of wavy hair extensions too?)
A recurring offer (like a monthly mentoring program as an add-on to your core offer workshop)
In some cases the recurring offer could also be your core offer & the profit booster might be paying for extra lessons, certifications, 1-1 training or done for you package.
The magical thing about the Profit Booster is that most of the costs in acquiring a client have already been covered by the sales of FID and your Core Offer, so you may discover that you end up earning just as much profit on the “Profit Booster” product as in your core or even more. A Profit Booster product can double the profits of your existing business.
SPAWN TRAFFIC - Drive Online Traffic To Your Offers
Once you have your product eco-system figured out, this step becomes much easier.
Your aim here is not to start marketing all of these products at once but to drive traffic to the top of the funnel (Giveaway), working all the way down to the Profit Booster, in stages.
To drive traffic to your funnel, you may use any of the following sources but i’d suggest concentrating on one first before mastering others but, certainly employ more than 1 traffic sources in your traffic generation plan. Simply because relying on just one source say Google for instance may lead you down a dark hole if & when they are to make changes to their algorithm (has happened in the past with thousands of sites loosing revenue with the Panda update). Hence it is best NOT to rely on one source only for revenue or lead generation.
These traffic sources include…
- Email marketing
- Social Advertising (Facebook/Twitter/YouTube ads, etc)
- Banner Advertising
- Organic Social Media
The idea is to market…
“Giveaway Product” to cold leads
“FID Product” to the newly gained leads
“Core Product” to the new customers (customers are the leads who bought your FID product)
“Profit Booster Product” to the customers who bought your core offer
It is important to understand this strategy. If you do, you will see your business thrive.
SELL ON AUTOPILOT - Streamline And Grow Your Business
This step is about optimising and automating processes in your business. Automation is the answer to every entrepreneur’s dream. Businesses face severe competition and a roller coaster ride on the path to success. It helps when a few processes pass through automatically without the involvement of business owners at every juncture.
A general guide to automation is:
- Start with automating the easiest processes first
- Automate time sapping processes
- Focus on one process at a time
There are a myriad of ways you can automate tasks in your business. By doing so, you give your business legs to scale upwards and grow. Instead of being confined by your human limitations, you’re enabled to engage with customers in a way that makes them more likely to buy.
All of this sounds ideal, but what does it look like in practice for a coaching business?
Well, from our experience, we have found that if you are just starting to grow your expertise business online or if you’ve been at it for a while but are now looking to scale then, there are mainly 3 areas which you should automate and streamline first before touching any other areas.
You do not need to automate all at the same time and that is why we’ve split them into 3 steps. Start with step 1 first and then work your way down.
Step 1: Email Automation
Email marketing is still one of the most effective channels for marketing your business today, but it’s evolving.
While newsletters and one-off campaigns will always have their place in your email marketing strategy, the smartest companies are starting to setup automated email campaigns that trigger off of a user’s actions. Set up a series of emails to create your own campaigns. Then, use these to nudge leads down the sales funnel toward making a purchase.
Step 2: Marketing Automation
Marketing automation is software and tactics that allow companies to nurture prospects with highly personalised, useful content that helps convert prospects to customers and turn customers into delighted customers. This type of marketing automation typically generates significant new revenue for coaching businesses, and provides an excellent return on the investment required.
Step 3: Customer Support Automation
Customer Service is about interacting with your customers for their immediate benefit.
In a world where small businesses need to do more than just sell products—they also want to build relationships—customer service is a key part of the promise that your brand makes to a customer. It’s more than just providing answers. It’s helping customers even when they don’t know they need help. It’s teaching them how to do more with your products. It starts with a smile and a friendly word, and finishes with sharing your expertise—even when it has nothing at all to do with your products. And for small businesses, customer service can be your secret weapon. It might be the sole act which makes you stand out from the competition.
For instance, creating communities to foster user-generated content, building FAQ and a knowledge base could be your first steps.
In short, it’s not about what tools should you be using for automating parts or specific functions of your business. It’s more about realising the need for change and doing what you can to make it happen.
So, start by mapping out the Scalable Business Formula roadmap for your own business and prioritise the areas you need to focus at right now.
Happy Scaling! :-)