The Ops Builder

Thinking about selling your business, handing it down to the next generation, or simply securing its long-term success? Moving on from your business might be the last thing on your mind right now, especially if you’re right in the thick of it. But trust me, you need to start preparing for the future of your business sooner than you think. How do you ensure your business is attractive for a future investment? It all starts with solid foundations... A business with strong operations, streamlined processes, and a self-sufficient team is not only more attractive to potential buyers and successors, but also sets the stage for a smoother transition and less resources wasted. Imagine a prospective buyer stepping into a business running like Clockwork—no headaches from fixing structural issues, just the excitement of taking on something new. Solid foundations offer buyers confidence, making your business an easy sell. But it doesn't stop there! Streamlined processes and high-profit margins can significantly boost the value of your business. When you have high-profit margins because of smooth operations, it demonstrates professionalism and readiness for growth—qualities that impress any potential buyer or successor. A well-organized foundation means the business is prepared for whatever comes next, ensuring sustainability and continued success. So, choose to invest in those strong foundations now! Whether you're planning for a sale, succession, or just a more efficient operation, these steps will pay off in the long run. Your future self—and your business’s future owners—will be glad you did!

Business owners often celebrate higher revenue as a direct indicator of success. In reality, this assumption can be dangerously misleading. More revenue doesn't necessarily translate to increased profit margins—in fact, it can sometimes lead to the opposite. A surge in revenue often demands a corresponding increase in resources—hiring new employees to handle the extra workload, managing unexpected system failures, and resolving recurring operational issues. If your team is overwhelmed with the increased workload, then high turnover rates are likely as well. Each of these factors can significantly chip away at profit margins, making the additional revenue less impactful than it appears at first glance. Remember that the goal is to maintain a break-even PLUS profit standard for your business. So, what’s the solution? True profit growth is rooted in efficient operations where every aspect of the business functions like Clockwork. This involves several key strategies: Streamlining operations to ensure efficiency at every step. Reduce turnover rates by investing in employee satisfaction and not overwhelming the workload.? Regularly updating and improving systems to keep pace with growth and prevent having to backtrack and fix problems. The takeaway? Genuine financial success lies in robust operational management. Focus on building a solid operational foundation—because that’s where true profit potential lies.

??? Attention Business Leaders ?? ?? ?? Here’s a vital insight for you: in the realm of business, increasing revenue without addressing underlying issues is like pouring water into a cracked dam. Sooner or later, those cracks will give way, unleashing a flood of problems!??? Just like a dam relies on a sturdy foundation to hold water, a business needs solid fundamental operations to manage growth effectively. Simply adding revenue or clients without addressing foundational gaps amplifies issues, which leads to more chaos long term. Contrary to what you may think, more revenue doesn’t always mean higher profit margins, especially if resources are diverted to patch up those foundational cracks. Factor in the strain of high employee turnover and system failures, and the vulnerabilities become even more apparent and much more consuming to deal with. As leaders, it’s common to feel the weight of this chaos, both professionally and personally. Not only does it affect your business’s future saleability, but it also eats into your precious personal time, hindering pursuits like that long-awaited vacation.??? This is NOT the point of being an entrepreneur! Let’s delve into common pitfalls surrounding operational efficiency and why it’s crucial to evaluate them. Stay tuned for more insights on building up business foundations and navigating sustainable growth successfully!???

Here’s the truth about recruiting and retaining top-notch employees - YOU need to provide them with the support they need to thrive in your business. So if you notice multiple unsuccessful hires for a position, take it as a sign to delve deeper and reevaluate your hiring process. Here are 10 pitfalls to look out for when hiring new staff: - You didn’t fully plan out what you were looking for in the role and therefore didn’t properly express the job requirements. You oversold the role within the description and interview process. Similarly, you may have overemphasized the strength of your company culture to your candidate. - Your onboarding process lacked a clear outline of the role, leading to confusion about expectations and the path to success. - The lack of clear communication regarding their autonomy impeded their self-sufficiency in tasks. - The systems and processes were designed with your learning style in mind, lacking the versatility to accommodate various learning preferences. This resulted in vital information being miscommunicated or missed. - You expected the new hire to solve problems they weren’t equipped to handle. They struggled to understand the nuances of your business due to feeling overwhelmed during the onboarding process. - You overlooked essential aspects of team building, such as highlighting the personalities of yourself and your staff, which contribute to fostering an effective collaborative work ethic. - The expectations for the role were either unrealistic, underdeveloped, or not adequately communicated. - You didn’t provide the feedback necessary to be successful and meet your objectives for the role. - Your pursuit for “the perfect employee” was your focus rather than fostering an environment that promotes growth and achievement. In order to attract and retain talented employees, you need to be proactive in understanding their needs and creating an environment where they can excel. Continuously monitor the effectiveness of your onboarding and seek out feedback from current employees to make improvements. Always remember, investing in the success and development of your employees provides invaluable benefits to your business long term.

Working towards achieving a sale involves a journey with various approaches and steps. If you visualize this process as a shape, a common representation is a diamond. In the diamond model, the initial contact with a customer marks the top point, leading to the actual sale as the widest point that requires the most effort. Afterwards, customer engagement decreases until the relationship fades away. In reality, the diamond approach does not effectively represent the sales process. A more suitable visualization is the hourglass shape, emphasizing customer relationship building. The hourglass model begins with fostering a relationship through communication and understanding customer needs. The sales point is the narrowest because gathering sufficient customer information streamlines the sales process. The focus then shifts back to nurturing the relationship, fostering trust and encouraging future transactions. The hourglass method demonstrates the significance of customer interaction within the sales process, prioritizing building rapport and trust. This approach showcases that your business will address customer needs, leading to more sales and revenue as a natural outcome. Clients understand what to anticipate when engaging with your business. For guidance on implementing the hourglass technique in your sales strategy, book a call with me to discuss!

Sometimes, the success of a sales pitch hinges more on how you gather information from customers than on the product itself. When considering gathering information, the initial focus might be limited to obtaining names and phone numbers. In reality, part of understanding customers involves recognizing their dissatisfaction. In a previous post I introduced the formula for change: D x V + F > R. This formula emphasizes that dissatisfaction multiplied by vision, added to first steps, must outweigh a customer's resistance to purchasing your product. By identifying and addressing customer dissatisfaction, you can tailor your sales strategy to address and overcome it. While many salespeople emphasize pitching the business vision, which is effective in certain situations, it may inadvertently increase resistance if it's not what the customer wants to hear. To pinpoint dissatisfaction, you must ask the right questions. Are customers seeking your expertise or a price that fits their budget? By understanding their needs, you can streamline the sales process and offer appropriate solutions. An excellent illustration of this sales tactic is demonstrated by a roofing company in Calgary through a radio campaign. Instead of focusing on their services and merits, they asked people to share why they had the worst roof in the city for a chance to win a free roof. This approach not only identified the customer’s dissatisfaction but also allowed tailored solutions without overwhelming them with unnecessary details. Remember, by taking the time to comprehend potential customers, you can identify their specific needs and adjust your approach to facilitate a sale. Struggling to identify points of dissatisfaction with customers? Reach out to me for more helpful tips!?

With a solid marketing strategy in place and a flow of new leads coming in, you might expect an increase in sales, right? In reality, having a high volume of leads doesn't guarantee more sales. Even if your marketing team or agency is generating numerous leads, without a well-structured sales process, these leads may not translate into revenue. A crucial aspect of successful marketing and customer acquisition is the conversion rate. The acquisition cost and conversion rates work hand in hand, and monitoring these metrics helps determine the effectiveness of your efforts. For instance, if you have a database of 3000 leads collected through various means like website forms, surveys, or promotions, and 300 of these leads convert into paying customers over a specific period, your conversion rate would be 10%. In a previous post, we explored the customer loyalty ladder, where you can influence individuals to progress from prospects to loyal customers. Low conversion rates often signal issues within your sales process, indicating a breakdown in guiding leads towards making a purchase. Are your sales teams well-trained to showcase your unique selling propositions? Have you addressed and removed any resistance hindering customers from completing a purchase? Remember, the sales process is as crucial as acquiring customers. Understanding the correlation between cost per lead and conversion rate is key. Achieving success in these areas leads to more paying customers, resulting in business growth and increased profits. If you’re struggling to convert leads into customers, feel free to contact me for additional strategies to enhance your conversion rate!

Research shows that 80% of marketing strategies may not yield the desired results. Though this statistic may sound discouraging, there's a silver lining to it. In today's digital era, testing and refining marketing tactics has become more convenient than ever before. By closely monitoring the data as we've previously discussed, you can determine the effectiveness of a specific strategy. If you notice a lack of customer engagement or a low conversion rate, it's time to make adjustments. When running an ad campaign, consider tweaking the wording. Implement the change and patiently observe if the data reflects a positive outcome. An increase in clicks or new customers indicates progress. The key is to make incremental changes instead of multiple simultaneous adjustments. By making focused and controlled tweaks, you're honing in on the 20% that drives success. Remember, keep testing! Modify a headline, boost an ad by $20, and analyze the outcomes. Imagine the value of identifying that vital 20% of successful marketing strategies. Effective marketing involves smart resource allocation and achieving a return on investment in terms of customer acquisition. Need more help finding that magical 20%? Feel free to reach out for more tips and tricks!

I'm going to share more numbers with you! Why? Because I find numbers fascinating! They provide an honest guide, acting as a compass, and it's truly satisfying when they lead to profitable outcomes! Let's dive into our Facebook ad example. As a quick reminder, we previously calculated a two-year customer lifetime value of $7000. The crucial first step is to consider all your expenses and calculate the actual profit derived from this figure. Remember, the objective isn't just to break even; the aim is to generate profit while acquiring customers. Assuming your total cost per customer is $4500 and you aim for a $1000 profit, start by deducting these figures from the $7000 lifetime value. The resulting figure of $1500 represents your allowable acquisition cost. This amount indicates the maximum spending limit to maintain a profitable return on investment. This calculation serves as a valuable tool, enabling precise budgeting and goal-setting in your marketing strategies. Gone are the days of vague budgeting, such as just allocating 20% of your revenue towards customer acquisition. The concept of allowable acquisition cost eliminates marketing risks, facilitating confident investments in new customers and marketing ventures while maintaining profitability. How has your business effectively acquired new customers? Share your experiences in the comments below!

What if you could forecast the total revenue a customer generates over their entire relationship with your company? Consider the significant impact this could have on marketing, attracting new customers, and retaining existing ones. How would you adjust your strategies to enhance customer loyalty? If you could assign a monetary value to loyalty, how many customers would you aim to acquire? Here’s the good news: Mastering lifetime customer value is more achievable than you think! Let's revisit the Facebook advertisement example from my previous post. Imagine running the ad for a year and having 20 customers spend an additional $5000 on your product or service. If we add these 20 customers to the original 50 attracted by the ad, the total two-year lifetime value would be calculated as (50x5000) + (20x5000) = $350,000. By averaging this amount across the 50 customers, each customer's value would be $7000. With the knowledge that a customer typically spends $7000, how much would you invest to attract new customers? By understanding the potential profitability of long-term customer loyalty, you can make confident and data driven decisions! Lifetime acquisition value highlights the significance of providing a positive customer experience. Are you effectively promoting your unique selling points and fostering customer loyalty? Consider the factors that enhance customer experience and drive repeat business. By investing in these areas, you can utilize lifetime acquisition value to predict your return on investment accurately. Curious about how lifetime acquisition value and allowable acquisition cost are connected? Stay tuned for my upcoming post to learn more!