A collection of thoughts for the month
Mike Foster
Business Mentor & Coach | Fuelling ideas and sparking plans for a better business
In this month's update as always I hope you find some useful information to help you start, develop, scale or grow your own business.?
Mike
The 4-part value equation
In order to understand how to make a compelling offer, you must understand value. The #1 reason people buy anything is to get a deal. They believe what they are getting (VALUE) is worth more than what they are giving in exchange for it (PRICE).
In reality, Alex Hormozi's “Value Equation” provides a more transparent perspective. It has been created to help quantify the variables that create value for any offer. There are four primary drivers of value. Two drivers, you will seek to increase. The other two, you will seek to decrease.
This equation consists of four key components: 1) the promised dream result, 2) the perceived probability of attaining that result, 3) the expected timeframe for achieving it, and 4) the level of effort demanded.
The Value Equation. Once you see it, you can never unsee it.
1. Dream Score: How desirable is this offer's dream outcome from a scale of 1-100? To determine the Dream Score, you need to assess how compelling and attractive your offer is to your target audience. Consider the specific benefits and results your product or service can deliver. As an example you may increase this score by clearly articulating the transformation and benefits your customers can expect, sharing success stories, or offering a money-back guarantee to boost confidence.
2. Success Score: How high is the offer's perceived likelihood of achievement on a scale of 1-100? The Success Score is about building trust and credibility. You can improve this score by showcasing your expertise, sharing testimonials, case studies, and highlighting your track record.
3. Time Score: How high is the offer's perceived time delay between purchasing the product and reaching the promised achievement on a scale from 0 to 1? Minimising the perceived time delay is crucial. A lower score here is better. To improve this score, consider offering quick wins or early successes. Emphasise the immediate impact and value of your product or service.
4. Effort Score: How high is the offer's perceived effort and sacrifice on a scale of 0 to 1? A lower Effort Score is better as it suggests less effort and sacrifice on the customer's part. For example, provide resources, tools, and templates to streamline the efforts of your customer.
To calculate the Offer Score:
(1) Dream Score x Success Score
(2) Time Score x Effort Score
Offer Score = DreamxSuccess score (1) / TimexEffort score (2)
Are you managing and handling your existing leads and opportunities as best as you can?
I may argue that it's somewhat pointless spending all your resources chasing new business enquiries if you are letting your current opportunities with prospects or existing customers fall through a leaking bucket.
I've been asking my clients about their prospect and customer journey. In many cases, we've made tweaks and tested different communication methods to the favoured email.
How are you nurturing your opportunities from the awareness stage, through consideration to purchase, then delivery to retention, loyalty and advoacy?
Can you do something today, this week, to improve your control on your process and improve your conversion to revenue by a x%?
If you could, take action and do it today, as x% over a number of opportunities could be the equivilant of having to find yet another new enquiry with your marketing!?
10 areas for your end of quarter review
WOW can you believe that’s a quarter of 2023 already gone in a flash. It has certainly flown by since I was sat with my family at the Christmas dinner table.
The 1/4 end is always a good reference point to reflect back and also take the opportunity to plan forward those next steps.
These are 10 areas that I encourage you to consider as part of your 1/4 or period end review.
1. Celebrate your wins: As entrepreneurial business owners this is an area we are not great at as we stride forward for further improvements and growth.
2. Consider your habits and behaviours: Have they truly changed as planned or desired or know needed to?
3. Comparison against your targets: You may be measuring this with your key numbers, your success drivers or your KPI scorecard, but identify any specific strong performance or gaps to learn from.
4. Review the financials: Your actual vs budget, activities and outcomes, number of customers, average sale value, margins, overheads review, churn rate.
5. Review the strategy and model: Was this delivered as planned? Are the previous considerations still relevant due to any market changes? Are you keeping your strategy and business model real and live?
6. Consider the need to review any Competitor analysis: Have they changed, made adaptions? Are there any new players impacting your market share?
7. How has your lead generation activities delivered? What's working? What is the latest cost of acquisition? What needs to be tweaked or changed? What further testing is required to give you confidence in your lead generation? Are you spending enough in your marketing? Do you have a rhythmic flow of Leads? Are you managing and handling the leads you already have effectively before seeking more prospects?
8. Is your lead conversion rate improving? Is your prospect journey working? Where in your sales process are your prospects falling out of the funnel?
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9. How are the team performing? How is capacity? Are the right people in the right roles? Do you need to make new hires? Are individuals on track with their responsibilities towards minimum 100% of your expectations? Are you and the team living and breathing your values? How are behaviours in the team impacting your customers or processes?
10. What does feedback tell you about the customer experience? Reflect on your customer journey and experiences at every touchpoint to consider what needs to be improved.
Once you have completed your quarter or period review and identified areas for improvement, then I encourage you to create an Action Plan with what needs to be executed, by who, by when.
Once the action plan is completed, share it with your team and also with those that will keep you accountable. It makes a huge difference.
I encourage you to ask yourself this question as part of the review: “What needs to happen to ensure that Q2 is your best yet?”?
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Latest Blogs
The content of my blogs has you in mind. I write to share my knowledge, experience and expertise to help you build your business.
Video snippets
Each video snippet of 2-3 mins is a thought to help you in the development of your own business. I am currently sharing a series of growth hacks.
Other Free Resources
My resources include something to read, something to listen to or something to watch including?my:
I do hope these resources help you in some way.
Masterplan Coach
I am delighted to announce that I've joined the team the Entrepreneurs Circle as a Masterplan Coach.
I’ve been enthused, inspired and personally developed by every touch point with such a supportive organisation for business owners.
My clients who are members have also enjoyed access to the vault of resources including toolkits, how to guides, training, clinics, seminars and so much more.
The Masterplan is totally the right fit for the way I work in a holistic, structured way as I am committed to coaching and mentoring business owners to escape Mediocracy and Live Life on Their T.E.R.M.S
At Masterplan we use a proven 9 step formula that is:
Firstly, creating the stable, critical, foundations for you and your business.
? What you really want and why
? The numbers to help you achieve that
? & Your strategy and financial plan for focus
This brings clarity on the what and the motivation to build the business you deserve for your hard work.
Then we move to the execution stages with team development, lead generation with rhythmic activity and delivering your promise with excellence.
These steps are then building on the strategic and financial plan to create the rhythm that suits your business. This is the How, so that you and your team are on the same page, executing with excellence and the business is generating the lead flow of the prospects you want.
The final 3 steps are to help you Leverage the business and Optimise your Day to Day by developing the business to a point that is independent of you.
I work with aspiring business owners that know that to have something different then they need to make a change in activity and habits.
After all, if you only do what you’ve always done, you always get what you’ve always got unless you get lucky.