ETM is the Future of Entrepreneurship for Female Founders + Mastering Customer Retention + The one thing Investors are looking for in your Revenue

Welcome Back to this Weeks Edit of the Excuse Me SIR. ICYMI Newsletter!! ???? As always we are bringing the JUICE, so kick back, dive in and let's make you smarter in 15 Mins or Less.?

ISSUE HIGHLIGHTS:

THIS WEEKS MANTRAS:?

1. Feel the Feeling & Then Keep on Going:

I am a very sensitive, empathetic and emotional human being. I feel emotions incredibly deeply and when I was younger, I used to let this be my weakness and my downfall. NOW, I understand that feelings are temporary, fleeting moments that will pass. So long as you allow yourself to feel them and just keep going. I had a super intense post-pitch decompress after a pitch situation I was not prepared for, I allowed myself to full release all of that energy, stress and anxiety, I cried and shook and cried some more for about 20 mins and then it was done. You get up, you have a shower and then you keep on going! The problem in feelings like this is when you fester on them OR when you don't acknowledge them at all.?

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2. You cannot change the way the cards are dealt, just the way you play the hand:

Founders going through adversity or have been through adversity have two options. You can let those experiences define you, taint you, let them swallow you whole. OR you can make your own fucking path, decide WHO YOU ARE, and outsmart the system. There is NO USE in stressing about shit you cannot change “oh but if I came from a wealthier family” “oh but if I just went to this school” “oh but if” “oh but if”…OH BUT IF NOTHING. It is not your reality, they are not your cards, you only have what you have, so work with them or get left behind.?

THIS WEEKS QUESTIONS:?

1. How do your daily actions today… reflect your purpose??

2. How do you define success? Are you living up to that definition?

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???? STARTUP EDIT: Mastering the Art of Customer Retention

????VENTURA EDIT: ETA is the way of the Future for Female Founders & What Investors are looking for in acquisition targets revenue?

Startup Edit: Mastering the Art of Client Retention

Customer retention is CRITICAL for the long-term success and sustainability of any company regardless of size and While acquiring new customers is absolutely essential, retaining existing customers can significantly reduce costs and increase profitability. I call it my secret weapon in a world of “more more more” “new new new”. This week's focus explores effective strategies for retaining customers and fostering long-term loyalty.

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WHY CUSTOMER RETENTION MATTERS:

Before I dive into all of the high-level strategies you can leverage to increase customer retention rates and reduce churn, we first need to understand why it matters in the first place. Like all strategies, there needs to be clear strategic alignment with the long term goal + vision for it to make sense! We see so many founders prioritise acquisition over retention when zeroing in on retention strategies is usually the strategic focus most in alignment with the goals.?

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Okay so diving into it…

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Customer retention strategies & efforts or cheaper than acquisition costs?

• It costs five times more to acquire a new customer than to retain an existing one.
• Increasing customer retention rates by 5% can increase profits by 25% to 95% (Harvard Business Review).

You are more likely to close a sale on an Existing Customer than a New Prospect

• Existing customers are 50% more likely to try new products and spend 31% more compared to new customers (Invesp).

Drives WOM Referrals?

• Satisfied customers are more likely to refer your business to others, leading to organic growth through word-of-mouth marketing.

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Now you know a few reasons as to WHY it is important…so now….How to do it:?

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1. Deliver Exceptional Customer Service:

It goes without saying…not only does product/service matter…but so does the customer EXPERIENCE. Want to hear me deep dive into this topic? Listen HERE.?

• Personalization Matters & Makes a Difference in Service Quality: Use customer data to personalise interactions throughout all four stages of the CX journey and provide tailored experiences. Personalisation is proven to significantly enhance customer satisfaction and loyalty because it makes customers feel seen, heard, validated and valued in their experience.
• Responsiveness: Ensure that your customer service team is responsive and addresses issues not only promptly but goes above and beyond to meet customers needs + challenges. Quick and effective problem resolution can turn a dissatisfied customer into a loyal advocate because it's not necessarily what you do wrong - it is about how you deal with it.

2. Implement a Loyalty Program:

• Rewards and Incentives: I have spoken about this time and time again but regardless of your industry I highly recommend you Create a loyalty program that rewards repeat customers with discounts, exclusive offers, or points that can be redeemed for products or services ie. gamification! Hit those dopamine receptors and get them hooked.
• Engagement: You would be surprised how much more likely a customer is willing to remain loyal to a brand when they feel important to its eco-system. Keep customers engaged with regular updates about their loyalty status, upcoming rewards, and new program features whether it is via email or better yet if it is through a VIP group chat or something more intimate.

3. Solicit and Act on Feedback:

• How can you ever expect to meet and exceed your customers exceptions when you don't know what they are! Regularly solicit feedback from customers through surveys, reviews, and direct communication in whatever way feels best to you but don't just gather it….Use this feedback to improve your products, services, and overall customer experience.
• Provide Consistent Value:
• High-Quality Products/Services: Ensure that your products or services consistently meet or exceed customer expectations. High quality is a fundamental driver of customer satisfaction and retention.
• Educational Content: Provide customers with valuable content that helps them make the most of your products or services. This could include how-to guides, webinars, or tutorials.

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For more insights and guidance on customer retention and other essential business strategies, explore the resources available through SIR. BUSINESS ACADEMY? and SIR. VENTURES?.

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LISTEN TO THE STARTUP EDIT ?? HERE: MASTERING THE ART OF CUSTOMER RETENTION

HEADLINERS TO KEEP TABS ON:

• OPENAI Acquires Tech Startup Rocket Set ( Valued at $86Billion ) to fuel Chatgpts capacity to analyse and synthesise large amounts of data. This acquisition is going to be a game change for all of us CHAT GPT STANS LESSGOOO. HERE.

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• Super Exciting Female Founder Acquisition, Naomi Watts has Partners with L Catterton ( luxury Private Equity Firm ) for an acquisition deal RE “Stripes Beauty” - There is a super interesting story about this one that I cover over on Ventura.io IG. READ THE ARTICLE HERE.

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• Jones Rhode Smashes BFCM Sales ( Black Fri/Cyber Mon ) without discounts. Read more HERE.?

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• The Banks you absolutely MUST know about, supporting female founders HERE. ( one of them has loaned $12 Billion Dollars to female founders in a market that is very bearish around making investments into women )

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• 5 Tips for Female Founders from Fenwick HERE.?

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• Looking for a Fundraising Advisor? Meet Beth Rahn HERE.

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• PITCHBOOK Released their 2024 Mid Year Update for their VC Market Predictions. There is quite a bit of VC Jargon, so I might do a post to summarise its findings for you in a way that actually matters to you hehe. HERE.

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• PITCHBOOK - Thinking about getting a loan to fuel your startup? Read Pitchbooks Report HERE.?

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• 3 Reasons Under-represented people should become entrepreneurs through acquisitions HERE.?

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• More women IN Venture doesn't mean more money for female founders - More women need to START their own venture firms HERE.?

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• Partial Exits are being used to deal with tough markets HERE. ( Ventura helps you with this )

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ETA is the way of the Future for Female Founders:

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ETA = Entrepreneurship through Acquisition?

ETA = Expansion through Acquisition?

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Starting a business with an acquired company is far MORE LIKELY to succeed than starting one from scratch!? Whether you’re planning on starting a whole new business or diversifying your product or service offerings, acquiring a company that has seen previous success is a smarter move. Starting from scratch is tough. Establishing product-market fit, working long hours, building your customer base from zero, and figuring out what works and what doesn’t can be overwhelming. There’s a smarter way – stop growing by reinventing the wheel and start growing through acquisition.? Here’s why: 1?? Instant Customer Base Skip the struggle of building from zero. When you acquire an existing business, you get instant access to a loyal customer base, generating revenue from day one. 2?? Proven Business Model Reduce risk by inheriting a business with established operations and a track record of success. This solid foundation allows you to innovate and grow without the uncertainty of starting fresh. 3?? Established Resources Gain access to skilled employees, brand recognition, and operational infrastructure. These valuable assets give you a head start and the tools to scale quickly and effectively. Imagine bypassing the common startup hurdles and diving straight into growth and innovation.? Ventura.io is here to make that dream a reality.? Disclaimer:

This content is for informational purposes only and does not constitute financial or legal advice. Always consult with a professional advisor before making any financial or legal decisions related to mergers and acquisitions.

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THINKING OF SELLING A BUSINESS? OR A SERIES OF ASSETS?: The Power of Recurring Revenue in Attracting Investors?

Here is the kind of revenue your investors want to see…

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In the world of mergers and acquisitions, one of the most compelling features that attract investors is a robust recurring revenue model ( which is simultaneously one area most companies find incredibly hard to establish and strengthen ). Recurring revenue offers predictability, stability, and a clear growth trajectory, making businesses demonstrating an ability to thrive in this model, highly desirable to potential investors and acquirers. This week's focus explores the power of recurring revenue, why investors love it, and how you can leverage it to maximise your business's valuation.

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WHY RECURRING REVENUE MATTERS:

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1. Predictable Cash Flow and Financial Stability

Recurring revenue models, such as subscriptions, memberships, and service contracts, provide a consistent and predictable income stream for the company without needing to focus on new customer acquisition MoM.

• Investors prefer businesses with predictable cash flow as it reduces financial uncertainty.
• Stable revenue streams enable better financial planning and forecasting, which is crucial for long-term strategy and investment decisions.
• Every business model can create some sort of recurring revenue model that allows for an inflow of revenues without 20x efforts. Want to learn what yours could be? Join SBA? Community for just $99/M No Lock In!

2. Demonstrating Growth Potential

Recurring revenue indicates a business's potential for growth and scalability, which is highly appealing to investors.

• Built-in growth mechanisms like upselling and cross-selling to existing customers
• Easier scalability compared to one-time sales models.
• High customer lifetime value (CLTV) due to ongoing revenue from the same customers.

3. Higher Valuation Multiples

Companies with recurring revenue models often receive higher valuation multiples.

• Higher multiples are attributed to the reduced risk and increased predictability of future earnings.
• Businesses with recurring revenue are seen as more sustainable and resilient.
• Investors are willing to pay a premium for companies with stable, predictable revenue streams.

4. Building Customer Loyalty and Retention

Recurring revenue models foster stronger customer relationships and higher retention rates.

• Personalized experiences and ongoing engagement keep customers invested in the product/service
• Loyalty programs and regular communication enhance customer satisfaction and retention.
• High retention rates translate to lower acquisition costs and more stable revenue.

5. Operational Efficiency and Scalability

Recurring revenue models often lead to improved operational efficiency.

• Streamlined processes and automation in billing, customer management, and service delivery.
• Reduced sales and marketing costs due to ongoing customer relationships.
• Scalability is easier to achieve with automated systems and predictable revenue streams.

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Understanding and leveraging the power of recurring revenue can significantly enhance your business's attractiveness to investors. By focusing on predictable cash flow, demonstrating growth potential, achieving higher valuations, building customer loyalty, and improving operational efficiency, businesses can position themselves for successful mergers and acquisitions.

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?For more insights on building, growing, and scaling your business, explore the resources available through SIR. BUSINESS ACADEMY? and SIR. VENTURES?.

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That is all for this Month!!?

xox, Lace

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