THE MAGNETIC BLUEPRINT

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The MAGNETIC Blueprint: 10 Imperatives for Startup Success in 2024

If business is a battlefield then 2022-2023 heading into 2024 has been an absolute blood bath. I've spent countless hours with some of the leading founders in the industry, and there is a stark contrast between those companies that are forging ahead vs. those stuck in the mud.??

As we plant firmly in what is 2024, it's time to realize this is absolutely a different environment than in 2020. And, I'm thankful for that.

So, let's get to work.

Here are the ten specific, non-negotiable directives that your company must embrace this year:

1. Prioritize Profit Over Revenue

Shift focus from revenue generation to profitability. Implement strategies that ensure higher margins and sustainable growth. Remember, a $3 million company at a 54% margin is more robust than a $5 million company operating 21%. Getting there and managing the P&L to sustained profitability and positive cashflow.

2. Balance Passion with Pragmatism

Found your business with passion but ground your decisions in pragmatism. Passion ignites, but pragmatism pays. Strive for a balance where your zeal complements your business acumen.

3. Implement a 'Boring Business' Strategy

Embrace the power of stability. Consistency. Put the influencer ideas in the closet and let's get down and dirty at the ground level. Innovate within the framework of a predictable, reliable, and 'boring' business model that guarantees steady growth and reduces risks. If that's you, hire that person as your Co-Founder or Head of Operations. I've recently made a day-to-day hire to run our back office, (finance, ops, proj mgmt) and will add an additional Strategic Board Member to help oversee our 2024-2025 efforts and beyond to help with a profitable revenue strategy that sustains 54% as a Service Agency in the climb from $1 to $3 million in 2024.

4. Adopt the Founder-Fronted Sales Model

Place the founder at the forefront of sales efforts. The founder's authentic connection with the product often results in higher conversion rates. Streamline your sales team to enhance efficiency and reduce costs.

5. Rigorously Test All Strategies

Adopt an 'Always Be Testing' mindset. Regularly test and iterate on every aspect of your business. Use data-driven insights to refine and improve continuously. Otherwise, you will get smoked by a younger, more eager founder with a great team and competing product.

6. Craft a MAGNETIC Messaging Strategy

Develop a compelling narrative for your brand. Your messaging should resonate deeply with your target audience, differentiating your company in a crowded market.

What is your vibe in the marketplace?

We provide vibes for a living.

7. Fine-Tune Your Offer

Continuously evolve your product or service offerings based on customer feedback and market trends. Ensure your offer aligns perfectly with client needs and market demands. Being priced too high or too low is the kiss of death. Pricing and modeling your offering to make it a risk-free and trust laiden opportunity for you future and existing custmers is EXACTLY where you should be spending a good deal of your time.

8. Sharpen Audience

Targeting Identify and focus on a specific, well-defined target audience. Tailor your marketing and sales strategies to this audience for maximum impact and conversion. This is what we do, and by aligning ourselves with Wrench.AI , we are able to get the umbrella effect with influencers in the space, along with early clients with easily identifying the exact leading and bleeding edge adopters within your space. THE CHEAT CODE, as I like to call it;)

Want the cheat code?

Wrench.ai and MAGNETIC (CONTENT-LED SALES) are teaming up to give you 500 free credits - Give it a spin today and let me know what you think!

9. Cultivate a Culture of Financial Acumen

Educate your team on the nuances of financial management. Gross, Net, EBITDA. Emphasize the importance of budgeting, cost control, and margin improvement at every level of the organization. Furthermore, model your employees compensation around NET profit vs. GROSS and you change everything.

10. Plan for Personal Growth and Founder Wellness

Acknowledge the importance of mental and emotional well-being. Allocate time for personal development and stress management to maintain a healthy work-life balance. I spend 4-5 hours a day learning, 1-2 hours stretching and walking, and 5-8 hours sleeping, and 6-10 hours working. The rest of the time is spent with my partner and my kids, and that is the quadrant I expect to start to receive 6-8 hours a day vs. work and work being 2-6 hours a day in 2025.

So....

Your Action Plan

It's time to take these directives and embed them into the very fabric of your company's operations. Re-evaluate your business plans, recalibrate your goals, and re-energize your teams.

Need help? I have 2 more spots to serve as advisor for companies looking to restructure their company to align with these goals.

In closing, I encourage you to embrace this blueprint. The lust for growth at all costs did indeed, cost a lot.

Now, I strive to run a, "boring", and consistent business that provides the appropriate value exchange that clients are looking for.

To your success and beyond,

Steve Schmidt

Founder and CEO, MAGNETIC