Strategies to 3X Your Profitability

Strategies to 3X Your Profitability

loyb podcast Aug 30, 2021

Scaling your business doesn’t have to take up more of your resources. In Episode 35 of the Lean Out Your Business Podcast, I share multiple ways you can 3x your profitability without spending more money or more time.

If you have an online course, you most likely are driving leads through an online workshop and more often than not, attendees at those workshops found you through paid Facebook ads. You could increase your revenue by spending more money on ads or by having more frequent workshops but both of those options will cost you resources (either in time or money).

The good news is that you have more than those two options when it comes to scaling your online business and the other options don’t have to eat up your resources.

Whether you are going to pay for Facebook ads or choose to scale in one of the ways we discuss in Episode 35, you are going to need to know your numbers.

  • How many people currently show up for your workshops?
  • Of the people who sign up how many show up during the live workshop?
  • Of the people who participate in the workshop how many convert to paying customers?

Once you know these numbers, we can look at ways to improve them and increase your profitability.

In today’s episode, you'll learn:

  • What it looks like to drive leads through an existing workshop and paid ads
  • Traditional ways to pay for scaling
  • Two ways you can scale your profitability without using more resources
  • How to incentivize workshop participants to show up live
  • How to address objections
  • How to transition potential clients from consideration to conversion
  • A bonus tip on how to decide what to scale

This type of coaching is one small example of the way I work with my clients in the Simply to Scale Business Accelerator course. If you are interested in scaling your business don’t miss your chance to apply by visiting us at leanoutmethod.com/scale or scheduling a call at scalingstrategycall.com

Want to dive deeper? Listen to Episode 35 of The Lean Our Your Business Podcast.

 

"See what's working in your business & focus on optimizing it." -Crista Grasso Click To Tweet

 


Episode Transcript:

0:08

Welcome to the Lean Out Your Business Podcast a show dedicated to helping entrepreneurs accelerate business growth and simplify success. I'm your host, Crista Grasso, and I've been working with businesses for more than two decades to help them lean out and optimize what's working, while eliminating anything that's not adding value. So, if you are ready to get more time back in your day, more profit in your business, and to do business differently growing and scaling on your terms, let's dive into today's episode.

 

0:44

Hello, hello, and welcome to another episode of the Lean Out Your Business podcast, today is a continuation of our scaling series. And we are going to be talking about ways to increase your profitability, and specifically ways to increase your profitability without having an impact on the amount of resources required to deliver whatever it is that you're selling. So, this is true scaling. So, what we're going to do today is we're going to go through an example, we are going to take a program, a fictitious program, and we're going to look at different ways to scale it. My hope in going through this with you today is that you can look at this and see the parallels in your own business and start to think about if you had a program that was similar, or if you think about what you do offer in your business, how would you leverage some of these strategies to scale in really simple and sustainable ways.

And before we dive into the example, doors are open to the Simplify to Scale Business Accelerator. And I'd really love to invite you to apply to join and see if it's a good fit for where you're currently at and what your current goals are for your business, you can head over to leanoutmethod.com/scale for all the details.

But what we're going to walk through today is just one of the things that we do in that program to really look at ways to scale your business and get your time back. Let's go ahead and dive right in. So, we're going to go through, as I mentioned, a fictitious program, let's pretend that in your business, you have a 90-day program that you sell for $2,000. It's primarily course curriculum, it's something that somebody goes and logs into your training portal and does largely on their own, but you also offer bi-weekly Q&A with it. So, there's a total of six calls over the 90-day period, as well as the curriculum that somebody gets forever access to. And here's how you drive leads and sell this program, you do a live workshop, and you're currently doing this workshop once per month, and you're driving leads through paid ads, you're at the point in your business, you've been selling this for a long time. So, you're kind of past to the point of tapping into your warm network. And while you do sometimes get referrals for it, for the most part, 95% of your traffic really comes from cold traffic, from paid ads. Now, on average, every time you do one of these workshops, you close about five clients. So, you have about five clients who convert and sign up to join you, which brings in about $10,000 a month for the program. So, when you look at the annual revenue that this program generates in your business, it's a six-figure revenue stream, $120,000. And it's really pretty highly leveraged, right, there's not a whole lot of time that your team needs to provide supporting it, short of answering some questions as people have them or getting people set up. If they run into any issues getting logged into the training portal, then it's six total hours of your time for Q&A, because you show up live for the one-hour Q&A session every other week and a little bit of time from your team to go ahead and process those recordings and put them out in the training portal.

 

4:12

So, for any of you who have any sort of courses or programs in your business, this probably sounds pretty similar to a lot of what you do. Here is where the scaling comes in, as you're looking at your business. And you're thinking about the number of people that you want to work with, the impact that you really want to be making with your business as well as the profitability that you want to be

generating in your business you want to scale. So, let's go through a few different scaling scenarios. So, in this example, you recognize that this program is a program that's scalable. When you look at your systems and your team and what it takes to really deliver this program, you realize that you could add about three times as many clients without actually having to increase the number of resources that you have to dedicate to the program. It's really a minimal increase for three times as many clients and your current team can handle it within their current capacity. So, you do not need to go and hire anybody else. And you do not need to add any more of your time in order to deliver this program. If you scale it three times bigger than it is today. So, if it's generating $120,000 today, that means you would take that and turn this into a $360,000 program, which is a great revenue stream for your business. So, you recognize that it is scalable, right, it's something that you've got leverage within, right, it doesn't take any more of your time to add three times as many people. And it takes minimal time from your team to add them, which is really just in questions and customer support, and they can handle it within their current capacity, when you look at your actual system that you use to deliver the training and to deliver the modules, there's nothing additional that you need there by adding three times as many people so great, you've got yourself a scalable program, and you have a target of taking that $120,000 3xing it and generating $360,000 in the next year from this program.

So now let's look at a couple different ways that you can do it. And I'm going to start with two of the most common ways that I see. Number one is you look at it and say, I'm just going to pour money in Facebook ads. So, if you know your numbers, and you know that, for x spend on your Facebook ads, you tend to get a certain number of people who sign up from there, you get a certain number of people who show up live, and then from there, you get a certain number of people who actually convert into paying clients. So, if you already know your math, you know your numbers, one strategy for 3xing the amount of clients that you have, and the amount of revenue that you're generating would be to 3x your Facebook ad spend. And I see a lot of people take this approach.

Now another thing that you could do is if you know that every time you have a workshop, you tend to close five people than you could 3x the frequency of your workshops. So, if you're already doing it once per month, you could then do it three times per month. And if all of your conversions and all of your rates and all of your metrics remain the same, those five people that you normally close every month would become 15. These are two of the most common first steps that I see people take.

They work but what you'll notice about both of these strategies is that they require additional resources. So, the Facebook ad strategy requires additional financial resources and in days before Facebook ads, if we're you know, taking it back super old school here, you would have people doing more sales calls or directly reaching out to more customers. Today through Facebook ads, instead of it being more kind of sweat equity that you would be putting into reach greater people, you're opening up your pocketbook instead. And you're investing the financials in being able to do that. So, it's going to take more financial resource, which introduces risk, and it's more money out of your pocket, right? If you're looking at 3xing the frequency at that point, you're increasing your time, that's going to be required from a resource perspective. And that's honestly probably going to get a little bit exhausting if you're used to doing it once a month. Now, that's a lot more infrastructure and a lot more time, that's going to go into doing it three times per month. So, while both of those are viable options, they may not be the simplest or the best option. So, let's get a little bit more strategic about it. And here's where I want you thinking about how you can apply these same strategies in your current business model with whatever you currently have for your scalable offers. And the first one is we mentioned that you know your math, let's dive into what the math for this fictitious program is.

 

8:39

So currently, you get a 20 to 30% show-up rate. So based on the number of people who actually convert and sign up for your workshop, you get about 20 to 30% of people to show up live, from there, you have about a 5% conversion rate of people who actually invest in the program. And one thing that you've noticed is the majority of those conversions come from people who showed up live, there's a very small percentage that come from watching replays, or simply from the email kind of sales sequence that you send afterward. It's really the people who are there with your life, and who take advantage of whatever your kind of fast action bonuses are, or whatever you do to incentivize people to buy now. So, if we just simply look at that, instead of spending more on Facebook ads, instead of doing this workshop three times a month, instead of one time a month. What if you just increase the rate of people who show up live, if you know that most of your conversions come from people who show up live, if you could even double the amount of people who show up live, you're going to double the amount of people who convert, so just start with something simple, something that's already working right.

You've already got 20 to 30% of people who registered to say yes, I'm going to be there and who prioritize the time to be there alive. How can you get another 20 to 30% of people to prioritize that time to be there alive or even more so let's talk about a couple strategies. To do this, the first thing that you want to do is you want to make sure that you're communicating to people that there is some sort of incentive to show up live, let them know that, hey, those who show up live are going to get the most value out of the training. Maybe you have some feedback from other people who've attended your workshops, or anything that you've done in the past, where you can share that in an email where they're like, I'm so happy that I showed up and was able to get my questions answered, or it was really great being here live and getting to interact with other people in the comments, whatever it is, especially if you can get a reference of somebody commenting who did join live, that can help getting people to be like, okay, there is value in being there live instead of just waiting and catching the replay. Now, the other thing is to incentivize them to be there live, not just to highlight the value in that they're going to get more out of it, if they show up live, and they're going to be able to get questions answered and all that, but actually give them some sort of bonus, or something if they are alive.

 

11:05

And I've done a couple different things in the past, I will frequently give anybody who shows up live a free guide, if there ends up being a multi-day workshop, like I'm doing a three-part workshop, like I do for my Simplify to Scale, I give people a free guide when they show up live for any of the sessions. But for people who show up live for all three sessions, I have an additional bonus for them, that really makes and just amplifies the value that they get out of that guide. So that's something that you can do when I've done my longer workshops and my multi-part boot camps and challenges. I've given away success swag bags. And these are physical things that I mail people as opposed to the guide, which is much simpler. And my team just simply pops it into the chat at the end of the session, right. So, there's really very little overhead for my team. Whereas the success swag bags, we actually have to pack and ship and mail packages, the success swag bags are a really effective way to get people to show up and to not only

show up, but to show up for all the sessions. So how I've historically done it is every session that you show up to live, you get an entry to be able to win that success swag back for anyone who shows up to all of the sessions live, they get additional entries, ie additional chances to win. And it really depends on the size of the group. Sometimes if it's a small group, if I'm doing a really targeted niche workshop, I'll just give away one success swag bag, if it's a larger group, and I have quite a few people who are there, I might do three or five even. And the goal with that is you want people to feel like they have a chance to win. Even though somebody could go buy my planner, they could buy my dream chaser magic maker tote, they could buy the Criscara jewelry that I include in the swag bag, and they could probably buy it all for like 120 bucks. Either way, the fact that they might be able to win, it is a great incentive. And people show up and they show up for every session, they really prioritize being there and so if you can think of something for your particular audience that would be value-added would be something that they would want. That's the key, it has to be not what I do for my audience. But what makes sense for your audience, give them an incentive to show up live. And make sure anytime you're sending reminders about the event that you're really promoting the fact that they should be there live and the value of the bonus that they're going to get. So that alone can double the amount of people who show up live for you. And that's one way to scale.

And now if you think about that you didn't pay any more for ads, you didn't have to teach this workshop any more often, it really didn't take you any more resources, you're probably giving them a guide that you already had. And if not, and you're investing the time to create something, you're doing it as a one-time thing that you're then going to be able to leverage and reuse over and over again. So, it's a really strategic and really simple way to scale, double your revenue without doubling a whole lot of time, money or energy investment. Now let's take it further right, because you wanted to 3x we didn't just want to double here. So, the next thing I would look at is your conversion rate. In this example, we said we had a 5% conversion rate, how do you make that a 10% conversion rate? How do you even make it a 6% conversion rate? Right? How do you increase that conversion rate? And so, one of the best ways to do that is to look at objections. If 5% of people are buying 95% of people aren't buying so why are the 95% of people not buying? What is holding them back? Do they feel like they don't have the time to invest in it? Do they feel like they don't have the money to invest in it? Do they feel like maybe it's not something that they're capable of doing or it might be not really the right fit for them? Do you maybe have an opportunity to better establish your credibility so they deepen the trust that they have in you and believe that you are the person who can help them solve their problems. So really focus in on those objections. And then there's a couple different ways that you can address objections, you can do it in your sales and nurture email sequence. If you can make sure that you're addressing objections in the different emails that you send, you can also do it in your workshop itself. So, you can update the material in the content in your workshop. to really talk through those objections, you can either directly address them, or you can indirectly address them by giving examples or giving case studies for incorporating it into the story that you share about your own journey where you're saying, you know, Susie joined and she was really worried that she wasn't going to be able to dedicate the time to this, she was super overwhelmed, before she joined the program. And so, she wasn't sure if she was going to commit, that she was actually going to follow through. But the beautiful thing is that because she followed let’s say the Lean Out Method, because this is true. This happens all the time for people in Lean Out Method, right, because she followed the Lean Out Method, she actually got back so much time in her week that not only was she able to get the results in the program, but she was able to get them twice as quickly and still have time left to take Friday afternoons off every week, right if you can share a

story like that, which that is kind of a real story of our Lean Out Method. But if you can share real stories like that, that addresses the objection that somebody who was super overwhelmed and didn't think they had enough time, was able to get results, get a Friday afternoon off and get things done quicker than they thought that right there helps to address the objections. The other that you can do and I do this in my planner webinar, is, you might think that creating a planner is going to be really expensive, you might think that creating a planner is going to be really time intensive, you might think that you don't have an idea that's different enough for it to be worth it to create a planner, well, let's address all three of these. And I actually build that into my training. And it's part of what I train people in my webinar on how to create a plan or think through what the objections are and what the reasons are, why people might not be buying. And then make sure that you're addressing those objections. Again, you can do it through kind of your sales and nurture content through your emails, or your social media posts, or whatever you're doing to really get people from consideration into conversion. And or you can do it in your actual workshop, or training or challenge or boot camp or whatever you call it itself. That right there. If you took your conversion rate and bumped that up a bit, I think you can see how a combination of getting more people to show up live and more people to convert is going to take you from $120,000 to $360,000. Again, without spending any more on ads, and without having to increase the frequency that you're doing your workshop.

 

17:00

So here's a tip that I do want to kind of round out this discussion with and that is always look in your business at what's working and focus on optimizing what's working, instead of doubling down on and trying to fix what isn't working, if you in your business have two different programs. And one of them is this fictitious program that we've been talking about it we'll call this Program A right and it's clearly performing well, it's doing six figures in consistent revenue in your business, and you have Program B that's really not performing well, at all, what is your natural tendency going to be most people's natural tendency is going to look at Program A and be like, oh, that's pretty solid, generating six figures great, I'm going to double down on Program B and get Program B working. And there are times in your business, when you look at your scalable offer suite where maybe it does make sense for you to fix Program B. But more often than not the majority of the time, you are going to get far better results, you're going to have a larger impact and be able to help more people, you're going to drive more profitability. And you're going to be able to scale in a way that's really simple and really sustainable. If you get rid of Program B or just you know, table Program B for right now. And you double down on an optimized Program A, you've got something that's already working, take what's working and amplify it, and leverage that to have the results and the impact that you want in your business. So, none of this is to say that you should not double your spend or triple your spend on Facebook ads, or increase the frequency of the workshop that you're doing in this example, maybe both of those make a lot of sense. And it's quite common for us to increase our ad spend. The key is you want to increase your ad spend on something that's already working, you want to scale and amplify what's already working. And so, it really can help to look at some of those other factors, like the examples that we gave of your show-up rate and your conversion rate, which those were just two of many examples. There's a lot of other things that you can do as well. But you want to kind of look at those things and optimize those things first, and then when you double your ad spend or triple your ad spend, you end up getting even more leverage from that activity. The same is true for increasing frequency, just to make sure if you do that it makes sense to do it, and that you're going to end up getting the best results possible in exchange for that additional time and energy that you're investing in it. So, I hope you got a lot of value out of today's episode and this really helped you think about how you can scale a program in your business.

Again, doors are open to the Simplify to Scale Business Accelerator. And this is the sort of thing that we do inside the program, we identify your entire scalable offer suite, we help you to simplify in your business as well as to then scale your business after you've simplified and lean out all the stuff that's not working and it's not value add. So, if you are interested in applying, head over to leanoutmethod.com/scale or if you'd like to chat with my team and really just see if it makes sense for you right now schedule a call at scalingstrategycall.com

So again, hope you got a ton of value out of this session. I hope you have a great week and I will see you again next week.

 

20:48

Thank you for joining me for another episode of the Lean Out Your Business Podcast. I hope you got a lot of value and actionable insights from today's show. And we'd love if you take a moment to leave us a review. If you have any questions on today's episode or on how to lean out your business join us over in our private Facebook community where every week, we do live training and Q&A. I'd love to have you be part of the conversation head to leanoutmethod.com/group to join us. And before you go, be sure to subscribe to the show so you're the first to know when we release a new episode. We'll see you next week.

Liked this post? Click here to share it!

Subscribe to our Apple Podcast

 

by Crista Grasso

Crista Grasso is the go-to strategic planning expert for leading global businesses and online entrepreneurs when they want to scale.  Known as the "Business Optimizer", Crista has the ability to quickly cut through noise and focus on optimizing the core things that will make the biggest impact to scale a business simply and sustainably. She specializes in helping businesses gain clarity on the most important things that will drive maximum value for their clients and maximum profits for their business.  She is the creator of the Lean Out Method, 90 Day Lean Out Planner, and host of the Lean Out Your Business Podcast. She is also the founder and CVO of the Profitable Planner Co and Criscara Jewelry.

WORK WITH CRISTA

 Join us for Lean Coffee every week

where we do a mini-training followed by answering your business questions LIVE

JOIN THE LEAN OUT CIRCLE

Never Miss an Update

Like this post?  Well, there's more where that came from.  Sign up to get lean tips, free resources, and doses of inspiration delivered to your inbox to help you accelerate results and lean out and level up your growing business!

Your information is always safe with us - we promise we'll never share it.