Build your Cash Machine
BUILD YOUR CASH MACHINE Workbook
Build your Cash Machine
My Commitment to You Whether you have owned a business before or never even thought of it as a possibility you are joining an elite group of motivated people who are working through my program to learn something new, supercharge their financial security, make some extra money, and eliminate the burden of debt. If you are committed to reaching your goal to put new cash in your pocket in as little as 3 weeks I guarantee that this manual will help you do it. I’m talking about putting money in your pocket using the skills you already have. The same skills you have used to make money for other people while you have been trapped with a limited income and a limited lifestyle. The first thing I want you to remember is, you don't have a fixed potential, no one ever said you could only make so much money, or have so much success - so why live on a fixed income? No one cares more about the cash that goes into your bank account than you. It’s time for you to take control of your cashflow and your future. I wrote this manual so you would finally have a step-by-step process for getting that extra cash you need when you need it and this workbook won't leave you stuck in an endless cycle of planning – never getting out of the thinking stand and into the making money phase. I am giving you crystal clear steps so you know exactly where you need to go and the actions it takes to get there. And the best news is, it's simpler than you think! When most people grow frustrated in their jobs and start thinking of making a change, they often get stuck sitting behind a computer aimlessly searching for some way to make money. But, in the end, the key to success is ACTION. Just like every other area of your life! Your action creates results - and those results draw attention – and that attention draws people into your life to help you maintain your success. By taking the actions in this workbook, you will earn new money. Once you have experienced that feeling of success, I guarantee that you will not want to go back to the way things were before. The amount of confidence you will feel when you are in control of your financial future is unbeatable. When you are committed and taking the actions necessary to have what you really want, you will find the financial freedom you have always wanted! You owe it to yourself to follow this process to the finish line.
Build your Cash Machine This workbook focuses on the five areas that can make you cash immediately. Those areas are: 1) Identifying the money making skills that you already have: Learning a new industry takes too much time and research. Fast cash requires you to use the skills you already have. If you are a teacher, be a tutor. If you are an accountant, assist with bookkeeping or tax planning. 2) Set your plan in motion: Everyone has a product or service they can sell. To make the most of your fast cash strategy, you must have a clear plan so you know how to work with your customers when they find you. 3) Marketing your skills: How many new leads must you generate each day to reach your financial goals? 4) Cash in on your skills: Cut to the chase and cash in when you deliver your product and service. 5) Building a team: Adding the right teammates at the right time to help you grow your cash strategy. In the sections ahead, you will identify and complete each of these areas. So now it’s time to get to work and start reaching your financial goals. The tools are here, the steps are easy to follow, and the payoff is great – so it’s time to get to work. Are you ready? Go! Loral Langemeier
Build your Cash Machine
Section 1 - Build your Cash Machine You’re going to hear me talk a lot about something called a CASH MACHINE and at this point, you may not know what it is, but you can trust me when I tell you, it’s the answer to your financial goals. A Cash Machine is exactly what it sounds like, a plan you put into action that literally generates money for you. In a general sense, a Cash Machine is anything that generates income, from the largest corporations to the smallest roadside fruit stand. There are big and small Cash Machines in every corner of the globe, but not all of them create the financial freedom you are looking for. The drive to have a comfortable lifestyle, free of debt and stress is the dream of just about everyone I have ever met. We all want to know that the bills are paid and there is enough money in the bank to cover the cost of anything I may want to buy – but too few people ever really know what that feels like. Most people are stuck making money for other people - trapped in a thankless job that keeps them struggling month to month and never really getting ahead. And why are they struggling? It’s because they are stuck in someone else’s cash machine. They are fueling the financial dreams of some other person. Sometimes it’s a business owner they know, but often times it’s a faceless board of directors, or a group of investors and stock holders. They are using their time, talent, and skills making other people rich. ENOUGH IS ENOUGH! At some point in your life, you may have been trapped in this cycle – you may even be trapped there now. Perhaps you’re the type of person who realized they were trapped and got out only to realize they don’t know what to do now, and the bills are stacking up. It’s okay, there is a simple formula to create a successful Cash Machine that you can depend on for years to come – a Cash Machine that will support your lifestyle today and ensure a comfortable retirement in the future. Anyone who has ever made money in this world did it through a Cash Machine and now it’s your turn. And there is a special name for people who realize their potential and build a Cash Machine for themselves, they are called… ENTREPRENEURS.
*Entrepreneurs Lead the Way
Build your Cash Machine Entrepreneurialism is the best way to build wealth! If you want to be more successful, then you need to develop your entrepreneurial skills and leverage the unique skills and abilities you have for your own financial gain. Successful entrepreneurs know how to leverage their vision and how to use other people’s time and money to build their Cash Machine. If you are working a job and making somebody else rich you are you trading time for dollars. Now is the time to learn how to leverage your time to build wealth for yourself and the people you care for. Too many people realize they need to do something different in their life and start thinking about getting out of the rat race, but that’s all they ever do, think. They spend all their time getting ready to get ready to make a change but never actually do it. It’s time they get over it. And get started already! Imagine being able to have more cash in your pocket and in the bank. Imagine being able to take luxurious vacations and then take a tax deduction for having gone on vacation. Imagine being debt free and living comfortably anywhere in the world. You can do this! It’s totally possible, and you can start today. The economy can change at any moment. One minute the stock market is riding high, the next it’s in the basement and people are out of a retirement. Real estate prices are down one day and up the next; and banks are just a fickle, not lending one day and then opening the vault the next. Companies go through huge hiring frenzies only to turn around and start laying people off. What’s a person to do? Well, you can start with taking charge of your life and stop blaming others. I know it’s easy to do, but in the end, the amount of money that’s in your bank account is up to you – and no one else. As long as you are dependent on working for someone else, you are limited in what you can accomplish because you’re at the whim of someone else - you can be fired at any time. Wouldn’t you rather be your own boss, calling the shots? Wouldn’t you rather be the master of your own destiny and decide when you’re going on vacation, or fishing, or to the spa? If that makes you feel intimidated and scared, that’s okay. Fear just means you don’t know how to do it just yet. Stay with me and follow this program – before you know it you’ll turn your fear into courage and be cashing checks in no time. Personal financial success takes a spirit of independence and freedom. It’s the kind of courage that discovered the Americas, drove the industrial revolution, and shapes empires. Christopher Columbus didn’t come across to America just so people could get jobs and 401(k)s – his sense of adventure, risk, and vision carried him on a journey that changed history and set the stage for you to claim
Build your Cash Machine financial independence. That’s the spirit of an entrepreneur – and it’s inside each one of us. Entrepreneurs are risk takers and visionaries. They break through barriers, seize opportunities, and inspire others to reach for something better in life. It's time to step up and be a leader in your life. You can follow in the footsteps of other entrepreneurs who came before you and lead the way for others to follow behind you. You can make a lot of money in the process – finally making a living doing something you love, using the skills you already have. I’m going to take you step by step through the process of building your Cash Machine. Make money to GROW vs. make money to pay off debt Most people are stuck trying to pay off debts and cutting expenses. This is the wrong approach. If you want to get ahead and climb out of debt, you need to focus on getting more money – money that will ease the stress, repay the creditors, and put you on a path to financial security. To accomplish this, you need to create more cash now; And to do that, you need to play big and take real action. Stop sitting on the couch worrying, stop working yourself to exhaustion making someone else rich, stop limiting your potential and claim your freedom. Ask yourself, "What really happens when I pay off all of my debts?" For most people, it is only a short time before they just begin accumulating debt again to support a lifestyle they want but lack the means to live it. Some people are in debt because of the desire for a bigger, better life – and that’s okay. You can have all of these things WITHOUT going into debt. There is no big secret to building a bigger life, you just need to create the cash to support it! If you want a latte, earn the extra $3 and buy a latte. There is no reason to deny yourself; all it takes is creating the resources you need to support the life you’ve always wanted. This doesn't mean you should ignore your debt entirely. All you need is to put a plan around your debt and then stop worrying about it. Get an action plan in place that will handle your debt recovery and then let it work while you focus on creating more money for yourself. A simple plan of paying $50.00 more than the minimum on your lowest balance card is a start. When that card is paid off, take the money you were paying to that card and add it to the next lowest card payment you’ve been making and paying it off. Keep following that plan and you’ll be amazed at how quickly your credit card debt is gone. If you really want to tackle your debt you can get a full debt plan in my The Millionaire Maker book. Once you have put a plan around your debt, you need to move forward and keep your focus on cash creation. You need to have a “take no prisoners” attitude.
Build your Cash Machine When you have learned to create consistent cash flow, you will notice that your bad debt will disappear accordingly because you will have the money you need to buy the things you want. No more vacations on credit cards, you can pay cash. No more 5-year car loans when you can cover it in 2. Building your successful cash machine is the powerful step you need to creating the financial freedom you dream about. Create new money and grow wealth vs. save your way to wealth There's a theory that you can simply save money to get to where you want to be – living like a pauper now so you can have a retirement when you’re 80. But why live scrimping now and maybe never live to see the pay off. Yes, it's a good idea to save money. But, why spend time worrying about some future date that may never come when you could be building a cash machine that will support you today, and every day for the rest of your life? Do you feel a sense of urgency? Are the bills piling up, or college tuition for the kids adding up? Are you desperate for a real vacation and some time for yourself? Do you want more cash income in your pocket and in your bank? Then, it's time to take action! It's time to build your Cash Machine!
*Why Build a Cash Machine? Building your Cash Machine is easy when you know how to do it. Your goal may be to simply make an extra $500 to $1,000 a month. That's not rocket science when you have a solid game plan and you follow through. There are a few key elements I want you to keep in mind as we go through this process. Have a note pad to write ideas and keep track of your insights so when it’s time to take action, you already have everything you need. Develop Your Own Personal Economy You can't really do that much to affect the global economy. If times are great or times are tough, as an individual you’re at the whim of the market – riding the rollercoaster along with everyone else. So, what can you do? You can develop your own Personal Economy. You see, what matters most is what's happening around you. In your city, in your county, in your state. Some areas are doing better than others. Some countries are doing better than others. People in those areas that are thriving are experiencing a different economy then those in a depressed area. Take a look at the area you live in, are you in a booming economy that’s on the rise, or are you seeing things fall apart all around you? Regardless of where things sit right now, they will change, you can count on that.
Build your Cash Machine To develop your own Personal Economy, you need to start by looking at where you get your information. Do you rely on the national media to tell you what's going on? You'll likely hear a drumbeat of doom and gloom in the news – failing businesses over here, foreclosures over there, Armageddon is lurking on the horizon – it’s all so dramatic. I'm an optimist by nature, but I'm also a realist; I know that drama sells and the news will lead with anything that is tragic. Telling tales of dread gets more eyes on their show than highlighting gains in the market, expansion of new business, and the growth of cottage industry. You need to educate yourself if you want to take control of your life. It’s up to you to be your own news source – surround yourself with the relevant information that will make building your Cash Machine easier. Where should you start? Start by surrounding yourself with people that will help to give you feedback. You need people who will encourage you, inspire you, and empower you to keep going. You need to build a team. It might seem logical to start by asking your family to join your team. In some cases, this could be a mistake. People who depend on you for support have a need for security and this can make them hesitant to take risks. You need team members who don’t have a financial or emotional dependence on you. Building a strong support team is an integral part of your success and I'll talk more specifically about that in Section 5. Another step in developing your own Personal Economy is to become your own source of income. If you control your financial destiny, you are far less likely to be effected by larger economic conditions. It’s like creating a financial safety bubble around you and your family. Many people face financial obstacles that prevent them from living the life they want. That's because when times were good, they were living beyond their cash resources and using credit cards to fund their lifestyle. That's a big mistake. If you want to build wealth, you need to run your money like your own business. Credit is a powerful tool that businesses use to grow and expand – they use it knowing that their business model can support the added debt load. It’s called “good debt” when that credit is used to generate additional profit – it’s called “bad debt” when credit is used to buy products and services that don’t pay you back. Mastering your finances and using the tools you already have, like your credit, as leverage to build a successful Cash Machine is the only effective way to use credit, everything else is off limits. Another mistake people make is to hoard. They collect and collect and never let anything go. These are the people who live with a constant sense that there is a limited amount of resources to go around and someday there won’t be any thing left. As a result, they collect and store things like old clothes, papers, toys, shoes, cars, wood, and any number of other things they will probably never use again but fear throwing it away. They say, “I may need that someday” and they drown in their fears.
Build your Cash Machine Other people are cocooning. They are hiding out and shielding themselves from reality – from the results their choices have created. They are also drowning, praying no one will see the “mess” they made in their life or the “bad” decisions that lead them down a road of financial pain. The fact of the matter is, there is enough to go around! You can be financially free, you don’t need to scrimp and save for the unforeseen future, you can enjoy life today. It's a time to get into action and look for ways to add value to your everyday life rather than living in a consciousness of “lack and limitation.” Trust that you have the power to be financially free and live without fear, it’s totally possible – and this Cash Machine is your way through. Too many people lose their jobs and are now unable to find a new one. They are living on their savings and that’s running out. These people are too afraid to do something new or challenging and take control of their life and that fear means they face the risk of losing their home. They face the risk of being hounded by creditors – but there is another option. It’s time to do whatever you can to get more cash in your pocket to ensure you can pay your bills and begin creating the life of your dreams. Let go of any emotional baggage you may be carrying from what's happened in the past and get focused on the opportunity that will push you forward to the next phase of your life. You are on the verge of something amazing and I'm going to help you get there! It's easy to get stuck focusing on all of the negative news in the media. In reality, that's just one way to look at things – the dramatic way. I believe we are experiencing an incredible wave of opportunity that will unlock the creative energy of millions of people and unleash a flood of new wealth over the next 10 years and longer. Many people expect the government to solve their problems. They want a magic pill to get them out of the mess they created through a tough economy, poor lifestyle choices, or unforeseen expenses. It's not going to happen. The good news is that you can bail yourself out! Now, let’s examine the financial side of your life. How much money do you want to make with your Cash Machine? This is a broad question, I know. Many people will say, “unlimited amounts of cash.” But let’s start with today in mind. What do you need in order to get through today, this week, or this month comfortably?
Build your Cash Machine The answer begins with finding out: • Where are you now financially? You must be completely honest with yourself. No sugarcoating the truth. Look at ALL your debt, ALL your bills, ALL your expenses. Once you have a clear picture on that, measure it against your current income. It may startle you to see that you’re really just scrapping by, or you are in deficit every month. It’s OK, knowing your current situation is the first step to turning it all around. •
Where do you want to be, financially? With a clear idea of your financial situation, you will know how much money it will take to break even, or pay down your debt, or invest in some property. You’re looking ahead at the future, to a time when your bills are paid, your savings is full, your retirement is covered, and there is plenty left over for a great vacation.
Figuring out the difference This is what I call “the GAP,” the distance between where you are financially, and where you want to be. This analysis of your finances will become your road map for creating financial freedom and building a lifelong Wealth Cycle that can sustain you indefinitely.
Now that you have done a preliminary GAP Analysis, you can make your first Cash Machine goal and decide how much extra money you would like to create in the next month. Case Study #1: Jennifer and Todd H. Ages – 46 and 49 Location – Phoenix, AZ Kids – 19 and 22 (in college) When I first began working with Jennifer and Todd, they were both stuck inside frustrating "corporate world" jobs. Jennifer worked as an executive at an insurance company, while Todd was tired of his job as a nurse at a private hospital. The couple came to work with my personal coaching program with the idea of beginning a senior care business, but neither had run a business in the past. However, from their experience in the health and insurance industries, the couple understood the vast opportunity available in the market as more and more Baby Boomers began to retire. At first, the couple was unsure of whether they would need a full facility to complete this business, or whether they were simply going to provide at-home service. Because both were eager to leave their jobs, the fastest path to cash was in providing remote care. The services they originally offered included
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Build your Cash Machine running errands, light home maintenance, medical assistance, and social activities. However, because of the urgency around Todd's desire to leave his job, we expanded their vision to include ancillary services such as yard care, transportation to social groups or medical appointments, and a variety of other services. These services also allowed the couple to expand outside of the senior market if they cared to do so, while eventually bringing on a team as the business continued to grow. Case Study #2: Nancy B. Age – 36 Location – Chicago, IL Kids – 10, 14, 16 I met Nancy shortly after she had gone through a painful divorce after 18 years of marriage. She was a stay at home mother for her three kids, which often made her schedule non-negotiable due to parenting obligations. The vast majority of her time was spent either transporting the kids to school and activities, or otherwise spending time with them at home. Although many people in Nancy's situation turned to tech-type jobs, she didn't have the experience or skill in this area. The thing that jumped out at me right away was how dedicated Nancy was to children. Not only was she always with her own children, but other children from the neighborhood seemed to gravitate toward her home as well. While the other parents were at work, Nancy was happily tending to the needs of the neighborhood. Naturally, it seemed that the best type of cash machine for Nancy would relate to children, which was both her passion and area of greatest expertise. Nancy worked to develop a life skills program for kids, which included different lessons in both a group and one-on-one format. The classes included such areas as home maintenance, cooking, sewing, finances, music and cultural appreciation, emergency preparedness skills, and team building. Because Nancy was so well known in her community, parents were happy to pay the cash for time and supplies. Nancy quickly realized that without a college degree or years in the workforce she had to capitalize on being a stay at home mom for so many years. What most women don’t realize is just how much talent it takes to run a household, and in today’s popular two parent income model, most of our traditional skills are not being passed on to the younger generation. Nancy turned activities that she did every day for years into a very sought after service and education company that
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Build your Cash Machine took what she knew and instantly created cash without any extra training or time spent away from her kids. To make sure she was in compliance with local laws, Nancy also spent some time at the local city office. Over the period of a few days, Nancy went from being a concerned mother to a legitimate business. As an added bonus, Nancy's children are actively involved in the business. They have helped her to develop new classes, games, and activities. They often help run the programs when Nancy is working with younger children or a different group. As a result, Nancy pays them for their work! What a great lesson to learn at such a young age! Case Study #3: Samantha W. Age â€“ 57 Location â€“ Ft. Lauderdale, FL No Kids -Widowed (Husband died leaving the estate in shambles and not protected) I met Samantha at one of my Cash Machine Workshops (CMW), where she spoke with me in the back of the room. After only a few words, she was having a hard time holding it together. Only a few weeks earlier, her husband passed away after a long battle with cancer. For most of their marriage, he had taken care of the financial obligations of the household...or so she thought. Following his death, she discovered that he died without a will, leaving many of their assets tied up in probate for a time. Furthermore, her job in human resources for a local restaurant group was being threatened due to the company's intention to force Samantha into an early retirement. Even after a short conversation, it was obvious that Samantha had a number of different skills that could translate into a business opportunity. During a subsequent coaching session, Samantha's organizational and planning skills were identified as her greatest area of strength. Samantha's years in the hospitality industry made her an expert in events such as company retreats, trainings, celebrations, and PR events. Furthermore, she often organized family events such as reunions, birthday parties, anniversaries, weddings, and other gatherings. We quickly worked out a plan to use her skills and contacts within the community to launch an event planning business in both the residential and corporate space. Samantha was extremely dedicated to reaching out to her contacts and had an overwhelming response. Within only a week, she had already booked three major events! Because of Samantha's networking skills, she quickly made partnerships within her local community with a local DJ and photographer.
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Build your Cash Machine Whenever anyone requested a service that Samantha didn't offer, she was quick to find a teammate and shared the revenue with them. Within a month, the business was generating enough income to allow her to focus completely on the business, giving her the chance to retire from her position at the restaurant. Case Study #4: Joe O. Age â€“ 27 Location â€“ Seattle, WA Single Without Children When I first met Joe, at a business conference, he instantly struck me as a brilliant young man. He had recently graduated with a Bachelor's Degree in Business Administration, but like so many others in his age group, Joe was unable to find any type of stable employment. Even during our first conversation, Joe seemed to have a great deal of interest in becoming an entrepreneur, but he was having difficulty with figuring out exactly what area he should pursue. Since he had essentially given up on his job search, Joe was spending the majority of his days on social networking sites such as Facebook, Twitter, and Linked In. In addition, he had also created a blog page to discuss local arts, music, events, and entertainment. When discussing his skills further, it became obvious that Joe had been developing websites and working with technology for quite some time. He even maintained websites for a few of his friends, but wasn't charging them at all for the time and maintenance! As Joe began to take action to build his Cash Machine, he realized he needed help with some of the areas he was unfamiliar with. He asked for referrals to local businesses that could help him. He was referred to an accountant who specialized in working with small businesses. He consulted an attorney to create a contract for clients. He even found a website developer who helped him to create a Wordpress site. Even experts sometimes need help in the beginning to get the best result. While Joe was comfortable connecting with people online, it was clear he needed to take more action to find clients in his local community. Although connecting with people online is increasingly popular, there is still no substitute for in-person marketing and networking. The first action steps I gave to Joe were to seek out and join his local business associations and groups. Most of the time, the people most in need of these types of services will NOT be able to find you online. Thatâ€™s because they aren't there to begin with! Joe quickly received some leads for website development and was well on his way to a successful business.
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Build your Cash Machine
*6 Reasons You Need to Take Action Now If you are feeling a sense of urgency that something needs to change soon, or are facing any financial challenges and struggling with making any decisions, then it’s time to take action. Start by answering the following question: What is the biggest financial challenge you are facing today? _________________________________________ You might be dealing with bills, tuitions, medical expenses, car payments and repairs, difficult real estate investments, and any number of other challenges that face people just like you. Write down the one that weighs on you the most and let’s take a look at solving it. Most of the financial challenges that people face today can be solved simply by making more money. In fact, an additional $500 to $1,000 per month can make a big difference for most people. But, how do you generate an extra $500 to $1,000 a month? This workbook answers that question and will give you the step-by-step instructions you need to do it for the rest of your life. And if you follow the steps laid out here, you will get results. But, don't wait. There are a lot of good reasons to take action now. And if you wait, it's unlikely your situation will simply get better. In today's economy, you need to change what you're doing and take advantage of the opportunities that are staring you in the face. Let's consider 6 great reasons to take action now. 1. Companies are laying off employees The days of having lifetime job security are long gone. Most people are lucky to be employed for 3-5 years as technology improves allowing less people to do more work. The new model is that companies are squeezing more work out of fewer people. They expect employees to accomplish more using advancing technology tools, and one day you could be one of the casualties. There is no guarantee you will have your job a year from now, or even six months from now. And if you lose your job, they may not even replace you. They will simply give your work to someone else and expect them to do both jobs. Sounds familiar? You might even be one of those people who is now shouldering the responsibilities of two, three, or even ten employees – and you’re sick of it.
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Build your Cash Machine Why be dependent on a company that has no vested interest in your future? You can have multiple sources of income and ensure that a change in the office doesn’t have to mean a change in your lifestyle. 2. Stock market is gyrating and real estate is at a low Long term investments are great, real estate and the stock market have historically paid out over time, but what about today – or worse, tomorrow? What if the year you retire, the stock market takes a dive and your 401k is gone? Will you have enough money to live on when you want to stop working? The answer for most people is no. That means they will have to continue working when they would prefer to travel, spend time with family and enjoy life. Age discrimination will prevent many older workers from being able to get and keep good full time jobs. So, many people will have to take on a part time, less desirable job. Do you really want to have to work as a greeter at a retail store in your golden years? It's kind of sad when you see a senior citizen greeting people as they walk into a store. Imagine being in their shoes when you're 60, 70 or even 80. If you don't want their fate, then you need to get going now. You need to start creating a dependable cash system that will support you today and in retirement. There is no better feeling than knowing you’re taken care of regardless of what happens to the economy. 3. International competition is growing America used to be the clear leader in the world economy. But, if you haven't noticed, times have changed. China is a growing economic power and many jobs have been outsourced to India. You may not have realized it, but you are caught in a global battle for the future of the world economy. Your job could be at risk, or your children’s job. What can you do? It starts with being less dependent on a job and building a strategy to continually grow your cash machine so it will weather the storms of the future. 4. There’s NEVER been a better time! There has never been a better time to start a Cash Machine and claim your financial freedom. Economies are always changing and new opportunities to capitalize on your skills are emerging every day. Your Cash Machine means you have the opportunity to step in and develop relationships with other business owners and individuals who are hungry for a leg up – people looking to leverage the current market and generate huge profits for you and them. This spirit of cooperation is the fuel you need for your Cash Machine to thrive, and there’s never been a better time.
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Build your Cash Machine
Think about the entrepreneurs from prior centuries – Thomas Edison, Albert Einstein, and Ben Franklin. You have so many more opportunities and so many more resources than they ever had. Imagine life without the internet, or even without electricity. What could Einstein do with the computing power of today? What would Ben Franklin do with a mobile phone? What could Thomas Edison do with the advancements in manufacturing? The possibilities are endless and the stage is set for you to have the success you’ve always dreamed of. 5. Making an extra $500 to $1,000 is easy! Many people are struggling in their finances. People are losing their jobs. They are losing their homes. They have maxed out their credit cards and feel insecure about their future. Most people react by trying to cut expenses. That's the wrong approach to take. You need to focus on making more money. Why add misery to frustration by scrimping and self denial? What would you do with an additional $500 a month? What would you do with an additional $1,000 a month? The possibilities are endless and the skills you already have can make it a reality. With just a few hours a week and a great plan, you can literally make $500 $1,000 every month for the rest of your life. If you’re ambitious, you can replicate that process and make it $5,000 or even $10,000 a month. It’s totally up to you – it’s just a matter of “copy & paste.” 6. Technology makes it easy! One of the reasons outsourcing to other countries is so popular is that technology has made it easy to communicate and collaborate online. Tools like Skype allow people to talk at a fraction of the cost of normal phone lines. Workgroup collaboration tools allow people to share documents and files. Here's the good news, that same technology is also making it easier to create a successful Cash Machine. You can build it and run it from home. That will help to keep your costs low and ensure you can stay flexible as the future brings new opportunities. Remember, the goal here is to put more cash in your pocket, quickly – there’s no need to get bogged down in high overhead and expense.
*Finding your Fastest Path to Cash Developing an entrepreneurial mindset Most people are scared of being an entrepreneur and business owner. Being an entrepreneur is a lifestyle – an exciting way of life. There are unlimited possibilities. Some books say, "Do what you love and the money will come" but
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Build your Cash Machine it’s not always the case. If you like to sit on the couch and watch TV, there are few, if any opportunities waiting for you. My whole goal is to help you make money. But, you have to be realistic and you have to be prepared to work at it. You will have to work hard to create it, but it won’t be difficult if you follow my instructions. This workbook is about taking the skills you have today and turning it into a business, a Cash Machine that pays you to do something you already know how to do. I want you to get focused on one concept and get into action. Your “fastest” path to cash does not make time for jumping around from idea to idea – trying something and then giving up. This is about follow through. The principal skills you need to create your Cash Machine and put new cash in your pocket as soon as possible are: 1. Marketing 2. Sales 3. Operations 4. Finance 5. Leadership These key areas are the building block of your success and I’ll cover them all as we go through this program. I want you to start thinking of yourself as a money maker. Focus on what’s going to put money in your pocket sooner rather than later! The Fastest Path to Cash I encourage you to get very focused as you work on this program. If you're doing the right thing, then you'll get output. If you’re working week to week and not getting any output, then you’re doing the wrong thing. We find that people do it out of sequence all of the time. Output creates results which puts money in your bank. Many people are just moving paper around, but not really getting any output. They’re not doing anything to generate cash. Spend your time on some very committed actions. When you start out, start with something simple. Have 3 or 4 offerings so people can buy something and get started with you. This isn’t about sexy. This is about getting cash. You will be able to build the business of your dreams later. Let's be practical. Some people have the skills to become a handyman. They can simply go out and find someone in their neighborhood who needs help with their “honey do” list.
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Build your Cash Machine What is it that you are really good at? What skill sets do you have? Are you good at spreadsheets? Are you good at eBay? Are you a good photographer? This is a clue. Pay attention. Start noticing what you are good at. What I notice about people is that they don’t know how to ask for money. They are doing a lot of things for free. It’s a disassociation. What are YOU doing for free? What are you doing in your job? Why can't you do that in your own business? Somebody is already doing what you do. Someone already has a model. Someone already has a product funnel, a marketing process to turn prospects into customers. Your job is to go find those people and model them. I can guarantee if you don’t have an order form and a pricing model, you won’t get the cash. Until you put a price to it, you won’t get started. Some people are in idea land. They never get started. You’ve got to get this skill set nailed. Don’t pre-judge any idea. Let the numbers and testing interpret that. Go back as far as you can to jobs and things you never got paid for. If you would have asked for cash, you might still be doing it. Let’s not get caught up in what needs to be done next. We’ve got to move. We’re not going to plan, to plan, to plan. Our goal is to get you to cash. Use the money that comes in from your business to fund the business. You may be thinking about getting capital to start your business. Don’t spend that kind of money. Don’t get that level of debt. Just start building your business and fund it as you go. Some people want to build their dream business from the start. Don't try it. Do a simple business first. Our goal is to get you into a simple Cash Machine, then you can develop your marketing, sales, finance, operations and leadership skills. Let’s make fast cash. Then, build your dream business. What is your fastest path to cash? What can you do to make money? Mow lawns, handyman, virtual assistant, personal concierge, etc. This may not be your dream business, but it will give you money and allow you to build your skills so you can work toward your dream business. You need a vehicle to start making money. Don’t start off with a big, slick website. Let your business fund those projects. Look for ways to leverage other people’s databases and other people’s communities.
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Build your Cash Machine If you are stuck in making a decision, notice that. Set a goal to make a decision by a certain time. Find an accountability partner and get with them to discuss the decision. And as soon as you can, get a coach. A coach can help you set goals and keep you accountable and on track. Forms: Discover your Skill Set Generate and Model the Idea Design the Cash Machine Plan Build your Team and Market your Cash Machine Don't Reinvent the Wheel Write down your goal and look at it every day. You need to work it backward. How much do you need to earn per month? How much do you need to earn per week? How much do you need to earn per day? The reason I think 90% of businesses fail is that they are trying to reinvent the wheel. They are trying to make things up. They are not trying to model businesses that are already successful. They have no experience, no history, and they are not following a model. It just doesn’t work. Find a company with a history. Find a company in business for 5 years or more. For some of you, you are in a crisis. You need to make cash today. Seriously! You know it. Are you finally ready to do something about it? You’ll probably be shocked at how good you actually are. You deserve more. You deserve better. You need to ask for the cash every day or you won’t get the money. I work with a lot of real estate people. I talk to so many real estate agents and they say, "I am still learning." I say, "what are you learning?" Get real and get realistic. Our goal is to get you to cash. Your learning is in the experience of learning the deal. You need to ask for the money every day. Ask for the money! Ask for the deal! That's how you learn. That's how you get experience. You have to be in cash flow all the time. You want to develop passive income. But, don’t give up your current cash flow. If your cash flow goes down, you have to change what you’re doing. Day to day cash flow is what keeps you alive. People are not paying attention to cash flow. You need to pay attention to your
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Build your Cash Machine cash flow every day. Watch what money comes in and watch what money goes out.
*Building your Cash Machine You’ve taken the first step and started working with my program so I know you’re ready to take charge of your life. Now it’s time to take the next step. It's time to build your Cash Machine. This is where the magic happens. Over the years, I have helped thousands of people become their own personal success story by giving them the tools they need to have real financial freedom. To be totally honest, I love working with people to help them build their Cash Machine because that cash machine is their ticket to a new life. Initially, you’re going to be coming up with some ideas that might make a great Cash Machine, but you’re not going to do the all at first, so you need some people to give you feedback about your ideas. This is where a good strategist can really get you going in the right direction; and why I am giving you a FREE strategy session with one of my team. They’re here to do what a lot of your friends and even some of your family may not be able to do, support you in reaching your dreams, no matter what it takes. Sometimes, even though they may love you, friends and family are not always as supportive as you want them to be when BIG life-changing decisions are being made. They want the best for us, but they don’t know how we’re going to make these big dreams come true so they become negative, confrontational, and difficult to be around. So, I’ve eliminated that issue in giving you a strategist to work with. Call my office at 888-XXX-XXXX and start working through your ideas. Once you know you have a winner, you can announce to the family. “I’m creating a cash machine that is going to finally give me income security!’ The only thing left for them to say is, HOORAY! It’s important to know that you have a support team around you who can give you feedback on your decisions, and applaud your progress. That kind of positive reinforcement is priceless and will ultimately mean the difference between continued frustration and absolute success. What is a Cash Machine? We’ve been talking about creating a Cash Machine for a while now so I want to give you my official definition so we can all be on the same page as we move forward.
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Build your Cash Machine Definition of a Cash Machine: A legitimate, legally structured business venture that: • Uses your skill sets, • Is modeled after a similar successful business, • Is developed in weeks, (sometimes days), • Takes advantage of teamwork • Generates immediate cash to feed your Wealth Cycle™. There are three ways to create your Cash Machine. You can: 1. build it, 2. fix it or 3. Buy it. Since your goal is to make an extra $500 to $1,000 a month, your fastest path to cash is to build it rather than spend any of your current cash resources in buying or fixing a cash machine that already exists. You need to find a product, service, or skill you can offer quickly so you can start earning cash fast. This process will ensure the shortest amount of time from setting your Cash Machine in motion and cashing your first check. 5 Steps to Build your Cash Machine I’ve been building successful Cash Machines for many years and I’ve fine tuned the process into 5 steps so anyone can do it with little or no previous business experience. The steps are straight forward and simple enough to grasp: Step #1: Select a Cash Machine Step #2: Model a company or person Step #3: Marketing your Cash Machine Step #4: Make Sales Step #5: Ongoing actions These steps form the outline for my entire program. This is a simple, step by step process. It takes work and follow through to build success. It takes effort and committed action. And, if you follow the instructions I give you, you can generate an extra $500 to $1,000 per month. And once you reach that point, the sky's the limit! BUILD IT: Do what you know Before we dive into the action steps for building your Cash Machine, I want to give you tools to really focus your attention on this process and the final results you want to see.
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Build your Cash Machine
I believe that your fastest path to cash starts with making use of the skill sets you already have – there is no reason to go back to school when you already have completely marketable skills that you’ve developed over a lifetime of living. When people begin to make the transition from employee to entrepreneur, they often dive into the deep end - into a business they know nothing about without any of the skill sets required to do the work. Remember, that multi-million dollar company you want to leave has been building its success for many years – if you think you can jump right in at that level and survive, you’re mistaken. That strategy isn’t going to lead you to fast cash. It will lead you down a dark road to despair, frustration, and wasted time. Don't go there! Instead, I recommend you make dough with what you know! You see, you already have marketable skills. You need to do things which can help you earn new money. New entrepreneurs often overlook the skills they already have and thus, have several failed attempts before they finally wake up and start doing what they already know. So you may be asking yourself, “What skills do I have?” And, that’s a great question. Take a moment now to complete the following exercise. Make a list of the skills you know you do well. This might include something simple like answering phones, running errands, or listening to people. If could include skills like designing websites, carpentry, or auto mechanics. It may even be hobbies like pottery, sewing, or music. Make a list of 10 or more skills you have: 1. _______________________________________ 2. _______________________________________ 3. _______________________________________ 4. _______________________________________ 5. _______________________________________ 6. _______________________________________ 7. _______________________________________ 8. _______________________________________ 9. _______________________________________
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Build your Cash Machine
10. _______________________________________ Now that you have identified some of the skills you know how to do, take a minute to identify which 3 skill sets could be quickly turned to create cash fast. Most people are spread thin with work and family â€“ some of the things they want to do just never seem to happen. Focus your list on skills you have that could ease the stress on someone else and they would be happy to pass on to you. Select 3 skills you can use to create cash fast: 1. _______________________________________ 2. _______________________________________ 3. _______________________________________ Now, there are probably a lot of things you have done in the past that you are not really excited about. Passion creates energy. When you are passionate about your work, you have more energy to get the job done. Action Item: What Really Excites You Make a list of 3 or more things that really excite you: 1. _______________________________________ 2. _______________________________________ 3. _______________________________________ Next, letâ€™s consider what you have done in the past to make money. I want you to dig back into you memory and think about all of the jobs you have had in the past. Take an inventory of your jobs and what helped you to earn an income. Exercise: Past jobs Make a list of all of the jobs you have had in the past (use an additional sheet if necessary): 1. _______________________________________ 2. _______________________________________
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Build your Cash Machine 3. _______________________________________ Action item: Complete the following table to analyze your skills: Skill Set Analyzer: The Directive The Answers 1. List your responsibilities at your job or company 2. List the specific tasks associated with these responsibilities 3. List any other tasks you do at your job, even though they are not your responsibility – because you like to or because your feel compelled to do them 4. List the industries and markets in which you have experience 5. List the tasks you do at home 6. List the activities you find yourself doing in your free time 7. List the tasks others often ask you to help them with 8. List the tasks you are good at and might take for granted Wow! Great job! You’re one step closer to building your Cash Machine. Let’s keep moving forward. It’s time to match your skills with your Cash Machine ideas. BUILD IT: Partner Options A powerful way to grow your business quickly and continue earning fast cash is to find someone to partner with. A partner will help in sharing the workload and motivate you to stay focused on the end goal. This will be someone who is passionate about the same things you are and is wanting to build a secure future for themselves as well. As you build your first Cash Machine, the quickest way to get started is to start offering a service. As you begin to generate cash, you can look at options to hire others to do the work and expand your reach. Buy, Build, Partner Just so you’re clear on all the possibilities and some of the things to consider as we move through this process, I want you know what criteria you can use to - 24 -
Build your Cash Machine decide if buying, building, or partnering for your new Cash Machine is your best option. Buy Build -Skills-Ideas -You have the $ -Can find the $ -Want out of job -Ready to build -Want a jumpstart -Have/know of a way to go -Already have one quickly -Entrepreneurial spirit & -Passive buyer determination -More time than $
Partner -Not an entrepreneur -Prefer to work in teams -Operator -Maintainer -More analytical -Great skill sets to run companies as manager, but not start them -Entrepreneur with limited time
Buy: Operational/Managerial This means that you are investing your money and managing the company. You have employees, and established clientele, and you’re cash reserves are in a great place. Build: Entrepreneurial This is when you have great skills and ideas that could translate into a successful cash machine. There may not be anything like your idea out there and you’re really breaking new ground. You’re ready to be out on your own and be the master of your own destiny. Partner: Technical/Supervisory You bring a technical skill to the equation and you need someone with practical manufacturing skills. You might have the engineering ability to design a product and you need someone who can manufacture it. You’re good at managing the production process and getting the product out to customers. The option you select will depend in part on your experience and your skill sets. Do you consider yourself to be more entrepreneurial or more managerial? An entrepreneur has the desire to charge out there and build something from scratch. A manager often wants to step in and run an existing operation, improve efficiencies, and increase productivity. Entrepreneurs are often highly creative and looking for a new market to occupy, whereas managers are detail oriented and like to know the rules of the game. Some people are more technical in nature and want to focus on doing the work itself – building, manufacturing, and fabricating. Someone who is technical might want to partner with someone who is more outgoing and experienced in
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Build your Cash Machine marketing and sales – they will do the selling while you make the product. Think of the creative team that founded Apple Computer with Steve Jobs focused on marketing and sales and Steve Wozniak on development and production. That dynamic team started small and built a game-changing company that competes in a global market and has redefined personal computing. That was two guys creating a Cash Machine – and the rest is history. If you partner with people, look for people with complementary skills; they are able to do something that you’re not so good at. This partnership will make the end goal of putting new money in your pocket easier than you doing it on your own. There are a lot of ways to establish a partnership. Some might require sharing ownership in the company, others might mean a paycheck. Regardless of the agreement, you always want to write a contract that outlines the roles each of you will play and what’s expected. Don’t assume you’re on the same page until you have it in writing. It doesn’t matter if you have been best friends for years or this is someone you just met. Having this partnership spelled out on paper will ensure your relationship stays intact as your Cash Machine grows. Partner for Growth: Here are a few of the factors to consider as you select partners to work with. Both parties have SKIN in the game What is your level of commitment? Are you absolutely committed to make your Cash Machine profitable? Do you think it makes sense to make sure your partner has the same level of commitment? You bet it does! Entrepreneurs often suffer from a tendency to chase the bright and shiny. That means starting one thing, but getting easily distracted and starting to work on something else. Sound familiar? If this isn’t you, you’ve probably seen it play out before with people you know. You want to make sure your partner is not going to jump in with both feet to support your Cash Machine only to turn and pursue some other opportunity a few weeks down the road. You need to look for ways to make sure your partner is committed to stay focused on your Cash Machine for the long haul. One of the ways to do this is make sure that both parties have skin in the game. That usually means that both parties have invested in the Cash Machine with financial resources. That may not mean taking and putting cash in the bank account but it might mean investing money in equipment, marketing, or sales initiatives. People have a tendency to focus on the success of a business when they have invested in that business with an expectation of a return on that investment –
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Build your Cash Machine there is a reason why large corporations give stock to employees, the success of the company means even more money in their wallet. Two or more skill sets COMBINED Look for people to partner with that have multiple skills you need to make your Cash Machine thrive. Marketing and sales often go hand in hand. Operations and customer service often come together. You want to find people with versatile skill sets. More than when you start out, these multiple skills sets will come in handy when it’s time to come up with ideas to grow and expand your Cash Machine. You want to have people around who can give you ideas, tap into their skills, and contribute to the next stage of growth. Being able to rely on someone to do more than one thing will also save you money and increase the bottom line. Both skill sets and operations are COMPLEMENTARY Find people who complement what you are capable of doing. Don't look for people who are just like you. You want people who can do things you cannot. If you’re great at organizing, there is no need to partner with someone else who is great at organizing – you’ll probably argue about the best method of organizing and never get anything done. You want people who can offer a different perspective and can bring new ideas to the table. You want to find someone who is different but still passionate about your Cash Machine and able to focus on the areas of the business that seem boring to you. This will make for a match made in heaven. Working with a partner who has a vested interest in the success of your business, brings new ideas to the table, and has complementary skills to your own will mean that the resulting products/service you offer are ultimately BETTER that what you could have done alone. Some entrepreneurs have a tendency to be Lone Rangers - they think that their way is the only way, and to do something right you have to do it yourself. They do not solicit help and their business suffers from it, they end up drowning in their own pride and incompetence. No amount of great ideas can make up for poor implementation of those ideas. If you want to build a successful Cash Machine, you need to ask for help and get feedback on your idea. When you partner up with someone, you want to let them expand your idea and encourage you to think bigger. They may also have relationships with influential people who could end up being a huge part of
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Build your Cash Machine building your cash machine, finding new clients, and expanding your success. This type of network connection can lead to fast growth and big opportunities. A great partner for your Cash Machine may also be able to create additional REVENUE opportunities by bringing new customers to the business. A good partner will also be a natural promoter – someone who will talk about the company and engage potential customers. You want to trust that when the opportunity arises to talk about your company and the services you offer, your partner is ready to talk it up and close some deals. Look for people who will talk, share and communicate the message about your product or service anytime, anywhere. This will help to bring new revenue for your Cash Machine. Look for people who attend networking events, are members of associations and who are comfortable making phone calls. Finding a partner who knows the value of building relationships and cultivating new leads will mean faster growth in your company and a long-term, sustainable customer base.
*Selecting the Right Type of Business for your Cash Machine As we move through this workbook, I don't want you to get bogged down and stuck, the answers you need are here – and you can always talk to a strategist in my office or even work with one of my personal coaches if you really want to get moving quickly. So stay focused on your overall goal, to put NEW money in your bank account as soon as possible. That means starting your Cash Machine as soon as possible. One of the areas where new entrepreneurs have a tendency to get stuck is in selecting the type of Cash Machine they want to build. Let's consider 3 different types of businesses opportunities along with the advantages and disadvantages of each.
Franchises You probably already know what a franchise is. It’s the McDonalds, Carl’s Jr., Wendy’s, Starbucks, Subway, TCBY, and many others. They are companies that started out at one location, expanded to several locations, and then started selling the rights to open locations to other people not associated with the original company. Most franchises have rules about where a store can be, what it looks like, prices, discounts, advertising, and others that ensure each franchise location is similar to another even if they are owned by different people.
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Build your Cash Machine
For some people, buying a franchise might be the right answer, especially if they have cash assets, like to have an established operating plan, and feel more like managing rather than creating from scratch. A franchise might be a great opportunity for someone with a lot of available cash because the cost of getting started can be anywhere from $15,000 for smaller (lesser-known franchises) to over $1 million for a McDonalds. It’s an excellent way to invest money into an established Cash Machine brand – but may not be the best way to start out. If you are in the market for a franchise, buying the right one is critical. Making the wrong decision can be costly – then you’re out your cash and you’re still frustrated. I have some clients who know how to produce a hundred percent return on those opportunities, and they do it over and over again. Mastering the development of new and existing Cash Machines is an important skill to develop. This is a way to be able to double and triple your investment over time and build greater wealth. For the purposes of this workbook and building your immediate Cash Machine, we are not going to consider franchises. They are great vehicles for building wealth, but are not the fastest path to cash.
Products Let’s be honest, the shorter the path that money has to take to get into your bank account, the better. Most businesses either deliver a product or a service And some deliver both. For your Cash Machine you can find an existing product to sell, or you can create your own product – either could be a good fit for you. Many people have great ideas for new products. Sometimes it’s an invention that meets a common need, or it might be a home-cooked item that family and friends have suggested would be a big hit in stores. These are the kind of ideas that have been the basis for some of the world’s great companies. In fact, every product you can buy in the store was once the invention of a single person looking to create a Cash Machine. Through innovation, perfection, and marketing they got that project into stores. Some of them sell their recipes to HUGE companies and never work again – it could be you someday. Every year, the number of people with new product ideas grows. In 2007, there were over 485,000 applications filed for U.S. patents. That’s a sign that the American dream is alive and well, and people just like you are making innovations to improve everyday life. A few of those patents will be the foundation of successful companies. The inventors who filed the patents will profit in a big way because their creation may
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Build your Cash Machine become the foundation of businesses, innovations, products, and manufacturing. Some patents will end up being sold to existing companies, turning the inventors into millionaires. Unfortunately, most of those patents will lead nowhere – not because they’re not great ideas, but because the inventor doesn’t know what to do with it to make money. In general, even the most successful of these product ideas will take a long time before they get out to market and start to generate any cash for the inventor. That’s because starting a business around an invention or patent may have a very long and complex money path full of capital investors, banks, manufacturing, distribution, marketing, and the rest. Many product ideas take a lot of effort to produce. Sometimes this can mean designing and building a prototype or sample. That takes time and money. Once you have the prototype or sample, you will need to sell the concept to potential manufacturers, distributors or retailers. Or you need to manufacture, distribute and sell it yourself. That means more time and more money out of your pocket. If an idea requires extensive tooling, manufacturing, exotic parts and materials, or even completely new forms of marketing, it can be a daunting task to turn even the best idea into cash – and isn’t this program about putting new cash in your bank as soon as possible? Establishing a new product could take years to actually start making any money. That can be a pretty SLOW path to cash. But your dream product can happen someday. All it takes is gaining some financial stability and business experience, someday may come sooner than you think once you get your Cash Machine up and running. But today your goal is fast cash. We want to put money in your pocket now, not years from now.
Services I have found that most fast moneymaking ideas are service oriented, not products. And though you may find a simple product idea that nets you cash fast, such as beaded necklaces at the right price, products are usually not the easiest route when you combine the manufacturing time with the marketing and selling time, you’re doing twice as much work to make half as much money. Since you may be starting Cash Machine by yourself, building a product on your own may not be the best place to start. Service-based Cash Machines have proven to be the fastest path to putting new money in your bank account. When it comes to putting an extra $500 - $1,000 in your pocket now, providing a service will get you there faster. Let’s look at a simple service business such as house cleaning. On Monday, you decide this will be your new venture. That night, on your computer, you design
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Build your Cash Machine and print some posters advertising your service with your phone number. You also print out a bunch of order forms. On Tuesday, you put the posters up at the supermarket, library, a children’s clothing store, the drugstore and the bookstore. On Wednesday, you get a call to come the next day to clean the house of a woman who’s throwing a party. On Thursday morning, you spend two hours cleaning and then hand the woman an invoice for $60. She hands you three $20 bills. It took just four days for you to go from starting the venture to making money. Now, that’s a fast path to cash. It may not be sexy, but it gets the job done. It may not be a long term solution, but it will solve some of your short term problems, right? You’re making extra money NOW that you can put in the bank to pay bills, save up, and ultimately invest in bigger, more lucrative Cash Machines.
*Identify what you have to work with Resources Make sure that you have the necessary resources to build your Cash Machine. Many small businesses fail because they don’t start with enough money to set up the business and keep it going until it begins making money. Money is already tight, so the last thing you need is to spend more to set up your Cash Machine. What you need is a business that requires almost no cash to get started and uses the skills you already have. When you know what Cash Machine you can start right now, make a list all of the things you’ll need to run your moneymaking venture. Once you have the list complete, start to check off what you already have – including your own skills. Be as specific as possible, digging down into the nitty-gritty details. If you are launching a lawn-mowing business, you’ll need a mower, trimmer, rake and leaf blower, but you’ll also need a vehicle to get around, bags to pick up the clippings, a trailer to haul the waste. You may also need an independent mobile phone so you can be reached throughout the day, and voicemail. If you are going to do office work for small businesses, you’ll need a computer, telephone, printer, fax machine, copier and maybe a scanner. You want to make sure you already own these things. You may require specific software programs that are compatible with the work you’re doing – see about borrowing them, or even using free versions from the internet.
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Build your Cash Machine At first you want access to inexpensive resources that can create immediate money and get the job done. Borrowing someone’s lawnmower is the same as borrowing cash from the bank – it’s leveraging someone else’s tools to make you money, and that’s what this is all about. List any special resources you have that could help in starting and running your Cash Machine. This could include other people who want to lend their support and talents to help you. Maybe your spouse has a skill, such as tax preparation, that would eliminate the need for you to hire outside help. Try to figure out exactly how much it will cost (if anything) to get started with your Cash Machine. There may be something on your list that you don’t have now and don’t have the resources to get it, do you really need it to get started?
Your personality It’s also important to think about your personality as you create your Cash Machine. If you like details and not the big picture, you want a Cash Machine that will thrive on your ability to dig into the specifics and check them off a list. If you are friendly and outgoing, a Cash Machine that has you out there meeting people, networking, and engaging one-on-one might be more suitable. You want to take into account your personality, likes, dislikes, attitudes and behaviors, when choosing your Cash Machine. If you don’t like dogs, don’t become a dog walker. If you are allergic to grass, don’t cut lawns (even if you have a mower). Be sensible. If you’re not sure about your personality, talk to someone who knows you well. Ask them what to watch out for in a business. Maybe it’s a spouse, friend, parent, or even your children. The key is their willingness and ability to be honest with you. They can tell you things like, “don’t do anything that requires getting mud on your shoes; I know how much you hate that.” When they give you their answer you will have a chance to decide if that is going to be a problem, or if this is the perfect opportunity to get over it. You may find that your aversion to getting mud on your shoes is completely swept away at the prospect of raising enough money to buy as many pairs of shoes as you want. Tell them your idea for a Cash Machine and ask if they think you have the personality to succeed in that business. Tell them the process of doing the work and what’s on your checklist. They may see some things that you missed, and also tell you if they see you doing the work well, or if they think you would enjoy it. Be aware of the possible negativity – make sure you ask a number of people so you get a broad spectrum of opinion.
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Build your Cash Machine If you realize an idea doesn’t fit your personality, don’t test it any further. Dump it, pick another from your list and start the testing process over. There are unlimited possibilities for Cash Machines and this is just the first one. If it really isn’t a good fit with your personality, walk away. On the other hand, if the personality issues or conflicts can be overcome easily, then do it. It’s your future we’re talking about, maybe it’s time to get out of your own way.
Your past Using your past experience to drive your decisions today may be a great way to gage the potential success of your Cash Machine. Think back over your past and see if you can come up with a time when you did the kind of work you’re considering. Maybe it was your first job, or a college internship. Maybe it was an activity you did in the summers, or a project you were assigned at work one year. From that experience you can determine if you are able to do it now. If you enjoyed it in the past, you can enjoy it now. Even if you stopped doing it because you were burnt out, bored, or just restless to do something else, that’s okay. If there was even one time that you can remember enjoying this kind of work, then you can do it again.
*Identify your market From the start of your Cash Machine, it’s important to know your business and the flow of cash into your bank account. You know that the money that will eventually end up in your bank account is currently in someone else’s bank account. Coming up with your fastest path to cash is knowing where the money is right now and how to move it into your hand. Part of identifying the market for your Cash Machine is knowing the type of individuals and companies that will use your service. Visualization Activity: I like to have my clients draw a chart of money flow from the banks it is in now to their own bank. On one side of the chart may be pictures of offices, homes, and people – and on the other side is a picture of themselves holding the cash. Inbetween the two points is your Cash Machine. It is literally the mechanism you use to move money from one side of the chart to the other – from one bank account into your own. So take a moment and draw a chart of your own. Detail your Cash Machine process in the middle – from the moment you meet the person, set the - 33 -
Build your Cash Machine agreement, provide the service, receive the check, and then cash it. Get all the details into the picture.
Where is your customer? Since you know that there is a need for your service, you must identity who has that need. If you’re working with companies, take a look at the type of company that would use your service. Decide if they are big or small companies, or if their location will play a part in working with you. If you know your Cash Machine is primarily aimed at individuals or families, take a moment to figure out where these families likely live, or what age these individuals will likely be. You want to take the time to KNOW YOUR CUSTOMER so you can more easily find them, and offer your service. Take a moment and make a list of several places you think you can find customers for your Cash Machine. This could be at a networking event, an association, or a store – it could even be specific neighborhoods. Think creatively. Action Item: Make a list of 3 or more places you can find customers: 1) ___________________________________________ 2) ___________________________________________ 3) ___________________________________________ You really need to know the market for your idea and figure out if it is a local service business that will serve customers from your town and the outlying areas, or is it an Internet-based business attracting customers from all over the world. If you’re going to draw from a specific geographic area, get a hold of some of the telephone directories for that location and start using them as a resource to find companies that are doing something similar to what you are about to do. If you don’t have directories yourself, you can find them at your local library or online. Go through the business sections of the directories looking for local business already doing what you plan to do. Cast a wide net, looking for businesses and individuals which, while not doing exactly what you plan on doing, may do something closely or related. List the names, addresses, phone numbers, and web pages of every similar business you find.
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Build your Cash Machine If you’re going to provide service regionally or nationally, turn to the Internet. Use all the major search engines to find businesses that do what you plan to do or something close. Once again, write down all the information you find. Write down the names, addresses, phone numbers, and URLs of similar businesses you found in your local telephone directories because in the next workbook, you’re going to use this knowledge to help set your pricing, create business forms and promote your business.
Assess the market Part of doing research in your market is assessing the viability of your idea. This consists of looking around to see if anyone else is doing what you want to do – or at the very least, something similar. If you have one of those, “oh my goodness, how has no one thought of this before” kind of ideas, that may not be a good sign. The old adage, “all the good ideas are taken” has some truth to it. Lots of my clients, finding no businesses like the one they are planning to start, think they’ve hit on a gold mine. “I couldn’t believe it,” they tell me. “No one else is doing it. I’m sure to make a fortune.” The fact that no one else is running a business based on your idea most likely means there isn’t a readily accessible market for the product or service. That doesn’t mean it’s a bad idea, but it might mean that it requires a lot more work to get it off the ground. Don’t get discouraged, but it’s probably best to put that Cash Machine idea on the back burner and move on to something you know has a market and demand. Sure, there are companies that have been able to make millions by developing original products or services and carving out a whole new product category people didn’t even know they wanted – once again, Apple Computer is a great example of this. But these are big, well-financed ventures that can afford to advertise and market and shape public opinion long enough to develop a need in people that didn’t previously exist. You are not Apple or Sony yet and the time required to make that happen is not your fastest path to cash. If you find that there are businesses, either in your local area or on the Internet, that are doing what you plan to do, that’s fantastic. That means there’s a market out there for what you’re doing – people are already spending money to have what you are offering! You will make some money delivering a product or service to meet the need that already exists. Case Study #4 Update: Joe O.
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Build your Cash Machine Joe knew exactly who his market was for his new Social Media/Web Marketing business. While he and his friends used the internet for everything from banking to checking out the newest music not to mention their social networks, he saw his former boss and other older small business owners frustrated by this “new” Facebook and Twitter thing and not understanding why people would buy things from the internet from someone they did not even know. With so many people online and connecting, he knew these businesses were missing out on a huge opportunity to capture a big audience and expand their business into a much bigger space than just their local community.
*Selecting your Cash Machine So, we’ve talked a lot about the process for discovering viable Cash Machine options for you and the things you want to consider as you go through the process, but now it’s time to actually start making some decisions. This section is going to give you some actions steps you can take to sift through all the great ideas and arrive at the perfect Cash Machine for you – the one that will help you put new money in your bank account as soon as possible. The actions below will help you identify the best Cash Machine for you. Take a look at the following lists. They have examples of individual skill sets and some Cash Machine ideas I have worked with my clients to create. For example, if you have great accounting skills, some possible Cash Machine ideas may include teaching people to work in Quicken, or giving tax strategies to small businesses. You may find some extra cash in doing some data entry, or even just keeping the books. The point is, for every skill there is a Cash Machine waiting to make you money, so look through the lists below for ideas or you can come up with your own. These are really just a few to get you started. Circle any of the skills and Cash Machines that appeal to you. Skill Set Accounting
Cash Machine bookkeeper Quick Books training tax strategist business systems trainer data entry notary accountant home chef - 36 -
Build your Cash Machine
Cash Machine Ideas: Cleaning Scrapbooking Automotive Sales Tutoring Food related Packing/Mail Service Senior Care Tanning Logos Writing/Editing Maid Service Window Service Coffee/Beverage Service Pet Care Sports Repairs
catering prepared meals cooking classes team building by cooking food critic dog walker groomer house sitting animal psychologist obedience school animal massage com. consultant com. assistant audio book reading bilingual assistance family communication relationship communication
Decorating Dry Cleaning Laundromats Hair Styling Financial Services Planning/Organization Maintenance Kitchen Health/Beauty Makeup Personal Shopper Personal Concierge Coaching/Consulting Public Speaking Retail Sales Pet Care Convenience Stores
Signage Vending Machines Daycare/Babysitting Researcher Web Design Reading Voiceover Dancers Fitness/Training Interpreter/Translator Child Development Parenting Support Computer Tech Lodging/Storage Party Biz/Supplies Printing/Copy Teaching
Now that you’ve seen some ideas and had a chance to match your personal skills to some possible Cash Machines, it’s time to select your Cash Machine! In this action step, I want you to select three Cash Machine ideas you know your skill would support and write them in the space provided or in your notebook. Under each of the Cash Machine ideas make a list of “pros” and “cons” so you can weigh the options with all the information in front of you.
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Build your Cash Machine Cash Machine Idea #1: __________________________________________________ Pros
Cash Machine Idea #2: __________________________________________________ Pros
Cash Machine Idea #3: __________________________________________________ Pros
Now that you have the ideas listed out in front of you and you’ve identified the “pros” and “cons” you can finally make a decision as to what your Cash Machine will be. Even with all the discussion we’ve had, you may still be overwhelmed at the prospect of choosing one and committing to it. You may be worried about picking the wrong one or getting in over your head. It’s okay to feel that way, it’s natural, especially if this is your first venture out on your own. The key to gaining confidence in your decision to build a Cash Machine is making sure that this new business represents your values. Values are the driving force that will ensure you’re passionately pursuing your dreams and fully committed to the successful outcome.
Your values Since this section of my program is about choosing your Cash Machine, you want to make sure that what you do is in line with your values and your vision.
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Build your Cash Machine These values may be based on how you were raised, how you like to be treated, your religious beliefs, or just a sense of being a good person. There is no right or wrong way to have values, but it is important to honor them. In this Action Step I want you to circle the values that are most important to you. These are the non-negotiable values that you want to have in every aspect of your life and business. Values: Honesty
Freedom You’ve identified the values that are most important to you and circled them. Now we’re going to take it to the next step. Using the three Cash Machine ideas you listed earlier in this section you are going to mark a 1, 2, or 3 next to the value that supports your Cash Machine idea. For example: if you chose Bookkeeping as your #1 Cash Machine and Honesty is a value you circled, you will write a #1 next to Honesty if you feel they can work together. Go through each of the values and mark them with the appropriate Cash Machine number, there can be more than one number for each value – this is really just a way for you to ensure that your Cash Machine ideas fit with your values.
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Build your Cash Machine
FINAL SELECTION Now that you have identified three possible Cash Machines based on your skill sets and reviewed each Cash Machine against your values, it's time to select the Cash Machine you want to create. For many people, this is the most difficult decision of all because you’re finally committing to move forward – not just thinking about it. But, since you picked up the program because you’re ready to take control of your life and create true financial freedom, you can't move forward until you actually pick a Cash Machine. It’s time to be a decision maker and get the ball rolling on your future. Entrepreneurs are fast to make decisions quickly and are willing to do whatever it takes to make that decision a success. They put all their energy and emotion into making the decision to make money. They keep moving forward. Of the three Cash Machine options you identified above, write in the one you have selected to move forward with. It might be the one that had the most of your values, or the one you know you can do easily with your current responsibilities, or even the Cash Machine you just know in your heart is the one for you. Write it below. My Cash Machine: ______________________________________________________ Congratulations! I’m proud of you! You have begun to create your first Cash Machine and in the very near future, you will begin to receive cash. Remember, the whole purpose of building a Cash Machine is to get more cash fast. A DISTINCTIVE CASH MACHINE Before you can deliver your message and start getting customers, you need to create the content of that message – what are you going to tell these potential customers about your business and what you have to offer. The content must relay two important points of information: 1. How you’re different from others 2. What they are paying for. There are many ways you can stand out from your competitors and there are many reasons to charge a higher price than your competitors. People want to know what’s different about you and they’re willing to pay more if that distinction is valuable to them. Consider the following distinct advantages:
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Build your Cash Machine -Better service -Going the extra mile -Higher quality -Convenience To stand out from the crowd, you need to establish your Cash Machine distinctions. Keep in mind that you want to be distinct, not unique. They are two completely different things in the mind of your customers. When you create a distinction between you and your competition you are taking about the combination of service you provide and values to maintain. This combination represents a product that only you can offer – and that’s what will get customers to chose you over some other company. When your service is what they’re looking for and your values match their own, you’ve hit a homerun. In this Action Step you’re going to identify your distinctive offerings, the things about your business, your service, and your values that make you different from the competition. These may include honesty and punctuality, or friendly service and environmentally friendly products. Write 5 things that may stand out to a potential customer as valuable. Your Cash Machine: ______________________________________________ Distinction #1: __________________________________________________ Distinction #2: __________________________________________________ Distinction #3: __________________________________________________ Distinction #4: __________________________________________________ Distinction #5: __________________________________________________ Great job! You are well on your way to getting your first customer. There may be certain points in this process where you get tired or discouraged and just want to sit down and watch TV. Resist the urge. Remember, we are working to create financial freedom and independence. It's not easy, but it is simple. Follow the step by step process I have laid out and you will get your first cash within 30 days. Ready, go!
*Find a Business Model You Can Duplicate The truth is, no matter how great your idea is, someone has done it first – and that’s great news. It means there are people who have gone before you and already discovered the best methods for success.
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Build your Cash Machine
I built an entire team of coaches and mentors who work tirelessly with my clients to ensure they can breeze through the Cash Machine process and start making new money as soon as possible. They are using systems, secrets, and mechanisms they learned from other Cash Machines, entrepreneurs, corporations, and individuals who have built success in the past. The reason my coaching staff is so good is because they are masters at building Cash Machines. They have produced millions of dollars in success for themselves and other clients because they know all the secrets, and they teach them everyday. I teach all my clients, “don’t reinvent the wheel, rely on the ones who came before and benefit from their experience.” It’s important to me that my clients spend as little time as possible in the “trial and error” process and more time in the “cashing checks” process. This means replicating the mechanics and duplicating the success. Replicate and Duplicate Now that you have your idea for your Cash Machine, it's time to start your business – that means getting the processes up and running. Should you start from scratch and create your own system for managing your business, cultivating new customers, and providing services? No! Don't reinvent the wheel. Planning takes time and thankfully, someone has already done that – they started a business and then learned how to do it effectively. If someone is already running a successful Cash Machine because they learned the secrets, why not do it the way they are doing it? Leave the trial and error to someone else. It’s time to find someone who is already doing what you want to do and then model them – do what they’re doing. Replicating another successful company is like hopping into your car and using a GPS to navigate to your destination. It has a view of all the possible roads you could take and gives you a route that will get you there faster – and isn’t that what we all want, a faster way to get there? What you need is a GPS for your business. You need to find the fastest route to your destination and then follow it. As you build your Cash Machine, I want to encourage you to build a team to support you, no Lone Rangers here. Along with supportive friends and family, use the resources I am giving you – call and talk to your strategist, start working with one of my personal coaches and mentors. There are resources out there to help you, but it’s up to you to use them.
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Build your Cash Machine As you work with my team, you will meet other clients just like you and benefit from their experience – you could be the next big Cash Machine success story, but it’s up to you. Don't reinvent the wheel! There's a myth out there that says you need to be unique if you want to have a successful business. That's wrong! The best ideas often simply come from taking what one person is doing and then duplicating it, improving it, or expanding it. That’s not to say there isn’t a market for unique business ideas, but that’s not what we’re here to do, we’re here to put new money in your bank account in less than 30 days. Once you’ve mastered the Cash Machine process, and created the financial freedom you’ve dreamed of, then you can build on your unique ideas. In the mean time, we’ll focus on staying in well-charted waters and doing what we know works. Many people who try to start a business never get past the idea and planning stages – they get bogged down in figuring out the “how to do it” rather than just doing it. The traditional process for building a new business is long and complicated, and it can be expensive. You have to create a business plan, revenue forecast, market research, and a whole lot of other things that take time and money. That has a place, but not when you’re building your first Cash Machine. You're here to start pocketing cash fast. Don't get bogged down in tradition. Just copy a successful business model that‘s already working. The Name Game Some people spend hours or days trying to brainstorm a name for their business. At this point, that's a waste of time. When you get out there and start talking with people, that won't matter. Something simple and to the point will work great for right now. If you’re running a cleaning service, you don’t have to worry about a clever name when, “Mary Cleans it All” will be more than enough to get your message across. Calling your web design company “Omni-global Computron” may sound impressive, but in the time it takes you to think of it, you could have already made money. Business Plan Some people spend weeks if not months working on a business plan – writing hundreds of pages to define every aspect of their business from inception to selling it off in 10 years. Forget about that. The process I'm sharing in this workbook will allow you to start earning cash within the next 30 days. Yes, the money will be rolling in that fast. If, you follow the steps I describe here and take
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Build your Cash Machine the actions required. So a comprehensive business plan is not required, so let it go. Loans And Investors Other people get caught trying to borrow money or take out loans. Forget that. You are going to have little or no start-up costs and start asking for cash right away from your customers. You're going to use simple tools like business cards and flyers to get your message out there – they cost very little to create and you can make them on your printer at home if you need to. I cover all of those details in Section 4 on Marketing. The key is to develop a simple, straight forward and streamlined business concept that you can begin working right away. There is no need to do any of the nonsense above. Yes, there are businesses and strategies that require all the things I just discussed, but this is not one of them. You are on your way to earning an extra $500 to $1,000 in the next 30 days and that’s all we’re focused on right now. Like a hiker heading into the wilderness, you do need a map and a plan to get to your destination safely; but that route can be one that has already been mapped by other hikers. You never have to feel overwhelmed, there are people ready to support you. There's good news! If you need some reassurance, call your personal coach or strategist and trust me when I say, “Someone has already done what you want to do, so we’re going to follow them.” It's time to find several companies to model your Cash Machine after. But, who should you select to model? Here are some of the criteria you can use. Let's start by finding someone inside of a business who will share some information and insight with you. Finding a Model Company You're going to have to do some work to find your model companies. I want you to go out to your local groups. They are companies bigger than you, that have distinctions that you want. We also look at companies that we don’t want to model and notice what we don’t like. Here are four key things to consider: •
Look at the size of the model company. You don’t necessarily want to look at a franchise model, you probably want to find a business owner who started the business and grew it.
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Build your Cash Machine •
Know whether it’s a product based cash machine or a service based cash machine.
Three areas to look at in your model companies: 1) What is the overall flow of business? Visit the business or call them and interact with them. What was the system that drove you? You will start to see the flow. 2) How do they get their customers or clients to buy? 3) How do they keep their customers or clients?
Call up brand new businesses in the local area and ask them how they got started. Ask them how they got their first 10-15 customers? You will probably find they will open up and tell you. You can also ask them what mistakes they made. Tell them you want to start a business just like theirs.
How many model companies should you find? Start by looking at three model companies. That will allow you to look at several different business models and gather ideas on sales and marketing tactics. You may not get all your questions answered through one company. Get what you need from the best of the best. Should you ever stop looking at model companies? You should never stop looking for best practices. We are on email lists for some of the top internet marketers out there so we can model them. Who can you model? If a model company offers you a job, should you take it? If you are not an entrepreneur, I would highly consider taking it. You can learn on their dime and develop knowledge of the industry. Another option would be to become an independent contractor or develop a joint venture with them. Set a goal that two years down the line, you will quit your job and start your cash machine.
Contact the insider Your goal is find insiders at the companies you are studying. Talking to insiders in the same field or shadowing business owners is a very efficient way to learn. Imitation is not only the sincerest form of flattery, it’s the simplest path to profitability. A quick Internet search will get you to many business models and the answers to your questions will be just a phone call or visit away. You’ll be pleasantly surprised by how open other business owners can be and how eager they are to share their advice. Your contact person within the business does not have to be the owner of the business; any number of people within a company are possible resources. Sometimes the best source of information isn’t even in the company at all. Often a strategic partner or retail customer can have a lot of insight into how a
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Build your Cash Machine particular business works. The important thing is to find the right person, or people who can give you ideas for your Cash Machine.
Tell your network You can also tell all your contacts your plans for a Cash Machine and ask if they know someone you can talk to. Let them know you are looking for insiders. Often, your community will put you in touch with people who can help you. Link into the community. Join your local Chamber of Commerce, Rotary Clubs and leads groups. For women, there is also NAWBO, the National Association of Women Business Owners (nawbo.org) and ewomennetwork.com. Model Criteria: -Size of Company -Gross revenue -Employee or contractor revenue -Marketing planning -Sales process -Joint ventures -Leadership philosophy
Interview a Model Company Who is the best of the best? Find them and talk to them. The fastest path to cash is to model someone else. Go out and find some model companies. When you go out and talk to the model companies, don’t be surprised if you get some gatekeepers. You want to be talking owner to owner. Your first goal is to get a meeting. I had the opportunity to meet with Jay Conrad Levinson way back in the day. He said we would have 10 minutes to talk. I was very strategic about how I was going to play those 10 minutes. I knew that I wanted to joint venture on a book. I had 10 minutes to explain why we needed to work together. When you’re interviewing the owner of a model company, don’t say “I’m working for a company and I don’t know what I want to do.” That’s not powerful enough. You’re talking to the owner of a company who is probably very busy. They don’t need your story, just what you want to know. Do your homework before you get started. Before you start making calls, review their website. Try to answer some of the questions before you talk to them.
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Build your Cash Machine
When you talk again by phone or meet in person with an insider, you want to ask more in-depth questions about their business. This is one of your Model Companies, so you want to find out the inner workings of their business. Action Step: Interview a model company and ask them the following questions. Here are some questions you can ask: 1. What is the range of products and services your business sells? 2. To whom are you selling it? 3. What was the opportunity when you created or acquired your business? 4. Was there an opening that you took advantage of? 5. Who were the other players in the market at the time? 6. What were the industry trends then? 7. What are some of the current industry trends? 8. What is distinct or unique about your product or service? 9. How do you position that offering differently from your competitors, in the past and now? 10. Are there any current gaps between supply and demand of which you are aware? 11. How do you market your product or service? 12. What were some of the specific challenges you faced in the past and now? 13. Who is indispensable on your team? 14. Do you tend to hire employees, take contractors or offer them equity? 15. What can I expect to charge for services similar to yours? 16. What items represent some of your biggest expenses? 17. Are there any unseen costs I shouldn’t be surprised by? 18. What is your strategy going forward? 19. Do you plan to exit the business at any time? What is your exit strategy? 20. Are there any other successful companies you suggest I look at? Most likely, business owners will not have the time or desire to answer all of these questions. It’s best to do as much research as possible before you meet with business owners. You don’t want to waste their time asking about details you could find on the Internet. If you know the person is only going to allot you 15 minutes, pick questions that only that person can answer. Then ask if he or she can recommend someone else in the business to answer the other questions ACTION STEP: Find Three Model Companies Your next Action Step is to identify the businesses you want to model. This is a critical step in the process and will shorten your time to making money.
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Build your Cash Machine STEP 1: Find three other companies who you can model. This will give you insights about who they do their business with and also fill in any of the gaps that modeling just one company may create. STEP 2: Identify their best practices. The things they do efficiently over and over again. STEP 3: Look at their marketing through their website, order forms, flyers and other information. Become an expert on their business practices. Look at what they are doing to effectively find customers.
Competition vs. collaboration Business activity is not about competition. Don’t get stuck looking backward or side to side. Instead, look forward. What is it that you want to create? Focus on creating a legal, service-based business to help other people. You have the opportunity to create more in the world. Some people see the world in terms of competition. They might see your Cash Machine as a potential threat. If that’s the case, so be it. Let it go and move on. Find another insider whose values are more closely aligned with yours.
What is your competition charging? If you go back to the very beginning of humanity and business, the price of any item was determined very simply. Someone had a loaf of bread or a bowl or a shawl they wanted to sell, and someone else wanted to buy it. The seller sets a price based on their perceived value of the item. If the buyer does not agree with the stated value, they have a lower perceived value for the item. From that point it’s about negotiation and finding a middle ground between the two perceived values. Eventually, they reach an accord and the transaction is complete. It’s still the same today. That is called a natural market; a transaction that takes place between seller and buyer where the value of the item is determined through negotiation. At some point, the seller went to the lowest he could go and the buyer went to the highest she could go and they agreed. The price was set, the deal was made. Later, when other buyers and sellers started to buy and sell the same things, they based it on the middle ground of the first price set. That became the “market value” of the item and the system we have today was born. Sometimes the prices went higher, and sometimes lower, depending on the buyers and sellers, but the fact remains that the initial value of that item was determined through the natural market.
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Build your Cash Machine
Today, big companies do the same thing. They look for the middle price â€“ the lowest they can sell something and the highest a consumer is willing to pay for it. Once they have that price they have to figure out how to present that product to the consumers and build a high perceived value for the product. In 2010, it cost Apple Computers about $128.00 to make an iPhone, but they sold it for $299.00 because that was the perceived value by consumers. Some companies create a perception of high quality by setting the price high, while others create a perception of value by setting the price low. Regardless of how they do it, companies work overtime to teach consumers why they should buy a particular product, regardless of price, reviews, features, or benefits. Itâ€™s marketing at its most basic and itâ€™s part of setting the price for your service. You will know from your research what the market price range is for the product or service you want to offer through your Cash Machine. The question is: Do you set your prices low and sell a high volume to meet your revenue targets; or do you set your prices high and keep your volume low to meet your targets? Ultimately, this will be a question that is answered by your customers. Case Study #3 Update: Samantha W. Our event planner, Samantha, was able to contact many local businesses that gave her great insight to the industry she was breaking into. A party supply rental company also became a discounted resource for some of her big corporate events. A small local florist was able to point her in the direction of seasonal happenings where she could create a themed event for the public. Samantha quickly learned how seeking out like businesses helped her business grow though joint venture partnerships. For Samantha, getting her financial baseline was crucial. Her husband had not kept good records on what they owned and what they owed. Some payments were past due. She was always told there was either enough money or not enough money. Sorting through what was really an asset versus what was a liability and how much was that really going to cost her a month was important for her to build a business that was not only going to take care of her current financial needs but also build wealth for the future. She quickly learned that she needed $4,700 a month to cover her expenses and lifestyle. Using that as her baseline she was able to create a revenue model for her event business to not only meet that need but also be profitable enough to start making some good investment choices.
Contact a company
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Build your Cash Machine Once you have a sense of the companies out there you’ll want to start targeting ones that you want to build your model after. You can focus in on three companies that fit your business goals then start the process of contacting them. As you know by now, you’re not necessarily going to contact the president of the company or even a manager. You can get a lot of insight from entry level employees who are happy to share their expertise. Eventually, they may connect you to managers and even the company owner if they feel your intentions are good. There are several ways to contact a company and some are obviously faster than others. Here are the most common ways to establish contact: • • •
Send a letter Write an email Make a phone call
No matter how you choose to contact a person at a company, always start out by explaining who you are and why you’re contacting them. Tell them what you plan to do for your business and that you are looking for someone who can give you some insight. If someone you know referred you, let them know who and always be willing to thank them for their willingness to assist you. In your own way, let them know that you’re not trying to become their competitor, set up shop next door, or steal all their clients. Let them know that you really admire the success that they have created and their position as a leading company in the area. Get to the point early and ask them if you can find out more about their business and learn what they have done to become successful. Be gracious in your tone and always grateful for their time. Find out if they would be willing to: • • •
Talk to you by phone Meet you for coffee or lunch Let you shadow them for a day at their job
Set an appointment to meet up in the future and be sure to follow-up before the meeting as a professional courtesy. Keep your first contact brief and acknowledge the person’s busy schedule so they know that you respect their time and willingness to work with you. Most likely, business owners will not have the time or desire to answer all of your questions in your first meeting so be accommodating. This is not a time to be impatient or press them. If you respect them, they will respect you. It’s best to do
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Build your Cash Machine as much research as possible before you meet with business owners so that you are knowledgeable about the company and the industry you’re talking about. A business owner or employee will not want to answer a question that you could have easily found on their website or through simple internet search. You don’t want to waste their time asking about details you could find on the Internet – so do your homework. If you know the person is only going to allot you 15 minutes for a meeting, pick questions that you know only that person can answer. Be clear and to the point with your questions. Don’t waste time searching for words and thumbing through notes. Once you have completed the 15 minutes, be professional and finish the conversation. Don’t assume that if they don’t ask you to leave they don’t want you to go. Respect the established meeting time and gracefully bow out. As you finish your short meeting, ask if he or she can recommend someone else in the business to answer some additional questions. If they can’t come up with a name on the spot, don’t press them. Offer to send a follow-up email so they have your contact information to forward along. In your follow-up email express your gratitude for their time and continued assistance in making referrals to other people you can talk to. Contacting a Model Company: 1) Establish the referral LINK immediately 2) ASK if this is a good time to talk 3) Explain WHY you are calling 4) Clarify your INTENTION so as not to threaten 5) Keep these first contacts BRIEF 6) Use initial call to set MEETING or second call Model Company #1: _______________________________________________ Industry: ___________________________________________________________ Products/Prices Product #1: ______________________________ Price: ______________ Product #2: ______________________________ Price: ______________ Product #3: ______________________________ Price: ______________ Product #4: ______________________________ Price: ______________ Business Model: _______________________________________________________________
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Build your Cash Machine Marketing Ideas: _______________________________________________________________ Sales Ideas: _______________________________________________________________ Team: _______________________________________________________________ Model Company #2: _______________________________________________ Industry: ___________________________________________________________ Products/Prices Product #1: ______________________________ Price: ______________ Product #2: ______________________________ Price: ______________ Product #3: ______________________________ Price: ______________ Product #4: ______________________________ Price: ______________ Business Model: _______________________________________________________________ Marketing Ideas: _______________________________________________________________ Sales Ideas: _______________________________________________________________ Team: _______________________________________________________________ Model Company #3: _______________________________________________ Industry: ___________________________________________________________ Products/Prices Product #1: ______________________________ Price: ______________ Product #2: ______________________________ Price: ______________ Product #3: ______________________________ Price: ______________ Product #4: ______________________________ Price: ______________ Business Model: _______________________________________________________________
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Build your Cash Machine Marketing Ideas: _______________________________________________________________ Sales Ideas: _______________________________________________________________ Team: _______________________________________________________________ Make a list of businesses that are doing your Cash Machine idea. Case Study Update #3: Samantha W. Samantha quickly learned that the businesses and services that are related to that industry are very close knit. A lot of them know each other and help each other with referrals. Samantha was able to be build partnerships with many of the single services providers around town and start building a support network. By being in a joint venture partnership she was able to expand the services she offered her clients thus quickly building a reputation for being the “one stop shop” her customers were looking for. Her partnerships also allow her to pass discounts onto her prospects making her perceived value of service and package pricing very appealing to potential clients
How much and how many Based on your target income, you want to decide: • How much you will charge • How many clients you will need • How many hours you must work • The expenses associated with the revenues The Revenue Model helps you decide if it’s feasible to charge the prices required and get the customers or clients necessary and put in the hours that will make the amount of money targeted. You’ve already figured out some of these numbers – such as price -- in the earlier exercises. Now, it’s a matter of seeing it in relation to your revenue targets. If you can work the hours and charge those prices and get those clients or customers, and do so profitably, then you are all set to move forward. If not, go back to the idea stage. Case Study #4 Update: Joe O.
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Build your Cash Machine Joe had no problem figuring out his pricing model. There were lots of companies that he could borrow sales prices from and he gathered the information he needed with just a few hours on the internet. He also used that research to identify popular services he knew potential clients would be looking for. He was able to combine several services into packages and create a volume pricing model that allowed him to retain clients and create a very loyal customer base.
Finding the best customers You don’t just want customers, you want GREAT customers. The kind that are loyal to you and your service and are willing to pay whatever you ask to get you working for them. It’s always better to go after customers who are willing to pay more for something extra than to target customers who want the cheapest option. Customers looking for cheaper options are more likely to take advantage of you, expect more for less, and generally drive you crazy. If that’s the way you want to be treated, then you probably should have stayed at your old job. There will always be someone, somewhere, who can do what you’re doing for less money; so don’t compete in that arena. Customers who choose a product or service based on price are the least loyal and the most likely to be trouble down the road. They are always looking for deals and that often comes at the expense of quality, reliability, and service. All it will take for them to leave your Cash Machine is to find someone else offering the same service at a lower price. When they focus on penny-pinching they’re not focused on long-term relationships they can trust – and it could mean they are slow to pay their bills. Section Recap: Here are the major ideas covered in Section 1: • • • • • • • • •
Why be an Entrepreneur and make new money 7 reasons you need to take action now Why build a Cash Machine? How to develop your own personal economy Secrets to find your fastest path to cash 5 steps to build your Cash Machine Skill Set Analyzer Selecting the right type of business for your Cash Machine How to find a model company and duplicate their success
With that under your belt, it’s time to dig in and move on to the next section, Defining your Product or Service Model.
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Section 2: Defining Your Product or Service Model You’re in the process of building a successful Cash Machine that you can rely on to create the extra $500 - $1,000 you need right now to get above water; money you can ultimately use to change your entire financial future and build real income security for yourself and your family. You’ve gone through the process of identifying the type of Cash Machine that you can create right now and start generating fast cash. It may not be the most glamorous of businesses, but for now, it gets the job done. This new Cash Machine Business could be a cleaning service, or a delivery service, messenger service, web design service, child service, or any other type of service-based business that people are already paying for. We’ll call this first Cash Machine the stop-gap measure to start catching up on the bills, paying down the debt, and setting the stage for your next move of expanding your Cash Machine. Until that time, we still need to identify the product or “Service Model” for your Cash Machine. Let’s say you’re starting a cleaning business, this means going to the next level in this process – beyond the basics of, “I’m starting a cleaning business,” to identifying the types of cleaning your business might be doing. For example, maybe you’re just doing light house work, or you’re doing full-scale clutter reduction. You might be removing mold and mildew, or you could be cleaning fire damage. There are a lot of things to clean and a lot of ways to do it. This section is about identifying your product and service offerings so that you can quickly go from introducing your business to cashing the checks without a lot of time in between. Now that you have identified your skill set and applied that to a Cash Machine, it’s time to get into action. Define the products or services that you plan to offer within your business. Too many entrepreneurs make the mistake of talking to potential clients without having anything to sell – they just say, “hey, I’m starting a cleaning service” but really don’t know how to answer the next logical question, “what do you clean?” Remember, each conversation that you have about your Cash Machine is a potential sale so be clear on what services you offer and what their value is. This even includes conversations you have with your friends and family.
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Build your Cash Machine Time and time again, I meet people with great business concepts and strong ideas but who aren't clear on the details and try to go too far, too fast. I’ve said it before, and I’ll say it again, “you must walk before you run,” and getting this section out of the way is like lacing up your running shoes. This happens before you’re even ready to walk out the door. This is why we closed the conversation in the first section with interviews of your model companies. In the previous section, you learned about your chosen market and Cash Machine by interacting and interviewing people who are already doing what you are about to do. The questions presented on your worksheets were specifically designed to help you discover the following key points for developing what we refer to as a product funnel – the way in which people move from being a casual contact to becoming a long-term customer. The questions you asked the other company were actually designed to help you discover the funnel that company uses. Questions to ask: • • • •
What was the first service that the representative discussed? How did the representative begin the conversation about their business? What differentiated their Talk Track from the other companies you researched? Did the representative discuss other products and services, also referred to as upsells?
By the end of this module, you should not only be able to answer these questions for your own business, but you will have the following: • •
An understanding of exactly what products or services you plan to sell. A product funnel which leads each client from the “first encounter” (lead generation or first meeting) through to “marriage” (a loyal customer of your business). A complete pricing model on each of your products or services created by your revenue goals.
I am going to continue using the case studies we introduced in our first module because they will help provide you with the examples of how to construct your Cash Machine, product funnel, and revenue model. Before moving forward, and if it’s been a while since you read them, you may want to quickly review those case studies to remind yourself of their businesses and situations. The Product Funnel: Drawing the Roadmap through Your Business A product funnel is the map that shows you how your customer from a planned starting point (your first conversation), through to an opening offer (a free or low cost product or service to build engagement). Prospects will continue through the
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Build your Cash Machine funnel onto an eventual up-sell to a more experience product or a larger package of products and services. Your Cash Machine may consist of an entire menu of services, costing anywhere from a few dollars one time to hundreds of dollars a month. Offering a large bundle of products and services may seem like your fastest path to new cash, but if no one is buying, there’s really no value in it at all. Sometimes, it’s better to make a small sale because once a buys from you, it’s more likely they will buy again in the future. An effective Product Funnel will create a path that leads people from an initial introduction to your services and end with a contract for an entire bundle – but you have to start at the beginning – walk before you run. Starting out, most entrepreneurs have clearly identified the larger service or product – the holy grail of their service, the one they know, if everyone would buy it, they’d have it made. Although it may seem that the highest "ticket price" will get you closer to your overall goals faster, you cannot drive clients immediately to a big ticket without understanding what steps they will take along the way. It comes down to a simple question: “Would you ask someone to marry you right after your first meeting?” Probably not! It takes time to establish trust, identify the characteristics that work together, and ultimately decided that this relationship will work out for the long haul. When your funnel is clearly constructed, you will be able to establish a pattern of trust with your new prospect. This means that you will be able to quickly introduce yourself, establish your expertise and credibility, and build a need for your service as well as create fast cash in the process. Then you’re in a position to offer your service as a solution to fill that need, and over time, this will also help you can identify potential sources of additive revenue (add-on services) that you can incorporate in your model agreement. All of these things are discovered in your first few interviews, appointments, and conversations, and Action Steps. That means that having these conversations and doing these steps on a daily basis is the best way of making your ideas become a reality sooner rather than later. The customer is the key to this entire process because with each conversation, your prospects will help you identify gaps in your talk track or even in your products and services – they will literally tell you what they want to pay you for. For the first few months, you will need to come back to your funnel consistently – revising and reworking the process to ensure the most efficient path from introduction to cashing checks. For some of you, this may even become a daily process.
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Build your Cash Machine Do not make this harder than it is. It breaks down to a very simple question: What do you sell? You already know the type of business you are creating and that naturally narrows the focus of what services or products you will be offering. It’s not likely that a cleaning service has to worry about repairing bicycles – so the simple fact that you’ve chosen your Cash Machine means a large portion of this process is already done for you. The answer to the question, “What do you sell?” should not be merely one particular product or service. Give an answer that doesn’t limit or disqualify a potential customer too soon. For example, if you’re a cleaning service and you offer (among other things) barn cleaning as a service, you still don’t want to answer the question, “what do you clean?” with “barns.” While it’s true, it may be completely irrelevant to the person asking, because they don’t have a barn for you to clean. When you answer the question, start by providing a broad answer instead of talking about only one of your services. Instead, talk about how you plan to serve your customer overall. When someone asks, “what do you do?” you can answer with, “I make life easier for people who are already stretched thin and don’t have time to clean.” This answer talks broadly about your service and speaks directly to what your customer may be looking for. Speaking to how you plan to serve your customers will ensure a long-term relationship with them. In our example above, as long as that person is stretched thin and has no time to clean, you are an indispensible relationship that makes life easier. Why would they ever stop working with you? As you continue to cultivate the relationship with the customer, you can pay attention to other areas of their life and business that seem to be falling by the wayside or could use some extra attention. You can expand your relationship with this customer simply by offering an upgrade of service to include that little thing. It’s a surefire way to expand your business and strengthen your value with this customer. By now, you’re seeing that this is a long-term relationship you’re building with your customers. Even after you stop doing the work personally in your Cash Machine and have hired people to do it for you, you will still have these customers as the backbone of your success.
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Build your Cash Machine You should approach this with a mindset that you will NEVER sell a customer just one product and then disappear from their life. Focus on building lasting relationships that continue to pay out over time. With a strong Product Funnel, you are doing the hardest work in advance of identifying the process for moving customers into a long-term position and offering the services in a logical order. Knowing exactly how you will build the relationship – straight from the ground up will save you time, show your professionalism, and increase your bottom line. When you know exactly how you will serve your customer, you will become far more confident about selling your services to them over and over again and accepting the cash for a job well done. In the end, your success is directly related to how thorough you are in understanding and developing your product funnel. If you know your product and service inside and out, you can offer it quickly, adjust to meet the specific needs of a new client, and still know exactly where your final destination is, you’ll never skip a beat. Your Product Funnel will ensure that you already know how your client will be introduced to you. You already know the next steps following that process. Best of all, you know how you will keep them engaged in the long run. Let’s get started! Visualizing Your Product Funnel When you build your Cash Machine, one of the most important steps is to identify what you are going to sell. Think of a menu at a restaurant. It lists all of the appetizers, entrees, desserts, and beverages so that customers know what they can order. You need to create a menu of products and services for your Cash Machine so your customers know what’s available too. The menu at a restaurant serves an important purpose for new and returning customers. When you go to a restaurant, sometimes you will only be in the mood for a certain item – so you look for that on the menu first, trying to identify something you’re familiar with or in the mood to eat. Furthermore, if you have never been to that restaurant before, you may be hesitant to try something new. Once you have learned to trust the style of the restaurant you may be more likely to stretch outside your comfort zone and try other options you may never have considered before. You may go with something smaller or a more familiar item until you have learned that you like their style. While we’re learning from the restaurant business, recent studies have shown that customers shy away from both the cheapest and most expensive items on a menu, leaning more towards the mid-range priced items. Restaurants have learned to design their menus and train their servers to point at the second or third most expensive items, as they are typically the best selling items! This
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Build your Cash Machine concept will assist you in preparing your own menu of services and give you a conversation structure for your Product Funnel. Just like in the restaurant business, knowing your product and how it serves your customer applies to EVERY type of business in EVERY industry – customers think and spend money in a very similar way across all industries, so play to that. Also, have you ever seen a menu with only one item? How about only two or three? Not likely! It’s important for a great restaurant to offer a selection of food that will ensure that everyone who visits will find at least one thing they could enjoy. There is a very fine line in building your “menu” because too few options may leave customers with no options, and too many may create confusion and lack of focus. The perfect menu is refined, focused, and supports the needs of different types of customers. Just as in the example above, you must imagine your products and services as a funnel that is wide at the top and narrow at the bottom. You’re going to work with customers in a very organized manner and introduce them to your service in a very specific order. At the top of the funnel, you will offer something that captures the customer’s attention – this could be something for free or a very low cost. By getting their attention with a “value” item/service, you are in a position to move them further down the funnel. As customers move deeper into the funnel, the prices go up and so does the value. At the bottom of the funnel is your most expensive product – by the time a customer is offered these options they have established a relationship with you and are more likely to take advantage of higher-priced options because they perceive you offer considerable value. The reason the funnel is wide at the top is so you can visualize yourself reaching the largest possible group of people first. It’s like casting a wide net in fishing. This is the area where everyone in the entire world is sitting until they become prospects and you can begin to market to them over time. At the broadest part of your strategy is where you have and the majority of your new conversations about your business. This is also where the customer learns the value of your services, begins to trust your business, and you establish your brand. Through your continued marketing and sales efforts, you will begin to develop the mechanism you use to drive the new customers in your funnel. At first, some of your clients will not understand why they need your product or service – but something you communicated will capture their attention. This is why your products should comfortably lead them in a direction. Once you have their attention, every product or service in your funnel should lead to the next sale deeper in the funnel. At each level, offer greater value and a higher level of service.
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Build your Cash Machine Your model should always lead a client step by step like the following:
The First Encounter Stage The majority of the time, your first encounter with a potential new customer will be as simple as a conversation – a chance conversation that opens the door to introducing your service or product. As a result, you will want to know who is your potential customer? You want to make yourself available, get your marketing materials, and be accessible in all the places your customers may be. Once you have the first encounter, make sure you’re ready to provide them with what they’re looking for. Once they've found you, do you have what they are trying to find? Once you've served them, would they want to come back and see you again? Be ready to answer their questions, provide a clear picture of how you can help them, and build their confidence in your abilities. Your first encounter should be all about helping your customer to solve their problem and get to know your business. This also should be done with little to no cost or risk associated to the client so they feel there is no obligation to test out your service and see what you can offer. This broad part of the funnel is about building interest in what you’re offering. It’s not the time to go for the gold and push some long-term agreement – you’re just
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Build your Cash Machine here to cast the net and start drawing the customers through the funnel. The rest takes care of itself. The First Commitment Stage Your First Encounter has allowed you to start building the relationship with this new customer and opened the door for the next phase of the funnel - it's time to move toward the first sale. Again, this shouldn't be the highest priced item in your arsenal, but another product or service that is designed to continue the relationship – you’re continuing to fill their need with incremental steps – make it easy for them to say “yes.” Depending on your business, this stage may have several different options and products depending on the customer. It’s okay, as long as you have organized your services and you know which fall into this stage. There will be multiple products for different customers in this stage. Keep in mind that as you go through this process, your new customers may be in this stage for some time as you offer additional services that meet their needs. Ultimately, there will come a time when the number of services they have agreed to will warrant moving to the next stage – make a proposal. The Proposal Stage (The Big Sale) At this point your customer is now familiar with your business and the services you provide. They are familiar with your business practices and confident in your ability to produce on your agreements. It’s at this stage you can lock them in as a regular client, sign them into a long-term agreement, or expand the scope of your services. It’s at this stage you can finally guide them toward your “big ticket” product or service. This could be a bundle of services you provide, or it could be a contract commitment to work with you for an extended period of time. Each unique Cash Machine will have a unique proposal of services and products, but this is your chance to lock down this relationship and start capitalizing on the work you have done.
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Build your Cash Machine Building and Maintaining a Community Stage (Ongoing Relationship) Once you've closed the big sale, it â€™s time for you to put that customer behind you into a maintenance mode â€“ a program of engaging them that keeps them committed to your company and frees you up to find new customers. This maintenance program may include newsletters, coupons, referral incentives, and any other opportunity to fortify your brand and build customer loyalty. In fact, it is your previous customers who are most likely to refer new business your way so you will want to have a system in place that keeps them aware of your company and makes it easy to refer someone your way. Maintaining the relationship through ongoing correspondence, new specials, or expanded products and services will likely be the lowest-cost method of generating new business. Whether you choose to keep customers engaged through offline methods (mail, phone calls, etc.) or online methods (social networking, email, websites, etc.), you need to keep your client engaged. How you cultivate and engage with your customer base will determine the long-term success of your Cash Machine. Creating an environment for your customers to interact with your brand and other satisfied customers will be a great way to use the power of positive exposure to build your company. This ongoing relationship is what then makes your best customers want to be long term members of your community. The internet and social networking resources are ways to engage clients and incentivize them to share with others about your company. People have a desire to belong. They also have a need to connect with other people and share their experiences. If you do not provide an opportunity for your customers to connect, they will look for others way to reach out to others. Building a community is more important to some businesses than to others so be logical about how this part of the program fits with your current Cash Machine. Community is a very important benefit in the coaching and training world. My company, Live Out Loud, provides various opportunities for clients to network, connect and develop relationships with each other.
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Build your Cash Machine Case Study Example: Jennifer and Todd H.
Jennifer and Todd faced a few unique challenges when approaching the senior care market. By far, their most valuable source of marketing was offline, where they were able to meet seniors and families to directly provide consultations about their services. Many seniors would not be searching online for this type of care, but their children were. Therefore, they required a unique approach at the beginning of the funnel. They quickly expanded their ability to reach new customers by developing a small book and a video product for online use, which they also reproduced in physical form to promote offline. Their use of DVDs for this video, which can be reproduced at a very low cost, was particularly effective. Furthermore, the product model was particularly supported by â€œword of mouthâ€? style advertising at all levels. Because of the value provided by their errand services, which were among the first they offered, many clients already began referring new leads. As more clients were generated, Jennifer and Todd were able to bring on team to perform the errand and maintenance services, freeing them to focus on marketing, sales, and providing only the in-home care services.
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Build your Cash Machine Case Study Example: Nancy B.
Nancy’s conviction about showing the difference between her business and a simple “babysitting” service was the inspiration behind her efforts at the top of her funnel. Nancy developed a simple report that she distributed before or during her initial meetings with parents and teachers called “Beyond Babysitting,” that showed the benefits that life skills and cultural education provided over children who spent their afternoons staying with a “babysitter.” Whenever the children were in school, Nancy would visit local schools and agencies to share her material and receive suggestions. Many local teachers quickly bought into her message, regularly referring parents to both consultation sessions and evening classes that were taught by Nancy and her student teachers. Because of the fun and easygoing nature of her program, the majority of attendees would enroll their children in her primary afterschool program. Nancy was able to expand her community very quickly in a variety of ways. When children reached a certain age and had experience in the program, she would work with them to become student teachers and kept them involved with new children. When she would create a class in a new area, many of her existing parents and children would attend, creating a great deal of enthusiasm for those who had not experienced her program before.
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Build your Cash Machine Case Study Example: Samantha W.
Although Samantha’s business took off as a result of her strong offline marketing and appointment setting, she quickly realized the benefit in creating other ways for people to reach her. One of her first hires was a part-time web developer who assisted in creating small, targeted websites (also known as landing pages) with specific offers based on local searches. For example, when a client would search for “Fort Lauderdale wedding,” her landing page was among the first results. The website showed off a small video sample of her previous events, while offering a report titled “The 10 Ways to Create an Event to Remember.” Leads would then be required to enter their contact information to receive the report (called “Opting In”.) As her business continued to grow, Samantha also noticed a large market of people who were attempting to plan an event themselves. She quickly worked to create a “Do It Yourself” style product that included a variety of checklists and planning tools, as well as a short phone consultation with Samantha (and later her teammates) to help others. The “Do It Yourself” kit quickly expanded Samantha’s business beyond her local area, as she was able to perform consultations with people around the world on how to create the perfect event. Samantha also noticed that there were a few areas that were generating a particular amount of interest, so she attempted to find partners in those areas who could help plan events directly. As a result, she was able to make even more income when referring clients out to those areas.
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Build your Cash Machine Whenever a customer had an event planned directly by Samantha or one of her partners, they were immediately and automatically enrolled into an ongoing affiliate program. Each month, these former customers were provided with a newsletter and a special new bonus for referring new leads to the business. Case Study Example: Joe O.
Although Joe was primarily focused on offline marketing and networking within his community, his skills made it easy for him to quickly create a variety of information products about technology and web development. These products were available on targeted websites (landing pages) that required contact information, but he also exchanged them for business cards at networking events. Joe regularly hosted teleseminars with business owners from his community, which he recorded and posted on new landing pages. As time went on, his Q&A sessions became the most popular offer online, so he began hosting a monthly session that customers could subscribe to at a low cost. These seminars became the foundation for a full social media and website training course that guided small business owners through the exact steps they needed to get started in marketing and sales online. Joe found that many of his clients were not interested in doing the work themselves after completing the courses, which led them to purchase his services directly. Joe offered a variety of different packages as his â€œbig ticketâ€? items, ranging from setting his clients up on social networking sites to full scale web development. - 67 -
Build your Cash Machine Because of his local efforts and growing online presence, Joe was able to build a team who was able to assist with the development of these sites. Joe then began to focus on developing an ongoing maintenance and support program that generated regular, reoccurring revenue for his business. ACTION STEP: Create Your Product Funnel Using the case studies above and the information gathered in Section 1, it’s time turn to create your first Product Funnel. It’s time to begin the process of developing a business strategy for your Cash Machine. This process involves creating a list of the initial services and offers you can make to potential customers and then organizing them into the appropriate funnel positions. Remember, by the time you are complete with this Action Step, your funnel should contain the following: • • • • •
An introductory free or very low-cost offer. A “first commitment” low cost product or service. An ongoing product or service (or multiple) designed to establish a relationship with your customer. The “big ticket” offer. An ongoing product or service offer that keeps previous customers engaged and interested in your business.
To get started, you will want to create a list of the services you will offer in your Cash Machine. Be specific and break the services down to the most fundamental offering. For example, if you have a cleaning business, don’t just list “clean kitchen.” Get specific and include all the things you are likely to clean such as refrigerator, appliances, floors, trim, molding, curtains, cupboard fronts, cupboard inside, etc. Each of these are important elements are important to showing your thorough work and will illustrate to the client the extent of your service. Remember, the “small” things on your list may end up being value added options or initial free offers you can make. As a cleaning service you could make the offer something simple like, “free refrigerator and oven cleaning for new clients.” This is a small offer that gets you in the door and makes your service appealing for those people who don’t enjoy cleaning that part of the kitchen. LIST YOUR SERVICES In the following space list your services and the price of the service.
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Even though some of these things may be all part of one larger service package or bundle, separating out the price for each service individually is a good way to show the value of getting a bundled service for a customer and also allows individuals to get just the services they need â€“ they feel like they can create their own service package. INITIAL OFFERS Now that you know what your services are, you can start to identify which of these services could be offered as an initial incentive to start working with you. Your initial offer will be something you can provide at little or no cost to your customer while still providing a value-added product. This can be a service, a discount, a report, or anything that feels like it has value. Some people, like our case study Nancy, use information as an initial offer. This educates the potential customer and creates the need for the services being offered. Other people, like our case study Joe, create events, or offer a free a version (simplified and general) sample of their service to get a customer hungry for more. Focus on adding value to demonstrate how you can help to provide a solution to their problems. Providing this value starts to establish you as a trusted advisor. People are much more likely to buy from a trusted advisor or someone who has provided value. In the following space, make a list of the service you can use as an initial offer and the price/incentive to attract the customer.
FIRST ENCOUNTER Now that you have a list of possible Initial Offers, itâ€™s time to determine the First Encounter area of your Product Funnel. Using the list that you created, choose - 69 -
Build your Cash Machine the Initial Offer you feel will get the most attention from potential customers. You can bounce these ideas off friends and family, or even contact someone you know who could be a customer and ask them what incentive appeals to them. You might be surprised by the answer. Write your FIRST ENCOUNTER offer: _______________________________ FIRST COMMITMENT Now that you know the offer that will get people into your Product Funnel, it’s time to get a clear picture of where you want them to go next. The initial step may have only captured their attention, now you have to get them to commit to something more. If you were creating a cleaning service, this is like getting their attention with a FREE OVEN CLEANING – for new kitchen clients. In this example, you have them interested with FREE oven cleaning, and you’ve incented them to commit to a kitchen cleaning to take advantage of your offer. Based on the FIRST ENCOUNTER OFFER from above, what is the FIRST COMMITMENT you want your new customers to make? Remember, you’re going to charge for this offer. Write your FIRST COMMITMENT here: _____________________________ PROPOSAL When you have a customer in your Product Funnel thanks to your initial offer and their first commitment, you need to move them along the process by offering them a long-term relationship option. This is the bread and butter for creating a Cash Machine that continually pays out. Using our cleaning service example, the proposal takes it from a one-time kitchen cleaning to a weekly or monthly agreement that involves regular service at a set price. It’s important for you to know what the long-term proposal you will offer customers as part of your Cash Machine. This will be the fuel that will drive this machine forward, so you want to have this planned out in advance. This is a way of having regular, returning customers who are constantly funneling cash into your bank account. Write your PROPOSAL here: _____________________________________ ONGOING RELATIONSHIP
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Build your Cash Machine Once you have a proposal that is acceptable to the customer, you need to have a plan in place to keep them engaged and hungry for your service. This plan will continually communicate your services and added value offers that make it worthwhile for them to recommend you to their friends and family. Cultivating your customer relationships will become a key source of new leads that will filter into the top of your funnel. The more you can get your customers to do your marketing and sales work for you, the more cash you can keep in your pocket. Create a plan to develop customer relationships and reward them to work for you. This could include regular emails, a newsletter, coupons, discounts, or incentives. Each Cash Machine will have its own effective cultivation model, so be creative and consider your customers. This should be tailored to their preferred form of communication – emails may work for some, but not for others. Write your ONGOING RELATIONSHIP strategy here: ___________________
Blank forms are available to complete this exercise in the Education Center at: www.______________________________.com
Pricing and Revenue Model Having an effective Cash Machine means setting your target financial goals and knowing what it will take to reach those goals. Initially, your goal may be getting an extra $500 - $1,000 in your bank account every month – so it’s important to know what your Cash Machine has to produce to make that a reality. This process is called Revenue Modeling and it’s something you will do often as your Cash Machine grows and your vision expands. It’s the process of taking your total financial goals and then dividing them down to the month, week, and daily targets that will make it a reality. Your Revenue Model will be the tool you will use to set your service pricing or determine how much service/product you will have to sell to reach that goal. Now that we've clearly established the basis of your business, you can begin thinking about the numbers and prices. To start, we use a simple formula:
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GOAL / 12 / 4 / 5 How much extra money do you want to make per year? For our example, we'll use $1,000 more a month. That would mean an additional $12,000 for the year. You know your annual goal is $12,000, so our formula will tell you what your monthly, weekly, and daily goals will be. • • •
Divide the number goal by 12 months: 12,000 / 12 = $1,000. Divide the number month goal by 4 weeks: $1,000 / 4 = $250 Divide the number weekly goal by 5 days: $250 / 4 = $62.50.
Using this formula you can see that simply generating this shows us that you would need to generate a total of $62.50 each day which would allow you to reach your goal of an extra $12,000 per year. Once you know how much you need to earn, it’s time to look at what your competitors are charging. You can begin to select a price for your service. Using this number, you can determine how much of your product or service you need to sell each day. Then, you can determine how many sales of each item is required daily to reach that goal of $12,000 extra a year. Using this information, you see how much you need to sell at the going market rate for your service to meet your financial daily goals. By using this formula and backing into your total amount, you can also begin to set prices for each of the different product or service levels in your funnel based on this information and the prevailing market rate for your service or product. In addition, your research into model companies can also provide you with some clues of your pricing compared to the market. Don’t offer the lowest prices. Make sure you have a profit margin. Knowing your base revenue goals will help you look at how to price your products and services competitively. Reaching your goal total may require selling only two of your products or services. That might allow you to lower your price and do three instead of two. You’d still reach your goal and could lower your price – it would only take one more sale on your part. However, it is important not to get too caught up in being "competitive" compared to the rest of your market. Although it may seem practical to price yourself slightly below the lowest model company or prevailing market rate of your competitors, this will often set you back from reaching your goals. Companies who have been in business long enough to establish their product as the prevailing rate have done it over time and often make that price possible because - 72 -
Build your Cash Machine they are selling a high volume of their product – making the lower price easier to handle. As you are starting out, you may not have the volume of customers to make competitive pricing a success. At this stage, it’s better to build your pricing around your Revenue Models goals and prove your value with quality work and great service. Later on, you can determine how to price your products more competitively. You will be able to do this once you have developed a strong customer base. Remember, "cheap" doesn't always mean "best." Resist the urge to drop your prices. The first instinct of most people who want to launch a Cash Machine is to set their prices below those of similar businesses. Most people think they can entice customers with the lower price. You tell yourself that having a lower price will help you attract customers, but this will also create the perception that you are not as confident and that your products and services are not worth as much as “real businesses.” Price cutting is not the most effective method to win clients, so don’t even bother fighting on that front. If price were really the only criteria people use to decide where to shop, Walmart would be the only store in town and McDonalds would be the only restaurant – but they’re not. Imagine a car company found out that people were not buying their car because it had huge safety issues. It wouldn’t make any sense for the company to try and win customers to this car by lowing the price. Most consumers would rather pay more for a quality product than save some money and get a vehicle that might have a higher risk of crashing. If this car company wants to win customers they must do it with a quality product that meets the expectations of consumers, plain and simple. People will spend money where they are comfortable, receive personal attention, and know they can rely on the quality of service you provide. Many people are uncomfortable when it comes to asking for the sale. And they often price their products too low. Your products and services aren’t worth as much as those offered by other companies. They’re worth more. Look through your notes about the other Model Companies. After doing this research, you found ways that you can make your products and services distinct. You’re going to offer more convenience, higher quality, better service, or something else that makes you stand out from the crowd. Sometimes just being available on the phone to answer questions will create that distinct perceived value above your competition – and that’s all it takes.
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Build your Cash Machine Whatever distinction you’ve come up with gives you more value – price won’t even matter. People will pay more for value. All you need to do is make sure they’re aware of the value you bring to their life. The "Job You Don't Want to Do..." One of the fastest ways to create more cash is to do the job you don’t want to do. You have the skills, but you don’t like the work. In my many years of coaching, I have seen this many times where people avoid "the jobs they don't want to do." You know the jobs I’m talking about. For some people these are the “messy” jobs, or the “back breaking” jobs, or the “loud” jobs. For every person on the planet there is a different list of jobs they just don’t want to do. In some cases, this may be holding you back from you’re your fastest path to cash. Take the example of a landscape architect. This is a great industry, but can sometimes be a hard sell because people consider it a "luxury" they can’t afford. Or, they believe their money would be better spent elsewhere. However, if you break it out into a product funnel, a practical initial contact or “first date” can be as simple as a consultation on basic yard service – lawn trimming, edging, and some weeding. Once you've developed trust, not only can you upsell the client into landscape architecture, you can also continue your relationship with ongoing maintenance. I’m sure there are landscape architects out there who would shudder at the thought of cutting the lawn and pulling weeds, but they are not seeing that it’s just a means to end. Getting people into your product funnel is the key to getting to your ultimate goal of having a strong and sustainable Cash Machine. Being willing to do the “jobs you don’t want to do” is your ticket in the door to potential customers. If this landscape architect is unwilling to do the “little” jobs, how will he ever be in the position to offer his architect services? And who said you have to do all the work yourself. Get the cash flowing in the door and then you can build a team and add other people to do the things you don’t like to do. Instead of being bottled in one niche, you now have a much larger industry to target and can easily add team to provide the service. Realistic Goals As I teach my clients this process and they work with my personal coaching and mentoring staff they always start to see the growth potential of Cash Machines. You may already be thinking ahead to a time when making an extra $1,000 a month is a distant memory – you’re making $10,000 a month and growing all the time. This is great! You’re opening up your mind to the possibilities and seeing that there is no limit to what you can create when you have a strong business model
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Build your Cash Machine behind you. And, while I’m excited to see you opening your mind to all the possibilities, I want you to remember that you’re still here, at the beginning, just starting your Cash Machine. You can't make your first million until you've made your first dollar. Everything is possible. Most of us don't even realize the abundance around us. When you open your mind to the possibility that you have a service to provide to the world, the world responds accordingly. There are no magic tricks surrounding this process, it is all about your level of commitment to follow the process, do the work, and replicate your success. Regardless of anyone's opinion, building a successful business is something everyone anyone can do. You have the skills, and you’ve probably discovered throughout the past two sections that you’re capable of so much more than you ever thought possible. Sometimes, when we you talk to friends and family about starting a business and creating new cash, they will react negatively. They might say something like, "I had a good friend that started a business once and he went out of business in 18 months and lost everything he had!" It’s tough to hear the pessimism of others, but there is truth in this story. People start businesses all the time, and they fail. And by now, you already know the reason – they didn’t follow the program, they didn’t model their success, they didn’t have a mentor and coach showing them the way, they tried to reinvent the wheel. Even though this conversation about other people’s failures can be painful, it also proves the point about why most people fail to take advantage of the opportunities presented to them. And why others try to hit the ground running before they can even walk – they try doing it their own way and then suffer the painful consequences. One of the key lessons I teach to every one of my clients is to maintain realistic goals. By nature, many of us are inclined to set these our goals either too high or too low. If you set your goals too high, calculating the numbers and running your revenue models can make you feel discouraged – like the numbers you’re looking at are so far out there it may as well be millions. If the numbers are too low, you may actually be sabotaging your own efforts by "taking it easy" once you do reach your goal. You can't make your first million until you've made your first dollar. This might be your first trip to the "gym." You've never developed your money muscles, so you will quickly discover the shifts you require in your life to be successful. You will realize that there are things you have to do, movements you have to make, and endurance you have to build to be successful. It can be
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Build your Cash Machine daunting to finally hit the gym and then see the other muscular, fit people there and feel totally out of your element. The same feelings are true when you’re building your Cash Machine. You may start the process only to look around at other businesses that are flourishing and think you can’t do it. You feel you don’t have the stamina or expertise to make it work. You will quickly discover all of the distractions and fears from your life that sabotage your progress and prevent you from creating new cash. If you are ever wonder how committed you are to the success of your Cash Machine, take a look at your bank account. Your bank account will tell you right away how committed you are to the effort because it will either have money in it or it won’t. Simply put, your success is completely in your hands. I am giving you the same formula I teach all my clients. And, while I can give you the formula, you have to be the one to put all the pieces together and make it work for you. It all starts with your goals. Begin by setting something in motion that you can see yourself accomplishing. Choose something you can celebrate as a victory when you finally do. Even though we used $1,000 in the example above, this number may be too big or too small for you. The numbers are directly related to your time, effort, and commitment. Do not spend as much time on them as you would on taking the next steps.Your goals will be based on what it takes to start breaking even and getting ahead in your life. You may find that you are so far behind in your finances that the amount of money it would take to catch up is too big for your first goal. That’s okay. Start smaller and build up to that number. Then, when you reach it, choose a bigger goal and go for it. This is a progressive process and you’re the only one that can set the bar. So set it somewhere a goal that you can reach with a little extra effort and diligent committed action. Building Your Revenue Model Now that you have identified how much you want to earn per month, you need to figure out how to reach your goal. It’s not enough to know what your product funnel is, you need to plan how much of each product or service to sell each month. Your revenue model is how you convert your product funnel into a strategy. This is why you must complete your product funnel first, so you know exactly what you will be selling. Your revenue model is another opportunity for you to determine where there are gaps, where you could add a new product or service, or what strategies might not work. The revenue model will also show you:
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How many leads you must generate each day to meet your sales goals. How many of those leads must become paying customers each day. Large gaps or jumps in price as clients move from one stage to the next.
As an example, let’s say our goal is to make an extra $1,000 in our first a month of business, how much product do you need to sell? Let’s take a look at a simple example first. Then, we’re going to look at how the people in our case studies accomplished this. Remember, this is an estimate. Over time, you will change these numbers based on actual results. For now, let’s look at a basic example of how that would work: Product Name
Product 1 Product 2 Product 3
$15 $50 $100
$300 $500 $200
Number of Sales Needed Per Month 20 10 2
The problem with the example above is that it helps you calculate what it would take to make a gross income of $1,000 per month, but it does not include any of your ongoing expenses. Every business has some sort of expenses, whether it is the cost of printing flyers, the cost of hosting a website, or the cost of the gas it takes to drive to a sales appointment. For the purpose of our conversation, we care much more about net income, which is the amount you take home each month. When you want to make $1,000 a month, you want to put that cash in your pocket, not back into the business. An effective revenue model will help you monitor these expenses, adjust your goals (if they are too low or too high), and help keep you focused on exactly which activities are the best use of your time. Let’s take a look at some examples! Case Study Example: Jennifer and Todd H. Business: Monthly Goal:
Senior Care and Errand Service $10,000
For this example, we will use three products from the sales funnel.
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Basic Errand Service Transportation to Appointments In-Home Care
Based on their initial projections, they would be able to sell the following per month: Items Basic Errand Service Appointment Transportation In-Home Care
# # # #
Month 1 50 25 10
This shows the number of sales needed. As a result, you can determine the price of each product. You should also think about how many leads you must generate to earn that amount of sales. Revenues Basic Errand Service Appointment Transportation In-Home Care
Sales 50 25 10
Price $50 $100 $500
Total $2,500 $2,500 $5,000
Although this takes Jennifer and Todd to a gross income of $10,000, they still have not added on their expenses. Expenses
Month 1 $1,000 $1,000 $250 $50 $2,300
Computer Advertising Travel Telephone Total Expenses
As a result, the revenue model demonstrates a gap between the sales projections and the net income. Gross Income Net Income (Minus Expenses)
Jennifer and Todd will either need to make more sales or change their prices to meet their monthly goal. Case Study Example: Nancy B. Business: Monthly Goal:
Life Skills Training and After School Program $1,000
For this example, we will use three products from Nancy’s sales funnel. - 78 -
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• • •
Evening Parent/Child Cooking Class (Sold By Class) Evening Parent/Child Magic Class (Sold By Class) Life Skills After School Program (Sold By Month)
Based on Nancy’s initial projections, she would be able to sell the following per month: Items Evening Parent/Child Cooking Evening Parent/Child Magic Life Skills After School Program
# # # #
Month 1 30 30 15
Again, these numbers help Nancy identify what she needs to do to generate the necessary sales numbers. Let’s see how she worked out her pricing. Revenues Evening Parent/Child Cooking Evening Parent/Child Magic Life Skills After School Program
Sales 30 30 15
Price $50 $75 $250
Total $1,500 $2,250 $3,750
As you can see, Nancy’s gross income is $7,500, which is FAR above her initial monthly projection of $1,000 per month. Let’s see how she things looks when we add in her expenses! Expenses Rent Snacks and Beverages Magic Supplies (for class) Cooking Supplies (for class) Advertising – Printed Flyers Total Expenses
Month 1 $500 $1,000 $100 $250 $100 $1,950
Nancy has a fair amount of expenses due to the supplies needed to run her program and classes, but they are still only a small percentage of her overall revenue. Gross Income Net Income (Minus Expenses)
Nancy is a prime example of an entrepreneur with very low expectations. Not only did she perform far above her original projections, but she also could likely raise her monthly price on the afterschool program slightly without much argument. At its current price, Nancy is only charging $12.50 a day for such a valuable service!
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Build your Cash Machine Case Study Example: Samantha W. Business: Monthly Goal:
Event Planning and Management Services $2,500
For this example, we will use three products from Samantha’s sales funnel. • • •
Do-It-Yourself Event Planning Kit Small Event Planning Large Event Planning
Based on Samantha’s initial projections, she would be able to sell the following per month: Items Do-It-Yourself Event Planning Kit Small Event Planning Large Event Planning
# # # #
Month 1 20 5 2
Samantha then planned out her pricing accordingly. Revenues Do-It-Yourself Event Planning Kit Small Event Planning Large Event Planning
Sales 20 5 2
Price $100 $250 $500
Total $2,000 $1,250 $1,000
Samantha’s gross income adds up to $4,250. Now, let’s take a look at her expenses. Expenses
Month 1 $500 $250 $500 $200 $50 $250 $1,750
Computer Website Advertising Travel Telephone Event Supplies Total Expenses
When the expenses are added up, Samantha looks like she’s coming in close to her target. Gross Income Net Income (Minus Expenses)
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Build your Cash Machine Just as Samantha is a master event planner, she is dead on with her sales prediction and what is needed to meet her goal. Case Study Example: Joe O. Business: Monthly Goal:
Website and Social Media Consulting $500
For this example, we will use three products from Joe’s sales funnel. • • •
Social Media Training Teleseminar Website Design Teleseminar Website Design
Based on Joe’s initial projections, he would be able to sell the following per month: Items Social Media Training Teleseminar Website Design Teleseminar Website Design
# # # #
Month 1 10 4 1
Since web design can become costly depending on the services a customer may want, Joe was hesitant to add more than one new design client for the month. Revenues Social Media Training Teleseminar Website Design Teleseminar Website Design
As you can see from our model, there are a few problems with Joe’s funnel. It may be a bit difficult for a customer to jump from a $50 website design teleseminar to a $500 web design package, so Joe was encouraged to look into a product to “bridge the gap” between those items. Eventually, he added a $250 social media package into the mix. Expenses Websites Advertising Travel Telephone Total Expenses
Month 1 $100 $100 $100 $50 $350
When the expenses are in, Joe looks pretty close!
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Build your Cash Machine Gross Income Net Income (Minus Expenses)
Although Joe met his goal, he has a lot of room to grow in this area. With a few more bridge products or creative package design, he could very quickly take his business to the next level. Exercise: Complete Your Revenue Model Using the case studies above and your information gathered from Module 1, create your revenue model. The examples above created a model that covered the first month of business. Your first model will look out over a longer period of time. By the end, the revenue model will help you: • • •
Determine appropriate pricing for your products or services Identify gaps in your offer Provide you with the exact numbers you will need to meet your goal
Here’s how to complete your revenue model: Step 1: Write the name of your products Step 2: Identify how many products you think you can sell in a month Step 3: Multiply the number of products by the price Step 4: Make a list of your monthly expenses Step 5: Calculate your net income by subtracting expenses from your revenues Use the blank forms in the Education Center to complete this exercise at www.________________________.com What’s Next? The material covered in this module is where many business owners get stuck. However, the modules ahead are what will be the most important to your future success. These exercises will take you some time, but once they are done, you must move on to the activities most important to your business. We’ve spent a lot of time on planning and research. You have created your revenue models and product funnels. The groundwork has been laid and now it’s time to actually start the engine on this Cash Machine and start making some money.
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The next steps are focused on getting new customers into your product funnel, and that’s all about sales and marketing. Don’t get stuck planning to plan to plan. Action is the true key to success. Many people spend too much time thinking through things and they get stuck in their stuck. You learn by doing. As you take action, you will learn and grow. It will also help to build your confidence. My goal is to help you achieve your financial goals and see you as a success story in your personal life and an example for other people in your same situation. The fastest path to success is by having a mentor who has been in business before with experiences they can share with you to help you overcome your ongoing challenges. Regardless of your experience level or the amount in your bank account, there is always someone who can take you to the next level. I am fully committed to your success and that’s why I have coaches ready to lead you step by step through the process of creating a successful Cash Machine and make sure you reach your financial freedom day. Who will be the person in your life that challenges you to take the next level when you are not moving forward? And who will be there to celebrate with you when you when you've reached your goal? My team and I are here to work with you through each step on your journey so don’t waste another moment. You have enough information to get started. I encourage you to talk with one of our coaches about your Cash Machine. They can give you a few shortcuts to help you get started. To learn more, simply call 888-XXX-XXXX now. We’ll provide all of the details about how we can help you. Section Recap: Here are the major ideas covered in Section 2: • • • •
Defining the product funnel Identifying what to sell How to build a community of customers Keys to price your products and services
It’s time to move on to Section 3: Marketing with a Purpose
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Section 3 - Marketing with a Purpose Your Cash Machine is ready to launch, but what’s the point of a killer Cash Machine if no one knows about it? Too many great ideas have languished and died on the vine because no one heard about them. What’s the solution? A strong marketing strategy is the answer. You may not know it yet, but cash is everywhere. It's hiding behind the grass that is a little overgrown. So go and offer your service. It's peeking out from behind dirty windows. So grab your bottle of cleaner and head over. It's on top of a broken shelf. So grab your screwdriver and make an offer to fix it. The opportunities to make money are everywhere, but people are not going to just come up and knock on your door unless you tell them where to find you. The true essence of marketing is simply reminding someone they have a need in their life and you have the ability to take care of it for them. Money comes easily and frequently when you open yourself up to receive it. You can accelerate the process when you understand not only where the money is right now, but that it is up to you to find how to shift it into your bank account. Getting that new money into your hands is not as hard as you might think, in fact, it’s quite easy when you realize one vital truth about your Cash Machine – IT’S NOT ABOUT YOU! By now, you may have realized that the success of your Cash Machine depends on your ability to see a need and be the one person to step up to provide a solution. Your service or product is the one and only thing your customer will be looking for if you’ve done your job right – and it all starts with a conversation. It’s time you to open your mouth and start talking about your business. Your willingness to listen to what people are saying and then share about your business will be enough to get the wheels turning on your success. In the first two sections of this workbook, you've equipped yourself with the tools you need to create endless possibilities. The fastest path to cash is opened by exploring your existing skills and creating a road map of how you will leverage them. You've calculated the numbers that you need in order to reach your goals and you know how much cash it will take to get there. Now that those steps are complete, you've learned even more about your audience by having conversations about your product or service. During all of these conversations, you may have noticed a recurring theme: CUSTOMERS!
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Build your Cash Machine The focus of a conversation about your product or service should be on you’re your potential customer. It is NOT about you. With each of these conversations with friends, family, and potential customers, you began to understand more about how your audience relates to your product or service and what works and doesn’t work for them. When you’re talking about your product be sure to know what question your product or service answers. Know what area of frustration your product or service eliminates. It’s much easier to do your own marketing and sales when you know that you’re creating a real value for your customers and making their life better. This is the beginning of your ongoing marketing strategy. Having the conversation and getting the word out about your business is a daily effort. You must spend time every day in the streets, at local businesses, networking with other entrepreneurs, and looking your potential customers in the eye. As you expand your marketing strategies beyond the one-on-one conversation you will notice that those strategies are the same conversations you have always had about your product or service. The difference is that only now the conversation is happening in an email message, newspaper, radio, or internet advertisement, or a different format. But, it’s still the same conversation. You can never talk about your service or engage your customer too much regarding your product and service. Keep in mind that every conversation you have about your product or service will help you fine tune your marketing message and improving the efficiency of your sales process. So get out there and start talking, today! Creating the Cash You Want As you start marketing your Cash Machine, you will go back to the Product Funnel you created in the previous section as a resource and guide. The funnel tells you how many customers you need to reach your financial goals and now it’s up to your marketing efforts to get those people into your funnel. To calculate the necessary impact of your marketing efforts, you must return to the product model you created in the previous module. Just as your product model determined the price of your offerings, your ongoing financial goals will guide you toward your daily activity. Imagine that you need 10 new customers every month to reach your goals. That’s an attainable goal as long as you have a method for attracting those customers. Now imagine that your marketing efforts yield 1 new customer for every 10 people you talk to. Based on that information you can calculate that you need to talk to at least 100 people to get your 10 new customers.
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Build your Cash Machine Not every marketing strategy will be so simple, but I think you get my point. Knowing your product funnel and your goals will assist you in setting your day-today strategies for success. If you know you have to talk to 100 people to make your Cash Machine work, you could divide that up and make it your goal to talk to 5 new people every day about your business. As a beginner, your task is to have a conversation about your business or sell your business with a minimum of 21 people per day, regardless of your goals. These conversations can happen anywhere, ranging from your local coffeehouse to places of business. For some of you, these conversations may even be as simple as knocking on all of the doors on your street. Or picking up the phone and making calls for an hour. Remember, the more people you talk to, the faster you will get cash in the door and the better your business will become. So you can’t talk to too many people. For your business to be successful, let your community know that you are in business and how to find you – get them working for you. If they are convinced that you can provide a solution to a real need, they will do some of your work with “word of mouth” advertising, one of the most effective forms of marketing there is. Marketing is the Answer to Everything Although the conversation is at the heart of everything, the success of your efforts comes down to creating action and urgency. Each of these conversations has a distinct purpose and meaning to your business. Within a few seconds, you will learn to identify how you can serve your potential customer and how you will guide them there. This module is designed to help you understand how to increase awareness of your brand, attract customers, and create opportunities for your customers to purchase. As I have said hundreds of times to my clients, “Marketing is Everything!” No matter how you look at it, you are constantly doing marketing. The clothes you wear, how you do your hair, and even the car you drive is all a form of marketing – you are trying to sway public opinion and tell people around you something about yourself. You should take the same approach with your business. You are now in the business of engaging people in a conversation about the needs they have in their life and the solution you bring with your business. How you engage in that conversation will depend on your resources, the type of Cash Machine you have, and who your target consumer is. From a passing conversation in an elevator to a 50 foot billboard on the highway, there are countless ways to engage with your potential customers in a conversation about your business.
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Build your Cash Machine In the business world, we segment marketing strategies into two categories, online and offline. These primarily deal with internet-based strategies or more traditional strategies like print and posters. To give you an idea, here are some examples of marketing efforts: OFFLINE MARKETING Advertisements Radio TV Direct Mail Ad Cards Flyers Referrals Joint Ventures Public Speaking Endorsements
ONLINE MARKETING Websites Advertisements Sponsors Pay Per Click/Search Engine Optimization Social Media Blog Posts Expert Columns Syndication Affiliate Programs Landing Pages
As you can see, there are many ways to reach out to potential customers. This is just a basic list and there are many more options. While these are some of the more common strategies, I encourage you to get creative and find new ways to reach your customers in an effective way. The most effective marketing strategy includes the following four key steps: 1. Research With good research, your efforts are most likely to engage your target audience both effectively and efficiently. Since almost all products or services address certain needs that a particular demographic may have, your marketing efforts should focus on the areas most likely to appeal to that demographic and be accessible in the places they are looking for solutions. For example, an advertisement in a newspaper is far less likely to engage a younger audience who is used to surfing the web – so don’t waste your money. An online advertisement or social media strategy may be more likely to catch their attention. 2. Engagement Bold statements or questions can engage your target customer and you can quickly capture their attention when you address them directly. Sometimes, the first statement in your marketing effort can be “make or break” for getting the attention of your audience. You are engaging the customer in a conversation that will happen entirely in their own head. All statements or questions should directly reflect how your product or service is valuable to your potential clients. Start out by asking provocative questions about their potential - 87 -
Build your Cash Machine need. Make a statement about how things might change in their life if this need were taken care of. This is particularly important when dealing with a service that can be uncomfortable to some. This was particularly noticeable to our senior care case study, Jennifer and Todd. They engaged their audience by addressing the fear of most senior citizens – being “put out to pasture.” Their call to action focused on how seniors could get the assistance they need on their own terms. As a result, both the seniors and their children were drawn into the marketing conversation about their services. 3. Call to Action In any marketing strategy you must make it crystal clear to the potential customer what they should do next. Your effort has clear and easy to understand directions of what you want your audience to do. Are you asking them to visit a website? Are you asking them to call you? If you want them to visit a website, tell them how to do it. If you want them to call you, tell them the number and say, “call now.” The clear Call To Action will ensure that people who have been engaged in your conversation are ready to take the next step. Everything you do as a business owner should focus on drawing new leads into your funnel. As an entrepreneur, you will find that your most valuable asset is time. So, why do so many entrepreneurs fall into the trap of spending precious time and money on marketing that does not have a clear “next step” for the audience to take? Every conversation you have, in person or through some other form of marketing should end with a Call to Action. If you’re talking to someone in person, that means giving them a business card or flyer. If you’re using an internet ad, that means a clear button that takes them to the next step. Whatever the conversation, always invite the person to TAKE ACTION. Again, this demonstrates the importance of having a diverse product funnel. In situations where you are unable to sell directly or only have a few seconds, your free offer can be key to generating new leads. As we discussed with your Product Funnel, the wide area of your process is where it is easiest to say “YES” and take the next step. Your marketing efforts should always have a Call To Action that is easy to do, like a phone call, button, text message, or email. Although having a lot of conversations can be fulfilling, it will not result in more cash in your bank account. Without that Call To Action, you may be having a lot of conversations about your business, but you’re not making any new money or bringing in any new clients. The Call To Action is the last step in telling people how to find you.
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Build your Cash Machine 4. Tracking and Goal Setting You can’t just blindly start marketing your Cash Machine if you don’t have goals and a way to track the results. How do you expect your campaign to perform? How do you define success or failure? What do you need to actually measure? Because there are so many ways to market your business and engage in a conversation with a customer, it would be unwise to just blindly start throwing your time and money at one strategy or another without a plan and a way to evaluate success. You may find that internet marketing is bringing in five times (5X) as many new customers as the newspaper, so why would you keep spending money on the newspaper ads if they are not working? On the surface, it seems like the internet would be the better choice, but if you don’t keep track, you’ll never know. Sure, it might seem like a five fold increase in the number of new customers is a good result, but not if it costs ten times as much money to get that result. Imagine you spent $100 for an internet ad and got 5 new customers. If you do the math, it cost you $20 to get each new customer. But, if you get 1 new customer from an ad in the news paper that only cost $10, you’re mathematically spending half as much and getting the same result. It would only be $10 to get each new customer. Every conversation you have with your audience will result not only in potential sales, but also a greater understanding of the value of each new lead and client. This is how you calculate the Cost of Acquisition, the cost to get a new customer. Let’s take a look at a short example:
In the example above, you spend $1,000 on a marketing campaign, resulting in 10 new customers for your business. So, your cost of acquisition was $100 for - 89 -
Build your Cash Machine each new customer. Now, you have a basis for comparing different marketing strategies. If you find a strategy which costs only $50 to acquire a new customer, you can get twice the number of new customers for the same expense. Always remember, your time is an asset too. When you calculate the amount of money to spend on your marketing efforts, include the cost of your time. Put a value on how much your time is worth and use that as the basis for the cost of your new customer. Don’t leave anything out, no matter how small you think it may be. Even the cost of the staples you used to post your flyers has a value and is part of the cost. Over time, each of your marketing campaigns will slowly become more effective as you learn to fine tune your message and learn more about your audience. However, at first, you will test several different types of marketing strategies and discover the most effective types for your Cash Machine. Initially, focus on low-cost options that can get your message out to your target customers for the least amount of money. It may not be glamorous, but sometimes a flyer from your copy machine is the best you can do in the beginning – and that’s ok. As you grow, you can invest in diverse marketing strategies and ensure a steady stream of customers into your product funnel as you are growing your business. Marketing Types There are 4 types of marketing which have very specific purposes. They are awareness marketing, direct marketing, viral marketing and relationship marketing. Let’s take a look at each one and consider some ways you can implement these marketing strategies both online and offline. Examples of Marketing Types Marketing Type
Purpose An introductory effort designed to help a client learn more about you and your business. This will often be the first exposure for a new lead. Offline Examples: Public speaking, Community Events Online Examples: Free Teleseminars, Articles or Blogs Any form of marketing that focuses on
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Build your Cash Machine communication directly between your business and the customer. Offline Examples: Flyers, Direct Mail, Telemarketing Online Example: Email Marketing Creatively designed marketing efforts that promote your business at low or no cost, but create conversation among your audience. Viral Marketing Offline Example: Unique Public Events Online Examples: Social Media, Video Marketing Marketing campaigns specifically focused on creating value for new or previously existing customers and encouraging them to stay engaged with your business. Relationship Marketing Offline Example: Customer Service, Followup Calls, Referral Programs Online Example: Email Marketing, Newsletters, Special Offers The 4 P's of Marketing Although there are a variety of methods of marketing your business, the core strategy always lies within four simple concepts.: • • • •
PRODUCT PRICE PLACE PROMOTION
Integrating these points into your marketing strategy will ensure that you have provided all the information necessary for your customer to make an informed decision about you and your product. Let’s take each of this individually. Product: The product (or service) itself is an integral part of your marketing. Everything
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Build your Cash Machine from how the product is packaged, how it’s presented, and the value it provides to the client will set the tone of their experience with your business. What makes your product stand out is defined as the unique selling proposition (USP), which is the distinct advantage a customer will receive by choosing your business or product over another. For some of you, this advantage may lie in the benefits of the product or service itself. For others, it may be the customer experience that you or your team creates to ensure the client’s satisfaction. The distinctions in your business will become clear through conversations with model companies and mentors. In the cutthroat world of carbonated beverages there are a few companies that stand at the top of the heap, Coke and Pepsi. At the most basic level, both products are virtually identical, carbonated water and syrup flavor. Both are considered cola drinks and they are very often served in place of each other when one is not available. But, the fact is, these companies are spending millions in marketing dollars to teach consumers the UNIQUE value of one over the other. These companies are selling a near identical product but you would never know it from their marketing efforts. In fact, their loyal consumers will swear that one is better than the other. They have bought into the marketing and believe the carefully crafted messages created by each company. In the end, it doesn’t matter which is “best” as long as people are buying. When all is said and done, Coke is not losing any sleep over a $2 million ad campaign when it creates 30 million cans being sold generating some $15M in revenue! Price (value): For the sake of this conversation, I will clarify that price does not necessarily mean the overall retail price of your product or service. In marketing, establishing the value of your product or service can be a powerful tool in generating interest. At the very core of the “Price/Value” concept is the sense of urgency and scarcity. Offering discounts just for the sake of offering a price break can often lead to a negative perception about your business. It will cause some people to perceive your product as being cheap. However, using a short-term price break to make the offer more urgent is a strong tactic. When combined with an additional scarcity incentive, such as adding an interesting bonus that is only available for a limited time, this will often increase your sales. We see this concept play out in the retail space. Some stores really get the idea of value as it relates to urgency and scarcity. When Nordstrom has a yearly sale people line up around the corner to get in at the crack of dawn to take advantage
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Build your Cash Machine of the savings. On the other hand, mall jewelry stores that seem to always have everything 50-80% off come across as cheap and desperate. Consumers have a good sense of what is really valuable and they are often will to pay more for a higher quality product. I teach these tactics at our workshops and they are used daily by our case studies. Joe O., our technology expert, regularly offers his teleseminars at speaking events, but will add on an additional “exclusive” session with clients that purchase before the end of that event. Samantha, our event planner, typically creates special bonuses around the holidays for exclusive services or decorations. Abusing urgency, scarcity, and discounts can create a negative perception of your business. Keep in mind, your offers should be diverse and reflect different areas of your product funnel – you only offer added-value options as a strategy to move someone further into the funnel. If you are offering a special discount at events, you should not offer that same discount in all of your promotions – it makes it feel less urgent. Furthermore, your discounts should never be TOO drastic – people get real suspicious when you can offer an 80% discount. Place: The “place” is completely dependent on the call to action of your marketing effort. You must have a place for people to take the next step. If you go to the trouble of getting their attention and never tell them where to go next, you wasted your time and your money. Before beginning your product promotion, you must have a clear pathyou’re your customer to take. Know in advance what you want them to do. You must know where will the transactions will take place. Are people buying online or directly from you at an event? Will you handle the transaction place in person, over the phone, or online? Can clients purchase from a third party or distributor? Be very clear on the process. This will eliminate confusion and ensure the fastest path to cash. Promotion: This component of your marketing includes advertising, merchandising, promotions and publicity. Your message must be interesting, compelling, distinct, and credible. Your two or three most effective marketing efforts should be your most frequent activity. In addition, your promotions should grow and change over time along with new offerings developed from customer feedback. Your promotional efforts are most impacted by your research into your target market. Let your market guide you in determining when you should market, how often, and in what fashion.
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Build your Cash Machine
Target Marketing One of the best ways to increase the effectiveness of your marketing is through target marketing. This means getting clear about who is your ideal customer and then marketing to them directly. This will affect where you advertise or promote your business. It will also affect the words you use, the colors you select and many other elements in your marketing. ACTION STEP: Identifying Your Target Market To get started, take time to do some research. This will help to improve your effectiveness in marketing your products and services and finding new customers. Answer the following questions: • Who is the person or business you are targeting with your product or service? • What are the demographics of your target client? • What is the typical age range of your target client? • What is the average income range of your target audience? Where do they live? Do they own or rent? • What are the behavior patterns of this market? Do they spend a lot of time on the computer? Do they watch television? Do they attend community events? What are their interests? You can download a blank form in the Education Center at: www.__________________________.com. Case Study Example: Jennifer and Todd H. Business: Senior Care Services Question Who is the person or business you are targeting with your product or service? What are the demographics of your target client? What is the typical age range of your target client?
Answer Senior citizens suffering from chronic health or physical conditions. Both genders and any ethnicity. Adults aged 65 and over and their adult children (aged 30-40).
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Build your Cash Machine What is the average income range of your target audience? Where do they live? Do they own or rent?
What are the behavior patterns of this market? Do they spend a lot of time on the computer? Do they watch television? Do they attend community events? What are their interests?
Services are generally needed by middle to upper class seniors. They are generally long-term homeowners who are not interested in leaving the place they have lived for most of their adult life. The seniors targeted typically get advertisements through newspapers, physician referrals, and telemarketing. Adult children can be engaged through similar means, as well as targeted online marketing.
Case Study Example: Nancy B. Business: Afterschool Life Skills Program Question Who is the person or business you are targeting with your product or service? What are the demographics of your target client? What is the typical age range of your target client? What is the average income range of your target audience? Where do they live? Do they own or rent? What are the behavior patterns of this market? Do they spend a lot of time on the computer? Do they watch television? Do they attend community events? What are their interests?
Answer Households with one or two working parents. Both genders, though mothers are usually more interested. Adults aged 25-40. Most families in the local area make anywhere from $25,000-$45,000 a year and cannot afford high end childcare. There is a mix of homeowners and renters. Most of the families in the program are working class. The parents only have a few hours after work to enjoy with their families and usually need childcare after the kids are out of school. The families spend a reasonable time watching television and using the computer. They do not normally attend community events.
Case Study Example: Samantha W. Business: Event Planning Question Who is the person or business you are targeting with your product or service?
Answer Adults that need assistance with planning a personal or business event.
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Build your Cash Machine What gender or race is your target client?
What is the typical age range of your target client? What is the average income range of your target audience? Where do they live? Do they own or rent? What are the behavior patterns of this market? Do they spend a lot of time on the computer? Do they watch television? Do they attend community events? What are their interests?
Both genders. Men are typically more interested in full event planning services, while women generally prefer basic support or the kit. Adults aged 25-50 Middle to upper-class professionals. They are typically homeowners. Our audience can regularly be found on a computer, while they are using television and radio less and less. Couples planning a wedding can normally be found at community trade shows or wedding events, but we normally have to “go to them” rather than waiting for them to come to us.
Case Study Example: Joe O. Business: Website and Social Media Consulting Question Who is the person or business you are targeting with your product or service? What gender or race is your target client? What is the typical age range of your target client? What is the average income range of your target audience? Where do they live? Do they own or rent? What are the behavior patterns of this market? Do they spend a lot of time on the computer? Do they watch television? Do they attend community events? What are their interests?
Answer Adult professionals who are looking to expand their business online. Both men and women. Ages 40-65, but some younger customers from time to time. Business owners and entrepreneurs.
Clients normally hear about us at local business events, but sometimes find us through our online marketing. We don’t see a lot of response to traditional advertising.
You can download a blank form in the Education Center at: www.__________________________.com. Developing Your Marketing Tactics Now that you’ve identified your target market, the process of identifying specific tactics begins. We’ve talked about the different types of marketing strategies that can be used to engage customers in a conversation about your Cash Machine. Any good marketing strategy will do more than just reach as many clients as
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Build your Cash Machine possible, but it will also generate awareness of your brand and interest among your audience – the people who may not be ready to buy your product or service today, but may do so in the near future. In the early stages of your business, you’ll be looking for ways to generate as much interest as possible. This requires an ongoing, daily commitment to reach as many people per day as possible. Your first marketing campaign will typically be broader than future campaigns, as you have not yet identified the most effective techniques for reaching your target market. Over time, you will begin to localize your efforts into the specific niche strategies that generate you the most business. Marketing is one of the few areas where “sweat equity” (the time you put into it) can mean just as much as spending a lot of money – remember, your time is money, but in this case, it’s money you can spend without taking it out of the bank. The outcome of your efforts will always reflect how much research, time, and effort you have invested in the process. Remember, time is money and you must quickly identify and change areas that are ineffective or disruptive.You’re not going to get anywhere if you spend your time on strategies that don’t pay out. You have to be flexible as you learn what works and doesn’t work – be willing to switch tactics and pursue the things that are getting results. To keep yourself organized, I always recommend that you keep a marketing calendar. Plan out your week or next few weeks in advance with the specific activities you plan to complete. On those days, you will commit to leave the house and you will not return and your day won’t end until you’ve met your goal. Not only do you need to spend time on marketing activities, you must invest time planning future marketing campaigns for your business. It takes time to create a marketing campaign plan, write copy for an advertisement or a website, and create free resources to encourage people to opt in. The better plan, the easier it is to delegate part of the work to your team members to accomplish. Take time every day to work on your marketing and spend time planning and preparing. As time goes on, you will be able to plan these activities further in advance and they will require much less hands-on maintenance. Distinct vs. Unique As you know, “unique” and “distinct” mean two completely different things. By definition, a unique venture would be the only one of its kind or the only operation of its type. Many entrepreneurs get stuck in the
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Build your Cash Machine mindset that the only successful businesses are completely unique – not so. If that were the case, why are there so many “cola” flavors of soda? Why are there so many fast food burger chains? It’s because there is an established market and a clear cash model. If people already spend money on that item, you can begin to make money quickly by simply offering a competitive product. Why invent something completely new? It takes a lot of time and money to convince someone to buy a product that have never heard of. Entrepreneurs often under estimate how much effort this will actually take. The fact of the matter is, McDonalds, Burger King, Wendys, Carl’s Jr. and all the other burger places are actually building off the marketing of the other. None of them have to spend money explaining to the public what a hamburger is, so they can spend the time explaining why their product is better. Using the same examples, why do some people buy one brand over another? Is it brand loyalty? Is it pricing? Is it convenience? Any of those things can be a distinct difference between you and similar businesses. Many companies thrive as a direct result of their distinctions such as luxury cars or electronics – price is no object in these categories because the value has been created over time. Your distinctions are what will grab the attention of your customer and maintain their attention. This is not to say “unique” is bad, but it is slow. Microsoft spent much of the late 1990s and early 2000s trying to convince the buying public that a slate-style computer was the next “big thing” in electronics. They dumped millions into developing software, working with manufacturers, and marketing the TabletPC. That’s one of the reasons people refer to leading edge technologies as “bleeding edge.” It costs a lot of money. Unfortunately for Microsoft, it was actually Apple Computer that eventually won out and their tablet PC, the iPad, became a huge success. Apple’s tablet was not particularly unique, and thanks to Microsoft they didn’t have to spend any money to explain what the product was, they just had to show why it was distinct from everything that already existed. And the rest is history. Within months of the iPad release, the market was flooded with slate and tablet computing devices. Microsoft’s dream had finally come true. They spent millions of dollars and more than a decade to be unique. But, in the end, it was Apple that cashed in by
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Build your Cash Machine being distinct and they sold more than 500,000 units on the first day, more tablets than were sold the entire previous year. This is about making fast cash now, so put your creative energy into deciding how your product is distinct and leverage this in your marketing. But I caution you, don’t allow these distinctions to cost you more money (unless it is making you much more in return). Gimmicks and fads are not as valuable a distinction as quality, reliability, and experience. After all, maintaining focus on excellent service, marketing, and sales will make you more money in the long run. ACTION STEP: Distinctions and Unique Value Propositions Spend a few minutes writing down ten things that make your business different than the model companies you researched in the first module. These can include things like: • • • • •
The value of the service you provide. Additional benefits the customer will receive by choosing your business. The quality of your product How convenient your product is Etc.
You ARE The Expert People want to deal with experts. Whether it’s in the food industry, services, education, products, or repair, people want to know that they can trust the companies they are dealing with – they want an expert. The good news is that you are an expert in something. For years, you’ve been paid at a job for a particular area of expertise. It’s your job to discover your skill sets and convert them into a business that makes you cash quickly. Now that you’ve discovered your Cash Machine based on your skills, you need to create something that will show your potential clients that you can be trusted as an expert in this area. Your job is to take that knowledge, even if it is very specific, and convert it into digestible information for your audience. This is your chance to create credibility for yourself through information. Using your available resources you are now going to create a presentation that showcases your expertise. This content can be drawn from your conversations about your business, or it can directly lead to a particular product in your funnel. For some of you, content creation may actually BE your business.You’ll use this to share an insight into your industry, or information everyone should know. You can teach a quick skill, or a handy problem solving solution. The sky is the limit,
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Build your Cash Machine but this will be a valuable tool for bringing new customers into your product funnel and building relationships of trust. Providing interesting and valuable content to your clients is often the easiest way to introduce yourself. This is especially true in the online space, as one of the most popular methods to engage your customer is through articles, blogs, audio, or video. All of these cost little, if nothing, to produce. Some of this work must be done before you are able to begin marketing your business on a wide scale (beyond direct conversations). Early on, you should only be focused on creating short content pieces that assist you in spreading your marketing message or otherwise generate leads through credibility. This is NOT the time for writing a book, filming a full-length movie, or creating CD sets. During the time that your audience is getting to know you, their attention span is too short for these types of products anyway. The key to creating a marketing resource like this is making it valuable. Just because something is FREE, doesn’t make it good. This type of resource is here to add credibility to you as a service/product provider – it should be informative, entertaining, and sharable. If you can get a customer from your efforts, great! But if you can get that same customer to pass your marketing product along to someone else, even better. Before you get started making this resource, first, determine which type of content is the fastest and easiest for you to create. There are free options for you to create all types of content, whether it’s written, audio, or video. There are blogs, videos, pamphlets, CD’s MP3s, and many other formats for delivering your content. Based on your available resources, choose the one that you can do for little or no money and won’t require you to take a lot of time to learn how to do it. A common starting point is to write a report or an article on a particular area of your expertise, or something that relates to your Cash Machine industry. When you have it complete you can get it out to the masses. This could be by placing it on any number of websites, your own website (in exchange for an email address), or you could even contact a local paper or organization to gauge their interest in publishing it locally for you. You could bring this report with you to networking events or use it to trade for contact information while talking to someone you meet. If you look back, you’ll notice that every single one of our case studies began with some sort of report or information product that they offered early in their funnel. Jennifer and Todd H. promoted their senior care and errand business with a 7minute video that they distributed both online and in a DVD format. The video
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Build your Cash Machine was recorded for free on their home computer. Over time, they transcribed the audio into a written format, did a few edits, and used the report as a companion to the video. The video focused primarily on a few easy tips for seniors who lived at home, as well as services their business provided. Nancy B. created an entire series of written articles and reports that she titled “Beyond Babysitting.” These products ranged from game ideas for children to short learning activities parents could complete with their kids in only a few minutes a day. These articles always directed back to her classes and programs. Samantha W. wrote so many articles in the first few weeks that it became a full fledged product that she could sell to her clients. She continues to do weekly written and video tips on how to plan events. Joe O. created a small binder full of tips and articles that he distributed on a variety of websites and delivered in paper form to business owners. Once you have leads and prospects coming in, you’ll be known as the person to go to for this type of expertise. You want to be the go to person because then you can count on others to start referring new customers to you. Before you know it, people will be coming to you asking for help. Don’t forget to ask for the cash. Making a Commitment to your Success Your success is directly related to your commitment. If you’re not 100% committed to your ultimate financial freedom and willing to do whatever it takes to achieve it, then you will never have it. As you start the process of speaking to 21 people per day, you will discover just how committed you are to your goals. It can become frustrating and discouraging if people do not respond positively to your business – you may want to give up and walk away. Just stick to it. The more people you talk to, the easier it will be. You will fine tune your message and your approach and find more and more people are interested in what you have to say. You can reach that point sooner if you stay focused. Track your progress and your keep your leads organized. There is no need to add to potential frustration with poor organization and record keeping – so keep it all together. Focusing on your objective is the key to an effective marketing strategy. Even something as simple as handing out business cards can be a great way to build leads and cultivate potential customers – but you have to stay focused on your objective. One coaching client I worked with was frustrated because they spent several hours every day networking with people and handing out business cards
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Build your Cash Machine but had very little to show for it. In a week, this client had distributed over 100 cards in the community, but was confused about why there were no leads or sales rolling in. Because this client was not clear on the objective and purpose for distributing business cards she was not asking for cards or contact information in return. She had made the introduction but had no way to follow up by phone, with a letter, or by email. Once she regained her focus and set out again with a clear objective, she handed out another 100 cards the following week and had almost 100 contacts to show for it. With that she was able to make follow-up calls, send out some more information via email and landed 5 new clients. I have seen this same mistake time and time again from many eager clients who are taking action but forget why they’re doing it. Many of you will give your valuable products and services away for free – never realizing that it’s an opportunity to cultivate a lead, create a customer, or generate a referral. Remember, your time and energy is just as valuable as money. Do you walk around the streets handing your cash away to strangers you have never met? So don’t give your time and talents away without something in return. That could be money, it could be contact information, or it could be a referral to another person – anything that will propel your business along is reasonable in return for your expertise. Your job is not only to have a conversation, hand out a card, and go on your way to the next person. You must ask questions and engage in conversation that will that lead them into your funnel or to an exchange of information. Start with questions like: • • •
“What do you want in the area of…(your business)?” “How would your business/life be easier if you had a service like mine?” “How glad would you be when these problems are gone from your life?”
These marketing conversations should always end with an exchange of information or a call to action. Some of my clients, especially women, make the mistake of ending their Talk Track conversations with, “Let me know if you’re interested.” And then they walk away without any contact information and wonder why they can’t make sales. You can always assume they are interested or they would not be talking to you. They may not be ready to make a decision right now, so you better get their information to follow-up in a week or two. If someone is not ready to be one of
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Build your Cash Machine your clients, then ask them if they know someone who is. A simple referral can payout big in the end and it didn’t take any more of your time. If you’re going to give someone your business card, do it because they are going to call you for service or will give it to someone who will. If you don’t tell them what to do with your contact information, why are you giving it to them? Most people that are not getting the results they want are not promoting themselves enough and they’re not asking for the cash enough when the opportunity arises. The next section is all about your sales Talk Track and asking for the cash, but it’s important to establish this throughout all of your marketing efforts. The ultimate objective of your efforts is to get money, pure and simple. The more conversations you have, the easier it will become to show the value of your service. When you truly see the value of your service or product it will be easy to ask for the money – because you know you’re worth it. The Gold is in Building a List As you begin calculating the value of each lead and customer generated through your marketing efforts, you will naturally become more focused on your activities – creating an effective process of spending your time and money to get new business. Most important, you will begin building a list of new leads, contacts, and customers – people you have talked to about your product or service. In marketing terms, this is known as your list or database. Over time, your list will become the most valuable asset of your business. Building your list requires that you gather contact information at every opportunity and organize it quickly. In the best scenario, you will be gathering names, phone numbers, and email addresses everywhere you market in both the offline and online world. If you have completed the marketing and sales Action Steps in this workbook, you will begin building a list very quickly. As your list grows, the system that you use to track your leads and customers becomes much more important. You will need a method to differentiate between leads who have never purchased and customers who have. Eventually, you may even expand your list tracking process to include the different types of products or services they have purchased. All information is valuable. It’s easy to see that you will have different conversations with clients who have purchased items early in your product funnel than those who are loyalists and have been with you for a long time. If you don’t know this information about your clients you can’t effectively engage them for the long-term – you will lose track of them and they will fall through the cracks. This impacts every form of communication.
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Very quickly, you will need to make considerations regarding how you will manage this information. There are a wide variety of online and offline systems, called Customer Relationship Management (CRM) systems that are designed just for this purpose. For those of you who don't have technical skills, this will become one of the most important members of your team over time. To start out, something like a spreadsheet on the computer will work well to track your contacts. Using a program like Excel or the free versions from Google Docs or Open Office are inexpensive ways to start tracking your list. Don’t put this off, start creating this resource now. If you stay ahead of your leads and keep them well organized you will be able to expand your business faster than you ever dreamed possible. Offline Marketing Strategies For some people, the hardest Action Step in this workbook to complete is speaking to 21 new people per day. Most people are not confident in their speaking ability, the quality of their product, the power of their business, or their ability to express their expertise. This is why you need to start marketing through offline channels first. Unless you have guaranteed online profits at the flip of a switch, online advertising strategies can get costly very quickly. When you’re getting started in a new Cash Machine there are some distinct benefits to offline marketing. The benefits to offline marketing are overwhelming: • • •
Offline marketing is generally much cheaper. Offline marketing is MUCH more effective than other means. Offline marketing will result in conversations on how you can improve your product or service.
In the beginning, it doesn’t make sense to spend a lot of money marketing your business. Going into your community and following some of the methods below can help you earn the money to expand your reach with little or no money out of your pocket. I guarantee you that using these strategies up front will also prevent you from making costly mistakes in the future. If you’re still hung up on the Action Step to talk to 21 people everyday about your business, you’ll soon find out that can also guarantee that 21 people a day is not as many as you might think. Remember, you are providing a valuable service to your customers and your community – someone has to tell them about it. There are thousands of people
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Build your Cash Machine out there that want what you are offering but they can’t get that service if they don’t know about it! Finding Community Business Groups There is strength in numbers. Surrounding yourself with family and friends who support you is your first line of success. Working with a qualified coach and mentor from my team is the rocket fuel you need. But there is one more resource you can tap into to really get this Cash Machine off the ground. The first activity you should consider is to seek out local organizations of business owners and entrepreneurs. Find people who are already building businesses, experiencing success, and are connected to the community. This will benefit you in a variety of ways including the potential for new teammates, model companies, and mentor support. These are the people who already know the pulse of your local area and can guide you in the right direction. In addition, as an added bonus, some of them will need your product or service. This is not just for networking, it could be for customer leads too! There are lots of clubs and organizations on the local and national level. Do some research and homework to find those that will work for you. Some examples of community resources include: • • • • •
Chamber of Commerce Rotary Club, Lions Club and other service organizations Business leads group (BNI, LeTip, etc.) Business mixers and speed networking events Seminars, workshops and other training events
Not all groups will be right for you while others may be good as you grow and expand. Some are free and some have membership dues. Pay attention to your budget, available resources, and overall goals. This is a tool to push you to the next level – if it is adding an additional financial burden, then it may not be the best group for you right now. ACTION STEP: Finding Your Local Business Clubs and Associations Research and seek out five local business clubs, groups, organizations or associations in your area. Call two of these organizations to determine when their meetings take place and what you need to do to attend. Plan these meetings as your first two major marketing initiatives and add them to your marketing calendar. Beginning Offline Marketing Strategies
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Build your Cash Machine I talk a lot about “taking action” so it’s time to get busy. No more planning to plan, now it’s time for the rubber to hit the road. As we discussed, offline marketing strategies are going to be your first focus because of the obvious cost benefits and the added value of being able to fine tune your message. Here is a brief list of strategies you can implement quickly for little or no money: Flyers and posters: The simplest and often the most effective form of marketing. Posters can be designed and reproduced at a very low cost, distributed in your target locations, and give clients a clear path of action to learn more about your business. Parties, seminars or events: One of the best ways to engage a new audience is to host a special event. This could be something fun such as like hosting a game, or something more complicated such as a seminar with multiple speakers. Depending on which type of event you choose, the planning can become time consuming. Therefore, this may not be best for those of you who need to spend more time engaging new leads directly. A display ad in the newspaper: Most useful for the older adult demographic, a display ad can provide another “wide net” to reach your potential audience. Testing this strategy is crucial, so do not over commit in the early stages to a long-term commitment. Begin with a small advertisement and carefully track your response and the cost of lead generation to determine how to move forward. You can always expand your commitment as you see the results pile in. Classified ads in the newspaper: Instead of a display ad, a classified ad reaches out to a slightly different market. However, the strategy may not be for everyone. You will tend to get more targeted leads, but responses are lower than display ads. This is another area where you will need to carefully monitor the cost of lead generation and adjust your spend accordingly. Radio Advertising: Radio requires you to have a strong understanding of your target demographic and know your product well. If you have this information and are sure you can make a clear and compelling Call To Action, radio can be very valuable. You can focus your message on your ideal customers. First, you need to identify what they listen to (i.e. a particular type of music, talk radio. etc.) Once you know that, you can find a radio station that matches your needs. You can also talk to individual stations and ask for demographic information on their listeners.
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Build your Cash Machine Radio Interviews: Every day, there are literally hundreds of radio shows across the country looking for guests. By preparing a simple “press kit” that contains some information about you, the business, and your areas of expertise, you can easily be booked to speak. Remember, even if you are a guest being interviewed you are still marketing your business. You can invite people to visit your website, look you up in the phone book, or even visit your office. Make sure you get a recording of each interview and create a recorded catalog so that you can use them in the future for credibility and promotion. Direct Mail: With many businesses moving online, some businesses are discovering that the more “traditional” means of advertising, like sending a letter in the mail, are becoming more effective. Most people do not have as much junk in their mailbox as they used to. Deliver coupons or specials that are specific to a certain offer and closely track the response. Many people, especially older adults, are compelled to save these types of coupons or discount offers. As your database grows, this can become a costly process with postage and printing. Pay close attention to your cost per acquisition equation and adjust your mailings accordingly. Understanding Online Marketing The vast majority of people are connected on the internet in some way or another. There are very some demographic groups that don’t use the internet. If your Cash Machine focuses on those people, look for offline strategies to reach them. Otherwise, online marketing will probably play a key role in your promotion and lead generation. Online marketing has exploded, becoming the primary marketing focus for most businesses around the world. It’s an inexpensive way to get their message and brand in front of a lot of people very quickly. Here are a few of the key reasons online marketing is so effective: • • • •
Online marketing is generally cheap or even free You can reach a much larger audience Many methods allow your marketing to take place 24/7 You can target your audience in a much more specific manner
Everyone should be looking at some basic forms of online marketing when starting their business, but the amount of time, focus, and money you invest largely depends on your target market – if your customers are not surfing the net, don’t waste your time. In addition, many entrepreneurs spend far too much time attempting to “master” the technology, leaving them in long holding patterns while they’re waiting for a website to go up or traffic to visit.
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Most people treat online marketing as a “passive” investment, meaning that they start up a website or create a social media presence and think an audience will magically appear. This is simply not the case. If you want people to visit your site or join your blog, you have to invite them in some way. Just as with all types of marketing, online marketing requires a clear strategy, strong calls to action, and defined timelines to be successful. So, where should you begin? Creating a Landing Page A huge mistake many people make, largely because of unfamiliarity with online marketing, is the desire to create a huge “showcase” style website with everything your business has to offer. These sites typically are quite expensive, take a long time to create, and can cripple your business right from the start. Even worse, these types of sites generally perform the worst at converting leads, instead forcing your new audience to wander around your website trying to figure out what to do. Online marketing is no different than offline marketing when it comes to lead generation. Your job is to engage your target market and encourage them to take action. The best types of sites for this purpose are known as landing pages. A landing page is typically a one or two page website that gives your client a clear offer in exchange for either cash or contact information. Within only a second or two of arriving, your audience should know exactly what you are asking them to do. The offer must be compelling enough to make them want provide their contact information in order to receive what you are offering. A sample landing page would look something like this:
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Avoid lengthy descriptions of your product or service, just as you would in offline marketing efforts. Instead, share compelling reasons that your audience may be interested in the product, or spell out a need that your product fills. One of the most effective means of doing this is through the use of testimonials about how your product has worked for previous customers. If you choose to use a testimonial from a previous or current client be sure that you have their permission to do so and that you are quoting them exactly. The last thing you need is for someone to accuse you of misrepresenting yourself or your product. So, be honest and up front at all times. Creating Excitement and Community Once a lead has “raised their hand” by subscribing and has said “YES” to your offer, your work has only just begun. Moving the client to the next step or their first purchase is the next challenge. In the online space, your strategy will require more pre-planning than in some other efforts. Because most adults are now accustomed to some form of email or website marketing, you can create a sense of loyalty and community with your audience to develop a relationship and then offer or a product a service. Build trust and rapport first and that will make it easier when it comes time to make the sale. Take the time to cultivate a relationship with the online lead by providing valuable information, additional credibility resources, and a simple Call To Action. Your
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Build your Cash Machine online leads are just as valuable as your offline leads so you must treat them with respect. Follow these golden rules of internet marketing: •
Thou Shalt Not NOT Spam! One of the most annoying things you can do is email too much in too short of a period of time. When this happens, people will quickly tune out your message and will likely remember your business in a negative light. Thou Shalt Provide Value! Just as your product or service provides value to the world, your marketing emails should provide value to those who open the email. Give the lead something to “chew” on that makes them interested in what you have to say. Thou Shalt Not Give Your Content Away for Free! Giving a taste of your product or service is fine, but don’t give it all away for free! If you give too much, you’re not giving your audience any reason to commit to your entry level products. Always remember, “why buy the cow when I can get the milk for free?” Thou Shalt Stay Engaged! If you plan to build a community of interested leads through a blog or social network, you must remain in the conversation as well. Understand their needs and wants just as you would in any conversation and then engage with them. Do not simply broadcast your message as if there is no one on the other end. If you encourage people to engage and interact they are more likely to stick around and work with you for a long time. Thou Shalt Follow Through! If you make a promise or an offer in your email, you must honor it! Even if only one person takes advantage of the offer, you provide the service no matter what.
Over time, your loyal customers will also become a valuable resource for convincing new leads to use your service. Ask for testimonials and use them in your marketing on websites, direct mail, flyers and other collateral. By creating a community where your customers can talk to you, either on your own website or using social networks, your loyal followers will become your evangelists! Joint Ventures and Affiliate Programs Once you have started building a list and creating your community, there are a variety of ways you can begin creating new partners and affiliates – people who will do some of the heavy lifting for getting new leads and customers your way. First, let’s define a few types of relationships.
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Build your Cash Machine A referral program is a simple way to have your loyal customers receive compensation or a bonus for bringing new leads or customers to your business. For example, you can offer cash or other service incentives for the customers who refer a new client to you in a certain time frame. Companies like DIRECTV have been doing it for years. You can bet if they’re doing it, it must be effective. An affiliate is a partner who will advocate, endorse, or directly sell your product for a percentage of the sale or other compensation. Affiliates are used in the offline world, but are most commonly found online. Often times they will use a list of leads they have built up over the years and send them a message or note about your service. A joint venture is a business agreement between you and a partner (or multiple partners) for the purpose of expanding your business. You would typically look for these types of partners for longer term agreements that would benefit your respective businesses. Both of these relationships result in promotion and the sharing of resources between businesses. However, these types of partnerships are statistically the most effective way to market online. This is why maintaining your email list and tracking systems is so important. When you form these relationships, tracking will become even more important. Your tracking will require you to watch statistics such as where your leads come from, how much they purchased, and how much you owe your affiliates, JV partners, or customers who provide referrals. A Word on Compliance Because of the popularity of these business partnerships, there have been a variety of new rules introduced by local and federal governments regarding fulldisclosure to the customer. You will want to be in complete compliance with these rules at all times. To stay in compliance, keep the following rule in mind: •
If you are marketing for someone else, or they are marketing for you, you must disclose that relationship.
You can’t pay someone to send an endorsement of your product or service to their database of customers unless they tell the recipient that they are being compensated for the referral.
This rule goes for any type of promotions, whether they are online or offline. It’s important for you to stay up on the requirements, so do research before you make an agreement with someone and make sure they are in compliance with all
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Build your Cash Machine the laws and regulations. If necessary, or if you are unsure, get specific legal advice. You can find additional information at www.ftc.gov. Search for “endorsement guides.” ACTION STEP: Build Your Marketing Plan To complete this exercise, you will need a copy of your revenue model from the second exercise, information on your model companies, and the other exercises from this module. Your plan should consist of the following: • •
At least two specific marketing activities (either from this module or otherwise) to begin within the next week. Timelines for the distribution of these campaigns. o How many people do you plan to reach in each cycle? o How many leads do you plan to generate? Tracking mechanisms for each of these campaigns. o If these are offline campaigns, how many follow-up actions do you expect? o If these are online campaigns, which aspects will you need to track?
Case Study Example: Jennifer and Todd H. Jennifer and Todd were targeting the ever growing baby boomer population that wanted to maintain some of their independence as well as their accustomed standard of living. With the recent Wall Street declines affecting their retirement portfolios, value and costs are concerns. Jennifer and Todd were counting on the selling points of their personal touch and valuable services that would entice those clients who were just not ready to move to a retirement home. Because Todd was also a registered nurse, that allowed them to provide a service that most other competitors did not offer. A big part of their marketing message not only targeted the senior community but also their kids as well. The angle they used was to appeal to adults who could not be near their elder parents to help them, nor did they want to have Mom and Dad move in with them. Below is an example of the marketing Talk Track they used. “Need help taking care of your parents but not yet ready for them to permanently take over the recreation room? If your parents don’t require full care but you would feel much better knowing they are being looked after, consider Jennifer
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Build your Cash Machine and Todd’s Home Care Services. You will have peace of mind knowing your parents are happy in their own home while still being able to have help nearby.” They hoped this would relay the benefits of the service they were providing, as well as their distinct advantage of being reliable and worthy of a relationship. They hoped too that the humor and personal touch would help capture the attention of potential clients. In order to deliver the message, Jennifer and Todd settled on several ideas, two of which they planned to initiate as soon as possible. The first was flyers. They would pay their kids to deliver the flyers to as many senior community homes as they could. The second was e-mail using list demographics that matched a client having elderly parents. This was the most low cost and mass splash branding that would get them immediately out into the market. Their town had also had a website with a classified section. They would post their message under in home care. Moving forward, Jennifer hoped that they could also run marketing and information booths at events geared towards seniors in their area as well as home shows to attract the client who needed that care for their parents. Todd also created business cards. On the back, he included a “Refer a Neighbor” 10 percent discount. The goal was to get more clients than they could handle. That’s where team would come into play and the services part of their business would expand enough to start taking on employees and create profit with a nice healthy sales funnel full of potential clients and services. Knowing that you need at least 6 ways to constantly market your business, Jennifer and Todd also ordered vinyl decals to place on their cars to advertise. This also helped make the vehicles part of the business and created a nice tax deduction for advertising. Section Recap: Here are the major ideas covered in Section 3: • • • • • • •
How to market your Cash Machine Techniques to create the cash you want Networking at community business groups The 4 P’s of marketing Online and offline marketing strategies How to position yourself as an expert Creating content to drive traffic online
It’s time to move on to Section 4: Generating Sales with your Cash Machine
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Section 4 - Generating Sales with your Cash Machine As you work through my program you are gathering skills and resources that will translate into limitless financial resources for many years to come. We’ve gone from the very beginning of discovering the perfect Cash Machine for you, all the way through to getting a strong marketing strategy in place. Up to this point, you have the foundation laid to build success, but there is still a key element for this whole program to start putting new money in your pocket – asking for the cash! Ask for the Cash In the past few modules, you’ve set up the foundation you need for long-term success in your business. You’ve identified your skills, you’ve found the model companies, you’ve created a model of your products or services, and you’ve established how you’re generating interest. When all the preparation is done and your tools are in place, you must be ready to start cashing in – and that requires your willingness to actually ask for the money. So many people are used to giving their talents and abilities away for nothing. Not only is there no cash exchanged, but there are no referrals, no barter trade, and no new leads created – it’s like you don’t think your time or ability is worth something in exchange. Now that is not to say that donating your time and abilities to worthy causes is completely out of the question, but even those opportunities can yield value for your business. You may not get cash in your hand, but you may get exposure to your product or service, a chance to talk about your company with people you would never have met, and even a new list of potential clients. Cashing in on your Cash Machine will always mean getting to the money – but getting to the money can take several different paths. It’s up to you to keep your eye on the prize. If you’re not crystal clear how this strategy, action, or opportunity will lead to more cash in your pocket, don’t waste your time. At this stage of the process, the goal is new cash in your pocket as soon as possible – and nothing else. From this point forward, your success will be determined by how often you ask for the cash.
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Build your Cash Machine As I have stated many times in this workbook, there is nothing more important than standing eye to eye with your customers and closing the deal – asking for the money. Your conversations with your potential customers should focus on generating leads and making sales for your Cash Machine. You’re not there just for fun and company. You have to reach the point where you are so confident in the value and quality of your product or service that you actually feel you’re doing someone a favor by making the offer and letting them pay for it. Remember, without your product or service, their life is not as good as it could be. It’s time to LET them pay you for the chance to improve their life. As you move through this critical part of the process you’re going to learn about something called your “Talk Track.” This is the unique sales conversation you have with potential customers that quickly and effectively explains your business, the value it creates, and the introductory offer. This Talk Track is your most powerful form of marketing and will determine every other marketing strategy you may do. This section will cover many specific tactics that you can use to perfect your “Talk Track,” finalize the sale, and lead customers on through your product funnel. The stronger your commitment to perfecting this tool, the faster you will make more money, reach your financial goals, and have the freedom you have always wanted. It really is that simple! Your Talk Track is the key to effectively ask for the cash, so let’s get this done! Developing Your Sales Skills Making the sale and collecting the cash is the end objective of all your marketing efforts. Collecting a payment is the fulfillment of the promise made to the customer through marketing. You told them about the product/service, they followed your call to action, and now they are paying you to receive it. If the customer finds your Cash Machine, it means your marketing efforts have been successful – the time and energy you spent to build awareness is paying off. They agree with your marketing that points out a need in their life and they want you to take care of it. You then meet the needs of your customer by selling the products and services offered by your Cash Machine as promised in your marketing. Sales drive your revenue, profits, and potential growth. As the leader of your company you are always on the front line selling, getting the word out, creating interest, and building your database. You can become proficient at selling all of
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Build your Cash Machine your products and services, and practice is an essential part of becoming successful. Despite what you may have heard in the past, being a great salesperson is a learned skill – you don’t have to be born a “natural salesperson” to be successful. By creating and following a strict system of finding prospects, setting appointments, and having conversations about your business – you will create more cash for your business, greater success, and a strong foundation to grow from. The biggest mistake that most entrepreneurs make is that they simply fail to take action for a variety of reasons. Throughout this module, we will discuss how to get past the fear and mystery around sales. Since it is completely possible to learn to be a great sales person, the next few pages will cover the tips and tricks for cracking the code. Pay close attention and notice the things you already do well, and the areas you will need to work on. Selling is Simply Enrolling In marketing the aim is to create awareness of a need, but in sales the aim is to fulfill the customer’s needs with your product or service. As such, marketing and sales go hand in hand. Your marketing message opens the door for your sales Talk Track and the opportunity to close the deal. Without a marketing strategy your sales efforts are flying blind with no foundation to build on; and without the sales process, your marketing efforts are simply a waste of time and money. So at the core, the sales process takes the efforts of your marketing and bridges the gap between the need you identified and the expectations of the customer. The best sales people understand their customers’ needs and are able to engage in a productive relationship by solving a problem. When you understand what the customer really wants and how you can fulfill that need, you can enroll the customer in your product or service and start moving them through your product funnel. The best sales transaction is when the customer feels good about their decision to buy what you are offering. The concept of “buyer’s remorse” happens when a sales person stops providing solutions to the customer’s needs and starts manipulating the situation. If you enroll the customer in making their life easier through your product or service, you take the traditional perception of sales out of the equation – now you’re a trusted friend with a solution to a problem. The sales process then becomes about helping people make a decision and feel good about the transaction that just took place – it’s honest, trustworthy, and long-term. There is a “Right Way” and a “Wrong Way” to make a sale. One will result in happy customers who refer new business, return often for your services, and - 116 -
Build your Cash Machine confidently pay you for your product; the other results in bad word of mouth, working hard to stay afloat, and potential legal troubles. To give you an idea of what I’m talking about, here are some examples: The Wrong Way - Overselling You engage a potential customer, attempting to control the relationship and push a sale on a client immediately. Ignoring what they are saying and focusing only on your desire to “close the deal.” You attempt to make the decisions for your client, deciding on the product or service you will sell them prior to even speaking with the customer. You are completely driven by the number of sales you must complete within a day.
The Right Way - Enrolling You engage a potential customer by asking targeted questions, identifying their needs and how your product or service would meet their needs. Gradually lead them into how to use your service and provide a solution. You lead a conversation where the client’s natural course of action will be to learn more about a particular product or service you offer. You are committed to providing a valuable service to as many people as possible.
Sell Yourself You have probably realized by now that you are as much of the product you’re selling as the actual product or service you’re offering. Often time, your sales will be successful regardless of what you’re offering simply because your customer trusts you. This means you’re selling yourself as much as you are selling your product. People are inspired to take action by emotion more than logic. Sure, there are people who make decisions based solely on pure logic, but the vast majority of people make a decision based on emotion, or a feeling. In your marketing you are looking to evoke an emotional response to your message, and in sales, you are closing the deal through that emotional window. They can feel it and they can see it. As you sell yourself, you’re creating the awareness among your customers that you are a trustworthy and reliable expert who can provide a solution to their need. The first step of selling yourself is presenting your product with confidence. We all recognize it as confidence when we see it. Confident people look you in the eye, answer directly, and put all their cards on the table. The same is true with products. A confident product has nothing to hide – there’s no fine print, no tricky language, and no hoops to jump through. Everything is out in the open.
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Build your Cash Machine Taking pride and ownership in the product you are selling is a way of showing confidence in yourself and inspiring your customer to take action. Your clients should feel your products are credible from the very beginning. Be confident in the sales pursuit. That may seem easier said than done. But there is an old saying that applies here. If you’re feeling less-than confident at this stage of the process then simply, “Fake it till you make it.” Acting confident leads to being confident. You’ll be surprised to find that yesterday you were faking confidence and today, amazingly, you’re actually feeling confident. The shift happens instantly so be ready for it. Acting confident means speaking clearly about your product, answering questions directly, and looking people in the eyes. Confidence does not mean boastfulness, arrogance or cockiness. It really is a genuine belief than you transmit to your customer and as a result, your customer sees and feels that belief. This is about believing in you and your product. Act like you believe in yourself and others will too. Something as simple as standing up straight with your arms at your side and looking someone directly in the eyes can be all it takes to gain someone’s trust and build confidence. Selling yourself is as much believing in your ability to be successful as it is in making someone else believe it. Of course, you also need to believe in the product or service – that what you are selling will truly bring value to your customer. When you are confident about this, it is easier to sell. You don’t have to focus on yourself and your needs, but focus on what you are providing for others. With that sense of service comes confidence. This is why we spent so much time in identifying your skill set and developing a strong product model in previous modules. Given your hard work, there is no reason to doubt that not only can you provide a quality product or service, but you can easily convince others of the value. Sell Your Prospect Make a genuine effort to know your customers. Understand the details and concerns of the people to whom you are selling. Create credibility. It sells products. It is important for your prospects to get a sense of who you are as a person first. Be true to yourself and then credentials will become less important. Have an open, accepting posture. Allow people to know and understand who you are. Sales come easier with trust and rapport. Invest time in developing active relationships with your customer. Selling is about listening. It is about asking questions and having an interactive conversation. By having an in-depth understanding of your target consumer and
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Build your Cash Machine understanding their perspective, you can better scale what you are selling to meet their needs. ACTION STEP: Identify 3 questions you can ask your prospects to help identify their needs. Question #1: ________________________________________________________________ Question #2: ________________________________________________________________ Question #3: ________________________________________________________________ Sell Their Reality Reality is a tricky thing, and it’s always in the eye of the beholder. Remember, one man’s treasure is another man’s trash, so don’t assume you know what your customer needs – just ask them. A clear Talk Track with specific questions will guide your potential customer down a path will reveal their needs. They will literally tell you exactly what it will take for you to close the sale. They will share with you their perception of reality and you will sell to them from that space. For many people, their reality is that they don’t have enough time, money, or expertise to accomplish the goals they have. It doesn’t matter if you agree with them, it’s their reality. All you can do is acknowledge that they feel that way and show how your product or service will solve some, if not all, of that concern. Your goal is to show your potential customer where they are right now and find out where they want to be. Show how your product or service will take them to where they want to go. From that point, it’s as simple as pointing out how your service or product will bridge the gap and get them where they want to be. In many ways, your job is to take away some kind of “pain” or problem they are experiencing and bring them the comfort of knowing they are now able to move on to something else. This means you have to know your target market and then address their concerns. When you get the chance to engage with a customer you need to talk with your customer, not at them. You’re not here to tell them what they need, you’re here to listen to them tell you what they need. As soon as they open up to you, that’s your chance to present your product or service as a solution. When someone’s talking to you versus with you, it’s very annoying, if not patronizing. You want to lead, not direct your customers, to make their own decision. That - 119 -
Build your Cash Machine means asking direct questions that will lead them to an obvious conclusion – always letting them answer and never assuming the answer. If a customer feels that you manipulated them through a sales process, they will not come back and there may be resentment. The opportunity to try again later is substantially reduced. There is truth in the idea that you have two ears and one mouth. You should listen twice as much as you talk. Ask an open ended question and allow your customer to answer in their own words. The ability to listen is a technique you must develop, and if you can master it, your customer will tell you exactly what they need and what they want from you. Relationships of trust are critical. In some ways, this is even more critical than closing the deal. How you approach relationship-building in sales will also show up in your results – not just in closing deals, but in customer referrals. The door should always be open for a new customer to come in, as well as existing customers to find their way to the next product in your funnel.You can always gage the success of your sales relationships based on the simple observation, “do I have returning customers?” and “are my customers referring me to their friends and family?” This same philosophy applies to presentations. There is FAR more value in presenting to your audience rather than staring at your notes or at your Powerpoint slides. During your presentation, focus on providing information. Your prospects will appreciate the information you share. It’s an indication of how you will treat them in the future. Customers will reward your commitment with referrals or return engagements. Overcoming the Fear of Sales Many people are afraid of selling. This is because they don’t want to be seen as pushy or forthright. But if you believe in what you are offering, that it is something that will make the customer’s life better, you are not being pushy, you are being helpful. Remember that your job is to give a clear and compelling presentation. Find people who are interested in learning more about your product or service and then deliver an effective sales presentation. Enroll your prospect into your vision of how they will benefit from your product or service. Share success stories of people who have benefited from working with you. Communicate a simple offer and make it easy for your prospect to say yes. Practice, practice, practice and you will get more confident every day. Find prospects, set appointments and deliver presentations. Your sales skills will improve over time and you will become more confident and effective.
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Action Step: Answering Your Own Doubts As you start building your business, your biggest obstacle may be your own fear of sales. Often, friends and family will add to this fear when they sense your own doubt. They will ask questions which may increase your fears and create more doubt. Therefore, you must identify your fears and doubts immediately so they don’t spread to the people around you or your customers. Doubt and fear are contagious, so get rid of yours as soon as possible. This is the only way you can overcome them and move forward! Some examples of common fears and some action steps you can take to overcome them: Common Fears My product or service is too expensive.
Response and Action Steps You have determined through research of similar companies that they charge this amount, and you have determined this price through careful modeling.
They’re going to say “No!”
Revisit your product model and data on model companies if you are concerned about price. The more you talk to people, the more you will be able to refine your conversation and turn a “no” into a “yes.”
They don’t want my product or service.
Continue conversations with potential clients on a daily basis. Your model company is making money on a daily basis by selling a very similar experience. Revisit your notes on model companies.
Using the examples above, take a moment and identify 3 fears that you may have about selling your product or talking with potential customers. Write them down and then identify one action step you can take to help overcome that fear.
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Build your Cash Machine Fear #1: ________________________________________________________________ Action Step: ________________________________________________________________ Fear #2: ________________________________________________________________ Action Step: ________________________________________________________________ Fear #3: ________________________________________________________________ Action Step: ________________________________________________________________ What is a Talk Track? Picture yourself standing in an elevator with someone you’ve never met. You strike up a conversation with this person, quickly realizing that they are someone that may be interested in your product or service. You have only a few seconds to make an impression, gain their interest, and either get some contact information or actually close a sale. Do you know what you would say? This is an exercise all of my coaching clients practice regularly in every one of my programs. This is known as an “elevator speech,” which is a very short and precise method of effectively generating interest in your business. An “elevator speech” is a version of your Talk Track that capitalizes on the opportunity to give a brief description of what you do and why someone would benefit from your products or services. The challenge is to deliver this speech in the time it takes you to ride an elevator from the bottom to the top floor, about 30 seconds. Think of it as a script you can repeat on demand. It’s a core statement about your business. Your Talk Track is a clear set of ideas and comments that can be arranged in any order to answer any question at any time. It’s everything there is to know about your business.
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Build your Cash Machine The key to having a strong Talk Track is knowing your business inside and out. Knowing the value and benefit it brings, knowing the market and industry it relates to, and being able to expertly explain these things to other people when the opportunity arises. You will need to practice your Talk Track on a regular basis by talking about your business, typically with others who can provide you with feedback like family friends, and colleagues. This not only helps you establish your business identity, but will make it easier for you to address new leads when they come into your space. A powerful Talk Track should include (or answer) the following: The Question What are you selling? What makes your product or service stand out? How do you service your customer? Who are you? How do I get started? What do I do next?
Your Answer The service or product you provide. Your distinct advantage. What you are going to do for them. Your business name or your name. Your call to action. Are you seeking contact information? Are you making the sale?
Your Talk Track must clearly engage your audience while covering each of these areas mentioned above. Clear and concise answers make sure that you are using your time efficiently and giving potential clients what they need to make a decision. ACTION STEP: Create Your Talk Track Think about what product or service your business provides. Review your Cash Machine’s distinct advantages. Think about the type of people who will buy your product or service. It’s not important to include every single one of your distinctions in your “Talk Track” but you will want to mention the most important distinction early. One brief sentence is best to get the point across. But the sentence must be compelling. The goal is to build interest and leave your prospect wanting to learn more. When someone asks you, “What do you do?” your Talk Track allows you to give a quick answer that explains your purpose and gives people a reason to ask a follow-up question. The follow-up conversation can include the other benefits of hiring you or your business.
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Build your Cash Machine Most people do not like to be oversold. When talking in conversation, less is more. Let the person you’re talking to ask for more information rather than overloading them with details. If your first answer is clear and compelling, the customer will ask for more. Enrollment is the key. It’s important to enroll and engage potential customers in a conversation by getting their attention with a quick teaser sentence. Forms for this Action Step are available in the Education Center at www.________________________.com. Case Study Example: Jennifer and Todd H. (Senior Care and Errand Business) Their answers to the questions: The Question What are you selling?
Their Answer The comfort and security of being able to take care of your errands, get to your appointments on time, and have someone just a phone call away whenever you need help. Years of experience combined with personalized care for every customer.
What makes your product or service stand out? How do you service your Just ask us! customer? Who are you? Jennifer and Todd H. Senior Care How do I get started? What do I Register today for 50% off your first appointment! do next? Jennifer and Todd were fortunate to have a wide variety of services they could provide. When they expanded into areas like yard service, they were able to offer virtually any type of daily errand or professional service. This made their business a one-stop shop where they were able to meet any need. If they couldn’t answer, they would quickly utilize their resources to find a model company or create a partnership to meet that need. Jennifer and Todd’s Five Key Distinctions 1. Growing market that is in desperate need of services. 2. Todd’s nursing background. 3. Provides social activities. 4. Neighbor-to-neighbor referral discounts. 5. Satisfaction guaranteed. Specific Talk Track points included:
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• • •
“You can still take care of your parents with our services even though you live far away.” “Be active doing the things you want to do in retirement, not worrying about maintenance that takes away from that.” “With our services and personal attention, you are able to stay in your home for many years in an environment that you want to be in.”
Case Study Example: Nancy B. (Children’s Life Skills) Her answers to the questions: The Question What are you selling? What makes your product or service stand out? How do you service your customer? Who are you? How do I get started? What do I do next?
Her Answer A fun and educational alternative to sitting with a babysitter every afternoon. Skills that will last for a lifetime! Afterschool services for children and evening classes with children and parents. Afternoons with Nancy Introductory information on the program, low-cost classes with the parents, direct service.
The more research Nancy completed, the more surprised she became that her children’s friends didn’t know much about cooking, cleaning, or running a home. These were all things she learned to do as she grew up and naturally passed on to her children. She looked for competitors in the marketplace and found a local kids chef academy business. The classes were expensive and focused on teaching complex recipes. They also didn’t require that the kids clean up afterwards. It seemed more like a theme park experience than an example of reality. Because of her hands on style, Nancy’s approach became more of a 360 degree experience that took place in an actual home environment. She later converted part of her basement into a kitchen area suitable for teaching. It also provided enough room for other activities. Nancy decided to present a more realistic approach to household skills at very reasonable prices. Her service was unique because she was going to offer entertaining field trips. She would also find partners to offer extracurricular activities such as karate and dance classes. Nancy’s Five Key Distinctions
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1. Personalized service, experienced service provider. 2. Creates real life experiences. 3. Simple skills that kids can take home and use immediately. 4. Insured and bonded. 5. Leadership and teamwork skills integrated with the modern family. Specific Talk Track points included: • • •
“I am a domestic expert with ___ years experience and can teach your kids how to be self sufficient too!” “Your children will go from simply being ‘watched’ to learning skills that they’ll need for the rest of their life.” “We have the time to help prepare all the activities you want to do with your kids and bring it to you!”
Case Study Example: Samantha W. (Event Planning) Her answers to the questions: The Question What are you selling? What makes your product or service stand out?
Her Answer An event you will remember for years to come! Experience in all areas ranging from weddings, graduations, or corporate world events. Tips and tricks to help you finish the planning How do you service your yourself, or a full service package from concept customer? to execution. Who are you? Your Dream Event How do I get started? What do I Call for a free meeting about your upcoming do next? event! Samantha’s Five Key Distinctions 1. 2. 3. 4. 5.
Experience in all types of events. A huge portfolio of previous events (photos, audio, and video). The ability to simply provide advice or upsell into full planning services. Access to resources and partners to improve the event (bands, DJs, etc.). Ongoing referral programs to help create cash for previous customers.
Specific Talk Track points included: •
“My business makes having parties and events fun and less stressful and creates lasting memories for any event in your life that is important to you and your family or company.” “We allow you to focus on enjoying your event rather than stressing about it up to the very last minute.”
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“We have all the tools you need to create the perfect event with just one phone call rather than hours of phone calls and online research.”
Case Study Example: Joe O. (Online Marketing) His answers to the questions: The Question What are you selling?
What makes your product or service stand out? How do you service your customer? Who are you? How do I get started? What do I do next?
His Answer A complete online system designed to generate interest in your business, improve relationships with your existing customers, and track your success down to each click! Turn-key solutions rather than complicated, longterm consulting relationships or project management. The creation of online brands. The Online Identity Solution Call for a free consultation on how you can build or improve your online business!
Joe’s Five Key Distinctions 1. 2. 3. 4. 5.
Experience in web design, social media spaces, and business integration. Understanding of both the business-side and client-side of online technology. A growing library of classes, material, and content to teach technology. Face-to-face consultation and service. A clear project plan and roadmap from start to finish.
Specific Talk Track points included: • • •
“A complete online presence guiding clients from their first conversation to sale.” “No need for extensive consulting, huge hidden fees, or unrealistic promises.” “Strategies with clear goals and timelines.”
Setting Appointments To get the cash, you need to meet on a daily basis with prospective customers. The best way to do this is through the process of setting appointments. These can take place either in person or over the phone – but you must be meeting with people.
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Build your Cash Machine Taking the time to have a personal interaction will ensure that any questions or concerns that come up are answered with your Talk Track. No matter how effective your marketing strategies may be, they can’t answer every question. If you sit back and just wait for the phone to ring, you’ll be missing out on huge profits you might have had if you had only set some appointments and used your Talk Track. The simplest way to set an appointment is to pick up the phone, call your prospect and ask them to meet with you. Remember, this meeting is about THEM and the benefits they will get by spending their time with you – yes, you’re even selling them on the value of meeting with you. Just as your time is valuable, so is the time your prospective customer gives you, so respect it. Just as you have a custom Talk Track for an elevator speech, you can develop a Talk Track for setting an appointment. This ensures you’re effectively using your time and getting to the information that is most interesting to your potential client. As time goes on, setting appointments may become a task for a member of your team – since you will have to train them how to do it, it’s best to become a master of it yourself. This way, your time is completely focused on activities that generate new interest and sales for your business. ACTION STEP: Setting Your Appointment Talk Track For different types of appointments, you will likely require a few different Talk Tracks. It is best to come into these conversations prepared with a few key statements you will use for each type of appointment. Perhaps you are introducing a client to an introductory offer – there will be a Talk Track for that. You may also be introducing a previous customer to a new product or service – there will be a Talk Track for that. Each of these scenarios should be approached with different Talk Tracks. These should be designed with the focus of building interest, trust, and rapport. Create a Talk Track for your introductory product or service offer. ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ Create a Talk Track to reach out to previous customers and offer them a new product or service. ________________________________________________________________ ________________________________________________________________
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________________________________________________________________ Handling rejection No one likes to face rejection, but it’s part of being in business. Not everyone will say “yes!” One of the most challenging aspects of business you will face is rejection. Even after you have done everything right and followed my program to the letter, there will be people who just say “NO.” For many of you, this is the actual reason that you become afraid to ask for the cash – a fear of rejection keeps you from asking the big question. It's tough to pour your heart and soul into something, share it with others and discover that they are not interested in it. However, this is part of the growth of your business. As you are out making sales calls, you are going to face a lot of rejection – it’s a fact of life. Sometimes, you might get 50 negative responses in one day. You just have to keep going. Sometimes “no” doesn’t mean “no.” It means, “not now,” so remember to get their contact information or invite them to pass your offer along to someone they know may be interested. A rejection today may turn into a sale tomorrow. Even if clients say “no,” and mean “no,” you must get back on your feet and try again the next day. If you knock on 20 doors and everyone says no, you could just give up; but what if door 21 is the one that will say YES, would you want to miss that opportunity? In fact, I tell my coaching clients to turn rejection into a game. Make it a goal to keep talking to people until you collect 10 rejections. Take your flyers, phone numbers and talk to as many people as you can until you get 10 rejections. Then, you can you’re your day. This way, you can actually use rejections to grow your business. It’s nothing personal. Just take it, adjust your approach and move on. But I will warn you, if you play this game, you will make money. You will learn VERY quickly that colleting 10 rejections will require you to talk to a lot of people. Some of these people will say YES, others will forward your offer to others, and some will call you back later. If you’re doing everything I taught you, this game will result is a HUGE increase in your lead database because you’ll be exchanging contact information with a lot of people. Believe it or not, rejection is a great thing for your business. If you find that you are regularly receiving negative responses, or you receive a large number of rejections in a row, your clients are telling you something about your strategy.
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Build your Cash Machine Their rejection is feedback about your Talk Track, your offer, or your business targets. Perhaps it is something that needs to be adjusted in your Talk Track. Perhaps you need an addition to make your product or service offer more compelling. Either way, this feedback can lead you down a road to much greater future success – but only if you’re willing to accept your rejection as a business-building tool. When you experience a rejection, find out why the client said no. Use every conversation as an opportunity to improve your approach. Be willing to ask why they chose not to work with you. You may find that they just don’t have time for the conversation or a need in their life. If they don’t have time, you can set an appointment. If they don’t have a need, ask them to pass your information along to someone who does. Rejection is NEVER personal, it’s business. People are not rejecting you, they are rejecting your offer. Focus on fine tuning your offer and your Talk Track and you’ll see that your rejections become sales. Regardless of whether a client says yes or no, you must keep going with your sales strategy. The more you focus on making sales, the more money comes. With every positive response, you are building evidence that your strategy is working. You cannot make your first million before you make your first dollar. Even if you only build your cash machine to the point it generates $1,000 a month, you now have evidence that it works. It’s proof that your Cash Machine works and you have what it takes to be financially free. You have $1,000 extra a month in your cash, in your checkbook -- in your Cash Machine checking account – that’s real success you can bank on. Use this as the motivation to keep going and to keep selling. 10 Percent Rule There's a term in sales called the "10 percent rule". If you want to have 10 sales, you need to ask talk to 100 people. Let's take an example. If you want to earn $1,000 in new money a month, and each sale is worth $100, then you need to make 10 sales per month. To get 10 sales, you need to talk to 100 people. Let's use 12/4/5 to break it down. 12: 100 times a month
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Build your Cash Machine 4: 25 times a week 5: 5 times a day In order to reach your $1,000 a month goal, you need to ask for the cash 5 times a day. Get your 10 No's! In the example above, you need to ask for the cash 5 times a day. If you want to get started quickly, you need to take massive action. I challenge you to go out and ask for the cash each day until at least 10 people say “no.” Now, this might sound like an unusual request. But, it's really not. Since many of you have not had a great deal of experience in sales, expecting immediate sales may be setting your sights too high. If you expect to get 10 rejections, it will prepare you emotionally to take action. And here's the best part. Someone might actually say yes. And even if they say no, you will learn something valuable in the process. You will hear the words you are saying, and you will hear their response. That will allow you to make adjustments. You see, getting the results you want simply requires taking action, observing the results and then making slight adjustments. Therefore, I want at least 10 people to tell you “no” every single day. You don’t get to come home until you get 10 no’s! By delaying this action, you are directly impacting your results. My clients know better than to go home before they get their 10 rejections. Now this is not an open invitation for you to be sloppy in your approach. Don’t just go out there and give a bad presentation and sabotage yourself just to get that “no.” The success of your business lies in the balance, so give it all you’ve got. There are no excuses. It does not matter if you are feeling tired. It does not matter if you are having a bad day. There are no exceptions – this must become a part of your daily routine. I don’t care if it’s midnight. Go back out there and get your 10 no’s! If you expect to make new money, you must commit to this activity every day for the first 120 days of your business, maybe even every day for the rest of your life! Regardless of the specific numbers for your Cash Machine, you must ask for cash on a daily basis. As you refine your Talk Track and improve your confidence you will find that it will take longer and longer to get your 10 rejections because more people are saying YES rather than NO.
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If you find yourself in a place where you are getting 10 no’s in a row, you need an experienced personal mentor with whom you can practice your Talk Track. Trust them to listen to you and give you the feedback you need to start getting positive results. As always, we are available every day to help you through this process – so get on the phone and get answers to your questions. You can reach us at ___________________. In most cases, you will make your first sale before you get 10 rejections. In the end, it is all about your commitment to your success! If I tell you that collecting 10 rejections is the path to making money quickly, trust me. I’ve been doing this a long time. One of the reasons they call me “The Millionaire Maker” is that I help clients take the actions they know they need to do but are often afraid to do. I help them to breakthrough their fears and create outstanding results. Case Study Update #1: Jennifer and Todd H. In the early stages of their business, Jennifer and Todd had a difficult time making sales, primarily because they focused too much on their business and not enough on the customer’s needs. Their Talk Track generally focused too much in the area of ongoing services and required a commitment that might be intimidating for a “first encounter.” After quite a bit of practice, Jennifer took a chance with a different approach. She changed the beginning of her Talk Track to: “Have you thought about the later years in life and what your needs will be?” Because most people answered “no” to that question, Jennifer was able to take the conversation a few different ways. These scenarios usually included the difference in cost, health, and overall welfare that impacted unprepared seniors. This conversation applied both to seniors and their adult children. By nature, most seniors do not want to move from their homes. They certainly do not want to be a burden on their children. Jennifer then followed up this conversation with either a few spoken questions or a full follow-up questionnaire that demonstrated the greatest areas of need for each client. From there, she was easily able to illustrate the value of their services. Case Study Update #2: Nancy B. Nancy had a wide variety of questions she could ask depending on the prospect. For parents, she could lead with a question like, “Do you wish your kids could help out around the house more?” This usually elicited a resounding “YES” from the parents.
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Build your Cash Machine When working with the parents of children who were currently in daycare or had a babysitter, she would simply ask – “Do you ever wonder what your children are doing at the babysitter?” This could lead into questions about homework help, chores, or any other similar area. When working with teachers, her approach was often a bit more technical, relying on how after-school programs tend to benefit children personally and academically. Case Study Update #3: Samantha W. Samantha relied on a more visual approach to convey her value to clients. At all times, Samantha carried around a portfolio that included pictures and testimonials of clients. She would use these pictures to guide the viewers into questions. “How long do you think this took the organizer to put together?” Most people would immediately share their concerns and horror stories about party or event planning. This made bridging the gap to her services very easy. At the end of her portfolio, Samantha always carried flyers with tear off contact sheets that had a few targeted questions, such as asking the client’s birthday or anniversary. A month prior to the client’s birthday, she regularly arranged for a follow up conversation regarding what their plan was for the party. This resulted in one of her most effective sales models. Case Study Update #4: Joe O. Joe’s approach to sales was always about the time and pain that many “nontechie” business owners experienced with the internet and website development. Because so many in his target market had experienced disappointment with webbased marketing or spent thousands on previous development that proved ineffective, he was very quickly able to begin a conversation about strategy. Questions included: “Do you enjoy spending thousands of dollars and receiving nothing in return?” “How satisfied would you be if you were able to generate new, interested customers each day with no extra work at all?” Ask, Tell, Ask Now that you have created and practiced your Talk Track, it’s time to begin looking at how you will model your sales conversations and bring customers to the close. The best way to do this, just as you discovered in the Talk Track Action Steps, is through a method we call “Ask, Tell, Ask.” At its most basic, the goal is to ASK a question to that identifies the customer’s needs or desires, TELL them how you plan to provide services to take care of that need, and ASK for the cash.
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Step 1: Ask The first “Ask” questions in the process are open-ended and begin with words like “what” and “how.” These types of question will: • • • • •
Elicit a response to what it is they want. Help you clearly understand what they need. Understand what actions they’ve taken in the past, that may or may not have worked. Help reveal details needed to solve the problem. Listen to their language to determine whether it’s limiting or decisive.
The goal of the first “Ask Question” is to gain clarity about your prospective customer’s readiness to purchase your product or service. It also determines how you are going to position the sale. If you were running a cleaning business you might ask the first question, “What challenges are you running into in keeping your home as organized as you would like?” Notice that the question is assuming they would like to have a more organized house and it’s giving them an opportunity to share with you a frustration they may have about getting the job done. You want to find out things like: • • •
Are they brand new and still need to know you or the product better? If so, you need to spend more time explaining the product or service. Are they immediately ready for action? If so, you need to move to “closing” or “enrolling” them in the sale sooner. Are they somewhere in between? If so, you might want to give them something free to sample, such as a report or consultation.
Write 3 sample “Ask” questions related to your business: 1) ______________________________________ 2) ______________________________________ 3) ______________________________________ Step 2: Tell In the “Tell” step, you want to demonstrate to the prospect that you were listening and clearly heard their need. This aids in determining what product or service can help meet that need, or how you’re going to serve them.
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Identifying a need leads to providing the solution. This is not necessarily the moment to present your product or service. In many cases you are simply reiterating what they said and restating it to them in your own words. As a general rule, I like to end the “tell” sentence with, “is that right?” This lets them clarify their answer or confirm that you’re both on the same page. For example, you might say, “So, what I heard you say you want is....” or “How I know we can help is...” Write 3 “Tell” statements you might use. 1) ______________________________________ 2) ______________________________________ 3) ______________________________________ Step 3: Ask The second “Ask Question” is a “closing” question for the purpose of getting the prospect to purchase. Questions posed to potential consumers should lead to a “yes” answer. Ask a closing question with the assumption that they are going to buy. Possible questions: • • • •
Are you ready to move forward on that today? When would you like to get started? How would you like to pay for that: Visa, Master Card, Check or Cash Would you like…
Write 3 “Closing” questions you might use. 1) ______________________________________ 2) ______________________________________ 3) ______________________________________ When you ask for cash, never seem apologetic or reluctant. You are giving the customer something they need. The product will benefit them. Case Study Example #1: Jennifer and Todd H. Three “Ask” Questions: 1. How would you feel if your errands could be taken care of with just a phone call?
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Build your Cash Machine 2. How would you feel if you didn’t have to worry about calling family members or friends to take care of your personal business? 3. What area in your life causes the most stress? Three “Tell” Statements: 1. We can offer you almost any type of service you would imagine, whenever you need it, with just a simple phone call. 2. You never have to worry about being a burden on us, this is our business and commitment to you! 3. You won’t need to lose sleep about moving closer to home or worrying about your children, we can provide you with any service or care you need at your own home! Three “Ask for the Cash” Questions: 1. When is your next appointment and where will we be going? 2. Which errand will we be taking care of for you? 3. What time do you need us to arrive to get started? Case Study Example #2: Nancy B. Three “Ask” Questions: 1. How fun will it be when your children are coming home happy and ready to make YOU dinner? 2. How easy will it be when you don’t have to chase down your kids about finishing their homework or studying for that test? 3. How nice will it be to participate in activities with your children without having to spend a lot of money or have a lot of preparation time? Three “Tell” Statements: 1. Not only will your kids learn to cook, they’ll learn many other skills as well! 2. You won’t have to worry about nagging or being the bad guy to your kids again. In fact, most of our children see an almost instant increase in test scores and grades! 3. All you have to do is come to one of our classes and we will have everything ready. Bring your smile and that’s enough! Three “Ask for the Cash” Questions: 1. So, when are you going to cancel your current babysitter? 2. When will your child start? 3. Which class sounds the most interesting to you?
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Build your Cash Machine Case Study Example #3: Samantha W. Three “Ask” Questions: 1. How many bad weddings or birthday parties have you been to in your life? 2. How much money do you lose on having inexperienced employees or staff prepare your events? Who knows what to do when something goes wrong? 3. What if you could relax and sit back while your dream becomes a reality? Three “Tell” Statements: 1. Most people simply aren’t good at putting together their own events, or they’re scrambling until the last minute putting together final details. We want everyone involved to ENJOY the event and their cherished memories. 2. An experienced event planner will not only create a better experience, but they will actually save your business hundreds, if not thousands, of dollars on the preparation, technology, and entertainment. 3. We can provide you with the full event experience along with memories that you can treasure forever. Three “Ask for the Cash” Questions: 1. When will we get started on drawing out your event? When does it take place? 2. When will we meet with the team to plan out your vision? 3. Which options will you be adding to your event? Case Study Example #4: Joe O. Three “Ask” Questions: 1. How many thousands of dollars have you lost trying to find the right technical team? 2. How long will it take you to learn all the skills needed to build the perfect online experience for yourself? 3. How many clients could be learning about your business right now that are instead learning about others? Three “Tell” Statements: 1. We provide you with clearly mapped out strategies and packages that won’t bleed over deadlines, take months to complete, or break your budget. 2. So many business owners spend years trying to get it right. This takes way too much investment in time, money, and energy. 3. Your clients will easily find your business and connect through a variety of means.
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Three “Ask for the Cash” Questions: 1. Which package will be the most beneficial for you? 2. How will we work this in with your existing business strategies? 3. When will we begin the work? Finding New Customers – Where Marketing and Sales Meet As you’ve seen through our past two modules, marketing and sales are intertwined not only through every part of our business, but also with each other. Marketing drives the conversations, awareness, and leads to your business. Sales turn that interest into purchases of your product or service. Now that you have an understanding of how these processes work and you’ve developed a great Talk Track that clearly explains the value your product or service will create, you can get more specific in your targeting. That will affect how you find your customers and where you choose to engage your audience. This information will allow you to maximize your time and energy on the most effective business practices. You may have a product or service that is focused in a particular neighborhood, city or state. You will have to decide how far from your home base you are willing to travel or provide service. If you need to travel for sales, you may also want to choose places where there is a concentration of potential customers. Concentrate your marketing and sales efforts in areas you are likely to find customers. For instance, if your customers are all public school teachers, you could seek out the public schools in your area and focus on them. Another example would be customers who all live in the same type of residence. If you selling something designed for people who live in apartments, pinpoint multifamily dwellings in your geographic area and you’ll find new customers. Perhaps you are associating your product or service with a certain type of lifestyle. Instead of finding customers at their home or place of work, you might need to think about where they congregate. What do all your potential customers share? What is it that they all do? Where is it that they all go? Everyone (we hope) eats, so your potential customers probably go to the supermarket. But this may be too large and diverse a group. Dig even deeper into their lifestyle and try to come up with places only your customers go. The key is to put yourself into the life of your customer and visualize what they do throughout the course of the day. For example, if your target customers are men in their twenties, you may find them at local sports bars, casual restaurants, hardware stores, sports shops,
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Build your Cash Machine clothing stores, electronics stores, movie theaters, gaming arcades, parks, beaches, sports fields, courts, rinks, and gyms. You might also find them at special events, like concerts and sporting events. Finally, if you provide a service that is delivered through the internet, you may not be limited geographically to where you can serve customers. But you still need to target a specific audience. Develop web pages with that audience in mind as covered in the marketing section. Below, identify 3 places where you would directly engage potential customers. Location #1: ______________________________________________________ Location #2: ______________________________________________________ Location #3: ______________________________________________________ Closing the Deal Now that you have identified where you will find customers, what you will say, and how you will bring customers in, it’s time to close the deal. This is why we have focused so heavily on sales Talk Tracks. You should now have an almost instinctual ability to understand how to explain your business and engage with your customers. You also know how they will fit into your product funnel. It’s still interesting that even though my coaching clients complete all these Action Steps and have extremely strong products or services, they still have conversations every day without success. How does that happen? The simple answer is that they have great conversations with prospects and don’t finish with a strong close. They don’t ask for the commitment and take the money. In every conversation you must always be prepared to ask your prospect to take action. Sometimes that’s just giving you contact information, or passing your offer to another person. More often than not that action should be giving you money. Remember, even if you fail to close the sale on the first attempt, your process should keep them in your pipeline. This requires some effective strategies. There are many ways to “close” a deal. As you know, some will involve an exchange of money while others will just be to schedule an appointment to talk more about the offer. Regardless of the outcome, every conversation must have a strong close and call to action.
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Build your Cash Machine The mark of a good “close” is that the customer has no choice but to say YES! They are saying yes to an appointment, a payment option, or an added bonus – anything that gets them to agree to the next step is a successful close. A few examples of closing techniques that will “close” the deal: Strategy Statements The “Assumptive” Close Your conversation has shown that your customer is interested in the product and they are ready to purchase. Simply act as if they have already agreed! • • The Bonus or “Scarcity” Close
When will we get started? How would you like to pay?
A special addition, added at the right moment, can often overcome objections or concerns and push a customer over the top. If you find the customer still objects, you can inform them that the price or bonus will only be available for today! Because I can see you are committed, I’m going to add on another product. • Since you are ready to order now, I’m going to give you another product or service for free! Similar to the assumptive close, you will give your customer a few options of how they can customize their experience. •
The “Alternative” Close
• • The “Benefits” Close
Would you prefer this in red or blue? Are we starting this week or next?
Because your product is so valuable, you can easily add up exactly how it will resolve all of the problems or concerns they’ve expressed and get more value than even they anticipate!
The answer to which closing style is best for you lies within your practice and conversations. This is why you MUST talk to 21 people per day and get 10 no’s! Getting the Cash After the customer has agreed to the purchase, you want to seal the deal by getting a formal commitment down on paper. While it may see easier to just stick your hand out and wiggle your fingers, customers will feel better about the transaction and trust you more when you act in a professional way – especially how you take the money.
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Build your Cash Machine For your protection and the peace of mind of your client, make sure everything is in writing. You want to have the price of your product or service in writing, you want to have the customer’s commitment to pay in writing, you want to have the receipt of payment in writing. This process is creating a paper trail of your transaction so you can refer to it at any step of the progress. This type of organization ensures that you are dealing fairly and consistently with all your customers; that you can provide records of payments to your clients if they lose track; and you can make sure you’re charging the customer the same price you advertised in your marketing. All of this organization That requires four specific items: 1. 2. 3. 4.
An order form A one-page contract A flyer or other promotional material Your price list
If you have done your job well, your customer will be ready to commit to your service or product so you need to be ready to act quickly. Once someone has made the decision to purchase something, the more time that passes before they part with the money, the more time they have to doubt their decision. When your customer has agreed to purchase your product or service, it’s time to get their commitment as soon as possible. If they commit, they will start coming up with reasons why it was a good decision. Remember, people buy on emotion and justify with logic. Congratulate them on their decision and give them a few quick reasons why they made a good choice. By taking the time to reaffirm their decision to work with you, you’re justifying their emotional decision and confirming their logical reasoning. This is a surefire way to have a happy customer when all is said and done. Have an agreement and receipt ready immediately. Be able to take payment without hesitation. The sooner you get that receipt into their hand, the sooner the transaction is complete and your client can take a deep breath. If you let them get cold feet by not closing the deal and getting the payment right away, they may have second thoughts. Or they may not think about it all. Without an immediate purchase, consumers will make excuses to not purchase your offering later and your time working with them may be wasted. Setting Sales Goals Just as with your marketing, patterns will start to emerge as you have more conversations. From these patterns, you are able to back in to the eventual goals for your cash machine and get realistic figures about your business
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Build your Cash Machine performance. When you are getting started, you should review these numbers on a weekly basis. For example, if you have 100 leads, you might want to set a target of closing 10 sales which represents 10 percent. As you improve your sales skills, your closing ratio will increase to 20% and eventually 30%. If you find yourself struggling with having conversations or generating leads, it is absolutely critical that you do not give up. If you are having trouble figuring out what methods might be effective, this is another opportunity for you to work with other entrepreneurs and a mentor to strengthen your technique. If you talk to people every day and every week, I guarantee that you will start to see results. The Top 10 Secrets to Sales Success Everyone is looking for a quick fix or magic pill that will make everything work out perfectly with little or no effort, but no such thing exists. Sales success comes from your diligent work and commitment to see success no matter the cost. There is no magic formula for creating sales success, but there are time-tested secrets that you can follow to make sure your success is a goal that you can reach. 1. Be enthusiastic! One of the simplest and most powerful ways to get sales is simply to be enthusiastic. Believe in the product or service and it will naturally create excitement. When you are enthusiastic, you'll connect with your prospect through humor, credibility, and logic. You'll also have an energy that attracts people. Prospective clients will feel this excitement. Articulate it, own it and deliver it. 2. Serve your customer! Everything about your cash machine must focus on the customer experience. This is true of marketing, sales, and the fulfillment of your product or service â€“ you are here to serve the customer. How often does the word â€œcustomer serviceâ€? conjure up images of the counter at the discount department store? How about a long line and a bored clerk? These are all things that stand out in your mind. A bad customer service experience results in clients associating your business with negativity. Successful businesses are built on good relationships. Nurture relationships from your suppliers all the way to your customer. Take care of your customers and
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Build your Cash Machine they will take care of you. Treating people well is the right thing to do and has many benefits, especially when it comes to moving clients further into your product funnel. 3. Know and understand your market! Understanding your customer’s needs is the way to overcome their objections and make the sale. Allow prospective clients to raise concerns and ask questions. Then be ready to ask them questions about that problem and help them determine how the problem occurred. Take a moment to clearly articulate a solution. One of the best tools is to find another customer or client who is very familiar with this problem and how they overcame it through your product or service.Your knowledge of your customer’s needs and the market you operate in will add credibility to your business and build trust with your clients. 4. Share testimonials! It’s a fact that success stories sell and they make it easier for others to buy your service. There is something reassuring in the knowledge that other people have already made the same decision and are happy with the results. When it’s appropriate, it’s okay to get personal. Use your own story as an example and how your product or service helped you and others. Believe in the life changing potential of success. Be careful though. Although stories are powerful, do not lose sight of your inevitable goal. You want to sell. Narratives develop the relationship with the customer. Long winded emotional stories with too much about “me, myself and I” put too much of the focus on you and off the customer. Be specific, measurable, indisputable, and share details of the benefits. The narrative should follow this outline: “Here’s what my issue was. Here are the solutions I tried that didn’t work, and then I found the answer.” 5. Ignite interest! The senses sell. Consider how to move customers. Create a tangible experience – through touch, smell, taste, or sight. Draw the customer in to the experience. Use words to appeal to people who are auditory. Use images to appeal to people who are visual. Use smell to people who are olfactory. Use touch to appeal to people who are tactile. And if you are talking to people over the phone, use words that connect to each of their senses. In fact, the best presentations include words that appeal to all senses. People take action when they have a personal attachment to the result, so paint a vivid picture of what life could be like if they take action. Be descriptive and detailed as you express a potential future free of this need or problem they have identified. You can even take a moment to paint a picture of what life might be like if they don’t take action. Drawing a personal connection between where the customer is now and
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Build your Cash Machine where they COULD be if they took action is a fundamental key to speaking to their emotion and getting results. 6. Put the proposition on the table! One of the keys to make it easy to buy is to offer a simple choice. You need to make your offer clear and easy to understand. Don't offer too many choices. Don't offer too many options. In fact, it's often best to present only one option and then let them decide. Let them choose it. Customers will see or hear what they want to hear. Put out as much information as you can and make it available. Make it easy for them to say yes. Once someone has made a decision to move forward, you can always upsell to another product. If someone says no, you can downsell to another product. You can develop a strategy that will accommodate any response. The most important step to closing a sale is putting the offer clearly on the table and letting the customer decide what the next step is. If you never put the offer in front of them, how will they say yes? 7. Create the reality! To make it easy for someone to say yes, you need to create a vision of them using the product or service. You need to help them imagine what it would be like to experience the benefits of your product or service. Ask the customer how the product might change their life. Ask them how they would benefit from using your product or service. You can also accomplish this by telling a story. You can say, "Imagine a year has gone by. Think about how you have benefited from using ______________. How would your life be different?" You can mention the specific benefits they may experience to help bring the experience to life. If they can truly say their life would be different for the better, then they are likely to have a great experience from your product. 8. Establish a feel-good environment! You might make the sale today or you might make the sale in the future. When you meet with prospects, be a professional. Focus on adding value. Even if someone doesn't buy, they might refer someone to you in the future. Sale or no sale, you want your prospective customer to feel good about your interaction with them. Your Cash Machine will grow through every experience
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Build your Cash Machine and interaction whether it comes through personal conversations, trade shows, store visits, service sampling, or phone calls. Look for ways to deliver value to prospective customers. Develop a productive relationship with consumers. Be somebody they want to hear from. 9. Drive the outcome! Go into every sales opportunity knowing what outcome you expect. Do not get into a sales conversation with vague expectations or statements like “Let’s see what happens.” Have a goal in mind and steer toward it. Keep in mind that your goal is to sell your product, or else you won’t have a business. You have to have a bottom line focus every day. Wake up each morning and recognize that you need to make a certain number of sales each day to cover your expenses and earn a profit. Stay focused on that goal. Make calls, set appointments and deliver presentations. 10. Think their thoughts! Do you know what your prospective customer is thinking? One of the best ways to relate to your customer is to understand things from their perspective. How can you do this? Ask a lot of questions. Take time to study your ideal customers. That means you first need to understand who your ideal customers are. Prior to any sale, you must understand your consumer. That is marketing. Sales take over where marketing leaves off. Find out what the customer thought before he or she bought. Take what you learn through the process and apply it to the consumer. Big companies pay a lot of money for market research. You can do the same thing by calling people by on the phone or meeting them in person. You can also ask people that know your demographic group well. For example, if you want to market to parents, then you can talk to parents, but you can also talk to people in the Parent Teachers Association, or people who run day care centers. They will have a unique perspective and can provide useful insights. After the sale is complete, ask customers what they wanted before they bought your product. It’s a good way to find out when your customer makes a decision and how they feel after making it. The more you know about how people make a buying decision, the better you will be able to influence their decisions. ACTION STEPS: Your Commitments The time for action is now. These modules have helped you put together the foundation, but you MUST take the steps necessary to create cash.
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This exercise may very well be the most important one that you complete when starting your business. Write down the following commitments on a piece of paper. Do not type this on a computer, but write it in your own handwriting and prepare it to hang in a place you see many times per day. This could be your office wall, your car, or your bathroom mirror. “I, _________________, commit to talking to ____ potential customers per day. I will ask for the cash during every conversation and I will provide a valuable benefit to all of my customers.” Fill in the numbers above with your the goals you established based on your revenue model. If you’re not sure of your goals, you will begin with AT LEAST 21 potential customers per day. Sign this paper as if it is a contract you’re making with yourself and remind yourself of your commitment each and every day. You are only as successful as you are committed. By staying committed, there is no doubt that you will reach your goals. Section Recap: Here are the major ideas covered in Section 4: • • • • • • • • •
Creating your Talk Track Selecting your 5 distinctions Learning to sell Overcoming the fear of selling Setting appointments Handling rejection Getting your 10 no’s Ask for the cash The top 10 secrets to sales success
It’s time to move on to Section 5: Your Ongoing Actions
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Section 5: Your Ongoing Actions Building your long-term financial success means taking the concepts and principles we’ve discussed up to this point and expanding them into sustainable Cash Machines – businesses that can support you in reaching your goals. You are already discovering your unlimited earning potential hidden within the skills you already have – and you know that your efforts can payoff with committed action and a great plan. But what’s next? If you’re going to really make strides towards financial freedom, you will have to get this new money working for you – use it to attract even more money into your bank. As the money starts pouring in you will be faced with some important decisions about what to do with that money. There are limitless possibilities and you may find yourself distracted by all the options. Obviously, a portion of the money you create through your Cash Machine will go directly to you as your salary – you must always pay yourself as you would any other person working in your company – on time, and fairly. But what about the rest of the money? What do you do with it? The Sequence of Spending In the previous few sections, you have taken the action that will result in your first cash coming through the door and in to your business. As your Cash Machine generates more and more cash, you will need to make new commitments and build new models around how you intend to spend the money your business brings in. You will make decisions like, how you will pay yourself, and when you will add new team members. These are obvious concerns and decisions because it will determine the growth of your business and the rate you can expand. You’re now in the process of building a Cash Machine that will support you for the rest of our life – stay focused on your goals. The more money you make, the more compelling the choices will become. At this point, many people make the crucial mistake of falling into what I call the “Lifestyle Cycle,” and spending the money in a way that cannot sustain itself. This leads to living beyond your means. This is the main reason that so many people are in debt and is also a big part of why some businesses lose their initial momentum.
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Build your Cash Machine When the cash starts coming in they get excited and start buying the things they never had and lose track of building the business. Next thing you know, they have an oversized mortgage, several luxury car payments, and a pile of expenses that come with this new lifestyle. It’s important that you understand, this program is about building wealth and creating the lifestyle you’ve always wanted, but it must be sustainable. For that reason, I want all of my clients to abandon the “Lifestyle Cycle” and embrace the “Wealth Cycle.” This is where your money works for you and gives you the sustainable income you want so you can buy that nice car or home and know that you will always have the resources to support it. No more bad debt, no more stress, no more struggling to make it all work – just pure financial freedom. This type of money will help you expand your cash generation beyond just a business and create stability for the future. This process is so important that I created an entire product package called “Building Your Wealth Cycles” just to teach this one concept. As you grow, you will want to become an expert at the Wealth Cycle process, and your personal coach can talk to you about that when the time comes, but in the mean time, you need to focus on building this Cash Machine and getting that new money in your pocket. However, in this section, we will look specifically at how you spend the first dollars that come through the door. Just as you have committed to a future of marketing and sales, you must also commit to leading your wealth and driving your financial future focused on growth and financial responsibility. These decisions will be crucial to your long-term success. No “Planning to Plan to Plan” Many entrepreneurs are under the impression that maintaining a business will require a long-term business plan that can take months to create. What you may not realize is that you have already done most of the work to create that plan in our previous modules – this is no time to start complicating things. Think about it, you have already: • • • •
Leveraged your existing skill sets into an entrepreneurial venture. Defined the product or service model that you will offer to clients. Created a marketing plan to bring your business to the public. Developed a daily sales calls strategy for your business on a daily basis.
In most businesses, even large corporations, there are six key areas that drive a company to success, and we have covered four of those major areas already.
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Build your Cash Machine Here are 4 key areas that will help you to succeed in business: • Marketing • Sales • Customer service • Product or service development and fulfillment The only major areas missing from this process are technology and accounting. You may have already identified some of the major technology components you need when you worked on the marketing Action Steps. We talked about free and paid technology resources and we specifically discussed focusing on databases and CRM (customer relationship management) systems – that’s a good place to begin since your list will be the life-blood of your business. As your list and your business continues to grow, there should be one key element that stands out to you about this entire process. You will notice a VERY important element to your success: You need a Team! Don't be a Lone Ranger - Build a Team If you look up the definition of "entrepreneur" in the dictionary, you won't see the word "alone" or "solo" anywhere nearby. In fact, they're in totally different sections of the book! Most of the time, the reason entrepreneurs choose to stay alone is related to either fear of a takeover or the loss of control. Unfortunately, there's no balance. Living in fear means you delay your ability to grow; and every time you pass up to the opportunity to add someone to your team you are literally passing up dollars. You might be worrying about how you will be able to pay a new team member in order to expand your Cash Machine. This is an example of scarcity based thinking, and it’s time to get rid of it. The question should really be, “How much more money can I generate by adding this new team member?” If you can make more money by bringing on a team member, then do it! But, be sure to to track your results and make an adjustment if necessary. Throughout the process of building a business, your mind should always be on expansion and growth. Every step you take in building your business is always an evaluation of COST versus BENEFIT. For example, if printing flyers costs $10 but you generate $100 in new business, that’s a $90 profit and an obvious WIN! The same calculation is true for new team members – if what they cost is less than what they bring in, it’s profit!
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Build your Cash Machine Every additional hour you invest in your business can generate additional revenue. Every teammate that is on your side is adding an additional hour to the effort. You cannot grow fast enough alone, it take a team to super-charge this Cash Machine! I recommend that you look at adding teammates in the following order: Home Support Have you ever wondered how many hours per week you spend running errands or performing duties in your house? This could be anything from cleaning the house, doing the dishes, walking the pets, or driving around your children. Without a doubt, you spend HOURS a week engaged in these activities. Since most of you will be staggering out of an existing job, managing your time off-work is especially important. The longer you burden yourself by completing these home-based tasks, the less time you have to spend on revenue-generating activities. Therefore, the first team members you need to add are on the home front. You are getting someone to ease the burden on your time and resources that your home creates. For some people, this team costs you nothing more than having a frank conversation with family members and getting them to step up their involvement in home-based tasks. Others may be looking to hire someone to come in and support the house. From the moment you hire your first teammate, you must make the commitment that the time you regain will be invested in your business. This time is not for other hobbies or distractions – you’re not freeing up your time just to lose it again in an activity that doesn’t pay you back. You need to be out in the streets shaking hands and offering your product or service. The more money you create, the easier it will be to continue expanding. Bookkeeping Menial tasks such as filing, organizing receipts, and maintaining records is very important, but can be an extremely tedious task for a business owner – as important as it is for your success, it is also VERY time consuming to do it properly. As more and more transactions take place and you make purchases for your business, you will need to stay on top of your books. At first, this role could be filled by a skilled secretary or assistant, but once you grow large enough, you will likely need someone who specializes in the field of financial record keeping and knows how to prepare documents for tax purposes. Sales and Marketing Support
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Because of the importance of your sales and marketing activities, getting support team members in this area will directly impact your revenue. Among your first hires should be someone to schedule appointments and help with your promotions â€“ this could be a personal assistant. Eventually, you will want to expand your sales efforts and have other people getting appointments and closing sales. These roles can be incentivized based on their performance or even completely commission-based â€“ it means nothing out of your pocket to get them started, they get paid when they bring in money. Marketing professionals can be paid based on the number of confirmed leads generated for your business. Appointment setters can be paid based on the number of appointments they set. If a salesperson is commission only, they should receive a percentage of the overall revenue they generate. All of these are ways to decrease your initial overhead while increasing these areas of your business. Accounting/Tax Specialist Although this area fits hand in hand with your bookkeeper, it is a distinct and important specialist who will help you in this area. As you earn more money, you will need to understand how to maximize areas such as corporate structure and expenses. A good accountant team member can guide you through this process and get all the records organized. Proper corporate structure is a key way of keeping more of your money and dealing with the tax laws. Itâ€™s such a big part of your growth that I have an entire program that focuses on this aspect of the Cash Machine. In some of our other programs, we spend a great deal of time discussing these advantages. When the time comes, talk with your personal coach about the available resources for your business. Technical/IT Establishing your technology, ranging from your regular in-house computers, to websites, and to CRM (customer relationship management) systems will require a specialized touch. Some of this work may come on a contract basis as you are setting up marketing processes (such as websites), but ongoing management and maintenance will be required. Having a technical team member will make sure that the technology is supporting the growth of your business rather than hindering it. Management
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Build your Cash Machine Eventually, as you implement more systems in your business, you will be able to move from personally working “in” your business to simply focusing “on” your business. You will go from being the owner and operator of the company to just being the owner, allowing your team operate the business for you. This means that you will require a management team that can handle the day-today aspects of your business while you are focused on expanding and generating new revenue opportunities. Before bringing on new members of a team, it is crucial for you to scope out what work that new team member will take on. Although this does not need to be as specific as a complete job description, at least a basic list of tasks is required. The way in which you grow your team and build your business will be determined by the type of Cash Machine you have. Since there are so many different types of businesses, it can be challenging to know who to add to your team and when. That’s why you have a personal coach. Your best asset for moving your Cash Machine forward is your personal coach. They are the first member of your team, so use them. They will take all the work you have already done and fill in the blanks that are specific to your Cash Machine. If you have not already, call my office 888-XXX-XXXX and see if you qualify to work with one of my coaching staff – it’s the best thing you can do to get your Cash Machine from the idea stage to the money-making stage. Leading Your Team Simply building a team is not enough to make a successful business. You also have to effectively lead them in reaching your business goals. Whether you have one person working with you, or a team of 100, how you lead, inspire, and incentivize your team will mean the difference between success and failure. Everyone has a different leadership style and different methods for trying to get what we want. Some people are direct and to-the-point, they don’t add unnecessary explanations – they see something needs to be done and they mobilize the troops to do it; other people are much more engaging, they explain the logic and engage in a discussion about the project at hand – they want everyone to agree that this is the correct course of action and feel good about doing it; and there are many in between. There is no right or wrong way to lead. The true measurement of success is in the results. Happy team members, happy customers, and a happy owner means great leadership – anything else is not acceptable.
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Understanding your leadership qualities is vital in this process because you want to know your strengths and weaknesses. The personalities on your team must complement your abilities as much as possible. If you are a direct and to-thepoint kind of leader, then you want people on your team who respond well to that; if you’re more prone to discussion and “group think” then you want people who will work well in that environment. However, a big mistake you can make when selecting team members is picking people with the exact same professional and personal qualities as you. You will want your teammates to have the same values, but not necessarily the same personality. As a result, your team will often be vital in helping you explore and capitalize on new opportunities. For example, if you are not a “sales brain,” you’ll want your teammates to have more of that skill set. Over time, it will be up to you as a leader to determine which activities constitute the highest and best use of your time. However, regardless of your skills, these should ALWAYS include at least some sales and marketing activities. Every single person who starts a Cash Machine ultimately needs a team. The most successful visionaries are also great leaders, and great leaders inspire their team to be great. In the end, money follows effective leadership. You will constantly be perfecting areas of leadership – capitalizing on your strengths and building up your weaker areas. You might have never led a team or managed a project, so you will be learning this all from scratch. You may need to develop skills in areas where you have been weak in the past. Evaluating your leadership skills is just as important as evaluating the team itself. Most companies perform regular employee evaluations to see how everyone is growing in the business, and you need to do the same for yourself. Complete a leadership evaluation every three months and see how you are advancing. You expect your team members to grow and excel, so you should too. ACTION STEP: Determining Your Leadership Qualities Even if you have never thought of yourself as a leader, you have leadership skills. Some may be strong, some may be weak, and some you may never even considered. This exercise is your opportunity to take a look at your leadership skills. Let’s begin by looking at the following areas. You are rating your proficiency at each of the tasks. Rate yourself on a scale of 1-10, 1 being low and 10 being high or the best.. Leadership Area
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Recruiting Training General Organization Delegating Tasks Project Management Creating Timelines Meeting Deadlines Leading Meetings Bookkeeping Accounting Technical Skills Offline Marketing Skills Online Marketing Skills Making Sales/Deals Motivating and Inspiring Yourself Motivating and Inspiring Others Managing Conflict Providing Leadership Vision Customer Service Product or Service Fulfillment How long did it take you to complete this Action Step? What I find among my coaching clients is that many people either overestimate or underestimate their abilities in certain areas.
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Build your Cash Machine Take a moment to review the Action Step again. How thoroughly did you think each area through? How you complete the Action Step above is actually just as important as the answers themselves! Which areas did you identify that you need to work on? What steps can you take to improve your skills? If you’re not sure, or you’d like to get another perspective, find someone who knows you well (a friend, family member, or co-worker) and ask them to rate you based on their experience of you. You may be surprised to see that you underestimated, or overestimated your abilities. If there is a big discrepancy, be willing to ask some questions and find out why they rated you the way they did. This is not an opportunity to get defensive or confrontational; it’s simply their experience of you. Learn from the information you get and be willing to make some changes. Ultimately you want to get a 10 in all of these areas, so until you do, this is all a learning and growing process. In which area is your leadership the strongest?
In which area is your leadership the weakest?
You might choose to begin your business with a partner or a family member. In the event that both of you are running the business together, you should both complete the Action Step above to identify the gaps that will be filled by team. Building a Business Team Your leadership qualities and strengths will be the first step in adding the first teammate to your business. Although you’ll be adding home support first, you should always maintain a vision of how your business will grow in the future. This means that you should always be thinking of your next teammate. ACTION STEP: Identifying Your First Teammate What is the next area of your Cash Machine you need a team member to support your growth?
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Build your Cash Machine What is the role or title of the person who will fill this role?
Make a list of 3 people you know who may be able to fill that role. Person #1: _______________________________________________________ Person #2: _______________________________________________________ Person #3: _______________________________________________________
Should I have family on my team? If you plan to make money with your spouse or a partner, ask that person to list his or her skills too. It can be very fulfilling to enroll others to partner with you. Often times, it seems that family is a great resource for building your Cash Machine and maximizing your team, but that is not always the case. Just because they are available, doesn’t mean they are a good fit. Be careful to team up only with others who share your positive, can-do attitude. If a friend or spouse tends to be negative, then he or she is not going to keep you excited every day. You want to work with someone who is going to add, not subtract, from the experience – you want to be surrounded by people who are committed to the success of your Cash Machine and motivate you to be successful. For this reason, you may not want to include your parents or relatives in this process. You may find that some of the negative attitudes you have about money may have come from your parents – and your siblings have the same hang ups. They’re not to blame. They are only perpetuating the same fears and myths they learned from their parents. Family members, even well-meaning ones, often want to keep you locked into your historical roles, because that is how they’ve always related to you. They want you to stay the person they’re used to, the person with whom they’re comfortable. Check in with yourself and decide how much to involve relatives to help with your cash machine before beginning to invite them to participate. It's okay to start slow and test the waters. Let them prove themselves before you give them additional responsibilities. When you turn to family for advice and counsel on money matters, you often receive the same information you have already incorporated into your life and
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Build your Cash Machine that hasn’t been working for you. So, be careful who you ask for advice and always put it in perspective. I have a rule; only ask for business advice from people who are considerably more successful than you. It’s this concept that made me create my personal coaching program in the first place. I had too many clients who had no place to turn for real world business advice. So I gathered a group of extremely successful business leaders and asked them to mentor my clients; and the rest is history. You may be facing a lot of fears financially, but you are not in it alone. Talk to the successful people who have gone through the same types of issues and ask them for their advice – call your mentor. Talking about your financial fears will help you get it off your chest. In the process, you will become a new person liberated from your fears. You’re not looking for a bunch of yes-men and yes-women, but you also don’t want a bunch of no-men and no-women. You want to receive constructive feedback and support throughout this process for advice and insight. You need people you can consistently turn to who can give you informed feedback and useful insights. Should You Involve Your Friends? Friends may be great at encouraging you as well as offering a shoulder to cry on. But, what about actually making money together? Your friends can be a part of your team. Just be aware that some business relationships go bad, so be careful whenever you ask a friend to join your team. Most of the time, we embody both the best and worst of our friends. When looking around you, ask yourself a few questions about the people you associate with the most. When getting these answers, you will likely start to notice a pattern. It’s likely that your friends are in very similar situations to you. They have similar jobs, comparable living arrangements, and the same struggles. It’s also likely that you spend most of your time sharing your experiences about the same issues. These activities could be either a good or a bad thing depending on the context of your conversations. Do you find that you spend most of your time complaining about your current situation or talking about ways that you could improve your life? Do you walk away from these conversations feeling energized, or feeling tired and drained? All of this will give you a clue as to the potential success of a partnership.
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How do you approach the conversation? It’s probably simpler than you think. Say you’re building a business over the summer, and people ask what you’ve been doing. You’re going to say: “I’m building a Cash Machine this summer. I’m very busy and I’m focused on building a business that is going to make me a minimum of $50,000.” If their response is encouraging, tell them more about your plans. If not, you’ll have to start making hard decisions about your time. As we’ve stated repeatedly, your time is the most important resource you have to offer. Life is short. You are building this Cash Machine and you get to choose who to work with. You get to choose who will play on your team. Building a Cash Machine is challenging enough without being attacked by naysayers or having your time eaten by distractions in the form of friends. You need people who will offer solutions and help you build momentum. If you’re friend fits the bill, then welcome them aboard. But remember, even if this is your BEST friend in the whole world and you trust them implicitly, you will still put this relationship in writing and clearly define the expectations for this team member, just like you would for anyone else. Friendship is no reason to put aside good business practices. If you’re friend is not willing to sign an agreement, then it’s best to keep them as a friend then risk complications down the road that could cost the friendship and the business. Upgrading Changing Your Life Part of your success will come from simply changing your life and the way you think about success. The fact of the matter is, if you were not standing in your own way, you’d already be the success you dream about. It’s interesting to note that most people who do not reach their goals actually sabotage their own success. And they did it for years! Sure, everyone talks about getting a better job, buying a nicer car, and having a fancy coffee every morning. In the end, many people simply choose to repeat their old behaviors and are never able to make their dreams come true. They keep doing the same thing day after day and expect a different result. It’s crazy, but true. Rather than making the changes in their life that would create the success they’re craving, they make excuses – always placing blame on other people for the state of their life. They have many reasons why they aren’t financially successful but it doesn’t stop them from wanting to be more successful. Even worse, most of them go into serious debt in the process by trying to gain that lifestyle without having the income. The sad part of this cycle is that they go
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Build your Cash Machine into debt so they appear to be successful – buying things they can’t afford just so people will see them and assume they’re successful. The truth is, these people could actually have this lifestyle without getting into debt – it just takes a few extra dollars here and there. That’s what this first Cash Machine is all about. Most people who are in debt are there simply because they don’t know how to create cash. This line is thinner than you think – most people are only missing an additional $500-$1,000 per month to fill that gap. That breaks down to $25 per day. For most of you, that’s only one sale per day. You’ve made an important decision by coming this far in the workbook and you will make many more as you build your business. Becoming an entrepreneur will allow you to upgrade your lifestyle and live life on your own terms. However, along the way, I guarantee that you will need to make unpleasant changes in how you’ve been living your life. Sometimes, the people around you just won’t come along for the ride and they may become distant memories as you move forward. Imagine for a moment you’re an Olympic runner. You’re running the race of your lifetime and everyone is passing you. It’s confusing at first because you know that you’re an incredible athlete with the ability to break world records, but everyone is passing you. You look down, to your horror, and see that you’re wearing a weight vest that’s adding an extra 50 lbs to the weight supported by your legs. Building this Cash Machine is going to feel a lot like that. You may wake up one morning and realize that habits you have, or relationships you’ve carried for years are now weighing you down. Friends you used to spend all your free time with are now standing in your way. This conversation is about addition through subtraction. Over time, you must eliminate as much of the negativity from your life as possible. This could include friends and even family members who consistently drag you down. The time will come where you have to throw off that weight vest and kick it into high gear; these friends and family can run along with you or fade into the distance. This time needs to be spent doing the things that keep you focused and energized. Reclaiming your time back from friends or family doesn’t have to be a messy process full of fighting or arguing. Most people have routines with their friends – heading out for dinner on a Friday night, going to the movies on a Saturday, or just chatting on the phone after work. If you need to reclaim that time for your Cash Machine, simply become unavailable at those times for legitimate reasons. It’s time to put your success and your Cash Machine first. You are going to master your schedule and put your business priorities on the front burner. When all your work is done, you can
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Build your Cash Machine divide the remaining time among the friends and family that support your effort and let the rest of the world find something else to do with their time. We all need friendship and support, especially when we are reaching out into something new. If you have never had this type of support, it’s time to find it. If your friends or family have never stepped up for you in this way, demand it! You deserve it! Being an entrepreneur isn’t just a choice, it’s a lifestyle. You get to live your life how you want, where you want, and do things when you want. Most of us people are trained to work a steady 9 to 5 corporate job and being paid what someone else thinks you’re worth. These two ideas don’t mesh at all. That’s no way to live your life. To be successful in all areas of your life, you need to grow your network. You need to surround yourself other success-oriented people – they will inspire and fuel your passion. These people are everywhere, but it is up to you to find them. One of the best places to find the right people is at seminars. People who attend seminars understand the value of investing their time to improve their skills, learn new ideas and develop relationships. They understand that people help people and success inspires success. They know that they will become more successful if they surround themselves with other people who are successful. It is just as important that you understand this balance and give back to others. Everything in your life will change as a result of this simple decision. How Do I Involve My Children? One of the untapped resources you have at hand is your children. For thousands of years, parents have turned to children to give a hand and help in the family business. Today, many parents exclude children in an effort to protect them from the “real world.” Is that really unfair to their children? Wouldn't they be better served in later years by learning from their parents and developing skills and building relationships that could help them as they grow up? Business skills do that. Unfortunately, our educational system provides no guidance for children in these areas. There are few quality programs available even for adults! How else will your children gain experience in this area and learn the financial skills they need to be successful if you don’t teach them? In my experience, children have a natural desire to start new business ventures. Why do they enjoy this so much? It’s simple – children do not have the same hang ups about sales and marketing that adults have. Most kids understand that they are providing something valuable when selling lemonade on a hot day or helping shovel snow for a neighbor.
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The stigma around teaching our children comes mostly from adults who believe that money is evil and the people that have it are somehow bad. By teaching these negative ideas to children, they are simply maintaining the cycle and breaking our natural desire to provide service to others. My children are involved in virtually every aspect of my Cash Machine, as well as maintaining several of their own. Encourage your children to look for opportunities to make money. This is a lifelong skill that will instill a sense of accomplishment and reduce the sense of entitlement. You have a unique opportunity to raise money-savvy kids. Teach them how to earn money, as well as how to save and invest it. Let them experience the principle of compounding. Teach them how to invest in mutual funds and stocks. Show them how to hunt for a real estate property. These are valuable lessons with lifelong implications that will put them miles ahead of other children. Do not be afraid to make your children a part of your team. Allow them to take on tasks and even projects. Let them interact with customers. Have them work with other members of your team. They will thank you, one day in the distant future, and likely even sooner. As you would with any other team member, write out the job expectations for your children and have them sign an agreement. This is the first step to creating an accountability relationship, and makes it easier to correct any behavior that doesnâ€™t fit with your business model should the need arise. The Evolution of Your Business When you start building your cash machine, you will wear a lot of hats. You will be responsible for everything that needs to get done. To answer this challenge, you will need to maintain focus on your long-term business vision. Your team will eventually take many of these roles from you and help you grow. Even when you add your first team members, they must understand the importance of your overall vision. Often times, your first teammates must be among the most flexible, as they will likely be a part of almost all of your business activities and will likely wear multiple hats too. These roles will change over time as you identify specialties and skill sets among your teammates. Your team will also be valuable in providing you with a different view of how the business could expand. Just as you will evolve, your team will evolve so itâ€™s important to be flexible. Donâ€™t allow yourself to get into a rut and ignore the emerging skills from your team. You may find that someone you never expected is the perfect sales or marketing
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Build your Cash Machine asset- just the person you need to expand your vision. Move that person into that position and find someone else to fill their old job. Getting the right people doing the right job is critical to your success, so always pay attention to the evolution of your team and maximize the resources you have. Finding Working with an Experienced Mentor Now that you’ve looked into all of the resources you currently have around you, it’s time to start looking into your community. In the early stages of your business, most of the resources you need aren’t very far from your neighborhood. You are the most likely to find team, support, and mentorship within your local area. The first thing you need to find is your local business groups or associations. Every single community has some form of association, such as a Chamber of Commerce, that exists entirely for the function of being a resource to business owners. You will typically find representatives from these communities at local events, or you can search for them online. The goal is to find a structured program that brings a group together to network and develop relationships. Specifically, your goal will be to learn more about other local businesses and what has been successful for them in the past. Although you will do a lot of listening and learning, you must also be prepared to share your product or service at all times. At every point in your business, there will be new challenges that you have not experienced before. The demands of your market are always changing and become more demanding as your company grows from generating its first hundred dollars to its first thousand and so on. There are two ways to deal with these issues. You can go it alone and learn through a painful series of mistakes that could repeatedly set you back. Or, you can find another business owner or colleague who has overcome these challenges in the past and learn from them. A qualified mentor is someone that has their “feet in the streets” on a daily basis. They have built successful teams, led projects, and created sustainable businesses. Your mentor should always be at a level slightly higher than you. If you are making $500 a month, you need to find a mentor making $1,000 a month or more to take you to that next level. Once you have achieved your goal, you will need to find a mentor at the $5,000 a month level. Successful entrepreneurs will have role models for life. You must always be prepared to do new things and expand into fresh challenges.
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In over twenty years of doing business, I have never been without a mentor. Typically, I work with two or three at any given time. Without them, I would never be where I am today! *Structuring your Cash Machine Tracking your Results How do you know if you're successful? You need to set goals and track your results. In the end, you have the power to achieve all of your goals. How quickly can you build your Cash Machine? It depends on your level of commitment. It depends on how deeply you learn the principles in this workbook. It depends on whether you seek out coaches and mentors to help you move to the next level in your business. What will your life be like 6 months from now? A year from now? I'm going to take an educated guess that a year from now, you'll be happy you started today! You will have more cash in your pocket and you will be building an asset that will continue to grow. That's exciting, isn't it? I encourage you to stay in the conversation about cash. We are here to help you every step of the way! What can you do to improve your business once you are earning money? You need to monitor and track your results for historical trends. If you don't track it, you will never control it. Whatever you focus on, you will start to see an improvement in that area. You need to identify metrics to track. A metric is a standard of measurement. What are the most important things to know about your business? The number of new leads you get each month? The number of referrals? The number of new customers? The average sales amount? How many calls you make? How many appointments you set? You have the opportunity to identify what is most important to you. And you can change what you track over time. But, there is value in being consistent about what you track so you can look at historical trends over time. If you don't feel like you have enough time to track the information, then delegate the task to your team. Spreadsheets are a great tool for compiling simple reports. It's easy to track results weekly or monthly and then compare results over time. Be sure to list both your goals and the actual results for each period. This is one of the best ways to measure your results to make sure you are on track.
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Identify what you want to track: Metric #1: ______________________________________________ How often do you want to track? ________________________________________ How will you measure it? _______________________________________________ Metric #2: ______________________________________________ How often do you want to track? ________________________________________ How will you measure it? _______________________________________________ Metric #3: ______________________________________________ How often do you want to track? ________________________________________ How will you measure it? _______________________________________________
Expanding your Product Line You can increase your revenue by adding more products and services to your core business. I call these additive products. You are adding to your product line. You should have a strategy to add new products and services over time. It is very likely your competitors will. Don't fall behind. Stay ahead of the crowd. It's a dog eat dog world. Only the strongest will survive. You need to stay at the top of your game to continue to grow your Cash Machine. Start thinking now about what other kinds of products and services you can add to increase your revenue. If you select a service, think of how you can leverage someone else's time to offer the service. If you determine you want to create a new product, how quickly can you create it and start earning revenue? You can pre-sell a product in advance, just be sure to fulfill on those orders as promised. You can create a portion of the product and launch it early. Be creative. Always look for the fastest path to cash.
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Here are some examples: Business Event Planner
Core product or service Public and Private Events
daily chore and errand service
Social Media/Web Marketing
getting your business online
Additive Products promo items, photography of event- momentos – video service – travel services – outside entertainment Lawn care, home maintenance – transportation – pet care – senior social activities, Pick up groceries, dry cleaning, stamps Copy writing, sponsorship – online videos – stock photos – online merchanting – database management
Financial Baseline How much money do you need to earn to make your life work? It's hard to answer that question without knowing where you are today. Take a look at how much is coming in and how much is going out each month. I call it your Financial Baseline. This is where you are financially right now. It's an overview of your current financial situation. You need to look at your assets, liabilities, income and expenses. This is your net worth. You need to be honest and list your current reality so you have a true starting point. One of the most important rules of finance in the Wealth Cycles is "thou shalt not commingle." Do not commingle personal and business funds. You need separate bank accounts and separate books. Don't violate this rule! When you start your Cash Machine, many of your personal expenses will become business expenses. This can create a tax savings for you. So, evaluate your personal expenses and see if there is a business use. Consult your CPA for advice. You also need to look at your Profit and Loss Statement (P&L) frequently. You want to see where you are achieving and where you are failing. Likewise, look at
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Build your Cash Machine your cash flow weekly or even daily. Whatever you track, you will give focus to it and see an improvement. Freedom Day Most people will never experience true financial freedom in their lives because they are stuck on a perpetual treadmill. They are like hamsters running around and around in a circle but getting nowhere. I don't know about you, but I don't want to be a hamster. I want to live powerfully. I want to play a big game. How about you? So, what's stopping you? Are you ready to create true financial freedom in your life? It's time to plan your Financial Freedom Day! The amount of cash, revenue and assets that you need to be financially free or financially self-sufficient is what I call your Freedom Day. Your Freedom Day includes your goals and objectives financially in the coming months and years and accelerating into the future. You need to determine how much in assets you need to acquire to generate the amount of passive income you need per month to live on. Have you taken time to figure that out? If not, then you have some homework to do. If not now, when? Gap Analysis The Gap Analysis is where we look at the difference between where you are now, your Financial Baseline, and where you want to be, your Freedom Day. By looking at this difference, we can chart a plan for getting to where you want to be. To determine your Gap Analysis, ask yourself the following eight questions. Some will find some of the answers by looking at your Financial Baseline and Freedom Day. ACTION STEP: Take time to answer the following questions and be accurate: What is your monthly pre-tax income? What are your monthly expenditures? What are your assets? What are your liabilities? What other assets do you have? What do you want? What are the skills you use to make money? Are you willing to create and execute a plan for wealth
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I encourage you to read my book The Millionaire Maker's Guide to Wealth Cycle Investing for a more detailed explanation of Financial Baseline, Freedom Day and Gap Analysis. In fact, there's an entire chapter devoted to Assets in the Gap Analysis. Business Licenses At some point in the process, you will need to obtain a business license. You can visit your local city or county office for more details on how to get a business license. You should be able to find details on their website. There is usually a fee and you will probably also have to get a fictitious business statement. Usually, you need to have the fictitious name for your business published multiple times in a local newspaper, business journal or other publication. To complete the paperwork, you will need to know how your business entity is structured. Structures and Systems In order to do business, you will need to establish a business entity. You will need to determine whether to run your business as a sole proprietorship, CCorporation, S-Corporation, LLC or other type of entity. Entities are legal structures, such as partnerships and corporations, that help to protect you and your business. The purpose of an entity is to take advantage of the government's intention to support entrepreneurship. There are dozens and dozens of tax incentives for certain legal entities. Yet many business owners don't take advantage of these opportunities. You will find more information in my books, The Millionaire Maker and The Millionaire Maker's Guide to Wealth Cycle Investing. You must set up an entity for each of your Cash Machines so you can retain more income and feed your Wealth Cycle. Just as entities are important, so are systems. You need to establish systems to help run your business. You will need an accounting system. You need marketing and sales systems, including a customer database. You need information technology systems. Ask mentors, coaches, colleagues, and friends for advice on what systems to select. Look for people that have strong technology skills.
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Build your Cash Machine Case Study #1 Update: Jennifer and Todd H. Jennifer and Todd knew exactly where they stood, which is why they ended up starting their senior concierge business in the first place. They had spent years helping build their bosses business and this Gap Analysis was just what they needed to validate what they already knew and actually build a plan around it. Case Study #3 Update: Samantha W. For Samantha you can see how this may have not been a fun activity. It’s hard to know where you are going when you don’t even know where you are to begin with. But once that financial baseline was set, she became very clear about where she did not want to end up and became excited at being able to calculate what she needed using this simple spreadsheet. Case Study #4 Update: Joe O. Joe O’Conner was shocked that his Business Administration degree had not given him all of the financial skills he needed to be successful. The financial calculations not only helped him launch his business but also allowed him to build a future portfolio that would allow him to prepare financially to get married and have children. Congratulations on Building your Cash Machine Congratulations! You made it to the end of the workbook. You are well on your way to building your Cash Machine. I'm proud of you! And I look forward to working with you in the future. Be sure to refer back to this workbook as you build your Cash Machine. There may be certain steps along the way that didn't make sense as you went through. As you become a savvy entrepreneur, you will understand this material at a deeper level. Explore all of the resources in this workbook. Do the exercises. Refer back often. Join our community and be an active participant. I want to hear about your successes and I also want you to encourage others to take the journey to build their Cash Machine. We need more entrepreneurs in this world with a can do attitude who can get things done. Ready, go! Section Recap: Here are the major ideas covered in Section 5:
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Build your Cash Machine • • • • • • • •
Planning for success Building a team Finding people to help you Leading your team The sequence of spending Financial baseline Freedom day Gap Analysis
Now that you have completed the workbook, I recommend you start over and read it again. Repetition will help you learn and master the concepts in this workbook.
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Building Your Cash Machine: Workbook