Want to turbocharge your business growth? Here’s a thought that might be new to you. That pride you take in “Word of Mouth” referrals? It’s actually holding you back from serious growth.
If you’re dreaming of growing your business at breakneck speed – not just a quick dash, but like a $12 million Formula One car zooming at 218 mph – it’s totally doable.
Especially if you run a local service business and you’re eyeing becoming a big franchise or a chain, listen up.
I’m here to guide you on exactly what you need to kick your business growth into high gear.
Why should you listen to me? I’ve taken multiple businesses to that coveted million in revenue in their first year. And guess what? It wasn’t by leaning on word of mouth alone.
Today, let’s tackle a big issue that’s been dragging your business down. I like to call it the “Word of Mouth Disease”.
The Word of Mouth Disease
Thinking you can ride the ‘word of mouth’ wave all the way to the top? That’s not a badge of honor, it’s a ball and chain.
Proud of never spending a dime on ads? That pride’s costing you more than you think. It’s a big world out there, and thinking small, thinking ‘advertising is for suckers,’ is keeping your business from playing in the big leagues.
You’re idolizing the tortoise when you could be harnessing the hare. Let’s break those chains. Time for the big reveal on how to really grow. Strap in.
It’s the Fuel in the Tank, But It’s Not the Engine
Word-of-mouth is like a side dish – nice to have but you can’t make a meal of it. Sure, it’s a warm fuzzy feeling when someone raves about your work, but if that’s your whole game plan for pulling in customers, you’re gonna get stuck.
Here you are, depending on everyone to spread the word for you. You find yourself tossing in those not-so-subtle nudges during chats – “Hey, how’s that new floor treating you?” – hoping they’ll bite and tell their friends. And even if they do drop your name, what then? You’re left hanging, waiting for a ring or a ping that may never come. That’s no way to run a business.
You need a starting line, a track, and a finish line you can see, not just hope for. Let’s get proactive and start driving your business just like you’ve been hoping for.
Money is Energy
You’ve got your safety stash of cash tucked away nice and cozy in the bank, thinking it’s your safety net. But guess what? That safety net’s got holes called inflation, and they’re eating away at your hard-earned dough.
Letting your cash laze around in a savings account is like putting your fastest runner on the bench. It’s time to get that money off the sidelines and into the game. Rich people make their cash hustle for them, investing where it counts.
And where should your top dollar be earning its keep? In your own backyard, your business. Parking your funds in a savings account won’t put you on the fast track to your goals. Let’s put your money to work right where you stand, in the business you bleed for. That’s how you play to win.
Invest in Your Business
Investing in your business, particularly in paid advertising, can bring big returns.
This strategy is effective.
More effective than traditional investments like:
- High-interest savings accounts
- Property
- Stocks
- Bonds
You know why there’s so much bad-mouthing about advertising? It’s because a whole lot of people can’t figure out how to nail it. They’re like a carpenter blaming the hammer for a crooked nail.
But get it right, and ads aren’t a cost – they’re fuel for your business.
If You’re Not on Google, You’re Invisible
It’s 2023. Not being visible on platforms like Google means you’re invisible. To a vast potential customer base you don’t exist. You have to be where your customers are looking. And a large portion look on Google and nowhere else.
“I’ll write blogs. I’ll get my traffic organically”.
That’s great and you should, but remember that blogs take 3 months to see even a blip of traffic.
They’re a long play, but awful as quick wins. Some blogs can rank in their first day, but that’s a gamble.
And let’s not ignore the big elephant in the room – Google’s tightening the screws on organic SEO. So, banking on that alone? That’s playing it too risky.
Not Running Ads is Costing You Money
Every tick-tock of the clock without ads is a dollar you might as well be tossing down the drain. Let’s break down the math of your business – the unit economics and the dollar signs behind every lead.
Let’s define these. Shall We?
Unit Economics: This is about understanding how much money a business makes or loses on each item it sells or each customer it serves. Think of it as looking at the financials on a small scale. One piece at a time.
Value of a Lead: This means figuring out how much money, on average, a potential customer (lead) is worth to the business. It’s calculated by looking at how many of these potential customers actually end up buying something and how much they spend.
Quantifying the Loss: Knowing the value of a lead helps a business understand how much money it’s losing when it misses opportunities. For instance, if each lead is worth $100, and the business misses out on 10 leads because it’s not advertising, then it’s missing out on $1,000.
So, what’s the damage for your business? Missing out on big bucks? Got your calculator ready? Let’s talk.
Growing a Business is Mathematics
Growth’s a numbers game, plain and simple.
Get cozy with the figures – like what it costs to snag a customer and how much a potential lead is worth. Once you’ve got your numbers dialed in, you can start setting some serious financial targets and map out your master plan to hit them.
Here’s a few questions to ask yourself:
- How much money do you want to make?
- How much is a customer worth?
- How many leads do you have to get for them to turn into a customer?
Now you have the goals. All you need is a strategy.
You Need a Way to Buy Customers
Investing in advertising is essentially a way to ‘buy’ customers.
The goal is to spend money to acquire customers in a way that’s profitable and sustainable for the business.
Now that you know how much a lead is worth, be willing to spend less than that to get one. If your lead is worth $4k and you spend $500 to get them, wouldn’t you say $3.5k (before cost) was a great investment?
As long as you can do this consistently, now the cost of advertising is making you money.
Think of advertising as going shopping for customers.
The whole game is to splash some cash to reel in customers, making sure each buck you spend brings back more than it went out with. That’s your profit play.
Got your lead value locked down? Now, aim to spend less than that to get one. Picture this: your lead’s worth a $4k, and you’re dropping $500 to hook them. That leaves you sitting pretty with $3.5k (minus costs) in your pocket. Sounds like a sweet deal, right?
As long as you’re pulling this off like clockwork, your ad spend is doing exactly what it’s meant to do.
Conclusion
Word-of-mouth is valuable. It’s a big part of business growth, but it shouldn’t be your only strategy. Invest in advertising and understand the math of growing your business. These steps lead to scaling and achieving the success you want.
If you read to this point, maybe you’re thinking, “this guy is pretty helpful. I like him”. If that’s you and you’d like to see how else I can help you, click on the link and send me a message. I’d be happy to help you get more customers you love to work for.
