If you're a new business owner, you're probably lost. And guess what? It's okay. Hey guys, if you're like me, you've always had a desire to do more.
And deep inside, you've known there's a way and a possibility for you to achieve your dreams, the lifestyle can achieve the freedom you've always wanted. Because we have what it takes to get things done and learn from others and get the mindset to achieve the dreams we've always wanted. Welcome to SB Warriors. Hey, what's up, SB Warriors?
You know what? I know a lot of times that we talk about advertising, we talk about how to grow through your business. And I know in that first business owner who has spent so much money, possibly even hundreds of thousands of dollars to launch their business. And when it comes to building out the retail store, or maybe you're built out your website, all these different steps that you take to build your business.
And then what happens is I notice a lot of owners go, now what? Like the doors are open. Like they're expecting it to be like, when I'll build it and they will come kind of like the field of dreams. And you know, it's like building the ark and going, okay, all right, we're waiting for the rain, we're waiting for the animals.
A lot of times, most business owners will kind of just wait or they'll spend probably about $500 to $600 a month on paper, paper flyer advertisements. I believe that there's nothing wrong with paper, but I also believe that your potential customers aren't just reaching out to get paper world to get seen by your business. So, you know, if you live in a local area, let's just talk about local businesses. And you use one of those flip side flipping guys to get a traction for your business.
Now, if you think about it from the numeric standpoint, okay, how many cars drive by that corner within a certain timeframe? Now, if you say 100 cars within an hour, so you go, okay, 100 cars within an hour are going to see my sign flipping guy. And if he's out there for four hours, I'm going to reach 400 people. Okay.
And some people, that's like, they're happy with that. They're like, great. Because if I get 1% of that, that means they're going to get four people or interested in their business, or 1% means people pay attention. Now, what is both good and bad about that is you're getting attention.
You're putting yourself out there. The bad is you're only getting that 400 people, those 400 people within that short amount of timeframe. Now, what if you can get 5,000 people? What if you can get 10,000 people?
It's all going to vary. So it really depends on you. And it depends on what method you want to go and reach people. So what I say is, yes, you should create a multiple approach to your advertising.
Until you narrow down and pin down exactly what's going to create the most effective result for your business. And what I say effective, it means if for how many dollars you spend, you know that you get X amount of dollars out. And so what that gets into is your costs per lean. So a lot of those things, don't even think about your costs to acquire costs.
And if this is too, I glossy, you know, stay with me because I got to tell you that this is very important for you to understand. When you advertise for your business, if you spend $1,000 a month, out of that $1,000, you should have an idea about how many customers you're going to get. So if you break it down and say, I cost me $10 per customer. OK, so you do 10 times 10 divided by 1,000, you go get that so many customers, I'm going to get it.
Now, if your cost per player customer is higher, then you just do the math. And you can figure it out. Like, OK, this is what's going to cost me to acquire this customer. So you know in a predictable state of how much money you're going to make.
Now, what most business owners will make the mistake of doing. Now, give me a perfect example. I came into a business they would have been advertising for probably about two years. And they're relatively slow.
So I go in there and the business owner is talking to me, he's like, you know what? Yeah, I do need a website. So you may laugh like someone who doesn't have a website. You'd be surprised that there were people that don't have a website.
So they didn't have a website. And I'm looking at their model, I'm like, look, you do great customer service. How come you're not utilizing other platforms? And it wasn't lack of wanting to.
It was a combination of not knowing the platforms and being a little bit intimidated by the technology. So if most business owners are kind of like hesitant to jump in, because why that means your competition most likely isn't jumping in, you'll know automatically by going to one of their social media pages to see who's actually really doubled down into utilizing social media as a means for your advertising. Now, my preference is to understand my goal was never to get a client to say, you're 100% digital. That is not my goal because I believe that each sort of advertisement has its advantage strategically, one over the other.
And what's nice about things in the real world is people can touch it, they can feel it, they can see it from a real, it's visceral. It's like, I can see this like, wow, this is really cool. Versus just being on digital. Digital has its upsides as well, where it costs less, gets more reach.
And you can follow people, you can retarget people. So you're that brand new business owner. What does that mean you should do first? First, you got to evaluate.
Hopefully you listen to Last Podcast and you understand your avatar. And you already know where they hang out. But if you've been doing it one way, you have to evaluate and slowly start to integrate and add new levels of traffic. So when I say traffic, I mean people going to your website.
Now, the biggest mistake that people will do is they'll just throw out the offer. They'll go with Groupon and they'll allow Groupon to determine how much money that person's going to get for their discount. So Groupon determines that and they guess what Groupon does. They don't allow them to capture the lead.
They just hope that the business owner can capture it when they come by. Now, if the business owner does that, they don't create leverage for their business. So if I spend, say, $100 to acquire a customer, I'm not getting as many customers because I only have $1,000 to spend hypothetically. So I'm limiting how many customers I'm going to see with that one instance.
OK, so now I'm in the spot where if I get that customer, guess what? I've got to get some data from that customer. I better get some like, hey, dude, we just we just hung out. I give you a discount.
I want something back in return. And it's not the threatening way I know I'm saying it kind of aggressive. But just if you're going to give you want to give value and you want to create a great service, whatever that product or service is, but in exchange for that discount, you're collecting the phone number and email. That's just my personal model.
And if you're not, then shame on you. Why aren't you doing that? I mean, it costs like maybe $15, $20 for an auto responder. You want to be cheap.
You can get, what's at Mailchimp for free. You can use a Gmail ad. You can use Gmail and collect the leads. Just figure out a way to collect those emails.
Collect those phone numbers because you never know when you're going to need it. Now imagine this. I help business owner bring in 1,000 people to their business over, say, two months. All right.
So business owner is happy. Now, all of a sudden Google changes their algorithm and all of a sudden their price for the ads that we're running have doubled. So now a sudden we're only bringing in $250 a month. Wow.
Okay. Only $250. But they got used to a thousand. So now what?
Well, if you're sitting or struggling, you were so hard to get those 1,000 people. That's all you have to do is engage those people. Use free tools. Well, they're not completely free, but use things like email marketing, text message marketing.
You can get on whether it's on a social platform and interacting with your clients, even picking up the phone and engaging with them, asking them, how was their service? You know, asking them how their, whatever it is, if it's a service based industry, asking how that object or thing is doing. If it's a car, if it's a carpet, you clean, if it's a paint job, you did, you know, like, hey, how are things going? And increase the dialogue, increase the feeling that that customer is going to feel.
We always get into business and we forget the biggest part of business is the human element. We are human. We want to be made to feel good. And that's one of the things I talk about all the time.
People will buy for people they like no trust. We know that. But you know what? It makes them remember you is they remember how you made them feel.
And nothing says I feel something like you feel like that person cares about you more than the communication, more than a follow up phone call or a follow up email, a follow up text message. Those are different means so that you can stay in contact with your customer. So instead of having to spend the $100 or the $10 to keep getting new customers, you can keep getting new customers, but then you'll grow exponentially by then communicating to the customers that have already been there and hopefully like your business. Now hopefully that makes sense to you guys.
You understand why it is. So that business owner, when I talked to him about customer service, it was a challenge. It was a challenge because they were not aware of some of the things that were actually occurring in their business. So one of the things we did is we added a phone call where we started monitoring what's going on because nothing's worse than the client goes, you know what?
We're not getting any business from him. Excuse me? And I'm looking at the stats. Oh, okay.
Well, you know what? We had 20 people out there here. You had about 30 phone calls here. So what do you mean you're not getting the business?
Yeah, we're not just getting customers. Oh, okay, great. Well, let's listen to some phone calls and let's see exactly what's happening with your customer. Let's see how your receptionist, the biggest gatekeeper in your business is handling a brand new person coming into your world.
And receptionist, sometimes they forget it. You know, who hasn't been on the other side of a phone line and be like, that person's a complete jerk. And you know, I'm not going to spend my money there. But yet we won't train somebody properly on the end of the phone and we'll give them seven to, you know, 12 bucks an hour and expect them to bring in hundreds of thousands of dollars.
That doesn't make sense. You can't train that person. And guess what? You're losing business.
You're losing business because you don't even know what they're saying how they're communicating to people. And most people give you know what? Like, you know, I'll give the business a little bit of it without. So if you're in, say, I think like a debt dis or chiropractor and all of a sudden, you know, you have a rude interaction with that front desk person, you know what?
You may make a statement to the doctor while you're there like, Hey, I don't know if you know this like you may. But I think 70% or more, probably 80% won't say a thing because they don't want friction. They want to avoid conflict. And rightfully so because they're spending their money there.
They don't want to deal with that. Nor should they. It's not their job to police your business. Their job is to provide great customer service because you're spending your money there.
And I think a lot of times business owners will go, they just think like, Oh, well, you know, screw them. Like, sweetie, screw them. That's your potential client. Those are your customers.
You can't say that. You have to go, you know what? Let me see what the problem is. Now, if you have an IRA customer who's being unreasonable, that's different.
But majority people just want to get their stuff taken care of and feel like you care. But how many times we've gotten people on the phone and it's just like, you know what? I don't get it. I don't feel like coming there before because you had a rude interaction.
Now, how do you solve that? It's through training. It's through understanding. Now we have customers, we've been paying for advertisement, more people are calling.
And if we have a problem, we need to identify the problem. It's very systematic. You know what? I think we want to create be creative and I'm a big advocate of it.
It's like, we don't have to be creative. We just need to systemize. We need to understand exactly how things are happening in our business so that we can get a predictable income to grow and scale our business. Too many times we'll just kind of be focused on being the lowest price leader, which serves you for a short amount of time.
But if you don't have that value ladder set up, it's not sustainable. I have no business owners that have gone, you know, we're the cheapest out there in the market. Okay, why aren't you getting business? Because people always don't want the cheapest.
You're going to grab a certain amount of attention that you get from just being cheap. But then why is anybody sending up your value ladder and spending more money as they need more service? Would that tell you something? They don't trust your business?
Really? So it's like imagine something like, hey, I'll give you a free x-ray for your team. Okay, great. Thank you for the free x-ray.
And we finally have five cavities. Okay, I'm not coming to you because I don't trust you. I don't like your customer service. I'm going to my old dentist and can I have those x-rays, please?
So it can happen. I know it's happening multiple industries and I've seen it where people just like, they'll take advantage of say it's a free massage with a chiropractor just. They'll come in there for the free massage. And then, but they won't come on a regular basis unless there's that discount, unless there's that special offer.
It's like the Groupon adage where it's like you just want the cheapest possible. And if you don't create that value in your idea customer and take them, send them up the value ladder, you're just going to be in that bracket of where you're just competing on price. And that price, just doing by price, it's a hard game. It's like it's trying to sell the most services as possible for the cheapest possible just to get a little bit of business.
And what you end up doing is you end up working for that business or for that customer where you're actually paying for paying for them to be your client. And I realized it's a long way. I was like, oh, wow, I'm doing all these things. And if I add up my hourly rate, I'm actually paying for them to be my client.
I'm losing money. I'm losing money time away from my family. My relationship with South, or I missed a soccer game because I was so focused on getting business, but I was really losing business. I'm not serving anybody.
I think coming in an employee for that business that's losing money because I'm losing time on top of that. So I'm not saying not to help people. And there's a time and a place for that, so I should be brand new. At the same time, you have to understand that it's okay to ask for the sale, ask for the sale.
And I'm not going to leave with value and help your customer solve their problem. I will go to any service that I know that person's got my back and they will take care of me. I'll pay an extra $50, $100 because I know it's done right. You have to have the same mindset when you create your advertising and knowing that you can create a special offer, but that special offer is for a limited time and makes you capture that data.
Once we capture that data, boom, it's like, now I got your phone number. You're dating again. I got that phone number. I'm going to text them.
I'm going to call them. You're in a relationship. Right? Because if you don't, they're going to think you're not interested.
Or they think something's wrong with them. They're like, oh, what's wrong with me? And it all becomes a weird psychological game. But most customers, they're not going to do that.
They're not thinking about dating. They're thinking about what you can do for them. Hopefully that makes sense. Put yourself in their shoes, create a platform and advertise on a way that's going to ultimately help you bring in that customer's information so you can follow over them or decrease your overall cost or exponentially grow your business.
However you want to do it, it's up to you. Keep pushing SB Warriors. Take care. Bye bye.
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