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TUNE IN TO HEAR ABOUT
- Why you need rock solid foundations in your business before you do anything else
- The 3 core phases you need to progress through in your business to be successful
- The key numbers you need to be across in your business, right now
- Why you need to take responsibility for your numbers and how doing so will positively impact your business
- The key elements you need to be across when it comes to paid traffic, sales and conversions in your marketing strategy
Anna Jonak [00:01:23] Welcome to Episode 50 of the Raising Her Game Podcast. And, in case you hadn't noticed, yes, our podcast now has a new name. In fact, so does our business.
Flori Pyke [00:01:35] I know. I think it's also important to say there's two of us here today, because it's been a little while, hasn't it? Since we both came on!
Anna Jonak [00:01:43] I don't even know. I don't even know when. All I know is that the last few months have been a friggin haze of activity, and I don't know. It's been podcast episode here, there and everywhere, but I don't actually know when we actually did one together actually.
Flori Pyke [00:01:58] I know. It's been insane. Though to that end, yes, over the last three months we've been undergoing a major rebrand. And, in case you haven't yet checked it out, go have a bit of a squiz, because we've got a new look and feel, and a new business name for that matter. So, as of a few weeks ago Business School for Mums became The Elevatory®.
Anna Jonak [00:02:23] I feel like it needs to have fireworks or something.
Flori Pyke [00:02:25] I know. I was like phew phew. We need like... Totally. I love saying it, "The Elevatory®". It just, it even sounds sexy and sophisticated I reckon.
Anna Jonak [00:02:33] Well you know what? There are two ways of saying it apparently. I've said this before. So, we say The Elevatory® but I've heard some people say The Elevatory®. I'm like No no, it's The Elevatory®. But you know The Elevatory® still sounds pretty like I don't know, kind of Spanish or something. [both laugh]
Flori Pyke [00:02:53] Si! Oh my God. I love that. Well yeah. Well, look, the brand-new education hub, right, for rising female entrepreneurs, elevating, rising. I love it. That's what it is. [Anna says Yeah it is pretty amaze balls.] Totally. And I think you know it's important to kind of give a bit of context, to the shift so for a while now our community has been growing with a lot of female entrepreneurs from all walks of life. And, we really wanted to become more inclusive to be honest, and to support women no matter where they're at, in what stage of life, to rise together. And, this is why we decided to make this change, and it also supports our vision right to grow in stature and presence across Australia and internationally as a leading education provider for women in business. So, it's pretty exciting.
Anna Jonak [00:03:47] It does indeed. And look, we'll certainly, I think probably dedicate an episode down the track to talk more about the rebrand, and step you through the process. I think it's a really, it's been as you said a hive of activity for the last three months, and talking about what you need to do to drive a successful rebrand, all the things you need to consider. I mean, it was an operation that took months and months, and to be fair, we did it on speed as well. We're pretty fast and furious over here, and when we make decisions, we make things happen but there is an extraordinary amount to consider. Had you seen the spreadsheet that we created? It's like to facilitate this change, the ginormous number of things that needed to be addressed one by one. Oh my gosh. Anyway, but we will definitely come back and talk to you about it from an orchestration point of view but also from a deeper understanding of you know that why and that kind of vision that we are growing towards with regards to working with women more broadly. So, where are we going to go today though? And that is the question. What are we going to focus on? And, now that we're together and as part of our rebrand and big relaunch strategy, we launched with a three-day business growth mini course, and to be honest it was pretty goddamn good . It was pretty epic.
Flori Pyke [00:05:01] Yeah. It was so much in there; it was on fire.
Anna Jonak [00:05:05] Oh my God. Yes. There was so much in there. I think there was a lot of hashtag mindblown moments and aha moments for a lot of people on that mini course. But, we appreciate that not everybody has the time to dedicate three days, or you know they sign up for these things and they don't have the chance to get through everything. So, we kind of thought that what we do is we do a bit of a recap, of some of the key lessons and learnings that came out across those three days so that you guys can I guess dive in on speed as we work so you can learn quite a bit quite quickly based on what we taught you in those three days in this 40 minute session. [Flori agrees] So, I think we're going to hone in on the three key areas that we took everybody through in our mini course which were your business growth fundamentals, your financial strategy, and revenue generation, and traffic sales and conversions because all of these things ultimately play a pretty big role in helping you to define gaps and opportunities to help you drive your business to the next level. We know that there are many people who came on our mini course who walked away with lots of insights and steps to take some you know to take their business forward.
Flori Pyke [00:06:11] Definitely. And I love that we're recapping on some of this because there was a lot in there. And I think that even if you did plug into the mini course you know, repetition is how you create mastery. And, I think that there was so much in there that recapping on some of these fundamental insights, and lessons that we taught will add layers to the knowledge that you gained, because it will, it is that repetition you know, that's so fundamental. So, shall we dive into it?
Anna Jonak [00:06:37] Yeah let's do it. Part 1.
YOUR BUSINESS GROWTH FUNDAMENTALS
Flori Pyke [00:06:39] Let's do it. OK. So Part 1 is all around your business growth fundamentals. Now look, at the core of building a successful business, you really need to move through three core phases. And, I think it's also important to caveat, that this is really what our Academy program is built on, and for good reason. So, the first one that you need to really have is what we call Build. And, this is about fundamentally building out your business the right way. So, laying out those strong business foundations. And, as I said in the mini course you know, this is really about literally like visualise it as a house, . Like you can't go and put the ceiling and the windows in without having those fundamental foundations in the ground first. And, also you know, your house, your business is going to endure some serious storms.
Anna Jonak [00:07:32] Oh yeah. Yeah it is. Get ready. [both laugh]
Flori Pyke [00:07:35] Tornadoes! Tsunamis! OK. You guys, you name it. And so, you really need those strong foundations, and this is where Build comes in. And, you know what the interesting part of this is though that most people they actually miss putting these foundations in place. They miss building the house from the ground up because they just want to get up and running, . But, it's really here that you need to ensure that your business model is viable and feasible, and that here you're laying down your overarching marketing strategy so that you can lay the path forward and that overarching marketing strategy is really about creating a long term forward looking approach to achieving a sustainable competitive advantage. So, yes Build, very important.
Anna Jonak [00:08:21] Very important indeed. And then it's only once you've got those solid foundations and you know that you can be competitive. You can stand out. You've got something that people want and need that really, it's time to move into Phase two, which is all about Planning because you need a plan. You can't just go out there willy nilly which again a lot of people do. There's no real strategy, and this is where it comes down to thinking about you know, what your financial goals are, what your aspirations are, where you want to take your business specifically. And, also you know the kind of key pay-off activities that are going to drive your business forward, as well as thinking about like your marketing plans like I literally just had a call with one of our mastermind students and we were talking about marketing plans like what she was going to do for the next 12 months, but more importantly honing in on what to do for the next 90 days. This is all about having a constant view on an outcome, where you're going, what you're doing what you want to achieve, and you know once you've done all of the kind of planning it's then that you get into Phase 3 which is the Execution. It's actually bringing those plans to life. It's breathing life into those goals. It's the doing. It's the fun stuff and you know it really is where you start to play with sales funnels, play with paid traffic, conversion, social media, basically everything here is about bringing your brand to the consumer and creating those sales and conversions and traffic. But most people come straight to here and worse is they come to here without a plan. So, they just start trying social media all like you know posting on social media like it's the be all and end all. And, throwing some money behind some paid posts and...
Flori Pyke [00:09:53] And then it's crickets. It's crickets, isn't it? [Anna agrees] Like the number of people, like case in point to what Anna's saying, literally I remember, because we see all the comments as we go through the live webinars on the mini course, and the number of people who were like Oh my God that's me, like I've gone straight into you know the hashtags socials. I put my website up. And now it's like no one's coming. I don't know how to make money. I don't know how to attract clients. I'm not sure what to do. And you know, exactly like most people come to this phase. But the thing is, right, that you cannot effectively even execute this phase because unless you've done those foundations, unless you know the foundations that your business is built on because if you don't know how it all fits in together, if you don't know your marketplace, you don't know your competition, how you're going to compete, how you're gonna stand out, what you need to achieve in terms of target, sales numbers, revenue, to reach those financial goals. Ladies, it is money down the drain. Putting that website up, no point, unless you really know who you're talking to, how you're going to talk to them, you know your space in the market, all this stuff is so fundamental. And, I think to that end actually, it's important to just remind, for those of you who are listening, if you haven't downloaded our Business Foundations Blueprint, we really encourage you to download it, and do a bit of a health check on these business foundations. It will literally take you through every single element, that you need to consider as part of establishing a successful business that's going to stand the test of time. And, the document steps you through our signature nine pillars to small business success. And it also includes an overview of the key questions that you should be able to answer. And the premise here is basically to ensure that your business is not only viable, but that it's going to be profitable and sustainable over the long term. So, go download that if you haven't yet and we'll include the link in the show notes for you. So you can go check that out.
Anna Jonak [00:11:55] Yeah definitely. I mean this is something that we also live and breathe in our whole business as well. These fundamentals as you know that we went through to the finalist of the Telstra Small Business Awards first round and it was because of the you know, we had all of our fundamentals down pat. We could answer all the questions about who we were talking to, how we were talking to them, how it impacted our marketing, what our marketing strategy was, and that’s it like the final point of execution, and when we get into the third thing we're going to talk about today, you'll see how it all plays into marketing strategy, and how it all ties back to fundamentals. Most of it all ties back. Now, so that's a little bit of an overview of the need to get clear in your fundamentals, because your business literally cannot grow without it, or if your business is stalled that's most probably why, so go check it out.
YOU NEED TO BE ON TOP OF YOUR NUMBERS
And, then from there, we wanted to hone in specifically on financials, because it's ahhh well I love numbers. It's not exactly a sexy thing and let's be honest, it's something that most people goddamn avoid and they don't want to look at, but oh my God. Your financial strategy, revenue generation, is frigging humongous and something you need to be all over. Your pricing strategy and your overall approach to driving revenue, like the goals that you want to set, all of this stuff helps you to ensure your business is profitable and able to grow. And, also you can literally be making small changes right now that would have an enormous impact to your bottom line, both now and into the future. It's amazing that when you get your head into this stuff and start to really understand what your numbers represent, and how to read them, and where you can make tweaks the impact it can have on things. So, we thought we kind of dive in and share a few things with you first up. And, the first is and we'll definitely be hammering this home in a minute is that we really want you to take responsibility for your numbers first up. Being all over them, al. All of the time. You need to be all over your numbers all over the time and you need to be understanding the basic fundamentals. The number of people that avoid this or the number of people that tell me their partner, or their husband does this side of stuff. Brilliant if someone else does it or you've got a bookkeeper, you still got to understand it. You still got to know what the numbers mean, because those numbers carry insights. They carry strategy. They carry all of the stuff that will take your business forward. So, fundamentals you need to know are things like startup costs, when you're starting out to your break-even point, when you're in the green, to being aware and tracking all of your income, sales coming in, and all of the expenses that it costs you to run your business. And for product base business, it's a huge thing, whether you're reselling like you're an e-commerce you know selling base business or you've manufactured and reselling, is you need to be across your cost of goods sold like what it costs you to get your product ready for sale. And, a lot of people here like Flori, and we've had many conversations in our mastermind as well with people is people do not focus in on their margins here. They don't have clarity around their margin.
Flori Pyke [00:14:46] They just don't know it often.
Anna Jonak [00:14:49] They don't know their margin.
Flori Pyke [00:14:50] Which is fascinating.
Anna Jonak [00:14:51] It's incredible. Or people get fixated on their markup, like the markup might often look like a great number. But if it doesn't translate into a good profit margin that's not good. So, your focus really should be on your margins because that's the actual percentage of what you make from your sale. And, then there’s cash flow and profit and loss that you need to be across in. Again, these two get quite confused, but the profit and loss basically it's like a snapshot in time of how your business is performing. It's not what's actually going on in real time and really you should know what's going on in real time which is why your cash flow is important. So, anyway, these are just a few things that you need to be across, you know at the start and...
Flori Pyke [00:15:32] Yeah. Well, and I think it really speaks to the fact that not only is this stuff fundamental, but I think some key questions that we want to ask you as listeners to you know, as food for thought here when it comes to being all over your numbers is you know how do you actually think you can grow your business effectively, if you're not all over your numbers, . Or how do you know what's really going on? Or how do you know what potential there is when whether you're actually making money and how can you make the right decisions, because you know it's not going to work otherwise, and I think you know we ran through this in the mini course, and I think is important to caveat and recap on here is that 60 percent of small businesses fail, right. And, I can hazard a guess that those 60 percent are not all over their numbers. They do not have financial targets. They are not using numbers as data to drive smart decision making. And, they need to be across this stuff. I mean, this is fundamentally like your numbers are going to make or break your business. It's going to determine whether your business is viable or not fundamentally.
Anna Jonak [00:16:33] Totally. And, it's something you cannot put your head in the sand about. And, I think that taking this one step further on like a mindset perspective and really taking responsibility, as I said first off is that you know what are you actually saying to the world when you don't address your numbers about your business. Like are you actually taking it seriously? Like how are you treating your business? You can't be taking it seriously if you're not over this fundamental thing. And, likewise a lot of you have families or partners supporting you in this journey, and you know what kind of respect are you showing them, by you know the time and money going into the business, if you don't even know what's going on like you know. I guess, it's a wakeup call we want to deliver to you right now. And, you know if you really want this, you really want to grow a business that's successful, you need to be committed. You need to be taking responsibility for your results. And it means you need to be all of your numbers. And honest to gosh, we won't take you seriously as a business owner, nor should you be taking yourself seriously if you're not over this one key thing.
Flori Pyke [00:17:30] Yeah yeah. No, I really agree. I also think it's important to caveat. I mean this is definitely stuff that, this is great food for thought for all of you who are listening, but it's certainly a lot of stuff that we help you with within the program as well, because yeah fundamentally if the business isn't viable from a financial standpoint, we need to address that, . Because we don't want you to fall into that statistic into that pool of the 60 percent of small businesses who fail. So, just a few key focal points for growth here. When it comes to your numbers. number one; is really ensuring that you have a strong price point. Which is consistent with the value that you're delivering, as well as your brand position. And by brand position you know, that's a space that you're occupying in the marketplace relative to your competitors. Your price point obviously also needs to enable that you have a healthy enough profit margin, and that you're making a good enough net profit. So, yeah I think a lot of people come unstuck with this, when it comes to that price point. They kind of tend to lowball their price, and then that leads to bad margins. And, you know especially for anyone of you who are listening, who are product sellers, e-commerce sellers, like often time you have to sell so many products to hit financial targets. So, you need to be really conscious of this stuff. You can't lowball too much. Your margins cannot be that tight otherwise you're gonna be having to push some serious volume. And, unless you have a strategy to enable you to do that, this is stuff you've really got to be across. And, another thing that we see a lot happening a lot actually among students, and masterminders when they come to us, as you know over promising with different free shipping incentives, and what not discounts. Just be conscious of that stuff, because that really does eat into you know at the end of the day the dollar amount that you get to put in your back pocket.
Anna Jonak [00:19:24] Totally. Like I think a really good example for me is when we have as you said we have spreadsheets that we take students through, and we get them to plot their numbers, and set goals, and we work through them and make sure that things are adding up. But, a really good way to look at it is that if you want to say you're making ten thousand dollars’ worth of sales a month, if your profit margins are like 30 to 40 percent, that's three or four thousand dollars, but once you take into account potentially all the additional discounts you're throwing in and ad spend, and maintenance, and expenses. [Flori says "and packaging. Totally"] All of a sudden, you could be down to like two or three thousand dollars on ten-thousand-dollar revenue coming in, and I think it's really important to have that perspective. There's certainly lots of things that we see and insights that we share around all the different types of businesses, from service businesses to manufacturing businesses, around these areas where you need to be kind of very clear on some of the pitfalls that people have around their pricing and pricing strategy. So, moving on from that. So, obviously getting your price point is clearly very important, but also is maximising your sales opportunities which is where you want to build in profit maximisers. So, the simplest thing here to explain a profit maximiser is really an upsell, with one primary goal which is to increase the average transaction value of your customers. So, I don't know if you want to give them a couple of quick examples like with regards to...
Flori Pyke [00:20:42] Yeah definitely. So, you know it could be like an upsell or a cross sell. Your shopping online, and you're buying a top on ASOS, right. And, then ASOS suggest, "Oh you know, you should buy the skirt, or this pair of pants because it goes really well with that top." That's like you know a very commonly seen example of an order bump or what's called a profit maximiser. So, as Anna said, it's basically an up sell. It's an opportunity to take a greater share of wallet from the customer, whilst providing that customer with more value. And you can get really strategic with this, and you know it's all about considering as well that you know getting someone to buy is hard work. So, you want to make the most of that opportunity. Give them the most value you can and in effect get the most share of all that you can. And, on that note the other side of the coin to profit maximisers, you know I just talked about getting that first-time customer to buy is hard work. What about the ongoing customer? And this is where customer retention comes into play. OK. So, this is about taking steps when taking things one step further and looking at your customer, not just about being a one-time purchase, but a series of purchases over the lifetime of their journey with you. So, this is about really fundamentally keeping your customer coming back for more time and time again, and there's so many different stats around how much more it costs you to get a new customer versus an existing. But, in some cases it can cost you 15 times more to acquire a new customer than to keep an existing customer. So, like that is huge. Like once you get that customer the first time, you really want to try and do everything you can in your power to get that existing customer to come back again. So, think about nurturing them, creating new products and services that they want, engage with them, ask them what they want. Also, opportunities here to re-engage dormant clients. There's a whole area of opportunity here for you. And, actually on that, we've got a really great cheatsheet on this and we'll put that in the show notes for you as well, because when you can start to tap into customer retention, let me tell you like your business will totally change. So go check that out, check out the show notes for that cheatsheet because it's awesome.
Anna Jonak [00:22:55] Yeah. It's definitely something that made a massive impact to our businesses when we moved our focus away from the hamster wheel of staying on new customers, new people coming through the door, new new new new new. It was like whoa hang on a second. [Flori agrees] It just changed everything and the relationships that we have now with our clients. It's so much deeper and more meaningful, and like so much more rewarding. And, yeah, it's just a whole different way of looking at your business when you start to have your eye in two areas, one is keeping what you've got and really nurturing people, and then obviously working on growth side of things. All of it, will essentially lead to growth which is what our kind of point here is that there's lots of opportunities here for you to maximise. Maximise those opportunities and your price to leverage more money coming in.
Flori Pyke [00:23:35] Do you know what? Sorry. Just before it. Hold that thought, because we have a really good podcast episode actually on customer retention that you guys should check out. It's number 16. What's better than acquiring a new customer. So, go listen to that as well.
YOU NEED A MARKETING PLAN
Anna Jonak [00:23:48] Awesome. OK. Well now, onto the final part that we went through in our recent mini course, which is all of the shiny exciting bit with the traffic sales, and conversions and a couple of key things we really want to share with you I guess first up to increase traffic. One of the big lessons that we wanted to get across in our mini course was you need to have your bases covered, ultimately. And, it's important for you to have a marketing plan, and to be making sure though when you map it out that you're covering all these things. And, that's things like brand awareness, so making sure you're warming up those that don't know you. So, talking to your cold audience. It's nurturing those who do know you, so they're a bit warmer and have been hanging around for a little while, but they're not quite ready to buy, because ultimately the more you nurture them, over time will ripen. [Flori agrees] It's retargeting those who have been checking you out. So, you know people are thinking about it it's just reminding them that you're there or maybe you know tactically offering them something to take that leap, covering off SEO and search for those specifically you know, who are actually already looking for what you have to offer. And, then what we just spoke about? Driving repeat customers, that profit maximisation, referrals, encouraging people to share your brand and rewarding loyalty. So, again that kind of customer retention side of things. But, here, there's so many different eventualities of ways customers and clients will come to you, when they're ready or they're not ready or they kind of just checking you out. And, I guess the big thing that you ultimately when you're smart with your marketing in time, and you're definitely growing your business is to make sure that you are maximising these bases, and you've got strategies in place for each of these things.
Flori Pyke [00:25:22] Yeah. Absolutely. And, I think you know alongside this, if you really want to drive your sales and conversions, you then need to start mapping out what your sales funnel strategy is gonna be in order to achieve each of these objectives that you set out for yourself. So, your sales funnels ultimately are going to help you to really map out the steps, or the specific sequence of experiences that you provide a prospect, or a client to reach that desired outcome. So, to acquire a new customer, or to you know get an existing client to purchase from you again. But fundamentally you know the whole premise with the sales funnel that I think is really important to caveat is you need to nurture people whether they're a prospect or they're a client. You need to establish trust in a relationship, and you know sales are not going to happen just by accident. They are very planned and you need to start wearing that hat. You need to start owning the fact that you know, it is going to be crickets unless do something about it.
Anna Jonak [00:26:24] Yeah. Unless you need a plan, and you need a strategy within the plan.
Flori Pyke [00:26:26] That's right. And you need the foundations first. [both laugh]
Anna Jonak [00:26:29] Well it all builds exactly right. And, that's why we have like you know that's why I guess our program is built around this concept of the Build, the Plan, the Execute. For this reason, because it just means that you're then getting people to a place when they are investing and spending time and energy in this area, because building out your marketing plan and actually building up funnels is a lot of work. However, they're going to work if you've done the pre-work. And, obviously that's where the business growth comes in. And, you know we can now get funnels up really, really quickly, and have them firing very fast and able to make small tweaks, to make massive differences to kind of like our bottom line quite quickly. So, anyway, we trust that you can see there is, I mean this is really just a snippet of what we did in the mini course. But yes, it's definitely something that we'll be doing more. We always do. We do love a mini course or a challenge to teach. [Flori agrees] Clearly, we love teaching. It's kind of like you know what we do. But, we trust that there's lots of food for thought for you here to think about potentially some areas where you could create growth in your business right now whether it's improving you know, how you're reaching customers, or how you're talking to them, or the price that you have, or you know adding layers to customer retention, or even going back to right at the beginning, and realising that perhaps you don't really know who you're talking to, or the demand isn't quite there for the product or service the way that you're pitching it.
Flori Pyke [00:27:55] I know like there's so much opportunities, so much to chat about. But, yeah lots of food for thought for you listeners. So, yeah we trust that you've gained a lot from this episode, and now it's time for our parting thoughts. So, this is by Julia Margaret Cameron, and that is that "Growth is a spiral process doubling back on itself, reassessing and regrouping." And, if you just are watching the YouTube video, Anna just did a little dance for you, on the spiraling effects which put me into a bit of a giggle. [both laugh]
Anna Jonak [00:28:29] But it's so true. I was like it's so true. This is constant like merry go round of trialing things, you know, working out what's next, being strategic. So, I think it's a really good analogy. It's like you know you're going to go round and round double back. Yeah. It's fantastic. Awesome. Well, hey, it's been awesome being together. I know we speak to each other like 25 bajilion times a day but it's nice to come together and get on the podcast. And, under the new name, the new brand, the Raising Her Game. And on that note. Yes. Remember, to elevate your business game, ladies.
HOW TO CONNECT WITH ANNA AND FLORI
Business School: www.theelevatory.com
Phone: 1300 634 230
HOW DID WE DO?
We're incredibly excited to be able to share our business insights via the Raising Her Game Podcast. We aim to provide you the very best content each week to help you elevate your business game so you can take your life and business to the next level. We'll tackle the topics that will get you increasing your productivity, mastering your mindset and strategising like a marketer. If you're enjoying the show, you can help spread the love and pay it forward by leaving a review . It will make it easier for other female entrepreneurs in business like you, to find us and kick their own goals.