Maybe you are building a business and your sales are starting to increase.
Let’s say you’re starting to scale and you are certain to hire some employees.
Or maybe you’re starting to scale up to the revenues that you’ve always wanted to.. but now for the first time ever, it almost felt like your soul is destroyed.
In today’s video, we’re going to talk about how to build your business wherein you won’t actually burn out.
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FULL TRANSCRIPT
The other day, I just got off the phone with a business owner that was extremely burnt out.
How many of you guys can relate?
Your business is starting to grow and the demands gets higher and now, it feels like it’s stressing you out.
Now there’s anxiety and there’s this overwhelming feeling when you know that you have to scale. This is exactly what the business owner friend of mine experienced.
Now to overcome that feeling of burning out, let’s break down what his exact business is.
He is a therapist who also hired therapists to work under his leadership while he does the sales and marketing. (He charges on hourly session basis)
I got to ask him how much is the charge per hour and he said, $150/hour.
So what we did was to do the math..
And after all his expenses, the salary of his employees and the amount he pays to his business partner, the only profit he’s actually getting is around $1,000 a month.
Even though it’s only $1,000 a month profit and the fact that it’s a physical location business, that’s actually pretty good.
Because most businesses out there, especially physical locations, do not profit.
They have high revenues but because their overhead costs are so damn high, it’s very hard to actually profit. That’s why one of the biggest things we talk about is bringing that business into the online platform, where having the physical location as just the base.
So the following are the steps that we did for his business that started decreasing his sense of burnout by actually giving him a strategy to get him to the next level.
Step #1 IDENTIFY YOUR HIGHEST QUALITY CLIENTS
The first step is going into his existing clients and identifying the highest quality clients that he loves to serve.
That he could serve with integrity, and that he could get the highest results that could give the highest value while also giving him the highest amount of income in return.
Because let’s be honest guys, it’s business!
You cannot just help a bunch of people and expect to live your life!
Your goal when you started business is freedom. So of course, you’re gonna have to make money.
The problem with him is, he was dealing with so many different types of clients.
I asked him, ‘So, what are the types of clients that actually come and request your services?’
He said that they help people with relationship issues with their marriages, in parenting, and people with anxiety and trauma issues in their respective workplaces.
When we dug deep into each one of these problems that he solved, we found out that each one of those problems are actually a specific business in its own.
Now let’s break down the concept of what a business is..
A business is finding somebody with a pain point and offering a solution to those pain points.
His biggest problem, the reason why he was burning out, is because HE WAS BALANCING SO MANY DIFFERENT BUSINESSES.
Think about it..
With each one of these solutions that he’s providing requires a different type of sales, a different type of marketing, and a different type of messaging.
Because of the fact that it is convoluted between all the different customer avatars if you will, in this business, he wasn’t able to actually charge the prices as opposed to when you actually find one person, one problem, one pain point, one hell, one nightmare, and offering the solution and packaging it in a form of a transformation.
So this is how our conversation goes. .
And I asked him ‘Tom, out of all of the clients that you were serving, which one fulfills you the most? That you’re excited about helping, that you could give the biggest results, and that doesn’t actually burn you out?’
He then said that he prefers those clients that has marriage issues and other concerns that involve traumas with relationship.
I then told him that that is the business that we are going to focus in scaling to get him not to burn out.
The problem with burning out is not because you are tired, it’s because you have too much stuff on your plate.
The thing about entrepreneurs is, we have this ENTREPRENEURIAL IDENTITY.
We have opportunities everywhere and the problem is, since we see opportunities in anything, (and this is our superpower) it also ends up being our curse.
Remember this..
YOU CANNOT GET MORE BY DOING MORE. YOU GET MORE BY DOING LESS.
Step #2 FIND OUT WHAT YOUR CLIENTS ARE BUYING
After you identify your highest quality client, your dream client, the one that gives you the most money with the least amount of time and effort, that fuels you, that makes me feel fulfilled, that makes you feel aligned with what you were put on this earth to do..
The second thing is finding out what it is it that they are actually buying.
This is what we found out when he was charging..
We found out that he was attracting everybody. And because of that, he was not able to charge the prices because he didn’t actually have the messaging to seek the clients that were actively looking for him!
The problem when you charge hourly is, you have your highest quality clients compete with your lowest quality clients for your attention.
Think about this..
I asked him, ‘Alright Tom, in an eight-week period, what does your highest quality client spend in that time frame if they spend $150 an hour?’
Tom did the math and he found out that his highest level clients paid him around $2,500 for an 8-week period for a complete transformation.
So I said to him, ‘Let’s put it this way, you are charging hourly because that’s just what everyone else in your space is doing. But what you haven’t been doing is asking what your client and your dream client actually wants.
And that’s transforming and experiencing a change and an outcome in their marriage. That doesn’t necessarily need you to get paid hourly, but all they really care about is the transformation!
They don’t care about how much time they spend with you, all they care about is after the time they’re done with you that their pain points, that hell in their life, is finally solved.’
Upon identifying that..
I added, ‘Now you see, this person pays you $2,500 for an eight-week period, yet Susie over here only spends an hour of your service. What happens is, you’re actually wasting your precious resources, your precious time, your precious business, your precious employees and their focus on some clients that aren’t necessarily adding to your fulfillment, not adding to your profit, and not adding to your sanity.
That is the problem why you get burned out.
It’s because you deal with clients that don’t respect you. You deal with clients that don’t value you, clients that aren’t actually as serious and committed as you know deep down they have to, to actually experience a change in their business.’
So that’s what we realized.. I then told Tom,
‘What if you identified the clients that were willing to spend $2,500 for this service and instead of charging hourly, charge them for eight weeks.. Where instead of you coming in and they pay you hourly, they’re like ‘How about for eight weeks, pay this upfront?’ And then for eight weeks you could utilize the resources that can actually help you.’
We started doing the math.
We started looking into it and realized how would his business change if we actually started doing what we came up with.
And he said ‘Well right now I’m profiting $1,000 a month and to do that with $150 per hour, and to actually pay the staff, pay the employees, pay the physical location, I would actually need around 20 clients a month..’
We started doing the math and it was $20K month. ‘You’re profiting $1,000. So each of the clients that are actually coming in but they’re 20 clients per month.. You’re actually only charging and profiting $50 per client. Now Tom, is this something that you are comfortable in actually continuing?’
And he responded with a big NO. I was like, ‘You see how you’re feeling burned out right now. You’re dealing with 20 clients per month but you’re only profiting 50 each.’
Imagine what would happen if he serves his highest quality clients and they paid him for exactly what it is that they wanted, and that was a transformation.
So out of the 2,500 that he would get the profit, if he charged the eight-week transformation instead of just hourly, it would actually be around $2,000.
So with the help that we gave, I got to ask how many clients can he actually deal with on a monthly basis..
And he said, using the approach we suggested, he could get up to $18,000 a month profit in the business.
After asking how many clients would that actually require for him to hit that profit margin..
He said that with this strategy, it would only require around five new clients!
It’s because when you start talking heart-to-heart with the clients that are your highest level, that when they read your sales copy, when they read your messaging, when they go through any of your tutorial, like ‘man, this person understands me on a heart-to-heart level, you actually get to increase your prices.’
So before, when the highest level client that we identified, when they pay hourly, $150 for an eight-week period is $2,500..
We found out that with all of our other clients is, when you actually package it as a transformation in eight weeks instead of hourly, you can actually increase your prices going from like $2500 to charging $5000 plus per eight-week transformation.
The question then was..
Which type of business would give him burnout. .
Is it the 20 clients per month with $50 profit each or only 5 clients where he’s profiting $18,000?
And he started thinking and realizing that he has been complicating it the entire time!
Because the fact is, he has been focusing on competing with the existing market when he wasn’t innovating to actually serve his own clients.
That is all business is.
It’s three things..
SALES, MARKETING, and INNOVATION to better serve your clients.
He was focusing on how to scale his existing business when little did he know, in order to scale, he had to ask his clients and his highest level clients exactly what it is that they needed.
Step #3 LEARN FROM PEOPLE WHO ARE AHEAD OF THE GAME
The third thing in how to scale without burning out is seeking people that have already done it in different industries.
The problem with what he faced is, he came in the therapist space where he wanted to help people with trauma and with relationship issues in order to transform a specific part of their life.
But what happened is, he was competing against every single other person that was doing the exact same thing.
And when you compete against what is already existing in the marketplace, what happens is..
You decrease your value because of the fact that you are just another ME-TOO PRODUCT, you’re just another ME-TOO OFFER.
What would be different is instead of competing, you obliterate your competition by not even focusing on them.
MAKE YOUR COMPETITION IRRELEVANT
I made a video about this thing called “blue ocean versus red ocean” strategy.
You have to move from a red ocean, infested water business market conditions, to a blue ocean..
Where your competitors are irrelevant, where you’re able to scale like crazy, and you have first mover’s advantage.
That’s one of the biggest things to do if you’re feeling burnt out..
You shouldn’t be modeling what it is that your competitors are doing, but instead you should start looking at other industries and seeing what works with them and how you can actually apply it into your own practice.
That’s exactly what we did.
Imagine going from 20 clients per month with $50 profit each client to only 5 clients and profiting $18,000 a month.
Imagine what that would do for his business, for his life, and what other things would that create.
Because think about this, we build our businesses and then we burn out. You want to scale even more and we burn out even more.
The problem or the paradox that happens when it comes to entrepreneurship is, WE FIGHT FOR THIS FREEDOM, but then what happens is . .
We become a slave to the business that was initially designed to create us freedom.
So what we need to change instead of optimizing for hourly, start optimizing for your own freedom. Start optimizing for serving your highest level clients.
Start optimizing on creating a business that actually makes you happy and energetic instead of feeling down and depressed.
Don’t be like ‘okay, I left my job to start a business but now it just feels like I have another job’.
The only way to do that is to IDENTIFY THESE 3 THINGS:
- Find out your highest level clients that pay you the most for the least amount of time and your own effort.
- Sell them exactly what it is that they want. Not hourly because they don’t care what you do on an hourly basis, they care about outcomes and they care about transformations. You go from an entrepreneur that sells information which only can command hourly prices, to transformation which can command premium prices.
- As long as you could solve someone else’s life or business problem, their “hair-on-fire problem,” where they lay awake in the middle of the night staring up at the ceiling and asking, ‘how can I actually solve this?’
You can actually scale a business to whatever numbers that you want without actually burning out.
Hopefully this content helps!
I’ll see you guys on my next blog!
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