Connect with us

Startups

5 Suggestions For Your Startup To Get Dollar Productive

Published

on

The interview I did with Andrew Morello had so much quality content that I had to do a part two to squeeze it all in for you. This is testament to Andrews’s knowledge in the field of sales and all the training sessions he has run for large organisations around sales. In part two of my interview with Andrew, I discussed with him ways in which startups can become dollar productive. It’s crucial that you’re always thinking outside of the box and not afraid to talk about what you do.

Below are Andrew’s five suggestions on how your startup can get dollar productive right now! 

1. Increase leads any way you can (be smart)

One mistake that all startups make is that they concentrate on things that are not important. A prime example of this is worrying about what your website looks like, what your brand looks like or what your flyers look like. In the early days, you need to concentrate on things that are dollar productive. Try starting with the three F’s.

F – Friends

F – Family

F – Fools

When you start out in a business, often you haven’t got the credibility just yet, and you’re relying on people that know you, trust you and are prepared to give you a go. This person that trusts you is only a fool until you turn them into a client, and they are only a client until you turn them into a friend, and they are only a friend until they become part of the family.

Anything you have ever done in the past, like other business ventures or jobs, will help you find prospects. These people are great to start with because they trust you, and they know you.

In order to keep on feeding the prospecting machine, you always need to have leads coming into your funnel. These leads can come from your networks / referral networks, Consider the concept of reverse engineering your sales funnel. If you want to do 10 sales per month that may mean that you need to do 40 face-to-face appointments per month, which means you might need to be speaking with 400 prospects over the phone in a month. If you’re looking at your business networks to increase leads and become more dollar productive for example, with a financial services business you might want to consider contacting any accountants you know, bankers you work with, lawyers or financial planners.

The other source for leads could be within your community networks. Could you join a Rotary or a Lions Club? Could your church, your mosque or your synagogue be another place to look for increasing leads? It wouldn’t be that hard for you to create a referral program with one of these organisations and then pay them a referral fee which could go back to the organisation and help support their cause. All of these strategies will also help your startup to be recession proof.

Another area to try (don’t go too crazy with this) is to look at purchasing leads. The quality may not always be amazing but if you’re not the salesman or the prospector then this could work well for you. A client that Andrew signed up used this strategy in the early days and built their business up to $700k in upfront revenue per year. The secret to this businesses success was that he gave each of the leads phenomenal service, which allowed him to get 3 or more referrals off them, to the point where he no longer has to buy leads or prospect.

Your startup is no different to any other sales business, and you need to look to build out a sales funnel. Everybody that you meet should be a prospect or an opportunity in your small business CRM (Client Relationship Management) software. Even if they are hot, cold, or not interested, make sure you put them in your CRM so that you can at least put them on a monthly newsletter.

Don’t make the mistake of going to a networking event, collecting a 100 business cards and then saying only 3 were interested, and throwing away the other 97 business cards. The other 97 people should go into your CRM and onto your newsletter so that they might become a prospect in the future. It’s up to them to opt out if they really hate your product or service, not for you to make that decision on their behalf.

Don’t make your content salesy make it educational. At the end of each of your educational newsletters or piece of content, you should have an opt-in if the prospect would like to get started with your business.

One final tip for increasing leads is to look for joint venture opportunities. For example, if you’re a supplement store, consider doing a partnership with a gym and offer a month free membership for anyone that spends over $200 on protein powders. These types of strategic partnerships can add revenue to your bottom line.

2. Start with entry-level products (you don’t buy a Rolls Royce for your first car)

Don’t try and sell the premium package straight away. Have an entry-level product so that people can get to know you. Something like a $99 ebook can work well, and then they have the option to upgrade to the $1500 package. If you’re selling a product, then let the prospects try it for a period of time.

3. Don’t have too much of your revenue coming from large giants

Mum and dad businesses are a great target market because they are recession proof. What that means is that whether the economy is good or the economy is bad, there is always a mum and dad that needs your product. The danger of going after large organisations is that as soon as there is a GFC or tightening of the economy, generally the larger companies make the budget cuts first and then when the economy turns around they are the last to get invigorated.

“When Andrew was asked to speak at the G20 Youth Summit, they discussed the massive issue of global youth unemployment. At the end of the discussion they realised that the answer wasn’t in government or large corporates, but rather it was in entrepreneurism”

The danger of selling to a large organisation is that if they makeup 80% of your business and then you lose them, the majority of revenue is gone overnight. At the end of the day, there is nothing wrong with selling to small business and mums and dads. It’s also a great way to deleverage your business.

4. You must measure

A great way to measure if you’re dollar productive is to work to what Andrew and his mentor (John McGrath of McGrath Real Estate) call “the ideal week.” It’s the seven days that you live your life broken up into dollar productive activities and personal activities. The point of this is to try and find ways to leverage off your personal activities so that they become dollar productive.

A great example of this would be if you had kids and wanted to drop them off at school each day and pick them up at the end of the day, make sure you wear your company polo top and wrap your car with your businesses logos, so people know what you do. Also, try and meet a new parent every day, have a business card in your pocket and always tell the parents what you do. This is a great conversation starter, and the natural barrier that people have is broken down because you have got something in common which is that your children go to school together.

5. Leverage social (yes we said it again)

Andrew considers himself as a bit of an old dog when it comes to technology, but he has recently started to take much more notice of social media. Having said that, I was originally going to do the interview with Andrew over Facetime but he insisted on face to face because he believes that business is about catching up with people and finding out what’s going on in their life.

Social Media allows you for to be an advocate for your business. Jane Lu from ShowPo is a great example of this. Her business went from $20,000 per month in sales online to more than $1 million dollars per month in sales online. Jane is a walking talking billboard for her business and in the early days she had more than 100k of Facebook likes and a lot of people that had liked her page had actually met her at some point.

“When you’re in the startup phase your business page on social media is your personal page”

Andrews Morello’s Social Media Tips
  1. Use social media as a way to keep people interested in your startup
  2. Try not to flog too many products on your social media pages
  3. Don’t be afraid to be a little bit rough around the edges and show some vulnerability.
  4. Avoid putting up anything offensive but there is nothing wrong with putting up photos of you, and you’re family. It shows people you’re a family man, and that’s the type of person that people want to do business with.
 
If you would like to connect with Andrew or follow him, then you can below: 
Website – www.andrewmorello.com
Instagram – @andrewmorello
Facebook – Andrew Marcello Morello
Twitter – @ AndrewMorello
Advertisement
2 Comments

2 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Startups

5 Strategic Power Moves to Successfully Build Your Empire

Transitioning from idea to empire is a journey of strategic planning, execution, and constant evolution

Published

on

how to build your empire

The journey from a fledgling idea to a thriving empire is both exhilarating and daunting. The Startup Launchpad is not just a process but also a strategic framework that enables visionary entrepreneurs to become market leaders. This framework comprises five power moves, each a critical steppingstone in building a successful business.

These moves—Ideation, Business Plan, Online Presence, Strategic Marketing, and Launch and Growth—are the blueprint for turning aspirations into achievements. (more…)

Continue Reading

Startups

How to Avoid Startup Clichés and Buzzwords When Pitching Investors

Using jargon can make you sound like you’re trying to fill space instead of providing meaningful data

Published

on

How to pitch investors better

Entrepreneurs frequently seek startup funding through a variety of channels. Yet, none seem as challenging as successfully pitching to experienced investors. After all, investors are pressed for time and eager for opportunities. These characteristics make it challenging to motivate them, especially if you’re bombarding them with a pitch full of jargon. (more…)

Continue Reading

Startups

From Idea to Empire: 5 Power Moves for Your Startup to Thrive in Today’s Market

As an entrepreneur, I’ve learned that understanding market dynamics and choosing the right business model are crucial

Published

on

How to thrive in the startup market in 2024

As an entrepreneur, I’ve learned that understanding market dynamics and choosing the right business model are crucial.

A few months into the startup, I was quick to gauge why it is necessary to go beyond the nuances of operational efficiency and the art of sustaining a business amid growing competition.

Collaboration is key.

The HR and the recruiting teams work with departments to foster a culture of collaboration, but what’s indispensable to business performance is the sync between the marketing and sales teams. What we’d consider as entrepreneurs is the need to ensure seamless collaboration to predict and achieve business goals together. In turn, this will help secure long-term recurring revenue for the business.

Besides, entrepreneurs need to focus on revenue as they gear up to take their startup from $0 to $1 million. The journey is filled with critical decisions, from identifying your target customer base to choosing the right funding strategy.

So, what next?

Read on… because here are five practical, results-driven strategies that you as a founder can implement to make a mark in their industry.

#1. Embrace the Lean Methodology

What is lean methodology?

It is all about pivoting resources to create more value for customers with fewer resources. 

This principle encourages you to be more agile and allow rapid iteration based on customer feedback rather than spending years perfecting a product before it hits the market.

Want to implement it?

Here’s what you can do.

Build “Measure-Learn” Loop: What I did was develop a minimum viable product (MVP), a simple version of the product. You can do the same since it allows you to start the learning process as quickly as possible. After launching MVP, measure how customers use it and learn from their behaviors and feedback.

Here’s what I can recommend here:

  • Identify the core features that solve your customers’ primary needs and focus solely on those to develop your MVP.
  • Know the feedback channels where early users can communicate their experiences, suggestions, and complaints.
  • Analyze user behavior and feedback to make informed product development and iteration decisions.

#2. Focus on Customer Development

Let’s talk about taking our startup to the next level. 

It’s not just about getting customers – it’s about really getting to know them. We need to dive into their world, understand their struggles, and see how our product or service can make a difference in their lives. 

It’s like we’re detectives, piecing together the puzzle of our business hypothesis by actually chatting with our customers

What would you ideally do here?

Understand Customer Segments: I’d say, start dividing your target market into segments and develop a deep understanding of each segment’s demographics, behaviors, needs, and pain points. The idea is to get into their shoes and really feel what they feel.

Ensure your Product Clicks: When starting up, think of what you offer and consider whether it clicks with what our customers need. My thought was “Does my product solve their problems? Does it make their day better?” Put yourself through a tough grilling session to show customers the value proposition and ensure that the product’s promise matches what our customers are looking for.

I’d recommend the following actions here:

  • Talk to them – through surveys, interviews, or even casual chats. The goal? To gather real, raw insights about what they need and expect.
  • Use the collected data to create detailed profiles for each type of customer. This way, everyone on our team really understood we were serving. I think this should help your startup as well.
  • Try out different versions of our product with a few customer groups. It’s all about feedback here – understanding if you’re hitting the mark or if we need to pivot.

#3. Foster a Data-Driven Culture

The digital world is highly data driven since it fuels key decisions in a startup. 

I believe it’s essential for us to build a data-driven culture. This means, you’ll move from making decisions based on hunches or assumptions. Instead, the focus should be on data analytics and insights to guide our strategies and improve our outcomes.

What can you do?

Use Data Analytics Tools: You should be using these tools to gather, analyze, and interpret data related to customer behavior, market trends, and our business operations. Here, consider the adoption of pipeline forecasting that leverages AI to find patterns in marketing data. 

In turn, you’ll get areas for improvement since it can analyze historical data and predict the outcome for you to plan your.

Action Items:

  • Pinpoint key performance indicators (KPIs) that align with your business objectives and ensure they are measurable and actionable.
  • Next, you can consider training your team to understand and use data analytics tools. This might involve workshops or bringing in experts to build a data-savvy workforce.
  • Once everything is in place, regularly review data reports and dashboards. This gives us a clear picture of a startup’s health and helps adjust your strategies and predict future trends.

#4. Strengthen Your Financial Acumen

A good grip on financial skills is important to steer your business towards growth and making sure it stays on track. For this, you’ll have to understand the money side of things, which helps you manage your cash flow. Think of figuring out smart investment moves and sizing up any risks that come your way.

Here’s a tip on how you can get savvy with your finances.

Maintain Rigorous Financial Discipline: I’m really focused on cultivating a strong company culture, one that truly resonates with our mission. So, I’d suggest fostering open communication and encouraging a sense of ownership and collaboration among everyone in the team.

Action Items:

  • Get to know your financial statements inside out – I’m talking about the income statement, balance sheet, and cash flow statement. These are like the vital signs for your business’s financial health
  • Use financial forecasting that helps predict your future money moves. With this, you will have a heads-up on upcoming revenues, expenses, and how much cash you’ll need. Also, research on the available financial forecasting tools that can make predictions spot-on.
  • Don’t go at it alone. Regularly touch base with financial advisors or mentors. With them by your side, you’ll have a fresh perspective on your financial strategies to ensure you’re on the right path to hit your business goals.

5. Prioritize Team Building and Leadership Development

It is crucial to focus on building a solid team and developing strong leaders. This means putting our resources into the people who are going to propel our company forward. 

What you’ll aim for here?

Creating a culture where everyone collaborates and every team member has the chance to emerge as a leader.

What I would do:

Cultivate a Strong Company Culture: This culture should mirror our mission and foster open communication. It’s important that it encourages everyone to feel a sense of ownership and work together.

Invest in Leadership and Team Development: As founders, we’ll have to make way for opportunities for teams to enhance their skills, face new challenges, and grow in their careers.

Some concrete steps that you should consider taking:

  • Begin with clearly communicating your startup’s vision, mission, and values so that every team member is on the same page.
  • Conduct regular team-building activities and workshops to boost skills and strengthen a sense of unity and collaboration.
  • How about starting a mentorship program within our organization? The more experienced team members could guide and support the growth of newer or less experienced folks.
  • Alas… encourage feedback at all levels. We should keep striving to create an environment where open, honest communication is the norm and everyone feels safe to speak up.

I know it’s one thing to get your head around these ideas and quite another to actually make them a part of your everyday business life. But that’s where the real magic happens, right? It’s all in the doing. 

As a startup founder, this means more than just being a big dreamer. How about rolling up your sleeves to be the planner who pays attention to the smallest details. Ultimately, these tips and more tactics around it will help carve a leader in you who listens and cares and the learner who’s always ready to adapt

So, as you’re either starting out or moving forward on this entrepreneurial adventure, keep these practical tips right there.

May these be your guiding lights, helping you steer through the wild and exciting world of building a startup that’s not just a dream, but a thriving reality.

Continue Reading

Startups

12 Things I Learned in 12 Months of Working on My Startup

Published

on

Image Credit: Unsplash

A few weeks ago I launched my startup. It took exactly 12 months from the initial idea until the moment I saw my app in the App Store. And these were some of the most challenging, fun and exciting 12 months of my whole life. (more…)

Continue Reading

Trending