Simple Business Strategy Plan to make your business colossal
Imagine how easy our lives would be if someone could just make us an easy and effective business strategy plan. Well, I actually have something for you. This plan is given to us by Mike Michalowicz in his book ,The pumpkin plan ,through his own experiences. This business strategy has helped thousands of small businesses to grow substantially. And you won’t even believe how easy it is.
What is the idea behind this business strategy?
You know how we always are trying to pursue our no.1 clients or customers. Now this might be ruining your business and making you lose your “profitable customers”. You must be wondering that planning of a business strategy depends solely on our no.1 customers, customers who bring us more than 50% of our revenue. Nope, that is wrong. The whole plan of any business strategy should and must not depend only on one factor i.e. revenue. I agree revenue is obviously a very important factor but not the only one.
The idea behind this strategy is “FOCUS ON THE RIGHT CUSTOMERS”. We’ll discuss how.
The Simple Strategy
First we’ll discuss what are the 3 most important things to make any business colossal.
1. BE UNIQUE
As I discussed in my earlier post ‘How to become a successful entrepreneur:10 magic formulas‘, this is the key to a successful business. Your plan or game of business strategy should be such that it distinguishes yourself from the others in the market. Don’t just be better. Be different.
You know why I’m saying you to be different and not better because being better means grabbing a handful of customers and being different means grabbing all the customers.
You might be better because you have better equipments but then your cost would be more so some of your clients would prefer to go to your competitor who offers a cheaper price for a little inferior quality. That’s why it’s important to be different so that we erase the factor of competition.
2. TOP CLIENT DEMAND
Let’s agree that any business is because of it’s customers. If there is no demand for your product or service then being unique won’t do any good. For example you have an amazing product that has not been made by anyone else but there is no one to buy it. That product is simply useless now. So always create a product or a service that will be in demand for a long time.
3. RIGHT SYSTEMS
If you have a business plan that can
- convert your prospects to become customers,
- these customers appreciating your business to their friends or posting it on social media,
- loving what you do,
- paying you well
all while in your sleep, that’s a business to build. If your business can run without your conscious effort, that is the Dream.
YOU NEED TO BE IN THE INTERSECTION
- If you are Unique and have a great client demand but no system, you’ll fall under TFM i.e. Time for money. This means you’ll have to give a large amount of time for a relatively small amount of money.
- If you have a system and a client demand but your business idea isn’t unique, you’ll fall under DPP i.e. Downward Price Pressure. By this I mean that whenever say other brands or companies with a similar product start reducing their prices, you’ll have too.
- And if your service or product is unique with a system but there is no client only, you are simply screwed!
You don’t need one of the above things, you need them all. If you want an enormous business growth, you need to be in the intersection. You need to be unique, have the right systems and have a top client demand. Planning your business strategy would depend on how beautifully you can meet all the three things in the intersection. And that would grow your business enormously.
THE GOLDEN ANALYSIS
Here we have divided our clients on the basis of 3 factors:
Total revenue they are generating for us.
2. C/C analysis: Crush/ Cringe analysis
In this, we have to mark our clients as crush or cringe. For example, if they call you and you wish they were dead, put them in the cringe box( sad face). And if your face lights up on seeing their names on your phone, that’s a customer we’d be crushing on.(happy face)
Most often, we end up spending our energy and time on the customers who give us the highest revenue but make our lives hell. In order to satisfy their demands, we end up loosing the customers that make our lives easier.
Our main focus should be able to clone Company 2 who not only help us generate a good revenue but also makes the business go smoothly. Those are the companies or clients we want. Shift your focus to these clients.
Give each client a specific feature that they belong to or that they have. For example,your best client is someone who loves to go rock climbing events. So join them in those events and make yourself more visible to their group of people. Enlarge your social circle but with them. This way you’d be kind of establishing a good rapport with them and thereby going for a business growth.
In the end, every business owner/ entrepreneur should be planning their business strategy in a way that they can make their clients happy and be happy themselves too. Grow your business in a way that it generates income even during your sleep.