4 Tips to Running Your Company
COVID-19 has shown us how quickly market conditions can change. Some businesses that were essential before are now struggling to stay afloat; and a number of business advices that gave value will lose companies profit when heeded at this time.
When we talked with Ryan Deiss at Affiliate World Europe, no one could’ve predicted the global crisis we are in now. Yet, his business tips may be even more valuable now than they were before.
Ryan Deiss is the Founder and CEO of Digital Marketer, a premier online community for digital marketing professionals with tens of thousands of customers in 68 countries around the globe. They’re on a mission to double the size of 10,000 businesses in the next 5 years.
Here are his 4 tips for anyone who wants to succeed in running their own company:
1. Find your high-value segment and create special offers for them
Ryan increased their lead value by about $10 by implementing one strategy: focusing on their high-value segment.
You may have heard of the 80/20 rule, also called Pareto Rule, which asserts that 80% of outcomes come from 20% of all inputs.
It’s been applied in numerous productivity strategies, and even more so in business.
Every business has a customer or client segment that brings in the most value, says Ryan.
This is your 20% where potentially 80% of your output can come from.
How do you make the most out of this segment?
2. Build the type of business that someone would want to buy
People often build their whole business around one thing that’s non-transferable.
Ryan made this mistake before, too.
Their e-commerce business got great offers that converted and made good money.
But this business asset was non-transferrable–if someone were to buy their business, they wouldn’t be able to acquire this asset.
Whoever was gonna acquire their company had to believe that they could be as good at marketing and offer creation as Ryan and his team, which they probably wouldn’t be.
So they changed that.
They started to put a lot of emphasis in the brand they were creating, so it’s the brand that people would want to buy. And a brand can be transferred.
You might be thinking “That’s great, but I don’t ever want to sell my business.”
You should still seek to build the type of business that someone would want to buy.
Because if it’s not, what value are you really providing to the market?
3. Monitor your cash flow like a hawk
Ryan believed earlier in his career that if there’s enough topline, if there’s enough revenue, then there would be some net revenue and profit.
“Budgets are for broke people who don’t know how to make sales!”
Believing this, he almost grew companies into bankruptcy–twice.
So he learned budgeting.
Thinking budgeting wasn’t essential was a mistake that nearly cost him everything.
One time, he showed up at the office expecting to lay off 18 people because they wouldn’t be able to make payroll.
That’s how close he got to bankruptcy mostly because he wasn’t doing one thing: watching their cash flow.
How has your cash flow been lately?
4. Focus on your customer, not your product
This is the biggest opportunity to business owners right now, says Ryan.
So many people fall in love with their products, and, as a result, run product-centric business models.
They tell themselves, “I wanna sell this product.”
But if you want to really scale, to grow from 2- to 20-million revenue, Ryan advises to shift your mindset from being offer-centric to customer-centric.
You have to build a business that’s about serving the market.
And as markets change, this sometimes requires throwing out a product completely.
You can only do this in a customer-centric business model.
Philipp is a 20-year veteran of digital marketing who has spent most of his adult life in 2 worlds: selling online, and creating social impact through education. In 2020, together with his wife Fabienne (an economist for the UN and PhD in social sciences), he has founded The FAM Fund.