- What is the lifetime value of your customer? Or what is the marginal net worth of your customer? If you know this number you also know how much you can spend on advertisement for acquiring a new customer. Most entrepreneurs don’t know this number which makes it hard to think about your advertisement costs in the longterm.
- Mindset matters more than budget! Often entrepreneurs get stuck into the money thing. „ The bank doesn’t lend me the money“ was one statement of a Chinese entrepreneur who managed a motorcycle store in China and wanted to expand. “Find someone who has a problem that you can solve”, was the advice of Jay. This Chinese entrepreneur followed this advice and found manufacture in Malaysia. They cooperated and used the assets they already had: tools, distribution, sales team, and cooperated and created win-wins. Often times we want to start from zero instead of using already existing assets. The first step is to research who is already doing what you do and how you can help them!
- Who has the market that you wanna own? Get in touch with the business owner and start a conversation with him or her. We often think we’re the only business in our niche and we’re unique in what we do. The reality is the business landscape is much more heterogeneous than we think; oftentimes we’re just too focused on our own business. Try to work more closely with people who are serving the same audience as you or doing complimentary services that are compatible with your service and try to cooperate with them.
- Create a referral system. Instead of running ads and spending money on acquiring new clients use your existing clients as your own marketing strategy. Through a systemized referral system you include your existing clients into your referral system. One idea could be giving your clients a discount when they refer to one or two new clients. How often did you purchase something because a friend or business partner recommended it?
You can get more business lessons from Jay Abraham on this keynote presentation: