Get Your Business Back On Track: Part 1

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This is part one of a two part business audit series. In this post I am going to help you get your business running lean and mean and in the next one I'll help you work on a process to grow it.

This post is for anyone that’s been building a business for while or has been stuck in the quagmire of thinking about starting a business. If you fall into either of these camps I’m willing to bet that, more than you’d like to admit, from time to time you pick your head up, look around and think quietly to yourself… 

“What am I doing?” 

This question can be born from a lot of things happening to you on your business journey. It could be that you’ve been trying for a while and haven’t been getting the traction that you want. It could be that you’ve been so focused on making the sale that you’ve diluted your offers over time. It could even be that you’ve been talking about this idea for so long that your inner circle is tired of hearing about it. 

It doesn’t have to be this out of control reactionary business spiral anymore. In this post I’m going to walk you through a quick and dirty business audit that you can do to help you get your idea and your business back on track. The best part is that you can do it any time and as often as you need to get back to clarity. 

Back to business model basics. 

With all the technology, platforms and social networks driving attention to transactions you can quickly over complicate how you deliver your value to your customers and collect payments from your customers. To help get your business model running lean and mean you need to answer these questions. 

1. What are you selling? 

Sounds basic but I want to challenge you to answer this question in terms of specific outcomes for your customers. Is it a product or service and what is the end benefit to your customer for interacting with you. 

2. What does the transaction life cycle look like? 

Transaction life cycle? What does that even mean, right?! What I’m challenging you to think about here is the ‘how’ part of your transaction. More specifically is it as easy as it should be? If people buy from you online is the process streamlined and trustworthy? Do people pay you in one lump sum and you deliver a specific product? Are they paying for a service? How often are they paying and if it’s more than once is the recurring payment method easy and clear? 

3. How did you come up with your current prices? 

Your prices send as strong a message to your target customers as your marketing does. Picking arbitrary numbers because they “felt” right is a terrible way to price. Are your prices tied to your costs? Are they tied to the benefit you're delivering? Why should anyone pay what your asking? Are you the cheapest? Are the customers that are willing and able to buy your product the kinds of customers you are trying to attract. Think back to your intro economics courses; specifically price elasticity of demand for all my economics nerds in the audience.

Yeah, I see you! 

4. What are you tracking? 

I’m a big fan of the saying - “what gets measured gets managed”. I also know that the reality of running a business can be messy at times so I want to encourage you to look at what you’re actually tracking in your business. How are you defining success and are your actions in the business mapping to those metrics? 

5. Can you identify potential gaps in your value proposition? 

I don’t have to tell you that you can’t be all things to all people. But, there may be opportunities to provide additional value for customers. Now this is a slippery slope because it can be easy to squirrel off and build a menu of offerings that you believe can add value to people’s lives. I want to challenge you to think about just those options that fall within the scope of work and deliverables you’re already executing on. 

Those are the five questions I would recommend that you start with to help you get your business back on track. To help give you a little more context let’s do a quick hypothetical example of these questions in action. 

Hypothetical Wellness Coaching Business (HWCB)

Hypothetical Tagline: Teaching you the tools you need to live a happier, healthier life. 

Hypothetical Scenario: HWCB has been in business for over a year and hasn’t had enough interest in the business to justify going full time. Business owner still works part time at a traditional job to make up the income need gap. Over the past year this business has offered everything from reiki, to life coaching, to relationship coaching, to holistic dietary coaching, to essential oil sales and even career coaching. Up to this point business owner continues to “invest” in resources and skills they believe will continue to differentiate them against the sea of other “coaches” in local market. HWCB has even dabbled in creating a course or program offering but has failed to get it launched after a handful of creation attempts. 

Here’s an example of how this business owner could use this audit process: 

1. What are you selling?

Hypothetical Response: HWCB primarily sells a coaching or advisory service. While the reiki and essential oils are also possible revenue generating activities they aren’t the primary way HWCB prefers to interact with customers. The hope was to run an online course or coaching program but it hasn’t come been created yet. 

Takeaway: Prioritize the coaching right now. In this example there are a lot of resources being wasted trying to build out, market and sell all these different services. 

2. What does the transaction life cycle look like?

Hypothetical Response: With reiki and essential oils people pay HWCB directly in person and either get the service or product. With the coaching HWCB sends out an invoice for the month, customers pay through a link in the invoice and then meets weekly with customers. The coaching engagements just ends at the end of the prepaid invoice retainer/fee. No real follow up after the coaching engagement ends. HWCB has to keep track of cash and electronic payments as they clear through different accounts and through different mediums. 

Takeaway: Since HWCB is going focus on coaching there will be no need to handle actual cash anymore. This will simplify the accounting process as well as the scheduling process (time management) as HWCB will be focusing on a single coaching offering. At this point HWCB also didn’t have a good follow up process for after the coaching engagement ended so this should be a point for continued development. 

3. How did you come up with your current prices? 

Hypothetical Response: After doing some superficial searching online and looking around at some local peers the price per hour was just decided to be $100/hr. Felt right. 

Takeaway: Don’t use YOUR feelings to price. Dig deeper into the value you offer as well as accounting for any relevant experience, successes or credentials you hold. Those things may help you command a premium. Digging deeper into customer profiles could also give you a better idea of what they might be willing and able to pay for your services. Keeping an eye on competition is important because you want to be relatively competitive but that shouldn’t be the only pillar you use to price. 

4. What are you tracking? 

Hypothetical Response: Not really anything because HWCB isn’t really doing much. Why bother?

Takeaway: This is a toxic business building mindset. Tracking nothing means you can, with some real certainty, expect nothing. With a business in this stage and upon getting to this point where HWCB has resolved to focus on coaching my recommendation would be to focus on:

1. Sales activities: referrals generated, emails sent out, consults scheduled, coaching programs sold per month, etc. 

2. Success metrics: How much have people’s lives improved? 

3. Content Schedule: What is HWCB doing every week to provide value to people that find HWCB in the places it turns up online. 

Even with just these three ideas HWCB can start to build some consistency into how the business is being run and potentially grown. 

5. Can you identify potential gaps in your value proposition? 

Hypothetical Response: Thought I was doing that with my essential oil sales and other services I offered. 

Takeaway: Wrong. What HWCB was doing was confusing the main offering, what they were essentially best at. In this example it might be beneficial to see if there’s a level two version of the coaching offering. Maybe HWCB focuses on coaching a person through a specific problem with a specific outcome goal in mind and can foresee that down the road there will be another, different, set of obstacles. Maybe there’s a resource like a book or a web tool that can be recommended to augment the newly focused coaching process. These are things that could enhance the business not just a spray and pray approach to solving everyone’s problems all the time at any stage in their lives. 

Final Takeaway: At this point hopefully it’s clear that HWCB should get more focused on a coaching offering specifically, make the offer clear, solicit prices that makes sense, keep the transaction simple, sprint towards getting great results for people that can be shared and get laser focused on the sales and marketing tracking aspects. Selling more and different stuff doesn’t make HWCB attractive to more people, it scares them away because they aren’t confident that HWCB can do any of them well. By doing these things HWCB has stripped away all the extra stuff that was just consuming resources and frees up time, money and even mental space to do the work that will matter most for the business. 

If you’re a health and wellness business I hope this was helpful for you and even if you’re not you can still get a ton of insight on your business by going through this process. This will help you get to the heart of the work that matters most in your business but you have to be absolutely honest with the process. 

Otherwise you’re just playing business and nothing will get better. 

I STILL WANT TO HEAR FROM YOU!

Below this post is a one question survey. I’d love to help you with what you're struggling with when it comes to your business development. I’m promising to do my best to get back to everyone that responds. 

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