Categories
Growth

How To Get More Customers And Faster Sales

– Acquiring clients at breakeven upfront and make a profit on the back end
– Guaranteeing purchases through risk reversal
– Host-beneficiary relationships
– Advertising
– Using direct mail
– Using telemarketing/email marketing
– Running special events or information nights
– Acquiring qualified lists
– Develop a Unique Selling Proposition
– Increasing the perceived value of your product/service through better client education
– Using public relations
– Referral systems

Categories
Growth

Sell them what they want

Today you will discover what a newspaper advertisement from 1923 has to do with an African Stem workshop and how startups offer demos to their prospects.

A few years ago I started a STEM and business workshop for young people in Africa.

Whenever I would speak with the parents who brought their children, I discovered the knowledge their children were receiving was not the only reason none of them complained about my fee.

Many of the parents realized that a child with knowledge of coding, marketing and entrepreneurship also offers them bragging rights.

Paying for my program gave them the ability to say things like “My kids know how to build their own website and they are even working on their own side business in their free time. They also know how to read a 300-page book in less than 2 hours with good retention.”

They weren’t just paying to educate their children. They were paying for the end results which were first, a mentally developed child and secondly, bragging rights that made the parent look good before family and friends.

The lesson here is to always find out ALL the things your prospect wants and tie it to the solution you provide.

In 1923, a newspaper advertisement had the following copy “

When you buy a razor, you buy a smooth chin — but you could wear a beard. When you buy a new suit, you buy an improved appearance — but you could make the old one do. When you buy an automobile, you buy speedy transportation — but you could walk. But when you buy plumbing, you buy cleanliness — for which there is no substitute!”

This is the precursor to the now-famous quote attributed to Theodore Levitt,

People don’t want quarter-inch drill bits. They want quarter-inch holes.

There’s another quote from a 1946 ad run by L. E. ‘Doc’ Hobbs who was the District Sales Manager of The Manhattan Mutual Life company. It says,

We don’t want to sell you Life Insurance . . we want you to know and have what life insurance will do. A 1/4 million drills were sold last year, no one wants a drill. What they want is the hole.

Your Own Local Life Insurance Company has only the sincere desire to furnish food, clothing and shelter to your loved ones if you die too soon . . .

In 1985, “Zig Ziglar’s Secrets of Closing the Sale” included the saying: 9

You don’t sell what the product is — you always sell what the product does. Example: Each year over 5 million quarter-inch drills are sold, yet it’s safe to say that nobody wants a quarter-inch drill. They want a quarter-inch hole.

What does this mean for startups?

When a prospect visits your site, don’t just offer them a ‘demo’ like everyone else.

Tell them what exactly, the demo will do for them.

No one really cates about your demo. (That being said, you should make it very easy to access your demo. Those 15 fields you require will lower your conversion rate for that opt-in form. Ask for name, company email and anything else that is absolutely necessary. )

Everyone wants to know what exactly your product will do for them. How it will help them. What solutions it will provide. What problems it will fix. How much time it will save them. How much money it will save the company. How much revenue, sales, profits, and market share it will deliver.

Many times a senior-level executive is looking for a software solution that will make her look good before the board or the press or their colleagues.

Smart commercial real estate developers factor this in their marketing and construction plans all the time.

They know that some companies say they care about the location so their employees can commute to the office cheaply and quickly.

What they don’t say publicly is that ‘by having an office in this neighborhood we also get prestige, proximity to the right investors and it signals to the market that we must be doing well if we can afford to be here.’

Back to the drill quote…

The drill provides the hole, the hole provides the ability to hold a bookshelf, the bookshelf provides easy access to the books your customer has been keeping in boxes for a while..the bookshelf also makes the room look well put together and that makes the owner of the house happy…I guess you could say the drill provides happiness in the end.

All of the above helps you write your copy, create your ads and have the right images on the site.

Understanding what human beings want is one of the greatest superpowers in business.

The less you think about what you want versus what they need to see or hear to make a decision, the more creative and successful you will be.

Categories
Growth

Book review:The Hero And The Outlaw

book review the hero and the outlaw

Purpose for reading-

To understand how to use archetypes to tell better stories. I’m working on a project that involves storytelling so I picked this up.

Content- 3 out of 5.

The quality is good but the book could have been written in 100 pages.

Highlights-the authors have invented a framework that lets you understand what your brand’s story is and how to augment it.

For eg Nike=hero, Oprah Winfrey=sage, Apple=the cool guy etc

Undesirables-

My main contention is that if I didn’t need the insight i would have found the material a little too serious.

Secondly I think some of the justifications were a little too far fetched.

If you own a business and your responsibilities have to do with marketing, branding, advertising or film making, this book is useful.

Check out these book reviews as well.

1 Bloomberg on Bloomberg-Michael Bloomberg

2 Sam Walton-Made In America

3 Amancio Ortega-The Man From Zara

Categories
Growth

Words are an asset class

I was interviewed recently and the question was “what helped you grow your business?”

My response was —
I learnt how to use words to my advantage. To pack them with value and deliver it to prospects and customers.

You see, people don’t really buy products or services.They buy the words that they are told or the words they tell themselves.

Learning how to use words will pay any business owner more dividends than investing in any other asset class. Remember, words rule the world.

It’s not usually the best politician who wins the election or the best employee who gets the promotion. It’s the one who knows how to use words that wins.

Read more value packed words here

Categories
Learning

How Todd Combs Read His Way Into A Job With Warren Buffett

todd combs warren buffett read growingstartup books

He was among 165 students in a Columbia University investing class.

Combs didn’t meet Buffett that day but says, “I still remember it like it was yesterday.”

One of the students asked what he could do now to prepare for an investing career. Buffett thought for a few seconds and then reached for the stack of reports, trade publications and other papers he had brought with him.

“Read 500 pages like this every day,” said Buffett, or words to that effect. “That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.”

Remarkably, Combs began doing just that, keeping track of how many pages and what he read each day. Eventually finding and reading productive material became second nature, a habit. As he began his investing career, he would read even more, hitting 600, 750, even 1,000 pages a day.

Combs discovered that Buffett’s formula worked, giving him more knowledge that helped him with what became his primary job — seeking the truth about potential investments.

After graduating, Combs worked as a bank regulator and in the pricing department of Progressive Insurance and, five years later, he began running Castle Point Capital, a private investment fund in Greenwich, Conn., where he lived.

His road to Omaha began when he met a money manager from Australia who was going to California to see Charlie Munger, vice chairman of Berkshire and a confidant of Buffett’s. Combs remembers thinking, “I’d like to meet Charlie some day.”

Not long afterward, Combs was headed to California and called Munger’s office, figuring it was “pretty unlikely” that he would get to see Munger.

To his surprise, Munger offered to meet him at the California Club for breakfast. “I was terrified,” Combs said. He had attended two of Berkshire’s annual shareholder meetings in Omaha and knew that Munger often gave blunt assessments of people and businesses.

“But we really hit it off,” Combs said. “He’s the most warm, gentle man.”

The two talked for hours, and Munger offered to get together again. Combs quickly arranged to return to California. Eventually, Munger told him, “I really think Warren would like to meet you.”

Combs, of course, needed no persuasion and, in the fall of 2010, he was invited to Buffett’s office. He arrived at 10 a.m., met people and talked, went with Buffett for a two-hour lunch at Piccolo’s restaurant and returned to the office.

“We just talked and talked and talked,” Combs said. “I’ll never forget it. It doesn’t take a rocket scientist to know you’ve met someone very special. It’s really hard to describe.”

Eventually, Buffett began talking about his plan to hire a money manager. Combs — this is true, he insists — started thinking about another person he could recommend. But Buffett had another idea.

“He said, ‘Well, I think we’re kind of thinking of you.’ Flabbergasted would be an understatement,” Combs said.

As the stunned Combs listened, Buffett talked about compensation and suggested they both think about the offer. Combs returned home and talked with his wife, April, about the job and Omaha, then accepted Buffett’s offer.

Source:

Omaha

Interested in knowing how to grow a 7 figure business? Go here

Extra-How to read a 300 page book in 2 hours

Interested in increasing your intelligence and getting faster business results?

Check out The Dominant Force

Categories
Learning

Book Review: Bloomberg By Bloomberg

This book is the autobiography of Michael Bloomberg.

He is the founder of Bloomberg LP

According to Forbes magazine his net worth is 40.9 billion USD (2015)

Purpose: I read this book to understand what it takes to build a technology and media company that is both private and profitable.

Summary

Michael Bloomberg started out on Wall Street at Salomon Brothers selling stocks sold by large institutions.

He rises up the ranks to partner but is later demoted to the information technology department where he was up until Salomon Brothers merged with Phibro; the commodity trading firm.

Bloomberg was fired when the merger took place and according to him, he had no plans of ever leaving Salomon brothers because he was embarrassed and hurt. He ended up with a severance check of about $10 million dollars because he was a partner.

Lesson: 

Even after being told he was going to be fired, he still worked up to 12 hours a day until his final day. What I got from this was to keep doing what is right and not allow circumstances to ruffle you.

Lesson:

At the time he was fired, he had gotten a deep understanding and unique insight into two things that would help him start his own business.

He had a deep knowledge of the securities, investing and of how technology could be used to make the financial world efficient.

Many people work at places for years and do not learn enough to be exponentially more valuable and productive than before they got hired. This is a mistake.

Years ago, when I was employed by someone else, I made sure I was a sponge and studied every piece of knowledge I found valuable. Within 6 months after leaving, I had a freelance business that paid me over 4 times what I was receiving as salary from my previous employer.

Value Creation

He created a business to solve a problem he had noticed while working at Salomon brothers. He had the financial capital but most importantly he had the mental capital to create a great product.

Since he wasn’t technical, he decided to work with people who were and focused on sales.

Even though he did not have a fully operational product, he pitched Merrill Lynch and used the risk reversal strategy.

He offered to built them a product and deliver in 6 months. His offer was that they did not have to pay him if they were not satisfied with the final product.

Even on the final day of his presentation, the product was still not working properly but at least the minimum viable features were enough to get him a deal for the delivery of 22 terminals. This step of faith led to global clients including the Vatican, World Bank and every Federal Bank.

Lesson:

Build a product that works as fast as possible and launch. It may not be perfect but it should be useful and productive enough for your client to get value from it.

The Bloomberg Terminal as it is now known, is an interactive real-time system that is user friendly enough for nonspecialists. It is able to take information about different investment types — stocks, bonds, currencies — and reveal a firm’s position and show what is moving where so traders could see investment opportunities previously unseen because of too much (and too inaccessible) data.

Lesson:

Products that help people who are not specialists to achieve the same or similar results are usually welcomed.

Marketing, growth and sales 

Bloomberg built the company in the initial stages by doing sales calls and building a brand.

He changed the name from Innovative Market Systems to Bloomberg LP to leverage on his name as a brand.

Instead of growing by acquisitions, he grew the business on profits by innovating in areas such as media, news and television.

It’s interesting to note that their strategy has been so sound that for over 3 decades they hardly have any competition that has their results and reach.

Quote from Page 200:

It also encourages me to delegate and let others run parts of our organization so we can go into new areas and products. I don’t want any manager here to do the same thing for too long, and I shouldn’t either. If everything works, I get paid; if it doesn’t, I shouldn’t, and with our structure, I won’t.

Most companies, most of the time, grow and contract with the market they’re in. Management often makes the difference only at the margin. Changing executives periodically almost always improves results. No matter how entrenched the CEO is. Mythology to the contrary, no one’s irreplaceable and there are few revelations in business. The corporate change that works is evolutionary change, not revolutionary change:The quick fix, like buying a competitor or growth through acquisition, usually boosts earnings only for a short while. Corporate fixes through public relations and industry analyst “stroking” aren’t worth much either. Stock P/E ratios go with the group, which is why they call it the herd instinct.

Lessons from school:

Bloomberg mentions that at Harvard, most of the people he admired for their noble birth or admirable backgrounds never ended up doing anything remarkable with their lives.

He also mentions that Harvard brought him before classmates who were ambitious and would challenge you if you spoke without getting your facts straight. He counts this as preparing him to work on Wall Street.

I like that observation because I have been in a lot of conversations where people feel compelled to speak when they have no facts. This reminds me of Proverbs 18:13
He that gives an answer before he hears is a fool, and is brought to shame.

 What I didn’t expect to find, but did.

Media distribution

In Chapter 5, Bloomberg explains the fundamentals of how content is created an distributed. Even though he is a technology entrepreneur, he is not jaded in thinking that technology solves all problems in media distribution. Media companies still need to have great content that their audience wants to consume.

Corporate governance and management

This book is filled with gems on corporate governance and there’s even an entire chapter on Management which I found very useful in many respects.

Leadership

At the time of writing, Bloomberg wasn’t the mayor of New York yet but his opinions on important topics such as education are pretty solid.

The parts I didn’t agree with: 

I don’t think he gives good marriage advice and maybe one or two of the management tips may not be applicable to every industry.

For example, he frowns on employees starting a side business and even says…

“why is the second idea they come up with not the property of the firm paying them to work full time? Or they invest personally outside their companies. “

This is funny to me because I don’t expect to own the ideas of my employees.

It is my observation that most men are good at a few things when they give advice on things outside of business, it’s invariably wrong.

My impression about part of what he believes made him successful is hard-work. This as we know isn’t enough since there are many people working 14 to 16 hour days who are not as productive as others who work less than they do but have wisdom that produces exponential results.

Diligence in work counts but diligence without wisdom is just activity without productivity.

Interesting quote from Page 180:

The primary function of those at the top is the care and feeding of the company’s most valuable asset, its employees, including designing and administering a compensation system that encourages cooperation, rewards risk taking, and gives inducements to work — Job One for the CEO

Conclusion and closing notes

In my opinion, from what I can infer from the book, Bloomberg’s success was due to his mindset regards to how to deal with people and his boldness to do the things he believed were right.

What I found most impressive about Michael Bloomberg is how quickly he implemented ideas. Secondly, that he built a private billion dollar(by revenue) business is definitely a good reason to read this book.

Rating in relation to my reason for reading this book(see beginning of the post)

4 out of 5

Extra notes:

I have noticed that a lot of traffic that comes to Growingstartup.com is people who read my book reviews. I’m taking my wife’s advice by sharing my notes on the business books that I read.

If you have any books that you would like me to share my review on, please email me at jeff@growingstartup.com. I rarely review fiction and I usually read business books or auto/biographies that have lessons on marketing, sales, leadership and success.

Categories
Growth

How To Speed Up Your Life And Business At The Speed Of Light

business at speed of light lawrence dreams not equally
If you could move at the speed of light, every time you get to 186000 per second you would be a light year ahead of where you started. If your constant rate of speed in life was at that speed, you would probably be able to read all the books in the library of congress (all 100 and something million of them) in less than 24 hours.

Tests have been done where objects were sped up past the light barrier. What happened was that the human eye could not see them anymore. The human hand could not feel them either. When these objects were slowed back down, they were suddenly visible to the senses.

What if you could speed up your results in business? What if you could cut short the time to get things done by years and not just minutes or hours?

I’ll get back to that in a minute.

Here is an interesting quote.

“He would place this urgency that he expected the revenue in ten years to be ten million dollars a day and that every day we were slower to achieve our goals was a day of missing out on that money.”-Elon Musk

According to this book, Elon Musk said in the early stages of founding Tesla. What interests me is that most entrepreneurs I know do not aim for ten million dollars a day when they start a business.

They usually start as low as possible and only increase their vision incrementally depending on what the world tells them is a realistic goal.

I personally don’t care about being realistic. It is usually said by people who want an excuse to be mediocre.
I’d rather set an outrageous goal and draw up a plan to achieve it than be realistic. The thing about outrageous goals is that what seems high to some is little to others. The things you are praying about are things others are giving away as gifts.

I was giving a talk to some freshly minted college graduates and I told them, “The only difference between your 15 year old self and your 22 year old self is that your mind is more developed. Your height is not what defines your growth. Your real growth happened internally. Your understanding and judgement have developed.
This means if your 15 year old self had the same understanding as you do now, you would have been at least 7 years ahead of all your classmates
.
Would you like to be at least a decade ahead of all your mates?

Would you like to see the end result of an action before you even take it?

In this post I will share with you how to be at least a decade ahead of your competitors.


First the foundation:

I want you to keep this statement in your mind. “A man can only go as far as he can see with his eyes closed.”
The education of men is based on the five senses. Everything we have been taught in school or read about come by deduction.

Mankind is limited to the five senses so it has been our quest to amplify these senses. We invented binoculars to help us amplify our sight. Microphones to amplify speech. Vehicles to get our bodies to move faster and to get to places quicker.

Anything that a man cannot see, touch or feel with his senses does not exist to him. What a man does not understand, he says does not exist.
The thing about understanding is that it can be defined as the clarity of our mental images. This is why when you understand what someone is saying you may say “Oh I see, I see”.

Ephesians 1:17-19 explains that every human being is operating in darkness (ignorance) to a certain degree. For example I am more in the dark about how to coordinate outfits and keep a home than my wife is. However when it comes to things concerning how to increase sales and grow profits, I have more light on the issue than she does.

Think of your mind like an empty stadium at night with no lights on. Whenever you understand something, a floodlight comes on so you are able to walk around the stadium a little. The greater your understanding on a topic, the more floodlights come on in this mental stadium so you are able to see and go further than you did before.

The level of doubt you have in an area is the level of darkness you are operating in.

The problem most humans face is that their acquisition of light is too slow. If they had a way to move from zero to 100 percent illumination on a topic in a day, they would gladly pay for it.

Take money as an example, the amount you believe will come into your business this year is the limit your mind will try to achieve. If however I came to you today and gave you a million dollar check to be my partner on a deal, you would realize that your previous mental limit would just disappear. If Mark Zuckerberg then came and gave you 10% of his Facebook stock worth billions, your limit was change again. Let’s take this a step further.

If Bill Gates, Warren Buffett and Elon Musk were your partners in a venture, I bet that you would confidently be able to tell people that you are only a few weeks or months away from making your first billion dollars.

Why did those words seem so easy to believe?

What I just showed you were images that you can understand. The minute you read that, you saw a clear picture of a successful partnership. I’ll bet that you even felt a momentary gush of confidence.

I just took you light years ahead of everyone you know with just a few words.

The secret to moving light years ahead of everyone else is illumination.

Illumination can be defined as development, speed or light energy.

When God was creating the world, He said “Light Be!”.
He put light (illumination, development) and bottled it up into words and released them into this world. Scientists say the universe is still expanding at the speed of faster than the speed of light). God said it once and the development has never stopped.

Jesus used this principle at a wedding when he caused water to turn into wine. He disregarded the time it takes for grapes to ferment and produce wine. He used his words to bring a future result backward with light.
Whenever you see a miracle or an answer to prayer that you can’t explain, you most likely saw a variation of this law at work.

Kenneth E Hagin got an understanding of this and started saying the life of God in Him was developing his mind and intelligence. In a few days he could read an entire chapter of a history book and recite it verbatim. At the age of 80, he could remember specific dates and times of occurrences from his teenage years without memorization.

How does this apply to your business?

Whenever you understand the principles of a topic thoroughly, you receive illumination or development in that area. At this point you are not guessing. You know how to get the results you want regardless of what others say.
The area you have the most light on is the area you will excel at the most if you are willing to apply it.

I stumbled upon this truth and started listening to and reading people who had results in the areas that I desired. Unknowingly, I moved light years ahead of my present condition and could believe things most people could not. All I did was to understand and speak the revelation I received.
Even in my personal life, getting light on healing changed everything for me. I have used this to simply touch people and they have received healing for their diseased bodies.

This is important, I did not just get knowledge. I went for revelation. I went for understanding.
This is where most entrepreneurs miss it. They need help with sales so they attend one conference or read one sales book and all they get is incremental growth.

They did not seek illumination.

How do you know if you have light in a certain area?

The results you seek will be as clear to you as day. No matter what you see on the outside, you cannot disbelieve the answers you have on your insides.

The major way to get illumination is the Bible. The light in this book is spiritual not mental that is why so many people don’t know how to use it in their personal lives no matter how many times they read it. They think it is a supplementary book to their business books so their minds are darkened to it. My advice is to ask God to open up the Bible to you. Secondly, seek out people who have written anointed books on topics you need development in.

Second way to get quick development is to pick topics you need results in and make a list of books and videos(or content in general) that will give you the understanding you desire. The best books are books by people who already have results because that is proof of their light. You can also read books by authors who have done thorough research and have only presented the facts since their opinions may set you back.

Conclusion

Before I understood this simple truth I only got results incrementally. Today I can personally engineer growth in any area that is important to me. I know that immediately the light comes, the results will follow.
I found out that the most successful people have a unique understanding in areas their competitors do not. They are operating with first principles and not tactics.

The next time you see a successful person reading a book, understand that they are not accumulating words, what they are doing is imbibing speed. They are speeding up their lives, one page at a time.

The right words are containers of light. Drink from those containers and you will see results faster than others.

Categories
Learning

How to pick the right books…and finish them

How to pick the right books

Do you know people who have read a lot but have nothing to show for their knowledge?

Growing up we were told to read widely. Not many people were told to read well. This is partly the reason a lot of readers do not know how to prioritize their reading. Friends tell me all the time that they have stacks of books they have barely read and yet they are still buying more. If you don’t know how to pick the right books or how to finish your reading list before you get tempted to grab another book, this is for you.


In today’s podcast I talk about how to be a strategic reader versus a tactical reader.

#1 Strategic readers have developed an internal heuristic for picking and reading books. Tactical readers read whatever is new or available at the time.

#2 Strategic readers understand that words are pictures. They understand that a man can only go where he can see. This understanding causes strategic readers to pick books that will give them a desirable outcome.

#3 Strategic readers understand that value is more important than the number of pages in a book. They look out for the value in a book and put the book down when they have found what is useful to them. Tactical readers get to page 30, realize the book is useless but will still force themselves to read the rest so they feel they have accomplished something.

#4 Strategic readers only read authors who have thoroughly researched their material or are speaking about the results they have obtained. Tactical readers will read anything just so they can brag that they are well read. The truth however is that the best kind of reading is reading that develops the mind and produces results. The right reading material also helps the reader to become relevant to people they are sent to serve. For example I heard a lot of mean things said about people like John D. Rockefeller and Andrew Carnegie. Critics called them the robber barons. After I read their books I realized these were men who changed the lives of millions of people. Their impact affected the prosperity of entire nations for centuries. The critics were mostly unenlightened people with an opinion. Another tip on picking the right book is to remember that just because someone is successful in business does not mean they can give you advice for general living. Many people have money but are poor mentally. They may have a successful business and be terrible parents or even be beating their spouses. Remember to take the meat and leave the bones.

Conclusion

Pick books that will help you become who you desire to be. You may not be the CEO of a billion dollar empire yet but reading books about John D. Rockefeller, J.P Morgan, Henry Ford and other business titans will give you the heuristics that will help you get there. Words are containers of value. When you read or hear a person who has more than you currently have long enough, you will see the same mental images as they do. Very soon you will start making decisions like them.

After I read David Oyedepo’s Success Systems“, my financial ceiling was shattered. I saw that anyone who will dare to believe God could receive a billion dollars in a day regardless of where they lived. I now know that I should not blame doubters for their words. Their minds are groping around in the dark for things some of us see too clearly. I took the images from the mouths of people who had the results I desired and started living them. This is the reason I love reading the Bible so much. Taking God’s images and living them makes you a god over circumstances. For example, seeing that Joshua could stop the sun and that Solomon had such wisdom that he could multiply wealth changed everything for me and my business.

I also saw that people like Paul and Abraham had no consciousness of limits. This is the reason I have no fears in life. There is nothing I cannot do and nothing I cannot have. All of this came from words.

Your life is an accumulation of the words you have heard and spoken.

Why not strategically build a mental bank account of the right words?

What tips do you have for picking the right reading material?

p.s if you like what you read here, sign up for free updates and insights below.

Categories
Growth

Have you heard of mutual impoverishment?

pic-385x250

It’s a mindset where a person believes that individuals with more money than they do should feel guilty for not sharing their money. It is an unfounded entitlement mentality where a person thinks people, organizations or groups of people owe him just because he has less. I have heard people say “what is that rich guy doing with all that money?”. I say “how is that your business? How about making your own and start distributing it?”.

It is a consumer versus value creator mentality.

Even though I am a hearty giver because of my biblical beliefs, I don’t believe socialism or whatever quasi name people give it is responsible.

I have never expected the government or another person to make life better for me. The responsible man thinks of how he can make life better for others instead of looking for a great big windfall out of someone else’s pocket.

Video Recommendation
https://www.youtube.com/watch?v=st4ricWiRm4

Book Recommendation

1.

 

Buy hereOriginal Intent: The Courts, the Constitution, & Religion

2. American Entrepreneur: The Fascinating Stories of the People Who Defined Business in the United States

 

Sign up for the free newsletter for free training and insights.

Categories
Growth

Increasing Sales And Repeat Customers At A Barbershop Business

Devonte Brown has his hair cut by David McKnight in Sanford, Florida

This past weekend I visited a new barbershop with my brother in law and his son.
I usually look out for the fastest barber in the room whenever I go to a new place for a haircut.
I do this because I think of time like a currency most times.
30 minutes at the barber’s is 30 minutes that can be used to read, work, minister to someone or engage in some other activity that may be more profitable.
Time should be invested and not spent since it’s the same as spending your life.

Anyway back to the story.
This is about how to grow a barbershop business and other life lessons we take for granted.

When it was my turn I proceeded to ask the barber if he could complete my haircut in 10 minutes.
I saw my bro in law cringe a little because he didn’t want us to offend the guy.

The barber(let’s call him Kenny) said he didn’t want to rush it so I sat down anyway and hoped it would take about 20 minutes.
That was terribly presumptuous of me. Lol

In between barbershop banter, charging a clients phone, eating chips(Kenny did not me) and receiving a pretty good haircut, I observed the other barbers in the room and noticed they were simply giving haircuts and letting the clients leave without taking any details to follow up later with other value added services.

After my haircut, Kenny thanked us, took our money and that was it.
Since I teach people how to start and grow businesses I’ll share what I think Kenny and his other mates could have done to increase their revenue.

1. Customer data
My bro in law has been to that barbershop many times with his son but no one knows their details.
Kenny should have taken down our numbers or email addresses.
With these details I would call, text or email the a link to my professional Twitter page or blog where he shares insights on personal grooming, style or creating a personal brand as a young black man.

I say this because Kenny is not just in the haircut business.
He is in the personal grooming, style and image management business.
The more he acts as an expert in these areas, the more credibility he will have.

2. Value Creation And Marketing

I would call or email or text the client every two weeks with facial and skincare tips as well as a reminder to come by the barbershop since I’m sure they may need a shave or haircut soon.
I would recommend(and sell) products such as shaving gels and other skincare products to the client.

Since in this case my brother in law visits this barbershop with his son, I would create Father/Mother and Son packages that cater to parents who bring their sons to the shop.

I would also collaborate with service providers whose services would appeal to young boys.
I may even go as far as selling Star Wars, Pokemon or whatever merchandise these parents usually buy for their sons.

Conclusion

Having the skills to cut hair, build a bridge, write code or whatever gift you are trained in is not enough.
In a barbershop, what determines success in the long run is not the skill alone but the value the barber provides.
The barber who talks to you and advises you on what to do to have healthy hair or skin is ten times more valuable than the one who just cuts your hair.

The barber whose goal is to have the happiest customers will find out which of them prefer longer or shorter times in his chair and will tailor his services accordingly.

Value is only value when it benefits the receiver.

By the way, Kenny spent about 50 minutes on my hair that day.

P.S Here are some Advanced strategies for growing a business.

Book Recommendation: Get it The Ultimate Sales Machine

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