I Confronted a Stranger With a Failing Business…

Summary

• I often talk to entrepreneurs who are in tight spots financially. If you're in a similar situation, there's hope through restructuring your business to maximize profitability.
• One strategy is to focus on the business units that make money. In this situation, the services offered were the only profitable part, bringing in $131,000 in revenue with a small profit margin.
• For customer acquisition, you have to identify where your most efficient leads come from. Here, even though the main focus was YouTube, most sales came from Instagram DMs. Emphasize and optimize the channels that bring in revenue.
• Use calls to action within content, like YouTube videos, but ensure they're directing traffic to the platforms that yield results, like Instagram in this instance.
• For pricing services, aim to sell based on outcomes rather than hourly rates. This can align incentives with clients and improve satisfaction. For instance, consider charging a package fee for a particular legal outcome.
• If resources are being stretched across several business ventures that aren't profitable, it might be beneficial to shut them down or re-evaluate their worth. Focus all efforts on the profitable section of your business for immediate improvement.
• When it comes to selling, preliminary qualification of clients is important. Determine their income or potential to ensure your service is affordable for them and worthwhile for your business.
• Increasing prices is a common step for businesses providing valuable services. It might seem daunting, but customers often perceive higher price points as higher value.
• Consider the lifetime value of educational content. Even if not profitable directly, it might serve as an excellent nurturing tool for future high-value services.
• Personal engagement with new followers on social media can turn them into leads. Simply ask them if they're interested in help or just there for content, and follow up accordingly.
• Utilize online platforms optimally. In this case, switching from Kajabi to a more community-active platform like School could drive engagement.
• Make sure to constantly review and re-align business strategies to ensure they support long-term goals effectively, such as profitability and growth.
• Finally, tether speaking engagements and other distractions to tangible value. If you're invited to speak, ensure the opportunity either pays for your usual business efforts or doesn't detract from essential operational focus.

These steps will not only make your business solid but will also set it on a path to growth and profitability. Focus is key, and sometimes doing less is more effective.

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How To Take Action

I would suggest focusing first on the business units making money. For example, if services are profitable, double down on that. Look at which parts of your business are pulling in money and concentrate efforts there.

A good way of optimizing your marketing is to focus on the channels where your leads are most responsive. If your sales are coming from Instagram DMs, push more traffic there from other platforms, like YouTube.

Consider restructuring your pricing from charging hourly rates to charging based on outcomes. This aligns your incentives with your clients and adds value to your services, which can give you room to increase prices.

If any parts of your business, like side projects or ventures, are dragging down profits, think about shutting them down or reallocating resources. Clear focus will drive more profits in the immediate term.

When engaging with potential clients on social media, actively qualify them. Look for their ability to pay and if they need your service now. For anyone who engages on platforms like Instagram, ask if they’re here for content or want help—turn those who want help into leads.

Remember to regularly revisit and realign your strategies to ensure they meet your long-term goals. This includes understanding when to increase prices and tying additional efforts like speaking engagements directly to business value.

Implement these strategies to not only stabilize but grow your business more effectively. Focus on simplicity and doing more of what already works to drive your success.

Quotes by Alex Hormozi

> #### "The good news is there's lots of room for improvement"
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>  *- Alex Hormozi*



> #### "I actually think that you'll be able to make significantly more money pretty quickly"
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>  *- Alex Hormozi*



> #### "You can't help people if you're broke"
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>  *- Alex Hormozi*



> #### "What do you want to have happen? The thing that we need is to be profitable"
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>  *- Alex Hormozi*



> #### "Let's just push everyone to DM"
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>  *- Alex Hormozi*