The 2 Ingredients Needed for a Successful Service Based Business
Episode 656: Show Notes
Coming your way today is a mix of math and anticipatory mindset work! (These two things we do a lot of with our clients in the Incubator).
It’s all through the lens of, “This is what you actually want.” We’re going to lay out the future a little bit for you so that you can start to understand what’s coming and that you can stop stressing about it! We’re seeing hundreds (if not thousands) of people who are constantly apologizing for doing things they don’t want to do. After today, we want you to understand why you shouldn’t be feeling bad about things like not posting consistently on social media, and what you should be putting energy into instead!
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Your Social Media Following Is NOT a Measure of Success
Of course, having an audience can definitely help your business (if you’re marketing toward the right audience). But, more often than not, we’ve seen people go from zero to 6 figures with no social media presence at all! We’ve seen people maintain agencies in the $1.5 million space who have a few hundred followers and are minimally active. And by minimally active, we mean literally just posting pictures of their children’s birthday parties, not even portfolio work. This is probably going to come as a bit of a shock but your social media following is not correlated with the success of your business or how much money you can generate.
Relationship Building and Niching Down
Whether you’re trying to grow a lifestyle business or something bigger, two of the keys to making it a success in the long term are relationship building and niching down. If you can figure out a way to nurture and harvest relationships in a way that works for you, and you have a product or service that solves a very particular problem in a way that you can articulate well, then you are well on your way to success. Often, when people start a business, they will say yes to anything and everything. That’s fine at the beginning but as painful as it may be to cut clients off, the shedding process is so important if you want to scale your business.
Reframing Your Mindset About Being a “Small” Business
This episode serves as permission to let go of the things that you think you need to be doing and focus on what’s actually important. Other people will tell you that if you don’t prioritize growing your social media presence then you are choosing to stay small and you’ll never be successful that way. That couldn’t be further from the truth. Technically, most of us will only ever be a micro-business. The definition of a small business is one that ranges from 1 million to over 40 million with the employment of 100 to 1500 employees. So, we’re a micro-business but we’re making the big bucks. What does that tell us about what size really means? Absolutely nothing!
Less Really Can Be More
If you’re looking at a digital company that is selling products at a price point of $500 or less and you compare that to a service-based business that is pricing their services at $5000 per client, that means that the service provider needs 10x fewer people to make use of their services to make the same amount of money as the digital company. And that’s without taking conversions into account. The average conversion rate for a digital product is in the 1-2% range, which means you’ll need a list of 100 000 people to generate 1000 sales. Creating that kind of audience takes a lot of time, money, and energy! As a service-based business, you can convert up to 85% of the leads that are coming in the door, which means you need far less leads!
Want to take a look at the real math you need to know in your business? Send us a DM on Instagram and let’s chat.
Quote This
You don’t need a massive audience or a massive number of sales to hit your goals and be successful.
Highlights
Your Social Media Following Is NOT a Measure of Success. [0:08:05.1]
Relationship Building and Niching Down. [0:10:21.1]
Reframing Your Mindset About Being a “Small” Business. [0:16:27.1]
Less Really Can Be More. [0:21:26.1]
ON TODAY’S SHOW
Abagail & Emylee
The Strategy Hour Podcast
We help overwhelmed and creative entrepreneurs break down their Oprah-sized dreams to create a functioning command center to tame the chaos of their business. Basically, we think you’re totally bomb diggity, we’re about to uplevel the shiz out of your business.
KEY TOPICS
Social Media, Mindset, Relationships, Niching Down, Small Business, Micro Business, Conversions
