by Adam Litster | Oct 28, 2024 | Profit First, VPS, Entrepreneurship Newsletter
In this edition:
- Refining is all about making small, meaningful adjustments that show your top customers you “get” them.
- When you fine-tune your products, services, or customer experience to reflect what your best customers care about most, you make your business even harder to resist.
- With just a few thoughtful changes, you can boost customer loyalty and keep your high-value clients coming back for more.
In recent editions, we’ve been exploring the S.U.R.G.E. process, a method to grow your business by connecting with your top customers in powerful, targeted ways. Each letter in S.U.R.G.E. represents a step in the process. Here’s a summary of topics covered in the last couple of weeks, with links to the related articles:
Now we’re at R for Refine. This step is about taking what we’ve learned and making thoughtful adjustments to improve the experience for those top customers. Even if you’re just joining us now, this edition will give you actionable ways to build a stronger, more customer-focused business by refining the details that matter most.
What Does “Refine” Mean for Your Business?
Refining your business is about tailoring it to fit your top customers better. Think of it as fine-tuning your approach, using what you know about your most valued customers’ preferences, challenges, and values. The goal is to strengthen customer loyalty and keep them coming back, while also appealing to new customers who fit the same mold.
Here are a few core areas where refining can make a big difference:
- Products and Services: This is about understanding what your top customers value most in your offerings. Are there features or customizations they would appreciate? Even small product adjustments can show your customers you’re tuned into their needs.
- Customer Experience: Look at the experience from your customers’ perspectives. Are there points in the buying or service journey that could be smoother? Improving response time, simplifying the ordering process, or streamlining customer service can make a noticeable impact.
- Pricing and Payment Options: If you’ve noticed that your top customers prefer certain price ranges or payment flexibility, consider adjusting your options. This could mean anything from offering payment plans to introducing loyalty rewards.
- Marketing and Messaging: Based on your top customers’ values, adjust your messaging to emphasize what resonates with them. This builds a stronger emotional connection and makes your brand feel relevant to the people who matter most.
Steps to Refine Your Business for Your Top Customers
Here’s a simple process to help you refine in a way that’s intentional, manageable, and impactful.
- Get Feedback from Your Top Customers
- Whether it’s through casual conversations, feedback forms, or CRM data, gather insights from your top customers to pinpoint what they love and where they see room for improvement.
- Look for recurring themes, like requests for specific features or feedback about service touchpoints.
- Prioritize Small, High-Impact Changes
- Not every improvement has to be massive. Sometimes, it’s the little things that matter most—like faster service responses, clear instructions, or product packaging that reflects your brand’s personality.
- Start with changes that directly address the top needs of your best customers, especially if those needs align with your business goals.
- Test and Get More Feedback
- Try testing any larger changes on a small scale first. Offer a new feature to a select group of customers, for example.
- Gather feedback and use it to fine-tune the offering before rolling it out to everyone.
- Focus on Value Adds
- Look for small, valuable “extras” that make a difference, like product tutorials, extended support, or surprise discounts for loyal customers. It’s the little perks that can go a long way in strengthening relationships with your best clients.
- Measure Results and Keep Refining
- Track customer engagement, repeat purchases, or feedback to see how your refinements are performing. Refinement is an ongoing process; adjust as you learn what resonates most with your high-value customers.
What’s Next?
“Refine” is about building deeper relationships with your top customers by making your business fit their needs more closely. These tweaks set the foundation for the next stage of S.U.R.G.E., Gather, where you’ll use what you know about your top customers to expand your reach in the places they congregate.
by Adam Litster | Oct 18, 2024 | VPS, Entrepreneurship Newsletter, Profit First
| Finding Your Top Customers: The Key to Unlocking Market Opportunities |
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| In this edition:
• A quick recap of the S.U.R.G.E. process and why it matters.
• What the “S” in S.U.R.G.E. stands for and how it can help your business grow.
• Practical steps for identifying your top customers and understanding where they hang out.
• Tips on how to engage with your customers in those key places.
As I’ve been diving deeper into Surge by Mike Michalowicz, I’m learning how the businesses that thrive are the ones that recognize opportunities early and know how to ride the wave. It’s an exciting concept that I want to share with you. Today, I’m breaking down the first step of the S.U.R.G.E. process—Separate. We’ll talk about how to find your best customers, figure out where they hang out, and how you can use that info to grow your business.
A Quick Recap of the S.U.R.G.E. Process
We’ve identified a five-step process for spotting and riding the waves of market demand. Here’s a quick rundown of what each step means:
1. Separate: Identify your top customers and study where they gather.
2. Unify: Look for what your top customers have in common so you can reach them more effectively.
3. Refine: Perfect your product or service based on what these customers need most.
4. Gather: Build your marketing strategy around the places your customers gather.
5. Expand: Use what you’ve learned to scale up and grow your business with confidence.
Today, I want to zero in on the first step—Separate—and show you how identifying your top customers and understanding where they congregate can set the foundation for everything else.
What Does Separate Mean?
The Separate step is all about getting crystal clear on who your top customers are. These are the people who love what you do, value your service, and keep coming back for more. But knowing who they are is just the beginning. You also need to find out where they spend their time—both online and in person—so you can meet them where they are and engage with them more effectively.
How to Identify Your Top Customers
Here’s a simple process you can use to figure out who your top customers are:
• List Your Customers by Revenue: Start by creating a list of your customers ranked by the total revenue they’ve brought in. Focus on the top 10-20 customers. This is likely where you’ll find your best customers—those who consistently come back and invest in what you offer. Now, take that list and put a smiley face  next to the clients who make you excited to do what you do—the ones who appreciate you, align with your values, and are a joy to work with. Then, add a frowny face  next to the clients who make you cringe every time you interact with them (i.e. the cringe-worthy clients). Your true top customers are the ones with both the highest revenue and a smiley face!
• Spot the Patterns: Take a closer look at these top customers. What do they have in common? Are they from the same industry, location, or do they have similar challenges? Understanding the traits of your top customers will help you recognize others like them.
How to Find Congregation Points
Once you’ve figured out who your top customers are, the next step is finding out where they spend their time. This will help you engage with them in the right places. Here are some tips for tracking down these congregation points:
1. Check Out Online Communities: Take a look at the forums, social media groups, and industry-specific platforms where your top customers hang out. Facebook groups, LinkedIn, Reddit, and niche forums are great places to start.
2. Look for Industry Events: If your top customers are in a specific industry, chances are they attend certain conferences, trade shows, or webinars. These are prime spots to connect with them and learn more about what matters to them.
3. Follow Their Influencers: What blogs, podcasts, or influencers are your top customers following? Engaging with these platforms is a great way to position yourself as a solution provider.
4. Use Monitoring Tools: Tools like Google Trends, social listening software, or BuzzSumo can help you keep an eye on what your customers are talking about and where those conversations are happening.
Action Steps for You
• Start by identifying your top customers using the revenue and smiley-face method.
• Find out where your best customers gather—both online and in person.
• Get involved in those communities by providing value, offering solutions, and building relationships.
• Keep track of these congregation points and make sure you’re always showing up where your customers are.
What’s Next?
In future editions, we’ll keep digging into more of these strategies that can help you grow your business. But for now, spend a little time identifying your top customers and discovering where they spend their time. This foundation will set you up for success as we continue to explore ways to catch and ride the waves of market demand!
Adam Litster
Certified Profit First Professional and Pumpkin Plan Strategist
(816) 500-5779 – Option 2
adam@betterbizinfo.com
Visit Our Website! |
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by Adam Litster | Oct 18, 2024 | Profit First, VPS, Entrepreneurship Newsletter
Hello all! In this edition:
• What is a market surge, and why is it important for business growth?
• How to identify emerging trends in your industry.
• The power of niching down to capitalize on growing demand.
• A preview of future editions, where we’ll explore how to apply these principles to our own businesses.
As business owners, we have often heard that it is extremely important to stay ahead of the curve. So why does it feel like most of the time that we are barely keeping up with the curve, if that? Lately, I’ve been diving into Surge by Mike Michalowicz, a book that teaches entrepreneurs how to spot and ride market trends for explosive growth. I’m still studying and applying the concepts myself, but the ideas resonate deeply with what we all strive for-momentum and growth that are sustainable and profitable. Today, I want to share some of the key takeaways that have made me think differently about how we approach opportunity.
What Is a Surge?
A surge is a wave of demand or opportunity in the market that, if timed correctly, can be the difference between slow growth and fast-tracking your business to the next level. The key is recognizing the signs of an emerging trend before it becomes saturated, so you can position your business to ride the wave, not just catch the tail end of it.
How Do You Identify a Surge?
It starts with paying close attention to the market. What new problems are your customers facing? What innovations are they excited about? The companies that can solve these problems first are often the ones that capitalize on a surge. It’s about narrowing your focus and diving deep into a niche that’s experiencing this wave of momentum.
By answering these questions, we will move closer to finding “buy-ready” clients, those who are already in the market and actively searching for a solution. If you can identify where demand is growing, you can meet these customers right where they are. This is a powerful way to position yourself at the forefront of a trend. I will dive deeper into how to find buy-ready clients in future editions!
Why Niching Down Matters
Also key in finding and riding the market wave is niching down. Niching makes you more competitive during a surge. By focusing on a smaller, specialized market that’s gaining traction, you stand out. Instead of trying to appeal to everyone, you target the customers who are already feeling the pressure of the problem your product or service solves. This allows you to carve out a space where you can lead, even as more competitors jump on the wave later.
What’s Next?
In future editions, I’ll dig deeper into how we can use these principles in our businesses. From finding our own niche surge to targeting buy-ready clients, the potential to capitalize on market waves is there, it’s just a matter of positioning ourselves effectively.
For now, I encourage you to start paying closer attention to shifts in your industry. What new challenges are emerging? What customer demands seem to be on the rise? These are the early signals of a surge, and spotting them early can put you in a prime position to catch the wave. If you are interested in digging into these topics with me, I’d also recommend checking out the book on Amazon!
Until next time, keep an eye on the horizon!
Click here to schedule a call with us!
Thanks for reading and have a great weekend!
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Adam Litster
Certified Profit First Professional and Pumpkin Plan Strategist
(816) 500-5779
adam@betterbizinfo.com
Visit our website
Click here for my calendar to schedule a call or meeting
by Adam Litster | Oct 4, 2024 | Profit First, VPS, Entrepreneurship Newsletter
Hey there, entrepreneurs!
If you’ve been paying attention to the headlines this week, you probably heard about the dockworkers’ strike that nearly brought our supply chain to its knees. While it was resolved fairly quickly, the scare is enough to keep many business owners up at night. I personally had several conversations with my wife about what we would do if all the prices went up, how our budget would be impacted, etc. It doesn’t take much—a single disruption like this—and suddenly you’re facing price increases that ripple across your entire operation and potentially put your personal finances in jeopardy also. It’s more important than ever to put your business in the most healthy position possible so you can weather any unexpected storms.
Before we dive in, here’s what you can expect from this article:
- How Profit First creates a financial cushion to absorb unexpected price hikes.
- Why sudden price increases or supply shortages don’t have to derail your business or personal life.
- Strategies for handling rising costs without immediately passing them on to your customers.
- A real-world example of how a business owner successfully navigated rising costs using Profit First.
- Actionable steps to ensure your business is ready for the next disruption.
Now let’s dig into how you can stay profitable, even when the world around you seems unpredictable.
Profit First: Building a Buffer for Your Business
If you’re already using Profit First, you know that this system is about prioritizing profitability from day one. It’s not just a tool to track your money—it’s a strategic approach and mindset that allows you to prepare for the unexpected and build a buffer against rising costs, like the ones we’ve seen threatened by this week’s strike.
Instead of reacting to price increases after they’ve hit, you’re already ahead of the game. You’ve allocated a percentage of every dollar earned to profit, so when supply chain costs rise or inflation sneaks in, you’re not scrambling to cover your margins. You’ve built in a cushion—peace of mind that lets you focus on growth, not survival.
Handling Price Increases with Confidence
We know that, in the economic environment we live in, price increases are inevitable. Even disregarding the recent increases in strikes and natural disasters, we are facing increased regulations, political turmoil, and military conflicts around the world. But with Profit First, you’re not caught off guard. You’re not forced to pass on the costs to your customers right away or slash your own income just to keep things running.
With a well-thought-out Profit First strategy in place, you can evaluate the situation calmly. Can you absorb the extra costs? Can you tweak your allocations slightly for a month or two without putting your business in jeopardy? Maybe you can negotiate better terms with your suppliers because you’ve built a stronger financial foundation. These are all questions that are only possible because you’ve made profitability a priority. Further, because you are prioritizing profitability, your business is providing you with the compensation you need to provide for yourself and your family AND still have some left over for profit/emergencies! You are in a position where you have the ability to act rather than react to outside stimuli or pressure, without worrying that you will have to sacrifice your own personal income to keep your business afloat.
Profit First in Action
Take the real world example of a pizza restaurant which successfully weathered the COVID-19 pandemic because they used Profit First. I read about this business in an article, which explained that despite the pandemic causing numerous challenges for the restaurant industry, the Profit First methodology allowed the owner to continue to make allocations and pay his bills throughout the pandemic, despite the fact that his doors were closed for months. By maintaining financial discipline, he could keep the restaurant operating while others around him were closing. This method gave him the ability to weather the financial storm by focusing on profitability from the start rather than waiting until year-end to assess his financial health.
This is the kind of financial flexibility Profit First gives you. It’s not just about profitability; it’s about control and confidence in the health of your business. And as we’ve seen with this week’s strike, having that control is priceless.
What You Can Do Right Now
If you haven’t read and implemented Profit First yet, now is the time. Here’s a link to get it on Amazon (I believe there is going to be a promotion on Amazon later this month!). The dockworkers’ strike is just a reminder that there will always be external factors beyond your control. But we can control how we manage our money. Profit First gives you the tools to handle the unpredictable with confidence.
And if you’re already using Profit First, take a moment to revisit your allocations. Are they set up to help you weather the next supply chain disruption or cost increase? If not, it might be time to adjust.
Bill Litster and I are experts in cash flow management. In 2022, our firm was recognized as the Profit First Professional Firm of the Year. All this is to say that if you need help or would like someone to guide you through improving your business health, we’ve got your back. Click here to schedule a call with us!
We would like to provide as much value as possible through these weekly posts. If you have any feedback or recommendations on how we can do better, or are struggling with something in your business that is keeping you up at night, let us know!
Thanks for reading and have a great weekend!
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Adam Litster
Certified Profit First Professional and Pumpkin Plan Strategist
(816) 500-5779
adam@betterbizinfo.com
Visit our website
Click here for my calendar to schedule a call or meeting
by Adam Litster | Sep 27, 2024 | Profit First, VPS, Entrepreneurship Newsletter
Welcome to our weekly entrepreneur newsletter! Is there anything in your business that is keeping you up at night? Let us know! We’d love to help and provide our advice/experience in future newsletters.
Main takeaways for today:
- Systematization drives growth without the added stress.
- Document processes so the business runs smoothly without you.
- Delegate and automate to streamline routine tasks.
- Focus systems on your most profitable clients and services.
- Refine systems regularly to keep pace with business growth.
Scaling a business should bring freedom, not more work. But if you’re like most business owners, it can feel like growth just means longer hours and more stress. Being transparent, we are dealing with the exact same issue at our firm. We want to grow, but being in a service industry often means we “trade hours for dollars”. What we have learned (and are working to apply ourselves also!) is that we don’t have to do it all ourselves. When we build the right systems, we can scale without sacrificing our time or sanity.
Here’s how to make that happen:
1. Document repetitive processes
If you’re handling repetitive tasks yourself, you may be working harder than you need to. Every process that happens regularly—like billing, scheduling, or client onboarding should be written down. This way, any member of your team can handle it, giving you room to focus on growth, not the day-to-day grind.
Example: Our firm does bookkeeping for a handful of clients. We found recently that every time we bring on a new bookkeeping staff, we spend a large amount of time walking them through each client and training them on all the many steps involved in managing their books. We are now going through the process of documenting these processes in Standard Operating Procedures (SOP’s) for each client so that any new staff can easily reference the document and skip the hours of training. This will free us up to focus on serving our other clients and growing the business!
2. Automate and Delegate
You don’t need to be involved in every little thing. Once you’ve documented a process, take a step back and ask, “Does this need a human touch?” Many tasks can be automated—like sending reminders or tracking expenses. Those that can’t be automated, consider if you can delegate them to your team.
Example: Sales can take up a lot of time for business owners. We know this is a crucial part of growing the business, but we often spend a lot of our time vetting and emailing incoming leads, setting up calls, etc. And as our business grows, this would only take up more of our time. Recently, we invested in a CRM and set up automated sequences so that when new leads come in, the system automatically sends out a tailored email to them with links to set up a call. When they set up the call, the system sends scheduled reminders and follow-ups. The process that previously took several hours each month is done automatically and has had an amazing impact on our business!
3. Build Systems Around Your Best Clients
Not all clients are equal. If you’re spending time and resources on low-value customers, your systems are helping the wrong part of your business. Focus on creating systems that help serve your best clients, the ones who bring in the most revenue and truly align with your vision. You will find that your ability to provide value to these clients increases, they are happier with you, and you become much more attractive to potential clients (not to mention you are now much more profitable by spending less time providing more value!)
4. Continuously Refine Your Systems
Your systems should grow alongside your business. As you expand, make it a priority to regularly assess and refine your processes. Whether it’s streamlining something further or automating new steps, evolving your systems helps you stay efficient and maximize profitability as you scale.
The key to scaling without losing control or becoming burnt out is having the right systems in place. Systematizing doesn’t just reduce stress, it gives you the freedom to step back, work on your business rather than in it, and pursue the growth you want. You will be actively leading the business in the direction you envisioned when you first opened the doors!
We can help you build the processes that drive growth without sacrificing your time or quality of life. If you’re ready to systematize your business and prepare your business to scale effectively, reach out to us! We’d love to hear your ideas and provide our expertise! Click here to schedule a call with us!
Thanks for reading and have a great weekend!
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Adam Litster
Certified Profit First Professional and Pumpkin Plan Strategist
(816) 500-5779
adam@betterbizinfo.com
Visit our website
Click here for my calendar to schedule a call or meeting
