The other day I was invited for an interview at NTV AM Live, one of the leading media channels in East Africa, and The Interviewer, Ken Mijungu remarked, you sound like you have this money thing down, Frida and I laughed because I remembered how I have been on a journey to ensure my company makes a profit for a couple of years now!You see, for a long time, we made money from corporate training which was great but a little like having a business and side hustle. We had a few contracts that were sufficient to meet our obligations. The money was great but my purpose and passion is supporting people to create a life and work they love by turning their passion into profit. The problem was the people I served were not always able to pay or so I thought. During the last couple of years, I have been on a path to discover why small businesses are often cash strapped including myself.
It has been a time of discovery, prayer and learning. I stepped back to really find out what was going on and I discovered we were cash strapped because of:
- Inconsistent lead generation. We relied on referrals which were inconsistent and unpredictable. Lack of inconsistent leads means lack of paying clients and eventually cash constraints. Nothing happens until a sale is made and no sales means no cash.
- Inadequate conversions. For a long time subscribed to the philosophy that new clients come from word of mouth and referrals. And indeed they do, however, you never know when the next word of mouth or referral will come and eventually turn into a paying client. So I discovered, referrals are great but are unpredictable and can not generate adequate cash flow.
- Inadequate Transactions. Transactions from individuals who wanted to turn their passion into profit were not adequate to generate the cash flow required, hence the side hustle of corporate training. I was spending more time figuring out a paying model from doing what I love and enjoy then actually doing it. I remember telling God, if my passion can’t turn into profit then we need to change the name of my company and move. I remember asking God for wisdom and reminding Him of Isa 48:17 which says He will lead me in the way to go and teach me how to profit! The rest is history…..but before the history, here are two more reasons why we were cash strapped!
- Poor Pricing. For a long time it has been difficult to peg a suitable price for our services. When we did events, the price people were willing to pay could barely pay for the event. When we did classes, there were cheaper classes than us with very similar content. So I invested in a sales coach and a marketing coach! And that is when the light bulb went on. Sales is totally separate from marketing and how you market affects the sales you will get. I realized we have been selling all these years with little or no marketing. In marketing I discovered, we had no market dominating position. Hence the discounting nightmare.Now we have 4 pricing strategies that ensure we are competitive and profitable.
- Inappropriate Business Model. Our business model was not sustainable because it had many pieces that required cash and the target audience was not able to afford the final product. Defining our market dominating position was the game changer! Many business owners do not have a focus and as a result make little or no profit. And the way they fix it is starting another business. I am glad, God stopped me on my track.
And this is how the 5 Step Profit Formula (5SPF) came about. it is designed to activate our profit and yours. Join the Founders Conversation on December 21st, 2018 for an opportunity to discover how you too can ACTIVATE YOUR PROFIT IN 2019. You will listen to some case studies and make an informed decision to activate your 2019 profit. You also get a chance to see how the 5SPF works. I still have a few Barclays Bank scholarship for 3 months to help you ACTIVATE YOUR PROFIT in 2019 and Beyond and it might just be your lucky day!
Join the conversation on Friday 21st December at Barclays Bank Premier Center and Activate your 2019 Profit!
EVENT IS FREE BUT REGISTRATION IS REQUIRED VIA THIS LINK.
Join me and let us ACTIVATE 2019 PROFIT NOW!