The first skill: product innovation
There are 2 types of businesses, one that sells a product and one that sells a service. Any service will automatically have limited earning potential because it relies on time and time has limitations. You must figure out to to disconnect your wealth generation from time. Therefore product sales are preferred as there are few limitations, time usually isn’t one of them (unless you are waiting on production or supply chain issues). I can sell 1 or 100 items in the same amount of time (unless it’s 100 ice cream cones that I scoop)!
When creating a product, it must be valued by the marketplace, not by me! The marketplace has an appetite for it. We typically don’t ask the marketplace for what they are looking for, we observe the marketplace. Performing a market analysis can be helpful in exploring what the marketplace may be interested in.
3 necessary qualities for product innovation
1) Desirability: the marketplace is desiring, not what I am desiring for the marketplace! Don’t write your life story and expect that people care and that they want to read about it! The product must have value. Value is created through various means.
Desirability is created through values in 3 ways:
* Past perceived voids create present pursued values: if you grew up without something, that you a always desired, you fill it as soon as you can.
* Present perceived virtues create present pursued values. When I perceive something as good right now, I am going to pursue it.
* Future pursued visions: vision of what the accomplishment might result in. Getting a college degree we may believe will result in making a lot of money.
2) Measurable: When they buy your product there must be a measurable difference between before the product and after the product. The greater the transformation, the more you can charge.
3) Statable: You must be able to state very clearly and succinctly in a sentence what you do.
The second skill: revenue generation
Ask yourself what you think about selling? Then notice how you respond to someone selling you something. Your perception of sales will color your ability to sell.
There are 3 concepts within revenue generation and selling.
1) Promotion
Advertising: paying someone else to get your message to others. Someone with an audience that they can get to pay attention to you.
Preferably, Direct Response Advertising. Pay for the ad to get a direct response from the reader, or listener. In hopes that it ends up paying for the cost of the advertising; called a Self Liquidating Offer SLO.
The purpose of making a sale is to create a customer, not to make money, that is secondary.
Branding: A brand is a name that reminds you of a story! Create a name that is linked to you. It can also elevate who you are and your business.
Fulfilling: Doing what you say you’re going to do. Following through with what your ad said you were going to do. Keeping your word!
2) Marketing
Retrieving information FROM your customer, not necessarily to your customer. Collecting information. Creating databases, e-mail news recipients.
3) Selling
Getting really proficient at describing the payoff of the offer so people want to buy it. How do they want to look, feel, be when they buy your “thing”. Turning their pain into pleasure/positive.
The third skill: asset allocation
1) Pricing
This needs to be your unique price not based on your competition.
2) Payment processing
Accept credit cards no matter what! Cash is out! And, set up monthly payment so invoicing isn’t necessary every month. Avoid using PAYPAL! There are countless issues that occur!
For large transactions, utilize wire transfers to avoid challenges with banks.
3) Payment collecting
If you sell a product that is financed, you never want the payments to go longer than the agreed upon purchase.
In Conclusion
The day to day processes require attention and the result can be an outstanding return. Get the basics down and the rest of the experience can be automated. Start and refine these steps and teach them to your staff. Get everyone within your organization to millionaire status! If you want to brainstorm your process, call me for a free 15 minute consultation @ 440-212-4987.