“Entrepreneurs Stink at Optimizing!”

Posted on by in Business, Entreprenuership, Marketing, Operations, Planning, Small Business, Strategy

Over the past weekend I was listening to a conversation betweenHallman-Scott-Hallman
Scott Hallman (from the Small Business Growth Club
and Eben Pagan (from Altitude) when Scott made the comment I listed above, “Entrepreneurs stink at optimizing!

When you hear that, how do you feel? Do you nod your head and say, “Yup! He’s on to something there.” Or do you tighten your shoulders and think, “Hey, wait a second! That’s not fair. I’m good at optimizing!”

Well, regardless of how you feel or think about Scott’s statement, I think he’s right. By and large, most of us entrepreneurs stink at optimizing. Why? For two main reasons.

1. Most of us spend most of our time focused on attracting more new clients–far more than we do on optimizing the revenue we could get from our existing clients.

2. Most of us don’t document and create systems, which means we have no measurements in place–and therefore no steps we can test to optimize.

In light of this, whenever Scott works with a client, the first thing he does is focus on #1, how can he help that company/business to optimize the amount of revenue they could get from their existing clients–rather than how he can help them attract more new clients. Interesting, isn’t it?

Note: Scott is a two-time Inc. 500 entrepreneur, which means his ideas are at least worth listening to/considering.

Reflecting back on your own business or company, how are you doing at optimizing the amount of revenue you’re getting from your existing customers/clients?

For example,
Do you have systems in place that you execute every time to optimize revenue from customers? For example, do you ask each and every customer, at the point of purchase, if they’d like your upsell product and/or service? Do you know that your staff are asking every time? For example, if they’re only asking 40% of the time, you’re losing 60% of your potential upsell revenue. And are you testing the upsell offers and language? Etc.

So if you’re like most entrepreneurs, you may want to consider Scott’s encouragement to focus more time on optimizing the revenue you could be getting from your current customer base. In fact, this would make a great staff team discussion. Instead of asking this week, “How can we attract more new customers?” why don’t you brainstorm, “How can we better optimize the revenue we’re getting from our current customers?” You may be pleasantly surprised by what comes out of that conversation.

To your accelerated success!

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One Response to ““Entrepreneurs Stink at Optimizing!””

  1. Paul Simister 25 February 2009 at 7:42 pm #

    I held a webinar in January with Scott and it was very well received.
    The Small Business Growth Club is highly recommended. It is packed with great, step by step how to implement guidance.

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