Ultimate Business Knowledge

This will include- a. Business Model, b. Marketing, c. Management & Leadership, d. Strategic Planning, e. Finance/Accounting, f. Branding

a. Business Model- Buy for a penny sell for a dollar and is sold consistently by the same customers due to its uniqueness

This model focuses on low-cost acquisition, adding significant markup while offering a unique product that drives customer loyalty and repeat purchases, creating a profitable model.

a2. Business Model- Foundational Business Startup Questions

-(Pain) Do they have a desperate need for your product or service(Health, Wealth ,Relationships)

-Is the market growing?

-Do they have high purchasing power?

-Who is the target audience?

-What skill or service do you have personal experience or talent in?

-What are the Competition Dynamics?

-Are they easy to find or Access?(Channels,Groups, and Communities)

a3. Business Model- Make people an offer so good they would feel stupid saying no

This is about creating an irresistible value proposition, where the product/service offers such value or cost savings that it becomes an easy decision for the customer.

Ex: Selling a Lamborghini for $1000

a4. Business Model- Make sure LTGP-CAC ratio is Greater than a 3:1

Lifetime Gross Profit (LTGP) should be at least 3x the Customer Acquisition Cost (CAC), ensuring long-term profitability by balancing how much is spent to gain a customer vs. how much value that customer brings.

a5. Business Model- Pricing Methods

Set prices based on market willingness to pay; test by gauging customer response to higher prices. Aim for high profit margins (e.g., a 30% margin is significantly better than 20%).

a6. Business Model- Figure out first method of advertising, (One at a time)

Start with one advertising channel (e.g., social media, Google ads, email marketing), test its effectiveness, and optimize before expanding to other channels. This helps focus resources and identify what works best for your target audience.

a7. Business Model- Create the best Product POSSIBLE

Focus on quality, innovation, and addressing customer needs. A product that exceeds expectations builds trust and long-term loyalty. Prioritize usability, durability, and unique value to stand out from competitors. Continuously improve based on customer feedback.

a8. Business Model- How to find a hungry crowd

Market> Offer> Persuade

If the market demand is high, sales are easier (e.g., toilet paper during COVID). If the offer is strong, you don't need to rely heavily on persuasion. In a less demanding market, good persuasion can make a difference. The easier the market or offer, the less effort required to persuade.

a9. Business Model- One Avatar, One Product, One Channel

Focus on a single customer profile (Avatar), a single product to solve their specific problem, and one marketing channel to reach them effectively. This ensures a targeted and streamlined approach, reducing complexity and improving results.

a10. Business Model- VALUE EQUATION

Value = Dream X Likelihood of Achievement ←------ Increase

------------------------------------------

Macro Micro (how long daily) X Effort/Sacrifice Decrease ↑

a11. Business Model- Selling to the Rich

Focus on selling to the wealthy, as they are willing to pay more for premium products and services. Higher-paying customers can lead to greater profitability and long-term business growth.

a12. Business Model- Start For Free

Starting for free lets you validate your product or model while building testimonials. This approach gains trust and shows proof of concept before scaling. (Start With Giving to Homies)

Create a template and add specific solutions to add depth

b. Marketing- How to Get better at Making ADS

-Prework: Look at the top 20 ads you have done all the time, rewatch them viewing the things that were done right or wrong. Copy the right things and take out the wrong things.

-Model Ads: View ads outside of the platform that you would like to model off of, and remix new ones based on the inspiration and prework

b2. Marketing- Best Media Sites for Advertising 2024

YOUTUBE AND INSTAGRAM

b3. Marketing- PROOF PROMISE PLAN Intro (PPP)

In the first couple of minutes explain these to the prospect....

Proof: show you have helped a customer like your prospect

Promise: Define what they will get from your product

Plan: Set Expectations for the meeting so they know the steps

(Utilized in Sales Prospect Meetings, Webinars/Presentations, Content Framework)

b4. Marketing- Email Strategy List

1. Make Unsubscribing Easier

2. Segmenting an email list to send targeted emails that are more relevant to each recipient (Separate into Groups)

3. One very Clear Message, Reduce Complexity

4. Reward them for clicking and get them to regularly click with high quality emails that are useful

5. Optimize for Mobile Viewership

6. Consistent Format on Emails (Test to find best)

7. Optimized Preview Text (Words that are seen before clicking on the email)

8. Clear CALL TO ACTION (Make it related to Context and Bridge it based on flow)

9. 3 times a week is the optimal #

10. Use Google Native Links to not be sent to Promos/Spam

11. Split Test Emails

12. Add Bonuses for signing up and explain to them why they should stay on

13. Track CTR Rate and Open Rate

14. Optimize for time period, B2C Monday's and Tuesdays, B2B Wednesdays. Best Time Slots: 10-12 PM and 1-3 PM

b5. Marketing- Model Email Examples

https://www.acquisition.com/mozi-money-minute/easy-21-profit-increase

b6. Marketing- How to Find Leads Using Comments

Post 100 meaningful comments within a group or community filled with ideal customers. Target pools of ideal customers for concentrated engagement.

Engage with Four Types of Leads:

Anyone who likes your post

Anyone who comments on your post

Anyone who likes your comments

Anyone who replies to your comments

b7. Marketing- Black Friday/Coupon Deals

1. Use codes at checkout to preserve retail value and brand perception, enhancing urgency and satisfaction.

2. Challenges based coupons creating a personalized experience gathering data from your customers

3. Utilize Top Banner Urgency and Advent Calendars (Supporting MOBILE Usage)

4.. 1st Time Buyer incentives using crazy offers based on LTV

5. Partner with major brands to leverage strengths

6. Use native integrations for seamless purchasing.

7. Use Demo's to test product releases while increasing scarcity

8. Optimize Web Page for the Day (Holidays, Black Friday)

b8. Marketing- How To Use Price Anchors

Using a higher anchor price can lead to higher perceived value for mid-tier products and increase revenue through premium-priced items. Anchored prices work effectively when the high-priced product offers unique, tangible value to justify its cost.

b9. Marketing- How to Communicate Price Increases to Existing Customers

1) Brace Them Early: Notify customers in advance (Email)

2) Highlight Value: Remind them of the value they're receiving and clearly explain the reason for the price increase.

3) Justify the Change: Emphasize that the increase allows for reinvestment to enhance customer benefits (list specific improvements like new features or better service).

4) Reward Loyalty: Offer loyal customers a temporary discount (e.g., 3-6 months) before the new pricing takes full effect.

5) Personalize with Humor: Add a lighthearted note (e.g., a P.S. about discussing options if the increase causes hardship).

c. Management & Leadership- Meetings to optimize time and focus efficiently

-Start with a 6 page memo and do Study hall for 30 minutes reading it/taking notes. Then discuss

-One method is to sequence contributions by seniority, empowering junior executives to share their opinions without fear. Additionally, this approach ensures that junior participants have equal authority to challenge senior perspectives.

c2. Management & Leadership- First Employees HOW TO

Identify all roles you fulfill, such as accountant, marketer, etc and then replace them with real employees based on what can provide the most value currently in each respective position.

c3. Management & Leadership- When Recruiting GOOD HIRES

1)Determine whether they are qualified depending on the metrics they use to measure good outcomes in role

2)Ask how the role makes the Business more money(Need a good reasoning to comprehend their understanding)

3)Need higher standard employees/talent. Need a person that would raise the bar of the team. Should be better than the designated role than you the business owner.

4)Be honest and able to hurt peoples feelings in order to grow. Hiring 4 B rate employees is worse than hiring 1 A rate employee who is double the wage.

c4. Management & Leadership- How to assign Leads to sales Teams

Assign the Best Leads to the Best Closers and Inverse:

Prioritize top leads by giving them to your strongest closers to maximize conversion rates. Assign leads with lower potential to less experienced or newer team members, allowing them to gain experience while maintaining overall efficiency.

c5. Management & Leadership- Sales Teams Training Regimen

1. Game tape Reviews: Watch Game tape Reviews with team, so the person in call critiques themselves while team says what the person did correctly

2. 1 on 1's: Roleplay Sales Calls while following scripts practicing lines over and over again until they get it down

3. End of Day Reports: Stats are being tracked in real time, so they are accountable and daily leaders/winners

Track: What% are showing up to calls? What% are you making an offer to? What% don't close because of specific obstacles?

c6. Management & Leadership-Employ Internal Courses

Automate training to reduce costs by providing team members with a self-directed learning process, allowing them to complete training independently rather than relying on an instructor, which saves time and resources

c7. Management & Leadership- How to Decrease Worker Compensation

1) Acknowledge Responsibility: Admit mistakes and explain the business challenges (e.g., profitability issues).

2) Provide Context: Outline the need to ensure long-term sustainability and career growth.

3) Present Changes Clearly: Detail adjustments in a way that highlights fairness and transparency.

4) Give a Transition Period: Offer 3-6 months for employees to adjust or seek alternatives.

5) Outline Options: Provide flexible paths forward:

a. Stay with adjusted compensation.

b. Transition out with support.

c. Take on additional responsibilities to maintain current pay.

Prepare for Outcomes: Be ready for some employees to leave, and learn from the process for future hires.

d. Strategic Planning- Importance of Defining the Sales Process

Defining the sales process is crucial for identifying what works and what doesn't with your target audience. By trying different approaches, you can learn from successes and mistakes. Once the right methods are found, they can be consistently repeated, increasing efficiency and improving conversion rates.

d2. Strategic Planning- Problem-Solving Process, Hypothesis & Testing

When tackling a problem, create a hypothesis on how to solve it and determine the variables to measure its success. Test the solution and evaluate the results to decide if it works. Example: Low conversion rate → Redesign site → Measure success: Did we make the change, and did it improve conversion rates?

d3. Strategic Planning- Automated Business & Employee Investment

Wealth is built by creating an automated business that can operate independently of you. A business with professional employees is more efficient than a single genius. As the business grows, invest in your employees to sustain growth and success.

d4. Strategic Planning- Find Constraints and Massively Increase Inputs

To grow a business, it's essential to first identify the key constraint holding it back. Once you understand the limitation, focus on massively increasing inputs to address it. For example, if the constraint is a lack of salespeople, conduct a large number of interviews to quickly build a stronger team. By scaling up efforts in the areas that matter most, you can overcome bottlenecks and drive the business toward faster growth.

d5. Strategic Planning- Prioritization

Focus on high-impact actions, even if they take time to identify. The right choice (10x growth) outweighs lesser actions (2x). Aim for A+ solutions that amplify results.

Strategy To DO:

-Change Meetings from once a week to at least once a day

-Eliminate all other priorities of employees

-Increase frequency of communication (Ask for how long it would take in minutes and hours, Increase Transparency)

-Make Winning obvious, clear and present publicly (Maybe Add Rewards)

d6. Strategic Planning - Limiting Choice of Products (Online Specifically)

Pre-test best products and narrow options. Businesses can better target customer needs, reduce complexity, and improve decision-making. This strategy often leads to stronger branding and higher profitability as efforts are concentrated on what matters most.

d7. Strategic Planning - The Important Of DATA

Data is essential in strategic planning as it enables informed decisions, identifies trends, and optimizes resource allocation. It provides measurable benchmarks to track progress, mitigates risks by revealing potential challenges, and offers insights to gain a competitive edge. By grounding strategies in data, organizations can adapt to changes and focus efforts on actions that yield the highest impact.

d8. Strategic Planning - What Data To Track

1) Click TO Close (Pipeline Data)

CTR On Ads/Content, How Much Traffic, Opt-in Rate, Schedule Rate, Show Up Rate, Close Rate, Cash Collected

2) Close TO Resell

Activation, Time to Value, Churn Rate, Gross Profit Per Product Line, Ascension Rates by Cohort

3) After Sell

Customer satisfaction, Customer Engagement, Net Promoter score, Client Goals

d9. Strategic Planning - When are you Ready to Scale (LITMUS TEST)

A business is ready to scale when it can sustain or grow for six months without your involvement. This test ensures the business operates independently of the owner in delivery, sales, and day-to-day management. If your absence causes the business to falter, it means you're still critical to its operations. True scalability requires robust systems, clear priorities, and accountability to thrive without constant oversight.

d9. Strategic Planning - Product Growth Tips

Improving quality often comes from deletion, not addition. Overwhelm from too many features drives customer churn.

List all product/service features.

Ask customers: If you could keep only one feature, which would it be?

Use results to rank features by value.

Remove low-value features to streamline and focus on the essentials.

e. Finance/Accounting- When Starting Follow 33% Rule

The 33% rule states that 33% of your earnings should be allocated to the owner (personal income), 33% for growth (investments in the business), and 33% for reserves (savings or emergency fund). This ensures sustainable business growth and financial security.

e2. Finance/Accounting- Payment Comp for Sales people

Expectations vs. Skills :High expectations require higher pay due to rarer skill sets, Common skills allow for lower pay since talent is more available.

Compensation Framework

Monetary Compensation(Setters/Closers): Example

Below 50% fired, If you close 50% you keep your job, if you close 60% you get "attaboys", if you close 70% your commission raises and 80% commission raises even more

Non-Monetary Compensation: Recognition , Praise, Status, Perks, Attention, Approval,

e3. Finance/Accounting- What is the Customer Acquisition Formula for sustainable growth?

Break-Even Point: Ensure the customer pays back the cost of acquisition (e.g., $100).

Fund the Next Customer: Generate enough profit to acquire the next customer (e.g., an additional $100).

Cover Overhead Costs: Include operational costs (e.g., $50).

Formula Example: Total required revenue per customer = $250 ($100 acquisition + $100 for the next customer + $50 overhead).

Key Insight: If each dollar invested consistently returns significantly more, the marketing budget can scale infinitely, maximizing profitability.

Formula:

2(CAC+COGS)= 30 Day Cash (GP)

e4. Finance/Accounting- Reinvesting Tax Free

Instead of focusing on small tax loopholes, reinvest profits into growing your business. Business growth isn't taxed until you sell, allowing wealth to compound tax-free

f. Branding- Protecting Reputation and Long-Term Goodwill

When building a brand, carefully choose who or what you associate with. Never risk your reputation for short-term gains. Protecting your reputation allows goodwill to compound over time, leading to sustained success.

f2. Branding- Value of Brand

A strong brand justifies higher advertising costs and ensures that customers exclusively choose your product or service. Building a solid brand requires time but leads to greater customer loyalty and higher returns on investment.

f3. Branding- 3 ways to Build a brand

-What You Say or Show: Control your brand messaging and visibility through marketing and content.

-What Others Say: Manage and influence your brand's reputation through customer reviews and word-of-mouth.

-Customer Experience: Ensure positive interactions and satisfaction to reinforce your brand's value and credibility.

f4. Branding- Don't Make Promises You Can't Keep

-Maintain Credibility: Ensure all commitments are realistic and achievable to build trust with customers.

-Avoid Disappointment: Prevent negative feedback and damaged reputation by delivering on promises.

-Promote Reliability: Foster long-term relationships through consistent and honest communication.

f5. Branding- Brand Building vs. Direct Sales

Building a brand requires time/patience and the amount you can "give" (value creation) prior to the "ask" (sales push) directly impacts long-term success.