Five Ways To Self Fund Scaling

Accelerating Sales to Scale your Business

CTA Cloud Consultants Collective

If you’re planning to scale your business, but you’re not a fan of getting outside investment in the early stages, you need to listen to this episode. Paul shares five ways to find money inside your business by taking some actions and focusing on your clients (existing and potential). You will learn those five ways to self fund scaling, some examples and how you can get some help.

 

1:29 – Why you should consider self fund scaling before looking for outside investment.
2:54 – Sell more to existing clients
4:11 – Business model
6:34 – Gain new clients
9:14 – Do delegate delete
10:40 – Lean cost
12:06 – Key actions from today

 

CTA Request Transcription

 

Sell more to existing clients 

I know you’ve all heard that before. But I see so many owners that are lost in acquiring new customers and doing sales and marketing campaigns that they forget about their existing clients. Here are a couple of examples to turn this around:

  • When I took a new account in Coca Cola, I would always map out all the products we sold against what they ranged. It sounds really simple, but it was a powerful exercise to fill the gaps
  • When we ran our own cloud consulting business, we realized that we were giving away too much, especially in our setup. We broke down our services and sold them when the client actually needed them rather than giving too much upfront. That helped them like, know and trust us and get some proof before we went into far.

 

Business model

I see many owners swapping time for money and often having their time charged at the same rate as their people. And if you’re doing that, stop that right now. The first step to solve this is by selling retainers. It gives you recurring revenue and gives your clients predictability. Another way is to charge by the person, which is a combination of the license, the support and training, rather than just charging it all separate. And then you can move into a harder one, but really satisfying, which is the return on investment. You can take 10% of the total return of a project for implementing it.

 

Gain new clients

​​I’m not saying you don’t gain new clients, prioritize your existing ones first. Now that you have the business model sorted out, you can take on more clients at higher margins. You can be more selective on who you take on because you don’t need as many. There are two strategies that work well here: Strategic partners and social selling.

 

CTA 1-on-1

 

Do delegate delete

You’re the most expensive asset in your business. The opportunity cost of using your time is the greatest thing you can do. But if you’re digging into admin work, all the sales and marketing, strategy, et cetera, we have a problem. Just because you can do something doesn’t mean you should. So focus on filling the big rocks first (strategy, leadership, sales) and then you won’t have as much time left for the smaller things. We use a great model called I/WE/YOU, where I is when you do something, WE is when you do it together with the person that you’re delegating to, and then finally YOU is where they then train you to see if it’s something they’ve fully learned. Obviously, use automation where you can and, ultimately, delete all the unnecessary tasks. It’s like a spring clean.

 

Lean costs 

Whilst the top of your profit and loss is the most significant impact on your bottom line, it doesn’t mean you should ignore the midline, which is the different costs. These are some activities I do with my clients:

  • List highest to lowest costs and cut what you can.
  • Renegotiate supply contracts. E.g. I recently went from 90 dollars to 40 dollars a month on mobile bills by just renegotiating.
  • Cut subscriptions. If you’re like me and love tech but don’t use them all, you can make some cuts.
  • Bring on admin staff to free up revenue-generating staff.

Key actions from today

  1. Take one action from one of the fives and make it a project. Dedicate a resource to it, so it gets completed.
  2. Reach out if you need help at [email protected]

 

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CTA Cloud Consultants Collective