CVB #006: You can hunt for a needle in a haystack or you can listen when someone hands you the needle.
Grabbing the needle (which for the purposes of this post is identifying your ideal customer) is one of the first steps we use to grow a business from $150K to $2 million dollars.
It's also the exact same first step used to grow an 8 figure business.
It's simple. But simple doesn't mean easy.
"Simplicity is not a simple thing." Charlie Chaplin
First we need the mindset shift.
You don't need to focus on ALL customers - that would be exhausting, costly and near impossible. There are 7.7 billion people on the planet, and digital presents the chance for you to identify your ideal customer within that unfathomable opportunity.
That's where most businesses give up as they believe by targeting everyone, they will have more chance of attracting everyone.
It's simply not true as every one of the 7.7 billion humans will travel through world differently. Every single person will look at your business through a different lens. Let's call that lens, rose coloured glasses. You need to find the customer that has on a pair of rose coloured glasses.
Is it a young 18YO woman or a grandmother?
A dad or a single man?
Lets' consider why we would go to the trouble.
Pause and think about this question for a moment. How many sales do you need to make in one year to be a profitable business?
Take the profit margin you make from each product as an average. Let's say your margin is around 50%. (you can use this online calculator or ask your accountant to calculate your margin)
Now let's take your average order value. It might be different across your sales channels, so think about the average. Let's say that's $150. All we need at this stage is a healthy guess so don't over think it.
Now take the GM in dollar value, which is $75 (50% of $150).
You need to make $75K to have a good income. (work out in your mind what income you need to make your business sustainable)
- Based on a goal of $75K and a margin of $75, you will need 1000 sales in a year.
- That's 83 sales per month.
- And 20 sales per week.
- If you do markets, you may gain 2 months worth of sales on 1 day!
If you consider each customer only purchasing once from you, that's 1000 customers.
Not 7.7 billion!
1000 customers enables you to focus in on a group of customers that are wearing rose coloured glasses. It ensures you are in the social media channel that THEY want to be in. Build a community that is great for THAT customer to hang out in. Create an email list of THOSE customers to nurture them towards a purchase.
If you enjoyed this tip, check you inbox in the coming weeks as we dig into what we do next. Emails will be sent on Tuesdays at 12:15PM. For no other reason than I love Tuesdays. 💕
I also love Doppio. So each Tuesday morning at around 6am, I will be writing the next post fuelled by the worlds best coffee.
Finding this step challenging, jump on my instagram account and ask a question on one of my posts.
What do you can do for me
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You can also sign up for our 'customer love' program that will hold your hand as you use customer love to grow your business. Coming soon!