“I never dreamed about success. I worked for it.”
~ Estée Lauder
If I had to give you just one tip for growing a successful business, it’s figuring out how to get residual revenues from your customers.
The vast majority of entrepreneurs and small business owners serve customers once and do a terrible job getting the customers to come back. Rather they waste tons of time, energy and money continuously searching for new customers.
The most successful companies have fewer customers and serve them over and over again. Figure out how you can maximize the lifetime value of your customers. How will you nurture them and stay in touch with them over time (e.g., direct mail, email)? How will you get them to refer more customers to you (e.g., referral programs)? How will you get them to pay you over and over again (e.g., monthly/annual service contracts; book/wine/product/service of the month club, etc.)?
Once you figure out how to generate residual revenues from your customers, you’ll be off to the races.
The right plan…
The right strategic plan for your business includes:
1) the best strategy to follow
2) a written roadmap so there’s no confusion as to what your team needs to accomplish and when
In no time, you’ll have a strong plan to follow so your company wins.
Why play the game of entrepreneurship if you’re not going to win?
Today’s Question: Which of the following flavors has never been produced by Campbell’s Soup: Pork Noodle, Watercress, Turtle, or Duck Gizzard?
Previous Question: What was the first brand of frozen pizza to be introduced in the United States?
Totino’s sold its first frozen pizza in the US in 1961. Interestingly, the creator of the product wasn’t 100% satisfied with its original taste.
But, he didn’t let “perfect get in the way of good enough” and he launched the product. The general public loved it.
Totino’s has since improved the taste of its frozen pizzas, and is still a popular brand today, offering frozen pizzas, pizza stuffers and pizza rolls.
The lesson here is not to let perfect get in the way of good enough. If your product is good enough, launch it. Use the launch to get customer feedback. And use that feedback to improve your product. And use the distribution you gain to develop new products and brand extensions.
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