Big takes time and I had to learn that like I want you to feel that because it took me a long time to learn so what I see happen all the time with entrepreneurs especially when they applied acquisition.com you know they've got a million dollars in profit maybe it's the bare minimum for for us to consider for investment and they're like here's my idea for how it expand and how I want your help I want to start all these new product lines because I've already saturated my market because I'm spending fifty thousand dollars in Facebook ad and I can't spend any more than I currently am otherwise I lose the profitability of the ads .
So I'm going to start selling more and different offers and add massive complexity to my business that only makes three million dollars top line per year that is a mistake and in this article I'm going to walk through why and the reason this is so important is because many people hit this first plateau and then think oh I should start a new business oh I should start a new product line when really they need to confront the problem ahead which is they don't know how to get more customers within their current Niche or space your Market isn't capped your mindset is capped what I'm going to do is break down the three different Frameworks. I used to think through this so that you are never capped in whatever Market you go after .
1. Marketing perspective
From the marketing perspective you have your method which is the biggest thing you do it's running paid ads it's making content it's doing Outreach it's getting referrals it's getting Affiliates those are the methods that you do to get customers underneath of that you've got the platforms that you do that method on you've got Facebook you've got phones email Hulu YouTube You've Got Google underneath the vet you've got the media on the platform so if I'm on Instagram I can go Instagram DMs I can go Instagram stories .
I can go Instagram posts I can go Instagram reels I have all these different media within the platform one level below that is how much volume am I doing within that media am I posting one story a day one story a week multiple stories a day multiple posts a day so like that chiropractor agency if there are a hundred other agencies that market to chiropractors and they're all marketing on Facebook then you could probably add up all of the ad spend of every one of those agencies together and that just gives you an idea of how much there is available in terms of numbered new clients per month that all of them together are selling just on Facebook ads rewind real quick if you're trying to pick pick what Market you're going to go in I talk about this in my book 100 million offers there's four things I want to look at.
Number one are they in pain am I actually solving a problem for someone .number two are they easy to find because I can't find them I can't sell them right number three do they have the money to spend in order to buy my thing because if I'm trying to sell to broke people it's probably not going to be a good idea number four are they growing I don't want to be selling their newspapers I want to be selling to something like old people that are there's more of them every single day that are retiring if I have a market that checks all four of those boxes then I know I'm at least in a good opportunity now once I have that in place and I looked at the four variables that I talked about earlier can I do a new method can I do it on a new platform can I expand to multiple types of media within the platform of curling can I increase the volume that I'm currently doing in the mediums that I have these are the things you could do immediately to get more customers get more leads today .
let's say you've capped all of those things which is probably not true but let's say you did because we're going into Fantasyland here I'm going to introduce you to what I call the Pyramid of markets there are five directions that you can go in any Marketplace to expand I'll tell you a story of when I learned this I went to this Meetup of eight entrepreneurs together we were doing 500 million dollars a year in Revenue this is like a multi-billion dollar room which is kind of cool and I was one of the smallest guys there I think I was doing 30-ish million a year at the time and they were talking about their businesses I was like these guys aren't smarter than me and I didn't feel like they worked any harder than me I was like why are they making so much more money than me two main factors number one almost all of them have been in business longer than me big takes time and I had to learn that like I want you to feel that because it took me a long time to learn all right there's not many billionaires under 30 that made it themselves like 10. in the whole world there's not a lot of them and fact Checkers maybe it's 20. it's not a lot.
2. You do saturate a niche
The second lesson that I learned is that all of them were going after bigger markets than I was because at a certain point you do saturate a niche and I'm Gonna Give You context to what that means so Jim Walsh is a licensing company we specifically at the time only focused on micro gyms now we do health clubs and micro gyms because they expanded The Market within that pie there was only 50 000 micro gyms United States lead already spoken with twenty thousand of them we had absolutely have really maximized every media every channel we co-cola we run out some Google run so YouTube we run some Facebook we're on Instagram we make content like we do all the stuff and we have really done a good job of building a market leading business there but again it wasn't as big as theirs and that's why we decided to open up another Avenue now.
let me tell you about why we decided to do health clubs so when we looked at our adjacent markets we could have gone down Market to personal trainers we could have gone on Market to health clubs we could have gone to physical therapists or chiropractors actually very similar or we could have gone more narrow those are the directions we could have gone in I asked our our team one question I said of these different potential Avenues or avatars that we could pursue who do we provide the most value to buy dollars made it was no contest health club Owners we are able to immediately make them like tens of thousands of dollars within the first like month by restructuring some of the things that we could do within their business and then doubling or tripling their bottom line by reorganizing their onboarding process reorganizing their sales process how how they handle retention and how they handle upsells
so if you deal with hair salons maybe you sell Consulting Services you sell to salon owners that's your current market you can go in five directions .
1. you can go up Market that means on the pyramid there are fewer people on the higher part of the market and they cost more but they spend more typically higher quality customers that's where you go into Enterprise sales we're talking franchisors as in people who have hundreds of locations under one umbrella or multi-location or chain owner that's up market for salon owners .
2. Down Market the second Direction you can go is you go to hair stylists you talk about people who are renting chairs and doing hair with their hands full time not running the business there's 10 times more of them .
3. The third Direction you can go is you can go adjacent so what's something that's similar in nature but not exactly the same that would be like a lash and nails place if I were a chiropractor it might be Physical Therapy like they're similar but different you want similar business characteristics similar Avatar in terms of the owner similar types of customer within the same larger industry when you do that that you just open up another vertical and you attack it the same way you did your first one.
4. The fourth Direction you can go is you actually go broader now imagine a pyramid that's all the way like this and it includes all the adjacent pyramids within it which would then just be Beauty so that includes Med Spa owners flash owners massage studio like all of that kind of falls in the same psychographic they serve the same customer so that would be going broader if we wanted to really open up the net.
5. The last Direction you can go is the only one that makes your Market smaller but it doesn't necessarily mean you make less money you could become narrower instead of just being all salon owners it might be salon owners who specialize in extensions or a blow hair place you know they just do the Brazilian Blowouts like they're just doing that specific thing oftentimes when you do Niche down sometimes you can still make more money because if you're not even close to tapping the methods the platform the media or the total amount of volume you need to do to reach all of those people within that Niche and so then when you Niche down become more specific with your messaging your offer and the value delivered because if you can make this one specific Avatar 10 times more money than the broad Avatar you should absolutely Niche down on that.
We've done this with companies and doubled or tripled or sometimes 5x the revenue business despite cutting down who they Market to by like 85 percent by getting really specific about who we serve best big picture zooming all the way back out if right now you're not getting as many leads as you want and you think that your Market is saturated because of what you do you should be looking the way an investor looks at the marketplace and says this is a 60 billion dollar industry I have not even one percent of this industry my whole point here is you have your four initial levers that you can immediately pull to grow how many leads you're getting and you probably haven't even done one of them do one of them do another one of them and then eventually try and do them all usually there's this big checklist that you probably already know as an entrepreneur of what I call the should Do's I know I should be calling my leads faster I know I should be following up better I know I should be making more content I know I should start a cold call thing
Tags:
Business