Scale Sustainably: Unlocking Seven-Figure Revenue with Business Optimization Ep 003

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How do you transform good business practices into great ones and push your online business revenue to seven figures? Join us as Joey Young, a business optimization expert, shares the secrets behind his Scale Sustainably process. Having skyrocketed his family's business to over $100,000 a month in revenue, Joey knows exactly how to squeeze an extra 10-15% in revenue and profit by fine-tuning existing systems, innovatively tweaking processes, and introducing high-margin products. This episode promises a treasure trove of actionable insights directly aimed at helping you outperform your competition and solidify your market position.

Joey breaks down the four critical step in his process, focusing on boosting sales, decreasing costs, and reducing customer churn. He delves into brainstorming strategies with your team, the importance of working within your core competencies, and the value of optimizing your product ladder. Whether it's adding a new complementary product or analyzing every facet of your sales process to identify opportunities for improvement, Joey’s practical advice will guide you through transforming your business. Tune in to discover how to leverage your unique advantages and accelerate your journey to seven-figure success.

Transcript

Joey Young: 0:00

Welcome to Bright Side Business, where we help online entrepreneurs like yourself scale to seven figures and beyond. My name is Joey Young. I help grow my family's professional service business from 19,000 to over $100,000 a month in revenue in under two years, and I learned a lot of lessons along the way. One of them I wanna share today is all about business optimization. I have a process called Scale Sustainably where I help online entrepreneurs go from five or six figures to seven figures, and this is step number four in that process. So if you want more context, go to previous episodes. But this is a stage in the process all about optimizing your business and getting that extra 10, 15 percent of revenue and profit. So you've kind of got some systems in place, you got things rolling, but how do we get that performance edge in your business? How do we get that extra 10%? There's a lot of ways we can do it. I mean you got to be comfortable, first of all, with breaking things that aren't broken at this stage. If you're not comfortable getting in the weeds in your business and taking something that works well a system, a process, an area of your business like sales and really breaking it apart like an engine, tuning it up, swapping things out and putting it back together, you're going to have some trouble. This is what this step is all about. It's about taking good things and making them great in your business. It's also about maximizing your unfair advantage in the marketplace. You know, just like we talked about in the priorities episode a couple episodes ago, where you have to focus on your performance edge as a business owner when you're under 20k a month. Now you're a little bigger. We want to talk about what is your business's area of expertise and passion and how do we leverage that to create an unfair advantage in the marketplace and create a moat around your business so competitors have a harder time gobbling up your market share. And it's also this step is also about adding potentially a new product or service to your suite. You know, maybe you're expanding and you want to create a high margin. You know low cost product that will work in tandem with your current core solution, current product or solution, you know, and really take that momentum that you built from the past several years and just help it launch to success in a very short amount of time. It's actually a fun time to be a business owner at this stage because you can really just pick apart things and solve problems that you enjoy solving in your business.

Joey Young: 2:21

So what are the steps to optimize your business and really get that extra 10-15 percent? The first step is to brainstorm. We need to get a lot of ideas on the table with the team about opportunities to increase sales, increase revenue per customer or per sale, decrease costs and decrease customer churn. These areas will help us to scale revenue and profit. So we're going to increase sales, we want to increase profit per customer, per sale, we want to decrease costs and decrease customer churn and get more repeat buyers and in those four areas there's generally three paths you can take to improve in those four areas and the first one is to just launch a brand new complimentary product or service. It's basically choosing a service that you can kind of use in tandem with your core offering. That's low cost to set up, low maintenance in terms of finances and is really high margin and you can sell to a really large addressable market.

Joey Young: 3:29

You know the key thing to remember if you're doing something like this is that you want to work within your company's core competencies. You don't want to stray out of that area of passion and expertise or like way outside your current branding messaging, because it's going to be a lot harder to scale a new product or service that's just completely out of left field for your team and for your customers, so make sure it's within that realm of expertise. Also, you got to think about, you know, optimizing the value ladder. This is a really helpful framework for launching a new product. If you have a, let's say, high-end product right now as your core business, think about offering something lower end. It's cheaper, maybe isn't as comprehensive of a solution for your customers, but maybe it can be a gateway for customers who are not ready to invest in a higher ticket item. Maybe they buy it and then 20% of those people become customers of your core offering. Or maybe right now you do have a pretty low ticket product or service. Maybe it's time to develop a more comprehensive solution so that you can take all those customers you've built and push them to a higher, more heavily revenue driving and higher profit margin offer after they bought the lower ticket one. So think about those things as you.

Joey Young: 4:42

If you choose to go down the path of a new product or service, the next path you can go down is improving your current product or service. So your core business whatever that or service is maybe you're you want to get that extra 10% of revenue by improving what you already have. And to get that brainstorming going, think about what urgent and expensive problem you solve and for whom. Get that really clear. First of all, it might be a process you've done with your team already, but really nailing down. This is the problem, the root, the actual true problem. We solve for people and this is the target demographic for that problem that we solve. And with that knowledge you can start to ask yourself questions about how to improve your core product, Like how can we improve the product or service to be more comprehensive? It's one of the best ways to raise prices and to increase sales is to have it be more comprehensive solutions so you have a larger adjustable market and just by, quite frankly, raising prices you're going to get more margin from each sale. So think about how to make the solution more comprehensive and applicable to more people and that will help raise the amount of sales you get.

Joey Young: 5:57

Also, think about reducing costs for your core product or service. What can you do with automation, with tools, with software, maybe with a more strict policy or system or workflow to reduce the cost it takes you know, cost of goods sold or even overhead to deliver your core product or service. Because if you can reduce costs and make things more simple on the fulfillment end to deliver, you're going to make sure that you get more margin from each sale, you know. And finally, how can you equip your raving fans, those people who love your product or service? How can you help them more easily become a repeat customer and renew or buy again? And how can you help them become affiliates or have a partner program or spread the word? Just by giving them social media tools to share with a hashtag or something about your business. Help the people who are ready and willing to buy from you and to share your message, share with you, share with other people by giving them opportunities like affiliate programs and stuff like that. So that's the path of improving your core product or service.

Joey Young: 7:04

Let's say you're choosing the third option. You're like you know what. We have a great product or service. I don't want to launch a new one. I'd rather just scale what we currently have. Our current offering, our current product or service is good. I just want to grow that. I just want to do more sales, more volume. Okay, that's a great path.

Joey Young: 7:21

So you got to think about if you go down that road, you know what investments of time, of skills will you need to equip your marketing and your sales team for this next phase of growth. What tools, software, what people, what new processes, what new skill sets or ventures will you have to invest money and time into to give your sales and marketing team those extra leads and those extra buyers to be able to drive growth? And how will you continue to maintain your quality of customer experience during the scaling process? Really important question what are you going to do to make sure, when a customer who has 50 peers all of a sudden has 500 peers who are also customers of you, has the same quality experience, the same exceptional customer service and fulfillment and wait times and support and all the things that you offer right now? How will you stay ahead of that? By investing in again teams and automation and software? That's going to be really important. And then, finally, as you think about scaling your current solution, you know how can you leverage your raving fans by giving them an affiliate program to just make sales for you and giving them a piece of that, you know, or just giving your current customers tools to become repeat customers, maybe a timely coupon or something to help them buy again, and that'll just drive more volume. So you got all these ideas here to increase revenue, to reduce costs.

Joey Young: 8:48

So the last step of this process is to just decide. You need to make an intentional decision as a leadership team. Here's the path we're going and here's the KPI and the date that is associated with it. So, for example, if you're saying we want to start a new product line, we want to start an online course, you would say our goal is 5,000 sales of our new online course in nine months from today. That's a very specific path to go down. Now you've chosen the optimization, the 10-15% edge that you're aiming for at this stage of your business, and along with that comes a not-to-do list. This is so critical. Just like you've chosen just now what path, what opportunity you want to exploit, you have to be really clear about what you're not exploiting, what you're not going to invest time and resources into. It's a no list, it's a maybe later list, but everyone has to have access to it. So we no longer spend any more time discussing other opportunities as we focus on maximizing the opportunity that we have chosen to work on.

Joey Young: 9:53

And if you're liking this stuff and you're like Joey, I love this. I want to scale my business. I like this material. You got to check out my one page scalable business plan. There's a link in the description of this video. You can check it out. Just go through it. It'll give you a high level picture of your business on one page so you'll know what area you can work on. Really, really helpful, Totally free.

Joey Young: 10:12

And hey, if you like this video too, like, send me an email. I'd love to hear your thoughts. If you have a question or you have an, you know, just an epiphany based on something you heard here, just shoot me an email, joey, at joeyhyoungcom. We'd love to hear from you. Or shoot me a DM on Instagram with your thoughts or question. That's at joeyhyoung on Instagram. And while you're there, you can actually click a link in my bio on Instagram to book a 20-minute strategy call and we'll talk about you and your business and what stage you're in, what bottlenecks you're facing, how we can help you scale. We and what stage you're in, what bottlenecks you're facing, how we can help you scale. We'd love to chat with you and whatever platform you're on. Please hit the subscribe button, if you can, and then the like button, and then just take the link and share it with a friend, an entrepreneur friend who wants to scale their business, so they can get some help in this area of optimization. And until next time, happy scaling, Thank you.