Building a $3,000,000 Business for a Stranger in 57 Mins

Summary

• Ben's revenue is unstable because he's trying to sell high-ticket services to cold leads. This is a tough sell and can be improved by optimizing the offer and marketing strategy.
• Ben's business, Unfiltered Hospitality, has a goal to triple revenue to $3 million. They specialize in bar and beverage program development.
• The core offer, "Better Cocktail Consulting" at $30,000, has less than a 20% upsell rate to an ongoing retainer, indicating an offer issue.
• The high CAC of $12,000 is problematic; it should ideally be around $1,500 to $3,500. This may be due to a mismatch between what's advertised and sold, or an inefficient sales process.
• Targeting restaurants with over $4 million in revenue could be beneficial since they have a business mindset rather than a passion project mentality.
• Running ads with clear call-outs for avatars, pain-based hooks, and benefit-driven messages can improve lead quality and conversion rates.
• A lead magnet can demonstrate expertise and create initial trust before making a large sales pitch.
• A more effective funnel structure involves a strong lead magnet, integrated scheduling system, and better pre-call preparation, potentially increasing conversion rates from 7% to 30%.
• The initial offer should be a smaller $5,800 front-end service to get prospects as paying customers quickly, improving conversion rates and customer value perception.
• Implement an upsell strategy where the initial price is credited toward a larger retainer offer if committed within a set timeframe.
• Ben's backend continuity program suffers from churn; increasing perceived value and engaging more with clients can improve retention.
• Monitoring and frequently adjusting the sales and marketing process will ensure that new strategies are efficiently implemented and adjusted based on performance.
• Founders selling in the initial phases helps understand customer needs better and improve conversion rates due to higher personal conviction.
• A focused approach to fixing these areas is expected to lead to significant business growth and better cash flows.

Video

How To Take Action

I would suggest implementing a few key strategies to get Ben's business on the path to tripling revenue. Start with the funnel and offer since these can be addressed quickly and have a big impact.

First, refine the funnel by adding a strong lead magnet. This could be a freebie that shows your expertise, like the top 10 cocktail tips or a pricing tool. These freebies can help turn cold leads into warmer ones who trust you more. Then integrate an easy scheduling system for calls after they've downloaded the lead magnet. This can bump conversion rates up significantly.

A good way of doing ads is by running ones with specific call-outs for $4 million-plus restaurant owners. Use pain-based hooks that dive into common problems these businesses face, then follow up with benefit-driven messages. This will help attract the right type of clients who are serious and business-minded.

I highly recommend adjusting the initial offer too. Start with a $5,800 service to get customers in quickly and prove your value. Make sure to upsell to a larger retainer by crediting the initial cost if committed within a set time.

Lastly, enhance customer retention by increasing the perceived value of ongoing services. This means actively engaging with clients and demonstrating how the service positively impacts their business. This also helps reduce churn.

Frequently monitor and adjust your sales and marketing efforts to stay on track and maximize outcomes. These steps should pave the way for noticeable growth and better cash flow!

Quotes

"The bigger the plane, the longer the runway in order to get it to take off"

– Alex Hormozi

"Businesses behave in patterns"

– Alex Hormozi

"I never want to ask you for money I haven't already made you"

– Alex Hormozi

"As much as it always feels like this unknown journey when you're a business owner, businesses behave in patterns"

– Alex Hormozi

"Once someone comes in, they never want to leave or stop paying"

– Alex Hormozi