I Don’t Like Investing In These Types of Businesses…
Summary
- People don't stop buying.
- I have zero interest in businesses where someone buys once and then doesn't buy again.
- Recurring customers create Enterprise Value and make life better and more profitable.
- Many are impatient and only focus on hitting monthly targets.
- Thinking two steps ahead is crucial; otherwise, you must constantly scale acquisition.
- There will be days when ads or campaigns don't work, making the business volatile.
- High fixed costs and inconsistent profits can make running a business stressful.
- Spend more time upfront to ensure the product is right so people don’t leave.
- Nail the offer and delivery to make the business grow on its own efficiently.
- Marketing should be used to speed up growth, not as a crutch.
Video
How To Take Action
I would suggest implementing a focus on building a recurring customer base. Recurring customers create enterprise value, make life easier, and are more profitable. One way to do this is by offering subscription services or loyalty programs. It encourages customers to buy again and stay with you longer.
A good way to keep customers coming back is by spending more time upfront on making sure your product or service is top-notch. Nail the offer and delivery so that it's efficient and keeps people happy. If the product is right, people won’t leave, and your business will grow on its own.
Instead of just focusing on hitting monthly targets, think two steps ahead. If you only focus on sales and scaling acquisition, you risk having volatile days when ads or campaigns don’t work. This will reduce stress in the long run and create a more stable business.
Another strategy is to use marketing to speed up growth, but don't rely on it as a crutch. Use marketing to get more eyes on a great product rather than trying to sell something that's not ready. This way, once people see your product, they will want to stick around.
Finally, keep your fixed costs low to avoid high-pressure situations. If your costs are low, inconsistent profits won't hurt as much, and you can reinvest in improving your product and customer experience. This strategy can make your business more sustainable and less stressful over time.
