Whether you are a startup or you've been around for several years, in this video, I'm going to share a simple tool that will ensure everyone on your team understands the impact of every penny they spend on overheads, marketing, sales, and everything else.
Whether you are a startup or you've been around for several years, in this video, I'm going to share a simple tool that will ensure everyone on your team understands the impact of every penny they spend on overheads, marketing, sales, and everything else. Now, I want you to imagine that your business is much like an aeroplane. You want it to take off and keep flying. The wings are your products and services. Before anything else, you must have a viable product that solves a problem or makes people's lives better. The wings should be light and strong. Light because they either sell for a great profit, or a smaller profit but in volume. And strong because there is demand in the marketplace. Your right engine is your marketing, giving your business thrust. It doesn't matter how great your product is if nobody knows about it. So, you need to make sure you've built an effective funnel that generates demand for your product. Your left engine is your sales. In order for your sales engine to produce thrust, you need to ensure two things; that you have a sales framework and a system that guides prospects seamlessly from a marketing-generated lead towards a sale. Don't leave this to chance. The body represents your overhead. Now, this is where costs can get out of control. They're necessary to grow and operate a business, but don't overcommit. They should be in proportion to the thrust that you're generating. Consider what would happen if the parts of the aeroplane were not in proportion to each other. Imagine walking towards your flight only to see this huge aircraft body with tiny little wings. You are not going to be too keen on catching that flight. The fuel in your aeroplane represents your capital and cash flow. Without investment and smart management of your cash, your business could come to a grinding halt. And finally, there's the cockpit; your management team guiding the plane, making decisions, and keeping the flight on track to its destination. Hiring the right leaders and then investing in their development will ensure you keep your aircraft on track, keep your team engaged, and keep them productive. The next time you and your management team are debating a new hire, a new system, or any other kind of investment, keep that visual of an aeroplane fresh in your mind. Everyone in your team, regardless of their role or their specific subject-matter expertise, should understand these fundamental components of running a business. When they don't, that's when your aeroplane is at risk. If you found this video valuable, subscribe to our YouTube channel so you can refer back to it anytime you need to refresh your memory or perhaps share with someone else in your team. You'll also be able to catch all of the new videos as they are published.