There are three keys to creating consistent and predictable cashflow:
1. Strong and Sustainable Unique Selling Proposition: A strong USP is one that cuts through the clutter of our everyday lives. A USP is like a beacon that calls you like an irresistible force. It is the lighthouse that brightens the night sky after you were lost at sea and thought that all hope was lost. Do you get the picture?
In his book, Purple Cow, Seth Godin explains that the USP must be as remarkable as seeing a Purple Cow. So, if you do not have a USP or you believe your USP is weak, try this exercise by Jay Conrad Levinson, author of Guerilla Marketing. First, write down everything you possibly could think of that you do that would possibly be unique and put it into seven paragraphs.
Next, take the most unique ideas and reduce it down to seven sentences. Finally, take the seven sentences and use only seven words that describe your uniqueness. Going through this exercise, will give you a good starting point for a powerful USP.
2. Overwhelming a particular niche: Many entrepreneurs that start out with their first company make the mistake of focusing too narrowly on a specific target market.
Haven't we all heard that we should be really specific about our target market? The answer is yes and no. When starting a new marketing campaign the target market should be small and very focused. However, having this narrow focus for a marketing campaign does not mean that the company should have a very narrow focus.
A company may not have yet realised exactly what target market has the strongest demand for a product or service. Once a target market or a niche is identified, then we can further develop the niche until we master it.
Seth Godin refers to this process as "overwhelming the hive". As when bees protect and swarm their hive, the same is true about how similar people tend to congregate as a target market. People within the hive naturally spread the word about you until everyone is talking about you and your product and services.
In planning your marketing, what are the top three target markets or hives that your company is determined to overwhelm?
3. Multiple strategies producing balanced lead generation: Once you have a strong USP and you know who and where your target markets exists, then determine what specific lead generation strategies you can put to work.
How often have you heard someone say that they get all their leads based on referrals? Well, if you think of the example of a diving spring board, it only has one leg because we want to maximise the bounce, however in business the opposite is true. By giving our marketing spring board multiple legs (multiple lead generation strategies) we minimise the bounce that causes up and down cash flow cycles, whist providing a stable platform to launch our marketing plan.
Predictable cashflow is driven by well thought out strategies that equally produce a balanced set of leads. In the event that one strategy does not work in a particular month, there are several other strategies that could. At Action we like to plan for a 10 x 10 lead generation plan which means that a business should have 10 lead generation strategies that each produces 10 percent of the company's leads.
Lead generation is converting "suspects"- people who have never heard of your business into "prospects"-people who have inquired about your business.
There are three major rules to follow in generating leads. First, you need to TEST and MEASURE how many leads you get from each marketing campaign. Second, you need to follow the AIDA principle, and third you need to follow the WIIFM principal.
TEST and MEASURE- You need to test which elements of your marketing are working and which are not. Measuring your marketing results on a daily basis is a must.
AIDA - Every marketing piece should follow this acronym.
ATTENTION - Does the ad (namely the headline) grab your attention?
INTEREST - Does the ad generate the readers' interest?
DESIRE - Does the ad build desire for your product?
ACTION - Does the ad prompt the reader to take action?
WIIFM - This acronym stands for "WHAT'S IN IT FOR ME?" Think like you are the prospect and how you can help them.
By following these three items you will turn your marketing costs from an expense into an investment and generate prdictable cashflow.
