It’s like okay, I know my daily and weekly goals are and I haven’t done anything this week to achieve them. I need to either get serious about this business and start making it real and do something to get those leads or frankly, you should probably give up because otherwise you’re wasting your time, you’re wasting your energy. You’re better off spending that time hanging out with your friends and family rather than just having this pretend business that you keep talking about but don’t ever make real.
James: That’s it. I think a lot of people get attached to the idea and the excitement and the hope that the business brings but then reality sets in when the credit card bill arrives and the water rates and the telephone bills need paying. You can’t pay for those on hope and imagination. You’ve got to hit the pedal to the metal.
James: It’s a really interesting thing, just a quick recap; we’ve covered the most common mistakes of not knowing who you’re dealing with, not differentiating and then not actually telling one about it. So they’re things you can put on the checklist. It could be, identify what makes you special.
Commit yourself to an action plan of reaching out to these customers once you know that using multiple marketing channels. And you’ve got an idea of what you’re daily run rate is, so setting a daily metric. I love that. You know most of the people that I work with have gotten passed those phases and they’re into the stage where they’ve got the second part of the business and I’d love to just touch on this because not many people talk about it.
And I think that’s why I’ve become a specialist in it. It’s the actual backend of the business. Because what we’re talking about so far is front of house. But I am interested in back of house.
What sort of challenges and difficulties have you seen service consultants facing when they’ve actually got the business and they are popular and they know who they are and they’re marketing’s working, what sort of stumbling blocks do people have and let’s see if we can address a couple of things and give some tips there as well.
Striking A Balance
Kyle: I’d say the biggest one that I see coming up time and time again is losing that balance between growing your own business and doing the client work. So what happens is it’s that feast or famine type of syndrome where you put some marketing campaigns out into the world you know, you go in your networking events and start generating leads and all of a sudden you take on 2 or 3 clients very quickly and suddenly all you can focus on is delivering for those clients.
You want to get them the results. You want to make sure that you sort of over deliver for them and have some great testimonials and case studies and you completely forget to continue marketing your own business. Sooner or later, the leads start drying up, those sources that you went to before have now gone cold and before you know it, you finish the work for these two or three clients and you’ve got nothing else in the parkland.
So this is the single biggest problem I see. Everyone goes through it at one stage or another, and so the way you get around that is being disciplined, again having good routines and habits around marketing your own business, making it a daily thing or a specific day each week where all you do is grow your business.
For example, for me on a Monday, that’s my day. Monday is my day where all I do is work on my business, I don’t do much with my consulting students, I don’t do anything with clients. It’s purely for my business. So no matter what else happens during the week, I know I spent a good four hour workday on proactive things to grow my business.
So that’s definitely the biggest problem I see is just finding that balance and every freelancer and every independent consultant and most business owners I’ve ever worked with have had that issue. I think the second thing is, a lot of people, especially in our industry, they feel like they need to know it all. They need to know how the SEO is done, they need to become an expert at the PPC, they need to know how to install WordPress and all these really low-level technical things. And so, when they first start getting clients, they want to do all the work.
They can see that they can make more money by doing that and not outsourcing. They feel like they want to learn it all. And again, they get stuck in this technical stuff where they really should spend that time marketing themselves.
And so I think it’s important to have outsource providers in place and have systems in place so that all you’re doing is project managing. That’s the ideal first starting point for a consultant, is just to be managing the project. And managing the relationship, managing the project, your outsources do all the technical work, so that you can focus the majority of your time on the marketing stuff and on actually growing the business, which is, like we said right at the start of the call, that’s really where the actual business is, it’s in growing the business. If you’re not growing the business you don’t really have a business.
Is It Really A Business?
James: I love that. You know, when I’m consulting to somebody and I spot a very high profit margin, I know that they’re actually a high-paid web developer and not a marketing professional. They’re not building their business. Do you have any sort of metrics or ideal profit ratios that you look for to get an assessment on whether a business is a technician or actually a real business?
Kyle: Somewhere in the range of two to one seems to be some kind of sweet spot where, just say you’ve got five thousand dollars of income coming in, about have of that is going out the door immediately. But it really does vary, I mean, many parts of my business it’s more like 90% profit margin. In others it’s much smaller than that.
A part of this is also going to come down to the exact business model you’ve got, whether you’re more of a reseller with everything being automated where your profit margins might be five or ten percent, so that there is a lot of variety in there, but I thing that if your profit margins are too high you’ve just got more money that you should be investing in marketing and spending that money kind of thing.
James: Yeah, I agree that the more informational aspect of it or more automated the leverage the higher the margin will be but the services businesses, a lot of the things we’re doing still rely on human labor and for that reason I think about half of your income might go back into the business to fuel it or to supply as inventory or stock or resources. But that’s ok. And you know, a simple exercise is to say, well, if you’re making five hundred thousand dollars in sales and two hundred fifty thousand dollars of it went back to other people but your main role was just doing the things you like, that’s still a two hundred and fifty thousand dollar income. And if you’re bringing in five million dollars and you spend even three of that in marketing and infrastructure and growing a decent business, you’re still keeping two million of that before tax.
So that’s where it’s quite a mental leap I think for a lot of people to let go of trying to do the website and trying to integrate the autoresponder and setting up conversion testing stuff. Really I don’t think you’re going to get past a low six figure business until you let go of the tools. And that’s certainly the biggest thing I’ve seen when people get into that more mature zone.
The Action Plan
Hey ah, I wanted to just find out from you – what do you think someone should do when they put down the earbuds from this call. Now what would be today’s action item? Just to get it down to one thing.
Kyle: I think that’s going to depend on where you’re at right now. Obviously some people who are listening to this are possibly brand new to Internet marketing and never even considered going down the consulting and local business services route. Others are probably dipping their toe in the water and haven’t got any clients and I’m sure we’ve got a couple of people on the call who have got multi-million dollar businesses.
So everyone’s going to be in a different position. And I think a bit of thinking goes a long way. I think a lot of people jump into taking random action too quickly so I would have a think about all the different things we’ve talked about on the call today, you know have a look at the notes that you’ve taken and start putting together a plan of the direction you want to go.
If you’re just getting started, have a think about your past experience, the knowledge and skills you’ve got and think about the type of business you want to create. What would your USP be? If you were gonna go into this business of being a local business consultant, what would your USP be, what services would you provide, what solutions to problems would you provide, which niches would you go into, and start planning that out.
If you’re currently doing the consulting thing and it’s not working out as well as you want, we’ve probably given you half of different reasons why that could potentially be so have a look at what you think the actual reasons are, whether it’s that you haven’t specialized enough, whether it’s that you’re simply not marketing yourself hard enough, whether you have got caught in that trap of doing the work and not marketing yourself consistently, and work out a plan to get to that next level. I think really the key is, I talk about this a lot in my coaching calls, people want to give up having to think too much.
They want everyone else to just give them the answers and lay the path for them and everything needs to be a step-by-step way for them to achieve their goals and that’s not how it was for me, that’s not how it was for you and just about anyone I know who’s been successful. Now, we can give people a step-by-step sort of general guideline but in terms of actually implementing those steps, there’s a whole bunch of thinking that needs to go along especially if you want to create something that’s right for you.
You know you don’t want to fall for someone else’s plan and sometime later you find out you’ve created a six-figure business that wasn’t what you wanted to do and yet you’re trapped doing things that you don’t want to do. I think it’s really important to think just step back for a moment. Forget about your money troubles, forget the fact that you need to pay your rent tomorrow and you got kicked out of the house and step back and think about what you really want to create and what would the logical next steps be to doing that. If you’re not sure, you can seek out a coach or a mentor and there’s plenty of resources available right here in your site.
James: I love it! I was sort of thinking of a metaphor around that where it’s like a car, you know when you buy a car, it comes with an instruction manual and it says put foot on accelerator to move, step on the break to stop but what you do with it is you really have to make big decisions and if you’re not capable of that, you probably just need to catch the bus like the other people who just want to buy a ticket, hop on the bus and it goes where it goes and you don’t have a say in it. So if you really want to take control of this, I love that- you’ve got to think.
So today’s action item is a planning session. Is it true that you did a planning session and you summarized all of your notes from your community and your students and put on a little bit of a bootcamp and sort of covered all the big key topics?
Kyle: Yes my focus for the last year or two really has been the coaching aspect of what I do. I’ve obviously got information products out there that teach people what to do and I found really where people struggle isn’t actually how to do it. It’s actually the day-to-day things of overcoming their own internal limiting beliefs and internal resistance.
So a big focus for me has been the coaching aspect and earlier in the year I went through all my notes from about 12 months of coaching calls plus dozens and dozens of these one on one calls I do with our students. Literally it was like 230 pages of my hand-written notes from about a hundred hours of calls and I just condensed that all down into a two-day event that I held for some of my VIP clients and that was just a fantastic event.
Basically it was going through all the different key things that had been breakthroughs for different people that helped them get from either struggling to having a business that was making money or from having a business that was making some money to really taking it to that six or seven-figure level. That’s what I focused on at that event.
I had a special guest come in for the first time at one of my events, John Logar, he revealed some of his fast prospecting strategies. He’s doing some crazy numbers using linkedIn, answering questions, generating $40,000 in four weeks. Building his own sort of experiment site and generating $63,000 in 7 weeks..
Just like some crazy numbers I had him come in and basically lay out what he’d been doing, how he’d been doing it and everything like that and we recorded a little of that stuff and I’m actually in the process at the moment of building that up into a membership site where people can access all the recordings and the workbook and everything from that event. It’s nothing fancy, there’s no big production or anything like that.
It’s basically me sitting on my desk, going through my notes line by line, analyzing each of the points, answering people’s questions. Look, if you feel like you’re a bit stuck at the moment or you feel like your business is stagnant or you’re not really sure which direction you want to go, maybe not generating as many leads as you’d like or you’re not able to get the high-paying clients that you want then this breakthrough consulting bootcamp I did is probably the direction that you want to be looking ‘cause there’s a whole bunch of knowledge and experience crammed into this thing and I’m really proud of it. It’s probably my favorite event that I’ve done so far.
James: Awesome, well I’m going to put a link to that. I’m sure it’ll be up soon and you got to love John Logar. I think he’s publicly credited you and me for helping him with his journey.
Now, for listeners if you want to hang out with Kyle then certainly join any of his programs where you’ll get access to him and I also hope you can join SuperFastBusiness, where Kyle and John hang out and answer questions as well. I really appreciate you sharing this stuff. It’s such a good thing and I suspect we’ll be talking about this for many years to come because you know it’s been four or five years so far and I feel like we’re only just getting started in this market.
Kyle: Yeah mate, it’s true. I’ve been doing consulting in one way or another for about 13 years now and people keep asking me when is it going to be saturated, when is it going to stop? You know, it’s just not going to. I’m here for the long haul. I’ve been teaching my program for about four years I think now and I’ll be teaching it for another four years so I’m really excited for the next round of students to come through.
James: Kyle Tully, the consulting tycoon, it’s great to catch up. I’ll speak to you soon
Kyle: Thanks, Mate.
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