Having the right mix of products is imperative for growing any business—whether you have a Profit or Legacy Business. But sometimes small business owners fall so much in love with the products they want to sell they forget to ask themselves if they’re selling the right products for what they want to accomplish. Today we’re going to talk about how you know you’re selling the right products in your Legacy Business. (If you have a Profit Business, head here for that info!)
How Do You Know You’re Selling The Right Products?
In a Legacy Business, nothing is more important than selling the right products. Your products are what position you to grow a sustainable venture that will continue to thrive with or without you on board. To make sure you’re offering products that inspire, create a powerful impact and help grow your business, here are the four questions we take you through in Cash Flow Cure, Module Four to help you in the evaluation process.
Question #1: What kind of impact do you hope to have?
Everyone who starts a business has different goals. Perhaps you want to make a huge profit so you can retire early. Or maybe you hope an environmental product you’ve patented will lower the global carbon footprint.
Do the products you’re offering create the impact you hope to have on the world? That’s the first question you need to ask. In evaluating your product line, consider which products and services inspire you the least and which inspire you the most.
Question #2: When will I make a profit?
[memb_has_membership memberships=”MS.m BUSINESS OWNER”]
Making a profit is essential no matter the venture. But in a Legacy Business, you may have to wait a while longer before you get out of the red and into the black. Many Legacy Businesses are built around investing in the right talent (for greater compensation) and better infrastructure up front while you take an initial loss. With the right products, you’ll do a better job meeting your first Profit Goal whether that’s six or 12 months out. So if you invest $200,000 to open up a technology consulting practice and cover 12 months of salary and expenses, you’ll need to have more than 20 clients paying $10,000 a year in order to do more than break even.
Question #3: How will this product help me reach Financial Freedom?
The key to making a profit is to sell not only the right product but the right product for the right price. Unfortunately, pricing is a stumbling block for many business owners. They either let what others in their industry are doing influence their decision or they do what feels good and hope they’re right. Both methods are the wrong approach to pricing.
Every product in the marketplace has a value. That value is based on everything from your expertise to marketplace demand to the cost of raw materials. You should consider all of these before deciding on the best price for a particular product. And that price will also take ensure you’re making enough profit to Pay Yourself First and work towards Financial Freedom.
Question #4: How automated is this product?
Consider if your business can completely run without you using automation and delegation. When you’re building a Legacy Business, the goal is to offload tasks someone else can do more easily for less money. And you want to do this as quickly as possible so you can focus on higher earning tasks.
Automation uses technology to complete a task with little to no effort required by a person. You want as much automation as makes sense in your business!
In a Legacy Business Model, your aim is for each product and service to be either fully automated or a combination of fully automated and delegated. You need to have no involvement in the development, marketing, selling or fulfilling of your products or services to effectively sell your business for the highest value.
Moving Forward
Evaluating your product mix isn’t always easy. When you’re honest with yourself, you may have to admit a product you thought would create a major impact yields more of a soft, whimpering noise from the marketplace. But the more rigorously honest you are during the evaluation process, the less heartache you’ll experience down the road as your business takes hold.
Asking yourself these questions in Cash Flow Cure ensures you’re building a solid, sustainable business that will change the world and feed your Financial Freedom.
Community Question! Are the products you’re selling now truly helping you build your Legacy Business? Share with us in the Business Owner Only Community!
image credit: Bigstock/maxxyustas
[else_memb_has_membership]
[memb_include_partial id=8]
[/memb_has_membership]
Makaylah Rogers is the co-founder of MindShift.money. She is a Thought Leader for her generation, teaching people how to rewrite their “money rules.” With an extensive background in wealth building and personal development, Makaylah’s path has taken her into executive roles in various fields including launching startups, real estate sales and motivational keynote speaking.