I would like you to think about all the steps that you listed in your selling cycle. In your post, present approximate costs of promotion and advertising (direct mail, telemarketing, banner, ads, catalogs, etc.) Determine the total marketing budget required and list all the costs in the table.
In terms of my advertising, I have met with a couple people to talk about Google Ad Words and while both of them actually sell Google Ad Words, they both suggested it would be a very expensive way to advertise and actually advised against it.
I have done some advertising on Facebook and that has worked out ok, but I am not willing to spend more than $200 per month on Facebook ads.
Direct mail, telemarketing, banners, and catalogs are not options either. These do not serve my business or market very well.
I currently have an ad in our local fitness publication, Oblique Magazine, but this is paid for through trade and has only been moderately successful in getting people on my email list and subscribed to my podcast. I still haven't converted any of these local readers to clients.
Sweat equity is my best marketing option.
Tuesday, April 26, 2016
INDUSTRY: Reflection
What was the most surprising insight about your industry that you didn't know before?
While I knew it was super competitive, I had never done the research into just how competitive it is. I'm glad I am just now doing that research or I never would have started down this path. The numbers just look way too bleak.
Were industry exercises easy or hard for you? How so and Why?
While I knew it was super competitive, I had never done the research into just how competitive it is. I'm glad I am just now doing that research or I never would have started down this path. The numbers just look way too bleak.
Were industry exercises easy or hard for you? How so and Why?
VERY easy... since this industry is so competitive and lucrative, there are tons of numbers to research.
Do you like your final result or you think it can be improved. If yes, what would you improve when you have time?
Do you like your final result or you think it can be improved. If yes, what would you improve when you have time?
I think it is great. I have managed to do well in my industry because I don't look too closely at what everyone else is doing. I focus on what I am doing well, what seems to be working for my business and my clients, and keep taking action in that forward direction. Analysis paralysis was my issue with 2 other business ideas I had prior to launching SKFitLife. Action beats analysis for me. Plus with having such low overhead, I have more room to experiment. I don't have a payroll to meet or rent to pay or utilities to keep on to keep my doors open.
1) Outline the operations process for your business. Identify the inputs, operations (key steps or stages) and outputs (present a flow diagram). This is a day in the life of actually producing your product or creating and delivering your service -- walk us through the mechanics of doing so.
Below, you will see my inputs come from the 10-Day Jump Start Opt-In, a 10 day video series automatically sent out via email with an option to purchase at the end of the 10 days.
The SKFitLife App, Social Media Posts, and the Podcast are the other ways we reach potential clients and use our information-based sales. Of these inputs, the required operations are social media post creation/interaction and podcast creation/promotion. Everything else is automated.
From the time someone enters into the email list/subscription pipeline, the questions are managed by myself and my virtual assistant. The registration process for the 12 Week E-Course and the Monthly Membership is managed by my virtual assistant, the one-on-one, personalized coaching is managed by me, and the downloads and supplements are all automated or handled by the parent company.
2) Where are you likely to have bottlenecks in your service delivery or manufacturing process and how will these be anticipated and addressed.
My bottlenecks have occurred in the registration process. This was when I first launched, didn't have anything automated, and had 100+ people registering at the same time. I have since incorporated automation and hired a virtual assistant to help me as well as made the option to join at any time available versus once every 3 months.
3) Describe the lead/lag times that characterize the fundamental operating cycle in your business.
Since I work in the virtual world, most items can happen in real time. I have struggled with relying on someone else for podcast editing so a few months ago I bought my own equipment, taught myself how to produce a show and solved that problem. My biggest hurdle is that I apparently I am a control freak in my business and no one can do it as good as I can... I realize this will always limit me but it is also what keeps me sane and happy in my business.
4) Explain how any seasonal production loads will be handled without severe dislocation (e.g., by building inventory, using part-time help in peak periods).
As I mentioned, I have a virtual assistant. She is super flexible in the amount of time she can dedicate to me. I also have systems in place where I can hire additional help if/when needed. One day I will find someone to produce my show in a timely fashion so production will be the first to go.
5) What quality consistency issues exist and how will consistency of quality be ensured? What controls exist, for instance, to ensure every burger is cooked exactly the same?
The coaching piece of my business is the quality control issue... until I come up with a better solution, I am limiting my number of clients to 100 at any given time and looking towards growing my bottom line with sponsorship revenue from the podcasts.
https://soundcloud.com/skfitlife/stop-chasing-skinny-episode-30?in=skfitlife/sets/stop-chasing-skinny-podcast
Wednesday, April 20, 2016
MARKETING: Customer interview 7
1) Provide (embed) the video or audio recording of your interview with the customer. As an alternative, you can provide the transcript of your interview but it will take you a lot of time. Thus, I would strongly recommend to go with the video or audio recording. Posts without evidence of the conducted interview won't be accepted.
https://soundcloud.com/skfitlife/stop-chasing-skinny-episode-31?in=skfitlife/sets/stop-chasing-skinny-podcast
2) Describe the most interesting and useful insights about your customers that you learned through this interview.
I was surprised to learn how many people this particular client has referred to me.
3) Describe if there is anything you learned about interviewing process. How did you feel during the interview? Was it easy or not? Do you feel like you need to adjust any of your questions or your overall approach?
The interviews are my favorite part of these assignments.
MARKETING: Customer Interview 6
1) Provide (embed) the video or audio recording of your interview with the customer. As an alternative, you can provide the transcript of your interview but it will take you a lot of time. Thus, I would strongly recommend to go with the video or audio recording. Posts without evidence of the conducted interview won't be accepted.
https://soundcloud.com/skfitlife/27-stop-chasing-skinny-podcast?in=skfitlife/sets/stop-chasing-skinny-podcast
2) Describe the most interesting and useful insights about your customers that you learned through this interview.
I didn't realize just how much my clients got out of the group interactions until this interview. These women are forming relationships that are helping them with their LIFE which was my goal from the beginning.
3) Describe if there is anything you learned about interviewing process. How did you feel during the interview? Was it easy or not? Do you feel like you need to adjust any of your questions or your overall approach?
This was particularly easy because this client is also my aunt. Sometimes this means your family supports you no matter what (and won't give much constructive feedback), and other times they want you to succeed so much they are happy to give all kinds of feedback.
ECONOMICS: Reflection
- What exercises were hard or easy for you? Why?
- Did you learn anything that you didn't know before?
- Do you like your final result or you think it can be improved. What would you improve when you have time?
Wednesday, April 13, 2016
ECONOMICS: Breakeven calculation
Contribution Margin = Price per unit - Variable costs per unit
$57 - $8.30 = $48.66
Total fixed costs / Contribution Margin = Break even (quantity in units)
$7,124/$48.66 = 146/month
I HAVE SEVERAL REVENUE DRIVERS...
1) Calculate contribution margins for each of your revenue drivers. This is how your table with calculation may look like:
| Revenue driver 1 | Revenue driver 2 | Revenue driver 3 | Revenue driver 4 | |
| Price | $57.00 | $227.00 | $197.00 | $27.00 |
| Variable costs per unit | $8.30 | $12.50 | $4.00 | $4.00 |
| Contribution Margin = Price - Variable Costs per unit | $48.70 | $214.50 | $193.00 | $21.00 |
| Revenue driver 1 | Revenue driver 2 | Revenue driver 3 | Revenue driver 4 | |
| Price | $57.00 | $227.00 | $197.00 | $27.00 |
| Variable costs per unit | $8.30 | $12.50 | $4.00 | $4.00 |
| Contribution Margin = Price - Variable Costs per unit | $48.70 | $214.50 | $193.00 | $21.00 |
| Share in the expected sales (%) | 30% | 50% | 10% | 10% |
| Revenue driver 1 | Revenue driver 2 | Revenue driver 3 | Revenue driver 4 | |
| Price | $57.00 | $227.00 | $197.00 | $27.00 |
| Variable costs per unit | $8.30 | $12.50 | $4.00 | $4.00 |
| Contribution Margin = Price - Variable Costs per unit | $48.70 | $214.50 | $193.00 | $21.00 |
| Share in the expected sales (%) | 30% | 50% | 10% | 10% |
| Weighted Average Contribution Margin (WACM) | $14.61 | $107.25 | $19.30 | $2.10 |
| Revenue driver 1 | Revenue driver 2 | Revenue driver 3 | Revenue driver 4 | |
| Price | $57.00 | $227.00 | $197.00 | $27.00 |
| Variable costs per unit | $8.30 | $12.50 | $4.00 | $4.00 |
| Contribution Margin = Price - Variable Costs per unit | $48.70 | $214.50 | $193.00 | $21.00 |
| Share in the expected sales (%) | 30% | 50% | 10% | 10% |
| Weighted Average Contribution Margin (WACM) | $14.61 | $107.25 | $19.30 | $2.10 |
| Fixed costs | $85,488 | |||
| Weighted Average Break Even (WABE) | $85,488 / ($14.61+$107.25+$19.30+$2.10) = 597 bundles | |||
| Share in the expected sales (%) | 30% | 50% | 10% | 10% |
| Units per year to break even | 179 units | 299 units | 59.7 units | 59.7 units |
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