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Episode 42: Reasons why it feels so hard to grow and scale your Product Business

Episode 42: Reasons why it feels so hard to grow and scale your Product Business

FromThe Product Entrepreneur Podcast


Episode 42: Reasons why it feels so hard to grow and scale your Product Business

FromThe Product Entrepreneur Podcast

ratings:
Length:
33 minutes
Released:
Jul 24, 2022
Format:
Podcast episode

Description

Many beauty business owners reach a point where there's no more growth, or their revenue doesn't turn into more profitability. Therefore, the cash overflow necessary to expand the business through buying more inventory, hiring a team, and investing in productivity systems isn't there. Essentially, they are stuck and have plateaued. To make matters worse, they contemplate increasing marketing, which isn't a solution in and of itself. Are you in the same boat? In this episode, I uncover three underlying reasons you've reached this point and provide a way out of this rabbit hole. Episode highlights Three reasons why you can't scale: Reason #1. You love money, not profit (01:20) Why using the multiplier strategy is not the best approach to scaling (03:35) Defining brand development and its pivotal role in scaling your business (03:55) The pricing formula (05:10) The concept of perceived value (08:10) Reason #2. You don't know your numbers (09:25) Three strategies to grow a product-based business without paid activity (09:41):  Get more customers (12:00) Get your customers to buy more per order (12:40) Get your customers to buy more frequently (13:50) How increasing marketing does not solve your scaling problem (15:55) Reason # 3. You don't have a system for scale (24:20) How to create a system for scale: Figure out your cash flow (24:48) Know your production equation (26:10) Have super sharp marketing and sales plan (27:29)   Quotes "If you don't have that cash overflow, something is not right in your pricing architecture. So your pricing blueprint is not accurate."  "Even though you're selling a product, you're selling a brand. And a brand is a transformation for your desired audience. Branding is why people buy you; marketing is how people find you."  "Branding is why people buy you; marketing is how people find you. And there is a sentimental aspect regarding brand and why people buy."  "When using a multiplier strategy, you're commoditizing your product instead of being a true transformation or an emotional experience. So you're diluting the perceived value." "If you're finding that scaling is feeling hard, tiresome, and grueling, look at your pricing architecture. Do you have enough profit left over after everything is paid?" "Three ways to grow a product-based business. 1. Get more customers. 2. Get your customers to buy more per order. 3. Get your customers to buy more frequently."  "The reason I wake up every morning is to eliminate poverty by helping entrepreneurs build wealth, especially regarding our businesses."  "…there's a space and time for each of these strategies: getting more customers, increasing your average order value, or increasing your frequency. These are the sales strategies that drive the right results without having to rely on any significant paid activity. These are the strategies that big brands use most of the time when it comes to growth in sales. " "What's the root cause of the issues you're seeing in your business now? If you think about it objectively, what would you say is holding you back apart from marketing?"  "You can only make growth sure by understanding your numbers and the levers you need to pull—getting more customers, increasing your price per order, and getting people to buy from you more frequently."  "If you're trying to figure out what is the next best thing I need to do for my business, eliminate marketing. If marketing was not a factor, what would you do?" "If cash doesn't flow at small scale and small revenue numbers, it won't flow at large scale."  "You need to think about a super simple, highly precise marketing plan that will allow your business to grow sustainably."    Get in touch! Get Maureen's free training, Maximize Your Product Sales. Subscribe and rate our podcast on iTunes here. Android users can subscribe and rate our podcast on Spotify. Join our incredible community - Product Entrepreneurs Who Scale Learn how Maureen can help you grow your brand
Released:
Jul 24, 2022
Format:
Podcast episode

Titles in the series (99)

Launching, growing, and scaling a product-based business is daunting - from understanding production ,to mastering your brand strategy, packaging design, and marketing, to navigating growth on the retail shelves and e-commerce platforms, and eventually working with buyers and distributors - every step of the way is challenging. Join Maureen Mwangi the Brand Growth Strategist behind some of America's most beloved brands, like L'Oréal, Chobani, Dove, as she tells you exactly the brand growth strategies big brands use to find their secret sauce, build a brand obsession, and maximize sales through solo episodes, curated guest experts across the beauty, fashion and food industry, and live consulting calls with her Product Profit Lab™ members!