MASTERING MAYHEM PART II
This series was birthed first by the fact that 2020 is likely to be as hard or harder than 2021. 2020 was a surprise. I get that, but I’ve been concerned that as people discuss putting 2020 in their rearview, they expect the terrain to smooth out and flatten in 2021 when it will likely be as rough and hilly. Yet, with the right action and “pivots” we can overcome.
An analysis by a financial firm found the common themes among companies that grew 800-1000% in 2020 as compared to those that broke down.
For those small, medium, and large companies that thrived, the ability to maintain a high level of quality communication with customers and employees, leverage a remote workforce, increase sales online, and incorporate more and more technology into their products and services. Through their will to adapt and commitment to succeed despite a rigorous terrain these organizations showed us all that there is indeed a bright future for entrepreneurs of all kinds despite news to the contrary.
I was always intimidated by technology and anxiety is still my knee-jerk emotion whenever I’m required to dive into the next machine, platform, app, or product that shows up at my door. I did come to realize, however, that you have to be crazy to ignore that we’re moving to a 100% tech world so you can no longer go by the phrase, “I’m not a tech person.” Now. I am heavily involved in the technology industry in a number of ways.
In this article, I want to give you a bit of a stronger nudge into technology as our current situation has forced all of us that hope to not just survive, but thrive to look deeper into tech and how to profit from its growth, employ it to better serve our patient/clients/customers/members and maximized the amount of work we can perform digitally.
HERE ARE WHAT THE COMPANIES WHO FAILED IN 2020 HAD IN COMMON:
- 50% or more of their business was in brick & mortar. Half or less was done virtually/digitally.
- 50% gross margins for their base sales. A common profit benchmark for physical products and services is 50% where virtual/digital profits can have no hard cost whatsoever or 100% margin (Not including fixed overhead expenses)
- Have less than 50% gross margins for other sales. Make less than 50% profit on some of their products and services.
- Only 1-2 streams of income. These companies sold only one basic product category such as: Food, health care, memberships, clothing, etc.
Ultimately, businesses that are not effectively pivoting into technology are perishing.
On the other hand, many essential or other businesses are surviving or did extremely well in 2020, but through hard work and a future that is suddenly looking less bright. In this case, it’s not pivot or perish; it’s pivot or fall short of your potential.
TO MOVE TO THE SUCCESSFUL COMPANIES AND AWAY FROM THE UNSUCCESSFUL, HERE ARE 4 AREAS TO CONSIDER:
- Improve Your Product mix. As an example, many doctors have gone from brick & mortar services only to telehealth and supplements that can be shipped. With no hard costs, a telehealth visit of $200 has a profit of approximately $200 vs. traditional clinic overhead of 45-55%. Virtual sales, when done correctly on physical products, create an additional stream of income that for many have more than replaced anything lost by Covid – or what may be other slow-downs or shut-downs in the future.
- Tech tools. It’s not just doing on-line business and selling virtual products. There are more and more and more tools coming on the market that can help you grow your audience and not only mass-communicate your message; but monetize your teaching, consulting, and coaching as well.
- A radical shift in customer service. Studies show that a company can substantially raise prices in direct correlation with improving customer service. Apple, Amazon, Twitch, Tesla, Disney, and many other megaliths continually focus on loyalty campaigns and building strong relationship that creates a willingness on the part of the customer to happily pay more for the company’s products or services. You see this also in upstarts like Peloton who have a world now wearing their t-shirts. Once again, there are virtual process and great technologies in existence designed to virtually partner with your people.
- Feedback is necessary for success. In building 100s of successful locations for my clinics and other businesses, all of our policies and procedures possessed a level of fluidity based on consumer opinion. I never wanted to force my way into someone’s life and try to fit a round peg in square hole and I certainly did not want to get caught up in the internal dogma of my profession rather than doing what works to serve people and get them results.
Virtually every process we have has been generated or molded by feedback. One of the top degrees being offered in business and marketing schools today and utilized by the world’s top companies is “Analytics.” This is leveraging feedback to determine policy, process, promotion, which products to sell, messages to post, and when. If you’re leading by intuition instead of feedback, you’re lost.
You’re not in this alone, let us know if we can help
Dr. Ben
