My entire career has been spent helping small hi-tech companies achieve explosive growth at ridiculously low cost. I want to share my knowledge and show you how to build the same strategic market advantage used to beat the competition.
Clients were easy to find during the 1990s. Rather, it was top talent that was in short supply and typically came with huge recruiting fees. In an era known for talent shortages, not only did I find the needed talent, but also drove recruiting fees down to zero. Today, the game has changed. In the wake of multiple financial collapses, the hi-tech market has become hyper-competitive. Limits on growth are now dictated by the cost of obtaining new clients.
Intuition might have you think the solutions to low cost people acquisition and low cost client acquisition would be quite different. The reality is that the solutions are closely related and remain critical to rapid company growth.
Let’s pause for a moment and explore the finances. Growth oriented companies typically spend of 25% of their revenue on sales and marketing. About one in four of these dollars is directed toward new revenue. A one million dollar company growing at 20% annually spends $65,000 to capture $200,000 in new revenue. That means a year one ROI requires a gross profit margin above 30%. That is a tall order for any company. It is a simple mathematical truth to why rapid growth companies are rare and usually backed by venture.
The stark reality is that the ROI on new business is measured in years, not months. In short, the high cost of new revenue is the number one factor limiting company growth.
In 1997, I shifted from people acquisition to client acquisition. Since then I have taken 3 companies from startup to segment leader, attributing success directly to my ability to slash costs. The success formula for low cost revenue acquisition has changed dramatically over the past two decades. Today, client acquisition depends a lot less on sales expertise and a lot more on technology and technique. It is a bit like the auto industry where a computer has replaced much of the master mechanic’s diagnostic expertise. The good news is that any individual at any company can leverage my methods much like an average mechanic armed with a diagnostic device. I can’t help you bring the your costs down to zero as I did in the 90s finding talent, but I can show you ways to slash your costs by up to 75%.
Twenty years ago you could simply add staff to your cold calling department and slug your way to meet your growth goals. Today buyers behave differently. With the adoption of the Web, they are more educated and elusive than ever. Buyer behavior changes have created both challenges and opportunities. Any individual at any company in as little as 15 minutes a day can make real progress on lowering the cost of new revenue. Recently, I presented some of these ideas at the Duneland Innovators meetup. Watch this video and gain some valuable insight on slashing your cost of new business.
@RobertWolfrum presented on #LeadGeneration #Bootstrapping at the last #Meetup - see the #video here#nwIndiana #sales #business
Posted by Duneland Innovators on Sunday, August 2, 2015