As a business owner, when risks and big decisions come your way, are you asking yourself the right questions?
Episode 24: Taking Risks Correctly
You are now listening to Leverage for Growth. Hey everybody this is Jesse P. Gilmore founder of Niche in Control and creator of the Leverage for Growth, welcome to the daily leverage edition.
Today’s topic is this “Taking Risks Correctly”. Sit back, relax and welcome to today’s daily leverage.
So this morning, I was doing my morning routine of stacking and reflecting on a decision we had made last year to switch from 1:1 coaching and monthly recurring revenue, to group coaching and annual recurring revenue.
This was a risk to the structure of how we brought in cash to the business.
There are some decisions that I would have done differently to mitigate the risk to cash flow and the lessons learned
We didn’t know how much of a difference it would make to change our business model
At the time, I had been overly optimistic with client acquisition since we had been getting client results with our 1:1 clients that included acquisitions, 6X growth in a year and multiple clients doubling their monthly recurring revenue within a couple months of working within Leverage for Growth
Our case studies began to speak for themselves on how we can generate client results
I knew that I could not grow the business if every time I took on a new client, it meant more hours for me to fulfill
I had to figure out a way to make the business model switch without our clients suffering from the changes
So this is what I did
I sold out of my 1:1 clients first
Then hired Jeremy for operations to help me in the backend as we prepared for a new program/service called Alliance our mastermind for agency owners
I learned all that I could about the new model, how it works, but the problem was that we have historically never been good at optimizing paid advertising
No matter how well we have tried iterating the messaging or spent more money on it, advertising has not been our strong suit
The way I learned about masterminds and how to scale them was all based on paid ads, yet we were switching out of monthly recurring to annual recurring revenue and didn’t have a lot saved up to invest in ads
So we had to do a pivot to our marketing in Q4 of last year to go back to what we are best at
Events and direct outreach
Paid ads had always been an energy and money drain for us
A shiny object
If I were to do it all over again, I would have kept with what we were good at and kept the 1:1 clients for a little longer to keep cashflow going.
Slowed down on the launch and roll out of our mastermind
This would have allowed me to mitigate the risks while making the changes that needed to happen
Hindsight is 20/20 for a reason
Now that we have doubled down on our strengths, leads are no longer a problem
It is because we are choosing to take risks correctly that we are able to see our vision with our mastermind start to come to life now
Why is this important?
Many times as entrepreneurs, we know that we must take a risk or a leap of faith in order for our business to grow
Sometimes it is a little risk and other times it is a big one
When we decide that we must take the risk, there are a few things we must think about
How will this impact cash flow?
What obstacles might come up that make this risk bigger than it should be?
What moves can we make now to prevent those obstacles from getting in the way of our goal?
What is the timing of the risk? Is there a better time to take the risk?
Avoid, mitigate, transfer or prevent the risk
Understand the risk before making the decision
By doing so, you are stepping into the CEO role and guiding your business through the sea of opportunities to avoid the pitfalls
Now it is time for the daily leverage.
Where in your world whether in your life or business, have you been either taking risks too quickly and need to slow down and do it right? Or have been avoiding taking risks all together and need to take risks the right way?
Is it in your life with your health or body?
Is it in your life with your spirituality or self-direction?
Is it in your relationships with your spouse, partner or kids?
Is it in your business or finances or team?
Once you have located where you have been avoiding or taking risks incorrectly
What are you willing and able to do about it today?
That is the end of our daily leverage. This is Jesse P. Gilmore and you have been listening to the Leverage for Growth podcast.
Thanks for joining me on the Leverage for Growth podcast. I believe in you and your capabilities. I hope you spend the rest of your day feeling inspired. But keep in mind that inspiration is fuel to propel you into action. If you do not take action towards your own growth and the growth of your business, then that inspirational fuel that you’re feeling is wasted.
Put your ideas into action by joining me in the next live event. It’s online. Go to nicheincontrol.com/nextliveevent. We have events every other week and we cover all sorts of topics that will grow your business when you put them into action. So these events are for you to put that inspiration and creativity into practical action to grow your business. I would love to see you there.
Go to nicheincontrol.com/nextliveevent. That is nicheincontrol.com/nextliveevent. See you there!
At Niche in Control, we unlock your potential within you and your agency through the development of you as a leader. You step forth to discover the potential you have always had. We help you with clarity of vision, strategies coming from a place of competence, operational systems to develop consistent client results, retention, pricing and packaging to differentiate you from the rest of the market and finding, developing and managing the right team to support you in the realization of your vision. Stop playing small. Rise to your potential. Your time is now. Can you feel it?
I’ve gotten more time, more clarity and more money.