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Transforming The Way African Does Business
OUR ORGANISATION
Growing Small Businesses
The Critical Path way and Remedies
Our World Leader-At Your Service…David Abingdon, Founder of Alchemy International
David the founder of the Quantum Organization and Insurety PLC leads Alchemy’s worldwide operations. He gained notability for taking three organizations from zero to multi-million pound ventures – each in less than 12 months using the Alchemy growth methods.
For one of these organizations he made them a staggering £35 million and was paid a £1.27 million consultancy fee. David is also regarded as a leading Business Development expert and has written several proprietary publications. 1 of the business book is called; ‘Out of the Box Marketing’.
David has appeared in the BBC's ‘Money Programme’ and BBC News. He has featured in the Guardian, Scotsman, Australian Wealth Creator Magazine, Success Magazine and the Australian Financial Review. He has also provided comment and articles to the Sunday Times, Daily Express and Marketing Magazine.
Samuel leads POT Ltd. He has extensive business, marketing and finance training including a post graduate training in Information Management, Finance and Business Development in the UK.
He qualified as a Chartered Accountant in 1999 and has over 12 years post qualification experience within corporate Nigeria and the UK. He started his corporate work career with CCHBC, a multinational sales and marketing organization operating in 26 countries and Samuel was promoted 5 times within 6 years in a company with over 8,700 employees within its Nigeria operation. He is the founding CEO of The Treasure Place Ltd; a UK based Training and Business Development organization.
Now at 39, Samuel has appeared on AIT popular Business Lunch program on couple of occasions and also featured on the Lagos Television Investment Café program severally. He has also provided comment and full page interview in the Nigerian Guardian newspaper and Westerner Magazine. He has also provided comment and articles to the StockWatch weekly newspaper.
Alchemy Nigeria Team LeaderSamuel Ajayi, POT Limited Chief Enlightenment Officer
David Omololu Aiyeola is an award winning informational and transformational reformer and a self-motivated team player, with a passionate focus around Entrepreneurship (MSMEs start-up & Business on the bubble), Marketing & Business Development, Public Affairs, while promoting financial literacy among children and youths.
He was once the head of Projects, Public Affairs manager with ZODML, a BRF & Lagos State Ministry of Education Back2Back Awards winning NGO that specialize in establishment of Libraries. www.zodml.org.
Currently he doubles as the Executive Secretary of NASME Lagos and the Project Manager Nigeria, African Initiatives, Thinkroom Consulting SA, Microsoft SME4Africa Programme.
A product of LEAP AFRICA/IYF Leadership Training Programme 2007, US Government /Microsoft Employability skill Training 2008, FATE Foundation’s SAMSUNG Real Dreams Entrepreneur 1, 2009. LEAP (Y.D.T.P) 2013, (Y.R.P) fellows Incubator Africa, 2014. Lagos State/AGDC Ignite Ideas Entrepreneur 2015.
David O Aiyeola, Edufunfunds Ventures CEO
THE SPACE
SUCCESSORY PICTURES OF FACT
SUCCESSORY PICTURES OF FACT
SUCCESSORY PICTURES OF FACT
SUCCESSORY PICTURES OF FACT
SUCCESSORY PICTURES OF FACT
A summary of the top five SME problems:1. Lack of market research knowledge. (The
idea that everybody will love the product).2. Access to finance problems/
Mismanagement3. Enabling infra structure problem(virtual
hubs, power supply, good roads etc4. Multiple Taxation problem5. Incompetent Employees/ in experienced
CEOs
What Kills Small Businesses?Why is it that 80% of biz fails
with the 1st 5 years
What are the Challenges of growing Small Businesses?
Why is it that 80% of biz fails within their 1st 5 years?
THE REAL REASON BUSINESSES
FAILS TO GROW IS BECAUSE THEY RAN OUT
OF CASH! AND THEN THEY DIE!
1. They don’t have enough customers coming in, doing business with them
2. They fail to attract enough prospects
3. They fail to convert them4. Then they allow their current
customers to slip away from them to their competitors.
What Kills Small Businesses?Why is it that 80% of biz
fails with the 1st 5 years
87% of customers stopped doing business and buying from you not because they die or find better price or product, its because they feel unloved!
What Kills Small Businesses?Why is it that 80% of biz
fails with the 1st 5 years
Ways to grow your Business
1. Start with a mission statement ‘ Lead & Dominate’
2. Another way to grow your business is for you the CEO to have a clear understanding of your product and services. What sort of Business are you in? Accountant, Solicitor, Car dealers, Hoteliers (Solutions Vs Purpose of Biz) Everybody is in the Sales and Marketing Business.
3. John Paul Getty : Said you look at what your competitors are doing and you do it differently and even better.
What Kills Small Businesses?Why is it that 80% of biz fails with
the 1st 5 years
Let us march.
The Starting Point
The End Result
RPA
WHAT IS YOUR BUSINESS GROWTH STRATEGY
Create & Pursue a Business Growth
Strategy:
Market Share Vs Wallet Share
STAKING OUT A VIVID MARKET IDENTITY
•200 pupils x N166,667 per term = N100 million •1,100 pupils x N30,300 per term = N100 million
Niche Your Business Beyond 100 Million Naira Mark
MARKETING &
INNOVATION
Produce Result!
S
USE 7 STEPS TO MAKING A SALE
1. Develop rapport
2. Qualify – establish
need
3. Build value
4. Create Desire
5. Overcome objections
6. Close the sale
7. Follow up
CALCULATE CUSTOMER LIFETIME VALUE
Customer is the Reason Why You’re in Business.
What’s Their Worth to You?
Customers are your most valuable asset. By knowing the ‘Lifetime Value’ of a customer, you’ll know - through a simple scientific process - what you can afford to spend to acquire a new customer as well as keep your existing customers.
It is: The average purchase value,
Multiplied by: The average number of times
they buy in a year,
Multiplied by: The average number of years
they remain your customer,
PLUS: The monetary value of their referrals.
WHAT IS THE ‘LIFETIME VALUE’ OF A CUSTOMER?
Just a 5% Just a 5% increase in increase in each of the each of the 7 Alchemy 7 Alchemy
KeysKeys = =
134.37%134.37% overall overall
markupmarkup
SoSo
The Value of Each
Customer Increases
FromN44,550 to
N57,015
6.3XX N5,986,543
=== N950,2
45
==
15.75%
=N859,950
XXN52,500=
N5.46m
XX31.5%= 33
XX 3.15= 104
XX105
USE NO LIMIT STRATEGIES
10.5%=N90,2
95
++
30%30%= = 30 30 SalesSales
100100Per Per YearYear
15%15%= =
N675N675,000,000 Gross Gross ProfitProfit
33= = 9090 SalesSales
10%10%= N67,500 = N67,500
Annual Annual Gross Gross ProfitProfit
Total Annual Profits
= N742,500
66YearsYears
Lifetime Value:
= N4,455,0
00
KEY 1KEY 1 Number Number of Leadsof Leads
KEY 2KEY 2 Conversion Conversion
RateRate
KEY 3KEY 3 No. Of No. Of
TransactionTransactionss
KEY 4KEY 4 TransactioTransactio
n Valuen Value
KEY 6KEY 6 No. of No. of
ReferralsReferrals
KEY 5KEY 5 Profit Profit MarginMargin
KEY 7KEY 7 Buying Buying LifetimeLifetime
N50,000N50,000= N4= N4..5m 5m
Gross Gross RevenueRevenue
XX XX XX XX
XX== ==++
Now by just adding 5% to each key…
THE ALCHEMY 7 GROWTH MULTIPLIERS
Use Alchemy 7 Growth Multipliers
Use Alchemy 7 Growth Multipliers
that works by increasing the average:
that works by increasing the average:
11-- Number Of Leads.
Number Of Leads.
22-- Conversion Rate.
Conversion Rate.
33-- Number Of Transactions
Number Of Transactions
Per Year.Per Year.
44-- Transaction Value.
Transaction Value.
55-- Profit Margin.
Profit Margin.
66
- Number Of Referrals.
- Number Of Referrals.
77
- Average Buying Lifetime
- Average Buying Lifetime
(Years).(Years).
Turning
Good to
Better
Good Better
Increasing Your Number Of Leads
Building Your Business with Alchemy 7 Growth Multipliers
110 METHODS
1• Host/Beneficiary
Relationship• Lumpy Mail• The Bait System• Professional
Affinities/Networking
• Direct Mail• Referrals• Seminars
NumberNumberOf LeadsOf Leads
Host/Beneficiary
Relationship
RECOMMENDED STRATEGY ONE
Class Task:Step 1: Identify targetStep 2: Identify hostStep 3: Determine vacant spaceStep 4: Determine record timeStep 5: Create loyalty coupon
Love Based Strategy
RECOMMENDED STRATEGY TWO
Organise Competition
Class Task:Step 1: Identify target in large nosStep 2: Identify hostStep 3: Set rulesStep 4: Discuss with authorityStep 5: Issue scholarship/ Discount voucher
63 METHODS
2 Conversion Conversion RateRate
• Niche Marketing• Position
Marketing• Guarantees• Testimonials• Demonstration &
Site Tour• Follow Up• Give to Receive• Send a Gift
Cheque
Building Your Business with Alchemy 7 Growth Multipliers
If you want to close more sales- become a Welcome Guest Marketer using the RIGHT:
M - Marketing MessageA - Audience D - Delivery System
Increasing Your Conversion Rate
RECOMMENDED STRATEGY THREE
CREATE A CUSTOMER FOCUSED USP
Identify the aspect of your service you want to focus on. What makes you different from all the rest? How do you stand out from the pack in a crowded field of competitors?
Class Work-Creation of Irrestible Guarantee
What you’re prepared
to do to remove the risk from your customers
so you can increase sales?
1. The “industry standard” discount
2. What my competitors do3. What I am prepared to do
RECOMMENDED STRATEGY FOUR
Offer An Irresistible Guarantee/Testimonial
Offer an ironclad guarantee to eliminates the biggest fear to making a buying decision, overcome buyer resistance, and PROVE that what you’re selling is a great deal.
Class Work- Creation of USP
Service: ___________________________________________________The top 3 reasons prospects buy this type of service:_________________________________________________________________________________________________________________________________________________________The advantages this service has over others like it:_________________________________________________________________________________________________________________________________________________________The services USP: Use this two sentence paragraph as a template:
“You know how most similar services (do this) and leave you with (a negative)? Well, this service does __________, which means ______________ to you.”
Increasing Your Number Of Transactions
55 METHODS
3 Number Of Number Of TransactionsTransactions
• Competition• Practice
Customer Differentiation
• Use Bounce Back
• Start a Specialty Club
• Gift Certificate• Sell the
Experience• Create a
Newsletter
Building Your Business with Alchemy 7 Growth Multipliers
Like a mini-seminar, a workshop can be an extremely good way to garner many new clients while making money at the same time. For example, a school can offer a workshop titled: “Winning Money Habits”
Workshops
RECOMMENDED STRATEGY FIVE
Increasing Your Transaction Value
53 METHODS
4 TransactionTransactionValueValue
• Raise Your Price• Back-End Sales• Down-Sell• Questionnaire• Instilling Trust• Sell Value Not
Price• Consult For Your
Own Product• Use Element of
Free
Building Your Business with Alchemy 7 Growth Multipliers
Start a Specialty
Club
Schools should have
Schools should have
clubclub
that teaches scrabble
that teaches scrabble
andand
Life Mastery Skills
Life Mastery Skills
suchsuch
as Financial
as Financial
intelligence,
intelligence,
emotional
emotional
intelligence,
intelligence,
creative thinking,
creative thinking,
RPA etcRPA etc
RECOMMENDED STRATEGY SIX
Increasing Your Profit
Margin
68 METHODS
5 ProfitProfitMarginMargin
• Systemization• Measure &
Monitor Fin Statement
• Establish Benchmark For Future Plans
• Budget Monthly• Buying Group
Building Your Business with Alchemy 7 Growth Multipliers
Inform your customers that your gift certificates will get them a 15 percent discount over a regular price for increased motivation.
Sell a Gift Certificate
RECOMMENDED STRATEGY SEVEN
People, System, Service
Improve Your Efficiency to Boost Your Profit
RECOMMENDED STRATEGY EIGHT
Increasing Your Number
Of Referrals
57 METHODS
6 Number Of Number Of ReferralsReferrals
• Owe it to Others• Core Referrals
Group• Referral Letters• Customer
Appreciation Day• Send Gift• Freebie for 9th
Customer• Up the Reward for
Each Referral
Building Your Business with Alchemy 7 Growth Multipliers
Organise Customer
Appreciation DayOffice Task:Identify - Great PartnersIssue - ChequesInvite - Great PartnersHold - BanquetDeliver - Great GiftRequest - Referral
RECOMMENDED STRATEGY NINE
Increasing Your Customer Buying Lifetime
38 METHODS
7 BuyingBuyingLifetimeLifetime
• Excel at Customer Service
• Invite Them Back
• Create Longetivity Psychology
• Customer Appreciation Contest
• Invite Customer to Buy Stock in You
Building Your Business with Alchemy 7 Growth Multipliers