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NOTABLE! Doing $75,000 USD Per WEEK (Service Business)

Discussion in 'Lessons from Success/Failure' started by 458, Nov 26, 2018.

  1. Lukebrisbane
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    Lukebrisbane Contributor Speedway Pass

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    458 will be the richest guy on the fast lane forum and possibly a billionaire one day.
     
    rwhyan, 458 and Private Witt like this.
  2. 458
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    458 Platinum Contributor Read Millionaire Fastlane Speedway Pass

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    Haha, maybe but that isn't my intention.. I enjoy the game more than anything, the money is nice though but being a b guy isn't a goal of mine. If I had that much money i would probably donate most of it, too much of anything is always too much, no matter what it is.
     
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  3. jcvlds
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    jcvlds JC Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Hey @458

    Still have some questions on this, thanks a lot for expanding on this.

    When you’re listing out the companies in your niche (competitors) to do some estimates on industry market cap, are you only listing out the ones in your geographical area that you are serving? Essentially, finding the industry market cap for just the zone you will be operating in. Thus, if I were only servicing a local metropolitan area, that’s the only industry I should consider.



    On another note, have you found success in other channels apart from direct sales? Are there any other particular channels you would recommend, or solely focus on one (direct sales) for a service business.



    Thanks again


    Sent from my iPhone using Tapatalk
     
  4. 458
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    458 Platinum Contributor Read Millionaire Fastlane Speedway Pass

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    I would caution putting to much emphasis on market cap as a signal to be in or out of a specific niche. It is not a tool to gauge whether you have or can have a competitive advantage, it is only used as a rough estimate to ensure you are not getting into a niche that is so shallow there is little chance you'll be able to scale and grow into an enterprise versus a one man show. Its a quick rough estimate calculation:

    1. Are there other people in this niche or a very similar niche?
    2. How many?
    3. How large?
    4. What public data is there on these large organizations?
    5. Run a rough estimate calculation
    6. Commit or move on.

    This is only done AFTER you have established that you do have some type of competitive advantage that justifies even attempting to be in this space. Anyone can print T shirts with funny images on them, just because you can to doesn't mean you should be there.

    In regard to your second question, yes, in direct mail but the margins are tighter and its harder to gauge what works and doesn't work in a short amount of time. You have to spend a lot and wait a long time to dial in a campaign for the most part. On the phone your stats are live and in real time so its easy to see what works and doesn't and then adjust.
     
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  5. jcvlds
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    jcvlds JC Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Awesome insight, thanks for this specific detail.


    Which form of competitive advantage (ie operate at lower cost vs competitors, or command a price premium, or perhaps both) did you decide to go after, and why?


    From what you’ve shared it sounds more so that you went for lower costs, by 1) really dialing in your sales and marketing to be closing deals very effectively and efficiently, 2) keeping your delivery and operations lean and efficient to the point of quality you are aiming for, and 3) post-sales service in which you mentioned you continue the customer relationship beyond the first sale for opportunities to upsell by knowing more of their needs and how to bring them more value.


    Was that the case at your company? If not, how did you see it?


    Which other forms of competitive advantage have you found are likely present in many industries today because the status quo has them complacent and comfortable?


    Sent from my iPhone using Tapatalk
     
  6. 458
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    458 Platinum Contributor Read Millionaire Fastlane Speedway Pass

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    You never want to rely on one macro advantage like price because your putting your eggs in one basket and that type of mentality always breaksdown over time.

    Instead you need to be stacking micro advantages through your operation that together over time build a "moat" around any type of competition coming in and taking over. Some of my top ones are:

    1. Speed to market (If you're not first you're last - Cardone)

    2. Pricing (I am not the lowest cost but my pricing makes more sense than a lot of other options)

    3. Technology (One simple example is headsets.. Ive called other companies and they have there guys talking on headsets built in the 90s that cost 5 bucks and sound like absolute dog shit. This is a small advantage when i have everyone on $150 headsets designed for making calls all day long)

    4. Clarity of message (A simple small over looked advantage.. How clear is what you are selling? Is your target market understanding FULLY AND COMPLETELY what they are exchanging dollars for? Again, I've called other companies and they confuse the shit out of people with what they are saying)

    And the list goes on and on. Honestly i could probably make you a list of 500 - 1,000 specific competitive advantages that i have over everyone else.
     
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  7. jcvlds
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    Sounds like a perfect textbook case study example, honestly, congrats. You looked at your entire value chain activities and optimized all of them, creating a unique set of activities, different from me-too competitors, that were pointed towards delivering a better value prop to your specific target market than others.


    Beginning to think about how to implement some of this. Thanks again


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  8. 458
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    458 Platinum Contributor Read Millionaire Fastlane Speedway Pass

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    And never forget time, time is interesting because the larger your moat gets over time the more your competition goes out of business and the cycle continues until everyone is gone or you are somehow put under yourself. A very long timeline example is Mom and pop retail > Walmart > Amazon. For a long time, no one could touch Walmart, but the internet has completely changed retail and there moat has started to breakdown.
     
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  9. Patrick Hughes
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    Patrick Hughes Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

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    I am wondering. How many times does it take you to fail and how persistent do you have to be to be at your level?

    I've run hard at multiple business types but none seemed to click. I guess you could call them failures. I feel like I'm fishing and just haven't found that one.

    A few months ago I did stumble across what seemed to be pure common sense.

    It was a weak point in all my business models.

    As I read more it clicked and clicked. It's almost like dating a woman and then it just sort of meshed. I've made more with my current model than all my other models combined LOL.

    I'm not sure if this means I'm going to fail again (kind of tired of that shit tbh) or not.

    I've pushed hard at this for years and read so many books it's not even funny.

    I am just wondering how much more persistence will it take for me to gain some decent traction beyond some fizzes here and there?

    Thanks.

    Take Control of Your Life Today!
     
  10. 458
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    458 Platinum Contributor Read Millionaire Fastlane Speedway Pass

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    This question is very personal in nature and there are so many variables at play it's almost impossible to answer.

    If you keep failing at different businesses you need to step back and narrow down the top two things you continue to do that prevents success. If you look hard enough eventually you'll see something that is common throughout all of your failures.

    The elimination of this will enable a higher probability of success on your next attempt.
     
  11. Veloce Grey
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    Veloce Grey Silver Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    I've seen so many variations of this one and every time I see/hear them it still astounds me.
     
  12. rwhyan
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    Hey @458

    Great information in this thread. You mentioned you are in a market with a cap around 100-200m.

    How are you able to make hundreds of thousands of calls sustainably? Won’t you reach the entire market pretty quickly?

    In another thread you answered a question similar to this but I’m still confused what you would do after reaching practically the entire market via cold call.

    In most B2B markets there simply aren’t enough businesses to pull off this high volume of cold calls. In my market, for example, there are roughly 12,000 businesses.

    Does this high volume approach (I.e. tens/hundreds of thousands of calls) only apply to B2C where the market allows you to make that many dials sustainably?
     
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  13. Alex123
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    458, I saw some of your other cold calling threads and they were amazing. When did you get in the cold calling game, any previous inside sales jobs? How long do you think it'll take to get to IPO level for your company? You guys seem to be growing like wildfire. Do you think cold calling would work for higher ticket items in the b2b sector? For example, My uncle runs a $200mil company in the cloud computing industry, and his clients are usually smaller-mid size business he charges 17k a month for certain services. When I talked to him, his company is entirely sales based, although they don't cold call, he said it was "outdated" and him and his sales guys pretty much just network/use events to gain clients. In this example, do you think your sales process/strategy could be effective for a business this size?
     
    Last edited: Feb 12, 2019
  14. Andreas Thrane
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    Hi @458

    I have a huge amount of respect for your success. Thanks for being a ressource on this forum!

    I am about to start my first service business. Mobile car cleaning with steam. Of what i know of, nobody else are doing this in my geopgraphical area. I live in a rural part of Denmark where agriculture is a big part of the business community.
    I want to position my product and business, but i see some different opportunities. The car cleaning business can be either B2C or B2B. I dont know how narrow and specialiced i should market the business/service.
    B2C: Everyone can order a car wash.
    B2B: Big companies with fleet of cars can buy the services - this include tractors because of the agriculture (This is based on a subscription based business model)

    Does the one exclude the other? OR should i create two different business?

    Thanks in advance. English are not my mother tongue, but i hope i made myself intelligible.
     
  15. 458
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    458 Platinum Contributor Read Millionaire Fastlane Speedway Pass

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    Market cap is typically expressed in a yearly amount. Therefore, 100-200m would be the amount of total business in that niche that is generated on an annual basis. If you were able to penetrate 1% of the market, your business would gross 1-2m in revenue per year.
     
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  16. 458
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    458 Platinum Contributor Read Millionaire Fastlane Speedway Pass

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    Cold calling doesn't work for everyone and everything but it works for a lot of things. B2B is typically harder when it comes to cold calling because you first have to get the decision maker on the phone and second convince him or her to stay on the phone with you. There is a much smaller margin of error when cold calling businesses. For example, you can't get me on the phone, its nearly impossible; and if you did i would just hang up the second you ask "Is this X?".
     
  17. 458
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    458 Platinum Contributor Read Millionaire Fastlane Speedway Pass

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    1. I wouldn't start that business, it violates most of the rules of starting a scale-able profitable business.

    2. If you MUST start that type of business then i would focus on calling businesses/individuals that are contractors and give quotes in person at peoples homes. These businesses/individual contractors have to show up in a vehicle that is sparkling clean every single time they go to give a quote. They know that first impressions are everything. And for those that don't do this, just write it in your pitch that you can increase there business through a sparkling first impression.
     
  18. amp0193
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    amp0193 Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    @458 What are you using to manage SMS follow ups?

    My price tag is high, and I use SMS a lot to follow up with customers. It's super effective, but it's all done on the phone, and using two thumbs isn't very efficient.

    Just wondering if there's some software that's good for doing SMS follow ups, preferably automated in some way.
     
  19. jcvlds
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    I've heard of a couple solutions through direct peers or through podcasts. Have never directly used any of them, so sorry I can't add any further insight or details to each.

    Thryv, Textedly, and Avochato. I believe some of the full-suite, more robust CRM's also have this capability (e.g. Salesforce, Close.io, et al)
     
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  20. Alex123
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    Makes sense. What outreach strategy would you recommend for b2b sales? And for future reference, how would you gauge whether or not cold calling will work for your niche, simply through testing? Thanks for your response! The knowledge youre dropping is GOLD.
     
  21. TheChosenOne
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    Making more than 500k in revenue means at least 37% goes bye bye.
    Have you figured out any loopholes that can help reduce those taxes? (Not the usual Depreciation or Shareholder Meetings type of loopholes.)
     
  22. 458
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    458 Platinum Contributor Read Millionaire Fastlane Speedway Pass

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    There are hundreds of options out there. Basically anything that is a VOIP app for Windows will work, it just depends on your budget and how much integration/automation you need/want. We use a basic option that allows us to copy and paste phone numbers and messages but not anything that is integrated with another application or API.

    Go here and look for something that fits your requirements:

    voip app for windows - Google Search
     
  23. 458
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    458 Platinum Contributor Read Millionaire Fastlane Speedway Pass

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    Dial 5,000 businesses and see what happens. If after 5,000 dials you have zero prospects, zero follow up calls, zero deals, then its probably a bust.
     
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  24. 458
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    458 Platinum Contributor Read Millionaire Fastlane Speedway Pass

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    S corp with officer W-2 is the best "income" tax reduction strategy because you can bypass a lot of self employment tax you would otherwise be subject to going Schedule C/LLC route. Other than that, taxes is just a cost of doing business.. If you want to pay less in taxes, make more money. Seriously, if you have an issue paying a lot in taxes, make more money..
     
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  25. Maxboost
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    Any mindset hacks for when you first got started?

    Any good book recommendations?
     

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