Welcome to the first episode of FWRD Business Thinking and thank you for joining us. It is my mission to find and interview leaders thinkers and visionaries to help you Connect, Retain and Thrive in your small business.
Today I have with me Jason Paizes. Jason will sharing tips on how to generate and convert more online sales opportunities using funnels. If you’re keen to discover how automation can lead to increased profits, this is the Podcast for you.
Jason is a serial entrepreneur and visionary. Starting his first business at aged 24, he has since diversified across multiple industries turning his hand and his skills to whatever opportunity comes his way.
His strengths lie in streamlining and systemising businesses to achieve improved business performance. He is passionate about cloud technology as a tool to achieve scalable growth and residual income. He has been involved in all aspects of business from micro companies through to multi-national enterprises. His successes include helping small businesses grow from single person operators to national franchises and he has worked in some pretty exciting places including the former Soviet Union, Argentina and Chile.[powerpress]
Jason Paizes – The Funnel Works
firstname.lastname@example.org / 0404 301 985
Frances: Welcome to the first episode of FWRD Business Thinking and thank you for joining us. It is my mission to find and interview, leaders, thinkers and visionaries to help you connect, retain, and thrive in your small business. Today I have with me my good friend Jason Paizes. Jason is a serial entrepreneur and visionary. Starting his first business at age 24 he has since diversified across multiple industries turning his hand and his skills to whatever opportunity comes his way. His strengths lie in streamlining and systematizing businesses to achieve improved business performance. He is passionate about cloud based technology as a tool to achieve scalable growth and residual income. He has been involved in all aspects of business from micro companies through to multinational enterprises. His successes include helping small businesses grow from single person operators to national franchises and he has worked in some pretty exciting places including the former Soviet Union, Argentina and Chile. Welcome Jason. Thanks so much for being here and joining us on our very first podcast. It’s great to have you.
Jason: Thank you Frances. I’m excited to be here.
Frances: Is this your first podcast recording as well?
Jason: It is.
Frances: We decided that we would jump on the bandwagon and see what all the fuss is about. Jason and I work together a lot and we are constantly talking about new technologies new systems and new tools that can help our clients. And we decided that we would share a little bit of that with you today. Jason, tell me what’s exciting that’s going on for you right now?
Jason: Recently I’ve set up a few new ventures and it’s been really exciting to see the way that technology has changed. I’ve been involved in systemizing and building businesses for a number of years and the way that the Internet technology and in particular cloud applications have affected the way that businesses can streamline the processes and run their businesses has been very exciting for me and as such I’ve taken that and I’ve used it to set up a few new ventures including Amazon businesses, including helping clients of mine to improve their own businesses and including a number of product based businesses, e-commerce that I’ve been setting up recently. Yes, it’s been an exciting ride and I’m excited to be on a podcast with you.
Frances: Thank you. There’s certainly a lot of exciting developments and changes that are going on in the technology space. And what’s exciting for us is that small businesses are able to take advantage of these changes. We’re always looking for new tools and new software that we can share with our clients and with our networks so that they can build scalable and potentially saleable businesses.
Jason: Absolutely, and what’s exciting is that only a few years ago you would need to take on another employee’s salary of between 30 to $50000 a year to do activities which can now be achieved through software, through cloud applications that cost you a subscription of tens of dollars a month. And once you can identify those systems and implement them correctly in a business which is now something that a business owner themselves can do with a bit of direction, you can easily save one to three person’s salaries a year and turn their attention to business development roles rather than to administrative tasks.
Frances: We’re not putting people out of work, we are helping businesses to build bigger businesses as a result of technology so that your team’s time and expertise can be spent in better areas than admin right.
Jason: Correct. It’s all about scaling businesses and what this allows you to do is move people to business development functions and again using technology you can facilitate growth in a business and almost unlimited scalability. If you look at outsourcing, and that’s something we do a lot of is outsourcing administrative tasks to systems rather than to people. It’s a new concept that we’re pushing pretty hard and we are implementing both in our own business, as well as in our client’s businesses, is this concept of outsourcing to software. It’s amazing. It means you’re outsourcing not to a person but to a system that operates 24 hours a day seven days a week for fairly minimal cost considering. And importantly, what it allows you to do is to address your business and manage your business by statistics. That means you can take the business process. You can get an understanding of the efficiency of the process by the numbers coming out and then if should there be bottlenecks or inefficiencies you can address the system rather than it being down to a variable aspect of that person. Yes, it’s very exciting.
Frances: Can you give me an example of a client that you’ve been working with that you’ve implemented a system for that you’ve seen some really great results?
Jason: Yeah, we’ve been working with a number of clients and we’re getting quite a lot of experience in the coaching industry. Being able to implement a system for a business coach for instance is pretty exciting because it’s a set process. A business coach is looking for work on one aspect and to streamline a sales funnel for a business coach is something that can be done because it’s an education series. They really need to go out and understand who the target audience is and then provide value through education. Once a lead gets turned into an actual customer then it’s really a process of delivering information and content in a systemized way. And that is whilst it is a very personal touch to a business culture, it’s also a process that takes an organization from one point to another and that type of process can be systemized to a certain degree, and you can manage that. And of course once you systemized a process like that, it allows you to get more and more clients on board and deliver information in a structured way. And we’ve also been involved in a number of industries that involve things like physical reports coming out like building inspectors and paced inspection industries. Again that’s a really exciting industry because you can automate a quotation process. You can systemize the shadening of the job, the checking of payment against the job and obviously the handling of outgoing communications according to whether or not it’s being paid. And then you can hold back the delivery of a report based on whether or not the customer has paid for the service. All of that can be systemized fairly easily using systems that cost you in the tens of dollars a month. And if you think about the benefit for a building inspection or paced inspection company from that aspect it allows him to scale to franchise level because you’re no longer dependent on people collecting money.
Frances: Correct. And so the businesses get paid faster. And there’s no administration time spent chasing of invoices right.
Jason: Absolutely. As a matter of fact it’s so exciting. In certain industries we’ve been able to guarantee to a certain degree the complete removal of bad debt through pure systems implementation. It’s really interesting even if you consider the delivery of something like a report, the system can hold back delivery of that report until such time it has been paid. We might have a case where it doesn’t get paid but the report never gets delivered. It does not fall into a bad debt category. And in the removal of bad debt, and in particular having to not have somebody chase that debt means that, that person that was chasing debt can now be turned into a business development or income role and build the business.
Frances: That’s exciting times, really is. One of the things that we’re most excited about at the moment is sales funnels right. They say it’s relatively emerging for the small business sector. I think that people are starting to understand lead magnets and landing pages and pushing that through to CRM systems and then upsell sequences. But most small businesses haven’t quite yet managed to achieve really effective high conversions sales sequences or sales funnels. Would you say that’s fair to say?
Jason: Yes, sales funnels is one of those fairly misunderstood or fairly common terms that everybody’s heard of but nobody really understands the different aspects of it and the fact that there’s more than one sales funnel type. We talk about sales funnel in the context of lead generation where you might be a social media campaign out and you get people in by giving them something and then they’re in your database and then it’s figuring out how to educate them and sell them. That’s your typical sales cycle. However, within that there’s a lot more that can be done and what we work a lot with now is monetization funnels as well as activation funnels. The first type that I’ve just spoken about is called acquisition funnel. That’s your typical funnel. But if you think about where the lowest hanging fruit in your business is, that’s really in your database.
Jason: And everybody says that the money is in the database but there’s so many businesses that we work with that have a significant sized database and a thousand people in the database can be business changing for a certain type of business where 20000 could be business changing for others, it’s not about the size of your database, it’s about what you do with them and what percentage of your databases actually active. Meaning, they’re spending money with you. And if it’s a low percentage and so many companies do this, they have a lot of people come into the database. They sell to them once and then never touching again.
Frances: That’s right.
Jason: Even if they’re on a monthly newsletter. What we do is we implement what’s called an activation funnel which activates those non-active people to actually spend money with the company again. And that is a really clever fun way by, we say to me out to the existing database. We then upsell or downsell called profit maximizing. You give them something, you make other flesh sell offer or an irresistible offer. Should they go for it. We know they’re in a certain mindset and we take advantage of that mindset by dropping them straight away to either one click up or down sells depending on where they’re at and depends on the industry. And what we find that it does is it converts, it will change the dynamics of the funnel such that your average money spend from a certain person will go up sometimes an order of magnitude where your first offer might be $30 that could land up on the other side of this funnel having spent $300 and not be part of a membership site. It’s really exciting to actually activate customers rather than focus purely on lead generation funnels.
Frances: Absolutely and most small businesses are just leaving these people this money on the table. Essentially they’re building their lists but they’re sitting on them and they’re not really maximizing them in building relationships with them. And that’s what the funnels are designed to do, right?
Jason: Well, and the interesting thing is that the tools we use again focusing on the subject of the podcast is the tools we use and what we specialize in, need to be tools that a business owner can use. Gone are the days that when we can afford or anybody can afford to get a web developer to put a landing page together and then get that web developer to make variations on that landing page. Bearing in mind we’ve got several landing pages and now in one focused funnel and what you wanted them do is put a funnel in place very quickly. In other words, generate a landing page within an hour or two as a business owner. And then you want to be able to create split tests on it very quickly and easily. And we’ve got tools,
Frances: Just explain what split testing means to you.
Jason: That means, there’s no way we manage pretty much everything we do through statistics. We want to understand the conversion. We want to understand the performance of a particular effort, be that a campaign or landing page. But we don’t know. Many people say, “Will this perform well? Will this email perform well? Will this landing page perform well?”
Frances: How do I know that I test it?
Jason: No idea.
Jason: What you have to do is get it out there, get it on the contents of your list and only then and one statistic start coming back and showing you these numbers will whether or not it’s performing well. However if you’ve only got one version of a page, the numbers coming back as a single sample size. You don’t know whether it could be performing better or worse. And we know that something as simple as a headline on a page can affect a conversion rate by tens of percents.
Frances: Right. Give us more examples of all the variables that you might look at in order to increase those conversions.
Jason: Well everything from your call to action, your positioning of “Buy Now!” buttons on a page, the headline, even the colors used can affect a conversion rate. What that means is it’s very important for us to be able to create multiple versions of the exact same page with one variable per version provisions.
Frances: There’s no point in changing like the headline and the image and the color and testing it. You need to change the header, test. Change the image, test. Change the color, test.
Jason: But ideally you want to have those tests all running at the same time. We don’t want to have one campaign running for three months because we have a variation of this one page per week at a time. What we can do with some of the tools that we use is create a page and then with a single click you can create a duplication of that page. Then we make these small changes. We can get another replication of page makes more changes. Now we’ve got three versions of the same page with one URL, one landing URL. That means and the system will then handle that such that when a person lands on Europe they’ll see one version of the page. The next person that lands on it will see the next version and the next it will be a round robin format. And so that means that you can now market your entire database. You can push yourself to 5000 people and coming back from that each person will end on a different version of that page that you’ve set up. And very quickly within the first few hundred people you will see which one of those variations is performing the best and you run it as a competition. You make one the winner and then the rest that are not performing. And it might not be the one that you suspect. Very often our clients are very conservative, very conservative I’ll protect my brand, I’ve done this I’ve done that. And we said well maybe you need to be more bold in the colors you use.
Frances: Yeah, add a bit of humor, and a bit quirky in your copy.
Jason: There’s no way we can work that out because we are not the clients. Very quickly you’ll see and you can create 10 versions of a page changing bits and pieces only. And because you cause all at once you’ll see the statistics building up against each. And normally we find one is a clear winner performing a lot better conversion rate. It’s a lot better and it’s a one click to remove all the rest and make that one a winner and if need be then go and create variations of that particular one. As been the rest, create versions of the one that’s working. And ultimately like all the rest of our business processes it’s coming down to working out the best performing and addressing the system, addressing the actual campaign rather than it being subject to thinking, “Oh I like this page, it’s baseless what’s wrong with that, and not knowing what the outcome of that side.
Frances: That’s right and the system can actually do this for you as well so that doesn’t even have to be any manual input and actually starting and stopping a campaign. The system can make that decision. This one’s performing best. Let’s roll out the rest of the database, right?
Jason: Yeah, depending on which system. And that’s one thing that we focus and we fail the system agnostic in terms of our approach. t’s really identifying the best solution for a given problem. And of course, sales funnels used to be addressed by web development to spend several thousand dollars putting a few pages together and then every variation of it. It’s just a really inefficient way to do it and that’s why it’s so exciting with the tools available to small business these days and that’s any number of landing page type systems including the clickfunnels and leadpages. These types of systems allow you to do this very quickly for a few tens of dollars a month. And I think clickfunnels is $97 a month if you consider that in the context of web development, you’d be silly not to use something like one of these tools to streamline your business and that just allows you to have more control and put a lot of real smarts into your business for to essentially trivial.
Frances: That’s right. I mean I don’t know about you but my software costs are skyrocketing. But I see that as being an investment and certainly something like clickfunnels is an investment in your marketing strategy and it will return. You would have spent that money else otherwise on a web developer or graphic designer and now you’re just reinvesting it in a software that will perform for you.
Jason: Well exactly and it can be seen as an investment because it needs to be a self-funding exercise. From day one if you implement the system correctly, the money that will return you, you need to work it out in terms of number of parts depending on the cost of your product. If your product’s $37, digital product, that’s one thing you need is all three of them and the system pays for itself. Of course your service industry or a consultant or a coach or a business coach or even look at is when you’re talking hundreds of dollars for a single inspection. And if you consider this going out and being able to statistically assess in this way. Plus when we talk with a smart of connecting that funnel then to something like a customer relation management or CRM system be it ZOHO, Infusionsoft, Ontraport, you can seamlessly connect these together and drop them into a merger sequence that you would have anyway. And that means pretty much straight away you’re changing your business and you’re adding a level of systemization to your business that is trackable and is manageable. And for the comparative cost of the software, it needs to be seen as a business tool. As a matter of fact it’s fairly essential if you’ve got a high staff overhead because, dealing with a lot of administrative staff; you really need to be looking at where you can streamline operations not to get rid of staff but to get them into income generating roles.
Frances: Correct. And then when you combine this with something like Facebook ads as an example, gone are the days where we would pay for ads to try and boost the likes on our Facebook pages, right? These days it’s all about taking that opportunity and moving it off site. But, directing them to your homepage is really not going to get the conversion that you’re looking for because they’re going to get to the homepage; there are lots of different options. They’re going to get lost and essentially because there is too many decisions they’ll make none, correct? So, by directing them through from the Facebook ad to an opportunity with some kind of a giveaway or a value I’d offer and then converting it directly from that sales funnel you making sure that you driving them into your funnel and to your pipeline.
Jason: Well, you are controlling a number of variables in that. Just think about the mindset of dropping somebody onto even a sales funnel landing page with a very clear call to action but with your web sites menu bar across the top. Just having that alone introduces a number of variables into the mindset and the psyche of your customer. Immediately they questioning the offer because they know that there’s other stuff on the website. They’re going to do some research you’re going to jump straight to the pricing tab, products or other services. And that’s just a distraction factor. You’ve done all the hard work and getting them onto the landing page through the copy on your email which needs to be set up in a specific way. And also it needs to be split tested. For instance as the landing pages, but you’ve done the hard work to get them there you really need to be very focused on what you’re offering them and they maybe take advantage of their mindset when they either do or don’t go for that offer. And importantly every aspect of this needs to be pushed back to your CRM system such that how that customer engages with your communications. If they don’t even open the email you need to know that in the CRM. If they open an email but don’t go for an offer you need to know that. And of course if I go for an offer but don’t cover for an upsell or go for an offer but don’t go for a down sell. You need to know how far they get through that so that you can then engage them very specifically on topic and contextually from that point forward. And if you can do that within a system that just happens, its business changing. It’s life changing.
Frances: Amazing! I mean you were telling me recently about the ability to now track exactly how many seconds or how many minutes a viewer has watched of your videos and then push them in a different direction down the funnel depending on these numbers. What’s good about that?
Jason: How powerful is that. Yes, that’s exactly. We can track. If you send out a link to a video, quality YouTube video, or even a series of videos. Let’s say you wanted to run someone through five educational videos about your business. It’s a completely different situation. We’re dealing with somebody completely differently. If they watch all five pages they’re watching them naturally. But how do we know that as a business owner you send out five emails or we send out one email asking someone to watch a series of videos? How do we know? We might know the outer email. What we’ve got is the ability to track the number of seconds that somebody is on a video or a video series and we can then tag in a CRM system. We can apply a certain tag which then allows us to manage someone in a certain way based on the percentage of time they’ve spent on a video. We can say at the 80% mark down to the second of the video is six minutes long will note the 80% to the second mark, the system will push back a tag into the CRM saying that that customers watch or that person watched 80% of the video. You can name all the four and you cannot engage them in automated. And I use automated inverted commas because it is highly personalized emails you are writing in first person is they interacting with him. But you can pre-write it knowing that they’ve watched a video. “IE: thank you for watching my series” and taking them to the next step knowing that they’re an engaged customer. The last thing you want to do is send an email to someone saying thank you for watching my series when all you sent them is the email asking them to watch the series. And if they don’t answer, if they don’t open that email and that they only watch two minutes of the video out of the six minutes video and close to town you also know the mindset. So that they’re most likely not going to engage with whatever that video is talking about. But you then offer them in effect down sells or alternative products that you have. It’s massively powerful and some people say almost Big Brother like but it’s essential in today’s business environment to be able to understand as though you’re sitting in front of somebody, as though you are having a face to face meeting. But to be able to understand the psyche with them being remote from you.
Frances: That’s right, and its all-time saving as well. I mean, we simply do not have the time to sit down in front of all of our potential customers and have a cup of coffee and find out everything that we need to know about them as much as we’d like to and this is really allowing you to build that connection and build that relationship and treat them in the way that they would expect to be based on the stage of the sales process that they’re at or that the needs analysis in terms of why they’re on the buying decision.
Jason: Absolutely and what it also does is allows you to open up internationally. We do a lot with small business. It depends on your business. Obviously if it’s a physical product or service based industry we’re only dealing Moki that’s one aspect and of course we take that into account when pulling communications together. But there’s a big case to be made for virtually any business opening up internationally if only for the information that they can that got as part of the business. We promote membership sites a lot. That doesn’t really matter what business you have. You’ve got a lot of information in that business and these people around the world that may well pay to have that information. And if anything it adds credibility. So we now are dealing in a situation we want to be engaging people to a certain level with them and I’ll be down the road able to pop down for a cup of coffee. And then understanding them and having them receive emails contextual to how they have been engaging with you not only makes them feel as though it’s a very personalized service but allows you to present the correct offers at the great time.
Frances: This is a major mindset shift for a lot of small businesses because especially the ones that are bricks and mortar based. They feel very restricted to operating in their local area. And the idea of dealing with international customers is beyond that round of comprehension right. One of the things that you do is you help businesses to think about how they could extend beyond their local audience and offer their skills and experience knowledge and make that scalable and build a residual income, right?
Jason: Well absolutely and it may not just be about converting some of their content to digital and then selling that as a membership site to us in an educational series. It might even be systemizing that local business to the point at which the major business departments. There is finance and production marketing, etc. are streamlined through systems. And if that’s the case if you think about it, what that allows you to do and that’s a typical process you go through in franchising operation. What then allows you to do is open up other offices. Once you put a systemized organization and you control the software aspect of it you can either license it out which I’ve been involved in a number of times and you control the central system that really just dictates what the business owner and the employees or the people of the organization need to do. And then that means you can scale physically, either nationally or internationally, both of which you’ve been involved in. But it also means that you then control centralized data and you can then take advantage of it exponentially.
Frances: Protect your IP.
Jason: You can protect the IP. You can systemize. And then you’re removing the aspect, you make it highly attractive to a licensee. He doesn’t have to deal with finance, he doesn’t have to claim money, he doesn’t have to do all this stuff. But you also are in control of bigger data. You’re gathering a lot more people in the database and then you can now obviously stop presenting other things like digital courses and memberships and student.
Frances: It’s very challenging for a lot of small businesses to grow to get away from one to two and then two to three. And once your business is systemized it becomes much easier to bring new resources into the business and just plug them into the system and allow them to follow.
Jason: Yes and once you understand just that little cycle of figuring out the need then researching what’s available and make no mistake is thousands of systems and software application software as a service. There is chrome extensions, these little systems is marking applications. There’s so much available to us now as small business owners for a few dollars a month. Anywhere from two or three dollars a month to the tens of dollars like the clickfunnels cost, after the hundreds of dollars like Infusionsoft, Ontraport cost. And each of those have their place and should be seriously considered at certain points in your business and doing little cycle of understanding if there’s an issue, finding a system that best addresses that issue whether it be industry or whether it be more generalized marketing, and then implementing that system in your business. That little cycle needs to be a little bit short of process that you need to go through before even looking at getting anybody on board or hiring anybody to do a certain function is to understand if there’s anything out there that will make that function streamlined and systematized in the context of the other systems you’re going to need in your business.
Frances: If there is anybody out there that’s listening to this now and thinking to them I’m just not tech savvy, I’m just not good with computers. I don’t know about all the software. What would your advice be to them?
Jason: Well I would say certainly contact someone like myself or Frances or a person that understands technology but really do some research.
Jason: Really just do some research. Hop onto Google and you’ll find very quickly that there’s millions of businesses out there millions and millions and millions of people with the same problem. And what we always do is the first thing we do know is that there’s a few ways we approach business. First, if somebody is running a business in the area irrespective of where it is, go and seek other similar companies and in big marketplaces. Let’s say you’re in Australia, what we always recommend is go to the “dot.com”, the American online marketplace and have a look at similar companies to yours and figure out what it is they’re doing. Very often you’ll see what systems they’re using simply by clicking on the link. And often you’ll see Infusionsoft rock up at the bottom of the page. Sign up today newsletters. Wait for the emails to come to receive a copy they’re using. Very quickly you’ll get an understanding of what we’re particularly successful with their big company do a tiny bit of research. Sign up to some of this stuff and model, don’t replicate, don’t duplicate, don’t plagiarize implies better model what they’re doing. They’ve already got success. Quite often the systems will come out of it but then also just get on some forums. Get on some forward and say that accounting is very easy. There’s offline systems, there’s online systems, clearly online systems like might allow you to connect to other systems and it’s a very small search type in the words Xerox or zero integrations and you’ll come up with a myriad of websites talking about what zero can be integrated with. The minute you realize that zero can be integrated with something like a CRM system, it means that when somebody reaches a certain point in a sales cycle. You can automatically generate a contact and an invoice in zero. That means your accounting requirements drastically reduced because every single time someone who reaches a certain point in a sales cycle, their contact is created in your accounting package. Just that tiny aspect means that an accountant or person or a bookkeeper or an admin stuff doesn’t have to create their content. And once you understand that basic principle, everything else just becomes a research topic. You just have to go and have a look on Google.
Frances: That’s right.
Jason: But by all means contact either myself or friends or somebody like that like that understands and has worked with a number of businesses. And very quickly, you understand the main systems that you really want to be looking at systemizing in the company.
Frances: Well you’ve got a few different business ventures on the go but what aspect of what you do is would you consider your sweet spot? What is that bit of your job that you do that you don’t consider to be work?
Jason: I love helping business owners to identify the bottlenecks in their company. And what that really involves, as I was involved in systemizing a number of really big open including oil fields in places like Turkmenistan and the process is the same on an oil field to what it is in a small business, that is understand the information flow through the oil. How does how does a customer get it. I’m sorry how does a company get a customer once the customer is onboard. How is it handled irrespective of whether it’s a post store online or an online venture. How is it customer-handled? How do they pay, how does the product delivered or produce? How is it delivered, and what is that retrospective feedback. How do you get that customer to give you testimonials or feedback such that you can address the business if it’s bad feedback or use that feedback to get more customers if it’s good? And my sweet spot is really understanding that process through a business. And then once we understand where that information flow through a company identifying the systems I can just make that run on rails. In some businesses more than others, will always be as it were where people are needed. Maybe if it’s a physical building something like cabinetry business or kitchen or home development, you’re going to have that aspect. But there’s a lot that can normally be systemized. And I really enjoy getting my head into people’s businesses and understanding that information flow. And the minute you implement a system that reduces a lot of the complexity of the bottlenecks around it. And that’s always when businesses get at with bottlenecks introduced in businesses is somewhere in that float, or is it’s either a struggle to collect the money, or they struggle to produce the goods, or they take time in quoting, or there’s always an issue in that process and if we can fund the biggest bottleneck in that process, systemize and streamline it to a certain degree then another area will become the baseline. But that’s not going to be as bad as the first one. In three or four iterations of this process addressing the biggest bottlenecks that are introduced when you get rid of worst ones and get very quickly it becomes a process that a business becomes scalable or licensable. We even help companies to become marketable. People that are looking to sell the business. Very often we have situations where they’re just unattractive the business is too difficult to run. We’ll go on in as little as a few weeks. We can implement a system that will systemize the main aspects of the business. And when you reintroduce that business to a market it’s now being marketed to an investor who can buy a business that’s got a system underlying its processes and it’s got documented policies and procedures rather than to somebody who’s looking to buy a job. And thus, makes it sellable.
Frances: And that’s a really important subject to touch on and that’s around 25-26 percent of small business owners are viewing their business and their retirement plan. But then often they get to that point where they’re ready to retire and they want to sell their business isn’t and sellable commodity.
Frances: And you help small businesses to get their systems into place that becomes more attractive to the market.
Jason: Well 90% of businesses struggle to sell at the end of the day. Even businesses that are viable from a cash flow perspective that are profitable and that have a true market value. If there’s too many of them in the marketplace you’re trying to sell in of course it’s a buyer’s market at them and it’s tough out there. A lot of companies are finding especially if there is somebody looking to retire. They’ve got their retirement plan sort of they want to travel the country, they want to do it more than likely got money in the bank, and want to sell the business. But very often we’re finding people walking away literally closing the doors of their business and shutting it down because they can’t find a buyer. And the reason they can’t find a buyer is because it’s an unattractive business in the marketplace even though it’s a viable company. What we do is we take that scenario and we look at their systems, their policies, procedures. We put some structures in place, we put organizational chart in place, we put systems in place. We get we identify the marketing processes and the business processes. We document those in terms of flow diagrams. And then we get a system to address as much of that as possible. And once you got that and you can demonstrate to the market that you’ve got a system that is managing your business and you can identify how many aspects of your business are completely systematized irrespective of the cash flow change more often than not. This process happened so quickly that there’s no difference in terms of the formal evaluation on business but now becomes highly attractive and if you’re looking at five businesses in the market in Europe, you’re looking to invest in a company and one of them has got completely streamlined, and it’s got a system in lines, good policies around marketing and it’s got to structure to its systems and procedures especially if there’s a really good underlying system that allows you as a business owner to assess each aspect statistically when it becomes absolute no brainer as to which one is most attractive to the market.
Frances: And often you have to surgically remove the business owner from their businesses well in order to make it a saleable offer outside of them.
Jason: Correct but what we do is we follow a very specific process that we sit down with the business owner and we do what we do in everything from small business through to oilfields if we just understand how information flows through that organization. Once we can understand that we grab whiteboards and pieces of paper and we literally draw on paper and we figure out flow charts of information through the organization and then we understand which bits of those can be systemized, things like generation of invoices, context entries into accounting systems, e-mails going postal service, every single business should be focusing on a feedback loop that is after you’ve delivered a service or product you need to be querying, you need be questioning the customer as to the feedback behind their experience with you.
Frances: Good or bad you can learn from that.
Jason: Absolutely. And we find that if done correctly, and it’s very simple. It’s an email address and a survey of 1 to 10 9:59 would have been fantastic one being all you getting. 1 to 10 and a little comments field and we can then even be so clever as to systemize the handling of that afterwards we can say we can put if then else rules in systems. If it’s 8, 9, 10 out of ten, considerate good feedback and then we can handle somebody as though because we know that they we’re really happy with your service. Now think about this if you’re dealing with a lot of companies and you routinely setting this up automatically and every single person that gives you a 9 or 10 out of 10, then your next email to them is asking them to become either a referral partner, or to promote your business, or to earn a commission, or even just to ask them for referrals. It’s got to be a much better scenario than asking somebody who had a terrible experience with your business for referral. That just creates a negative loop. So if we can automatically deal with nine or tens of tens by sending them an email a few days later saying thanks for your feedback. How would you like to refer to work or would you love to become a referral power or send an influence. And on the opposite end anyone 6 or below reading needs to be pushed to the technical team with the comments and needs to be addressed by management and to address the system the actual processes behind your operations and address the negative feedback. And what we are typically picking up is a 20% response rate which is massive on a request for feedback and that information is just absolutely good.
Frances: Timing is everything as well. When it comes to feedback, leave it a month, leave it at six months there’s no way that you’ll get the feedback that you want but if you time it right and strike while the iron is hot. You’re much more likely to get the return.
Jason: And that comes out of this strategy session with the owner is to understand the business, understand timing, even sensitivity you’re going to be dealing with customers of a medical practice a lot differently to how you deal customers for a coaching business or online business and e-commerce of course is the other side that is very exciting as well. In all cases you want to be doing this feedback loop and that has to be systemized. There’s no way you’re going to get somebody an admin staff to consistently send out that request for feedback at the right time and act on it correctly every single time. It just means if you want to scale or grow your business it just has to be a system that runs in the background.
Frances: I might save the key to, right? Building scalable, unsalable businesses. That’s what every small business owner is really looking to do in the end. And that’s what gives us the lifestyle that we’re all searching for, correct?
Jason: Yeah. That and the residual income. That’s the other aspect is everybody really needs to be looking. There’s so many sources of potential residual income available to us as individuals or small businesses. Even businesses need. Any business that doesn’t have residual income coming in from the services or producers, even if it’s informational is solely dependent on a production based revenue model which is just fine in some aspects but individuals and businesses should be focused all the time on trying to build up their residual income stream. And we do a lot of coaching with people on numerous ways to build up residual income and all of that is cloud-based. We are dealing with affiliate models and I do a lot in the Amazon space. I live in Perth Western Australia but yet I’m running businesses in America and the UK selling on Amazon and in the U.K. It’s a unified European account I’m selling in the U.K. France Germany Italy and Spain right now living with them.
Frances: That’s exciting and that’s something that a lot of people think is out of their reach. But with the right systems and the right software and the right marketing ability is it’s achievable.
Jason: Absolutely and the good part is don’t ever touch any stock. The only time I see stock is when I get samples in. I get samples from my supplies, I have a look, I assist them and then I’ll make the changes on white label and push all those products straight from my suppliers through to their respective markets so you can use that and they get it for full online. They get for full directly out of the fulfillment centers and I never have to touch on a riff to drive a van. I never have to deal with anything. It’s fantastic it’s really exciting and that’s available to everybody. I’ve got models around how that works. We’ve got efficient ways of sourcing products. That is a revenue stream that pretty much instead of watching TV at night, instead of watching the latest series on Netflix. If you take one of those nights and you just focus on building residual income for yourself one night a week within 12 weeks you can have six or seven sources of residual income that will serve you for the rest of your life. It’s really exciting.
Frances: And this is the freedom that the business owners are looking for. And many of them that they’re rundown and they’re tied to their business and they’ve essentially bought themselves a job rather than the freedom that a business can offer.
Jason: Yeah and that is the case. But the scary thing now is not the job it used to be. We used to be a fair amount of security in a job look at the mining industry. Recently, many people have been laid off. And that’s something that we feel very strongly about is individuals diversifying to the point at which they the risk is nothing worse than being late for a job or being made redundant or even the fear of redundancy which gives a employer a lot more, a different way to handle employees. Whilst either running your own small business or as part of your job this cloud technology inefficient and efficient systems that are that are available to us these days should be employed in all aspects including building small residual income streams for yourself. Something can be really big residual income streams if you’ve got a large audience, a large database even if you’re good at writing in any aspect that you’re good at can be turned into a potential residual income stream through fairly simple process.
Frances: It’s exciting times for small business, exciting times for software. I know you don’t spend your whole life behind a computer and what do you do for fun?
Jason: Well I got a few things. I’m fairly sporty but I’ve got more recently is raising these little drones, these little quadcopter drone so we head down to the park fairly often with a bunch of friends of course it’s very geeky,
Frances: and still technology based.
Jason: But yes it was pretty good in getting my little boy into it now which is good. He’s going to be better than me fairly soon but it’s putting these goggles on and flying around for us and stuff and using the camera on the front of one of these little quadcopters. I enjoy that. I watersports, I enjoy getting out. And building up the residual income side of our lives and we are looking to spend a lot more time offshore so we want to be spending a few months a year either back in the U.K. or in places like Phuket, Thailand, Bali places like that.
Frances: Living the dream.
Jason: Yeah, absolutely.
Frances: How can people get in touch with you and how can they start that sales funnel process? What’s the starting point?
Jason: Well I would recommend just getting in touch with me just hop onto my website thefunnelworks.com or just email me email@example.com. The website itself contains a few links and certainly contains my contact information. You can get in touch with me to build up some strategies, strategy pack that are put together on the website and I am in the process of building up a membership site for residual income.
We’re really taking people through a process of residual income generation and then the funnel side. Also on my website there’s a link to organizations that are run called the funnel works which is all about building efficient and really high converting funnels. If you’re looking to either boost cash flow or to turn the people in your own database into paying customers, in other words converting them and activating them. Then that’s really something that you should look at and implementing it is a smart funnel that you can control.
Frances: And it’s much more affordable than people think isn’t it these days? Yeah. Fantastic. Well thank you so much for joining us. Really exciting to chat and learn a bit more about what you’re doing and I hope that there’s been a few things that people can take away and start implementing.
Jason: And testing. Thank you very much.
Frances: Thank you. You’re welcome.