3 Days To Cash Workbook
Module 5
*Find a Business Model You Can Duplicate
The truth is, no matter how great your idea is, someone has done it first – and
that’s great news. It means there are people who have gone before you and
already discovered the best methods for success.
I built an entire team of coaches and mentors who work tirelessly with my clients
to ensure they can breeze through the Cash Machine process and start making
new money as soon as possible. They are using systems, secrets, and
mechanisms they learned from other Cash Machines, entrepreneurs,
corporations, and individuals who have built success in the past.
The reason my coaching staff is so good is because they are masters at building
Cash Machines. They have produced millions of dollars in success for
themselves and other clients because they know all the secrets, and they teach
them everyday.
I teach all my clients, “don’t reinvent the wheel, rely on the ones who came
before and benefit from their experience.” It’s important to me that my clients
spend as little time as possible in the “trial and error” process and more time in
the “cashing checks” process. This means replicating the mechanics and
duplicating the success.
Replicate and Duplicate
Now that you have your idea for your Cash Machine, it’s time to start your
business – that means getting the processes up and running. Should you start
from scratch and create your own system for managing your business, cultivating
new customers, and providing services? No! Don’t reinvent the wheel.
Planning takes time and thankfully, someone has already done that – they
started a business and then learned how to do it effectively. If someone is
already running a successful Cash Machine because they learned the secrets,
why not do it the way they are doing it? Leave the trial and error to someone
else. It’s time to find someone who is already doing what you want to do and then
model them – do what they’re doing.
Replicating another successful company is like hopping into your car and using a
GPS to navigate to your destination. It has a view of all the possible roads you
could take and gives you a route that will get you there faster – and isn’t that
what we all want, a faster way to get there?
What you need is a GPS for your business. You need to find the fastest route to
your destination and then follow it.
As you build your Cash Machine, I want to encourage you to build a team to
support you, no Lone Rangers here. Along with supportive friends and family,
use the resources I am giving you – call and talk to your strategist, start working
with one of my personal coaches and mentors. There are resources out there to
help you, but it’s up to you to use them.
As you work with my team, you will meet other clients just like you and benefit
from their experience – you could be the next big Cash Machine success story,
but it’s up to you.
Don’t reinvent the wheel!
There’s a myth out there that says you need to be unique if you want to have a
successful business. That’s wrong! The best ideas often simply come from taking
what one person is doing and then duplicating it, improving it, or expanding it.
That’s not to say there isn’t a market for unique business ideas, but that’s not
what we’re here to do, we’re here to put new money in your bank account in less
than 30 days. Once you’ve mastered the Cash Machine process, and created the
financial freedom you’ve dreamed of, then you can build on your unique ideas. In
the mean time, we’ll focus on staying in well-charted waters and doing what we
know works.
Many people who try to start a business never get past the idea and planning
stages – they get bogged down in figuring out the “how to do it” rather than just
doing it. The traditional process for building a new business is long and
complicated, and it can be expensive. You have to create a business plan,
revenue forecast, market research, and a whole lot of other things that take time
and money. That has a place, but not when you’re building your first Cash
Machine. You’re here to start pocketing cash fast. Don’t get bogged down in
tradition. Just copy a successful business model that‘s already working.
The Name Game
Some people spend hours or days trying to brainstorm a name for their business.
At this point, that’s a waste of time. When you get out there and start talking with
people, that won’t matter.
Something simple and to the point will work great for right now. If you’re running
a cleaning service, you don’t have to worry about a clever name when, “Mary
Cleans it All” will be more than enough to get your message across. Calling your
web design company “Omni-global Computron” may sound impressive, but in the
time it takes you to think of it, you could have already made money.
Business Plan
Some people spend weeks if not months working on a business plan – writing
hundreds of pages to define every aspect of their business from inception to
selling it off in 10 years. Forget about that. The process I’m sharing in this
workbook will allow you to start earning cash within the next 30 days. Yes, the
money will be rolling in that fast. If, you follow the steps I describe here and take
the actions required. So a comprehensive business plan is not required, so let it
go.
Loans And Investors
Other people get caught trying to borrow money or take out loans. Forget that.
You are going to have little or no start-up costs and start asking for cash right
away from your customers. You’re going to use simple tools like business cards
and flyers to get your message out there – they cost very little to create and you
can make them on your printer at home if you need to. I cover all of those details
in Section 4 on Marketing.
The key is to develop a simple, straight forward and streamlined business
concept that you can begin working right away. There is no need to do any of the
nonsense above. Yes, there are businesses and strategies that require all the
things I just discussed, but this is not one of them. You are on your way to
earning an extra $500 to $1,000 in the next 30 days and that’s all we’re focused
on right now.
Like a hiker heading into the wilderness, you do need a map and a plan to get to
your destination safely; but that route can be one that has already been mapped
by other hikers.
You never have to feel overwhelmed, there are people ready to support you.
There’s good news! If you need some reassurance, call your personal coach or
strategist and trust me when I say, “Someone has already done what you want to
do, so we’re going to follow them.”
It’s time to find several companies to model your Cash Machine after. But, who
should you select to model? Here are some of the criteria you can use.
Let’s start by finding someone inside of a business who will share some
information and insight with you.
Finding a Model Company
You’re going to have to do some work to find your model companies. I want you
to go out to your local groups. They are companies bigger than you, that have
distinctions that you want. We also look at companies that we don’t want to
model and notice what we don’t like. Here are four key things to consider:
• Look at the size of the model company. You don’t necessarily want to look
at a franchise model, you probably want to find a business owner who
started the business and grew it.
• Know whether it’s a product based cash machine or a service based cash
machine.
• Three areas to look at in your model companies:
1) What is the overall flow of business? Visit the business or call them and
interact with them. What was the system that drove you? You will start to
see the flow.
2) How do they get their customers or clients to buy?
3) How do they keep their customers or clients?
• Call up brand new businesses in the local area and ask them how they got
started. Ask them how they got their first 10-15 customers? You will
probably find they will open up and tell you. You can also ask them what
mistakes they made. Tell them you want to start a business just like theirs.
How many model companies should you find? Start by looking at three model
companies. That will allow you to look at several different business models and
gather ideas on sales and marketing tactics. You may not get all your questions
answered through one company. Get what you need from the best of the best.
Should you ever stop looking at model companies? You should never stop
looking for best practices. We are on email lists for some of the top internet
marketers out there so we can model them. Who can you model?
If a model company offers you a job, should you take it? If you are not an
entrepreneur, I would highly consider taking it. You can learn on their dime and
develop knowledge of the industry. Another option would be to become an
independent contractor or develop a joint venture with them. Set a goal that two
years down the line, you will quit your job and start your cash machine.
Contact the insider
Your goal is find insiders at the companies you are studying. Talking to insiders
in the same field or shadowing business owners is a very efficient way to learn.
Imitation is not only the sincerest form of flattery, it’s the simplest path to
profitability. A quick Internet search will get you to many business models and the
answers to your questions will be just a phone call or visit away. You’ll be
pleasantly surprised by how open other business owners can be and how eager
they are to share their advice.
Your contact person within the business does not have to be the owner of the
business; any number of people within a company are possible resources.
Sometimes the best source of information isn’t even in the company at all.
Often a strategic partner or retail customer can have a lot of insight into how a
particular business works. The important thing is to find the right person, or
people who can give you ideas for your Cash Machine.
Tell your network
You can also tell all your contacts your plans for a Cash Machine and ask if they
know someone you can talk to. Let them know you are looking for insiders.
Often, your community will put you in touch with people who can help you. Link
into the community. Join your local Chamber of Commerce, Rotary Clubs and
leads groups.
For women, there is also NAWBO, the National Association of Women Business
Owners (nawbo.org) and ewomennetwork.com.
Model Criteria:
-Size of Company
-Gross revenue
-Employee or contractor revenue
-Marketing planning
-Sales process
-Joint ventures
-Leadership philosophy
Interview a Model Company
Who is the best of the best? Find them and talk to them.
The fastest path to cash is to model someone else. Go out and find some model
companies. When you go out and talk to the model companies, don’t be
surprised if you get some gatekeepers. You want to be talking owner to owner.
Your first goal is to get a meeting.
I had the opportunity to meet with Jay Conrad Levinson way back in the day. He
said we would have 10 minutes to talk. I was very strategic about how I was
going to play those 10 minutes. I knew that I wanted to joint venture on a book. I
had 10 minutes to explain why we needed to work together.
When you’re interviewing the owner of a model company, don’t say “I’m working
for a company and I don’t know what I want to do.” That’s not powerful enough.
You’re talking to the owner of a company who is probably very busy. They don’t
need your story, just what you want to know.
Do your homework before you get started. Before you start making calls, review
their website. Try to answer some of the questions before you talk to them.
When you talk again by phone or meet in person with an insider, you want to ask
more in-depth questions about their business. This is one of your Model
Companies, so you want to find out the inner workings of their business.
Action Step: Interview a model company and ask them the following questions.
Here are some questions you can ask:
1. What is the range of products and services your business sells?
2. To whom are you selling it?
3. What was the opportunity when you created or acquired your business?
4. Was there an opening that you took advantage of?
5. Who were the other players in the market at the time?
6. What were the industry trends then?
7. What are some of the current industry trends?
8. What is distinct or unique about your product or service?
9. How do you position that offering differently from your competitors, in the
past and now?
10. Are there any current gaps between supply and demand of which you are
aware?
11. How do you market your product or service?
12. What were some of the specific challenges you faced in the past and now?
13. Who is indispensable on your team?
14. Do you tend to hire employees, take contractors or offer them equity?
15. What can I expect to charge for services similar to yours?
16. What items represent some of your biggest expenses?
17. Are there any unseen costs I shouldn’t be surprised by?
18. What is your strategy going forward?
19. Do you plan to exit the business at any time? What is your exit strategy?
20. Are there any other successful companies you suggest I look at?
Most likely, business owners will not have the time or desire to answer all of
these questions. It’s best to do as much research as possible before you meet
with business owners. You don’t want to waste their time asking about details
you could find on the Internet.
If you know the person is only going to allot you 15 minutes, pick questions that
only that person can answer. Then ask if he or she can recommend someone
else in the business to answer the other questions
ACTION STEP: Find Three Model Companies
Your next Action Step is to identify the businesses you want to model. This is a
critical step in the process and will shorten your time to making money.
STEP 1: Find three other companies who you can model.
This will give you insights about who they do their business with and also fill in
any of the gaps that modeling just one company may create.
STEP 2: Identify their best practices.
The things they do efficiently over and over again.
STEP 3: Look at their marketing through their website, order forms, flyers and
other information.
Become an expert on their business practices. Look at what they are doing to
effectively find customers.
Competition vs. collaboration
Business activity is not about competition. Don’t get stuck looking backward or
side to side. Instead, look forward. What is it that you want to create? Focus on
creating a legal, service-based business to help other people. You have the
opportunity to create more in the world.
Some people see the world in terms of competition. They might see your Cash
Machine as a potential threat. If that’s the case, so be it. Let it go and move on.
Find another insider whose values are more closely aligned with yours.
What is your competition charging?
If you go back to the very beginning of humanity and business, the price of any
item was determined very simply.
Someone had a loaf of bread or a bowl or a shawl they wanted to sell, and
someone else wanted to buy it. The seller sets a price based on their perceived
value of the item. If the buyer does not agree with the stated value, they have a
lower perceived value for the item. From that point it’s about negotiation and
finding a middle ground between the two perceived values. Eventually, they
reach an accord and the transaction is complete.
It’s still the same today.
That is called a natural market; a transaction that takes place between seller and
buyer where the value of the item is determined through negotiation. At some
point, the seller went to the lowest he could go and the buyer went to the highest
she could go and they agreed. The price was set, the deal was made.
Later, when other buyers and sellers started to buy and sell the same things,
they based it on the middle ground of the first price set. That became the “market
value” of the item and the system we have today was born. Sometimes the prices
went higher, and sometimes lower, depending on the buyers and sellers, but the
fact remains that the initial value of that item was determined through the natural
market.
Today, big companies do the same thing. They look for the middle price – the
lowest they can sell something and the highest a consumer is willing to pay for it.
Once they have that price they have to figure out how to present that product to
the consumers and build a high perceived value for the product. In 2010, it cost
Apple Computers about $128.00 to make an iPhone, but they sold it for $299.00
because that was the perceived value by consumers.
Some companies create a perception of high quality by setting the price high,
while others create a perception of value by setting the price low. Regardless of
how they do it, companies work overtime to teach consumers why they should
buy a particular product, regardless of price, reviews, features, or benefits. It’s
marketing at its most basic and it’s part of setting the price for your service.
You will know from your research what the market price range is for the product
or service you want to offer through your Cash Machine. The question is: Do you
set your prices low and sell a high volume to meet your revenue targets; or do
you set your prices high and keep your volume low to meet your targets?
Ultimately, this will be a question that is answered by your customers.
Case Study #3 Update: Samantha W.
Our event planner, Samantha, was able to contact many local businesses that
gave her great insight to the industry she was breaking into. A party supply rental
company also became a discounted resource for some of her big corporate
events. A small local florist was able to point her in the direction of seasonal
happenings where she could create a themed event for the public. Samantha
quickly learned how seeking out like businesses helped her business grow
though joint venture partnerships.
For Samantha, getting her financial baseline was crucial. Her husband had not
kept good records on what they owned and what they owed. Some payments
were past due. She was always told there was either enough money or not
enough money. Sorting through what was really an asset versus what was a
liability and how much was that really going to cost her a month was important for
her to build a business that was not only going to take care of her current
financial needs but also build wealth for the future. She quickly learned that she
needed $4,700 a month to cover her expenses and lifestyle. Using that as her
baseline she was able to create a revenue model for her event business to not
only meet that need but also be profitable enough to start making some good
investment choices.
Contact a company
Once you have a sense of the companies out there you’ll want to start targeting
ones that you want to build your model after. You can focus in on three
companies that fit your business goals then start the process of contacting them.
As you know by now, you’re not necessarily going to contact the president of the
company or even a manager. You can get a lot of insight from entry level
employees who are happy to share their expertise. Eventually, they may connect
you to managers and even the company owner if they feel your intentions are
good.
There are several ways to contact a company and some are obviously faster
than others. Here are the most common ways to establish contact:
• Send a letter
• Write an email
• Make a phone call
No matter how you choose to contact a person at a company, always start out by
explaining who you are and why you’re contacting them. Tell them what you plan
to do for your business and that you are looking for someone who can give you
some insight. If someone you know referred you, let them know who and always
be willing to thank them for their willingness to assist you.
In your own way, let them know that you’re not trying to become their competitor,
set up shop next door, or steal all their clients. Let them know that you really
admire the success that they have created and their position as a leading
company in the area.
Get to the point early and ask them if you can find out more about their business
and learn what they have done to become successful. Be gracious in your tone
and always grateful for their time.
Find out if they would be willing to:
• Talk to you by phone
• Meet you for coffee or lunch
• Let you shadow them for a day at their job
Set an appointment to meet up in the future and be sure to follow-up before the
meeting as a professional courtesy. Keep your first contact brief and
acknowledge the person’s busy schedule so they know that you respect their
time and willingness to work with you.
Most likely, business owners will not have the time or desire to answer all of your
questions in your first meeting so be accommodating. This is not a time to be
impatient or press them. If you respect them, they will respect you. It’s best to do
as much research as possible before you meet with business owners so that you
are knowledgeable about the company and the industry you’re talking about.
A business owner or employee will not want to answer a question that you could
have easily found on their website or through simple internet search. You don’t
want to waste their time asking about details you could find on the Internet – so
do your homework.
If you know the person is only going to allot you 15 minutes for a meeting, pick
questions that you know only that person can answer. Be clear and to the point
with your questions. Don’t waste time searching for words and thumbing through
notes. Once you have completed the 15 minutes, be professional and finish the
conversation. Don’t assume that if they don’t ask you to leave they don’t want
you to go. Respect the established meeting time and gracefully bow out.
As you finish your short meeting, ask if he or she can recommend someone else
in the business to answer some additional questions. If they can’t come up with
a name on the spot, don’t press them. Offer to send a follow-up email so they
have your contact information to forward along.
In your follow-up email express your gratitude for their time and continued
assistance in making referrals to other people you can talk to.
Contacting a Model Company:
1) Establish the referral LINK immediately
2) ASK if this is a good time to talk
3) Explain WHY you are calling
4) Clarify your INTENTION so as not to threaten
5) Keep these first contacts BRIEF
6) Use initial call to set MEETING or second call
Model Company #1: _______________________________________________
Industry: _______________________________________________________
Products/Prices
Product #1: ______________________________ Price: ______________
Product #2: ______________________________ Price: ______________
Product #3: ______________________________ Price: ______________
Product #4: ______________________________ Price: ______________
Business Model:
_______________________________________________________________
Marketing Ideas:
_______________________________________________________________
Sales Ideas:
_______________________________________________________________
Team:
_______________________________________________________________
Model Company #2: _______________________________________________
Industry: _______________________________________________________
Products/Prices
Product #1: ______________________________ Price: ______________
Product #2: ______________________________ Price: ______________
Product #3: ______________________________ Price: ______________
Product #4: ______________________________ Price: ______________
Business Model:
_______________________________________________________________
Marketing Ideas:
_______________________________________________________________
Sales Ideas:
_______________________________________________________________
Team:
_______________________________________________________________
Model Company #3: _______________________________________________
Industry: _______________________________________________________
Products/Prices
Product #1: ______________________________ Price: ______________
Product #2: ______________________________ Price: ______________
Product #3: ______________________________ Price: ______________
Product #4: ______________________________ Price: ______________
Business Model:
_______________________________________________________________
Marketing Ideas:
_______________________________________________________________
Sales Ideas:
_______________________________________________________________
Team:
_______________________________________________________________
Make a list of businesses that are doing your Cash Machine idea.
Case Study Update #3: Samantha W.
Samantha quickly learned that the businesses and services that are related to
that industry are very close knit. A lot of them know each other and help each
other with referrals. Samantha was able to be build partnerships with many of the
single services providers around town and start building a support network. By
being in a joint venture partnership she was able to expand the services she
offered her clients thus quickly building a reputation for being the “one stop shop”
her customers were looking for. Her partnerships also allow her to pass
discounts onto her prospects making her perceived value of service and package
pricing very appealing to potential clients.
How much and how many
Based on your target income, you want to decide:
• How much you will charge
• How many clients you will need
• How many hours you must work
• The expenses associated with the revenues
The Revenue Model helps you decide if it’s feasible to charge the prices
required and get the customers or clients necessary and put in the hours that will
make the amount of money targeted.
You’ve already figured out some of these numbers – such as price — in the
earlier exercises. Now, it’s a matter of seeing it in relation to your revenue
targets.
If you can work the hours and charge those prices and get those clients or
customers, and do so profitably, then you are all set to move forward. If not, go
back to the idea stage.
Case Study #4 Update: Joe O.
Joe had no problem figuring out his pricing model. There were lots of companies
that he could borrow sales prices from and he gathered the information he
needed with just a few hours on the internet. He also used that research to
identify popular services he knew potential clients would be looking for. He was
able to combine several services into packages and create a volume pricing
model that allowed him to retain clients and create a very loyal customer base.
Finding the best customers.
You don’t just want customers, you want GREAT customers. The kind that are
loyal to you and your service and are willing to pay whatever you ask to get you
working for them.
It’s always better to go after customers who are willing to pay more for something
extra than to target customers who want the cheapest option. Customers looking
for cheaper options are more likely to take advantage of you, expect more for
less, and generally drive you crazy. If that’s the way you want to be treated, then
you probably should have stayed at your old job. There will always be someone,
somewhere, who can do what you’re doing for less money; so don’t compete in
that arena.
Customers who choose a product or service based on price are the least loyal
and the most likely to be trouble down the road. They are always looking for
deals and that often comes at the expense of quality, reliability, and service. All it
will take for them to leave your Cash Machine is to find someone else offering the
same service at a lower price. When they focus on penny-pinching they’re not
focused on long-term relationships they can trust – and it could mean they are
slow to pay their bills.
Section Recap:
Here are the major ideas covered in Section 1:
• Why be an Entrepreneur and make new money
• 7 reasons you need to take action now
• Why build a Cash Machine?
• How to develop your own personal economy
• Secrets to find your fastest path to cash
• 5 steps to build your Cash Machine
• Skill Set Analyzer
• Selecting the right type of business for your Cash Machine
• How to find a model company and duplicate their success
With that under your belt, it’s time to dig in and move on to the next section,
Defining your Product or Service Model.