Andrew: What’s going on vetrepreneurs, welcome to Vetrepreneur Tribe, the world’s largest community of military veteran entrepreneurs to over exist in history. We’ve been able to accomplish this in less than a year.
Omari: Less than a year.
Andrew: Less than a year. July 2nd is our one year anniversary, so if you’re watching this after July 2nd it’s now officially been over a year. But we wanted to jump in and explain more about what Vetrepreneur Tribe is, what you can expect here, the rules to follow, and we kind of want to give some definition of what you should be doing here, if this is the right place for you, and we also wanna filter out those of you that this might not be the right fit for you. So we’re gonna explain more about that, but first we’re gonna talk about the five things that Curtez, Omari, and myself really focus on teaching you to help you grow your business.
Omari: Yeah, there is five, right? So we were talking and we were discussing, like, what do we do? Right, what do we do? We’ve done a lot of stuff for clients, we’ve done a lot of stuff for our own businesses, but what are we doing for the tribe? Where do we focus on, where does our knowledge, experience, technical know-how … Excuse me … where’s out technical know-how lend well to what you need, right? So, just gonna break down these five things so that way you understand what’s really going on here. So, in growing a business, right? We’re talking about building and growing a business, and that’s what this place is all about. Hopefully you came here because you wanted to not only connect with other veteran entrepreneurs, but grow your business. That kinda makes sense to me, right?
So let’s talk about the five things. So thing number one, if I can get this to work, so thing number one is going to be lead generation. So, if you’re in business and you want to make sales, before you make sales you must generate leads. People that are interested in you, aware of you, and wanna learn more about you. As a marketer, my definition of a lead is at least one piece of information that you can follow-up with them. One piece of information, which the easiest one to get is an email. I have three levels of contact information I talk about, but that’s neither here nor there. Just understand that lead generation is just one thing. Andrew?
Andrew: And it’s the most important thing in your business. If you don’t have leads you have nothing. You have to have leads that convert into customers and all that, which we’re gonna get into here in a minute. But you need to understand that without lead generation, without actively having something to capture leads, a lot of you are just selling a product. You’re just selling one product or a service, you’re not capturing leads to sell to later on. You’re just running a Facebook ad to a sales page that says, “Hey, buy my shit.” That’s not gonna work. You gotta have the leads, you gotta have a way to follow up on them, which is what Omari’s talking about.
Omari: Yeah, no doubt. So number two, number two is new customers. So acquiring new customers. So now you’ve generated some leads, now you need to turn those leads into customers. If you’re in business and you’re not doing sales, you’re really not in business. So getting new customers is kind of the lifeblood of your business. I was always taught that you wanna have a consistent flow of new customers, because that’s what provides stability to your business. New customers will provide stability to your business. Not necessarily profit. New customer acquisition is your highest cost expense when you get in this thing. It’s gonna cost you more money to acquire a customer than anything else. But we have some other strategies to help you profit in your business that’s different. So just understand that acquiring new customers is a thing and is very important.
Andrew: And on top of that, he’s talking about marketing and how it’s gonna cost you money to acquire new customers, it’s also gonna cost you time, effort, and energy. I’m talking about building an audience, that’s what I talk about all the time. How do you bring in this new audience, these leads, these customers? They gotta get to know you. They need to know more about you, who you are, what you stand for, the content that you’re delivering. What you’re offering with the solution of what you’re offering and how that’s gonna solve a problem for them. So your new customers, these are the ones that you happen to build this report with, build that relationship with. And again, a lot of you focus on your current customers, which is great. But your current customers aren’t going to help you grow. In order to hit that massive increase, that incline, that upward facing arrow on that chart, you gotta have those new customers, and consistent new customers. Not just random ones. Consistent new customers all the time.
Omari: Yeah. So next is, you have, so next you have … repeat customers. Once you acquire a customer and they buy, now you want them to buy more frequently, right? I went on a rant earlier today in the car because a lot of people acquire a customer to make a sale. This is a big problem in small business across the board. I don’t care if you’re veteran or civilian, doesn’t matter. Most small businesses get eaten up by the big guys and die, 95% of them die because all they’re concerned with is getting a customer to make a sale. I want you to think in the reverse, what we’re gonna talk about is getting a sale, or making a sale in order to get a customer. Because a customer in that form, in that way, I make a sale to get a customer, I can sell to that customer more frequently. Also, where Andrew really shines in repeat customers is …
Andrew: The continuity.
Omari: There you go.
Andrew: The continuity, if you don’t have … What continuity is is recurring revenue. It’s consistent paychecks, every, it’s kind of like being employed. You got the stable two week paycheck every two weeks coming in. You don’t have to be an employee to have that, but you have to be a solid entrepreneur. You gotta be a solid business owner. You need to have recurring revenue streams. And not just one, not just two. I’m talking about three, four, five different recurring revenue streams coming into your business every month so you’re not putting all your eggs into one basket, one product, one service. If you’re only selling one thing, you are risking the life of your business, the financial life of your family, and it’s not worth it. So continuity is extremely important here in repeat customers.
Omari: Yeah, no doubt. So next, we have cash flow. You want good cash flow and having a steady stream of new customers, having repeat customers helps, having continuity helps. Creating partnerships. When Curtez jumps in and starts talking about partnerships, all that stuff is gonna help increase cash flow, ’cause you just have more money coming in. Now cash flow is just straight what’s coming in and what’s going out. So we not only have to look at the what’s coming in part, we gotta look at streamlining what’s going out so we’re not wasting money. So we look at how can we, systems, and processes, building a team so we can lower the amount of cost, of time, effort, and energy on your part. So you can have this good cash flow going in.
Andrew: And you know, a big thing that I see that most people miss in the cash flow spot is they think, “Let me just do everything myself so I can save more money.” You’re actually costing your business more money because you’re not focusing on the parts of the business that you should be focusing on, because you’re trying to be every one and everything in side of your business. You’re writing the emails, you’re setting up your marketing campaigns, you’re building your funnels, you’re creating your logos, you’re building your websites, you’re doing way too much. You’re not doing what you actually need to do to grow your business. So while some of that cash flow coming in has to go out to a team, and you see that as loss, it’s not a loss, it’s an investment. And when you invest it properly in the right team members and the right places, the right service providers, you’re actually going to make money by spending a little bit more money.
Omari: Yeah. No doubt. And then five is getting higher, or, I’ll make it simpler. Increase customer lifetime value. So increasing customer’s lifetime value. So most small businesses like I said, they make a, they get a customer or they make a sale and then they get a customer. Did I say that right? No, it’s the other way around. They get a customer and then they try to make a sale. That’s what most businesses do. Get a customer, so I can make a sale. Well, let’s say for every person that comes through your business they spend 10 dollars. And let’s say that customer spends 10 dollars once a year. So their lifetime value is 10 dollars. So every prospect that comes around has a 10 dollar stamp on their forehead. Now, if you wanna increase cash flow, if you wanna grow your business, one of the things that you can do is you can increase the customer … increase your current customer lifetime value. So if you have customers already that spent 10 dollars with you, well maybe you can create a new offer that gets them to spend 20 dollars. Or you can add an up-sale at the point of sale. That’s what makes up-sale so great, is they occur at the point of sale, and then that way it immediately increases the customer lifetime value.
So things like up-sales, cross-sales, offering affiliate offers, stuff like that, all that is what helps generate profit in your business. So if you look at new customers, that provides stability. It’s the backend offers that actually create profit. Because once you cover the cost of a customer, then the rest of that is money in your pocket. So increasing lifetime customer, you can do that by creating new offers. You can definitely do that with partnerships. So let’s say Andrew, let’s say I’m a mechanic. But Andrew, he has a detailing shop. So now I make a deal with Andrew, we split the profits 50/50, so now my customer … They’re already worth a certain amount if they come in for an oil change. But if they go to Andrew for detailing, now I may get 50 dollars out of that deal, so instead of them paying 30 dollars, now I add that on it’s 50 dollars, and I’m only doing half the work. So I’ve instantly increased the lifetime value of my customer by leveraging a partnership with Andrew. So Curtez will talk more about that.
Curtez Riggs: Hey what’s good tribe? My name is Curtez Riggs, I am the face, I should say, behind the military influencer conference. Andrew and Omari just reached out a few minutes ago and asked me to create a very simple video that talks about strategic partnerships. Now, when I look at the tribe, I see a lot of people in various stages of ideation. You’re trying to take this idea and build something from it. Or I see small business owners, who already have the foundation established, but of course we are all concerned about growth. We wanna increase our bottom line and make sure that our revenue goals are met.
So, let’s talk about strategic partnerships. When I look at a strategic partnership, it’s a factor for growth and success, and it can be a win-win for all involved. See, I recognize that I need partners in order to provide me a wide variety of things. That could be capital and resources, that, giving my brand more exposure, helping me tap into a market that I can’t touch personally, helping me to find additional work or sponsors, and by offering or white labeling services that I don’t have internally. So when I look at the term partnership, I revert back to what the military taught me and I think of teams. ‘Cause, together we all … or, excuse me … Together, everyone achieves more. There is no “I” in team, and there is no room for individuals in the military. All of us serve in some way, shape, or form. And I’m sure, just like me, when you stepped off that bus in basic training you were assigned a battle buddy, or someone who wanted us to keep an eye on you. And this person went everywhere with you. See, that’s something that stuck with me. That, as an individual I’d fail in the ranks of the military. But as I’ve climbed the ranks, I recognize that I have been provided phenomenal partnerships and alignments with people of like minds, identities, and goals. And I’ve been able to leverage those relationships to do some fantastic things while serving.
Well, guess what? That doesn’t matter anymore besides the education that I was provided while serving. Now I’m retired happily and I’m on my own. But that stuff still sticks with me. In order to be successful in the civilian marketplace as a business owner, I have to find like-minded people, like-minded relationships that I can leverage to grow my brand. So when we look at joint ops, we have a strategic partnership between Andrew, Omari, and myself. And we are working to leverage the knowledge that we all individually have up here to benefit you in the tribe. So stay tuned, keep an eye on us, and what we’re doing, and if there’s anything that I can do to help you or if you have questions, even though I’m not the most socially active person, feel free to reach out and I’ll do what I can to bring you inside of my little wheelhouse and offer support from a distance. Thank you.
Omari: Partnerships, that’s why we have partnerships in this thing, is because there’s so much money that can be made in your business by just making the right relationships.
Andrew: So much money and no work.
Omari: And no work.
Andrew: And no work, because if you were a mechanic and you partnered with me as a detail shop, and you sold my detail service to your customers, that takes no work besides a quick little, “Hey, do you want your car washed.” And that’s it. And you don’t wash the cars, I do. And so with customer lifetime values, talking about how you use that in different ways, right? And you may think, “Okay, if I have a 10 dollar product, what matters if I add one more 10 dollar product or get them to buy 10 dollars more?” You just doubled the lifetime value of one customer. Imagine that times a thousand, times 2,000, times 5,000, however many customers you have or potentially can have. And you always want the highest customer lifetime value that you can possibly create. And a lot of you are missing this in your business. You’re just getting this one, two, three sales. You’re not focusing on lifetime value, making as much money as you can off of one customer without nickleing and diming them and trying to get them to spend all their money in one place.
Omari: Yeah, of course you’re gonna give them more value, but I bet there’s a number of people in here in the tribe that can double their business just by doubling the customer lifetime value.
Andrew: Yep, just one simple tweak.
Omari: Continuity does that very well. If you have people paying you recurring income every month, then continuity works super great. But if you’re a business like, let’s say gyms, let’s say … businesses that are in business because of recurring revenue. If you have a gym, if you have a martial arts school, you kinda do the monthly thing, well you can increase the lifetime value of your customer by adding other offers to it. Maybe you add in a nutrition program, or maybe you’re selling products. Having a product side to your service business is great, ’cause people can come in there and now you can make new offers. So now the person is already worth, let’s say they’re paying you 100 dollars a month to come to your gym or whatever. So right now, they’re only worth 1200 bucks a month. But if you can get them to buy a starter kit, if you can get them to buy supplements, if you can get them to buy apparel, right now you’re taking it from 1200 dollars and maybe you can get them to spend 500 worth of products in a year, now each member is worth 1700 dollars. And you can do the math, 1700 times 100.
Omari: No. 170,000.
Omari: I’m not good with numbers, right? 170,000 dollars just by-
Andrew: One offer.
Omari: … thinking that way, one offer, adding one offer. So those are the five things.