00:00:00This is exactly how to build a highly profitable lifestyle business.
00:00:04By the end of this video, you're going to understand how to build your team,
00:00:07how to develop products, how to have the right weekly activities,
00:00:10and how to run highly profitable, highly successful growth campaigns.
00:00:14I'm going to break it down step by step so that you almost cannot fail.
00:00:17If you get this stuff wrong, you are going to end up as a glorified freelancer
00:00:21with a few support staff and you'll never make a big profit.
00:00:24You will always be on a treadmill and you will just feel like business is such a drag.
00:00:28But if you get this right, you will elevate yourself to the level of a founder who owns a business,
00:00:33the business will take on a life of its own, it will have an amazing dynamic team,
00:00:37you'll make loads of profit, you can do this from anywhere in the world
00:00:40and you'll have a new sense of freedom that you've never experienced before.
00:00:43The first element that we need to have in place is to understand the team dynamic
00:00:47that you're going to have in your lifestyle business.
00:00:49Now a lifestyle boutique typically has four to twelve people.
00:00:52Businesses that have one to four people, including yourself,
00:00:55tend to put you in the role of highly paid professional with a support team.
00:00:58Yes, you're making lots of money, yes, you've got a few people helping you,
00:01:02but no, it doesn't really feel like a business where you could take some time off or take a holiday.
00:01:07It feels like if you get hit by a bus, the whole business would stop.
00:01:11Now once you hit the team of four to twelve people, everything changes.
00:01:15A four to twelve person team means that you can play your role as the founder
00:01:20and everybody else can focus on their role to do something important within the business.
00:01:25So let's get in and have a look at what are the key roles on the team.
00:01:27Now there are eight key roles in a lifestyle business.
00:01:30The first one is your role and this is the most important role.
00:01:33I call this the key person of influence.
00:01:35See the truth is between half a million and five million,
00:01:38you've entered a phase called founder-led growth.
00:01:40Founder-led growth is where the business grows because of what the founder does.
00:01:44In practical terms, what this means is that you are the face of the business,
00:01:47you are the face of the marketing.
00:01:49You are going to be on podcasts talking about the business.
00:01:51You'll be up on a stage talking about the business.
00:01:53You might write a book. If you're running ads,
00:01:56you'll be the one featured in the ad describing what it is you want people to do.
00:01:59If you don't use your personal brand,
00:02:01you are leaving 95% of your firepower on the table.
00:02:04Having a personal brand does not mean that you share your private life.
00:02:08What you do have to do is share the value of what your business does.
00:02:11You need to share the stories,
00:02:12the case studies and the intellectual property of your business
00:02:15and make sure that it connects with your ideal customer.
00:02:18The truth is that your personal brand will get 20 times the cut through as your business brand.
00:02:23I had already built multiple seven-figure businesses that looked like this before I had more than 20,000 followers.
00:02:28A lot of people who have a seven-figure business with a six-figure profit are people who have two to 20,000 followers,
00:02:34so long as they're the right types of people who fit the description of your ideal customer.
00:02:39You as the founder, you are going to focus on what we call the five P's of pitching the business,
00:02:44publishing content, creating new products, raising your profile
00:02:48and therefore the profile of the business and doing strategic joint ventures and partnerships.
00:02:52If you do those five things, you're doing your job as the founder.
00:02:55Here's what you're not going to be doing.
00:02:57You're not going to be running the business.
00:02:58The general manager of your business runs the business.
00:03:01The biggest question is how do I get myself out of the day-to-day technician role
00:03:05and actually get into this founder-led growth role?
00:03:08It normally happens when you have a few key people on the team.
00:03:11Someone who's good at sales, someone who's good at helping deliver the product or a general manager.
00:03:16Just one or two good people on the team and you can set yourself free.
00:03:19Also, I really recommend don't think about what you're not going to do.
00:03:23Think about what you are going to do.
00:03:25Your job is founder-led growth using the five P's that I've talked about.
00:03:29Here's something fascinating.
00:03:30If you go into a Starbucks or McDonald's,
00:03:32there's a good chance that that's a multi-million dollar business
00:03:35that is being run by a 24-year-old who only has a high school qualification.
00:03:39Now cafes and restaurants are very hard businesses to run.
00:03:42These businesses have razor-thin margins.
00:03:44They have a complex variety of products.
00:03:46They have lots of young people working who need training.
00:03:49All of those things make it incredibly difficult to run
00:03:52and yet a 24-year-old on a normal amount of money can run that business.
00:03:56So I want to propose to you that a 24-year-old on a normal amount of money could also run your business.
00:04:02You do not need someone to quit their job at Google to come and work with you and run your business.
00:04:06You need someone who previously ran a cafe, a restaurant, a nightclub,
00:04:09or a hospitality business to come on in and run your business.
00:04:12These people are not crazy expensive,
00:04:15but they're amazing at what they do.
00:04:17So you want a general manager to come in and do everything that is hiring, firing, team management,
00:04:22running the business so that you don't have to do that stuff
00:04:25and you can be that key person of influence who drives the founder-led growth.
00:04:29Let's look at the rest of the team.
00:04:30There are three key elements to your business.
00:04:33There's generating demand, generating supply, and general operations.
00:04:37Under your demand generation,
00:04:39you're going to have someone who's head of marketing and someone who's head of sales.
00:04:41Those are the two key roles.
00:04:43Now you might end up having two or three salespeople,
00:04:46or you might have one or two marketing people,
00:04:48but essentially it's a marketing role and a sales role.
00:04:50Under operations, you've got finance and IT,
00:04:53and finance is going to do all the stuff relating to the money,
00:04:56and IT is going to do all the stuff that relates to the data.
00:04:59And then over here on the supply side,
00:05:00we've got the product development and product delivery team and the customer success team.
00:05:04So product development builds a great product and delivers a great product,
00:05:08and customer success makes sure that people are using that product effectively
00:05:12and solves any problems that happen along the way with a customer.
00:05:15What are the products that you're going to be selling?
00:05:17Well, you're going to need something called a product ecosystem.
00:05:20Product ecosystem is four products that are all nicely connected together
00:05:23to form one smooth experience for the customer.
00:05:26Now, if you only have two of these products or three of these products,
00:05:29you're going to be leaving huge amounts of money on the table.
00:05:32You need all four. You're going to have a core product.
00:05:35The core product is the main thing that you're known for.
00:05:37If you're a consulting business, you're going to offer consulting packages.
00:05:40If you're an agency, well, you're going to have agency services.
00:05:43If you're a training business, your core product will be a training package or a training program.
00:05:48If you're a software business, your core offering will be the subscription to the main software product,
00:05:53and it may even include a setup fee. Before the core product,
00:05:55we have two products that help to generate demand.
00:05:58The first one is a gift. Something for free that people can try with no risk.
00:06:02They can download it. They can engage with it.
00:06:04It might be a free trial. It might be a free account. It might be a free download.
00:06:08Something for free that totally scales. It's digital. It feels valuable,
00:06:12but as many people as possible can access this free thing,
00:06:15and it feels like they're getting an immediate quick win. The next one is a product for prospects.
00:06:19This is a small commitment of either time or a small amount of money in order to get started.
00:06:24This could be maybe a workshop that people do that's 90-minute workshop,
00:06:28or maybe it's committing to a 30-day trial. A product for prospects could potentially be a book that people buy.
00:06:33Or my personal favorite is an online assessment where people go to your website
00:06:37and they fill out an online assessment. Side note,
00:06:40if you've never set up an online assessment, really easy to do at my company called scoreapp.com.
00:06:45So for example, if you do cybersecurity consulting,
00:06:48you might have a cybersecurity assessment that makes people go,
00:06:52"Oh, I have a risk that needs solving,
00:06:53and now I need to get these services in order to fix it." Now, after the core offering,
00:06:58people are going to want more from you. Because they had such a great experience with your core offering,
00:07:01they're going to want to stay connected. They want to stay as a customer.
00:07:04This is where we have a product for clients. A product for clients is typically a subscription offering.
00:07:09It could be a membership or a community, or it could even be something like an annual retreat.
00:07:13But it's something that is special for your clients
00:07:16and your customers to then go on and upgrade to. If you have all of those four products,
00:07:21each of them is doing a job. One gets attention, one builds trust, one delivers a transformation,
00:07:26and one maintains great standards over time.
00:07:29So those four products, they each do a job, and the profit is not in any particular product.
00:07:34It's in the product and service ecosystem. Your core team's job is to drive people through
00:07:39that product and service ecosystem
00:07:41so that the marketing and salespeople are getting people to go through the gift
00:07:44and the product for prospects and by the core. Product delivery
00:07:47and customer success are going from core into product for customers,
00:07:50and the team understands what the flow is,
00:07:53and they understand how to get people to go to the next step. Now, by the way,
00:07:56if you're enjoying this video, I'd love it if you'd give this channel a like
00:07:59and a subscribe and maybe leave a comment as well.
00:08:02I love the fact that I get to share my entrepreneurial lessons with you
00:08:05and I can in some way help you on your entrepreneurial journey,
00:08:08and I would love it if you could share this channel with someone else who's building a business as well
00:08:12so that we can all learn together. So we now have the team and the products.
00:08:16Let's now focus on the activity. The first activity is the quarterly strategic reset.
00:08:21The quarterly strategic reset is where you get the whole team on an offsite meeting
00:08:25and you get into a boardroom and you actually set yourself up for an amazing 90 days.
00:08:29You want to make sure that you're really clear about your priorities for the next 90 days.
00:08:33You want to delegate accountabilities and make sure the right person is doing the right thing
00:08:37and that they've got all the resources they need to get the job done.
00:08:40You want to get each team member to confirm
00:08:42and make a commitment that they're going to play their role in the next 90 days
00:08:46and they don't see anything standing in the way. The quarterly strategic reset can typically be done in half a day to a full day,
00:08:52and it's really fun to get the whole team together in one boardroom if you possibly can,
00:08:56although you can do it on Zoom if you need to. The next most important meeting is the Monday morning meeting.
00:09:01Now another name for the Monday morning meeting is the three to six thing meeting.
00:09:05Every single Monday morning is the whole team jumps on a Zoom call,
00:09:08take it in turns for everybody to say what they're going to do for the week.
00:09:12They're going to give their three to six most important things
00:09:14that they intend to have finished by the end of the week. Three to six things is about the right number of things
00:09:18for people to declare that they're going to get done
00:09:20and they're willing to be held accountable at the end of the week. At the end of the week,
00:09:23we have a quick meeting, which is the Friday afternoon debrief,
00:09:27and the Friday afternoon debrief is where we go through
00:09:29and we recap what each person said they were going to do on Monday morning,
00:09:33and then they say done or not done. They don't have to give big explanations,
00:09:38but they do have to say whether they got that thing done or if they failed to get it done.
00:09:41And just that little bit of accountability is enough to make sure people got their things done,
00:09:45even if it was in the 11th hour. What also typically happens at these meetings is a little bit of conversation
00:09:51where you might challenge each other or remind each other of priorities.
00:09:54It's a time to check in. It's a time to make sure that there are two times throughout the week
00:09:58where the whole team is together talking about what needs to be done.
00:10:02Okay, the next activity is to commit to having one communication channel.
00:10:05This is one place that all the communication is going to happen. For a small team,
00:10:09you may use a WhatsApp group where all the members of the team are in that WhatsApp group
00:10:14and the constant nattering happens in the WhatsApp group. For a bigger team,
00:10:17you may want to invest into something like Slack where you've got multiple channels
00:10:21and a few extra tools and those sorts of things. It's a little bit fancier, a little bit nicer,
00:10:25but essentially it's just one communication channel where nothing gets lost.
00:10:29It's all in one place. I've seen plenty of successful teams operating in a WhatsApp group,
00:10:33sharing files, sharing links, sharing communication.
00:10:37You don't have to overthink this, but here's what you don't want to have happen.
00:10:40You don't want to be scratching your head thinking was that an email?
00:10:43Did that come to me on WhatsApp? Did that come to me on Slack?
00:10:46You want to make sure there's just one place where all the communication goes through.
00:10:49And also it's really nice for the whole team to have transparency
00:10:53and to see what's being discussed. The third thing that you need to decide as a team is your tech stack.
00:10:58Your tech stack is going to include all of the software subscriptions that you're going to subscribe to.
00:11:03You're going to have an AI provider.
00:11:04You're going to make a decision between all the Microsoft Office products or perhaps the Apple products.
00:11:09You're going to pick a CRM system for managing the relationships with your clients,
00:11:13and you're probably going to have some tools that help you to generate leads and make sales.
00:11:17And in fact, scoreapp.com is absolutely perfect for running a lifestyle business through
00:11:22because all of this thinking is the same thinking that goes into score app.
00:11:26I also want you to make a decision to be extremely careful as to how you store all your documents and files.
00:11:32I want you to have a file storage system so that everybody knows where to file things away.
00:11:37If you've got media assets, they go into the right folder.
00:11:40If you've got databases, that's filed away in the right place.
00:11:44If you've got slide decks that you regularly use, then they're always up to date and they're always in the right place.
00:11:49With a team of 4 to 12 people, it's easy to create a mess if people are not committed to filing things away in the right place.
00:11:54And then finally, I want you to have a dashboard, which we call the sleep at night dashboard or what we call the SAND.
00:12:00The sleep at night dashboard is everything that you need to know about your business in order for you to sleep at night that it's safe, that it's okay.
00:12:06So in the sleep at night dashboard, you might keep things like cash at bank, number of people on the database,
00:12:11a red flags or issues list, upcoming milestones that need to be achieved, whatever it is that would keep you up at night.
00:12:17You want to keep that on the sleep at night dashboard so that doesn't keep you up at night.
00:12:21Okay. And the final thing that is super important is you want to run three campaigns for the year.
00:12:26These three campaigns are the campaigns that I've been running for over 25 years and they always create growth.
00:12:32So let me walk you through the three campaigns.
00:12:34The first one is called the perfect repeatable week. Perfect repeatable week is you pick a set of activities that drive growth through the business.
00:12:41And it typically involves generating leads, appointments, presentations and sales.
00:12:46In one of my businesses, every single Wednesday, we run a 90 minute introduction workshop and it generates leads, appointments, presentations and sales.
00:12:53In another business, we have an online assessment and we drive people to that online assessment and leads, appointments, presentations and sales.
00:13:00In another one of my businesses, we drive people to creating a free account and it generates leads, appointments, presentations and sales from there.
00:13:07So what we're doing here is we're having a particular way of doing business and we just want to repeat it and repeat it and repeat it.
00:13:13Once a quarter, we do something called the quarterly spotlight campaign.
00:13:17The quarterly spotlight campaign is where we do something special or different.
00:13:20It might be a special event. It might be sponsoring an event. It might be launching a new product or a special offer.
00:13:25So for example, it could be a Black Friday offer at the end of the year. It could be an Easter special at the beginning of the year.
00:13:32It could be a summer catalogue that you've got coming out. Whatever it is,
00:13:36you're going to pick something special to do once a quarter that is going to capture the attention of your audience.
00:13:41And it's going to give you something new to talk about. And finally, we've got the annual big message campaign.
00:13:46The annual big message is where we think about what are the big insights that we want to share?
00:13:50What are the big stories we want to share? What are the big ideas that we think people would engage with?
00:13:55And what we're going to do is create lots of content.
00:13:57So we're going to put lots and lots of short form content onto social media.
00:14:03We're going to drive people to long form content so that they can get to know those ideas even better.
00:14:08Right. And we're sharing our big ideas across the annual big message.
00:14:12For example, this YouTube channel is part of my annual big message strategy that I've had for this year.
00:14:17And you've noticed that I've stepped up my game and I'm sharing more ideas that short form and long form content.
00:14:22So what you want to do is figure out what are the big messages and where you're going to share those messages to capture the right audience for your business.
00:14:28Done correctly, the perfect repeatable week will give you consistent sales to make sure that you have a baseline of revenue.
00:14:35Quarterly spotlights will give you that icing on the cake, that cream on top.
00:14:39It'll give you those profit spikes that happen throughout the year.
00:14:42And an annual big message will build your brand over time so that you end up with followers and fans.
00:14:47So this is what it looks like to have a lifestyle business.
00:14:49When you have these four things in place, your lifestyle business starts being absolutely wonderful.
00:14:54None of this is about geography. You could have a team of people who are working all over the world.
00:14:58You could have some people in Boston, one person in Brisbane, one person in Bangalore and one person in Birmingham.
00:15:03All these people could be working all over the world.
00:15:06These products, these don't have to be physical products.
00:15:08These could be digital products. It could be software. It could be services. It could be consulting.
00:15:12These could be intangible products, ideally that you can deliver to an ideal customer anywhere in the world.
00:15:17I love the idea that you begin with the end in mind and you work backwards from there,
00:15:21as opposed to starting with what you have today and trying to improve it.
00:15:25Don't start with something that's a little bit broken and see if you can fix it.
00:15:28I want you to reverse engineer the future, not forward engineer the past.
00:15:31The next question I get is how big does this business need to be?
00:15:34The typical number for most businesses is for that each person on your core team,
00:15:39you need about a hundred and twenty five thousand US dollars per person as a minimum in order for you to stay profitable.
00:15:48So if you have four people on the team, you need half a million dollars worth of revenue.
00:15:52If you have 12 people on the team, you need one point five million dollars worth of revenue.
00:15:56And that tends to be the floor. What I like to do when I'm launching a new business or if I've bought a business,
00:16:01is I like to do scenario planning and financial modeling to see what it takes to make a profitable business.
00:16:06Now, I've given you a back of a napkin version, but what I like to do is have a spreadsheet that has all of the costs and all of the products.
00:16:13And then it looks at what sort of volumes of sales do we need to do in order to make sure that we're profitable.
00:16:19With a decent spreadsheet and some sensible assumptions,
00:16:22you should be able to get the exact numbers that you need to achieve in order to achieve profit,
00:16:26and that you have a crystal ball that tells you exactly what's going to happen at every stage of growth.
00:16:31Now, if you want to know how to get to this, there are actually a few steps that I talk about in this book that get you up to the four to 12 person team.
00:16:40I talk about an entrepreneur apprenticeship. I talk about side hustles.
00:16:44I talk about scout teams and fire starting teams.
00:16:46And it's all in here, part of the lifestyle business playbooks.
00:16:50It's my latest book. It's all my best thinking about the shifts that are happening in the world at the moment and how to approach those shifts.
00:16:57It even takes you one step beyond this four to 12 person team up to a 30 to 150 person team, which is a performance business.
00:17:04If you haven't done so already, go to Amazon and get yourself a copy of the lifestyle business playbooks.
00:17:09It'll give you a little bit more detail and information about how to get to the four to 12 person business.
00:17:14If that's something that you worried about, hopefully you've enjoyed today's video and your business is doing really, really well.
00:17:19I look forward to seeing you next time.