Building a Business in 5 Steps

The following is based on my notes from a conference call that was presented by Chet Holmes and featured Marc Goldman. I found it to be an excellent basic outline for the business building process.

I really liked Chet & Mark’s conference call and I have added my own interpretations and examples very liberally, so don’t expect verbatim reporting.

A 5 Tiered Set of Goals

1. Generate Traffic

Whether your business is online or off line, you need traffic, prospects or someway for people who may be interested in your product or service to find you.

When I had my picture framing company I went to trade show across the country, online you can use various methods to bring traffic to your website: Pay per click, organic search traffic from search engine optimization, an affiliate program and several others.

Without traffic you have nothing in any traditional business.

2. Convert Traffic into Prospects

This is where a lot of businesses start to get things wrong by trying to convert traffic to customers. There is an intermediary step…prospects. On this site I convert traffic to prospects, by having them sign up for my newsletter.

The most common way to convert traffic to prospects is to give a free sample of your service or product, or some free related information.

Commonly this is done using an autoresponder series or the download of a free .pdf etc.

The prospect uses this period to test the quality of your work without risk and you can use this phase to screen your prospective buyers and have them learn what to expect from you.

3. Convert to Customers

Once you have traffic and have built up trust, converting prospects to customers should be relatively simple, since it is based only on one skill: being able correctly identify and satisfy a need in your market.

Okay maybe simple is a bit of an exaggeration, when you factor in execution of the idea, but there is no magic. Find a need and fill it.

4. Convert Customers into Loyal Repeat Buyers for Life

You do this essential part by creating added benefits for your customers. These can include autoresponder series or newsletters with advanced tips and even coupons that are given to customers only.

Special forums or members only areas of your website.

Other perks, like special offers from related companies.

The most important of all: listening to the feedback of your customers.

I don’t have the exact percentages, but something like 70% of all car buyers, when surveyed, claimed that they were satisfied with their purchase, but only 30% of them bought their next car with the same company.

Why? Because car companies suck at converting customers into loyal repeat buyers. When is the last time you got any indication that a car company cared about you after you bought the vehicle?

5. Convert your Loyal Repeat Buyers into Evangelists for Your Company

Think Apple Mac. Achieving this goal requires thinking in revolutionary terms. Apple doesn’t sell computers, like Dell and HP do; it sells: “tools for creative minds.”

You can’t get to this level by following the status quo. Rich Dad didn’t sell 20 million copies of Rich Dad Poor Dad and create a cult like following by telling people to get a secure job and save 10% of your income in your 401k.

To get to level 5 you need to push the envelope and innovate. Develop visionary ideas for your company right from the start.

Try turning your business concept into a simple formula. Here’s an example:

Picasso + Personal Computer = Apple Mac

What’s your formula?

To Sum Up

The 5 step are a great way to look at building a business and it is easy to see how a company that starts right from the beginning with all 5 in mind is on a very good path.

I know the call exposed to me some of the “holes” in my business system and I’m looking forward to getting them straightened out.

Jon Symons
Breakinglong boring conference callsdown into simple 5 step guides, so you don’t have to.

This post was written by Jon Symons, see my short bio. Or use the contact page to get in touch.