Left unadjusted, our fictional chiropractor would have been out of business in 3 months … even though they had $150k cash in hand.
The plan we put in place was aggressive and required some hard conversations, but moved them from non-viable to viable whilst adding $800k per annum to the revenue (600k from the membership platform and 200k from the upsells). There is no doubt that the amount of business after lockdown would decrease, but we should have more than made up for it in the above.
The strategic lessons to take away are as follows:
- Reducing your operating expenditure is the route to a runway. Giving you the time and flexibility to make the moves you need to make
- Always safeguard yourself first and foremost. Not only is it the sensible thing to do, it gives you the clarity to operate.
- Look to alternative business models as a priority. How you did something is not a good reason to continue to do it in that way!
- Customer retention is overlooked but a key part of your survival. Don’t assume they will come back after lockdown … go out and talk to them!
- Upsell revenue is the easiest revenue to unlock. Focus on what they’re buying vs what you’re currently selling and you should be able to find at least 5 new ways to serve your customer better!
I hope this served you and added value! Please share this with your friends and colleagues … anyone you think might have value. They can signup for notifications of the series at https://mailchi.mp/7b8f934357d9/7-days-7-saves
Finally, let me know your thoughts and comments or if I can help you in anyway. My email is firstname.lastname@example.org and I would love to talk about how this applies to you or your business.