Part 1 – Identifying Your Ideal Client
Solve a problem for an ideal client The best startup businesses are generally those that solve a problem. The more painful the problem is for someone, the more valuable your service will be. And if you make people aware of a new problem — or you create a new solution to an old problem — you can become the default solution. This will increase demand for your service. For example, my business is designed to help mid-life corporate pros design a new life. The problem? They’ve spent 10-15 years in their careers, working hard, only to find that climbing the ladder doesn’t make them as happy as they thought it would. Their soul is begging for them to do more meaningful and fulfilling work. The solution? My financial planning service helps ensure they can maintain financial security — and even continue building wealth — while they transition to a new life. Find your ideal clients The great thing about the internet is that you no longer have to be all things to all people. You can simply be really valuable to the right person. And this takes a lot of pressure off our shoulders as business owners. In the past, everything was localized. If we wanted to start a business, we went out in our community and we promoted the business. But the odds of finding hundreds of “ideal” clients in a local community are not very good. On the other hand, today, I can go on LinkedIn and do a targeted search for an ideal client. And immediately find 100’s — if not 1,000’s — of people who may find my service valuable. It’s easier than ever to use social media to, well, socialize. I can send out new connection requests to these folks with a personalized invitation. Something along the lines of “I designed a service to help folks like you with this specific problem…and I post content each day that is designed to help you…would you like to connect and follow along?” Nobody is going to be offended or think you’re being “salesy.” Because it’s leading with service. You’re trying to help someone with a problem. In fact, I even tell them at the end of my connection request note, “if you don’t want to connect, that’s cool too.” I’m not trying to sell everyone. I’m trying to find the right people. Sometimes these new connections lead to immediate conversations. Sometimes they lead to new people commenting or otherwise engaging with my posts. And sometimes it leads to me commenting or otherwise engaging on their posts. Whatever the case, it creates an opportunity to socialize around shared values and perspectives. Which increases the likelihood of forming a mutually beneficial relationship. Collaborate with ideal clients At this point, if you’re able to have conversations with any of these new connections, it’s time to collaborate with them. Tell them how important their feedback is because you want to maximize the value of your service for someone in their situation. When you approach someone as a student, wanting to learn from them, they are generally pretty receptive. Do this often, so you can increase the value of your service. As the value of your service increases, you will gain more confidence and motivation to grow your business. Communicate effectively with ideal clients And you’ll also become much clearer on your messaging. This will help you come up with compelling social media content to attract more ideal clients. Every time you create a social media post, newsletter, podcast episode, YouTube video, or any other form of content — target one person with your message. Again, don’t try to be all things to all people. Because when you do that, you end up being nothing to anyone. If one person feels your messaging deeply, it’s likely that many others will as well. When you find one, you can find five. When you find five, you can find 10. When you find 10, you can find 20. Play the long game. Maximize your value, articulate your value, keep working, and watch things compound over time. Patience is golden.
Part 2 – Structuring Your Online Presence
Building a social presence Our social media presence will dictate our careers in the digital age, so it will be the most important part of growing your business. I use LinkedIn for this. Because that’s where my ideal client hangs out. I may branch off into other platforms in the future, but it’s important to focus on one to start. Social media platforms are short-form content. Short written posts, short videos, carousels. For me, it’s been a great way to clarify my thoughts and find my message to my ideal clients. I’ve been able to fail a lot. Looking back at some of my past posts, I cringe. But, oh well! Because failing is learning and I’ve also learned so much! Probably more than at any other point in my career. And because nobody cares what you posted last week, much less months ago. But as you learn and understand yourself better, it becomes easier to attract people who appreciate you. Newsletter A newsletter is medium-form content. As you clarify your thoughts with short-form, you can start elaborating on your most popular views. A newsletter is a great way to do this. But don’t try to get thousands of subscribers. Just try to get one ideal subscriber at a time. Periodically post something to your social platform encouraging people to subscribe. Put links at the bottom of your newsletter for people to subscribe. Ask people to subscribe in casual conversations. But the goal isn’t fast growth, it’s powerful and sustainable growth. It takes a little longer, but it’s worth it. These are your people! If someone takes the time to read your newsletter on a regular basis, that’s probably someone you’d want to know. Whether they become your client or not, they enjoy your perspectives. Make an effort to get to know them. You’ll make new friends and word-of-mouth is generally good for business. Podcast A podcast is long-form content. This is an amazing way to build an online community around your service to them. If someone takes 30 minutes or more out of their day to listen to your conversations, they’re like a good neighbor. That’s someone who appreciates the value you’re creating. And the guests that come on your show are also people who appreciate the value you’re creating. And they have networks too. Some even have their own communities. That’s a lot of potential for new friends. Like I mentioned earlier about LinkedIn, it’s ok to fail. Your first few episodes will feel so awkward. You’ll feel like it was terrible. But that’s ok. Commitment will make you better. In hosting a podcast and running a business. And it’s really easy to host a podcast. All I do is plug in my microphone to my laptop, throw on my earbuds, and press record. And I have a reasonably priced producer that does everything else. Continuously improve your service If you set up the above steps correctly, you should have clients coming to you. And since the above steps are all forms of self-improvement, you’ll be able to continuously improve the value of your service to your clients. And happy clients means more word-of-mouth. It’s a positive feedback loop that leads to your entrepreneurial freedom!
Part 3 – Pricing Your Service
Pricing Your Service
There is much debate currently on how a solopreneur should price their services. Some folks say you have to go premium. Some folks say it’s better to start low.
I say….it depends.
The thought process behind premium pricing is all about the perception game. If your pricing is low, the market will perceive you as low value. If your pricing is high, the market will perceive you as high value.
Or so the conventional wisdom goes.
But things are changing in the digital age. Whatever service you offer, it’s likely that your potential customer can learn whatever you’re teaching them for free on the internet.
And the new generation has no problem learning how to do stuff on their own by watching YouTube videos or following experts on social media.
Therefore, establishing credibility with free or low-cost services could be a good pricing strategy.
Again, it depends.
Your Target Market Matters
A big part of which way you go will depend on your target market.
If your target market is GenX or older, premium pricing might be the way to go. These folks are used to the baby boomer economy. Where the sole purpose of a business is to make money.
As such, money tends to be the only measure of value to them. And they’ll probably judge your value on how your service is priced.
On the other hand, if your target market is Millennial or younger, this may not be such great advice. These folks grew up in the digital world and expect free stuff on the internet. If everything you offer is gated by high prices, they’re going to look right past you.
And in a world where technology is slashing operating costs, they’re likely to expect online businesses to pass the cost savings from razor thin operating costs to their customers.
And they’re also champions of the new economy, where fulfillment and purpose is just as important as making money. They’re likely to appreciate a business owner that doesn’t value max profit above all else.
Your Marketing Strategy Matters
Probably more important than your target market, is how you market to them.
If you intend on playing the quantity game, premium pricing is probably the way to go. Put a big price tag on your service. Clearly articulate a strong value proposition. And get that message in front of as many people as possible.
Mass email marketing is likely going to be part of your strategy. And maybe even mass cold calling.
The latest data I’ve seen on email marketing, was about a 1.2% conversion rate. So if you send out 1,000 emails with a message that conveys a premium / white glove service, you might expect to get 12 clients.
And if you have premium pricing, this is great.
12 clients x $1,000 per month = $12,000 per month of revenue. This is a pretty good income. Do this for a few years and this can turn into a phenomenal income.
On the other hand, if you plan to play the quality game, lower pricing might be a better way to go. Build relationships and community on social media. Lead with service. Offer a low price point that allows you to build credibility and collaborate with your client.
This collaborative relationship with clients allows you to improve the value of your service, build greater trust and camaraderie, and eventually get them to move up to a higher price tier.
This is called a “value ladder” approach and it’s gaining popularity with online businesses.
What Do You Need?
To me, this is the most important factor that goes into pricing an online service business in the digital age. Because the goal isn’t necessarily to maximize the amount of money you’re making. The goal is to live life how you want to live it.
By running an online business, you can work whenever you want, from wherever you want. And as long as you have an internet connection and a sound mind, you’ll probably never want to retire.
Because of this, once your business becomes established, you’ll have less fear around whether or not you’ll have enough to retire. You’ll have a steady income stream – potentially for life.
And this also means that you won’t have to withdraw from your savings and investments. If you’re disciplined in putting extra money away, you should experience a lot of compounding investment growth over time.
And this doesn’t even factor in social security that will kick in eventually.
Therefore, all you need is to maintain your lifestyle today, while putting away some money for the future. Figure out what you need to fund your lifestyle and price your services accordingly.
To me, this makes more sense than comparing yourself with everyone else who is doing something similar and trying to “compete” with them.