how to start an online business
TRANSCRIPT
How to Start Your Own Online Business
Agenda
• Your Idea
• Multipliers & The Five Forces
• Start with Why
• The Horizon: 5 Years
• The Countdown
• Focus on the Now
• Questions
• All in 60 minutes…!
But first…
• Buddy up!
• Find out three interesting things about your buddy
Your Idea
Your Idea
• Write it down in one sentence
• You have 20 seconds
• Let’s hear three..
• Don’t have one? Suggestions!
Multipliers
Multiplier: Idea x Execution
• AWFUL IDEA = -1
• WEAK IDEA = 1
• SO-SO IDEA = 5
• GOOD IDEA = 10
• GREAT IDEA = 15
• BRILLIANT IDEA = 20
Multiplier: Idea x Execution
• NO EXECUTION = $1
• WEAK EXECUTION = $1000
• SO-SO EXECUTION = $10,000
• GOOD EXECUTION = $100,000
• GREAT EXECUTION = $1,000,000
• BRILLIANT EXECUTION = $10,000,000
Multiplier: Idea x Execution
The most brilliant idea, with no execution, is worth $20.
The most brilliant idea takes great execution to be worth $20,000,000.
- Derek Sivers
The Five Forces
The Five Forces
Visibility Conversion Referral$ Value Repetition
How many customers
do they refer to
you?
How many people
know about you?
What percentage
can you turn into paying
customers
How much do they
spend with you per
transaction?
How often do they come back?
The Five Forces
$50
$207.36
1,200 1% $ 12 1.2 (1 in 5) 1.2 (1 in 5)
1,200 12 $ 144 $172.80
1 (none)1,000 0.5% $ 10 1 (never)
1,000 5 $ 50 $50
Visibility Conversion Referral$ Value Repetition
The Five Forces: online
• Complete your top 3 activities for:
• Visibility
• Conversion
• $ Value per transaction
• Repetition
• Referral
The Five Forces: online
User Experience
Up Selling
CRM / Loyalty Programs
Social Media Strategy
IA & Storytelling
Customer Service
SEO
Paid Online Advertising
Offline Marketing
Email Marketing
Cross Selling
Partnerships
Traffic Conversion $ Value Return Rate Referral Rate
Creating an excellent
product or service
Visibility Conversion Referral$ Value Repetition
Start with Why
Start with Why
- Start with Why. What do you want?
- Three minutes
- Three examples
Start with Why. What do you want?
- Happiness, contentment
- Control over my own time, work for myself
- Work with great people, help them grow and succeed
- Do something meaningful
- Travel, see the world
- Make enough money
Values
- Values: What is important to you?
- Three minutes, share with the person next to you
- Three examples
Values
- Enjoyment
- Growth
- Purpose
- Travel
- Making the world a little bit better than I found it.
The Horizon: 5 Years
What does your future look like?Manifest it!
The Horizon: 5 Years
- Where are you in 5 years?
- Describe the business
- Three minutes
- Three examples
The Horizon: 5 Years
- What are the key drivers?
- Three minutes
- Three examples
Where are you in 5 years?
- International network of 15 schools
- Team of 150 amazing instructors
- Students will be:
- Learning tech skills, 100% placement (really!)
- Working in social development projects
- Learning new fun skills and seeing the world
- Our grads are running companies and are coming back to hire from our programs
The Key Business Drivers
- Locations Amazing Schools
- Hiring Great Instructors
- Marketing FT & PT Students
- Grad Placement Employed Grads
- Revenue Enough Money
- Everyone got 5?
The Countdown
Where are you in 5 years?
- Locations 15
- Hiring 150 FT / 300 PT
- Marketing 2,000 FT
7,500 PT
- Grad Placement 100%
- Revenue: $15m Annual
Where are you in 2 years?
- Locations 5
- Hiring 50 FT / 100 PT
- Marketing 600 FT
2,500 PT
- Grad Placement 100%
- Revenue: $5m Annual
Where are you in 1 year?
- Locations 2
- Hiring 20 FT / 40 PT
- Marketing 250 FT
1,000 PT
- Grad Placement 100%
- Revenue: $2m
Where are you in 3 months?
- Locations 1 Amazing School
- Hiring 6 FT / 12 PT
- Marketing 45 FT
150 PT
- Grad Placement Placement Program
- Revenue: $100k monthly
Overview
Locations Instr. FT PT Grad pl. Revenue
5 years 15 150 / 300 2,000 7,500 100% $15m
2 years 5 50 / 100 600 2,500 100% $5m
1 year 2 20 /40 250 1,000 100% $2m
3 months 1 8 / 12 45 150 in place $100k / m
Focus on Now