Business
On today’s episode of Rock the Podcast, Jess and Margy talk about top-line revenue and profit! When Margy came on as co-owner in 2018, her number one goal was to grow the top line revenue of Interview Connections to 7 figures. Even though Margy didn’t quite understand profit margins yet, she knew that she wanted the revenue to reach that 7 figure goal. And it worked! In 2019, Interview Connections hit 7 figures, and the company is currently scaling to 8 figures. It wasn’t until recently that Jess and Margy shifted their focus to healthy profit, as well as top-line revenue growth. The first step that they took was to address their pricing structure. When Jess started Interview Connections in 2013, there was no other podcast booking agency on the planet! This meant that Jess had nowhere to look when she created the pricing structure. Way back then, Jess had implemented a month-to-month pricing package for clients and raised prices every few years. In 2017, Jess and Margy had a coaching day with Ali Brown, and Ali helped them completely restructure their pricing packages. Not only did Jess and Margy restructure so that the team and the business were being compensated fairly, but they also ensured that the clients were getting everything they needed from the package! Interview Connections prices their services based on the value they are providing. The entire package, which includes so much more than guaranteed podcast bookings, offers clients an opportunity for a massive ROI. When we price our services, we do not compare to what other podcast bookers are charging, because we are offering so much more than just podcast bookings! As an entrepreneur, it’s so important to ask yourself, “What is the value I’m providing?” It’s crucial to make sure that you are charging what you’re worth. As buyers, we often assume the more expensive service is the better one! When you charge what you’re worth, and when you have a high ticket offer, you are perceived to be of higher value. But of course, you need to back that up with your value and your service delivery! Don’t inflate your price to where it would not be a good investment for a business owner. But we find that most people price their services too low. First, you need to look at your service and look at how you can increase your client’s ROI. Once you can improve their experience with your service, you can justify higher prices! The next part of growing your top-line revenue is growing your sales infrastructure. If there is only one person in your organization who can close sales, especially if you’re selling high ticket services, you’re hitting a huge ceiling to your top-line revenue growth. Growing a sales team is critical because allows you to multiply your sales results. At Interview Connections, we have a strong sales team engine that is propelling us forward. As an entrepreneur, you should be out there on podcasts working on your visibility to obtain leads, and then having a team come in and work on actually closing those leads! Margy goes on 4-6 interviews a month, creating content, developing her thought leadership, and building up brand and company! From this, qualified leads come in and meet with our sales team. You need to build your visibility for the leads to find you. We needed more salespeople to handle the leads we were getting from podcast guesting! The next important step in growing top-line revenue is tracking your progress. It’s imperative to set goals and to look at what you’ve accomplished so far! Margy has a spreadsheet that is incredibly near and dear to her heart. That spreadsheet tracks revenue, expenses, and profit for each month. Jess and Margy find this tracking to be so helpful for planning, setting goals, and celebrating successes. When Jess and Margy have felt disappointed that they didn’t hit a goal, they can look back to their May 2017 sales of 30k and compare that to May 2020 with 300k sales! It really hits you in the face with everything that you’ve already accomplished. The work you did 6 months ago is why you are here today! What you’re doing right now is going to determine where you are 6 months from now. If you are not getting interviewed on podcasts right now, you cannot expect growth in your visibility 6 months from now! Start now because this long-term strategy really does take time to grow. What you do right now is going to determine what your spreadsheets look like a few months down the road. Jess and Margy find that they themselves, along with many entrepreneurs, are generally impatient. This can be a difficult concept to master, when you allow yourself to be patient and track your results, you’ll be able to see the fruits of your labor. Turning the focus to profit, Jess and Margy started tracking profit in 2017. In Margy’s spreadsheet, they could see every year lined up with income expenses and profit. You should be focusing on profit from Day 1, but it becomes even more important as you grow. Jess and Margy didn’t really focus on profit for a while but then their expenses started to catch up with them. As they started tracking expenses and revenue, they found they could drive growth and profit in a way that is strategic and sustainable! Another one of Margy’s obsessions is org charts. Org charts are incredibly important for your revenue and profit growth because they help you plan as you grow for the team that you will need! You can look at what that structure needs to be and what the different teams and departments will look like. Jess and Margy created an org chart so they could look at what payroll expenses would be at 10 million top-line revenue. This helped them create the growth trajectory of various roles, teams, and departments in the company. The clarity that org charts bring can help you lead your team and be intentional with your profitability. The bottom line is to be mindful of what you’re investing in for your business. You should separate the “nice to haves” and the critical drivers. Things that really drive profitability like visibility, coaching are smart investments. Avoid things that aren’t actually going to move you forward and they’re going to cost you more!