← The $100 MBA Show
The $100 MBA Show
What To Do When Business Is Slow
00:22:11
You’re grinding harder than ever, trying new stuff, showing up daily, and still nothing moves. Leads feel like they vanished overnight, sales are stuck, and the quiet starts messing with your head in the worst way. If you’ve been lying awake wondering if you’re doing something wrong, you’re not alone, and this episode hits that exact nerve.
Loading summary
Transcript4 lines
- [00:00]
A
For small business, a high speed fiber connection is only one piece of the puzzle. You need the total solutions advantage from Comcast Business. It's a first ever combination of the largest, fastest fiber powered network gig speeds with equipment and security included plus a 5 year price lock. Learn more get started for $60 a month for 12 months when you add an advanced solution to a qualifying Internet package. Limited time offer restrictions apply. New Customers only requires 300Mbps Internet security edge and additional Qual service 1 year agreement paperless billing and autopay with bank account required taxes and fees extra. Owning a small business comes with a lot of challenges. When I was starting out, I was chairing meetings, I was scripting and shooting podcasts. I was putting up social media posts. It's a lot. I know. I've been there. There is no doubt growing your small business is hard. It's even harder to do it efficiently. But with LinkedIn you get all the tools you need to grow in one place. With LinkedIn, simplify your sales, marketing and hiring so that you can, you know, actually run your small business. Learn more@LinkedIn.com mbashow does this sound familiar? You're working harder than you ever worked. You're trying new things. You're showing up every single day and nothing is moving. Numbers are flat. The leads have dried up and every morning you wake up and you do it all again. Every night you go to bed, you think to yourself, am I losing at this game called business? Listen, I've been there. I know how this feels. But here is what I know. After 20 years of building businesses, the thing that most entrepreneurs do when things slow down in business actually makes everything worse. If that's where you are right now, I need your full attention because I might help you save your business right now. It might change everything and save your sanity. While you're at it, I'm going to show you exactly how to figure out what's happening and the specific steps to turn it all around. Welcome Back to the $100 MBA Show. I'm your host Omar Zenholm, where I deliver practical business lessons three times a week, Monday, Wednesday and Friday to help you start, grow and scale your business. I got a quick favor to ask. If this show has helped you in any way, leave me a quick review you could do. So wherever you listen to podcasts, this helps me and my team reach even more people who need the same no fluff, practical business advice that you're getting from the show. It only takes a few seconds, but it makes a Huge difference. Thanks for being a part of our journey to help others on their journey. Right off the top. I gotta tell you, the worst thing you can do right now, when business starts to slow down, there is no response that feels completely logical, and it's almost always completely wrong. This is what makes it so difficult, because the most intuitive thing to do is usually the wrong thing to do. I'm talking about putting in more hours, just working harder, doing more of the same thing that just isn't working. I understand why people do that, because when you're scared, you just default to what you know. But I need to tell you something that I need to drill in your mind. Whatever results you are getting right now is directly correlated, is directly related to the things you are doing. So if you are doing something, it's getting you a specific result. If you don't like that result, you got to do something else. So say, for example, I look at myself, it's like I'm out of shape, I'm not healthy, I'm overweight, whatever it might be. I got to look at what I'm doing. If I'm not exercising, if I'm not eating right, if I'm snacking on things that are unhealthy, that is probably the reason why I'm getting the result I'm getting. The reason why people don't really think about this is because it just seems too simple. But it is that simple. People are putting out content on social media or on YouTube or whatever it might be, and it's not going viral. So they just continue to put out more content. But they have the same strategy and the content is the same. They're not really iterating. Iteration is the name of the game in business. You got to change what you do with every repetition so that you can learn what's working. This is something I learned, unfortunately, the hard way. Here it is. Working hard is not a strategy. It's not a strategy. It's just a default response to things not working. I'm just gonna grind it through. I'm just gonna force this into existence. And really, it's a stress response. And you should not default to this. You should always stop and think, what is the right move here? What do I need to change to get different results? One of the best questions I've asked myself over and over again in my career is, why is this not working? This question forces my brain to be more strategic. It forces my brain to think, well, I'm not getting the results I want when I do this. It has nothing to do with the amount. Has something to do with the actual product, with the actual thing itself. Why is this not working? I have to change what this is. I gotta change my approach. I gotta change my strategy when it comes to whatever I'm putting out there in the world. So we started this episode talking about when business is slow. So what is a slow period? How do we define this for? So we know that we're actually in this period? Because not every bad week in business is a slow period. Not every dip in revenue is a signal that something is broken or you need to change something. In my opinion, a slow period is a minimum of three months in a row. When your trend is three months a quarter, where things are not going in the right direction, the graph is not going up. And by the way, flat is down, okay? Flat is not progress. So that's a trend. You gotta pay attention to that. This is your business telling you something's not working. You gotta do something different. Remember, one bad month is maybe just noise. Every business is different. The market might be in a lull, responding to something that happened in the world. Whatever might be happening. Two months is a little concerning now. You gotta have your radar on three months is bad. You need to make sure that three months in a row, if things are not moving in the right direction, you need to make some big changes. Now, I'm not saying blow up your business, but whatever you're doing to provide your product or your service or the way you're providing your product or service needs to be analyzed. You need to start changing your strategy. I'm not asking you to panic here, okay? We want to have a strategic response. And here's what that looks like. Step one, look who's actually buying. The first question I ask when business slows down is not what's broken. It's who is actually buying what is actually working. Look at your customers right now. Who is buying? Who is getting the most value from your offer? Who pays on time? Who refers other people? Who leaves reviews? Who causes zero headaches and actually gets results with what you provide? When things are going south, you gotta look at what's actually winning in your business. You gotta look at the other side of the coin. Why? Because often, more often than not, I would say your issue is an audience problem. You're not serving the right people. People that really value what you have. And sometimes the best thing you could do for your business is just cutting out all the people that are a wrong fit for your product, for your price point, for whatever you offer. Here's what I found in my own business. Very often the slowdown is not because the market disappeared, okay? It's because the wrong customers are eating all the time and energy that should be going towards attracting the right customers. You have to remember that your business and yourself have a limited amount of resources. Time, money, energy, ideas, patience, all that stuff are your resources. It's not infinite. You have a finite amount. So you need to spend those resources, those valuable resources on the right people. The people that actually help your business grow, that actually love what you have, not the people that really don't see the value. By doing so, you start to improve your margins because you can start to go up market, you start raising your prices. And now you start to breathe a little bit of relief because you're not desperate for every customer. You're only going after the customers that actually want what you have. That single shift of saying, these are the people that actually are my perfect ideal customers. The idea of just saying, okay, these are really the people I need to serve, not all these people that are wasting my time. That shift has pulled more businesses out of sole periods that I've ever seen in my 20 years. It's more powerful than any marketing campaign or any promotion or any sales offer or anything else. One of my favorite examples of this is ripbody. Com. If you go to their website, their homepage, this business is run by Andy Morgan, a good friend of ours and was a guest on the show. So you should check that out. Andy runs a fitness coaching program, but he doesn't serve everybody. He doesn't serve men and women. He only serves men because this is the demographic where he can get the best results. Nothing against women, but this is who he has discovered over the years. Actually, he is best to serve. He's also not serving every single man. Okay? If you go to the website, you'll see, hey, we only serve people that actually know how to exercise. You've been to the gym. If I tell you, you know incline press, you know exactly what that means, how to do an incline press. So he's not for beginners. He's also not for advanced. He's for people that have been frustrated by all the gimmicks and all the supplements out there and really just wants some accountability. See how niche he's getting. And because he's so niche, he's sold out. It's very hard to get coaching from him and from his team because he gets incredible results, because he's able to focus on a specific customer or type of customer that is going to get incredible value from him. Whether you realize it or not. So many customers slip through the cracks if you don't have a system, missed calls, follow ups that never happen. It all adds up fast. That's why today's episode is brought to you by Quo, spelled Q U o the business communication system built so you never miss a call. This is the system you need so that you don't miss those precious customers. With quo, calls, texts, voicemails, transcripts and contact details are all in one clean view so your team always has the full picture and can show up for every customer conversation, ensuring a seamless and more personalized experience. This is what excellence looks like. Everyone on your team sees the full thread, replies are faster and customers actually feel taken care of. And Quo works wherever you are right from your phone or computer. Keep your existing number, add teammates in minutes, sync your CRM and let the call routing handle itself as you scale. Money's on the line. Always say hello with Quo. Try Quo for free plus get 20% off your first six months when you go to Quo.com MBA that's Q U-O.com MBA this episode of the $100 MBA show is brought to you by booking.com if you're looking to grow your vacation rental business, this is the place to be. Booking.com is one of the most downloaded travel apps in the world, and for good reason. Since 2010, they've helped over 1.8 billion vacation rental guests find places to stay. But here's the thing. Most vacation rental hosts don't even realize they can list their properties on booking.com and if you're not on the platform, your rental is basically invisible to millions of Booking.com travelers worldwide. After all, they can't book what they can't see, right? I book all my travel, personal and business through booking.com and it's for good reason. I love their Genius program. So because I'm loyal And I use booking.com, i'm a genius. Level three. Yeah, I say it with pride because it gets me the best prices. I also love the fact that they give you all the details about all the hotels or the apartments that you're booking, so I know exactly what I'm getting before I check in. Does the place have a gym? Does it have a hair dryer? Does it have a fridge? What about a washing machine? I know because the listing is always accurate and their app is easy to use. So when I'm dead tired after a long flight and I'm trying to check into my accommodation. It's super simple. Just pull up my booking and show it to the host. So if your vacation rental isn't listed on booking.com, it could be invisible to millions of travelers searching the platform. Don't miss out on consistent bookings and global reach. Head over to booking.com and start your listing today. Get seen, get booked on booking.com Step 2 if it's not an audience problem, you need to diagnose whether you have a product problem. And here is where you're going to have a harder conversation. Sometimes a slow period is not about who you are or or who you are serving. It's about what you're selling. The world is changing very fast. Markets evolve very quickly. Customers needs evolve. What solved the problem completely two years ago might only solve half the problem today. And if your product hasn't kept pace with what is happening and with the evolution of the market, you are losing out to your competitors. Ask yourself honestly, is what I'm selling today the most complete solution to my customer's problem? One of the worst feelings as a customer is when you buy something and it doesn't actually do what you hoped it to do. It didn't actually solve the complete problem you still have. I still got to do this, I still do that. I got to buy that to make that work. It's really frustrating. And you know this as a customer. I personally watched this happen in the webinar space when I was running my software company, Webinar Ninja before we got acquired in 2024. The market's expectations around features and integrations and the experience shifted dramatically during COVID because this part of the market, virtual events, evolved and changed very quickly and you had to change with it. As a company that's serving this audience. The businesses that survived are the ones that recognize that shift early on, very early on, and evolved their product and the ones that kept selling the same thing to the market day after day. Regardless of the shift and regardless of the demands of the market, they struggled and many of them went out of business. Listen, the biggest stakeholder is not your product. Your product is not sacred. It needs to change. For your biggest stakeholder, which is your customer, your customer is the reason why you get paid. If the market is telling you it needs something different, listen, step three when you are in a slow period, when you're in a slump, you got to go on the offense. You got to change your mindset and this is what's going to change everything. Most people, when business is Slow, they go on defense. They cut costs, they pull back. They wait for things to improve. They hope that miraculously the market will change. And I understand that instinct. But here's the problem with playing defense. When you are already losing, you are already behind. Defense doesn't change the scoreboard, only offense does. Let's say, for example, playing a basketball game and my team is down 20 points and we have one quarter to get back in the game, 12 minutes. Yes, defense is part of basketball and part of winning. But the main problem here is that we need to score more points. We gotta go on the offense. I'm not asking you to be reckless. I'm not asking you to panic. I'm asking you to be aggressive. Create something new. Test a different pricing structure. Test a repackaging of your current products. Open a revenue channel that you've never tried before. Let me give you some concrete examples. Say you run a restaurant and you serve lunch and dinner at this restaurant. Your dining room is full as often as it's going to be full. There's only a certain capacity that you can serve in your restaurant. It's a physical space. You hit a ceiling on your reservations and your walk in customers. The slow period is not because your food got worse, okay? It's because you have exhausted your particular market, the particular market that you're serving. So go find a new one. Get into corporate catering. Serve people where they are. Go to private events, private dining experiences. The customers in this space, like businesses, have larger budgets. They plan ahead. They bring 20 people plus instead of just one or two. One catering contract can be worth more than a week of dining service at your restaurant. The product is the same, the kitchen is the same, the team is the same. But a new market unlocks growth that the old model structurally just could not deliver. That is offense. That is you thinking laterally. And that's what slow periods are for. This should be kind of exciting. It's like your chance to just go and do something that will shake things up. If this episode is giving you the clarity you're looking for, I highly recommend you subscribe to the channel because I have an upcoming episode you do not want to miss. It's called don't make these Mistakes when starting a business from home. Many startups start from a living room, from a spare bedroom, from a garage. But there's a right way to do it and there's a wrong way to do it. Do it. Hit subscribe so you don't miss it. It's coming out very soon. I want to make sure you get it as soon as it drops. I want to tell you that as a business owner, as an entrepreneur, you have autonomy, you have a lot of power. And there are three levers every business has that they can pull to help grow their business. This is a simple framework that will immediately give you some clarity of what your options are when your business is slow. One of the things I love about business is that it's pretty simple. And there's only three ways you can grow a business. Just three. So these are the three levers you can pull to get things moving. Lever one is the obvious one. I just need more customers. People say, but that's just one lever. Let's get to lever two. Higher prices. Most people will just ignore this lever. They just pretend it doesn't exist. No. Charge more per customer. Go up market. And here's the secret. You could do it by just simply adding more value to your product or service. If you give more value, if you give more to the customer, they're going to be willing to to pay more. You don't believe me. Anytime there's a recession in the economy, the businesses that do not go out of business are the ones that are high value. Four Seasons does not go out of business because people feel like they're getting more for what they're spending. So just add more value to your product so that you can increase your prices and have higher margins. Lever three more per customer. Increase how much each existing customer spends with you. We're talking about upsells, add ons, premium tiers, retention. This is also known as average revenue per customer or lifetime value. Over the lifetime of their customer, how much do they spend with you? That's it. Those are the three levers. More customers, higher prices per customer, or how much they spend with you. Each customer more per customer. Each growth strategy in the history of business pulls one of these three levers. Maybe sometimes more than one lever. When you're in a slow period, your job is to look at all three and ask yourself, which one of these are the most untapped potential right now? Which one of these levers that I can really pull and really have the most exponential effect to pull me out of this trough of sorrow? Then go and pull that lever. Not all three at once, but just start with one with focus, with consistency, for 90 days, and then see what moves. I want to get even more specific here, because I've been through this multiple times. There was a period at Webinar Ninja, my software company, where we were not growing. Competition was Increasing costs were rising like crazy. We couldn't afford the talent that we needed to compete. It felt like we're fighting forces we just could not see. And here's what I did. First, I stopped reacting and started thinking, this is the most powerful computer that you have. I looked at our customer data and as I'm looking at this data, I asked myself some questions. Who was churning, who was leaving us, who was staying? Who were our best customers? And what did they all have in common? Now, with AI, you can actually pull this data and you can get this on a silver platter. So simple. Now, I didn't have AI back then, but what I found changed our direction. We were spending enormous amount of energy serving customers who were a wrong fit for us, who were actually not making us a lot of money. Enterprise type businesses who needed more handholding and more customization than we were built for. Our best customers were small business owners and creators. Simple use case. They had high satisfaction because their expectations were pretty low versus a big enterprise company. So we had lower churn. So we shifted our entire focus on that niche. New messaging, new positioning, new product priorities built around that specific customer. Then we went on offense and boy, that was fun. We built features for those core customers, the features that they've been asking for. We doubled down on the customer support that they loved. That was one of our biggest competitive advantages already. We looked at the three layers that I talked about and identified that the increasing the value to each existing customer and reducing churn was our fastest path forward. That means we kept more money, we had less of a leaky bucket because customers continued to get value. We're not chasing new customers, we're serving the right ones better. The business started to turn around. Not immediately, but within two quarters, six months, we were growing again and growing rapidly because we were finally building for the right customer. And honestly, it took a bit of courage to say we gotta say no to all these people that are paying us money so that we can serve the right customer and make more money in the long run. So what do you do right now if you're in a slow period? Well, let me make this as practical as possible. If your business is slow right now, here are the exact steps. Step one, define it. Is this a trend? Is this actually happening? Is this three months flat or declining? Or is this just a quick dip of a couple weeks or a month? Be honest and use the data. Don't just use your gut. Step two, audit your customers. Who are your best customers right now? If you use stripe, this is Actually quite easy. You can look at your top customers and it shows you the customers have spend the most with you and you can just basically pull out their emails. Get maybe your EA or even AI to help you with this and you can just simply learn what the domain name of that email is usually their company and look at what they do. Learn more about this customer. Find out what is the commonality between all the top 20, 30, 50 customers you have. Or to make it simple, look at the top 10% of your customers you and find out what's the commonality. Step three, Audit your product. Has your market evolved beyond what you're offering? Be honest. Is your product still the most competitive solution out there? Step four, Identify your lever. Which lever are you going to pull first from the three levers? More customers, higher prices, or more per customer which has the most untapped potential right now? Step five, Go on the offense. Listen, when you're slowly dying, you're having a bad quarter, you have nothing to lose at this point. If you do nothing, it's going to continue to go south. So you might as well go for the office. Pick one thing, some new initiative, an experiment, one channel. Look at the customers that are working and go for it. Give it 90 days of real focused effort, not scattered energy. One thing, 90 days. Go. Before I go, I want to leave you with this. If you're in a slow period right now, I want to just tell you right now the fear is normal, the frustration is normal. Feeling like you're hitting your head against the wall every single day, been there. Every entrepreneur who has ever built something that is real has been there. So this is a rite of passage. You're in good company. This is the chapter that determines whether you're building something real or something fragile. This is going to really test are you built for this? If you get through this, you best believe you can get through anything. You could do this, have an honest look at your business and start going on the offense. You can do that. You can take those steps and turn this business around. But it doesn't just happen by listening to this episode or thinking about what you're going to do. It takes you doing it. So start today. Even if you take a small step, even if that step is writing on your to do list or you're going to do tomorrow. And I'm here to support you on this podcast and on our newsletter. By the way, if you're on our newsletter, you can email me anytime and I reply personally and you can sign up for one of our freebies like our templates over at100nba.net templates and be part of our newsletter. And I'm here to cheer you on and be your coach from afar. If this episode has made you feel empowered, a little bit more pumped about your situation, I'm happy for that. But there's more to learn. We recently published an episode called the Five Silent Killers of Success, how to Avoid Them, and what to Do Instead. This is the mental game of business. If you want to learn more about that, check out that episode. It recently was published on whatever app you are listening to watching. We're there, so make sure you check out that episode. It's called the Five Silent Killers of Success. Go ahead and check it out. If you found today's episode helpful and you want more practical business lessons to help you start, grow and scale your business, the best thing you could do is subscribe to this podcast, hit subscribe or follow on your favorite podcast app, the one that you're using right now. Whether it's Apple or Spotify or ever you listen to podcasts. By hitting subscribe, you get our next episode automatically and it's the best way to support the show. It's absolutely free and it's a way for you to commit to growing your business. And now that you've subscribed, I'll check you in the next episode.
- [26:12]
B
You love what you do. You also love the idea of not doing it one day. But it's getting harder to know the best way to move into the future towards retirement. We hear about inflation, rate hikes, the changing market, gotta get the kids through college, build an emergency fund. And then there's retirement. Here's where Fidelity comes in. Fidelity can help you find clarity in saving for the future, even as your path and priorities evolve.
- [26:36]
A
How?
- [26:36]
B
Well, they'll help you create a free, personalized plan that adapts as your priorities change. They'll also show you what's called timely insights, small tips on ways to save and invest to help meet your goals. And you can monitor your plan so you stay on target. The future's coming, and so is retirement. Fidelity can help you take it on your way. Learn more@fidelity.com future expenses charged by your investments and other costs and fees associated with trading or transacting in your account. Apply Fidelity Brokerage Services member NYSE, SIPC.