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Tag: profits

  • Why I Prioritize People Over Profit | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Every business decision reflects a value system, even if it’s not named outright. When sales drop, do you cut costs or beef up your sales team once you’ve confirmed your sales strategy still works? That choice reveals where you put your weight, i.e., what you prioritize when resources are constrained but the company still has room to maneuver.

    For me, the answer is to invest in the right people. However, some organizations make the choice of never calling out which approach is driving their decision-making.

    Instead of making a strategic choice, these companies operate from unnamed assumptions. This leaves their leaders in a precarious situation. When a crisis hits, some choose security while others choose growth, creating confusion and conflict. That is a value killer.

    It’s people who create value, however you define it — be it profit, revenue, standards or culture — and the leader’s job is to give them the clarity they need to align their roles with organizational goals. So here is how to bring those values to the surface to create space for principled decisions, even when the right path isn’t easy or perfect.

    Related: Why Profits Over People Is Destined to Fail

    The cost of unnamed priorities

    Decision-making can be a good gauge of how well an organization is aligning its priorities. The bigger the company, the higher the cost of people pulling in different directions. McKinsey found that fewer than half of the 1,200 global business leaders it surveyed described their decisions as timely, and many of their decision-making processes were ineffective.

    Decision paralysis does not afflict companies because they lack data like sales, profit and headcount, but because they haven’t named their values or aligned their value within the company as part of their culture. When priorities aren’t explicit, people judge each other’s actions through their own value lens. Then they get frustrated when the other party is doing it differently.

    There are exceptions. When survival is at stake due to looming bankruptcy or market crashes, the scope of decision-making narrows and cost-cutting becomes unavoidable. However, in most downturns, I have to align the whole team on what we should do. It’s then that I prioritize people over short-term profit concerns, not because I ignore financial results, but because empowered people build sustainable businesses over time.

    When values clash

    The tension between people and profit isn’t theoretical — it’s a lived reality on a daily basis. Corporate culture is basically an aligned value system that needs to be called out so everyone follows it to maximize effectiveness.

    We need to see value systems not as obstacles, but as guiding forces. They help reveal what matters most when trade-offs feel murky. Think about these clashes of values, which companies of different sizes may face without clear priorities:

    • Speed vs. quality: Do you ship fast or perfect the product before going to market?

    • Innovation vs. efficiency: Explore new markets or optimize current operations?

    • Customer satisfaction vs. margins: Absorb costs to build reputation or protect profitability of the current quarter?

    • Centralization vs. autonomy: Head-office control or local decision-making?

    Confronted with these kinds of tensions, I don’t aim to impose my values, but I also don’t believe avoiding the conversation serves anyone. Instead of choosing between competing values, the goal is to agree on the structure for how we balance them or prioritize one over the other under what conditions. Forget neutrality. Prioritizing and balancing values is not a 50-50 proposition. Instead, we first have to lean into conflict to create clarity.

    Related: Holding True to Your Values Is an Essential Decision-Making Metric

    Bringing values to the surface

    The best approach to get everyone on the same page is practical, although perhaps sometimes uncomfortable. If I am on the management team and there’s disagreement between whether to cut costs or invest in more people, let that argument surface at the table so everyone can discuss it from their own perspective.

    Cost-cutting is not necessarily anti-people. And investing in people is definitely not anti-profit for the long run. But it may feel the wrong way when decisions aren’t grounded in a shared value framework.

    The safety versus speed crisis over at OpenAI showed how misaligned values can play out if leaders are divided. The board operated from OpenAI’s original nonprofit mission that put safety first, while CEO Sam Altman valued speed to market. When Altman was briefly fired in 2023, the chaos that followed — employee revolt and investor panic — put the organization at existential risk.

    The resolution came only when OpenAI built a frame that let them hold both safety and innovation together. To avoid value killers like OpenAI’s one-time crisis, values need to be named explicitly. If there’s conflict over assumed values, this is your opportunity to build structures that hold them in balance.

    Related: How Putting People Before Profit Fueled My Company’s Long-Term Success

    Values as navigation tools

    The lesson from OpenAI was that every growing organization faces moments when values seem to clash. In mission-driven companies especially, scaling brings tension between staying true to purpose and chasing market opportunities. Rather than avoiding that tension, it must be confronted.

    This isn’t about moral superiority or choosing sides in some philosophical debate. The organizations that thrive are the ones that make their priorities explicit and have the agility to balance them when they appear to conflict. That’s what putting people first actually means: giving your team the clarity they need to navigate complex choices and create lasting value together.

    Every business decision reflects a value system, even if it’s not named outright. When sales drop, do you cut costs or beef up your sales team once you’ve confirmed your sales strategy still works? That choice reveals where you put your weight, i.e., what you prioritize when resources are constrained but the company still has room to maneuver.

    For me, the answer is to invest in the right people. However, some organizations make the choice of never calling out which approach is driving their decision-making.

    Instead of making a strategic choice, these companies operate from unnamed assumptions. This leaves their leaders in a precarious situation. When a crisis hits, some choose security while others choose growth, creating confusion and conflict. That is a value killer.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

    Simin Cai, Ph.D.

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  • My Profitable Company Is Worthless to Investors — Here’s Why That Works in My Favor | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Over the past few months, I’ve received a surprising number of emails and even phone calls from private equity firms asking if I’d consider selling my business.

    “Gene,” they all say, “we’ve followed your growth in the technology space and believe we can help you unlock value while preserving your legacy and team. Would you be open to a 20-minute call to discuss mutual opportunities?”

    It’s flattering, sure. And it makes sense. According to Harvard’s Corporate Governance site, private equity exits jumped from $754 billion in 2023 to $902 billion in 2024 — about a 20% increase. Other reports show deal value rising by 50% in the first half of 2024 alone, with strategic acquisitions leading the way.

    Private equity is everywhere — scooping up contractors, manufacturers, distributors and yes, even tech companies like mine.

    Why? Because many business owners are aging out. The average small business owner in the U.S. is over 55, according to the Small Business Administration — and that was back in 2020. So a wave of exits is underway, and investors are eager to buy businesses with strong financials, recurring revenue and growth potential.

    But my business? I don’t think I’m sellable. Not because I wouldn’t entertain an offer — but because once a buyer looks under the hood, they’ll realize the uncomfortable truth: My company has no real value.

    Related: Want to Maximize the Sale Price of Your Business? Start with These 5 Value Drivers

    The balance sheet no one wants

    Let’s start with the basics. My business has no hard assets. No buildings, no equipment, no physical property. Just a bit of cash and accounts receivable.

    Sure, we also have very few liabilities. In fact, most of our “payables” are actually prepaid client deposits — blocks of time that customers purchase in advance. It’s a great way to boost cash flow and reduce risk, but it creates a liability a buyer would need to honor. Not exactly attractive.

    No contracts, no guarantees

    We don’t lock clients into long-term contracts. We’ve never sold maintenance agreements or recurring support plans. Our clients use us when they need us — and leave when they don’t.

    There’s no proprietary process or secret sauce. What we do isn’t complicated. In fact, anyone could learn it online. Our clients hire us not because we’re unique, but because they don’t have the bandwidth to do it themselves.

    So if a private equity firm were to evaluate my company, they’d quickly realize there’s no predictable revenue stream to base a valuation on. No recurring income. No clear multiple to apply. We go project to project, client to client.

    That might work for me. But it doesn’t work for them.

    A team that disappears when I do

    I do have employees. But most of the work is handled by independent contractors. That comes with its own risk — from worker classification issues to a lack of long-term commitment.

    Our setup has always been virtual. We’ve been remote since 2005. No office. No shared culture. No in-person meetings. Everyone works independently, and I check in as needed. It works for us — but it doesn’t scream “scalable organization.”

    The reality? This business doesn’t run without me. I do the selling. I do the marketing. I oversee projects, handle accounting, manage admin and lead the day-to-day. If I were hit by a bus tomorrow, this business would fold within 30 days — with contractors and staff likely splintering off to do their own thing.

    No IP, no exclusivity, no moat

    We implement CRM platforms. It’s a crowded, competitive space. The very vendors we represent are often our biggest competitors. There’s no barrier to entry. Competitors appear regularly — usually cheaper, often younger and sometimes better.

    We don’t have any intellectual property, documented systems or defined processes. Every project is different, and it rarely makes sense to create templates or workflows that won’t apply next time.

    So there’s nothing here to “buy.” No assets. No exclusivity. No edge.

    So, what do I have?

    I have a business that works for me.

    For more than 25 years, it’s paid the bills, put my kids through college and built a retirement plan for my wife and me. It’s also supported dozens of employees and contractors along the way. That’s something I’m proud of.

    My model has always been simple: do the work, bill for it, generate cash, save what you can. Rinse and repeat. And for me, it’s worked beautifully.

    But let’s be honest: this model doesn’t build transferable value. There’s no goodwill. No buyer-ready systems. No brand equity. No enterprise value. Just a highly functional, one-person-driven operation that disappears without me.

    Related: Starting a New Business? Here’s How to Leverage Transferable Skills From Your Prior Careers and Drive Success

    If your business looks like mine

    Don’t be discouraged. But do be realistic.

    You may be generating cash — and that’s great. You may be living well — even better. But unless you’ve intentionally built for scale, structure and succession, your business may not be worth much to anyone else.

    And that’s okay — as long as that’s the plan.

    For me, it is.

    Over the past few months, I’ve received a surprising number of emails and even phone calls from private equity firms asking if I’d consider selling my business.

    “Gene,” they all say, “we’ve followed your growth in the technology space and believe we can help you unlock value while preserving your legacy and team. Would you be open to a 20-minute call to discuss mutual opportunities?”

    It’s flattering, sure. And it makes sense. According to Harvard’s Corporate Governance site, private equity exits jumped from $754 billion in 2023 to $902 billion in 2024 — about a 20% increase. Other reports show deal value rising by 50% in the first half of 2024 alone, with strategic acquisitions leading the way.

    The rest of this article is locked.

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    Gene Marks

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  • I Stopped Doing These 3 Things Myself — and It Made My Business More Profitable | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    In the early days of any business, most founders wear too many hats. You’re the product lead, marketer, customer service rep and ops manager — sometimes all in the same afternoon.

    I’ve been there. When I was launching my first AI startup, I was writing code, answering support tickets, hacking on SEO and trying to figure out Google Ads at night. Every time I jumped from one thing to another, I paid a tax: ramp-up time, mental fatigue, missed details.

    Eventually, I drew a line: if a function had a steep learning curve, wasn’t core to the product or customer experience, and could burn cash fast if I got it wrong, it had to go.

    Here are the first three things I outsourced — what worked, what didn’t and how I make the decision now.

    Related: How to Turn Big Business Moments Into Lasting Brand Momentum

    1. Google Ads had to go first

    I took a real swing at it. I set up campaigns, followed Google’s recommendations and even tried Performance Max. One day it would “work,” the next day I’d spend $90 to make a $24 sale.

    Whether you’re running a SaaS tool, an ecommerce store, or a local service business, paid ads can become a black hole. The learning curve is steep, the platform is opaque by design and Google is always nudging you to spend more so the algorithm can “learn.”

    I hired a specialist. Instantly, I stopped burning time trying to reverse engineer bidding strategies and keyword intent. I could focus on the roadmap, customers and the parts of marketing I actually understood. Worth every dollar.

    My advice: Try it briefly so you understand the vocabulary and the levers. Then get out. Your money will disappear faster than your learning compounds.

    2. Social media was next — and it blew up (in a bad way)

    I outsourced content and channel management to someone who promised to “crush it.” I gave full access to my accounts. It devolved into drama, threats and low-quality work. I shut it down.

    The lesson? Never give full control of a distribution channel to someone you don’t know, and never confuse enthusiasm with competence. Social media can be valuable for any business building in public — but only if it’s handled by someone you trust and can hold accountable.

    Next time: I’ll only outsource to someone vetted by people I trust, with scoped access, clear deliverables and a kill switch.

    3. PR was the third — and it worked

    I’d watched competitors outrank me and land strong stories. I tried the DIY route (like HARO), but the ROI wasn’t there. So I brought in someone who could own the process — strategy, pitching, follow-through — and translate my product into narratives reporters actually want.

    That freed me to focus on what I do best while the media engine ran in parallel. For businesses in crowded markets or emerging categories, this kind of PR support can be game-changing.

    How I decide what to outsource now

    I use a simple filter:

    • Is this core to the product or user experience? If yes, I keep it.
    • Is the learning curve steep enough that I’ll waste weeks for marginal improvement? If yes, I outsource.
    • Could a mistake here be disproportionately expensive? (Ads and legal are great examples.) Outsource.
    • Do I understand it well enough to evaluate the work? If not, I’ll do a quick self-guided crash course, then bring someone in.
    • Can I structure a small, low-risk test? If yes, I do that before any retainer.

    Handling the handoff while staying lean

    I started with literal paper notes, then the Mac Notes app. Today, I still keep it simple: Trello boards when needed, email for most communication, and regular short check-ins. The point is clarity, not tooling.

    One clear metric, one owner, one cadence.

    Access-wise: role-based logins, password manager and instant revocation baked into the plan. That social media experience burned this into my process.

    Related: How to Actually Get Returns in Your Marketing Efforts

    About that “it’s faster if I do it myself” line…

    It isn’t. It just feels faster because you don’t have to explain anything. In reality, you’re trading days of deep work for weeks of shallow thrash.

    Do enough to understand it. Then move it off your plate — so you can focus on what only you can do.

    You can’t do it all — not for long and not well. Start by outsourcing the work that burns cash when done poorly, has a steep learning curve, or pulls you furthest from the product or customer. Keep control of your infrastructure, build small, reversible contracts and measure everything.

    The cost of trying to be superhuman is higher than the cost of a good specialist.

    In the early days of any business, most founders wear too many hats. You’re the product lead, marketer, customer service rep and ops manager — sometimes all in the same afternoon.

    I’ve been there. When I was launching my first AI startup, I was writing code, answering support tickets, hacking on SEO and trying to figure out Google Ads at night. Every time I jumped from one thing to another, I paid a tax: ramp-up time, mental fatigue, missed details.

    Eventually, I drew a line: if a function had a steep learning curve, wasn’t core to the product or customer experience, and could burn cash fast if I got it wrong, it had to go.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

    Jeremy Gustine

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  • This Company Gives Away 100% of Its Profits — And Its Thriving | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Even the staunchest capitalists acknowledge the tension between profit and social good. In a consumer-driven society, money often overshadows morals.

    Many founders claim their companies exist to make a difference, but in a system that prioritizes profits, good intentions are easily squeezed out. The Green brothers stand out as rare exceptions.

    Award-winning authors and YouTube trailblazers Hank and John Green have a storied history of supporting global health causes. At first, they did so by raising awareness with their platform. Now, the always innovative brothers are trying a more active form of philanthropy.

    Their latest venture, Good Store, is taking social justice to a new level, selling sustainable, quality products and donating 100% — yes, 100% — of profits to charity.

    Related: This Keepsake Reminds Me of My First Dream — And Why I’m Grateful It Never Came True

    Image Credit: Good Store

    The Fault in Our Systems

    While the Green brothers are best known for their bestselling novels and educational YouTube videos that have guided countless high school students, philanthropy is quite literally in their DNA. They grew up in a family deeply rooted in nonprofit work: their father worked at The Nature Conservancy, while their mother was a community activist.

    “Our parents are never proud of us when we accomplish anything other than giving money away,” John jokes.

    Early in his career, John worked at a tertiary care children’s hospital as a student chaplain — an experience that proved to be immeasurably formative.

    “Every kid who came into that place received excellent care,” he recalls. “It wasn’t perfect, and the outcomes weren’t always what people wanted, but everyone had a chance.”

    In 2011, brothers John and Hank Green launched the educational YouTube channel Crash Course. During that period, they became increasingly interested in global health equity, often brainstorming ways to support what John describes as “long-term interventions.”

    “I think I was probably a little more passive in my early activism,” John recalls. “But around the time of the success of The Fault in Our Stars, I realized I now had time — not just money, but also other resources — that I could use.”

    One of those resources was the small online merch store the brothers had started in 2008. They decided to direct its revenue toward improving healthcare in Sierra Leone, one of the world’s most impoverished nations.

    “It’s easy to feel paralyzed when trying to address the world’s problems — they’re endless, and horrors abound in every direction,” John says. “For us, the goal was to make a long-term investment in one community, so we could see the kind of positive change that unfolds over time.”

    Their first step was to consult trusted peers, asking who was doing the most effective work in these communities. Again and again, one name came up: Partners In Health, an organization they had already supported through their annual charity event, Project for Awesome.

    The brothers called them up, asking if they were interested in a more formal partnership, and the rest is history.

    “When we started providing support to the maternal healthcare system in Sierra Leone, about one in 17 women were dying during pregnancy or childbirth,” John says. “Today, it’s closer to one in 53. Our contribution is only a tiny part of that progress — most of the credit goes to the Sierra Leonean government and the Sierra Leonean people — but being able to play even a small role is a reminder that life doesn’t merely suck.”

    Related: Do You Give Discounts To Your Nonprofit Clients? I Don’t

    From Paper Towns to real impact

    In addition to material health in Sierra Leone, Good Store also supports causes like TB treatment in Lesotho, and coral reef restoration — all powered by the sales of everyday products like socks, underwear and soap.

    “We’re trying to create more ethical ways to consume the things you have to consume,” John says. “People need these essentials, so we want to offer them at a fair price, but with a different business model.”

    Shockingly, this model doesn’t exactly have investors tripping over themselves to join on. After all, the economic ROI of a company that donates all of its profits after breaking even isn’t exactly enticing to traditional capitalists.

    That means the brothers rely on their own money and investments from a few close friends to fund the business.

    “The deal is that we break even, and the rest of the money goes to charity,” John explains. “In the narrow sense, is that a good investment? No. But like, I’ve had investments that didn’t break even.”

    While he admits to hearing out “socially conscious” venture capitalists over the years, John believes the company doesn’t require outside money to be successful.

    “We’ve been growing steadily for the last 15 years, and I’m comfortable with that pace,” he says. “Having capital to accelerate growth would be exciting, but it would also come with strings I’m not comfortable with.”

    Conclusion

    Success for Good Store means more than just a positive profit margin. It means funding treatment for the 1.5 million people who die of tuberculosis each year, and helping lower maternal mortality rates in Sierra Leone.

    The world may not be a wish-granting factory, but for countless people around the globe, Good Store comes remarkably close.

    Leo Zevin

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  • Bally’s Atlantic City Unprofitable Through First Half of 2025

    Posted on: August 23, 2025, 08:26h. 

    Last updated on: August 23, 2025, 08:26h.

    • Bally’s Atlantic City has not been profitable in 2025
    • Bally’s is the only casino in AC losing money this year
    • Q3, however, has been strong for the New Jersey casino town

    The future of Bally’s Atlantic City remains murky after the Boardwalk casino resort revealed it lost money running the place through the first six months of 2025.

    Bally's Atlantic City casino profits revenue
    The Atlantic City Boardwalk entrance to Bally’s. The casino resort wasn’t profitable during the first six months of 2025. (Image: Shutterstock)

    On Friday, the New Jersey Division of Gaming Enforcement (DGE) posted second-quarter and half-year net revenue and gross operating profits for the nine casinos in Atlantic City. While all were profitable during the April through June period, most casinos showed their profit margins shrinking year-over-year.

    Bally’s profit of just $2.3 million represented a 14.7% drop from Q2 2024, though the period was a substantial improvement on Q1.

    For the year, Bally’s remains in the red, with an operating loss of $896,000 for the six months. Bally’s gross operating profit, which the DGE says is a “widely accepted measure of profitability in the Atlantic City gaming industry,” has plummeted 439%.

    Gross operating profits are before interest, taxes, depreciation, amortization, affiliate charges, and other miscellaneous items. 

    Bally's Atlantic City casino profits revenue
    (Image: NJ DGE)

    Bally’s Struggles

    The New Jersey DGE reports additionally show that Bally’s is accommodating far fewer guests and getting far less money per room.

    In 2024, Bally’s 1,121 guestrooms were occupied 62% of the time on an average nightly rate of $154. Through six months of 2025, those same guestrooms were occupied just 55% of the time at an average rate of $142.

    Bally’s net revenue in 2025 through six months, inclusive of gaming, rooms, food and beverage, totaled $90.6 million. That’s down 7.7% from a year ago. By comparison, market leader Borgata reported net revenue of $385.1 million. Hard Rock was at $284.7 million, and Ocean was at $243.1 million.

    With additional competition soon coming by way of downstate New York, Bally’s needs a quick turnaround. It’s a bet few would likely want to make on the aged, tired property.

    Positive Elsewhere 

    While Q2 showed tightening profit lines for most of the casinos down the shore, the outliers being Borgata with a profit increase of 16% and Ocean Casino with a profit surge of 67.9%, the report represents the springtime period before Atlantic City experienced a summer comeback.

    Gaming revenue this summer has soared, with brick-and-mortar casinos reporting year-over-year gains in May, June, and July.

    Even before the summer surge, eight of the nine properties were profitable, with the eight managing to bridge the Bally’s gap to report a 1% industrywide profit gain on the prior year’s six months. The casinos have gotten creative in limiting overhead and increasing margins, as revenue during the first half was flat.

    All operators were profitable, despite continuing pressure from higher costs for the goods and services they purchase,” said James Plousis, chair of the New Jersey Casino Control Commission.

    Plousis said the $179.9 million Q2 profit was the second-best second quarter in four years.

    “Quarterly results from the spring season, coupled with July’s strong monthly figures released last week, reveal that Atlantic City has been competing well for regional gaming and leisure tourists. The casino hotels have raised the bar for positive visitor experiences, with more than $1.1 billion reinvested over the past four years to elevate the properties with first-class gaming, leisure, dining, and entertainment,” Plousis added.

    Devin O’Connor

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  • 5 Sales Secrets Your Competitors Don’t Want You to Know | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Poor pricing always comes with a profit margin, whatever the category or product you have. In 2024, returns in ecommerce reached $743 billion, almost 15% of all retail sales in the US. A significant part of these returns would not have happened if priced right.

    Such errors are not only responsible for lost revenue but also come with missed customers, eroded market share and shattered brand trust.

    The good news? I’m about to share five proven ways that you can use to help your sales grow.

    Related: An Entrepreneur’s Guide to Startup Pricing Strategies

    1. Dynamic pricing

    The retail landscape in 2025 is more tense than ever. Real-time competitor activity, demand shifts, stock levels monitoring and scraping, all while using AI-driven tools, make it now easier than ever to adjust prices within a few seconds. This allows ecommerce brands to remain agile and competitive without manually updating listings.

    Take Airbnb as an example. Their ‘Smart Pricing’ tool fine-tunes nightly rates based on seasonality, local events and demand spikes. Hosts using Smart Pricing are nearly four times more likely to receive bookings and report a 12% increase in revenue, on average.

    By automating price decisions, you can react instantly to the market, run A/B tests to identify price sensitivity and keep your margins healthy even in crowded categories.

    2. Competitive pricing

    The US e‑commerce market, worth $1.19 trillion in 2024, is projected to hit $1.29 trillion by the end of 2025. Such growth always comes with fierce competition, requiring competitive pricing, which is named as a top priority when making a purchase by 46.8% of online shoppers.

    Competitive pricing means strategically changing your prices, depending on other players on the market and your value proposition. It’s often used by businesses selling similar products with little differentiation, where everyone is fighting for the same customer.

    Walmart and Amazon are stuck in a constant pricing battle. Walmart uses competitive pricing backed by dynamic algorithms, closing its price gap with Amazon by 3% and even reducing prices by 4% on Amazon’s top‑selling products. This approach has helped Walmart remain a strong competitor in fast‑moving categories like grocery and packaged goods.

    If you’re in a competitive niche, monitor competitor pricing regularly and use dynamic or AI‑powered tools to adjust in real time.

    Related: A Marketer’s Guide To Successfully Navigating A Price War

    3. Value-based pricing

    Value-based pricing focuses on what customers are willing to pay based on perceived value, not just production cost. This approach positions you for better margins and long-term loyalty.

    Apple is the gold standard here, with its customers staying loyal despite being in quite a premium segment with high prices. People see how a company invests in innovation, user experience and brand prestige and that’s when they’re willing to pay more. As of Q1 2025, Apple held a 19% share of global smartphone shipments, up from 16% the year before.

    Start by understanding what value means to your audience. Gather feedback, analyze market perception and position your brand clearly.

    4. AI-driven pricing

    In 2025, over 60% of enterprise SaaS products embed AI features, many of which are used for pricing optimisation and personalisation.

    AI-driven pricing uses machine learning to analyse customer behaviour, competitor prices, supply levels and market trends in real time. Then, the system determines the ideal price point to maximise both conversions and profitability.

    Google Workspace recently raised prices by 17–22% after integrating AI features into every business plan. By bundling AI capabilities directly into its offering, Google increased perceived value and reduced churn, even with a higher price tag.

    For ecommerce businesses, the takeaway is clear: invest in AI tools that integrate with your existing platforms (ERP, BI, CRM). Make sure to monitor the financial impact, avoid abrupt price shifts and allocate resources to maintain and update your AI models for continued accuracy.

    Related: AI’s Role Is Up to You — These 4 Rules Make the Difference

    5. Promotional pricing

    Temporary discounts with urgency are one of the simplest ways to attract new customers and boost sales. It can come in many forms: percentage discounts, flash sales, coupon codes or free shipping. A 2024 Statista study found that 62% of online shoppers are motivated to buy when offered a promo code, especially via email or social media.

    McDonald’s changed its McValue platform in the US to add popular options like the $5 Meal Deal and ‘Buy One, Add One for $1’. These promotions are forecasted to drive revenue growth to $27.4 billion in 2025 – a 5.1% year‑on‑year increase.

    Incorporate promotions into your broader marketing and financial strategy to drive short‑term sales, clear inventory or launch new products.

    Pricing is a living, evolving part of your business that can influence your profits and, what’s more, customers’ trust. Data-driven strategies can help you course-correct quickly. The best way to increase sales is to adapt your strategies as markets change and combine dynamic, competitive, value‑based, AI‑driven and promotional pricing.

    Poor pricing always comes with a profit margin, whatever the category or product you have. In 2024, returns in ecommerce reached $743 billion, almost 15% of all retail sales in the US. A significant part of these returns would not have happened if priced right.

    Such errors are not only responsible for lost revenue but also come with missed customers, eroded market share and shattered brand trust.

    The good news? I’m about to share five proven ways that you can use to help your sales grow.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

    Slava Bogdan

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  • Microsoft and Meta profits are soaring but their stocks are sagging because both companies aren’t building data centers fast enough

    Microsoft and Meta profits are soaring but their stocks are sagging because both companies aren’t building data centers fast enough

    NEW YORK (AP) — Wall Street is feeling the downside of high expectations on Thursday, as Microsoft and Meta Platforms drag U.S. stock indexes lower despite delivering strong profits for the summer.

    The S&P 500 was down 1.6% in midday trading and on track for its worst day in nearly eight weeks, falling further from its record set earlier this month. The Dow Jones Industrial Average was down 418 points, or 1%, as of 11:15 a.m. Eastern time. The Nasdaq composite was 2.4% lower and heading for a second straight loss after setting its latest all-time high.

    Microsoft reported bigger profit growth for the latest quarter than analysts expected. Its revenue also topped forecasts, but its stock nevertheless sank 6% as investors and analysts scrutinized for possible disappointments. Many centered on Microsoft’s estimate for upcoming growth in its Azure cloud-computing business, which fell short of some analysts’ expectations.

    The parent company of Facebook, meanwhile, likewise served up a better-than-expected profit report. As with Microsoft, though, that wasn’t enough for the stock to rise. Investors focused on Meta Platforms’ warning that it expects a “significant acceleration” in spending next year as it continues to pour money into developing artificial intelligence. It fell 3.6%.

    Both Microsoft and Meta Platforms have soared in recent years amid a frenzy around AI, and they’re entrenched among Wall Street’s most influential stocks. But such stellar performances have critics saying their stock prices have simply climbed too fast, leaving them too expensive. It’s difficult to meet everyone’s expectations when they’re so high, and Microsoft and Meta were both among Thursday’s heaviest weights on the S&P 500.

    The next two companies in the highly influential group of stocks known as the “Magnificent Seven” to deliver their latest results will be Apple and Amazon. They’re set to report after trading ends for the day, and both fell at least 1.3% on Thursday.

    Earlier this month, Tesla and Alphabet kicked off the Magnificent Seven’s reports with results that investors found impressive enough to reward with higher stock prices. The lone remaining member, Nvidia, will report its results later this earnings season, and its 4.3% drop was Thursday’s heaviest weight on the market after Microsoft.

    The tumble for Big Tech on the last day of October is helping to wipe out the S&P 500’s gain for the month. The index is down 0.7% and on track for its first down month in the last six, even though it set an all-time high during the middle of it.

    Still, it wasn’t a complete washout on Wall Street thanks in part to cruise ships and cigarettes.

    Norwegian Cruise Line Holding steamed 8.2% higher after delivering stronger profit for the latest quarter than analysts expected. The cruise ship operator said it was seeing strong demand from customers across its brands and itineraries, and it raised its profit forecast for the full year of 2024.

    Altria Group rose 7.6% for another one of the S&P 500’s bigger gains after it also beat analysts’ profit expectations. Chief Executive Billy Gifford credited resilience for its Marlboro brand, among other things, and announced a cost-cutting program.

    Oil-and-gas companies also generally rose after the price of a barrel of U.S. crude gained 1.3% to recoup some of its losses for the week and for the year so far. ConocoPhillips jumped 4.9%, and Exxon Mobil gained 1%.

    In the bond market, Treasury yields continued their climb following a mixed set of reports on the U.S. economy.

    One report said a measure of inflation that the Federal Reserve likes to use slowed to 2.1% in September from 2.3%. That’s almost all the way back to the Fed’s 2% target, though underlying trends after ignoring food and energy costs were a touch hotter than economists expected.

    A separate report said growth in workers’ wages and benefits slowed during the summer. That could put less pressure on upcoming inflation. A third report, meanwhile, said fewer U.S. workers applied for unemployment benefits last week. That’s an indication that the number of layoffs remains relatively low across the country.

    Treasury yields swiveled up and down several times following the reports before climbing. The yield on the 10-year Treasury rose to 4.31% from 4.30% late Wednesday. That’s up sharply from the roughly 3.60% level it was at in the middle of last month.

    Yields have been rallying following a string of stronger-than-expected reports on the U.S. economy. Such data bolster hopes that the economy can avoid a recession, particularly now that the Fed is cutting interest rates to support the job market instead of keeping them high to quash high inflation. But the surprising resilience is also forcing traders to downgrade their expectations for how deeply the Fed will ultimately cut rates.

    In stock markets abroad, indexes sank across much of Europe and Asia.

    South Korea’s Kospi dropped 1.5% for one of the larger losses after North Korea test launched a new intercontinental ballistic missile designed to be able to hit the U.S. mainland in a move that was likely meant to grab America’s attention ahead of Election Day.

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    Stan Choe, The Associated Press

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  • I Scaled My Company From $10 Million to Over $200 Million in 4 Years. Here Are 3 Things He Did to Lead The Company Through Market Disruptions. | Entrepreneur

    I Scaled My Company From $10 Million to Over $200 Million in 4 Years. Here Are 3 Things He Did to Lead The Company Through Market Disruptions. | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    When I started Appfire in 2005, hardware was king and companies like Dell, IBM and HP were the leaders and innovators of all things tech. Businesses relied heavily on hardware to fuel their IT infrastructure, and the idea of the cloud seemed like a utopian dream. My partner and I built our business to support traditional hardware-centric models, and it was a system that served as well in those early years.

    By 2010, I found myself at a crossroads as the rise of cloud computing was slowly shifting focus toward virtualized environments and we were deep in development to deploy new collaboration software on a hardware-based platform. VMware burst onto the scene, making virtualized software all the rage. Hardware evaporated almost overnight.

    As a business leader, I had to make a difficult decision: should I steer my team and company in a direction that would essentially abandon all the work we’d put towards our hardware-based product to jump on the virtualization trend with the rest of the market and our competitors? Or should we stay the course, pressing on with our product that was built on a hardware platform? After careful deliberation, we decided against investing in virtualization right away as the timing wasn’t right for us.

    I’m reminded of this anecdote as the AI boom continues its momentum, with no signs of slowing down. Just take a look at Nvidia’s recent earnings or Atlassian’s introduction of Rovo, an AI assistant. Someday, when we look back at the history books, this period will be marked by the incredible rush and shift we’ve seen from companies of all sizes to integrate AI into their offerings. This extends beyond merely providing AI-powered solutions. Companies are rebranding, restructuring and reinventing themselves as AI-centric to attract investment, talent, and market share.

    As business leaders, we’re constantly faced with the challenge of whether we, too, should jump on the latest trend. Do we follow the pack and shift our entire strategy and product roadmap, or remain on our current path?

    Related: 10 Growth Strategies Every Business Owner Should Know

    Through my own journey of growing and scaling a leading software company from $10 million to over $200 million ARR in four years, I’ve identified three tips that can help leaders determine whether to embrace a trend or stay the course.

    1. Ensure the shift aligns with what customers want

    Don’t lose sight of customer wants and needs during times of change. Getting it right for your customers is more important than being right. Research has found that more than 90% of people believe companies should listen to customers to drive innovation. Even if as a business leader you vastly desire to incorporate AI into your end model, if it’s not important to your customers you will fail and you won’t make a profit.

    There are several ways you can get this feedback from your customer base. Deploying customer surveys, implementing a customer advisory board and meeting with customers in person are great ways to understand if what you are building makes sense for your customers. If your company has a strong channel program, talk to your partners regularly about what they are hearing from customers

    2. Determine if you have the right resources

    It can be tempting to jump on a trend, particularly when the market demands it and competitors are already on board. In 2010, one of the main reasons we decided not to quickly shift from our hardware platform strategy to virtualization was that we didn’t have people in place with the right skill set. Because of that, we knew we couldn’t succeed in virtualization in a way that would have an immediate impact on our customers.

    When a drastic market shift happens, instead of jumping on the bandwagon, put those efforts and resources into training your staff. Many are willing and looking to expand their skill set – in fact, one study shows nearly 75% of employees are willing to learn new skills. Then once you have the right people with the right skills who can help you make an impact, you can turn your focus to innovation. When employees get the right training to gain the skills they need, the business itself will see the benefits.

    Related: Your Company Won’t Grow Until You Follow These 4 Keys to Success

    3. Stay true to your core values

    Remember the core values you established when you launched your company and use them as guiding principles as you make decisions. Nearly all employees agree that a workplace culture grounded in core values plays a critical role in long-term success.

    If the latest trend aligns with your mission, vision and purpose, it could be a valuable addition to your strategy. However, if it doesn’t, pursuing it may not help your company long term. Staying true to your foundational principles ensures that your business remains focused, authentic, and purpose-driven amidst evolving market dynamics.

    When a new trend disrupts the market, navigating a path forward can be challenging. Consider the approach Atlassian took with Rovo. While others rushed to get an AI assistant to market last year, Atlassian was intentional and strategic. It mattered more to them to release a tool that aligned with their mission of making teams more effective than being the “first.”

    Remember that getting it right for the customer matters more than conforming. Oftentimes blindly following the crowd without critical thinking can lead to conformity and a loss of innovative thinking. Don’t lose sight of your mission, vision, and purpose. These values are likely what attracted employees and customers to your organization in the first place, and what will keep them long after a trend has faded out.

    Randall Ward

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  • Take This Radical Approach to Customer Retention to Boost Employee Morale — And Your Profit | Entrepreneur

    Take This Radical Approach to Customer Retention to Boost Employee Morale — And Your Profit | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    There are few guarantees in business, but this one is certain: If you don’t keep customers, you won’t have a business for long. Yet, at a time when most companies are desperately trying to maintain customer loyalty (retention is more profitable than acquisition, after all), there’s often a missing link in their efforts: Understanding the powerful connection between customer satisfaction and employee engagement — and how to unlock it.

    As a Chief People Officer currently overseeing my company’s customer organization, I’ve seen first-hand how connected they truly are. At its most basic, losing customers can have a direct impact on employee morale and even lead to regrettable talent turnover. But there’s more nuance to this connection: nearly everything employees do has the potential to deeply impact customers. In turn, customer feedback and outcomes can have a powerful effect on an employee’s sense of purpose, achievement and satisfaction.

    Related: 7 Surefire Ways to Turn Your Low Customer Retention Rates Around

    I’ve witnessed how establishing a customer-centric approach across the entire organization can lead to growth opportunities that benefit both employees and customers. But to get there, businesses need to leverage that connection by making customer success the forefront of every employee’s experience. Here’s how.

    Make customer success everyone’s responsibility

    Most companies take a siloed approach to customer success, relegating it to a single department, while others remain largely insulated from customer interaction. But I’ve come to realize that the more we empower all of our cross-functional teams to contribute to customer success, the more purposeful, impactful and engaging their roles become, and the more they can drive customer loyalty and retention.

    For a more holistic approach, I am a fan of the bowtie model. In contrast to the traditional marketing funnel, which ends when a customer converts, the bowtie provides a more end-to-end representation of the customer journey. It’s a better way to ensure everyone in the company is maximizing engagement with the customer over the long term — whether through strategic ongoing communication and marketing efforts or more integrated processes and practices designed to deepen this relationship.

    One way we do this at my company is by encouraging every department to evaluate every task — and every ask — from the perspective of how it benefits the customer. Whether it’s marketing, sales, product or engineering, this filter is applied to all decision-making. Of course, we also look to metrics like Customer Satisfaction Score, customer retention, and revenue expansion with existing customers to ensure our efforts translate into results.

    Supercharge customer touchpoints

    I recently traveled overseas to meet with a customer, and as I was leaving, their CFO turned to me and said something I’ll never forget: “Don’t get me fired.” It’s a powerful reminder that our view on customer success must be broader than just ensuring product integration or stability. Everything we do has a ripple effect on their company’s success, which can impact their personal reputation, too.

    The concept of radical empathy isn’t new in customer service. Cultivating a deeper understanding of customer needs is crucial for effective product development, marketing and sales, but it can easily get lost once a customer is onboarded. Building more proactive touchpoints with customers —and even baking them into the early stages of product development — can help overcome this oversight.

    For us, that means attending industry events and building out strategic channels and information-sharing communities to better understand their sticking points. We’ve also established customer segments and verticals to identify and interact with the unique needs of different types of customers to deliver a personalized service approach. When we understand how customers are using our product — and particularly their pain points — we can better target everything from our marketing and sales campaigns to all product-focused initiatives

    Everyone in our organization knows customer retention is a team sport. Reaching out to customers to help solve product issues or when launching something new is not only possible but preferable. That’s precisely why we launched a customer retention program that treats flight risks as a pipeline and leverages tightly coordinated collaboration across departments to deliver impact to those customers.

    Most importantly, these frequent and proactive touchpoints also allow us to learn what is working for our customers, which we’ve seen be a powerful motivator for our team.

    Related: 3 Ways Founders Can Connect With Their Customers to Drive Sales

    Don’t overlook the link between employee experience and customer experience

    Being on the receiving end of an exceptional customer experience can radically shift the way we perceive a business. It turns out that when an employee has a hand in making that happen, it can be just as impactful for them.

    This shouldn’t come as a surprise: today’s employees are looking for purpose in their work. Who doesn’t want to make a difference in the lives of others? Connecting this desire to customer success initiatives only makes sense — it improves the ability to deliver on customer promises and makes the workplace more satisfying for all.

    And I believe organizations can take this connection a step further: pouring the same energy into employee experience that they do in fulfilling customers. In one of my previous roles, we would actively measure customer retention against employee retention and found a strong correlation between the two. These results were interesting but not shocking: prioritizing employee experience leads to more engaged employees, who, in turn, are motivated to create better customer experiences. Simply put, boosting satisfaction in one camp can effectively raise retention and productivity levels for both.

    Of course, this balance isn’t always easy to get right. But in my experience, incremental improvements are what add up over time. Starting small is better than not at all. At the end of the day, the more your employees know, understand and care about your customers, the better they’ll serve them (and the more they’ll enjoy the results) — regardless of the role they are in. And that’s a true win-win for the bottom line.

    Christine Park

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  • What Are the Most Profitable Airbnb Cities for Hosts, Owners | Entrepreneur

    What Are the Most Profitable Airbnb Cities for Hosts, Owners | Entrepreneur

    In some cities, Airbnb listings make more than the average weekly wage — in one night.

    Using data from Airbnb and the U.S. Bureau of Labor Statistics, the financial site Wealth of Geeks compared average weekly salary data to the average cost per night of a short-term Airbnb rental and found the 10 top cities where renting out an Airbnb could earn a host the most — and in some cases, more than half the salary they would have made in a week.

    Related: Airbnb Just Rolled Out Major Changes for Hosts and Guests, Plus New Tools for Groups: ‘It’s Going to Be a Big Win’

    “The ability for residents to earn over half their weekly salary from renting out a property for a single night is impressive, not to mention, an extremely convenient way to earn extra income – it’s much easier than time-consuming second jobs or side hustles,” Michael Dinich, founder of Wealth of Geeks stated.

    Arizona has seven spots in the top 10, including No. 1 and No. 2.

    Airbnb, meanwhile, has recently updated its platform with more experiences for guests and introduced the option to stay at “Icons” houses around the world, from the house in the movie “Up” to Prince’s “Purple Rain” home.

    Airbnb also recently released new tools for hosts, like group messaging.

    Related: Airbnb’s New ‘Icons’ Cost Less Than $100 Per Night, Including the House from ‘Up’ and Prince’s ‘Purple Rain’

    Here are the most profitable cities in the U.S. for Airbnb hosts, based on Airbnb income as a percentage of the average weekly wage.

    1. Scottsdale, Arizona

    Average weekly salary: $804

    Average Airbnb cost per night: $449

    Airbnb income as a percentage of the average weekly wage: 55.9%

    2. (tied) Tempe, Arizona

    Average weekly salary: $804

    Average Airbnb cost per night: $402

    Airbnb income as a percentage of the average weekly wage: 50%

    2. (tied) Charlestown, South Carolina

    Average weekly salary: $690

    Average Airbnb cost per night: $345

    Airbnb income as a percentage of the average weekly wage: 50%

    3. Phoenix, Arizona

    Average weekly salary: $804

    Average Airbnb cost per night: $385

    Airbnb income as a percentage of the average weekly wage: 47.9%

    4. Las Vegas, Nevada

    Average weekly salary: $724

    Average Airbnb cost per night: $312

    Airbnb income as a percentage of the average weekly wage: 43.1%

    5. Glendale, Arizona

    Average weekly salary: $804

    Average Airbnb cost per night: $344

    Airbnb income as a percentage of the average weekly wage: 42.8%

    6. Gilbert, Arizona

    Average weekly salary: $804

    Average Airbnb cost per night: $329

    Airbnb income as a percentage of the average weekly wage: 40.9%

    7. Chandler, Arizona

    Average weekly salary: $804

    Average Airbnb cost per night: $322

    Airbnb income as a percentage of the average weekly wage: 40%

    8. Virginia Beach, Virginia

    Average weekly salary: $857

    Average Airbnb cost per night: $332

    Airbnb income as a percentage of the average weekly wage: 38.7%

    9. North Charleston, South Carolina

    Average weekly salary: $690

    Average Airbnb cost per night: $254

    Airbnb income as a percentage of the average weekly wage: 36.7%

    10. Mesa, Arizona

    Average weekly salary: $804

    Average Airbnb cost per night: $292

    Airbnb income as a percentage of the average weekly wage: 36.3%

    Sherin Shibu

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  • My Startup Couldn’t Raise VC Funding, So We Became Profitable. Here’s How We Did It — And How You Can Too. | Entrepreneur

    My Startup Couldn’t Raise VC Funding, So We Became Profitable. Here’s How We Did It — And How You Can Too. | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    It’s no secret that the startup world is hardcore. Half of startups fail before year five, and only one in ten survive in the long run. Recent economic trends aren’t too encouraging either. Last year saw a 38% drop in global startup investment and a 30% decrease in the U.S., specifically. Moreover, of the available funds, a significant amount was gobbled up by trendy artificial intelligence startups. So, if you’re not in AI, the picture may appear even more grim.

    Today’s founders have to come to terms with the fact that the VC funding round they’ve been working toward might not materialize. Though this has always been the case, the bar is now so high that a plan B is essential — how will your business survive if it doesn’t receive funding?

    Alternative startup funding is one increasingly popular option, e.g., taking out a loan with a traditional credit institution. But this isn’t for everyone and definitely not for pre-revenue startups because the bank needs to see how you will repay the loan. Plus, collateral — or the lack thereof — may disqualify any software or other startups up front, as, unlike VCs, banks don’t operate on faith.

    So, if nobody’s giving you funds and you don’t have the runway to hold out until the ecosystem picks up again, there’s only one way your startup can grow — become profitable.

    Related: The Entrepreneur’s Guide to Building a Successful Business

    Why profitability needs to be top-of-mind even if you’re doing well

    I have been actively fundraising for my on-demand Consumer Packaged Goods (CPG) startup since its inception three years ago. First, we raised $1.9 million in pre-seed capital for building out our business core, which we did — securing the necessary partnerships, putting together a base of operations, developing our software and growing the team.

    With a solid foundation and proven business model, it was time to scale, and we sought VC partners to help us ramp up our operations. What I expected to be three to six months of active fundraising turned into a year that bled into the next and, to this day, is ongoing.

    Despite demonstrably positive business results and a slew of warm contacts and cold pitches, investor response was tepid. Interest came with conditions and homework — “Let’s reconnect when you achieve these figures.” But when we did, the goalposts shifted. Fundraising started to feel like a goose chase, and the increasingly turbulent economic environment didn’t do us any favors either.

    Right now, competition is intense and startups that investors would swarm just a few years ago might not get a second look today. With that in mind, founders should avoid placing all their eggs in one basket and hedge their bets by approaching growth in a profit-oriented direction.

    Because if you don’t, you have two equally unappealing options: going bust or getting chained to an opportunist investor who will pay pennies on the dollar.

    Three things a founder must do to be profitable

    Four months ago, my startup reached profitability for the first time. It came after more than a year of active work and planning, and here’s what it took.

    1. Change your mindset

    The main job of a startup founder is to raise funds — this is something that gets drilled in at incubators, accelerators and other mentorship programs. Accordingly, a founder’s focus often lies in beautifying their startup for investors, i.e. finding ways to boost KPIs even if it’s unsustainable, focusing on design over functionality, and spending big in marketing to demonstrate growth.

    When pursuing profitability, this must be unlearned. Growth cannot be cosmetic, and for many, that demands a change in mindset. Goals and priorities must be redefined. Forget maximizing sign-ups; focus on paying customers; forget vanity metrics; focus on conversions; forget your personal wants; focus on business needs.

    Note that this doesn’t mean you should stop fundraising, but you probably will have to revise your pitch deck.

    Related: How to Fund Your Business With Venture Capital

    2. Optimize your business

    A changed mindset is not enough—you need to get in the trenches and optimize, optimize, optimize. For a regular business, your runway is limited, and if you don’t bring your balance sheet into the green, then it’s game over.

    Here’s one specific area to pay attention to: startups often hyperfocus on client acquisition and neglect user retention. They’ll pay through their nose to get a signup but invest little in ensuring clients stick around, leading to a profitability-killer combo of high CPA (cost per acquisition) and a high churn rate.

    As my co-founder always tells our clients: “All you need is 100 loyal customers for a successful full-time business.” We adopted the same mentality, going for quality over quantity.

    Tackling this was a cornerstone of our journey to profitability. We went to great lengths to understand specifically when and where our clients churn and put all our effort into answering their pain points to ensure people keep using our services. This way, you’ll get more bang for every buck you’ve invested in acquisition.

    3. Expand your offering

    Unless you’ve been striving for profitability since day one, chances are it’s going to take you a very long time to reach it. In fact, it may be impossible to reorient your business quickly enough. For this reason, it’s wise to look into additional revenue streams that can support your business while it turns over a new leaf. This can be anything from additional services to new products. For example, my CPG startup allows anyone to start a side hustle or full-blown business selling on-demand supplements, cosmetics, and packaged foods. However, to start selling, our customers need to set up an online store where they can direct their customers.

    While our customers found our platform easy to use, they struggled to set up a store – so we began offering assistance with this as a separate service. Essentially, we leveraged our existing expertise to offer ecommerce development services, which was critical in extending our runway.

    Martins Lasmanis

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  • Why Restaurateur Jack Gibbons Loves Confrontational Customers | Entrepreneur

    Why Restaurateur Jack Gibbons Loves Confrontational Customers | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Experience is everything.

    That’s the underlying belief of FB Society, a Dallas-based hospitality company operating numerous restaurant concepts that are intrinsically innovative and scalable. FB Society CEO Jack Gibbons’ history of scaling unique restaurant concepts is marked by a pragmatic understanding that profit is not just desirable, but an essential element for expansion. He emphasizes that the decision to grow a restaurant must be earned through the establishment of a financially viable and culturally rich foundation.

    FB Society knows a lot about building successful restaurant brands. The company developed, scaled, and sold the extremely popular Twin Peaks chain as well as Velvet Taco (of which they are still investors).

    “Whether it’s the culinary side or the experiential side, it’s got to be something that you ask, ‘why should it exist?’,” the CEO said about developing new concepts. “Because the last thing the world needs is just another restaurant.”

    In this interview for Restaurant Influencers with Shawn Walchef of Cali BBQ Media, Gibbons asserts: “If you don’t build margin into your brand, you can’t hire the best people, you can’t buy the best products, you can’t run great campaigns, and it gives you zero flexibility.”

    “The first thing is you just got to run one great restaurant and it’s got to make sense financially.”

    D.N.A. stands for Differentiation, Nuances, Attitude

    Jack Gibbons places a premium on a brand’s D.N.A., which stands for Differentiation, Nuances, and Attitude.

    This deliberate approach ensures that as the company expands, it retains its uniqueness and doesn’t lose its soul.

    Gibbons integrates the brand’s DNA into every aspect of the business, sharing it with the team and incorporating it into training. He believes that decisions, even at the management level, should be aligned with the brand’s fundamental D.N.A.

    “We create a DNA that’s actually written down on paper, and it’s really the reason a brand should exist,” articulates Gibbons. “We share the DNA with the team. We make it a big part of the training. We make it part of something you celebrate all the time.”

    In the realm of industry feedback, Gibbons adopts an uncommon perspective. He values confrontation and sees direct feedback, even when negative, as a requirement in order to improve.

    Gibbons challenges the industry norm by publicly responding to every Yelp review, whether positive or negative, viewing it as an opportunity to show customers genuine appreciation and a commitment to continuous improvement.

    This approach reflects his belief that embracing criticism is vital for the growth and excellence of management teams in the competitive restaurant industry.

    “I love this feedback. I could just ignore it if I choose to, or I can act upon it,” he says. “If you truly value your customers, but you say only when it’s something that’s positive, then that’s a bunch of bull***. Because the reality of it is we don’t execute perfectly every day.”

    The straightforward, no-nonsense approach to development is what has helped catapult Jack Gibbons to the top of the industry.

    With energy for growing concepts still running high, he shows no signs of slowing down.

    In his words, “There’s just so much to learn.”

    Subscribe to Restaurant Influencers: Entrepreneur | Spotify | Apple

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    Restaurant Influencers is brought to you by Toast, the powerful restaurant point of sale and management system that helps restaurants improve operations, increase sales and create a better guest experience.

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    Shawn P. Walchef

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  • This Single Sales Productivity Hack Is How I Made $5.7 Million in Personal Net Sales My First Year | Entrepreneur

    This Single Sales Productivity Hack Is How I Made $5.7 Million in Personal Net Sales My First Year | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    It was mid-2019, and I found myself at an uncertain crossroads in my career. After a long, fruitful stint as VP of Sales in the wireless industry, a merger tossed me out on my tail with no golden parachute, fallback plan or even a dinghy to navigate the shifty waters of the job market.

    With the urgency hovering, I had to secure something quickly to replace my income. This led to securing one of the first few opportunities that presented itself — a commission-only solar sales position. Hearing the earning potential, I dove in headfirst.

    Having no prior experience in solar, I’d be lying if I said I wasn’t just a bit nervous. But one thing was certain: I’ve always thrived off of challenges and was ready for the elevation process to start over in a booming new industry.

    For me, the elevation process is what has always fueled me, not the prize itself at the end of it. Where’s the fun in laying a dead gazelle in front of a lion? It’s the chase, the adrenaline of proving myself to me and exceeding my own expectations that keep me fired up and ascending to new levels (okay, sure, and maybe the necessity to succeed so my family didn’t end up homeless had a little bit to do with it as well.)

    Nonetheless, I knew my previous sales experience equipped me with the skills and resourcefulness to win, but what I didn’t fully appreciate just yet was the impact of a single productivity hack that would become explosive for my results in a commission-only setting. This hack is what I attribute to bulldozing my way to the number one spot on the earnings leaderboard and obliterating company records for most earned, ever.

    Related: There Is No Success Without Risk

    The power of tenacity

    Sales isn’t about tossing a product pitch and relying on luck for the customer to buy. Great salespeople, those who truly excel, understand that closing a sale requires a unique blend of tenacity, finesse and strategic thinking. However, being a great salesperson doesn’t automatically make you a great closer. You see, great closers are great salespeople, but great salespeople aren’t always great closers. Disruptive salespeople that close require a distinct mindset — the mindset of closing every single customer you interact with. Sounds unrealistic? Perhaps. But it is this very mindset that distinguishes the exceptional from the average.

    Understandably, you won’t close every deal — that’s an unrealistic expectation. But the power of a “close every customer” mindset gives you the potential to drive your performance to incredible heights. This mindset can transform one or two extra sales a week that you otherwise thought were impossible into doubling your sales results for the month.

    But the question remains — how do you cultivate this mindset? It comes down to having an unwavering belief in your abilities, and a relentless commitment to fighting for each sale as though it’s your last — no half-hearted attempts, no surrendering when obstacles arise. This isn’t about inflated self-confidence; it’s about resilience, tenacity, the unyielding will to succeed and the use of one simple hack.

    Related: Why Tenacity Is More Important Than Brilliance for Entrepreneurial Success

    The ultimate productivity hack for closers

    This hack isn’t some underground, newly developed technology or a secret script that has been hidden from the public in the underground tombs of Egypt. No, it’s much more simplistic but even more powerful. It’s what I call “success amnesia.”

    Success amnesia is the practice of mentally resetting after each victory. It’s about leaving past accomplishments behind and approaching each new opportunity as if you are under severe financial strain, regardless of the reality. It’s convincing yourself that you’re going into your next appointment as if you’re three months behind on rent and you can’t even afford a pint of milk for your two-year-old toddler — no matter if you’ve just earned a $20,000 commission on your previous appointment four hours ago.

    Related: 9 Successful Business Leaders Reveal Their Top Tips for Selling Anything to Anyone

    Success amnesia is an intentional forgetting of past wins, a deliberate reset that enables you to bring relentless determination to each new opportunity. It is this success amnesia that fuels your hunger to succeed, drives your tenacity, and compels you to disrupt the status quo in every interaction.

    If you take away one thing from my story, let it be this: Success amnesia can single-handedly alter your sales DNA, fortifying its strands with resilience and a hunger for disruption. It was this single mindset shift that cleared the path for me to generate $5.7 million in personal sales in my first year in the solar industry, or $320,000 in commission, despite having no prior experience in the industry. With the right mindset, relentless determination and the powerful tool of success amnesia, you can easily catapult yourself to the forefront of your industry and instill this practice into your sales force.

    Kash Hasworth

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  • We Are Only Using 33% of Our Marketing Tech — And Draining Our ROI. Here's What Needs to Change. | Entrepreneur

    We Are Only Using 33% of Our Marketing Tech — And Draining Our ROI. Here's What Needs to Change. | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    In the aftermath of the pandemic, many companies purchased new software – a lot of it. Then came the downturn, and those same companies were forced to examine how much – or how little – value this new tech was driving. This has been especially true for marketing teams, which have been prime targets for shiny object syndrome amidst a rapidly growing array of martech solutions and the pressure to do more with less. With most organizations only using 33% of their martech tools’ capabilities, it’s perhaps not surprising that as budgets shrink, teams underleveraging their martech tools have been forced to shelve them.

    But the problem may not have been that the technology “just didn’t work.” Software on its own is not a silver bullet. And, while vendors have a role to play in ensuring customers can implement their tools, the actual value is the change in how your organization operates *enabled by the software*. You only get this value after the software gets implemented and you change how you do things, including team coordination and buy-in, planning and execution.

    Simply put, every tech purchase also needs to come with a mindset shift about the required change in operations — starting with the end goal and working backward toward the implementation. This approach requires addressing important but often difficult questions, such as how your team is set up, how responsibilities will change and how you will adapt and improve the way you work together.

    Related: Invest in These 5 Technologies to Redefine Your Marketing Efforts

    Great software with built-in workflows that act as guardrails for your team makes these changes much easier. But you will only get there if you answer these kinds of questions:

    Question 1: What are your business goals — and how can marketing tech help you get there?

    Rather than taking a bottom-up approach to buying martech, marketing teams should instead start with their business goals — and how software can help them get there. The key is to be explicit about expected outcomes. At a minimum, you’ll need to align the head of marketing and the technology lead for marketing on the fundamental goals of the project — and clear expectations on roles and timelines.

    But what if this doesn’t happen? I’ve seen this situation play out more than once in the world of digital marketing. The recent push for decoupling front-end and back-end website architecture has led to the introduction of tools like Front-End Sites. At face value, these tools make some pretty enticing promises: more modern and elevated web experiences for users and more seamless integration within a brand’s digital ecosystem on the back end. Where things go off the rails is when the technology investment and approach aren’t tied back to the marketing team, their needs, expectations and goals. The technology is complex, and it often comes with drawbacks for marketers – like more challenging publishing workflows – which they usually aren’t aware of upfront. These issues can be overcome as long as the teams involved go in with the recognition that the tools don’t always offer a quick fix.

    The outcome is never just the purchase of the software itself; it’s about having a plan for internal transformation to get the desired results, whether your intended outcome is optimized workflows, increased efficiency or better customer experiences.

    Question 2: What do we need to change about how we operate to get the outcome we want?

    Here’s an uncomfortable but important truth: Without making internal changes geared toward extracting value, software is essentially useless. Martech buyers (and sellers) need to be willing to get honest about the internal changes required to achieve the outcomes they are after.

    Collaboration between marketing and IT is key. Developers know that any complex software is going to be complicated to deploy, challenging to integrate and won’t always work. Marketers must be aware of this, too – and it must be communicated and planned for. Ideally, you’ll want to pull together a team including marketing, UX design, development and IT to collaborate on an approach that enables the organization to make iterative improvements on a phased timeline.

    It may also mean taking an incremental approach to building and rolling out features. Our digital agency, TNB, did this with their clients to help them deliver better and more valuable online experiences. They undertook an extensive roll-out process to test Front-End Sites as they implemented it, ensuring they made it easy for clients to use the tool right away. And because of that upfront investment, their team has been able to shift budgets away from back-end work and over to front-end work, where it will have the most significant impact on users.

    All software implementations should be treated this way – with a cross-functional team and an agile approach that enables everyone involved to get what they need – if not immediately, then at least with a measure of transparency. If your organization isn’t set up to approach implementation this way, then aspects of how you communicate and collaborate may need to be addressed.

    Related: How Automation Can Change the Face of Your Martech Stack

    Question 3: How do we determine we’re on track to getting long-term value?

    Smart tech buyers know that the job doesn’t end when the tech is acquired. I’ve lost count of how many projects I’ve seen fail altogether when teams didn’t plan how to track value over the long term.

    So, how do you know the tech is working for you? This is where having clarity on the desired outcome becomes critically important. To measure this, establish baseline metrics according to your specific value drivers (marketing teams will likely want to tie them to customer experience outcomes). Then, track your progress over time. You don’t necessarily need to hit all of your goals overnight. Start with rolling out basic functionalities that will improve the customer experience and then build over time. This will instill confidence in the team and show that progress — and results – are possible.

    Ultimately, successfully buying and implementing martech is more about taking an intentional approach than it is about technical specifications. The tech that empowers business transformation can change people’s job descriptions, organizational structure and processes — in a good way. But getting there requires patience and a concerted effort.

    When you do all three of these things and you align all stakeholders (including finance, procurement and even the CEO), you will be amazed how much easier operating can become. These simple but sometimes hard early conversations so often make the difference between the success and failure of technology investments.

    Zack Rosen

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  • To Maximize Your Profits This Black Friday, You Need to Collect More Than Your Customers Dollars | Entrepreneur

    To Maximize Your Profits This Black Friday, You Need to Collect More Than Your Customers Dollars | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Black Friday — the day after Thanksgiving — is the biggest shopping day of the year and the start of the holiday season, which, for many retailers, can contribute as much as 30% of their annual sales. So it’s a big day. But if you think Black Friday is just about the holiday season, you’re wrong.

    Of course, the day is important for the holidays. Black Friday was the biggest day for in-store shopping in the U.S. in 2022, reaching 72.9 million consumers, up almost 15% year over year. But it’s just as important for after the holidays. That’s because Black Friday isn’t just about sales. It’s really about data.

    My smartest clients know this. And they make it a priority to leverage Black Friday as a way to collect as much information as they can from everyone entering their store. Why? Because the data they collect will help drive sales long after the holidays have ended.

    Retailers of all sizes face a significant drop-off in sales after the holidays, and it’s always a struggle to generate demand. But it doesn’t have to be that way. The data you collect from your Black Friday traffic can boost your sales in those slow winter months. So, how to do this? You need a reason for the customer to stay engaged.

    For starters, collect an email at checkout. Asking for a “like” or a positive online review is great, but you’re not collecting data that way. Asking for an email is a way for you to control the engagement. It’s true that sometimes some won’t want to share, and that’s fine, too, because people have to opt in if you’re going to market to them online. So encourage them. Say that you’ll add them to your special “VIP Customer Club,” which will make them eligible to receive future discounts and special promotions. Some retailers ask if a customer would like a receipt emailed, and that’s another good way to collect that information.

    Another strategy is to push your visitors to your website. Hopefully, you’re selling your products not just in your store but also via an ecommerce platform. If you don’t, you really should because my most successful clients sell products through multiple channels. On Black Friday, offer a special promotion for customers who choose to purchase products online or special products that are only offered online. When someone buys from you online, you’re collecting their data, and you can give them the option to have their email added to your VIP club at checkout. At the very least, you’ll be collecting physical shipping/ordering data that can be used for future postcard mailings.

    Consider a raffle. It’s simple and old school, but it’s an effective way to collect an email address or physical mailing address. Have them drop a business card or fill out a form to get a product or service for free and, of course, ask on that form for permission to add to your VIP Club. Your cost of giving away free stuff is minimal compared to the benefit of using that data for future marketing.

    Many of my retail clients do events. These are the businesses that generally offer experiences or lifestyle products, and they enjoy doing in-store events to further educate their community. The pandemic taught us that doing these events online can also work. Schedule an event for January or February and promote it in your store. People would need to sign up for this event, so have an online or physical way to do this in order to capture their information.

    Partner with others. All of the above activities can be replicated by friends of yours on the Main Street. By offering co-promotions with some of them, you can pool your resources and share your data. This way, you can potentially double the amount of information you’re collecting on Black Friday.

    Finally, use a loyalty program. The suggestions I’ve made above would incur minimal cost. But if you want to step things up – and pay more — you can subscribe to retail loyalty platforms like Clutch, Recharge, Smile.io and others. These platforms — which are mainly designed for mobile use — allow your customers to accumulate points, get access to gift cards, belong to a recurring program, join certain membership tiers and take advantage of VIP “exclusive” offerings. They provide real-time data analysis of program usage, can be customized, and also integrate with other software.

    These are all great ways to collect the data you need. But the most important thing is what to do with the data once you have it. And for this, you need a good customer relationship management (CRM) program.

    A CRM is merely a database that will store whatever information you obtain about anyone who’s walked into your store. Some loyalty platforms and most point-of-sale systems either offer this capability or can be integrated with a standalone CRM system, and there are many platforms available at an affordable price. You will use this database to build demographics and sales history about your customers.

    When a CRM system is used the right way, no customer — or prospective customer — falls through the cracks. Using the data you’ve collected on Black Friday and throughout the holiday season, they should be receiving regular (opt-in) emails or postcards from you about product offerings, events or other activities at your store. You can leverage the data to target specific customers based on what they’ve purchased from you. You can use the data to create lookalike campaigns on both Facebook and Google, where you can target online ads directly to them. As you build this database, you’ll build a community of customers that you can go back to year after year.

    And that’s the most important thing about Black Friday. It’s not just one day of sales. It’s also a day to collect data for future sales. If you approach it that way, you’ll see a revenue increase that can extend far beyond the holiday season.

    Gene Marks

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  • Why Shrinkflation Is A Great Pricing Strategy In Inflationary Times | Entrepreneur

    Why Shrinkflation Is A Great Pricing Strategy In Inflationary Times | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Want to make more money this year? Or at least protect your profits? Consider shrinkflation. You may have heard of this — or maybe not. But shrinkflation is a powerful pricing strategy that you should consider in these times of higher costs that are cutting into your margins.

    So, what is shrinkflation? It’s when you charge the same price for something that you’ve always charged, but this time, you deliver just a little bit less. If that sounds unethical or immoral, it’s not. In fact, it’s being practiced all over the place by some of the world’s largest brands.

    Take Walmart, for example. Their Great Value Paper Towels used to be 168 sheets per roll, but now it’s 120 sheets. Did the price change? Nope. Charmin toilet paper used to be 650 sheets per roll and now only contains half of that — at the same price. A bag of Doritos used to be 9.75 ounces, and now it’s 9.25 ounces, which means you’re getting fewer chips at no discount. Hefty’s Mega Pak went from 90 to 80 bags without changing the price. Burger King includes fewer nuggets, and Domino’s is delivering fewer chicken wings, but all at the same price (who’s getting chicken wings from Domino’s anyway? It’s a pizza chain!)

    Gene Marks

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  • When Investing, Should You Go For Percentage or Dollar Returns? | Entrepreneur

    When Investing, Should You Go For Percentage or Dollar Returns? | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    I was recently speaking with an entrepreneur who’d passed on an investment because it would not need yield the company at least a 10x growth opportunity. I told him those returns might be reasonable when investing in small businesses (under $5 million) but that he should consider lowering his ROI threshold when investing in larger ones.

    My logic was twofold: First, bigger companies are harder to grow as quickly as small ones, so the growth percentages will be lower; and second, there’s the potential to make substantially more money on a bigger company investment, even if the ROI was only 3x to 5x.

    Here’s how to know when it’s better to focus on percentage returns vs. dollar returns when assessing your investment opportunities.

    George Deeb

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  • How I Built A Multi-6 Figure Coaching Business And Achieved 3-Day Work Weeks | Entrepreneur

    How I Built A Multi-6 Figure Coaching Business And Achieved 3-Day Work Weeks | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Eight years ago, I started my Rise Lean from scratch. I had a mission: Helping people end a toxic relationship with food while losing weight effortlessly, using Asian wisdom. As a new online entrepreneur, I encountered a series of challenges in turning will into success.

    First, I’ve never developed a coaching program. I’ve also never sold a thing. And considering the U.S. weight loss industry was incredibly saturated, I felt anonymous and unseen.

    Today, my company magnetizes a consistent stream of ideal clients from around the world. And with its client acquisition, delivery and support systems built for scale, it’s seeing 20-40% growth month after month while working three days a week. This article will cover five major components that have shaped my company’s core foundation and readiness to beautifully thrive and scale.

    Related: 7 Innovative Online Business Ideas for Digital Entrepreneurship

    Create a remarkable and irresistible product

    People want massive, real and lasting results that come quickly with the least amount of effort needed. If your product can bring them that experience, it’s remarkable and irresistible. When I first started, I immediately wanted my program to be that way. To ensure that, I interviewed 155 prospects to get a deep understanding of what they truly needed, took on 30 clients for a low price and built the first version of my company’s formula, informed by their experience, challenges and needs.

    Throughout the past eight years, I’ve upgraded the course 12 times. Today, I still ask myself these two questions periodically:

    • Can it be better?
    • Can it be easier for my clients?

    Turning your product into a masterpiece should be an unstoppable obsession. When you have a remarkable and irresistible product, it becomes a source of unshakable faith for you — even as you navigate market volatility.

    1. Make competition irrelevant with an irreplaceable brand

    I don’t prefer easy games, that’s why I headed into the weight loss industry despite the crazy competition within. What made me confident? A unique and strong brand identity, which is highly recognizable by my audience. If you can make your target audience fall in love with you, competition is irrelevant and you are irreplaceable. Whether you can have a successful brand identity depends on your ability to really understand your clients, articulate the problem they are facing and tell your story compellingly.

    Who are they? Can you describe their traits, stories, life stages, emotional states, pain points, dreams, fears and inner needs? If it’s challenging for you at this moment, do what I did. Collect customer feedback to get a better understanding of their needs.

    What exactly is the problem you solve? Be very specific and clear about it. On my website, I describe every main symptom and problem my target audience experience. I echo the thoughts in their head to become more relatable and drive a stronger connection.

    What’s your story? What makes you different and amazing? And what makes you irreplaceable for your audience?

    During the first year of running my business, I intentionally hid my story of losing the 50 pounds I’d gained in the U.S. organically, using the wisdom and knowledge I gained from my travels in China. Huge mistake.

    My personal, uniquely Asian experience is my golden competitive advantage. Because of it, I’m able to have a distinctive message in a highly crowded market based on real-life experience. As soon as I loudly shared my story in my own voice, my company’s growth spiked. Your story, when articulated well, can make your competition irrelevant. Check-in with yourself: Are you telling your story without holding back?

    Remember, you don’t need to attract everyone — only the selected group of people you desire to work with. And your brand identity, when optimized, magnetizes only the right people and makes you irreplaceable to them.

    Related: An Entrepreneur’s Guide to Startup Pricing Strategies

    2. Price for success — for both you and your clients

    The best pricing model is the one which sets both your clients and your business for success. There are two questions you need to ask yourself when thinking about your pricing:

    • Question #1. What number reflects the level of commitment, services and outcomes from you?

    For instance, if you run a life coaching program priced at $150, I’d imagine this is primarily an information product with minimal personalized coaching. On the other hand, if your offer is helping established businesses get into a seven-figure revenue through 1:1 coaching with a top expert, that implies a multiple five-figure price tag.

    As always, your pricing sends the signal to your target client regarding what to expect, the level of services and the outcome delivered.

    • Question #2. What number will inspire your clients to be serious about your offer and co-creating the desired outcome with you?

    I priced the earliest version of my program at $500 during a test run. I quickly encountered one problem: A significant number of my clients weren’t showing up for the calls or doing their homework. After talking to them, I found they weren’t prioritizing the program.

    I immediately realized two things: First, I’d attracted the wrong buyers who weren’t committed to the work. Second, my price didn’t convey the magnitude of the outcome and commitment from my end. Charging a price that attracted the wrong buyers meant low engagement, morale and client success rate. If I let that cycle continue, it’d kill my business and drain my passion for it.

    Right now, I run my program with a pricing model that ensures I work with the most committed, responsible and coachable clients worldwide. They are incredibly enthusiastic about achieving the milestones set in the course. They are natural action-takers, accomplished in their professions and roles, humble and excited in front of the opportunities to have better life experiences. I never worry if they attend the coaching calls and do their homework. And deep, colorful and high-energy conversations keep flourishing during our live sessions, elevating the coaching experience to new dimensions.

    This dynamic drives me to be the best version of myself whenever I do my work. I wake up in the morning looking forward to our calls. And I never ever feel tired. When combined, all these pieces maximize my clients’ success rate and happiness throughout the experience, which tirelessly fuels the success of my business and my sense of fulfillment as an entrepreneur.

    In this experience, my clients and I contribute to each other’s victories.

    #4. Build a multi-channel scaling ecosystem

    Relying on just one funnel was the biggest risk I’ve taken in my business. Before 2020, I was only running Facebook ads which worked wonderfully for me. I was blinded by the ease and thought I’d never need a Plan B.

    Then, Facebook implemented an upgrade. The next thing I knew? The same funnel no longer worked. Lead flow immediately stopped and it was scary because I thought I was going to lose my business.

    My company bounced back in a few months and ever since I’ve started building a multi-channel lead generation ecosystem that generates multiple streams of leads in parallel. Here are the main components of this system I’ve built:

    How much does it cost to be seen (without clicking through) by 10 million ideal clients through ads? Easily $1 million. However, you don’t need to spend $1 million to reach millions of clients. Getting onto five to ten major podcasts in your niche can help you accomplish that, likely with greater results because a 30-minute podcast interview can gain you a lot more trust than an ad.

    They are similar to podcast interviews, in a different format.

    Investing in SEO is worthwhile for those who desire to build an epic brand that stands out from a whole crowd of competitors. It can take eight to 12 months to take off. However, once established, it brings a consistent stream of ready clients throughout the year.

    My TikTok channel is where I talk to my audience “face-to-face.” It’s not a lead generation platform yet. However, it serves as a powerful source of confirmation for people — building trust before we talk.

    Meanwhile, don’t forget your email list. People sign up for my email list through various sources, and I use it to build relationships and trust with my audience.

    Building a multi-channel scaling ecosystem indeed requires a lot of work. But if you start today and be consistent, in three years, you’ll have a client-attraction system as powerful as a tank.

    Related: Does Richard Branson’s 3-Day Workweek Actually Work?

    Lastly, how did I achieve a three-day workweek lifestyle?

    It’s because of all of these components above. Thanks to the multi-channel scaling system, I now have a semi-automated lead-generation system that brings me a steady flow of interested people. Having established organic funnels saves me from spending hours chasing after people.

    Meanwhile, my brand message ensures that those who approach me are the type of clients you want to work with. It means I’m not wasting time speaking to irrelevant people. With a strong conversion rate, I can sustain this revenue without running ads. Because of that, I’m not spending hours and days creating, maintaining, refreshing ads and analyzing ad-related data. And since my program features an online group coaching experience, I can deliver well to my current clients without significantly expanding my coaching hours.

    At this moment, most of my working hours during the week are split among doing group coaching calls (two hours a week), talking to potential clients (six to eight hours a week), and generating new content — whether it’s new TikTok videos or a product interview (around five hours a week). Every week, I write one to two email newsletters, with each taking between 15 minutes to an hour, thanks to how much I understand my audience. I use automation as much as possible for the remaining miscellaneous work. I also outsource work whenever needed.

    All the groundwork, from product development to funnel building, was developed over eight years since the launch of my business. And I sure have had many 80-hour work weeks in the first couple of years. But thankfully, the majority of the work I did was intended to generate evergreen, compounding results. All of that has allowed me to enjoy my business along with many other things in life — from motherhood to traveling and equestrian.

    Leslie Chen

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  • What Sustainability Does To Your Bottom Line — Entrepreneur Magazine | Entrepreneur

    What Sustainability Does To Your Bottom Line — Entrepreneur Magazine | Entrepreneur

    Sustainability initiatives are good practice and something we urgently need to save our planet. But are they also good marketing? Yes.

    I write a newsletter called Ariyh, short for Academic Research In Your Hands (find it at ariyh.com), where I summarize the latest scientific research in marketing and sales. And I see a consistent theme: When brands have well-executed sustainability initiatives, they increase nearly every metric a business needs to succeed. It’s even true with little-known startups and small-to-medium businesses.

    Thomas McKinlay

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  • How to Profit from Acquiring Distressed Businesses | Entrepreneur

    How to Profit from Acquiring Distressed Businesses | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Since the start of 2023, leading companies, including Vice Media, Virgin Orbit, David’s Bridal, Bed Bath and Beyond and Jenny Craig, have filed for bankruptcy. More broadly, underlying economic conditions have resulted in a flurry of business failures, with a 77% increase in commercial Chapter 11 bankruptcy filings for the first quarter of 2023. Business failures across all industries have created uncertainty for investors but great opportunities for competitors and buyers.

    Far from causing concern, entrepreneurs should look at this as an opportunity and follow self-made billionaire Warren Buffet’s advice to “buy when there’s blood in the streets.” Distressed companies can be acquired at a fraction of the multiples that healthy companies trade at and therefore offer entrepreneurs a unique and cost-efficient way to grow their businesses.

    As CEO of a Nasdaq company, I grew by acquiring great distressed companies. The valuations were phenomenal – and each came with its unique challenges and opportunities. With a backdrop of more than 20 acquisitions, here are some lessons I learned during the journey to grow my business.

    Before pursuing a distressed company, a few basic questions must be answered to ensure that the transaction makes sense.

    First, is the valuation low enough and the potential upside high enough to compensate you for the risk that comes with acquiring a distressed company? The most attractive element of buying distressed companies is their price, and without a low enough valuation, the business shouldn’t be considered for purchase.

    Related: How to Value a Business: 9 Ways to Calculate a Business’s Worth

    Second, does this business fall within your area of expertise? Buyers who don’t understand the business fundamentals of a market sector should be very cautious. Consider that the leadership of the distressed business presumably had more than a cursory understanding of their industry and opportunities but still failed to succeed.

    Finally, what do you bring to the table that will enable you to succeed in turning around the business? You will need resources the owner didn’t have or a plan they never created or couldn’t execute to turn the business around and increase profits. Generally, the ability to turn a business around will rest less upon identifying great ideas you could bring to a company and more upon addressing the problems that caused the company’s current state of distress. You must act like a doctor and identify the cause of your patient’s symptoms before administering the cure. Generally speaking, the quality of your post-transaction team will drive your success, your ability to use technology and automation, and your ability to stabilize your customer base and exceed their expectations going forward.

    Related: Purchasing a Business Doesn’t Have to Be Difficult. Here’s Your Comprehensive Guide.

    Finding a business in financial distress that matches your area of expertise usually occurs through a broker specializing in distressed company transactions. However, finding failing companies through word of mouth, searching business information sites, or poring through online bankruptcy court filings in your area is also possible.

    After deciding to pursue the distressed business, it makes sense to ensure you have a team that can succeed. You should consider the benefit of hiring a lawyer specializing in distressed business transactions. If the business is pursuing bankruptcy protection, you can start with a clean slate once the company is purchased and the deal finalized, but to get there, you’ll need to navigate a complex transaction with many moving parts successfully. Creditors’ concerns will need to be addressed, bankruptcy and auction time frames must be followed, and the judge overseeing the case will need to hear and approve your proposal.

    Regardless of how you acquire a distressed business — through bankruptcy or a non-bankruptcy ‘firesale’ — performing thorough due diligence is critical. This will include talking with the company’s employees (so far as is legally allowed) to gain a better sense of the internal state of the company. It isn’t uncommon for employees within financially strained companies to begin looking for work elsewhere as they become anxious about the company’s future. However, you’ll need to find a way to retain the very best workers and align their interests with yours.

    Related: Four Survival Principles For Start-Up Entrepreneurs Amid Crisis

    If the business is service-based, then speaking with customers (as permitted) and understanding their perspectives and intentions will be especially important. Customers generally can’t terminate contracts with companies during a bankruptcy proceeding, and the problems this can create for your potential customers as they wait throughout the bankruptcy process can destroy the business’s credibility with them. Customers who lose their goodwill toward the business may decide against the continued use of your service once the company resumes business under your leadership.

    Acquiring distressed complementary companies can be a cost-efficient way to grow your customer base and revenues. However, buying distressed businesses comes with unique risks and rewards, so it’s important that you carefully assess the opportunities and assemble the right team to ensure success.

    Stephen Snyder

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