The third step in turning your business around is to consider selling part of the business to a competitor or joint venturing with another business that is looking to expand into your area of expertise or your location.
If you have part of your business that is no longer a core focus of your operations, consider selling part or all of that devision, license it to somebody else for an up-front fee plus an ongoing royalty, or find a joint venture partner to run it for you for a split of the profits.
Another idea is that if you have a lower priced product or service, you could become the front-end provider for another business that offers higher ticket products and services.
For example, if you sell a piece of software that retails for $197, you could partner with other software providers that offer cloud-based services that sell for $97 – $997 per month or more.
If you offer lawn mowing services, you could partner with people who install swimming pools, home renovations, granny flat installers, landscape design services, patios, garages, roofing and guttering, fencing, driveway installations, repairs or resealing, and all kinds of other services for home owners.
In other words, you can become the front end for other people’s high-ticket back-ends.
Or if you sell higher priced products or services, you can become the back-end for people who offer lower priced products and services, and give them a referral fee for every job they send you.
For example, if you sell any of the services above, you could work with people who sell inexpensive services such as lawn mowing, driveway cleaning, gutter cleaning, internal house cleaning, house washing, personal home services and the like, and give those people a referral fee for each job they generate for you.
3a. Consider sharing your unconverted leads to your competitors in exchange for a percentage of the profits they generate if they sell their product to those people.
3b. Consider buying or acquiring unconverted leads from your competitors in exchange for sharing a percentage of the profits you generate from your sales to them.
ACTION STEP: Spend some time this week developing a backend for your low ticket offers, or a front-end offer that leads to your high ticket products and services.
INVITATION: Each month we hold a limited number of Free Business Strategy Sessions designed to help business owners with everything from turning their enterprises around and back to sustainable profitability, to leveraging the assets of fast growing companies so they can grow even more quickly.
Would you like to join us?
If you’d like to schedule one of these Free and obligation free one-on-one sessions, let us know by email at email@example.com or call 1300740066 and we’ll set things up for you.
About The Author: James Huy Vuong is a CPA, Registered Tax Agent, Business Broker, Certified Exit Planner and the owner of Your Accounting Partners, an Associate of Negotia Group. Partnering with businesses from start to scale thru to sale.
Your Accounting Partners