THE RULE OF THREE

The Rule Of Three

As this blog is designed to support success in all aspects of life, from your career to your business to your personal life and ambitions, the posts form a cross section of coaching advice that can only be described as essential life skills. All the information comes from my business, training and coaching expertise developed over the last 30years, and forms the basis for this project.

With regard to people considering their own business I tend to work with clients on a mind, body and spirit basis which means;

Mind -the skills and mental strength of the leader
Body -the skills and mindset of the staff
Spirit -the the values and direction of the business.

You could summarise this into strengths and weaknesses.

With regard to the structure of the business from a financial point of view, it is always a good start when you asses an enterprises value or potential for survival with the rule of three. 

As I have mentioned, the individual who invests their time, which is after all money into an idea can do so as a hobby or a serious enterprise. The latter is generally the area I tend to work in as success has a tangible quality of return to it. Individuals need to up skill themselves with some business savvy, however the reason 95% of business fail in the first five years is mostly simple errors and a lack of foresight, it's called mismanagement. On Dragons Den one of the key aspects of investment is not just the product or service, it's the person behind the project. Primarily they look for; 
Boffins to help
Scalable products
Financial sense
Genuinely entrepreneurial minds 
Track record

Once you have decided on your product or service, you then need to determine a route to Market, and the cost of that route, it's called the cost of client acquisition closely followed by the cost of client maintenance.

When I apply the rule of three to assess a businesses viability the basic break down is:
30% sales and marketing 
30% product and fixed costs
30% profit 
10% for the pot.

There are of course variations to this model based on when in the lifespan of a business the equation is used, but this is as good a formula to start with to see how healthy the business is. Try it on yours.

Successful entrepreneurs know the pivotal value of sales and marketing, and potentially at least 60 % of their time should be used in this area. Sadly most spend virtually nothing and wonder why there are no customers.

In this venture, 35% of the membership is sales and marketing given to the individuals doing the course. 

Now the project is crystallised in it's core team, aims, goals, product and financial returns, it is time to focus on bringing in clients who will benefit.

At this point we need to focus on the salient points of the membership (product, our unique selling points USP's).

Long before this point we have looked at the competition in order to price accordingly, either undercutting or providing more value. In the case of this project, it is unique in what it offers for the level of cost, as well as the returns...vary rarely do products offer returns, but this is a holistic strategy for success so there are three aspects..

Empowerment- confidence, business savvy & personal skills
Financial rewards- returns for effort
Success strategies- proven methods of achieving goals

So anyone considering NLP for example, will learn all the skills for well under the price of any of the competition through the membership. Business skills are the same as well hypnosis and personal development. The structure of the product allows development in many areas, but this can also mean a general attitude to the market, making it non specific, which can be a danger. 

The potential Market for our membership and course is everyone, the product itself is success based skills, all of them.