A Major Reason Why So Many Cash Strapped Small Business Owners Constantly Struggle!Part Two

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A Major Reason Why So Many Cash Strapped Small Business Owners Constantly Struggle!Part Two

So after reading part one of this ongoing series, (entrepreneur) is it starting to become a little more obvious, “why” so many extremely dedicated small business  owners,and or service providers constantly struggle?

In spite of the fact, they apply proven customer service principles to their business,(as best and often as they can.)

And they have a relatively solid marketing plan etc.(For the most part!)

And they’re extremely dedicated, and they provide a valuable service to their clientele.

Their main problem is, they’re not utilizing the right cash flow business model to their businesses bottom line, that’s why they constantly struggle to keep their heads above water and make ends meet.

And simply by applying this one relatively simple, proven tweak, their businesses or services could go, (and probably) will go from barely breaking  even, to actually consistently earning a measurable gross front or back end profit!Let’s have a look at an instance or two….

So What’s The Real Reason Why So Many Extremely Dedicated Small Business Owners And Or Service Providers Constantly Struggle?

Ladies & gentlemen, remember in part one, you discovered one of the main reasons “why” your all too typical Mom & Pop sized landscaper, struggles to really earn a consistent front end profit?

It’s primarily because, based on the extremely front end loaded business model they’re currently using, the vast majority of their gross income, has to go directly to attempting to cover all of their ongoing overhead cost, which (of course) leaves virtually little or nothing left, in terms of producing any spendable or bankable gross profits.

Because, (unfortunately), when their constantly having to pay outrageously expensive retail rates, to advertise in popular local newspaper or business publications, ongoing weekly or bi-weekly employee wages,(and that doesn’t necessarily include any or all company sponsored benefits etc.) Presuming there are any!

It also includes new or used truck lease payments, various forms of Insurance,office leases, full or part time bookkeepers, licensing fees, gas to travel back and forth to each new customer location,state of the art equipment,workers compensation Insurance premiums etc.

Savvy Entrepreneurs Make Darn Sure They Have The Right Business Model For Their Particular Situation!

And by the time all that, and a whole lot more (of your typical ongoing expenses) are deducted from the front end of their cash flow funnel, there usually isn’t much left on the other end, for them to live any type of  life of leisure!(Don’t you agree?)

That’s why it’s so critical, both they and you,develop some type of predictable back end component, (or components) to their business and or service.

Because practically overnight, they reverse their profit to gross expenses ratio, from the 80/20 front end loaded model, that practically buries them!

Over to the 80/20 back end based cash flow model, where now 80% of their cash flow is gross profit, and the remaining 20% is gross expenses!(Now that’s more like it!)

Effective Lead Generation Is Like The Tiny Seed That Ultimately Produces The Mighty Acorn Tree!

So just to really get your creative marketing engine revving in the right direction.Take  look at one of the most highly profitable back end based business models, and see “how” many of the potentially profitable marketing lessons can and do apply to your current situation.

Entrepreneur, are you currently familiar with the, (for lack of a better description), the Travel Incentive Certificate business? You know, it’s where these incredibly profitable regional, (and or national) distribution companies, sell these “travel voucher” type of vacation certificates to local vendors, of all sizes.

And the vendors (small business ) owners, and or service providers, in turn (either) resell or give them to their current, future or past customer/clients, as free incentive bonus gifts, in exchange for upselling to more expensive products or services.

Your Small Business And Or Service Definitely Has Access To More than enough Profitable Assets And Or Resources To Be Successful!

Or for their customers providing referrals and or bank account filling testimonials etc. And typically these semi time sensitive hotel vouchers, entitle the owners of them, to stay in (at least) four star rated hotels, throughout the entire United states, and they typically allow for three days and two nights.

And if they’re not redeemed, usually within one year of being issued,(or less) they typically expire worthless.

And believe it or not, (even though) these regional or national distribution companies that sell them,(or in some extremely rare cases) actually give them away as free bonus gifts to their extremely big corporate clients.

Even though they often sell them at an extremely attractive discounts, in order to induce your typical Mom & Pop small business owners, and or service providers to purchase them, they still earn an ever so slight gross profit on the front end of their sales funnel.

Once Extremely Savvy Marketers Understand How To Consistently Combine Effective Lead Generation Strategies With An Extremely Lucrative Back End Sales Funnel!

 (They Have Hit The Proverbial Mother Lode!)

Case in point: Even though these national distributors earn an ever so slight gross profit, by annually selling a gazillion of these semi sensitive ” hotel travel vouchers” to various Mom & Pop small business owners and or service providers etc.

Entrepreneur, once you really take the time to put a pencil, to all of their extremely clever, and well thought out and calculated, long term marketing/promotional strategies etc.

You will quickly discover the true, (and extremely profitable) methods to their madness. Because, (on average) for every 1,000 consumers, that redeem those certificates at one of the nationally designated four star hotels.

A staggering 62% of them, will (either) purchase additional air fair travel accommodations through one of the regional/ national distributors joint venture (JV) and or cross promotional partners.

Or they will decide to upgrade to a more expensive room/suite, (at a four star rated hotel mind you), or they will decide to purchase additional days at the hotel!

All of which adds some serious back end generated bank, to the national distributors -already impressive) bank accounts!

And the best part is entrepreneur, 75 – 85% of this additional back end gross profit, comes from customers/consumers, that have already been paid for on the front end of their sales funnel! Which means it’s all practically gravy for them!

So hopefully, now you can “see”, and are truly starting to appreciate, “how” and why, so many cash starved small business owners, and or service providers, are constantly struggling, (and eventually go broke.)

Whenever they (or you) base (a staggering) 80% or more of their overall gross income generation, on the front end component of their businesses only!

(Extremely important note: Ladies& gentlemen, if after reading and carefully digesting, this rather simplistic, two part series.And it finally makes sense to you.

And you definitely want and or need expert help, initially setting up your first few, test back end components, to your business and or service.

My current, one on one consulting rates, start at just $250 dollars per hour.

And you can purchase three hours at once, and save 20%. ($250 PH x 3 hours x.20% savings = $600 dollars paid in advance, plus you automatically receive, one free bonus half hour session!)

If doing so definitely makes sense,just reach out,via my contact page, and write “Help setting up the back end”, in the subject line.

And lets start a serious dialogue,(either by phone and or skype), to help your business and or service move forward, asap!)

Hopefully, you can now see “why” that’s such an extremely critical marketing error, correct? Great! See you in part three, where (entrepreneur) we’re really gonna dive deep! See you there!Now as is customary during this part of our show.

Please share your extremely valuable comments (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!

As always, if you got any value out of this post, please Google Plus or tweet this.Thanks!

And be sure you grab your explosive free 22 step small business marketing idea kit series, because it will help you increase your profits by as much as 25% in the next 90 days or less.

And help you master your effective communication in marketing skills.(No matter what your particular niche market is.)It’s a $97 dollar value and it’s free!