Double Your Business In 2022 Using The Kaizen Formula

This thing has an asymmetric output and it really does change the game. Hey guys, Sabri Subhi here and in today's video, I'm going to be talking about achieving hyper growth through the Kaizen method. So as we kind of get towards close to wrapping up the year, this is the time when I know I certainly like to look at my goals. The look at all the things that I wrote down at the start of the year and start to scrutinize and take stock of, like how did I go? These are all the things that I wanted to achieve at the start of the year, you know, how did I course correct throughout the year and did I achieve the target that I wrote down? And most people, you know, hopefully you guys that are watching are going through that same kind of process at the moment. Before you look ahead for next year, he is taking stock at where you are. And one of the things that I want to discuss with you was what I have found that really enables me to be able to hit my targets consistently. And that's by. When you sit down, right, and you think about whatever it is that you want to achieve, whether it's in your business or your personal life or whatever it might be, most people just think of that big win. They want to achieve that big overarching home run. If they just connect the ball and have it shoot out of the stadium, all will be well. But what I have found to be much more consistent and much more effective at achieving, achieving, you know, hyper growth in business, when you're doing your goal setting for business is the Kaizen method. And that's a Japanese method that is really about constant, relentless and never ending improvement. Let me break you down like the way that I think about it. So I like to look at whatever that big goal is that I'm trying to achieve and I try to back into that target. So you imagine that you've already arrived there, then you back into what would need to happen. And in order for you to hit that, rather than just thinking I really want to hit that and coming up with a loose plan on how to do that. Now when most people look at that and they think about breaking down, okay, what is it going to take for me to hit this goal, they think of the big win. So in business, let's just say it's a lead gen business, they think I need to double my conversion rates in order to be able to do this because they want to double the amount of leads. They have an X amount of customers and revenue that they want to Hit, they'll be like, okay, I'm at a million, I want to get to 2 million. So in order to get to 2 million, I needed double my traffic or I need to double my conversions a lot of the time. That is a very hard task to do. And there's so many things that make up that task and it's not really real, it's not really visceral because you know, if you just wanted to double your traffic, then you'd say, okay, cool, all you need to do is double your spend. But then inevitably something goes wrong, like you double your spend and then in, in doing that, you know, your cost per lead increases by 30 or 40% and then you haven't hit your target. So the way that I have found that is the far less sexy way. But it is the road that you must travel. Well, not that you must travel, but you should travel if you want to consistently get those wins and you want to stack hundreds and hundreds of small wins that make up a monster, monster win. And the reason that I think that this method is far more effective than just thinking that big home run that you need to hit is because those small little iterations and tests that you can run to hit that big goal and breaking it down from its consistent parts, it's, you know, if one thing goes wrong, there's so many other things that can go right that will overcome that one thing that goes bad. But if you've just got one big thing that you want to hit and something goes wrong, then you don't get to the promised land. For instance, let's just look through the lens that I was just discussing around. You know, you're a lead in the lead gen business and you wanted to double the amount of sales that you make. So instead of saying we need to double our traffic or we need double our leads, you know, you can break those down into smaller bite size wins that you can relentlessly optimize through hyper optimization of your funnel to achieve that target. To make it not so esoteric and make it more real, let's just say that your goal is to double your leads. You know, your goal is to double your sales. And the way that you're thinking of doing that is to double your leads. Well, instead, what it might be, and a much more achievable target might be is I am going to double my opt in rate conversion rate. But instead of doubling it, I'm going to actually notch that down a bit, right? Because most people just go, I'm going to double it. But what we're going to do is we're going to say, okay, I'm going to increase the opt in conversion rate by 30% and then I'm going to improve the conversion rate from opt in to someone that actually books in a strategy session by 25% for instance. And then I'm going to improve the show up rate on those booked strategy sessions by 15% and then I'm going to increase my close rate by just 5%. Right? If you look at the full throughput of that optimization in taking a lens of full funnel optimization, rather than just some big sexy number like I'm going to double my leads, the overall throughput is far more substantial. But not only that, is that, you know, it's a lot more in your control because you know, improving opt in rate conversion rates by 30%, you know, you can do that with a headline, you can do that with some bullets or changing the CTA on the opt in page and improving show up rates and you know, full funnel conversions. These are all things that you can kind of sit away and toil at and just relentlessly stack those little wins and test. And that has a much more profound impact on the business because you're increasing the overall throughput and not just the front end conversion, but it's also a lot more achievable and a lot more measurable that can be applied in an E commerce setting as well. Right? Someone might be like, okay, look, I've got this store, we're doing a million dollars and I want to get to 2 million, I want to get to 3 million. Alright, well this is how much traffic we got. We just need to double or triple our traffic, right? A lot of the times yes, that can be done. However, just looking at that one variable, there's so much things that can go on in the traffic world, right? Just like we've seen with Facebook over the last year and just like are going to continue to see on these traffic channels, we're going to see changes, we're going to see CPMs increases and we're going to see policies and inventories and auctions change. So if you just got started and say, okay, I'm going to double my traffic and that's going to mean that I'm going to be spared X amount of money and then you know, there's an inevitable shit fire and shit storm that happens throughout the year and then you know, your CPMs go up and then realistically you haven't doubled your traffic because the cost of traffic does increase and you didn't budget that and then you wrap up the end of the year maybe in the same position or maybe 10% in a better position than you were when you started. And then you're like oh shit, right? And then it's all gone to hell in a handbasket. So instead you might be look at, I want to double my stores revenue. What are the constituents parts that I can break that down to and I can use the Kaizen method and I can just constantly, ruthlessly and relentlessly optimize my entire store to have me reach that target. So for instance, one of the things that you can look at is yes, the conversion rate of your website. You can look at increasing the traffic to your website and then you can look at how do I optimize and increase my average order value on the first buying checkout process and then how do I after that, how do I increase the repeat purchase rate within that 12 month period? And again, again optimizing at each little step of the funnel to have you achieve that. You might look at your abandonment car and might go my abandonment car is at 50%. How do I get that down lower? And constantly break those that goal of doubling your revenue into all the little parts that you would need to do. And then you take it one step further and you plan out when you are going to be running tests and trying to optimize that. And that brings us to the next point which is testing. So if you were to do nothing else over the next coming year as you sit down and you write your goals, I would tell you to test more things. It's so surprising, you know that businesses don't run a lot of tests. And I'm a firm believer that the businesses that are testing the most things at the highest speed are the ones that win because they're the ones that are testing multiple different hypothesis to try and get to a better outcome than they're in right now. And that means that they fail more and that means that they learn more and they're improving at a much faster rate than any of their competitors or at a much faster rate than the overall market. And that results in them winning. But what I see far too often is that people wanting to do the shiny sexy stuff, which I talk about a lot on this channel, because I just see the market just in this crazy craze of just following the gloss and the shine and the novel things. They don't sit down and have a relentless love affair with their craft and continuous and never ending improvement. And that's the thing that really pays the most dividends. What I mean specifically by that is that they will go and just put some new shiny funnel out, you know, they at most will test one or two things and then they're on to the creating an entire brand new funnel rather than ruthlessly hyper optimizing their existing funnel or their existing E commerce store or their existing team and incentive structures. But that's where the biggest wins ahead. So you know, the things that you really want to think about is like how can I test more stuff? Testing, you know, headlines are the number one things that I have found that you know, because all tests that you run they have a cost profile and a risk profile and I found that headlines, they really have the lowest cost profile and have give a really disproportionate output when you find a winner. So if you've got a landing page, if you've got product pages, if you've got long form strategy session pages or opt in pages, the thing that I'll tell you to do is to run split tests on your headlines. Not a day goes by where I don't have several split tests running. And I am constantly and ruthlessly testing all the different areas of my funnel, all the different areas of my offers and pricing and everything that we do as a business. Because those little wins, they stack up where you can be in a completely different place in a year, in two year, in three years time. So wherever at in your business, I would encourage you to look at the areas that you can test and the quickest and the easy ways, you know, headlines on your opt in pages or on your the pages that you ask for money. If you do nothing more, just run some headline split tests then offer. So how you present your offer, that is what's included, what are the pricings, what are the payment plans on those things, that's the next things that it is that you want to test. And then also testing then and after then is looking at whatever it is that you're doing in terms of converting a stranger into a customer. If that's done over the telephone, split test your sales pitch, listen to calls, find out what it is, little tweaks that you can say at what point in the calls that give you a disproportionate output. If it's E commerce, you know, test the product descriptions, write more product more words in your product descriptions, test that over just using the lame stock standard stuff that your supplier would give you and just have really ingrained a culture within your company of testing, you're going to Fail a lot. And when you fail, those things do cost money. Because if you're running a split test, 50, 50, 50 is going to the new variant, 50 is going to the control and the variant doesn't do well. Well, that has cost you money. However, when you find a winner at just one step of the funnel, it puts you in a different place. And then when you start testing all of the different elements throughout the this is where we stack the wins. And it just, it keeps on, just multiplies. You get force multipliers in your funnels. If you increase your conversion rate by 30% on your opt in page and then you double your conversion rate from opt in to strategy session. This thing has an asymmetric output and it really does change the game. And it's the same thing with E commerce. If you find a way to just increase your average order value by 30%, that means that you can spend 30% more than you could previously to acquire a customer. That might unlock an extra 100 buyers a day for you. And then if you look at that over the course of the year, it's ridiculous, you know, what the outcomes of just ruthlessly testing those things. So in a world where everyone wants to hit the ball out the park the first time, instead be disciplined, you know, have a relentless love affair with your craft and with testing things to get to a more favorable outcome than you are in right now. And that goes by just every week, every month, you know, every quarter and every year is just ruthlessly optimizing your current systems, the current ways that you do things. And don't ever be satisfied of how something is performing right now. And there are always little micro optimizations that you can make. And what I have found that this is a great way to overcome and create an antidote for shiny object syndrome. Because most people have Shiny object syndrome on the wrong thing. So they've got shiny object syndrome on their actual business and on the business opportunity and what it is that they could be selling. They're constantly chopping and changing from ideas or they're, you know, they're in Amazon FBA one year and then they're in crypto and consulting and E Comm and they're doing all these different things. That's for the new new time entreprene. But even with seasoned entrepreneurs, I see it all the time like they fall out of love with their business and they start to look at other businesses that are more sexy or more shiny and they take their focus away from their business. Now, you know, shiny object syndrome and getting a dopamine rush is the natural state of humans. It just is, right? You live in a world where you're constantly chasing dopamine rushes and instead of looking at those big things that are going to have catastrophic consequences on your business, like shiny object syndrome, about other business opportunities, instead understand that it's going to be something that you're going to have to battle with and apply that to testing things within your business. So you'll still get a dopamine rush. When you test five different headlines and you find one that is out beating the control you know by 60%, you'll be like, oh, like this is awesome. And fall in love with that. And let that be the shiny object syndrome of constantly wanting to improve your system and split testing different things. And it allows you to get that short term gratification. But when you stack those wins continuously for days and weeks and months and quarters and years over a long, extended period of time, it is impossible for the person that isn't doing those things to compete with you. Because they are never, ever going to reach that state of performance within your funnel. Because you have just been like sitting there like a Shaolin monk sharpening the samurai sword by the river for years and years and years. And it's not just on one element, it's on the full funnel. And that's just in customer acquisition. The same methodology applies for your team on incentive structures, on culture, on everything that you do, on delighting your customers, on your service delivery. And these are all things that can be optimized, give you those short term wins, give you a dopamine rush, but ultimately put the future much more in your hands and in the control of what it is that you can do. So as you sit down and you plan for the year ahead and you write down your goals and you think about how you went last year and what's going to be different this year. The big change that I urge you to make is instead of looking at those big home run hits that you need to hit, take those home runs, break them down, plan out the tests that you would need to conduct in order to really hit that big goal after you've broken it down into several different chunks. I hope you enjoyed this video. Hey guys, if you're enjoying these videos, please like subscribe and hit the bell button as we're dropping a video like this every other day on YouTube. And if you've got any questions, just leave a comment below with heysubrey. And I will do my best to get to.