FIR 111: 1 Simple Hack to Increase Revenue !!!

Financial Investing Radio

What is the one simple hack to increase my revenue? If you could apply a 3-step framework to overcome the main reason for business failure, would you?

Hey, welcome, everybody. This is Grant Larsen. Thank you for joining. So okay, been looking at this problem around revenue, right. And as a small to medium business owner, this is constantly a challenge. In fact, I was reading recently, some common reasons why small to medium businesses fail. In fact, this was something I saw on investopedia. And of course, was looking at other places as well, I came back with these four reasons, right? These are the most common reasons, one, financing challenges or hurdles to inadequate management, three, ineffective business planning and four marketing mishaps. So let's talk about the first one financing challenges or hurdles. Right. So some of the challenges, of course, running out of money. That's always a big challenge. In fact, the first startup company I got involved with, that was clearly the problem.

You know, not only were we working, not smart, but we of course, didn't even think through what sort of runway we had on the finances. And so that clearly means that on a day to day basis, we have to be tracking, what's the revenue stream looking like, and how are we producing this. In fact, one of the things about this first one, right, the financing hurdles, it's what's strikes me is that if we address it, it actually gives us more runway to then address those other three, right management challenges and effective planning or, or even bad marketing decisions that we're making. So one of the things that I noticed here from the Small Business Administration, some results that they had, they said, 20% of small businesses fail in the first year 50%, go belly up. After five years, and for only 33% make it to 10 years, those are amazing odds. So this first, this first challenge here around financing hurdles, really stands out as the critical one to address. So I started to look at it. So what are some of the issues in here, and one of those is around missing the mark on how we price our products. And often we get stuck down into these pricing wars. That gets into how do we how do we define products? What's a funding model for those and so forth? Well, what led me to this next piece I'm going to go over is after working with some small to medium businesses, I started to hear this common theme about what do my business numbers mean? What do they What do they translate into?

Where should I be investing my time and energy as well as my scarce resource? So I noticed over time, that simple framework started to appear out of this, right. And the thing about frameworks is, they help us to focus on the things that are most important. And then help us to de emphasize the things that aren't important. And so this framework has appeared over some period of time working with organizations doing this. So I wanted to introduce this framework. Now a framework generally has a series of steps. And so in this framework, there's three steps. I call this framework, the PIE framework, spelled p, e, maybe there's another way to spell pi. That's the way I know how to spell pie, the pie framework P-I-E. Alright. And again, this came out of addressing the question, How do I solve these funding hurdle challenges, right? And then in order to do that, what do I have available to me as a small to medium business owner that I can apply into this framework to help me resolve it? So the PIE framework came out of this out of these groups, right, that I was working with, and here's what P means ready? P means problem and information preparation, like what the heck is that? Right? So for problem and information preparation, one common thing that I've noticed is that some organizations will not literally write down what are the serious problems We're facing How would I prioritize those? Right?

What, what are the most important problems we're facing? And then what's the information that I have available to me to help me serve as insights? Tell me solve that problem. that's step number one of the framework sounds simple, right? Sometimes life is just the simple things. The second step is the I pee. Okay, so the ideals with intelligence augmentation. Now, this is a course, where artificial intelligence comes in. Now, I intentionally use the term intelligence augmentation, because I personally think that's where AI is today. I think it's at the point where we apply it intelligently. And so the insights that come to us that have that have examined our our information and the problems that we're looking to solve, that serves as input then to the great intelligence you already have, and so P problem and information prep, step two, intelligence augmentation, right, and then step three, is executing on guidance. So that's the E, execute on guidance. Now you think, why would I have that in there, I find that interesting that over a period of time, a lot of organizations won't execute on the guidance. So you're been given this guidance from AI, and they won't do the execution on it. Here's the key about AI. First of all, the reason why we use the term intelligence augmentation is we're not expecting that we apply it blindly. So we do want to obviously, apply it intelligently, within the context of business constraints that we have that that is critical. On the other hand, though, while that's being said, I noticed that some organizations will do nothing, right, they won't make any adjustments.

And hence, I put E as the third step to the framework. So if you want to have a simple hack for improving your revenue, you apply the PIE framework PIE, identify your problems and the information preparation that's needed to address those, run those in through artificial intelligence to then give insights that then augment your own intelligence and then make a plan to execute. On the guidance, three simple steps. I have found that when we've applied these in organizations, and they've executed on it, they'll discover things that they didn't even know that they didn't know.

And that permits them to grow with the right kinds of customers without taking on new resources, which is a big challenge, obviously, for small to medium business owners. So there were four common reasons why SMBs failed, right? That it started with one financing hurdles to inadequate management, three, ineffective business planning and four marketing mishaps. So today, I've talked about the PIE framework to address this first one, right, which is around financing hurdles. The other three items of course need to be addressed. But with continued funding through AI inspired guidance, it's been my experience that it gives a runway right gives us a much longer runway to address those remaining three items, but we'll discuss those at another time. For now let's focus on overcoming the financing hurdles through the pie framework. Hey, thanks for joining and until next time, get some PIE.

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