How to Start and Sustain a Successful Business | Racheal Cook on Smart Passive Income

Check out SPI Episode Page & Show Notes

Key Takeaways

  • Always make time for important things like friends, family, and health:
    • “If you don’t make time for your life, if you don’t make time for your friends and family, if you don’t make time for your health and wellness, it will not be there when you actually want it.” – Racheal Cook
  • Once you get your first client, it becomes much easier to get the next one:
    • “I know that when a person unlocks their first client, the rest just start to come” –Pat Flynn
  • As an entrepreneur, understand that only about 20% of the potential clients you talk to will convert into customers:
    • “If you are talking to the right type of person, you should be able to get 20 percent of the people you talk to become a paying client.” – Racheal Cook
      • If you want more clients, you need to talk to more people:
  • “Your ability to get more yeses is correlated to how many people you talk to because when you put in the reps, you get better.”Racheal Cook
  • If hiring someone saves you 5 hours a week, that’s 5 hours you could be using to go to speaking events, create content, or something else that’s higher value. Or just taking a nap so you don’t burn out.
    • “It’s giving me back a couple hours a week to go work out or to go on a walk or to not lose my mind as a brand new mom and someone starting a business at the same time.” – Racheal Cook

Intro

  • Racheal Cook is an award-winning business strategist, host of the Promote Yourself to CEO podcast, and best-selling author, Racheal Cook is on a mission to end entrepreneurial poverty for women. 
  • Host: Pat Flynn (@PatFlynn)

About Racheal Cook

  • Both of Racheal’s parents were entrepreneurs and her first company was a tutoring business
  • After getting her MBA, she jumped into consulting
    • However, since she was working 80-hour weeks she was constantly burned out and ended up getting sick. She went on sick leave and during that time, decided to start her own business.
      • For the past 12 years, she has been working with owner-operated businesses, many of them with women business owners, and helping them with their marketing and operations.
  • “I’m really passionate about helping more women, especially to create the change we want to see in the world, but we can only do it if we’re thinking with a long-term view. We can’t constantly be in this hustle mindset where we’re grinding it out at the expense of our health and our wellbeing and our overall life.” – Racheal Cook

Designing Your Ideal Life

  • Always make time for important things like friends, family, and health:
    • “If you don’t make time for your life, if you don’t make time for your friends and family, if you don’t make time for your health and wellness, it will not be there when you actually want it.” – Racheal Cook
  • Valuable questions you should ask yourself:
    • Who do you want to be spending time with?
    • What kind of friendships do you want in your life?
    • How much quality time do you want to spend with your parents and kids?
      • Answer those questions and then build a business to support that

Advice For Starting Your Business

  • As an entrepreneur take your ideal salary and multiple it by 2-3x because you have to include the cost of employees, expenses, and taxes
  • Maybe first-time entrepreneurs have a goal of making a million dollars a year, but going from 0 to $1M is a huge leap. Instead, focus first on making $100,000 a year. Once you’re there, focus on getting to $250k, then to $500k, and so on.
  • You don’t need to spend $10,000 on a website. You can build one yourself quite easily with a service like Squarespace.

Why You Want To Focus On Clients

  • You don’t need a million followers or subscribers to have a business that replaces your 9-5 income. What you need to focus on is getting your first 10 clients.
    • Once you get your first client, it becomes much easier to get the next one:
      • “I know that when a person unlocks their first client, the rest just start to come” –Pat Flynn
        • The best way to learn about client problems isn’t through worksheets and research, rather it’s through talking to real people
  • As an entrepreneur, understand that only about 20% of the potential clients you talk to will convert into customers:
    • “If you are talking to the right type of person, you should be able to get 20 percent of the people you talk to become a paying client.” – Racheal Cook
      • If you want more clients, you need to talk to more people:
        • “Your ability to get more yeses is correlated to how many people you talk to because when you put in the reps, you get better.”
  • Making a sale should come naturally if you do it right:
    • “The sale is just a natural part of the conversation, it’s just a conclusion to the work that you could do together.” – Pat Flynn

Raising Prices & Expanding The Team

  • If you find yourself swapped with clients, it may be time to raise your prices or hire people to help you with your operation
    • Many entrepreneurs like to wear multiple hats and be involved in all parts of the business, but eventually, you need to delegate tasks if you want to keep growing:
      • “A smart entrepreneur will let go of things that they shouldn’t be continuing to do, and that has to happen” – Pat Flynn
  • If hiring someone saves you 5 hours a week, that’s 5 hours you could be using to go to speaking events, create content, or something else that’s higher value. Or just taking a nap so you don’t burn out.
    • “It’s giving me back a couple hours a week to go work out or to go on a walk or to not lose my mind as a brand new mom and someone starting a business at the same time.” – Racheal Cook
  • You don’t need to hire a full-time employee out of the gate. You can hire a virtual assistant to help out 2-5 hours a week and pay them $20 an hour.
  • “Hiring others is definitely a high leverage opportunity, a big lever to pull that will help you grow your business to the next level for sure.” – Pat Flynn

Additional Notes

  • One of the main reasons women become entrepreneurs is because they want to have more control over their time
Smart Passive Income with Pat Flynn : , , ,
Notes By Alex Wiec

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