How to Scale Your Startup

Get clients fast without a huge cash reserve

Image by Austin Distel on Unsplash

According to the Bureau of Labor Statistics, (BLS) as reported by Fundera, if you’re a startup, there’s a 20% chance that this time next year, your business will fail. To make matters worse, when we look into the crystal ball, the future doesn’t get much brighter: BLS’ data shows a 30% chance of failure after the second year in business, and by the end of year five, close to half of startups nationwide will have closed their doors.

This begs the question, “Why do startups fail?”

The answer is as simple as it is sobering: they run out of cash. Talk about a gut-punch. Trust me, I know how it feels, I’ve been there. When I owned my first business, I remember checking the bank account around the holidays and seeing less than $200. I felt sick to my stomach immediately. I had rent, a loan to pay back, and three full-time employees to take care of. I can only describe that sick feeling in my stomach as a rat eating away at me from the inside.

I don’t want this to happen to you. If you’re the entrepreneurial type who was brave enough to bet on yourself and start your own business, then you deserve to not just survive but thrive. At least that’s what I believe. This is why I want to share with you something I have learned — and had success with — after rubbing shoulders with countless business and copywriting coaches over the years so you can scale your startup, and fast.

With what I’m about to share, please, by all means, “Bruce Lee” the crap out of it. I did the same in my experience with it. For those who are unfamiliar with “Bruce Lee-ing” the crap out of something, this is how:

• Discard what you find useless.
• Keep what you find helpful.
• Add what is uniquely your own.

One great thing about this scaling system is you don’t need any of the following:

Cash, Email list, Instagram, Facebook, Twitter, Snapchat, Clubhouse, Lead generating PDFs, webinars, or e-books, Website, Sales funnel, Podcast, Testimonials, Huge following, YouTube, Logo, Incorporation, Credentials.

While all of the above are phenomenal tools that have proved to be effective strategies for startups to scale, three things are true about them:

1. To get the most out of them, you’ll need cash.
2. These are excuses most startups make to procrastinate getting paid.
3. You can use the money made from the system I’m about to share with you to invest in them later.

Enough foreplay, let’s get into it. The 5-step system to scale your startup is:

1. Identification
2. Investigation
3. Qualification
4. Monetization
5. Replication

Identification

The controlling idea of the first step is to build a list identifying the people with money who have a problem your startup can solve. Simple enough, right? I knew you’d agree, and here are three sources to pull from when building your list:

Client Sources

1. Previous clients: those who have done business with your startup in the past are the most likely to do so again. Why? Because buyers buy. Do not overlook these folks, because they are without a doubt your best source for new business.
2. Current clients: these people are paying your startup as you read this. Current clients are great candidates for up-sells, upcoming promotions and back-end offers. Remember, buyers buy!
3. Warm contacts: simply put, these are people who know you. They’re going to be the most difficult to convert, but you have a distinct advantage when trying to convert them: they know you. People do business with people they know.

Now that you know your client sources, you can begin building your list.

“Is there a number I should shoot for when building my list?”

Actually, yes. 250 names is a good place to start.

“But I don’t know 250 people?!”

First of all, yes you do. Second of all, I am the most introverted person you will ever meet, and my phone has over 700 contacts — if I can compile a list of 250 names, anyone can. Whenever you get stuck looking for people who know you, then the obvious solution(s) is to check:

• Facebook friends
• Email lists
• Twitter and Instagram followers who you regularly interact with

Conversion Conversations

Once you’ve got your list of 250 names, then we can approach them in one of three ways:

1. “May I ask a favor?”
2. “How’s it going?”
3. “Can I get your opinion on something?”

“May I ask a favor?”

The point: They might know someone.

The script: “I have an opening for a client who could use some help with [INSERT YOUR PRODUCT/SERVICE]. You know a lot of people, and I respect you. Who might be helped by this?”

Client: They give you a referral, (if they don’t, now they know who to refer to you in the future).

What’s next: “Great! Could you arrange an introduction? I’ll send you an email you can forward them.”

“How’s it going?”

The point: Checking in with a current client to see if they want more

The script: “Is that solution for your ___ problem still working for you? Have you noticed [INSERT CLIENT’S DESIRED OUTCOME]?”

Client: “Well, yea, I mean it’s working okay, but things could be better.”*

*this is a complaint, and complaints are just poorly formed requests.

What’s next: “I might be able to help, but we’d need to talk first. No charge. You want to talk for thirty minutes now, or set something up in the next couple of days?”

“Can I get your opinion?”

The point: Give away a free “how-to” report or “consumer awareness guide” in your industry or field, (example: 3-Marketing Mistakes Most Gym Owners Make).

The script: “I just wrote a free report* called ___. Would you look it over and tell me what you think? I really respect your opinion.”

Client: “Sure!”

What’s next:” I’ll send it over and then we could meet and you could give me your feedback.”

*solve an immediate problem immediately.

Identification Action Steps

1. Compile your list of 250.
2. Choose your first approach.
3. Write and rehearse your script, (and for God’s sake, don’t read it when you’re talking with your client sources).

Investigation

Once you’ve identified your client sources, now it is time to do some digging. It is your job to be vigilant in your process, and step two of this system will:

• Amplify the pains and desires of your clients.
• Clarify their outcomes and results.
• Kill their objections so they’re ready to buy.
• Set your buying criteria.
• Boost your confidence, (this is important for any startup).

After you’ve been introduced to a potential client, now is the time to invite them into a Value Conversation.

Value Conversation

The point: Give them a free 30–90 minute coaching or consulting call. You are sifting and sorting out most likely buyers on your list.

“Thirty-ninety minutes?! Really?!”

Yes, the connection is more important than the content. The good news is that, in my experience, the Value Conversation has never gone past one hour. The bad news is, almost all of the Value Conversations I’ve had last one hour. It’s important for you to let your client be completely heard. It’s hard to be completely heard in a shorter conversation.

The script: “Because we’re friends…I’m building up a track record…I’m doing a certain amount of pro-bono work each month…I’d love to offer you a free 30–90 minute coaching call, does that sound good?”

They say: some variation of yes, (who says “no” to free?)

What’s next: If you knock the cover off the ball in your free offer, what you may find is hiring you will be their idea. As the kids say, that’s “easy money.”

Investigation Action Steps

1. Determine what your free offer is.
2. Write and rehearse your scripts.
3. Start contacting your list.*

*Pro-tip: When contacting my list, (something I do every day) I use a 5–3–1 approach. Five phone calls. Three emails. One hand-written letter. Phone calls and hand-written letters go a long way. Why? Because nobody does it. If you want to be the startup standout, then pick up the phone and grab a pen.

Qualification

Whoever said, “For startups, any paying client is a good one.” has a knuckle-sandwich coming from yours truly. That’s not only terrible advice, it’s dangerous. If a paying client ends up being a thorn in your startup’s side, it will cost you a great deal in the long run as you try — and fail — to cater to their every need and complaint.

That mini-rant actually serves as a nice segue into the controlling idea of Qualification: prospects have to qualify to “get in”.

The script: “I only work with people who…This really only works for people who…Here are three criteria that must be true for this to work…”

The client usually nods their head and smiles.

What’s next: “Does this make sense to you?…Do you think this sounds like a good fit?…Do you have any questions?”

Qualification Action Steps

1. Write your qualification scripts.
2. Rehearse them.
3. Continue contacting your list.

Monetization

You don’t have to be a business tycoon to surmise this is the step where the client buys. The beautiful thing is, if you’ve nailed the previous three-steps, they usually ask.

Do not, I repeat, do not answer the “how much does it cost to buy” question until you’ve made it clear “what the cost of not buying” is. Here’s an example of how you can do just that:

• You: “What is the monthly revenue of your current marketing strategy?”
• Client: “$5,000.00 monthly.”
• You: “Okay. What for you on this project would be a home run in terms of revenue? I need to know that number.”
• Client: “$15,000.00 per month!”
• You: “Okay, so the gap from where you are today and where you want to be is $10,000.00 per month. Which means you’re paying a cost of $10,000.00 every month you don’t solve this problem.”

This is not manipulation. This is persuasion. As a respectable startup, you are helping them make a decision that is in their best interest. Once the client knows the cost of not buying, they’re much more likely to take action and give you their money.

“But what if I’m not a consultant?”

Great question. Based on how powerful the psychology of the customer knowing what it costs to not buy, I would strongly urge you to “dollarize” on the customer’s failure to solve their problem. Human beings are risk averse. Meaning, they’re more upset about losing $100 than gaining $100.

Monetization Action Steps

1. Write out your Monetization script.
2. Rehearse it.
3. Continue contacting your list.

Replication

This is the simplest and easiest of the steps. You simply repeat Identification-Monetization as needed. I’m willing to bet you won’t make it through twenty-five contacts before you get a client. I made it through four before one of my contacts referred me to someone whom I sent a $10,000.00 proposal soon after.

Replication Action Steps

1. Utilize the 5–3–1 approach daily.
2. Keep adding names to your list.
3. Repeat steps 1–2.

Conclusion

It’s difficult for today’s startups to survive. Much less, thrive. But it doesn’t have to be. Try and implement the five-steps, “Bruce Lee” them over time and if you do, then you will:

• Scale your startup.
• Have less stress.
• Have more freedom.

You took a chance on yourself and your product, service, or idea. You don’t deserve to become another statistical failure. You deserve to scale your startup and not just survive but thrive.