When it comes to gyms, people often assume they’re all in the same business: helping people get fit.

But the reality is, they are two different businesses. It is like comparing being able to google tax laws and having a lawyer when going to court. Which would most likely give you a better outcome?

The biggest difference between big gyms and smaller spaces like microgyms or personal training studios isn’t just their size, it’s their business model, the science and their purpose.

Big gyms focus on marketing and sales. Microgyms focus on science and results. While both are labeled as “fitness,” they operate in completely different industries.

Big Gyms: Selling Access and Scale

Big gyms are built for scalability. Their business model is simple and effective: sell access to as many people as possible. This approach is easy to market, easy to sell, and highly scalable, which is why franchises thrive in this space. There is a massive demand and pain on the market for fitness and this model scratches the hope and dreams of people to think they are solving their problem.

The catch? Big gyms don’t need to invest in creating results for their members, just mimic the attempt of doing it. Memberships are sold based on the idea that clients will get motivated by the “new thing” and then if they figure it out themselves it really does not matter. For some (about 4%), that’s fine, but for most (96%), it leads to frustration and eventual drop-off.

Many franchises that attempt to copy the results-driven model and charge a higher ticket of microgyms struggle because they don’t shift their focus. They may market themselves differently, but at their core, they’re still just selling access without delivering outcomes.

Microgyms: Delivering Results Like Professionals

Most microgyms and personal training studios operate completely differently. Instead of focusing on access, they focus on the results clients achieve. Or at least they should if they want to grow.

What makes microgyms stand out is their application of science to their programs. They’re constantly evolving, using research and data to refine their methods and improve outcomes. It’s like running a lab, systems are tested, adjusted, and optimized to deliver the best possible results for clients.

In this model, the priority is to see people get meaningful progress and multiply this on future clients.

Two Completely Different Business Models

Despite both being labeled as gyms, big gyms and microgyms couldn’t be more different in how they operate:

1. Big Gym (Access-Based)
   • Business model: Built for scale, focused on volume.
   • Core offering: Access to equipment and facilities.
   • Member responsibility: Results depend entirely on the individual’s effort and knowledge.
2. Microgym (Results-Based)
   • Business model: Built to deliver consistent outcomes.
   • Core offering: Personalized coaching, accountability, and measurable progress.
   • Shared responsibility: The gym and client work together to achieve results.

Big gyms thrive on marketing and scale, while microgyms thrive on trust and results.

Microgyms as Laboratories of Progress

One of the greatest strengths of microgyms is their adaptability. They don’t rely on outdated methods or assumptions. Instead, they evolve like a lab, always refining their systems based on science and feedback.

For example:

• If new research points to better ways to build strength or reduce injury risk, microgyms adjust.
• If client feedback highlights challenges, solutions are implemented to address them.

This adaptability ensures that clients not only make progress but stay engaged and committed long-term.

Don’t Be In The Middle

I see one of the hardest places to be for a gym is to be in the middle. It is not clear if you are selling access or if you are delivering outcomes.

Offering “HIIT” or “Boxing fitness” can be great but is it clear for the customer what the difference in outcome is? Is it even clear for you?

Being in the middle is hard because you need to charge more but you have no proof to be better just because you are smaller. Clients will quickly compare you with any other gym as any other commodity in the market. If you want to be able what you are worth you need to know your position.

Positioning and Association

The difference between big gyms and microgyms goes deeper and really it would be best for both to be branded as two different things.

Why this matters is because it helps the clients to differentiate and make better informed decisions. This is where brands help to direct the client to a better option.

In my opinion there is a big need for professional microgyms to educate the audience, because nobody else will do it. It has to be as clear for a client as between choosing McDonald’s over the best Italian Restaurant in town. Right now, the big gym chains benefit from this confusion and microgyms will continue to suffer under being compared to low priced access gyms.

3 Quick Questions

1. Is your gym built to scale or to deliver measurable progress?
2. Does your gym clearly communicate its positioning?
3. What’s more important to you: more members or better outcomes?

If you’re trying to grow a business, it’s easy to get caught up in the idea that you need a big marketing budget or a fancy strategy. But some of the best growth stories don’t come from gimmicks, they come from focusing on the right things. CrossFit is a perfect example of this.

CrossFit grew from a small, niche program to a global phenomenon, not because they spent millions on ads, but because they understood what really mattered. They had a great product, focused on the people using it, and built something people wanted to be part of.

Here’s a blueprint for growth inspired by their success.

1. Start With a Product That Works

Nothing grows if your product doesn’t deliver. CrossFit took off because the workouts worked. They were simple, adaptable, and got results. It didn’t matter if you were a top-level athlete or someone who hadn’t worked out in years, there was a way to start, and there was a path to improve.

The first question to ask yourself is: Does my product or service actually solve a problem for people? If it doesn’t, growth isn’t going to happen.

2. Let Your Customers Tell the Story

CrossFit didn’t promote itself. It promoted the people doing it. Instead of focusing on the brand, they told the stories of the people who showed up every day, worked hard, and transformed their lives.

They didn’t just highlight the elite athletes. They told stories about the single mom who found time to get stronger, the retiree who wanted to stay active, and the person who went from struggling with basic movements to hitting their first pull-up.

When you focus on your customers’ success, others see themselves in those stories. They think, “If they can do it, maybe I can too.”

3. Build Something Bigger Than a Transaction

Many think growth happens if you mystically triple your sales, but real growth only comes when your customers keep coming back. They stick around because they feel connected to your product, your service, or your brand.

CrossFit didn’t grow because people wanted to work out. It grew because people felt they belonged to something bigger. Each gym became a place where members supported one another, pushed each other, and celebrated milestones together.

If you want to grow, you need to give your customers something they can connect with. It could be a community, a shared mission, or even just the sense that they’re part of a journey with you.

4. Keep It Real

CrossFit’s early content wasn’t polished or flashy. It was raw, real, and relatable. That’s what made it work. People didn’t see a corporate marketing campaign they saw other people, just like them, achieving things they didn’t think were possible.

Don’t try to be perfect. Share the real stories behind your business. Show the process, the challenges, and the wins. Authenticity isn’t a buzzword, it’s what builds trust.

5. Show the Progress, Not Just the Result

One of the smartest things CrossFit did was highlight progress. Showing someone at their peak performance is great, but it is more effective to show how they got there.

For example, they’d show someone struggling with their first day opening a gym and then succeeding months later. That journey made the results feel achievable and inspired others to start.

If you’re trying to grow your business, focus on showing the steps people take to get results with your product or service. Progress is what motivates people to believe it’s possible for them, too.

6. Make Your Customers Your Advocates

CrossFit didn’t grow because of traditional advertising. It grew because the people doing it loved it so much that they couldn’t stop talking about it. They told their friends, shared their progress, and brought others along for the ride.

If you focus on creating results and delivering value, your customers will naturally become your advocates. Word of mouth isn’t just free, it’s the most powerful form of growth you can have.

7. Growth Comes From Impact

CrossFit didn’t set out to become a global brand. It set out to make fitness measurable, repeatable and testable. Growth happened because it made a simple formula to define what fitness was. And what you measure can also be improved which then lead to results of the clients.

If you’re trying to grow, start by asking yourself this: How can I create the biggest impact for the people I’m serving? Focus on that, and growth will follow.

3 Quick Questions

What steps can you take today to build a stronger connection with your audience?

Is your product or service solving a real problem for your customers?

How can you use your customers’ stories to inspire others?

After more than 2,000 consultations, I’ve come to understand that sales is about building trust, solving problems, and ultimately, helping people. Sales is not “closing” prospects.

For a salesperson honing his craft or a business owner trying to grow, sales is a skill that can transform your career, your business, and even your relationships.

Here’s what I’ve learned that I believe will help you, no matter where you are in your sales journey.

1. People Don’t Always Know What They Need

One of the most important lessons I’ve learned is that clients don’t always know what they need, or even what they want. This is where a great salesperson becomes more than just a salesperson; they become a coach.

Henry Ford famously said, “If I had asked people what they wanted, they would have said faster horses.” People couldn’t imagine something like the car because they were focused on improving what they already knew. Similarly, Steve Jobs didn’t ask people if they wanted a computer with a screen or a mouse, he showed them what was possible.

In sales, your job is to help people see beyond their immediate perspective. Many of my clients come in thinking they need to “lose a bit of weight” or “get a little fitter,” but they don’t realize what they truly need is to transform their habits, eliminate chronic pain, and build strength that will serve them for life. They come with a problem they can identify, but it’s up to me to guide them to the solution they didn’t even know was possible.

By listening deeply and understanding what truly drives them, you can help clients get better results faster. And when they achieve outcomes they didn’t even know were possible, they’ll not only feel grateful, they’ll become your biggest advocates.

2. Sales is a Skill…You Need to Practice It!

Like playing the piano or lifting weights, sales requires consistent practice. You don’t start with the hardest tasks or the biggest deals on day one. Just like a beginner pianist starts with simple pieces or a lifter begins with lighter weights, you build your sales ability over time.

Sales has many components that require mastery:

• Understanding clients and their motivations.
• Understanding your product and how it delivers value.
• Anticipating how your product impacts more than just the immediate client. I can be downstream effects on other customers, your staff, or your business operations.

If you have a team, it’s critical to create opportunities for them to practice sales as well. Sales isn’t just for “salespeople.” It’s a transferable skill that applies across every department and industry. A great HR person, for instance, uses sales skills to connect with candidates and communicate company values. Similarly, in finance or procurement, strong sales skills can lead to better long-term outcomes for contracts, budgets, and partnerships.

The more you practice, the more leverage you create. With experience, you’ll be able to build trust faster, communicate more effectively, and deliver results with less effort. And over time, you’ll find yourself becoming a leader, someone others look up to because you’ve mastered the art of understanding and helping people.

3. Active Listening is Your Best Sales Tool

The best salespeople don’t talk the most, they listen the best. When you ask the right questions and really hear what your client is saying, you build trust and uncover the insights you need to help them.

Every consultation should be about them, not you. What are their goals? What’s holding them back? What’s their vision of success? When you listen, you show them that their needs come first, which is the foundation of any successful sale.

4. Clarity Beats Pressure Every Time

If a client doesn’t move forward, it’s often because they don’t fully understand the value or the process. A confused mind always says no.

I’ve found that breaking things down into simple, actionable steps is key. For example, in consultations, I make it crystal clear what the first 12 weeks will look like, what results they can expect, and how we’ll help them achieve those results. This removes uncertainty and gives them confidence.

5. Objections Are Opportunities

Objections aren’t the end of the conversation, they’re just the beginning of a deeper one. When someone raises an objection, they’re giving you a chance to address their concerns and provide more clarity.

For example, when a client says, “I don’t have the time,” I explore what’s really behind that. Often, it’s about priorities or feeling overwhelmed. By showing how my program fits into their life, I can help them see a solution instead of a roadblock.

6. Sales is About Long-Term Wins

Sales is about building lasting relationships and trust. Every consultation, every follow-up, and every small interaction adds up over time.

This long-term perspective applies to every industry and role. Whether you’re negotiating contracts in procurement or managing budgets in finance, the principles are the same. Great sales skills lead to solutions that benefit everyone involved, creating long-term wins for both you and your clients.

Over time, this approach compounds. As you gain trust, proof, and confidence, you’ll also gain leverage. You’ll get more deals, move them faster, inspire others, and create a ripple effect of success throughout your team or business.

My Challenge to You – THE TRICKS!

If you’re looking to improve, ask yourself:

• Are you listening more than you’re talking? – Record yourself if you are uncertain!
• Are you helping clients see what they truly need, not just what they think they want?
• Are you building long-term wins, not just short-term results? Look at your 5 last clients!

The beauty of sales is that it’s a skill anyone can learn. And when you master it, you unlock opportunities that extend far beyond the sales floor.

In many organizations, a common issue is a lack of alignment. Teams feel disconnected, staff members pull in different directions, and communication breaks down. It often feels like no one is truly on the same page. These problems aren’t just accidental, they stem from leadership. And leadership, in my experience, always comes down to values.

Leadership Starts with Daily Actions

Values aren’t just lofty words in a mission statement. They’re what leaders do every single day. Leadership is visible in the small actions: Are you approachable? Are you communicating consistently? Are you prioritizing what matters? Your habits as a leader set the tone for the entire team.

I’ve learned this the hard way. My biggest challenges as a leader have been when I failed to communicate clearly or didn’t act on issues quickly enough. These gaps sent the wrong signals to my team about what was important. Leadership trickles down, and if your actions aren’t aligned with your values, it’s impossible to expect the team to follow suit.

For larger teams, this extends to the management level. Your leadership team must not only align with the values but also live them daily. Leadership is only effective if it’s consistent across every layer of the organization.

The Vision Doesn’t Have to Be Complicated

One mistake many leaders make is overcomplicating their vision and mission. You don’t need an elaborate or abstract statement to lead effectively. Instead, focus on something clear and actionable that drives your team. A good vision gives direction, but it also needs to feel achievable.

Think of leadership like sailing across the ocean. If you’re the captain, it’s not enough to simply say, “We’re going to the other side.” Your team needs milestones: “We’ve crossed 25% of the ocean” or “We’ve passed this island, and here’s what’s next.” These progress markers give people a sense of security and purpose, showing that you’re moving forward together.

Ask What Drives Your Team

Leadership isn’t just about the vision of the organization, it’s also about understanding the motivations of each person on your team. I remember consulting with a company where I asked the management team, “Why don’t you just ask your staff what they really want in life?” They hesitated because they were scared of the answers.

But I don’t think you should fear these conversations. Asking your team what their deep goals are can uncover simple but powerful truths. Maybe someone wants to be home for dinner every night. Maybe someone dreams of traveling more or learning a new skill. Once you know these goals, you can align the company’s objectives with theirs. If there’s a mismatch, it’s better to address it early than let it fester for months or years.

When your team feels like their personal goals are connected to the organization’s vision, you create buy-in. And when you break that vision down into daily and weekly actions, you make progress tangible and motivating.

Three Questions for Reflection

1. What values are you living out daily, and how do they align with the culture you want to create?
2. When was the last time you asked your team members about their personal goals, and how are you helping them achieve those goals?
3. Does your vision feel achievable and actionable to your team? What daily or weekly milestones can you use to track progress?

I want to share a story that I heard once and can’t seem to forget. It’s about a father and his daughter at the playground. The little girl is on the swings, smiling as her dad gently pushes her higher and higher. Then, as the sun starts to set, the dad says, “We need to go home now, sweetheart.” The girl, with the innocence and charm only a child can muster, looks up and says, “Please, Daddy, one more time.”

The dad pauses for a moment and replies, “Okay, one more time.”

Nearby, another parent, visibly stressed and rushing to get home, overhears this exchange. Frustrated, they walk up to the patient father and say, “How do you have so much patience? I just get so frustrated. We’re late for dinner, and I can’t deal with all the delays.”

The father looks at them with quiet understanding and says, “Well, I would do anything to swing my oldest son one more time. But after the accident, he’s no longer with us. So, every time one of my kids asks for ‘one more time,’ I do everything I can to make it possible. I guess you grow a different kind of patience.”

This story always stops me in my tracks. Sometimes we move so fast we don’t realise how grateful we should be. Often the most precious things in life are often unmeasurable and we don’t even notice them until it is too late.

The Unmeasurable Moments

Life is full of things we can measure: time, money, deadlines, productivity. But the moments that truly matter, the ones that make life worth living, are the ones that can’t be quantified. Quality time with loved ones. The graduation of your child. The fresh air on the beach. A warm hug.

I heard Jimmy Carr say something that resonated deeply with me:
“Trade the measurable with the unmeasurable.”

It’s a simple idea but incredibly profound. Nobody lies on their deathbed wishing they’d spent more time at the office or earned a little more money. What we wish for are more moments with the people we love, more experiences that fill our hearts rather than our bank accounts.

The Balance Myth

Everyone talks about balance. But what the heck is that? I think you should not completely ignore measurable things like business goals, financial success, or daily tasks. The balance is about being in a position where you can make the choices you truly want to.

If you’re building a business, it should be something that serves you and aligns with what you love. If you hate your business, it’s important to remember that the architect of that business is you. The good news? Architects can redesign.

And don’t panic. If you realize your focus or your needs have changed, that’s okay. It’s perfectly fine to:

• Redesign the business to better fit your current goals.
• Be ready to sell it and work on making that happen
• Even close it entirely, if that’s what serves you best.

My Three Quick Questions for You

1. What measurable things in your life could you trade for the unmeasurable?
2. Are you building a life and business you truly love or are you stuck in something you’ve outgrown?
3. What’s your “one more time,” and are you making space for it?

– Rickard

Imagine you’re at a poker table playing Texas Hold’em. There are three players:

• Player 1 knows the rules, plays cautiously, folds on bad hands, and bets smartly when holding strong cards.
• Player 2 plays aggressively, bluffing occasionally but sticking to a clear strategy.
• Player 3, however, folds pocket aces (the best starting hand) and bets heavily on weak cards.

Everyone at the table is confused. Player 3’s moves seem irrational. Throwing away winning hands and wasting chips on hopeless ones. But here’s the truth: Player 3 doesn’t actually know the rules of poker. Player 3 is actually great at playing Uno but it does not help at this table. They’re not stupid, they just don’t understand how the game works.

Now, imagine the other players are speaking a language you don’t know, like Chinese. You however make a lot of words and laugh randomly. To them, your strange sounds might seem just as foolish. But the problem isn’t you, it’s that you’re trying to play without knowing the rules or the language.

This is exactly how most people approach taxes and financial systems. They’re trying to navigate a high-stakes game without understanding the rules, leading to poor decisions and lost opportunities. Let’s change that.

The Players in the Tax Game

The tax system is much like the poker table. To succeed, you must understand the players:

1. The Government
   • Role: Rule setter and enforcer.
   • Goal: Collect revenue while incentivizing behaviors that benefit the economy and society.
2. Businesses and Individuals (You!)
   • Role: Active participants.
   • Goal: Maximize value (profits, income, and savings) while minimizing costs (taxes, compliance efforts).
3. Stakeholders (Society, Competitors, Investors, etc.)
   • Role: Observers and influencers.
   • Goal: Shape the environment and influence how rules evolve.

The Rules of the Game

Taxes and financial regulations are the language of this game. If you don’t understand them, it’s like being at the poker table without knowing the difference between a full house and a bluff. Key rules to keep in mind:

1. Governments create rules to incentivize behavior.
   Tax breaks for green energy investments or small businesses are designed to encourage actions that align with public policy goals.
2. The game is always changing.
   Tax laws evolve with political, social, and economic shifts. Staying current is critical.
3. Success requires strategy.
   Winning players don’t just comply, they optimize, using the rules to their advantage.

Why People Lose the Tax Game

Many people are like Player 3 in poker not because they’re incapable but because they don’t understand the rules. Here’s how this plays out:

1. Folding on Winning Hands:
   Missing out on deductions, credits, or incentives they qualify for, leaving money on the table.
2. Betting on Weak Cards:
   Making financial decisions without considering tax implications, like selling investments at the wrong time or ignoring tax-efficient savings options.
3. Not Knowing When to Call:
   Failing to act strategically when opportunities arise, like deferring income to a lower-tax year or reinvesting profits into tax-advantaged projects.

Designing Your Winning Strategy

To win the tax game it’s about playing smarter within them, not bending them. Here’s how to design a strategy that works:

Step 1: Educate Yourself

The first step to mastering the game is understanding the rules. The fastest way to do this is by finding a mentor, someone who knows the system and can guide you. Ask your network for recommendations before turning to a random online search. While self-education is an option, it’s often inconsistent and time-consuming, and you risk focusing on things that aren’t relevant to your situation.

Step 2: Make a Game Plan

Work with your mentor to create a customized game plan. This should include:

• Identifying key opportunities in your tax situation.
• Setting goals for minimizing liabilities and maximizing benefits.
• Preparing for future changes in the rules.

Step 3: Implement Your Strategy

Once your plan is set, take action. Execute the steps outlined by your mentor and track your progress. Regularly review and adjust as needed to stay aligned with your goals.

Bonus Step: Help Someone Else

If you find success, extend a hand to another entrepreneur or individual. Teach them how to play the game better. The more players who understand the rules and play strategically, the more rewarding and fun the game becomes for everyone.

Just like in poker, ignoring the rules of taxes and financial systems leads to predictable consequences:

1. Penalties and Fines:
   Missteps can result in audits, back taxes, and hefty penalties that drain your resources.
2. Missed Opportunities:
   Failing to use tax-efficient strategies leaves money on the table that could have been reinvested into your life or business.
3. Increased Stress:
   Operating without a strategy is exhausting and unsustainable. Knowledge and planning bring clarity and control.

When you educate yourself, create a plan, and implement it strategically, you stop being a passive participant and start winning.

3 Quick Questions to Get Started:

1. Are you fully aware of the tax rules that apply to your situation?
2. Do you have a mentor or advisor helping you navigate the system?
3. What’s one step you can take today to optimize your strategy like reviewing deductions or asking for professional advice?

One thing I think is important is that the tax game isn’t about outsmarting others.

It’s about playing a better game with the tools it gives you.

Master the rules, play with purpose, and design your winning strategy.

And like Simon Sinek put it, this is not a single game you play once but an infinite game and if we know we will play this a long time I think we want to have fun doing it.

Rickard

Ps. Full disclaimer. I am by no means a tax guru of any sort and don’t claim to know how to play this game the best way at all. If we were playing Poker I am still at the level of playing Uno.

Do you find yourself constantly jumping from one project to another, always chasing the latest idea or trend, yet never feeling truly satisfied? If so, you’re not alone. This perpetual pursuit can be a sign of not closing off projects or unresolved conflicts in your life.

The Cycle of Unfinished Business

Many people identify as either project starters or closers. Starters are full of enthusiasm at the beginning but often struggle to see things through to the end. While it’s great to have the spark of initiation, without the skill of closing, distractions accumulate, and no project ever truly launches.

Why Learning to Close Matters

I believe that anyone who is a starter needs to learn the skill of closing. By facing the tough stuff and practicing the art of completion, you not only finish more projects but also gain a deeper sense of satisfaction. Closing off projects frees up mental space and energy, allowing you to focus more effectively on new endeavors. (You have probably heard about the 3 min rule? If something takes less than 3 min, instead of planning it, just do it.)

My Own Struggle with Unfinished Projects

I know this from personal experience. I’ve bought courses, subscribed to services, and initiated projects that I never got around to completing. Right now, I still have some open loops I’m working to close and what brings me to write about this topic. What helps me is the accountability of a mentor and coach. They motivate me and push me through the uncomfortable phases, ensuring I don’t abandon what’s important.

Zeigarnik Effect – The Psychological Effect at Play

This tendency to remember and be affected by unfinished tasks is known as the Zeigarnik Effect, a psychological phenomenon identified by psychologist Bluma Zeigarnik. It suggests that incomplete tasks linger in our minds, causing mental tension and distraction. By closing these tasks, we alleviate this tension and gain a sense of accomplishment.

Elon Musks Super Power

If you’re tired of feeling unsatisfied and always chasing the next new thing, consider focusing on closing off your current projects before taking on a new one.

Learn to say “no” is one of the super powers that Elon Musk has been titled with. He says “no” very often because it bring him away from a bigger “yes” (flying to Mars).

Practice facing the challenging parts head-on. You’ll not only complete more projects but also find greater fulfillment in your work and personal life.

If this resonated with you, I’d love to hear your thoughts. Send me a message on Instagram @rickardlong, and let’s continue the conversation.

Quick 3 Questions

1. What unfinished project can you commit to completing this week?
2. How could having a mentor or accountability partner help you stay accountable and motivated?
3. What steps can you take to improve your ability to close projects and reduce distractions?

As business owners and entrepreneurs, we often find ourselves obsessed with reducing Customer Acquisition Cost (CAC). The logic seems sound: the less it costs to acquire a customer, the better for our bottom line. But what if this fixation on lowering CAC is actually hindering our growth and profitability?

After listening to the Chief Marketing Officer of Revolut, Antoine Le Nel, it occurred to me instead of relentlessly chasing a lower CAC, it’s time to shift our focus to Return on Investment (ROI) and Customer Lifetime Value (LTV). By doing so, we not only consider the cost of acquiring a customer but also the revenue and profit they bring over time.

Obsessing Over CAC – The Downside

Reducing CAC can indeed bring in more customers at a lower upfront cost. However, a sole focus on CAC can lead to unintended consequences:

• Attracting the Wrong Customers: Lowering CAC might mean targeting a broader audience that isn’t the ideal fit for your product or service. These customers may not stay long or engage deeply with your offerings.
• Compromising on Quality: Cutting costs in acquisition efforts can reduce the effectiveness of your marketing strategies, leading to lower-quality leads.
• Short-Term Gains, Long-Term Losses: A low CAC doesn’t guarantee profitability if the customers acquired don’t contribute significantly over time.

Why ROI and LTV Matter More

• Quality Over Quantity: Focusing on ROI ensures that your marketing efforts generate profitable returns. It’s not just about how many customers you acquire, but how valuable they are to your business.
• Sustainable Growth: LTV measures the total revenue a customer is expected to generate over their lifetime with your company. By maximizing LTV, you foster long-term relationships that contribute to sustained profitability.
• Informed Decision-Making: Prioritizing ROI and LTV provides a more comprehensive view of your business health, allowing for smarter investments in marketing and customer retention strategies.

Balancing CAC with ROI and LTV

This isn’t to say that CAC should be ignored. Instead, it should be balanced with ROI and LTV:

• Calculate the Ratio: Use the LTVratio to assess the efficiency of your acquisition strategies. A higher ratio indicates that the value of customers outweighs the cost of acquiring them.
• Segment Your Customers: Identify which customer segments have the highest LTV and focus your acquisition efforts there, even if the CAC is higher.
• Invest in Retention: Allocate resources not just to acquire new customers but to retain existing ones, thereby increasing LTV.

Action Steps

1. Analyze Your Metrics: Start by thoroughly understanding your current CAC, ROI, and LTV. Identify trends and areas for improvement.
2. Refine Your Target Audience: Focus on attracting customers who are the best fit for your product or service, even if it means a higher CAC.
3. Enhance Customer Experience: Invest in quality customer service and support to increase satisfaction and loyalty.
4. Leverage Upselling and Cross-Selling: Introduce complementary products or services to increase the value each customer brings.
5. Monitor and Adjust: Continuously track these metrics and adjust your strategies accordingly.

Quick 3 Questions

1. Are you attracting the right customers who will provide the highest LTV, even if it means a higher CAC?
2. How can you enhance your product or service to increase customer satisfaction and ROI?
3. What strategies can you implement today to balance CAC with a stronger focus on ROI and LTV?

—Rickard

This this help you? Feel free to reach out to me over instagram https://www.instagram.com/rickardlong/

In 2023 I had the feeling that my business was on a good path but I also knew I had to figure out what the future vision for the business should be.

As business owners, we often get caught up in the day-to-day operations, making it challenging to step back and see the bigger picture. And I was a bit stuck in my current state and needed to widen my view. So I used this question:

“What would someone change on the first day or within the first year if they took over my business?”

This question forces you to view your business through fresh eyes, identifying areas that may have been overlooked or deemed “good enough” under your leadership. A new owner would likely scrutinize every aspect, from operations and finances to marketing and team dynamics, seeking immediate improvements to maximise success. It is of course similar to the principles that many use when a business wants to scale or sell, as written in the book “Build to Sell”.

Why This Question Matters

• Identifying Blind Spots: We all have biases and blind spots. A new perspective can highlight inefficiencies or outdated practices that you’ve grown accustomed to.
• Challenging the Status Quo: Complacency is the enemy of growth. Questioning existing processes can lead to innovative solutions and improvements.
• Focusing on High-Impact Areas: A new owner would prioritize changes that offer the greatest return on investment. This can help you realign your efforts toward what truly drives your business forward. For me I quickly made the decision to cut out some of the events we were doing that were not replicable and did not show any benefit to the majority of our customers.

Implementing the Insight

1. Conduct an Internal Audit: Objectively assess each area of your business. Where are the bottlenecks? What feedback have you been ignoring?
2. Seek External Opinions: Sometimes, an outsider’s perspective can provide invaluable insights. Consider hiring a consultant or discussing with a mentor which I do on a weekly basis on small or big matters.
3. Develop an Action Plan: Identify the top changes that could have the most significant impact and create a strategic plan to implement them over the next year.

The Most Important Strategy for Next Year

By adopting the mindset of a new owner, you’re positioning yourself to do the things you might be procrastinating that would lead to impactful changes. This approach could very well be the most important strategy you implement next year. It encourages continuous improvement, adaptability, and a focus on what is most important which leads to growth. Stephen Covey wrote in his book “7 Habits of highly successful people” about the principle of putting first things first and I like this quote:
“Never let something that is of less importance come in front of the most important things”

Quick 3 Questions

1. What immediate changes would a new owner prioritize in your business, and why haven’t you addressed them yet?
2. How can you objectively evaluate your business operations to uncover hidden inefficiencies or opportunities for growth?
3. Who can provide you with an unbiased perspective on your business, and how soon can you engage with them to start this transformative process?

—Rickard

How can a business with no sales department expand to more locations and grow faster than Starbucks?

Greg Glassman, the founder of CrossFit, often said they never had a marketing or sales department. People came to them because they wanted to be part of what CrossFit offered. Instead of traditional sales tactics, they had a committee to review applications from prospective affiliates.

The selection process was simple yet profound. Applicants who expressed a genuine mission to help people got the green light. Those who touted their MBA degrees or claimed to have a unique business model were often declined. Glassman knew that the only way to succeed with a small gym was to be entirely client-centric starting and ending with the client’s needs.

The success of CrossFit boiled down to two key elements:

1. A Great Product: CrossFit delivered results like no other. The workouts were effective, the community was supportive, and the transformations were real. This made people naturally enthusiastic about sharing their experiences.
2. Authentic Storytelling: CrossFit produced media that shared genuine stories from clients, gyms, and athletes. These videos garnered millions of views because they showcased real proof of the product’s impact. They were rough. They did not look like commercials. The stories resonated because they were honest and relatable.

Most affiliate buyers were individuals who had experienced their own transformation through CrossFit. The product was so compelling that it inspired people to become part of the mission themselves.

The Takeaway

Marketing doesn’t always require a massive budget or a dedicated department. Sometimes, it simply requires an exceptional product and authentic stories that resonate with people. When your service genuinely helps others, they will become your most powerful advocates.

Quick 3 Questions

1. Is your product or service so good that people can’t help but talk about it?
2. Is it so authentic and impactful that you could bring in a camera at any time and capture compelling stories?
3. Are you genuinely starting from the client’s perspective and focusing on their needs?