How to Speak CEO (Part 2) – Multiplicative Thinking

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Summary:

In How to Speak CEO Part 2, 2014 Infusionsoft Most Helpful Partner, Kim Snider, teaches her audience how to start thinking multiplicatively in order to become a more successful CEO. Listen as Kim demonstrates the importance of Lifetime Value, Compound Interest, and – our favorite – Mise-En-Place.

Time Stamped Video Notes:

• 01:15 – Introduction of Kim Snider, Founder of 10 companies, including IS Beginner and The API Guys
• 01:57 – Summary of the Webinar—what it will cover
• 03:24 – Recap of Part 1
  • 03:35 – ROI, ROI, ROI
  • 06:12 – How to make money and grow your business
  • 08:37 – Video and Notes from Part 1
• 09:25 – Lifetime Value of a Customer
  • 09:50 – What is the lifetime value of one of your customers?
  • 13:30 – Calculating Lifetime Value
  • 14:39 – Looking at Starbucks as an example of lifetime value
    • 15:28 — $15,000
  • 17:15 – The value of explaining lifetime value to customers
  • 18:20 – A lot of small business owners aren’t generally great at the financial aspects of business—they only think in terms of one purchase
• 22:15 – The Business Version of Compound Interest
  • 22:35 – How many times does a dollar have to double to become $1,000,000
    • 22:55 – 20 times
    • 25:40 – It’s that final double that rocks your world
    • 26:22 – You can’t get to $1,000,000 without that first $1
  • 27:25 – Multiplicative Efforts – Activities that become exponential over time
    • 29:03 – Doers will focus on doing what they’re asked or told—value creators focus on finding the projects that are multiplicative
    • 29:55 – Push back and ask questions
    • 30:15 – Help your customers understand the math and charge accordingly
  • 31:25 – How to Speak Chef
    • 31:45 – Mise-En-Place
    • 32:00 – Foundation of Culinary School—explains the ability to serve 1000 meals in 3 hours
    • 33:00 – Only focus on the aspects that you need to be working on at the moment—rid yourself of distractions
    • 34:05 – Every task has its place for optimal efficiency
    • 34:35 – Kim’s Rules for Mise-En-Place
      • 34:38 – Rule One – The 80/20 Concept
      • 36:27 – Rule Two – The One Thing You Do That Brings Highest Value
      • 37:27 – Rule Three – Unless “it” Gives You Incredible Joy…
    • 37:55 – The Implications of Mise-En-Place
      • 38:05 – Showing customers the Mise-En-Place is to your benefit—show them your place!
      • 40:30 – We’ve been taught to focus on the “fuzzy” messages—maybe we should focus more on the concrete, tangible messages
      • 42:00 – You want to do business with successful businesses, not fearful, illogical businesses
      • 45:50 – When practiced at its highest level, Mise-En-Place says that time is precious
    • 46:30 – Questions
      • 47:01 – How do I start to become comfortable talking about the numbers and math with customers?
      • 49:01 – If I know my lifetime value, what percentage of it should I spend on acquisition?
      • 51:34 – What do you think is the most important ingredient of Mise-En-Place?
      • 52:40 – If I’m spending a lot of my time on menial tasks, but having difficulty outsourcing, how do I get started?
    • 56:48 – Kim’s contact information
    • 57:45 – End of the Webinar

5 Key Points:

1. Identify the lifetime value of the customer—both for your business AND for potential clients.
2. Do NOT limit yourself to thinking in terms of a one-off purchase.
3. Doers will focus on doing what they’re asked or told—value creators focus on finding the projects that are multiplicative.
4. Practice the three rules of Mise-En-Place.
5. Outsource everything that doesn’t need your attention—it requires a leap of faith, but don’t be afraid to make it.