Momentum Podcast: 685
The Fastest Analysis Tool for Your Business
by Alex Charfen
The world is incredibly noisy right now, and it can be hard to know what to focus on in your business to make the greatest impact.
Alex Charfen, a business growth coach who helps entrepreneurs grow and scale their businesses, gives practical, tangible, and actionable tips that you can implement into your business right now.
If you’re an entrepreneur looking for the fastest way to know what you should do next in your business, you will not want to miss this episode.
By the end of this 14-minute episode, you will be able to confidently:
Analyze your business consistently
Allocate your resources in order to create the most leverage for your business
Focus on what is going to grow your business right now.
Is it lead generation? Could it be focusing on lead retention? Or is leveraging upsells your solution? Listen and find out.
You can download the fastest analysis tool for your business right now by going to https://charfen.com/core and getting your hands on the Five Core Functions Business Tool.
The Momentum Podcast is created specifically for entrepreneurs like you to get into momentum and take the rest of the world with you. If this episode helped you do that, take a moment and leave a review. Let us know how we have helped you make a bigger impact on the world.
Our entrepreneurial journey doesn't end here! Be sure to check out our Facebook Community filled with entrepreneurs just like you who are getting into momentum and building world-changing empires —> https://charfen.com/community
If you’re like many other entrepreneurs that cannot turn it off and you are ready to take the next step tostart building a real foundation for your business, we are ready to help you. Go to https://billionairecode.com right now to set up a call with one of our coaches and start building the systems, processes, and routines you need to make your greatest contribution.
Be sure and download my FREE Five Core Function business tool now here: https://charfen.com/core
Full Audio Transcript
This is The Momentum Podcast. We can all agree that the world is incredibly noisy right now. In a good market it can be difficult to make good decisions as an entrepreneur, but in a market with this much uncertainty, turmoil and noise it can be exponentially more difficult to make decisions that will move your business forward. If you're feeling this as an entrepreneur you're not alone. We're all feeling it.
Now, more than every, we need a consistent way to make the best decisions for our business. Having the right framework you can almost figure out what to do next and move forward with confidence.
In this episode of The Momentum Podcast I'm pleased to share with you that Alex is going to share that framework with you. We call it the five core functions. This is some of our most important, and ironically, most copied content. The five core functions will help you clarify where you're going and get excited about the outcome so that you can put your foot on the accelerator pedal and don't let up. I hope you enjoy.
I'm Alex Charfen and this is The Momentum Podcast, made for empire builders, game changers, trail blazers, shot takers, record breakers, world makers, and creators of all kinds, those among us that can't turn it off and don't know why anyone would want to. We challenge complacency, destroy apathy, and we are obsessed with creating momentum so we can roll over bureaucracy and make our greatest contribution.
Sure, we pay attention to their rules, but only so that we can bend them, break them, then rewrite them around our own will. We don't accept our destiny. We define it. We don't understand defeat, because you only lose if you stop, and we don't know how. While the rest of the world strives for average and clings desperately to the status quo we are the minority, the few who are willing to hallucinate there could be a better future, and instead of just daydreaming of what could be we enter the vulnerability and exposure to take to make it real. We are the evolutionary hunters, clearly the most important people in the world, because entrepreneurs are the only source of consistent, positive, human evolution, and we always will be. Today I want to talk about one of our most foundational frameworks that we call the five core functions of business. But before I jump into the five core functions I want to talk about like what happens when you don't have a framework through which you're consistently understanding what your business needs, where you should assign your resources, where you should use your resources, and how you're going to grow your business. Here's what happens. Most entrepreneurs, and this might be you... By the way, before we figured this out this was me. Most entrepreneurs make decisions about how to grow their business based on a number of different things. It can be how we're feeling on a certain day, like what causing the most noise, what's causing the most issues. It can be when we go to an event we see what someone else is doing and we get an inspiration, we decide to do things that way. It can be somebody else looks at our business and says, "Hey, Alex, you need this thing you don't have."
For most of us it is not consistent. So we have a framework called the five core functions, which is a framework that you can use over and over and over again to do the following. Analyze your business and look at the five core functions that are going to grow that business, and then understand where to put your resources, be able to invest those resources, then come back, re-analyze your business and do it again.
So let's quickly talk about the five core functions. These are five steps in the customer journey of how someone experiences your business, but I also want you to know that it's more. These are the five things that are going to grow your business. This set of functions is what scales your business, it's what grows it, it's what increases your top line number. If you do this right, it's what's going to increase your profitability, and it will consistently help you do the thing that every entrepreneur in order to go and scale their business has to successfully do.
We need to analyze our business, invest resources in what our business needs most at any given time, and then be able to grow and scale the business. So the five core functions of business are pretty simple. They are lead generation, nurture, conversion, delivery, retention, resell and upsell.
Let me pause for a moment and go through each... Not pause. Let me take a minute and go through each one of them so you understand what I'm talking about. When we look at any business as a company... We coach a few hundred entrepreneurs around the world that are growing and scaling their businesses like crazy, we want to have consistent analysis so we understand where to invest resources. When we look at these five core functions, lead generation is the act of getting a lead into your business, getting permission to market to someone, to talk to someone, to make offers to that person. That's lead generation.
Lead nurture is everything you do to nurture that lead as they move towards buying. So that might be your email list, that might be a Facebook group just like this. This is one of our nurture activities. That might be ManyChat, where you have a list of people that you can contact. That might be anywhere on your social media where you have people that you are... That are warm leads, that you're talking to. So nurturing is all of the things you do to nurture a lead so that they step towards the next of the five core functions, which is conversion. Conversion is the act of sale, so conversion can happen on a sales page. Conversion can happen on a phone call. Conversion can happen on a webinar. What is your conversion and how are you doing with conversion? Then the next step is delivery, everything that's involved in delivering your product to the end user so that they get a successful result.
Then the fifth of the five core functions is actually three sub-functions, retention, resell and upsell. Retention means they don't return the product. You sold it and it stays sold. Resell means they buy something else from you our they buy again from you. Then upsell means they buy something from you at a higher investment.
Here's why these five core functions are so crucial. I've been working with entrepreneurs for almost 30 years now and helping large businesses, small businesses, startup... The whole range grow and scale. Today we start working with people who are in the six figure range, we help them get to seven. We work with people who are in the seven figure range, we help them get to eight, like my friend Darien Khosravi, who runs Kosmo's Q. I was just texting back and forth with him. In the past two years he's gone from 1.7-1.9 million, somewhere around there, to 10.5.
The way we help entrepreneurs do this is by analyzing the five core functions and understanding exactly what their business means. So here's what you do. To do this simply... Like we have a much more involved framework in our programs, but if you're planning for next year... It's December right now. If you're trying to figure out what to do next in your business or if you don't have a plan for next year and you want to figure out what's next in your business, here's all you do. Simply write down lead generation, nurture, conversion, delivery, retention, resell and upsell, and score yourself one to five. This is what I call the back of the napkin analysis of the business. Where are your lead generation, one being like not so great, five being best? Where are you in nurture, conversion, delivery, retention, resell and upsell?
By scoring, here's what happens. You might be a two in lead generation, but a five in nurture, and a two in conversion, and then a three or four in delivery, and a three or four in retention, resell and upsell. Well, with what I just made up what we need to do is to focus on lead generation, get that from a two to a three, so that we start getting more leads into the business. Then we start selling more.
Here's why the five core functions is so important. If you consistently go back to this framework and you analyze where am I on lead generation, nurture, conversion, delivery, retention, resell and upsell, and you take the limited resources your company has and you invest it in where your scores are the lowest on a quarterly or monthly basis each time you plan, you're going to see the business get the resources it needs to the area of the business it's going to help you grow the fastest. This is a game changer for a growing business, especially if until now you've been making decisions without using a framework. Now here's something I want to warn you about with the five core functions. We've been using these for about a decade now and we've been sharing them with our clients and our members for a long time. In fact, if you go search five core functions of business you'll find this framework from us, but you'll also find it from other people who we've taught it to. It's become a standard in a lot of coaching groups, a lot of content groups. They use this analysis because if you consistently look at this customer journey this is what's going to create revenue. This is what's going to create customer satisfaction and success. This is what's going to create profitability. Consistently put your focus here.
The warning is that when you start using the five core functions and you start applying them to your business and you get into using them over and over again, the business is going to start to grow, and then something odd might happen. You might have what happens to a lot of our members, to a lot of the people I've coached one-on-one, to a lot of the companies we've worked with. Things will be going extraordinarily well and you'll be using the five core functions to apply the resources to the business to correct your gaps, and then somebody is going to come along and say, "Hey, you actually need this other thing. You're a $5 million business. You have to have a CFO," or, "You have to have this," or, "You have to have that."
Well, here's what I want you to understand. If the five core functions don't dictate that you need it, then you shouldn't put your time, effort or any energy there. This framework will help you consistently go back to your business, see exactly where you need to apply resources, and do so over and over again to increase the success that you have, to increase the momentum in your business, and to know that when you're making an investment in your business you're making it in exactly where resources are needed, where the customer journey needs to be improved, and where you can make the business grow and help the business move forward, gain momentum, make a bigger impact with the people that you're working with.
The five core functions will help you understand how to grow your business. If you've been making decisions so far without a framework apply this now, make some decisions with it, analyze your business, take a look at it, and you will see this is a framework that will help you grow your business in a consistent way, because here's what we need to do as entrepreneurs.
If nobody has ever told you this, I'm a realist. I'm a eternal optimist mixed with a realist, so I am optimistic we can get past things, but I want to be real about where we are. When I look at the five core functions of business, I want to know exactly where I am so that I can move the business forward. s 50, you know a fraction of what you did at the beginning.
You might not know all the ways that things are getting done. However, if you know the five core functions and you understand how this is working and you understand where your business is, you will have a clear idea of exactly where to apply resources to get the growth in your business that you want.
If you want more information on this you can also check out my podcast number 146 on The Momentum for the Entrepreneurial Personality Type Podcast. It's a different take on the five core functions. If you want to get a report on the five core functions, you can follow the link in the description. It's charfen.com/core, so my last name, charen.com/core.
Go download the five core functions report, apply this to your business, make increasingly difficult decisions with less and less information in a way that moves your business forward like crazy. This is a game changer. I can't wait for you to check it out.