Finding time is something that bedevils all of us; there’s always something that is urgent, or important, or both. If you are like me you’ve tried prioritising the day, the week. Or you’ve applied the 80/20 Rule to your list of “to-dos”, but the problem never really goes away. To get ahead we need to get things done.
What if you had “more” time? Can you create time? Sean D’ Souza from Psychotactics has worked out a “tool” that helps. He calls it “The Three Prong SystemTM” – “It’s about how we create this time; and at the same time how do we create revenue that enables us to enjoy our lives rather than just work endlessly.”
Sean’s insight came from, of all things, Elvis. “The thing that set me off was the fact that Elvis is dead. And, what does Elvis got to do with business? Well, the point is that he had been dead since, I think, 1977. And despite being dead, his estate was earning several million dollars. I think it was 20 or 25 million dollars a year.”
He has a structure in place that kind of boils down to THREE elements. And those three elements are:
Consulting - when he says consulting he means one-on-one. You spend an hour, and you can never get that hour back. So, that’s one-on-one.
Training - And training is what would happen when you stand in front of an audience and you speak to them. Say, instead of one person on a call there would be 25 people, 50 or 100. And he knows this now through webinars and podcasts, anything that’s live. You still have to show up, but there are several people on the other end of the call. So, you’re spending the one hour, but the revenue is several times over.
Leverage is having products; when a training session is recorded, it becomes a product. And suddenly, what happens is you don’t have to be there. Just like Elvis. He doesn’t have to be around anymore.
In the truest form, leverage allows you to create a product and then sell that product multiple times over. The whole system of sales can be automated, leaving you with the simple task of collecting the profits.
You know it works because of Elvis. You’ve come back to Elvis again. You know it works because he’s not around, and the system works for him, but it also works for businesses where the person who came up with the idea no longer exists.
There are problems if you only use the first prong. Most service businesses use consulting as a primary source of income. Consulting is pretty hands on and involves advising clients, monitoring the client’s progress and doing projects.
If you sell services, like consulting or accounting, or whatever, and that’s all you do, you can’t ever “leave the building.” You have to be there all the time at someone’s beck and call.
For the vast majority of people, when someone calls for a job, whether you’re a window washer, or mowing lawns, or a consultant, or a doctor, whatever, you go. So 100% of your income comes from consulting, and so you have to go.
What if you could do “Group Consulting”, advising a bunch of people at the same time. And that is what “training” is. The cost to the individual client may be less, but if you have a group, then your overall return for that hour, or however long it takes, is much greater. You’ve converted that consulting from “one-to-one”, to “one-to-many”.
And what if you recorded that training, added the notes, and made that package a “product”, and product which could be sold again and again?
The logic is unstoppable, and that is to reduce the consulting time to the minimum, and spend more time into creating products which can then be turned into both training, and leverage.
The effort of creating the product is a one-time effort, and it brings on-going revenue.
“Every product then generates its own revenue, which then brings more training. That’s how it just feeds back into the system. But at the very core, you have these three parts, and your job is to reduce your consulting, which takes up most of your time to ½ or less than ½.”
And reducing consulting creates time which can be more profitably used elsewhere, whether it is in “product creation”, or taking a much-needed break, as Sean does.
The point is how are you going to make time? This is what the Three-Prong SystemTM does really well. It says that, if you start to increase your leverage, if you start to increase your training, you will do less consulting. Now people will say, “I love my work. I love my consulting.” Sure, so keep as much consulting as you want. But have bigger chunks of training and leverage, because that will allow you to choose your clients.
That will allow you to name your prices. That will allow you to do your consulting in a way that’s richer and better for yourself and for your clients. You can’t do that when you have to chase after every client that calls you.”
Once you understand where your business comes from, you can analyse what’s good for your business and personal health.
Can everyone do this?” No. It is specifically designed for people who have control over their own time. And that is a self-employed person. Technically they have control over their own time. When you work for someone else, you may have some flexibility, but ultimately, you’re bound by the requirements of management.
There is one other point to consider; you can’t jump straight away into all three prongs. If your training, and products are to be successful, you first have to establish your credibility. And that will usually start with consulting. Consulting keeps you on your feet; clients ask questions you’ve never considered before, and you know the answers. Now that doesn’t mean you can’t start with a product, and consult/train in that field to build sales, but for most, it will start with a service skill.
Making more productive use of your time creates time.
Note: The content of this blog post is based on a podcast by Sean D’Souza.
When clients approach me for coaching, clients with businesses that are underperforming despite the crippling hours and effort the owner is putting into them, it is not just marketing that is holding them back. They so often lack a management mindset, and lack control over their business. Eight times out of ten that lack of control comes down to a lack of knowledge of what is happening in the business, and where their business is coming from.
For more than 29 years I’ve been helping small business owners plug the profit leaks in their business and restoring their cash flows by assisting them understand the information they need to have control over their business, how to manage and analyse it, and how to answer that critical question – WHY IS IT SO?
If you would like to discuss with me how you might do that, book a Strategy Consult here.
© Copyright 2016 Adam Gordon, The Profits Leak Detective
Some profit losses are pretty obvious - so you fix them.
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Possible leaks could be anywhere.
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