You're listening to “The School of Client Attraction.” Marquel Russell is the founder of Client Attraction University, a marketing consultancy helping you attract clients on autopilot and scale your business while working 50% less.
Quick disclaimer: a side effect of listening to the show is more clients, more profits, more freedom, and it's more impact in your business. Now, here's your host, Marquel Russell.
Marquel: Hey, what's up, my friends? Marquel Russell here, the king of client attraction, and welcome to this brand new episode of the School of Client Attraction.
What I want to share with you, so I was talking to my CPA the other day and I was kind of going through everything and she was like, You all have what we call in the CPA world a cash cow business. Me being me, I'm like, What do you mean by that? She said basically what a cash cow business is, it’s a business that grows… No, she basically said a business that can grow revenue-wise, but its expenses don’t grow at the same rate. Right? [01:01.2]
The business is growing in revenue, because like a lot of businesses, if their income is going to grow, their expenses grow with it, but the beautiful thing is—and that's why this episode is called “A Coaching or Consulting Business Done Right”—because if you do it virtually, and you do it one-on-one and you do groups, and you structure things the right way…
Let's say, for example, you go from 10 clients this month to 20 clients next month. A lot of times, you're not necessarily going to have to bring on a ton of staff. A lot of times you're not really bringing on or buying a lot of new software. You're not having to go buy a bigger building. A lot of times you’re just kind of maybe increasing your ad spend a little more, right? And if you're doing ad spend right, I mean, doing your ads right like how we teach in the Paid Ad Playbook, you're most likely getting a crazy four to five or more, four to five X return on your, right? So, your income grows, but your expenses either stay the same or they go up maybe just a little bit, and of course, that protects your cash flow, protects your business and all that good stuff. [02:01.2]
As you're growing your business, you want to think, Okay, is my income growing, but my expenses are not growing at the same rate? Now, of course, your expenses are going to grow because you're going to hire a team and things of that nature, but the beautiful thing is, for example, a done-for-you agency-type business, a lot of times their biggest investment is going to be in team and fulfillment. Then, of course, a percentage of that will go into ads, but a lot of times it's on fulfillment.
However, we're a coaching business or consulting business or something like that. That's why I say coaching and consulting type businesses are the best business models in the world because the overhead is pretty low and it's a cash cow business like my CPA said, because as the revenue grows consistently week after week and month after month, the expenses aren't necessarily growing at the same rate.
Now, the expenses will grow, which is fine, and, of course, you want to have some expenses when it comes to taxes and all that good stuff—that's a whole other episode in itself—but as that revenue grows, you want to make sure that your expenses are in the right place where it needs to be and, of course, be okay with your expenses growing, but it's not like your average business where your expenses are growing at the same rate of your revenue. [03:07.8]
Thank you so much for checking out this episode. Have a phenomenal day because you absolutely deserve it. Talk to you soon.
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