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Hi there.
Speaker:It's Sue.
Speaker:And thanks for joining me for tips and talk day.
Speaker:These are bite-sized topics that I pull from community questions and
Speaker:things that I'm observing in the world of handmade small business.
Speaker:If you'd like to submit a topic,
Speaker:DME, over on Instagram at gift biz unwrapped today,
Speaker:we're going to be talking about revenue generating tasks.
Speaker:And this came about because someone in the breeze is like,
Speaker:I keep hearing this term revenue generating tasks.
Speaker:You keep talking about this SU what does it mean?
Speaker:What is a revenue generating task?
Speaker:Why do I want to care about it?
Speaker:And like,
Speaker:give me the goods,
Speaker:telling me what this is all about.
Speaker:So that's what we're going to talk about today.
Speaker:Here's the reason that this can be really important.
Speaker:Do you ever find that you put a lot of hours
Speaker:into your business doing all sorts of things,
Speaker:committing a lot of energy and you're not seeing the sales.
Speaker:If you're seeing that this is happening,
Speaker:it's very possible that you're not spending time on revenue generating
Speaker:tasks. So you're putting the time in,
Speaker:but what you're working on,
Speaker:isn't advancing and bringing you to a sale.
Speaker:If you find this happening,
Speaker:don't get discouraged because it's an easy trap to fall into.
Speaker:I'm going to describe it a little bit more here,
Speaker:and then what you can do to overcome this problem by
Speaker:nature, all of us as makers.
Speaker:And I'm not even going to just say makers,
Speaker:I'm going to say any of us gravitate to doing things
Speaker:that are easier for us to do,
Speaker:because it's comfortable.
Speaker:You already know how to do it.
Speaker:It's those harder tasks that you don't really know how to
Speaker:do, or have never done before,
Speaker:or make you a little bit anxious that we shy away
Speaker:from. And so what'll happen is we'll put our time into
Speaker:things that we know how to do,
Speaker:versus the harder things that we should be doing that can
Speaker:really help us grow our businesses.
Speaker:That can be deciding that you want to reorganize your workspace
Speaker:because you feel like you're going to be just so much
Speaker:more productive.
Speaker:If you get everything organized in your workspace,
Speaker:or let's say you're a knitter,
Speaker:you're going to go online and see what the newest yarn
Speaker:is that you should be purchasing.
Speaker:Cause you're going to want to add it to your newer
Speaker:designs. These are all things that we can get ourselves wrapped
Speaker:up in because they're the fun things to do.
Speaker:They're easy.
Speaker:They make us happy and we're being active.
Speaker:So we feel like we're being productive,
Speaker:but they're not revenue generating tasks.
Speaker:You see,
Speaker:not all tasks that you do are created equal revenue,
Speaker:generating tasks are tasks that bring you closest to the point
Speaker:where a customer is going to actually buy.
Speaker:Let me give an example.
Speaker:This is around the idea of exhibiting at a craft show.
Speaker:So you've never done that before.
Speaker:So what's the first thing that you would do when you're
Speaker:considering exhibiting at a craft show?
Speaker:Well, you're going to research what shows are in the area,
Speaker:make a list of the shows that you'll be interested in
Speaker:potentially going to,
Speaker:and then the next step from there,
Speaker:we'll be selecting and signing up for our show.
Speaker:And then you're going to plan what your displays will look
Speaker:like. Brochures,
Speaker:signage, all of that.
Speaker:From there,
Speaker:you're going to promote the fact that you're going to be
Speaker:there. And then finally,
Speaker:you'll go to the show,
Speaker:set up,
Speaker:make your sales,
Speaker:all the things that come along with the show.
Speaker:In this example,
Speaker:do you see how from the very beginning of researching the
Speaker:show all the way along those steps,
Speaker:every single step is a little bit closer to the sale.
Speaker:So each step is a little bit stronger of a revenue
Speaker:generating task,
Speaker:even though that very first step researching craft shows in your
Speaker:area, if that's all you do Monday through Friday,
Speaker:research, research,
Speaker:research research,
Speaker:and you never take that next step,
Speaker:you're not getting closer to the sale,
Speaker:right? So this is an example of how you can get
Speaker:caught up in doing something that can be a potentially revenue
Speaker:generating task,
Speaker:but you keep doing the same thing and you're not making
Speaker:progress towards the end event.
Speaker:The closest to the sale in terms of revenue,
Speaker:generating events is being at the show.
Speaker:And then actually talking with people,
Speaker:answering their questions and then making the sale.
Speaker:Another revenue generating idea would be posting on social media because
Speaker:you're wanting to deepen your relationship with those people who are
Speaker:following you on social,
Speaker:developing the know like,
Speaker:and trust factor,
Speaker:direct messaging them.
Speaker:So they continually feel a deeper relationship with you.
Speaker:When that happens,
Speaker:you are walking them closer to the point where they're going
Speaker:to click the buy button because they like you.
Speaker:Now. They want to support you and they know more about
Speaker:your products.
Speaker:Here's another one reaching out to local newspapers in your area.
Speaker:Seeing if there's any interest of doing an article about the
Speaker:products that you make,
Speaker:not self-serving to you,
Speaker:but something that would be of interest to the local audience.
Speaker:The first way to do that,
Speaker:when you want to get PR is to make contact with
Speaker:the publications that are available in your area.
Speaker:That would be a revenue generating task to my point earlier.
Speaker:Yeah, that's a little bit scary if this is something you've
Speaker:never done before.
Speaker:Oh my gosh.
Speaker:Like what do I do first?
Speaker:Or how do I reach out to them?
Speaker:Or when I reach out to them,
Speaker:that's nerve wracking and I'm anxious.
Speaker:I've never done that before,
Speaker:but this is where we get stuck because you could say,
Speaker:okay, I'm not going to do it.
Speaker:Cause I'm not exactly sure what to do.
Speaker:And you gravitate back to tasks that aren't revenue generating.
Speaker:You see what I mean?
Speaker:That's how you can start spinning your wheels,
Speaker:working so hard in your business,
Speaker:putting in so much time and never seen the needle.
Speaker:Move on sales.
Speaker:Third example of a revenue generating activity.
Speaker:If you are considering wholesale,
Speaker:how about identifying three local boutiques where your product would fit
Speaker:in nicely to what they already offer?
Speaker:So this would add to the variety of products that this
Speaker:store could carry.
Speaker:So you identify three stores.
Speaker:Then you go in,
Speaker:introduce yourself to the owner of the shop.
Speaker:You start the ball rolling.
Speaker:If you will.
Speaker:That is a revenue generating activity.
Speaker:By contrast.
Speaker:Now here is what isn't a revenue generating activity.
Speaker:End of month bookkeeping,
Speaker:yuck. It has to happen.
Speaker:You got to know your numbers,
Speaker:but that's not a revenue generating activity.
Speaker:Something else,
Speaker:counting your inventory.
Speaker:Yes, you need to do it year end for tax purposes.
Speaker:You might need to do it at a mid-year checkpoint because
Speaker:you need to make sure that you have the inventory you
Speaker:need for making products.
Speaker:Do you see how that an activity that has to happen
Speaker:in your business,
Speaker:but just by you counting how much product do you have
Speaker:ingredients? You know,
Speaker:whatever it is applicable to your product has nothing to do
Speaker:with selling to the customer,
Speaker:shipping out product,
Speaker:even though absolutely when an order comes in,
Speaker:you gotta ship it out.
Speaker:You know,
Speaker:you want your customer to get the product right away,
Speaker:be happy with your customer service.
Speaker:That's a post revenue generating activity,
Speaker:right? All these things have to be done of course,
Speaker:but by understanding when you're doing revenue generating activities and when
Speaker:you aren't,
Speaker:this helps you start building a list of activities that you're
Speaker:doing that some day,
Speaker:not right away,
Speaker:but some day could be done by somebody else.
Speaker:Doesn't have to be done by you.
Speaker:The very biggest challenge that I see is we always gravitate,
Speaker:especially as makers to making more,
Speaker:you have to put that in there.
Speaker:You have to make your product.
Speaker:This isn't something that's of issue.
Speaker:If the product that you sell is being made through a
Speaker:factory, right?
Speaker:But no,
Speaker:we are.
Speaker:Hand-making our products,
Speaker:especially if you're a solo preneur right now,
Speaker:here's the caution.
Speaker:And here's what I see often happens in our community.
Speaker:The reason you probably started selling your product is because you
Speaker:love making it,
Speaker:right. That's how it started.
Speaker:It was a hobby or a craft.
Speaker:People started saying they would love for you to make one
Speaker:for them,
Speaker:either for personally,
Speaker:or to use as a gift.
Speaker:And then someone tells you,
Speaker:oh my gosh,
Speaker:your product is so beautiful.
Speaker:So great.
Speaker:So different smells.
Speaker:So good tastes so good,
Speaker:whatever it is,
Speaker:you should start a business around it.
Speaker:Now, all of a sudden,
Speaker:all these business activities start layering on.
Speaker:And then you're right.
Speaker:Like when do you find time to craft?
Speaker:Here's the trick.
Speaker:If you only want to make,
Speaker:and you don't want to start a business and monetize it,
Speaker:that's a different story.
Speaker:But if you want to make money through what you make,
Speaker:you have to balance.
Speaker:Now, the thing that you've loved so much and got you
Speaker:into thinking about business in the first place,
Speaker:you have to balance that now with business activities,
Speaker:the one caution I have is because we can so easily
Speaker:gravitate back to making what ends up happening is you make
Speaker:so much product and then you keep making more product and
Speaker:making more product before you're even selling any of the product
Speaker:that you have.
Speaker:You probably need less inventory than you have.
Speaker:And you're probably not doing the revenue producing activities that will
Speaker:sell that inventory and necessitate you making more.
Speaker:Okay. And I'm going to back this up just a little
Speaker:bit for us here,
Speaker:that when you're at that tipping point of switching from a
Speaker:hobby to a business,
Speaker:you've got to test the market and see that there are
Speaker:actually people who are going to buy over and above your
Speaker:friends and family.
Speaker:And to do that,
Speaker:you don't need to make hundreds of every single piece yet
Speaker:before you go that route,
Speaker:validate that there are people who will buy from you,
Speaker:who will buy the candles that you make,
Speaker:who will buy the shawls before you start making so much
Speaker:inventory and then trying to sell,
Speaker:you can start with 5 cents of candles.
Speaker:You don't need to make 40 until you know that people
Speaker:are going to be buying.
Speaker:So this is something I'll caution everybody about.
Speaker:Are you selling the inventory?
Speaker:You already have that necessitate you making more,
Speaker:or are you gravitating back?
Speaker:What's the most fun to do,
Speaker:which is making when you're really just building up your inventory,
Speaker:but you're not selling any yet,
Speaker:have grace with yourself about this,
Speaker:but recognize that this is something that you should probably be
Speaker:doing differently recognizing,
Speaker:and knowing this is the first step to solving and revising
Speaker:the situation.
Speaker:I want you to go through your day and think about,
Speaker:as you're doing your tasks,
Speaker:is this a low revenue producing task,
Speaker:medium or high?
Speaker:And then what you want to do is you want to
Speaker:balance throughout your day,
Speaker:adding in high revenue producing tasks.
Speaker:And these are probably the things that are less comfortable for
Speaker:you to do,
Speaker:but they're closer to the sale I gravitate throughout the day,
Speaker:all the time to low revenue generating tasks.
Speaker:Why? Because they're easier.
Speaker:They don't take as much energy.
Speaker:So what I do is at the start of the day,
Speaker:I decide on three revenue generating tasks that I have to
Speaker:do each day.
Speaker:And then of course I have to fill in the day
Speaker:with all these other things that I need to do,
Speaker:because we already talked about the fact that you have no
Speaker:choice, but to have to do all of these other ones
Speaker:as well.
Speaker:And then I monitor myself throughout the day and make sure
Speaker:that I'm getting done those top three.
Speaker:And then I usually fit in my lower revenue generating tasks
Speaker:at the end of the day,
Speaker:because my energy is starting to wane.
Speaker:You know,
Speaker:they're easier things to get done.
Speaker:They take less brain power,
Speaker:they take less mental stamina.
Speaker:And so I'll do those later in the day.
Speaker:I catch myself.
Speaker:Sometimes you may find this by way of example too,
Speaker:is that let's say you're doing something that's,
Speaker:it's a struggle.
Speaker:Cause you've never done it before and it's uncomfortable and you
Speaker:hope you're doing it the right way.
Speaker:And then all of a sudden you look up and you
Speaker:see that,
Speaker:that picture way across the other side of the room,
Speaker:isn't straight on the wall.
Speaker:So you get up,
Speaker:you go across the room,
Speaker:you straighten the picture and then you're like,
Speaker:I'm hungry.
Speaker:Maybe I'll go get some lunch.
Speaker:And you've totally forgotten about that revenue generating activity that you
Speaker:were supposed to be working on.
Speaker:And I'm guilty of this.
Speaker:I do this regularly.
Speaker:What I make myself do is say,
Speaker:okay, Sue,
Speaker:that picture needs straightening.
Speaker:And I'm starting to get hungry.
Speaker:Once I finished this revenue generating task,
Speaker:I'll go do those things.
Speaker:I don't give into the idea that that has to be
Speaker:done right away.
Speaker:Cause it's easier.
Speaker:I stick on task and that's how I stay focused and
Speaker:get these revenue generating tasks done.
Speaker:Your personal social media feed can wait that plant that needs
Speaker:watering can wait if you put off getting that next cup
Speaker:of coffee for 10 minutes.
Speaker:So you get past that hurdle that you're on.
Speaker:When you give yourself goals,
Speaker:I'll say in guidelines of what you have to do before
Speaker:you can do something easier.
Speaker:I find this is what helps me make sure that these
Speaker:revenue generating tasks get done.
Speaker:So I challenge you as you're going through your day,
Speaker:analyze your activities and then make sure that throughout your day,
Speaker:you have a balance of low,
Speaker:medium and high revenue generating tasks and fit as many high
Speaker:ones in that you can,
Speaker:because these are the ones where you're walking a prospect to
Speaker:becoming a customer.
Speaker:These are the ones that bring in sales and allow your
Speaker:business to flourish.
Speaker:That's a wrap.
Speaker:I'm a get to the point kind of girl.
Speaker:And this is what you can expect from these quick midweek
Speaker:sessions. Now it's your turn go out and fulfill that dream
Speaker:of yours.
Speaker:Share your handmade products with us.
