The Desired Outcome
For Today's Meeting:
• To gain a clear understanding of the issues
and challenges.
• To provide an outline of how our systems
work to help you achieve your sales and
profit objectives.
• Outline effective strategies to help you
work ON your business instead of IN your
business – So that you don’t HAVE to be
there every day.
• To help you in following a proven program
of continuous improvement by
implementing our techniques, methods and
systems.
Alchemy’s Methods And
Systems – What Are They?
A simple and logical process that helps and guides you
and your company to:
• Capture MARKET SHARE by winning new
customers and; WALLET SHARE by fulfilling your
need to grow customer loyalty.
• Make a consistent and continuous effort towards
improving your business.
• Create a business that provides a fun and secure
work environment.
• Systemise and develop the business so that it will
run and flourish on ‘autopilot’ - without the owner
or controller having to be there or oversee the
day to day detail.
• Produce a consistent and predictable profitable
return for the money, time and effort invested.
The Alchemy Network
• A fast growing international business
Alchemy development and joint venture consultancy
Network
Ltd operating in U.K., Ireland, Australia, New Zealand
Head Office &
UK and Ireland and soon North America.
Office:
Waterside House
Bonds Mill • All Alchemy Consultants are qualified and veteran
Stonehouse
Gloucestershire
GL10 3RF
‘been there, done that’ professionals who have
Australasian Office: ‘walked the talk’.
201 Miller Street
North Sydney
NSW 2060 • In development, over 3,400 marketing campaigns,
Bankers:
Lloyds TSB.
ads, sales methods and business improvement
Commonwealth systems were scrutinised and examined.
Banking Corp.
Auditors &
Accountants: • Alchemy partners & consults with small and
Randell & Payne
Gloucestershire
medium sized enterprises and uses NO cost or
Solicitors/Attorneys:
Charles Russel & Co. low cost business growth methods that are
Cheltenham
Davies, Collison & Cave,
proven and time tested to quickly build sales,
Melbourne.
turnover and profits.
“Our Business Is To Grow Your Business…”
At Your Service…
David Abingdon, Founder.
David leads Alchemy’s worldwide
operation. He gained notability for
taking three businesses from zero to
multi-million dollar ventures – each in
less than 12 months using the Alchemy
business growth methods.
For one of these companies he made
them a staggering $70 million and was
paid a $3.05 million consultancy fee.
David is also regarded as a leading
Franchising expert and has written
several proprietary publications. Also,
he has just authored a new business
book called; ‘Out Of The Box
Marketing’.
Who Is Stephen Simpson?
• Started business, sales and marketing career in 1985 progressing
to Managing Director responsible for P&L.
• Achieved in excess of $30m annually in direct and indirect sales,
selling both products and services.
• Extensive business training including negotiation skills, people
management, presentation skills, sales skills and business
management.
• Sales leadership of organisations ranging from $2m to $30m
turnover.
• Now Stephen is trained and accredited as an Alchemy Business
Development Consultant using Alchemy methodologies.
80% Of Businesses Fail In Their First 5
Years - Over A 10 Year Period 24 Out Of
25 Businesses Fail… WHY?
…The main reason is because they don’t have enough customers
buying from them regularly! They literally run out of Cash…
• They don’t attract a sufficient number of
qualified prospects.
• They fail to convert their prospects into
profitable customers.
CLOSED
• They let their current customers slip away
to do business with their competitors.
“So, the ONLY way to succeed in business is for owner to
have a clear understanding of the market for its products and
services”.
Q: What Are The Greatest
Business Challenges Today?
No. 1. The Clutter Factor: The average consumer receives up to 2,800
commercial messages every day - In 1985 it was only 1600 messages.
No. 2. Increasing Costs: Advertising and marketing expenses are
increasing every year … Out of proportion to results and revenue.
No. 3. Reputation: People buy from companies and individuals that they
KNOW and TRUST. Lack of credibility and customer confidence is the
biggest reason why people don’t buy from you – They don’t know you.
No. 4. Competition: There is an army of competitors in EVERY
industry. You must stand out. Are you lucky enough to have NO
Competitors?
Marketing Costs
1988 1998 2008
The Consequence: The consequences of competition, lack of reputation and the clutter
factor means that it now costs 3 times more to get half the result!
Tired Ineffective Marketing Methods…
Most businesses have either stopped marketing altogether, drastically cut
back, or are still using the same age old, worn out methods to gain
customer attention – Just like their competitors, It’s can be a case of the
blind leading the blind:
- Mail Shots - Promotions
- Advertisements - Door To Door
- Brochures/Leaflets - Telemarketing
Incorrectly used… Regardless of the format, it is still
perceived as ‘junk marketing’ or ‘clutter’…
QUESTION: Is your marketing someone else’s
clutter?
…Too many businesses play
follow the follower.
How To Conquer The
Clutter Factor To Succeed
Quickly, simply and easily get the
attention your message deserves
and rise out of the ‘clutter’ by
using AICDA…
Plus, use Alchemy’s clutter busting
‘SAVi’ Solutions
tte r
(Superior Access Vehicles) to help
r be you get through almost any door.
a fo
mul
For Alchemy has more than 40 of these
DA :
AIC s t io n
The result A tte n powerful and proven direct
- st
A In t e r e it y response attention getters.
- ib i l
I C r ed
- ir e
C Des
- i o n!
D Act
-
A
…If you change nothing,
then nothing changes!
A New Business Reality…The
REAL Purpose Of A Business…
The main function of any business is the acquisition of new customers and
fulfilment of current customers needs to make a PROFIT.
So, regardless of the type of business, market, products or services; ALL
businesses are Sales & Marketing businesses.
“…Because its purpose is to create a customer, the
business has two – and only two – functions; marketing
and innovation. Marketing and Innovation produce results,
all the rest are costs.”
Peter Drucker
Reality No. 1. Having a ‘great’ product or service alone will not
achieve success… BUT a ‘quality’ product or service marketed in a
superior way WILL GUARANTEE your success.
Reality No.2. The KEY to a profitable business is to successfully
implement effective and affordable Marketing and Innovation.
Achieving Business Mastery…
In order to succeed in business, you must first understand
what makes successful businesses work.
Successful businesses don’t just happen ... They are MADE
to happen. All effective and profitable businesses share three
basic strengths
They are totally sales and profit oriented.
They use effective people, systems and
methods.
They sell quality products and services that
someone actually wants to buy.
Your Business Could Be A Pot
Of Gold…
The ambition of every business owner should be to sell the business at the highest
possible price in the shortest possible time:
However, whether or not you actually wish to sell your business at
this point is irrelevant.
The question is: Will you exit on your terms?
If so, your Exit Strategy will be one of the following:
1. Sell
2. Float
3. Franchise
We work with you to help you achieve this goal.
As a result your mindset changes… You consciously build a business rather
than just a job.
Products
vs Your Exit Strategy -
Systems
The Requirements…
The ‘exit strategy mindset’ compels you to create Policies, Plans
and Procedures.
Do McDonald’s have
the best hamburgers? As your skills, planning, systems and methods
Maybe, but probably
not…
improve... Your work decreases and your
results will increase.
But do they have the
best:
Sales System?
This makes the business operate efficiently,
Marketing System? effectively and profitably without you having to
Distribution System?
be there to run it.
Major Point: You
don’t have to have the Thus, the business then works on ‘autopilot’ and
best product in order
to sell billions of them.
becomes ‘investor ready’.
Instead, you have to
be able to out-think,
out-sell, out-market, The value of a business is usually based on a
and out-smart your multiple of profit.
competition.
…Many people try to sell
Alchemy helps you do this because our methodology a business that isn’t
increases profit and therefore the capital value of ‘finished’ and therefore
your business. only get a fraction of its
worth – They are instead
selling a job.
Your Customers Have More Value
Than You May Think…
Customers are your most valuable asset. By knowing the ‘Lifetime Value’
of a customer, you’ll know - through a simple scientific process - what
you can afford to spend to acquire a new customer as well as keep your
existing customers.
What is the ‘Lifetime Value’ of a
customer?
It is: The average purchase value,
Multiplied by: The average number of times
they buy in a year,
Multiplied by: The average number of years
they remain your customer,
PLUS: The monetary value of their
referrals.
‘Lifetime Value’ is the true
Total Worth of a customer to you!
Single Channel
Of Distribution
REVENUE
Many businesses rely on just one method
Direct Sales
of generating income.
This is called the diving board philosophy.
Part he no n
Multiple Channels
Of Distribution
Look what happens when Alchemy helps your business create
and use multiple distribution channels…
REVENUE
Telemarketing
Joint Ventures
Endorsements
Internet Marketing
Back End Sales
Direct Sales
Advertising
Direct Mail
Referrals
Part he no n
7 Profit Multipliers That Can
Skyrocket Your Profits
There is a limit to how much you can CUT COSTS before quality
and service is affected.
Therefore, it makes sense to use NO LIMIT STRATEGIES:
The Seven Profit Multipliers work by increasing the average:
1. Number Of Leads.
2. Conversion Rate.
3. Number Of Transactions Per Year.
4. Transaction Value.
5. Profit Margin.
6. Number Of Referrals.
7. Average Buying Lifetime (Years).
Increasing just one of these will help your business to grow…
BUT by increasing ALL of these Multipliers by just a small margin will
exponentially skyrocket your bottom line profits!
Guaranteeing Your Success
With The 7 Profit Multipliers
1 ↑ Number
Of Leads 2 ↑ Conversion
Rate 3 ↑ Number Of
Transactions
Alchemy’s 444 • Host/Beneficiary
Relationships
• Improve Sales
Skills
• Develop a ‘Back
End’
Strategies - To • Direct Mail • Make Irresistible • Frequent Buyers
• Advertising Offers Programme
Gain Explosive • Telemarketing • Guarantees • Cross-Sell Other
Bottom Line • Special Events • Package Products Products /
Services
• Qualified Lists Together
Growth… • Direct Sales • Questionnaires • Endorsements
• Educate • Price Inducements
• Upgrades
110 63 METHODS 55 METHODS
METHODS
4 ↑ Transaction
Value 5 ↑ Profit
Margin 6 ↑ Number Of
Referrals 7 ↑ Buying
Lifetime
• Up-Sell To Bigger / • Reduce Overheads • Reward • Communicate
Better Product & Expenses Programmes Often
• Offer Larger units • Increase Prices • Use prompters • Deliver Better
• Package Products • Outsourcing • Two For One Service
Together • Use No Or Low • New Customer • Loyalty
• Increase Price Cost Distribution Thank You Letters Programmes
• Change Product • Efficiency & • Referral Fees • Private Viewings
Profile Upmarket Productivity • Customer • Service Contracts
Recommendations • Newsletters
53 METHODS 68 METHODS 57 METHODS 38 METHODS
Using The 7 Profit Multipliers
To Build A Business
Let’s look at a typical business model…
KEY 1 KEY 2 KEY 3 KEY 4 KEY 5
Number of Conversion No. Of Transaction Profit
Leads Rate Transactions Value Margin
100 X 30% X 2 X $100 X 50%
Per Year = 30 = 60 = $6,000 = $3,000
Sales Sales Gross Gross
Revenue Profit
The Value of
KEY 6 KEY 7 Each Customer
No. of Buying
Referrals Lifetime Is
$600
X 1 = Total X
+ 3 = Lifetime So
Annual Value:
@ $3,000 Years
Annual
Profits = $18,000
Gross = $6,000
Profit
Using The 7 Profit Multipliers
To Build A Business
Now by just adding 10% to each key…
KEY 1 KEY 2 KEY 3 KEY 4 KEY 5
Number of Conversion No. Of Transaction Profit
Leads Rate Transactions Value Margin
100 X 30% X 2 X £100 X 50%
Per = 30 = 60 = $6,000 = $3,000
Year Sales Sales Gross Gross
Revenue Profit
X 33% X 2.2 X £110 X 55%
110 = 36 = 80 = =$4,840
$8,800
The Value of
KEY 6 KEY 7 Each Customer
No. of Buying
Referrals Lifetime Is
$600
X 1 = Total X
+ 3 = Lifetime
Annual value:
@ $3,000 Years
Annual
Profits = $18,000
Gross = $6,000
Profit
X 1.1 = = X
3.3 =
$33,541
= $10,164 !
Using The 7 Profit Multipliers
To Build A Business
Now by just adding 10% to each key…
KEY 1 KEY 2 KEY 3 KEY 4 KEY 5
Number of Conversion No. Of Transaction Profit
Leads Rate Transactions Value Margin
100 X 30% X 2 X £100 X 50%
Per = 30 = 60 = $6,000 = $3,000
Year Sales Sales Gross Gross
Revenue Profit
X 33% X 2.2 X $110 X 55%
110 = 36 = 80 =
$8,800 =$4,840
The Value of
KEY 6 KEY 7 Each Customer
No. of Buying Increases From
Referrals Lifetime
$600 to $931
X 1 = Total X
+ 3 = Lifetime
So
Annual Value:
@ $3,000 Years Just a 10%
Annual
Profits = $18,000
= $6,000 increase in
Gross each of the 7
Profit Alchemy
Keys
X 1.1 = = X
3.3 =
$33,541 = 186%
= $10,164 !
overall
markup
Alchemy’s Effective And Affordable
Methods To Marketing And Innovation…
16 Quick Cash Strategies - You will gain rapid results for your business
from our instant ‘Sales Maximisers’ – We put these into immediate
effect to gain fast results for your business!
38 Business Growth Principles - These underlying ‘unfair advantage’
concepts are utilised to accelerate your business into permanent high
performance mode.
7 Profit Multipliers – You achieve exponential growth by the
understanding and use of these powerful ‘Growth Keys’.
444 Marketing Strategies - The most powerful and appropriate
strategies are implemented to optimise your sales and leverage your
business from Alchemy’s encyclopaedic reference source.
Multiple Channels Of Distribution – We constantly seek out new sales
channel opportunities to build your business and provide security.
46 Step Project Management – Alchemy’s Tool Box of continuous
business improvements helps to create permanent, positive and
profitable change into your business.
Working Together… Our 9 Step Process
To Give Your Business A Kick Start:
• Action Plan & Letter of Agreement.
• Business Growth Audit Meeting.
• Market Research.
• Staff Meeting And Staff Research.
• USP & Positioning Workshop.
• Creation And Compilation Of Action Plan.
• Presentation Of Action Plan.
• Weekly Meetings.
• Full Quarterly Review.
Working Together… Our 9 Step Process
To Give Your Business A Kick Start:
1. Action Plan & Letter Of Agreement.
Agreement to move ahead and for the work
to commence.
Working Together… Our 9 Step Process
To Give Your Business A Kick Start:
• Action Plan & Letter Of Agreement.
• Business Growth Audit Meeting.
An in-depth review and snapshot of your
business:
• Where it has come from?
• Where it is now?
• Where you want it to be?
Particular emphasis on the sales and marketing
processes.
Working Together… Our 9 Step Process
To Give Your Business A Kick Start:
• Action Plan & Letter Of Agreement.
• Business Growth Audit Meeting.
• Market Research.
A detailed investigation of:
• Who are we?
• Who are our customers?
• Why do they buy from us?
• Where do we find more?
• What else do they need or want?
Working Together… Our 9 Step Process
To Give Your Business A Kick Start:
• Action Plan & Letter Of Agreement.
• Business Growth Audit Meeting.
• Market Research.
• Staff Meeting And Staff Research.
Review, research and workshop:
What do our staff think?
How can we improve our business?
Ways to instigate change.
Working Together… Our 9 Step Process
To Give Your Business A Kick Start:
• Action Plan & Letter Of Agreement.
• Business Growth Audit Meeting.
• Market Research.
• Staff Meeting And Staff Research.
• USP & Positioning Workshop.
Who are we as a business?
What business are we REALLY in?
What is unique about us?
How do we become the leaders?
How do we gain top of mind awareness in the
market?
Niche and position the business to gain unique
appeal.
Working Together… Our 9 Step Process
To Give Your Business A Kick Start:
• Action Plan & Letter Of Agreement.
• Business Growth Audit Meeting.
• Market Research.
• Staff Meeting And Staff Research.
• USP & Positioning Workshop.
• Creation And Compilation Of Action Plan.
Collation of data, needs and requirements.
Production of agreed Business Action Plan to
launch business to next level.
Working Together… Our 9 Step Process
To Give Your Business A Kick Start:
• Action Plan & Letter Of Agreement.
• Business Growth Audit Meeting.
• Market Research.
• Staff Meeting And Staff Research.
• USP & Positioning Workshop.
• Creation And Compilation Of Action Plan.
• Implementation Of Action Plan.
Moving forward to create a better more
profitable business:
• Create more leads.
• Improve conversion rate.
• Increase customer spend.
• Increase the average number of
times customers buy.
• Instigate formal referral systems.
• Add new streams of income.
Working Together… Our 9 Step Process
To Give Your Business A Kick Start:
• Action Plan & Letter Of Agreement.
• Business Growth Audit Meeting.
• Market Research.
• Staff Meeting And Staff Research.
• USP & Positioning Workshop.
• Creation And Compilation Of Action Plan.
• Implementation Of Action Plan.
• Weekly Meetings.
Keeping the plan on track.
Ensuring that the strategies are being
implemented correctly.
What other issues need addressing?
Working Together… Our 9 Step Process
To Give Your Business A Kick Start:
• Action Plan & Letter Of Agreement.
• Business Growth Audit Meeting.
• Market Research.
• Staff Meeting And Staff Research.
• USP & Positioning Workshop.
• Creation And Compilation Of Action Plan.
• Implementation Of Action Plan.
• Weekly Meetings.
• Full Quarterly Review.
Comprehensive, periodic benchmark meetings
to review and monitor progress and results
and to adjust and correct as required.
Working Together…
Our Proposal For The Way Forward:
1. Initial:
A trial period of 3 months
where my efforts will be totally
concentrated on increasing sales
and profits with the
development of systems.
2. Following this, if then jointly
agreed:
A period of 9 months to
continue with the plan of
building the business and laying
permanent foundations that
develop and improve the
company.
Deciding The Next Step…
So, the direction you choose will determine the future of your
business, your income and the lifestyle you’ll enjoy.
1. Do nothing.
2. Attempt to do it yourself.
3. Find someone to do it for you:
e.g. Hire Someone
4. We can work together to take advantage of
Alchemy’s tested and proven, results-producing
systems - custom tailored for your business,
your market and your goals.
A SYSTEM that produces predictable,
quantifiable and measurable results, time after
time.