The Continuity Factor
- Date: 2008-06-10 - Word Count: 721
Share This!
The best new ideas are often old ideas brought back to life. Sometimes the ideas are altered to fit particular circumstances but, many times, the application is altered to fit current circumstances.
Over twenty years ago, when I was in the financial services industry, I decided to alter our business from commission-based to charging a monthly fee based on a percentage of assets. This was a radical thought at the time because the brokerage business was based on commissions. The change was also difficult to execute because it took some time for monthly income (based on a lower rate) to catch up to handle current overhead. The change required confidence that the new monthly fees would last and we had to temporarily cut overhead at the same time.
Fortunately, it proved to be the best decision I ever made in business. Since that pivotal moment, I have never had a business that did not have a continuity component attached to it. Additionally, every business we consult with is taught the value of continuity and has it structured into their business plan.
Continuity income is simply income that is based on a monthly plan or membership program. If you have a continuity program, you can count on a certain income stream coming in each month whether you find a new client or not. This is not to say that you do not need to keep looking for new clients, because you do. Instead, it is a mechanism that produces income so that, should you have a bad month in finding new business, or should the economy falter, you still have money coming in regularly, allowing for time to make adjustments. If you do not have a continuity program in your business or profession at this time you have to get a certain amount of new customers or you are going to have serious problems in a short amount of time.
The ideal goal in a continuity program is for the continuity to first cover your monthly overhead. When you do that, all new business goes to profit and expansion. The next goal is to make money just on your continuity.
When we present the continuity factor to clients, some have an immediate "ahhh" experience. Others struggle with how the application could possibly be structured into their business. These clients frequently say the same thing: "But my business is different." Trust us. It's not. Let me give you some examples so you can see the applications of continuity in different businesses. Our goal is for you to consider how continuity can be applied to your business so you can enjoy its benefits.
A real estate broker in Iowa works exclusively with investors. He has a successful track record of finding good income-producing properties. He offers a tiered continuity program where investors pay different amounts each month for the opportunity to be higher up on his investor list in order to see new properties first. For $1,000 per month, you get to see them immediately. In addition, he must agree to work with you exclusively and give you a fee as a buyers' broker when you buy the property. He also represents you when you sell the property. The continuity factor in his business takes the pressure off having to find something new in a particular month.
Frequently, continuity is designed around a marketing service or an ad campaign that a company has developed to consistently produce new clients. For example, a client we are working with has a commercial cleaning company. They have developed a very successful lead generation system. We are developing a monthly payment program based on providing leads to other cleaning companies in non-competitive areas that pay a fee for the exclusive rights to those proven marketing methods.
Our latest client is a pizza business, which our law firm is franchising. The pizza delivery company sells a monthly membership service that gives discounts and higher priority for phone orders based on membership levels.
And to blow your mind even more: We actually know of a funeral director that guarantees recovery for the family of a lost one and charges a continuity fee for counseling and grief services.
Continuity in your business will improve your income and your stress level. We encourage you to think about how continuity can be used in your business. If you want help, let us know.
Over twenty years ago, when I was in the financial services industry, I decided to alter our business from commission-based to charging a monthly fee based on a percentage of assets. This was a radical thought at the time because the brokerage business was based on commissions. The change was also difficult to execute because it took some time for monthly income (based on a lower rate) to catch up to handle current overhead. The change required confidence that the new monthly fees would last and we had to temporarily cut overhead at the same time.
Fortunately, it proved to be the best decision I ever made in business. Since that pivotal moment, I have never had a business that did not have a continuity component attached to it. Additionally, every business we consult with is taught the value of continuity and has it structured into their business plan.
Continuity income is simply income that is based on a monthly plan or membership program. If you have a continuity program, you can count on a certain income stream coming in each month whether you find a new client or not. This is not to say that you do not need to keep looking for new clients, because you do. Instead, it is a mechanism that produces income so that, should you have a bad month in finding new business, or should the economy falter, you still have money coming in regularly, allowing for time to make adjustments. If you do not have a continuity program in your business or profession at this time you have to get a certain amount of new customers or you are going to have serious problems in a short amount of time.
The ideal goal in a continuity program is for the continuity to first cover your monthly overhead. When you do that, all new business goes to profit and expansion. The next goal is to make money just on your continuity.
When we present the continuity factor to clients, some have an immediate "ahhh" experience. Others struggle with how the application could possibly be structured into their business. These clients frequently say the same thing: "But my business is different." Trust us. It's not. Let me give you some examples so you can see the applications of continuity in different businesses. Our goal is for you to consider how continuity can be applied to your business so you can enjoy its benefits.
A real estate broker in Iowa works exclusively with investors. He has a successful track record of finding good income-producing properties. He offers a tiered continuity program where investors pay different amounts each month for the opportunity to be higher up on his investor list in order to see new properties first. For $1,000 per month, you get to see them immediately. In addition, he must agree to work with you exclusively and give you a fee as a buyers' broker when you buy the property. He also represents you when you sell the property. The continuity factor in his business takes the pressure off having to find something new in a particular month.
Frequently, continuity is designed around a marketing service or an ad campaign that a company has developed to consistently produce new clients. For example, a client we are working with has a commercial cleaning company. They have developed a very successful lead generation system. We are developing a monthly payment program based on providing leads to other cleaning companies in non-competitive areas that pay a fee for the exclusive rights to those proven marketing methods.
Our latest client is a pizza business, which our law firm is franchising. The pizza delivery company sells a monthly membership service that gives discounts and higher priority for phone orders based on membership levels.
And to blow your mind even more: We actually know of a funeral director that guarantees recovery for the family of a lost one and charges a continuity fee for counseling and grief services.
Continuity in your business will improve your income and your stress level. We encourage you to think about how continuity can be used in your business. If you want help, let us know.
Related Tags: business consulting, nick nanton, dicks nanton agency, jw dicks, business lawyers, dicks and nanton
WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete blurb with it: JW Dicks & Nick Nanton, lawyers by trade and entrepreneurs by choice, publish the Business Growth ezine monthly covering marketing and business growth topics that every business, start-up to international powerhouse, needs to know. If you're ready to take your business to the next level, get more FREE info now at http://www.DicksNantonAgency.com Your Article Search Directory : Find in Articles
Recent articles in this category:
- The No. 1 Rule For Projecting Confidence - Speak With Authority
One of the most important characteristics a person can project in a business setting - or any situat - After the Autumn Checkout European Debt Crisis and U.S. Brewing Rebound
In the commotion caused by the Fed on interest rates come to an end, the "disastrous" for the euro a - Advantages Of Arcade Game Rentals
There are many different advantages to arcade game rentals. Most people need something to release th - A General Primer on Truck Cargo Nets
In modern highways it is quite rare to see truck cargo nets in action, this is because they are usua - The United States Will Burst More Severe Financial Crisis
Not long ago, suddenly announced that the central bank to raise interest rates, the interest rate hi - Niche Marketing Profits - 3 Easy Steps to Finding a Profitable Niche Market Income in 10 Minutes
Like most beginners I was having a very difficult time trying to find a niche market to earn extra m - The Importance of Hospitality Management Consulting Firms Toronto
Businesses and the managers that help guide any business are in a constant state of improvement and - New Keynesian Theory Label
2010 winner of the Nobel Prize in Economics three theories have been labeled as "New Keynesian" labe - Federal Reserve Pouring Money QE2 Unpredictable Fortune
U.S. economist Milton Friedman proposed a "throw the cash from a helicopter" view, while the practic - Fiscal Consolidation Should no Longer Delay
British Chancellor of the Exchequer George Osborne today announced fiscal consolidation policy, shoc
Most viewed articles in this category:
- Common Financial Problems to Avoid
One must first change their habits and not procrastinate. American Consultants Inc at offers key fi - How a Bad Hire Can Hurt Your Business
What's worse - hiring the wrong person or not hiring anyone at all? Companies can become almost des - Joel Comm Is Dr. Adsense
What is Adsense? If you are new to making money online and net marketing, you may not know what Ads - 5 Steps For A Dynamic Wealth System Online
Recipe: Opportunity + knowledge + Dynamic Wealth System + Your Action = Massive Success!!! Step 1 - How To Stop Foreclosure
Losing your house to a foreclosure can be very scary. There are times when circumstances are ou - How to Always Pitch A Strike
As business owners, we are always working on new ways to convince people to become customers, client - Membrane Diffuser Solutions for Wastewater Treatment Systems
In the aeration basin of a typical wastewater treatment plant there are both organic and inorganic m - Another Year Hating Your Job or Loving Life?
Copyright © 2007 Mary Foley I've come to the conclusion that to be successful - really successf - Dyestuff Industry In India And China
World demand for dyes and organic pigments to touch $10.6 billion in 2008According to a study on dye - Cma-cgm Case : the Series of Lawsuits Continues in Syria, Lebanon, Egypt, France, England and the United States
Damietta company case : The series of lawsuits continues in Syria, Lebanon, Egypt, France, England a