Business Development Strategies – Mitch Russo
SUMMARY
In this episode, we are here with Mitch Russo. He started a software company in his garage and sold it for eight figures and worked with Tony Robbins building a 25 million dollar company. He gives some pieces of advice on how startups can be able to create a business and have a successful product with the implementation of business development strategies.
For a business to thrive, it is essential first to identify who your ideal clients are and what they want to buy.
KEY TAKEAWAYS
Know who your perfect clients are and what they want to buy.
Look for groups of your target market and ask them questions.
Learn how to enroll your clients to sell for you.
Having the ‘Entrepreneur’s Disease’ stops you from scaling your business.
One of the critical elements of being able to build the business is having some backing or capital.
Know how you can get publicity for your business.
TRANSCRIPTION: BUSINESS DEVELOPMENT STRATEGIES – MITCH RUSSO
Luis Congdon
Many entrepreneurs have started, failed, and closed up shop. What are some of the most significant cautionary tales and words of advice about business development strategies that you should know so that your business thrives? We’re going to talk about all that and more on today’s episode.
Kamala Chambers
We’re here with Mitch Russo. He started a software company in his garage and sold it for eight figures. Then, he went on to work with Tony Robbins building a 25 million dollar business together.
Mitch is an author, and we’re thrilled to have him here.
Luis Congdon
Hey there, Thriving Launchers.
Luis here and Kamala, and we’re excited to have Mitch on the line here to talk about effective business development strategies. Mitch, are you ready to launch?
Mitch Russo
Absolutely! I sure am.
Luis Congdon
All right, Mitch.
You wanted to talk about some common issues that entrepreneurs tend to have, and I’m curious from you, what are some of the first things that stick out for you?
Business Development Strategies – Know the Biggest Mistakes Entrepreneurs Make
Mitch Russo
I think some of the experiences I’ve had as an entrepreneur is this whole idea of knowing what the market wants.
I think I’ve had times where I’ve had great product ideas, but I didn’t do enough research into what the market wants. I went and built those products, and then I was surprised when they didn’t sell.
I went back and said, “Okay. What did I do wrong?”
What I did wrong is I didn’t figure out two things; who my perfect client was, and what they wanted to buy. That was some of the biggest mistakes I made early on. Identifying those two things is one of the business development strategies for startups
Kamala Chambers
That’s something we’ve all struggled with I think, and it’s something we talk a lot about with our experts on the show here. And I’m glad you brought it up because knowing your audience and what they want is such an important point when it comes to business development strategies.
Business Development Strategies – Sell What People Want
Kamala Chambers
We need to keep remembering that we have to make sure we’re putting something out there that people want.
What is the second thing that you find most entrepreneurs struggle with or the significant roadblock regarding the implementation of business development tactics?
Mitch Russo
Again, this goes back to my own experience.
When I first started my software company, Timeslips Corporation, we didn’t start with a clear idea of what it was we were going to do. We did know what people wanted. We knew what this particular customer would want, but we didn’t know how we were going to serve them.
Business Development Strategies – Figure Out How to Serve Your Audience
Mitch Russo
We spent a whole year screwing around trying to figure that out and get it right. To us, in the beginning, it would have been so much easier if we are aware what the successful business development strategies are and if we would have made an effort to figure that out right up front, and that’s what we didn’t do.
Luis Congdon
So then, how do you get that market research to make sure you’re doing it correctly?
Business Development Strategies – Look for your Target Market’s Groups
Mitch Russo
What I did is I went online, and I started to look for groups of my target market, and I started to ask them questions.
My target market was lawyers. I figured that out, and I also figured out that I knew what they needed, time and billing software.
What I started to do was speak to lawyers all the time online and ask them, “Is this what you want? What is it that you want that I didn’t ask you that you wanted?” and I started to get fantastic research done this way.
As I said, I was bumbling my way through this in the very beginning, and luckily, we had another resource that was very important, which was money. We both had enough savings to last us several years knowing that this thing might take longer than we had hoped.
Business Development Strategies – Figure Out What Your Market Needs
Mitch Russo
Once we figured out not only what our market is and what they want, but exactly what they need, that’s when our product finally became super successful.
Once you figure out not only what your market is and what they want, but what they need, that’s when your product becomes successful.
Kamala Chambers
That’s the real key right there. It’s one of the most successful business development strategies.
Before we get any further on this, I’m wondering if you have any pro-level tips that you want to jump ahead to because what if we already have the market dialed in? What then?
Mitch Russo
Yes, that’s a great question.
Business Development Strategies – Enroll Others to Sell for You
Mitch Russo
A pro-level tip is to enroll others to sell for you. You can’t do this at the beginning. You generally can’t do that until you’re deep into your business and it’s working.
Mitch Russo
Enroll your clients to sell for you, and you could do that in several ways. We started out with something we could the Ambassador Program. We built our ambassador program to the point where we would have people representing us, an unpaid representation at bar association meetings and business groups.
Later, we took that step further and started to certify our best customers, and turn them into an unpaid sales force that generated four streams of recurring revenue.
Luis Congdon
What do you think is the next big mistake that entrepreneurs tend to make?
Mitch Russo
If we’re talking about the type of experiences that most entrepreneurs have, the next big thing that happens is what I call ‘Entrepreneur’s Disease.’
Business Development Strategies – Be Cured of the Entrepreneur’s Disease
Mitch Russo
Have you ever heard of that before?
Entrepreneur’s disease is when “I’m the entrepreneur, I know everything, and I do it better than everyone so, therefore, I must do it all.”
Without being able to delegate, without being able to assign work to people you trust, there’s no possibility of you ever scaling your company beyond yourself and a few helpers.
Business Development Strategies – Delegate Tasks
Mitch Russo
Without being able to delegate tasks to people you trust, you can’t scale your business.
Kamala Chambers
It’s true, and I used to suffer from that chronic illness, and I feel blessed to be cured of it.
It makes all the difference now to have a team, an outsourced, and a VA team that can be there to support you through all of it. We have a Free Guide to Outsourcing that teaches how to hire and manage a team.
Mitch Russo
Exactly.
Kamala Chambers
Any other significant mistake that you see entrepreneurs making?
Mitch Russo
I mentioned that I was well-financed when I started.
I have people come to me all the time looking for investments. One of the things I look for in a company is if I’m going to invest money, what I don’t want my money to do is pay the founders a salary. It’s because if they’re not willing to take a risk and borrow the funds to live by themselves, then I’m not willing to take a chance either.
Business Development Strategies – Have Some Backing or Capital
Mitch Russo
One of the critical elements of business development strategies for startups to be able to build the business is having some backing or capital. Backing, by the way, could mean having an employed spouse. It doesn’t have to mean that you got to have a lot of money in the bank.
Kamala Chambers
Absolutely.
Before we go, are there any last tips that you want to leave the Thriving Launchers with that they could go out and apply today?
Mitch Russo
Yes.
Business Development Strategies – Start with Publicity
Mitch Russo
I started my business with publicity. If it weren’t for publicity, I would have never had a company.
Here is my one of the business development tips and tricks that I could give you.
My tip is to find places and people that will talk about you. Write blog posts, and just get them published. I recently had an article published in Entrepreneur magazine, which was great. Do that.
Go and get your stuff out there, and make contact with the people who are responsible for sharing large audiences.
Mitch Russo
If you use it, it will pay you great dividends.
Luis Congdon
I agree, Mitch. It is why you, Kamala, I, we all have a podcast. It’s why we attend events, write blog articles. I think PR is essential and it’s one of the most effective business development strategies.
Business Development Strategies – Start a Podcast
Luis Congdon
Thriving Launchers, if there’s one less than a takeaway today about utilizing a business development strategies, it’s my favorite one. It is you need to have some way to get your message out to the world. I’m a little bias here. I think podcasting is the way to do it and you can get discovered with podcasting, but Thriving Launchers, whatever way you can get the word out about your services and what you’re up to, do it, and start doing it often.
Until next time Thriving Launchers, keep thriving you all.
