#5 The most important thing in starting a new business - Get Customers!

CEO Bros - after hours

Episode #5

 

Main Themes:

• Customer Acquisition Strategies: The episode extensively covers different approaches to gaining new customers, ranging from direct outreach to leveraging existing networks and exploring new channels.

• The Value of Customers and Cost of Acquisition (CoA): A significant portion of the discussion revolves around understanding the financial implications of acquiring customers, including the importance of calculating and optimizing CoA.

• Customer vs. Client Distinction: Brian introduces a nuanced perspective on differentiating between "customers" and "clients," potentially highlighting the depth and nature of the relationship.

• The Importance of Understanding Customer Needs: The conversation emphasizes the necessity of identifying and addressing customer pain points and differentiating between needs and wants.

• Customer Retention and Core Business Protection: The hosts touch upon the significance of safeguarding existing customers and the core aspects of the business.

• Exploring Alternative Revenue Streams: The discussion briefly ventures into non-traditional approaches to generating value beyond direct customer transactions.

Most Important Ideas and Facts:

• Revenue as the Goal: Brian explicitly states the fundamental connection between customers and revenue, emphasizing the importance of monetization: 

• Cost of Acquisition Awareness: The episode emphasizes the importance of understanding the financial cost associated with gaining each new customer. This is reinforced by a reference to Kevin O'Leary's perspective on CoA from Shark Tank: 

• Understanding Customer Motivation: The hosts discuss the drivers behind purchasing decisions, emphasizing that customers have choices and businesses need to address a genuine need or want: 

• What pain do you solve, Is it a NEED or a WANT This highlights the importance of value proposition and problem-solving.

• Protecting the Core and Existing Clients: The hosts recognize the importance of retaining current customers and safeguarding the established aspects of the business: 

• Exploring Diverse Acquisition Channels: The conversation touches on various methods for reaching potential customers, 

• Considering Product Expansion: The idea of expanding the product line is briefly mentioned as a potential avenue for growth: 

• Referrals and Feedback: The episode acknowledges the value of customer feedback and referrals as organic ways to acquire new customers: 

Summary

Episode #5 "Getting Customers" is a practical and insightful discussion on the multifaceted aspects of customer acquisition and retention. The hosts draw upon their experiences and hypothetical situations to explore various strategies, emphasizing the importance of understanding customer needs, the financial implications of customer acquisition, and the value of both new and existing customers. The story of Brad’s engagement with Mark Cuban adds a layer of real-world entrepreneurial context to the discussion.