 Hello Aces, welcome back to module six, lesson number four, the four golden pillars in creating a consistent and predictable stream of revenue. As you already know, if you're just relying on one source of revenue, which is you're dying in, then most likely you're going to be out of business by now. That's the reason why we need to have four different golden pillars, four different streams of revenues coming in so then that way you can diversify to withstand any economic downturn. So make sure you guys pay attention. Now, before we dive into the four golden pillars, I need to share with you two terminologies first, and then these two terminologies would allow you to understand how you can achieve your goals a little bit better. And they first might seem very intimidating, confusing and complicated. However, as we go through each and every single one of them within our golden pillars and to provide you with an example, it becomes more and more clear on how you can execute them. But nonetheless, you can always replay this lesson to get more clarity as you work and as you work and progress. First terminology, OK, our objective and key results. I will what is the objective, state the objective as measured by what is the key result? OK, so first off, what is an objective you want to achieve within your business or within your campaign? Specifically, I want to create the best experience for my customers. And yet when you have this statement and when you have this objective, if you don't back it up with data, if you don't back it up with measurable results, then there's no way your team can be held accountable. There's no way you can be held accountable, which is the reason why we need to identify some of the key results that need to happen in order for you to say that you have created the best customer experience, which is the reason why we would set out metrics that measures the progress of your objective. Some of the metrics would be I'm going to increase my revisits from 4 percent to 10 percent, because if I have the best customer experience, then people will come back in again and again. So we're going to uplift that from 4 percent to 10 percent. That's a clear indicator that you have good customer service. Next up is Yelp rating. My current rating is probably at four, and I'm going to increase that to 4.5. And thus hitting our objective of creating a better customer experience. Same thing with service complaints. We're going to decrease that from 15 percent to 11 percent. And thus that shows that our objective is being met. These are just examples of metrics that I'm throwing out there. It really depends on what objectives that you have and the key results would follow. And once again, if this doesn't really make sense to you right now, it is OK because we're going to go through examples and it will become more and more clear and you can always come back to this lesson and re listen to what this truly means. And you're going to get more out of this. OK, OKR is not a concept that I just coined up. It is a concept that is coined by Andy Grove and it's used by companies like Google, Airbnb, Twitter, Microsoft. So then that way that creates the alignment and engagement within your team and allows you your team to all roll and sink to achieve that one objective. This is very powerful stuff if and when you can actually implement the OKR within your plans. Now, next up is KPI key performance indicator. So this is measurable values that shows your progress towards achieving your goal. So just think about this like your smart goals, the mini bite size chunks that allows you to see are you working closer to your objective? Are you working closer to hit your key metrics? Once again, we can always come back to this and we're going to go into an example right now. So let's go back to the four golden pillars that's going to help you create predictable and consistent sales. Number one, local business events, service, local business events. This is a huge diversified stream of revenue that a lot of people don't take into account. For example, Casual Fridays, customer appreciation day. And usually these businesses have a budget because they usually work into the culture that they want to pay back to their either their customers or their staff, and thus they will reach out to different restaurants or different parties to cater and to order food to thank their own team. What you need to do is to list up businesses around five kilometers radius of your restaurant and create an offer for servicing these businesses. Cold approach them by either direct mail, call them or send coupons to draw them in. For example, what we've offered to our local businesses are two free ice cream coupon with a corporate catering brochure. So basically we approach the branch manager of a bank that was close to our ice cream shop and we gave him two free ice cream coupon and our corporate catering brochure. So in that way, when they saw the brochure, they're like, oh, interesting, and I get two free ice cream. Sure, what is this brochure? And then they start reading. What we want to do is to increase our business this specific pillar by 10 percent of store revenue. OK, local business should account for more than 10 percent of our store revenue. This is our goal. OK, and this is our key results for us to increase our local business accounting. We need to make sure that our key results are 10 percent of store revenue. Now, because you wouldn't be able to calculate the 10 percent until the year is over, and that's the reason why we need KPI, KPIs, KPIs or short term goals that allows us to achieve the 10 percent store revenue, which is why every month we need to have at least four local businesses catering through us in order for us to consistently hit the goal of 10 percent store revenue. So, for example, Bank of America catering our ice cream sandwiches for their monthly meeting. And once we have that one business signed up, we just need to find three more. And every month, if and when we have four business caterings that come through our shop, then we're going to hit that local business accounting for 10 percent store revenue. Hopefully that makes a little bit more sense to you. Number two, second pillar is the event catering cater products to events. So for us, ice cream sandwiches, bubble teas for weddings, work functions, offers lunches and movie shoots. These are all great ideas that people would actually find our ice cream sandwiches and bubble tea of value of a good thing that they can give and and incentivize their team. So for you, identify two to three segments of events that you would cater to because you need to attack them, you need to reach out to them. And if I were to reach out to movie shoots, I'm going to reach out to all the production companies within my area and hound them day after day, cold, call them, email them, drop by. And this is the way for me to get into the production industry because time is limited. You need to just reach out to two to three different segments of events that you would cater to. For us, specifically our ice cream shop, we know the fact that our chances of success are much higher when it comes to weddings and corporate lunches. And that's what we focus on as our core segment that we reach out to. List out complimentary service providers and propose an affiliate program. So in this case, I would reach out to wedding planners, photographers, because these guys are complimentary services to weddings that are happening. And then I offer them a 10 percent kickback for every successful event that they offer. So I'll give you an example. My friend that does wedding photography, he he's shooting for a a couple for their whole wedding and he brought it up to the couple that he, you know, whatever friend that has an ice cream shop, they have amazing bubble tea line and amazing ice cream sandwich that would be good for your dessert bar. Do you want to check them out? And then he introduced us to the wedding guys. We matched and they loved our product and then they ordered 500 ice cream sandwiches from us. And because this whole deal went through, I paid my friend, who's a photographer, 10 percent as a kickback. Now, this becomes a win-win-win situation. My friend's happy because he earned an extra, what? That's like an extra 200 bucks. And the couple is happy because they get to have amazing food catered to the wedding. And we're happy because this expanded our reach. And when we're at the event, we have brochures that we have on their table. And the guests that arrived and attended their wedding saw how great our ice cream sandwiches and this acts as a really great marketing tool for their friend's wedding, perhaps. So this becomes a flywheel as we stack these items. So now it's time to talk about the OKR. What is the OKR? What is our objective? Our objective is to increase brand awareness by traffic count of 10 percent or more. Oops. There you go. Event catering accounting for 10 percent of store revenue. OK. Now, how do we calculate that? Hey, this will hit that 10 percent store revenue. Four event caterings per month. That's what our calculation is. So as long as we close four different caters per month, we're going to hit that 10 percent store revenue. Lift for accounting from the events. So this is why OKR and KPI is so important because with these metrics, now we can share with our team. Hey, guys, go out there and sign on for caters. If you don't sign on for caters, you're not doing your job. So they're going to go out there. They have a goal to achieve and thus they will achieve. They're much more likely to achieve the goal when they have a goal in mind. It's a very different story if you just tell them, hey, you know what? I want to increase our catering. How? Like what are metrics? What is what is successful? What is not successful? Is signing on to catering is happy or not? This is the reason why it is so important to have the OKR and KPI. Number three, cross promos with small and medium sized business, small, medium sized business that complement to what you have to offer. So once again, OKR is to increase our brand awareness and traffic count by more than 10 percent in the year. What does that mean as a KPI? What is how does that show up? Three collaboration events per month. OK, MOQ stands for minimum order quantity. OK, so basically it's just minimum. We need to hit three collab events in order for us to hit that 10 percent uplift. And it is an example of a collaboration with small business, small, medium sized business would be for us, let's say we work with a brand called Baby Macaroons and we create a special edition using their Macaroons. And on top of that, we retell their Macaroons at our store as consignment. This acts as a great win-win situation and allows our brand to be shown to their followers, their brand's followers and vice versa. And that's how we're going to be able to increase brand awareness by showing how versatile our ice cream shop is and being able to tap into their specific audience. Next up is discount programs. What does discount programs mean? Means to collaborate with clubs and associations to cross promote our brands. So first step you need to do is to identify the clubs, associations that have the similar profile to the people that go to your location. So, for example, if your avatar are college students, then consider reaching out to university student clubs. And that's exactly what we did. Let's tell all the clubs and propose an affiliate program. What is an affiliate program? It means that you oftentimes have to pay back their club for them bringing in business. For example, 10 percent back to the school clubs in exchange, they need to host one event per semester at a location. And why do we want to promote that? It is because when they host event at our location, they let their students know and when the students come to our location, they see that, oh, this is a pretty neat place. They have beautiful ice cream. They have great desserts, great experience. I'm going to come back with my friends outside of this event. And that's why we would want to partner up with these these associations. Now, you may be asking, how do I reach out to them? Well, get in touch with the clubs, president or external relations relations team. Oftentimes, they do have these positions and teams available, so make sure you reach out to them. Now, OKR, what is the OKR? What is the objective? Once again, it is to increase brand awareness for ice cream shop. And how do what is the key result that needs to happen in order for us to count this as a win, increase our traffic count by more than 10 percent. KPIs, what is a KPI that we can fight for that we can let our team know and to align on that, sign up 10 clubs per year and have at least one event per club held at our store so you can actually segregate that so then that way you're not pushing all the traffic to come into your store at once. And you always have this consistent stream of revenue coming through your doors. As an example, University Club codes a meet and greet at our ice cream shop and we provide 10 percent off to all their members. This becomes once again a win win situation for your brand and the restaurant as well or the club as well. When these four golden pillars stack on top of each other, you can now have a stream of revenue that you can count on that is predictable and is consistent. And that's the reason, sole reason. I can't say sole, but actually this is a very big reason why our ice cream shop is so popular and that's how we were able to grow by using these four pillars that stack on top of each other. Just imagine that if you're able to attain 10 percent uplift here, 10 percent uplift here, 10 percent uplift here, collaboratively, that's 40 percent increase in your revenue. That's huge when it comes down to it. Now it is your turn to create your OKRs and your KPIs for each pillar. Go out there and find 50 local businesses within five kilometers radius of your restaurant. Next up is to create 20 service providers that you can offer a win win situation and affiliate with. And then you're going to create a list of 20 small and medium sized businesses that has similar complimentary avatar as you do. So for us, ice cream, hey, macaroons, coffee is another one. These are all small businesses that you can collaborate with. Next up is to create a list of 10 clubs and associations that have the similar demographic as you do as well in the worksheet below. You can download the worksheet, the template, so then that way you guys can follow along and go through this lesson together. In this lesson, we've just shared with you the four golden pillars that has allowed us to pick up a lot of traction and to create this flow of ongoing, consistent customers, and that's what you need. You don't need that summer spike and then winter, no one comes. You want to have that consistent curve of people coming through your doors. So then that way your cash flow can be dependent on. Next up, we're going to create a loyalty program to stack on the four golden pillars. So then that way we get your customers to come back again and again. I'll see you guys in the next lesson.