Investing In Knowledge
If you are like many entrepreneurs, then you know that it is essential to have a good deal of knowledge when it comes to running your business.
As we have talked about, it is important to make sure that those that are providing you with the necessary information are doing so without taking all of your money just so that you can spend more.
For example, some of the most common mistakes the entrepreneurs that are just starting out make is that they just keep purchasing information. This is especially true of those that are starting a business online.
There is no doubt that you do need to have a good amount of knowledge to make something happen. You need to know how to get started, you need to know what steps to take and you need to know just where to do all of this.
One thing that you should take into consideration is your ability to make decisions. Once you have purchased the latest tell all kit, realize that you are ready to make some decisions.
If you purchase one kit or program and see another that seems to offer some additional benefits, you may be tempted purchase that one too. After all, it can’t hurt to have some more information, can it?
There are several things that you can do to make this happen for you. Remember this principle.
If you find yourself purchasing one product after another product, you are not thinking about your next productive move, but rather holding yourself up.
If you purchase a product to benefit your business, it is essential for you to use it and get the most out of it prior to moving on to the next purchase.
Making It Count
In later chapters we will talk about the fact that you need to manage your money closely, but for now, realize that the investment in any asset or tool to benefit your business needs to be used fully for it to be a wise investment.
No matter what business you are in, if you do not take the time to invest in a business product wisely, you are literally throwing your profit out.
If you fall victim to all of those ploys to purchase this great kit or that sure fire method of making a million dollars, you sure are helping someone else to make that million dollars.
Now, that is not to say that you shouldn’t purchase any of them. Instead, select the one that provides the best resources for you, invest in it wisely and then use it completely, incorporating all that needs to be incorporated into the plan.
When you do this, your investment is beneficial to your business. If you just move on to the next thing, you find yourself facing not benefits but pitfalls and an empty wallet to go with it.
Making Wise Choices
In our next chapters, we will touch on some very important assets including your cash flow. But, before we do that, we need to touch on the principal of making the right decisions regarding your business.
How do you make decisions? Do you make spur of the moment choices because that is the way that you feel that day?
Do you work hard at finding the right solution, so much so that by the time you make the decision it is too late?
If you do these things, you are not benefiting your business, but rather letting the cards fall where they will. To help you to make the right choices, follow these steps and tips to securing the right decisions without letting them get past you.
Decision Making Tips
Making a decision is hard work. Here are some tips to help you.
1. Invest time in learning about the possible product or problem that you are facing. If you are trying to decide on whether to purchase a product, consider what it will do to enhance your business’s performance. What can it do for you?
2. Spend some time researching possible solutions, both what you have found and what you have not. What can it do for your problem? What is the lowest cost you can find? What are the potential pitfalls of this item?
3. After this is done, determine if the investment is worth it to your own well-being or to your business’s. Waiting until after you learn more about the product will allow a decision to form as a conclusion to the research you have done.
4. If you can’t decide within a few days, then perhaps you are too leery of this item or choice to determine it is right for your business. Let it go and forget it. Or, find another option. Do not dwell on it.
Making the right decisions also means that you need to realize your current state of affairs.
If your business is not pulling in profits because it does not have the necessary tools, it is time to invest in some new tools otherwise your business will not be there long enough for you to worry about it.
If your business is doing okay and there is no hang up, then do not invest in something that does not have a direct return on your profit margin.
Most entrepreneurs have tons of people coming to them offering them a wide range of different benefits, products, and services because, like you, they are looking to make their business work. Don’t fall for these lures and savvy businessmen that think they can solve your problems.
Although it may seem difficult to make good decisions in relation to the business that you have, it is imperative that you learn to trust yourself. If you do not trust your decisions, you can’t run a business.
This too is a principal that you need to realize: If you do not trust yourself, you can’t run a successful business.
Growth Success Without Potential Waste
One of the long-term things that every business owner must think about is growth.
Growth is the expansion of your business to the next level. This could mean expanding your business to include more products, to do more things, or to grow physically by adding more locations.
Growth is what holds the potential for the most success in the long-term. An entrepreneur can find many benefits for themselves if they can manage to grow carefully, without going too far or stretching too thin too fast.
If that sounds difficult to do, it can be. Many businesses have failed by expanding too quickly and not having enough of the market share to hold them together. On the other hand, there are plenty of businesses out there that have not grown as much as they could and now are missing out on the potential larger profit margin.
Growing Too Fast
One of the worst things that you can do for your business is to grow too fast. If you do not have the assets and the cash flow to back up this type of major expansion, you may find yourself facing a number of problems just maintaining your business rather than worrying about expanding it.
The risk of failure due to over expanding too quickly is that you just may not be able to handle the obligations of several locations or such a large corporation. Many of the larger corporations that have faced this have fallen through because of the enormous expense of taking on another building, another payroll, another unit.
Yet, the smaller business owner does not face this huge number of risks as the larger corporation. But!
It is important to make sure that you invest wisely in growth and not without investing time first. Determining where your potential benefits are is the first key to success. In addition, a good look at what the possibilities are is in order.
Are You Ready To Grow?
Those that are interested in finding the right solution in the terms of growth are doing the right thing. Remember though that it is important to decide in the right frame of mind, and with the right amount of research done first.
In terms of growing, what the right choice is happens to be up to you individually. Ask these questions of your success:
1. Does your business have the cash flow to support not only this functioning location, but another one as well?
2. If you are expanding, what makes you believe that this expansion will serve your business well?
3. What is the likely expense of growing and does the business have the necessary means to protecting and covering that cost?
All of these things are crucial to your business’s success in the growth factor. But you also need to ensure that you do not limit your growth with not enough opportunity either.
Don’t Limit It
The mistake of many business owners is that they do not put their foot out there and expand fast enough or at all. While it is essential not to move too fast, it is just as important to consider if you are moving just too slow for benefit either.
To understand this factor, you again need to turn to your business. Are you getting all that you can from it? Can you do more or get a better bottom line if you do grow in some shape?
To learn the right amount of growth for your business, you can do test market studies, invest in surveys, or just start slowly and work up to it. The amount that you put into your business is really up to you and to how well the business has been doing to this point.
A bad business that is not doing well in one location may not be able to do well elsewhere either.
A good business that is thriving may be hindered by not moving it.
Of course, the opposite is true too. Research is the best way to determine where growth stands in your business.
Chapter 9: Managing Money Principles
What makes you profitable as a business owner? In the next chapter, we will look at the ways in which you must manage your cash flow and assets if you plan to have money in your pocket in the long-term.
Do you have the ability to think about, analyze and then finally decide on business related decisions?
As we have discussed, your ability to do these things is what will hold you back or launch you forward today as well as well into the future. Now, take those ideas and determine just how well they fit into your ability to make decisions about your business success where it counts: the profit margin.
Throughout this chapter will we will talk about several aspects in detail, allowing you to fully understand what you need to do to be successful in regards to your business’s profitability.
Managing Your Money
Do you have what it takes to manage your money? If not, it is time to find someone that can and will do it for you. Without tight control over the finances in your business, there is no telling what the future may or may not hold. That does not mean that you can’t spend money. This is a huge mistake that people make.
Instead, as the entrepreneur and business owner, you need to learn to spend money the right way instead.
The first thing for you to do is to determine a budget for your business success. This should be an overall budget at first. Things to consider include:
Managing expenses that will continue to keep the business up and running well.
Managing your business’s debt due to growth or to startup costs (to pay them down successfully.)
Managing profit to if available must be done with an idea of how much will be spent on investing back into the business and what will go towards other beneficial needs the business has.
The budget should be done carefully, with a good deal of thought placed on each of these areas. Instead of a dollar mount, the budget of the business should be done by percentages.
Perhaps 20 percent of the profit will go towards investment back into the business whereas the rest of the profit will go to paying down debt. Whatever percentages you are comfortable with should be taken into consideration here.
Beyond the budget aspect of managing funds is the strictly organization aspects that need to be taken care of. Good quality, detailed accounting and bookkeeping needs to be done to manage the business’s overall success and funds to a T.
In addition, there needs to measures put in place to manage unexpected expenses and even just making sure that everything is accounted for.
Although this seems obvious to note, plenty of businesses fail because of poor money management in the beginning stages. Do not get caught in the “I don’t have time now, I will do it later” scam. Without doing this from the beginning, it will not happen throughout your business.
Your Cash Flow
If you are a small business owner, it is even more important to do this simply because there is nothing and no one behind you to support that bad year or that big accident that has happened. Loans are only so good, and they are not any good if you can’t get them.
The ability to maintain your cash flow is the key to having a successfully and long-term business. Without your careful management of cash flow, your business will not make it through leaner times or even the better times for that matter.
How do you do this? There are several things that you need to take into consideration here.
First off, you should make sure that as the entrepreneur you have a good strong hand in the cash flow of your business. You should be able to personally monitor it every day.
Does this sound like too much? If you do not do this, you can’t possibly know where your business stands on any given day. That can lead to potential long-term problems with your success.
Carefully consider each expenditure that you make. As an entrepreneur, you need to make these decisions wisely. Just as growing too fast can hurt you, so can not having the cash flow to support your business.
In addition, you should personally monitor your budget, your expenses, your profit and your ability to use every dollar that you have wisely. That is what you have those budgets in place for, after all. Use them, keep at them and work each dollar to get the most out of it.
2 Principles To Remember
When it comes to business success, you will need to consider these 2 principles as far as how money management goes.
First, consider this: You should only be spending money when there is a potential to earn money from that expense.
It is self-explanatory, isn’t it? You should not be making an investment in your business, especially a small business owner, unless it will allow you to make more money as the end and direct result.
Secondly, consider this: “If it is not revenue, it is an expense.”
How does that play into the business that you are currently running? Does it offer you the ability to make ends meet successfully? Do you make purchases without careful thought about those dollars? If it is not revenue to you, it is an expense.
Managing your cash flow successfully will allow your business to bank funds instead of to lose funds. When you do this successfully, your business has the potential to be a long-term success. If you want to be there in the future, manage your cash successfully, with an eye on just about every dollar you have.
It’s Not Being Cheap, Its Being Smart
Although it may sound like we are telling you to be frugal or cheap with your business, you need to insure that the funds that you are spending will be funds that are spent wisely, without waste.
How should you be frugal (that’s a better name for it!) so much so that you will be able to find true success from doing so?
Determine how you spend every dollar of your business’s budget.
Is that dollar being spent the best way that it can be? Does whatever it is being spent on benefit your bottom line?
Is there a better way to spend that dollar? Can you get more for it with another company or service or another opportunity?
Is there a way to save your money better, with a better return on it?
These are questions that any business owner should be considering each and every day that he owns his business. What can he do better to save more in his business for his business?
Why do this?
How many millionaires or even billionaires have you heard of that still drive their old, beat up cars? Why do they do that when they can afford to have much more beautiful and expensive cars?
It is not because they do not want to spend money or that they like being cheap. The benefit here actually comes from the fact that they like to save. Saving cash for your business is a great way to find true success because you will have those funds to use time and time again when you do need them.
The founder of Wal-Mart, Sam Walton, was worth $25 billion dollars at one point in his career. Would you believe that even with that type of worth he still drove his old, pickup truck into the job each day? Being frugal has its rewards as this is obviously one of the main factors that led him to having a net worth of $25,000,000,000.
When you are frugal, your business will prosper, year after year. If you are a spender, you won’t have the funds to allow that to happen year after year, will you?
All of these money savings and cash handling tips may not seem like that big of a deal to you. If that is the case, you are already doing them and finding success with it, or you are wasting money and not achieving the success that you already want.
Yet, managing your funds wisely is one of the key components to your success in a small business. Every entrepreneur must take the time to do this or they will find themselves without the benefits that they need so badly.
In the end, is it worth being a bit frugal to reach that huge, multi-billion-dollar net worth? There is no car in this world that can make that type of promise to you, can it?
Make sure you install these money managing benefits and principals into your daily routine and long-term goals within your business.
Chapter 10: Marketing For True Success
If you are an entrepreneur, marketing is something that is in your blood; at least it should be there if you plan to have customers at all.
Yet, do you market your business for true success and long-term benefits?
If you think that you do, you may not truly understand the true potential of the right marketing tools.
What is marketing? Marketing is what draws a customer to your business. You need to let others out there know that you are there and ready and willing to provide a service to them.
That basic definition is not nearly enough to pull you through the entire process of marketing for your business success, though.
If you want long-term success, take marketing much more seriously and follow these tips for various aspects of marketing.
Determine Your Products Potential
Before you can be successful at marketing your business, you must take a good amount of time to determine what it is about what you have, that others do want.
In other words, what is it that your product provides? A successful business will offer some type of immediate satisfaction for a need that someone has. You should consider this even before you get into business. What is it that your product has the potential of solving or filling the need of?
In addition to this, you need to determine how it can offer these things to your customer in such a way as to better their life. Perhaps you can offer them something that solves a problem that they have but it still is something that is affordable to remedy that solution.
Having a clearly defined benefit to market is quite essential to getting the most from your product. People want to know, “What will it do for me?” and “Why should I purchase this over something else?”
When you can find out how this plays a role in your product’s abilities, you can see the right course of marketing that product. Answering those questions is what you must do to find defined success here.
Pricing Matters Too
The next objective to take into consideration is that of pricing. When it comes to marketing, you may not think of the price that you put onto your product, but this does matter too. People are driven by sales and deals. They like a product that can provide them with the ability to solve their need but to do so in a cost-effective manner.
Without the right pricing, it makes no difference how you market the product in the end.
What are people looking for when it comes to pricing of a product or service? They want something that is fair, not something that will cause them to go broke. In addition, most people understand full well that there is a need for the business to turn a profit. The problem comes when they are being taken advantage of.
In addition, competition matters here too. If your product is better than another, perhaps it should be more, but it shouldn’t be outrageous because, if it is, no one will bother with it.
Take into consideration its ability to be called a Unique Selling Proposition. This means that it will have similar but at least some unique features that will allow it to be priced in competition to other products.
Of course, as we mentioned, your product must fill the need of someone out there. But, if there are 5 different products doing that, it can be hard for you to find your niche. Therefore, you must create for yourself a unique quality that will propel your marketing and your pricing.
What makes your product better, in other words?
If you are a new business owner, for example, and are looking for a new product to invest in, you may not want to try to come up with your own product, own service or other component. Rather, you may just decide that taking something that is already on the market and finding a way to make it even better, or better priced, is the right way to go.
Throughout this chapter we have talked about ways that you can market your business successfully. Now, take into consideration your sales benefits.
Can you say that when each one of your employees walks in the door their goal is to satisfy a customer?
Here’s what we mean. If you plan to set out and make a profit, then your goal is to just make the most of the business you get.
But, what if you set out to please every customer? Then, you would not only be getting that sale, but you are also getting to keep that customer coming back time and time again.
Since we are talking about long-term goals and success, it makes sense to insure that your goal in sales is to be the very best at what you to in order to please your customer so much so that he does not even consider going elsewhere for his needs.
In your business, you need to keep your marketing and sales techniques focused on creating as well as keeping your customer.
Sales For Success
Taking this one step further, you also need to take into consideration your sales abilities. As a successful entrepreneur, you need to carefully consider how you are selling, how effective it is as well as how you can improve it in the short and long-term.
If you don’t make sales, your business will not be successful.
As the business owner, you must be able to sell yourself. Are you the business person that is approachable, likeable, friendly, educated, and dedicated?
Or are you the guy/girl they all run away from when they walk into your door? Selling yourself as a trusted resource for information and product is the best way to become the go to guy.
In addition to this, you also need to effectively sell your product to your customer. This too goes along with marketing your business for success.
Principles To Remember & Use
1. Start your business with your eyes geared towards your long-term success.
2. Set and maintain goals that can be accomplished with long-term objectives.
3. Manage growth carefully, without hindering your long-term benefits.
4. Understand your market and how you belong in it.
5. Be the trend setter, cautiously.
6. Learn from both the good and bad of your past.
7. Invest wisely, decide wisely too.
8. Grow wisely without waste.
9. Manage your funds wisely, tightly, frugally, carefully.
10. Learn to market your business correctly, effectively.
In a world that is focused on the here and now, it is crucial for your own well-being to keep an eye on your future.
When, you use wise business practices like the ones that we have talked about on this post, your goals wind up being quite beneficial. Not only can you find success for your business today, but the long-term future of your business is more secure.
It does not matter if your business is huge and worth billions of dollars or if it a brand-new business barely off its feet. The goal is to give it the nurturing principles that can help it to grow and to prosper.
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