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7 Vital Business Building Tips to Create Profitable Businesses

7 vital business building tips that are vital for building a business that is:

  • Sustainable.
  • Profitable.
  • Will eventually work without the business owner being there.

These are very much interrelated and therefore have no natural order but all are essential for success.

Business Tip 1 – The business must focus at least 50% of resources on Sales and Marketing.

All too often a business is set up by great technicians who have decided to set up their own business. They often think that if a business is set up with the best equipment and has the highest level of skills etc. it will sell itself. This is rarely true.

What is true is that an average or sometimes even a poor product will sell with great marketing. The reverse is rarely true. The world is full of products that have been technically brilliant, better than the competition and they simply didn’t sell enough to survive. For example we had the Betamax versus VHS back in the old days where Betamax was regarded as superior; Microsoft Windows versus IBM’s PS/2 we all know who won that one.

So if you are starting out in business and/or times are troubled for you, and that applies to many businesses, revisit your marketing plans and see how much time, money and effort you are putting in for sales and marketing versus product/service creation and delivery.

My advice is to spend half of your resource marketing and selling services or products to the markets. Then spend the other half producing and/ or delivering the product or service to customers. There is always a few % to go on admin and accounting but the focus needs to be ‘up front’ when times are hard or you are starting out.

Business Tip 2 – Set up at least 10 solid strategies for Marketing

Reduce your risks and setup up 10 great marketing streams for getting business. Many businesses get one or 2 good marketing streams and stop there. Don’t stop, develop more, you never know when stream will die on you. It is surprising how many businesses are wasting money on marketing that doesn’t work and they don’t know it because they do not measure what is going on.

Similarly make sure no more than 10% of your business comes from 1 company. The world is full of businesses who lost their key contract which accounted for 50% or more of the business and struggled to recover.

To do all of this you must be able to track how and where your business comes from. This leads us nicely to my next business building tip.

Business Tip 3 – Measure Test and Measure

I abbreviate this as M-T-M. You need to have key performance indicators (KPIs) at every stage of the business. I have already mentioned 2 of these above:

  • Understanding what marketing works and what doesn’t. Where it comes from and how.
  • Understanding what percentage of your business in units and money comes from what customers.

A few more essential KPIs are:

  • Nett and gross Profit
  • Total income
  • Profit margins
  • Cost of sale
  • Cost of production or service
  • Cash flow
  • Real measures of product or service quality. These are often hard to define but they can be done.
  • Real measures of customer satisfaction. These are often hard to define but they can be done.

Again I am staggered how many business owners and managers do not have these figures to hand on a monthly basis. Many leave them to the year end accountant to do which is usually about 18 months too late! If this is the case with you, then every decision you make is probably a guess!

Business Tip 4 – Systemise

By systemise I mean create systems and procedures to automate and standardise processes. There some great golden rules within this business building tip:

  • Standardise the routine to create good service and utilise the spare capacity you free up to create exceptional service.
  • Systemisation means procedures, computerisation and automation not just computers.
  • Procedures means the written word but preferable to this are: pictures, diagrams, audio, and video.
  • If you use computers for systemisation do not try to systemise a mess. Sort out the mess first. If not you are likely to just make a bigger mess quicker.
  • If you use computers for systemisation apply the rule: data goes in once and is used many times. Avoid having a string of spreadsheets where you keep re-keying the same data in over and over again. This is poor systemisation and leads to lots of errors.
  • Good systems make KPIs and measure test and measurement easier. Look for the opportunities to extract useful KPIs easily.
  • Systemise before recruiting then the team will have a system to follow. Do it the other way round and the business owner and managers will burn energy chasing the teams because the teams simply do not know what is going on or how to do it.

Business Tip 5 – Use your customers wisely, don’t waste them.

  • Customers are gold use them to build a strong referral marketing stream.
  • Keep in contact with your customers, this can be by newsletters, new special offers, new product launches and you portfolio of products on offer.
  • Treat customers better than new leads and when they return to buy more treat them exceptionally well.
  • Build trust with customers on a continuous basis, never do anything to harm that trust.

Business Tip 6 – Build great motivated teams

* Systemise before you let the large teams loose in your business. If you don’t they will burn you out.

  • Look at teams in a wider sense. Teams are another key ingredient of growing a business. However I recommend that you look at teams in a wider sense than just those people you employ directly. For instance your accountant and a key supplier can form a team alongside your business. Partnerships with other business can build very powerful teams. If fact these type of teams can often be more motivated than those you recruit to work for you.
  • Recruit on basic skills then attitude. If you do recruit your own employees take the time to recruit properly and look for motivated people with the right attitude. It is easier to teach skills than change attitude.
  • Train you team well.

Well motivated, well trained and well lead teams can be 100 times more productive than the worst. Look at a league of football teams and see the difference in performance and earnings.

Business Tip 7 – Work on yourself as the leader.

  • Learn to be a great leader.
  • Do not let yourself become the barrier to your business growing. Too often it is the leader that has become the weakest link in the business. Like a chain a business is only as strong as the weakest link. Others have caught up with the leader. The leader is pushing employees down preventing their growth and their development which ultimately stops growth in the business.

James E Rohn said “Never wish your life were easier … Wish that YOU were better… Work harder on yourself than you do on job …”

So to summarise these 7 business tips:

  • You must focus equal resources to marketing and selling a product or service as to making it and delivering it to the customer.
  • Build 10 solid marketing streams to reduce your business risks to changing markets and patterns. Do the same with customer streams.
  • Measure test and measure as much as you can.
  • Systemise the business before you build a team . Systemise the routing and identify the exceptions to offer exceptional service.
  • Use your customers wisely.
  • Build great teams with the right attitude, training and motivation.
  • Work on yourself harder than you do on you r business! Be a great leader.

Why not write the above summary of business tips down and work on 1 or 2 aspects over the next 90 days. Scientists have shown that it takes 25-30 days to change a belief or habit.

What Stops You From Starting Your Own Home Based Business?

Home based businesses are popular because they offer the business owner freedom to work when, where, and how you want. You get to control your own life and to manage your business simultaneously. If successful, you will also find financial freedom from the low pay of your previous job.

Due to the poor economy, people all over the world are seeking ways to improve their life styles. They want more money and more time to enjoy it. However, a large majority will never get past the dreaming stage due to some real or perceived fear of owning their own home based business.

With the huge potential to eliminate your financial problems and to improve your lifestyle, why then are you afraid to start a home business? What stops you? After all, it’s an excellent way to generate good income and live a peaceful life without the normal job stress created when you have an 8-5 hour job and a boss watching your every move.

Major Reasons

Here are a few reasons why you and thousands of other people hesitate to start up a home business:

o Fear of Loss of Money. One of the major reasons could be the fear of losing money that you would have to invest. Money plays an important role in starting a business. The fear of losing your hard earned money is so high that you may be afraid to even try because of all the horror stories that you have heard about business failures. However, keep in mind that the start up cost for a home based internet business does not cost anywhere near what it would cost you to start a brick and mortar business and you can make a lot more income in the process.

o Fear of Responsibility. As a business owner you will have a lot of responsibilities. If you suddenly make the leap from employee to boss, you may find that you are ill prepared to accept the new responsibilities. You may have a constant fear that if something goes wrong, it will be your fault. To get past this fear, you will need to focus on why you want to start up a home business. What is your burning dream that keeps you motivated and looking forward to owning your own business? Once your dream is big enough and real enough in your mind, only then will you begin to understand the need for you to accept the responsibility of owning your own home business.

o Lack of Patience. You may want to quit when you don’t see immediate income. It is normal for you to be overly excited when you start your new business and you should be. However, you need to maintain your patience and settle in for the long haul if you want to experience success. There is no such thing as a get rich quick business even though there are thousands of scam artists promoting such business opportunities every where you look now days. Run from these people like they have the plague because they are only after your money and could care less if you succeed or not. Once they have your money, they will disappear.

o Lack of Business Knowledge and Skills. Lack of knowledge about the product or service that you are selling and the lack of the skills required to manage your business is yet another reason why you may be hesitant to start a home business. However, this can be easily overcome by studying your product and/or service to get a full understanding of the benefits that the customer will derive from using them. Regarding skills, you can easily remove this hurdle by taking classes and attending training conferences and other similar learning functions. Not everyone has each and every skill needed to operate their business on day one. If you don’t have time to get yourself up to par on day one of your business grand opening, then you may want to consider hiring someone with the skills and knowledge that you are lacking to fill in the void until such time that you to feel comfortable in doing it yourself.

o Fear of Get Rich Schemes. Get rich quick schemes are everywhere you look now days and have caused most people to have a negative attitude about home businesses. If you do not take the time to thoroughly research your product and/or services for your specific business prior to investing in it you may find out to late that it is nothing more than a scam and the only person getting rich is the promoter. However, with a little serious due diligence on your part, you will soon be able to separate the scammers from the serious professionals. Keep in mind that there is risk in any business that you may want to start up. Every day people make wrong investments in wrong places and later repent their errors. No business is risk free.

o Lack of Motivation. Lack of motivation also keeps millions of people from starting their own business. To keep yourself motivated you have to have a dream and a gut wrenching desire to make it become a reality. It has to be a burning desire so strong that you concentrate on making it happen with your every thought every day. By developing that mindset, you will always be motivated to do whatever it takes legally to make your home business a success.

Finally, you will need to cultivate a positive attitude towards your business and your customers. You will need to adhere to a strict policy of fairness and to always give more value than you receive back. A positive attitude and a strong customer service policy will help you to achieve your goal of having a successful home based business.

5 Ways a Turnkey Internet Business Jump Starts Internet Newcomers Success

With the recent downturn in the economy many are considering Internet business opportunities for the first time as a source of additional income or as a way to replace lost income. And for many, the options are too endless and sometimes just too overwhelming and unfortunately they quit before they get started or realize the rewards from their labor.

A turnkey Internet business, also known as a business-in-a-box, is an ideal way to end newcomer overwhelm and provide the starting blocks for a good internet business. Similar to a franchise without the bricks and mortar, exorbitant cost and inflexibility; this type of business provides infrastructure, guidance and support providing a nice foundation to begin a new online business.

Following are 5 ways a turnkey Internet business can jump start Internet newcomers success:

  1. Established business systems – Like a franchise, a legitimate turnkey Internet business provides sales and business systems and processes that are already proven to succeed. This eliminates the need to research endlessly and blindly program after program looking for successful business strategies. Further established systems will save valuable time normally spent testing the effectiveness of new systems.
  2. Shortened learning curve -Navigating the ocean of money making strategies and learning the nuances of all the different Internet marketing techniques can be hugely time consuming and overwhelming. A turnkey program should provide established training programs, step-by-step processes and all the necessary tools to succeed. A blueprint for building the business helps conquer overwhelm and kick start success and profit.
  3. Expert support -Most turnkey Internet businesses also offer client support. Though most are independent business owners, there is no need to be alone. Owners can be a part of a community and learn from other individuals who are already succeeding with the Internet business that they are beginning. Unlike the other options available, if participants reach a point of overwhelm or question their direction they are in most cases an email away from getting sound advice.
  4. Flexibility and freedom – Many turnkey Internet businesses also have designed automated sales and administration systems to help put a new business on autopilot. This gives the business owner the freedom to spend time away from the store while the business remains available and potentially earning income 24/7. With automated systems established as a foundation, focus can be placed on growing the business rather than establishing it.
  5. Potentially quick profits – Unlike a traditional franchise the initial investment is generally relatively small but the return can be nearly immediate and significant because much of the costly and timely trial and error of a start up business has been taken care of upfront. A sound investment if the established systems are used, there is genuine effort and work put into the business and the available expert resources are utilized. In fact, many turnkey internet businesses when initial start up is completed properly can earn passive income for years to come for their owners.

The turnkey Internet business is not the solution for everyone. Some enjoy the challenge of creating their own products, establishing their own business processes and sales systems and personalized branding. Similar to opening a My Own Restaurant instead of a McDonald’s to complete the analogy.

Many will be pleased to end the overwhelm and enjoy the idea of establishing a new online business quickly using previously established processes and systems. Keeping in mind that they may be limited a bit by turnkey internet business brand and guidelines.

Regardless of the option that you choose to pursue online, make sure that it is one that plays to your strengths and helps to eliminate rather than worsen your frustrations. You most certainly cannot profit if you quit. If you find the option that best suits you, it will be much easier for you to stick with it and succeed.