5 Tips for Negotiating with Suppliers

negotiating with suppliers

How do you handle negotiating with suppliers? Any business owner needs to have prerequisite skill requirements and one of the most important and actually the most critical, we can say, is communication skills. In leading a business and pursuing its goals and objectives, effective communication is key. Whether you are speaking or writing to colleagues, clients, or your suppliers, the art of communication needs to be applied to ensure a smooth flow of conversation, elicit adherence to your command or order, and eventually materialize your intent and desired outcomes. Fostering good business communication skills pay off with a healthy working relationship between you and your stakeholders. This the ultimate roadway to improving everyone’s productivity, efficiency, and morale.

The biggest challenge, however, in business communication is the need for negotiating. In a textbook definition, negotiations are a way to resolve disputes and it is often associated with various terminologies like settlement, bargaining, agreement, and collaboration. While these words pose a heavy and taxing connotation, they should be taken lightly and positively as any negotiation indicates a chance to turn tables and leverage the business game. A successful negotiation, especially with suppliers, can have a positive effect on your company’s financial gains or simply improve the quality of the goods and services you deliver.

Often, supplier negotiations are a little tricky and are tagged a mind game because suppliers are put at a superior level in consideration of their power over the buyer. Because of this, they might take control of your dealings by pressuring you, raising prices, lowering the quality of the products, or reduce product availability.

Luckily, you have this list of negotiating tips to ensure you can shake hands with your suppliers and close a deal that is favorable to you.

5 Easy Steps to Negotiating With Suppliers

Invest in rapport and positive feedback.

Like you would with a client, you must also put an effort into building a good work relationship with your suppliers. In building rapport, suppliers can be provided with the idea that it is not only their business that is of interest to you but their professional companionship as well. Any kind of relationship guarantees loyalty and this is a great way to surface that subliminally. Meet your supplier face-to-face and keep your conversation within a 60-40 rate. Sixty percent business and forty percent personal. Halfway through, throw in positive feedbacks you have heard and what impressed you just so that he knows your considerations in tapping them. Perhaps you can also express that you are interested in how they manufacture their goods so you can be invited over or their plans for development and expansion. While you are at it, you can reciprocate this with an invitation to some of your company parties or events to ensure he understands that you do not just always mean business but a genuine partnership.

Do your research and expand your options.

However, keep it to yourself. Let your research be your guide whether or not you are making a good deal out of your negotiations with your supplier. Research should always be taken to your advantage especially for your position in the conversation. It pays to know if the price is worth negotiating for or when the other suppliers will not make it hard for you. It is still business anyway. If it is a hard sell or maybe after 2 or 3 meetings with them, respectfully mention that you will also get a quote from other suppliers and make decisions based on competitive pricing. That is if you find them too stiff or tough.

Tell the supplier what is in your deal for them.

In your meetings, you might want to cite ways where both of you can benefit from the deal you are offering and you can also indicate this in your agreement. Suppliers like early payers so you can capitalize on this advantage in your offer. Tell them you can pay early, give a huge fraction of the sum for the down payment, have him offer a discount for bulk purchases, and other ways that he might find a great benefit from. In terms of delivery, maybe he can let you have the price you want if you will be the one to shoulder and arrange the pick up of goods on your own. If you can place an order early and do not require fast turnarounds, it is more likely that they will keep your business. If you can make them understand that dealing with you can be much lighter than their other partners, it will be easier for them to accept your offer.

Be straightforward about your offer.

Suppliers appreciate it when you are straightforward especially if they are always after time and money. If they value any sale, they would make it possible with your deal. After your introduction, you can tell them how much your budget is. This can help them make a plan on how they can work on it and help you. Let them know the areas where you can allow a healthy compromise.

Allow time for both of you to think it through.

Normally, suppliers would ask you about your lead time and schedule and you might want to share with them an honest and accurate timetable so they can also provide you with their projection. In your meetings with them, ensure that all the information you think they might need in making a decision is provided so that they can go back to their office and specifically tailor an offer for you. Allow them time to process everything. Of course, they do not want to say yes right away and then bail out of it. Take this time, as well, to make a backup plan in case they might turn your offer down.

Negotiating with suppliers is vital to the success of your business. Without them, you will not have anything to deliver to your clients. This is why you must let your silver tongue roll and do its magic. Be mindful of how they react to your statements and ensure each meeting warrants a negotiation. If you noticed a certain disinterest at the onset of your conversation, you might have a hard time but if it seemed like they are open to some compromise, the negotiation will be worth the try.

Here’s an article about improving your cash in your business.

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Natasha Barbeyto-Castaño is a beauty, wellness, and lifestyle writer. She took up Fashion Design and Merchandising in college and was hired as a personal shopper for a high-end department store right after graduating. Writing for the beauty and fashion sections of a society magazine and being head of content for a clothing company kept her busy before getting married and having a little boy. She learned to read at the age of 3 and wants her son to grow up sharing the same love for books. Nowadays, this organic wellness nut and attachment parenting advocate balances working from home and being a housewife. She enjoys watching psychological thrillers and foreign-language films with her husband during her free time.

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How To Grow the Average Order Value of Your Online Business

online business

All online businesses want to grow revenue. Most marketers think that the best way to achieve this goal is to find more customers, but it’s not the only approach that can help, and it may not necessarily be the best solution. Online business can increase their revenue by attracting new customers, but customer acquisition requires some investments, and sometimes, it makes sense to approach the problem in a different way. For example, you can also increase revenue by increasing the average order value.

Average Order Value (AOV), also known as Average Basket Value (ABV) is a parameter that has a direct impact on your revenue. If you focus your efforts on your AOV, you’ll be able to get more value from your existing customers instead of trying to get new ones. Therefore, you’ll be able to grow your revenue while also saving costs associated with advertising and marketing. Increasing AOV is a method of sustainable growth. Although this method can be very beneficial for businesses, not all marketers know how to use it properly. Therefore, we decided to create this quick guide that might help you get started.

What Average Order Value Is

Average Order Value is one of the most important metrics for many online businesses, especially those from the eCommerce sector. Basically, AOV is exactly what it sounds like: average money you get for every order during a certain period of time. AOV may vary not only across industries but also depending on the platform. For instance, travel businesses have AOV of $392 from desktop users, and this figure changes to $250 when it comes to mobile. Similarly, fashion businesses have AOV of $109 and $73 on desktop and mobile, respectively.

To calculate your AOV, you should divide your total revenue by the total number of orders. For example, if your eCommerce store’s revenue was $21,000 this month, and you had 1,000 orders, it means that your average order value was $21. AOV is a valuable indicator of business performance that enables you to evaluate your customers’ preferences and purchasing habits. Just like other metrics, you can measure AOV for any period of time. Most online businesses, however, calculate their monthly moving average.

What Makes AOV Important

If you’re still not sure why we decided to dedicate a whole article to AOV, here is the reason. Increasing AOV enables you to get more revenue from the same number of customers so you don’t need to put a lot of effort into acquisition. You can save costs associated with customer acquisition while also growing the revenue so AOV optimization is a great approach that can turn out to be very helpful for marketers that are looking for growth opportunities.

Evaluating your online business’s average order value enables you to evaluate the effectiveness of your overall marketing efforts, as well as your pricing policy. Besides, AOV enables you to measure the value of individual customers in the long term. AOV can also serve as a benchmark of your customers’ behavior so you can use this indicator to set goals, develop strategies, and evaluate these strategies’ performance.

Sometimes, marketers on an online business may choose not the best solutions in an attempt to maximize revenue. For example, marketers often put a lot of effort into driving more traffic to a website, while increasing their AOV would make a bigger impact and enable them to get more profit. You might need to invest a lot of money, time, and effort into increasing your website traffic, while increasing AOV will cost you nothing. Given that each order is associated with a certain transaction cost, increasing AOV enables you to increase your profits and to drive direct revenue because customers are already purchasing something from you.

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How To Increase Your Average Order Value With Your Online Business

There are many strategies that can help you increase your average order value. Basically, all these strategies are aimed at making your customers spend more money. For example, they might buy more expensive products than they planned, or they may also purchase more products. You can optimize your average order value at every stage of your sales funnel in your online business.

For example, you can encourage your customers to purchase additional products related to those they’ve already added to their shopping carts — there are many products people might forget about even though they may need them. If someone purchases an electronic device, you can offer batteries, and if someone buys a lamp, you can offer light bulbs. Besides, you may offer better, more expensive alternatives to the products that your customers choose.

You can motivate your customers to spend more by using different merchandising approaches. You may display a great selection of products in a way that will motivate them to make an additional purchase. Besides, you can use direct incentives, such as free shipping. Most often, online businesses increase their AOV by using methods based on cross-selling, upselling, coupons, and volume discounts. You may also make a donation to a non-profit whenever your customers spend a certain amount of money and offer free shipping or return policy for more expensive items.

To use such strategies effectively, you can segment your customers into several groups. “For instance, some people tend to spend a lot of money every time they visit your store, while others may only make small purchases. Besides, people may order something from you more or less frequently,” explains Ann Tyson, a digital marketer at a writing service review website. You can analyze different customers’ purchase histories and create different offers for each segment. For example, you can use upselling and cross-selling for low-frequency shoppers and offer a loyalty program for those who visit your online business store more often.

Here are some tips that might help you increase your average order value in your online business.

  1. Use a minimum price threshold for free shipping

    A simple yet very effective approach that can help you increase your average order value is to increase the minimum order amount customers need to reach to get free shipping. Most customers will choose to buy an extra item to avoid paying for shipping. It’s a win-win situation because you can maximize profits while your customers can spend money on something useful instead of wasting it on shipping.

The key to using this method is to make sure that your customers are well-informed about how much they need to spend to get free shipping and how close their shopping cart is to that threshold. For example, you can display a pop-up window whenever your customers approach the free delivery threshold.

  1. Add upsells and cross-sells after order completion

    Using upsells is all about giving your customers a reason to spend more and using a sense of urgency. Quite often, businesses redirect customers to order confirmation or a thank you page after checkout, but you can use this opportunity to upsell. Instead of just saying thank you, you can offer a nice discount if your customers decide to buy a better product or extra product right now.

When it comes to cross-sells, you will only be able to use this approach effectively if you offer relevant products. Think of products that will not only complement the items selected by your customers but also improve their overall user experience or make it more complete. You may also want to check out the best ways to optimize your eCommerce checkout to increase your conversions.

  1. Offer inexpensive add-ons

    Imagine yourself staying in a line in your local grocery store. Have you ever visited such a store with the only intention of buying bread or salt but ended up also buying chewing gum, batteries, and chocolate bars? If you have, you’re not alone, and you can use the same approach to increase your AOV in an online business.

“Adding inexpensive add-ons at the checkout will enable you to boost impulse purchases,” notes Martine Arnold, a digital marketer at a reviews on writing services. The lower the price, the more likely your customers will agree to buy add-ons, and the more add-ons you can offer. Amazon uses this tactic by suggesting items with discounts once your cart has reached a certain threshold.

  1. Offer a trial period for more expensive services

    “Mentioning the features of your higher-priced services might be not enough to motivate your customers to buy them. Your customers might be more likely to buy them if they actually try these services and understand what experience they can get for some extra money,” notes Elliott Coles.

Many people who try Spotify Premium or sign up for Apple Music for free keep using these services after the trial period is over because it’s difficult to let something go once you’ve tried and enjoyed it.

  1. Use a loyalty program

    As we’ve already mentioned above, you can also increase your AOV by using a loyalty program. Moreover, it will also help you get more returning customers. For example, you can use a bonus system so that your customers can collect bonus points for each purchase and then use them to buy from you. You may also offer a premium membership so that your customers can enjoy free delivery or other benefits.

Wrapping Up

Increasing your average order value can be a very effective method if you want to grow your online business’s revenue. It enables you to save customer acquisition costs while maximizing the profit you get from your existing customers. We hope that our tips will help you increase the average order value of your online business and boost your revenue in no time.

Melissa Mauro is a self-improvement author who is always interested in new projects. She wants to create her own writer brand, that’s why Melissa is looking for fresh platforms for the implementation of her ideas. Creativity and unique style make it possible to deliver valuable and engaging content to her ideal reader.

 

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My Top Ten Favorite Business Tools for Entrepreneurs

business tools

My Top Ten Favorite Business Tools (Updated to 21 Tools) for Entrepreneurs

As I’m working with my clients I’m frequently advising them about business tools that are useful for small business owners and those who are self-employed. Since I believe that marketing is one of the most important small business owner skills, several of my favorite tools fall under that category.

Just as important as marketing is self-development and included are a couple of those tools in my list. I’ve listed 3 tools that I use in coaching my clients and 2 that help with the financial areas of business..

  1. Hootsuite is a very helpful business tool with managing your social media posts. You can send one post to multiple social media sites with the push of a button, and you can schedule future posts so that your message broadcasts while you are on vacation or sleeping! Plans start as little as $19 per month.
  2. MailChimp is an email newsletter distribution platform. You can create your newsletter using their templates, add subscribers to your list and send out hundreds of email newsletters a month for free.
  3. Clickfunnels is an online business tool that helps you to build marketing campaigns without the help of a technical person. You can connect these campaigns to your website so that your visitors may view and buy your products or services online. The cost starts at less than $99 per month.
  4. WordPress. You may already be familiar with WordPress. This famous website platform boasts of providing 28% of all the websites on the globe. That’s a lot of sites! These websites are relatively easy to design, but many business owners hire a web designer to set everything up. Adding content and images is really easy; very similar to Microsoft Word. The cost can be as little as zero.
  5. Audible is a way for you to listen to all kinds of books on tape. I consider personal development to be essential for the small business owner. Zig Ziglar, the famous motivational person talked about the benefit of going to “automobile university,” that is to listen to audio recordings while driving your car. I frequently listen to personal development recordings while driving or working out. The cost is about $15 per month.
  6. Quickbooks.  Most everyone in business knows about Quickbooks; but did you know that this billing and invoicing tool can automate your payments from customers? Then you don’t have to manually create bills or chase customers for money. The payment shows up in your account so that you can spend more time with your customers. You can use it to pay your bills too! The cost is as little as $5 per month.
  7. Our 36 Coaching Module Assessment. This business tool is a self-assessment we provide to business owners and self-employed people who are looking to improve their business and take it to the next level. The tool examines your business in 36 areas in your business. We have found that every business owner wants to experience freedom in business. That’s why we decided to become our own boss; to be free from another boss! The cost is zero.
  8. Coaching Agenda. Our clients fill out a weekly coaching agenda prior to each session. Included on the agenda are Key Performance Indicators, Goals and Actions, Biggest Achievements, Challenges, Motivation level, and other important information. This tool tracks your business progress and results helps to achieve forward momentum and identifies obstacles to overcome. The cost for this business tool is included with all coaching packages.
  9. Strategic Plan. In my opinion, one of the most important business tools an entrepreneur can use is the Strategic Plan. Therefore that is one of the first things we provide for our clients. For us, this important document includes your personal vision, values, goals and bucket list. To that, we add your business vision, values, and mission, your business goals and objectives which form the “big picture” and your action plan which breaks everything down into small steps to achieve the plan. The cost is included with coaching packages.
  10. Canva. This simple and amazing content creation site will help you to create all kinds of images, presentations, posters, infographics, social media images and anything you can think of. There is a free version or you can pay $12.99 per month for the pro version.
  11. Promo. is an online video maker that gives you everything you need to make high-quality videos that will help your business grow. easily create videos from scratch or choose from our selection of video templates. No editing experience needed unlimited creative options inside. They have millions of templates for all kinds of business types and it fits all types of content. With Promo, you can also make video advertisements freely and easily. Promo helps you to promote your business or products, improves brand awareness, widen your reach, and engage your customers.

Top 10 Business Tools

  1. Flock. For small businesses, communication plays a very important role. It’s a means of synergizing the office environment so all the relevant divisions can work in harmony. There are several requirements for in-office messaging and video conferencing, which can be addressed with Flock. It is mostly available for free unless you need the advanced features available for a mere $4.50/ month for each user. Since Flock facilitates both messaging and video conferencing at a low cost, it is our personal favorite.
  2. Colorcinch is the cooler, down-to-earth stepchild of photo editing – always dependable, fabulously low-maintenance, and ready to prove their worth. They help you to “cartoonize” your images in a very cool way. Their price range from $3.99 per month to $5.99 per month.
  3. Titan. Another important form of communication for small businesses is email. Aside from interacting within the office environment, email is used to inform clients and customers about your business products and services. Titan allows you to create official email addresses with your business domain that adds to your professional capacity. After a 30-day free trial period, you can choose to continue using this highly professional business tool for only $1.50/ month for each user.
  4. Asana. Small businesses that require a level of symbiosis and planning when executing important projects. Asana is a project management tool for small and medium enterprises to keep employees focused on the step-by-step execution of the projects. You can create daily goals, assign deadlines, and allocate tasks to each member or team and watch as the tasks are completed with absolute effectiveness. Since Asana allows you to classify the project with short-term goals, it makes it easier to follow the progress of individual tasks. The basic project management tools in Asana are available for free. However, if you wish to use the advanced premium features, it’ll cost $11/ month for each user, and for business features, $25/ month for each user. Since Asana is a useful small business tool where you can view each project from different clients on one forum and keep tabs on the development, the cost seems meager as compared to its usefulness.
  5. TimeDoctor. To run a small business with efficiency, you have to take Time Management into account. It is not optional to create effective calendars and schedules for each project for different clients. Time management increases your efficiency in manifolds. Not only can you check the development of the projects, but you can also dock the exact amount of time that your employees dedicated to your business. It can be overtime or slacking that causes delays in your projects. TimeDoctor is an excellent small business tool that tracks productivity and Time Management for all your business functions. You can try it for free for 14 days to evaluate its suitability for your business. You can subscribe to the plan for only $10/ month for each user.
  6. Adobe Creative Cloud. For design-based small businesses, Adobe Creative Cloud is a blessing. It facilitates the use of multiple tools on desktop as well as mobile apps for all your design functions. It is an outstanding tool for creating attractive videos, adjusting features in photography, creating a web design, and programs to detect and track user experience. This small business tool is popular for its proficient design facilities and regarded quite highly among professionals. The plans for Adobe Creative Cloud vary based on how many people use it and for what purpose. For individual use, the price is as low as $10/ month. If you want to use it for business, then it costs $34/ month. Adobe Creative Cloud also offers separate packages for educational purposes, including small businesses that focus on training in design functions. For students and teachers, it costs $20/ month. For Universities, schools, and colleges, it costs as low as $15/ month.
  7. Wave. Small businesses are extremely reliant on regular billing and payments. Since the profits are limited, and there are multiple expenses that you need to consider, payment cycles must be systemized. Wave is a targeted software created to assist small business owners and entrepreneurs. It helps you design customized invoices with your business domain and feature the identity of your brand. You can create recurring invoices for billing and payments and track the income and expenses accordingly. The best part about Wave is it is mostly available free of cost. However, if you wish to associate billing and payments with credit cards, then you might incur additional charges.
  8. Turbo Tax. Maybe your business is a startup and you haven’t developed much complexity. You can do-it-yourself until you can afford a bookkeeper. Tax filing, especially for small businesses, can be really cumbersome. You have to consider all the previous year’s taxes, deductible business expenses, income, etc. That is why TurboTax comes in handy. You can synchronize TurboTax with QuickBooks to access all your income and expenses. It can also track the taxes from the previous year as well as deduct and business expenses associated with travel, advertising, materials, etc. The tool is available for $160 under federal jurisdiction and $50/ state. The cost of TurboTax may seem a little higher than usual, as compared to small business tools that perform other functions, but it is worth it when you get to save a considerable sum in tax deductions and returns.
  9. Dropbox Sign. Another primary requirement for small businesses is signing important documents. When you accept a contract or need signatures from clients, suppliers, partners, investors, or even employees, it is helpful to have the process digitized for efficiency. Dropbox Sign offers the means for you to request the signature from them. Once the process is completed, a copy of the acknowledged and signed document is sent to each signatory for posterity. It helps keep your business functions above-ground and transparent, facilitating trust-building and understanding among all parties. The cost incurred for this most-useful small business tool is a mere $13/ month for each user for the standard plan. You can also upgrade to the business plan, which costs $23/ month for each user.
  10. Paypal. It is a globally-accepted mode of payment for all small businesses. Therefore, you can provide local or overseas services and get paid via simple online transfers. The standard Paypal plan charges 2.9% + $0.30 for each transaction. The Pro plan charges the same, with an additional $35/ month.
  11. Selzy. Is an emerging email marketing platform that is newbie-friendly and targets specifically small and medium-sized companies. The platform offers a forever free trial with up to 1,000 contacts in the list and 15,000 emails sent each month. It has a simple drag-and-drop email builder with 100+ free templates to create picture-perfect newsletters in the nick of time. Selzy also offers a massive amount of features like automated list hygiene, A/B testing, detailed but digestible analytics, and even some help from experienced email marketers depending on the plan.

    Explore Selzy now to optimize the cost of email marketing for your business.

Two more honorable mentions: Slack and Basecamp. These two tools provide similar services but Slack is more geared towards communication while Basecamp is for project management. Slack starts at $6.67 per month and Basecamp is $99.00 per month. Both are great tools!

I’ve brought to you some of the best business tools, apps, and technologies that can benefit your business. Try some of the tools in this list and watch your business grow!

Questions about our small business coaching services?

Call us at 1-888-504-0777,

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51 Best Start-up Ideas to Try

start-up

Creating an excellent idea for a small business to start-up can prove a daunting task, especially with the apparent feeling that all the great ideas for business are already taken. However, it’s still possible to expand on a current set-up or build on a much older idea. One thing is sure; being self-employed presents far more benefits than the challenges that come with it, and it is, thus, completely worth the effort. Over the years I have done 12 business startups, and that really adds spice to my life.

As a business coach I work with many business owners including entrepreneurs who are doing startups. For the most part these amazing clients are successful. All it takes is a good idea and a willingness to learn, learn, learn and work, work, work!

That said, here are some start-up ideas to inspire you, which you could implement this year!

business startup

51 Small Business Ideas to Try in 2022

Let’s get creative. Find inspiration as you explore this exhaustive list of ideas from varied fields like nutrition-based, travel, writing, etc., and take up what works for you.

  1. Specialty Travel Tour Organizer

For a travel-based start-up, consider a specialized travel tour company. This company would offer the service of catering for travelers’ individual lifestyle preferences, taking into consideration varied aspects as travel preferences of travelers, diet-preferences, or even age of travelers. Such a company will specialize in attending to a well-defined set of preferences travelers have and would exist to meet those needs.

  1. Develop an Airport-Centric App

Consider setting up an all-inclusive app that enables travelers to navigate through airport information and make informed decisions in real-time. This is seemingly non-fallowed ground when it comes to start-up ideas and could be quite lucrative. While it is apparent various travel apps exist, an all-in-one app that shows information like amenities, TSA line wait times, ground transportation options, and airport maps could be quite useful to travelers.

To reach a wider audience, you can run your app on both iOS and Android. To achieve this, you can find a Flutter or
React Native developer for hire. Therefore, there will be no need to develop two separate apps for different platforms.

  1. Wedding Destination Planner

If you’ve ever been close to someone who did a wedding, then you know planning such events isn’t as seamless as the event may seem to unfold, and you could step in to relieve the hosts of weddings of the stress as a wedding venue planner. This would also allow you to explore various parts of the globe as you pick out suitable venues for weddings based on the couple’s preferences. Though working hours for this start-up may be extended and pressure ever great, yet if you love exploring new places, then you’d do great with this option.

  1. Creating Local Guides

If you’ve ever been a tourist in a place you’ve never been to before, then you know having a local guide could mean the difference between life and death, and that could be an excellent start-up option – making local guides. It doesn’t matter whether or not you’re versed with the locality or not. You could help tourists enjoy off-the-beaten-path experiences in your locality with themed guides and highlight attractions. And it doesn’t need to end there; you could get in touch with companies in your area and land advertising gigs as well.

  1. Setting up a Local Grocery Delivery Service

With very minimal start-up cost, needing virtually just a cell phone and a vehicle, to begin with, a grocery delivery service is a great option to consider. You could stand in the gap to aid senior citizens or people who are just too busy to pick up their groceries themselves and make a living while doing it. You could set up partnership agreements with local grocery stores in your area and get to work.

  1. Become an Event Planner

Consider setting up an event planning company in your community. To achieve such a feat, networking and careful research are necessary to succeed. It is also interesting to note that you could set up and run such a company remotely for ultimate flexibility.

  1. Open a Coworking Space

With the rising popularity of remote working, you could capitalize on this by setting up modern coworking spaces. Simply select a suitable location, incorporate necessary and sought-after amenities, and reach out to the community for primarily local impact.

  1. Meal Preparation Business

The world has gotten a lot busier than it used to be, and people no longer have the time to cook their food all the time, and where there’s a problem like this, you could provide the solution with a meal preparation business like restaurants. You could focus on generally ordered foods or diet-specific options, all depending on the community you find yourself in.

  1. Devise a Food Waste Solution

Developing a solution to deal with food waste would not only make you a lot richer. Still, it would significantly impact the food industry, helping grocery stores and restaurants save a lot of money.

  1. Capitalize on Veganism

Veganism has been on the rise in the past decade, and being able to provide plant-based food options can be a great business idea to consider. Setting up a vegan supermarket, restaurant and rolling out vegan alternatives of traditional foods are great places to start.

  1. Start a Dropshipping Business

The e-commerce dropshipping model is quite fascinating because you don’t have to purchase inventory upfront. Selling high-end products with low shipping costs would prove quite lucrative and could become profitable quickly if you do thorough competition research.

  1. Deal in Zero-Waste Products

Not only is this a smart option, but it is eco-friendly and an ethical thing to do. Zero-waste products include reusable and recyclable products like reusable bags, bamboo toothbrushes, and even zero-waste packaging materials. Such products would appeal to a world plagued by climate change.

  1. Curate Subscription Boxes

Subscription boxes have become quite popular and a lucrative business venture. Simply identify a niche and curate this specific set of items to modern customers.

  1. Produce Pet Products

Over 85 million U.S. households have at least a pet, and you could tailor your business to meet the needs of these companion animals. Consider making toys, clothing, and accessories for pets.

  1. Deal in Phone Accessories

The average person owns a mobile phone, and dealing in phone accessories has the potential to flourish in almost any setting. Though there is apparent saturation in the field, there is always room for one-of-a-kind smartphone add-ons.

  1. Engage in Electronics and Mobile Phone repairs

You could consider engaging in electronic equipment repairs and, especially, mobile phones, helping people get their electronics working again.

business startup is hard

  1. Create Custom Clothing

You can become a custom clothier, dealing in custom clothing, such as using dye sublimation printers for designs on garments, or rendering tailoring services if fashion is your thing.

  1. Sell Vintage Goods Online

Like it’s said, “one man’s garbage is another man’s treasure (or something like that)!” you could consider dealing in used merchandise, selling thrifted, vintage, or upcycled items online, and there are tons of sites to make that possible.

  1. Become a blogger

The key here is to identify a comfortable niche like sports, technology, lifestyle, etc., and create engaging content on the subject. With time, as the audience expands, you could make money via advertising, affiliate links, and even sell products.

  1. Write E-book

Perhaps you’ve got a way with words and know-how to present stories in ways that captivate and arouse the desired emotional response in the readers. You could put those skills to use by becoming a self-published e-book writer and selling your work on virtual platforms.

  1. Consider Ghost-writing

Perhaps you have the skill to write, are good with words but don’t mind always attaching your name to your work, then consider becoming a ghostwriter for other busier professionals. It’s a great option to consider with minimal start-up cost.

  1. Become a Resume Writer

Everyone needs a resume, but not everyone can write out a great resume, and if you’re good at something, then you don’t have to do it for free. You consider resume writing as a great start-up, with little start-up cost attached.

  1. Become an Online Coach

If you desire to see others achieve success and attain their desired goals in whatever aspects of their lives, online coaching is a great start-up option to consider. You could set-up a YouTube channel with niche-tailored resources to help people reach their goals as you reach yours.

  1. Engage in Website Flipping

Website flipping involves buying a website, making alterations to the site, and then selling it to make a profit. Such a start-up would require some starting capital as well as some tech skills in web development but could quickly pay off.

  1. Engage in Web Development

As the world increasingly becomes digital, the need for custom websites continually increases. As such, skills like mastering programming languages and working with WordPress could really come in handy and open doors for a lucrative start-up.

  1. Start a Podcast

A podcast could be a great start-up, especially if you find that you’re knowledgeable or passionate about a particular subject matter.

  1. Be a Social Media Influencer

If you can successfully build a following large community on social media platforms like Instagram or YouTube, you could create a stable income source through influencer marketing.

  1. Create Online Courses

If you have hobbies that people could be interested in mastering, then you could set-up online courses to teach these skills. This is entirely dissimilar to coaching as it’s more passive but will still yield a meaningful income.

  1. Become a Marketing Consultant

If you have digital marketing skills, then consider becoming a marketing consultant helping small businesses engage their audiences by providing SEO, social media, or copywriting services. Even without the necessary experience, you could take online courses to get you started.

  1. Engage in App Development

Your big break could be in creating an app. All it takes is the right skills and a great idea, and you could get the jackpot. And what’s interesting is, you don’t need a lot of coding skills nowadays to build a great app.

  1. Make a Smart Appliance

In an incredibly digital world, developing a healthy and needful appliance could be the big break you desire. All it takes is a great idea. To be inspired, carefully consider the average person’s daily life and figure out what tasks at home or at work would be significantly facilitated using an appliance.

  1. Look to Virtual Reality Experiences

VR is the future, and that future has already begun. Join the community making VR by creating virtual reality experiences or accessories.

  1. Develop a Dating Site

While it is true there are tins of dating websites and apps out there, you could stand out from the crowd by presenting a niche-tailored dating website targeted to meet the needs of a rather specific group of people.

  1. Develop a Chatbot

Even with really knowing much about coding, you could create a chat box that uses artificial intelligence to communicate with people—to help businesses improve their communication.

business startup

  1. Offer Matchmaking Services

This is a step further from just setting up a dating website; it requires a more active role in accessing, based on the users’ provided info, who is best matched and most suited for who. Matchmaking could be completed online or in person, helping you make money and develop relationships simultaneously.

  1. Become a Virtual Assistant

Online assisting is quite a promising start-up alternative, as it can help in administrative tasks in both professional and personal lives.

  1. Reinvent Exercising

Exercise is essential for healthy living, but it can get boring, especially when it comes to following the exact same routine daily. So then, how can people exercise but still find ways to have fun while doing it?

  1. Eco-Friendly, Health-Friendly Makeup and Beauty Products

Yeah, that’s quite specific. As more people become aware of the environment and the need for eco-friendly products, even makeup and beauty products should align to such standards. Creating safe and eco-friendly beauty products could be an excellent start-up option and one that hasn’t got a lot of congestion.

  1. Try a Food Truck

Perhaps, starting a restaurant may have been the idea, but you could consider a food truck instead. And moreover, you can hire someone by using food service interview questions. Even though you’d most likely need the qualification and background in food handling, a food truck may be more feasible a start-up idea compared to a restaurant as it would require less workforce and fewer resources to pull off.

  1. Start an Organizing Company

Some persons have a knack for organization – keeping things neat and tidy, where everything has its place, and others do not. If this is your thing, you could engage the start-up idea of organizing homes, offices, kitchen utensils, bookshelves, etc., for people who are clearly not gifted or less busy doing it themselves.

  1. Interior Design for Your Professionals

Everyone (or almost everyone) will appreciate a well-designed house, one that feels like home, but not everyone can achieve that. It requires picking out the right furniture, setting up with the right design, decoration, paint color, and even smell of the house. And if you have an eye for decorating, then interior designs could be a great start-up to consider.

  1. Become a Freelance graphic designer

It’s all about pictures in a social media age, and you can capitalize on that as a great start-up option. Decide the projects you work on, apportion your time and build a portfolio. You could consider graphic content for websites or blogs to company specifications for all manner of projects.

  1. Start up a Translation Gig

Do you speak more than one language? Then you could offer translation services. For optimum results, you should identify a particular domain or specialize in, like medical, transportation, finance, etc. You could expose yourself to tourists and get paid to aid in communication.

  1. Engage in Photography

Photography is arguably more of an art than science, and you may just have what it takes to excel in it. You can test yourself with small family events and build a portfolio with referrals. As you get known in the community, more gigs would come your way, which is progress. Also, use social media platforms like Facebook, Instagram, etc., to make your rade known.

  1. Set-up a Handyman Service

Perhaps you may be good at fixing things and improvising solutions when things fail. Or maybe, people around you always need your attention when things need fixing; then consider becoming a handyman. Find a domain that works for you and grow by asking for referrals.

  1. Become a Woodworker

If you’re good with wood and delight in crafting out beautiful furniture, you could set up a woodworking business. You can start out with a local base, meeting locals’ needs in the community while building an online following as you showcase what you can do.

  1. Become a Videographer

Though videography is a start-up that would require some capital upfront to invest in the right equipment, its demand will never run out. So, give it a shot. Create samples and advertise online, and have interested viewers queue up to demand your services.

  1. Car-detailing specialist

Cars – who doesn’t love ’em? Car dealing specialists are in demand highly, and if you can pay attention to intricate details, then this may be your big break. You may also need to be mobile, and you should have the necessary flexibility, transportation, and equipment for the job.

  1. Home inspector

This is a more formal start-up option and may require certification and a great deal of expertise. You can supply services like confirming licensing requirements and inspecting land assets for sale or purchase. You may need to take a few courses on the subject for this start-up and expand your knowledge and expertise.

  1. Housecleaner

With almost no qualification whatsoever, you could start-up a house cleaning gig. To succeed at this, you should consider making your services known through the community to get more bookings, clients, and, of course, more bucks.

  1. Personal chef

We all need to eat, but not everyone has the time to cook and are comfortable eating out. As such, you could provide the service of becoming a personal chef. This is especially needful for special-diet individuals like vegetarians or patients. And as an added hack, you could group clients with similar feeding preferences and cook for them in bulk.

How to Choose the Best Start-up Idea

As much as these ideas are all great and you’re feeling anxious to jump on that idea, there are a few things you must consider. First, there must be a need you’re meeting in choosing that start-up; there should be demand for what you’re considering in the locality you’re envisaging. No matter how appealing the idea on this list is, you’d be setting up for failure if there isn’t a demand for it in the community you desire to start up.

Secondly, you should have a well-articulated business plan. Where there’s no plan, there’s ample room for failure. The business plan will help your business stay on track, so it’s a must-have.

You should also take into consideration your skillset, what you can do, and choose wisely. Even if you desire to learn the new skill, you should still assess whether it’s a feasible route to take.

To wrap things up

The opportunities for start-ups are limitless; all it takes is an opportunistic vision to jump on every demand and start-up a business. Whether or not you choose from this list, stay motivated and strive to succeed. Read this article to view a Business Startup Checklist.

Here’s an article about Deciding on the Right Business Structure.small business coach

Surviving the Big Boomer Business Bust

exit plan

Why is an Exit Strategy Important for Business Success?

Do you have an exit plan? This is an update to an earlier blog post. Things have changed significantly over the last few years!

According to PricewaterhouseCooper, approximately 50% of all owners of small and mid-sized companies will exit their companies over the next few years. Others estimate that the exit rate will be closer to 75%.

This massive exodus from the marketplace will be driven by retiring baby boomers, who are now 60-78 years old. Unfortunately, of those small business owners who exit their business, only about 1 in 5 will actually sell their company. The remaining 80% are closing their doors with a big financial thud!

2020 Reality Check according to December 2019 statistics:  Baby boomers own 2/3 of U.S. businesses, that’s millions of companies. Only 8% of this group plan on selling the business.

Business Owners Have No Exit Plan

Of all boomer business owners, nearly 60% have no plan for selling their business or passing it on to an heir or successor.

Why is this happening?  There can be many reasons:

  • Their business isn’t saleable because of its lack of profitability or it can only function with the boomer owner at the helm.
  • Boomers are pushing out retirement because they haven’t saved enough
  • These business owners are failing to look ahead at hard facts and figures or to set.
  • Some business owners truly love what they do and want to do it forever.

Why Don’t Business Owners Do Exit Planning?

Business owners are reluctant to create an exit plan; it seems like planning for their own funeral. They are afraid to consider what life would be like without their business, so they do nothing.

I think most don’t realize the rewards they’ll get from having an exit strategy –peace of mind, and new opportunities — to cash out now and enjoy a secure retirement, or maybe to try something else like start another business or become a mentor, to travel or spend more time with family, to pick up a hobby or do volunteer work. Thinking about when and how you’ll exit your business can reap dividends:

Financial

By knowing when to reduce your inventory, training, or staff; when to stop investing in newer equipment, software, or supplies; and how much income you’ll need for a comfortable retirement

Organizational

By grooming a possible replacement, you smooth the transition and by structuring the company well for takeover.

Exit Planning

By gathering and then “selling” the benefits of buying an established company (saves a lot of work, heartache, and money).

Ethical

By considering the needs of your staff, customers, and vendors and also by planning your exit with the people in mind who depend on your business will leave your mind and heart at rest.

Reputation

You’ll leave a strong and respectable legacy by preparing ahead, by thinking about the effect on others, and by setting up your business for sale or passing it on to a heir.

An exit plan isn’t the end of your world. It will begin a new phase for you and everyone who’s been connected with it.

How to Prepare Your Business For Sale

Below are some things you can do to increase your chances of selling for big bucks:

  1. Create an Exit Plan.

You know the drill – “those who fail to plan, plan to fail.” The problem with failing to plan is obvious. Hire an Exit Planning Coach to help you figure out the right window for retirement and the steps needed to reach it.

  1. Plan Three to Ten Years in Advance.

Most experts say that you should have an exit plan when you start a business.  At a minimum, you should develop your plan at least three years before an anticipated retirement. Your plan should include both information pertinent to a shift in leadership, as well as certain insurances in the event of sudden change.
Consider that life happens – illness, recession, technology changes, governmental rules and compliance, divorce – so thinking ahead helps you avoid a catastrophe. If you’re curious when to buy critical illness insurance, the time is never too early. You never know what the future holds, protecting yourself in the event of a sudden illness can help protect your business and loved ones as well.

  1. Sell from a Position of Strength.

You can command top dollar for your business when it’s strong. Unfortunately, many owners wait until an economic turndown, burnout, or a health crisis forces them to sell from a position of weakness.

  1. Know the Value of Your Business.

Every business owner should get an annual valuation on their business; this is the best indicator of a company’s performance and provides potential buyers with a view into its worth.

  1. Get Revenues and Profits Up.

Your business should be growing; both top line and bottom line. Become the number one or two largest business in your market.

The top line refers to a company’s revenues or gross sales. Therefore, when a company has “top-line growth,” the company is experiencing an increase in gross sales or revenues. The bottom line is a company’s net income, or the “bottom” figure on a company’s income statement.

  1. Develop Management Succession.

If you’re the only one who can run your business, who will a buyer have to help run the business after you leave?

If none of your family want to take it on, then consider offering it to a key partner or employee; perhaps sell it to the remaining staff.

  1. Maintain Confidentiality.

This is critical to the health of your organization. If your competitors, customers, employees or vendors find out that you are selling, this could mean disaster for your company!

Addition: Silently plan your exit strategy – even to the point of having informed parties sign a confidentiality agreement.

  1. Keep Focused on the Business.

Don’t let your business performance decline because you’re too focused on the sale of your business. Continue to work on your business as if you don’t plan to sell it.

  1. Get Help From Professionals.

You will need an exit planner/business coach, a business broker, a wealth planner, a CPA, and a tax attorney on your team.

Local, state, and federal laws and regulations change frequently, so hiring an expert could pay for itself.

  1. Get Your Books and Records in Order.

Have your financial statements and legal documents in order; this will give the buyer confidence in your business.

Summary

Planning your exit strategy will help you …. to make wise decisions now … to fashion your future and … to create a legacy for yourself, your family, and your community.  For more information on this topic read this blog post: How to Succeed in Business Without Really Trying:

Even though only 20% of all small businesses are selling, it is possible to get yourself into that group. But it is going to take some planning and some more hard work to get yourself there. You should start today!

Questions about our small business coaching services?

Call us at 1-888-504-0777,

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Enter your information below to start growing your revenues and profits today…

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How to Succeed in Business Without Really Trying

Succeed in business

If you’re a Baby Boomer, you might know the title reference to a 1960’s movie. The story centers on an ambitious young man, J. Pierpont Finch, who reads a book about how to succeed in business and uses it to rise at a dizzying pace from mailroom to executive suite. (More recently, it was adapted into two Broadway musicals, one starring Nick Jonas and the other with Daniel Ratcliffe.)

This is our take – without the romance, drama, and musical numbers – on the things that might make it easier to succeed in business.

How to Succeed in Business Without Really Trying

Stay open to trying a new approach or considering a worthwhile suggestion, and go further than you expected to succeed in business without really trying hard.

Choosing Your Small Business

If you’re 100% sure that you want to start your own business, but not 100% sure of what business you’ll choose, then we’ve got some suggestions for how you can succeed in business with minimal agony.

Loving The Business You Start

For those starting out, the best advice for an easier path to succeed in business is to do what you love … or at least enjoy a lot. Maybe you’d adore making a living by creating art sculptures, recycling furniture, or running an animal rescue. Maybe you yearn to start a business doing landscaping, graphic design, or blacksmithing. 

From the following story, it’s not hard to understand how much more successful you can be if you really love your work.

It’s also about feeling real passion for an occupation. After years of the corporate grind, many people want to create a business to help others – which could center around specialties like counseling, environmental conservation, or coaching.

Here’s a story about how a passion became a path to succeed in business.

Paul Tima of Solutions-4-You – Industry: health & wellness products.

Along with his wife Cheryl, Paul sells natural personal care items, vitamins, and organic foods. Their business sprang up from years of research which disclosed how commonly used household products and foods are poisoning us “one cell at a time.” Their long quest began after Cheryl contracted scoliosis (which causes the spine to “collapse”). As they learned more, Paul was shocked by the fact that 85% of their household articles (from soap & makeup to cleansers & sprays) contained carcinogenic ingredients. He felt as if “God was hitting me on the head” to do something about it.

This all turned Paul into a man with an intense passion for educating folks about the damaging effects of common household goods on our health, and for providing new and time‑tested natural therapies, food, and household products that puts prevention before prescriptions.

“We still need our medical community of nurses and doctors,” he says, but we also need “to understand the body and how to take care of it.” We should make a choice to know what’s in the products we eat, drink, inhale, and use on our skin, and what it’s doing to us.

Take Advantage of Neglected Business Markets

One way to succeed in business without really trying is to choose a business without a lot of competition. Are there no acupuncturists in your town? Very few event planners? Not enough DJ’s, nutritionists, or life coaches? Is your area lacking an upscale restaurant, dance studio, delicatessen, or winery? Improve your chances of success by providing a business that’s in demand but lacking in your community.

To succeed in business you could consider offering a less common service:

  • Concierge for high-end clients. Executives, politicians, and TV stars don’t want to waste their time or energy on tasks like lining up concert tickets, finding handymen and contractors, or making reservations for a weekend getaway. There are 10.8 million U.S. millionaires out there who could be your next client.
  • Providing expert witness services for legal cases. Maybe you have skills that a lawyer might want in court – like a physician, security pro, or forensic scientist. You could also be a broker of expert witnesses – locally, nationally, or globally.
  • Services for seniors. As the Baby Boomer generation (born 1944-1964) ages, there is high demand for in-home companions and care providers. This group of 76 million Americans is also seeking an assortment of services to navigate:
    • Medicare, Social Security, Veteran Benefits, Long-Term Care
    • HHHousing, Downsizing, Reverse Mortgages
    • Legal Help (will, power-of-attorney, medical directive)

What Businesses Are in Demand?

Alternatively, consider providing products or services that are new or emerging. Changes in technology, lifestyles, and our stress levels are constant. We’re listing a few industries that seem ripe for the pickin’. If these aren’t just right for you, let it be a jumping board to discern what fits you in particular.

  • CBD or Hemp Oil. Become an online distributor of health-related trends. These oils are free of THC (the hallucinogenic stuff) and have become very popular.
  • Everything pet-related. When I heard a co-worker say she was building a $30,000 sunroom just for her four cats, I was shocked and dumbfounded. I then heard about a nearby restaurant just for dogs. Fido can play with his new buddies on Astroturf and have a doggie birthday party. Amazingly, I read that owners spent $69 million on their pets in 2017.

This industry is open for pet sitters, walkers, and trainers. You can start a mobile pet grooming business or a doggie daycare.  Or, start your own pet bar.

  • Tiny houses. There’s a growing trend toward downsizing and living more simply. From singles to retirees to young millennial families, people are choosing to move from their large suburban homes into a 300-square-foot tiny home on an 8-foot wide trailer. They not only want to reduce their “footprint,” but also have the flexibility to move when and where they’d like.
  • Selling alternative energy sources. Solar, wind, bio-fuel, photovoltaic, geothermal. As research, technology, and costs make environmental-friendly energy more attractive, business- and homeowners are wanting to become more “green.” Opportunities can be found in design, sales, distribution, repair, installation, and maintenance.
  • Personal coaching. This field has boomed in recent years due to society’s increasing struggles like divorce, layoffs, stress, and addiction. People are also looking for answers in the areas of spirituality, health, relationships, and self-improvement. Life coaches, business coaches, and marital coaches are needed to fill the demand.
  • Healthy fast food. Quinoa, free-range chicken, tailored juices, and tofu burgers. It’s a thing. The calorie-rich burger, fries, and soda just aren’t cutting it for everyone. Not only do we feel guilty eating that kind of food, but our waistlines grow proportionately with each happy meal. You could open a drive-thru restaurant, operate a food truck, or become a personal chef.
  • Virtual assistants. Every year, more people go into business for themselves. The owner may have a great product or service, but they need help with the office work:
    • logging appointments and checking email
    • finding suppliers, contractors, or vendors
    • making or fielding calls
    • ordering goods and equipment
    • tracking data like invoices, customer information, or budgets

This is an attractive option for a work-at-home business.

  • Software developers. According to the U.S. Bureau of Labor Statistics, the demand for software developers is expected to increase by 17% each year through 2023. The median pay in 2017 was slightly over $100,000 per year.
  • Skilled trades.  Masons, electricians, plumbers, and carpenters are recession-proof jobs. A significant portion (40%) of current tradesmen will retire in the next few years, so this field will be open.

Pressing the Easy Button In Your Business

There are other easy ways that your business can be a joy rather than a job.

Using Your Business Network

A great way to succeed in business without really trying is by leveraging your network of friends, business contacts, family, relatives, clubs, and other alliances. Connect with neighbors, social media lists, and former co-workers.

Build a community of support, word-of-mouth, and referrals through people you already know. Send them emails and social media posts to forward on to their network. Give them business cards and brochures to share. Sweeten the pot by offering discounts or gift cards when they refer someone who becomes a client.

Make a point of talking to members of groups you’ve joined such as clubs, associations, networking groups, masterminds, or meetups. Ask the group host if you can set up a table in the back of the room, or give a 5-minute pitch. Offer a free showcase event, e-book, or video about what you do and how it benefits the audience.

You can expand your network by joining a trade group like a barter exchange. Members provide products and services to each other cash-free. The work you perform for other members accrues credit to purchase services within the exchange. You not only save on expenses for services like website design, coaching, and marketing, but you also are now a part of a strategic community.

Apply Your Business Talents & Gifts

Instead of setting up a business just to rake in the cash, consider following your calling instead.

Are you artistic and creative? Then you can start a graphics design shop, photography studio, or art gallery. These pursuits may certainly make you money, but you’re using your artsy talents and fulfilling a dream.

Do you hate clutter? The world is looking for organizers to help purge, sell, donate, and re‑organize the things accumulated over the years.

Are you someone who loves to write? So many people need help to make their content clear, well-organized, useful, and compelling – from blogs and web copy to magazine articles and books.

Settling for a high-paying job might bring in a healthy paycheck, but may make you feel as if you sold out. You know what you were really meant to do.

Follow your intrinsic talents. A business won’t be hard work if you do something that comes naturally.

Become the Business Go-To Person

If you prove yourself as the reigning expert in your field, then to succeed in business will come easier. Our suggestions for establishing yourself as the guru for any particular job:

  • Do one job. A lot of entrepreneurs have many talents, but if you want to be that go-to person who known for one niche then stick to just that. You may be renowned as a business coach but can also do website design … keep that secondary skill under your hat because that can confuse your client and muddle your message.
  • Develop deep knowledge. Read books, take webinars, attend classes, and practice. Knowing your business exceedingly well will cast your reputation as the go-to person in your field.
  • Define your unique selling proposition. Take time to flesh out what makes your business stand out from the competition. Tell the story of how your company is different or better. These questions might help:
    • What customer problems are we solving and how do we do it better?
    • How do we compare to the competition – faster turnaround? guaranteed one-day service?
    • What do clients say is best about what we do or provide?
    • What are our distinguishing qualities – customization? open 24/7? American-made?

(Read the related blog about USPs on our website.)

  • Publish. Write a book, blog, or post around your area of expertise. Find the right magazines, newspapers, or trade publications, and submit related articles.  Keep the content appropriate and relevant for your intended audience. (Note: Make sure to have it edited; nothing kills credibility like typos and mediocre writing.)

Starting a business can be exciting and heady at the start, but can be a tougher path to follow than expected. You can succeed in business without really trying by doing something you love, know thoroughly, or that which comes naturally. It will also help to use your existing connections, to choose a market that’s in demand, and to establish yourself as an expert. 

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How to Run a Successful Business

how to run successful business

Running a small business is no easy task. The reality is that with more and more competition at all levels, self employed people need to be flexible as well as they need to have good organizational and planning skills. Many business owners ask me, how to run a successful business?

One of the big mistakes many people do when they are considering opening their small business is that they believe that they just need to open their doors or turn on their computers and they will immediately start making money. This just couldn’t be farther from the truth.

The reality is that running a small business involves a lot of planning, action, and also adjusting the plan to meet current market conditions. For example with record low unemployment rates, business owners need to be creative in finding and keep good employees.

How to Run a Successful Business

Here are 7 essential things that you need to know about running a successful business:

#1: Don’t Offer People What You Want To Sell

Instead, offer people what they want to buy. One of the big mistakes some self-employed people make is that they prioritize things in a wrong way. Instead of focusing on what already sells and has a market, they just try to create a market for their own products or services.

Think about sports shoes, for example. With more and more people exercising every day, you know that you may achieve success if you decide to sell sports shoes. However, instead of just concentrating your efforts on the latest trend designs, you should rather focus your energy on selling all kinds of sports shoes (or even shoes in general) first. Then, as you gain trust, credibility, and customers, you can also include these latest trending sports shoes.

#2: You Need Cash Flow Urgently:

Even when you have a small budget, you know that you need cash flow so you can run your business. So, what can you do?

While this doesn’t work the same way in all industries, there are some industries where you can ask for deposits or even full payment on work up-front with balances due on delivery. Another option that you have in case you’re in the retail industry is to ensure delivery by a specific date on high-ticket items. Think about Dell Computers and Amazon; they don’t schedule anything for delivery until they are paid in full.

Another option that you have is to create a program in which your customers pay an up-front fee to make sure they have all their items delivered by a specific date.

#3: Keep Your Costs Low:

One of the main secrets of successful small businesses is they keep their costs as low as possible. Even when you manage to have cash-flow coming in, you need to maintain it positive; that you are paying out less than what is coming in.

There are many things you can do. From decorating your shop or office with second-hand furniture from paying your vendors upfront which gives you leverage when you are negotiating prices. Just be creative and you’ll be able to think about many different ways to cut the costs. Bootstrapping is a practice that wise business owners use to keep their debt low and therefore profits higher.

#4: Underestimate Your Revenues And Overestimate Your Expenses:

One common mistake among small business owners who are just starting out is to think that they will have enormous revenues and small expenses. They define their business plans according to this optimistic outlook. However, what occurs most of the time is that your revenues will be lower and won’t occur as fast as you imagine. In addition, you may be surprised at the number of expenses that a small business needs to maintain.

As a rule of thumb, you should consider that when you are estimating your expenses, add about 30% more to what you are anticipating. This will ensure that you’re counting with the worst-case scenario and that you’ll still have a way to stay in the business.

Please notice that this is how you should look at numbers but this isn’t how you should think about your business. Particularly if you are opening a business in a foreign nation, you should at the very least be aware of the risks and costs of running an Estonian company. Overall, anticipating that you’ll have more expenses and shorter revenues than you were anticipating doesn’t mean that you should accept this.

#5: Focus All Your Energy On Marketing And Sales:

Simply put, your small business isn’t going anywhere unless you make some sales. After all, without money coming in from your customers, you won’t have a shot. With this in mind, you need to make sure that you spend almost all your energy and commitment to marketing and sales.

You’ll need to think about the best ways to get leads, to convert them into sales, and to keep them as repeat customers. So, instead of focusing on branding your business, you should start by generating leads. This is one of the best ways that you have to run a successful business.

#6: Discover Ways Of Increasing Your Profits:

In order to run a successful business, you need to understand that you have 5 different aspects that affect your overall profitability. These include your ability to:

– generate leads
– convert these leads into paying customers
– make these customers buy from you more often
– increase your average price
– increase your profit margins.

If you are able to succeed at these 5 areas, you can be sure that you will be running a successful business.

#7: Keep Testing And Measuring Everything You Do:

One of the things that many business owners seem to forget is to keep testing and measuring new strategies, new techniques, new products. Sometimes, a small change can make a lot of difference. However, you need to make sure that you are always on top of the results. This is the only way that you have to discover if something is working better than it was or worse, and adapt at a fast pace.

Conclusion

So we have discussed how to run a successful business. As you can see, there is a lot to think about when you want to run a successful business. As we said earlier, while it is important to have a business plan that states your goals, you also need to be ready to make changes quickly in order to get better results. For more information on marketing check out this article: Measure Twice – Cut Once: How a Carpenter Taught Me Successful Marketing!

Questions about our small business coaching services?

Call us at 1-888-504-0777,

or 

Enter your information below to start growing your revenues and profits today…

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Adding Value to Your Business

value of your business

How to Increasing the Value of Your Business

If you’re looking to sell a business, it’s helpful if you are constantly adding to the value of your business. In this articles we’ll explore some ways to do that.

A typical business really has two values. The “academic” value is the one determined by a professional business valuation. The other is the “true market” value. The academic value is arrived at with a formula based on the firms’ hard assets, cash flow, industry averages and multiples. The fair market value also takes those items into consideration, but then considers what buyers are really willing to pay.

value of your business

For many small and mid-sized businesses hard assets like equipment, vehicles, land, buildings, and inventory may be limited. For some small businesses there may be no hard assets at all. Instead, their value is based on intangibles like employees, business processes, customer lists, location and business relationships.

Adding value to your business requires focused efforts. To maximize the fair market value of your business, it’s vital that you capitalize on those intangible assets.

• Develop key employees. Buyers generally aren’t interested in paying a premium if the business relies on you for its success. Remember to delegate responsibility to key employees and involve your key staff members in the decision making process. Demonstrating that your company’s success is reliant on your capable, well-trained employees – not just you – will pay off at the time of sale.

• Document what you do. Be sure that job descriptions, operation processes, and strategic plans are documented. Documented records and plans give a buyer greater comfort that he or she will be able to emulate your successful growth and will help your buyer obtain financing. Also, be sure to keep business records like sales and expense reports, internal profit and loss statements/balance sheet, and tax returns clean and well-organized.

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• Build relationships. Name recognition, customer awareness and your reputation are all part of your business value. Even if your company doesn’t have many hard assets, your relationships are key. Consider diversifying both supplier and customer accounts.

• Improve cash flows. A potential buyer wants to see the “true cash flow.” And, of course, in the business world cash is king. Be sure you are driving all income to the bottom line.

• Review your assets. Sell off or dispose of unproductive assets or unsalable inventory. Remove or buy off any assets that are primarily for your personal use.

• Find and build your niche. You don’t have to be everything to everyone. Buyers will pay a premium for a niche that has barriers to competitive entry.

• Remodel, clean, and organize. What’s the first thing anyone does when they put their home on the market? They spruce things up and make sure everything is in its right place. Yet, in business, that’s rarely considered. A well-maintained facility will get the best price. Even businesses that lease space can benefit from a thorough cleaning and organization to convey a feeling of quality and efficiency.

value of your business

Keep these important intangible assets in mind if you’re looking to sell your business. They convey a value that financial statements alone do not. If you are looking to sell, make a plan. Start working on the intangibles well in advance of putting your business on the market. For many business owners, they reach a point where they burn out and psychologically retire early, before a sale is made. It’s important to work to keep your focus right until the sale is complete. Make sure that focus is on adding value to your business.

Finally, when the time to put your business on the market arrives, consider lining up key specialists who will help you make the most of the sale – an attorney, an accountant, a small business coach and a business intermediary to name a few. Remember, you only have one chance to sell your business, so you want to do it right.

Questions about our small business coaching services?

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Achieve Your Goals, Dreams, and Aspirations Through Your Company

Achieve Your Goals

How Tough Times Added Dollars to the Bottom Line

Business Coach

Challenging times have caused most business owners to “tighten their belts.” These difficulties have caused many owners to open their minds to the idea of working with a business coach. As a result of getting help, the owners that we are working with are experiencing more money in their pockets and growing sales.

Business Owners Overcoming Obstacles

In recent weeks it has been exciting to see business owners overcome obstacles and get clarity on their business calling. It has been fun to engage their employees in pursuing the business vision in a way that benefits everyone involved and the community as well! Most of all it has been rewarding to help them discover immediate results that put money in their pocket.

Business Owner Results

Consider some of the following results:

More Business Owners Using Business Coaches

Many business owners are now searching for a business coach who can assist them in expanding their operations. We have experienced a significant increase in coaching projects. The difficult economic challenges are motivating business owners to find every advantage to increase their market share and to add dollars to their bottom line. We are recently working with service companies, small manufacturers, and professional firms.

Results for a Service Company Owner

John*, a service company owner said, “I came to the realization that I love to fix problems, but I’m not a very good manager of this business. We have been just barely getting by for years, even when economic times were good. Now I realize that we have left a huge amount of money on the table.” In the first session with John and his team we added $75,000, which is pretty good considering John has been making $40,000 per year for the last ten years!

Conclusion

We find time after time that business owners are burned out. They have “foggy thinking.” They are working too much. They are too stressed out. They are on a treadmill, and they don’t know how to get off. Then many come to us to sell their company at the worst possible time. We are bringing on average approximately 2500% return on investment for our clients. For every $1.00 spent with us, we bring $25.00 in return.

Are you ready to take advantage of difficult times? If so, give us a call.

Questions about our small business coaching services?

Call us at 1-888-504-0777,

or 

Enter your information below to start growing your revenues and profits today…

small business coach