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  • So You Want a Waiting List of Clients…

    So You Want a Waiting List of Clients…

    Wouldn’t it be great to have a waiting list of clients wanting to buy your product?

    I know the owners of a business who are in this exact situation. Yes, they have a long list of clients waiting to buy their product. For many budding entrepreneurs, this is dream come true. But despite their blissful situation, these business owners still face a problem.

    If my business clients wanted to meet the huge demand for their product, they needed a large capital outlay. I’m sure you are all thinking what I immediately thought. When you have such a high demand for your product, you can increase your prices.

    The ladies admitted I was not the first person to suggest this to them. But they are facing fears of losing customers on account of raising their prices. As an option, I suggested they keep their existing clients on the original fee and then increase the price of their product for new customers.

    To solve the cash flow issue of having a large capital outlay, I proposed they charge the first two or three years upfront. This would allow them to buy the materials required to create the product and supply the orders.

    What’s the upside to this? The supply of this particular product means they can increase revenues from other related income streams within their business. So, increasing the volume of sales of the major product has a flow on effect in other aspects of their business.

    How to generate a huge demand for your product or services

    Once you’ve created a product that answers a pressing need or satisfies your target’s desire, generating a buzz is the next crucial step.
    There are various ways to increase the demand for the product you have created. Some use scarcity. Some address the pain points of their target buyers. Others use exclusivity.

    The ladies knew their target market on a deeper level. That’s why they were able to develop a product tailored to their customers’ need. They also built a product they are passionate about. Their compelling marketing strategy? Share their beliefs, unique story and passion with their target market.

    The buyers of their products have the same ideals and beliefs as they do. They have attracted a loyal base of clients who want to be a part of their company’s story. By purchasing their product, their customers are able to interact with the company and create their own story.

    Having lots of customers waiting in line to buy your products is a great aspiration and if other business owners can do it, you can, too.

    Great product, compelling marketing, and smart cash flow management are the key to success.

    Do you know a good story that your target audience can relate to? See how you can effectively use it to persuade buyers to line up for your products or services.

  • A Valuable Lesson from Real Stories: Ask for Help When You Need It

    A Valuable Lesson from Real Stories: Ask for Help When You Need It

    Recently, I attended a women’s networking event where the guest speaker was Jessica Rowe. She told us how she moved through her career and touched on her personal experience with depression. Here’s a short version of the story.

    Jessica’s mother suffered from depression, and as a child she would watch her go in and out of the hospital on many occasions. Years later, she became an advocate of BeyondBlue, helping people cope with depression. She had no idea she would ever need the same help after she had her first daughter.

    While she knew from training and experience that she was suffering from Postnatal Depression, she was in denial. She couldn’t admit the fact that she needed help. She didn’t follow good advice and ignored everything that she was teaching others at BeyondBlue. She knew that she had to reach out, share her story and get help to get better yet it took her awhile to seek treatment for her condition.

    And it made me think about how we all know the way we should do things (or what we shouldn’t do), but don’t act on it.

    For example, you are aware that something is wrong with your business and you recognise that you should be doing something differently. But it’s the way you’ve always done things and you don’t want to step outside your comfort zone. You are scared of change.

    And what if you make the change and then things still don’t work well? Isn’t this fear of failure?

    Sometimes, you sense that something is not working and you honestly don’t know how to fix it. You know you can ask somebody else for advice but sometimes you find it difficult to do so. Even when things aren’t working or when you don’t know the solution to your problem, you can’t bring yourself to ask for help.

    And what do we do instead? We put so much pressure on ourselves to figure things out on our own. We strive to excel at something we are not good at so we end up not being able to do as well as what we thought we could.

    Which brings me to another example.

    I spoke to a client who was moving to the next phase of her business while going through a marriage breakdown. So understandably, she focused on fixing her troubled marriage rather than tend to her business. To make matters worse, one of her key employees left the business so she had to replace her.

    Preoccupied by marital troubles, she took her eyes off the business and during that period, the new employee started stealing from her. It took a little while before she noticed because she wasn’t there all the time. And then when she did notice, she had to work out how she was going to deal with it.

    And when I spoke with her later, I told her, “What, you could have called me, I would be happy to help you.”

    And she admitted that she hadn’t reached out because she was embarrassed, though she wasn’t doing anything wrong. She couldn’t admit that there was a problem in her business and she felt shy reaching out for help.

    So I did take a lesson from these two stories. Even though you may know something or notice there is something wrong, you may not know how to act on it.

    We forget that there is someone who can and willing to help you find a solution to your problem, get through the hard times, or get back on your feet.

    It only takes courage to put your hand up and say, “Hey, I need help.”

    Nobody is going to judge you when you admit that you need help. No one is going to think badly of you because you don’t know how to do something. In fact, we admire people who recognise their problem and seek out the advice and assistance that they need.

    So give it some thought. See who among your network of friends and business associates you can reach out to for help on personal and business matters. Then pick up the phone, shoot off an email and just find out how you might be able to deal with a problem now and then with their support.

  • Forget Lengthy To-Do Lists, Focus On These 5 Tips Instead

    Forget Lengthy To-Do Lists, Focus On These 5 Tips Instead

    Struggling to get it all done? Is your workload piling up? Don’t have enough hours in the day?

    If you are a mother and entrepreneur who wants to build a lucrative business while trying to raise a wonderful family, you have a lot on your plate. Up early in the morning to prepare the kids for school and sneak in one or two tasks for your business. Then, up late at night, after the kids are in bed, trying to finish the tasks that you have started earlier in the day.

    Is anyone else burning the candle at both ends?

    Are we actually doing ourselves any favours? Is it okay to take care of our business, spouse and kids while neglecting our health and well-being?

    When we are tired, we make mistakes. When we are exhausted, we are less productive. And everything is a struggle. Our business and family won’t be able to depend on us if we are unwell.

    So how do we keep it together?

    Breaking down what you need to do

    If you are anything like me, you write a list of all the things you need or want to do for a day. And it keeps growing and growing and growing. If we’re being honest, we know we cannot complete all the tasks we write on our to-do list within a day, but we create the list anyway.

    What if we choose only two or three tasks to complete in a day and just focus on those? And then, instead of concentrating on what we didn’t achieve for the day, what if we write a list of all of the things that we did achieve at the end of the day? Are we going to get better results?

    I think we would.

    So, don’t get up too early or pull an all-nighter to squeeze in an extra hour of work. Don’t look at the long list of tasks and feel disheartened. Instead, try to apply these tips to help you manage your time better:

    1. Improve your focus by turning off distractions.

    Email alerts, social media notifications, text messages – anything that grabs your attention away from meaningful work affects your focus. It’s so much easier to concentrate on a task at hand when you get rid of interruptions. Remember what Peter Drucker said: “There is nothing so useless as doing efficiently that which should not be done at all.”

    2. Block out periods of time for highly demanding tasks. Turn off your phone and close the door.

    Consider keeping a diary for a week to track how you spend your time. Guard your time fiercely – know where every minute goes and you’ll have a better chance of taking control of every hour. We all have a limit of 24 hours a day so don’t let a minute or two slip unaccounted for. Schedule realistic breaks and include buffer for unexpected things. But be sure to carve out blocks of time and set up the right environment for deep, focused work.

    3. Wake up an hour or two earlier in the day to do those pressing tasks.

    Client calls, emails, family-related chores occupy most part of our day. But the early risers have control over the first few hours of their day. And they use this time for their most important priorities. Most successful people find early morning as the best time to exercise, meditate or do work that matters most to them. Decide your top priorities and start working on them first thing in the morning.

    4. Choose a task that you are going to complete. Set the clock for 30 minutes and get it done.

    It’s amazing how much you can achieve in small bursts of time when you focus intensely. Set a timer and do what you can within that span of time to get a clearer picture of how long it takes you to do something. Once you are able to figure out how much time it takes to complete a task, you will have a better way of planning a day-to-day schedule that works for you.

    5. Know your strengths, weaknesses, and limits so you can plan accordingly.

    Which tasks do you love? Which ones are you great at? What about the tasks that you do not find enjoyable, or struggle to complete? See if you can get help or hire someone to do it for you. If not now, plan to delegate that work in the future.

    The first step in managing our time well is knowing where it goes. This takes honesty and careful observation. The best part is that this is something we can work on if we care enough about our sanity, goals, and success.

    Over to you: What tips and tricks did you find helpful in managing your time? What obstacles did you have to face when trying to juggle work/business and family life? Share them in the comments.

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  • Debt Collection Practices that Work

    Debt Collection Practices that Work

    As a business owner, it is frustrating when a client does not pay on time. And it gets worse when he refuses to honor his debts. What more, you now have to deal with the unpleasant task of asking for your money back.

    One of the things I have learned working with small business owners is that many companies have difficulty with late-paying and non-paying customers. When this happens, don’t shy away, learn to face this challenge head on. If payment for your product or service is delayed, your cash flow suffers, crippling your business operation.

    So what’s the best way to ask clients to pay up? Before You Extend Credit to Any Client…

    Check the client’s creditworthiness.

    Ask for trade references and contact them for a standard background check.

    Look around your industry when drafting your credit terms.

    They need to be competitive, reasonable, and generally lower for new customers. Insist on upfront payments or 50% pre-payment if a client is new or if the amount of credit he is asking for is too high.

    Create a contract with clear terms and conditions.

    The payment terms have to be clearly stipulated in the contract and the customer must sign it.

    How to Chase Payment Politely: Here are basic yet effective practices to collect what clients owe from your business.

    1. Be prompt in sending your invoices.

    The earlier your clients receive their invoices, the better. Online invoicing makes it easier and faster to send an invoice to clients. Automation of recurring bills is also simpler with plenty of  online tools available.

    1. Assume the positive.

    Clients might have just forgotten the bill or have not received it, so send them a gentle reminder. Give them the benefit of the doubt during the first follow-up call, email, or letter. Be sincerely helpful and positive. It also helps to clarify who is the person responsible for invoice payments.

    1. Be assertive.

    It is easy to lose your temper when a client ignores your payment reminders. But don’t take it personally. Stick to the facts and ask for payment in a clear, concise, and direct manner upon the third collection letter, email, or follow-up call. Stay professional and steer clear of offensive language. You might not want to keep the customer but you still want to get your money back.

    1. Contact the debtor in multiple channels.

    With modern communication channels at our disposal, there are plenty of ways to fool proof your message. Use various means to reach your customers. It’s not enough that you send them an email to follow up on a payment – reach for the phone and confirm if they receive the invoice.

    1. Handle disputes or complaints promptly.

    If a customer claims that your product is faulty or the service is poor, resolve the matter as quickly as possible. Protect yourself by having clients sign a proof of service or product delivery. It is unlikely that you can recover outstanding debts if the product delivered was defective or the service was subpar.

    1. Assign a competent employee or a reputable debt collector for this specific task.

    Bring in external help if necessary. For long overdue credit, sometimes it’s best to delegate the debt-collection task to agents well-versed in retrieving what customers owed a company. When choosing a debt collection agency, be sure they abide by the Fair Debt Collection Practices Act.

    While retrieving outstanding debts can be awkward and difficult, your headache will be less if you have clear and organised records of all your business transactions with clients who owed you money.

    What debt collection practices do you find helpful when dealing with delinquent clients? Share them in the comments below.

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  • Don’t Reinvent the Wheel

    Don’t Reinvent the Wheel

    Most of us will agree that copying is bad. At school, we are trained not to copy. We are punished if we are caught regurgitating the ideas and thoughts of our peers.

    We are taught to think for ourselves, to justify our own logic, to prove our point.

    This is why, in business, we find it frustrating when our competitors copy our best ideas. Of course, it is unfair. It took you so much time and energy to create a brilliant and original product or service, only to be ripped off by others.

    Naturally, we invest in trademarks and patents to guard our intellectual property. And rightly so. Yet even with these protection measures in place, it doesn’t stop our competitors from stealing our ideas for their own gain.

    In these circumstances, we weigh the pros and cons of each action or reaction and then choose the best decision. Often, we have two options: fight the infringement or accept it and move on fast. If you decide to move on, pay close attention to your most important clients and address their most pressing needs as quickly as you can.

    But also consider the copycat’s potential threat to your business. This will help you determine whether or not to pursue legal action. If you think the potential damage is minimal, the ideal response would be to revel in the fact that you had an idea worthy of imitation.

    Are You Wasting Time Reinventing the Wheel?

    Incessant innovation allows us to stay a step ahead of our competitors. That’s the reason why we invest our efforts developing new products or processes that solve our customers’ problems. But how do we do this?

    By learning from the mistakes and successes of our mentors and business heroes.

    Yes, that’s right – we copy, or rather, tap into the wealth of knowledge and wisdom of those who have walked in our footsteps before us.

    Let’s face it, in business, and life in general, we make far greater inroads when we use information from our more experienced peers and predecessors.

    We could benefit from the insights, suggestions, and guidance of business coaches who have grappled and overcome many challenges similar to our present problems.

    With their support and expertise, we will be able to deal better with tough situations, gain clarity, and fast track business growth.

    Why recreate the wheel when others have paved the way before us?

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  • Why You Shouldn’t Under Promise and Over Deliver

    Why You Shouldn’t Under Promise and Over Deliver

    “Under promise and over deliver,” so goes the age-old business adage. You must have heard of this saying a hundred times from CEO’s, entrepreneurs and small business owners who hope to exceed their customer’s expectations. To what end? In the hope of gaining the customer’s trust, recognition, and repeated business.

    This well-known approach of providing excellent customer service encourages businesses to go above and beyond what clients expect. After all, exceptional customer service is one the key elements of running a successful business.

    When you underpromise and overdeliver, you aim to impress your clients by doing more than what you said you would. You either complete a project ahead of schedule or you deliver more value than what you initially promised. All these efforts will pay off once your client recognises the “over-delivery”.

    I urge you to challenge this widely-accepted belief.

    Consider for a moment how under promising and over delivering could potentially hinder your brand and hamper your business growth.

    Try to think how often you set a deadline for a task or project, estimating that you can get it done sooner, only to find that you are struggling to deliver on the promise.

    Or perhaps, you let other tasks get pushed or take priority so you fail to meet the deadline you have set. Try as you might, it’s not easy to avoid this common pitfall: thinking you still have plenty of time to complete the under promised task. It goes without saying that if you break a promise, you also lose the wow factor of “over delivery”.

    Further, ask yourself if your efforts to over deliver are truly worth it.  Do your clients notice or appreciate when you complete something by Thursday afternoon after telling them it would be done by Friday? You said BY Friday, and you delivered. Your clients were happy that the job was done. But have you impressed them?

    In an alternate scenario, you tell the customer that you can do X and Y. And then, you have actually delivered X, Y, and Z. Your customer is likely grateful that you did as you said you would. Perhaps they will gladly take the additional service. At the same time, the customers might be also wondering, if you had finished more than the two items you promised, you might have completed them sooner.

    Think of the alternative

    Here’s a challenge for you: in the competitive environment we are faced with today, you are far better off promising what you know you can deliver when you can deliver it, and fulfilling that promise.

    You will have far more success in business if you set out to wow your customers from the beginning by promising what you can actually deliver (x, y and z) and do so on schedule. After all, generosity in business dealings is not exactly valued as many of us would expect.

    Concentrate your efforts on maintaining a good reputation among your clients. Only promise a schedule, service, or level of quality that you can actually deliver.

    Over to you: Do you habitually exceed your customer’s expectations? Or do you focus more on keeping your commitments? Share your thoughts in the comments below.

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  • 10 Highly Effective Ways to Cut Your Business Expenses

    10 Highly Effective Ways to Cut Your Business Expenses

    Want to generate more profits? Of course, increasing turnover and enhancing product margins are all common methods of improving the company’s bottom line. Have you considered these options to reduce your overheads?

    Every dollar you can save in overhead costs goes straight to the bottom line.

    Whereas, only a portion of a sales increase turns into profit, because of the cost of generating the sale in the first place (i.e., your gross margin).

    Consider, for example, where you have a gross margin of 20%. Increasing sales by $5,000, will result in an increase of profits by $1,000 ($5,000 x 20%)

    Yet, reducing your overhead expenditure by $1,000 will have the same effect on your bottom line. An increase in net profit of $1,000. So what actions can you take to reduce your overhead expenses?

    Here are the top 10 things you can do to save on your overhead expenses.

    1. Negotiate cheaper rates for your merchant and other banking facilities.

    If you have been with your current bank for many years, it may be worthwhile asking them if they can give you a cheaper rate. Chances are, their current rates may have decreased, which you could take advantage of. Another way to get a lower rate is by asking if they could offer you a discount for your loyalty.

    2. Pens and marketing gimmicks – do you really need them?

    How many times have you received a branded pen and gone to do business with the company? What are you trying to achieve by purchasing the pens or other marketing material? Handing out branded pens and notepads is not only passé but also ineffective at best. Consider alternatives. Brilliant marketing strategies begin by knowing what your target customers really want.

    3. Overtime and penalty rates for staff – are you managing the staffing costs well?

    Are you always paying your staff penalty rates for overtime? If so, consider employing an additional staff to cover those overtime hours. Alternatively, review the staff roster to analyse where employees spend most of their time. Search for patterns and find ways to maximise employee productivity.

    4. Insurances – do you have a broker, and are they seeking the best rate for you?

    Insurance is the perfect example of an expense where you can shop around to find the best offer. Be sure to compare apples with apples, and only settle for what adequately covers your needs. I highly recommend using an insurance broker to review your circumstances. She or he should able to tell what’s most suitable for your business.

    5. Is your advertising dollar working for you? Are you measuring your results?

    Too often, I see business owners splashing money on advertising with no plan or measurement. Before agreeing to the next newspaper or radio ad, think about the return on investments. Also consider the volume of sales you need to generate to cover any advertising expense. Measure the contribution a given advertising program has on revenue and profits to find out if it’s even worth the investment.

    6. Shop around for better deals, or consider asking existing suppliers for a discount.

    When was the last time you evaluated your current service provider? How do they measure up against similar suppliers in the market? Although your preferred vendor offered you the best deal years ago, there might be cheaper and better options available now. Competition and innovation often drive down the prices of goods and services. Consider switching to another supplier that offers the best value for your money. But if you are happy with your existing supplier and wouldn’t want to switch, ask for a loyalty discount. Simply asking whether you are getting the best rate can lead to considerable savings over time.

    7. Look for technology options that could save you time by creating efficiency.

    We are very lucky to live in an era of great technological advances. And as these innovations are constantly evolving, they help reinvent our working process. Technological advancements can be adopted to streamline processes and free up employee’s time. Nowadays, many businesses get more done in the same amount of time.

    What technology options can you use to improve business processes? Consider how you can systemise operations and maximise your business productivity using technology.

    8. Save on printing costs.

    As noted above, technological advancements cut down the cost of printing.  There’s no need to print every single document in the office. For example, programs such as pdf writer allows you to complete forms directly on the computer. Meanwhile, an app called Docusign enables you to digitally sign documents, again without the need to print any document. All these and more could help your business save on printing-related expenses. Plus, there’s no need for massive storage space to file physical documents.

    9. Review your subscriptions and other direct debits coming out of your bank account.

    Do you manage recurring bills through direct debits? The benefit of direct debits from your bank account is that you can set and forget. This means you never have to worry about paying that monthly bill, thus ensuring your service remains constant.

    The downside of using direct debits? It’s the same: you can set and forget, thus paying for an ongoing service which you are no longer using.

    Check your bank statement for the last month and see whether you’re still using each of those regular subscriptions or direct debits. Set a regular schedule for an account review to ensure that you are only paying for services that you need.

    10. Check your invoices.

    We are all human. No matter how careful your suppliers may be, they can still make mistakes. So check your invoices to ensure that you are not being overcharged for a product or service.

    You make a couple of small savings by asking for a discount from your supplier or reducing your printing costs.  At first glance, these don’t seem like much. Yet remember that small amounts add up quickly, and can have a significant impact on the bottom line.

    By reviewing your profit and loss statement on a line by line basis and carefully considering how you can make savings in each area of your business, you will go a long way to improving your profitability. At the very least, you will rest easy, knowing that you have fine-tuned your business overheads.

  • Why Businesses Thrive with Feedback

    Why Businesses Thrive with Feedback

    Recently I ran a full-day workshop for clients. Many of the attendees seemed to find the workshop enjoyable and helpful. They actively contributed to the discussions in all sessions.

    There were great vibes in the room all day long. But you can never tell how you impact others until you get their feedback.

    Then I read the feedback forms…

    Truth is, the overall assessment wasn’t terrible. In fact, they gave me some great pointers I could use for future events. But I’ll admit that the feedback stung a little bit, especially because they were not what I expected.

    Maybe it’s the perfectionist in me. I was crushed because I always desire to excel in everything I do. But after that initial disappointment, I was able to reflect more clearly on the feedback I had received.Without getting the participants’ feedback, I wouldn’t have gained valuable information and insights on areas to focus on for improvement.

    I find that getting feedback from clients is the easiest and fastest way to learn and do my work better.

    Why Business Owners Need Feedback

    Receiving well-thought-out feedback helps us grow. As a small business owner, there are plenty of reasons to seek feedback from customers about the product or service you provide. Here’s a short list I have come up with:

    1. Encouraging feedback opens the lines of communication.

    When you show your customers that you welcome their feedback, you are less likely to lose them. In fact, they start to feel comfortable giving comments on areas you need to work on. This honest sharing (or disclosure) ensures that problems or issues are acted upon, resulting in happy clients.

    1. Regularly asking for feedback builds customer loyalty.

    By taking the time to ask clients to rate your product or service, you show that you care about their views or opinions.  When you embrace customer feedback like it’s a blessing, you are more likely to have repeat business.

    1. Businesses that value customer feedback get more referrals.

    Continuing from point #2, when customers are convinced that you care about their experience with your product or service, they begin to trust you. Don’t take their comments for granted and they become more willing to refer your business to their friends, family members or colleagues.

    1. Positive feedback boosts employee morale.

    Satisfied clients and happy customers often leave great reviews of your product or service. The staff that provided exceptional service gets credit for the job well done. This, in turn, helps improve the employee’s morale and productivity at work.

    1. Spot training opportunities through feedback.

    We all have blind spots – weaknesses or flaws in our behaviors that we don’t realise until an outsider points them out. Soliciting feedback helps us identify what we need to improve. Fight the urge to react or defend yourself. Instead, try to see feedback as an opportunity to change for the better. This practice will help you look at your business from different angles with the view of continuous improvement.

    Get into the habit of seeking feedback. The more frequent you ask for feedback about your performance, product, or services, the easier it will be to think it’s a normal part of growing your business.  

    Try it today. Ask your customer for feedback. Start with this question:

    What’s one thing that I could do with my product or service differently that would make it better?

  • Wonder Woman or Just a Typical Mum/Business Owner?

    Wonder Woman or Just a Typical Mum/Business Owner?

    Let’s face it: running your own business is tough. Being a Mum is tough. Putting the two together is plain crazy.

    Yet, I wouldn’t have it any other way.

    Fulfilling my role as a wife, mother and small business owner brings me great joy and satisfaction. This is why I happily invest my time and energy in growing my business and taking care of my family.

    I certainly understand the challenges of time management and juggling family and business responsibilities. If you have been in this situation or you know someone who juggles work and family duties, you can tell that it is a constant struggle.

    Getting Through Tough Times

    Most of the time, I can keep my head above water. But when the kids get sick, it is a different story. While it’s obvious that family takes priority over any business venture, I want as much as possible to keep all my commitments.

    Recently, when all three of my children fell ill, they had to skip school for a week to recuperate. This meant I had to work late hours and postpone important meetings with clients in order to tend to my children’s needs. It was truly a challenging time for me.

    Thankfully everyone understood the situation. However, it was still disrupting to my business.

    This experience taught me to expect the unexpected. My kids or spouse will get sick. I could fall ill myself. As a savvy mumpreneur, I have to know how to face this dilemma.

    Wonder Woman or A Mum with a Mission?

    My husband has recently told me that “I’m a Wonder Woman” because of all of the commitments I take on. I’m extremely flattered by this compliment.

    Yet after thinking about it, I realized how I have been protective with my time. Like a heroine who sets out on a mission, I ignore everything that doesn’t bring me closer to my goals. There are plenty of activities that I happily chose not to participate in.

    When it boils down to it we can only do so much. Being at peace with this helps you excel in those areas you choose to spend time on and leave other activities/tasks for others to do. After all, where there’s a will there’s a way. If not, there’s an excuse.

    It pays to know your priorities and focus your efforts on the activities and practices that have a great impact on your life in the long run.

    So, what unnecessary habits or tasks can you let go to make room for those you wish to do?

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  • 5 Tips on How to Be Your Own Boss

    5 Tips on How to Be Your Own Boss

    When I’ve made the decision to start my own business, I knew it would be hard. I didn’t know exactly how hard it would be yet I knew that building a successful company would take time. I knew it would take a lot of blood, sweat, and tears to gain the freedom and flexibility I desired.

    While I’ve fulfilled my dream of becoming my own boss, I’ve made a lot of mistakes along the way. In fact, if I could go back and start again, I would do so many things differently.

    So for those of you who are just starting out and who wish to avert huge miscalculations, here are my tips to building a successful business:

    1. Select the best business structure.

    Understand the various entity structures to determine the best option for your circumstances. This is one of the most important decisions you have to make. You need to weigh the pros and cons of every option so it’s not an easy choice to make on your own. Seek professional advice from a trusted solicitor or accountant. These experts can walk you through the huge implications of a business structure on your taxes, paperwork, liability and more.

    2. Create a great yet flexible business plan.

    Have a clear picture of your business purpose, direction and target market. Write a business plan to help you clearly identify these areas, visualise where you are headed, and lay out the steps you need to take to achieve your short and long-term business goals. Harvard Business Review summarises the key components to consider in your plan in four letters: PIMM. That’s for People, Idea, Model, and Market. Your business plan doesn’t have to be absolutely rigid; instead, it must allow room for changes.

    3. Know your numbers.

    Estimate the earnings and expenses of your business for 6-12 months. This way you can forecast if you have enough cash to cover the costs of running your business for that period. How much does it cost to run your business each day? Avoid surprises by meticulously calculating the costs of accounting and legal advice, internet or phone installation, power connection, marketing, supplies and equipment, wages and other recurring expenses. How much do you need to charge to cover these costs? And what price will the market bear for your product or service? Get to know your numbers.

    4. Document systems and processes.

    You may only be small to start off with, but as you grow it will be so much easier to slot employees into their roles if tasks are clearly written or recorded for them to follow. It will also save you time and energy in training, allowing you to focus on what you do best: growing the business. In addition, you will enjoy the side benefit of having more money to pay for a new employee or equipment.

    5. Connect with like-minded people.

    There will be days when you will feel like throwing in the towel. Before that happens, surround yourself with people who listen, cheer your spirits or challenge you to get up and pursue your business aspirations. Being able to discuss how you are feeling with other business owners will show you that you are not alone. It’s refreshing to hear the struggles and success of your fellow entrepreneurs and share your own, too. This engaged and supportive network can help you get through tough days. To add to this, you will be able to pick their brains and learn vital tips and tricks that they have tried and tested in their business, saving you from re-creating the wheel.

    I wish I had known these things when I was just starting out. However, if I did, I wouldn’t be able to share these valuable tips with you. My own business mistakes and difficulties taught me these ideas and lessons and now I’m passing them on to you. I hope every business owner reading this can avoid my mistakes and benefit from my experience.

    Have a business story or struggle to share? Please feel free to reach out. I’d love to hear from you.

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  • The 6 Pillars of a Profitable Business

    The 6 Pillars of a Profitable Business

    Running a successful business is like building a home, it takes a lot of hard work and essential materials.

    It certainly helps to adhere to the fundamentals of good business management. To say that these foundations can help you reach your most ambitious business goals is no exaggeration.

    So here are the most important pillars you need to run a highly successful business. Give these ideas a shot and see what happens.

    Purpose

    Put simply, your business purpose is what makes your business tick. It is what your business is designed to do. Ask yourself, What need am I fulfilling? What problem am I solving?

    By defining and fine-tuning your business purpose, you are laying the foundation for a clear-sighted company and building a consistent brand in the process.

    Some questions to ask yourself are:

    1. Why am I in this business?

    Your business purpose drives all the decisions you make for your company. Having defined that purpose clearly, you can make better decisions about how to market your business, who your target market is, and how to select team members to train in programs, systems, and procedures.

    2. What is my purpose?

    Purpose speaks to what you, as the leader and/or founder, aspire to contribute and how you want to affect the world around you. It’s something about which you care deeply (See Ken Blanchard and Jesse Lyn Stoner). Purpose tells people why you’re doing what you do.

    Product (or Service)

    How does your product or service provide a solution for your target market? Do you consistently deliver a high-quality product or service? This is a balancing act every seasoned entrepreneur knows too well.

    Customers may like a great product yet be disappointed by bad customer service, e.g. late delivery, inattentive or rude customer service representatives, etc. If you have to choose between the two, the customer service associated with delivering the product or service outweighs the product itself. People will always remember how you made them feel.

    Try to look for the sweet spot: provide an excellent product to attract new customers and offer exceptional customer service for repeat business.

    Processes

    What are you doing to achieve your business goals? How do you know if your systems and strategies are working? Do you document your company’s basic processes and are these core procedures followed by all?

    Proven processes define how you do business. Having a system in place ensures consistency in your product or service. Every organization needs to have consistent core processes to achieve its goals and scale up.

    Once you have established and documented the main processes, your next step is to ensure everyone follows them – consistently. There are hidden twofold benefits:

    1. when key employees leave the organization, someone else can step up and assume the responsibilities; and
    2. when new employees join the company, you can use this as a resource for business process training.

    People

    People are your greatest asset and potentially your biggest downfall. How do you hire people? How do you choose when to fire employees? Have you noticed that most successful businesses have good people?

    Your employees are the face of your business. As the business grows, you as the owner will have fewer dealings  or interactions with customers. You must be able to trust that your staff can treat your customers the way you would. How can you find people who share your vision, mission, and values?

    The right people are easy to identify yet hard to find. They are positive, competent, and accountable. As a business owner, your role is to choose, assign responsibilities, review, reward, and recognize employees for their unique contributions. That’s how you keep a motivated and happy team, which is key to a thriving business.

    Price

    Your pricing positions your product or service in the marketplace. Better pricing can definitely boost sales. Are you aiming for a high volume of turnover or high-quality product and service?

    The price you place on your product or service reflects the choice you make. How does your pricing strategy fare so far? Are you selling profitably?

    Getting the pricing strategy right is one of the keys to a profitable business. You need to ensure your pricing provides an adequate margin to cover the fixed running costs of your business and generate a profit.

    Promotion

    Promotion refers to raising customer awareness of a product or brand, generating sales, and creating brand loyalty.

    Promotions are carried out using traditional media such as newspapers, magazines, and television. Recently, the use of social media has seen businesses capture their audience’s attention and create a buzz around their product or service at a much lower cost. Businesses are able to engage with their audience through the use of Facebook, Twitter, LinkedIn and other social media channels.

    Promotions can also be carried out in physical venues such as markets, sporting events, shopping centres and trade shows.

    The bonus 7th Pillar: Passion

    Passion allows you to persevere after setbacks. It’s the drive needed to pick yourself up on the rough days. It’s the fuel that helps you lead and inspire your team, convince customers, motivate you to implement systems and procedures, and continually learn innovative ways to do business in your industry and stay a step ahead of your competitors. How strong is your passion for business success?

    Purpose, product, processes, people, pricing, promotion, and passion are the seven pillars of a great business. Which one of these does your company have? Strengthen your business with these pillars as a foundation and you’d be surprised to see it grow by leaps and bounds.

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  • 7 Ways to Increase the Value of Your Business Before You Sell

    7 Ways to Increase the Value of Your Business Before You Sell

    You’ve reached the decision to sell your business maybe now, in 12 months or in three years time,  how much will it be worth?

    As any reasonable owner, you want to maximise the sale value as much as possible. But how is a small business valued?

    How to Calculate the Value of a Business for Sale

    As a general rule of thumb, a small business is valued at 2.5 to 3 times net profit, with the net profit figure being adjusted for non-operating expenses such as interest expense and above market wages paid to the owners.

    If the owner has not been drawing wages and benefits while working in the business, an adjustment is made for the commercial wage that would normally be paid.

    So one way to boost the sale price of your business is by increasing its profits. You can also improve your company valuation by increasing the rate that is applied to the net profit of the business, ie. ensure that the rate applied to the net profit is 3 or higher.

    How can this be achieved?

    Consider these seven practical tips to increase the value of your business before you sell:

    1. Document standard procedures.

    The documentation of standard procedures ensures that there is consistency across business operations. A potential buyer will find your business attractive if its processes, procedures and standards are well-documented because it means a team member or two can perform tasks autonomously in the event of resignations or annual leave.

    2. Innovate for efficiencies.

    Continuous innovation allows the business to keep abreast of technological advances, encouraging efficiencies in productivity. This can lead to reduced operation costs and/or increased volume of trade.

    3. Have a long-term lease in place.

    Smart buyers want a guarantee that the business can operate in the same area for a considerable amount of time. The existence of a lease provides certainty for a buyer that the business location will remain after the purchase.

    4. Keep up to date, well maintained equipment.

    If the equipment is run-down, the values of the business will likely be reduced as a buyer would be concerned about paying for a replacement for equipment, or incur high maintenance costs. Further, well-maintained equipment will likely operate more efficiently, thus reducing running costs.

    5. Retain an engaged team with authority to make decisions.

    Having an engaged team is critical. They are more productive and consider options for improving business processes. A team empowered to make decisions allow the owner to step away from the business. This improves the value of the business because it is able to operate without the constant need for the owner’s presence. A potential buyer will find it appealing that employees can guide them while they learn about the business operations.

    6. Prove the company’s growth in sales.

    Evidence of growth in sales shows that the business has not gone stale or stagnant. Know your numbers and prepare to cite your company’s positive financial performance to ideal buyers for a profitable sale.

    7. Maintain a comprehensive customer database.

    A customer database can be used to record and manage detailed and updated data  of your customers and prospects such as their age, gender, suburb, previous purchases, etc. A deeper knowledge of your customers creates an opportunity for targeted marketing, resulting in more successful marketing campaigns.

    How does your business fare in respect to the above elements?

    Regardless of whether you wish to sell your company or not, it’s important to understand the factors that will lead to a more profitable business.

    These elements will also affect your level of involvement as a business-owner – how often you can be involved in or absent from the company.

    Since you are aware of these key pointers, you can start planning now to prepare the business for sale in the future. If you still feel overwhelmed, try to seek out an experienced advisor to help you successfully handle this deal or transition.

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