Category:Success In Business Management Leadership Family Business Entrepreneur Business Systems Business Management Business Coaching Business General
Are you working harder than your business, or is your business working harder than you? If you are working harder than your business, you are among the many self-employed who have succeeded in purchasing a job for themselves! Do you aspire to be an entrepreneur? Then you must figure a way to create a business that works harder than you, so that you can use your spare time to launch other business endeavors or to enjoy the lifestyle that typifies the successful entrepreneur; time with family and time for personal leisure pursuits. So how does one get their business to work harder? Follow these 6 steps to creating a profitable business that works without you having to be there every day:
- Mastery: Of time, money, delivery, and destination
- Niche: Mitigating price discounting pressure
- Leverage: Systemizing the business
- Team: Getting the right people on the bus
- Synergy: Able to grow a strong stable enterprise
- Massive Results: Multiple streams of income
Each of the six steps builds upon the previous. Here is a high level jet tour of three of the first six steps. The last 3 steps will be covered in the next issue.
Mastery: from chaos to order
Time is our most valuable asset. We can regain lost income, but can never regain lost time. There are four activity categories into which we can invest or waste our time:
- Not urgent, not important (time wasters used for escape)
- Urgent, not important (day stealers that scream for our attention)
- Urgent, important (must be handled right away)
- Not urgent, important (strategic issues that will determine our success)
1 and 2 are time wasters for the business owner. 3 and 4 are the difference between working in your business and working on your business. 4 is working in what I call the Zone and should represent 80% of your time. Working in the Zone will prevent many of the urgent/important from occurring.
Do you know where your business is financially? What is your breakeven? How about your cash flow – can you predict it? What is your profit position – how accurate and real-time is your information? Is your most valuable tangible asset (your business) increasing or decreasing in value? Is your business consistently delivering your value proposition to the marketplace in such a way as to not just satisfy your customers, but create many raving fans? This is called the WOW factor. And finally, are your business goals aligned with your personal goals so that when your business is working harder than you, you are living your desired lifestyle?
Niche: effectively marketing your USP = predictable cash flow
Discounting your prices in the face of competition is devastating to your bottom line. Let’s, for example, assume that your gross profit margin is 40%. If you discount your prices by 10%, your sales must increase by 33% to maintain the same gross profit dollars! How does one avoid such damaging action? By creatively crafting your marketing around your USP (Unique Selling Proposition)! Done correctly, this will carve a niche in the marketplace that you alone occupy, thus insulating your business from the discounting frenzy produced by a market crowded with competitors.
Look for Part 2 and the balance of the six steps coming in the next issue.