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BUSINESS JUST GOT EASIER WITH THESE 4 EASY STEPS
Building a Solid Business
With minimal or no barrier to entry, it’s scary how entrepreneurs can jump headlong into business and not even know their true numbers! Many small business owners will look to their competitor to set their prices, not realizing according to Intuit, over 61% of small businesses suffer from cash flow issues, and 39% of small businesses make less than 3% net profit. By extension, if you set your prices based off your competitors, you most likely will become part of this statistic! It’s imperative you know your true numbers before you start your business!
With the following 4 proven steps you will ensure the highest chance of success in your business!
The first step is FINANCALS.
This is the foundation of any business. Without strong financials (cash), you cannot build a solid business. Having the cash to run a business is easier said than done, in fact, studies done by US Bank found that 82% of small business failures are due to poor cash flow and that 32% are unable to pay vendors, loans, employees and so on! When cash does become a problem, many entrepreneurs’ resort to an outside source to fund their business which can actually HURT rather than help.
The second step is SYSTEMS.
There are many systems that can be implemented in a business such as scheduling, ordering, installations, hiring, firing, training, etc. HOWEVER, the most important system is the sales system. Without a solid sales system, all other systems become irrelevant, because sales drive everything!
Most businesses fail miserably when it comes to a sales system because they don’t understand the methodology of closing a sale. A sales system needs to be repeatable & trainable, but it also needs to be used to learn from if a sale is lost. With the average closing ratio being less than 20%, many businesses are spending massive amounts of money & time to drive leads to achieve revenue goals, instead of spending the same time & money to build a more efficient sales system.
It’s easy to sell at the lowest price, always offering some kind of discount or promotion, however the flaw with this model is it gives away your profit to close the sale!
If you have a proven sales system with measurable profit, you most likely have healthy cash flow and a solid bank account!
However, if you are encountering the following objections most likely your sales system is broken!
· We want to think about it.
· I need to talk to my husband (or wife) about this.
· We never make a decision without looking at all the options.
· We don’t have the money to do this right now.
· We’re selling our home next year, so can you just fix it to get us by?
· You’re a lot higher priced than your competitor.
· I can buy that at (box store) a lot cheaper and just have you install it.
· I really like what you have but I want to sleep on it.
The third step is VISION.
It’s shocking how many entrepreneurs start a business with no clear vision of where they are going and how they are going to get there. Just imagine going to the airport, looking at the departure screen and under destination it says, “We don’t really know, once the pilot gets to cruising altitude, he will find the path of least resistance, fly in that direction, and just look out the window for a good location to land.” Sadly, this is the story told repeatedly in many small businesses.
For a business vision to work, it needs to be broken down into measurable steps, starting from the vision itself, all the way down to what needs to happen TODAY to accomplish it.
It’s a simple process: layout your plan, step by step and overcome 99% of the obstacles along the way BEFORE you ever get to them!
The fourth step is LEADERSHIP.
These are the key employees that make up your business. Many times, business owner may be thinking, “I should just fire all my employees, I feel like I am running an adult daycare center!”
Why is this? Isn’t the owner the one who hired them?
Many time we see employees in key positions who are VASTLY underqualified or are in the wrong position all together. This usually happens when a business is going through a growth spurt, a position appears out of necessity, and the employee closest to the newly formed position gets handed the responsibly or promoted into the new position
HOWEVER:
There are no defined responsibilities:
How is the employee going to know what to do?
There has been no training provided:
Do they have the knowledge to complete the tasks assigned to them?
The employee’s personality was not considered:
They could be a great person with a great attitude BUT put them in the wrong seat and watch them slowly wither into a poor employee with a sour attitude SIMPLY because their personality is not a fit for the new position.
This all comes down to establishing leadership within your business. However, this can only happen once your business has the strong financials, solid systems implemented, and the true vision mapped out!
Coaching & Training
Knowing the financial health of your business, implementing proven systems, working toward an ultimate vision with measurable goals & attracting rock star employees is key to Owning Your Economy rather than relying on it.
Bookkeeping
Running a small business requires owners to wear a lot of hats, that’s why we offer full service bookkeeping that allows you take off some headwear and put on the ones that fit you best!