Small Business Blog

Archive for July, 2009

Every time I have a business idea or come across a new opportunity I analyze it using these criteria:

Is it really any different from what is currently on the marketplace?

What wants and needs am I fulfilling?

Who will be buying my products or service offering?

How strong are my competitors?

Is the market for my idea growing or shrinking?

Do I have the time and energy to follow through?

Who is going to handle what?

How much initial capital is required?

How am I going to raise extra funding?

What is my maximum total loss including money, time and effort?

What is the potential for return on my investment?

How long is the time frame between initial investment, break even point and getting a return?

What is my exit strategy?

I believe that one should be very careful about how they invest their money. Very often I see people that invest a huge sum of money when the potential for return is low and the risks are high. In this scenario it is better to leave your money earning interest in the bank.

The ideal business idea or opportunity for me, offers a potential for high return, with low initial investment. It focuses on a fast growing marketplace and there is something unique about the proposition.

Alternatively another great form of investment is when the potential for return might not be high but the risks are low, little effort is required and the profits are almost guaranteed. I will only usually consider this type of investment if the payback is rapid and the amount of work required is low.

Let me give you an example based on personal experience on how not to do it. One of the first businesses I started was a packaging company. The market was served by established players and it was being eroded by cheaper imports. Britain’s manufacturing base (my customers) was declining as the UK was slowly turning into a service economy. Margins were tight and my customers were willing to change suppliers at the drop of the hat.

Although we did end being successful, the amount of effort and sheer stubbornness required was out of all proportion to the money making potential. This is a classic business idea that should be avoided at all costs! I vowed when I sold this business that next time I was going to get into a fast growing market place where exactly the opposite was true.

Your evaluation for investing in an opportunity might be different from mine, based on your propensity to risk. If you have a family to support than this reduces the amount of risk that you can take on. Your age, your sex and business background all greatly influence the types of opportunities that you can examine.

Before starting a new business, bear in mind that working as an employee has many advantages to being self employed. Your hours are fixed, the return of investment of time might be less but it is certainly guaranteed, at least for the short to medium term. Starting any new business especially for the first time is risky and demands extraordinary effort before any returns are forth coming.

How do you analyze any new business ideas or opportunities?

This week as I traveled from our offices in Wilmington, Delaware to my home and field office in Aurora, CO, I had a chance to pick up the #1 Bestseller, a great business book that has sold over 2 million copies, “Good to Great” by Jim Collins.

The book is about how to turn a good company or business into one that produces sustained great results.

Your home based business might be doing pretty good, but are you just satisfied with just being good, or do you have the desire to move your home business into the rarified air of greatness?

If I was still a Corporate Weenie, I would have made this book mandatory to my management team.

I am certain that in Corporate America this book has been a topic of furious debate along mahogany row, as the leadership tries to determine whether the books rather controversial viewpoints should be applied to a company that from most indicators is doing very well both from a leadership and financial standpoint. The book would describe this company as simply a good company, not necessarily a great one.

How about your business? You might not even think you have a “good” business. Well, in that case, you might be able to pass the good stage and go directly to greatness as you apply the principles in Jim Collins’ book.

The book suggests that there are common denominators that are associated with his definition of “great” companies. In the absence of these common denominators, a company might be really good in all measurable aspects, but never ascend to the books definition of greatness.

The author and his outstanding research team conducted exhaustive, academically sound research in establishing its criteria for greatness. A very strict criterion that resulted in a somewhat surprising and selective group of companies that met the incredibly strict criteria. You would be very surprised I think by the companies that made the list, and those who did not.

As I continue to read this impressive novel I thought about the home based business marketplace and my own personal entrepreneurial efforts with Tiger Trade, LLC. I thought of some of the ideas the book promoted and how I could apply them to my business endeavors and transition from just being a good home based business, to a great one.

Here is a list of the ideas and concepts gleaned from the book that I have decided to pursue to take my businesses to the next level…a level of greatness.

· Be a Level 5 Leader- The companies that went from good to great did not have the personally dynamic, gregarious leadership you might expect to find. Firms that went from good to great all contained leadership who had a leadership style of personal humility and the professional will to do whatever was required to develop a great company, even if it impacted them financially. It’s not about you; it’s about the business.

· First Who, then What- Good to great leaders did not develop great companies by creating a new dramatic vision or strategy. What they did was to get the right people onboard and the wrong people off-loaded. They flipped the script on the mantra that “People are your most important asset.” That is wrong. The right people are your most important asset. Surround yourself with the right people.

· Confront the Brutal Facts (Yet never lose faith)- Every good to great company embraced what is called the Stockdale Paradox. This paradox was derived from the former prisoner of war Admiral Stockdale. The idea suggests that you must maintain unwavering faith that you can prevail in the end, regardless of the difficulties, AND at the same time have the discipline to confront the most brutal facts of your current reality, whatever they might be. Do this in your life and your business in order to be great.

· Use the Hedgehog Concept- Refuse to just be competent. Transcend the curse of just being competent, even if it is your core business area. Find out what you can possibly be the best at, and then over time pursue that, even at the expense of curtailing something you might have done for years, but can never be the best at. Only what you can be the best at can be the core of a great business.

· A Culture of Discipline- In my business we will just not be disciplined, but our business will have a culture of discipline. When you combine a culture of discipline, with an ethic of entrepreneurship, you get the magical alchemy of great performance.

· Technology Accelerators- Do not rely on technology to ignite a transformation in the business, but use carefully selected technologies with the understanding that it will not be the primary cause of the businesses greatness or decline.

· The Flywheel and the Doom Loop- There is no single defining action or grand event that transforms a company from good to great. There must be a combination of numerous activities over time. The process is like pushing a flywheel in one direction, turn upon turn, building momentum, until a point of breakthrough and beyond.

These are some incredible ideas on how to transition your good home based business into a great home based business. A business that will be sustained for many years to come. A great home based business that will continue to be an asset for you and your children, and even your children’s children. The Bible says that a “good man” leaves a heritage for his children’s children. That is long term success and opportunities that greatness rewards.

Get Jim Collins book. Read it over and over until the principles in the book become believable to you. Understand it, then confidently implement the principles in the book not only in your business, but also in your life.

Warm regards,

Kenny Anderson

One thing I’m passionate about is helping women entrepreneurs create 6-figure businesses, whether that means breaking into 6-figures for the first time, creating a multiple 6-figure year or achieving 6-figure months like I now routinely have (yes, I did say “months!”). I’ve focused on this topic long enough to know what it takes, the mistakes women make getting there and how easy it really can be to achieve once you know a few simple secrets.

Problem is, if you’re struggling or just getting started then the idea of making a 6-figure breakthrough can seem like just a dream.

So, to help you out, I’ve created a simple checklist of what you need to not only make this breakthrough happen for you, but to experience it in your business…fast!

Here’s a simple checklist of what every business owner must put into place to quickly create 6-figures. Remember what I always say: it’s easier to make MORE money than it is to make less, once you know the secrets!

6-Figure Checklist

* Passion
Do you have undying passion for the transformation you create for your clients? Passion will give you energy on the days when you feel like nothing’s working. Tip: remind yourself every day WHY you’re doing what you do.

* Plan
First I read success stories about entrepreneurs who spent months creating their plan, then I read stories about others who “just winged” their way to success. Which is true? They both are!

What I did to first create a 6-figure business, and now a 7-figure business, is design a business MODEL that clearly outlines each product or program I’m going to offer for the next 1-2 years. It’s really a blueprint because it tells me which program or product to offer first, second and so on. By removing the guesswork I’m free to take action.

If you’re only offering 1-on-1 services, or you’re offering a hodgepodge of different programs or products without clearly knowing how each one leads to the next, then you’re likely working too hard and most definitely missing out on opportunities to make more money.

This is why re-designing their business model is one of the first things I do with my Platinum clients. They love it because it transforms chaos and confusion into clarity and simplicity.

* Clarity
Most entrepreneurs have a billion ideas but struggle with creating enough focus to actually implement even a small fraction of them. My recommendation? Get crystal clear on WHO you help, then get just as clear on the situation they find themselves in that you can help transform for them.

For example: while I’m interested in many aspects of marketing, it wasn’t until I focused my passion, energy and attention on the topic of money and pricing that my business took off. Interviews, JV opportunities, speaking offers and clients flowed in.

The same can happen for you. If you need help getting this clear I recommend seeking out a coach who can help you discover your niche. Good news is that the more topic specific you are, the faster and easier your business is likely to grow.

* Courage
If you want a leap in your income then you need to take a leap somewhere else in your business (maybe even in your life, too!). Most women hang back, wanting to know “how it’s all going to work out” before they leap. Sorry, ladies, that’s cheating and it doesn’t work.

But take heart! The more frequently you make a leap such as joining a coaching program, attending an event, learning something new or hiring more team, the more you strengthen your courage muscle. Remember, courage doesn’t mean being fearless. Far from it! What it DOES mean is acting from your heart, even in the face of fear.

Isn’t There More To Creating 6-Figures Than This?

Sure, there are the specific action steps you’ll need to take. But truthfully, if you focus on these four critical steps FIRST, the specific action steps will practically take care of themselves.

Are you are a business professional? Then you are among the busiest of people in this world. They are often on the go during almost every waking hour and simply do not have the time they need to sit down and read a good book, let alone read a business book.

Typically, as you are a business professional you can have so many things going on all at once, it is difficult sometimes to even find time for family and friends let alone reading, which is where an audio business book comes in extremely handy.

If you have not started to download audio books from the internet you are missing a real treat. They are providing many business people with a great opportunity to use their time in a really effective way.

Today, your questions about audio books are answered. We will explain just how they can help the busy professional.

Can an audio business book help me manage my time?

Absolutely. With audio books, you are making the most of your time and effort. It takes a great deal of time to read a book page by page. How many people do you know that have the ability to read and drive at the same time? Is it really all that easy to eat and read at the same time? How about walking and reading or exercising and reading? None of which are particularly easy or even possible. So instead of having to take time out of your busy day for reading your book, now you can listen to an audio business book.

What formats do audio books come in?

What is great about audio books is that they cater to everyone, with the different varieties of formats available. For example, thanks to MP3 format you can download them to your MP3 player and listen while you walk, exercise, eat, and ride the subway or carry out almost any activity really.

With CD format, you can pop the CD into your portable CD player, your car CD player, or your home CD player and listen while you are on the way to work, doing your household chores, or exercising as well. The cassette format is still very popular today, but to download audio books has become so easy and fast, not to mention cheap that they are overtaking in the CD format in popularity.

How does an audio book help a professional?

Well, if you think about it, you often need to learn new skills and information that pertains to your business. Perhaps you have a client that speaks only a foreign language, instead of your native tongue. Well, there are audio books available that can help you learn a foreign language, all the while you are getting your work done, or making the most out of the little free time you get.

What types of audio books are there?

When it comes to the download audio books for business, there are many different varieties, such as foreign language, management, marketing as well as books on different programs, software, and techniques. A lot of research materials for projects and meetings can be found on audio books as well. An audio business book allows you to make the most out of your workday and personal time, which is something a busy professional does not get a great deal of time to enjoy.

Internet business ideas are only as good as the way you promote them online. Many fantastic ideas have been created and websites developed and yet the business fails. Let’s talk about 3 advertising Internet business ideas to make sure you do not fail.

1. The fastest way to get traffic to a website is to create a pay per click advertising campaign. Google Adwords is the most popular of these and you have probably seen advertisers on web pages if you use the Google search engine.

The people who are paying to get traffic are the ads that you see across the top of the page and down the right hand side. These Internet businesses have chosen to promote on Google by purchasing advertising and getting billed by the click. Hopefully they have mastered the skills it takes to write a quality ad and control the cost by bidding only what they can afford.

2. One of the best long term strategies for Internet business advertising is article marketing. Article marketing is where you write and submit articles to directories on the Internet. There are literally thousands of article directories you can submit to, but putting your articles in the top directories is the best strategy.

What makes this a great long term strategy is your articles can continue to deliver traffic to you for many years after they are first published.

By using targeted keywords, search engines will pick up your articles and rank them. All it costs you is the time it takes to write and submit the article which leads to traffic.

Unlike pay per click advertising where your exposure ends when you stop advertising, quality articles over time will be online both today and in the future.

3. Blogging and social bookmarking is a fantastic way to get traffic today. Search engines love blogs and every time you social bookmark your blog post it can be picked up by a search engine that spiders that specific social directory.

Blogging is a great way to get repeat traffic as people can subscribe to your RSS feed or bookmark your blog and come back to it whenever they want to. There are so many different ways to promote your business with a blog that it is quickly becoming the best advertising Internet business idea today.

When done correctly these three advertising internet business ideas continue to work for people. Ultimately you may want to try a little bit of each so you have a well rounded Internet advertising campaign.

As you are getting ready to start a new venture, you will be inundated with so much of information and advice that you will soon get confused. The result? You will not know where or how to begin.

What is the first thing that one does to start a business? What are the important issues that you would need to address right at the beginning? If these are the questions that have stumped you – have no fear! Here we are with a checklist of the most common issues that founders are confronted with. We recommend that you use this checklist like a to-do list. Remember, all the items may not be applicable to your business, so strike off the ones that are not for you and then start work on completing the applicable tasks.

? Decide the business structure you want your new business to have – a corporation, a sole proprietorship or a partnership.

? Write out your business plan.

? Prepare a detailed marketing plan for your product or service.

? Research the funding options. Work on obtaining loans or any other financing.

? Join your local Chamber of Commerce and other appropriate business associations.

? Check with your local and state licensing agencies to obtain the necessary permits and licenses. These will vary from state to state and also within a state.

? Choose a business name and verify that the name is available for use in your state and at the federal level.

? Register your business with your county (if required).

? Obtain a Federal Tax Identification Number, if incorporated.

? Find a place to conduct your business. Research cost of leasing an office and/or tax deductions available if you are starting a home-based business.

? Research and buy business insurance.

? Hire payroll services, assuming you will have employees.

? Print business cards, stationary, and invoice or statement forms.

? Decide on business hours.

? Open a business checking account.

? Order office furniture.

? Set up a business telephone line.

? Purchase/lease computer equipment.

? Purchase/lease copier or arrange for an account at a local copy shop.

? Research and purchase computer software.

? Decide on an Internet Service Provider (ISP) and a host for your website.

? Choose a bookkeeping system and establish a record keeping system.

? Order office supplies.

? Sign up for a Federal Express, DHL or UPS account.

? Hire an attorney and CPA, if possible.

Starting a new business could be a very stressful and laborious endeavor. The key is to make sure that you have taken care of all essential details before opening your doors to customers. While we hope that the above checklist will serve as a useful guide, we have a number of detailed articles on each of the above issues on Aykya. Check them out.