Small Business Revitalization Blog

Have you ever wondered how Richard Branson built his empire from nothing?  What’s certain is that when he was 19 and larking about with his student newspaper he didn’t sit down and write out a business plan that included owning a couple of airlines, a space program, an island paradise and a financial institution or two!  

At 19 Branson was just like most small business owners… thinking really creatively about where  income could come from so he could pay the bills.  So what changed?  Those who dare to think big with their businesses are adept at taking the next step…

What’s different about their next step is that it is the step beyond what they can see clearly now.  Leaders who live large are willing to take steps into the unknown.  If you want to live a life larger than any movie star or business guru, this is the first and only step you need to take… and you’ll need to take a lot of them!!

So what’s the use of a business plan or strategic plan if stepping beyond the obvious is all that’s required?  Well, this morning I woke up at 4am (sleepless in Brisbane) dreaming intricate details of the products I’m creating for BlissTribe.  

Over the weekend we had done some creative brainstorming on BlissTribe and this had clearly carried over into my subconscious.   Last night those plans showed me the next steps beyond my waking imagination…that’s why I create plans!! I use plans to dream and to create… to develop my ideas beyond what I can see now… to catch glimpses of what else is possible and to discover what those ‘next steps’ could look like.  

Does this make planning sound just a little more interesting and appealing to you?  If you want to accelerate your business with ease… the Revive Business Coaching Planning Playshop on 21 June could be just the catalyst you require!

If you are tired of throwing out your strategies time after time (or you need to throw out the ones you've got and revitalise your business!), the phenomenally useful book “Rework”, written by the founders of 37Signals, offers some of the best advice on business strategy I have seen in a long time…  consider these five little gems (and there's more Rework inspiration at www.onstartups.com) :

“Great businesses have a point of view, not just a product or service.”  If you ever wondered where to find your twenty of so points of difference to your competitors, this is a fantastic place to start!

“You have the most information when you’re doing something, not before you've done it.”  The best way to answer your strategy questions is to put your toe in the water and get real customer feedback.  Don’t just imagine… test and measure!!

“Saying yes when you should say no leaves no bandwidth available for the great rather than the merely good.”  What’s NOT in your strategic plan matters more than what is in some ways!!

“The longer it takes to develop, the less likely it is to launch.”  Quick wins… quick wins… quick wins are the key to getting traction and profits quickly. I launched a product for BlissTribe before I had a website… I was testing the BlissTribe concept and playing with ideas… now I know it has great legs and is worth putting lots of time into!!

“A business without a path to profit is a hobby.”  This is my favourite… I see this happening every day with new businesses… the funny thing is an hour or two spent on developing your business model (ie the plan of where your profits come from) will solve it!!

If you want some different perspectives on Accelerating Your Business strategically, the next Revive Playshop is for you.  21 June 2010 in Brisbane, Australia – miss it and you’ll miss out on insights that will make your business more profitable than you can imagine!!

There's more Rework inspiration at www.onstartups.com too - what's your best strategic business advice?  Share it below...

New business owners often get stuck when it comes to setting pricing. Pricing is determined by factors such as positioning, competition, market demand and, surprisingly, how you value yourself and the services and products that you offer!

Have you ever found yourself pricing a product or service in your business based on what you would pay in your current financial circumstances?  Did you stop to think about whether your personal perspectives are in any way a good match for your ideal customer?

Pricing is a choice.  But rarely do business owners exercise that choice with awareness of the potentials created by different price points.  Let’s consider a brief case study…

Erin is a natural health practitioner who specializes in a couple of healing modalities.  She is making $60 an hour and sees clients for 20 hours a week on average.  This equates to $1200 a week – not quite enough to put her into GST territory, but getting close.  By the time you take out taxes and costs of running the business (eg marketing, hiring space, training etc), Erin brings home closer to $30 a session - $600 a week is not a lot to live on!

So, let’s have a look at the common small business traps Erin has fallen into: She is doing what she loves and is great at, but is not reaping the financial rewards – she needs to charge what she is worth.

• She is swapping time for hours – there is no leverage in her business – if she doesn’t work, nor does the business
• She has not differentiated her service sufficiently so that clients will pay a premium.
• She doesn’t believe people will pay more than she is charging – but she hasn’t tested a higher pricepoint.
• She doesn’t like asking for money for helping people - her beliefs are in conflict with her purse!

Have you ever fallen into any of these traps?  What choices did you make to improve your financial position?  Share your story below – just click the Comment link.

Need inspiration for making more money in your business?  Book your place for the April 19 2010 Playshop:  ‘Show Me The Money’ – you’ll discover more about money and your business than you thought possible!!

(Kirsiri - a Passion Fest highliight!)

Are you better off having a strong vision and not so strong implementation, or a weaker vision and phenomenal implementation?  For business owners this question can mean the difference between success and failure.  Here’s a small case study that demonstrates exactly what the risks are…

I went to a local Passion Tasting Festival on the weekend.  The idea of the festival was engaging.  The publicity on the festival was great.  The website was fabulous. The vision sounded intriguing.  But…it was a complete fizzer…

The first warning sign was it cost me $100 a head to get in the door!  Quite a daunting price, but I was primarily going as research for a new venture.  When we arrived, we could see about 10 tents on a sports field – I could feel that $100 disappearing before my eyes.  Once inside, we discovered that there truly was little to see besides a few market stalls, the occasional performance (an excellent tribal dance by Kitsiri!) and almost nothing new to discover when it comes to living your passion.  What’s more, there were only about 10 other paying customers there…

So, what went wrong?  Strong vision… but in a nutshell the pricing strategy was a failure!   When you set pricing for anything, there are a few things to consider if you want to be successful…

* What is your end goal?  Often there will be a trade-off between volume of transactions and gross profit – work out which one is most important to your business.

* What creates value for your customers?  In this case, their stallholders required a high volume of traffic and festival visitors required a high volume of interesting things to see and do… both missed out!!

* If what you are doing isn’t working – change something!!  It must have been clear some weeks ago that ticket sales were virtually nil.  Instead of slugging it out and failing, what could have happened if the organizers were willing to sell tickets for $10 each?  At least a few hundred people would have turned up… and stall holders and presenters would have been happy – a starting point for future events… I heard they were actually turning people away at the gate who didn’t want to pay the premium gate price of $125 a ticket!!

The lessons?  Less rhetoric, more understanding of your customers.  Less greed, more flexibility in your business model.  Business really is that simple!!

Want to know more about pricing and how it can make your vision rock?  Check out this month’s Playshop – it’s all about money!!

I was talking with a business coaching client recently about what they had learned during the GFC.  One of the key things they are changing in their business is the way they look at debt – instead of pulling every cent out of the business and investing it personally, they are now considering ways to reinvest their profits into the business so that they need never worry about another financial crisis again.

This conversation reminded me of some uncommon but simple rules for business prosperity that I learned from Access Consciousness… what would change in your business and your life if you did these three simple things?

1.    Save 10%
If you put 10% of every dollar that comes into your life away and never touch it. Within a year, your whole financial situation will change. When you save the 10%, you finally realize that you have money!

2.    Ask Questions:
With everything you buy, ask: “If I buy you, will you make me money?” If you ask that, every molecule in the universe will support you in making money.

3.    Willingness to Receive
Many business owners are very independent and not in the habit of being willing to receive…  What would it take for you to be aware of where you cut off the energy of receiving because of your point of view, your judgments or your unawareness of the possibilities that could occur if you are willing to ask more questions?

If money weren’t the issue, what would you choose?

		Have you ever noticed how many people talk about business as being hard work, boring or too difficult?  Have you ever wondered what else was possible?  Most people think business must be done in a ‘traditional’ way, where it is all very heavy and responsible.  What if you could function from a space where your business was joyful, creative and amazing – everyday?

When I started my businesses I only had two criteria:  that I could make insane amounts of money and that I could have a really good time doing things I love…  Yes, it is possible, and here is one of my favourite ideas for creating a phenomenal business that works for you.

Have you decided that you are the business?  When a small business first starts, it is common to see the business owner being everything to everybody and suffering under the strain and stress!  Often this is a result of being under-capitalized or thinking that you ‘should’ be in control of everything.  So, what if you were willing to allow support to arrive from anywhere?  What if you choose to focus on your strengths?  Would you be a lot more productive?

Is it time for you to get creative in the ways that you attract support for your business.  Consider:  delegating, outsourcing, contra arrangements, networking, mastermind groups, coaches, mentors and most of all generating opportunities by being willing to ask “What else is possible?”…  

Rewarding synergies are created when we are willing to ask for help.  Even the Lone Ranger had Tonto!  What would it take to make your business phenomenally joyful?

Many of the businesses struggling in the current economic environment are actually facing the same core issue:  their business model only works in a growth economy - that means it is looking a little beaten and broken right now.  An effective business model will work for your business in fair weather or foul... so what are the key issues you need to consider in developing a really profitable business model?

In essence your business model must be strategically designed so that your business can deliver you with lots of cash – regularly and easily!  As a business coach, I often observe that this part of the business is the most poorly defined for start-up businesses.  

If you don’t know who is going to give you money, for what, why they’ll hand over cash and how that will happen systematically, you don’t have a business, you have an interesting product or service idea, at best!  To build a sustainable business you must develop your ideas into a profitable business model!!!  

If your business model is based on one-off transactions you need to consider alternative models as the model most likely lacks sustainability.  To start with, you need to be able to offer a solution to the following:

• What do you offer and why would people choose your products/services over anyone else’s?
• What are your supply sources and how do they enable you to maximize your profit margins?
• Where will you find a ‘hungry market’ and how easily can they find you and buy from you?

Once you can answer these three questions you need to put your ideas into practice and work on fine-tuning your model so that it works everytime.  If the basic model is strong, then when the economy changes, in most cases, you will only need to tweak your tactics, rather than reinvent your business from scratch.

The businesses which will grow the most strongly in the next boom will be the ones which have created the strongest business model during the recession! 

What is required for your business to be financially successful?

For many small or micro businesses, it is tempting just to get a bit of marketing going and forget about some of the more tedious basics.
I know it sounds boring, but a little bit of attention to some legal basics at the beginning can sure save you a lot of hassles and stress later on…Here's my top 3 essentials!

1. Make your business work for you financially. Get a good accountant and ensure that you set up a business structure that works for you on multiple levels (taxation included!).
2. Register your business name, ensure your business name and logo are protected by trademarks (national or international) and register any domain names that relate to your business.  You want to own the visual and naming space that your business occupies.  Don’t run the risk of someone liking your name and ‘borrowing’ it for their own purposes!
3. Acquire the necessary business insurances e.g. public liability, professional indemnity etc.  Every industry is different in its requirements, so obtain the appropriate advice.

You don't have to make it difficult...use the government resources available in your state to get started!

		I come from a family packed full of entrepreneurs and small business owners. Just lately I've been to quite a few family functions and have been loving talking to people about their various businesses.  What's interesting is how often people expect a simple perfect answer when they haven't actually told me what they really want to achieve!  To be successful in any area of your business decision-making, you need to start with your objectives and goals!

For example, I am commonly asked about how to set a marketing budget: "Do you set the marketing budget as a percentage of sales or are there better options?"  My usual response is "It depends, what are you trying to achieve?" 

There are some broad rules of thumb around percentage of turnover for most industries, but if you really want to set a marketing budget that is appropriate for your business you need to ask yourself the following:

• What are the specific business objectives that my marketing budget is supporting?
• What marketing strategies do I need to use to achieve these business objectives effectively?
• How much will effective implementation of these marketing strategies cost?
• Are there other hidden costs involved?  (e.g. lots of time or resources, or compromises on gross profit if pricing strategies are a part of the solution?)
• Can my business afford this marketing strategy?  If not, what are my alternatives?

When you ask questions like these, you are setting your marketing budget strategically, rather than operationally.  You are seeing this budget as an investment which will bring a return to your business... just make sure you measure the results of your efforts so that you know exactly which 20% of your marketing budget is creating the 80% of the results!!!

+ What feedback have clients and prospects given on my pricing lately? (Were they overwhelmed by the great value offered, or were they arguing over the bill?)
+ What is the value I am delivering compared to competitors? Where is my pricing compared to competitors?
+ How do I want to position my products or services? As really amazing value for money or at the higher end?
+ If clients are asking for discounts, have I negotiated on what I'm offering them, rather than on my profit margin or prices?
+ If you are changing your pricing consider: What will be the impact on sales volume? What will be the impact on profit?

What is your biggest challenge as a small business owner? Share it in the comments section below. If you need to share more than just a comment, call the Resuscitation Experts!