Small Business Revitalization Blog

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!

Talk about being caught between a rock and a hard place!  What is a smart business owner to do?

The bottom line is that action without a plan will send you round in circles faster than a one-armed canoeist! Whether it is a business plan, a project plan or a ‘to do’ list of daily priorities, it is essential to have a written reference point that will keep you focused and motivated. (By the way – your business plan needs to be strategic and action focused - forget 50 or 100 page doorstoppers – make sure you use a 5 page “door opening” business plan instead!).

Management guru, Peter Drucker got it mostly right when he contended: “Plans are only good intentions unless they immediately degenerate into hard work.” Once you have a plan, you have goals and parameters for action – whether or not you make it into hard work or easy work is up to you!! The important thing is to take action.

You can use your plan to:

• Stop chasing ‘shiny new objects’ – you know what you need to focus your energy on to be successful.
• Identify and remove inefficiencies, tolerances and frustrations – and watch your productivity increase!
• Leverage the right opportunities and say no to the opportunities which don’t fit your plan.
• Prioritise daily actions that will make the biggest difference to your business success – stop running from crisis to crisis.
• Recognise and address the constraints and gaps between where you are now and where you plan to be in future.
•  Minimise procrastination and maximize motivation as you see results from your focused efforts.
• Create stability and sustainable decision-making practices in your business.

Most importantly, using your plan, you’ll quickly move closer to achieving your vision – with less effort, less mistakes, less resources and less time – all because you planned for success!

What is your biggest planning challenge as a small business owner? Share it in the comments section below. If you need to know more about door-opening business plans, call the Revitalisation Experts!

Today I’m going to challenge your thinking. To lift the lid off the box you’ve been working in. To create new possibilities for your business, and most importantly, to help you unlock your business potential by finding more time for you to focus on what really matters.

So, why do so many of us feel we don’t have enough time? After all, everyone gets the same 24 hours, 7 days a week, 52 weeks in a year. So how do some people achieve amazing outcomes seemingly effortlessly, whilst the rest of us slave away, working harder and harder and getting further and further behind?

As a business coach, I get to observe all sorts of business owners and many approaches to managing time. What I’ve observed is that the most productive and effective business owners aren’t managing time – they are managing priorities! Time management is a myth!! It is activity management that really counts. So, here’s three less obvious but simple ways that business owners can find “more time”.

1. Plan ahead and prioritise according to your plan.
2. Use systems, structure and routines to free up valuable time.
3. Practice extreme self-care - put yourself first and you'll be in peak condition to perform at your best.

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 Revitalisation Experts!

1. Buy or build your own?
2. Staff or no staff?
3. Do or delegate?
4. Indoor or outdoor?
5. Work hard or work smart?
6. Online or bricks & mortar?
7. Lots of people contact or not?
8. Creative or logical?
9. Capital intensive or at-home start-up?
10. Ideas: innovative or copycat?
11. Secure income or new venture?
12. High workload or systems oriented?
13. You: self-employed or chief resource coordinator?
14. Product/Service: fun, meaningful or serious?
15. Work time: flexible or structured?
16. Individuals or teams?
17. Existing customer base or build-up from scratch?
18. Your talents and passions or any business?
19. Automated business or tied to the business?
20. Growth potential or cash-flow now?

For extra insights, you can also clarify ‘why’ you chose the answer you did. Again, patterns will emerge and you will identify a clear direction for your business search. Once you have a clear picture of the business structure and design which will work for you and your ideal lifestyle, start to investigate business opportunities which meet your criteria.

What is your biggest challenge in starting a small business of your own? Share it in the comments section below. If you need to share more than just a comment, call the Start-Up Experts!

This week I spent 6 hours and completed my business plan for the year.  Unlike many small business owners, I find this document invaluable (and not as a doorstopper either!!) and here's why:

• My business plan is less than 5 pages, but provides a comprehensive roadmap of where my business is headed for the year.
• The key strategy page is posted on my wall and used daily to measure productivity against goals.
• All new marketing and joint venture opportunities can now be pushed through this 'strategic sieve' to see if they'll bring me closer to or further away from my strategic objectives.
• It encompasses my business model and highlights key product development opportunities.
• The monthly results data keeps me firmly focused on profitability and other key measures which will create profitability!

Do you have a business plan that can achieve all this and more for your business?  If not, you may want to consider participating in the Revive Business Coaching hands-on 'Business Planning Workshop'.  Just register your interest on our contact form, including 'Business Plan Workshop' as the topic and I'll be in touch with a date as soon as I can.  It will be a half day Business Planning Workshop in Brisbane towards the end of January or in early February.

I promise you'll leave the workshop with your business plan well underway and you won't need to use it as a doorstopper or dust collector!!

What would it take for your business to be phenomenal in 2009?