Partnership in Business

During your business interactions you will meet new people every day or, at the very least, every week.  When you meet new people you should assess and determine if they can be an asset to help you achieve your personal or career goals.  By looking for certain traits among your acquaintances and contacts you begin to identify the best business partners with whom you should develop a connection or strategic relationship.  Bond with those who celebrate your success and offer a helpful ear whenever you face a problem.  The right people rejoice over your triumphs and do not feel obligated to “one-up” you.

Business development requires the art of utilizing resources and individuals and then integrating them into profitable solutions and economic opportunities.  Successful business models are molded after identifying or creating a market condition for demand and coming up with a feasible solution which can be adjusted and sustained over an extended period of time.

It takes the “right” people to help you move forward; always identify and evaluate the key people in your life along with the opportunities and resources from that come from new acquaintances.

Tough Love for the Small Business Owner

In small business your services and products are your bond.  You will gain and lose customers through the life of your business; you don’t have the luxury of being able to generate a new customer within your market for every one you lose due to poor service or product.  This reality must balance in your favor and improve as time moves on while you take advantage of those who don’t return to do business with you by learning from your mistakes.  Small business owners will have multiple opportunities to close down business operations in difficult times.  The successful business person must learn to overcome these types of temptations and continue to work through the key stages of development, find ways to solve operational dilemmas, and improve the business by creating or restructuring the overall foundation.  As you spend time developing your business never forget that your customers will provide valuable feedback on how well you are doing.  Remember, although you may work hard to create “new value,” your customers will be the final judge of the past, present and future.

 

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The Balance of Time

The small business owner has to make more decisions than the manager of a large corporation.  Because of limited resources you can’t always have a predetermined method of dealing with certain daily activities.  A method of activity must be created so that a business owner can work on their business and work in their business.  The “balance of time” for a business owner is as critical as sales revenue.  In the early stages of development the decision making ability of the owner will become the most valuable business resource within the organization.  Even though they may maintain a high level of expertise along with specific business goals, a second perspective is a necessity to provide a clear picture of business operations.  Information from secondary sources is often overlooked or not considered important; this can lead to many big mistakes.  Good information helps make better decisions.  Time, decision making, and information are linked together in the developmental phases of every business.

Small Business Workplace Dynamics

You need to develop good work habits in the world of small business.  In most cases you will play many roles in a small business organization which demands that you are able to stay on task and get the job done.  Determine when and where your time is best spent as it relates to producing profit and allows you stay in a position to analyze all of your operations.

Business owners must move out of their “comfort zone” and work strategically.  Every business will require multiple skill sets to carry out all operations; it is not necessary for a business owner to master every critical function but they must understand how it all comes together.  As a business changes the work dynamics will also change.  A successful business owner must stay involved in the alignment of all processes and procedures as they relate to generating income.

The Skill of Business Planning

To grow a business you must develop the skill of making plans and thinking things through before committing your precious resources to a project or business model. You have limited time and resources, and a well-organized person who manages their time and resources well will be more successful starting, growing or funding a business.

Planning is not just something we do in business; it is a skill that will define the longevity of every business. The process of business development is a continuous action for every business owner. Every business will expand, grow, change and evolve at different critical points in time. The nature of business requires dedicated planning to regulate and expand business operations based on a methodology created through logical sequencing.

Small Business Management

 

 

 

 

 

The game of “pass the blame” has no place in the world of the small business.  If you are the owner, then you hold the key to all responsibility.  The price for “passing the blame” is failure.  You must take charge and see things through to their completion.  The most important piece of advice for the start-up business owner is:  never give up!  The business start up phase can last a full 2-3 years.  This does not mean it will take you that long to start making money; it does mean that during this time frame your business model will continue to evolve.  Always remember the factors that motivated you to start your business.  The “why” related to starting your business will be your foundation and keep you moving along even with the unplanned roadblocks get in the way.  Never hesitate to utilize professional expertise outside of your business model to help guide you along the way.  More information gives you the power to make the best decisions.

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What is an Entrepreneur?

Having your own business is more than just creating a job for yourself and running your own company.  You will have to manage the basic roles of marketing, finance, administration, and the responsibility of personnel.  It is rare for one person to play all these roles equally well.  To get the best results you must know which parts you can handle yourself and which parts you are going to need help with.  Think about where you spend your time and where you are the most profitable.  The time you spend in your business should be based on this principle: put yourself in a position where your profitability is highest.  It is easy to see the potential of others but take the time to position yourself there as well.

Pricing Strategy, Revisited

The most common question small business owners have about developing a pricing strategy is, “How do you know what price to charge?”

Our answer is actually quite simple.  You set your pricing through a process of calculating your costs, estimating the benefits to consumers and comparing your products, services, and prices to others that are similar.

Set your pricing by examining how much it costs you to produce the product or service and add a fair mark up for profitability. The pricing strategy you develop will answer the following questions:

· What is the cost of your product or service? Make sure you include all your fixed and variable costs when you’re calculating this; the cost of labor and materials are obvious, but you may also need to include freight costs, administrative costs, and/or selling costs, for example.

· What kind of ROI (Return On Investment) are you expecting with this pricing strategy, and within what time frame?

As always, we are happy to answer any questions you may have or if you would like more information.

What about you? What strategies work for your business?

Small Business Growth and Development: Part 2

How do you define growth?  While some have a goal of an increase in sales, others look for new product or a larger customer base.  Consider these questions when thinking about growth and your type of business.  Can growth be achieved by:

– selling more of your existing products to former or existing customers?

– selling new products or services to previous and existing customers?

– finding new markets for your present products?

– developing new products or services for new groups of customers?

Each of these options have strategies that can propel your business to the next level.  A business’ strategic plan would include stepping stones, a clear path to your desired outcome.  Consult with your business advisor to begin!  They will also recommend timing and sources of financial assistance and help anticipate cash requirements and financial risk .

Small Business Growth and Development: Part 1

Last time we discussed preparing for growth, this week let’s focus on how to start planning.  Like all other aspects of business, you need a strategy for business growth.  Think about these factors when deciding how best to grow your business:

· Strengths and weaknesses of the business
· Customer needs
· Financial resources
· The corporate mission
· Competition
· Life cycle of existing products/services
· Profitability of potential products
· Research/development time and cost for new product
· The current business environment
· Sales/service ability

If an entrepreneur makes errors when evaluating these factors, the effects could be extremely costly.  Growth cannot be uncontrolled or too rapid.  Planning for a business in growth should be planned carefully as you did for its start-up.