7 Secrets to Building a Successful Small Business We’ll start soon
Ask yourself these questions• Is there a market for my products and services?• Is the market big enough?• Does my stuff solve a problem?• Can I generate enough revenue?• Is it profitable?• Is it a growth industry?
Secret #1 Start off With aSimple Business Vision
Business Vision • What will your business look like in 3,5, 10 years? • What do you want to be known for? • What do you want people to say about your business? Values, principles etc. • What’s the perfect business look like to you?
• What’s your exit strategy?• Do you want to expand it internationally?• Do you want to leave it to your family? Decide and develop a strategy to achieve your goal.
Plan• Set business goals Write them down – Time period (1,3,5,10 years)• Get everybody behind your plan• Keep your plan short and simple – max 10 pages
Goals Marketing1.Personal Goals 1.Who is our ideal customer?2.Business Goals 2.Which customers would we like more of? 3.Marketing plan (include weekly to do’s)Break-even Cash Flow1.Our income and expense 1.Cash flow forecastforecast 2.Expense budget2.Our break-even point
Identify Your Strengths• What advantages do you have over your competitors?• What makes your business unique?• What do customers identify as your strengths?• What problems do you solve better than anybody else?
• List your weaknesses• Develop solutions to overcome them
Identify growth opportunities Be aware of the threats to your growth
Know your market• What trends are taking place in your industry?• Who are your customers? – What area are they from? – How much do they buy ? – How often do they buy?
Know Your Market • What do customers think of your product or service? • Who are your competitors? • How much do they charge? • How do they market their stuff? • What are their strengths & weaknesses?
Plan• Clearly define your target market/s• Develop a detailed promotional plan – What marketing tools are you going to use? – How will you measure the effectiveness of your marketing tools? – Develop a marketing budget
Sales• Set sales targets• Develop a lead generation program – Pick up the phone – Email potential clients – Network – Develop content customers want to read• Set regular appointments
People• Where are the gaps? What people do you need to grow your business?• Develop profiles of the ideal candidates• Get good people with a great attitude• Outsource if you have to
• Develop an operations manual, with your systems, processes, policy and procedures • Develop a training plan for your employees • Focus on results not how many hours theyYou can’t workbuild a big • Inspire and motivate them business without systems
• Purchasing strategy – Who you buying your products and services from? – Are you getting the best value for your money?• What gross margins are you achieving – What margins would you like to achieve?
• Income & expense – Monitor your expense ratios – Develop expense budgets – Get a good accountant to guide you• Regularly update your cash flow• Know your monthly and annual break-even
Never run out of money1.Sales is vanity2.Profit is sanity3.Cash flow is reality