Posts Tagged ‘Growth’


7 Ways To Make Money In Your Sleep

3-2 Make Money While you Sleep smallIf you think about the way your business works – you find clients, pitch your goods, land the sale, deliver the product, build repeat business, and work for referrals – there are loads of challenges entailed in every step.  If you want to generate more income with less effort at every stage, the key is automation.  Finding ways to implement systems and maximize efficiencies helps your business earn an income even when you’re not actively working.

  1. Turn yourself into the product.  Once you’ve established yourself as a credible authority in your field, the logical move is to develop a way to market your expertise.  Whether you sell a book or instructional videos, once you’ve created your product and implemented a marketing plan, the hard work is over.  You collect your money while you’re moving on to the next challenge.
  2. Do fewer things.  The surest recipe for failure is trying to do everything under the sun that could possibly be relevant in your venture.  If you settle on a few key services or products, then you can perfect the systems for producing and delivering your offerings.  Always remember that the riches are often in the niches;  if you can offer customers something unique – and do it efficiently – then you’re a standout.  You don’t have to be everything to everyone.
  3. Create continuity.  If you can find a way to build a recurring service plan for clients, you’re maximizing efficiency in two main ways:  you’re creating predictable expenses for your clients, and you’re ensuring continued revenue for your company.  Recurring billing – the subscription model – capitalizes on efficiency both for the client and the service provider.
  4. Sell the system cheap and make money on the refills.  One word:  Keurig.  The dominant entry in the single-cup coffee industry doesn’t actually make that much money on its high quality brewers.  The real bucks are in the coffee refills.  Millions of dollars in revenue are derived from individual sized coffee pods.  Proprietary design is the key to recurring purchases.
  5. Become the middleman.  There’s a reason middlemen exist, and it’s the economy of scale you can find when you consolidate the transportation, sales, and delivery of goods.  Look at Amazon:  they don’t produce the stuff they sell.  They simply attract vendors and find a way to sell, collect money, and deliver products – faster than nearly anyone else in the world.
  6. Become a teacher.  Much like turning yourself into a product, becoming a teacher lets you market your expertise.  Whether you become a part time consultant for other entrepreneurs in your field, or you write a how-to guide for starting your kind of small business, you’ll reap dual benefits from becoming an educational resource:  income from the time you spend consulting or writing, as well as increased visibility for your brand.
  7. Become an investor.  When you started your business, you did it to fill a need you saw in your market.  My advice to entrepreneurs who want to invest is to look at needs (other than the ones you supply) that your existing clients have.  By partnering with other companies who service the same clients, you can find efficiencies and provide an overall better level of service.  It’s a win-win for both entrepreneurs and their clients.

There’s no avoiding the hard work it takes to get a fledgling business off the ground, but once you’ve achieved a measure of success, your most profitable moves will be those that maximize efficiency and generate revenue – even when you’re not actively working.


How to Make More Money without More Customers

2-27 More money from customers smallFable: A man who sold his farm and everything he owned to travel in search of diamonds in a foreign land. After he spent all his money, he lived in poverty for the rest of his life. One day, the successor of the man’s farm was out on the land and found diamonds that reflected all the colors of the rainbow. Morale:  If the man stayed home and dug on his own land, he would have had “acres of diamonds.

Much like the man’s search for diamonds, the secret to increasing profits and growing a business typically already is present inside every company with existing customers. Unfortunately, many small business owners ignore this advice since they are so busy trying to get new customers in the front door that they let existing ones escape out their back door. They focus their energy on scrambling for the next lead, chasing the next prospect, and spend thousands of dollars on marketing to uncover the next big customer. They forget about mining for the “acres of diamonds on their own land”. Remember that every customer that leaves, needs to be replaced by a new one.

Here are ten ways to increase profits by extracting the maximum value from your existing customers.

  1. Sell more. Are the best customers buying all of your company’s products or services? Put together a chart where all your customers are listed on one axis and your products are listed on the other. Place an X where each customer is buying a given product. Use this chart to discover where your holes are. If they already trust your company, they will want to buy more things from you.
  2. Incentivize greater usage. Encourage your customers to use your product or service more often. Offer loyalty programs or bonuses for repeat use to the best customers. This is especially true in an industry where products are commodities or they can be sourced easily. Great examples of this are Amazon Prime and all airline frequent flyer programs.
  3. Communicate Consistently. Use content marketing strategies to send customers useful information like articles and newsletters that are both educational and funny. Keep in touch with your customers at least once a week using multiple mediums so you can be there when they are ready to buy. This can be original advice or links to relevant articles.
  4. Know your customers. Mine the data. Know what, when and how much your customers buy monthly or annually. Invest time and money in knowing exactly how your customers think, what they like, what they dislike, and tailor offers to match. This data can be found in Google analytics, your CRM sytem, your accounting or shopping cart system.
  5. Know your ABCs. Separate your customers into “A”s, “B”s, and “C”s according their life time value to your company. Measure them based on purchases, referrals, and brand recognition. Come up with a strategy to move Cs to Bs and Bs to As.  
  6. Become the “Go-To”. Leverage your strategic alliances to connect your customers to other resources that can fill needs and desires that are beyond the scope of your business. Your customers will view you as their “go-to-resource” which will give you an opportunity to go from being vendor to a partner.
  7. Show thanks frequently. Build customer loyalty by rewarding your customers beyond financial incentives. Call them to express your appreciation or send a handwritten card. Post a thanks on their social media page or feed.
  8. Make an exclusive club. In addition to recognition, people love to feel a sense of belonging. Create a membership group for your customers with special offers and privileges for members. Costco and Sam’s club does this very effectively.
  9. Sell a subscription. Renewable products are ones that customers use up and will need to buy again. Harry’s (razor blades) and Birchbox (cosmetics) are successful examples. This will ensure that the company always has customers at the beginning of every month. According to John Warrillow, author of “The Automatic Customer: Creating a Subscription Business in Any Industry”, any business can be a subscription based company if they think big enough. He suggests starting by asking yourself, “what could I offer to them that is 10X bigger than I do today”.
  10. Just ask. Simply ask your customers what they want. They may not be always be able to tell you directly, but it will begin a dialogue which will get to what they really desire. This can be done easily through two to three question surveys using Survey Gizmo.

Where will you begin in mining your customers?


Why Entrepreneurs Should Fake It Until They Make It

Young Businessman Using a Digital TabletWith the increasing popularity of business-casual attire, a great business suit is not as effective as it used to be in creating an impression of success. But projecting a successful appearance is still important when you want your business to attract customers and clients, as it creates a feeling of higher comfort and less risk in your potential customers’ minds.  I mean, who doesn’t want to be associated with a successful entrepreneur?

Even if your business doesn’t yet have mountains of cash, you can appear prosperous without breaking your bank. Here are a few ways to economically enhance your professional image without misrepresenting your business or yourself.

A Successful First Impression

After a failed attempt at an acting career, Beanie Babies founder Ty Warner became a billionaire by selling stuffed animals. According to legend, he rented a Rolls Royce to drive to sales calls to project a wildly successful image. While we don’t recommend following Ty Warner’s cues on all of his faking- (Warner is still trying to stay out of jail after admitting to tax fraud), you can borrow his moxy for creating a successful impression.

Creating a successful impression extends not only to your car, but also to your business office. Your business may involve two people working in your basement, but unless your basement resembles the Taj Mahal, you will not impress prospective clients by holding meetings there. Until you have a high-profile address where you can meet with clients, a flexible office solution, such as the choices offered by companies like Regus, can enhance your office image while providing services that you need.

You may decide that a virtual office gives you a prestigious address (complete with a phone number and receptionist support) without having to make a big financial commitment.

One extra word of advice, though: make sure that your impression matches your target customers. If you want to attract eco-friendly customers, don’t show up in a Humvee or if you are attracting clients in the pet care industry, showing up in your fur coat is probably counterproductive.

Consider a Website Upgrade

Clients will not flock to your door if your website has a similar production value to a late-night auto insurance commercial. Your website needs to convey a professional image with content that makes search engines place your company toward the top of a search list.

Only you can decide how much help your website needs, but you do not have to spend a fortune to head in the right direction toward a slick website. You can use templates, like those that coordinate with WordPress, to look modern and professional.  And of course, don’t forget to make your website mobile-friendly, as more and more customers are accessing information from their smartphones.

Do your homework by talking to a number of web development firms. Look for those that use words like “SEO,” “interface design” and “regular maintenance.” If you hear the word “cool” too often, head for the hills.

Establish Credibility with a Quick PR Blitz

One way to boost your profile is to be featured in the press.  Having appeared in print or online publications, television shows and/or on the radio can make you seem bigger than you are.

Leverage any relationships that you have to get some PR placements.  If you don’t have connections, one cost-efficient strategy is to hire a “pay-to-play” PR firm, which may cost a bit more for a placement, but guarantees their services, instead of you rolling the dice on a monthly retainer fee.

I did precisely this when I was starting out. I hired a firm that put me on a radio tour.  Within 45 days’ time, I had between 20 and 30 radio appearances that I had made.  Since I only listed the appearances (not the dates of) on my website’s “press” page, that list looked like I had been a go-to press expert for years.

To get the most out of your PR, highlight where you have been featured on your website, in your marketing materials and even in your email signature line.

Work Pro Bono for the Right Clients

Working for free will not generally add to your success. But there’s an exception to this rule: high-profile clients. When you add a big name to your client list, your work is repaid when other big-name clients buy your goods or services. They see your business as a legitimate industry player.

As a bonus, high-profile clients do not have to remain pro bono forever. Do a great job for them the first time, get to know their key decision makers, and you can develop a valuable business relationship in the future.

So, before you hit the big time, act like you are already there and you will be there in no time at all!


How to Choose a Bank for Your Small Business

2-25 Choosing a bank smallOne of the first things you need to do on your path to becoming your own boss is to open a business checking account. Now, you might think it’s best to keep your business account with the same bank where you have your personal accounts, but it’s better not to. Should your business fail and you have both business and personal accounts at the same bank, you risk losing everything because the bank can seize your personal assets to satisfy your business debt.

What You Need in a Bank

Your business needs a banking relationship not just a bank. It isn’t just a place to put your money. It’s a place you have a relationship with a partner that should be interested in helping your business succeed. Not every bank has great personal relationships with its business clientele, so keep that in mind when beginning your search.

While you might only start out opening a business checking account, there may come a day when you want to apply for a small business loan through your bank, so make sure the banks you consider offer a variety of small business services that can support your company as you grow.

Where to Start Looking

Ignore billboards, online ads, and commercials when choosing a bank. You’re better off asking other entrepreneurs for referrals, since they will know which banks are small business-friendly (not all are).

It’s a good idea to narrow your choices down to three, and then schedule time to sit down with a branch manager from each. These questions can help you gauge which is the best fit for your business’ needs:

  • What percentage of your customers at this branch are small business owners?
  • How fast are checks cleared to my business account (both in- and out-of-state)?
  • Is there a dedicated small business banker on your staff?
  • What kind of customer service do you provide for small business?
  • Are loan decisions made locally?
  • Does the small business banker have any influence over the loan decision process?
  • How many SBA loans did your bank process last year?

The point of these questions is to see how much energy a bank puts into managing and developing its small business clientele. You want to feel like a welcome and cherished customer, especially since you will be trusting this bank with your hard-earned cash!

Also consider what you’re looking for in a bank. Do you need to easily get to it to deposit cash each day (if you operate a restaurant, this is a must)? Would you prefer to be able to access your accounts through a mobile app?

Developing the Relationship Over Time

You may have little need to visit your local branch, especially since many banks allow you to deposit checks with a few clicks on your phone. But make a point to stop in and visit your branch manager or small business banker every few months and update them on what’s happening with your company.

Ask if there’s anything new service-wise with the bank. You might find out they’ve got a new banking program that’s perfect for your needs at the moment. Keeping that dialogue going will help you both find ways to work together for the success of your business.


10 Smart People You Need to Meet

2-19 Inspiring People smallI meet a lot of smart business people every day. This happens in person, over the phone, through email exchanges or on my radio show. Here are ten people that blew me away with their brilliance in 2014 (in alphabetical order).

Dorie Clark: One look at Dorie and you know this branding expert is pure genius. My thoughts are not even in the same zip code as hers. Maybe it’s all the think tanks and academic universities she speaks at all over the world. The smartest thing I heard her say: To achieve in today’s competitive job market, it’s almost certain that at some point you’ll need to reinvent yourself professionally.”

Barbara Corcoran: She turned a real estate empire and being “a shark” into sincerely helping small business owners. I remember when I was on TV with her. She has the fastest wit around! The smartest thing I heard her say: “Taking chances almost always makes for happy endings”.

Nir Eyal: This guy knows why people get hooked on a product or service. In one of my favorite books of the year, “Hooked” he shows exactly how to do it. The smartest thing I heard him say: “Companies who form strong user habits enjoy big benefits to their bottom line.”

Tomas Gorny: A former immigrant from Poland, Tomas is huge success story. He founded the company IPOWER that became the fastest growing website hosting provider in the United States. Now CEO of UnitedWeb, he is making his mark helping small business owners. The smartest thing I heard him say: He tells me that his competitive advantage is that people don’t think he is smart since he speaks with an accent but he says, “I don’t think in an accent.”

Sally Hogshead: She is a master at observation and what makes people tick. Her books are well researched and her ideas actionable. The smartest thing I heard her say: “Once you know what makes you valuable to others, you’re more authentic and confident, and more likely to make a brilliant impression.”

Tom Hopkins: This guy started breaking sales records before most of us were out of high school. He has taught how to sell to millions all over the world. When I was in Phoenix, Tom welcomed me into his home.  The smartest thing I heard him say: “Do what you fear the most and you control fear.”

Les McKeown: This guy is always the smartest person in the room. We all want predictable success and Les explains it so we can achieve it. The smartest thing I heard him say: “Heroic acts are powerful, but they are not scalable.”

John Sculley: At age 75, former president of Apple and Pepisco, John is still changing the world. He is called a global storyteller for the digital revolution. The smartest thing I heard him say: “The future belongs to those who see the possibilities before they become obvious.”

Pam Slim: She shows how to get ahead in a world filled with economic instability, rapid change, and 24/7 work. The smartest thing I heard her say: “The quality of your life, and business, is directly related to the quality of your stories. Tell them well."

Paul G. Stoltz: We all know it takes hard work to succeed, but Paul told me the science behind having resliency. The smartest thing I heard him say: “Over time, either adversity consumes you, or you have to consume it. That’s why resilience is so essential to grit.”

Which smart people did you meet last year?


Nextiva Tuesday Tip: How to Measure and Use Net Promoter Scores

2-17 promoter score smallHow loyal are customers to your business? How likely are they to recommend your products and services to others? Doing a Net Promoter Score survey (NPS) can help you get the answers to these questions quickly and take action to build more customer loyalty.

The Net Promoter Score survey was developed by Bain & Company and works like this: You ask customers one simple question: How likely are you to recommend our company/product/service to a friend or colleague? and have users answer on a scale of 0 to 10 (where 0 means not at all likely and 10 means definitely likely.

The test is scored this way:

  • Promoters” are loyal customers who keep buying from a company and urge friends to do the same (scores of 9 and 10)
  • “Passives” (scores of 7 and 8) are satisfied customers, but are also at risk of being wooed away by your competitors.
  • “Detractors” (scores of 6 or under) are dissatisfied and at risk of spreading negative word-of-mouth about your company.

To find your Net Promoter Score, subtract the percentage of Detractors from the percentage of Promoters. The resulting percentage is your score. For instance, a company with 40 percent Promoters and 10 percent Detractors has an NPS of 30 percent.  Any NPS over zero is good; an NPS of 50 percent or more is considered excellent.

In order to make your Net Promoter Score survey effective:

Deliver the survey at the right time. It needs to taken sent soon enough after the customer experience that customers remember it, but not so soon that they haven’t gotten to use the product or service yet.

Include room for open-ended follow-up. After the single question, include an optional section on your survey for additional comments:

  • Please tell us what you like or don’t like about our company.
  • Would you like to be contacted to discuss this?
  • Name/Phone Number/Email

This gives customers who are unhappy with you space to “vent” about what they didn’t like, as well as to be heard.

Take action on both Detractors and Promoters. Promoters are much more likely to be loyal to your business, buy more from your business and prove more profitable to your business. Use tactics such as:

  • Offering them loyalty rewards
  • Offering rewards for referring a new customer
  • Upselling additional related products and services

Detractors, meanwhile, are likely to badmouth your business, so do your best to change what they’re unhappy about. If a Detractor asks to be contacted, do so immediately! Positive outreach can turn Detractors into Promoters.

Share results with your team. Let your staff know your business’s NPS as well as any specific praise or criticism that customers share in the survey. By doing so, you can help them improve customer service and overall performance.


Mondays with Mike: 6 Steps to Building Better Proposals

2-16 business proposal smallWhether you do it many times a day or only occasionally, we all use written proposals from time to time in order to land new clients.  As important as generating revenue is, I’m consistently surprised by how little time many entrepreneurs spend on perfecting these opportunities to shine.  Here are six concrete ways you can make your proposal stand out from the crowd.

  1. Put your pricing options in the right order.  Your best bet is to start with your highest priced option and descend from there.  Why?  Your prospective clients know how much they’re willing to spend, and you want them making comparisons against your high figure first.  That way, every other option looks like a comparative bargain.
  2. Offer three options.  More than three choices can give your prospect analysis paralysis – an inability to decide when faced with an overload of information.  Fewer than three options can make a prospect feel forced into a decision.  Three is the perfect number.  It lets your clients select one option that’s the best fit and discard the options that don’t suit their needs as well.
  3. Include a partially completed contract.  In short, you want to make it as easy as possible for a prospect to say yes.  Doing as much of the paperwork as you can in advance not only makes it easy, but it also gives them a sense of progress toward a goal – in this case, the completed contract.  We’re much more likely to finish a task if we feel like we’re getting somewhere.  Don’t overwhelm your client with a mountain of blank pages to fill out.
  4. Use the power of font size.  I am not suggesting you hide important details in fine print.  What I am suggesting is that tiny modifications of font size can influence the way your prospects read a proposal.  Making the font just one point larger when you mention their name or their company’s name or highlight a key benefit makes the appealing stuff just slightly more apparent.  Reducing the font size one point for discussion of price – the less fun stuff – can minimize the impact of the cost.
  5. Personalize your proposal.  Odds are good that your prospect is receiving proposals from other businesses, and one sure way to make your stand out is by customizing it to reflect unique details just for your client.  If you send off boilerplate wording, it’s going to be less compelling.  If you use your client’s name and refer to specific attributes or benefits for their particular situation, you’re making a connection between your company and the client that’s hard to ignore.
  6.  Use good quality paper.  So many proposals are delivered electronically that seizing the opportunity to present a polished hard copy on heavy, substantial paper will always make you stand out among the other contenders.  You’re showing the client how important their business is to you, and you’re demonstrating your willingness to go above and beyond to ensure high quality results.

Whether you own a construction company that regularly writes high dollar proposals, or you’re a catering company who sends out occasional quotes, making sure you get your proposals right makes a big difference in your bottom line.


6 Steps to Systemizing Your Business

2-13 business systems smallWhether you recognize it or not, your business already has a system. But when tasks take too long, cost too much or create substandard results, your system needs anything from a little Botox to a full face lift. Here are six-steps to help you see what you’ve got, identify where it’s going wrong and fix your system to get your business humming.

Step 1: Document Your Current System

Without documentation, you can’t get a clear picture of what you’re doing now, much less how to make it better. Don’t assume that you know what each employee does. Talk to them before you write down every step, identifying who is responsible for performing each task and the flow of work from one employee to the next.

Many employees will have opinions regarding what tasks need to change (or go away entirely). Encourage them to voice their thoughts so that you can note down that information, too. You are now armed with a playbook that you can review before moving to the next step.

Step 2: Eliminate Unnecessary Tasks

Scan your documentation for clearly unnecessary or redundant tasks (including those exposed during employee feedback), and get rid of them. If your employees are performing ten steps when five steps would do the job without loss of quality, they are wasting valuable time. And the extra steps may even make their work less accurate.

This is not a do-it-yourself process. Before eliminating tasks, talk again to the people who perform them, as well as everyone connected with the process. If Joe recommends eliminating two quality checks in his process, but Mary says she spends too much time correcting Joe’s errors, you need to figure out why Joe is so error-prone, and then fix it.

Make sure that you enter these and other changes into your documentation. You’re going to need it later (and forever).

Step 3: Automate

Your employees can become more effective when you judiciously introduce some automation to the process. With technology costs coming down and becoming easily accessible through the cloud, this is now more viable than ever.  Sometimes, you can also automate with a simple tweak. A tool as simple as setting up an auto-responder provides amazing value by buying extra time for responding to email requests.

Step 4: Monitor Results

Until you try out your new system, you cannot be sure of its success. After implementation, keep a sharp eye on the results. Are operations moving along more efficiently in the hands of happier employees? Or is the process hitting bottlenecks while your employees have become numb with boredom? If the latter, work may slow down, leaving you with a system that looks good on paper, but requires further adjustment.

Step 5: Make Tweaks

If you expect to get everything right the first time, think again. This is typically an iterative process involving testing, tweaking and documenting. You probably will see improvements on your first attempt, but no system is perfect. A tweak made to one task may create issues in a later step.

After tweaking problem areas, change the documentation so that your employees will know the steps that they need to perform, and monitor the results again. Rinse and repeat until the system works well.

Step 6: Update Documentation

Once you are satisfied with your new system, it’s time to formalize the documentation. Your employees will need to follow a procedures manual until they know all of the steps. And, when you hire new employees, you can reduce training time while increasing accuracy when they have a step-by-step manual at their fingertips.

Of course, no system is forever. As your business changes, additional changes to the process are almost inevitable. And, let’s face it: busy business owners don’t have the free time to change documentation on the fly — or even think about it, so put a periodic review on your calendar.

Your review may uncover missing information or, more importantly, the need for system enhancements. A semi-annual or annual review requires only a small effort (sort of like regularly straightening your closets, rather than waiting for a major mess). This effort ensures that your information is accurate, while alerting you if it’s time to go back to Step 2.

A Good System Does Not Stifle Creativity

Remember: a great system for your business does not equate to a mindless factory assembly line. Remove unnecessary, confusing or redundant tasks, and you free minds to develop new ideas. Everyone, from yourself on down, can add meaningful contributions to your business.


How to Hire an Attorney for Your Small Business

Lawyer handing over legal document at  a meeting in a cafeEvery business needs the services of an attorney. Having access to one can help you navigate complex areas like patents, trademarks, copyrights, and contracts. They can also help you choose the best business structure for your company and create employment contracts and nondisclosure agreements, if you need them. Some attorneys specialize in helping small businesses and can be reasonably priced, even for the smallest budget.

Start by Identifying What You Need

Beyond identifying the areas you need legal expertise in, you’ll also need to determine what type of lawyer you need. Some can help with general small business tasks, while others specialize in trademarks, patents, and copyrights. If there’s a specialist for what you need, seek him out. You wouldn’t go to a general practitioner if you had orthopedic issues.

If you have no need for copyrights or any complex legal advice, you can probably get by taking care of your needs on your legal questions with a general small business attorney. If, on the other hand, you want to patent your intellectual property or need several different complex contracts drafted, you’re better off hiring a professional with that expertise.

Ask Your Network for Referrals

Before you do an internet search for an attorney, see if anyone you know is acquainted with a small business lawyer. A referral can go a long way toward helping you find the right person for the job, and it will cut down on the time you spend vetting different options.

If no one you know can refer a lawyer, check with your local SCORE or Small Business Development Center to see what leads they can offer. You might even find one that partners with the local bar association to offer pro bono advice to startups!

Do Some Research

Once you’ve got your shortlist of possible attorneys to work with, dig into their qualifications online. You can review each one’s credentials on your state bar’s website or here. You want to ensure that your attorney is licensed and admitted to practice before the courts in your state. It may also be helpful to see if he has ever been reprimanded or involved in illegal activities (red flag).

Interview Your Top Three Choices

Starting a relationship with a lawyer is something you want to do carefully, because the right fit could make for a long and fruitful relationship. Always ask for business references (and check them), as well as questions like these:

  • Do I need to provide a large retainer to get started
  • What is your fee schedule for routine and non-routine services?
  • Will you provide itemized bills?
  • What is your typical response time?
  • What is the best way to reach you?
  • Have you worked with any businesses in my industry?
  • Can you give me an example of how you have helped clients secure business opportunities?
  • Can I call you on any legal problem?

Not only should the right lawyer give you satisfactory answers to these questions, but you should get a good feeling from her. You need to be able to trust your attorney with your business, so it’s important you listen to your gut in the interview.




 
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