Small Business Growth CycleThe key for small business growth is to start with a solid foundation. That foundation includes a marketing business plan. As we so often hear, planning to fail is failing to plan. And, small business success is about following that plan.The second part of the foundation is to have sufficient capital. What is sufficient capital? Sufficient capital is to have enough set aside to take care of you and the business for at least six months.As a marketing business coach I have seen anywhere from six months to a year. The key is to be in a position to sustain yourself. Also, you want to have enough capital to not only sustain your business but to grow it.There are the two components of the small business growth cycle. You must have a marketing business plan and sufficient capital. Otherwise your probability of getting where you want to go is greatly diminished.Small Business Growth-Do You Have The CapitalWhat is capital? You hear about it all the time. Quite simply, it is the funds you are willing or capable of investing in your business and business growth without knowing when you may see a return.This is where I have seen most business owners come up short. Somehow they assume that magically there will be enough profit in what they do to support business growth.Starting your own business is a great challenge. But, running a business in a manner to where it can grow is an even bigger challenge.In the beginning most businesses spend more money on start up and the first few months than anticipated. This leaves them short of capital to invest in the business. As a personal business coach I can assure you that it is a very good idea to have a budget.This way you know in advance what to expect and hopefully have contingency plans if things, as they usually do, don’t work out as intended. If you don’t have extra capital or know where to get it then you really don’t have a plan for your business growth.Small Business Growth-It Depends On CapitalAs a personal business coach I have observed that the number one killer of small businesses and the dreams that they represent is lack of capital. Very often small business will start out and be growing.Yet, the funds aren’t there to help build the processes and structure to support the growth After the unforeseen expenses and unexpected needs there isn’t much left over for business growth.This is a problem for several reasons.If you can’t fund growth, your level of service or the product quality that enabled you to grow diminishes.
When your level of service or product quality diminishes there is a decline in customer confidence.
With a decline in customer confidence there starts to be a decline in business.
If the decline isn’t addressed early on then the business gets a bad reputation and then business growth goes from a hill to climb to a mountain that cannot be scaled.Small Business Growth-Have A Capital PlanFor all self-employed business owners entrepreneurs and solo professionals it is important to have a capital plan. Some sources of capital can be a bank, the Business Administration or private investors. I caution against private investors. At a bank maybe you can set up a line of credit. The Business Administration has some good loan programs.If you have a receivables problem there is factoring. There are also business capital sources outside of banking. There are business capital companies that can help you set up business lines of credit or use your assets as collateral for growth capital. They can also help you set up leases and this can improve your balance sheet.The key is to have a plan before you start your own business Know your options when it comes to capital. When you know your options you are much more likely to achieve the success and business growth you desire.
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How To Successfully Drive Business Change
As an owner looking for ways to improve your business processes and your business performance, you are no doubt on the look out for new ideas and strategies to implement.How lucky you are that in this modern world there are so many ideas and strategies to choose from!Of course as you mature as a business owner you come to understand that it is not access to new ideas that will make a difference in your business, it is your ability to implement those ideas and drive change that will determine how successful you will be.In my professional experience as a business coach I have observed time and again that the most successful business owners are those that can embrace the need for change and find a way to motivate and empower their staff to drive the business improvement process.But change does not come easy to any human– we all seem to have a fear of moving away from what we know, even if we understand that we could always be doing better!One of the business coaching ideas I use with my clients is that your ability to make changes in your business life (and indeed your personal life) depends on the strength of your personal DVP formula.What is the DVP formula?It is a concept that says that successful change requires a high level of1. Dissatisfaction;2. Vision; and,3. Planning.What does that mean?If you and your team are not really dissatisfied with your current position, why would you commit to a change strategy? Why change something if it isn’t broken? If you can live with the current position, or have lived with it for a number of years and the sky has not yet fallen in, there is no perceived need to adopt a different way of doing things– even if you understand that a change may lead to better results.The trick then is to understand just how dissatisfied you and your team are in relation to a specific business process or financial outcome. If the drive to get to a better place is not strong enough, you either need to find a way to increase the level of dissatisfaction or accept that change will not occur and move on to another business issue.The second element of your DVP formula is to make sure you have a very clear vision of what you want to achieve. Any change process you start without having a strong vision of where you want to get to is destined to fail.Finally, once you have a strong desire to make changes to your current position, and you have a strong vision of where you would like to get to, the success or otherwise of your change strategy will depend on the strength of your plan to achieve the change.So the DVP formula says that changing a business process is more likely to be successful if you and your team can develop a high level of dissatisfaction with what you are currently doing and currently achieving, and then develop a strong desire to get to a better place, and then develop an effective planning strategy to move you and your business to the desired result.If any of these three elements are not strong enough, you are not likely to achieve the results you want.How To Apply DVP In Your Business.Experience has shown me that the best approach to driving change in a business is to engage the team early in the process.Within a workshop environment, get your team to focus on the business process you want to change and fully discuss the negative impact it is having on the business as a whole and most importantly, on the individual team members themselves. List down everything that the group discusses– the more negatives they find the better!From there your team should talk about the types of improvements they would like to see in the business and in the lives of the individuals and what the business would look like if these improvements could be made. The more you focus on the improved business results and the improved work life opportunities, the more you and your team will become dissatisfied with the current position, and the more likely you are to commit to a change strategy.Again, use a whiteboard to list the benefits that can be achieved by making the changes. That list of benefits will ultimately define the vision of what you want to achieve. Using an open forum discussion process you should be able to develop a very clear understanding of what vision you and your team are willing to commit to.Having developed a full understanding of your current position and a strong vision of where you would like to get to, it is then time to discuss ways that you can move your business towards the agreed goals. Brainstorming ideas will ensure everything is considered and ultimately this list of ideas can be distilled down to what is the most appropriate strategy for your business and your team at this time.Follow this process and your ability to drive a successful change strategy in your business will be greatly improved.Applying DVP To Your Personal Life.Interestingly, this DVP formula is also amazingly effective in making changes to your personal life. Do you want to stop smoking, lose weight, or make a career change?None of these things are easy to achieve, but how much easier is it when you become so dissatisfied with your life that you are desperate to make a change, when you have a strong vision of yourself as a non-smoker, a fitter person or working in a job you love, and with the assistance of a friend, mentor or professional you are able to develop and commit to a step by step plan to achieve success?DVP Will Work In Your Business.When I first discovered this DVP formula I thought it was theoretical rubbish!Having applied it as a professional business coach over many years, and having applied it to some of my own personal issues over the years, I can assure you the DVP formula is very real and very effective.I encourage you to apply it in your business as soon as you can.
Finding the Home Based Business That’s Right For You
Once you’ve chosen to get ongoing in a home based business you’ve got a lot of choices to make, and the prevalent one is… what company to become a part of? In this piece of writing we’ll be talking about ways that you can discover the home based business that’s correct for you!There are numerous different elements to finding the right home based business, product, compensation plan, up front cost, time commitment and choosing an up line or sponsor. These 5 factors are key in finding the home based business that is going to allow you to be successful.First let’s talk about product. All home based businesses offer some kind of a product or service that you’re going to be marketing. If a company DOESN’T have a product that is a big red light it means the
company isn’t legit and you shouldn’t even contemplate it.When it comes to choosing a product you’ll want to locate something that you are passionate about and that you can market with enthusiasm. If you don’t actually like the product or service you’re marketing you won’t be any good in the business… period. Sure you may be able to market it
for a little period but after a while you’ll grow tired of pushing product you don’t believe in on people.Figure out if you want to market a physical product or some kind of service. You don’t have to comprehend everything about the product but it is always beneficial to find out if it really has value and is going to be good for the consumer. Once you’ve found the product or type of product you’d like to market you’re on to question number two… compensation plan.There are a lot of distinctive compensation plans out there in the home based business industry. Some are good quality and some are GREAT. Some are intended to allow you to make a lot of money up front and others are more tailored to building a steady stream of income that will be around
for a very long time.So when looking at a compensation plan you’ll need to ask yourself this… how much money do I need to make up front to be pleased? Talk to people that have been in the business formerly and get testimonies to find out if the compensation plan really delivers and then start thinking about number
three… up front or start up cost.Whenever I chat to people about a start up cost they usually get a little spooked at this time. The certainty is that any LEGAL business costs capital to establish. A job you get for free but a business will always cost money, that’s just how it is.You’ll want to figure out just how much funds you are willing to invest in a business up front. A home based business can cost anywhere from $50 – $5000 an it’s a totally personal choice how much you want to expend. Sometimes the $50 company can be just as rewarding as the more expensive
one… but it’s all up to you.If you are married you will want to sit down and talk to your spouse about just how much money you can allow to invest again, it’s a personal judgment that has to be made by you and you alone.The fourth thing you’ll want to think about is time. How much time are you willing or able to invest in a business up front. Some home based businesses are more part time than others.In some companies you’ll need to spend just a few hours a week to see success in others it will be more like a full time job. Like the question of money only you can decide how much time you are really able to spend on a home based business in the opening stages. Also feel free to ask the person in the business you are thinking about joining how much time you will in fact need to spend to be profitable.Finally there is the problem of picking the right up line or sponsor for you. Like the other questions this is a very special issue that only you can really determine, but finding someone that you like and
admire is very important.You want to work with someone who is going to invest some time into making sure you are as equipped for success as possible and most significantly you want to work with someone who has the expertise and the know how to show you exactly how to become profitable.If you answer each of these questions and take your time you will have no problem finding the home based business that is exactly what you need to become tremendously successful. Follow your instincts, do your research and there is no uncertainty you will be on your way to a flourishing career working from home.