Growthink Blog

Entrepreneurs Don't Plan To Fail, They Fail To Plan


Categories:

I periodically read research reports about business failures. I always find them interesting, although often they are depressing.

Such as what I recently read. Which was research from Bradley University in Peoria, IL.  This research found that 70% to 80% of new businesses fail within their first year.

And while this was frustrating enough to read, the research further stated that half of those companies which do survive the first year will fail within the next four years.

Now, let's turn to the cause of this failure. According to Dun & Bradstreet, the number one cause of this failure is lack of business planning.

What this essentially means is this: entrepreneurs and business owners don't plan to fail; rather, they fail to plan (which causes them to fail).

In my view, there are two types of business plans. The first is the business plan you must create when you start your company. The purpose of this plan is to ensure you have fully thought through your venture.

Among other things, this plan includes significant market research. It assesses your market size to ensure the opportunity is big enough. It analyzes customer segments to confirm that customer needs match your company's proposed product and/or service offerings. And it analyzes the competition to determine how your company will position itself and how you will most effectively compete.

From a strategic standpoint, the business plan must document your marketing plan (how you will secure customers), your human resources plan (who you will hire) and your operations plan (what key milestones you will accomplish and when).

When you're done, your business plan will confirm your market opportunity and give you a roadmap to follow. It will also be required should you wish to gain funding from investors and lenders.

Now, once your business is up-and-running, you still need a business plan in order to succeed. I refer to this type of business plan as a "strategic plan." I term it as such because this type of plan requires much less research (since you already know who your customers are, the market fundamentals, and lots of information about your competitors). Rather, the focus of this plan is strategy.

Specifically, this plan needs to identify precisely:

1. Where you want your company to be in five years

2. What you need to accomplish within the next year to progress you to that point, and

3. What your strategy is to complete your key milestones in the next 12 months

In determining the optimal strategies, you need to consider your company's strengths, and opportunities that can best leverage them. If you don't take time to do this, you become too tactical. That is, you continue to use the same tactics that have gotten you to the point you are at. And oftentimes, the strategy and tactics that got you where you are today are NOT the strategy and tactics that will get you to the next level.

So, spend time figuring out the best strategies to follow. The good news is that you've already proven you can execute on strategies (which is what got you to where you are now).

After you figure out the big picture opportunities to go after (which often fall into the categories of further penetrating your existing market, going after a new market, or creating new products/services for existing and/or new markets), you need to revisit the three core strategies you developed in your initial business plan.

To start, you need to modify your marketing plan. Importantly, your marketing plan should always be adding new marketing channels (e.g., direct mail, print, radio, search engine optimization, etc.) as the more channels you have, the more customers you will get and the less risk you have of one channel losing effectiveness (think about businesses who used to get all their customers from the yellow pages).

Next, consider your human resources strategy. What new people will you need to hire to accomplish your key goals in the coming years? And finally, you need to develop your operations strategy. Figure out what key tasks and milestones you need to accomplish over the next year and break them down into smaller projects that you and your team must accomplish. And then create a master schedule showing who, how and when these projects will be completed (I like using a Gantt chart to do this).

To achieve maximum success in your business, create a business plan when you start your company, and annually create a strategic plan to grow your company.

The planning process will force you to focus on accomplishing the right things in your business. Since even if you execute flawlessly, if you are executing on the wrong strategies and opportunities, success will elude you.


The 10 Quickest Ways to Improve Your Website


Categories:

Regardless of how good your current website it, I'm confident it can be better. In fact, on my website, I'm constantly testing new ideas to improve it. I test different colors, different headlines, different pictures, and so on. And each time, I learn ways to improve.

Below I summarize the 10 key aspects of your website that you should review and improve over time.

1. Look and Feel

The look and feel of your website is much more important than you might realize. Because when visitors go to your site, it's critical that their first impression is positive.

Think for a minute about who your customers are and what they are seeking. Then cater to them. For example, the look and feel of Porsche's website is extremely cool and elegant. Conversely, the look and feel of the Ben & Jerry's website is much more animated and fun (right now it's showing cows drinking on the beach).

Both websites do a great job of conveying the image in which they want customers to view them. Make sure that the look and feel of your website does the same.

2. Copywriting

I'm sure following situation happens to you (since it happens to me all the time): I go to a company's website, I read the homepage, and I still don't know what the company does.

So, I end up going to the "About Us" page to read more and to try to decipher what it is that the company does.

Importantly, I'm the exception. Few other visitors will invest the time to figure out what your company does. Rather, if they don't immediately "get it" and you don't immediately show them how you will benefit them, they'll leave and be gone forever.

A quick tip here is to use compelling headlines. For example, if your website sold tires, a great headline would be: "See Our Selection Of Over 500 Brands of Tires at the Guaranteed Lowest Prices." This is pretty much what all customers are looking for (selection and best price), so this headline lets visitors quickly know what the company does and that they are in the right place.

3. Navigation

I'm sure your website has many pages, and it's your job to make it as simple as possible for your visitors to find the pages they want.

Navigation should be done on a top and/or left navigation bar, using links at the bottom of your website AND within the body text of all pages of your site.

4. Accessibility

More and more people are using devices other than computers (particularly mobile phones and tablets) to access websites. Make sure your website is accessible from all of these devices or you will unwittingly be turning away new customers.

5. Quality Content

Website visitors have come to expect that your website will include quality content or information. For example, if your website has articles, they shouldn't be "fluff" - they need to include actionable advice that shows visitors that you know more than they do.

And clearly, having typos and grammatical errors will also turn off site visitors and prospective customers.

Think about the information you need to convey to customers to better solve their needs and differentiate from the competition. While some of this information is compelling verbiage about your company, more of it should be information that's truly helpful to customers and makes them feel they made the right choice by visiting your website.

6. Amount of Content

The amount of content you include on your website is important for two reasons.

The first is that the more content you have on your website, the more preference search engines like Google will give your site when ranking it for desired keywords.

The second is that if customers are considering doing business with your company, they will want to learn more and more about it. Having a 5 or 10 page website clearly won't allow you to do this (you can start with a small website, but you need to add to it over time).

7. Interactivity

Having a blog on your website helps solve both your website's need for amounts of content (#6) and interactivity (#7).

With regards to amount of content, adding a daily or weekly blog post entry will allow your website to constantly grow in size. This will boost your website's search rankings and give you more keyword opportunities to rank on (since each blog post might rank for certain keyword search terms).

With regards to interactivity, having a blog allows customers and prospective customers to interact with you. It gives you the opportunity to solicit feedback, which provides quick and easy market research.

Your blog also gives you a voice. Here's why this is important. People prefer to buy from people and not faceless companies. While your main website can have a professional, corporate look and feel, your blog gives your customers a look into your personality, and can encourage rapport and sales.

8. Prove that You are Worthy

Your website must prove that you are a worthy company, since many of your visitors may have never heard about you or your company, and there is a natural skepticism consumers have against companies they find online.

Unfortunately, overcoming this skepticism is not as easy as simply stating "we are great." Rather, you need to prove that you are worthy.

You can accomplish this by including any or all of the following on your website:

  • Media mentions (in which media your company has been featured)
  • Credibility logos (e.g., a logo of the Better Business Bureau with a link to your BBB rating)
  • Client logos, names, testimonials and/or case studies showing you have performed quality work
  • Industry associations and groups to which you belong
  • Certifications you and/or members of your team hold


9. Have Multiple Calls to Action


Even though all of us have grown accustomed to going online to find new products and services to buy, the way each of us likes to buy is different.

Some of us like to buy online. Others like to fill out an online contact form. Others like to call a toll free number. And so on.

It is your job to ensure you have multiple ways in which visitors can contact you to learn more about buying your products or services.

Also, if customers may not be ready to buy now, include calls to action to download free reports or other items to satisfy their initial needs; these items should require them to give you their contact information for further marketing.

10. Effective Page Layout

The final key attribute of your website is the layout of your pages.

The key here is to ensure visitors have to think as little as possible. The idea layout influences visitors to take the desired actions. For example, if the goal of one of your web pages is to get the visitor to give you their email address, having the email box near the top of the page, with a clear headline above it in a big font, will yield much better results than the same email box on the bottom left corner of the page with a small headline.

Consider using a heat map program that can show you exactly how visitors are interacting with your website; what they are looking at, what they are clicking on, etc.  As you can imagine, this information enables you to make significant improvements to your site.

From reading these 10 key website elements, ideally you will have identified at least a few improvements you can make right away. Also, please realize that improving your website is an ongoing process. You should always be trying and testing new ideas, so your website keeps getting better and better.

 

Suggested Resource: Want unlimited online leads? And want a proven step-by-step system to get them. Check out our Ultimate Internet Marketing System to learn how you can build the ultimate online lead generation machine. Click here to learn more.


The Unreflecting Organization – Not Worth Having


Categories:

Every time I moderate a strategic planning retreat, I learn something.

About myself.

About the investment of life force necessary to build and sustain a successful organization in the modern business day.

About the importance of heartfelt and mutually supportive communication among and between an effective executive team.

About how there is no more efficient use of business time than to step away from the day-to-day, to reset, and to talk about the big “whys “of an enterprise.

And from this talk, to refresh, refine and define the best, most strategic, and highest ROI use of executives’ time and of an organization’s capital.

I have the great, good fortune to moderate 1 - 2 of these “big” strategic planning retreats each month. 

This past week, the group was the eight person executive leadership team of one of the larger and more prestigious hospitals here in Los Angeles.

A dynamic and highly experienced group, these eight executives have management and leadership responsibilities for over 1,500 hospital employees - providing care to over 17,000 patients, including 4,000 deliveries and 8,000 surgeries annually. 

Yes, these executives have their strategic and tactical hands full to the highest degree.

In addition to the sheer scale and breadth of their organization and of the truly life and death impacts of their decisions, they also must grapple with and adapt to the sea changes beyond their control in our brave, new healthcare world.

The Affordable Care Act.

Payor consolidation, driving down reimbursements.

An increasingly Byzantine thicket of regulatory, liability, and organizational complexity that can easily make a hospital executive feel that even their best work will and cannot “tilt the windmill” toward high quality and cost effective care.

But here’s the inspirational rub of it all…

The bigger the challenge, the more engaged does become the effective executive.

And in this hospital executive team that I had the privilege of working with this past week, well they were engaged and committed at the highest level.

How so?

Well, how about this - in spite of having a more than a century of collective experience, and having to travel from their homes an average of more than 50 miles through Los Angeles rush hour traffic, all eight members of the team arrived at the retreat 30 minutes before its scheduled 9:00 am start!

Or, how about the fact that the organization’s CEO, in spite of being on the job for 17 years and being honored as one of the nation's top hospital CEOs, seeking critical feedback from a staff member on the job less than 90 days?

How about a willingness to, in spite of leading a wildly successful and highly respected 100 year old+ organization, to in an afternoon agree to scrap the team's existing meeting structure and try something completely new?

And my favorite, how about a willingness to take on the challenge of fundamentally rethinking the performance review structures of their vast and complex organization, knowing that yes, doing so will result in far more work on their already stretched plates, but committing to it as it is in the profound interest of the organization's mission and reflective of its values to do so?

And that is all that matters.

These kinds of discussions, and of course many more of the highly confidential, and often heated and pointed type, resulted in a high emotion and results-packed retreat day.

Undertake this work like our fair and fine hospital executives did this past week and watch the magic happen.

And, of course, ignore it at your peril.

Because, as Thoreau once famously said an unexamined life is not worth living.

And an unreflecting organization will, in the end, almost always turn into one not worth having.


Know Your Numbers to Generate More Leads Online


Categories:

Typically when I ask entrepreneurs and business owners what their number one challenge is, they reply that it's getting new customers.

And one specific question I often get is which are the best ways to generate new leads and customers? Certainly there are many tactics to choose from: direct mail, radio advertising, referral programs, and so on.

Particularly over the past decade, smart businesses have learned that one of the easiest and most cost effective ways to generate new leads is going online.

Two of the benefits of online lead generation are that it's quick and inexpensive. As you can imagine, it could take a month or more and several thousands of dollars to produce and run a radio, TV or print advertisement. Conversely, you can literally start generating leads online within an hour and with a budget of less than $100.

However, in my opinion, the real beauty of online lead generation is the metrics: you can track everything extremely closely to tell precisely how much money you spent, and calculate your return on investment.

On the other hand, traditional advertising like television, print and radio are much harder to track. For example, it's very hard to accurately tell if a new customer came to you from a print ad or a television ad, and it's even harder to tell which ad they responded to (e.g., the ad from newspaper A or the ad in newspaper B).

So, let me give you some tips and steps for creating an effective online lead generation campaign.

The first step is to determine what a lead is worth to you. For example, is a lead (for now, let's define a "lead" as someone who visits your website) worth 10 cents to you? 25 cents? 5 dollars?

Clearly, you need to understand what leads are worth to you, so you can generate leads at a lower cost than that amount.

So, how do you determine the value of your leads? The answer is to know, track and constantly improve your conversion rates. Conversion rates refer to the percentage of website visitors who take the actions you desire.

For example, let's say that for every 100 visitors that come to your website:

  • 3 buy one of your products or services from your website
  •  
  • 4 fill out your contact form
  •  
  • 2 email you
  •  
  • 6 call you


In this example, 15 visitors took a desired action; or you had a 15% overall conversion rate. And your conversion rate on buying online was 3%, on filling out the contact form 4%, and so on.

The next step is to determine how much each of these conversions is worth to you. For example, let's say:

  • Your average product or service sale on your website generates $50 of gross profit
  •  
  • 25% of people completing your contact form eventually buy from you at an average gross profit of $100 each
  •  
  • 50% of people who email you eventually buy from you at an average gross profit of $75 each
  •  
  • 33% of people who call you eventually buy from you at an average gross profit of $150 each


In this example, for every 100 visitors, you would generate $625 in gross profit as follows:

  • $150 in gross profit from online sales
  •  
  • $100 in gross profit from contact form conversions
  •  
  • $75 in gross profit from email conversions
  •  
  • $300 in gross profit from telephone conversions


Which means that every visitor to your website is worth $6.25.  And as long as you can drive visitors to your website at less than this amount, you will generate profits.

Importantly, as mentioned above, not only must you know your conversion rates, but it is critical for you to continue to test and track to improve your conversion rates. For example, by changing the layout of certain pages of your website, you could boost overall conversions by perhaps 25%. This would mean that the average value per visitor to your website would jump from $6.25 to $7.81.

Not only would this jump allow you to boost profits, but it would enable you to outspend your competitors and advertise in places where they can't (since they perhaps generate only $5 per visitor). This is how you can truly dominate your market.

So, let's discuss where you can generate leads online. Here are my five favorites:

1. Search Engine Pay Per Click Advertising: Via pay per click advertising networks Google AdWords and Bing Ads (which covers ads on Yahoo and MSN), you can reach millions of web surfers. While many advertisers lose money with this method, if you know your metrics and improve them, you can make a killing here.

2. Social Media Marketing: You can drive lots of traffic to your website using social media sites such as Facebook, Twitter, YouTube, Pinterest and/or LinkedIn.

3. Social Media Advertising: Some social media sites such as Facebook, LinkedIn and more recently Twitter have specific advertising programs to allow you to attract their members and drive them to your website.

4. Online Media Buying: Online media buying is purchasing ad space on desired websites. Unlike pay per click advertising where you pay each time someone clicks on your advertisement, media buying is typically charged on a CPM or cost per thousand basis. That is, you pay every time a visitor sees your ad, regardless of whether or not they click on it. The key is to find the sites on which your target customers are spending time.

5. Search Engine Optimization: Search engine optimization (SEO) is the process of getting your website to be listed at the top of the search engine results for your most desired keywords and keyword phrases. Gaining top positions on certain keywords can drive hundreds, thousands, and even hundreds of thousands of leads to your site each week. However, SEO results do not happen overnight; you need to have a strategy in place and invest in this lead generation technique.

I want to mention a key point here. You are more likely to be successful if you focus on doing an excellent job executing on just ONE of these five tactics, rather than doing an average job executing on ALL five tactics. So, my recommendation for you is to start with just one tactic above and gain success. Then you can start to add the other tactics.

And finally, when marketing online, it's important that you have a lead nurturing process in place. Specifically, not every visitor who comes to your website is ready to buy right away. So, make sure you have processes in place to capture those leads (perhaps by offering a free report or video in exchange for their email address), and then send emails to them to nurture and maintain your relationship with them over time. Because when you nurture them, when they are ready to buy, they will most likely buy from you as they know and trust you more than the competition.

 

Suggested Resource: Want unlimited online leads? And want a proven step-by-step system to get them. Check out our Ultimate Internet Marketing System to learn how you can build the ultimate online lead generation machine. Click here to learn more.


Why SBA Loans Make Sense For Banks & Business Owners


Categories:

A great source of funding to start or grow your business is SBA loans.

SBA loans are issued by private banks. However, the United States Small Business Administration (SBA) guarantees a percentage of each loan. What this means is the following: if you, the entrepreneur or business owner, default on the loan (i.e., can't pay it back), the issuing bank only loses a small percentage of the money it lent you. The United States government essentially pays for the rest.

Because of this guarantee program, banks don't bear as much risk and are much more prone to issue SBA loans. This makes it easier for entrepreneurs like you to get these loans. Conversely, without the program, banks wouldn't make as many loans, and fewer businesses would get funding.

When small businesses grow, everybody wins. The entrepreneur can start or grow their business. In doing so, they create jobs. And their employees then have money to buy things. And the economy grows.

Small business funding challenges during the recession

But, as you may have noticed, business owners are still having trouble getting access to capital, namely 1) Small dollar loans, and 2) Loans in the niche industries affected by recession, such as real estate, finance, etc.

If you think about it, most small businesses don't need $1 million or even $500,000, and wouldn't even know what to do with it all. In many cases, even $100,000 can go a long, long way towards boosting revenues (or even doubling them) if invested in more lead generation campaigns, building a sales team, etc.

The odds are you can suffice with a smaller loan amount. In the past this has been more difficult because banks are geared towards extending larger loans since they can earn more interest for the same amount of due diligence per loan.

What the SBA is doing for small businesses

The SBA recently launched two loan-guarantee revisions that simplify and streamline paperwork even more for banks and borrowers.

One of them, the Small Loan Advantage program, is off to a strong start. It allows banks to make loans at more affordable rates, and brings more opportunities to borrow smaller loan amounts, like $50,000 to $100,000 or even less....which is great if that's all you need!

Applying for a small SBA loan from banks

To take advantage of this for yourself, find out which local bank makes the most SBA loans. You can often find this information on the bank's website. Or you can visit the branch or call them. Ask them how many SBA loans they make and how often they fund loans in the dollar range of what you need.

Find the local bank that is most active in the SBA loan program and apply for a loan. If the bank says you're not ready for the loan, don't hesitate to ask them why. Ideally, you can then fix the issue, and come back shortly thereafter and get the loan.

The SBA wants you to succeed as an entrepreneur and business owner. As mentioned, when you do, you will create jobs and stimulate the economy. So consider SBA loans as a funding source; they might be perfect for your business.

Suggested Resource: Want funding for your business? Then check out our Truth About Funding program to learn how you can access the 41 sources of funding available to entrepreneurs like you. Click here to learn more.


Freedom is Just Another Word…


Categories:

Compared to its original intent, Memorial Day has become an overly “leisure” - focused day.

Rather, it is a day where we can and should take pause and remember those that gave the ultimate sacrifice so that we may enjoy our blessed, modern lives.

Along with President's Day, the 4th of July, and Thanksgiving, Memorial Day is one of the Big Four quintessentially “American” holidays.

Yes, days to step aside from our normal work routines and responsibilities, to relax, to have fun, to spend time with friends and family.

But also days to "pay forward" the sacrifices of those that gave their lives, in the immortal words of Abraham Lincoln, “so that that nation might live.”
 
And a great way to pay it forward is to stand strong for freedom.

Freedom is a word that too often has become stripped of much of its inherently spiritual meaning by politicians and others seeking to further narrow agendas.

And, also too often, a distracted (and distraction-seeking) populace has let them get away with just that.

But freedom stands alone as the highest of all of the great “American” virtues - this country’s revolutionary gift to the cultures and economies of the world.

Now, to the degree that the success of the American experience has inspired freedom worldwide - such that economies and cultures and lives of people in places like China, India, Brazil, Mexico, the Philippines, Poland, parts of Africa - that until recently have been clothed in medieval darkness, poverty, and rigidity...

... well then if freedom perishes here in the years to come, it will go on living elsewhere to a degree and on a scale many, many multiples greater than on these shores.

And yes, that is inspirational in its own right.

BUT it would not make it any less discouraging and dare I say sinful for those us blessed to be born and living in the cradle of freedom to let it perish here.

Or, as badly, to not take full advantage of the opportunities for self-expression, self-actualization, contribution, and prosperity this freedom affords.

And, of course, on this Memorial Day it would also be highly dishonorable to those who gave the ultimate sacrifices to preserve and protect it.

So how can one rightfully honor this gift of freedom?

Well first from that simple, profound place of gratitude and thanks.

But build on that.

Stand up for justice.

For good, limited, effective and neighborly government.

But stridently and ever vigilantly against corrupted, self-serving, expanding, "celebrity" and far away government.

And when it comes to work, knowing that freedom’s truest modern, civic expression is in the realm of private enterprise.

The realm of business.

Of entrepreneurship.

So go for it.

Think. Plan. Act. Do. 

To the fullest of our ability and with all of our effort.

In the service of noble missions and visions that call to us.

And when done to the fullest of our ability and with all of our effort…

…well on this Memorial Day then, we are honoring the sacrifices of those so they truly did not die in vain.


Six Great Places to Find Angel Investors


Categories:

Last year, according to the Center for Venture Research at the University of New Hampshire, 67,030 ventures received angel funding.

This represented an increase of 1.8% over the prior year. In total, these angels invested $22.9 Billion; that's a lot of money.

Importantly, the Center for Venture Research found that the number of angel investors providing the funding last year was 268,160 individuals. So, clearly, there are a lot of angel investors out there.

So, you're probably thinking: how do I find these angel investors? The good and bad news is that there's no directory of angel investors. It's bad because if there was, it would be easy to find them. And it's good, since if angel investors were simple to find, they would be bombarded with deals; and thus raising capital from them would be much more competitive.

The best way to find these angel investors is through networking.

First, ask everyone you know (e.g., friends, colleagues, family, advisors like consultants, lawyers and accountants, etc. ) who they know that might invest in your business.

After that, the key is for you to keep networking and meeting new people. In many cases you should target individual angel investors directly. For instance, you may realize that a certain executive in your industry would be perfect, in which case you should call them and/or seek an introduction from a mutual acquaintance.

In other cases, you should "get out there" and meet them at different venues. Here are the six best venues I've found for meeting angel investors.

1. Local Business & Networking Events


Every city has local events that attract business owners and entrepreneurs (note that other business owners and entrepreneurs are often angel investors and/or can introduce you to angels).

You can find out about these events on sites like Meetup, Eventful and EventBrite.

For example, if you go to Meetup and type in "entrepreneur," you'll find lots of local events.

2. Industry Conferences & Trade Shows


Industry Conferences & Trade Shows are great places to meet angel investors. These events are filled with successful people who have the means and often interest in funding a company like yours. And, based on the fact that they are attending such a conference, they know your industry. This makes educating them on your venture easier, and also often gives them the ability to give you valuable strategic advice.

You can generally find out about these events in your industry's trade journals.

3. Alumni Events


Particularly at college alumni events you'll find lots of successful people. Many of whom would be very interested in funding your company as an angel investor. You already have a connection with these individuals since you share the same alma mater. So go to these events and meet them.

You may also have access to an online alumni directly. If so, you can use this to directly target certain individuals.

4. Chamber of Commerce Meetings

There's probably no better place to meet a large concentration of business owners (and potential angel investors) than local Chamber of Commerce meetings. So attend these meetings.

5. Volunteer at Local Organizations & Charities and/or Attend Charity Events

As a general rule, you should volunteer to give back to people less fortunate than you. But as a bonus, when volunteering you'll often meet very successful people, including large donors to the cause. These individuals might also be interested in funding your company.

6. Become a Guest Speaker

There are many groups like YPO (Young President's Organization) and Vistage that have monthly meetings during which they bring in outside speakers.

Find groups like these that could benefit from your knowledge. Present great information to them to help their businesses grow. In doing so, you will make great connections, including some that can fund your business.

As you can see, there are many, many places to find angel investors. It's mostly a matter of scheduling the time into your schedule to go do it.

 

Suggested Resource: In our Angel Funding Formula program, you'll learn exactly how to find and contact angel investors, exactly what information to convey to them and how, and how to secure your financing check. This presentation explains more.


The 10 Million Dollar Mindset


Categories:

If I say to you, "Hey, you can grow your business into a 10 million dollar company and be very wealthy" would you believe me?

Would you think it's possible? Likely? Easy? Hard? A pipe dream?

You don't have to tell anyone your answer, so be really honest with yourself. Can you envision becoming a multi-millionaire by growing your business?

If you can't see it, first congratulate yourself for that bit of honesty. Next, get to work on your mindset. You will never be a millionaire if you don't think like a millionaire.

Have you read biographies of multi-millionaires in the Unites States? It is rare to find a millionaire who says "I am so surprised I reached this level of success and wealth."

Except for lottery winners, most wealthy individuals are not surprised by their success. Their wealth is intentional. They set out to create that success, they visualized it, they believed it, and they passionately pursued it.

Hope Floats, Action Flies


You can hope to make the front page of Forbes Magazine by wishing that your business goes well. You can create excellent products then sit by the phone and hope that clients order them. You can launch a gorgeous website and hope that internet searchers just happen to find it.

In the course of your daily operations, do you hope for things to happen, or do you work at making them happen?

During your work day you likely create products, provide services, contact clients, process orders, send invoices, order supplies...and hundreds of other actions that generate income. Now let me ask you: would you be willing to stop doing these things and then to simply hope you can still make a living?

Obviously not. So, if you are not willing to give up your income by relying on hope and wishful thinking, why do so many entrepreneurs consider becoming a multi-millionaire a fantasy?

If your actions make you $200 dollars a day, don't you think that over time different actions can bring you $2000 a day, $20,000 a day?

My point? Stop hoping and wishing for abundant wealth and start planning on it.

1. Get The Mind Aligned


What you believe about money, wealth, and success will form the limitations of what you achieve in those areas. If you are comfortable with a 6 figure income, but feel guilty or overwhelmed when considering an 8 figure income, then you have set limits on your income potential.

If you think money is the root of all evil or that rich people are bad, then you have disqualified yourself from wealth. The relationship you have with money in your mind becomes the relationship you have with money in your life. That's why step one is to get the mind aligned.

You can't achieve dreams with lip service. You have to really believe.

2. Find Your Gurus

Ok, so you believe fiercely that you have what it takes to break into the 8 figure income stream. You believe it, you want it, you are seeking it.

Good! Seeking is powerful. You've heard it before, when the student is ready, the master appears. Even reading this newsletter is positive action in the right direction. Now surround yourself with likeminded people who reinforce your beliefs and support your goals. And spend time meeting with and/or studying those with more knowledge or experience that you.

Do not allow yourself to be frozen by fear or intimidated by those who have achieved great success. Find them, interact with them, learn from them, and model them.

3. Be Really Clear


We've mentioned becoming a millionaire or multi-millionaire a few times in this article. That is a great general idea, but it isn't a powerful enough of a goal to ignite action and feed passion.

You need to set very specific goals. Maybe you start with an annual income goal. Maybe you start with targeting a certain number of clients each month. Maybe you do both.

The more specific your goals, the more they will motivate and sustain you. Also, the ability to measure progress is key. If your goal is vague, how do you know if you are achieving it? Let's say your goal is to become a millionaire in your lifetime. You are now 30 and you have $60,000 in the bank - are you on track? Are you encouraged or discouraged? Will you be happy if you reach one million dollars in your bank account on your 90th birthday?

Now let's look at a specific goal. Let's just say that in 2013 your goal was to add 10 new clients per month and end the year with $570,000 in revenue. And now let's say it's December 31 2013 and you look at your results. You total clients for the year were 108 and you're final revenue totaled $563,000. You achieved 90% of your client goal and 99% of your revenue goal. Now how do you feel? You probably feel pretty good because you came very close to achieving your goals. And your results are probably far superior than if you didn't set the goals in the first place.

4. Tell Everyone

I am not talking about strutting around town bragging on how you are going to have gobs of money. I am talking about freely sharing your objectives in socially appropriate ways. For example, if while visiting family over the holidays old Uncle Jim yells across the room "Hey Chris, what are you doing with your life".

This may be an opportunity to say "Well Uncle Jim, this year I am focused on growing my company to $230,000 in revenues and I am on track to produce $5.5M in revenues by the year 2018".

I bet that will quiet the room.

Maybe you are willing to share that with family, maybe you'd rather not. Definitely be upfront about your goals with your staff, partners, and mentors. Go ahead and create accountability. If you really believe in what you can accomplish, you won't be afraid to "put it out there".

While you want passion, not ego to be your main motivator, a little pride can go a long way sometimes.

5. Live the Life

If you want to be a millionaire, you need to live like a millionaire. No, I am not saying you need to buy a car you can't afford or otherwise live beyond your means. On the contrary, there are hundreds of stories of self-made millionaire that got there by living conservatively.

What I mean is that you need to monitor your way of thinking. Do you look at a Bentley and automatically think "I will never afford that." How serious can you be about becoming a multi-millionaire if that is your knee-jerk reaction?

A person planning their success will instead think "In approximately six years, when my annual revenue reaches X, I will be able to buy that car cash."

What is your life plan? If you are a parent, are you optimistic about sending your kids to any college they want to attend? Are you learning about different places in the world you want to visit?

Are you learning a language to support your international business launch? Are you looking forward to and learning about things that are a normal part of the lifestyle you are working to achieve?

Is there something you can do now that will give you taste of your future? Maybe you can buy a pair of expensive sunglasses to remind you to look at the world through the eyes of a millionaire. Perhaps you can start a basic investment account at a firm that is known for high wealth clients.

Identify one thing you can do now that will make you feel like a millionaire, and go do it.

10 Million or Bust

Jack Canfield, one of the creators of the "Chicken Soup" series of books shares a story about setting bold goals. One year, he decided that he was going to sell a mini version of his book for twenty-five cents and wanted to reach $100,000 in sales that year. At the time, that was a huge amount of money for his family.

Well, he didn't make it. He only made $92,000 that year.

Was he disappointed? Of course not! By setting such a huge goal he created a situation in which an "almost made it" was still a raving success. If today, you make $75,000 a year and decide to make $10 Million in ten years, you will still be living a vastly different life if you only make $8 Million.

Now consider this. If in X years, you have 1, 2, 15, or 30 million dollars, are you still you? You may have different characteristic brought on by time and wealth, but you are still the same person, right?

If you are going to be a millionaire in the future, then what is stopping you from having that millionaire mindset now? Don't wait for things to define you. Rather, be defined by the passion, skill, and determination that will ultimately get you the life you want. Get your 10 million dollar mindset going today.


Lesson I Learned this Weekend


Categories:

I had the great good fortune this past weekend to co-host Growthink's Business Blueprint Live event at the LAX Sheraton Hotel, next door to our Company’s Los Angeles offices.

At it, 53 entrepreneurs and business owners gathered for two days and nights with the Growthink team to dream, plan, and network as to how to best grow the revenues, increase the profits and better fulfill the missions of their businesses.

What is really neat is that because of its longer group and in-person format, there is time and space to really listen and, correspondingly, to share best business practices, ideas, and inspirations.

Golly - what a weekend!

The attendees that ventured from near and far and from the comforts of their homes and regular routines took a chance.

The chance that by "mixing it up a bit," that breakthroughs would follow.

And they did.

From the aerospace engineer developing new quality assurance processes that make the engines that fly our planes safer and more efficient, to the software entrepreneur helping community banks better manage their loan portfolios (and by so doing freeing up more capital to lend to entrepreneurs and small businesses to grow their companies and create jobs), to the doctor re-designing the nature of care to focus more on prevention than cure, new and powerful business ideas and tactics were hatched and committed to.

And I was reminded of an old wisdom that I forget way too often.

It goes like this: when there is something “nutritious” in my life and business that I am resisting, it is that thing that above all else I need and should be doing.

It could be getting up early and doing that workout.

Or not having that second glass of wine. 

Or taking that vacation.

Or, in business, making that call, writing that plan.

Going to that meeting, that conference.

And when you do, hold nothing back.

Don’t let any nagging doubts about whether this strategy, this decision, this job is the right one.

Just dive in.

What is brought to mind is Joseph Campbell, author of a “Hero of a Thousand Faces,” and the world’s great scholar on mythology and the foundational stories of humanity.

He famously said that what we all seek is not “so much meaning in life, as we do the experience of being alive.”

Well, this weekend what I and very many of the attendees that participated and shared with that full-on entrepreneurial commitment experienced this weekend was very much that of being fully “business alive.”

And from it and because of it, new business and conceptual breakthroughs and lovely relationships naturally flowed.

And when I reflect on these amazing outcomes, and then when I think back to the resistance I felt of not wanting to organize, not wanting to go to the event…

Well, it hits home that so important wisdom that when I really don't want to do something that I know in my heart that I should…

…well that is the exact thing that I must do. 

And then let the magic happen.


Why You Can't Live (or Die) Without Business Systems


Categories:

Business systems, business systems, business systems....why is everyone always going on and on about systems in your business? 

Well, it's simple really. If you don't have a business system, and your entire operation relies on you personally performing certain actions, then you really don't have a business. You may be a really busy and even profitable self-employed, independent contractor, but you do not have a business.

A true business may require your leadership, strategy, vision, and even daily performance of work. But importantly, it will also continue to operate and make money even if you take a day off, go on vacation for a month, and be prepared for this, even if you die. 

What is a Business System?


In its simplest form, a business system is a process or collection or processes that dictate the way your business operates.  You may have a system for client acquisition, product delivery, customer loyalty, invoicing, supply chain, etc. 

The more automated and error-proof your system, the more you are able to dedicate your time and energy to growing your business rather than simply running the day-to-day operations.

If more time and greater revenue is not reason enough to have solid systems in place, let's consider these other factors that influence why you can't live, or die, without a business system.

Funding

Try walking into a bank or a venture capital firm and telling them what a talented widget maker you are and that they should give you money to build your company. 

When they ask for your business plan (a first step in building a business system), tell them you don't need any of that mumbo jumbo, you are Joe Blow, Great Widget Maker EVER!  What do you think is most likely?  That they will hand you a check or that they will laugh you out of the building? 99.99% will laugh hysterically (the other 0.01% are your parents and they are biased).

They will laugh because they recognize that a person is not a business.  Yes, one person can create a business, and one person can be the vision and soul behind a company, but no one person is the company.  

Apple is moving on without their visionary Steve Jobs, KFC is still selling chicken just fine without the Colonel, and Microsoft is still a giant while Bill Gates focuses on philanthropy.   You may be central to your business, but to have real value, the business needs to be sustainable without you.

You Can't Sell Yourself Into Slavery


Let's say you have worked for your business for a few years, developed a good customer following, revenues are high, but you do everything yourself and nothing is documented.

If so, think about your exit plan.  Will you someday just close up shop and let all those clients just melt away?   Will you pass the business onto your children or chosen successor?  Will you sell the business?

If you have a thriving business, selling may be an excellent idea and may significantly contribute to the funds you have to support your twilight years.   But how will you sell a business that doesn't have clearly defined systems?  How do you sell the business if you are the business?

Ok, so maybe the sale's agreement stipulates you will stay on as a consultant for a few months or years to show the new owners "the ropes" and transition the client base.  Guess what you will be doing in those months? That's right, creating systems! 

The fact is that you will sell your business for a lot more money and to a wider base of potential buyers if you have clearly defined systems in place.  When you are the business, new owners have to hope they can either replicate your actions or have a plan to do it better.  When you can show them proven business systems they can easily adapt, they will clamor to buy you.

What Will You Bestow?


Perhaps your dream is not to sell your business, but instead to pass it on as a legacy to your children or a chosen successor.  There are many strong family businesses in the United States that have been passed on through generations.  Is it your goal to be one of them?

The argument here is the same as in the previous section.  How do you bestow a business if you are the business?  How will you enjoy your retirement in Tahiti if Johnny Grandson is calling every two hours because he needs to know how you did this and that?

You Can't Die in Peace

Is the income from your business a necessary part of your household income?  If you die, and that income stops, how does your family survive?

If you need a solid reason for building business systems, perhaps this is it.  A business that can continue running without you, even if not running 100%, but can survive even without you, has value to your family.  It can be operated by relatives, it can be passed on to heirs, and it can even be sold.

But if your business evaporates into thin air then minute you stop breathing said air, you are doing your family a disservice.

A business with a solid foundation of systems will survive you.  It may even become your legacy.  Your brand, when attached to proven processes and workflows, can endure.   

Feeling Squeamish?

Have you felt the tingle of cold sweat as you read this article?  Are you wondering how you will ever sell your business when it primarily exists in your head?   In many ways, a business is collection of abstract concepts.  It's your reputation, your relationships with clients and suppliers, it's the quality of your product and service, and it's the word of mouth on the street.

To solidify your business, you need to give it form by building systems that can be documented, followed, and replicated by others. 

Depending on the nature of your business these systems may require a strong team, wise delegation, trustworthy partners, and reliable vendors. Maybe all you need is clever automation that can be passed on to others.

If this article made you feel at risk, then take the time to carefully analyze your business. What can you automate?  What can you document? What can you delegate?  What can you reliably outsource? 

Find ways to truly evolve from a self-employed worker to a smart owner of successful business systems.  Build it right and you can live (and die) in peace.

 

Suggested Resource: Would you like to know how to build business systems that dramatically improve your business, and turn it into one worth $10 million or more? If so, check out Growthink's 8 Figure Formula. This video explains more.


Syndicate content

Most Popular
New Videos

"Business Plan
SHORT-CUT"

If you want to raise capital, then you need a professional business plan. This video shows you how to finish your business plan in 1 day.

CLICK HERE
to watch the video.

"The TRUTH About
Venture Capital"

Most entrepreneurs fail to raise venture capital because they make a really BIG mistake when approaching investors. And on the other hand, the entrepreneurs who get funding all have one thing in common. What makes the difference?

CLICK HERE
to watch the video.

"Brand NEW
Money Source?"

The Internet has created great opportunities for entrepreneurs. Most recently, a new online funding phenomenon allows you to quickly raise money to start your business.

CLICK HERE
to watch the video.

"Old-School Leadership
is DEAD"

"Barking orders" and other forms of intimidating followers to get things done just doesn't work any more. So how do you lead your company to success in the 21st century?

CLICK HERE
to watch the video.

Blog Authors

Jay Turo

Dave Lavinsky