Written by Katie Perratore on Thursday, May 30, 2013
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.
Written by Jay Turo on Saturday, May 25, 2013
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.
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.
Written by Dave Lavinsky on Thursday, May 23, 2013
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.
Written by Dave Lavinsky on Tuesday, May 21, 2013
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.
Written by Jay Turo on Monday, May 20, 2013
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.
Written by Dave Lavinsky on Tuesday, May 14, 2013
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.
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.
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.
Written by Dave Lavinsky on Tuesday, May 7, 2013
Are you an Empire Builder?
How do you gauge yourself and your business? Do have the potential to turn your business into an empire? You may not know it yet, but you may just be the person to create the next business empire.
Empire builders are ordinary people who perform extraordinary tasks. There are certain traits and actions that distinguish these outstanding individuals from others. By learning certain skills and adopting successful actions you can set your business growth to super-size.
10 Characteristics of Empire Builders
If you have painstakingly built your business from scratch to where it is now, assuming it is growing steadily, you should not be surprised that you possess some characteristics in common with empire builders. Here are the 10 common characteristics.
1. Sacrifice & Hard Work. Empire builders are willing and ready to make sacrifices to be successful. Running a business is quite different from simply joining your workmates at a desk job; it involves hard work.
2. Passion. Empire builders are passionate about what they do. They put in extra effort to achieve their goals. Being passionate about what you do usually means that you are having fun doing it. The journey should be just as rewarding as the destination.
3. See Opportunities. Do you see opportunities where others see obstacles? Another trait of empire builders is that they see an opportunity where others see barriers. Many people think that to be successful you need to come up with an idea that nobody has thought of before. Many successful empires have been built without innovative ideas, just the will to do the same thing others are doing but in different way. Or they dare to tackle a problem others are afraid to tackle.
4. Highly Motivated. Empire builders are highly motivated people. They don't let their determination cool off due to defeats. If they don't succeed at first, they simply try again and again. They use failure as a motivation rather than an obstacle.
5. Disciplined. Another important characteristic of empire builders is discipline. Empire builders are focused on their goals. They do not let distractions derail them from achieving their objectives. They have clear steps that they take every day to bring them closer to their goals.
6. Open Mindedness. Open mindedness is a vital characteristic of empire builders. These are individuals that are ever open to new ideas and new ways of doing things. They get inspiration from different sources and focus it on achieving their goals.
7. Team Builders. They are skilled networkers who build strong contacts needed for success. Nobody ever succeeds alone; rather, success requires team building. Empire builders have persuasion skills that enable them to convince people to work for them even when their ideas may seem crazy.
8. Decision-Makers. Empire builders have good decision-making abilities. Sometimes people may wait for the right time to do something but empire builders launch their projects and then make the necessary corrections later. Decision-making is vital and in many cases, not making a decision is as bad as making a wrong decision.
9. Can Create Or Expand a Market. Empire builders expand the market. Contrary to what many believe, you don't have to launch something completely new to be successful. You can simply get into a business that many have thought of and get your share of the market and grow it.
10. Understand Their Markets. In business, timing can mean the difference between success and failure. Empire builders are capable of predicting the precise time a product will be successful in the market. When Sony launched the walkman, skeptics said people would not be interested in listening to music as they walked. Know the wants and needs of you market.
What Lessons From Empire Builders Can Help You Grow Your Business?
I want you to take a challenge. Pick three characteristics from above and start applying them this week. Keep practicing until they become second nature; aim for 3 to 4 weeks. Then pick three more. Do that until you cultivate all these characteristics of empire builders.
Here's your checklist:
- Don't hesitate to make sacrifices and work hard
- Follow your passion/enjoy the journey
- Be open to new opportunities
- Stay motivated
- Be disciplined
- Keep an open mind
- Build a team that can deliver results
- Be decisive
- Realize you don't need to create something completely new
- Understand/research your market
Let us know how this challenge changes you and your business!
Written by Dave Lavinsky on Tuesday, April 30, 2013
Your brand is the unique design, sign, symbol, and/or words that create an image or impression of your product(s), service(s) and/or company.
A strong brand differentiates your product or service from your competitors, and is easily recognized by customers in your market.
Think about Starbucks...Their coffee is not the most affordable in the market, but their brand recognition and loyalty is off the charts. They have a wide-spread reputation for delicious, strong coffee that many people refuse to do without.
Disney is global mega brand. Show a child a black round circle with two round black ears and the screams of "Mickey, Mickey!" will leave you temporarily deaf. Not only is the image recognizable, but it's is associated with fun and happiness.
Developing a strong brand is important and can dramatically impact your success. Below are three surefire strategies you can use.
1. Create a New Product and Constantly Innovate it
Apple's introduction of the iPhone is a classic example of this strategy. While cell phones had been in the market for years, Apple introduced a new sleek design and took the cell phone into the realm of smart phones. Instead of just phone and camera, Apple popularized having music on your phone and later led in the development and release of mobile applications This strategy caused Nokia's market share to drop precipitously.
Not only did Apple innovate with the initial introduction of the iPhone, but the company keeps the product fresh by releasing updated models every 2 years or so.
Puma is also adapting this method by constantly introducing new sports products to the market. The company does this to continue building its reputation as the most desirable sport lifestyle brand.
By creating a new, unique product and constantly updating it, you will build a strong brand. And you will stay top-of-mind for customers since they will always be curious as to what they can expect from you next.
2. Using a New Campaign To Change a Brand's Image
As second branding strategy is to use a new marketing campaign to change your brand image. One example of this is the Dove soap campaign introducing "Real Beauty" in 2011. The concept is that women have real beauty and Dove can help them realize it.
This type of campaign can also be called "rebranding." You use an old product, repackage it, and possibly change its logo too. Your purpose is to change the product's identity and reputation in the view of consumers.
You can also use rebranding to overcome a period of poor publicity. For instance, if your company has been involved in public malpractice litigation, rebranding can help you get rid of negative connotations that may be hurting your sales.
Rebranding can be a powerful tool in helping you differentiate your product from competitors. Think of special stitching and serial numbers high-end purse manufacturers use to differentiate their products from cheaper knock-offs. When you make your product distinguishable, you can gain more customers.
Lastly, when your product has been in the market for a long time, curiosity and interest from customers may lessen. Rebranding can help you regain excitement in the market place and recapture market share. Intrigued customers want to try whatever is new in your product.
3. Advertise While Keeping Up with the Brand Value and Promise
Being seen on television and other advertising channels can do wonders for most products and services. Sometimes, despite being more expensive than other brands, consumers still buy products with which they are more familiar. This is true of the brand Tide. There are laundry detergents that are less expensive, but many customers still buy Tide. Because they hear about Tide frequently, it is top of mind when consumers are shopping.
Still, Tide has to keep up with its promise of being a great laundry detergent. If consumers experienced poor results, they wouldn't buy Tide again despite millions of dollars of advertising. The product must do what your advertising said it would.
It is also important to make sure your advertising, whether local or national, is reaching your target audience. Remember the Chrysler Pacifica? Its okay if you don't; they don't even make the Pacifica minivan anymore.
In 2004, despite warnings from their advertising consultants, Chrysler contracted Celine Dion for $10 million to promote the new Pacifica. The campaign was a disaster. The Pacifica appealed to young professionals, yet Celine Dion resonated with an older age group. The result? Nothing. Flat sales with millions of dollars out the driver's window. Know your target market!
Applying the Strategies
While many of the examples I used are from well known large companies, any business owner, even a one person operation can use the strategies listed above.
And importantly, you don't have to spend a fortune on this. With social media tools like YouTube, Instagram and Facebook, you can create videos and photos that can spread your brand message quickly, inexpensively and with amazing effectiveness.
So focus on building your brand, because the right brand will bring in tons of new customers and dramatically increase the value of your company.
Written by Dave Lavinsky on Thursday, April 25, 2013
It's a given these days that your business needs a website. And, if your website ranks at the top of the search engines for the right keywords, it could mean a ton of new customers and revenue for your business.
SEO or Search Engine Optimizing is the process of getting your website to rank as high as possible on your most important keywords. And when focusing on SEO, you should pay most attention to Google (rather than Yahoo or Bing, etc.) as Google currently has a 68% market share of all searches done in the United States.
And when optimizing, keep the following ten SEO tips in mind.
1. Social Media Optimization Helps SEO
Social media (e.g., Facebook, Twitter) can provide you with website traffic. It also impacts your rank in Google. Specifically, Google's ranking algorithm decides on your brand's social media value through the number of likes in Facebook, the comments and shares it gets, the number of Twitter followers, the number of tweets that states your brand or has your web link, and the number of people you have in your Google circles. So don't ignore social media.
2. Content Is Still King
The key here is for you to establish yourself as an expert in your niche by providing relevant and fresh information to your readers. You can also invite guest bloggers or hire content writers that can give your site vital information about your industry. The search engines are keen on whether your site provides quality information.
3. Do Guest Posting Properly
While guest posting (i.e., getting other experts to post their articles on your website) can be a great source information, be careful with backlinks. Backlinks are links from one site to another. Make sure you only link to high-integrity websites and blogs. So, if your guest poster wants to link to a "sketchy" website in their article, don't let them.
4. Diversifying Can Protect You
With Google Panda and Penguin penalizing websites for shady SEO techniques, one of the best things you can do is to diversify your SEO techniques. Consistently update your site with fresh and winning content while using diversified anchor texts and links. "Real" is the word here, real content and real links are rewarded by search engines.
5. Location-Based Searched Results Can Take You Higher
Search activities based on location boost your ranking as well. Location-based meta tags and descriptions can do wonders to your page rankings. How you are positioned in Google places can also help drive traffic to your website. This can be critical to your business if your sales depend on local customers.
6. On-Page Optimization Never Gets Out Of Style
Proper keyword selection, research, and testing are crucial in doing your on-page SEO. Tags and internal links should be done appropriately. As mentioned earlier, your content is the most determining factors in improving your rank. They key is to produce high quality content that appeals to your customer.
7. Videos And Infographics Are Cool Ways To Do SEO
Videos and infographics engage customers. So they stay longer and consume your content. As mentioned before, this is what the search engines want.
Also, videos, when posted on other sites (like YouTube) can drive traffic to your website (e.g., in the description under your video).
Finally, if your videos and infographics are good enough, other sites will link to them on your site, which will drive traffic and boost your rankings.
8. Press Releases Make The Town Talks About You
Well written press releases can build your brand and generate a lot of new links to your website and thus boost your rankings. There are many online sites that allow you to publish your press releases (the better ones do charge fees).
9. Usability And Significance Add Power
Ask yourself whether your site is providing your audience answers to their needs. Is your site offering quality information to web searchers and clients? Like any brand, establishing your brand's quality is recognized by search engines. Solving customers' problems makes your website more relevant.
10. Build And Maintain Strong Relationships
Your clients are your most important concern. Be creative and sincere in dealing with your clients and you will start building your brand empire. Have them experience your product and services in a personal way and you will find that making sales is easier and simpler with a strong following.
While search engine optimization is very important to driving traffic, always prioritize your brand. And create high-quality content. Old-school SEO experts may want to convince you to have hundreds of low quality articles proliferated around the web to boost your rankings. The new Google algorithms and market attitudes will punish this behavior.
In short, keep the quality of your content high and always pay attention to the needs of your customers, and your search engine rankings should continue to rise.
Suggested Resource: Want to learn my complete strategy for methodically maximizing your online traffic, leads, sales and profits? Then check out my Ultimate Internet Marketing System.
Written by Dave Lavinsky on Tuesday, April 23, 2013
Crowdfunding is getting a group of regular individuals to collectively fund your venture. And when I say "regular individuals" I am contrasting them to professional investors and lenders like banks, venture capitalists and angel investors.
Clearly, Crowdfunding gives the key benefit of providing funding to your business. But, I have found other key benefits. Below I list those benefits as well as 5 keys to successfully raising Crowdfunding.
5 Benefits of Crowdfunding
1. Market Research
Pre-selling your product is incredible market research. If people buy it, then your marketing message is on target and there is a real need for your product or service.
If people don't buy it, then maybe a market doesn't exist, or you need to adjust your marketing message or target market.
In either case, getting this market research BEFORE raising or trying to raise a ton of money is invaluable. It allows you to test whether you have a winner before going through this process.
2. Built-in Customer Base
When you get others to fund you via Crowdfunding, you build a customer base. If you provide a good product or service, these customers will be prone to buy more products and services from you (the same products, upgrades and/or new products you develop) in the future.
3. Case Studies/Testimonials
Showing case studies and testimonials from customers is a great way to convince new customers to buy from you. And you can get these case studies and testimonials from those customers you gain from Crowdfunding (assuming you delivered them the product/service and they liked it).
4. Word of Mouth Marketing
People who fund your company will tell their friends about it. Particularly if you make them feel like founders/initial investors (which you can easily do via email and on your website).
Done correctly, Crowdfunding can result in thousands of customers, most of whom can tell numerous friends and colleagues about your products and services. This word of mouth marketing can be worth millions of dollars.
Local media sources are enamored with Crowdfunding as it's new and unique. As a result, countless entrepreneurs who have raised Crowdfunding have been profiled in local newspapers, radio shows and TV broadcasts.
So, with some legwork, raising Crowdfunding can get you lots of PR.
So, now that you understand the benefits of Crowdfunding, how do you raise it? Below are five keys.
5 Keys to Raising Crowdfunding
1. Inspire People
When you tell your "story" to potential crowdfunders, inspire them. Yes, they are investing in your product or service, but they are also investing in you. Give them an inspiring story about yourself and why you are building your company. Inspire them to want to help you.
2. Provide Value
When people crowdfund you, they need to get something in return, such as equity in your business or your promise to give them a certain quantity of the product or service you create. Make sure potential crowdfunders feel they are getting value for their investment. If not, they won't fund you.
3. Create Social Proof
Social proof is the psychological concept that if someone sees someone else doing something, they are more prone to do, or want to do, that same thing. For example, a line outside a bar shows social proof that the bar is hip/cool/the place to be, and inspires others to want to go inside.
Social proof can be created in Crowdfunding. Here's how. As soon as you launch your Crowdfunding project, get as many of your friends and family as possible to fund it. Then, when others that don't know you go to your Crowdfunding page, they will see that lots of other people have already funded you. This will make them much more likely to fund you too.
4. Market and Build Buzz
Even if you have the coolest company, product or service in the world, chances are that crowdfunders won't automatically beat a path to your door. Rather, you need to market your Crowdfunding raise. Email all your friends about it and tell them to do the same. Tell everyone on Facebook and Twitter about it. And so on. Even if your company is buzzworthy, you need to first create the critical mass of people who know about it and can spread the word. So make sure you do just that.
5. Don't Slow Down
Once you start getting more and more backers to your Crowdfunding campaign, don't just sit back and let the money roll in. Crowdfunding is a fixed-term capital raise. For example, on Kickstarter, your Crowdfunding campaign can only last 90 days. So, once those 90 days is up, you can't raise more money (you'd have to start and market a separate campaign later). So, during the campaign, try to raise as much money as possible. Communicate with those who have backed you. Thank them and tell them to tell their friends to back you too. And make sure they don't have "buyer's remorse" - assure them that you remain steadfast in achieving the vision you laid out when you convinced them to back you.
Crowdfunding is an exciting new source of funding with many benefits. To get it, prepare yourself and follow these steps.
Want Crowdfunding for your business? Check out Crowdfunding Formula. The program is a series of videos I recorded that walk you through each of the 14 steps to raising rewards-based Crowdfunding. Many of you have already joined the program and raised money. If you haven't, click here to get Crowdfunding for your business now!
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