If you don't know Peter Drucker, you should: he's known as the man who invented modern business management. He wrote 39 books on the subject and is widely regarded as the greatest management thinker of all time.
And Peter Drucker is credited with two of the most important quotes in business management.
Here's the first: "If you can't measure it, you can't improve it."
When you think about this quote, it should immediately become apparent how true it is. Because, if you can't measure something, and know the results, you can't possibly get better at it. For example, it's nearly impossible to lose weight without stepping on a scale once in a while to measure your results - if you don't, you have no idea if you are succeeding or not.
Or it's like trying to improve your golf game, but never keeping score, so you don't know if you're actually getting better or not. Makes sense, right?
Now, in business, Drucker's quote is particularly true. If you can't measure every part of your business, you can't manage or grow it.
There are nearly 50 questions such as these that measure each aspect of your business.
And if you don't know the answers, if you can't measure them, then you can't possibly manage or improve them.
And that's why your sales are too low, profits are too low, employee performance isn't high enough, and you need to work too hard and can't take enough time off.
Now, let's move on to Peter Drucker's second famous quote: "Management is doing things right; leadership is doing the right things."
Let's start with the first piece of this critical quote. "Management is doing things right." Well, as we learned from Drucker's first quote, you can't manage and you can't do things right in your business if you're not measuring it. So that's not happening and it's hurting your business.
And now the second piece: "leadership is doing the right things." So, my question for you is this: are you doing the right things in your business? Now before you answer this, let me ask you this: do you know exactly what you should be doing, every single day, to generate the most value from your time?
Unfortunately, most entrepreneurs and business owners don't. Or their businesses would be much more successful than they currently are.
I give you these two Peter Drucker quotes along with their interpretation to help you figure out the answer to the question, what is the #1 Business Mistake you are making.
Which for most entrepreneurs and business owners is this: Your #1 business mistake is that you're running your business blind!
You're not measuring your performance throughout your business, so you can't improve. And worse yet, you don't really know what you should even be focusing on
It's like running around in a maze, and you haven't kept track of where you've been, and you're not sure what to do to get out.
But don't take it personally, virtually all entrepreneurs and business owners operate like this. And that's why business failure statistics are so terrible. As you might know, according to Dun & Bradstreet, 91% of businesses fail within 10 years. And according to United States Census, only 3.9% of businesses make it to $1 million in sales. And only 0.6% of businesses make it to $5 million. And less than 0.1% make it to $10 million and above.
The reason for this lack of success is that these entrepreneurs and business owners are running their businesses blindly. They are not measuring performance, so they can't improve. And they are focusing their time on the wrong areas of their business.
Now the good news is that there is a solution to this common problem of running blind. And it's called BI or Business Intelligence. Business intelligence or BI refers to computer-based techniques used to spot, dig-out, and analyze business data, such as sales, marketing and production in order to make significant improvements.
Importantly Business Intelligence uses the data you already collect in your business. For example, if you have a website, you probably have Google Analytics or another program installed that captures key information like the number of visitors you have to your website each day, where they are coming from, and what pages of your website they are visiting.
And you're probably using an accounting software like Quickbooks that includes information about your revenues, expenses and cash balances. And you might be using a customer relationship management or CRM system like Salesforce.com that identifies the number of leads and sales you generate.
And you might be using an email management system like Constant Contact or MailChimp that shows how many email subscribers you have and how often they open or click on your emails.
With the right Business Intelligence system, all the information from these applications and programs you already use automatically and in real-time is entered and analyzed. So you can quickly see, manage and improve your performance.
Importantly, you not only measure performance so you can improve it, but you instantly spot weaknesses in your company. And those are the areas you should focus your attention on. Remember, "leadership is doing the right things" - now you'll know exactly what you should be doing.
Ready to stop operating blindly? If so, check out Growthink's Business Intelligence solution, The Growthink Dashboard, by clicking here and start expertly managing and growing your business.
Lead generation is critical for all entrepreneurs. And once you master it, your business will thrive.
To help you with lead generation, below I have answered the most common questions entrepreneurs. However, let me start with some definitions.
Your "leads" are simply your pool of prospective buyers who might be interested in your product or service.
For physical stores, your lead list can be residents in a certain zip code or a list of shoppers with certain demographic characteristics. For online or virtual businesses, your lead list is often defined as the list of prospects that subscribe or "opt-in" to your email list or otherwise contact you so you have their contact information.
Whether online or in a physical store, communicating with your lead list is a primary marketing strategy for generating new and repeat customers. A general rule in marketing is: the bigger your list of leads, the more opportunities you have to generate new clients and sales. This is why lead generation is so important. Sound lead generation tactics grow your lead list. Great lead generation strategies grow your list with prospects that are most likely to buy.
Below are answers to the most common lead generation questions I get:
1. How Do I Create a Lead List?
There are many ways to start building your lead list. The easiest is to put an opt-in box on pages of your website where visitors can register their email addresses - typically in exchange for content or freebies. Most websites offer free guides, e-books, tools or a newsletter.
You can also offer free samples of a one-time discount coupon. Make sure the freebies are enticing. Once the website visitor opts-in to receive the freebie, he or she now becomes part of your email list.
2. Does My Target Audience Matter?
Yes. Know your niche and determine the people you want to target. This important element should be clear to you from the beginning. You will likely fail if you do not understand what type of customer best appreciates your product or service.
Once you truly know your target audience, you can do a better job of "talking" to them on your website. For example, you will use different verbiage to convince a 20 year old, single, suburban woman to buy your product than you would to convince a 60 year old, married, rural man to buy it, since each has different wants and needs.
3. How Will My Audience Find Me?
In order for your prospective customers to find you, you should be promoting your website in places where your targeted audience already frequents. For example. Let's say your business sells electronic gadgets. If so, make sure customers find you on other websites that discuss electronic gadgets. You can advertise on these sites or submit guest blog posts and articles to them. You can do the same with social networking groups that discuss this topic. In many cases you can also pay the other websites to send an email promoting your company to all their subscribers.
Likewise there are other tactics to reach these customers such a direct mail, door hangers, radio spots of TV ads. Naturally, you must align your strategy to your specific product or service, and to your budget.
4. What Should I Put On My Site To Attract Visitors To Opt-In Or Buy From Me?
Content is key. When your visitors find your site helpful and informative, it will be easier for you to get them to opt-in or buy. They will see you as the expert and be hungry for more information from you. The key is to provide quality content that gives solutions to your audience's problems.
Also, the more quality content you have on your website, the more other websites will link to you and thus drive new visitors. Likewise, these links will boost your search engine rankings, so you'll get more organic search traffic.
5. How Do I Maximize Social Media In Getting More Opt-Ins?
Most of your customers are using social networking sites (event if you're in the B2B space). Build your reputation as an expert in your niche when you are creating your social media presence. Become the "guru" of your circle of influence and continuously expand that sphere of influence.
Even brick and mortar businesses have a huge opportunity to build genuine, trustworthy relationships with clients and prospects on social networking sites. Offer tips, publish sales offers, share today's menu, teach a skill, publish testimonials and so forth. These steps create opportunities to get followers and convert sales.
It's All About The Relationship
A growing email and/or lead list is crucial for business growth, especially for businesses that operate online. You can publish a website or open an online store and HOPE that customers come. Or you can build top-notch content and opt-in system that allow you to communicate and build relationships with your prospective customers.
It's a common phrase that "people do business with people they know, like, and trust." Using social networks and content generation strategies (like newsletters and quality emails) you can develop strong bonds with people who you will never meet in person.
The strategies detailed herein will deliver prospects to your business that are interested, ready, and able to buy your products and services. It will take some time to implement these strategies, so get started now!
Astute entrepreneurs and marketers understand that as much as 80% of their revenues come from repeat customers. Because once you transform a prospective customer into an actual customer and then give them a great experience, getting that customer to buy again is much easier. In fact, many times the next sale will be initiated by the customer; you won't have to do anything.
So the best way to get more sales from repeat customers is to get more first-time customers (and then really satisfy them of course).
For instance, if your initial sale to a customer is $40, but the average customer will purchase four more times within the first year, then a new customer is actually worth $200 in the first year. Much more than the initial $40! So, clearly, you want to attract as many new customers as possible (and take care of them so they keep purchasing from you).
To help you achieve this I have detailed below three key tips for attracting new customers.
New Customer Strategy #1: Give Them a Deal
Some companies go as far as to lose money on their first sale (known as a loss-leader), knowing they'll make it back with an immediate upsell, monthly service plan, or future sales. Your goal is NOT to make as much money as you can on the first sale. It's to make a first sale!
But of course, it's better if the first sale naturally leads to selling your next item or service. For example, I know a pressure washing company who will clean your house's exterior at cost the first time. But then it upsells 80% of these customers to their "twice yearly" plan -- this is where it derives massive profits.
Restaurants offer specials, phone companies offer you deals if you switch providers, etc. - I'm sure you've seen this. You need to give customers a powerful offer either in the form of a low price or incredible value for their money. When you do, they'll be much more likely to buy from you.
You've also probably seen coupon offers and deal-of-the-day sites like Groupon offering $20 massages and other great deals all the time. This works in getting tons of new customers. However, be careful. A lot of businesses have reported "The Groupon Effect," in which they will post a special, get a herd of penny-pinchers in the door that take advantage of the offer and then disappear to find the next deal at whoever's cheapest tomorrow. In other words, it can attract the wrong crowd and may not produce repeat business-which is the whole point of making a first sale.
So use these special offers carefully. One idea is to use direct mail. Doing so allows you to target the specific customers you want with your special offer; the ones who are most likely to keep buying from you.
New Customer Strategy #2: Incentivize Your Sales Force
If you have a sales force, give them great incentives to close new sales. Particularly in the case where you know you have significant lifetime customer value (i.e., customers will purchase from you many more times in the future), be more generous with your commissions.
In fact, I've heard of companies giving 100% commissions to salespeople who secure new customers. While the company clearly loses money in the short term, such a strategy really motivates the sales team to get new customers. And over time, the company's revenues and profits grow much faster since they have so many new customers that keep buying from it.
New Customer Strategy #3: Give Them an Experience
Think about how much money people spend on vacations, sports, dining, and entertainment. What do these all have in common? They're experiences that people want and for which they are willing to pay.
Try positioning your service as a personal experience. It's one thing to offer a massage, it's another to offer a "spa experience" with music, lights, nails, and a free facial.
You can also plan and offer group experiences like luncheons, parties, open houses, or tours. Or find a way to piggyback on existing events going on in your community, like parades, festivals, expos, etc.
These will take a little creativity, but remember that people are naturally drawn to fun times. Make it memorable and do it a few times per year.
Look to Zappos.com for inspiration. Even though it sells a commodity (shoes), the company provides a great experience through exceptional customer service. For many other businesses, providing a great experience is much easier than this.
New Customer Strategy #4: Give Them Information
Every business needs to educate its customers, whether you charge for that education or not. I love it when my mechanic, Vinny, explains to me my car's problem, what caused it, how to fix it, and what it will cost. Sometimes we even go through options together, and I couldn't make a decision on the right one without getting the facts first.
Providing education demonstrates that you're an expert, increases your trust, and gives you higher credibility in the customers' mind. It also gives you an easy segue into showing the benefits of what you're offering and how it will help.
Some lead generation methods tie in very well with education. For example, if you're trying to get blog posts ranked in the search engines, you'll need to write articles on topics of interest to your readers; like how to do something, the pros and cons of different products or services, etc. These posts will show your expertise and educate the reader.
You can do the same with videos. Simple, informative videos can get the attention and interest of prospective customers. End each video with a special offer or a "call to action" that encourages the prospect to contact you.
To summarize, figure out how you can give new customers a great deal, an experience, and the information they need. And consider giving better incentives to your sales team. Use these 4 tips to get new customers. And then once you secure them, deliver high quality products and/or services. When you do, you'll start building a strong book of repeat business that helps your sales and profits soar!
Suggested Resource: Download Growthink's Ultimate Marketing Plan Template today in order to quickly and expertly complete your marketing plan. Among other things, your marketing plan will give you multiple strategies for gaining new customers.
In the United States, there are many laws that protect investors. One of them prohibits entrepreneurs from mass-marketing investments in their businesses. For example, you can't solicit investors on your website nor via social media sites like Facebook.
However, if you set up a crowdfunding campaign, you can (and should) market that campaign and drive traffic to it using social media.
This article will help you do just that.
A Little Knowledge Will Strengthen Your Efforts
You can't use social media websites without understanding how the different ones work. Here are four of the biggest:
Benefits of Building Network Connections
You should try to build a group of supporters before starting your crowdfunding campaign. Support need not always be financial because favorably disposed members could recommend your project to their friends and associates. Fans love to take part, so you should listen to what they say and adopt suggestions to foster loyalty. Basically, you're looking for your advocates and cheerleaders. Find them and connect with them on the social networks.
Set up Your Crowdfunding Project
There are many crowdfunding platforms (e.g., Kickstarter, IndieGogo, etc.) where you can set up your crowdfunding project.
Importantly, when you do, make your project pitch clear and concise, so people "get" it right away. Also, in the ideal case, you pull on people emotionally, so they really want to see you succeed. The key is to try to bond with people, which you can effectively do via a video you create showing why people should fund you and your venture.
But also keep it real. Show funders how you will spend the money and over what period of time.
Start the Conversation About Your Project
Once your crowdfunding project is set up, use your social media presence to promote it. Post out to your network to tell them to visit your crowdfunding page and to tell others about it.
Also, feel free to go beyond social media. You can use email, creative Youtube videos, a blog, and/or discussion forums to boost your efforts.
Crowdfunding is a great new way to raise funding for your business. However, once you set up your crowdfunding page, don't expect people to just show up and fund you. Rather, you need to market your crowdfunding project. And social media is a great way to do just that!
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.
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.
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.
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.
We are really excited to announce we have launched a new business plan website, BusinessPlanTemplate.com.
As the name indicates, the site will include business plan templates for all types of businesses. Currently, we have forty templates on the site. Templates are organized into 3 categories: Food & Retail, Service, & “Other” business plan templates.
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!