Home Business Success
You must be equipped with the knowledge of starting and running a business before going in business. Here are ten essentials in business
1. Test your ad first before you spend a bundle
Amazing, but true, most people that go into business fail within 12 months. Unfortunately, most failures are blamed on lack of capital. Not enough capital can really hurt a business, yet most businesses fail due to the inability of getting customers. However, don’t risk a lot of capital. See if people want what you have to offer first. Run ads to see if people will buy your product even if you don’t yet have your product in hand. You can always get the product. Getting customers is the tough part. Remember, always fit a product to a market. If people want what you have to sell, a big part of the battle is over. Test everything you do to see which approaches bring you the best return on your efforts. Test HEADLINES, guarantees, bonuses, packaging, etc. Remember that minor differences can result in big gains in profits.
2. Know your Numbers
Most people mark up their products with too little mark up. Always remember that you have to get at least a four to one mark up or better from your cost to what you sell for. Sure, some products have low mark ups because they’re looking for long term customers. Some people lose money on the first sale just to get new customers. They know, of course, that they can lose money up front to get customers. My advice is make your profit in the first sale when you begin, for two reasons. One, losing money on the first sale works well if you have enough money to lose, and you know for certain that people will buy more from you. Secondly, you know how much you can afford to spend to get a new customer. Until you know these things play it safe. Make money on the first sale. Always start with a little overhead and build from there. This is so important to understand. Start small, buy low, sell high, then once you know what you can afford to spend from each sale, expand gradually.
3. Use Compelling Headlines
Most advertising efforts are failures. A lot of folks go into business thinking if they spend money every thing will be terrific. Great ads, sales pitches, direct mail pieces, informercials, radio or TV commercials, or any successful effort in selling begins with a powerful headline or opening statement. Ads that don’t get your attention won’t get your money; plain and simple. Getting someone’s favorable attention is like building a foundation for a house. If you don’t get attention in a favorable manner, you won’t make a sale. Make your headlines grab people’s attention. The only way to get back more from what you spend is to spend time constructing very powerful headlines. Then test the headlines and see which ones bring the most response. Remember that you can only test one thing at a time.
4. Don’t give up!
Many wealthy people have lost it all. Some on more than one occasion, yet they rebuild and learn from their mistakes. Here are five keys to succeeding in business:
a) Sell what people want to buy (fit the product to a market)
b) Have a sufficient mark up
c) Get help from someone else if you need it
d) Know your numbers
Above all else, don’t give up. Learn from you mistakes and be persistent. Your hard work will eventually pay off.
5. Do everything you can to stay in good physical and mental health
Start exercising, if you don’t already. Eat healthy, more raw fruit and vegetables. Let others help you grow, when you get to a point where you can afford to do so. Keep your mind in shape. Give it a rest sometimes. If you get in a position of working ridiculous hours, and you feel like you’re going to have a heart attack, stop what your doing and take it easy. Stay in top physical and mental condition, this small investment in time will yield dramatic results.
6. Recruit people to help you
True growth in financial prosperity, comes when you realize what you’re good at and also what you are not good at. No matter who you think of, everyone has strengths and weaknesses. Everyone. The winners admit their strengths, acknowledge them and get help with their weaknesses. If you can’t work through others, then you will only grow to be so large in any business.
7. Use the AIDA formula as a guideline in creating winning presentations
A stands for ATTENTION. You must first get a prospect’s attention if you want to make a sale. That is where a powerful headline comes into play. I stands for INTEREST. We can begin to build interest if we have someone’s attention. D is for DESIRE. You build desire by making your offer irresistible by offering strong guarantees that are better than your competitors' and giving at least one bonus for ordering that a customer can keep. A is for Action. Build urgency. Build your offers in any business to get people to act now. Many ads get the first three elements of the AIDA formula correct. Then they forget to close the sale. You have to ask people to buy! Offer as many payment options as possible. The easier it is to buy the more orders you will get.
8. Be a great manager of your time
Prioritize your business activities by deciding which activities generate money and which activities spend money. The fact is most business people spend more time considering how to spend a dollar rather than how to make it. Always have a clear objective of each and every day. Try to determine how much time it will take to accomplish each task. Try to accomplish activities that generate capital instead of spending. Remember be proactive, plan your day and work your plan. I’ve yet to meet a super successful person who doesn’t plan their business agenda. Your time is very valuable. If you don’t plan your day, you become reactive and fall prey to the time thieves that will rob you blind of success.
9. Negotiate Success
The most important thing in negotiating is that you have to be willing to walk away from a negotiation. You also must be sensitive as to when to close a deal. Striking a balance between these two criteria is the key to a successful negotiator. Make sure both parties feel good about the deal. One way or the other you will come out a loser if you take an overwhelming advantage over someone in a negotiation. The key is that balance of knowing when to close and when to walk away. Practice your negotiating skills and remember that if you are too eager to do a deal, you probably won’t get the most favorable terms for yourself in the process.
10. Be Innovative
Innovation is simply having a better product or service and being able to communicate the unique features of what you have to offer in a specific manner. This will give you a considerable advantage over your competitors. Everyone wants to know what you are going to do for them and if you can’t relay that to consumers, then you fall into the same trap that keeps most businesses trapped in mediocrity. One of the most powerful headlines that you can distinguish yourself from other competitors selling a similar product, good, or service is Five Powerful Reasons Why You Should Use (your product, good, or service). The point here is that people need to be lead in a compelling manner and know why they should part with their hard earned money. Your innovation may be better terms or better guarantee. Whatever innovation you chose and foster as your competitive advantage, or unique selling proposition, it must be specific. Don’t just throw out terms like we have better service or more experience. Tell people the specifics. If you can specifically articulate why people should do business with you, it can prove deadly to your competitors.