How To Avoid Revenue Ceilings, Pt. 1 -- Day 12/365

Real People.  Real Business.  Real Life.

Today's topic is another one that deserves 2 days... so let's dive straight in.

You business is probably built with a "revenue ceiling" in it.  That means that, by design, you can only make a certain amount of money, even in the best conditions...

You need to engage in an ongoing process of business optimization so that you don’t fill to capacity and hit an ‘operational revenue ceiling’ that prevents you from reaching and exceeding the highest possible revenues.  Most entrepreneurs I encounter don’t understand that they have structured their business with a revenue ceiling built in.  The only way they experience significant growth is by chance luck or some outside factor turning things to their favor.

But --- if you understand that (1) you’ve always got some sort of revenue ceiling, and that (2) you can move the ceiling as you go --- the problem becomes null and void.  You can use it to your advantage to help you plan for each ‘next level’ of business you pursue.

 At a small size, and with most businesses, dealing with this is relatively simple on paper.  Don’t let the succinct nature of the following pointers fool you.  Getting this is critical if you want to generate serious wealth with your business.

POSITIONING FOR OPTIMIZATION -- ACTION EXERCISE

1)  Start to develop and understanding of your business as a PROCESS, or SYSTEM.

2)  Map out the PROCESS that your business follows, from generating the lead, to creating that fully satisfied client who is pleased with the work you have done.

• You can draft this with pen and paper.  Create a basic flow chart that maps out the core functions of your business, in proper sequence.  Some functions might be parallel, or might merge, or diverge.  Either way, create a sequential chart that shows how you go from potential client, to paying client, to satisfied client.

3) Make sure you absolutely understand what your CORE SUCCESS FUNCTIONS are.

• Certain activities you engage in will be critical your business.  Others will be secondary, supplementary, or complimentary.  Typically (and I’d argue always) your true core success functions involve the key activities you engage in to generate business (market yourself) and deliver value to your client (provide the actual services being paid for).  Everything else is supplementary, secondary, and is typically an expense – time-wise, energy-wise, or financially.
• Identify which activities are core success functions on the flow chart.

4) Make sure you truly understand what you COMPLIMENTARY ACTIVITIES are.

• Again, as discussed above, these are necessary-but-secondary functions that allow you to continue engaging in your core success functions.  This can range from book keeping, to website maintenance, to scrubbing the toilet.
• Identify which activities are complimentary activities on the flow chart.

5)      If necessary, re-create your flow chart so that the primary flow of activity is centered on your core success functions.

• You might even want to simply list the complimentary activities to the side, and make the flow chart entirely about core success functions.
• Getting absolute clarity about how you generate business and how you deliver value to clients is priceless.  Amazingly, many entrepreneurs remain foggy on this.

Look for more tomorrow on this extremely important topic.  I'll shed some more light on it.

To Your Enduring Success,

3 Types of Positive Business Problems -- 11/365

Real People.  Real Business.  Real Life.

This topic came up in a conversation with a client yesterday.  Here it is...

Most people see problems as, well, problems.   And they are baffled by those who actually, genuinely see problems as opportunities.

As cliche as it sounds, problems actually are opportunities.  And the better you get at solving problems, the better you will get at driving your business forward.

Think about it for moment.  The biggest business heroes and larger-than-life leaders were the people who solved the biggest, most important problems their world (or corner of the world) was facing at the time.  And the cool thing --- when you become skilled at solving peoples' biggest, most important problems ... you are incredibly rewarded for it.

To help develop this skill, I have found it very, very helpful to categorize the problems that enterprises face into 3 separate areas.  Here are the categories...

The 3 Types of Positive Business Problems

1. Your market's problems - These are basically problems out there in your audience of actual and potential buyers.  This is the territory of problems that, if you can solve them, your market will reward you by coming to you to do business.
2. Your competitors problems - These problems are the ones you can exploit to your advantage.  Or, these are the ones you can see, learn from, and avoid ... stuff like that.  (BTW -- if you aren't watching your competitors, you'd better start.  You're missing a world of information you can harness and use to your further your business!)
3. Your own business' problems - These are the problems that are right there in your face.  These are the ones you are most familiar with.  I don't need to say much here.

First ... keep a view that these are positive problems.  That simply means that there is great reward in solving them!

Second ... understand that, with regards to your business, the problems you encounter are going to fall into one or more of these areas.  And by understanding where they fall, you can get a much better grasp on the opportunity solving the problem represents --- and --- it will attune your mind to appropriate, effective solutions much more quickly.

TAKEAWAY:  As cliche as it sounds, problems actually are opportunities.  View them as a positive obstacles that represents potential reward --- if you will get to work and solve them.  Categorizing the problem will help you mentally frame it in a way that can help you find a solution faster.  Finally --- the more areas the problem involves (1 versus 2, or all 3) the greater the reward in solving it.

ACTION STEP:  List the single largest problem you are facing within each of the 3 categories.  Decide which one that -- if you were to solve it -- would yield the greatest reward.  Devise one simple way you can begin to solve that problem... some sort of tactic that you can execute within the next 24 hours... a tacic that will chip away at the problem and move it toward resolution.  Do it.

To Your Enduring Success,

Very Simple, But Very Important - Day 10/365

Real People.  Real Business.  Real Life.

Today's topic is so amazingly simple and self-evident that it should go without saying.

But, from experience, I can testify that something supposedly "going without being said" actually means it absolutely should be addressed.

...This is going to be short and sweet.

When you go into business for yourself, make sure you are doing something you can love.

Even with the greatest business in the world, there are still going to be things about it that are less-than enjoyable.  That's a fact of life.  But you must make sure that -- whatever you are doing -- you take great enjoyment and satisfaction from some major element of the business process.

Stated differently... make sure a HUGE piece of your business puzzle involves doing something you love.

Otherwise, you won't be able to sustain your effort for the long haul, through good times and bad ... and you definitely won't have the drive to take your business to the top.

TAKEAWAY:  If you're going to be in business for yourself, by all means, do something you love.

ACTION STEP:  If you're starting up, and you can't fall in love with a BIG chunk of what you're doing --- or if it doesn't directly help you move toward doing that thing you love most --- then course correct immediately.  If you are up and running, but doing something you aren't passionate about, do some soul searching about how you can revise and upgrade your daily role so that it gets centered on something you are more "in love" with.  And if you love what you're doing... be thankful and squeeze ever bit of enjoyment out of it that you possibly can!!!

To Your Enduring Success,

Do You Know Yours? -- Day 9/365

Real People.  Real Business.  Real Life.

I was discussing this issue with a client a few hours ago...

Your business represents a process.  Growth-wise, the sales portion of this process is particularly relevant.  From cold prospect or first-time "window looker" ... to loyal, repeat customer -- people go through a step-wise sequential process from one end of the spectrum, to another.

The better you understand this process, the better you can lead people through it.

For example...

Let's say you retail products through a website.  Your sequential sales process could look something like this:

1. Potential customer does a keyword search on google.
2. They land on your homepage that emphasizes your bread-and-butter product line.
3. Your sales copy gets someone to pick up the phone and call your sales rep about the product they are interested in.
4. Your sales rep answers questions and asks for the order.

This is relatively simple.  Perhaps it could be fleshed out a bit more (it can, especially #4).  But business, in general, is actually about doing very simple things over and over (and over...).

(BTW, this is the core sales process for several businesses I know that are doing 7-8 figures, solid.)

TAKEAWAY:  In order to sell more effectively, know your business' sequential sales process.  Grasp that, and you can improve each component part significantly and ... sell much, much more.

ACTION STEP: Grab a pencil and paper. Map out your core sales process. Keep it as simple as possible (you can always dig deeper and flesh it out later).  Zero in on the one step in the process that you are weakest at and devise 3 ideas for improving that step.  Pick the best idea and execute it tomorrow.

This impact of little exercises and actions like add up over time ... and they can and will drive some of your biggest breakthroughs.  I've seen this time and time again.

To Your Enduring Success,

Can You See It Now? -- Day 8/365

Welcome to Week 2 of of 365 straight days of non-stop business growth blogging.  This stuff is straight from the front lines of capitalism, folks.  Not theory.  Not an intellectual exercise.  These are the make-or-break battles I help real entrepreneurs fight and win in the marketplace...

"Real People.  Real Business.  Real Life."

One of the most often discussed (and yet most poorly applied) concepts in small business is vision.

I'm not talking about a "vision statement" or anything cliche.  I'm simply talking about your ability to see where you are going with your enterprise.

Where are you trying to take it?  Where is is actually going?  Can you actually see the future in your minds eye, and are you confidently pursuing it?  Or are you in a fog?

Whether start-up or 7-figure operation,

I consistently see this issue divide the successful from the struggling.

The people who are advancing, making things happen, and seeing their plans materialize --- they have a clear, compelling vision of what they are doing and where they are headed.  They have a strong grasp of it, and they can communicate it to people in a way that makes others believe the vision is real --- not just some pipe dream.

The people who are stuck and struggling... well... they're in a fog..  They might have a few notions about what might become of their venture... but they are operating mostly on hopes and dreams that are largely disconnected from any sort of concrete reality.

Which one are you?

Scenario 1:  Imagine driving your car down the road.  Imagine totally clarity about where you're headed.  You've got a clear view of the road.  You can see the world around you.  And you can see up the road... and have a sense of what lies around the bend.

Scenario 2:  Now imagine driving in a total fog.  You can't really see around you, or in front of you --- let alone up the road a ways.  Now imagine that you aren't even sure where you want to go.  Imagine you are just kind of turning here and turning there, hoping you'll suddenly look around you and say "ah hah!  I've arrived!"

Which scenario is more akin to your situation?  Do you possess clarity?  Or vague notions?  Do you know your destination, or are you just "driving" and hoping you'll know when you've found what you're looking for?

TAKEAWAY:  No one can actually tell the future... but possessing a clear, compelling, near-concrete vision of what you are trying to accomplish is pretty stinking close.  The more clarity you possess, the faster you will move and the sooner you will get where you want to go.

ACTION STEPS:  Honestly answer the question:  "Do I have a clear, compelling vision?  Do I have clarity about what I'm doing, where I'm at, and where I'm going?  If you can't "see into the future" as clearly as you'd like to, take these actions:  Create a list of 6 concrete, tangible actions you can take that will take the dream or vision in your heart and force it to clash with reality.  Something that involves bringing it into contact with the real world in a way that will give you some feedback.  Pitch an idea to a potential JV partner and listen to their feedback... launch a test ad campaign... conduct a customer survey about your customer service... anything that allows you to get real world feedback --- which will then reveal the next actions you can take to gain even more clarity about where you're headed.

"To make your dream a reality,

you must confront your dream with reality."

To Your Enduring Success,

What Are You REALLY Selling? -- Day 7/365

"Real People.  Real Business.  Real Life."

Do you ever hear people use a word --- and you can tell they don't really know what it means?

Perhaps they have a shallow understanding ... or a confused understanding ... or no understanding at all?

Can you think of some examples?

...

One such word I hear on almost a daily basis -- which there is much confusion about -- is the word "value".  And in the world of small business... where your enterprise exists to deliver "value" to the world (and by deliver I mean sell)... confusion or misunderstanding about what "value" means can be lethal to your success (and survival).

As entrepreneurs, we must absolutely understand

why our market is willing to pay us for our product or service.

People are willing to pay you because you offer them something they value.  And value is in the eye of the beholder.  Look at it this way...

The guy who buys the expensive sports car, at a deeper level, isn’t really buying the car itself. Even if he’s not conscious of it, he’s buying what the car represents --- the image of success, the expression of power, the aura of sexiness … you get the point. The concrete object is secondary. The benefit it brings, intangible or otherwise, is the primary force driving the sale. 

That benefit -- or more appropriately set of benefits -- (intangible, tangible, emotional, experiential... whatever) is the value you offer.  The value you offer is why people will trade their time for money, and their money to get what you can give them.

This is true for a someone selling cars.  This is true for someone who fixes plumbing problems.  This is true for someone who gives kids piano lessons.  Wherever someone trades money for a good or service of any kind, this is true.

TAKEAWAY:  The more deeply you understand the real, value-related reasons why people buy from you, (1) the more effectively you can give them more of what they really want, and (2) the more effectively you will be able to sell them more of what they really want.

ACTION STEP:  What are you REALLY selling?  Grab a sheet of paper.  Start listing the things people receive from you in exchange for their money.  Start with the most concrete, most outwardly observable elements of what you deliver.  Then dig deeper, and deeper, and deeper... listing everything you have sold them from tangible, to intangible, to experiential, to emotional... until you can't come up with anything else.  Your list might start with "pitching machine" and end with "hope that they can achieve the dream of going pro someday" Then figure out what you have listed that your market values the most.  Figure out how to give them more of that.

Topics like this, frankly, are ridiculously important --- but often totally overlooked.  You have to know - REALLY - the value that you are selling to your market.  Until you are absolutely and totally clear on this, your performance will be marginal, compared to what it could be.

To Your Enduring Success,

THE Difference Maker... Part 2 -- Day 6/365

Yesterday I began a discussion of strategy versus tactics.

The core thing I wanted to do was crystallize --  in your mind -- what the terms really meant.  I used the example of a symphony versus a instrumental soloist to drive the concept home.

Strategy is all about orchestrating multiple factors so that they play upon and compliment one another... thus creating a much larger impact and generating much greater results than the factors ever could alone.

Tactics are the factors that make up the strategy.  They are the pieces of the grand puzzle.  The are the individual players in the symphony.

And in business -- just as in music -- most people haven't cultivated the ability to compose and conduct that finely orchestrated, strategic work.  They dabble in tactics... isolated factors... and wonder why their business isn't having the impact on the market that they think it should.

Here's today's biggest question:

So... have you been strategic with your business?  Have you carefully woven the pieces (actions, activities, daily efforts, etc.) together into an impactful, carefully complimentary whole?  Or do you have a mess of tactics jumbled together... tactics that, yes -- are related, but that don't really advance and enhance one another as you execute them?

You are going to engage in tactics no matter what.

So why not make sure they "harmonize" with one

another to get you the best results possible?

TAKEAWAY:  Impactful, high performance businesses are strategic.  Most businesses, however, are tactical.  That means if you can become increasingly strategic with everything your business does, you can begin to beat the competition in ways you never dreamed possible.

ACTION STEP:  Get some time alone to thing about your business.  Come up with a real answer to this question:  What is the ultimate outcome, or impact, you want your business to have on your market?  Once you have the answer, give it some time to sink in.  The answer will help you identify the strategy you need to create.  Then get alone again.  Come up with a real answer to these questions:  How can I begin to orchestrate the tactics my business is engaged in so that they clearly advance and enhance on another?  What tactics can I eliminate?  And are there any tactics I should add to create a more impactful, effective strategy?

Every time I see an enterprise make the shift from tactical to strategic, the resulting impact is almost always immediate and strikingly dramatic.  So get out there, tune things up, and make the change.

To Your Enduring Success,