Four Reasons Why a Business Planning Consultant Can Help Your Organization!

Given the drastic changes in technology as well as the market place, businesses are changing and progressing really fast. The only way to match this pace is to have a strategically oriented plan in place that will help you create a direction for this change. You may not be able to control the pace but you can at least chalk out the road on which it progresses!

Hiring a business consultant can prove to be extremely helpful in such situations. While most of us assume that hiring business consultants is just an additional expenditure that business owners must avoid, this is a misconception. Business consultants are seasoned experts who are familiar with the several situations pertaining to an organization and its growth. Their experience and expertise can come in extremely handy especially in the present day recessionary scenario.

Here are four reasons why hiring a business planning consultant can be a great move for your organization.

Fill in for full time staff

As part of your expansion process, you may have handed out pink slips to several employees whose services are not needed full time. You can easily ask business consultants to step in and fill in for them on occasions where you need their services. This way you can save money and avoid hiring staff on a full time basis. Also, hiring consultants ensures that you are investing in quality and expertise that will lead to the welfare of your business.

Hiring and firing

Your business is not doing so well and you need to downsize but the challenge lies in figuring out who to keep and who to get rid of. As the business owner, you may be accused of having a biased opinion and not be able to look at the multiple aspects surrounding the issue. However, hiring a business consultant can help you avoid such problems. Being outside the organization, the business consultant will be able to analyse the utility of every staff member more accurately and therefore take better decisions.

Better equipped to understand better

You are handling your own business but a consultant has the rare privilege of handling multiple clients. In simple terms, you are figuring out the solution to one problem but a consultant may be battling the same situation in different businesses across categories. This gives him or her, a stronger ability to identify the solution and several other impacts of the problem that may be hidden from your eye.

Fresh perspective

There are situations when the solution to the problem is just round the corner but we are so obsessed with the impact that we rarely notice the simple details. However, bringing a consultant on board will infuse a fresh perspective to the entire issue making it easier for the solution to be identified.

Strategic Planning News. Find breaking news, commentary, and archival information about Strategic Planning From The Economic Times.

Strategic Planning News. Find breaking news, commentary, and archival information about Strategic Planning From The Economic Times.

You Have to Give to Get, Part II

In Part I of this article, I introduced a very effective concept that most marketers don't often use when selling information products: the idea of giving away some of your very best information for free in order to entice your prospects into buying. It works like a charm. This time, I'll offer two strategies you can use to quickly put this idea into action.

The first is this: if you're selling a print, audio, or CD product, one of the most powerful things you can do is give prospects a free chapter or excerpt from that product. One of my colleagues once very successfully sold a book online called The 12 Month Millionaire. On his website, he gave away the first chapter absolutely free. One of the things he asked was that those people who requested the chapter included their name and email address; when they did, he would go ahead and email them the first chapter, word for word.

Now why would he do that? Because my colleague knew that after his prospects finished reading that first chapter, which is filled with a lot of information, they were going to want to read the second, the third, the fourth, and so on... every chapter of that book. So he wasn't afraid to give away one chapter, because he knew by giving them that valuable information -- an actual part of that product -- they were going to want to purchase the rest of that product. It worked very well, too! So if you've got an information product, try giving away the some quality portion of the product, and then make sure the prospects have some way to go back and purchase the rest of it.

A second strategy has to do with email. Most people are so overwhelmed with spam that many of the emails we marketers send out are going right into the trash. Well, here's a secret, using the method I just gave, that can not only make people open up your email, but make them look forward to it. Just give them valuable information in every email. The colleague I mentioned earlier, for example, always includes a useful strategy with every single email he sends out to his mailing list. He gives them information they can actually use -- a technique, a trick, something that will actually benefit them, something they can use to actually get results and solve a problem.

Why does he do that? Because his subscribers know that he does it in every single email -- and, of course, at the end of those emails, he includes marketing information about his product. But because they know they're going to get valuable information, when they see an email from him, they open it up. All the other marketers who are just pitching their product get their emails pitched into junk mail and spam boxes, whereas my colleague's get separated out because he's delivering real value every time he emails his list. As a result, the response rate for the product he's offering in that email has risen dramatically.

As is so often true, it's all about separating yourself from the competition. My mentor tells a great story about a sandwich shop whose owners came to him years ago, saying, "Our business is going down the drain. Although we make the best sandwiches in San Diego, the neighborhood our little sandwich shop is in has turned seedy." The whole neighborhood had gone to hell, but this guy owned his real estate and didn't want to be forced out.

And yet within a couple blocks from his sandwich shop, there were all these high-rise office buildings. So after he sampled their sandwiches, my mentor told the owner, "Here's what you have to do... " He told the sandwich shop owners to hire nice, attractive young women, very clean, professional, and well-dressed, to go to these office buildings every single day to deliver free samples along with a little menu card, and to answer any questions people had about the daily specials and whatnot.

In the end, the sandwich shop gave away hundreds of dollars worth of free food every week-but they got back thousands of dollars worth of repeat business from people who sampled the sandwiches, loved them, and were willing to go through a neighborhood they otherwise might have avoided if there hadn't been something delicious waiting for them at the other end. Eventually the sandwich shop developed a delivery system where they took the sandwiches right to the offices, so the customers didn't even have to do that much.

Unfortunately, some people don't catch on to that story because they think, "Well, I don't run a sandwich shop. I can't pass out sandwiches." But that's the great thing about the information business! We have the ability to get information out to people very inexpensively. It's the same for any business. If you were a realtor, you could offer a report on the ten things to definitely not do when selling your home, or ten things to understand before you buy a new home. It's the same with carpet cleaners, or plumbers, or booksellers. You can give away useful information to your prospects before they actually purchase from you.

By doing that, you're able to make that connection, set yourself apart, and pull prospects in-versus your competitors, who are just showing them the advertising. This isn't a technique that works only in one business or another. This works for every type of business. If you're running the same old ads that everyone else is, you can do yourself a huge service just by having someone who knows marketing re-write your ad and focus on providing an immediate benefit -- offering a free report, some kind of giveaway, something you can do to draw attention to your ad and make it look different from the ones are running right next to it.

But most people don't even think that way. They get bound into their particular market. They forget that they have to do something strong to differentiate themselves from the competition. Everybody's running with the herd, doing the exact same thing -- and wondering why they're not getting good results.

Get away from the herd. Do something differently than everybody else, and you'll really stand out above and beyond your competition.

Product Differentiation Types - Horizontal Vs Vertical

Economic theory tells us that companies who sell the same product to the market will ultimately end up in "perfect competition" and each make zero profits. Thankfully, this particular theory (like most others) offers us the starting point so that we can better understand the reality.

Using two ice cream vendors on the beach as our example, and sticking to economic theory, the vendors would be physically located right next to each other in the middle of the beach and they would sell the same ice cream at the same price. Neither one dare try to sell his product at a higher price than his competitor, and a "gentleman's agreement" to both keep prices high but equal will be short-lived. Temptation for landing greater market share takes over and, sure enough, one of the vendors begins the race to the bottom by lowering his price just a little. We know how that ends!

The reality, of course, is that companies DO make profits, and one of the ways they do it is through Product Differentiation.

The assumptions that are set as a part of the theoretical scenario give way and the market opens up. For example, the vendors wouldn't sell the same ice cream because different consumers have different tastes. Also, imperfect market transparency exists, meaning that some consumers would only know the prices of one of the vendors. Other assumptions are removed as well, and each plays a role in how the market reacts.

Product Differentiation is beneficial if consumer preferences are heterogeneous. Factors such as technical features (cell phones), durability (shoes), resale value (real estate), taste/image (cars), location (gasoline stations or ice cream vendors!), and time (flights) all help consumers decide which choice is best for them. Customers, after all, determine the value of YOUR products. Not sometime. All the time.

Product can be differentiated along two lines:

Horizontal Differentiation - given equal prices, some consumers would choose product "A", whereas others would choose product "B"

Vertical Differentiation - given equal prices, EVERY consumer would choose product "A" over product "B"

Back on the beach (and who doesn't like the way THAT sounds!), we may find one ice cream vendor moving away from the middle. This allows him to increase his price because he is more conveniently located for people at one end. Seeing this, the second ice cream vendor follows suit and moves a little further away from the middle also, only in the opposite direction. This example of "Horizontal Differentiation" allows him to raise his prices as well. Each vendor, now selling their products at a higher price than before, is making more of a profit. The supporting factors that are positively influencing prices and profits in this Horizontal Differentiation example are:

the distance of the vendors from each other

the magnitude of the consumer's discomfort from having to walk a certain distance

the number of consumers on the beach

Applying a Vertical Differentiation element, let's assume that one vendor is selling a premium ice cream while the other is selling an inferior product. If the prices were the same, all consumers would choose the vendor with the premium brand. Knowing this, the vendor with the inferior ice cream lowers his price. Assuming his costs are also lower, he is still able to make a profit, even at lower prices. The first vendor can increase his prices, considering his target market will pay more for the superior product. And so it goes, the lower end can decrease their product quality (and costs) even further and the higher end can increase as much as their customer base will allow them to. The supporting factors that are positively influencing prices and profits in this Vertical Differentiation example are:

the difference in the quality of the products

the degree of heterogeneity in terms of the consumers' willingness to pay

The end result, and we see it all the time, is that companies offering lower quality products can realize strong profits, just as firms offering higher quality products.

A healthy exercise is for manufacturers to understand if they can be more profitable through the implementation of Horizontal Product Differentiation or Vertical Product Differentiation. There is very real potential for even greater profits to be realized.

If you would like to discuss this further to understand how this approach will benefit YOUR Company, please contact Brand Performance today!

Brand Performance is a company designed to offer Affordable Business Coaching to companies in the US and International Markets. We help companies increase their sales by strengthening their commercial presence, implementing cost savings practices, and taking market share.

Stuck In The Middle? You're Doing Too Much

To maximize your profits, your company needs to be focused on one of three strategies. Any of them will result in a defendable position in the marketplace and you will outperform your competitors. Companies that fail to develop their strategy in at least one of these directions are in a poor strategic position. Companies that try to combine any of these strategies without a high degree of organization, though, find themselves stuck in the middle.

Porter's Generic Strategies are:

1) Overall Cost Leadership - as the name implies, your strategic theme is that you will become a low-cost company relative to your competitors. The central elements of this strategy are: efficient operations, aggressive cost reductions, the avoidance of marginal customers, and minimal spend on elements such as R&D, sales, service, and advertising. Despite the lack of commercial spend, market share and profits are strong because of aggressive pricing.

2) Differentiation - when your strategy is to offer a product or service that is perceived industry-wide as being unique. Examples include: design or brand image, technology, exceptional customer service, or a strong distribution network. This strategy requires an investment in R&D or a focus on service. Costs are higher, but so are sell prices. Market share is strong due to exclusivity.

3) Focus (aka Segmentation) - this strategy includes elements of both Overall Cost Leadership and Differentiation, BUT limiting your focus to a specific market segment (industry or geographical). The rationale for the Focus strategy is that it allows your company to serve a narrow target group more effectively and efficiently than your competitors. If you decide to pursue this strategy, you will apply both low costs and differentiation to a niche market. Your market share and profits in this niche are high because you have chosen to forego other markets.

All of this sounds simple enough - pick a strategy and enjoy strong profits. So why do so many companies struggle to find their identities? The most common answer is that they have chosen their strategy but they have not committed to every aspect of it. Unfortunately, many companies lack the focus to create either Differentiation or a Cost Leadership position. Others try to pursue multiple strategies, and while this has proven successful in some cases, it must be executed with a high degree of discipline and organizational alignment. Tensions within organizations often derail the combined strategy effort. For example, I've seen companies where the Production and Sales departments are so misaligned that you would think they were two different companies, seemingly competing with each other. It's a shame, but it's not difficult to correct.

Brand Performance is a company designed to offer Affordable Business Coaching to companies in the US and International Markets. We help companies increase their sales by strengthening their commercial presence, implementing cost savings practices, and taking market share.

The Risks of Business Growth

Most owners want their business to grow. In fact many defend their desire by quoting the "grow or die" myth; the belief that a business has to grow in order to stay relevant. It's not true. In fact, the opposite might be the case as the truth is, there are risks to business growth.

If you have a successful company - one that is consistently profitable - an aggressive growth strategy can kill it. By stating this, I'm not denying the benefits of smart business growth including increased profits, greater stability, improved value and more opportunities for employees. I'm saying that without careful planning the pursuit of growth can hurt a business in four key areas.

Customers: Can you still serve them as well as before?

A growing company makes mistakes. In fact during periods of growth the overall quality of service and products goes down before it improves. And in the day of 99.9% internet reliability, your customers will notice. Recently I was engaged as the Interim-CEO of a large service business. In eighteen months we increased sales by 50% while maintaining our better-than-industry-average net profit margins. During this period we also stretched our production and customer service personnel.

More customers meant more touches, more experiences, more opportunities to "shine or s _ _ _," as I told our managers. Since today the customer is no longer "king" (able to set the rules) but "tyrant" (able to swiftly punish those who fail to meet their expectations) we reviewed our service standards, created reporting systems and determined how to quickly follow-up when we "missed" our high standards before we committed to grow. As a result, the advances we experienced in the first year carried over to the second.

Culture: Will you enjoy what your business will become?

A large company is different than a small one. Not better. Not worse. Just different. And when a company grows, its culture can change.

Several years ago I was engaged as the Chief Operating Officer (Interim) for a large independent financial firm. Despite its success, the practice had stopped growing, due largely to its structure and operations. During this period we re-assigned employees, developed new job descriptions, created new levels of accountability, improved performance standards; all the things you would expect. Because of our comprehensive approach we worked closely with the human resource director and found her to be both capable and caring.

It was that latter quality that kept getting in her way. In her mind, the relaxed "family feel" was being sacrificed at the altar of performance. She was right. Sort of. Although we set higher standards we continued to support employees, have fun and give personal touches. Still, the culture changed and she soon found another job. At a smaller company.

That's a price - a risk - of growth. Fortunately, in this case, the cultural changes helped support a long, sustained period of growth.

Cash: Can you afford to grow?

It costs money to grow. In fact, before deciding whether or not your company is ready to grow you should first determine whether or not it can handle the financial strain growth can produce.

At times, I will bring in an outside accounting manager (CFO) to take control of the finances during the growth engagement. Working together we can manage cash, project revenues and expenses, improve the balance sheet and create forecasting tools that support the initiative. The right person and systems can help create the discipline needed to improve equipment, property, wages; everything needed to initiate and continue a strategy for growth.

With the right person in place as the CFO, we were able to move ahead with growth,

Competition: Are you ready for more?

When I was in high school (just after the one-room school houses) I played football. Since I lived in a small town, we played in a small town conference which meant that my small body was large enough to play offensive and defensive tackle. Back then I was skinny; enough so that in my uniform I looked a bit like Barney Fife (look him up... he was skinny) in pads. Had I been in college, I would have been a statistic.

Competing at the next level required more skill, more speed, more desire, more talent and more weight. It's the same in business. As you grow the competition changes. Larger companies have more resources and if they see you as a threat they will use those resources against you. If you aren't ready, you'll get crushed.

Should I go ahead and decide to grow? That's the question every owner should ask before committing to growing their company. It's possible that by staying the size you are now you will continue to enjoy the lifestyle you've created and the profits you've come to expect. But if you choose to move ahead, to expand your business or practice, then be mindful of the risks to business growth.

Lessons From the Beginning of America's Economic Independence

Twenty years after America's political independence from England, its transportation network connecting the country's towns and cities remained inadequate for the needs of its own commerce. At the turn of the 18th century, information traveled at the same speed as people whether by messenger, the mail, or the newspaper. The news that George Washington died on December 14, 1799 took seven days to travel the 240 miles from northern Virginia to New York. Under these conditions, few institutions operated across long distances, even as Americans began to move west over the Appalachian mountains by the thousands.

At that time, New York's aristocrats were classic landed gentry, owners of vast manorial estates along the Hudson River. They felt that people of their class were the rightful owners of business monopolies, and unsurprisingly, this attitude gave the ruling class a windfall of profits which they used to maintain their social control. Cornelius Vanderbilt became very wealthy by breaking the transportation monopoly and he did it by challenging the laws in court and he competed for customers by offering more consistent and faster service at lower prices.

Vanderbilt grew up on Staten Island, off the coast of New York when New York City was smaller and less important than Philadelphia. He got into the family business young, ferrying people to and from the island. One of his first insights was to run his ferries according to a set schedule instead of the common practice of holding the boats at the pier for a threshold of passengers before setting sail. Vanderbilt gave the customer more control of their time, and he became known for regular, consistent service.

He took an active interest in the technical design of his boats to gain tactical advantages. For instance, because of a particular shallow channel at Raritan, all ferries needed to shuttle passengers by scow to the New Brunswick pier. The ferries ran aground if they tried to dock. To solve this key problem, Vanderbilt lengthened his boat to reduce its draft, enabling it to dock at the pier regardless of the tide's height. His competitors followed, as he knew they would, but a pattern of-leadership began and Vanderbilt became known as being one step ahead of the rest.

Vanderbilt grew his business by investing in partners who had access to technology that he did not. He bought shares of other boats and managed his partners' boats when it was beneficial to him. For instance, he learned the intricacies of steam by running Thomas Gibbons' boat, the first steamboat in America. As he kept his sailing boats operating, he expanded into steam building his technical knowledge as he went along. In addition, his partnership with Gibbons, who was a very good attorney, gave Vanderbilt the winning legal strategy in Washington to break the monopoly.

What Is Your Company Really Worth?

There are several paths a business owner can take when it comes to transitioning ownership. For example, an owner may sell to a strategic buyer (competitor), to a financial buyer (private equity firm or employee stock ownership plan) or to the company's management team (management buyout). The owner may also decide that a full or partial sale is several years in the future, but is interested in exploring gift and estate tax planning strategies or buying out another owner.

Whether a business owner is selling all or a portion of the company or engaging in a transaction that requires a valuation, knowing what the company is worth is critical. Obtaining a business valuation, or appraisal of the company's worth, will give the owner a competitive edge. This is because valuation is the heart of business transactions and corporate decisions. By going through the valuation process, an owner will come to understand the drivers that positively and negatively impact value. Armed with a valuation, an owner can make intelligent business decisions.

Key Value Drivers

Business owners should know the value of their business and what factors drive value. Most business owners understand that private businesses are typically priced as a multiple of earnings before interest, taxes, depreciation and amortization ("EBITDA"). EBITDA serves as a proxy for cash flow, the lifeblood of any business. Companies with higher growth potential and greater free cash flow (discretionary cash flow available to owners) typically command higher multiples of EBITDA.

Generally, multiples increase as the company's size increases. In other words, a company with $20 million in revenue and $2 million in EBITDA will likely be valued at a greater multiple than a company with $10 million in revenue and $1 million in EBITDA.

In addition to a company's size, there are internal and external factors that affect value. External drivers include market conditions such as the range of multiples that publicly-traded companies in the same or similar line of business command. Lending conditions, industry specific factors and government regulation are also examples of external market conditions that may positively or negatively impact value. A business owner typically has little to no control over the market conditions that affect value, but does have control over the internal value drivers.

Internal value drivers include the company's margins, management team depth and experience, customer concentration, business plans and growth strategies. Generally,

companies with experienced and deep management teams and solid growth command higher valuations.

The aforementioned key value drivers are a few of the factors that impact valuations. It has often been said that valuation is an art and a science, and business owners should, at the very least, have a basic understanding of the theory and application of business valuation.

The Valuation Process

The first step in the valuation process is scoping the engagement. This critical first step outlines various administrative issues such as identifying the goals and objectives of the business owner, the valuation process and the standard of value to be employed in the valuation. Business owners should recognize that like beauty, value is in the eye of the beholder. That is, the same business interest may have a materially different value depending on the standard of value assumed in the valuation. Just a few of the various standards of value are listed below:

Fair Market Value

Fair Value

Investment Value

Use Value

Book Value

The most common standards of value are fair market, fair value and investment value. The standard of value applied in the valuation is specific to the goals and objectives of the business owner and should be discussed at the outset of the engagement process, prior to conducting any valuation analysis. In certain circumstances such as selling to an ESOP or for gift and estate tax reporting, the standard of value is mandated by law. In those instances, if the business owner desires to sell shares to the ESOP or gift shares to family members, trusts or to charity, the appropriate standard of value is fair market value, which is the price between a willing buyer and seller, with each having reasonable knowledge of all relevant facts and neither under compulsion to buy or sell.

Once the valuation assignment is scoped out, the valuator will begin the second step which is the collection of data. During this phase, the valuator will conduct initial due diligence which includes, among other things, the collection of financial data, background and history of the enterprise, budgets, customer lists, business plans, and other important documents.

Step three is a continuation of the second step, with the difference being that step three is far more detailed as the valuator actively engages in detailed discussions with the business owner and dives deep into the inner workings of the business. This step usually includes an on-site due diligence meeting with the business owner and/or key members of the management team.

After the valuation analyst conducts in-depth due diligence, he or she begins step four, building the valuation models. In conducting the valuation portion of the analysis and developing the concluded work product, the valuation analyst typically considers various valuation approaches deemed to be appropriate in estimating the value of the company. The generally accepted approaches and methods may include:

Income Approach - Discounted Cash Flow Method - Analyzes the company's forecasted cash flow stream, estimates its future economic returns and "converts" those returns into a value estimate.

Market Approach - Guideline Publicly Traded Company Method - The guideline publicly traded company method looks to the market pricing multiples of comparable companies in the industry that are adjusted against the earnings of the subject company.

Step five in the valuation process entails reviewing preliminary schedules with the business owner. Depending on the valuation assignment and the terms and conditions outlined in the engagement letter, the preliminary schedules may or may not communicate all of the assumptions and value conclusions. This may be to protect independence, but in all cases this serves as a quality-control measure.

Step six is when the valuation analyst formally prepares the report and ultimate deliverables to the client. Step seven is the formal presentation to the client, which typically includes an oral presentation of the report and detailed explanation of the conclusions reached.

Parting Thoughts

It is never too early to start planning the transition of a business. Ideally, business owners should discuss their goals and options with their financial advisors years before any ownership transition transaction. There are usually complex issues to address, such as tax implications, management succession and owner's legacy. Business owners should understand the key value drivers and engage in active discussions with their financial advisors to implement a strategy to meet their goals.

The One Thing Successful Businesses Do To Guarantee Success?

The long way around... please be patient...

When I first thought of writing a book... any book... the first thing I thought of was creating a goldmine. You know the one... best selling author, on the talk-show circuit, speaking engagements, movie deal... nice thoughts... LOL!

When I started writing, all I thought of was finding a way of creating a real goldmine, one that everyone could easily and effortlessly create, but like most people in business, we are so busy that it took me a long time to understand what this 'goldmine' actually was... it was like chasing the 'Holy Grail'!

During my research...

Well... that's another story, now back to this one...

Years ago, I had read Russell Conwells, "Acres of Diamonds", and even though I thought I understood the principles and the context... I didn't. As it turns out, so many other business people also didn't get it!

So let's begin the journey.

Years ago I heard this tale about the founding of IBM.

Thomas J. Watson Snr., and his associates got together and brain-stormed the development of IBM. The goal was to determine what this company IBM would look like in 25 years. Once they achieved this, they started IBM with the attitude that they were already this 25-year-old enterprise, and acted as if the future was NOW.

What a concept!

Interestingly, this isn't how IBM started. It evolved from another company called the 'Computing Tabulated Recording Corporation' which Watson joined as an employee and eventually became its President. This company was later renamed IBM in the 1920's.

But reality or myth, the real message is very clear for all businesses... "Always start with the end in mind!" - Stephen Covey.

To that end let's get started in helping you find "Your Hidden Goldmine", so that you can prosper and enjoy the fruits of your labours, now and for a long time to come.

By the way, I need to ask you this question (one of the few that will be asked throughout the book), "Why are you in business?" Or perhaps a better question is "What is the purpose of your business?"

Not surprisingly, when I was asked this question a number of years ago by my good friend and mentor Iain (pronounced 'Iron') MacKenzie, I got it very wrong... and I'm a business consultant.

I say not surprisingly (although it surprised me at the time), because I have asked this question to clients, workshop participants and audiences over the years, and very, very few have actually got right.

Despite the answers we all give, ie. freedom, flexibility, making money, being able to steer one's own course and certainly being able to have control of our lives etc... we all pretty much miss the mark.

The answer is...

... to develop 'sustained or sustainable profitability'.

Because without sustainable profitability, we could be making lots of money in our businesses and still be going broke, just like many of the largest corporations around the world have found out in recent years.

Without sustainable profitability we very easily become slaves to our businesses, working 16 to 18 hour days, seven days a week. Eventually the idea of being a wage slave where we have our nights and our weekends free to do other things, starts to look good.

The reason I asked this question, is that by knowing the real answer we can now start to build a better business...

... by always starting, building and growing with the 'end in mind'.

So... spend some time on your business and work out what your business is about and where it is going, and keep in mind that the end, isn't and never was the end... it was always the beginning.

Remember... business is simple, NOT easy...

Leo Petrik invites you to "Get Connected and Get Successful", and build your business success by creating awesome FOCUS on your networking, social media, writing and public speaking skills, so that you can reap the rewards that you deserve.

Nine Years of Failure?

I have a friend who's basically a genius -- and a very successful man, in my books. Yet he's too hard on himself. This gentleman doesn't give himself enough credit for what he's done right. He's been a entrepreneur now for most of his adult life, but claims that for the first nine years he was an entrepreneur, he was a failure -- because he tried so many things and they didn't make any money. It was one failed attempt after another.

Let's get real here. That isn't failure. All you have to do is implement a small mind shift to realize that his "failures" were stepping stones on the way to success. As long as you learn something, no failure is a true failure. You only fail when you decide to give up.

To truly succeed, we have to be kind to ourselves. In fact, we have to be proud of ourselves -- and that includes all the times when things don't work out right. You've got to keep that little spark alive inside of you. Be willing to do whatever it takes to succeed, even as others sneer at you for being obsessed, or think you're crazy for thinking someone like you can become a millionaire. They'll be the first ones to tell you you're "just lucky" when you crack the millionaire code -- or to come to you with their hands out.

You see, it all starts with a dream. Those of us who've already made it have tried and failed at a lot of things, because that's how it works. We've learned, for example, that most multilevel marketing programs are scams -- but we've also learned which ones aren't, and how to tell the difference. The people involved with MLM are great. They're earnest and optimistic, kindred spirits in the battle for self determination. Some of them do succeed in MLM, but the great majority do not. Still, most of the entrepreneurs I know got their start in MLM. It was a boost up for them, like it was for me.

Most MLM doesn't work because most participants can't and won't sell. They hate selling. But if you're going to be successful at MLM, or at any business at all, you've got to start with a sincere, firm desire to sell. It's all about selling; never let anyone tell you otherwise.

Remember: the only true failure occurs when you just give up. And I run into those people all the time. They tell me, "Oh, I had a business once. But I had to close it." I've spoken to hundreds of people over the years who have said that. They admire those of us who've been self-employed for years, and they tried it, but it didn't work for them right away -- so they gave up. They went back to working for other people. Those people can say they're failures, because they gave up.

Maybe it just wasn't for them. They may not be failures in all aspects of their lives; in fact, they may be very successful otherwise. But they're not businesspeople. That's not intended as a judgment call or slur, just an observation. Some people are born employees, and there's nothing wrong with that. How could we entrepreneurs build our businesses without them?

Ben Franklin once pointed out, "Those things that hurt, instruct." We tend to learn our lessons the hard way. But it's still not failure until you quit for good. Just understand that, and if you haven't quit, feel good about yourself. You've got to. This idea that you'll perform at a higher level if you beat yourself up is ludicrous; it's not a good long-term strategy. The right way to excel is to stay focused on your goals, stay very excited about what you're trying to do, and be determined to make it -- to find a way, no matter what. Try a lot of different ideas. Pace yourself, but push yourself. Don't burn out. Like the Journey song says, be good to yourself. In the end, you're all you've got. Even when you're surrounded by all kinds of good people, in the end it's the relationship with yourself that matters.

Marketing guru Dan Kennedy once had a client in Phoenix, Arizona. The first time he walked into this client's office, he saw a bulletin board covered with business cards. Dan said, "Oh, I see you collect business cards, too," and the guy replied, "Nope, those are all my own cards from businesses I've had in the past." This guy had been involved in lots of different businesses. Some made a little money; some didn't. But he never quit, even when a business didn't work out. He found something else to get excited about, and eventually went on to make millions -- and then he retired.

Here's the thing: the average entrepreneur will try at least four or five different things before succeeding -- unless they give up. Sadly, you're never going to hear that statistic from the government. They only give you part of the story, telling you that 95% of new businesses fail within five years. Hearing that, why would anybody go into business for themselves? That statistic scares people to death, so they quit before they even begin. Why try if you're facing such miserable odds? They'd rather stay with the soul-killing little jobs they hate so much, where they feel like they're in prison every day, just marking time until they're finally released.

But that 95% failure rate may as well be a lie, because it hides the fact that most entrepreneurs have to try many different things before they finally find their one wild success story. And many of those businesses that no longer exist after five years? It's because they were profitably sold to someone else, folded into a larger enterprise, or deliberately closed so the owner could take part in a different opportunity. The statistics don't take any of that into account.

Ordinary people get rich every day. A great book came out in the 1990's called The Millionaire Next Door. Two college professors wanted to do a study of people who had a net worth of over a million dollars; they were going to find these people, interview them, get some of their greatest tips, tricks, and strategies, and reveal them. And frankly, it's easy to find people who have a net worth of over a million; it's public domain information. So they went to a city, set up in a nice hotel suite with caviar and champagne, and invited the local millionaires to visit.

It turned out the people who showed up weren't caviar and champagne people. They were beer and pretzels kind of people -- mostly just average small business owners. And I'm not talking high-tech businesses, either, but the Mom and Pop type (the Internet was barely off the ground at that time). They didn't live in fancy neighborhoods or drive new cars, for the most part. Read The Millionaire Next Door. It's instructive and funny. It turns out that most millionaires live in older neighborhoods, in houses they've paid off. They aren't flashy people. In fact, the professors found that the people that lived in flashy neighborhoods were mostly about six months away from being homeless. They were living beyond their means, so if they lost their jobs or something happened to them, they were in trouble.

Failure isn't failure until you give up. My friend who said that he'd failed for nine years -- no, he didn't fail. He tried a lot of things during those nine years. He learned all of the things that didn't work, and he was learning other things as he went along, too. Thomas Edison and his team supposedly tried over 1,000 different experiments before he perfected the light bulb. When asked, he said he didn't fail; he just found 1,000 ways that didn't work.

In his most famous speech, Winston Churchill got up in front of these kids at a college graduating class and basically said, "Never, never, never, ever give up." And then he sat back down. No one was expecting that, but it was utterly brilliant.

I subscribe to Forbes Magazine, and they have some great articles about people who are raking in the money. I once read about an entrepreneur who was 52 years old when he started to make his billions about ten years before. There was one sentence in that article that jumped out and hit me like a sledgehammer: "Push it until it breaks, fix it, then push it until it breaks again." That's a hell of a philosophy, especially coming from a billionaire. It resonates because of that, whereas it might not if spoken by someone less successful.

Success leaves clues. You've got to try a lot of different things. Look at Thomas Edison and the light bulb. Look at the story about Dan Kennedy's client with all the business cards. And remember my friend, the one who thought he had failed for nine years straight. Most of those people were surrounded by others who told them they didn't know what they were doing, that were wasting their time, that they were never going to make it big.

You're never going to please your naysayers, no matter what you do. They'll always be critical -- and that's fine. But they've never built a statue of a critic, have they? The heroes in this world aren't just sitting around criticizing other people. They're out there making it happen. They're out there doing it, every day. That's what you've got to do, too.

Learn from the things you try. Even mistakes aren't just mistakes -- they're ways you've discovered that don't work. You should always look for a better, faster, easier, simpler, more effective, more profitable way of doing things. By the time you find it, you'll have had a lot of experience, because you'll have tried a lot of different things, and that will be your secret for making all the money that you want and need.

All that money is out there, waiting for you. Be good to yourself. Just because you've tried things in the past and failed, that doesn't make you a failure; it makes you a typical entrepreneur. Keep trying. Keep failing. Eventually, you're going to hit it big.

Give Them What They Want!

I can't emphasize it enough: you have to sell people what they want, not what they need -- and certainly not what you want, or what you think they need. This is a mistake many well-meaning entrepreneurs make, but you can't afford to fall into this trap... or your business will fail.

Here's a good example of trying to sell people what you want: back in the days of computer bulletin board sites (just before the Internet), one woman had put together a BBS for people to call in to do a survey. She wasn't getting many calls. The problem was that she was trying to get people to call in regarding a subject that she wanted to get information on, not something they wanted to get involved in.

That's crucial: you've got to give people a subject they want to be involved in -- for example, the top things in the news today. Forget what you want, and definitely forget what you think people need. Your interests aren't necessarily theirs. Give the people what they want. Otherwise, your efforts will end in defeat... unless your wants and their wants just happen to coincide.

Just about every product or service has something within it that people want, but some products are much hotter than others. If you want to make the most money, try to find those products in the "hot spot." It may not be where you think it is, so look closely. I know a gentleman who owns a small manufacturing company, who struggled for years to get it off the ground. He told me that when he first got started, he didn't know very much about marketing or selling. He wrote a brochure for his product, and sent 400 of them out. He was so in love with his product that he honestly expected all 400 people to order it. He was shocked when he didn't get one single order -- and he learned a valuable lesson. You can come to love your product so much that you don't stop to realize that other people might not love it like you do-that in fact, they probably won't, unless you tell them why they should.

In order to really succeed, you have to hit the points that are most beneficial to the prospect. Tell them exactly how your product helps them. Always keep in mind the fact that the key motivators in marketing are health, wealth, and happiness. Wealth, of course, can be related to greed or making more money. Health has to do with longevity and living a more productive, rewarding life. Happiness is more of a state of mind, but it relates to pleasure; it can also relate to love or sex. The great offers incorporate one or more of these factors, if not all of them.

These are the major motivators in marketing, but you can plug in many, many motivators under them. The idea is to show people how they can achieve those things with your type of product. Also, remember the flip side of each motivator. The flip side of wealth is that you can sell people products that will prevent them from losing money. The flip side of health is that people want to avoid discomfort and pain. With happiness, the flip side is that they want to avoid unpleasant circumstances and situations. In this sense, marketing is always a two-sided coin.

Often, when inexperienced people think about ways to make money -- that is, when they start developing their plans on what they're going to do or sell -- they focus on ideas that are centered around what people need. But as writer Robert J. Ringer pints out, "If you have a business that sells people things they need, you might be able to make a nice living; but if you have a business that sells people something that they want, you can get rich."

All people are selfish and self-motivated. We really want what we want, while we often turn our backs on what we need. Some of the basic needs, of course, we have to have: food, clothing, and shelter, for example. Otherwise, most people are motivated by what they want, not by what's necessarily good for them or by what they really need. Never, ever forget that while writing marketing copy or otherwise selling your products and services.

Starting a Distribution Business

To start with a distribution business one requires business sharpness and intricate planning. Besides sorting out the funds, the interested organizations also have to sort out the list of organizations that are prepared to promote the offered item. This article discusses a couple of things to be considered by the individuals who wish to begin their distribution business.

1. Partnering or Collaborating with the Manufacturer

This could be attained just after the individual or entity has chosen the products and services that they want to distribute to the identified target market. Once the product or service or the organization is identified which could be both local or global, the distribution organization will then need to research about the target market they want to work with. The accessibility of the items that the organization wants to distribute will be managed by collaborating or partnering with the manufacturer.

2. Always Remember the Power of Thorough Research

When you want to start with a distribution business, you should know all the details of the product or service and the market you are going to cater. This includes researching about the available resources that you have, the competitors - as in other distributors in the industry, and product needs in the market. It also includes researching about other factors such as economy and government regulations.

3. Always Prepare a Business Plan

Same as any other organization, the business plan for a distribution association should be made effectively which will serve as the spine of the organization. This plan should include the objectives, vision, and short term and long term goals of the business. These all will help in utilizing the accessible assets towards the corporate objectives. If the distribution organization obliges financing, this plan will be submitted for evaluation to a financial institute.

4. Make the Distribution Organization official

One of the most important things to do is to achieve the license and registration for the new distribution organization. The holders should additionally know about answers about the state's legislating laws relating to the taxation framework and commencement of new business.

5. Company Location

The size and space needed by a distribution organization will be depended on the stock required and the size of inventory. It is insightful not to invest a lot at the same time in getting a spacious place as the organization can be shifted anywhere once the business begins prospering and product demand increases.

At last, like any other business, a distribution organization must evaluate the framework for financing their business. While numerous organizations have enough money available, others have a tendency to look for customary loans. So, you should decide how you will be funding money.

What It Really Takes to Triple Your Income

I was a sponsor at an event the other day and the most interesting thing happened. I was talking to the crowd (about 60 people), and had them cheering about the possibility of tripling their business. What was interesting was only a handful of people came over to me afterward. I've noticed how this is actually a form of sabotage and keeps business owners stuck! Don't be that business owner.

There could have been several reasons why not a lot of people came over. Maybe they just weren't that into me, which is okay. Not everyone will be. They may not have believed it was possible. Which is too bad, because it is. I've done it and my clients have done it. They were more likely afraid - afraid of the possibility that this could be true; that they can create the income and life they want. Simultaneously thinking - who am I to do that? Who am I to be that type of business owner? Who are you not to be??!! The worst part is that this line of thinking is unconscious for many people. They aren't aware of those thoughts and therefore can't begin to seek a solution to resolve them.

Regardless of the reason, they made a decision. A decision to stay where they were. To not take action on a resource being presented to them that could potentially change their life. Interesting. You see, having the results you want in your business has everything to do with taking action. Action to move forward even when you're scared and you don't know how you're going to do something. Action when you're not feeling at your best. Action when you're tired. All of those emotions you're experiencing are designed to keep you stuck, to keep you playing small. They're based on past experiences and the beliefs you've formed as result. They're not true (mainly ego-based), and don't come anywhere close to capturing your true essence. What you're truly capable of. When you can get rid of the weeds covering up the beautiful flower that you are, then you can make it happen. You can step into your true brilliance and literally be limitless. Have all of the abundance, success and love you desire. It is possible. BUT you have to make the decision. The decision to do whatever it takes. To take action on ideas and opportunities that are going to bring you the solutions you are looking for. It is going to take work to get through all of the weeds standing in your way, but once you move past them and let your inner flower flourish, it will be worth it. Well worth it. What are you going to do today? Tackle one weed every day, and keep moving forward. Keep your eye on the flower.

Chris has a unique ability to identify the obstacles that keep business owners stuck - that they often aren't even aware of! She helps people go deep to shift their blocks, and then shows them how to use their own resources to make different decisions and create lasting change. Chris is a wiz at helping business owners get results fast - often during their first call!

Fantasy Football - A Lesson In Monetizing Anything

Attention entrepreneurial spirits - the following would have seemed as fictional as Star Wars to our grandfathers, not to mention Vince Lombardi. However, it's all true and there's a valuable lesson in this - you can monetize anything!

Congratulations to the NFL. They've found a way to keep a huge fan base despite the myriad off the field issues they seem to shrug off weekly. The referee strike of 2012 and the inept replacements? Forget it - that didn't even register on the NFL fan's "List of Things to Care About. " How could it? This is a league that has recently seen popular players either indicted or found guilty of domestic violence, rape, child abuse, and murder. Nice guys, huh? In short, there is NOTHING that would keep us from tuning in each Thursday, Sunday, and Monday (in my lifetime, I am sure there will be a game on every night of the week). TV ratings suggest this monster really IS too big to fail.

So why do we do it? It's not because we care about who wins or loses the actual game. Some of us do, but we're now in the minority. No, the wins and losses are not even the second reason. Sports gambling, though illegal in most states, WAS what kept the NFL atop the list for sports fans. People gamble nearly $10 billion on the Super Bowl alone. Imagine what a full season brings in. The joke used to be something like "Daddy's favorite team is the Dolphins and he wants them to win by less than 4 points." However, because gambling has such a negative connotation in society, people don't talk about it much, and certainly not when they lose.

The thing that will help the NFL remain the king of the hill indefinitely turns out to be the photo negative of gambling. It's Fantasy Football, and it's nearly reached the point where we can remove the word "Fantasy" from the name. It's quite real, and it's here to stay. Gambling is illegal because it's considered a "game of chance." Wagering on Fantasy Football is legal because it is considered a "game of skill" (don't ask me who decides these things, but it's true). Gambling is ugly because it can ruin people's lives when they lose. Fantasy Football is innocent and fun, even though the same amount of money is spent on participating, and yes, half of it is lost. With gambling, there is only money. With Fantasy Football, there is money, but also funny team names, trophies, and bragging rights. It's market norms versus social norms, once again. Unless you live in one of the few states where gambling is legal, it takes connections to people with connections to partake. Participating in Fantasy Football only requires an internet connection and as little as a $1 investment.

Fantasy Football's roots can be traced back to the 1960's, but that was a different world. It wasn't until the last 10 years, thanks entirely to the internet, that it took flight and became a craze... and a SERIOUS business. About 40 million Americans are playing some form of Fantasy Football this year, and they are spending approximately $2 billion to do so, but that's just the beginning. When you consider the entire industry, the empire that is Fantasy Football is estimated to be worth more than $50 billion! And it's going to continue to grow. Everybody's doin' it. I play, my friends play. Heck, even NFL players play! Just this week, one NFL player tweeted "I'm probably going to lose my fantasy football matchup this week cause (Adrian Peterson) can't play Sunday for disciplining his child... " Really.

While you won't hear announcers talk about point spreads, they frequently refer to Fantasy statistics. The crawl at the bottom of the TV screen is now devoted to the new national pastime. As big as the NFL has become, it recognizes that it NEEDS the Fantasy Football element to keep its brand healthy, so they go out of their way to promote it. There are magazines, books, radio shows, and TV shows devoted to it and there is even a TV series based on a group of friends tied together by their Fantasy Football league. Only in America!

On-line Fantasy Football sites are raking in money, capitalizing on the popularity of this "game of skill." One of the most popular sites boasts that it pays out more than $10 million per week. Considering they are cleverly charging 10% on every dollar to facilitate the thousands of contests among strangers, it's easy to calculate how a company like this can quickly become worth millions almost overnight. And it's not just NFL football. Most of these sites provide the forum for "Fantasy" baseball, hockey, basketball, golf, and the major college sports.

The lesson in all of this is simple - If you build the site, they will come, and they will come with dollars to spend. Find the product that people are crazy about and make it available to them on-line, in any form you can. If you don't have the product itself, write a book about it. If you don't want to write a book, write an article and sell it. Position yourself as an "expert" (whoever questions that anyway), and you'll command a price.

Now, if you'll excuse me. It's nearly game time and I need to root for my kicker's offense to move the ball down the field to the 30 and then get stopped. Strange thing, this Fantasy Football.

Increase Your Sales And Profits Through Price Discrimination

If you are a manufacturer, you have the opportunity to choose how your products are delivered to the market. Is selling directly to the consumer the best approach? Do distributors and/or dealers provide you with greater market access? Is a combined approach the best solution for YOUR Company? There are many considerations when choosing the most beneficial channel, and a lot of manufacturers utilize a blend of the above options because they sell into varied market segments. A common mistake, though, is that the manufacturer does not know the target consumer group(s) well enough to know whether or not they should implement a Price Discrimination strategy. The result is that they do not realize as much sales revenue and gross profit as they otherwise could have. Money is left on the table - a lot of money.

Price Discrimination can be loosely defined as selling products/services at different prices in different markets. Companies use a Price Discrimination strategy to take advantage of the fact that there is a measurable willingness to pay more by some groups of customers. This strategy efficiently skims off the consumer's willingness to pay, and it ALWAYS leads to more profits if the marketplace is understood.

Price discrimination comes in several forms and assumes different names. We are all exposed to it daily, in one form or another. From grocery coupons to airfare classes (first, business, coach) to choices at the gas pump, there are prices set based on our willingness to pay. Another common example is known as "Bundling", where a manufacturer will pair two or more items together and sell the bundle at a price somewhat less than the sum of the individually priced items. They do this because they realize that some consumers value the first component more than the second, while others will value the second component more than the first. Regardless, the consumers will pay what they perceive as a discounted price for the bundle. They may not have as much utility for the lesser valued product, but the discounted price wins out and the manufacturer is quite pleased with the higher sell price.

For a Price Discrimination strategy to work, it is absolutely necessary that the manufacturer understands their target market segments and their respective price elasticity of demand. That is, are there market segments that will have a willingness to pay more than others, and if so, how much more? Without this understanding, a Price Discrimination strategy will not work.

Where this gets interesting for the manufacturer is in the scenario where their product is being sold into two or more distinct market segments. For one market segment (A), the manufacturer may choose to sell through distribution, using a discount structure. Let's assume that the distributor receives a 50% discount from the manufacturer, and they pay $50 for a $100 list price item. In our example, the distributor resells the product to the consumer at a price that is 10% less than the list price, or $90. In this scenario, the manufacturer realizes a respectable gross profit (let's say $25), the distributor makes a gross profit of $40, and the customer understands that he received a 10% discount off of the list price.

The same manufacturer has identified another market segment (B) that is unique enough from (A) in that there is no conflict with their distribution channel. Not only can the manufacturer choose to sell directly to the consumers in (B) at the same $90 consumer price and realize a much healthier gross profit of $65, but the manufacturer can use a different list price all together. Let's say that the (B) market understands the list price for the item to be $120. If the (B) consumer is content with the same "10% discount" off of this elevated list price and pays $108, now the manufacturer has realized a gross profit of $83.

These opportunities absolutely exist, yet so many manufacturers fail to capitalize on these highly profitable scenarios. The reason for this is that they fail to understand the differences in the markets, and they generally use the same list price from market to market. A comprehensive market analysis will highlight these opportunities, and the time and money invested in having that market analysis conducted has a very significant ROI for the manufacturer.