How to Increase Your Profits Today

In business we are all striving to make as much of a profit as we can, this is a no brainer idea that we all have, more money is always great! Over time many business owners tend to lose sight of the best ways to increase their profits, they get stuck in a rut and forget that as times change so should their strategies.

Take a look at everything you do in your business today in order to reach your expected profit goal, make a list of all the aspects that are not working quite as well as they use to, if at all. Then discard of these aspects, if they are not making you money why continue to do them?

Get out there in the business world and see what your competitors are up to. Take a look at their set ups, their customer base, their products, and services. You just may find something they are using to increase their profits that you never would have thought of before for your own company.

Sit down and think about the overall meaningful goals that you would like your business to reach. Most businesses, even those that are successful, are not setting meaningful goals, instead they just go about their business on a day to day basis. This is working for them, but in the mean time if they had future goals set on what their expectations were for that business they may find it easier to work their business knowing what they want to accomplish ahead of time. It gives you something to strive for, something to look forward to in your future.

Every small business owner makes decisions about their business. For example, they decide where to market, how to market, how much money to spend on marketing and sales, what types of products and services to market and sell, etc. These decisions are important – but they are not strategy. These day-to-day decisions are like the moves we make in a game of chess. Knowing how to make a move lets you play the game. It takes strategy and execution to win.

Low Cost Startups

If you are launching a startup company, saving money early on in the process gives your business a better chance of survival. Especially in this economy, money is tight and startups can’t always count on outside venture funding or even a loan from a bank. Here are some money saving tips for startups:

• Rent don’t buy. Obviously renting your office space helps save money early on. However, also consider renting office supplies, equipment and furniture to save some dough.
• Hire with care. Nothing drains money like too many employees. Early on, it’s better to have too few employees than too many.
• Find your niche. Many startups waste money by painting with too large of a brush. Instead, find your niche and use your money to attack that specific niche.
• Limit travel. Business travel is fine once you have a business that is bringing in money. Early on, though, it’s best to avoid travel if at all possible.

Fresh Money for Startups in Down Times.

A lot of people have been saying lately that the worst is behind us. That the good and positive aspects of the recession are finally arriving. But Truth is that it is not impacting the majority of people as of yet. New business owners and young entrepreneurs are having problems to find the necessary funds for their ideas and businesses. Where to look for then?

• Friends and Family. If there is a family member or friend who has available and enough funds to lend, that may be the best place to go right now. However, be honest about the upside and downside to your startup idea. The risks and probabilities. Don’t ruin a relationship!
• A Bank. Although credit is still tight, some banks are being pressured to release their grip on money. Don’t shoot down this avenue before you give it a try.
• Government Agencies. Most local, state and national governments are desperate for jobs. And since small businesses create millions of jobs each year, now is a good time to unveil your startup idea to a government agency.
• Yourself. Perhaps the best idea is to rely on yourself. Find a way to bring more money in and turn around and pour that money into your startup.

A Business Partnership?

You will most likely spend more time with your business partners than with anyone else - even your family. And it will be a relationship that can be even more complicated to get out of than a marriage. Who you choose to be business partners with should be given as much consideration in a deal as what products you make or what markets you enter into.

Dysfunctional partnerships are a major source of business failure. They suck energy and time away from building the business. They can often lead to the break-up of perfectly good businesses.

That being said, I think that if I have to pick one element as the most important it would be that you and your partner(s) share the same values, aspirations, and vision for the new venture. This requires a careful and thoughtful discussion of critical business issues BEFORE the business is ever launched.

Work with your attorney to create a shareholder agreement before you officially incorporate. Just as marriages can fall apart on the honeymoon, business partnerships can fall apart before the first sale is ever made.

Here is just a sample of some of the issues you should discuss with potential business partners:

• Do you share the same vision for the business?
• Do you share the same aspirations for the business in terms of its size?
• Are you all going to make the same level of commitment of time to the business?
• What are your work habits and work ethic?
• How much time off to you plan to take each day, each week, each year?
• How much money will you put into the business? And how much do you expect to get out of it?
• Who will be the President of the company? What roles will the other partners play?
• How strong is everyone's credit rating? Can all partners help to guarantee a loan, if necessary?
• What if one of you gets married and the new spouse gets a job offer in another city? Would you move away?
• How will employees, customers, suppliers, etc. all be treated?

Business partnerships can be a successful experience for everyone involved. But it takes open and honest communication and careful planning.

Local Roots

Creating your Business Community Base.

An article by Lisa Barone got me to reevaluate the importance of good networking, good neighbouring and good community relationships. It is not just a matter of being nice, polite and well educated for the sake of others, this is more about taking the time to build your supporter base which will become your natural referals as time goes by. You need to become active, an important part of your community.

How do you do this? With 4 tips like the following ones I am listing, or several related that will start popping into your head as you read.

1. Teach a local class: For one year now, I am teaching Business 101 at the local campus of my Alma Mater College. This is not only because I love teaching, but also because it let's me

keep in contact with college students that will grow up and graduate and have me as a referral. I also teach another course (Negotiation Skills) at another college. In this way, I have an audience, they know I know. With some luck they will come back to me for an advise, or to seek my help in the future. Besides, I get lots of free training for myself from the institution.

2. Join the Local Chamber of Commerce. Ok, in Mexico this sounds plainly crazy, but believe me it is worth the effort. Even when we know that Chambers are good political training fields for wannabes, and that they fumble and may seem somehow disorganised. There are good points in favour of this advise. You get to know people, you learn early of some commercial events, you are "there". You see them, they see you.

3. Start a Meetup. And make them recurrent. Organising this kind of activities doesn't have to be forcefully business related. Create an environment in which you can get together with some of the “native population” and just hang around comfortably. It can be industry related, or a parents reunion, or a group for environment discussions, whatever. You can do it formal or informal. It's your choice. I used to get together with 2 or 3 of my students for “review” coffee on Tuesdays. Today, we are gathering 14 persons in 2 tables. And we not only discuss class lessons, but every other relevant business topic that we can think of. The coffee shop should thank me, i guess. Bonus tip: avoid alcohol.

4. Use Local Vendors. You are a local vendor and they are local vendors. From groceries to Real State, from Car dealers to handcrafts sellers. The idea is to prefer and consume local products and services when available, than those from other towns or from international distribution. In this way you are showing local businesses that you support them, and it is more probable that they will support you, or at least refer clients towards you. And also, while

consuming their products and services, you should be creating long term relationships, for future business transactions. Synergy is the word.

All this is true for those living in small towns or communities. Now, for those who live in medium or big cities, how do these tips apply? Well, exactly the same, you just have to find your scale and the organisations that are near you.

Now go out and do something for you neighbours. You can bet they will do something in return for you.

www.skillsa.com

Quality Value Service

An article published by Jaclyn on "business opportunities" blog made me think about this. Everything these days, every single business, organisation or company has Quality, Value and Service as the front words of their core messages to clients. Why they don't work?

Because, when everybody uses them as sales words for catchy phrases, then they work for NOBODY. They are uselss, they just don't work anymore.

Try to think about it. What is your unique sales proposal? Does it address the needs of customers. You must not promote Quality, Value and Service as your distinguishing charachteristics. Your clients today assume you have them, if you promote them it will look as if you have recently discovered these 3 concepts exist.

And truth is, you have included Quality, Value and Service in your products since you started business. Haven't you?

Juan E Sandoval

www.skillsa.com

The Business Plan

I wont get tired of saying it. The Business Plan is not only a required tool by banks and investors, it is also your roadmap for starting a new business and for continuing an exisisting one. 

Few consultants say it, maybe they think it's a well kept secret: A company that keeps doing, reviewing and improving their annual or six-month Business Plan, has 50% of its Strategic Plan done.

So, don't think it is only a nice document with a glossy cover. It could save your semester's income. You already have one? Review it. 

You don't have one? Do it. NOW.