When you start a new small business it is easy to get confused as to what you should be initially focusing on in order to give your business the best chance of prospering. Statistics tell us that 80% of new small businesses fail in the first 12 months.
Statistics also tell us that 80% of those who survive the first year don't survive the second year. Here's a system to ensure that you are one of the businesses that not only survives but also prospers.
The Best Strategy For Small Business Startups.
Step 1: Generate positive cash flow at an acceptable net profit.
Step 2: Learn as you go and mould your activities into a functional, repeatable system to continue producing positive cash flow with acceptable profits.
Step 3: Further improve your system over time so that your cash flow and profits increase and your time commitment and stress levels decrease.
Achieving Step 1
In order to achieve Step 1 you have 5 things you must accomplish.
#1. Having products (or services) to sell.
#2. Setting a price that is high enough to provide you with an acceptable net profit and low enough so that your market will accept the price enthusiastically enough to make a quick decision to buy.
#3. Getting appropriate people to sell to. These people are generally called your prospects.
By appropriate people I mean people who are highly likely to buy your product NOW if put in front of the right salesperson. They must have the desire to buy now and financial means to buy now.
#4. Getting a salesperson or salespeople who really can sell your products (as opposed to someone who claims that they will be able to sell your products).
#5. Getting your salesperson (or salespeople) in front of your prospects as often as possible.
Once you have a product, have it priced, have identified your potential prospects and know who is going to sell your products then it is time to apply the golden rule of small business startups.
The Golden Rule of Small Business Startups
"Focus as much of your energy and resources as possible on getting appropriate prospects in front of a good salesperson."
That's it. Forget everything else. If you are making profitable sales then you can tidy up everything else as you go. If you don't have profitable sales then all the theories and planning and strategies are useless because you're going broke!!!
Once you have a steady stream of profitable sales then keep an eye out for my articles on how to achieve steps 2 & 3. Until then concentrate all your efforts on the Golden Rule of Small Business Start Ups. Everything else is a distraction and a waste of time at this point in your business.
When you are thinking of doing anything in your business, (whether it be holding a meeting, doing a strategy session, or whatever) ask yourself this question:-
Is this going to put appropriate prospects in front of a good salesperson as soon as possible?
If the answer is "YES" then do it. If the answer is "NO" then don't do it. It's that simple.
About the Author: James Delrojo would like to help you by giving you his ebook "Unleash the Success Power of Your Mind" (valued at $27) completely FREE. Go to http://www.YourSuccessMind.com
