Have you ever missed out on an opportunity because of something you didn't properly understand? What did it cost you? Maybe a potential client, or a business partnership?
What would you do differently, if you got a second chance?
Entrepreneurs miss all kinds of opportunities. They work longer hours to make ends meet, and miss out on time with their families. They work long hours prospecting and fulfilling clients, only to lose other clients, which forces them to work twice as hard just to tread water.
What’s going on? Why is lasting success so hard to achieve?
Many people fail to understand how business really works, and pay a heavy price for it:
- Clients leave, revenue falls and expenses rise.
- Team members lose focus, and become confused about their roles and expectations.
- The social fabric of a business deteriorates, from a lack of motivation among its members.
When we don’t understand how something works, the worst thing we can do is keep moving forward. The definition of insanity is doing the same thing over and over, expecting a different result.
Business savvy is "make-or-break" for entrepreneurs, especially the higher you climb. Like professional sports, "winners" in business usually make the fewest errors. But you have to learn from mistakes if you want to make fewer of them!
To find a community of value-driven professionals who can help you make fewer mistakes, visit our website or apply to join one of our mastermind groups online.
The “Secret Sauce”
When you see a business grow every year, it's a fair bet there's a value-driven professional behind the wheel!
When your business approaches problem-solving from a position of financial strength, it's free to deliver performance. You can invest time and resources to solve a problem for the market, without worrying about how you'll pay the bills.
Now, maybe you’re reading this and thinking, “Big A, everything you’re writing feels like it’s just for me! But how do I start making better decisions? I don’t want to repeat this year over again; I want to grow and get better every year!”
I understand. It’s painful when you fail to make progress. The lack of it leads to a loss of confidence. The good news is there are things you can start today that help you learn to make better decisions. Through faith, understanding, and an encouraging group of people who support you, you can begin to get better results for all your hard work.
In his book Business Made Simple, author Donald Miller says you can get better results for all your hard work.
5 Components Of A Value-Driven Business
According to Miller, a solid grip on these five pillars gives entrepreneurs freedom to benefit the marketplace in a meaningful way. Your business' reputation for character and effectiveness are key to making it grow, year after year.
Overhead ensures that all your team members are happy, healthy, and your business runs smoothly. These expenses are important because a healthy business serves customers well and earns a profit when its people are well-funded and have what they need to perform.
- Medical Benefits
- Rent and utilities paid
- Office Supplies
Overhead doesn't usually include your budget for marketing. It can be tricky to measure your 'return' on overhead, but remember - you couldn't do what you do alone, without an organized and well-paid team. Like anything else, you don't want to spend “too much” or “too little.” The value-driven way to do this is evaluate your overhead expenses. If someone or something is a 'profit center' ... invest in it appropriately. If it's a 'money pit' - consider eliminating it.
2. Products & Services
The same principle applies when it comes to a solid product. If it isn’t worthwhile, customers won't buy it and the business will suffer.
For a product to be ready for the market, it must be:
- High profit with low volume, or a smaller profit with higher volume.
Tesla = High profit with low volume. McDonald's Fries = Smaller profit, higher volume.
- The product must be something the marketplace actually wants.
As you create products, take time to analyze them before selling. Is there a demand? Are they profitable?
Most businesses spend a ton of time making a good product, and forget to set up a marketing campaign. Miss this step, and nobody will know you exist.
A successful marketing strategy provides:
- Clarity on how you market your product and make sales.
- Research that confirms customers want the product you offer.
It’s important to find out if people want what you’re selling. That way, when you launch a product, you know your chances of succeeding.
When your product is ready, you need a step-by-step plan for customers to make purchases and keep track of leads. Even if you have a great sales staff, it won’t matter if you don’t have a process for customers to follow.
The steps for a sales plan are:
- Prospect among target customers
- Qualify interested prospects for your product or service
- Set appointments for presentation
- Conduct sales interviews
- Close sales and onboard clients
Step-by-step plans allow you to learn the customer’s needs and enter into meaningful relationships. Less confusion leads to fewer mistakes, which lead to more sales.
Value-driven professionals know how important it is to watch cash flow. If you don’t pay attention to it, your business can get into real financial trouble, quickly. It’s important to ask how decisions affect cash flow..
Here are some questions to ask:
- “How much cash do I need to create this product before we launch it?”
- “When will we start making money on this product?”
- “Does losing money on this product make sales and profits elsewhere? If so, how much?”
Lack of understanding your cash flow has a way of "leaking" into your conversations, and it sends bad signals to others on your behalf. You'll rarely find a good decision that doesn't take into account its own effect on generating more cash flow in the business.
Value-driven professionals know how to seize opportunities and multiply income in their businesses. Learn to slow down, analyze how business works and put first things first. Through discipline and patience, you’ll be equipped to handle many more opportunities!
Surround yourself with other value-driven professionals to help you put more decisions in the "Win" column today. Reach out to us at our website and apply to join one of our mastermind groups online.