Successful Startup 101 Magazine - Veteran's Issue 2014

by Tabitha Naylor

  Have you ever heard the phrase "detach from the outcome"? It’s a tenet of Eastern religions. For many years it was a concept that I found totally unfathomable. After all, sales itself is about outcomes. Our income is at risk. We need to get the business.

  But over the years, I’ve learned the wisdom of that message. In fact, the more I wanted to close a sale (or should I say – needed to close a sale) the less likely I was to get it.

  Why? Because my focus was on me, not my prospect. And, whenever you need something that much, you push too hard for it. You short-circuit the process and go for the close before the time is right and your prospect is ready.

  Do they feel it? You bet. They lean back, put obstacles in your path and don’t return your calls or respond to your emails. Then, you get desperate and your neediness shows – and you become even less desirable to do business with. All because you're so eager to get the sale.

  I’ve learned that the only cure is to detach from the outcome.

  To be willing to say to yourself, “I know I need this sale, but I’m going to put that aside and focus on helping my prospect make a good decision.” Sometimes, you have to say it over and over to yourself.

  When you stop focusing on closing a sale, everything changes because your prospect’s needs become your driving force.  And, paradoxically, that’s the best way to get what you want. Go figure.

  About the Author

  Jill Konrath is an internationally recognized sales expert, keynote speaker and author of three bestselling books: Agile Selling, Selling to Big Companies and SNAP Selling. To accelerate your sales, check out all the free resources on her website: https://www.jillkonrath.com/sales-resources 

  * This post originally appeared on Jill Konrath’s website and is republished here with permission. 

  10 Reasons Why Small Businesses Fail

  By Jared Mumford

  Running a small business is an exciting venture that can lead to the financial freedom simple employees work their whole lives to attain. However, with the great rewards come great risks that can lead us small business owners to financial failures.

  I have witnessed friends and family members pursue their own entrepreneurial dreams only to see them shattered not a year into their short-lived careers, mostly due to a number of fatal but avoidable reasons. Let’s take a look at some of them.

  # 1. No Business Plan

  Knowing what your business will be and how you will sell your products or services are not enough to keep it running. You need to have a business plan written out, including (but not limited to) the following:

  * your short and long term goals;

  * the business’ finances for labor, production equipment, etc.;

  * your target markets; and

  * marketing.

  Having one which outlines every detail will guide your business to the right path.

  # 2. Wrong Reasons

  Starting a small business simply because you want to be rich can lead to an unfulfilling experience, where you will always be looking for schemes that can bring you fortune. Before you do, think first about your own interests and passions. Do you believe you can give something of value to people at large? Are you driven enough to overcome the many inevitable obstacles an entrepreneur will face?

  # 3. Inefficient Management

  Small business entrepreneurs usually come into their industries with little to no knowledge of handling the multiple facets of a business such as financial management, employee relations, advertising and other essential responsibilities. Educate yourself through short business and finance courses, or hire managers who have expertise in the fields where you are lacking.

  # 4. Lack of Capital

  Some entrepreneurs think they will be making profits for their beginning operation cycles, spending most (if not all) of their resources immediately, only to find out later that they will not have enough funds to start the succeeding cycle/s. Consider every possible cost (overhead, production, equipment, etc.) and save enough money that can be used for at least one fiscal year despite poor sales.

  # 5. Bad Location

  It is not enough to set up a store at a location with high human traffic or with a very cheap lease. Opening a restaurant near a school campus can seem like a good idea, but don’t expect too many customers if the food is expensive and there are much cheaper alternatives around.

  You need to consider your target market and their habits, as well as the direct competition in the area. Don’t be afraid of spending on prime location, as the increased rate of customers coming into your store and making a purchase will make up for the initial cost.

  # 6. No Online Presence

  In this age of high-speed information, people expect to find just about everything on the Internet with their computers and mobile devices. Not having a website or at least a social media page will render your business virtually invisible to a great majority of the world’s population.

  You can hire professionals to create a website for you or put up the website yourself. Make accounts for your business on Facebook, Twitter and other leading social media platforms where your target market can usually be found.

  # 7. Uncontrolled Growth

  Growth is a good thing unless it is left unchecked and your generated revenue can’t keep up with the expansion. If your business experiences great success, do not be overeager to spend your profits by immediately buying more equipment or opening up new stores. Stick to the strategies you have set so you can still grow without bankrupting the business.

  # 8. Financial Neglect

  Cash is the lifeblood of any business, and there will be no business once that runs out. Therefore, it is imperative that small business entrepreneurs practice strict financial record-keeping so that every penny is duly accounted for. Knowing exactly how much money is going in and out of your business will correctly guide every decision you make.

  # 9. Lackluster Execution

  Having a great business plan will amount to nothing if each objective is tackled with incompetence. Employees who are lazy, dull, bad-mannered and unmanageable will not just cut down on productivity, but will also have a negative effect on the work environment and customer/client relations. Follow strict hiring guidelines and subject your hires to rigorous training to ensure quality output from each one.

  # 10. Poor Marketing

  A small business needs to market its brand considering the tough competition it will face against more established businesses. You need to invest enough resources into promoting your products through the right channels. This is so your target market knows exactly that you can fulfill its needs. Online marketing is a must these days, but you should not ignore the physical reach of traditional marketing methods such as brochures, flyers and business cards.

  Ultimately, it is a matter of planning out your overall strategy, assessing your own strengths and weakness, and keeping a good eye on all of your resources—be it financial or human. Consider each of these possible pitfalls, and you can find your small business not just surviving, but thriving in this competitive world.

  About the Author

  Jared Mumford is the owner of SEO Visions, a digital marketing agency, and a partner at All Inclusive Marketing.  He lives tucked away on Canada's west coast with his wife and two sons.

  6 Ideas For Starting A Business

  By Mary Ellen Biery

  Is there anything more American than starting your own business?

  With huge success stories like Bill Gates, Sam Walton and Mark Cuban, Americans see what a good idea and working hard can accomplish, and many regularly hear that independent streak calling them. A U.S. unemployment rate that remains around 7.6 percent also means that many Americans have been unable to find a full-time job with an employer, so they may be looking for ways to earn a living on their own.

  Indeed, nearly half of Americans dream of starting a business, according to a recent survey by The UPS Store. And while the number of “business birth
s” and their associated employment remain below pre-recession levels, small businesses have been at the core of the economic expansion, according to the U.S. Small Business Administration. Small businesses, which the SBA defines as fewer than 50 employees, represent more than 99 percent of all businesses and about half of the private-sector economy.

  Sageworks, a financial information company, recently researched which service-based businesses could be good options for people looking to start their own companies. Through its cooperative data model, Sageworks collects the financial statements of private companies from accounting firms, banks and credit unions, aggregating the data at an approximate rate of 1,000 statements a day and generating benchmark performance statistics.

  Service-based businesses are good to consider because they typically require little to no capital to start, and a person can walk out the door and start making money with hard work.

  Among U.S. service industries with the highest sales growth in the 12 months ended May 31, Sageworks found several types of businesses that could be started by one person. Each of these industries has also generated solid profit margins relative to all other industries, based on Sageworks’ data.

  “Private companies, on average, are growing at a healthy rate and have improved margins relative to last year,” said Sageworks analyst Libby Bierman. “But they continue to hold off on hiring. If a job seeker is frustrated, these services industries could be a good place to focus energy. They have lower entry costs than most sectors – need little-to-no inventory investment, can operate out of your house or a small rental location, and don’t require heavy equipment.”

  One major industry posting healthy sales growth that lends itself to entrepreneurism is management, scientific or technical consulting services (NAICS code 5416). This includes an array of consultants, such as those focused on management, marketing, energy efficiency, safety and human resources.

  Building and landscape architects and computer systems design are also industries growing strongly, by about 15 percent over the last 12 months. And there are many business ideas within other categories such as personal services (NAICS 8129) and other professional, scientific or technical services (NAICS 5419). For example, startup businesses could focus on photography, translation services, pet care, personal fitness training or something as simple as a balloon-o-gram service. There are many unusual jobs that pay surprisingly well.

  For more information on the types of jobs listed in this chart and their markets, visit the Census Bureau’s industry classification system page, where you can type in the NAICS code to learn more about the industry. Or browse the Bureau of Labor Statistics’ Occupational Outlook Handbook.

  Granted, many of the jobs in the industries with healthy growth rates and margins require certifications, schooling or experience in the field, Bierman said. “But if someone meets those qualifications, their strong growth rates indicate there might be room for more players in these industries,” she added.

  Sageworks, a financial information company, collects and analyzes data on the performance of privately held companies and provides financial forecasting software.

  Why You Should Never Give Up On Your Dreams

  By Adriana Langford

  Autumn is the season where we reap the benefits of the seeds that we planted in the spring according to the great philosopher Jim Rohn. I wanted to touch base with the entrepreneurial community on why you should never, ever, give up on your dreams.

  Last Labor day as many of us celebrated American workers with family and friends or looked upon the upcoming new season with regret or disappointment for the things we want to achieve or feel that we should have already achieved, Diana Nyad, a 64 year old endurance swimmer became the first swimmer to cross the 110 mile journey from Cuba to Key west without the protection of a shark cage.  This was Ms. Nyad’s fifth attempt to reach her goal in 35 years and she finally made it.

  After Ms. Nyad completed her journey, she gave us three simple but powerful messages that I want to share with you to show you how this applies to us as individuals as well as entrepreneurs, myself included. Diana’s three messages were:

  1. We should never, ever give up

  Think of all the situations that you have been through, how bad you fought for the dream you wanted the most, and most importantly for those of you that are still struggling to reach their destination this is not the time to quit. Ms. Nyad tried this five times and each time before there was an obstacle in her way. Storms, stinging jellyfish, and terrifying sharks. I can’t think of one person in my life that would do what she did, can you? You could be that person.

  2. You are never too old to chase your dreams

  Whether you’re 35 or 53 chances are deep down inside there is something burning you on the inside. Maybe this goal is something you dreamed of doing twenty years ago . It could be the dream of working for yourself or the dream of finally getting that MBA title that you may not even need but want to have it make you feel complete. Ms. Nyad showed us all that it’s really never too late. All you need is perseverance and determination to succeed.

  3. It looks like a solitary sport, but it takes a team

  This lesson was actually my favorite. I confess! It’s my favorite because I’m running a company, as are many of you, and we both know that doing it ourselves is just a crock of you know what. If it weren’t for my team I honestly don’t know how I would do it. A well-balanced team makes all the difference.

  If you are running your business alone this really applies to you. Think about all of the things you would be able to achieve if you developed your A team. After so many attempts Ms. Nyad knew what she had to do and whom she had to consult to make this journey a success. On one occasion she had a severe asthma attack that stopped her journey, which prompted her to call a pulmonologist. After being severely stung by a swarm of jellyfish, she called in a jellyfish expert. Sharks are usually an absolute menace so she called in shark divers. After each lesson she learned exactly whom she needed to succeed and you must do the same.

  We are living in an age where anything is possible, including the outrageous dreams you have in your head. So today as we reflect on Diana Nyad’s successful journey, I want you to continue telling yourself, IT’S POSSIBLE!

  About the Author

  Adriana Langford is The Chic Entrepreneur Coach and founder of www.chicentrepreneurenterprise.com. A mindset and marketing mentor teaching women entrepreneurs how to step out of their comfort zone and into their path to success by transforming their mindset and mastering their marketing skills.

  Contact Successful Startup101

  Contact Editor:

  tabitha@successfulstartup101.com

  Advertising Inquiries:

  advertising@successfulstartup101.com

  Customer Service:

  support@successfulstartup101.com

  www.successfulstartup101.com/support

  Want to contribute? Get all the details here:

  www.successfulstartup101.com/how-to-contribute

  Have Suggestions? We would LOVE to hear from you!

  Contact us at:

  info@successfulstartup101.com