Managing cash flow is every managers challenge, every day, every year. Those managers who keep a close eye on their daily activity and emerging industry trends can help reduce their company’s exposure to the chill of a cash crunch.
How can you predict, avoid and/or, minimize the impact of a cash emergency?
First, pay attention when any cash shortages arise. When cash gets short, pay close attention and be prepared to act. Questions to be answered include:
1. What caused the problem? Pre-payments to take advantage of special discounts can reduce cash. Transportation strikes, for example, could delay shipments and therefore payments. An industry (or economy) slowdown will often result in customers stretching out their payables.
2. How can you cope? If cash on hand is not robust, let the special discounts go. It is usually more cost-effective to pass on a discount than to borrow to overcome a shortfall. Keep up on the news. If you hear about any threatened strikes and/or disruptions to your supply chain, make sure you have a back-up position. Even if temporarily more expensive, it can save your business by showing your customers your reliability and versatility in challenging times. If your customers are in industries facing hard economic times, keep closer tabs on your credit policies and be active in collections. If necessary, tighten credit terms, but use discretion. Being firm but supportive to your customers will go a long way in keeping them in the fold while still giving you a better cash flow. Defer purchases and/or negotiate extended payments if cash gets short.
Most importantly, document both the signals of problems and your solutions. That way, if the signals happen again, you can refer to prior successful action as a first possible solution.
Imagine possible, but normally unpredictable cash flow challenges. Some problems can’t be anticipated, so “what if” scenarios can be created. You don't have to get elaborate, but you can ask what would happen if there were a flood, or, as we've experienced more recently, a devastating hurricane. What then? Other problems, such as "product sabotage" can only be dealt with as they occur. Constructing possible scenarios to reduce risks associated with “unforeseeable” problems is an important management tool. Learn from, and document, each experience, or you may have to repeat it.
Second, watch sales. Any prolonged (and "prolonged" computes differently for each company and industry) drop in sales without a comparable -- and simultaneously emerging -- reduction in expenses is a prescription for trouble. Of course, there is at usually some lag between sales changes and a compensating contraction in expenses, but early diagnosis can reduce the negative impacts significantly. Once a changing trend has been identified, act promptly or the impact of the lag will be more severe.
Third, review the budget. If short-term borrowing is regularly needed to meet normal operating costs, the unavailability of such loans or a sudden change in operating expense could be devastating.
If ongoing operations cannot be supported by sales, either more sales are needed, fewer expenses must be incurred or a combination of the two is in order. While this sounds very simple, all too many companies hesitate "in hopeful anticipation." If remedies are not introduced on a timely basis, a severe cash crunch could follow.
Fourth, keep a close eye on new product development. In many companies, R&D expenditures for new products are often allowed far greater variance from projected budgets than normal expenditures. After all, when you create something new, it is really hard to accurately predict costs -- or turnaround time -- at the outset.
Failure to keep these costs, and time commitments, within bounds or monitor their continuing impact and cost/benefit can lead to continued funding of projects well beyond when they should be cut off. Overall cash flow can be easily drained into a seemingly bottomless pit, and often an entire company is jeopardized by one errant project.
Fifth, beware of pet projects. A pet project is any organizational activity undertaken for ego value rather than consistency with the organization's mission and profit targets. Pet projects, whether new ventures or ongoing cost/profit centers, can often lead to cash flow problems. All organizations have pet projects from time to time. Failure to recognize and deal with a pet project when a cash crunch looms has been the death knell for many companies.
Many cash flow challenges have such simple origins. Often it’s simply a matter of days, or weeks and they can creep up on you. And the daily grind can cloud your vision, encourages false hope or distract you just long enough for problems to take hold. You can learn from past and/or current cash shortages. You can be watchful that sales, budget and R&D costs stay in line. You can keep a lid on pet projects. In an increasingly competitive world, you need to be alert.
Managing cash flow can be dificult at time
Chauncey Penfold
337-856-9461
Summary:
How can you predict, avoid and/or, minimize the impact of a cash emergency? Managing cash flow is every manager's challenge, every day, every year. Those managers who keep a close eye on their daily activity and emerging industry trends can help reduce their company’s exposure to the chill of a cash crunch. In an increasingly competitive world, you need to be alert.
Saturday, December 17, 2011
Wednesday, December 14, 2011
8 BIG Small Business Mistakes
Here’s an interesting notion: Do you realize that there are mistakes you can make at various stages of your business’ growth that can be slowly killing it for months or even years if you don’t watch for them?
Well, these mistakes do exist and they are not just reserved for the rookie companies. Many working businesses, including those you might think are successful because they’ve been around for 10+ years, are often still making them… and are possibly losing a lot of money and/or wasting a lot of time in the process.
Although some of these big and sneaky mistakes seem aimed more at service type companies, they really do fit the bill for almost any type of industry. I’ve done my best with the listings below to give examples to prove it.
Underestimating Project/Service Time- This is a big one and it pertains to service companies as well as companies that sell a product. This is a service company’s bread and butter. If you don’t estimate your time to perform each and every service in your repertoire, you will get burned and there is little you can do about it but bite the bullet and learn from it. The best way to estimate time is to do it once yourself or watch your best employee do the task and then throw in a little fudge factor on top of it. For product companies, time becomes an issue with logistics so be aware!
Not Knowing YOUR Company Numbers/Incorrectly Setting Prices- Notice I emphasized the word “your”. It’s a common mistake to use a competitor’s as your pricing gauge without actually knowing why they use those numbers. Think about the nightmare you will get yourself into if you take a competitor’s price, cut it by 10% and then start selling. What if the competition has a bad pricing structure and is barely making money or even losing money?!?! What if your costs are more than theirs?!?! You can use competitor as a starting point but you can’t base your whole strategy on it.
Different industries have their own variables as far as costs go and you need to be aware of them for your project or product pricing. What you pay for a product you are going to sell is not the only cost to have in your head when you are pricing products. How much your labor and materials cost for a service is only a piece of an hourly rate. Employees cost more than just salary and not every employee is part of your labor cost. Every company has insurance to pay for. There are tons of overhead expenditures that need to be part of your price. Oh, by the way, the big one that many people forget about in their price is the quality factor. What you include as “standard services” or “standard product features” as well as job site etiquette or in store service or warranties all need to go into your pricing. I’ll get to more on why in the next segment.
Not Charging for All of Your Time & Costs- This seems like a stupid statement to some but I bet most business owners will admit that they have given away a little too much of the farm at times. Hey, there is nothing wrong with giving a little extra here and there to show you care. But either way, that’s not what I’m talking about here. What concerns me are those that put a lot of quality into their work or products or stores and do not cover the cost for it. As an example, say you run a service company and your competitors don’t do a certain standard service that you do. You can’t just undercut their price to steal a job; you need to have that cost covered in your rate and advertise the fact that it comes with the price upfront. Stores undermine themselves, for example, when they put more people on the floor for customer service but don’t charge for it. These things cost you money and when your competitors don’t do them it costs them less money. Put out better service and then under price them, and your competition just has to wait a little bit for you to fall on your face so they can swoop back in.
As a business owner you need to believe that you are providing your clients worthwhile wares that deserve to be paid for. If you get the chance to explain why your prices are higher, then take that opportunity and do it. If they don’t like the fact that you include things that others charge extra for later or that you treat them better, then they are most likely completely price shoppers. You don’t want them as regular customers anyway. Trust me.
Not Getting Paid Fast Enough- That’s right, the old cash flow issue. As long as you are actually making enough money to pay the bills, this problem can be solved, prevented or at least made to be not as bad as it could be. Here’s the deal:
First off all, bill customers very promptly. It is very common for a small business to not have the procedures or systems in place to get invoices generated and out the door in a timely fashion (see the next segment for more). Again, this would seem unlikely since that’s the reason why we are doing the work- to get paid. But it is very easy for the people responsible for getting this info to the billing people to be too busy to get it there or not have enough organization to give it to them the right way.
The second part to slowing down or stopping a regular cash flow crunch is to make the quickest payment deals possible with customers and the slowest possible with vendors and employees. If there is any way not to pay employees any more than twice a month, you better do it. Contractors always have an issue with this. If you must pay weekly, then tell them before they are hired that they will be getting the first week held back, essentially buying you a week. It will help, I promise.
Part three involves credit. If your company can get a credit card, then get it. This allows for certain important things to be bought (that you can afford) that might come up during a cash flow crunch. Better yet, especially if you have no choice but to deal with 45+ day customer payments, do your best to get a company line of credit. This is a must if you plan on selling to the government or doing commercial service work. These clients often have 60 to 90 day wait periods.
Failure to Have Solid Systems and Procedures in Place- Too many procedures (known as “red tape”) is the reason why many people start their own business in the first place. Unfortunately, having no procedures and systems in place at all is not an alternative. Depending on the type of industry, business owners must come to a happy medium or chaos and the unknown will ensue. Some basic examples where procedures or systems are needed include billing, collections, payroll, hr (interviewing, hiring, vacations, benefits, job responsibilities, etc.), manufacturing, operating equipment, maintaining equipment, inventory, sales calls/visits and logistics to name a few.
Even a one person show needs to have some admin procedures in place. This will make it easier to hire temps and subcontractors and control what they are doing for you. Without at least a watered down version of a system or procedure to do everyday work, you will be to blame for causing many major headaches as your company grows. I can’t emphasize how important this is for when you bring on new employees. I’m sure you heard this before, but I am also a big proponent of having an employee handbook even for one employee. It’s amazing the trouble people can cause business owners just because they allow you to pay them.
Spending Advertising Money Just to Say You Advertise- I would almost rather see my clients not advertise then to spend without regard to tracking the results. There is no point in a marketing campaign if you do not put things in place that allow you to measure how well the plan is working. The other wasteful part of marketing that many people make the mistake of doing, is not tracking their previously successful campaigns. Why some people think that just because a $400 dollar a month ad worked once very well for one busy season, that it will automatically work every year after that is beyond me.
Spreading Yourself Too Thin- This is a classic mistake made by every entrepreneur. The key is to figure out when you are at that “wearing too many hats” point and start getting some help. The solution here is to know your strengths and to be able see when you are not performing the duties that demand these skills. If you are the best sales person on the company, you can’t get caught up in day-to-day operations. If you do, sales will slip and eventually you won’t have any operations to worry about. Think about this to help you figure out if you are spread too thin: Did you really go into business for yourself to work 80+ hours a week?
Not Getting Help Soon Enough- Set goals to know when to hire people to take over where you are light on knowledge. Not getting help or waiting too long can kill a company. Most people who start a business do it because they are good at the technical end or the sales end. If you know the best way to make a widget, then your strength is in production and that is where your time should be spent. Hire an outside company or consultant to take care of the sales and marketing and then hire inside when you can afford someone full time. Don’t be something to your company that you are not. It will only hold you back.
The three big issues people like to tackle themselves but usually are least knowledgeable about are legal issues, accounting/bookkeeping issues and daily operations issues. The odds are that these three things are your weakest link so if you don’t have a partner that has the background for these subjects, then be prepared to get help as soon as possible. It’s preferable that you do this before you start a business.
Although looking for these problems at any time is a good idea, the end of a year or season is an excellent business interval to make sure you are not making these errors. Take the time, or make the time, to fix these problems. If you don’t know how to reverse the problems, then get some help. If you really don’t have enough time to either figure out if you have these issues or know they are there and can’t break away long enough to do it right, then get some help.
Better business practice
Chauncey Penfold
337-856-9461
Well, these mistakes do exist and they are not just reserved for the rookie companies. Many working businesses, including those you might think are successful because they’ve been around for 10+ years, are often still making them… and are possibly losing a lot of money and/or wasting a lot of time in the process.
Although some of these big and sneaky mistakes seem aimed more at service type companies, they really do fit the bill for almost any type of industry. I’ve done my best with the listings below to give examples to prove it.
Underestimating Project/Service Time- This is a big one and it pertains to service companies as well as companies that sell a product. This is a service company’s bread and butter. If you don’t estimate your time to perform each and every service in your repertoire, you will get burned and there is little you can do about it but bite the bullet and learn from it. The best way to estimate time is to do it once yourself or watch your best employee do the task and then throw in a little fudge factor on top of it. For product companies, time becomes an issue with logistics so be aware!
Not Knowing YOUR Company Numbers/Incorrectly Setting Prices- Notice I emphasized the word “your”. It’s a common mistake to use a competitor’s as your pricing gauge without actually knowing why they use those numbers. Think about the nightmare you will get yourself into if you take a competitor’s price, cut it by 10% and then start selling. What if the competition has a bad pricing structure and is barely making money or even losing money?!?! What if your costs are more than theirs?!?! You can use competitor as a starting point but you can’t base your whole strategy on it.
Different industries have their own variables as far as costs go and you need to be aware of them for your project or product pricing. What you pay for a product you are going to sell is not the only cost to have in your head when you are pricing products. How much your labor and materials cost for a service is only a piece of an hourly rate. Employees cost more than just salary and not every employee is part of your labor cost. Every company has insurance to pay for. There are tons of overhead expenditures that need to be part of your price. Oh, by the way, the big one that many people forget about in their price is the quality factor. What you include as “standard services” or “standard product features” as well as job site etiquette or in store service or warranties all need to go into your pricing. I’ll get to more on why in the next segment.
Not Charging for All of Your Time & Costs- This seems like a stupid statement to some but I bet most business owners will admit that they have given away a little too much of the farm at times. Hey, there is nothing wrong with giving a little extra here and there to show you care. But either way, that’s not what I’m talking about here. What concerns me are those that put a lot of quality into their work or products or stores and do not cover the cost for it. As an example, say you run a service company and your competitors don’t do a certain standard service that you do. You can’t just undercut their price to steal a job; you need to have that cost covered in your rate and advertise the fact that it comes with the price upfront. Stores undermine themselves, for example, when they put more people on the floor for customer service but don’t charge for it. These things cost you money and when your competitors don’t do them it costs them less money. Put out better service and then under price them, and your competition just has to wait a little bit for you to fall on your face so they can swoop back in.
As a business owner you need to believe that you are providing your clients worthwhile wares that deserve to be paid for. If you get the chance to explain why your prices are higher, then take that opportunity and do it. If they don’t like the fact that you include things that others charge extra for later or that you treat them better, then they are most likely completely price shoppers. You don’t want them as regular customers anyway. Trust me.
Not Getting Paid Fast Enough- That’s right, the old cash flow issue. As long as you are actually making enough money to pay the bills, this problem can be solved, prevented or at least made to be not as bad as it could be. Here’s the deal:
First off all, bill customers very promptly. It is very common for a small business to not have the procedures or systems in place to get invoices generated and out the door in a timely fashion (see the next segment for more). Again, this would seem unlikely since that’s the reason why we are doing the work- to get paid. But it is very easy for the people responsible for getting this info to the billing people to be too busy to get it there or not have enough organization to give it to them the right way.
The second part to slowing down or stopping a regular cash flow crunch is to make the quickest payment deals possible with customers and the slowest possible with vendors and employees. If there is any way not to pay employees any more than twice a month, you better do it. Contractors always have an issue with this. If you must pay weekly, then tell them before they are hired that they will be getting the first week held back, essentially buying you a week. It will help, I promise.
Part three involves credit. If your company can get a credit card, then get it. This allows for certain important things to be bought (that you can afford) that might come up during a cash flow crunch. Better yet, especially if you have no choice but to deal with 45+ day customer payments, do your best to get a company line of credit. This is a must if you plan on selling to the government or doing commercial service work. These clients often have 60 to 90 day wait periods.
Failure to Have Solid Systems and Procedures in Place- Too many procedures (known as “red tape”) is the reason why many people start their own business in the first place. Unfortunately, having no procedures and systems in place at all is not an alternative. Depending on the type of industry, business owners must come to a happy medium or chaos and the unknown will ensue. Some basic examples where procedures or systems are needed include billing, collections, payroll, hr (interviewing, hiring, vacations, benefits, job responsibilities, etc.), manufacturing, operating equipment, maintaining equipment, inventory, sales calls/visits and logistics to name a few.
Even a one person show needs to have some admin procedures in place. This will make it easier to hire temps and subcontractors and control what they are doing for you. Without at least a watered down version of a system or procedure to do everyday work, you will be to blame for causing many major headaches as your company grows. I can’t emphasize how important this is for when you bring on new employees. I’m sure you heard this before, but I am also a big proponent of having an employee handbook even for one employee. It’s amazing the trouble people can cause business owners just because they allow you to pay them.
Spending Advertising Money Just to Say You Advertise- I would almost rather see my clients not advertise then to spend without regard to tracking the results. There is no point in a marketing campaign if you do not put things in place that allow you to measure how well the plan is working. The other wasteful part of marketing that many people make the mistake of doing, is not tracking their previously successful campaigns. Why some people think that just because a $400 dollar a month ad worked once very well for one busy season, that it will automatically work every year after that is beyond me.
Spreading Yourself Too Thin- This is a classic mistake made by every entrepreneur. The key is to figure out when you are at that “wearing too many hats” point and start getting some help. The solution here is to know your strengths and to be able see when you are not performing the duties that demand these skills. If you are the best sales person on the company, you can’t get caught up in day-to-day operations. If you do, sales will slip and eventually you won’t have any operations to worry about. Think about this to help you figure out if you are spread too thin: Did you really go into business for yourself to work 80+ hours a week?
Not Getting Help Soon Enough- Set goals to know when to hire people to take over where you are light on knowledge. Not getting help or waiting too long can kill a company. Most people who start a business do it because they are good at the technical end or the sales end. If you know the best way to make a widget, then your strength is in production and that is where your time should be spent. Hire an outside company or consultant to take care of the sales and marketing and then hire inside when you can afford someone full time. Don’t be something to your company that you are not. It will only hold you back.
The three big issues people like to tackle themselves but usually are least knowledgeable about are legal issues, accounting/bookkeeping issues and daily operations issues. The odds are that these three things are your weakest link so if you don’t have a partner that has the background for these subjects, then be prepared to get help as soon as possible. It’s preferable that you do this before you start a business.
Although looking for these problems at any time is a good idea, the end of a year or season is an excellent business interval to make sure you are not making these errors. Take the time, or make the time, to fix these problems. If you don’t know how to reverse the problems, then get some help. If you really don’t have enough time to either figure out if you have these issues or know they are there and can’t break away long enough to do it right, then get some help.
Better business practice
Chauncey Penfold
337-856-9461
Saturday, December 10, 2011
4 Classic Cold Calling Mistakes
4 Classic Cold Calling Mistakes
Have you noticed that the old "tried and true" cold calling techniques which were once successful have completely lost their effectiveness over the years? They just don’t work anymore.
But many salespeople are still use them because that’s all they know. They’re working from that old, ineffective cold calling mindset. And they’re making the same mistakes over and over again.
I’d like to talk about 4 classic cold calling mistakes from the old traditional approach that will put you on the wrong path if you’re not careful.
1. Deliver a strong, enthusiastic sales pitch
People almost always feel "pushed" by sales enthusiasm, especially when it’s coming from someone they don’t know.
You see, a strong sales pitch includes the unspoken assumption that your product or service is a great fit for the other person. But think about it. You’ve never spoken with them before, much less had a full conversation. You can’t possibly know much about them at this point.
So to them, you’re just another salesperson who wants them to buy something. And so the walls go up.
It’s much better to modestly assume you know very little about your prospect. Invite them to share some of their concerns and difficulties with you. And allow them to guide the conversation, rather than your pre-ordained strategy or pitch.
2. Your goal is to always make the sale
When your target in cold calling is to always make the sale, prospects are aware of your agenda. And almost immediately, they’re on the defensive. After all, you’re primarily focused on yourself and the sale – not on them.
In the old traditional mindset, you forge ahead with the hope of getting a sale. You’re coaxing, persuading, and pushing things forward.
But most cold calls break down the moment the other person feels this sales pressure.
Why? Because they don’t know you, and they don’t trust you.
So the sales momentum you’re trying to create actually triggers a backlash of suspicion and resistance. They’re trying to protect themselves from a potential "intruder" with what appears to them as a self-serving agenda.
Instead, you can approach cold calling with a different goal. Your focus can be on discovering whether you’re able to solve a problem for the other person.
When you become a problem-solver, this feels vastly different to the person you’re talking to. You’re not triggering rejection. You’re calling with 100 percent of your thoughts and energy focused on their needs, rather than on making a sale.
3. Focus on the end of the conversation – that’s when sales are lost
If you believe that you lose sales because you’ve made a mistake at the end of the process, you’re looking in the wrong direction. Most mistakes are made at the beginning of a cold calling conversation.
You see, it’s at the beginning that you convey whether you’re honest and trustworthy. If you’ve started out your cold call with a high-pressured sales pitch, then you’ve probably lost the other person in just a few seconds.
When you follow a sales script, strategy, or presentation, then you’re not allowing a natural, trusting conversation to evolve. So the "problem" has been put into motion by your very first words. So the place to put all your focus is at the beginning of the cold call, not at the end.
4. Overcome and counter all objections
Most traditional sales programs spend a lot of time focusing on overcoming objections. But these tactics only put more sales pressure on your prospect, which triggers resistance. And you also fail to explore or understand the truth behind what’s being said.
When you hear, "We don't have the budget," or, "Call me in a few months," you can uncover the truth by replying, "That's not a problem."
And then using gentle, dignified language, you can invite them to reveal the truth about their situation.
So move away from the old sales mindset and try this new way of approaching your cold calling. You’ll find yourself being more natural, and others will respond to you in a much more positive way.
Overcome and counter all objections
Chauncey Penfold
337-856-9461
Have you noticed that the old "tried and true" cold calling techniques which were once successful have completely lost their effectiveness over the years? They just don’t work anymore.
But many salespeople are still use them because that’s all they know. They’re working from that old, ineffective cold calling mindset. And they’re making the same mistakes over and over again.
I’d like to talk about 4 classic cold calling mistakes from the old traditional approach that will put you on the wrong path if you’re not careful.
1. Deliver a strong, enthusiastic sales pitch
People almost always feel "pushed" by sales enthusiasm, especially when it’s coming from someone they don’t know.
You see, a strong sales pitch includes the unspoken assumption that your product or service is a great fit for the other person. But think about it. You’ve never spoken with them before, much less had a full conversation. You can’t possibly know much about them at this point.
So to them, you’re just another salesperson who wants them to buy something. And so the walls go up.
It’s much better to modestly assume you know very little about your prospect. Invite them to share some of their concerns and difficulties with you. And allow them to guide the conversation, rather than your pre-ordained strategy or pitch.
2. Your goal is to always make the sale
When your target in cold calling is to always make the sale, prospects are aware of your agenda. And almost immediately, they’re on the defensive. After all, you’re primarily focused on yourself and the sale – not on them.
In the old traditional mindset, you forge ahead with the hope of getting a sale. You’re coaxing, persuading, and pushing things forward.
But most cold calls break down the moment the other person feels this sales pressure.
Why? Because they don’t know you, and they don’t trust you.
So the sales momentum you’re trying to create actually triggers a backlash of suspicion and resistance. They’re trying to protect themselves from a potential "intruder" with what appears to them as a self-serving agenda.
Instead, you can approach cold calling with a different goal. Your focus can be on discovering whether you’re able to solve a problem for the other person.
When you become a problem-solver, this feels vastly different to the person you’re talking to. You’re not triggering rejection. You’re calling with 100 percent of your thoughts and energy focused on their needs, rather than on making a sale.
3. Focus on the end of the conversation – that’s when sales are lost
If you believe that you lose sales because you’ve made a mistake at the end of the process, you’re looking in the wrong direction. Most mistakes are made at the beginning of a cold calling conversation.
You see, it’s at the beginning that you convey whether you’re honest and trustworthy. If you’ve started out your cold call with a high-pressured sales pitch, then you’ve probably lost the other person in just a few seconds.
When you follow a sales script, strategy, or presentation, then you’re not allowing a natural, trusting conversation to evolve. So the "problem" has been put into motion by your very first words. So the place to put all your focus is at the beginning of the cold call, not at the end.
4. Overcome and counter all objections
Most traditional sales programs spend a lot of time focusing on overcoming objections. But these tactics only put more sales pressure on your prospect, which triggers resistance. And you also fail to explore or understand the truth behind what’s being said.
When you hear, "We don't have the budget," or, "Call me in a few months," you can uncover the truth by replying, "That's not a problem."
And then using gentle, dignified language, you can invite them to reveal the truth about their situation.
So move away from the old sales mindset and try this new way of approaching your cold calling. You’ll find yourself being more natural, and others will respond to you in a much more positive way.
Overcome and counter all objections
Chauncey Penfold
337-856-9461
Wednesday, December 7, 2011
5 Proven Strategies for Internet and Network Marketing Success
5 Proven Strategies for Internet and Network Marketing Success
There are many opportunities in network marketing to help you reach your life goals. You can work from home and enjoy a steady cash stream while setting your own hours and doing what you love most to earn an income. But if you're like the majority of people who join a team of online network marketers, you probably aren't sure how or where to get started with Internet and network marketing. Here are five proven strategies to get you started.
1. Start Your Own Network Marketing Website
With your own network marketing website, you can build a profitable business model for your team. Your website can be used to provide information to newcomers as well as update your team members on a regular basis. A website can be used to enhance off-line network marketing as well. For instance, you can print your Web address on your business cards, letterhead, envelopes, postcards, and in printed ads. Those interested in your proposal can visit your website for more information. Your website can contain almost unlimited information that will help convert prospects into team members.
2. Start Your Own E-zine
An e-zine is an electronic newsletter sent by email to a database of subscribers. An e-zine builds trust and establishes you as an expert. At your website, you can set up a subscription form for your e-zine. Those who sign up are obviously interested in your offer, so you can send e-mailings to them weekly and use the e-zine to get them back to your website. This is a great way to turn visitors to your site into network marketing partners.
3. Answer Questions in Forums and Discussion Groups
With forums, you cannot merely advertise your business, but you can answer questions and include a link to your email or website. Find work-from-home forums online that are related to your network marketing business or that might cater to your target audience. Observe and read the questions and answers for a while before posting to get a feel for the people and atmosphere. Then, answer those questions pertaining to your type of business in a truly helpful manner. The person asking the question might visit your website as well as any others who might read the post. It's a great way to meet new people and market your business.
4. Create Network Marketing Excitement
Another thing you can do online is to create network marketing excitement for your team members. At your own website, you can hold contests for your team members, random giveaways, provide hosted space for your team members to create their own profiles or mini-websites, do feature bios on your team members, and more. These will motivate your network marketing team to work harder and increase their cash stream (and yours) while having fun.
5. Content Writing about the Internet and Network Marketing
One of the most powerful ways to promote your website is to add valuable content articles to your website on a regular basis. Articles should be targeted about network marketing and working from home. They should provide your target readers with helpful information. At the conclusion of each article, you can include a signature/bio that will lead the reader to your sales pages.
Add articles to your website on a regular basis and submit articles to free article directories for maximum results. Articles will help attract search engine traffic to your website without any cost to you.
There are also many other methods of Internet promotion for network marketing such as e-zine advertising, banner advertising, contextual or paid search engine ads, free traffic exchanges, and affiliate programs. Whether you are part of a global resorts travel business, a profitable reverse funnel system, or another successful business model, you'll be amazed at the results when you combine all of the promotion methods above for the Internet and network marketing!
Greater freedom with a home based biusiness
Chauncey Penfold
337-856-9461
There are many opportunities in network marketing to help you reach your life goals. You can work from home and enjoy a steady cash stream while setting your own hours and doing what you love most to earn an income. But if you're like the majority of people who join a team of online network marketers, you probably aren't sure how or where to get started with Internet and network marketing. Here are five proven strategies to get you started.
1. Start Your Own Network Marketing Website
With your own network marketing website, you can build a profitable business model for your team. Your website can be used to provide information to newcomers as well as update your team members on a regular basis. A website can be used to enhance off-line network marketing as well. For instance, you can print your Web address on your business cards, letterhead, envelopes, postcards, and in printed ads. Those interested in your proposal can visit your website for more information. Your website can contain almost unlimited information that will help convert prospects into team members.
2. Start Your Own E-zine
An e-zine is an electronic newsletter sent by email to a database of subscribers. An e-zine builds trust and establishes you as an expert. At your website, you can set up a subscription form for your e-zine. Those who sign up are obviously interested in your offer, so you can send e-mailings to them weekly and use the e-zine to get them back to your website. This is a great way to turn visitors to your site into network marketing partners.
3. Answer Questions in Forums and Discussion Groups
With forums, you cannot merely advertise your business, but you can answer questions and include a link to your email or website. Find work-from-home forums online that are related to your network marketing business or that might cater to your target audience. Observe and read the questions and answers for a while before posting to get a feel for the people and atmosphere. Then, answer those questions pertaining to your type of business in a truly helpful manner. The person asking the question might visit your website as well as any others who might read the post. It's a great way to meet new people and market your business.
4. Create Network Marketing Excitement
Another thing you can do online is to create network marketing excitement for your team members. At your own website, you can hold contests for your team members, random giveaways, provide hosted space for your team members to create their own profiles or mini-websites, do feature bios on your team members, and more. These will motivate your network marketing team to work harder and increase their cash stream (and yours) while having fun.
5. Content Writing about the Internet and Network Marketing
One of the most powerful ways to promote your website is to add valuable content articles to your website on a regular basis. Articles should be targeted about network marketing and working from home. They should provide your target readers with helpful information. At the conclusion of each article, you can include a signature/bio that will lead the reader to your sales pages.
Add articles to your website on a regular basis and submit articles to free article directories for maximum results. Articles will help attract search engine traffic to your website without any cost to you.
There are also many other methods of Internet promotion for network marketing such as e-zine advertising, banner advertising, contextual or paid search engine ads, free traffic exchanges, and affiliate programs. Whether you are part of a global resorts travel business, a profitable reverse funnel system, or another successful business model, you'll be amazed at the results when you combine all of the promotion methods above for the Internet and network marketing!
Greater freedom with a home based biusiness
Chauncey Penfold
337-856-9461
Saturday, December 3, 2011
5 Considerations for the Home Worker to Make Money Online
5 Considerations for the Home Worker to Make Money Online
With a computer and high speed Internet access, the potential for the home worker to make money online is virtually limitless. When it comes to finding the right home based business opportunity, there are several things to consider. Here are the top five:
1. Are You a Salesperson?
Some people have a natural talent for sales, while others couldn't sell water to someone stranded in the desert. For the home based worker who has the ability to sell, network marketing may be the perfect home based business. Network marketing typically involves selling products in one or more niche markets, as well as selling the opportunity. Also known as multi-level marketing, network marketing pays commissions based on a percentage of your sales and on the sales of your "downline," or those you have recruited to sell the product. Each opportunity has its own commission plan, and many pay bonuses on top of commissions.
2. Are You Experienced?
If you have years of experience being a home worker, you probably have a good idea of your strengths and weaknesses. On the other hand, if you're new to being an entrepreneur, you probably need training. Look for a company that offers the tools and training you need in order to succeed. The type of training you receive can encompass everything from weekly conference calls or webinars (Internet-based seminars), to one-on-one coaching from your upline, to training manuals and other written materials.
3. Are You Internet Savvy?
If you know your way around the Internet and know something about setting up and hosting websites, the possibilities are endless. You can create your own websites, for example, and start generating affiliate revenue and Google AdSense revenue.
If you haven't the foggiest idea of how to set up and host a website, be sure to find a company you can partner with who will do the heavy lifting. There are many Internet-based opportunities for the home based worker from companies that provide what are called "replicated sites." They'll design and host your websites for you, so that all you have to do is work on marketing in order to drive traffic to your site.
4. How Much do You Want to Work?
Before selecting a home based business opportunity, honestly assess how much you want to work. If a stay-at-home mom needs extra money, she may only want to work two or three hours a day. If someone wants to quit the rat race and work full time as a home worker, money for moms simply won't be enough income. Sometimes a single home based business will provide all of the revenue a person needs, while other times you have to embark on several opportunities to diversify and multiply your revenue streams.
5. How Hands-On do You Want to Be?
Some home based business opportunities require that you be actively involved on a day-to-day basis, either in order fulfillment and customer service or in marketing your websites or businesses. Other opportunities are more passive in nature, in that you have to spend a lot of time initially, but they become self-perpetuating. If you're a home worker who enjoys being an ongoing active participant, choose an opportunity that requires you to interact with other people. If you prefer to be hands-off, select a business that will basically run itself.
business opportunity
Chauncey Penfold
337-856-9461
With a computer and high speed Internet access, the potential for the home worker to make money online is virtually limitless. When it comes to finding the right home based business opportunity, there are several things to consider. Here are the top five:
1. Are You a Salesperson?
Some people have a natural talent for sales, while others couldn't sell water to someone stranded in the desert. For the home based worker who has the ability to sell, network marketing may be the perfect home based business. Network marketing typically involves selling products in one or more niche markets, as well as selling the opportunity. Also known as multi-level marketing, network marketing pays commissions based on a percentage of your sales and on the sales of your "downline," or those you have recruited to sell the product. Each opportunity has its own commission plan, and many pay bonuses on top of commissions.
2. Are You Experienced?
If you have years of experience being a home worker, you probably have a good idea of your strengths and weaknesses. On the other hand, if you're new to being an entrepreneur, you probably need training. Look for a company that offers the tools and training you need in order to succeed. The type of training you receive can encompass everything from weekly conference calls or webinars (Internet-based seminars), to one-on-one coaching from your upline, to training manuals and other written materials.
3. Are You Internet Savvy?
If you know your way around the Internet and know something about setting up and hosting websites, the possibilities are endless. You can create your own websites, for example, and start generating affiliate revenue and Google AdSense revenue.
If you haven't the foggiest idea of how to set up and host a website, be sure to find a company you can partner with who will do the heavy lifting. There are many Internet-based opportunities for the home based worker from companies that provide what are called "replicated sites." They'll design and host your websites for you, so that all you have to do is work on marketing in order to drive traffic to your site.
4. How Much do You Want to Work?
Before selecting a home based business opportunity, honestly assess how much you want to work. If a stay-at-home mom needs extra money, she may only want to work two or three hours a day. If someone wants to quit the rat race and work full time as a home worker, money for moms simply won't be enough income. Sometimes a single home based business will provide all of the revenue a person needs, while other times you have to embark on several opportunities to diversify and multiply your revenue streams.
5. How Hands-On do You Want to Be?
Some home based business opportunities require that you be actively involved on a day-to-day basis, either in order fulfillment and customer service or in marketing your websites or businesses. Other opportunities are more passive in nature, in that you have to spend a lot of time initially, but they become self-perpetuating. If you're a home worker who enjoys being an ongoing active participant, choose an opportunity that requires you to interact with other people. If you prefer to be hands-off, select a business that will basically run itself.
business opportunity
Chauncey Penfold
337-856-9461
Wednesday, November 30, 2011
7 Critical Business Financing Mistakes
7 Critical Business Financing Mistakes
Avoiding the top 7 business financing mistakes is a key component in business survival.
If you start committing these business financing mistakes too often, you will greatly reduce any chance you have for longer term business success.
The key is to understand the causes and significance of each so that you're in a position to make better decisions.
>>> Business Financing Mistakes (1) - No Monthly Bookkeeping.
Regardless of the size of your business, inaccurate record keeping creates all sorts of issues relating to cash flow, planning, and business decision making.
While everything has a cost, bookkeeping services are dirt cheap compared to most other costs a business will incur.
And once a bookkeeping process gets established, the cost usually goes down or becomes more cost effective as there is no wasted effort in recording all the business activity.
By itself, this one mistake tends to lead to all the others in one way or another and should be avoided at all costs.
>>> Business Financing Mistakes (2) - No Projected Cash Flow.
No meaningful bookkeeping creates a lack of knowing where you've been. No projected cash flow creates a lack of knowing where you're going.
Without keeping score, businesses tend to stray further and further away from their targets and wait for a crisis that forces a change in monthly spending habits.
Even if you have a projected cash flow, it needs to be realistic.
A certain level of conservatism needs to be present, or it will become meaningless in very short order.
>>> Business Financing Mistakes (3) - Inadequate Working Capital
No amount of record keeping will help you if you don't have enough working capital to properly operate the business.
That's why its important to accurately create a cash flow forecast before you even start up, acquire, or expand a business.
Too often the working capital component is completely ignored with the primary focus going towards capital asset investments.
When this happens, the cash flow crunch is usually felt quickly as there is insufficient funds to properly manage through the normal sales cycle.
>>> Business Financing Mistakes (4) - Poor Payment Management.
Unless you have meaningful working capital, forecasting, and bookkeeping in place, you're likely going to have cash management problems.
The result is the need to stretch out and defer payments that have come due.
This can be the very edge of the slippery slope.
I mean, if you don't find out what's causing the cash flow problem in the first place, stretching out payments may only help you dig a deeper hole.
The primary targets are government remittances, trade payables, and credit card payments.
>>> Business Financing Mistakes (5) - Poor Credit Management
There can be severe credit consequences to deferring payments for both short periods of time and indefinite periods of time.
First, late payments of credit cards are probably the most common ways in which both businesses and individuals destroy their credit.
Second, NSF checks are also recorded through business credit reports and are another form of black mark.
Third, if you put off a payment too long, a creditor could file a judgment against you further damaging your credit.
Fourth, when you apply for future credit, being behind with government payments can result in an automatic turndown by many lenders.
It gets worse.
Each time you apply for credit, credit inquiries are listed on your credit report.
This can cause two additional problems.
First, multiple inquiries can reduce you overall credit rating or score.
Second, lenders tend to be less willing to grant credit to a business that has a multitude of inquiries on its credit report.
If you do get into situations where you're short cash for a finite period of time, make sure you proactively discuss the situation with your creditors and negotiate repayment arrangements that you can both live with and that won't jeopardize your credit.
>>> Business Financing Mistakes (6) - No Recorded Profitability
For startups, the most important thing you can do from a financing point of view is get profitable as fast as possible.
Most lenders must see at least one year of profitable financial statements before they will consider lending funds based on the strength of the business.
Before short term profitability is demonstrated, business financing is based primary on personal credit and net worth.
For existing businesses, historical results need to show profitability to acquire additional capital.
The measurement of this ability to repay is based on the net income recorded for the business by a third party accredited accountant.
In many cases, businesses work with their accountants to reduce business tax as much as possible but also destroy or restrict their ability to borrow in the process when the business net income is insufficient to service any additional debt.
>>> Business Financing Mistakes (7) - No Financing Strategy
A proper financing strategy creates 1) the financing required to support the present and future cash flows of the business, 2) the debt repayment schedule that the cash flow can service, and 3) the contingency funding necessary to address unplanned or unique business needs.
This sounds good in principle, but does not tend to be well practiced.
Why?
Because financing is largely an unplanned and after the fact event.
It seems once everything else is figured out, then a business will try to locate financing.
There are many reasons for this including: entrepreneurs are more marketing oriented, people believe financing is easy to secure when they need it, the short term impact of putting off financial issues are not as immediate as other things, and so on.
Regardless of the reason, the lack of a workable financing strategy is indeed a mistake.
However, a meaningful financing strategy is not likely to exist if one or more of the other 6 mistakes are present.
This reinforces the point that all mistakes listed are intertwined and when more than one is made, the effect of the negative result can become compounded.
Better business financial planing
Chauncey Penfold
337-856-9461
Saturday, November 26, 2011
3 Women Starting A Small Business
3 Women Starting A Small Business
Starting a small business ranks close to having a child in the “major life event” category. This can be one of the most stressful times, but if done right, it can also be one of the most rewarding things in your life. Some might think that to start your own business, you have to know everything. One thing that you can have something help you with is marketing and advertising.
This is a very complicated part of any business and if the average business owner thinks they know everything they need to know about this, they are kidding themselves. When someone has a heart problem, they go to a specialist. This is how you should treat your small business marketing. Using an Ad Agency could be one of the smartest things you could do to help ensure your business does not fail.
It is well known that 80% of all businesses fail within the first 5 years. How many of those millions of heartbroken owners could have been part of the 20% only if they would have not been a “know it all” and asked the experts for help in areas they didn’t have an idea in. Throughout the years of running an Ad Agency, we have never had a client spend more money with us than if they would have done it alone. In a majority of cases, they actually have saved thousands of dollars with us. This is for a few reasons. One is the enormous buying power good Ad Agencies have.
We can buy in bulk and pass the savings to all of our clients. Ad Agencies also have more negotiating power. Going into a buying process with 5-10 clients at one time can give us a huge advantage in negotiating power. One thing that new and existing business owners fail to do is create an actual advertising marketing plan for the year. This can be done at any time during the year and not just January first.
Create a plan for the next 12 months based on your target audience and your budget. We never come to a client and tell them how much they should spend for the year. We take your budget and create a plan for you, at a price you can afford. We handle over $38 million in advertising dollars every year, but we service the $5000 startup or the $100k budgets. Any and all are welcome to participate in our programs.
To your Success
Chauncey Penfold
337-856-9461
skype chauncey.penfold
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