Thursday, June 16, 2011

“Top 7 Reasons Why Small Businesses Fail”

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1. You start your business for the wrong reasons.
Would the sole reason you would be starting your own business be that you would want to make a lot of money? Do you think that if you had your own business that you'd have more time with your family? Or maybe that you wouldn't have to answer to anyone else? If so, you'd better think again.
On the other hand, if you start your business for these reasons, you'll have a better chance at entrepreneurial success:
You have a passion and love for what you'll be doing, and strongly believe -- based on educated study and investigation -- that your product or service would fulfill a real need in the marketplace.
You are physically fit and possess the needed mental stamina to withstand potential challenges. Often overlooked, less-than-robust health has been responsible for more than a few bankruptcies.
You have drive, determination, patience and a positive attitude. When others throw in the towel, you are more determined than ever.
Failures don't defeat you. You learn from your mistakes, and use these lessons to succeed the next time around. Head, SBA economist, noted that studies of successful business owners showed they attributed much of their success to "building on earlier failures;" on using failures as a "learning process."
You thrive on independence, and are skilled at taking charge when a creative or intelligent solution is needed. This is especially important when under strict time constraints.
You like -- if not love -- your fellow man, and show this in your honesty, integrity, and interactions with others. You get along with and can deal with all different types of individuals.

2. Poor Management
Many a report on business failures cites poor management as the number one reason for failure. New business owners frequently lack relevant business and management expertise in areas such as finance, purchasing, selling, production, and hiring and managing employees. Unless they recognize what they don't do well, and seek help, business owners may soon face disaster. They must also be educated and alert to fraud, and put into place measures to avoid it.
Neglect of a business can also be its downfall. Care must be taken to regularly study, organize, plan and control all activities of its operations. This includes the continuing study of market research and customer data, an area which may be more prone to disregard once a business has been established.
A successful manager is also a good leader who creates a work climate that encourages productivity. He or she has a skill at hiring competent people, training them and is able to delegate. A good leader is also skilled at strategic thinking, able to make a vision a reality, and able to confront change, make transitions, and envision new possibilities for the future.

3. Insufficient Capital
A common fatal mistake for many failed businesses is having insufficient operating funds. Business owners underestimate how much money is needed and they are forced to close before they even have had a fair chance to succeed. They also may have an unrealistic expectation of incoming revenues from sales.
It is imperative to ascertain how much money your business will require; not only the costs of starting, but the costs of staying in business. It is important to take into consideration that many businesses take a year or two to get going. This means you will need enough funds to cover all costs until sales can eventually pay for these costs. This business startup calculator will help you predict how much money you'll need to launch your business.

4. Location, Location, Location
Your college professor was right -- location is critical to the success of your business. Whereas a good location may enable a struggling business to ultimately survive and thrive, a bad location could spell disaster to even the best-managed enterprise.
Some factors to consider:
• Where your customers are
• Traffic, accessibility, parking and lighting
• Location of competitors
• Condition and safety of building
• Local incentive programs for business start-ups in specific targeted areas
• The history, community flavor and receptiveness to a new business at a prospective site

5. Lack of Planning
Anyone who has ever been in charge of a successful major event knows that were it not for their careful, methodical, strategic planning -- and hard work -- success would not have followed. The same could be said of most business successes.
It is critical for all businesses to have a business plan. Many small businesses fail because of fundamental shortcomings in their business planning. It must be realistic and based on accurate, current information and educated projections for the future.
Components may include:
• Description of the business, vision, goals, and keys to success
• Work force needs
• Potential problems and solutions
• Financial: capital equipment and supply list, balance sheet, income statement and cash flow analysis, sales and expense forecast
• Analysis of competition
• Marketing, advertising and promotional activities
• Budgeting and managing company growth
In addition, most bankers request a business plan if you are seeking to secure addition capital for your company.

6. Overexpansion
A leading cause of business failure, overexpansion often happens when business owners confuse success with how fast they can expand their business. A focus on slow and steady growth is optimum. Many a bankruptcy has been caused by rapidly expanding companies.
At the same time, you do not want to repress growth. Once you have an established solid customer base and a good cash flow, let your success help you set the right measured pace. Some indications that an expansion may be warranted include the inability to fill customer needs in a timely basis, and employees having difficulty keeping up with production demands.
If expansion is warranted after careful review, research and analysis, identify what and who you need to add in order for your business to grow. Then with the right systems and people in place, you can focus on the growth of your business, not on doing everything in it yourself.




7. No Website
Simply put, if you have a business today, you need a website. Period.
In the U.S. alone, the number of internet users (approximately 77 percent of the population) and e-commerce sales ($165.4 billion in 2010, according to the US Department of Commerce) continue to rise and are expected to increase with each passing year.
At the very least, every business should have a professional looking and well-designed website that enables users to easily find out about their business and how to avail themselves of their products and services. Later, additional ways to generate revenue on the website can be added; i.e., selling ad space, drop-shipping products, or recommending affiliate products.
Remember, if you don't have a website, you'll most likely be losing business to those that do. And make sure that website makes your business look good, not bad -- you want to increase revenues, not decrease them.
When it comes to the success of any new business, you -- the business owner -- are ultimately the "secret" to your success. For many successful business owners, failure was never an option. Armed with drive, determination, and a positive mindset, these individuals view any setback as only an opportunity to learn and grow. Most self-made millionaires possess average intelligence. What sets them apart is their openness to new knowledge and their willingness to learn whatever it takes to succeed.

Sam the Coach

Tuesday, June 14, 2011

Procrastination Doesn't Make Perfect : “Procrastination is the thief of time.”

Perfectionists are often great procrastinators. Having stalled until the last minute, they tear into a project with dust flying and complaints about insufficient time. Perfectionist-procrastinators are masters of the excuse that short notice kept them from doing the quality job they could have done.

But that’s hardly the only variety of procrastination—which is one of my own favorite hiding places when I try to blame external conditions instead of myself for some difficulty. Mine comes with a gnawing feeling of being fatigued, always behind. I try to tell myself that I’m taking it easy and gathering my energies for a big new push, but procrastination differs markedly from genuine relaxation—which is truly needed. And it saves me no time or energy. On the contrary, it drains both, leaving me with self-doubt on top of self-delusion.

We’re all very busy. Every day we seem to have a giant to-do list of people to see, projects to complete, e-mails to read, e-mails to write. We have calls to answer and calls to make, then more calls to people with whom we keep playing voice-mail tag.

Henri Nouwen’s classic book Making All Things New likens our lives to “overstuffed suitcases that are bursting at the seams.”

Feeling there is forever far too much to do, we say we’re really under the gun this week. But working hard or even heroically to solve a problem is little to our credit if we created the problem in the first place. When most people refer to themselves as being under the gun, they want to believe, or do believe, that the pressures and problems are not of their own making. In most cases, however, the gun appeared after failure to attend to business in good time. Instead of being proactive early, they procrastinated until the due date became a crisis deadline.

By the Inch Life’s a Cinch, by the Yard It’s Hard
One of the best escapes from the prison of procrastination is to take even the smallest steps toward your goals. People usually procrastinate because of fear and lack of self-confidence and, ironically, become even more afraid when under the gun. There are many ways to experiment and test new ground without risking the whole ball game on one play.

Experience has shown that when people go after one big goal at once, they invariably fail. If you had to swallow a 12-ounce steak all at once, you’d choke. You have to cut the steak into small pieces, eating one bite at a time. So it is with prioritizing. Proactive goal achievement means taking every project and cutting it up into bite-sized pieces. Each small task or requirement on the way to the ultimate goal becomes a mini-goal in itself. Using this method, the goal becomes manageable. When mini-mistakes are made, they are easy to correct. And with the achievement of each mini-goal, you receive reinforcement and motivation in the form of positive feedback. As basic as this sounds, much frustration and failure is caused when people try to “bite off more than they can chew” by taking on assignments with limited resources and impossible timeline expectations.

Two major fears that sire procrastination are fear of the unknown and fear of rejection or looking foolish. A third fear—of success—is often overlooked. Many people, even many executives, fear success because it carries added responsibility that can seem too heavy to bear, such as setting an example of excellence that calls for additional effort and willingness to take risks. Success without adequate self-esteem or the belief that it is deserved also can create feelings of guilt and the result is only temporary or fleeting high achievement. Playing it safe can seem more tempting than a need to step forward with determination to do it now and do it right.

The Motivation to Achieve

Years ago, a young mother about to go out with her husband prepared to feed their baby before they left. The husband became impatient as she started her daily routine of mashing vegetables through a strainer. Tired of him standing over her with the car keys in one hand and the other hand on the door knob, she turned the task over to him. Within a few minutes, the strainer, peas, carrots, and bowl ended up in his lap. As he changed clothes, he reasoned that there must be a better way to prepare baby food and that there must be a lot of frustrated parents who didn’t enjoy the monotony of straining fruit and vegetables three times a day. Soon, they began discussing the idea of designing machinery to strain the food in a factory and sell it already prepared.

Fortunately, the young father and his dad owned a small canning plant, but it was difficult to sell the older man on the concept. One mistake that harmed a child would destroy everything it had taken them a lifetime to build.

And what about the expense of marketing surveys, developing and financing new machinery, packaging, getting stores to accept the products, and getting parents to buy something totally new at a price that would be both affordable and profitable? You’ve been through this in your own organization or family when someone comes up with an idea that colors outside the lines! I see you’re nodding affirmatively.

The risk was enormous, but in the end, they went forward with their idea because it filled a need they understood firsthand. They had the skills and experience. And the market was so vast that the positive benefits far outweighed the negative factors. One year after Dan Gerber dumped the strainer of cooked vegetables into his lap, the Gerber Products Company introduced its first five baby foods to the market. The point of the story is that, so often, an idea becomes a goal when we realize it meets a need in our own lives and the lives of others. Our motivation to achieve this goal is dependent upon how strong our need is and whether or not we have the determination, optimism and toughness to follow through and bring our ideas to fruition.

Ask Yourself: Do I have the Winner's edge? Remember:

The Edge is not a gifted birth. The world is full of wasted talent.

The Edge is not academic degrees. Education is important, but the world is full of educated misfits.

The Edge is not luck. If it were, Las Vegas would be a ghost town.

The Edge is not capital. Many of today’s self-made multimillionaires started building their fortunes with under $5,000.

The Edge is all attitude. Attitude, not aptitude, is the criterion for success.

Make it Happen!

Monday, June 13, 2011

The Four Emotions That Can Lead to Life Change

Emotions are the most powerful forces inside us. Under the power of emotions, human beings can perform the most heroic (as well as barbaric) acts. To a great degree, civilization itself can be defined as the intelligent channeling of human emotion. Emotions are fuel and the mind is the pilot, which together propel the ship of civilized progress.

Which emotions cause people to act? There are four basic ones; each, or a combination of several, can trigger the most incredible activity. The day that you allow these emotions to fuel your desire is the day you’ll turn your life around.

Disgust
One does not usually equate the word “disgust” with positive action. And yet properly channeled, disgust can change a person’s life. The person who feels disgusted has reached a point of no return. He or she is ready to throw down the gauntlet at life and say, “I’ve had it!” That’s what I said after many humiliating experiences at age 25. I said, “I don’t want to live like this anymore. I’ve had it with being broke. I’ve had it with being embarrassed, and I’ve had it with lying.”

Yes, productive feelings of disgust come when a person says, “Enough is enough.”

The “guy” has finally had it with mediocrity. He’s had it with those awful sick feelings of fear, pain and humiliation. He then decides he is “not going to live like this anymore.” Look out! This could be the day that turns a life around. Call it what you will: the “I’ve had it” day, the “never again” day, the “enough’s enough” day. Whatever you call it, it’s powerful! There is nothing so life-changing as gut-wrenching disgust!

Decision
Most of us need to be pushed to the wall to make decisions. And once we reach this point, we have to deal with the conflicting emotions that come with making them. We have reached a fork in the road. Now this fork can be a two-prong, three-prong, or even a four-prong fork. No wonder that decision-making can create knots in stomachs, keep us awake in the middle of the night, or make us break out in a cold sweat.

Making life-changing decisions can be likened to internal civil war. Conflicting armies of emotions, each with its own arsenal of reasons, battle each other for supremacy of our minds. And our resulting decisions, whether bold or timid, well thought out or impulsive, can either set the course of action or blind it.

I don’t have much advice to give you about decision-making except this: Whatever you do, don’t camp at the fork in the road. Decide. It’s far better to make a wrong decision than to not make one at all. Each of us must confront our emotional turmoil and sort out our feelings.

Desire
How does one gain desire? I don’t think I can answer this directly because there are many ways. But I do know two things about desire:

A. It comes from the inside not the outside.
B. It can be triggered by outside forces.

Almost anything can trigger desire. It’s a matter of timing as much as preparation. It might be a song that tugs at the heart. It might be a memorable sermon. It might be a movie, a conversation with a friend, a confrontation with the enemy, or a bitter experience. Even a book or an article such as this one can trigger the inner mechanism that will make some people say, “I want it now!”

Therefore, while searching for your “hot button” of pure, raw desire, welcome into your life each positive experience. Don’t erect a wall to protect you from experiencing life. The same wall that keeps out your disappointment also keeps out the sunlight of enriching experiences. So let life touch you. The next touch could be the one that turns your life around.

Resolve
Resolve says, “I will.” These two words are among the most potent in the English language. I WILL. Benjamin Disraeli, the great British statesman, once said, “Nothing can resist a human will that will stake even its existence on the extent of its purpose.” In other words, when someone resolves to “do or die,” nothing can stop him.

The mountain climber says, “I will climb the mountain. They’ve told me it’s too high, it’s too far, it’s too steep, it’s too rocky, it’s too difficult. But it’s my mountain. I will climb it. You’ll soon see me waving from the top or you’ll never see me, because unless I reach the peak, I’m not coming back.” Who can argue with such resolve?

When confronted with such iron-will determination, I can see Time, Fate and Circumstance calling a hasty conference and deciding, “We might as well let him have his dream. He’s said he’s going to get there or die trying.”

The best definition for “resolve” I’ve ever heard came from a schoolgirl in Foster City, California. As is my custom, I was lecturing about success to a group of bright kids at a junior high school. I asked, “Who can tell me what ‘resolve’ means?” Several hands went up, and I did get some pretty good definitions. But the last was the best. A shy girl from the back of the room got up and said with quiet intensity, “I think resolve means promising yourself you will never give up.” That’s it! That’s the best definition I’ve ever heard: PROMISE YOURSELF YOU’LL NEVER GIVE UP.

Think about it! How long should a baby try to learn how to walk? How long would you give the average baby before you say, “That’s it, you’ve had your chance”? You say that’s crazy? Of course it is. Any mother would say, “My baby is going to keep trying until he learns how to walk!” No wonder everyone walks.

There is a vital lesson in this. Ask yourself, “How long am I going to work to make my dreams come true?” I suggest you answer, “As long as it takes.” That’s what these four emotions are all about.
By Jim Rohn

Tuesday, June 7, 2011

Procrastination

 
Procrastination is the thief of time.
 
In your decisions, your relationships, your plans and ambitions, keep in mind that the value you receive from anything is in direct proportion to the value you put into it.
 
Unless commitment is made, there are only promises and hopes, but no plans.
The best way to predict the future is to create it.
 
-- Peter Drucker --
 
With confidence, you can reach truly amazing heights;
without confidence, even the simplest accomplishments are beyond your grasp.
 
-- James Loehr  --

 
In the heating and air conditioning trade the point on the thermostat in which neither heating nor cooling must operate is called The Comfort Zone.
It's also known as The Dead Zone.
 
-- Russell Bishop --
 
 
Let's start with the solutions
 
 
Results don't happen randomly. They have specific causes. When you're not getting the desired results, pay close attention to the causes you're bringing about.
 
No one anywhere in the world has more time than you do in the next 24 hours. It's plenty of time to plant the seeds for magnificent accomplishments. So get started right this minute!
 
When you expect the day to be productive, you'll find yourself acting to satisfy that
expectation. Expect the best, and then commit to following those expectations.
 
An Insight
Procrastination is reinforcing - every time you delay, it reinforces your negative attitude toward that task. Every time you put off something you dislike, you:
1. strengthen the habit of not doing;
2. practice avoidance instead of participation;
3. avoid acquiring training and skills, and
4. indoctrinate yourself with fears.


Active participation in anything tends to give you a positive attitude toward that activity; inactivity helps acquire an unfavourable attitude.
In other words, the reason you dislike calculus is because it's hanging over your head, worrying you. Since you haven't acquires skills in it, you can't do the assignments, so why try? Also, there's a test coming up soon, and you MUST do well on it -- except you know you can't. Suddenly everything seems terribly unfair (class is too hard) and you become angry towards the teacher (he goes too fast, and he seems indifferent to my struggles.) The truth is, the sooner you get involved in your studies, the better you will feel.
 
1. How do you eat an elephant? One bite at a time! Break larger projects into manageable "bites" and create a timeline for yourself to accomplish these smaller tasks.
2. Remember that each project expands to the time allotted to it, so set a limit for yourself: "I am going to return all my phone calls in one hour." "I will file papers for 30 minutes." "I will spend 15 minutes picking up around the house." Set a timer. You will be amazed how much you can get done when you focus your time.

3. Check your self-talk. Do you frequently say, "I gotta...," "I should...," or "I have to..."? Replace this self-talk with "I choose to..." and recognize that you are at choice about what you do. If you don't choose to do it, don't do it!

4. Eat a live toad first thing in the morning, and nothing worse will happen to you the rest of the day. Tackle that "toad" -- the task you have been putting off, the one that's hanging over your head -- because it will lift an immense load and you will feel much more productive.

5. Train yourself to trim the F.A.T. When papers come into your office or home, give yourself these three choices: File, Act, Toss. (Note that "I'll just put it here for now" is not one of the choices.)

6. Relieve yourself of the stress caused by all of the clutter in your home and office by setting up some systems to manage the paper in your life.

7. Make a weekly appointment with yourself to plan your coming week. During your planning session, schedule important activities and tasks so you have a concrete plan for following through with your intentions.

8. When planning your time, include both urgent (time- sensitive) and non-urgent but important activities in your plan. An example of an urgent activity might be a meeting or a project with an upcoming deadline. A non-urgent activity might be exercise or relationship-building -- something important but not time-sensitive or deadline-driven.
9. Make appointments with yourself to get administrative work done, such as paying bills or catching up with your reading. Treat this time as you would an appointment with someone else.

10. Take 15 minutes at the end of each day to put things away and look at the calendar for the next day. Gather what you need ahead of time so you will be prepared for tomorrow.
Other action ideas...
 

 
 
 
EXPLORE: What are you resisting? What warning signals are present when you resist? What is the ultimate fear behind these warning signals? What's the worst thing that could happen? Even if the worst thing did happen, could you live with it?


ASSESS: What are your options? What action do you choose to take? What's next for you? What support could you get to help you?


FOCUS: What is most important to you? What does the end result look like? What steps are required to get you there?

 
Quotes of the Month

"You will never find time for anything. You must make it."
-Charles Buxton

"You miss 100% of the shots you don’t take."
-Wayne Gretzky

"Killing time murders opportunities"
-Anonymous
 

Tuesday, May 31, 2011

Thoughts to Ponder!

Life is a do-it-for-others, do-it-yourself project.

Stop stewing and start doing! Take action TNT. Today, Not Tomorrow.

Life is not accountable to us for meaning; we are accountable to life!

Don’t put success and happiness on layaway. Do it now!

Everything that is past is either a learning experience to grow on, a beautiful memory to reflect on, or a motivating factor to act upon.

You have been given the greatest power in the world, the power to choose.

Giant oaks do grow from little acorns; but first you must have an acorn!

By thinking and acting affirmatively in this minute, you will influence the hour, the day, and in time, your entire life.

You are your own scriptwriter and the play is never finished, no matter what your age or position in life
.

Thursday, May 19, 2011

Engage your customers!

“Five Ways to Engage with your Customers”
 
The president of Harley-Davidson got it right when he said “The more you engage with customers the clearer things become and the easier it is to determine what you should be doing”.
It’s become very easy for your customers to ignore you. These days, if you don’t engage with them, they’ll by-pass you. They’ll turn off the TV, delete your email and fast-forward your podcast. It is all about them. They choose. They determine your brand value, they listen to their friends on twitter talking about a bad experience and they research new products by visiting user forums.
So where does this leave the small business? With some valuable opportunities for customer engagement. Here are a handful of ideas to get you started.
Listen
Start connecting with your customers by listening. This means acting like a customer. Ring your own phone number. Stand in your own queue. Understand them. Invite them to participate in improving your product or service. Educate them and inspire them, but mostly join their conversation. Observe conversations in your sphere. Listen to your target market and the experts in your industry on blogs, tweets and other social media forums.
Look
Look at your communications. For example, does your website talk about the customer and their problems and how you solve them or does it talk about YOU? Remember no one cares about you, nor do they care about anybody else. They care about themselves. So don’t try to be all things to all people. Just communicate to your select target market and explain how you can help them.
Act
Act on all feedback, good or bad. Show you care. A blog is a good way to join the conversation with your customers, but there’s no point if you don’t act on the information you receive. You have to show that you’re invested and that you care.
Create
Create opportunities for your customers and team to communicate and build an extended online community. They’re going to have the conversation with or without you, so you may as well be listening and providing input. Marketing is now a dialogue and two-way conversation that requires listening. If you are good at creating these opportunities, you’ll empower your customers to create their own ideal products and services, review yours, provide feedback and nurture your business.
They’ll tell you how they want their information, and what they want. You just have to listen and be willing to share the process.
Evaluate
Evaluate your on-line community and strategy and make sure it suits your customer needs. There are many ways to join or start a conversation and you can’t give your attention to all of them. Pick the medium and style that best suits your customers and make a start today.