Your ability to SCALE is an indicator of growth potential

One of the cornerstones of a business that experiences healthy growth is its ability to scale or increase its volume without impacting the contribution margin (Contribution margin= revenue - variable costs). The ability to do more with less. If you haven’t created scalability in your business, you’ll always struggle with growth and especially with breaking through revenue ceilings. If this becomes an issue then it doesn’t matter how much marketing or sales support you may have. If you’re business isn’t set up to scale, you’ll max out on the number of customers you can serve and cap out on revenue.

Even before you launch your business, you’d have a difficult time getting an investor or bank to bank you if your revenue potential was limited.

Here are some key areas you may want to avoid as a start-up or small business:

1. Trading time for dollars.

You may have started out getting paid for your individual services but at some point you’ll want to be compensated for VALUE, not time. If you want to put a price on your time, it would then become a premium item. This could include moving into group facilitation and away form one-to-one experiences. Perhaps turn a process or instruction into an online automated activity, a book, or audio/video experience. The opportunities to transform a talent into a scalable product or service are bountiful. People will then be able to compensate you for value, not time.

2. Intellectual Property that serves a finite purpose.

The technical word here is obsolescence which is when something loses values because the world around it (tastes) have changed. Streetlamps and streetlamp lighters became obsolete when electricity was invented. The pet rock became obsolete after it’s first wave. Whatever your “it” is, make sure it has the ability to expand, grow and evolve as time goes on. Rather than a title for one book, Jack Canfield and Mark Victor Hansen created an anthology franchise of Chicken Soup books that are still breaking records. Over the years, how many variations of Windows have you had to purchase for your computer?

3. Lack of automation.

If your dream is to help as many people as possible, then you’ll want to serve your market without limitation and in a way that is most cost effective to the business. Virtually every area of your business can have some type of automation to increase efficiencies and output--- more people being served! Start with manufacturing then on to the delivery of your goods and services. Order processing, follow-up and marketing are key areas to look at as well. Also, is there any continuity with existing customers or does your relationship end after a sale? This is why even a follow up email Autoresponder system can make such a difference.

4. Lack of trained personnel.

That’s often a bottleneck in a business…especially if the CEO is wearing all the hats and hasn’t taken the time to train & delegate. Make sure there are people around you that you can offset responsibilities too. Outsource these functions initially if you’re a start-up but treat it as a priority, not a secondary thought.

5. Undefined business model.

It’s difficult to create scalability if you’re just trying make money from a variety of sources but haven’t tied it all together. What’s at the core of your business? Is it just you or is there a website or some other presence that’s independent of you?

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Use the Triple S formula to grow your business

I can usually tell very quickly what kind of revenue someone has and how sustaining their growth will be by using my Triple S formula:

* Systems

* Structure

* Scalability

Without it, you may feel that you own a job and work hard to stay ahead.
Without enough of the Triple S, you may not be able to break through revenue thresholds.

Want a million dollar business? Think Triple S!

We'll be discussing what it means and how you can have all this on our next Abundance Mastermind Group Call.

Tuesday, October 20th at 12pm pacific/ 3pm eastern.
You can join this call and next month's call for FR*EE when you purchase my ebook:

"Passion To Prosperity: Instant Ways To Profit From Your Skills and Talents".
http://passion2prosperitybook.com

During our call, I'll lay out key areas of your business where you want to create systems, structure and scalability to help you break through any revenue plateuas you may be experiencing.

I'll also take questions about how to integrate it in yours.
I'll help you shift your thinking about how to create that million dollar business AND you'll have specific action steps to take after the call.

Can funding too early on actually slow you down?

You may be scratching your head with this title but hear me out: if you’re just starting your business or in an early growth phase, throwing too much money into the mix may not be the best thing to do. Many people think what’s slowing them down is lack of funding but actually the opposite can be true if you recognize the gift that’s before you and shift your thinking accordingly. Here are some reasons why. If you realize any of these could be true for you, perhaps take the money out of the equation to gain new perspective.

Here are some issues that I’ve seen crop up with those who had access to unlimited funding early on:

1. The people on your team may be more interested in a paycheck than your vision.
Oprah says it best “everyone would like to ride in the limo with you but you really want people who would also ride the bus with you too.” It’s easier to see who’s in it for the money or the dream when times are lean. Surround yourself with these people early on when it’s easier to make the distinctions.


2. Rushing into production before “selling” your concept.
When funds are limited, you’re inclined to do more testing with your product or service to see if this is what your market REALLY wants. I’ve seen way too many people invest too much early on into production without properly understanding their markets only to have to go back to the drawing board over and over again. The saying “measure twice, cut once” applies here.

3. Lack of validation for your concept.
The business planning process is the best way to sketch out your core business model for others to see and improve upon and to “dry test” in the market BEFORE launching. What are your primary revenue streams, who are your customers, exactly HOW will your get your product or service in their hands and how much will this cost? Those with unlimited funds often skip the planning and testing part and get into the DOING part sooner than later which can prove costly.

4. Managing too much initial growth.
I’m all for planning and thinking big but there’s nothing wrong with taking small steady steps to achieve your goals. You want to manage growth by focusing on 1-2 core revenue streams at a time, creating systems, structure and scalability so that you can become unstoppable. Throwing funds at a situation for rapid growth does not ensure success. Creating the proper infrastructure, having a product customers really want and topping that with a great sales and marketing plan does foster success.


5. Loss of creativity and innovation.
Some of our greatest solutions are derived when we’re under pressure, have limited resources and must improvise, or have naysayers telling us it can’t be done. Has that ever happened to you? This is precisely the moment when we create that “entrepreneur’s magic” and become the “MacGyver” of our business. Conditions must be ripe for it and I’ve found that type of innovation and creativity doesn’t have as often when there are unlimited resources at our disposal.

6. Less apt to seek out guidance
I notice that people that have limited funds are more likely to actively and creatively seek out support and ask lots of questions. And there are plenty of people who will graciously and truthfully answer your questions if you should ask! I have found that if you are paying all your advisors, they are less likely to be truly forthcoming with their opinions for fear of losing their paid engagement.

So next time you think “if only I had the money” perhaps be grateful at that moment for the opportunity to really test the merits of your idea and to enroll people in your vision, not just a paycheck.

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Ways to build VALUE in your business, part II

Many people think the value in their business is primarily tied to revenue only so they tend to undervalue their worth when it comes time to sell. I’ve spoken to many CEO’s (including yours truly) who felt they left “too much on the table” when it was time to sell their business or negotiate a deal because they didn’t take many other factors into consideration.

This is also an important issue when it’s time to attract investors or put together strategic alliances. The more you learn to value every aspect of your business, the more bargaining power you have when it come time to negotiate. There are literally dozens of ways to build value in your business---we discuss many of these in our Protégé Program. Here is part II of my list...

6. The people on your team

Relationships are important and can be used as a bargaining chip in many negotiations. Includes your advisors, producers, creatives, sales stars, as well as who’s in your “golden rolodex”.

7. Goodwill ~ “Blue Sky”

What is your name worth to you? Have you been involved in community outreach? Featured in the media? Your reputation, good name and the credibility of your business can increase your value.

8. Access to capital and other resources

Do you have access to resources you may not have fully utilized yet but could be considered a valuable asset to someone that wants to do business with you.

9. Aged corporation

Age before beauty applies here! The longer your company has been in existence, the easier it is to establish business lines of credit…and take advantage of other perks. Often times, a younger company may buy an existing shell of a company for this very reason.

10. Ability to create new Intellectual Property

If you have patents, trademarks or other intellectual property that hasn’t been fully expressed or developed, the potential of its development may be worth more than you know. Case in point if you own a PC, how many versions of Windows have you purchased since you’ve had your first computer?

Reserve a spot in Maria’s 16-week Business Building Protégé Program and walk step-by-step into creating your dream business http://passion2prosperity.com

Ways To Build Value In Your Business, part I

Many people think the majority of value in their business is tied to revenue only so they tend to undervalue their worth when it comes time to sell. Most of the valuation formulas deal strictly with revenue as well. However, I've spoken to many CEO's (including yours truly) who felt they left "too much on the table" when it was time to sell their business or negotiate a deal because they didn't take many other factors into consideration.
This is also an important issue when it's time to attract investors or put together strategic alliances. The more you learn to value every aspect of your business, the more bargaining power you have when it come time to negotiate. There are dozens of ways to build value in your business and we discuss many of these in our Protégé Program. Here are a few that will help you negotiate higher fees, attract investors, bigger deals, and ultimately sell for a premium price.

1. Intellectual property (IP)
Take inventory of not only your patents, trademarks, copyrights, and trade secrets but also brand identity, websites, domain names, blogs, and social network profiles. You can create as much IP as you want and the more you do with them, the more valuable it becomes.

2. Tangible assets
What else do you own that is attached to your business? Includes real estate, inventory, collectibles, and so forth. I remember years ago a friend sold his business including the building it came with. In the final purchase contract, his broker forgot to exclude the huge billboard that sat on top of the building and produced an extra $22,000 a month in revenue. Therefore it was automatically conveyed to the new owner and my friend literally gave up that revenue because of an oversight. Ouch!

3. Contracts and other agreements
You may have agreements that could be tied to current or future revenue, produce residual revenue or allow for something of value other then direct revenue. COuld be the use of an image, name, access to a resource, etc. During the time I sold my first business, we had an existing contract to provide services to a major hotel chain. The contract was new and we hadn't yet finished the rollout to all their locations but included the potential of it in the final purchase price. If you're doing business with people right now without a writen agreement, consider putting one in place ASAP. Go to http://manifestsuccessplanning.com and download Jian's Business Contracts (rigth side of page) for over a hundred templates.

4. Customer or Subscriber list
Your list is golden and would be coveted by many! It can be a tremendous bargaining chip in a sale or partnership negotiation. The people on your list may not all be customers but have the potential to be which translates into revenue. Go to http://intentionalincome.com and click on our ecommerce listbuilding tools.

5. Systems
You're adding value anytime you've created backend infrastructure in sales, marketing, operations or production. Same thing if you've systematized any process you do in your business or have brought offline services online. Creating automation and structure in business is a big aspect of the work I do with clients and is what paves the way for a multi-million dollar business. That's why I like to use Kickstart Cart (1ShoppingCart private label) as one of the automation solutions for my business.

Reserve a spot in Maria's 16-week Business Building Protégé Program and walk step-by-step into creating your dream business http://passion2prosperity.com/program

How To Stay ON The Road To Success!

We're so hard on ourselves! I've met so many entrepreneurs who regularly chastise themselves for "not knowing better" or taking longer to launch, or needing more money then originally thought. Pul-eeze! How are you supposed to know everything? The fact is, no one really taught us "success" in school and I don't know about you, but Business Ownership 101 was not offered as a class in grammar school or high school. In fact, it's only been in the past few years that they're actually offering more entrepreneurial classes in school. The road to success is not really a ROAD as far as I'm concerned. It's more like a LABYRINTH with lots of twisty turns---some seem to go nowhere and others take you one step closer to the prize. You can really learn to enjoy those twisty turns if you just start easing up on the self judgement, breath e, be more compassionate with yourself and know it's more about the journey. So while most entrepreneurs barely know what they're doing when they first start out in business (it's so true), here are things you can do to keep yourself moving forward successfully:

1. Don't wait until it's perfect
Don't hold back. Start bringing your dream to life by putting your product or service out there in one form or another and let it evolve from there. You may not have a product ready for instance, but you can easily start building your markets.

2. Surround yourself with people who model success in different areas
Don't operate in a void. Seek out those who really know their stuff and are willing to share their wisdom and open doors to new opportunities. Ask for help, ask lots of questions..always!

3. Focus on your passion, not the money
Let your desire to be part of something bigger than you be your driving force and you'll maintain the momentum you'll need to see it through. Money is not a long term motivator. Focusing on your PASSION will bring you more joy and inspiration.

4. It's none of your business what others think about you
Stay true to yourself, your passion, what you know is right, your plan, the desire to be a trailblazer who thinks outside the box---all of that---and don't let others bring you down or insist you can't do something. Always consider the source if you're ever going to react to what others may say about you.

5. Have a "no matter what" vision
You won't always know how to do something---you couldn't possibly know it all--- but you should have a clear image of what you really want. Stay focused and committed to THAT and you'll always be guided to the next step.

6. Every resource you need is within your grasp
If you really pay attention, you'll soon realize that every people or material resource you'll need to accomplish your goals, including money, is close by and well within your grasp. It's how God works with a great idea and a driven entrepreneur.

7. Keep immersing yourself in learning and growing as a human being
It's not just about doing your business--- you'll also want to regularly invest in your education--especially in the areas of finance, sales, marketing, spiritual and personal development--- so that you can become more strategic and intentional about your success and not so much "flying by the seat of your pants".

8. Be creative and solutions based
That's also a nice way to say never take no for answer. Be the MacGyver of your business. If you feel that you're lacking in resources, find a new way of acquiring them. Know there's a solution for every challenge!

Reserve a spot in Maria's 16-week Business Building Protégé Program and walk step-by-step into creating YOUR dream business http://passion2prosperity.com

Are you working with STRATEGIES?

I spoke to a new client today who'd like to transform her talents into a "real business."
She thought she had been working way too hard, fleeting revenue, & not getting the results she wanted.

Here are some of the priority items we're working on. See if you can relate:

* Using a strategic blueprint to form an organized marketing effort.
*Moving her business online as much as possible to take advantage of SEM.
*Integrating the most appropriate automation technology tools.
*Creating a scalable back end foundation to manage a hundred or a million clients.
*Creating ongoing followup email campaigns for customers and collaborators.
*Plan to create multiple, passive revenue streams that allows her to attract funding more easily.

GET THIS FOR YOURSELF: Join us for part 3 of my FR*EE "Passionate Business Telesummit" on Thursday 8/13/09.
http://passionatebiz.com/ <-- click here for details