Explode YOUR Business!
Using Make YOUR Mark’s TOP 10 Growth Secrets!
Secret #1: Many of us as entrepreneurs start our business with incredible passion and eventually end up doing operations, production and management tasks that we truly do not enjoy. Always be passionate about your role in your business and hire people to do the rest.
Secret #2: Always have a plan for your business. If you fail to plan, you plan to fail. What are your personal goals and the goals for your business? Always know why you are in your business and keep reminding yourself of your goals. In fact, I say call goals “promises” instead, as they have a much stronger emotional impact and meaning. Keep true to your promises to yourself!
Secret #3: Do you know your market? Who are you selling to? You cannot be everything to everyone. So, what niche markets are you after? You may have a few product lines and/or services and each may have their own or similar niche markets. Determine exactly what they are for your business!
Secret #4: Do you truly know what your cash flow is in your business… and I mean truly know?
At MYM we have a detailed 12 month cash flow analysis tool that lets us know exactly when our clients may encounter cash crunch or cash rich times in their businesses. Allowing you to relax and properly prepare every aspect of your business for growth this year.
Secret #5: Do you know exactly what your break-even is for your business?
The formula is very easy and is critical to truly knowing what revenue you have to make in order for your business to break-even every month. Take your revenue and minus the “cost of goods” from it and divide that number by the revenue again. This will yield your gross margin. Now, take your total overhead (salaries, expenses, rent, phones, etc.) and divide it by the gross margin and this is your true break-even.
Example: You sell computers for $500 each and they cost you $250. Your gross margin is ($500 – $250)/$500 = 0.50 (50%). If your salary and over head is $3,000 per month, your break-even is $3,000/0.50 = $6,000. This means you have to sell $6,000 worth of computers (product) just to cover your costs and only thereafter do you start making money!
Secret #6: Many entrepreneurs work extremely hard in the beginning of their businesses and do not take home any income. If you calculate your break-even above and do not include your income… you are truly not breaking-even. Always include your income as the company owner.
Secret #7: Always maintain full control over the bank accounts and cash in your business. Often we gain trust with our bookkeepers and start to let them take control. Here are the items to always control in your business:
- Ensure that all cashed cheques that are returned to you by your bank are only opened by you as the company owner. This allows you to check all the signatures and ensure that each cheque is to a known vendor.
- Never let anyone have blank cheques. Only give your bookkeeper the right number of cheques for each cheque run. Otherwise keep all cheques locked away.
- Most important! If your bookkeeper will not take more than 7 days consecutive leave, this could be a flag that something may be up! Once a year hire a temp. bookkeeper that has no personal relationship with your bookkeeper to double check everything – very important!
Secret #8: In the 21st century many entrepreneurs and business owners want to give their key employees ownership in their businesses or have them earn a percentage of the company in order to keep them. Giving shares can become very complex especially if you start to have problems. Think of profit share which essentially gives them the same thing without them becoming a shareholder.
Secret #9: We are all in our own businesses to make money, change the lives of our family and most of all to have fun. When you first start out you are probably the most poorly paid person in your office, working many hours for very few dollars (working IN your business). With the proper plan in place you can see when this will switch over and give you incredible money for very few hours worked (working ON your business). Being in your own business is a tenacious game. Yet, with a plan in place and promises set, your future will be extremely exciting.
Secret #10: When putting your plan together always be looking at your exit strategy as the owner. If you are selling a product or service, how can you create an ongoing income stream (consumable or residual) that will build over the years so that eventually your monthly income is highly predictable and an easy asset to sell to a future buyer of your business? The key strategy here is that you should set your business up in the beginning with the intention of selling. Highly systematized business with good ongoing residual/consumables income is very attractive to a potential buyer.
Disclaimer: The views expressed in this report are that of Make YOUR Mark and not meant to be legal or accounting advice in any way or form. Please seek the correct advice from your local legal and accounting professionals.
you can email colin at Colinsprake@gmail.com
Author: Colin Sprake is the CEO of Make Your Mark, a Canadian company of live seminars, online entrepreneur academy and live accountability groups that have helped 10,000’s of Entrepreneurs achieve rapid results in small business growth and development. Colin is a best-selling author of ‘Entrepreneur Success Recipe’ and trains for BMO, Sun Life Financial, Scotia Bank, T.D. Bank and lives by the tagline Business With Soul – putting heart back into business!
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