Everyday someone hangs out their shingle declaring they are in business. It is a noble idea, a little exciting, and some admit they enter with a little too much optimism and not enough planning. Many have been sold on the idea that if they want to be wealthy they have to start their own business or invest in real estate. But, do some enter business without really thinking and planning it out? Yes.
Businesses require planning or a person will jump from idea or strategy to another with little results to show for it in the end. It is one thing to sell stuff on the side on eBay, but the real money makers have a plan to carry out their eBay business.
What are some things that a person starting a business needs to plan?
1. What is the item for sale? Is it a service or product?
2. Who wants that item? Is it for businesses or consumers? In other words, who is the target audience?
3. What is the price point? How much does it cost to buy?
4. How will it get to the buyer? Is it digital, a hard item, or in-person product?
5. How will buyers know the item exists? What kind of marketing and promotion will be done, or is it all word of mouth or referrals?
6. Is the business legal with all proper licensing, taxes, etc., done?
Why are people so confused or turned around when starting a business? One of the problems some businesses owners encounter on social media sites is the temptation to drop their strategies for those of self-appointed gurus; although some admit to feeling overwhelmed with all "choices" they seem to have.
This group tends to ditch easy small ticket items to become "coaches," or run high ticket programs, but have no real plan in place to deal with slow times or growth. Others fall for the trap of the 4 hour work week illusion. This is the idea that someone can become independently wealthy just working 4 hours per week on their business. The problem is this is pretty much a myth.
Finally, some new business owners listen to people who are wannabes instead of listening to the successful. It stands to reason that if a person wants to know what it is like in Hawaii, they should ask someone who has been there, not the person who just looked at a picture, yet many solo business owners fall for the big talkers instead of the people with proven results.
It may also be an ego thing at work in not listening to those who have done it, but it is at the costs of some solo business owners spending a lot of time chasing rabbits instead of collecting money from paying customers.

Business

6 Questions to Ask Before Starting a Business

Everyday someone hangs out their shingle declaring they are in business. It is a noble idea, a little exciting, and some admit they enter with a little too much optimism and not enough planning. Many have been sold on the idea that if they want to be wealthy they have to start their own business or invest in real estate. But, do some enter business without really thinking and planning it out? Yes.
Businesses require planning or a person will jump from idea or strategy to another with little results to show for it in the end. It is one thing to sell stuff on the side on eBay, but the real money makers have a plan to carry out their eBay business.
What are some things that a person starting a business needs to plan?
1. What is the item for sale? Is it a service or product?
2. Who wants that item? Is it for businesses or consumers? In other words, who is the target audience?
3. What is the price point? How much does it cost to buy?
4. How will it get to the buyer? Is it digital, a hard item, or in-person product?
5. How will buyers know the item exists? What kind of marketing and promotion will be done, or is it all word of mouth or referrals?
6. Is the business legal with all proper licensing, taxes, etc., done?
Why are people so confused or turned around when starting a business? One of the problems some businesses owners encounter on social media sites is the temptation to drop their strategies for those of self-appointed gurus; although some admit to feeling overwhelmed with all "choices" they seem to have.
This group tends to ditch easy small ticket items to become "coaches," or run high ticket programs, but have no real plan in place to deal with slow times or growth. Others fall for the trap of the 4 hour work week illusion. This is the idea that someone can become independently wealthy just working 4 hours per week on their business. The problem is this is pretty much a myth.
Finally, some new business owners listen to people who are wannabes instead of listening to the successful. It stands to reason that if a person wants to know what it is like in Hawaii, they should ask someone who has been there, not the person who just looked at a picture, yet many solo business owners fall for the big talkers instead of the people with proven results.
It may also be an ego thing at work in not listening to those who have done it, but it is at the costs of some solo business owners spending a lot of time chasing rabbits instead of collecting money from paying customers.

A great many young people think they have found a quick and easy road to success by concentrating their minds wholly on the jobs they happen to hold.

It is perfectly true that a business man must not underestimate the importance of details.

But it is also true that large success is always built upon a clear understanding of basic principles.

The common fallacy that it is best for an individual—especially a young one—to confine their thought and studies to one niche or specialty has in many instances proved ruinous. It is easily possible to specialize so much as to lose all sense of the importance of a broad, well-balanced business training.

We all know the lawyer who is wrapped up in  briefs; the accountant who sees nothing in business but a maze of figures; the advertising person who is so fascinated by "cleverness" that they
forgets to try to sell; and the techie who knows nothing about the commercial phases of  engineering problems.

Such people cannot take their places among the C-Suite because they know little or nothing of business outside their own specialty, and they cannot know even that thoroughly while their general outlook remains so narrow.

Only half ready

Some years ago two young men of unusual promise graduated from a prominent School of Engineering and went to work for a big copper company as mining engineers. They were located at an isolated camp, remote from civilization, and were given every chance to make good the prediction made for them at the time of graduation.

These men soon proved that they knew a great deal about the mining of copper. Their advancement was rapid, and within a comparatively short time one of them was appointed General Manager and the other Chief Engineer. To all intents and purposes they were in complete charge of the company's interests in that locality.

It was not long before the problems put up to these two mining experts ceased to be confined to the technical end of the business. The 32handling of a large number of people, the disposition of big sums of money, the necessity of using both people and money economically, the accounting and statistics of their operations, and a hundred other problems no less "practical" demanded the exercise of judgment on their part and a knowledge of business principles that neither their technical training nor their previous experience had supplied.

Unfortunately, these two—the General Manager and the Chief Engineer—had their heads turned by their rapid advancement. They did not recognize the fact that a thorough business training would have made them near failure-proof, and they even expressed contempt for scientific study of such subjects as accounting, banking, organization, cost finding, selling and finance.

In course of time the operations of the company made necessary the extension of its mining facilities, involving the erection of a concentrator and smelter at an expenditure of a little over $2,000,000. These men were in charge of selecting and arranging for the sites and erection of the plants. The work had gone forward to a considerable extent when one of the executive officers of the company from the East came to inspect the properties and the progress of the new work. He was so disappointed at the lack 33of business judgment displayed in the selection of the sites, the drawing of contracts and other matters, that he dismissed the Chief Engineer on the spot, and curtailed the authority of the General Manager.

He stated that thereafter he would select people who had some business as well as technical training.

These men missed success because they lacked certain essential tools with which to build it. Equipped with an elaborate professional kit gathered through years of painstaking study, they still lacked that knowledge of business principles which was necessary to enable them to turn their technical knowledge into results.

Every one who holds, or expects ever to hold, a position of business leadership should be familiar with the whole field of business. The reasons for this are apparent to any one who has to do with the handling of large problems. It is necessary always to take into account all the important factors in such problems. No matter how ably a marketing or an accounting difficulty may be met, the solution is worse than useless if it affects unfavorably any other phase of the business.

A business executive cannot afford to make many serious mistakes. To guard against mistakes, he must be fortified with an all-round 34knowledge of business practice—not merely a partial or one-sided knowledge.

The principles of Production, Marketing, Financing and Accounting are fundamental and apply to all lines of business. The person who says they do not apply because their business is "different" is simply exposing their failure to get down to rock bottom in their thinking. Every business has its points of difference, just as every person has an individuality of their own. But we know that human nature, broadly speaking, is much the same in all. In a like sense all business moves along similar lines. It all consists of producing, marketing, financing and accounting.

The broad principles of modern business science, therefore, govern all business. They are related to your problems, no matter how "different" your business may appear to be on the surface.

Business· niche· specialization

The Dangers of Picking a Niche Too Early

A great many young people think they have found a quick and easy road to success by concentrating their minds wholly on the jobs they happen to hold.

It is perfectly true that a business man must not underestimate the importance of details.

But it is also true that large success is always built upon a clear understanding of basic principles.

The common fallacy that it is best for an individual—especially a young one—to confine their thought and studies to one niche or specialty has in many instances proved ruinous. It is easily possible to specialize so much as to lose all sense of the importance of a broad, well-balanced business training.

We all know the lawyer who is wrapped up in  briefs; the accountant who sees nothing in business but a maze of figures; the advertising person who is so fascinated by "cleverness" that they
forgets to try to sell; and the techie who knows nothing about the commercial phases of  engineering problems.

Such people cannot take their places among the C-Suite because they know little or nothing of business outside their own specialty, and they cannot know even that thoroughly while their general outlook remains so narrow.

Only half ready

Some years ago two young men of unusual promise graduated from a prominent School of Engineering and went to work for a big copper company as mining engineers. They were located at an isolated camp, remote from civilization, and were given every chance to make good the prediction made for them at the time of graduation.

These men soon proved that they knew a great deal about the mining of copper. Their advancement was rapid, and within a comparatively short time one of them was appointed General Manager and the other Chief Engineer. To all intents and purposes they were in complete charge of the company's interests in that locality.

It was not long before the problems put up to these two mining experts ceased to be confined to the technical end of the business. The 32handling of a large number of people, the disposition of big sums of money, the necessity of using both people and money economically, the accounting and statistics of their operations, and a hundred other problems no less "practical" demanded the exercise of judgment on their part and a knowledge of business principles that neither their technical training nor their previous experience had supplied.

Unfortunately, these two—the General Manager and the Chief Engineer—had their heads turned by their rapid advancement. They did not recognize the fact that a thorough business training would have made them near failure-proof, and they even expressed contempt for scientific study of such subjects as accounting, banking, organization, cost finding, selling and finance.

In course of time the operations of the company made necessary the extension of its mining facilities, involving the erection of a concentrator and smelter at an expenditure of a little over $2,000,000. These men were in charge of selecting and arranging for the sites and erection of the plants. The work had gone forward to a considerable extent when one of the executive officers of the company from the East came to inspect the properties and the progress of the new work. He was so disappointed at the lack 33of business judgment displayed in the selection of the sites, the drawing of contracts and other matters, that he dismissed the Chief Engineer on the spot, and curtailed the authority of the General Manager.

He stated that thereafter he would select people who had some business as well as technical training.

These men missed success because they lacked certain essential tools with which to build it. Equipped with an elaborate professional kit gathered through years of painstaking study, they still lacked that knowledge of business principles which was necessary to enable them to turn their technical knowledge into results.

Every one who holds, or expects ever to hold, a position of business leadership should be familiar with the whole field of business. The reasons for this are apparent to any one who has to do with the handling of large problems. It is necessary always to take into account all the important factors in such problems. No matter how ably a marketing or an accounting difficulty may be met, the solution is worse than useless if it affects unfavorably any other phase of the business.

A business executive cannot afford to make many serious mistakes. To guard against mistakes, he must be fortified with an all-round 34knowledge of business practice—not merely a partial or one-sided knowledge.

The principles of Production, Marketing, Financing and Accounting are fundamental and apply to all lines of business. The person who says they do not apply because their business is "different" is simply exposing their failure to get down to rock bottom in their thinking. Every business has its points of difference, just as every person has an individuality of their own. But we know that human nature, broadly speaking, is much the same in all. In a like sense all business moves along similar lines. It all consists of producing, marketing, financing and accounting.

The broad principles of modern business science, therefore, govern all business. They are related to your problems, no matter how "different" your business may appear to be on the surface.

During the winter of 1883 a slim, studious young man was working as assistant foreman in a greasy little machine shop at Aurora, Illinois. He was saving money with a view to spending the next year at the State University, and he was devoting every minute of his spare time to thought and reading. He was not making much of a stir in the world, and only a few of his close friends ever gave a second thought to his ambitions or prospects.

One of these friends was a newspaper reporter, a recent Harvard graduate. He, too, was interested in study, especially of financial questions, and he found it a pleasure to guide the reading of the young foreman. Many an evening the two friends spent in the discussion of great economic and financial problems. Though both men had their ambitions and dreams, it did not occur to either one that he would ever play a big part in solving these problems.

A few years later the Harvard graduate became financial editor of the Chicago Tribune and brought in the younger man as his assistant. 8During their years of newspaper work together they continued to study and think, and their knowledge of business principles and methods gradually broadened. They were fitting themselves almost without knowing it to step forward into positions of leadership.

Today, the former reporter is the head of a great university school of commerce; the assistant foreman became the president of the largest bank in the United States. One of these men is Joseph French Johnson, now Dean of the New York University School of Commerce, Accounts and Finance. The other is Frank A. Vanderlip, the great financier.

The life histories of most men who have succeeded in a large way are equally simple. They have looked ahead, they have planned, they have equipped themselves with all the business knowledge available, and success has followed. Success must follow. The law of success is as definite as the law of gravity. Here it is:

Prepare in advance for opportunities.

It is not the dramatic moments of life that count. It is the quiet planning and reading of the man who is getting ready now for what is going to happen two, five or ten years from now.

Business· Success

The Law of Success

During the winter of 1883 a slim, studious young man was working as assistant foreman in a greasy little machine shop at Aurora, Illinois. He was saving money with a view to spending the next year at the State University, and he was devoting every minute of his spare time to thought and reading. He was not making much of a stir in the world, and only a few of his close friends ever gave a second thought to his ambitions or prospects.

One of these friends was a newspaper reporter, a recent Harvard graduate. He, too, was interested in study, especially of financial questions, and he found it a pleasure to guide the reading of the young foreman. Many an evening the two friends spent in the discussion of great economic and financial problems. Though both men had their ambitions and dreams, it did not occur to either one that he would ever play a big part in solving these problems.

A few years later the Harvard graduate became financial editor of the Chicago Tribune and brought in the younger man as his assistant. 8During their years of newspaper work together they continued to study and think, and their knowledge of business principles and methods gradually broadened. They were fitting themselves almost without knowing it to step forward into positions of leadership.

Today, the former reporter is the head of a great university school of commerce; the assistant foreman became the president of the largest bank in the United States. One of these men is Joseph French Johnson, now Dean of the New York University School of Commerce, Accounts and Finance. The other is Frank A. Vanderlip, the great financier.

The life histories of most men who have succeeded in a large way are equally simple. They have looked ahead, they have planned, they have equipped themselves with all the business knowledge available, and success has followed. Success must follow. The law of success is as definite as the law of gravity. Here it is:

Prepare in advance for opportunities.

It is not the dramatic moments of life that count. It is the quiet planning and reading of the man who is getting ready now for what is going to happen two, five or ten years from now.

Many online businesses are overlooking their online market in an effort to go global. This is a mistake according to Rieva Lesonsky, CEO of GrowBiz Media. She said it should be the first place a business starts. Why? It builds credibility in your community, and people still
want to buy from people they know and trust. So how do you let the community know you are open for business? How about starting where they are first, online.

Read Full Article Here

Advertising· Business· Ecommerce

Where to Advertise Your Ecommerce Business Locally on the Internet

Many online businesses are overlooking their online market in an effort to go global. This is a mistake according to Rieva Lesonsky, CEO of GrowBiz Media. She said it should be the first place a business starts. Why? It builds credibility in your community, and people still
want to buy from people they know and trust. So how do you let the community know you are open for business? How about starting where they are first, online.

Read Full Article Here

How to Make a Fan Page for Your Business on Facebook
Read this tutorial to find out how to set up your own fan page on Facebook for your business. By doing following the steps, you open yourself up to reaching up to 200 million active users.
http://www.associatedcontent.comarticle/1649378/how_to_make_a_fan_page_for_your_business.html

Business· Facebook· Marketing

How to Make a Fan Page for Your Business on Facebook

How to Make a Fan Page for Your Business on Facebook
Read this tutorial to find out how to set up your own fan page on Facebook for your business. By doing following the steps, you open yourself up to reaching up to 200 million active users.
http://www.associatedcontent.comarticle/1649378/how_to_make_a_fan_page_for_your_business.html

A little steam engine had a long train of cars to pull.

She went along very well till she came to a steep hill. But then, no matter how hard she tried, she could not move the long train of cars.

She pulled and she pulled. She puffed and she puffed. She backed and started off again. Choo! Choo!

But no! the cars would not go up the hill.

At last she left the train and started up the track alone. Do you think she had stopped working? No, indeed! She was going for help.

"Surely I can find someone to help me," she thought.

Over the hill and up the track went the little steam engine. Choo, choo! Choo, choo! Choo, choo! Choo!

Pretty soon she saw a big steam engine standing on a side track. He looked very big and strong. Running alongside, she looked up and said:

"Will you help me over the hill with my train of cars? It is so long and heavy I can't get it over."

The big steam engine looked down at the little steam engine. The he said:

"Don't you see that I am through my day's work? I have been rubbed and scoured ready for my next run. No, I cannot help you,"

The little steam engine was sorry, but she went on, Choo, choo! Choo, choo! Choo, choo! Choo, choo!

Soon she came to a second big steam engine standing on a side track. He was puffing and puffing, as if he were tired.

"That big steam engine may help me," thought the little steam engine. She ran alongside and asked:

"Will you help me bring my train of cars over the hill? It is so long and so heavy that I can't get it over."

The second big steam engine answered:

"I have just come in from a long, long run. Don't you see how tired I am? Can't you get some other engine to help you this time?

"I'll try," said the little steam engine, and off she went. Choo, choo! Choo, choo! Choo, choo!

After a while she came to a little steam engine just like herself. She ran alongside and said:

"Will you help me over the hill with my train of cars? It is so long and so heavy that I can't get it over."

"Yes, indeed!" said this little steam engine. "I'll be glad to help you, if I can."

So the little steam engines started back to where the train of cars had been standing. Both little steam engines went to the head of the train, one behind the other.

Puff, puff! Chug, choo! Off they started!

Slowly the cars began to move. Slowly they climbed the steep hill. As they climbed, each little steam engine began to sing:

"I-think-I-can! I-think-I-can! I-think-I-can! I-think-I-can! I-think-I-can! I-think-I-can! I think I can - I think I can - I think I can I think I can--"

And they did! Very soon they were over the hill and going down the other side.

Now they were on the plain again; and the little steam engine could pull her train herself. So she thanked the little engine who had come to help her, and said good-by.

And she went merrily on her way, singing:

"I-thought-I-could! I-thought-I-could! I-thought-I-could! I-thought-I-could! I thought i could - I thought I could - I thought I could - I thought I could - I thought I could - I thought I could I thought I could --"

THE END

Business· Motivatation

The Little Engine That Could

A little steam engine had a long train of cars to pull.

She went along very well till she came to a steep hill. But then, no matter how hard she tried, she could not move the long train of cars.

She pulled and she pulled. She puffed and she puffed. She backed and started off again. Choo! Choo!

But no! the cars would not go up the hill.

At last she left the train and started up the track alone. Do you think she had stopped working? No, indeed! She was going for help.

"Surely I can find someone to help me," she thought.

Over the hill and up the track went the little steam engine. Choo, choo! Choo, choo! Choo, choo! Choo!

Pretty soon she saw a big steam engine standing on a side track. He looked very big and strong. Running alongside, she looked up and said:

"Will you help me over the hill with my train of cars? It is so long and heavy I can't get it over."

The big steam engine looked down at the little steam engine. The he said:

"Don't you see that I am through my day's work? I have been rubbed and scoured ready for my next run. No, I cannot help you,"

The little steam engine was sorry, but she went on, Choo, choo! Choo, choo! Choo, choo! Choo, choo!

Soon she came to a second big steam engine standing on a side track. He was puffing and puffing, as if he were tired.

"That big steam engine may help me," thought the little steam engine. She ran alongside and asked:

"Will you help me bring my train of cars over the hill? It is so long and so heavy that I can't get it over."

The second big steam engine answered:

"I have just come in from a long, long run. Don't you see how tired I am? Can't you get some other engine to help you this time?

"I'll try," said the little steam engine, and off she went. Choo, choo! Choo, choo! Choo, choo!

After a while she came to a little steam engine just like herself. She ran alongside and said:

"Will you help me over the hill with my train of cars? It is so long and so heavy that I can't get it over."

"Yes, indeed!" said this little steam engine. "I'll be glad to help you, if I can."

So the little steam engines started back to where the train of cars had been standing. Both little steam engines went to the head of the train, one behind the other.

Puff, puff! Chug, choo! Off they started!

Slowly the cars began to move. Slowly they climbed the steep hill. As they climbed, each little steam engine began to sing:

"I-think-I-can! I-think-I-can! I-think-I-can! I-think-I-can! I-think-I-can! I-think-I-can! I think I can - I think I can - I think I can I think I can--"

And they did! Very soon they were over the hill and going down the other side.

Now they were on the plain again; and the little steam engine could pull her train herself. So she thanked the little engine who had come to help her, and said good-by.

And she went merrily on her way, singing:

"I-thought-I-could! I-thought-I-could! I-thought-I-could! I-thought-I-could! I thought i could - I thought I could - I thought I could - I thought I could - I thought I could - I thought I could I thought I could --"

THE END

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals:

The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

• Conserve cash.

• Protect assets.

• Reduce costs.

• Improve efficiencies.

• Grow customer base.

Required Action:

• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.

• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.

• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.

• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.

2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.

3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.

4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.

5. Re-negotiate with your suppliers, lenders, and landlord:

i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.

7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.

8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.

9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.

10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Copyright © 2008 Terry H. Hill

You may reprint this article free of charge in your newsletter, magazine, or on your website, provided that the article is unedited, and that the copyright, author's bio, and contact information below appears with each article. Articles appearing on the web must provide a hyperlink to the author's web site, http://www.legacyai.com

Terry H. Hill is the founder and managing partner of Legacy Associates, Inc, a business consulting and advisory services firm. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. To find out how he can help you take your business to the next level, visit his site at http://www.legacyai.com

To download a copy of this article, click on this link: http://www.legacyai.com/Article_Downturn.html.



About The Author

An author, speaker, and consultant, Terry H. Hill is the founder and managing partner of Legacy Associates, Inc., a business consulting and advisory services firm based in Sarasota, Florida. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. Terry is the author of the business desk-reference book, How to Jump Start Your Business. He hosts the Business Insights from Legacy Blog at http://blog.legacyai.com and writes a bi-monthly eNewsletter, "Business Insights from Legacy eZine."

By signing up for Business Insights from Legacy eZine at http://tinyurl.com/2t4fxs you can keep abreast of the latest tips, tactics, and best business practices. You will, also, receive the free eBook, Jump Start Your Knowledge of Business.

Contact Terry by email at http://www.legacyai.com or telephone him at 941-556-1299.

Business· Business Tips· Economy

How to Successfully Navigate Your Business through an Economic Downturn

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals:

The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

• Conserve cash.

• Protect assets.

• Reduce costs.

• Improve efficiencies.

• Grow customer base.

Required Action:

• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.

• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.

• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.

• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.

2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.

3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.

4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.

5. Re-negotiate with your suppliers, lenders, and landlord:

i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.

7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.

8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.

9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.

10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Copyright © 2008 Terry H. Hill

You may reprint this article free of charge in your newsletter, magazine, or on your website, provided that the article is unedited, and that the copyright, author's bio, and contact information below appears with each article. Articles appearing on the web must provide a hyperlink to the author's web site, http://www.legacyai.com

Terry H. Hill is the founder and managing partner of Legacy Associates, Inc, a business consulting and advisory services firm. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. To find out how he can help you take your business to the next level, visit his site at http://www.legacyai.com

To download a copy of this article, click on this link: http://www.legacyai.com/Article_Downturn.html.



About The Author

An author, speaker, and consultant, Terry H. Hill is the founder and managing partner of Legacy Associates, Inc., a business consulting and advisory services firm based in Sarasota, Florida. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. Terry is the author of the business desk-reference book, How to Jump Start Your Business. He hosts the Business Insights from Legacy Blog at http://blog.legacyai.com and writes a bi-monthly eNewsletter, "Business Insights from Legacy eZine."

By signing up for Business Insights from Legacy eZine at http://tinyurl.com/2t4fxs you can keep abreast of the latest tips, tactics, and best business practices. You will, also, receive the free eBook, Jump Start Your Knowledge of Business.

Contact Terry by email at http://www.legacyai.com or telephone him at 941-556-1299.

If you are running your business primarily from the Internet, then one of the main things that you will need is traffic to your site. There is a direct correlation between the amount of traffic that you receive to your site and how successful you are online. One of the ways that you can increase your website traffic is by submitting inner links, or pages, of your website to a deep links directory. By doing this, you will increase the chances that your website is ranked better in the search engines; and as a result, you receive more visitors.

One of the reasons that people visit the link directories is because they need to find what they are looking for quickly and do not have extra time to waste. Savvy Internet surfers know that when they are looking for an article on a specific topic that the best way to find one is by visiting a web directory that features deep links to websites.

One of the most annoying things, as cited by many web surfers, is having to search through tons of junk just to find what they are looking for on a site. Deep link directories help you to avoid this pitfall. Instead of surfing through an entire site, visitors can find exactly what they are looking for with a single click of the mouse. Deep link web directories offers surfers this ability.

Whenever you submit web pages on your site besides your home page to a deep links directory, you make it easier for visitors to find the information they are searching for on your website. People are more inclined to bookmark your website when you make it easy for them to find information that they are looking for. And once they know that your site is easy to navigate, they are more likely to return and also to invite friends, relatives, and family. It is proven that repeat website traffic, as well as referrals, is the best kind of traffic to receive. A deep link directory can help your online business accomplish this goal.

There are numerous advantages to submitting your website to a deep link directory. What is not to love about free traffic that boosts your online business' profit potential? In addition, your visitors return and invite others also, which all means more profits for you. And since submissions to deep link directories are often free, you have nothing to lose but if you moments of time.
Author Resource:- Ron Subs works with Web4URL.com, a free deep links directory, as an online business consultant. More information about Ron Subs can be found at http://www.web4url.com

Business· Links· SEO· Site Submission

Why You Need to Submit Your Site URL to a Deep Links Directory

If you are running your business primarily from the Internet, then one of the main things that you will need is traffic to your site. There is a direct correlation between the amount of traffic that you receive to your site and how successful you are online. One of the ways that you can increase your website traffic is by submitting inner links, or pages, of your website to a deep links directory. By doing this, you will increase the chances that your website is ranked better in the search engines; and as a result, you receive more visitors.

One of the reasons that people visit the link directories is because they need to find what they are looking for quickly and do not have extra time to waste. Savvy Internet surfers know that when they are looking for an article on a specific topic that the best way to find one is by visiting a web directory that features deep links to websites.

One of the most annoying things, as cited by many web surfers, is having to search through tons of junk just to find what they are looking for on a site. Deep link directories help you to avoid this pitfall. Instead of surfing through an entire site, visitors can find exactly what they are looking for with a single click of the mouse. Deep link web directories offers surfers this ability.

Whenever you submit web pages on your site besides your home page to a deep links directory, you make it easier for visitors to find the information they are searching for on your website. People are more inclined to bookmark your website when you make it easy for them to find information that they are looking for. And once they know that your site is easy to navigate, they are more likely to return and also to invite friends, relatives, and family. It is proven that repeat website traffic, as well as referrals, is the best kind of traffic to receive. A deep link directory can help your online business accomplish this goal.

There are numerous advantages to submitting your website to a deep link directory. What is not to love about free traffic that boosts your online business' profit potential? In addition, your visitors return and invite others also, which all means more profits for you. And since submissions to deep link directories are often free, you have nothing to lose but if you moments of time.
Author Resource:- Ron Subs works with Web4URL.com, a free deep links directory, as an online business consultant. More information about Ron Subs can be found at http://www.web4url.com

An Ezine is a word that combines email marketing with magazine. Today people publish Ezines as an online newsletter to provide quality education to their subscribers.

Although an e-zine has lost some of its luster, due to blogging and social networking, it can still be a valuable marketing tool. Here are four reasons to publish an easing of your own if you are not currently doing it.

1. First of all not everyone pays attention to blogs and social networking. There are still a number of people who prefer to sit down and read emails to get their information. This presents an opportunity for you to build a subscriber base of people who want to subscribe to your email newsletter.

2. A second reason to publish an Ezine of your own is it gives you an opportunity to build credibility with your audience. You do not have to always be selling when you send out a message to your list of subscribers.

As a matter of fact, you are better off to provide valuable information that people feel good about reading. Only then will you be able to make sales to them.

3. Having a list of subscribers to your Ezine does give you the opportunity to sell to it as well. You can sell advertising in your Ezine and make money, or you can include product of your own people can buy.

A quality list of subscribers can be worth a fortune to you, and an Ezine allows you to do that in ways that you might not be able to with just a website or blog.

4. If you have a list of your own, you can trade solo ads with other publishers. This allows you access to literally thousands of subscribers it you may not have been able to reach.

You can invite them to subscribe to your own Ezine, as well as offer products that may interest them. There were plenty of other publishers who will let you mail to their list if you are offering a product that does not directly compete with them. You just need to let them have access to mail to your list as well.

This is 4 reasons to publish an Ezine of your own. There are many other reasons, but the bottom line is publishing an Ezine is a great way to build a mailing list and make money at the same time. Anyone can do this with a little bit of effort.

About the Author:
Herbert Davies invites you to visit his home business ideas website to see the Top Picks for 2008. His website is dedicated to researching home business ideas and opportunities that can help you get started today. It includes free work at home opportunities. Please click here now to learn more:==> http://www.honest-home.com

Business· Customers· Entrepreneur· Ezine· Ezine Publishing· Herbert Davies· Website

4 Reasons to Publish an Ezine of Your Own

An Ezine is a word that combines email marketing with magazine. Today people publish Ezines as an online newsletter to provide quality education to their subscribers.

Although an e-zine has lost some of its luster, due to blogging and social networking, it can still be a valuable marketing tool. Here are four reasons to publish an easing of your own if you are not currently doing it.

1. First of all not everyone pays attention to blogs and social networking. There are still a number of people who prefer to sit down and read emails to get their information. This presents an opportunity for you to build a subscriber base of people who want to subscribe to your email newsletter.

2. A second reason to publish an Ezine of your own is it gives you an opportunity to build credibility with your audience. You do not have to always be selling when you send out a message to your list of subscribers.

As a matter of fact, you are better off to provide valuable information that people feel good about reading. Only then will you be able to make sales to them.

3. Having a list of subscribers to your Ezine does give you the opportunity to sell to it as well. You can sell advertising in your Ezine and make money, or you can include product of your own people can buy.

A quality list of subscribers can be worth a fortune to you, and an Ezine allows you to do that in ways that you might not be able to with just a website or blog.

4. If you have a list of your own, you can trade solo ads with other publishers. This allows you access to literally thousands of subscribers it you may not have been able to reach.

You can invite them to subscribe to your own Ezine, as well as offer products that may interest them. There were plenty of other publishers who will let you mail to their list if you are offering a product that does not directly compete with them. You just need to let them have access to mail to your list as well.

This is 4 reasons to publish an Ezine of your own. There are many other reasons, but the bottom line is publishing an Ezine is a great way to build a mailing list and make money at the same time. Anyone can do this with a little bit of effort.

About the Author:
Herbert Davies invites you to visit his home business ideas website to see the Top Picks for 2008. His website is dedicated to researching home business ideas and opportunities that can help you get started today. It includes free work at home opportunities. Please click here now to learn more:==> http://www.honest-home.com

One successful young man I interviewed at a financial planners' meeting told me, "I used to be in another industry. I went into financial planning when I was thirty-three years old, joining my father's small firm. He'd been in the business for years, but I had to go out and get my own customers."

He drew up a list of twenty movers-and-shakers in his community, twenty affluent people with large spheres of influence who were eagerly pursued by everyone in the investment community. This young man had very little experience. He hadn't yet "earned their business."

He called on each of these people and said, "I am new to this business. I know you know about my father, but you don't know me. I am not trying to sell you. I know I haven't earned the right yet. However, could I please have a ten-minute interview? Would you, as a leader in the community, tell me what I should do to earn the right to do business with people like you?"

See what he did? He made it safe. He told them up front that he wasn't going to try to sell them anything. He only wanted ten minutes.

Frankly, I think you have to be very lucky to get ten minutes of an important person's time. But he presented it in such an appealing way that no one turned him down. And he kept his side of the bargain. After ten minutes, he left unless they invited him to stay longer.

At the end of his first year, three of those people actually gave him a small portion of their portfolio to manage to see how he would do. At the end of three years, seven out of the original twenty people had placed a portion of their investments with his firm. He'd earned the right.

I used to say that there are two kinds of people to market to: those who know and love us and those who never heard of us. You can advertise traditionally and on the Internet, network and join organizations, send out direct mail, and do a combination of activities to get new business. But please don't think these methods substitute for keeping in touch with the people who now know you and love you. These are people who've inquired, whom you've met at a meeting, who've done some business with you in the past. Keep in touch with these valuable resources!

When Homer Dunn was an up-and-coming salesperson at IBM, he told me there are actually three kinds of people that he calls on. "First, there are the people I've already made a sale to." (This was in the mainframe days, so it was a big sale.) "I keep calling on these customers, making sure they are satisfied with the product and the service." That's maintaining a sale.

"Then there are the people I'm calling on, those that are in the sales cycle which can be a long-term process." (And, with really high-ticket items, this can be a really long-term process!)

"Finally, there are the people I want to do business with. I have not earned the right yet to do business with these people, but I am maintaining a relationship, letting them know of my progress and success. So when I have finally earned the right to the sale, they are all mine."

HOMEWORK
1. What are you doing this week to earn the right to people's business? Write it down.

2. What more could or should you do? Devise a strategy and timetable.

3. Who have you targeted in your community? Who else should you cultivate? Make a list.

Patricia Fripp, CSP, CPAE is a San Francisco-based executive speech coach, sales trainer, and award-winning professional speaker on Change, Customer Service, Promoting Business, and Communication Skills. She is the author of Get What You Want!, Make It, So You Don't Have to Fake It!, and Past-President of the National Speakers Association. She can be reached at: PFripp@Fripp.com, 1-800 634-3035, http://www.fripp.com

Business· Customer Service· Patricia Fripp

Earn the Right to do Business with People

One successful young man I interviewed at a financial planners' meeting told me, "I used to be in another industry. I went into financial planning when I was thirty-three years old, joining my father's small firm. He'd been in the business for years, but I had to go out and get my own customers."

He drew up a list of twenty movers-and-shakers in his community, twenty affluent people with large spheres of influence who were eagerly pursued by everyone in the investment community. This young man had very little experience. He hadn't yet "earned their business."

He called on each of these people and said, "I am new to this business. I know you know about my father, but you don't know me. I am not trying to sell you. I know I haven't earned the right yet. However, could I please have a ten-minute interview? Would you, as a leader in the community, tell me what I should do to earn the right to do business with people like you?"

See what he did? He made it safe. He told them up front that he wasn't going to try to sell them anything. He only wanted ten minutes.

Frankly, I think you have to be very lucky to get ten minutes of an important person's time. But he presented it in such an appealing way that no one turned him down. And he kept his side of the bargain. After ten minutes, he left unless they invited him to stay longer.

At the end of his first year, three of those people actually gave him a small portion of their portfolio to manage to see how he would do. At the end of three years, seven out of the original twenty people had placed a portion of their investments with his firm. He'd earned the right.

I used to say that there are two kinds of people to market to: those who know and love us and those who never heard of us. You can advertise traditionally and on the Internet, network and join organizations, send out direct mail, and do a combination of activities to get new business. But please don't think these methods substitute for keeping in touch with the people who now know you and love you. These are people who've inquired, whom you've met at a meeting, who've done some business with you in the past. Keep in touch with these valuable resources!

When Homer Dunn was an up-and-coming salesperson at IBM, he told me there are actually three kinds of people that he calls on. "First, there are the people I've already made a sale to." (This was in the mainframe days, so it was a big sale.) "I keep calling on these customers, making sure they are satisfied with the product and the service." That's maintaining a sale.

"Then there are the people I'm calling on, those that are in the sales cycle which can be a long-term process." (And, with really high-ticket items, this can be a really long-term process!)

"Finally, there are the people I want to do business with. I have not earned the right yet to do business with these people, but I am maintaining a relationship, letting them know of my progress and success. So when I have finally earned the right to the sale, they are all mine."

HOMEWORK
1. What are you doing this week to earn the right to people's business? Write it down.

2. What more could or should you do? Devise a strategy and timetable.

3. Who have you targeted in your community? Who else should you cultivate? Make a list.

Patricia Fripp, CSP, CPAE is a San Francisco-based executive speech coach, sales trainer, and award-winning professional speaker on Change, Customer Service, Promoting Business, and Communication Skills. She is the author of Get What You Want!, Make It, So You Don't Have to Fake It!, and Past-President of the National Speakers Association. She can be reached at: PFripp@Fripp.com, 1-800 634-3035, http://www.fripp.com