SubscribeSMALL BUSINESS LEADER January 2007
Small Business Leader
Marian Banker, MBA, Business Leadership Coach, and creator of the Business Success System.
"Lead Your Business to Success"
ISSUE #89
January 2007
in this issue
**Officially Launched!**
Feature Article / Lesson
Events
Small Business Leaders' Marketplace
Note from Marian:
What an exciting year this is going to be for a lot of small businesses. Almost everyone I speak with has big plans in the works. I hope you do too. For me this is the year I focus on getting the word out about the Business Success System Course. There are so many of you out there who are ready to take command of your business the timing appears to be perfect.
I just got back from an extended holiday vacation with my sister, Evelyn, who moved from Phoenix to Austin, Texas, in early December. We did some shopping for her new home and helped her get settled in. It was great to see her (been way too long) and have the occasion for multiple celebrations. I had never been to Austin and was pleasantly surprised at how livable it is.
On January 1st the Prime Strategies Business Success System Course, http://primestrategies.com/business_success , was officially launched. I'm really proud of this product and have already received very positive feedback from those who jumped in during the pre-launch period. If you're serious about success, I strongly encourage you to start the year with the advantage of the process and experience this Course provides. It's proven and guaranteed.
A few have asked to be held accountable for staying on track with the Course. For them I'm providing a half hour phone session for each Step. So if that's what you need to make it work for you I'm open to providing this extra help. Just let me know.
The rest of January has me elbow-deep in the Small Business Summit 2007, http://www.smallbiztechsummit.com , taking place on February 13 th at the Crowne Plaza Hotel here in New York City. The activity and excitement is becoming palpable. It's a lot of work, but a great experience for all who participate and attend.
This year's Summit theme is "Business and Technology: Growth Strategies That Work". In addition to our popular Brain Exchange Roundtables we have small and big business leaders who will be sharing their wisdom and listening to yours. Register at http://www.smallbiztechsummit.com/register.php before February 1 st and get the early-bird discount (w0rth $50).
Our Feature Article, "7 Questions to Ask Before Launching a New Product or Service" will help get you in leadership mindset and mode. Leaders gather pertinent information, analyze it, then make strategic decisions and step out in front with confidence to lead the way. Why shouldn't that be you?
To your success!
Marian Banker
Publisher
Small Business Leader
mailto:marian@primestrategies.com
http://primestrategies.com
NOTE: We have had to disguise some words in order to keep them from getting caught in the $pam filters. Please bear with us.
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**Officially Launched!**
Want your own Personal Roadmap to Business Success? Take Command of Your Business with the Prime Strategies Business Success System Course . Gain the confidence to make well-calculated strategic business decisions in spite of challenges and crossroads.
Included is a step-by-step guidebook, interactive tools to organize your thinking and your actions, plus coaching audios to support you as you take each step in the system. It's totally risk f*r*e*e because it comes with a 100% satisfaction *guarantee*. http://primestrategies.com/business_success .
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EVENTS:
Join with other small business owners and technology providers for an all-day event focused on growth strategies that work. Hear from those who've done it as well as those who track and set trends in the thriving small business community.
At this year's Summit you will:
Exchange ideas with experts and peers
Connect with potential new alliances, resources and customers
Take away strategies you can apply to your own business.
Plus you'll be eligible to win great business and technology products and services.
We've designed the Agenda, http://smallbiztechsummit.com/agenda , to prepare you for a great 2007. Register before February 1 st and save $50.
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FEATURE ARTICLE:
7 Questions to Ask Before Launching a New Product or Service
By Marian Banker
The economy has been good to many small businesses this past year. Many are ramping up for expansion through introduction of a new product or service. This can be an ideal way to grow your business if you do it strategically.
To help increase your odds of success, I suggest you analyze your business and market history. He.re are seven questions that will assist you in analyzing your information and creating a growth plan.
1 - Is my business already on a solid foundation?
If your systems, processes and personnel are not ready, efforts to expand will overload your capabilities and set you up for failure. Make sure you are ready to handle the orders, deliver the product or service and collect your money in a systematic and timely fashion.
Also, make sure you have one or more strong indications that there is a market for what you plan to offer. Strong past $ales of something similar or a part of what you are expanding are usually a positive sign. Be careful you don't fall in love with an idea and disregard the warning signs that the market won't support it.
2 - What is the size of the market?
Do a competitive analysis (see checklist at http://primestrategies.com/companalysis ). How is what you plan to offer filling a market need? What will be your position within this market? Who is your target market and how will you reach them? You want to reach the conclusion that your efforts have the potential to pay off. If you are offering the same product to a new or broader market the same principles apply.
3 - How should I price it?
Pricing is an important consideration. When you do your competitive analysis you'll learn how similar products or services are priced. You want your price to be attractive enough to sway people to buy; unless you're pricing a luxury product and the higher the price, the higher the perceived value. The option for prospects to keep their money and not buy from anyone is always one of your competitors.
I find it's better to start on the low side to make sure the perceived value is greater than the cost. You can raise the price once demand has been established.
4 -How much revenue can I expect to generate within a specified time period (usually one year)
This is an important question and is dependent upon the actions you take to generate sales. You'll need to think through your Marketing Plan in order to come up with a realistic projection of how many widgets you can sell at $XX within a specified time period. Analyze your sales history to help you know what has worked in the past. If you have a long lead time for sales, that should be taken into consideration. This may mean hefty upfront expenses with corresponding delayed revenue income. To be conservative make your revenue projections and then knock off 30%.
5 - What will it take to realize this additional revenue and profit?
What additional resources will you need? Do you need to hire more people, buy more supplies or inventory, etc.? That additional cost must be taken into the equation. These may be in the form of fixed or variable costs.
Consider what the competition is doing and what market insights and trends you can utilize that will generate sales. Select one or two actions for your initial campaign and test on a small scale before committing major dollars.
At best, making a financial revenue and expense projection is always a guesstimate. Gathering and analyzing pertinent information is the key.
6 - Where is the break even point and what is the potential profit?
The formula to determine how many you have to sell to start making a profit is Fixed Costs divided by (Revenue per unit minus Variable costs per unit). A quick and simple explanation of this can be viewed in the article, "Breakeven Analysis" at http://sbinfocanada.about.com/cs/startup/g/breakevenanal.htm . For some products or services the upfront investment is such that the breakeven doesn't happen for more than a year. If that is your situation, you'll definitely want to know how you're going to capitalize such a project.
7 - Is this new direction in line with my overall Business Vision and Long Term Goals?
This is a good time to determine if your new offering will take you closer to (or further from) where you want your business to be going. One of the real values of having a clear Vision and Goals is to help you make this type of decision for every opportunity that presents itself. Think long and hard before starting something new that does not have an obvious fit.
Answer these questions and you'll be a lot more confident about your plans and in a much better position to succeed. Good luck with your new project!
Want access to all the Steps that will assure you're in command of your business and your success? The Business Success System Course, http://primestrategies.com/business_success , offers the proven 9-Step Action Plan that gives you the guidance you need at a no-brainer price.
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SMALL BUSINESS LEADERS' MARKETPLACE :
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