More than 90 percent of small business operates without a Business plan.  If small businesses are going to sustain and grow, they must know where they have been and why and where they want to go.  It takes a lot of time and effort and there are many ways to approach this analysis.  You can just tackle it yourself by purchasing books, going online and looking for pro-forma’s to help you analyze your past financial statements, you can hire a Business Coach or Consultant to assist you through the process with you doing most of the work, or you can contract with specialists that can assist you in analyzing all your options.  All of those methods can work, you have decide which is best for you.  If have had clients do amazing jobs of this all by themselves (with a huge amount of research and time). There are very few of these clients.

Recently, I have had clients pay a substantial amount to utilize outside assistance.  That ranges from well-known regional business coaching consultants, to subscribing to E-myth online, to using ESource Coach (www.theesource.com).   I have to say the only clients I have that have actually grown their income (even in 2008) are the ones that use outside assistance. Most often, you need someone else’s viewpoint to really see what you need to do to create the business model you can grow your income with.  It does depend on your type and size of business as to which approach may be best.  I have had a really small business do really well with the E-myth online and the medium size businesses and professionals do better with the either ESource product and Coach or specialist who do nothing but advise businesses going through transitions and turnarounds.

Here are some general rules in the typical small businesses:

1.       There is an 80-20 rule. 80% of your income in generated by the top 20% of your activity.  Know what activities (i.e. power networking, website, print marketing, specific product appeal etc.) are your highest income producer.  Then narrow done the cost to produce that product.  You may (and probably will) find that 20% of your income is costing way over 20% of your expenses.  That is the first place to consider cutting.

 

2.       More and more print marketing is not effective.  Most vital businesses today have a strong customer/client base that is turning more and more to the internet for everything.  I am amazed at how slow small business has been to respond to value of a really good website that actually provides a service to their customer/client base.  What has amazed me in the process of building a new site for my own business is that it is easier and less expensive than it has ever been.  I will be launching a blog site shortly that will be 1/3 the cost of my first website – and it substantially better. 

 

3.       You must offer something that the Market needs.  I say this over and over.  It is more important than ever you realize you have to offer something that the Market considers a necessity.  That has always been the case – but the Market changes their view of what is necessary and right now it is not much.  However, they are hungry for any way they can sustain their base life style and transition themselves in this economic situation.  Almost every business can diversify to meet some need in this new economy.  Be creative, flexible and open – and know your skills.

 

4.       Be of service to your community.  There is no better marketing than to truly go out in your community and donate your time to needed services.  That has been my base for years.  I love doing it and my business gains tremendously.  It is a win-win – you will be amazed at how that can assist your networking.  I never discuss my business when I’m volunteering, but I get asked and simply answer inquiries.  One thing leads to another and I have built a great client base.

 

Consider this new economy an exciting time to really do something that makes a difference, both for yourself and others.