Business Consultants

Archive for December, 2009

Eliminating your competition is the easiest way to increase your chances of business success. And I don’t mean literally eliminate them, in the sense of doing something “bad” to them.

When I say eliminate, I mean … take them out of your prospect’s consideration set for your product or service category. Make it so your prospects ONLY think of your business, product or service when they are contemplating making a purchase. That way you get their business, instead of your competition making the sale.

What this means is if you sell widgets, you want your prospects to only think of your widgets when they are thinking of buying widgets. This is pretty easy to do if your business is not in a competitive industry.

But let’s suppose there are all kinds of businesses selling what you are selling, or filling the same consumer or business need you are filling.

How can you make sure your prospects ONLY think of you — and therefore only BUY from you — and not all those other companies?

Answer: By thoroughly understanding those competing businesses and then doing one of two things:

(1) Finding a position in the category you can own.

This will separate you from all the other businesses and will make you uniquely qualified in the eyes of your prospect to fill their need.

This usually requires finding a specific market niche you can focus on, or finding a specific product or service attribute or benefit, that is of value to your prospects, that none of your competitors can claim or are currently promoting.

This puts you in a class of your own and virtually eliminates the competition. No one does exactly what you do. Or in the quite the way you do it.

(2) By turning your competitors into “co-opitors.”

What the heck is a “co-opitor?” It is a competitor that you turn into a partner or a cooperator. Are there businesses or individuals with whom you could partner, with the idea of referring business to each other?

For example, a wellness coach could partner with a weight watchers clinic or a health club or a massage therapist. All of these practitioners are selling improved health and well being, but they can also be positioned as complementary services.

Or, let’s say you are a web site designer and you decide to focus primarily on working with small businesses (a market niche). You could create a partnership with another web site designer who has decided to focus on large corporations.

If you both agree to only take on business that fits your identified niche, and to refer business outside your niche to the partner, you both win.

You can partner with other businesses in your exact business in this manner, by identifying niches, by geographic area served, or by size or type of clients served.

And you can partner with businesses in different categories that fill a similar customer need by agreeing to work together to help each other get customers.

There is not a business out there that cannot effectively use one of these two strategies to significantly reduce their competition. So figure out which strategy fits your business best, and make it a priority to eliminate your competition this year.

Got a difficult problem in your job search?

Say, a lack of networking contacts? Or trouble answering interview questions?

Well, you’ve got company. Problems in a job search are as common as mosquitoes in July.

But … have you ever written your problem down on a piece of paper?

I’ll bet you haven’t.

Because, when you write problems down, you take an immediate, huge leap towards solving them. Think about it: Every great invention or solution, from the atomic bomb to the Xbox, was first worked out on paper.

Why not solve your employment problems the same way?

Here’s a three-step method that will help you do it …

1) Start by asking the right questions
Most folks put themselves behind the eight ball in their job search by asking questions that are depressing and demotivating.

Questions like, Why won’t anyone give me a job? or How do I network when I don’t know anyone?

Ack. Pass the happy pills.

Instead, start asking questions that motivate and inspire you.

Better questions to ask are:

* How could I give people a reason to call me with job leads?
* How did my 10 closest friends find their current jobs? How could I brainstorm with them and use their methods in my job hunt?
* What worked in my last job search? The job search before? How could I do that again?

Important: Ask questions that you yourself can solve. Never depend on the government, your school, parents, family — anyone else — to do this for you. Because, once you give up responsibility for solving problems with your job search (or anything else), you become a prisoner of outside forces.

When you ask the right questions, however, you’re halfway to the answer. So write down at least five empowering questions about your job search, right now.

Then, you’re ready for step two …

2) Brainstorm at least 20 possible answers
After you write down five good questions, circle the one question that looks most promising. You’re going to use it to get hired faster.

Let’s say you write the following question down atop a clean sheet of paper:

How could I give people a reason to call me with job leads?

Write a number 1 below it. Write a possible answer next to that number. Then move on to number 2, 3 . and don’t stop until you have at least 20 answers to your question.

Not 15 or 19, but 20 answers — or more.

There’s a reason for this: Left to its own devices, your brain will pull a Homer Simpson after two minutes and try to talk you into going out for donuts or beer. Brains hate to think. Like bench pressing, thinking is strenuous work, no matter how good it may be for you.

But don’t let your head off the hook. Don’t stop until you get 20 possible solutions. Brainstorm as if your career depended on the outcome. Because it does.

Now. Most of your 20 answers won’t be very good — that’s OK. Your best answer may come right after the most hare-brained. By forcing yourself to write out 20 answers, you’re flushing the creative pipes while going deep into your subconscious mind to dredge up a winner.

Don’t knock it until you try it!

3) Take action on one solution today
Choose the most promising from your list of 20 answers. Then, get started — today — to make it happen. No excuses.

Let’s say the most actionable of your solutions is to throw a networking party where you can meet friends, family and acquaintances, and let them know about your job search.

Now. What do you need to do to make this party happen?

Well, you have to make the guest list, send invitations, get the food, etc. So write down all the sub-goals necessary for the party to be a success. Check each sub-goal off your list as you complete it. Before you know it, your networking party will be a reality.

After that, take the next most-promising solution from your list of 20 and make that one happen. Repeat until hired.

Here’s why these 3 steps work when it comes to solving problems — clear thinking plus continuous action equals results.

If you’re struggling to find a job, write down clear, empowering questions of your situation. Then, brainstorm at least 20 possible solutions and take action on the best one today. When you do, you’ll be that much closer to getting the job you really want, faster.

Now, go out and make your own luck!

Pick up any “business opportunity” magazine at your local newsstand and you’ll see a glossy attractive publication designed to attract people who are actively seeking ways to earn extra money, buy a franchise, or open a business of their own. After all, it’s the American Dream to own your own business and get rich, right?

You’ve probably heard the old saying, “Most people are too busy earning a living to make any money.” Common sense tells us that we’re not going to get rich working for someone else, with the exception of lucky folks like those who started with Microsoft or Google in their early days and got rich through stock options. The average American employee lives from paycheck to paycheck with barely enough income to cover their living expenses, leaving nothing for investment toward building wealth for a comfortable retirement. Hence the allure of the “Business Opportunity.”

As you flip through one of these “BizOpp” magazines, you’ll see a wide variety of advertisements for different types of businesses, ranging from simple “starter kits” for around $29 all the way to sophisticated franchises costing $100,000 or more. For most people, it’s impossible to raise enough capital to consider opening a true franchise. The franchise fees alone are often prohibitive, running into tens of thousands of dollars even for the lesser known businesses, or several hundred thousand dollars for better known companies. And that’s not even including the outlay required to actually open the doors for business.

At the other end of the scale, most people are aware that the cheap starter kits and “business in a box” packages are basically junk. But that leaves a whole host of medium-priced business startup concepts, ranging in price from around $500 on the low end to $10,000 on the upper end. I refer to these as “pre-packaged business opportunities.”

To explain why pre-packaged businesses are usually a waste of time and money, I’ll use windshield repair as an example. As I write this, I’m looking at an ad for a training program that costs $3,000, including starter materials. In case you don’t know what I’m referring to here, the basic idea is that small chips, cracks, or holes in automobile windshields can be repaired using a special liquid material that seals and repairs defects. This is obviously much cheaper than replacing an entire windshield. Hence the “opportunity” to start a business that helps people save money on their windshield repairs.

Now, in case you’re thinking, “There’s no way I would want to be in that business,” please bear in mind I’m just using this as an example out of hundreds of possible different business concepts advertised in the same fashion. And of course there are many people who would be attracted to such a “business opportunity” — people who really like cars, people who already know quite a bit about auto repair, and so on. Plenty of individuals are attracted to a business idea like this, which is why this particular “opportunity” has been around for decades.

Now, here’s the real question. Can you seriously expect to shell out $3,000 for some starter materials and training in the windshield repair business, then put a sign out, and expect to start earning money right away? Of course not! This is the #1 flaw with pre-packaged business opportunities: you still have to figure out how to market the product or service on your own.

Let’s take a closer look at the windshield repair business. Let’s say your goal is to make $50,000 per year in net income. If we assume that you can charge around $50 per windshield repair, at a material cost of around $10, then you have a gross profit (not counting your labor) of $40 per repair. To make $50,000 net, you’d need to find 1,250 windshields per year that required fixing. That translates to more than 100 repairs per month, and you’d need to keep this up month in and month out to meet your income goal. That works out to 3-5 repairs per day, depending on how many days per month you work.

Now, if you had 1,250 cars lined up down the road, all ready for the repair work, it would be nice easy money, right? But FINDING those 1,250 cars and then SELLING those 1,250 car owners on your service will be the real problem. In other words, you don’t really have a windshield repair job here. You have a SALES job, pure and simple. Most of your time will be spent finding business. Obviously, finding one car at a time will be totally impractical. Instead, you’ll need fleet accounts with major car dealerships, auto repair shops, car rental agencies, and so on. And you can bet that a number of other people (some of whom bought the same pre-packaged business that you did) have also solicited the same companies for their windshield repair business.

So again, what you really have here is a sales job. If this were a truly profitable business, then the company selling you the “opportunity” would not be making all their money selling pre-packaged businesses to people like yourself. Instead, they would be making their money by rolling out the service across the country and selling windshield repair directly to fleet accounts on a nationwide basis. But they know that there is actually more money to be made in the BizOpp world, preying on people who have the dream of starting their own business.

The message here is that any pre-packaged business opportunity that sells in the $500 to $10,000 range is typically worthless and a complete waste of your time and money. Please bear in mind that these numbers are just a guideline, and you must always exercise good judgment when evaluating any business opportunity. Just because a “hot” pre-packaged opportunity is selling for more than $10,000 does not mean that it is necessarily legitimate. Many rip-offs cost a lot more than that. But generally speaking, the promoters of these schemes realize they are aiming at people who can’t pay a lot of money to get started in business. So the packages are marketed in a way that will maximize the number of people that can afford to buy in.

If you are serious about starting your own business, then a pre-packaged opportunity is not the way to go. It might seem like an easy answer to your problem, but the very fact that it’s being sold as a packaged business probably means that there’s no real money to be made without a long hard sales grind. You’re much better off doing your own research, coming up with your own business ideas, and then testing your ideas with small advertisements to see if your concepts have any real potential. That’s how many businesses get their start. You’ll have a much better chance of making it in the world of business or self-employment if you ignore those BizOpp magazines entirely!