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KJCE 1370AM>Audio on Demand>>Small Business Financial 06/22/2014

Small Business Financial 06/22/2014

Jun 22, 2014|

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If you're -- business owner pay attention. It's time for the small business financial shows with a small business tax consultant. Professor and lecturer comfort shoe -- split comfort give you the knowledge you need to increase profits and grow your business now. Here's your host comfort should -- Hello everyone welcomed the small business finance I don't know I am here -- -- it and. Helping you was a small business owner find success in business. You can listen to Purdue is broadcast of our programming top thirteen seven. And you can find practical insightful information for your business at our website which is SM BIZ financial dot com. Today we're going to be talking about making your business work. I will be focusing on. Business. Owners whose sense that there is a disconnect somewhere in their business. And that it's hindering them from generating revenues or even making a profit. -- self employed person wants their business to work but figuring out which pieces to -- -- so that the business can work. Is a challenge at times sometimes you're searching for solution and it just seems like you can't get ahead. Maybe it's -- the right marketing campaign. So that you will be able to reach your target -- consumer market perhaps it's getting your costs under control. When a business owner who's facing a challenge begins to think that there's no way to overcome that frustration sets in. And the business may begin to feel like it's a Burton. Sometimes. Business owners to not even realize that this frustration. Is causing them to make poor decisions which can lead to more problems. Or make the situation worse. Another observation worth noting is that when a person starts to feel like they're losing control. In the heat of the moment there's a tendency to overlook all -- principles. And the natural reaction for handling a situation takes over. This reaction is not always the best course of action because it's coming from anxiety. And usually decisions in this case are based on emotions. Some of those emotions are desperation. Fear. Embarrassment. Confusion. And uncertainty. Notice and keep that in mind. That a decision based on emotions. Is no decision at all. Decision -- -- to be based on facts knowledge. Be it from experience or being taught. So people make decisions from information that is available to them that's why learning should should never seeks. So how do you turn your business around to get it working for you. How do you start to turn things around. For the best in your business when you've been operating the business for a few years already. Now if US a business owner is looking for a way to -- your business work. Imus say this before you do anything. Else I want you to track. And see if you have these 4 things that I am gonna share with you in place. The first thing is your business model. Have you ever thought about how you're going to market your business. How your going to attract customers to buy your products. Have you ever wondered how those big businesses and being as entrepreneurs -- just always seem to know exactly what to do to make money. Well I've got to tell you it didn't happen as easily as it appears. Of course they do marketing. But there was something else they did before they figured out the right marketing formula. It started with the draft of a business model. And then they tested it to see if that was effective in getting them the results they wanted. If the model didn't work they designed another. And continue to tweak it until they found -- formula that worked. Some of these business models were already being used by other business owners in various industries. So when you start -- simply selected a few from the already proven methods. Within their industry and applied it to their own business and they -- begun to make money. So what it's a business model it is a blueprint. Of how your business is going to create value for your customers. And how you plan to generate cash flow from providing the valued services or products to your customers. The business model is commonly known as your profit formula. It needs to capture. The essential cost of delivering value to your customers. In this case. Value refers to the benefit you are providing to your customers. How -- -- value in many cases will then justified her reason. Or at the price you were charging for those services. -- products. Now. I'm going to walk you through the essential elements. Of what every business model needs to happen. And when I'm done. You will hopefully see why this is the very first thing that you need before designing a marketing plan. And perhaps any of the other plans that we're going to be taking a look at today. You wanna start by asking yourself. These few questions. What value in your business argue creating. Remember value. Value refers to the benefit you're providing to your customers. It could be anything that you are. Maybe perhaps satisfying a neat maybe -- satisfying the wants. Perhaps it's convenience. Or it could be that your helping another business function more efficiently. So make sure they you know. What value you're creating. The next thing you want to do is identify. Who your customers are work. -- -- this possible. Determined. The demographics it's it's such as age income range. Stage in the family circle I mean cycle where they aren't. -- Whatever values that they they they like. You wanna know about they're buying behaviors. And any related products backed. They by eight. You know or examples. Of things that you should take into consideration because some of those products could be related. To our services could be related to what you're offering. -- some industries of course are much easier to drill down to specifics than others so you you wanna go just as far as he can't. I would also point out that your experience in the industry. Or access to industry data can make the research process somewhat effortless for you so keep that in mind. The next thing you want to ask yourself this how would like going to deliver this value to my customers. That target market. You know that target at customers that they do you would have identified you wanna ask yourself how am I going to deliver this value to my customers. I am talking about your distribution strategy. Will you offer your customers the convenience of shopping from home on line with free shipping and handling. Are you going to partner with the distribution company. How about offering on demand services. Are you going to be providing 24/7 customer service. You know perhaps an easy to use website with online track. Will you pick up and drop off customers. Will we have your business and a business district or will you. Have been -- residential are closer residential neighborhood. These are important things that unique to. As sacks. And once you determine who your target customer bases it will help you. You know to consider carefully how you -- I -- deliver your value to your customers. Once you have determined what you value your offering. I'm -- offering undervalued to -- how you're going to deliver the value your next question is how much will you charts. There are several ways to determine. The pricing -- charge for a service or product but it will depend on your industry for example. Manufacturing companies will have to take into consideration all the cost of manufacturing the product. Yeah and in the -- financial world there you know week we have the term both the bearable cost. And fixed costs bearable cost -- cost that the change of proportion to the level of production. So the more units are producing award the -- you know you know items that you have to bide your costs will then go up so that's bearable cost. And then you have your fixed costs on. And they could be like you don't your payroll salaries. The cost of I mean it like your rent your marketing costs or -- your office supplies I should I should say though that thumb. Some payroll cost like wages in bids directly related to -- producing the product that's also going to be part of your bearable cost. So either way you want to take all of this costs into consideration. Right. Say oh. And then you're gonna add some kind of -- On that. So. -- in the retail industries for example. That it's not be manufacturing costs but the cost to acquire the goods that -- that you know they're going to be selling. So in of course once again you wanna -- about your desire profit to come with a price but it's got to make sense you wanna see what your competitors are pricing and you know you wanna be realistic about it a case about something that unique to assess something unique to taken a look at. Next. Ask yourself who can you -- you it. You know perhaps too -- cancer customer experience or to help provide your business with any -- process. Keep in mind that the delivery channels also have a -- they just want to point that out so make sure that all costs are included. The reason this is not important is because small business owners especially self employed people have a tendency to ignore what may appear to be small. Cost. I asked for example -- gas to visit clients. Labor costs from doing all the work in in your home office. I am but those costs add up to become a major expense when you tabulated you know. I took this to use your per year album tax return numbers are your profit and loss statement. You know to help you budget compressor product correctly and you know it eat it if you're new. You're gonna once again have to do some projections makes -- testaments you know see what's happening in the industry. But if you already been in business a couple of years already take a look at your prior financials. Okay and to kind of help you guide you in terms of making sure that your including all the costs. From the product before you -- on your target profit to it. OK you are listing to small business financial here and -- thirteen seventy we're gonna -- Raising the stages -- and a -- warning certainly you. About how to make your business work. -- Prayer for you small business owner looking for answers to help you solve your business challenges like port access funding for your business seeking help understanding. Flat tax issues what to do to be a profitable business well look no further. Visit the small business financial website at SMB -- -- financial. Or you can learn about upcoming workshops networking events I get lots of free information again go to small business financial's website -- SMB IC financial. And. -- Welcome back to the small business financial shows once again here's your host -- comfort should that it's welcome back. You are listening to small business financial and I am your host comforts advance. Helping you as a small business owner find success in business you can listen to print this broadcast our program that talk thirteen seven. And you can find practical insightful information for your business at our website which is SM ER easy financial dot com. We aren't talking about making your business work. Well to do that you've got to work your business and not let it works you. I sharing with you the or crucial. Things that you need to look into it. We are still on the business model which is item number one. And -- spending time on this because it is very important it's almost like the foundation work that needs to be fixed -- list first in in in in a little big you'll see why. So far we I have shared with you about the essential parts. Every business model needs are questions to ask yourself so that you have a clear vision of what you're doing in your business and where you're going. Don't run your business with blinders on be in the know and have a clear direction. If you find that customers' needs are changing make the adjustments as you discovered them. Or get feedback so that you know exactly what you need to do because you want your business to work so to recap. Ask yourself these questions. What value in your business are you creating. Who are you offering the value to. How are you going to deliver the value. How much are you going to charge. Or delivering this value. You want to determine who your partners are. You need to determine how much it will cost you to deliver the value this is extremely important. You need to know the cost of being able to deliver the services -- value to your target customers. Sometimes what winds up happening if you're not getting revenue. Are making a profit of rather I should say it's not because you're not bringing in revenue but sometimes you have an accountant for your cost. Properly so they're certain cause that maybe you just see as you know miscellaneous not worth considering it's. No you need to consider all of that whether it's gas. Whether it's time that your spending as a business owner working on something you need to factored those different cost and so that you can price right. To make sure that everything all the expenses and all the costs are covered. And you know once you figured out all that cost then you can add on what you that profit margin that you're looking for. So that you can begin to realize profit in your company. OK so if if you have in incurred costs from maintaining partners hiring experts. Employed he's. Or contractors you know to help your business achieved results you also want to include those costs. Also you main core costs from implementing technology like building a platform even if it's a one time cost. You know. There is a way that you can sort of -- back costs over time. Maybe it's subscribing to a service on a monthly basis don't ignore those costs just because it's you know technology or the amount seems insignificant. Include all that costs. Lastly. You want to know. How you're going to maintain your business share in the marketplace in growing. That's really important too hard you gonna stay competitive how are you gonna take your business you know to the next level. Okay. Now noticed that the business model. Back but you know these parts in the business models that have gone over with you covers pricing and cost which will be a part of your financial plant. It covers targeting customers channels of delivery and -- maintaining market share and growth strategies which are all part of your marketing plan. It covers all the essentials and off as a starting point to BO the other crucial plants. You know which brings us to the second thing which is more on marketing plan. Finding the right marketing technique can be one of the most challenging aspects that. You know running a business for self employed people primarily because it takes money to employ the right marketing at times and many small business sound. Owners of small enterprises. Just can't afford it. So what happens is that many self employed people rely on organic methods to build their businesses. But this too can be expensive and ineffective without first determining the right business model as I mentioned -- previously. Marketing your business is crucial to getting your business to work. If you want to generate revenue you'll have to advertise. People need to know what you do. How you publicize your business will depend on whether you're providing a service or selling a product. And houllier seeking to offer these services to in addition. You want to consider the current trends in the marketplace like whether there's a demand for these products and services and if so why. You know how to stand out from others who also do what you do. And what other services and products your perspective customers are you seeing. This is all part of your marketing regardless of your budget your marketing plan needs to be strategic. And once your business model is complete it will be easier for you to plan out your marketing efforts because you would have insert. The some of those very critical questions for decision making. Number three is your financial plan. Pulling the price seen. And cost information from your business model is what you want to do and then you wanna use that to expand on in your financial plan. So while you're marketing plan will help you determine how old. You will bring revenue in your business your financial plan will help you determine your current and future funding needs. As well as expected income. In the future this is crucial you know to making your business work because without adequate funds in the business. You critics parents and eruptions that may cause delays are robbed you of your opportunity to create well it is an opportunity. Money's a very uncomfortable topic for a lot of people and that's because it's very you know very personal matter for a lot of self employed people. There are many self employed people who leave directly off of every dollar of profit generated by the business. As such. There's not enough money to reinvest back into the business. So they just manage their business in a way that accommodates their personal spending needs and their business operating meets that challenge. What will help I must say. It's what I can what went. I think it you know what is number four which is the operating budget. And it's a great tool to help you control your costs. If you control your costs. You know keeping it to a minimum. You'll have more money in the business to cover business cost or reinvest. In equipment that you use in production. Now if you already have -- -- crucial. Come into place and you still feel like there's a disconnect somewhere in your business please. Go to our web site and send me an email at like the opportunity to help you access. In the meantime I would recommend that you review these essentials plans that. We've talked about today. Make sure that all the basics are covered. And examine it to see on -- you've carried out. All the plans all the things that you talked about you know. It it can't. It can't just be that you are putting together -- plan but once again you've got to work that plants we've got to put an -- to action. And sometimes discouragement can paralyze or eat away at a person's motivations distracting yourself. Be empowered and try again. Well we have come to the end of our show. However I would like you to know that most of my picture with you today our selections from a handbook that will be coming out soon. It's where business owners a -- self employed the book answers the questions of how to make a profit bit. It covers things that a priority share with you today in much. You know balancing your business and personal finances it also talks about the three most important costs in business and strategies for cash management. So if you're free -- independent contractor independent unprofessional whether you're. Operating your business from home or a commercial space. This book is an excellent resource he must have among your business -- resources. It will be available on our website for download. Next week. And our website. Is SMB I -- financial dot com please visit our FaceBook page. Which is FaceBook dot com small business financial post a question or comment on Twitter. You can link through Twitter from our from our FaceBook page -- website send us an email. Two small business financial I mean not small business taxes at Thank you so much for listening. And remember when you get out of your business when you are looking into it yeah.

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