The Palm Beach Letter: "The notion that risk equates with reward is worse than a myth—it’s a mass delusion, a mass delusion that in our time has cost investors trillions of dollars...
It has lulled an entire generation of financial advisors into complacency about the risks to which they expose their clients... In the real economy, risk is manifestly not the source of wealth but the great destroyer."
'via Blog this'
Sunday, September 30, 2012
Wednesday, August 29, 2012
The Abundance Secret
"Add value" is the most common advice you'll hear in the ETR world. When you add value, solve people's problems, and bring solutions to the world, you are creating abundance for others. And that's the secret in earning abundance for yourself as well. There's one more piece of the puzzle, and you'll learn that today from my friend, Bedros Keuilian.
Craig Ballantyne
"Your most precious, valued possessions and your greatest powers are invisible and intangible. No one can take them. You, and you alone, can give them. You will receive abundance for your giving." - W. Clement Stone
Craig Ballantyne
"Your most precious, valued possessions and your greatest powers are invisible and intangible. No one can take them. You, and you alone, can give them. You will receive abundance for your giving." - W. Clement Stone
The Secret to Getting More Clients
By Bedros Keuilian
Most business owners think that the secret to getting more profit is more and better marketing.But that's wrong.
Yes, better marketing will get you more leads, but that doesn't always translate to more clients.
The ONLY thing that has direct influence on you getting more paying clients is your ability to sell yourself, and more importantly the outcome that you deliver.
Marketing = more leads.
Selling = more clients.
I can't tell you how many times I've seen business owners spend a ton of money on lead generation, only to lose the sale because they lacked a closing process.
Don't let that be you.
If you're good at what you do....
If you know you can deliver the results...
If your clients love you...
...then you have an ethical obligation to sell and help these people.
Unfortunately, most trainers have a hang up with selling because the first thing they see in their mind's eye is a used car salesman.
Sure that's one type of selling - if you can even call it that - but that's NOT the type of selling that you should be doing.
Selling is nothing more than a transference of feelings.
Let's take a look at my own experiences.
I've sold over 100,000 personal training sessions in my time.
My best sales day was $27,000 in personal training sales.
My second and third best days were $23,500 and $13,000.
My best month of selling was just over $74,000 in personal training sales.
And one time I even sold $89,705 in personal training in a 43-day stretch.
I did all of this by simply transferring feeling and becoming an assistant to the buyer and not a pushy sales guy.
Enthusiasm and passion mean a lot when you're looking to convert a lead into a paying client.
But in addition to enthusiasm and passion you should focus on these four factors if you want to be an amazing assistant buyer.
1. Establish rapport.
Be genuine and get to know each of your prospects and leads on a personal level. Likability and trust are critical factors in someone making a buying decision.
2. Give them what they WANT.
Every person who comes in to see you has their own reason for wanting your product or service. Figure out what they want and why they want it. Why are they there to see you in the first place? What are their biggest fears, frustrations and desires? How do those relate to the solution that your products and services offer?
Once you know the answers, you can tailor your sales process to meet their wants and NOT their needs.
You will give them what they need (in addition to what they want) once they become paying clients.
3. Create massive value.
The number one reason that people don't buy is not money, although yes, they'll often tell you that they can't afford your solution.
But in reality money is not the issue...
Value is.
It's not so much about one's ability to pay as it is about their desire to pay for your programs.
Think about it. If you saw tremendous value in something wouldn't you find a way to pay for it?
Value creation is a by-product of client experience and results.
If you're not letting your leads and prospects try out your program then you're leaving a ton of money on the table.
Give them the full client treatment from the get go. Let them experience the "experience' of being your best customer. Treat them like gold from the start. Show them the value and demonstrate how your solution is different from all other options out there.
4. Ask for the sale.
Most business owners, and I was guilty of this at one point too, are afraid to ask for the sale.
They think that asking the prospect to make a decision today would some how be wrong or insulting.
But listen, if you're great at what you do, if you deliver the solution that your prospects need, and if you believe it is worth what you charge, then ask for the sale and don't just imply it.
As far as I'm concerned YOU have an ethical obligation to sell your products and services if you deliver results and solve people's problems...
...otherwise your potential client is probably going to go buy a less effective solution or get ripped off by some fly-by-night company.
By not selling, you are not helping.
But when you deliver a proven solution to a prospect in pain, you are adding value to the world. That's how you create abundance
Tuesday, August 28, 2012
Don't Invest Your Money If You Want To Grow Rich (Do These Four Things Instead)
It's the ultimate catch-22. In order to become wealthy, traditional wisdom insists we invest our money. But for many, there's no money to invest. There are two paths to follow at this point. First, you could spend all of your time learning more about investing. Or second, you could do what Mark Ford suggests today. I suggest you listen to his wisdom.
Craig Ballantyne
"Follow effective action with quiet reflection. From the quiet reflection will come even more effective action." - Peter Drucker
Craig Ballantyne
"Follow effective action with quiet reflection. From the quiet reflection will come even more effective action." - Peter Drucker
By Mark Ford
In my ongoing effort to shock you with contrarian (and sometimes counterintuitive) truths about building wealth, I give you this little nugget to chew on today...You cannot become wealthy by investing.
(Please keep this to yourself. If my colleagues in the investment advisory industry knew I said that, they would have me tarred and feathered!)
The investment advisory industry - and by that I include brokerages, private bankers, and insurance agents, as well as investment newspapers, magazines, newsletters, and Internet publications - is a huge, multibillion-dollar business based on hard work, clever thinking, and sophisticated algorithms. But also on one teensy-weensy lie.
The lie is that you can grow wealthy through investing.
It's not a big lie. It's a teensy-weensy lie. There is plenty of evidence that strategic investing can provide returns that exceed investment costs (brokerage fees, management fees, subscription fees, etc.) and even produce positive returns after inflation.
But for that, you need time. More time than you probably have.
Let's say you have $50,000 to invest. And let's say you invest it according to a really good investment strategy and things go well. Over a 10-year period, you earn an average of 10% per year. If you started on January 1, 2012, by December 31, 2021 your $50,000 would have increased to $129,687.
That's not bad. But it hardly makes you wealthy. So let's say you extend your investment horizon to 20 years. Beginning with the same $50,000, you would have $336,375 on December 31, 2031.
That's still not enough to make you rich! So let's say you extend your horizon to 30 years. By December 31, 2041, you would have $872,470.
That would give you $87,200 of yearly income. After taxes, you'd take home about $65,000 a year. That's OK, but it's hardly wealthy. And that's after investing for 30 years!
Most of the people reading the newsletter I recently launched, The Palm Beach Letter, don't have 30 years to wait. Based on what I know about our readership, I'd say our average reader has 10 to 15 years.
So what's a middle-aged (or older) wealth-seeker to do?
You can start by deconstructing that teensy-weensy lie.
Building wealth involves much more than just investing in stocks and bonds. Most rich people get that way by consistently doing five things:
- They understand and manage their debt. They don't let debt manage them.
- They spend their money wisely, getting maximum value for every dollar.
- They continuously work to increase both their active and their passive incomes.
- They are aggressive savers, far outpacing their peers.
- They are disciplined investors. When they find a good strategy, they stick with it.
Most of the rich guys I know spend little or no time investing.
Phil, for example, a very wealthy friend in his 40s, is an expert in municipal bond investing. But he didn't become wealthy by investing in bonds. He got wealthy as a marketing and Internet entrepreneur and by leveraging some debts and eliminating others. Nowadays, he buys and sells bonds - but he spends only a few hours a month on it. For Phil, investing is a part-time way to increase the value of his savings. It is not - and never has been - his primary road to wealth.
It's the same with all my millionaire friends. They all have their own investment preferences and practices. But like Phil, none of them spends more than a small portion of his working time on investing.
As for me, I paid almost no attention to investing until I started writing The Palm Beach Letter. And yet, I managed to go from broke to having a net worth in excess of $50 million - all without knowing the first thing about stocks or options or other sophisticated stock market strategies.
Don't get me wrong. I'm not saying investing has no value. On the contrary, I'm delighted to be an investor now, and I am certain that investing will continue to add to my wealth.
But I don't intend to spend 40 hours a week studying the market. What I will do is spend an hour a week following Tom Dyson and Paul Mampilly's advice. The rest of my wealth-building time will be devoted to increasing my income. And I have lots of ways to do that.
If you want to get wealthy in fewer than 30 years, you should do the same. Devote a couple of hours a week to managing your investments and spend the rest of your working time on the other four wealth-building strategies listed above.
I hope this message doesn't disappoint you. It's nice to imagine that you can get rich in 10 years or less by picking great stocks. But it's also a delusion. You may be thinking, "I don't need to be told to limit my spending or manage my debt. I already know how to do that." My response to that is: Do you?
Or perhaps you don't like my idea that you must - must - increase your income. Most people reading The Palm Beach Letter have been working hard for 30 or more years to raise families and put their children through school. They want to stop working for income. They want to invest and take it easy.
Giving up your active income is the single-biggest financial mistake you can make. Your active income is essential to building your wealth. If you want to retire some day and don't have at least $250,000 put aside for that purpose, you need more income now.
The good news is that there are all sorts of ways to increase your income. Just as there are all sorts of ways to manage your debt, get more value out of your spending, and ratchet up your savings.
You should pay as much attention to those strategies as you do the stock recommendations you receive
Does Your Kid Need a Budget
by MP Dunleavey, Editor-in-Chief If you’re feeling bombarded with back-to-school expenses, activities, and the wallet-popping cost of child care—I hear you. With my son entering first grade this fall, it just hit me that I need a whole new budget—for my kid. | Out of the Box Relief from money stress is just a click away! Don’t miss “How to End Your Money Nightmares” on Self.com, inspired by the recent SELF-DailyWorth survey results of what keeps real women up at night. |
Child care is a major expense for families, as you know, but a study released last week by Child Care Aware wasshocking.
And even if your child is now in school, you’re still hit withafter-school care, the cost of activities, supplies, and so on. And let’s not even discuss birthdays. OK? Please. Instead, let’s all get a grip with the newly mintedDailyWorth Back-to-School Budget (and sanity saver). Just enter your estimated expenses, and (as you go along) what you’ve paid. Life is less crazy, if you plan for it. |
In Defense of Total Relaxation
How are you going to spend the last official week of summer? Will you savor the still-long days, or stress about the return to reality: back to school, back to a no-nonsense work schedule? | Out of the Box A 2010 study found that the positive effects of vacation fade away, on average, after one month. Prolong the glow by making sure you schedule fun stuff to do, post-vacay. |
Answer: Respect the recharge.
“The space and quiet that idleness provides is … paradoxically, necessary to getting any work done,” writes Tim Kreider in one of this summer’s most popular essays, “The ‘Busy’ Trap.” But working women, and mothers in particular, are prone to feeling torn in multiple directions, according to a Gallup poll last year. And the more “time poor” you feel, the more stressed you are, this survey showed. Taking the time to relax brings renewed energy. Bonus: that mental distance from problems brings perspective. And if that’s not a productive use of your time, what is? |
Smart Ways to Profit from Trends
by Galia Gichon Every now and again you hear something that makes you think, “Wow, I should invest in that!” Usually it’s risky to throw your money at some hot new thing. But if you do some research, and the trend looks promising—there’s a safe way to catch the wave. |
Invest in a specialized exchange-traded fund (ETF) or mutual fund that captures the market you have that winning feeling about. Some examples*.
Of course, any specialized funds should be added as part of your overall, balanced portfolio |
Balance Sheets Tell All
by Anagha Hanumante Have you asked your bookkeeper for a balance sheet lately? Or perhaps you're wondering, what's a balance sheet? It's a snapshot of your company’s assets, liabilities, and owner’s equity at a given point in time. |
Do you need one? Yes. For starters, it tells you what your business is worth. Specifically:
Balance sheets are vital for all stakeholders as it allows them to know how much cash the company has left in the bank, the company’s most valuable assets, and how much money the company owes. If you're running low on cash in your business bank account and accounts receivable—that’s like having a thin emergency fund. Just like you, your business needs a cash cushion to grow and be healthy, separate from your personal finances. |
Secure Your Portfolio
Rebalancing your retirement account is like professionally grooming your brows once a year. It takes minimal time, but keeps your portfolio looking good for months to come. And in this case, you can find financial balance without moving from your poolside lounge chair (jalapeño margarita optional). | Out of the Box Many retirement plans offer automatic rebalancing. Go online or consult your plan administrator to see if you can set up annual or semi-annual automatic reviews and readjustments. |
Portfolios consist of different asset classes: stocks(equities), bonds (fixed income), cash, and sometimes things like real estate. The variety in your account is call your “asset allocation.”
Your asset allocation is important because each class comes with risks and benefits, and spreading your money out minimizes the risk tied to any one particular class. But markets change all the time, and your portfolio can actually change so much that your original allocation becomes completely thrown off. Let’s say you own one mutual fund for each of the asset classes we just mentioned, and you’ve got 25% of your money in each fund. If the stock market has an amazing year, your stock mutual fund could suddenly make up 50% of your entire portfolio. Growth is great, but a diversified portfolio is better for long-term security. The solution? If you’re making regular contributions to your portfolio, stop investing in the stock fund and contribute more toward your weaker holdings. Once you’ve found your balance again, simply resume your original contributions |
Wednesday, July 18, 2012
Must Have "Guide Books" for Running a Business
The Truth About Your Job
You might think you own a business, as Mark Tier explains today, but the reality is that you probably own a job. Big difference. If you want this to change so that you have more control over your life, he has some simple recommendations for you.
Craig Ballantyne
"Create a definite plan for carrying out your desire and begin at once, whether you ready or not, to put this plan into action." - Napoleon Hill
Craig Ballantyne
"Create a definite plan for carrying out your desire and begin at once, whether you ready or not, to put this plan into action." - Napoleon Hill
By Mark Tier
I used to own a business.
At least, that's what I thought . . . until I read Robert Kiyosaki's Cashflow Quadrant.
According to him, what I had WASN'T a business at all.
Worse: I had to agree!
If you own a business, Kiyosaki says, you can go on vacation for a whole year, stay completely out of touch, and when your holidays are over, your business will have increased in value.
When I went on vacation, even for a few days, I had to be available pretty much any time. After a whole year, there would have been no business to come back to, for sure.
If you own a true business, to restate Kiyosaki's definition, it runs like clockwork without you.
If your business needs your almost constant attention (like mine did), to use Kiyosaki's schema you're self-employed: you think you own a business; in reality, all you own is a job.
Other things setting the self-employed apart from business owners (and employees) include --
- They can't walk out the door at 5pm (or, more likely, 10pm--or any other time) and forget about work;
- They can't take an extended vacation. Forget it. No "long service leave" or "sabbatical" for them!
- And -- have you ever noticed -- the self-employed don't seem to get sick nearly as often as employees.
The Solution? Getting Ordinary People to do Extraordinary Things
Wander along Main Street or through any shopping mall and keep your eyes peeled.
You can tell, just by looking, the difference between the shops that are one-man or -woman shows, and those that fit Kiyosaki's definition of a business. Here's a clue:
Some of the shops are run by kids, with nary an adult in sight. They're all unskilled labor.
Which stores? Usually the Starbucks, McDonalds, Kentucky Fried Chicken, and other chains or franchises. These businesses take people off the street and within a few days they're flipping hamburgers and making cappuccinos indistinguishable from the experts.
How?
With a manual. Usually a thick binder that's handed to every new hire. In that manual is every step--in excruciating detail--an employee needs to take to produce that hamburger or latteperfectly. Every time!
Manuals are the end product of a Business System, specifying everything the employee needs to do or know; they make it possible for ordinary people to do extraordinary things.
When every function your business must perform is in a manual, you'll be able to hire some of those kids yourself to run your business like clockwork.
And take that round-the-world cruise you (or, perhaps more likely, your spouse) have been dreaming about.
Just Do It? . . .
Consider two ways of starting a business.
The first I call the Just Do It! Approach. My own story is typical.
When--years ago--I started my investment newsletter, I did everything. Licked the stamps, went to the post office, wrote and booked the ads, analyzed the markets and wrote all the content--even laid out each issue so it was ready to print.
The only thing I didn't do was print it (but I did collate and fold the issues, and stuff them in envelopes).
As it became more successful, I added employees to the routine work.
It looked like a business--even "smelt" like a business. There was an office full of busy people; an incorporated company; customers in 119 countries; audited accounts . . . you name it, I had it.
Except for one thing: that round the world cruise.
Every word of every issue and every ad was usually written by me(and if not, edited by me); every non-routine decision landed on my desk.
As my business--ah, my "job"--became more successful, more and more things piled up on my desk. There was a bottleneck in my business that would always keep it small: Me!
. . . or: take the Franchise Approach
The second way is the Franchise Approach.
Consider what comes with a business franchise:
- A complete, proven, "off the rack" business system, including those all-important manuals so you can hire kids off the street and "turn them into experts" in just a few days!
- A manual for your job: Manager. (You can even hire someone else to take that spot while you head for the beach.)
- Training in how to run the system.
No, I'm not suggesting you buy a franchise (though that's always a possibility). I'm suggesting you start or recreate your business using the "Franchise Approach."
Imagine you're going to start a business you can franchise. That could be "cloned" thousands of times around the world.
A business that could, potentially, become a really big, S&P500 listed company.
To do that, you must first create the package you could sell to a potential franchisee: your Complete Business System.
Then you apply it.
Instead of "owning a job" you now "own a business."
Installing "Clockwork" in Your Business
Here are two suggestions that will put you on the road to having your business running like clockwork:
- Go work for Starbucks, McDonald's, Pizza Hut, or one of the other big franchised chains.
Work at Kentucky Fried or Taco Bell for just a few days and you'll experience a Business System at the cutting edge: the very bottom. What's more, you'll get to see one of those all-important Manuals I've been talking about.
Seeing that Manual and experiencing how it works will make itmuch easier to create your own for your business.
Alternatively, pick the brains of people who work there and maybe you can persuade one of them to look at their Manual.
Except "Manual" sounds a bit dull, doesn't it? Creating a successful business is a bit like baking a cake. First, you have to have all the ingredients at hand. Then you have to follow the recipe.
You can't bake a cake--or create a true business--without them.
Creating Your "Recipe" Book
Getting a "feel" for how a Business System works is one thing; to create your own you need a "Guidebook" really helps. So . . .
- Get Michael Gerber's The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do about It.
Sure, it will take you a while to work out all those recipes; then test and refine them.
But it's definitely worth it when you consider the bottom line:
- Some 50%+ of all new businesses fail in the first year. After five years, only 20% of those startups still live on.
- The first-year failure rate for the "Franchise Approach" is significantly lower: a miniscule 5%!
- And after five years? A whopping 75% of them are still coining money.
To put it another way, adopting the "Franchise Approach" multiplies the chances of your business success by almost 400%!
Isn't it time, as Gerber puts it, to start working "on your business, not in it"?
Tuesday, May 15, 2012
What Doesn't Kill Us, Will Make Us Stronger
The Event
Sometimes it takes an "event" to finally set the wheels in motion on a dream we've had. It could be the loss of a job, a financial setback, or a health scare – as Mary Ellen Tribby explains today. When used properly, the stress of that event can motivate us to massive action.
Craig Ballantyne
"If you want to accomplish anything, get out of your comfort zone." – Kekich Credo #1
Craig Ballantyne
"If you want to accomplish anything, get out of your comfort zone." – Kekich Credo #1
By Mary Ellen Tribby
"At this point, we can't rule out malignancy," the doctor said.
I just looked at my husband. I knew he was asking the doctor questions, but I didn't hear any words. I saw his lips moving and felt his strong hand on top of mine. But all I could think was I needed to wake up. ("This is not happening. I know I am just having a bad dream.")
It wasn't until I was in the front seat of our car that I realized it wasn't a dream. "Are we going home?" I asked. "No," my husband said. "We are going to get your ultrasound and more x -rays." "Oh," I replied.
It didn't really matter where we were going, because all I could think of at that moment were the three beautiful children my husband and I have been blessed with.
First, my thoughts went to Mikaela who was ten-years-old at the time. Without me, who would she talk to about boys? Who would show her how to put on makeup and help her pick out a college? But the most painful thought was... who would comfort her in her loss?
For the past three years, Mikaela has accompanied me on the Race for the Cure breast cancer walk.
She is well aware of the horrors of treatment.
She's often commented about people walking in honor of a loved one. For her, I knew there would be no sugarcoating the truth.
Then my thoughts shifted to Connor, my eight-year-old son (at the time) – an amazing baseball player who plays it cool with his dad and friends.
He is an undeniably sweet boy who always writes a special card for me on Mother's Day. What would he do next May? Would he pretend to write a card, not telling his teacher that he has no one to give it to?
Suddenly, I felt like throwing up. I asked my husband to pull over.
Once back in the car, all I could think about was Delanie, who was our four-year-old princess at the time. She is so used to having both my husband and me tuck her in at night. She wakes up each morning with a smile on her face and kisses to spare. Have I made enough of an impact on her life that in 10, 12, 15 years from now she will remember me?
Over the following three weeks, I was poked, prodded, and sliced.
On the 22nd day, I found out that I did not have breast cancer.
You would think that I would be so happy that I could not wait to get back to my normal routine. But no. Something happened. Going through that breast cancer scare changed my life in many ways.
You see, I've always wanted to start my own business – a business that would empower the working mom. A business that would provide the tools for EVERY working mom to lead a healthier, wealthier, and more balanced life.
It is my belief that working moms have more influence on what our world will look like than any other single group of people. Plus, they have the responsibility to match. I even purchased the URL for my new business back in July of 2007.
But I already had a job. And not just any job. I had one of the best jobs in the world. After all, I was Publisher and CEO of Early to Rise. So I kept saying, "Someday. Someday I will start that new business."
I'm not sure what kept holding me back before the cancer scare. I think the fact that I loved my job. And that, even as a CEO, I was able to enjoy quality time with my husband and three kids – from attending their baseball games, school plays, and tennis matches to taking long walks on the beach.
When I would speak at conferences, working moms who heard about my career accomplishments and wonderful family life always asked me, "How? How did you do it?" Those moms were always with me. Tucked in the back of my brain. Not forgotten, but put on hold for "someday."
But after the scare, the need to create this new business and help other working moms have the lifestyle they wanted and deserved was overwhelming. I could not "NOT" do it.
Unlike most working moms, I had developed systems and strategies for leading a complete and fulfilling life. I had escaped the guilt and the feeling of inadequacy. I had raised kids who were strong, confident, and compassionate. And I knew that I could teach any working mom who wanted to make more money to accomplish that as well.
So in one of the worst recessions America has ever seen (Remember this was the end of 2009), with one of the highest unemployment rates in history, I left the best job I ever had in my 25-year career. Three months later, Working Moms Only was a reality.
What I learned along the way will help you jumpstart any new business. You see, I did not take a dime from any investors, even though the offers were there. My husband and I took $10,000 out of our personal bank account and put that money into our new company.
Several of my industry colleagues questioned me about turning down investors and using my own money. My answer was simple. This was the way we had been teaching ETR readers to start a business – and this was the way I was going to do it.
These are the three most valuable lessons I have learned thus far:
1. Less is more.
A friend of mine recently left her corporate job to start her own marketing consulting firm. The first thing she did was find office space. I asked her why she was doing it. She told me that, with the real estate market in the dumps, space was a bargain. So she was able to rent space for $1,500 a month that normally went for three grand.
But she did not stop there. She bought a desk, chair, filing cabinets, and a couch. She spent $5,000 before she wrote a sales letter or had a website built.
After two months of trying, she finally landed her first client. That client is paying her a $2,000 a month retainer. You do the math.
Back in 2009, I had a four-bedroom house and three kids who had their own rooms. I did not have a library, den, or office. Still, I did not go out and rent space. I converted my rarely used dining room into my office. (Heck, we're kitchen people anyway.) It overlooked a golf course, and I find it very conducive to writing. When I needed a change of scenery, I would take my laptop and sit out by my pool. I did not buy filing cabinets or print business cards. I had a really good computer and I understood the value of knowing how to use it to it's fullest.
2. Work on your business every day.
When you are starting a brand-new business that is going to be your livelihood, there are no weekends. You don't get the day off because it is your wedding anniversary or your kid's birthday. You have to make sacrifices.
Now does this mean I missed Connor's birthday? Of course not. But after he went to bed that night, I worked. I worked until I finished everything I needed to do. Sure, the goal of having your own business is to get it to the point where you are living your desired lifestyle. But this does not happen overnight.
You must take your business seriously. For this very reason, I vowed that I would not work in my PJs. I still get up and go to the gym first thing in the morning. I then shower, dress, and dive into my work.
I don't stay in bed an extra hour or talk on the phone. I treat my business with respect – as I have always treated someone else's business that I was running.
I know far too many "entrepreneurs" who are still in their pajamas at 2:00 in the afternoon. These are the guys who are always asking why they are not doing as well as their competitors.
3. Know your market intimately.
It's best if you are a member of your target market. This is the road I have taken. I knew what it was like to be an executive before I had kids, and I have been a working mom for 11 years before I started Working Moms Only. I honed the new skills I needed over those 11 years. I am now in the top percentile of highly paid working moms.
If you are not personally in your target market, there are several things you can do to get yourself up to speed. Start with these:
- Study your competition. Understand what they do and figure out how you can do it faster, better, and cheaper.
- Use Amazon to get insider information about your prospective customers. Read reviews on products similar to the ones you are thinking of developing. Decide how you could address buyers' concerns and enhance the features and benefits they like.
And this is important . . .
Yes, my epiphany spoke to my passion. However, starting and cultivating a profitable business is important. And, managing that business while procuring flexibility adds tremendous value to my life.
As you can see all three sides of the triangle, money, passion and flexibility should be considered in starting and running your business. As your business grows the priorities will shift. Some days all three may share in equality. Some days one or two may take a strong lead. Just like all aspects of your life your business in continuously evolving.
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