Strategy, Finance, Marketing, Sales, Service/Product Delivery, and Follow Up
These are all components that when combined, create your business ecosystem.
Components in a business are like spokes on a bicycle wheel. If your spokes are bent, broken, or nonexistent, your ride is going to be uncomfortable at best and dangerous at worst.
The next time you question, why new contacts are slowing, sales are down or you’re not getting likes or referrals, go back to your systems. Chances are, you may need to tweak your system for better performance.
Like a bike, good business owners need to perform preventative maintenance on their businesses on a regular basis. Good business owners consistently check in with their systems to be sure that all aspects are being done correctly and consistently. Over time your systems will need to evolve with your growth, which is a great thing!
Here’s a breakdown of each of the Six components.
1) Strategy- Planning how to get to the goal that you set for your business.
Every successful business needs a plan of action. I mean you can go on a road trip without a map or GPS, but chances are you won’t wind up in the place you were hoping for. Business plans often scare new business owners. Try downloading a business plan template on Google and you may be sitting in front of a 32-page document. That would freak anyone out!
Look, unless you’re planning on creating the next Facebook, you probably won’t need anything that complex for your business startup. I’ve actually seen business plans started on a napkin at a restaurant. What you’re trying to create here is a simple flexible list of steps to take to get started.
A startup business plan doesn’t need to be any more than a single page. On that page you’re going to record what you want to do, who you’re going to do it for, what problem you hope to solve, what finances, elements, and tools you will need to do this thing, and finally what your future goals, dreams, and hopes for this business are. That’s it. From here you can add more specific details and flesh out each of those topics as you begin to grow.
2) Finance- Bringing in enough money to keep going and make your effort worthwhile.
Money. We love it and hate it. It's easy to lose, hard to earn, and sometimes just seems to have a mind of its own. Money is the lifeblood of any business and without a watchful eye, your checkbook balance can be the difference between a full wallet and a closed sign on your window. But as important as it is money matters don’t need to be difficult.
For new businesses, the most important area that you’ll need to be focused on will be your startup costs. Do you have enough cash to purchase the equipment, office supplies, inventory, furniture, and the like? Do you have enough leftover to pay for recurring costs like rent, memberships, utilities, or employees until your startup starts to show a profit?
For existing businesses, you’ll focus on profit and loss. The big question here is do you make more money than it costs to run your business? Learning at least the basics of bookkeeping, budgeting, and projecting sales is super important. Being able to research and find the best prices from suppliers and learning self-control is very important in knowing when to buy and when to hold off.
As you grow or if you’re a bit of a math dyslexic like me, you’ll probably find yourself needing financial help and reaching out to a reliable bookkeeper and accountant to keep track of things This is a no-brainer.
3) Marketing- Attracting attention and building demand for what you’ve created.
If you don’t think there’s an art to marketing, then search Google and see how many marketing books come up. All the startup money in the world is useless unless you’re attracting clients to your business with the goal of buying what you’re selling.
There seem like a million different ways to market a business, but the correct way is the one that works for you. There will be a lot of trial and error at first but with time, consistency, and a thorough understanding of who your client is and what they want, a pattern will arise. Focus on what’s working and be prepared to constantly adapt as your customers’ needs change.
4) Sales- Turning prospective customers into paying customers by completing a transaction.
For most of us, the word sales brings a feeling of dread or anger. The thought of unwanted automated telemarketing calls, pushy car salespeople, and insincere retail store representatives comes to my mind. But in today’s entrepreneurial environment, the word sales has a new definition.
Sales is no longer about coercing someone to buy something they don’t want but rather, it's finding potential customers who already want or need what you're selling. It’s about creating an authentic relationship with them and educating them as to the benefits of what you’re offering with the goal of asking them, would you like to purchase this? There’s a well-known quote that says, “No sale happens until you ask for it”. When you think of it this way then you can start thinking of each contact as a fun opportunity to serve.
5) Service / Product Creation- Giving your customers the quality or experience that you’ve promised.
This is the heart of your business. The thing that makes you want to get out of bed in the morning because you love it so much you can’t wait to show or share it with others.
The key to a successful sale is providing value with a service or product that exceeds your clients wishes. Your creation is built around consistent attention to detail, and unsurpassed service and you do it in an efficient timely manner. Shortcuts are never taken even when you are busy and being open, honest, and willing to fix any errors when things don’t go as promised is a given.
6) FollowUp- Checking after the sale to make sure your client is satisfied with their transaction.
As we all know, we’re busy. We lead busy lives, work in busy jobs, and live in a world of busy distractions. People are often attracted to the next shiny object. That can lead to a once faithful customer to reach out to another business for no other reason than they asked.
It’s a proven fact that it cost less to market to an existing client than a new one. By following up with your customers, you communicate authentically to them that you're actively interested and involved in ensuring that their needs have been met and that you have solved their needs or problem. That recognition is often all it takes to continue a customer relationship. Customers will stick with a business they like as well as provide referrals to their friends and family. So be likable.
It doesn’t matter if you’re running a full or part-time solo venture or a billion-dollar brand. A business is the sum of its parts, and each of those parts demands a lot of attention to stay healthy. Healthy parts create the synergy needed to maintain the health of your system. Create and maintain a healthy system and see the results of a successful business.
If you’re in a place where you want to create your own financially successful business but don’t know where to start, I can help. I offer both one on one discovery sessions as well as my Find Your Perfect Business Idea Program to get you started on the right foot.
Have some more questions? I would really like to help! Message me.
Let’s Chat! Dave
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