Revealed : The Secret To Small Business Success ~ Social Media Business Blog

There is a dire trend occurring globally. The collapse of multi million dollar companies that have operated for over 50 years. In Australia we have lost a number of household brands, most recently Rosella, a 116 year old food manufacturing company based in Melbourne.

The Cycle of Success

I personally find this devastating. There are so many people affected by business closures. Through experience and research I firmly believe many of these disasters could have been avoided. Greed, lack of planning , lack of risk management, and a refusal to change and implement modern marketing techniques, have contributed to the majority of company closures. The way business growth occurs these days is not the same as it was 20 years ago. Any business that fails to change the way they plan for growth WILL FAIL TO SURVIVE.

So, what can you do to ensure your business will sustain growth and thrive? Read on.

REMEMBER - BUSINESS FUNDS ARE NOT YOURS

With a background in accounting, and over 15 years experience working with the finances of over 200 companies, I have only come across one one company where the owner/director does not withdraw excess funds for themselves.

Thinking company money is for funding a personal lifestyle is a MISTAKE. Simply because your business is making money does not give you the freedom to drain the bank accounts. Prepare a personal budget and pay yourself a weekly wage/dividend from the business. Your business is a separate entity to you. In fact, should a company be placed into administration in Australia and the director has taken excess funds, they will be forced to pay the funds back to the business.

FLASHY CARS & HOUSES DO NOT MAKETH THE MAN, THEY KILLETH THE BUSINESS

Show me a company director of a multi million dollar enterprise who does not drive a luxury car and live in a mansion, and I will show you a pig that can fly. It does not exist. Who pays for these flashy cars and houses? Not to mention holidays, clothes, school fees and more? The company does. These funds, left invested in the business accounts, will sustain growth. Get excited about your business bank balance, not your personal wealth. That too will come. When times are tough this excess capital becomes your rainy day saviour.

PLAN FOR PROFIT IN YOUR CASH FLOW

There are still many businesses not preparing and maintaining a business cash flow. A well structured cash flow that also budgets for tax liabilities, superannuation and profit, will provide you with the sales figure you need to achieve. Sales Targets made easy! Simply, knowing the total of your expenses, liabilities and profit, you will then know exactly how much income you need to earn to cover all expenses (including profit).

EXPENSES + LIABILITY PAYMENTS + PROFIT MARGIN = SALES TARGET FIGURE

BREAK DOWN YOUR SALES INTO DAILY GOALS

A serious business owner should kick themselves if they do not have set sales targets. Regardless of whether you sell products or services, you must know the income figure that needs to be achieved. Once you have this figure, set yourself a daily goal so you know exactly what must be earned each day. If a daily figure is not achieved, then add it to the following day and so on until your target is reached. Not reaching your sales targets will then tell you something is wrong and you need to up the marketing or review business operations. You must do everything you can to achieve your sales targets. Sitting back and expecting clients to drop in your lap is fooling yourself.

MARKET YOUR BUSINESS ONLINE

I consulted with a business this week on business cash flow and marketing plans. I was shocked to see they spend $25,000 annually on Yellow & White Pages advertising. Goodness, what a waste of money. If you take nothing else from this article, please remember this; traditional marketing techniques no longer work! Print media, mailouts and telephone directories will not deliver your marketing message the same way online marketing and social networking will. Find a social media specialist, website developer and SEO guru, join groups on Linkedin and contribute to discussions, spend your marketing money the right way. Measure your marketing activities to make sure you are getting results. Marketing without knowing how effective you have been is a waste of time and money.

INVEST IN RESEARCH

By investing in research I do not mean scientific research. Before you hire a specialist check their credentials and get comparative quotes; do not invest in a website until you research the market prices; educate yourself about you own industry trends; research a clients exact needs before you quote on the project. A thousand dollars wasted here and there will one day be needed to save your business.

I can guarantee if you follow the above tips as from TODAY, in a months time your business will flourish.

IMAGE CREDIT : Thank you to star2success.blogspot.com 'cycle of success'

About the author

Tracey Munn is a business growth specialist with qualifications in Accounting & Psychology, along with many years studying the psychology of social media and it's relevance to business growth. Tracey is also the founder of Small Business Gurus based in Queensland Australia, and consults with businesses nationwide on success planning, cash flow and marketing strategies. Her specialty is doubling business income within 6 months.