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Wholesale products

I get this question a lot from my clients because wholesale products requires the sharing of profits with the retailer, so the margins are lower in your business. While it isn’t right for every business, I have helped several clients with very successful wholesale and consignment lines of business that rapidly grew more income, greater audience following, and ultimately a larger retail base.  Here are a few reasons that wholesale and consignment can be great for your business.

 

Wholesale Products

 

 

Wholesale Products: Larger orders than individual sales

 

When any customer buys you should do a happy dance. But when a wholesale customer buys it’s a bigger order and a bigger happy dance. If a customer buys one, a wholesale order can buy 12. Even with the loss of margin, you have more volume, and you make more income.  Just make sure your numbers are right on the wholesale and retail prices.  Know your production, packaging, and labor costs.  I have several clients with retail margins over 60-80%, so wholesale margins are still beautiful even sharing 25-40% with a retailer.  Take the time to build a solid relationship. Give them the product knowledge and watch how your business customers begin to promote YOUR product when people ask for suggestions.

 

 

Wholesale Products: Introduction to their audience

 

And the reason you don’t mind giving margin to the retailer is… because you are being introduced to their audience! They are paying for their storefront, labor, overhead, etc., and you get to be an option for the customer base they spent time and money building.  They are making something, and you are still making something. It is a win-win. You get shelf space, physical or virtual, and the visibility.

 

 

Wholesale Products: Reordering more frequently

 

Another aspect of wholesale is that there are more frequent orders from the buyers. Individual consumers buy maybe a few times a year (depending on the product) but businesses are going to order as they are selling. A key here is to be organized and to be a great account manager. Know the business owner’s intentions with your product. Learn what is selling and what isn’t.

 

Again, build that relationship. Make suggestions, call, and ask for the reorder (don’t make them run out first), and for the love of all things holy, don’t take it personally if an item isn’t a hit with their audience.  The reorders from a business are generally larger than an individual order, so more volume, more income, more chances to serve the business owner and their audience.

 

 

Converting fans to direct retail

 

This happens frequently. After a time, the customer may begin to order directly from you, at retail.  This happened to us with the coffee business. People bought our product from a local store, then joined our Facebook group, then directly ordered from us.  I’ve seen this happen with several clients of mine as well.

Make sure to have your website or online store on your product label.  But please note: DO NOT undercut your wholesalers with deep discounts online. It’s very disrespectful and will cause you to lose wholesale business fast. The retail price is the retail price. If you buy from me, from them, or from the other them. The ONLY time I’d think about discounts would be if something is discontinued or you are discounting wholesale as well, the margin remains the same for the retailer.

 

One last thing, consignment can be a great way to test out a relationship with a potential wholesale customer. Offer to let them try it out in their business for a time, say 30-60 days, and after it sells out, you would be happy to have them as a wholesale customer. The difference is that on consignment you are paid only after an item sells. In a wholesale account the business customer owns the item once they are purchased at the wholesale price.

Business Agreement

Running a business without written business agreements puts you and your clients at risk for misunderstandings. It puts you at risk of not getting paid. And further puts you at risk for chargebacks, where the client goes directly to the credit card company and claims fraud after receiving services. Without a written agreement, you will likely have to refund any money you’ve received, even if your policy is “no refunds.”

Business Agreement

All About Business Agreeements 

 

 

The truth is that contracts, or as I call them business agreements, do not have to be complicated, written in legalese, or 20 pages long to be enforceable. What they need to be is yours, not someone else’s copy/paste, clearly written, including all terms, and signed.   When I say do not “copy/paste” someone else’s, I mean do not copy/ paste. There are formats online you can follow, but don’t include things you don’t understand and just change terms just because they have it in theirs.

 

 

Here are the main things to include in your business agreements.

Business agreements:  Be Clear and keep it simple.

 

Nobody likes legalese. Nobody. Drop the “whereas” please. Just say it clearly and keep it simple. If the program lasts six months, it lasts 6 months. If there are 4 monthly payments, say that. People want to know what they are signing up for. It doesn’t have to be fancy, lengthy, or in legalese to be enforceable. You can have a legally binding agreement written on a napkin in a bar (there’s a law case on this!), not that I’m suggesting that approach.

 

Business agreements: Include QTIPS

 

The specific terms need to be spelled out. You can use QTIPS to remind you to include these things:

 

                Q: Quantity  (6 sessions, 2 bracelets, 5 massages, etc.)

                T: Time of Performance (15 days, 6 months, 1 hour)

                I: Identity of the Parties (You and the name of the client/ customer)

                P: Price

                S: Subject Matter (what are they specifically buying? Coffee? Coaching? Copywriting?)

 

When you include the above terms of your agreement, there isn’t much room for misunderstanding. Just make sure you are specific. Don’t say “fruit” if you mean “orange.” It can be a single sentence, “This agreement between Me and You is for Six 30-minute life coaching sessions over 6 weeks for $350.00.” All the terms are there. You know what you are giving, and they clearly know what they are getting.

 

Business agreements: Spell out the policies

 

This is where people often leave out things that come back to bite them. If you have a no refunds policy, you must put it in writing, in the agreement with the terms, and have it signed. If you offer refunds or replacements within 30 days, it must be in there as well. The policies are the actual guidelines within which you run your business. If you require a deposit, if you require pay in full before a VIP day, if the customer pays shipping, you must let your people know this BEFORE they complete the purchase.  

 

Many times, I see entrepreneurs who have policies develop only after an incident. You must be more intentional than that.  Walk through the customer journey in your mind and find the sticky spots where they may have a question or an issue about your product or service, and how you want to resolve it.  If someone doesn’t like your policies and chooses not to do business with you, trust me, it is far better than the bitter dispute with the credit card company over the chargeback later.

 

 

Business agreements: Get any changes in writing

 

If you make changes, and they do happen, just put them in writing and sign and date them. “You and I agree to change our agreement to include XYZ.  This change is effective immediately.”  Do not rely on the memory of what you said on the phone, and the out of context email isn’t any better. Take a minute and “memorialize” the change.

 

 

 

Business agreements: Be prepared to enforce the agreement

 

This is the part of business nobody really likes, but this is the reason you have written and signed agreements. You must be prepared to enforce them. In my own business I allow people to pause coaching for a month or two if life happens, because I understand that life happens, but we don’t just “cancel” the agreement because life happens. We pick back up and finish out the terms of the agreement. I’ve never had to actually go out and enforce anything, because I have great clients, but if that day ever came, I will. This is business. My livelihood depends on my clients keeping their word, and their own business growth and development relies on it too. You must view this from an objective place and understand that if your clients don’t keep the agreements, your business could go under. Be stronger than that.

 

Finally, Having an attorney look over your agreements is a wise decision. I don’t just say that because I have a law degree. Attorneys went to school to spot gaps and look for language that is written in a way that can be interpreted differently than you think it means or is ambiguous.  If you are skipping the attorney for now, but don’t have written agreements, set aside time to follow the above steps and get your agreements together now. 

Financial Tips for Your Side Hustle

Here is the final installment in our “financial tips for” different industries—Financial Tips for Your Side Hustle. This article is for anyone building a business on the side of a full-time job or on the side of another business.  Creating a side business and growing it to allow you to replace your 9-5 and go full time into entrepreneurship is an exciting journey. Here are a few financial tips to help you make that happen.

 

Financial Tips for Your Side Hustle

 

 

Start Your Separate Personal Financial Identity immediately

 

From day one, treat your business as a business. Separate your banking, get a debit card for business expenses, and have all income from all sources deposited into the account. Just point your PayPal, Stripe, Square, or whatever you use to the business account.  Pay your expenses from that account. You will file a different tax schedule when you own a business. Keep receipts and treat it like the real business it is right from the start.

 

 

 

Have a Pricing Strategy That Gets You Into Profit Quickly

 

Many times, when entrepreneurs begin side businesses they start off with pricing that is often too low to make much of a profit. This can be because there is the feeling that the venture is for “extra money,” so making even just a little bit is “fine.” Yet, the best strategy is to be priced correctly from the beginning, so you aren’t just breaking even or worse, losing money with your side hustle.  You are in business to make money, and that means pricing yourself to include your real costs, your paycheck, and some profit to make sure you have capital for growth.  Follow this link (Mastering Your Cash Flow (kartra.com)) for my free three part pricing formula.

 

You don’t have to lose money the first few years in business. See this blog post (5 Tips for Maximizing Business Profits (entremoneycoach.com)) more tips to maximize your profits.

 

 

Set up for your Self-Employment Taxes and pay them at least quarterly

 

Part of treating your business like a business right away is to set yourself up to file your taxes as a business. In the U.S. if you are a sole proprietor that means a schedule C.  When you file that report of self-employment you will need to pay your self-employment taxes. Make it a habit from the start, and you will always be in compliance with the IRS. I learned this lesson the hard way, and ended up owing over $27k in self-employment taxes back the year of my husband’s accident when we lost our consulting business.  We did not set ourselves up, and taxes were an afterthought. Oops.

 

It’s easy to set up to pay your taxes online, visit https://eftps.gov and register. They have to snail mail you a PIN so it takes a few days to set up, but once you are enrolled you can easily make online deposits into your “tax account.” You should deposit 20-30% to start, based on your other job, tax bracket, etc. Visit your accountant to figure out exactly what is best for your situation. But just do it. I withhold when I take a paycheck, I don’t even wait for quarterly anymore!

 

 

If you are going to scale and leave your 9-5 have a plan

 

As you are scaling and building your side hustle to become your full-time gig, I always recommend having a plan. It won’t be perfect, and it will probably change, but you should know your numbers, have some money squirrelled away, and keep debt down so that the payments, if any, are manageable on your new entrepreneurial salary. Plan your income and profit each quarter, knowing how much you need to make to pay everything, including yourself.

 

And know that sometimes businesses take off faster than expected, sometimes they take longer.  Have a real conversation with yourself around what the minimum number of sales or clients you have to consistently have to make a move. It doesn’t always have to be a calendar date! Make your plan around events that happen inside your side hustle and celebrate every milestone.

Financial Tips for Coaches and Consultants

This article is relevant for all service providers, but I’m focusing on coaches and consultants who use the online space to make sales and provide services. Here are a few financial tips for coaches and consultants to make the finances easier, and better, for service providers!

Financial Tips for Coaches and Consultants

 

FINANCIAL TIPS FOR COACHES AND CONSULTANTS

Have a financial structure for money management and taxes right away

 

I see service providers frequently live out of their own personal accounts for a while. It’s so important to set up your business bank account and to create a system for withholding taxes and paying yourself as soon as you can.  Typically profit margins can be larger in the online space, because the cost of doing business is minimal, and I see many entrepreneurs make the mistake of treating their revenue as, “it’s all my money anyway.” This co-mingling makes it difficult to hire contractors, such as a social media manager, because you shouldn’t pay business expenses from a personal account. This can create a tax nightmare.

 

You must pay self-employment taxes on your own paycheck, and if you are using the money in that account, even for business purposes, it be your own personal money. Create a separate financial identity from the start. Get a business bank account. Set up your online deposit with the Internal Revenue Service or your home tax agency and make sure you are withholding and depositing your taxes. Pay yourself every two weeks and let the rest of the money sit in the bank until you get paid again or must pay bills.

 

Calculate everything in your pricing, and know your numbers and your margins

 

My next tip is one that I get some pushback on, I want you to calculate your numbers and know your margins. The reason I get pushback is because people frequently want to “feel” into their pricing, which isn’t a bad thing, but just make sure your feelings are profitable. 

 

I worked with an entrepreneur who was losing money on her most expensive package. By the time we calculated the hours, the services and additional bonuses and things provided, her $1500.00 package had a net LOSS of $80.00 per client. OUCH. In fact, her most profitable package was $195.00. It was extremely hard for her to hear, but it was the truth. Her lower cost packages were covering her losses. She was very frustrated in business, and that was why.

 

You need to know how much you need to make, how much you are legitimately profiting, how many things you need to sell, and at what price, to grow your business strategically and sustainably. Please get your numbers.

 

Stop feast or famine with payment plans and signature offers

 

Coaching and consulting can be feast or famine, and the income can be very unpredictable, especially when you are starting out and haven’t built up your client base. To stabilize your income quickly, please have payment plans available for anything you offer over a certain dollar amount. You get to decide, but I have a client that offers at least 2 payments for anything over $299.00. I have another client that starts at $500.00 and still another that starts at $1,000.00

 

When you offer payment plans you are giving people access to your programs and services at a price point, they can more easily afford, and you get to project income out into the future. Just make sure you cover any additional interchange fees, the fees charged by the bank for running the card each time, in your pricing. Based on the dollar amount, that may be just a few dollars. Again, this is your decision.

 

I know there are some people who do not recommend extending payment plans beyond the length of the program or service the client is buying.  I understand that there is a risk that they will get the service and not pay the remainder. But, while there is a little risk that someone will not honor their payments, generally people follow through, and if you have good policies and procedures surrounding payments (discussed below), you can protect yourself from these instances.

 

Have policies to protect you from chargebacks and from giving refunds if you do not offer them

 

Do not accept anything without a payment agreement. I have a podcast episode, “Get it in Writing” that talks through the basics of what should be in an agreement. I want to talk here specifically around payments. Protect yourself from chargebacks. That is where someone complains to the credit card company or payment portal, and the company gives them the money back- straight from your account. If you do not have anything in writing that says, “no refunds” or “all sales are final” then you will not win against the payment vendor.

 

Make sure that your terms and conditions are required for EVERY sale you make. Take the time to draft them or have an attorney help you and post them inside the sales process. For longer programs or bigger ticket items, send a follow-up agreement in writing to clients. There are a few people in the world that will try to take advantage, and having good, clear, and acknowledged policies surrounding payments will protect your income and your business.

 

Coaches and consultants need to protect themselves financially. I have a special place in my heart for this group of entrepreneurs, because it’s where Mike and I started with UNEQ Consulting in 2011, and I wish I would have had these tips, and had taken this advice back then.

 

 

Author’s Note:

If you enjoyed this blog about Financial Tips for Coaches and Consultants, feel free to visit my other blogs and resources

Financial Tips For Writers

Let me start by saying that writers don’t have to be starving artists to be successful. Today, in this blog, we’ll be talking about financial tips for writers.

financial tips for writers

 

The fact is, you’re a business owner, you are self-employed, and you’re actually running the business of you. To run a business, you must have some money. When people say they just want to write and not worry about the money, what they’re saying is, I’m not interested in, protecting, growing, and developing the business of me, which is the income and revenue-generating source of my business.

 

 

With that in mind, here are some financial tips for writers

 

 

Have a monthly budget and put away enough of your advance or royalties to cover 3-6 months of expenses

 

In the book writing world, your royalty checks are held anywhere from 2-6 months after books are sold. That’s a long time to wait to get paid. I know that many writers have a feast and famine cycle in their financial lives for this reason. One of the best ways to break that cycle is to make sure your personal expenses are covered every month and the money is in the bank. This will bring some security and can support your ability to create by removing financial stress. Calculate the costs of your food, utilities, rent or mortgage and transportation every month and squirrel away the amount you need to pay a few months of your expenses.

 

If you are freelancing or writing for a magazine or other organization that pays regularly, know what you need to bring in every month, and price your articles and projects accordingly. Make sure you can cover your monthly expenses. As soon as possible create an emergency fund and squirrel away a few months of income to prevent the feast and famine of the publishing world.

 

 

Think of your labor in a book as a sunk cost  

 

It is very hard sometimes to imagine recovering some financial benefit to all the hours you put into developing your work. It is much more difficult than somebody who, say, a jewelry designer, who knows that it takes an hour and a half to make a certain piece, and we can put a direct dollar figure to what they want to recover. So, I’m going to start by saying I understand that writing is hours and hours and hours and having an hourly rate that you recover actually could be very difficult to calculate. This may give people a little bit of a pause about using a formula because it may seem more complicated.

 

But just pricing a book and hoping to sell a bunch of copies isn’t necessarily the best business model, because you don’t know whether or not you’re actually making back what you’re putting in to generating the work. It’s smart to have a sales goal; a financial goal, for the work.

 

think about pricing accordingly

 

There are two considerations you can use for this. The first one is you need to know how much you need to recover for your personal money. During the time you spent writing, on average, what do you need each month for food for your rent or mortgage for your transportation for all your utilities? Having that as a base as an operating figure that you would use?

 

Then, how many months did it take you to write this particular piece of work? How many months of operating expenses? Did you basically put out during the time that this was in development and being written, so having that number there gives us a place to start for you to recover money for your personal needs. If you were to consider your operating costs, let’s say that it took you five months to develop this particular piece of work, and your operating costs every month are $3,000, you’re looking at $15,000 as the minimum that you need to make back in order to cover your own time. Time that in reality you “loaned” the book to write it.

 

The second consideration is to come up with a number or percentage of costs that are profits. Adding a little bit of extra money to the cost of a book for profit is important, but in all honesty I get a lot of pushback from creatives on generating profits.

 

 

Don’t let your love of writing overshadow your need for profits

It isn’t just writers. For some reason, many creatives want to be the altruistic entrepreneur.  The fact is that the more profit you make the more impact you can have. Price your books and services and deals for profitability.

 

If you’re not making a profit, you can’t have a level of impact above anybody else. How can I say this? Well, how can you be insanely generous and donate to the causes that mean something to you?

 

How can you create opportunities or hire people? Whether it’s a cleaner for your home, or an editor, or an assistant? You can’t do those things without making a profit. In some ways, profit is your duty. As a business owner, you really are the only engine that is going to generate additional money in the marketplace; support other people and causes, or allow you to do volunteer work. When you look at profit as an impact you can see that it’s okay to make a profit.

 

Writers have unique gifts and storylines to bring to the world. But the vision of the starving artist does a huge disservice to craft. Follow the tips I had discussed to make sure you make money while doing what you love. 

 

 

Author’s Note: 

Did you enjoy reading Financial Tips for Writers? If this is something that resonates with you and you need further assistance to take your business on to the next stage, visit my RESOURCE CENTER

Registering Your Business

Are you ready to form an LLC? I’ve seen quite a bit on social media lately about forming a Limited Liability Company to create a business. I want to remind you that not everyone needs to rush into creating one to have a business.  It can protect your personal assets from being reached to pay a judgment if it gets sued.  There are important decisions to be made about an LLC.  Make an informed choice based on where you and your business are at right now. 

 

business registration

 

An LLC has some great benefits. But, it also has some responsibilities that not enough business owners are aware of. 

 

Here’s the skinny on forming an LLC:

 

 

Form an LLC: It Creates a New Legal Entity

 

When you form an LLC, it creates a new legal “person” who will have its own legal identity. You and any partners become “members” of the organization. The organization is the “citizen” of the state where it is formed.  Typically in the state where the member(s) live. You are creating a new structure. It needs to be treated that way, even if you are the only member of the business. Depending on where you live you may need to renew your entity each year and file to keep your LLC in operation. Additionally, the LLC will have a separate Employer Identification Number (EIN) for taxes, and you must maintain separate bank accounts. 

 

 

 

Form an LLC: All the Business Income Belongs to the LLC

 

One of the biggest issues I see is that people create an LLC to protect their personal assets, which it can, but they use the LLC bank account as their personal piggy bank. In order for the LLC structure to work, and to protect you, the finances MUST be kept completely separate. The LLC pays you as the owner.  Either by a paycheck or through an owner’s draw. You don’t swipe the business debit card to pay personal expenses. Ever.  If you do, the courts can conclude that you didn’t actually treat the LLC as a separate person and that you are really the “same person” as the business, so they can go after your personal assets. It’s a little complicated and beyond the scope of this post, but I cannot stress enough how strictly you must keep the finances clean with an LLC. 

 

 

 

You May Not See Tax Benefits Until You Reach a Certain Income Level

 

Another reason to create an LLC is there can be some tax benefits to the business owner. Depending on the tax structure of the LLC, such as an S-Corp, personal income taxes are being paid on the income the owner actually takes as salary or draws, not on the income that is remaining in banks at the end of the year- which belongs to the LLC.

 

Tax structures and whether the LLC is taxed as a “pass-through” to the member’s personal taxes or as a separate entity is a little outside the realm of this article. But you may be surprised to know that the benefits may not be that great until you pass a certain income threshold. Until your business makes a certain amount in profits, the difference in the amount of taxes may be minimal.

 

 

 

 

Understand the Benefits AND the Costs

 

The many companies preparing and submitting LLC documents to the states are either assuming business owners know all the details, or they are focusing so much on the protection they fail to talk about the expense and the upkeep of creating a new entity. In some states, the renewals can be quite substantial. For one of my clients, her LLC renewal is $800.00 a year.

 

Weigh the costs against any assets that may be at risk, and of course any potential tax savings you could have.  Long story short, not everyone needs to rush into an LLC when they first start a business. Talk to a tax professional about any potential tax benefits, and know your state costs and rules before you create your new business entity.

 

Need free resources for your business? Check out our resourcelinktree

 

make a decision

.I have personally fought the deep fear that I was going to make a wrong decision. I have lived with “analysis paralysis” and turning the same question over and over in my head while trying to figure out every possible outcome. It was exhausting and my business was also stuck. I finally realized that not making a decision IS a decision. I was choosing to keep spinning my wheels. 

 

What If You Couldn’t Make A Wrong Decision

 

Perhaps you have a decision to make that you just can’t. And it is keeping you stuck. Perhaps you have been holding off finding a VA or new software or marketing support. Maybe it’s a financial decision. Maybe it’s the decision to enter a new market or offer a new service.  I want to give you a quick and easy process you can use to help you make the decision. What if you couldn’t make a wrong decision?

 

The Cost-Benefit analysis for this is a simple tool. It shows you if the benefit of something in your business will outweigh the actual cost of having it.  I am a HUGE proponent of the cost/benefit analysis. But the cost/ benefit is a tool that shouldn’t keep you up at night.  I made the biggest mistake with this process by not committing to implementing the best course of action that the tool revealed.

 

 

 

 

I feared that even if I picked the “best” one, it may be wrong for the business. But what if I couldn’t choose “wrong?” What if you couldn’t? Your mindset has to be that you will go with the decision. The decision based on the knowledge that you have when you use the tool.

 

The easiest way to work a cost/ benefit tool is to sit down and handwrite all of the costs and benefits of the decision you are trying to make.  And you use this tool for each decision point. You can handwrite it on a piece of paper, or use a computer program. I am personally a pen and paper and coffee and relaxed environment kind of girl, but you do whatever will allow you to think clearly.

 

 

 

 

Be specific. For example, a Virtual Assistant will save you time that can be better available for money-making activities. Email Automation can make sure nobody who opts in for your newsletter falls through the cracks. And continue to list the benefits that you will personally receive in your business.  Then look at all the costs, financially or otherwise, of implementing the thing.  

 

Many times, when you write it all out, an investment is a “no brainer” and your business will benefit so much you need to add whatever it is, now.  On the flip side, if you are wondering whether to keep something in your business, you can use the same approach. If the benefits (be honest) are not enough to justify the cost, you don’t keep it.

 

 

 

 

Author’s Note:

 

But here is the key, you cannot get it wrong. When you use this tool with the best information you have, your decision is the best you can make at the time. Period. Not making any decision and spinning your wheels is a decision and one that isn’t moving you forward.  Try this tool the next time you have a business decision to make and commit to implementing what comes out on the paper. You will be amazed at how much stress is gone because a decision is made, a course of action is taken, and you can now focus on the next thing.  On one last note, rarely is any decision permanent, so move confidently on the best one that reveals itself to you the next time you feel stuck.

Make More Sales

It is so much easier to make more sales and sell products and services to an existing customer than it is to try and find a new customer. In fact, there’s something called the “80/20 rule” that states 80% of your sales will come from 20% of your audience Once your customers and fans are in your world, they are more eager to buy your offerings than a cold or even lukewarm lead.

 

Make More Sales

 

So, how do we make sure we are serving and selling this 20%? By making sure all of your offers will be a good fit for your audience, give them multiple ways to buy from you, and giving exceptional service that will win you loyal fans.

 

 

 

 

Making sure your offers are a good fit

 

Nobody wants to be in the awkward position of offering something that no one wants to buy.  It’s important to talk to your customers, get feedback on your products and services. Don’t be afraid to run a beta test or provide samples of your new thing to your audience. I don’t suggest you give things away to just anyone. Have a way to qualify your customers, and when you find them, get their input on what you offer.

 

For example, I have a signature 6-week group program to help entrepreneurs grow their revenues and profits by focusing on one plan for a short time.  This particular approach didn’t work for one of my clients, who felt that the every-week meeting was too quick to allow her to implement the next step in her plan.  She wanted two weeks between meetings to give her more time to work on her plan. 

 

This request created a 12-week program and is a great fit for certain businesses who need to focus on growth over a quarter. By taking the time to listen and adjust my offers, she works with me over and over when she needs support with her business growth.

 

 

 

 

Multiple ways to buy from you

 

If you offer handmade organic body lotions and scrubs can your customers order in both full and gift sizes? Will they fall in love with your product? Are there gift options that would allow them to ship it to a friend? This is one example of how you can create multiple reasons your customers should buy from you.

 

In the service sector, do you have an “offer ladder” with related and logical offers for your customer to take advantage of? How about a mix, like a course and a live program? Take a minute and think about the logical ways people would benefit from working with you through multiple sales.

 

 

 

 

Giving exceptional service with every sale

 

If you want to keep the fans coming back, you have to give the most amazing service. Ensuring so, they feel well taken care of. 

 

Drop the extra note, send the Voxer, follow up on their delivery.

 

Put a card in your package.  Send a gift. Answer the email. Jump on a call.

 

There are a million ways to let your customers know that they are important to you.  If they feel good, they will continue to buy from you. 

 

business strategy meeting

As entrepreneurs, we are often asked if we have a “business strategy” for just about everything. Social media, marketing, growth, operations, and on and on. But what does it mean to have one? The word strategy, as defined by dictionary.com means, “a plan of action or policy designed to achieve a major or overall aim.”

 

business strategy meeting

 

In all honesty, it can feel a little overwhelming to think about everything that needs to be planned in your business. On the other hand, operating without any plan, that is, just winging it in your biz, will cost you time, energy, and money because you will be trying to hit your targets in the dark. The truth is that you need an overarching plan for your vision, then mini-plans in each of the action areas.

 

 

 

 

Must Fit Into Your Bigger Vision and Goal

 

You want to go from New York to Los Angeles in the car. That’s the goal, get to LA. There are so many different routes to get there, but we can probably agree that you need to have a starting road and you need to be going west. Without looking at a map or GPS or having a strategy to get to your destination you could end up anywhere else costing time and money.  It is true that your starting route may change, and you may end up on a different interstate- but as long as you hold the vision of getting to LA, you will be ultimately moving west. Make sense?

 

My question to you. Where are you going? What does this look like in the future? What is your vision? This is your very first strategy assignment, create a picture of where you are going. This is where people look out 3 months, 6 months, a year, five years. But for now, just pick a timeframe within 2 years and grab the picture in your mind. Now we need to hold that vision to create a plan to get there. Write down this vision and your goals.

 

 

 

 

Must Lead Into Action Plan

 

Some of us love to plan. I do. Unfortunately, sometimes we replace action with planning. Planning is preparation, and I am so guilty of this when I have any fear or resistance around taking the next step. The best use of strategy is to translate your plan into actions that you take every day, week, month, towards your vision.

 

This is where multiple strategies are developed. For example, the social media strategy, marketing strategy, and webinar strategy must nest within the bigger vision. To do this, look at your written vision and goals and describe what each plan needs to do to support your journey. If your business is product-based you may have a strategy that includes sales to both wholesale and retail audiences, so your sales strategy needs to address how to support both.

 

The actual number of plans will vary by business. If you are in manufacturing, you will have strategic needs that aren’t necessary in the coaching world. At a minimum, however, I think just about every business needs:

 

  • A marketing strategy (with a social media plan)
  • A sales strategy
  • A customer acquisition, service, support, and retention strategy
  • A clear strategy for delivering the products and services to market

 

With these four strategies defined for your business, you can make decisions and take action every day aligned with your bigger vision.

 

 

 

 

Must Be Reviewed At Least Twice A Year  

 

It is so true that businesses start with one thing and ultimately evolves. You may start with a single idea and grow it into several lines of revenue. You may need to meet your customer a different way as the industry changes. The strategy will also evolve and grow with your business.  So, creating your strategy isn’t a “one and done” event.  Reviewing it twice a year is a great way to see if your goals and vision are still aligned based on the daily real-world business things.

 

If you aren’t a natural planner, I get it. I hope you see how important it is to have an overarching map and strategy to get to your vision.  You’ve been given a vision, and your entrepreneurial purpose is to reach it. If you need some help with planning your next moves, grab a spot on my calendar for a chat, I have an intensive 3-hour session available that is intended to get your plan reviewed and if needed, back on track to support your goals.

“I don’t know what I am going to make.” I hear this statement all the time, and when your business is fairly new, I get it. But even from the very start, you should understand your capacity and availability to predict your revenue.  Whether you are a business or a service, you should be able to figure out how much you can make in a given time and create a path to get there.

 

 

It is so important that you figure out a predictable revenue at every phase of growth. Using these numbers can help you make the best business decisions regarding whether it is time to scale. The first thing you have to do is get your pricing right. If you need a pricing formula that will help you price any product or service for profit, you can find it in this blog: How Do You Calculate Selling Price? | Entre Money Coach .

 

Once your pricing is where you need it to be, we can talk about your capacity to make products and services for predictable revenue. I’m going to use a recent example, a client of mine who is starting a coffee roasting business.  We calculated his pricing based on operations, cost of the beans, labor, packaging, and shipping. We also figured out both a wholesale and a retail price for his products, because part of his model is to be on consignment in small local stores.  Here’s how we went from pricing to predicting monthly revenue:

 

 

 

 

  1. Capacity and Availability

 

Roasting coffee takes a certain amount of time per batch and based on the roasts and origins times can vary. But we averaged the time it takes to roast a batch, and the number of bags of product he can make in each roast cycle. That number alone will limit his capacity to make more than a specific amount of product each day. 

 

So, based on roasting time and resting time before packaging, we calculated the maximum amount of product that can be made per day, and then per week.  The cool part is that you can decide how much and how often you work. My client wanted to be part time to start, so the amount of product produced was also determined based on his availability and the number of hours he wanted to work.

 

 

 

 

  1. Number of items of each type to sell at each price

 

My client has two package sizes of roasted coffee beans right now, a 3oz size and a 12 oz size. How many of each size he makes, and sells, each week can help him predict his income. Some will be sold at wholesale, some at retail, with pricing at each size. Based on the number of wholesale and retail orders, plus the product he makes, without orders, to sell that week we can predict how much he will make each week, then month, then quarter. These numbers need to be reviewed at least every quarter.

 

For example: He sells 20 12 oz bags and 10 3 oz bags in a week.

 Ten 12 oz bags at $10.00 wholesale becomes $100.00 and ten 12 oz bags at $14.00 retail is $140.00.

Adding ten 3 oz bags at $2.50 wholesale is $25.00. With this mix of products, he will gross $265.00 this week on 30 total bags, mixed in size and price.

 

This is his “predictable” revenue. He can make more or less by selling more at a retail price instead of wholesale. This is just one small example of how knowing your “mix” of capacity. That and knowing your availability, audience and price can be brought together on paper. Doing this will allow you to predict how much money you will bring in.  I want to note that this isn’t actual sales at this point, but a very solid estimate.  You CAN predict your revenue, even as a new business.

 

 

 

Ready to plan your revenue for Q2 2021? Join me Saturday, March 13th for the three-hour Revenue and Profit Planning workshop! Visit https://entremoneycoach.kartra.com/page/quarterlyintensive for more information!