Monday 28 May 2012

You Can Escape the Poverty-or-Lottery Cycle

By Denise Lones


Business owners tell me it a lot. "Business is always a feast-or-famine business. We're either rolling in the cash or rolling debt. What am I doing wrong?" Sound like your business? Chances are, it does. Most companies I know go through times where the cash can't stop rolling in - and then dip into times when they're thinking about shuttering their company because nothing is transacting in any way.

I've got a strong belief to share about this business cycle - the problem isn't that you are in a feast-or-famine business. The difficulty is that you are living a feast-or-famine way of life.

That may seem vicious, but I believe it is vital to address the actual problems behind your own failing or succeeding. I know this is true because I know too many firms that are able to prosper constantly regardless of the bad times and commercial lows.

Your strategy of working may be the reason behind your absence of success. Perhaps after struggling desperately to build your company, the gates all of a sudden swing wide-open and the business starts rolling in. What did you do then?

Too many companies then stop and celebrate their "feast" of good fortune. Now there isn't anything wrong with a little party, but you may find yourself pronouncing, "Hey, I have worked hard! I should have some holiday and I'm able to afford it now. My company is up and running." WARNING! You're entering the Danger Zone - the exact point where most enterprises begin their downward spiral to complete failure.

What you see next is that the capital dries up and you start saying to yourself, "I slowed down too much. I have got to get my nose to the grindstone and put in 16-hour days." LOOK OUT! Now you're swinging in the reverse direction. This also leads to a downward-spiral of failure because you're going to burn out eventually. No one can keep up that pace of work and still have a life. So what should you do to beat from the feast-or-famine way of living?

It boils down to consistency. You must to spread your activities uniformly and develop a steady schedule that you follow in both good months and bad. Here is how you know if you're doing things right.

(1) Regularly and without exception remind your prospects that you exist every week. Whether it's monthly mailers, radio advertising, making telephone calls, leaving pamphlets with local companies or buying advertising space, lead generation and nurturing is the essence your business. Never, ever, neglect it.

(2) Always represent yourself professionally. That means professional business branding on quality materials that distinguish you from your competition, communicate your business message, and make you remarkable in the mind of your target market. Your must have a consistent image from business cards to signage to letterhead.

(3) Habitually run your business on a process. This is a collection of procedures that you have created for every task in your business. It means that when anything occurs, you have a 1-2-3 list of what to do. You are never stuck or overwhelmed because your process is your business.

(4) You regularly take time off. This is planned time off. Regular time that you literally shut the mental doors on your business so that you can spend time on your life. If you don't have a life, then use this time to get one. No-one lives on work alone. Without proper rest, relaxation and revelry we're not human. Don't burn out, be human.

With these four elements in place you can't help but make money. Sure, there will be periods that are more profitable than others, but when those ups-and-downs occur, they'll make-or-break your bank account. You will have the necessary balance of discipline on your side when you're consistent in your work.




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