Honor Services Office
From Making Money to Growing Business
Plan your steps in order to make the leap successfully!
By: Honor Services Office
[size=4][font=Arial]Many entrepreneurs have the most wonderful ideas but sometimes do not know how to grow them. One day someone says to them "You should go into business." Excitement ensues and the entrepreneur jumps in and starts doing a lot of activity, but is it the right activity at the right time? For the Micro-business, time is precious. Spending the right time on the right activities is important. This article will lay out a three phase life-cycle with concepts to consider at each level. [font=Arial Black][size=5]Definitions[/size] [/font][img=585x91]https://www.careercoachoffice.com/ccosales/images/3Stages.jpg[/img] [b]Ideation[/b] - This is where you are forming your ideas or concepts. Sometimes this is referred to as a startup or a hobby according to the IRS. [/font][/size] [quote][size=5][font=Georgia]"If your only measure of your business is your bank account, then you will not be able to diagnose solvable problems." - Honor Services Office[/font][/size][/quote] [size=4][font=Arial]From our observation of many entrepreneurs in this stage, we see they rarely track what their business is doing. Their only measure is a bank account. Unfortunately, a bank account cannot help the entrepreneur resolve performance indicators that could have prevented them from going out of business. [/font][/size] [size=4][font=Arial][b]Institution[/b] - Now you are stable, valued, and have established recurring patterns of behavior. Chaos and guessing have been replaced by measurement and forecasting. Standard operations are put in place, enabling consistency and predictability. Many businesses that have been in business for years still run unpredictable businesses which inhibits their true growth potential. [b]Increase[/b] - Businesses strive to grow in size, amount, intensity or degree. High performing businesses grow from profit. Investors and financial backing institutions are eager to share in the wealth. [font=Arial Black]Understand where you are in the growth cycle[/font] "How tall am I? Am I growing?" were the words of our kids. We would show them their height progress with pencil marks on the wall. Business owners ask the same question. They want to know where they are to do something about accelerating their progress. Growth Chart[/font][/size] [table][tr][td][font=Arial Black]Ideation[/font][/td] [td][font=Arial Black]Institution[/font][/td] [td][font=Arial Black]Increase[/font][/td] [/tr] [tr][td]Focus: New Ideas Customer Feedback Brand Differentiation [/td] [td]Focus: Available Consistent Improved [/td] [td]Focus: Convenient Customizable with quick turnaround Complimentary to other brands[/td] [/tr] [tr][td]Message: Introduction How it Works Who it is for[/td] [td]Message: Improved Proven New Benefits[/td] [td]Message: Now in your area, size, or value stream New Brand National or Global presence[/td] [/tr] [tr][td]Income Goal: Just make some money, any money will do[/td] [td]Income Goal: Control costs to increase profit[/td] [td]Income Goal: Control profit to increase presence[/td] [/tr] [tr][td]Financial Tracking: To see what the market will bear[/td] [td]Financial Tracking: To see if the company is breaking even[/td] [td]Financial Tracking: To see where to reinvest[/td] [/tr] [tr][td]Pricing: Choosing a pricing strategy (Crowded Marketing Pricing, Volume Pricing, Premium Pricing)[/td] [td]Pricing: Customized Product Mix Based pricing Competitive[/td] [td]Pricing: Distributed / Localized Market Driven Investor Driven[/td] [/tr] [tr][td]Your Office: Your whole house Your Car Free Places (Libraries)[/td] [td]Your Office: Part of your home / Home office Strip mall Stand Alone[/td] [td]Your Office: Close to high volume customers Near distribution points Near emerging markets[/td] [/tr] [tr][td]Mistakes: Made regularly / caught late[/td] [td]Mistakes: Caught early through monitoring reports[/td] [td]Mistakes: Predicted by risk assessment, history and minimized by governance[/td] [/tr] [/table] [size=4][font=Arial Black]Dream Big Act Small[/font][/size] [size=4][font=Arial]Big company tactics are confusing micro-business owners. Some entrepreneurs do their research by watching TV commercials or reading about mergers between two giants. Those who have been in the ideation stage a long time want to skip making their business an institution. Act small. Invite people over or meet in small places. Start having a web presence at your pace even if it is only once a month. People won't want to read your newsletter if you haven't told them what you do or how they can benefit from your product or service.[/font][/size] [size=4][font=Arial Black]Start Monitoring[/font][/size] [size=4][font=Arial]Social media follows, picture likes and retweets feel great, but are they buying from you? If the answer is no, then monitor what is broken with your business and develop a mitigation plan to fix the real problem. Monitor more than likes and bank accounts.[/font][/size] [size=4][font=Arial][font=Arial Black]Get Some Help[/font] Just because you feel you have to do it all doesn't mean you should. Ask a lot of questions before diving into a area you are not familiar. Do not trust your judgment rather get opinions from your customers. Need some help? [url=https://www.honorservicesoffice.com/_mdm.php]Contact Us @ Honor Services Office. We desire to help you grow![/url][/font][/size]