Below is the final article in our $150 competition sponsored by BizSugar.com. It’s submitted by  Cathy Iconis, who provides Virtual CFO & Consulting services. Good luck to everyone who contributed an article!

We all know that cash is critical to running a business, no matter the size.  But as small businesses, we generally have less cash than the big guys, so we need to know how best to manage it.  The first step is to better understand how much cash you have and how you are using it.

First, I want you to know that just because you have profit at the end of the day/month/year, that doesn’t mean you have more cash.  The Income Statement (or Profit & Loss) is a tricky thing.  It shows you how much revenue you have for the period and the costs related to just those revenues.  It might not include cash spent on a large investment, money you received from an investor, or even disbursements you’ve made to yourself as the owner.

The best way to understand how much cash you have and how you are using it is to look at your Cash Flow Statement.   It is a simple report giving a ton of information in these four parts:

• Operating Activities:  How much cash you have at the end of the period from your daily operations
• Investing Activities:  Cash outflows from purchasing a new asset or making loans to vendors or customers
• Financing Activities: Includes cash you have received from banks or owners or cash you’ve taken out of the business
• Cash at End of Period:  How much money you have at the end of the day, net of the above

The Cash Flow Statement is fairly easy to get your hands on.  Even businesses running on QuickBooks can run a quick Cash Flow Statement from their Reports menu.  You can also ask your accountant to supply you with one when they review your books.

Now that you know how much cash you have and where it is going, spend some time thinking about the best uses for your cash.  If you are eating up all of your cash from daily operations, then you aren’t able to invest in assets that could potentially help grow your business, like an additional server to give you added capacity so you can have more customers.  Here are some ways to manage your cash:

• Budgets:  Budgets can save you money and time!  In a few hours, you can create a simple budget.  Just look at what you spent last year and adjust any items that you don’t expect in the future.  Enter your budget in your accounting system. Then run a report to see if you are on track.  Easy as pie!

• Dashboards: These are just graphs, charts, or some other visual representation of your financial data.  We all know it is far easier to “see” your company when you are looking at a picture.  You can visually compare your data: you can see how you are doing versus last month, see what you are spending the most on, or even see which customer is giving you the most money.

All in all, it is important for you to manage your cash.  This means understanding how much you have, where you are using it, and how to track it.  I challenge you to move past going from hand to mouth and start managing your cash so you can grow your business!

If you have any questions or want to learn more about how you can better manage your cash, visit my website, www.CathyIconis.com.

Below is the seventh article in our $150 competition sponsored by BizSugar.com. It’s submitted by Michael Bennett Cohn, who is the publisher for the online magazine Revolving Floor. Good luck to everyone who contributed an article!

Most small brick-and-mortar businesses don’t brand the inside of their establishments. I didn’t realize this until I started playing Foursquare, the shopping scorecard social media iPhone game. Foursquare awards users points for “checking in” at their favorite restaurants, bars, convenience stores, etc. Often, in recent months, when I’m taking out my phone during an idle moment waiting for my food, or a drink, or to pay, I’ve found myself thinking: “I should check in here on Foursquare!” followed quickly by “What the heck is the name of this place?”

There’s plenty of branding inside chain establishments like Olive Garden, McDonalds, 7-11, or The Cheesecake Factory. That’s because the chain, taking the long view, wants customers to stay interested in the brand, so that they’ll see each franchise as just one manifestation of the greater whole.

But once you enter an independent restaurant, bar, shop, or even grocery store, if you forgot the name of the place on the way in, then you’re probably not going to be reminded of it again until your next visit.

When I was in college, I worked at a place in Lawrence, Kansas called Joe’s Donuts. The catchy name was just a coincidence, as the original owner’s name really was Joe. The food was good and cheap, the place was open late and located near a couple of nightclubs, and Joe’s was hugely popular with the students. (A donut-loving girl once introduced herself to me on campus after overhearing me say that I worked there.) Customers regularly asked of their own volition if we sold t-shirts. We didn’t. I talked to the proprietor, Ralph (Joe’s son) about it. “Yeah, the kids ask about those, so sometimes I think maybe we should make some,” he said. “But what would they say? ‘Eat at Joe’s?’”

Ralph also kept the store closed on Saturdays, which would have surely been his best day for business. I tried to convince him to give it a shot. He shrugged. “It’s not a question of profits,” he said. “I just don’t want to work Saturdays.” The closed storefront was noted weekly by disappointed would-be customers, leading to widespread speculation as to what Ralph did with his Saturdays. “That’s when this place is closed,” was the only explanation that he offered querulous donut-buyers.

Around this time (1991) localized versions of Monopoly were a popular gift item. The Monopoly people scoped out our little college town, and determined that Joe’s Donuts was enough of a landmark to warrant a spot on the board (instead of, say, Park Place). They approached Ralph and asked him to pay for the privilege. He refused, and he continued to refuse as they kept lowering the cost. Ralph told them that he didn’t play Monopoly, and that he wasn’t interested in participating at any price. But the truth was that the Monolopy board based on Lawrence, Kansas just wasn’t complete without Joe’s Donuts. People would expect it to be there. And, indeed, it ended up on the board anyway.

At the time, Ralph saw this as a triumph of practicality over silliness. His business was successful in the physical world, and that was all that mattered. But times have changed. Nearly every local business has been reviewed on Yelp, they all show up on Google Maps, and that inevitable sales call from Foursquare is perhaps the loudest knock yet on the doors of those who don’t want to be dragged into the 21st century. (”We can prove that 100 of your customers check in with us every day. Do you want the ad they see to be from you, or your nearest competition?”)

It’s increasingly understood among online startups, even those focused on direct-response business, that they need a recognizable name, logo, and design. That’s just part of the deal. So is participating in the social media basics, such as tweeting and setting up a Facebook fan page. The social media landscape is eclipsing reality so quickly that brick-and-mortars are already part of it, whether they want to be or not.

In other words, every small business has a brand now, even the no-name bodega on the corner with no signage anywhere. Even proprietors who like to think that they can’t, or won’t, be bothered with something as abstract as shaping their customers’ long-term associations with the place are going to increasingly find that this attitude is not tenable. The no-name bodega on the corner will end up on Yelp as “No-name Bodega On Corner,” or not at all. And places that don’t bother to remind customers where they are will get fewer online mentions. It won’t be long before someone looking for, say, a toothbrush, will enter a search into their phone and then scan their surroundings through the viewfinder, looking for augmented reality signage hanging in the air. Those signs won’t be “hung” by the proprietors; they’ll be hung by the aggregators. And businesses who haven’t taken their image seriously by that point are literally going to disappear.

In New York, there’s a joke about what to tell a tourist when they ask you where to find the best pizza in the city. The answer is “Ray’s.” And there are indeed many pizza places called Ray’s throughout New York. Also, they have no connection to each other.

It’s a good joke, but it won’t be funny for very much longer.

Photo Credit: tandemracer

Below is the sixth article in our $150 competition sponsored by BizSugar.com. It’s submitted by Wayne who blogs on small business and entreprenurship at WayneLiew.com. Good luck to everyone who contributed an article!

Michael Jackson passed away on June 25th, 2009. Whether you are a Michael Jackson fan or not, you cannot doubt his ability to get the attention and impress his millions of fans worldwide.

Michael Jackson’s ability to wow his audience is definitely something that you would want your business to have. In this article, I am going to give you 5 Tips to Grow Your Business Like Michael Jackson.

Be All About Your Audience

No one cares about you. If Michael goes up on stage and start singing songs that are only meaningful to himself, no one will pay attention. For example, “Heal the World” was written by Michael to be lyrically deep but melodically simple so that fans all around the world, especially those in non-English speaking countries could chant along when the song is played.

Spend time listening to the desires and wants of your prospects and customers before selling them your products or services. Not only that the selling process will be easier, your prospects will not be turned off by any hard selling tactics too.

Find Your Signature Move

What are the signature moves of Michael Jackson? Ask this question to anyone on the street and they will definitely give you answers like the Moon Walk, 45 Degrees Lean or they might even perform his dance moves, especially the spinning move for you. These are the moves that make Michael stand out from the rest of the singers. Not only that his fans were astounded by these moves when Michael first performed it, they LOVE it!

How can your business stand out from the crowd? It can be something as simple as changing the way you engage new customers or launching a marketing campaign that is so interesting and catchy that your target market just cannot get the message out of their head.

Become the Best for What You Do

As compared to modern celebrities, Michael do not have a lot of appearances on commercials, movies or his own fashion line. He knows that he is a good singer, dancer, performer and he keeps improving on these aspects until he gained the sparkling title, “The King of Pop”.

Often times, businesses deviate from what they are really good at and as a result, every single thing that they offer becomes mediocre in quality. For example, if you are running a pizza place that is rated 5 stars on Yelp, don’t start serving Chinese food just because there’s a new Chinese restaurant being set up right beside you.

Learn How to Grab Attention

Every time Michael Jackson makes an entrance, all the fans in the room or at a venue will immediately pause whatever that they are doing, turn to him and go wild. Yes, part of it is because he is the King of Pop. But there are other things that help him to get the much needed attention. For example, his fancy clothing.

In business, grabbing someone else’s attention is an important skill. Whether you are crafting a pitch to the press or writing a business plan to secure funding from investors, you need to make them focus on what you have to offer.

Go All Out Against All Odds

Michael Jackson’s success didn’t come to him easily. Michael had troubled relationships with his father, endured childhood abuse, fought a couple of sexual abuse allegations and more. However, none of these are able to stop him, or even slow him down. In fact, they made him a stronger person.

Running and maintaining a small business isn’t easy. Stay persistent, hardworking and continue to learn and acquire new skills. Stay calm when faced with challenges and slowly untangle the complexities. Success is only for those who works and strives for it.

Inspired by Michael Jackson’s Story on Wikipedia

Image Credits: Michael Jackson – WikiPic

Below is the fifth article in our $150 competition sponsored by BizSugar.com. It’s submitted by Maria of  Elevating Your Business. Good luck to everyone who contributed an article!

 Locating and Engaging Affluent Clients More Quickly in Your Own Community

Remember the scene in Pretty Woman when call girl Julia Roberts goes into the pricey boutique, money in hand, to buy some clothes, only to have the sneering sales ladies shame her out of the store?  Well, Julia gets them back by taking her excessive purchasing power elsewhere, then coming back to flaunt it in their faces.  The point is, don’t judge a book by its cover OR miss out on a great opportunity that may be right under your nose.

It is not always easy to spot someone with considerable purchasing power, namely because on the outside, they appear just like you and me.  However, by changing your thought process and using some strategy, you may find that you’ve been surrounded by affluent prospective clients all along.

Affluence Today

First, let’s consider what it means to be affluent.  Simply put, affluence indicates an abundance of money, property, or other material goods.  For the purposes of this article, we’ll use the Wikipedia description of affluent to mean the top 1% of U.S. earners, which is about $350,000 in household income.  Inarguably, this is a lot of money.  But the upper class are still people like you and me; most of them are not in the multi-mega millionaire Donald Trump category.

Short of asking everyone you meet their annual salary (definitely NOT a strategy I’d ever recommend!), how do you go about identifying affluent clients? They demonstrate consistent traits and habits.

About The Affluent

The affluent are zealous about their involvement.  It’s easy to see their passion because it’s where they’re involved the most.  Besides their devotion to their vocation, the affluent spend considerable time in organizations that allow them to live their avocation – think sailing, flying, and cigar clubs.  Meeting affluent clients in this type of environment allows you to see what motivates them outside of a traditional business setting.

Similarly, the affluent are generally very philanthropic.  A simple search of social networking sites for various charitable causes can yield long lists of members; clearly these are people who enjoy helping others and spreading the word about worthwhile organizations among their peer group.

An affluent client also values self-improvement.  Whether it is personal or professional development, this type of person makes time to attend workshops or classes on topics of interest to them.  They spend their time on high-value activities to continue personal and professional growth, and ultimately be more successful.

It probably also goes without saying that the affluent are a very discerning crowd.  Simply put, they like “the best”, be it a service, product, or perception.  This means they demand individualized attention.  No matter how many customers or clients you have, make sure your affluent clientele perceive themselves as your one and only concern.  This may require some additional work on your part, but the return on investment will more than make up for it.

Finally, affluent individuals typically surround themselves with other prominent people.  They want to work with someone who’s already a known commodity – someone who has been prominently published, has received considerable news coverage, or is already connected within the right circles.   

Why Target Affluent Clients

Affluent clients, though potentially more demanding than other clients, can provide significant payback. 

This client type easily makes referrals to people they like, know and trust.  Similarly, if you can help one of their friends or family members, it typically results in a new client somewhere down the line, a lá the “pay it forward” mentality.  As business owners, affluents like to be part of joint ventures or strategic alliances of others who work with their clients.

Like most other consumers, the affluent buy things based on emotion but they are looking for exceptional value they couldn’t get anywhere else.  Affluent clients see such expenses as an investment because it ultimately helps them make more money.  If you are able to complete a task faster than they can, their time can then be focused on their core strengths.  If you can demonstrate how your product or service benefits affluent clients, you won’t be seen simply as a commodity, but as an advisor.

Where To Look For Them

Knowing the background and value of affluent clients, you’re ready to fine tune your marketing plan to seek them out.  Chances are, you’re already involved in many of these activities yourself.

Arts & Leisure

Boating/sailing clubs
Flying clubs
Fitness centers (especially early in the morning or during the school day)
Wine/cigar clubs
Performing Arts (opera, symphony, theatre)
Extreme sports like rock climbing, mountaineering, and deep sea fishing
Golf & Tennis clubs
Spa
 

Personal & Professional Development

High-priced conferences or events (especially retreats and cruises)
Speaking circuit
Business or executive clubs and bars (especially after work)
Masterminds like: Visage, Entrepreneur Network, The Alternative Board, Young Presidents Organization, Women Presidents Organization
Reading magazines such as Town & Country, Millionaire, Worth, The Robb Report
 

Community

City/Country clubs
Board of Directors/Trustee for large non-profits, banks, large corporations
Philanthropic Associations
Rotary and other service related organizations
Political dinners/fundraisers
First class seating in planes
Volunteers or participants at fundraising events
Angel Investment Organizations, some of which have a “service provide” category
Church (specifically for the older affluents)

How to Engage Affluents

Reaching these clients can be more fun than work – it’s all in your thought process!  From the list above, pick activities that sound appealing to you trying them on for size.  Keep your integrity intact and never do anything you hate doing just to meet prospective clients.  Some other ideas:

Consider joining a group where they hang out, if you enjoy what the group offers of course. 
Consider marketing or speaking to a group where they hang out.
Considering joining an organization you enjoy in one of the more affluent zip codes near you. 
Get involved on a board of something you’re passionate about.

More Resources

Reading about the upper echelon may provide you additional marketing ideas.

Forbes List

The Sound’s wealthiest zip codes

The Richest Zip Codes—and How They Got That Way

Below is the fourth article in our $150 competition sponsored by BizSugar.com. It’s submitted by Gagan of  Fortepromo. Good luck to everyone who contributed an article!

Everybody loves Free Gifts and Companies are using this human tendency to promote their brand from years by organizing Promotional giveaways. Promotional Products is great way to improve your Brand Recognition and product reliability among your customers if organized successfully. In this article I would be discussing some Basic Tips on how to organize such giveaways successfully to get the desired Results.

Select Products for Giveaways Carefully

Selecting a Good Giveaway Item is the most important part of any Giveaway Campaign. The item should be something relevant to your products which your customers are always looking for and use on regular Basis. Conduct a short survey or do some research in places or online forums to find out some good suggestions for Giveaway items. For Eg:- If your Target audience is people working in IT industries, you can give them items like Flash Drives or Laptop Bags which they can use daily.

Selecting The Time and Place

Are you Running a Seasonal Business and people need your products only for a specific time interval? Then, Try to organize your campaign only when your business is in its peak season. You can’t expect your customers to buy winter clothes from you for FREE GIFTS in Summer Season. The place where you are going to organize your campaign is also important. Identify places like relevant forums or communities where your customers spend most of the time to launch your Campaign.

Offer Gifts as Package

Create a Combo pack of your Product and Gift and then sell your Products. The greatest Example of this is McDonald Happy Meal Toys. I had bought those happy meals lot of times for my kids only for those Toys. Your customer won’t mind to buy from you, if you are offering something to them for Free which they need desperately.

Imprint With your Information

I think this is common sense. Imprint your promotional products with your Brand name and Logo so that your brand name remains in your customer mind whenever they use your products. If possible include your contact information like your website url or Toll Free number so that they could contact you easily whenever they need to buy your products.

Measure Results

This is most important part of any Promotional Campaign but most of the times it is not feasible to get the accurate results very quickly. You can measure the results on various factors like determining your current Brand visibility, number of Returning Customers from total customer who participated in campaign, New Customer you are getting from referrals. You can also find some loyal customers in such kind of campaigns when you see the long term results.

These are few Basic tips which can help you in organizing your Promotional Giveaways campaigns in a successful way and increase your brand popularity and your overall Customer Base.

Below is the third article in our $150 competition sponsored by BizSugar.com. It’s submitted by Andy of Travel Online Partners. Good luck to everyone who contributed an article!

Do you feel like your website and online presence is just “another nuisance” to your day? Feel like you’re just wasting your time with online technology? If so, check out these common mistakes businesses make online – if your online presence is flailing, it might be because your customers just don’t like you.

You don’t tell them what you do

If a potential customer isn’t able to discern in 10-15 seconds what it is that you do exactly, they’ll quickly gaze over and move on. This is of utmost importance on your homepage, but via search engines new customers can arrive on any page. So be sure that on every page of your website, you at least briefly explain who you are and make further information easily accessible. A clear strapline or slogan in the header as well as an easily placed “About Us” usually does the trick.

You don’t tell them why

Remember the old saying what’s in it for me? It is still a vital marketing tool and many websites fail to answer this question. Whether it is features or benefits, make it clear why customers should take advantage of what you have to offer. Will it save them money, make them money, improve their life, or just make them feel good? Don’t be afraid to spell it out; a “Why Us” or a “What It Will Do for You” is a completely appropriate headline section to any sales page.

You show off too much flash and bling

Nobody likes a show off, and your online customers are no exception. With lots of fancy graphics and spinning widgets, your true message will be lost. I’m not saying your website shouldn’t be slick, professional, and attractive. But stop and think: does your “add-ons” actually add value or just add to the noise?

You don’t tell them how

Do all of your web pages tell customers what to do next? So many blog articles leave folk wondering how they get more. Your content is there to draw customers in, so after you’ve done a smashing job of telling them a story or giving them information, offer up the next action. Make it super clear; yes – that means big, colourful buttons that say “Buy Now” or “Click Here to Check Availability.” Online customers like to be told what to do, so tell ‘em!

You don’t understand them

Website copy must be directly targeted to your ideal customer; write for everybody and nobody will listen. Write for a special someone and they’ll take notice. You need to know if your customers need jargon explained, if they respect complex and thoughtful topics, or if they’re more visual people. Picture one of your ideal customers in the room and read your web content aloud – would that single individual person be interested?

You tell them to go to your competitors

I never understood why small businesses put advertisements for other products on their website. The worst is Google Adsense – those contextual ads are usually for your competition! You should never place advertisements on your website unless you will make more money from the sale than you would by selling your own products and services. Instead of that lame affiliate ad in the sidebar, why not have a great banner ad for your highest margin product?

Photo credit: Zach Klein

Below is the second article in our $150 competition sponsored by BizSugar.com, submitted by Fernando who does  content marketing in Latin America. Good luck to everyone who contributed an article!

As a fellow small business owner, you, like me, are totally on board with the concept that great content via blogging and social media is the new “killer app” of the Internet marketing world. You may have already started a blog, and you may already have 20-50 RSS subscribers. You’re slowly making your way up to your 1,000th Twitter follower, and you’ve gotten decent re-tweets whenever you share your latest post on your blog.

Great job, that’s better than most.

But where are all the customers?

Well you may have missed the part that this kind of marketing is a long-term proposition.

What to do if you want to eat this month?

Vaynerchuck clearly says that his strategy is to build a personal brand, and Chris Brogan says you’ve got to build your online presence so you can become a “Trust Agent.”

But you’ve got the pay the mortgage this month, make sure your fridge isn’t empty, and keep the lights on.

Well here are 3 quick-hitting tactics I’m putting into practice because I just quit my job and I need to bring in some customers really really soon, or else, as the clichéd country song goes, “I’ll lose the house, my wife and the dog.”

These tactics were inspired by my friend, mentor and coach Jim Logan.

1. Write an eBook like Brian Clark’s Authority Rules

I’m taking a slightly different approach here. Sure I’m writing an eBook that I’ll make available without a gate on my website for people to download.

In my case I’m a.) adding a very direct call-to-action at the end of the report to “call me to schedule your free 30-minute 5-point marketing readiness assessment” on the phone, and

b.) I’m going to be sending direct mail pieces offering my eBook to specific decision-makers at targeted companies who fit the profile of my ideal suspect, and I’ll be emailing a warm list of folks I know who are not yet subscribers to my RSS feed. My strategy here is to combine direct marketing with content marketing. The trick is not to sell directly, but to sell the “free content.”

My initial direct mail target will be about 30-50.

The philosophy behind this phase is you’re offering something of value in return for nothing. Even though there’s a strong call-to-action at the end of the eBook to call me (and I may very well get a few calls), here I’m just offering free content.

2. Follow-up with another direct mail piece

Two weeks later I’m going to follow-up with another direct mail piece to the original 30-50, as well as follow-up emails to my warm list. The message in this follow-up piece will be a business message.

I do not want to come across as a sales guy, but as a business person. I’m a business owner reaching out to another business owner, and I add value because of what I know.

I’m following-up on my eBook offer. I’ve helped businesses like yours with x & y (insert your key benefit here, do NOT mention a product or service). It may or may not be relevant to your situation, but I would love to chat with you for 30 minutes about your situation and how I’ve been able to help similar people.

The philosophy behind this stage is to sell the meeting, not sell your product or service. You should map out what the stages are in your sales cycle, and only sell the next step. In my case, and if you’re selling a B2B product or service, sell the meeting. And sell it as a business person, not a sales person.

3. Follow-up with a cold “warm call.”

Finally, I’m calling these folks. I’m calling, again, as a CEO of my small business.

Business people don’t take calls from sales people anymore, unless they called the sales person before and are expecting a call back. However,  business people do take calls from fellow business people.

How do you think CEOs of major companies form strategic alliances with other major companies? They cold-call them!

You’re the CEO, you call the CEO of your target company. And you don’t sell your product or service, you have a business call about what you’re extremely knowledgeable about and what your prospect’s business situation is.

Business people want to learn from other business people.

I guarantee if you follow this method, in less than a month you’ll have some meetings and some closed business. It’s worked for Jim Logan and his clients, and I’m putting it into practice for myself.

Below is the first article in our $150 competition sponsored by BizSugar.com,  submitted by Dwayne of  www.thecharlotteagency.com Good luck to everyone who contributed an article!

Like going out on your first date with your crush, starting a small business can be pretty unnerving. As an entrepreneur, you are putting yourself out there. Will the business community accept the courtship? Will it call you back? Well before you take the business world out to dinner and a movie, one must be able to confidently answer the questions below.

What Do I Wear? (Image and Branding)

Once you step out of the car and onto their doorstep- they will be watching your every move. Likewise, once you start announcing that you are creating a small business, your entire presence will be scrutinized. How will you present yourself? Are you going to be the conservative, suit-and-tie type, or the modern khaki and polo dude? Or both? Neither option is a bad one, but based on your research of the industry, you got to make an informed decision. Does your website and business cards match? If you are going on a date, your outfit is not going to be mismatching, so neither should your business presence.

When Do I Arrive? (Timing)

Now is the best time. The U.S. business community just got out of a bad relationship with the finance and housing industry, and it is looking for a new, fresh suitor. It needs someone that will treat them right. Its boundaries are down and as a few of us know, those who are on the rebound to easier to attract.

What Should I Say? (Marketing)

You arrive on time and looking good. Really good. But now you have to open your mouth- are you ready? Grab the spotlight. You don’t have any friends to put a good word in for you, so you got to do it yourself. Don’t be bashful. Tell the U.S. business community why you and her are perfect for each other. Highlight your strengths. Remember, the worst thing that can happen is that she says no. Show her a portfolio of things you have done, and things that you want to do. What’s your philosophy? How are you going to treat the business community better than her past? And sometimes its good to be funny, the U.S. business community likes humor.

Will She Like My Friends? (Networking)

Third party recommendations are crucial when it comes to dating this particular person. Not only will they check you out, but all the people that they think know you. Therefore, that’s why you got to get out there before she does it and build a good reputation. It is good when she knows you’re a good person, but if other people tell her you’re a great guy, that’s when the comfort level starts to build.

How Far Do I Go? (Risk-taking)

Your first date with the business community is almost to a close. You both had a great time and you walk her to the door. Moment of truth- what do you do? You’re an entrepreneur; risk-taking is right up your alley! High risk reaps high reward. And if it doesn’t, well hey, at least you tried. Go in with no hesitation for the kiss.

And who knows? Maybe she’ll invite you in.

Looking for the secret to success?  Aren’t we all?  Well, Richard St John boils down the secret to success in 8 words and three minutes in this video.

 Who is Richard St John?

A self-described average guy who found success doing what he loved, Richard St. John spent more than a decade researching the lessons of success.

So What Are The 8 Secrets?

John has 8 words that he thinks are the main attributes to success. The “magic” words are:

1. Passion
2. Work
3. Focus
4. Persist
5. Ideas
6. Good
7. Push
8. Serve

He goes into detail on each, and describes why they are important, how they relate and play off one another. Well worth 3 minutes of your time, in my humble opinion.

Running Time: 3:33

Source:

http://www.ted.com/talks/richard_st_john_s_8_secrets_of_success.html

Have your own secrets for successs? I’d love to hear them in the comments section below

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Photo Credit: jcbmac

It seems like a lifetime ago that I started my first business, maybe that’s because it is.  I learned a lot of lessons from that first venture, most about what not to do.

My First Business

The year was 1984 and I was 7 years old. I was the sole proprietor of a newspaper distribution company, call it old media, but newspapers were my game.

This was back in old days, before the internet, when people would get their news by reading words written on actual pages – don’t laugh, but many people would actually pay to get their news this way, including my parents.

At 7 I knew enough to know that I wanted some money, I was sure if I could get my hands on some cash I’d be out on my own in a couple years living the good life.

I also knew that these things called “papers” would stack up for a couple weeks before my parents finally took them to the trash.

An Idea is Born

I thought if my parents were reading these papers, and paying for them, the neighbors probably were reading them too, but maybe not all the neighbors.

I asked my mom how much a paper cost, then asked her if I could have the old ones, she said ”you can have the old ones, but don’t go leavin’em laying around the house!”

My business is born!  I would go door to door with the old papers my parents had and see if I could sell them for less than a new paper to any of the neighbors.

I thought maybe they didn’t get the paper so would happily pay for mine, or possibly they missed an issue and would want to catch up. If they didn’t have this thing called a “subscription”, heck maybe I could sell them a paper everyday.

My distribution mechanism was simple. I loaded up the papers in a duffel bag and headed out, knocking on every door within the neighborhood within my limits.

At that time I had boundaries set by my parents that I wasn’t supposed to cross. I was the paper czar of nearly 5 square blocks – I was in business!

5 Lessons Learned from My First Business

So that is how I spent everyday after school the two weeks I was in business. Knocking on doors trying to sell yesterday’s paper (or sometimes yester-weeks paper).

As I think about it now, it seems silly. As adults, we all can spot the flaws in my thinking, and even though I wouldn’t try something similar today – I made money!

Being able to make money selling old news taught me a lot about business, here’s five things I learned:

Lesson #1: When You’re in Business People Buy You as Much as Your Product

I was a moderately cute kid, with tons of ambition, and nothing but confidence in my paper business. When I talked to people at their door step they felt that. When they bought a paper from me, they were buying me, not the news that happened 6 days ago.

This lesson is as applicable today as it was then. Although we may not all be fresh faced kids anymore, people will sense when you are passionate, confident, and believe in what you are doing – and that’s what they’ll be buying a good portion of the time.

Lesson #2: Great Entrepreneurs Think on Their Feet

I learned quickly that in order to sell these papers, that weren’t as desirable as I thought they’d be, I better have answers to their questions – which mean’t thinking on my feet.

I remember on that first day being asked, “Why would I want to buy yesterdays paper, that stuff’s already happened”…I replied with “Well, today’s paper is filled with stuff that already happened too, but mine’s cheaper.” He bought a paper. My mom said I was being a smart aleck, I politely disagreed.

If you want to be a great entrepreneur you need the ability to think quickly on your feet. Responding to demands, making quick (good) decisions, and dealing with the numerous curveballs are essential to success.

Lesson #3: Competing on Price Alone is a Tough Game

My only selling point, and the only way I could sell even one of the old papers was to give discounts. At the time I thought this was shrewd, now I think it’s dangerous.

I had no competition in my neighborhood, and probably never would have selling old news, but what if another 7 year old (or a super bright 6 year old) had of come up with the same idea?  We’re both knocking on doors, how do we compete with each other?  Most likely price, which means it wouldn’t be too long until the pennies I was making didn’t justify the trouble, and I’d have a hard time making it up on volume.

Same goes later in life. You may be the only game in town now, but what happens when you’re not. Will you be competing on price alone, or do you bring something to the table your competitors don’t?

Lesson #4: Think About Scale Early in the Startup

I gave this absolutely no thought. I just wanted to sell some papers, and beat myself ragged going door to door I guess. If this venture had been a huge success I would have had no way to meet the demand – shoot, my parents only let me go about 5 square blocks, I would have been sunk right there.

The lesson here is that early on begin to think about how you may scale up if you’re business becomes successful. How will you reach more people?  Who will do the additional work? Can you scale? If you charge per hour, there are only so many in a day – how do you get more revenue without raising your price? If you sell a physical item, how many can you get and how can you distribute to more people? Just ask yourself these questions early, and prepare for growth going in.

Lesson#5: It’s Hard to Overcome a Flawed Business Model

We can all see the problems with my business model. Yeah, I sold some papers, but long term the flaws were going to bring my business down. If you’re not going into a venture on solid business foundations, you’re house is going to start leaning, and eventually fall over.

The Long Defunct Newspaper Distribution Company

I’ve been out of the newspaper distribution business now 25 years, but some of the lessons I learned back then are still with me today.

The real lesson in all of this is it doesn’t matter if you sell newspapers when you’re 7, lemonade when you are 10, or run a multimillion dollar company when you’re 40, the fundamentals of business don’t change.

Keep moving forward while learning from the past and you should be okay. And for anybody thinking about it, I can’t suggest you getting into the newspaper distribution business!

Photo Credit: Meanest Indian

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