Lessons
How To Move Forward and Make Money with Susan Schreter
How To Move Forward and Make Money with Susan Schreter
1Course Introduction
02:46 2Improve Your Business Mindset
08:36 3How to Fund Business Growth
07:20 4The Dangers of Need-It-Now Funding
05:05 5Steps to Build Your Plan B
08:00 6Create Value in Your Business
07:18Lesson Info
Steps to Build Your Plan B
So what are the first steps for you to make your plan B the best it can be? I have five recommendations. Number one, let's start by setting specific goals for your ownership stake. So what do I mean by this when I sit down with business owners, some of them struggling and want to do a redo, others are just starting up for the first time. My recommendation of this starting point is always the same. What do you want to achieve? How much money do you want to make and guess what everybody's responses? It's not specific. You see, I just want to be successful. I want to make lots of money. So what does that mean exactly? So if you were sitting right in front of me right now, you would not be able to leave until you told me the exact amount of money you want to make in business. Why is that so important? If you want to make 50,500,000,000, what is it you want to achieve? That will inform you of the steps you need to take in order to achieve those goals. Being successful is not a good goal. It...
's not specific enough, chances are you won't achieve it my way. You have a better chance of achieving a goal. If you set the goal. Now, let me give you an example of how specific goals can help you. So Let's say you want to invest $5,000 into your business. Well I want you to double or triple the value of that business. I want that business that you start today For $5,000 to be at least worth $15, in a few years time. That's one way. Another thing is it's not acceptable to start a business if all you want to achieve is to just earn a salary. Your expectations are too low for the risk you're about to take, especially if you're going to invest money or take money out of your savings, aim higher you are worth it. Here are some other things about goal setting that can tend to undermine business owners. I spent a lot of time over the years doing workshops for veterans all across the country. It's my passion. And veterans are specifically targeted to buy franchises. Why is this? Why would franchise sales people want to target veterans? Well they can borrow money from the S. B. A. At preferred rates and they get answers very fast. Veterans tend to have great credit ratings and responsible and they often leave service with a little extra cash in there, bank account, All good things for somebody selling a franchise. So what do those business owners say to me were those veterans say I need a certain amount of money to buy a franchise. This same kind of thinking is for people who want to buy a business, they're shooting too low. So what they do is they scrounge up all the money they can in order to buy the business, their goal is too low. They need enough capital to succeed in the business to operate the business. So this is where I go back to, what are your specific goals? Are they the right goals? Are they achievable? Because the worst thing we can do is fund only half of your plan. You want to be able to fund at least to a point where you reach a milestone of financial safety. Now, these are big words, guess what? Go to my course, You get to learn all about this in detail, so you won't make the mistake of setting goals That get, you know where I want you to get somewhere. # two. The best way to make sure your plan B is better is to know what's profitable. I want you to go through every service you offer everything on your restaurant menu, everything you do in business that you build for. I want to make sure it's profitable. If it's not, don't do it, the more you sell of the unprofitable item, the more you lose money, the more you're going to go out of business someday in the future and you will never have enough cash to fund a business that is unprofitable. It just doesn't work for the long haul. So again, go back what really is profitable. And I recommend, especially during this post covid era where prices are going up as you start from square one, Make sure that the prices that you intend to charge, where the cost you have to incur in business, that you can cover them at today's prices for today. In tomorrow's reality, not what worked 12 months ago And here's one extra tip. I love it. When a business establishes a minimum level of gross profit margin profitability for everything they do or sell in their business and share that with your employees. It will motivate them, it will empower their decisions, it will empower their recommendations. I want you to remove every kind of loss leader on your business line up, your product or service line up. You're worth more insist on it. Now we're on to number three, it's time to get rid of this stuff. You have to get rid of whatever doesn't make the grade in profitability or performance you've got to cut now is the perfect time to cut the things that have been weighing you down, weighing your business down and keeping you up at night, I think you know where the weaknesses are. But do you have the leadership chutzpah to cut them? Here's why you have to. And I know sometimes we feel tension in guilt about making the hard decisions, but didn't you go into business because you wanted to make all the decisions in your business life? I think so, I hear it all the time. I want to be the boss. I want to make the decisions. Well the best decisions are the decisions that will improve your business. If you've got an employee, that is just not cutting it. And weighing you down now is the time to cut that employee. You are benefiting all the other employees at the time. The same time, take the tough steps, make the tough cuts free yourself of the stuff that is just never going to reward you. You're wasting your time and cash in a way that is not going to advance your business. Be a leader. Makes a call, makes the cut.
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