Business Planning

August
12 2013

What are you focusing on to get NEW business? Leads v. Referrals

picmonkey_imageWhen it comes to GROWING your business, getting NEW business is very important.  As business owners we look for various ways to get leads or referrals, but leads and referrals are not the same, and should be treated very differently.  Here is the difference between the two, and which one you should be focusing on:

Leads

According to dictionary.com, a lead is a suggestion or piece of information that helps to direct or guide.  A business lead is a suggestion that this person or business may be a good potential for new business for you.  A lead does not come with a recommendation it is merely a suggestion that this company or person may have the services or products you are interested in.  Therefore, before a lead will turn into new business, he or she will need additional proof or a sense of trust to feel comfortable with giving the business to you.  A lead provided by  a third party usually includes the person/company’s name, number or e-mail address for someone who is possibly in the market for your service or product.

Referrals

According to dictionary.com, a referral is a person recommended to someone or something.  A referral results in more business than a lead because it is a recommendation.  When someone is interested in a product or service, they like to know if it is recommended, so if you come highly recommended by someone, you have a higher chance of getting that business.  A referral goes something like this, “Jane I would like you to meet John, John has a business with the services that you are in need of, I wanted to connect the two of you because I know that John does good work and I knew it would be a good connection for guys to meet”

The difference between a lead and a referral is really whether an introduction was made, and if the person was recommended.  If an introduction was not made and the person/company was not recommended, that is considered a lead.  If an introduction was made and the person was recommended, that is a referral.  Businesses close more business from referrals than leads, so what are you focused on getting?  Leads or Referrals?

Posted by Nadine Mullings  |  Comments Off on What are you focusing on to get NEW business? Leads v. Referrals  |  in Business, Business Development, Business Planning, Marketing, Uncategorized
May
30 2013

3 Ways to Get Capital For Your Small Business

After attending the BE Entrepreneur’s conference earlier this month, I learned about three main ways small businesses can secure capital to grow their businesses:

1.  Traditional financing through a financial institution–  This is probably the most popular or most known type of way to get financing for your small business.  You can go through the Small Business Association (SBA) to get assistance with this type of financing, or you can work directly with a bank or a local credit union.  No matter which avenue you choose, you will be required to have good credit,  good financial statements, a good business plan, and you will be taking on debt for your business.

2.  Angel Investor or Venture Capitalist-  This type of capital I was not as familiar with, but I know it is available for small business owners, but mainly start-up companies and mainly technology companies.  Angel investors use private capital  to invest in start-up companies in exchange for equity in the business, and a Venture Capitalist is a person or company that provides capital for new commercial enterprises.  For angel investors and venture capitalist they are not interested in your credit, financial statement or business plan, but more interested in the business concept, the viability of your  product or services, the management team for the business, and the market demand or potential demand  for your product or service.  Venture Capitalist require equity in your business, so you loose some percentage of control for your business.

3.  Alternative sources of capital–  Alternative sources of capital have become very popular now a days with platforms such as crowdfunding.  Crowdfunding is the collective effort of individuals who network and pool their money, usually via the Internet, to support organizations and companies.  The capital raised is by donations given in return for some item or privilege from the supported organization or company.  The great thing about crowdfunding is your business is not taking on debt or giving away any equity.

No matter what avenue or avenues you choose to use to get capital for your business, be sure to do your research and BE PREPARED before you start any process to gain capital for your small business.

Posted by Nadine Mullings  |  Comments Off on 3 Ways to Get Capital For Your Small Business  |  in Business, Business Development, Business Planning, Uncategorized
April
23 2013

3 things to consider BEFORE making ANY business decision

As a business owner you have to make many business decisions all the time, but how do you know if you are making the right decision for your business?  I feel there are 3 things you should ALWAYS consider before making ANY business decision.  These 3 things are:

  1. Logic– this is when we use our mind to think about the consequences of the decision.  We try to decide will this decision make logical sense for my business mission or goal?   Most business owners always consider the logical reasoning before making a business decision. Logical reasoning includes things like:
    • Does this make sense for my business?
    • How much will it cost me if I do this, or what will it cost me if I don’t do this?
    • How will this affect the bottom line?
    • How profitable could this be?
    • How much time and energy would I have to spend on this?
  2. Emotion–  Some business owners consider the emotional side of making a business decision, but not all business owners do.  The emotional reasoning includes:
    • How would this decision make me feel about the business?
    • How do I feel about working with the individuals involved?
    • Do I feel this could really work?
    • Is my heart in it?
  3. Spirit-  Now this factor is overlooked by many business owners, but could quite possibly be the most important factor.  The spirit is the small voice inside of you (your gut) that usually tells you whether this is right for your business or not.  It is not based on logic or feelings, but on your intuition!  Sometimes we overlook the spirit in making business decisions because logically  the decision looks like it makes sense, or even emotionally we really feel that it could work, but the spirit is somewhat like knowing but not recognizing.  The spiritual reasoning includes:
    • Not really being able to explain why it makes sense or does not make sense, but you just know
    • Not being able to reason whether a decision is right or wrong, but you just know
    • Not relying total on your feelings, but relying on the sense or the direction the decision will take you
    • Paying attention to those small clues that are usually overlooked that give you guidance and direction on the right decision to make

Each decision factor is very different, but all are necessary and should be considered before making ANY business decision!

Posted by Nadine Mullings  |  Comments Off on 3 things to consider BEFORE making ANY business decision  |  in Business, Business Development, Business Planning
March
08 2013

The Four Seasons in Business: What Season is Your Business In?

As most of us know there tends to be times in our business when we are super busy, and times in our business when we are not as busy.  I feel business goes in seasons.  Much like the quarterly weather seasons we experience, the business seasons are necessary for us to go through and appreciate.
  • Season 1 (Winter)-  This is the time when business is kind of “cold”.  We are not getting a lot of business, but we have enough business to keep us a float. We can use this time to make plans and work on building up our network.  Business plans are at the heart of our business and when things are slow we should review our plans, update our results, and plan on ways to improve.  Our networks also tend to be the source of our new business, so building our networks in the “cold” season will help us to get more business for our other seasons.
  • Season 2 (Spring)–  This is when we start to see the fruits of our labor.  We start to get phone calls from people who are interested in our business.  More people are interested in joining our team or partnering with us.  During this season we can say “Business is good”  because we are seeing results.  The goal in this season is to provide excellent customer service and exceed your customer’s expectation.  When we exceed our customer’s expectations and keep our customers happy, it will lead to referral business, which is one of the main ways to help grow your business.
  • Season 3 (Summer)–  This is the time when things are more relaxed and comfortable for your business.  You are getting a steady stream of business, but you are not overwhelmed.  This season is the ideal time to think about creating new products and services that you can offer your clients to enhance your business.  People always like new things, so it is important to consistently offer new products and services in your business.  This season is a great time to offer new products and services because you are able to manage your work load.
  • Season 4 (Autumn)-   During this season your business may experience a slight decrease as you are getting close to the “cold” season.  Don’t be alarmed, now is a great time to amp up the advertising and promotion of your business.  More advertising and promotion of your business during this season will help increase your sales volume due to the natural decline in sales volume you  may be in experiencing.  This season is also a great time to be sure to plant your seeds (follow-up phone calls, presentations, networking, etc.) so you can have a fruitful Spring!

Each season my vary in length and time, but most businesses experience all 4 seasons at some point in the life of their business.  The key is to stay focused and realize nothing lasts forever.

Posted by Nadine Mullings  |  Comments Off on The Four Seasons in Business: What Season is Your Business In?  |  in Business, Business Development, Business Planning