Many business owners find themselves in a quandary on how to  generate additional sales, how to cut costs and increase their profit margins.  These situations may be the result of poor planning or no planning.  Deciding how to fix business problems could be a problem in itself.

Hiring a consultant to fix a particular area of the business without understanding how that area interconnects with the other areas could be disastrous in the long-term.  For  example, hiring someone to develop a marketing campaign without clarity on what  the return on investment should be and how it ties in with sales is common among small business owners.  They believe that fixing marketing will fix everything and there are marketing consultants who will work on fixing marketing with no concrete discussion on the expectation for sales.

Areas in business that interconnect include staffing issues and customer service, sales, marketing as well as cash management.  Consultants are “a dime a dozen” and many will focus myopically on their specialty without understanding how what they do will affect other areas of the business.  Some small business owners have paid for specific consulting services only to find themselves losing market share or experiencing decreases in profit margins in the long-term.  More than one area was affected and only one area was addressed; this will not solve the problem.

If one needs to close a serious wound, it makes more sense to use sutures than a couple of band aids. Temporary fixes just do not work and end up causing more damage as time goes on.  Do it right the first time and every time.

It is best to look at the entire operation and get some understanding on how each area interacts with the other areas so that it becomes clear how problems in a particular area will affect results in another area.  For example, if employees are not managed well, sales can be affected negatively, expenses can increase and this obviously leads to less profits.  Marketing strategies that are not properly implemented can also lead to less revenue.

When hiring a business consultant for whatever area of business, that consultant should have some clarity on other areas of business as well so that any advice given will benefit the business as a whole.  Working with business consultants who do not have, at minimum, a basic understanding of business financial statements can be problematic for the business owner.

Every decision a business owner makes affects the finances; therefore, business owners should become strategic thinkers and understand what they are doing, why, when, where and how.  They should have some understanding on what the expectations are for every decision and, if those expectations do not bring a return on investment, they may have to refrain from taking action and rethink the situation.  A good example is hiring employees.  Whatever the owner pays an employee is an investment in the business and that employee must perform to bring a return on that investment.  Owners must understand what the return on investment should be and how long it will take to realize the return.  This understanding could lead to better employee management, higher employee morale and more importantly, higher sales and better profit margins.

Owners should not habitually try quick fixes, though sometimes it is necessary to make a quick fix.  They must train themselves to take an in-depth look at the many situations that present and, thus make the best decisions to bring lasting prosperity to the entire operation.

We have just started a new year, 2010.  We cannot help but be thankful that we have survived all the years past that we have been on the planet and we can only hope that we can find the courage to persevere and to have a future that gives us all the desires of our hearts.   Those desires are not possible if we cannot make right decisions –but we must be righteous in our thinking and in our acting.  Remember all things are possible, but we have to believe.   Many of us are willing to make decisions without first understanding the need to have information that can help us prevent costly mistakes.

Making a decision – big or small – is important.  Once made, we have to stand by that decision – right or wrong – and bear the consequences.  Blaming someone or something for the outcome of a decision is a sign of weakness.  It is so important to get necessary information, study the risks involved, and look at all possible outcomes before making any decision.  Sometimes, we have a lot of time and sometimes it can come down to a split second.  As entrepreneurs, we have to train ourselves to make decisions that we can be proud of.  This means we must be constantly seeking the information that will help us take our businesses and ourselves to higher levels.  We must surround ourselves with wisdom and understanding so we can have the information we need, we must acknowledge that when we are ignorant of anything we must humble ourselves, be teachable and/or be willing to learn.  We have to know that because we don’t have the knowledge about something doesn’t mean that it doesn’t exist or is not true.  Knowledge is endless and we can never learn everything that there is to learn; we can only be open to learning every day.  The more we learn is the more we grow.  Sometimes we will suffer through our learning; we refer to those times as mistakes – but we have to overcome and go on to higher heights.

Most entrepreneurs fail in the first year of doing business.  There are so many reasons for this, but mostly because people are not willing to admit they are ignorant of the knowledge they need and sometimes when they do realize this ignorance, they are not willing to get the best help.  It is almost like people suffering with high blood pressure and self-medicating.  The stress levels do not change, the diet does not change; but they self-medicate and think they can successfully overcome the disease without professional help.

A business owner who is focused on having a successful enterprise that can help mankind – by offering great products or services and by giving jobs to people – is remiss if he or she does not do everything possible to make this success happen.  Sometimes, sacrifices are in order.   Sometimes we have to give up something we like that may be a big part of our lives (but insignificant in the long run) in order for us to grab hold to success.  Many of us are like an embryo in the womb that develops and should be birthed but refuse to come forth because we are not willing to stand our own, we refuse to let go of the “cord” that binds us to the “zone” we operate in.  We want to operate like someone birthed (learning everyday to grow strong, falling down but always getting up) but we are still holding on to the “cord”.  We operate in fear and live a lie, but we lie to ourselves.  Anyone who operates in fear cannot make right decisions.

How can growth, or change or living occur when we cannot make the right decisions that will take us to a level of success where we can achieve the desires of our hearts?  Righteousness will give us the desires of our hearts.

Please let 2010 be the year that you can let go of all fear and be willing and able to push yourself to the pinnacle of what you now see.  Believe me, when you get to that pinnacle, you will see how much further you can go.  You cannot have that view when you stay at the bottom of the mountain, be willing to climb, be willing to be inconvenienced on that journey, be willing to let go of some loads you are carrying.   You will soon get to the top and you will see what else you can conquer – if you can make the right decisions.

People start businesses for various reasons which may include, loss of a job, boredom on a job, an idea they believe may be a money-maker, etc.  Whatever the reason that businesses are started, people start businesses with the expectation of success.  Many of these business owners become frustrated after a few months and by the end of the first year, a large majority of the businesses are gone.  If entrepreneurs are not passionate about their businesses it will be difficult to stay persistent and motivated.  To be passionate means loving the creation of the product or the act of serving in a particular field so much that they willling to give the product or service away.  It is important to them that the customer is happy and the relationships they form are more important than the profits they make.  Passionate business owners will tell you that getting paid for what they do is the icing on the cake. 

Frustration sets in mainly when sales are not up to expectation and the owners feel powerless to make change happen.  It seems that whatever they do just does not work.  Why is this?  This happens because most entrepreneurs have a good understanding of the products or services they want to sell but they have no understanding of how business really works and all the details that must be attended to.  Since a business owner wears many hats or must be adept at all the functions that are necessary for a business to succeed, sometimes it is extremely difficult for the entrepreneur to excel at all functions that must be done.  It is then necessary for them to admit they can go no further on their own and get help. 

In New York City and other cities around the United States, entrepreneurs can get help for their businesses through complimentary workshops that are sponsored by Small Business Development Centers, government agencies, or get complimentary advice from various non-profit organizations.  This complimentary help may be all some entrepreneurs need to get them going down the road to success; but it may be limited and not be sufficient for many entrepreneurs and it may then be necessary for them to pay for professionals to guide them.  For example, entrepreneurs may be given complimentary advice on writing a business plan but may not be able to write a solid plan after all the advice and these centers or organizations do not write business plans.  Also, some law firms may give pro bono advice in many areas like leases or contracts but will not do specific work in those areas without pay.  The entrepreneur must be able and willing to admit that they need help that they may have to pay for. 

The business owner have to be persistent in their efforts to succeed and must be careful to make the right decisions.  Owners may decide not to budget for marketing and decide to use whatever money remains after all the other expenses are paid.  This may be a mistake since the marketing campaign done with the left-over funds may not be the right fit to reach the target customer of the business.  For example, if research proves it is best to reach the target with a 3-minute video on the internet, it will be a mistake to hand out flyers on the street. 

Setting reasonable and challenging goals are a must for every business.  Research on past behavior and to some extent “gut feeling” helps the owner set these goals.  Staying persistent and motivated rely on setting both short-term and long-term goals.  It helps motivation if short-term goals must be achieved within three months.  If goals are set, the business owner must constantly ask the question, what am I doing right now to ensure achievement of the goals?  At least one of the long-term goals may decide where the business should be by the end of the fifth year of operation and short-term goals will be the steps taken to get to that point.  Understanding that every journey begins with the first step and doesn’t end unless one keeps moving, will help the entrepreneur take all necessary steps to reach that prize. 

Businesses that do not have written goals with the systems that must be used to achieve them have a hard time surviving.  When situations occur that can adversely affect the business, they have a hard time deciding on how to react since they do not know where they should be heading and most times, this failure to react promptly leads to failure of the business.  For instance, if a restaurant has a goal to sell $2,000 every day, and there is a water main break that keeps customers away and that takes three days to fix; the owner has to decide quickly what must be done to catch up when the break is fixed.  Not making that decision quickly can have adverse effects on the cash flow of the business and may have a negative ripple effect for the business.  Imagine the business without such a goal; this business does not even know what sales should be achieved on a daily basis in order to grow the business and will not know what the right decision should be to catch up. 

Achieving the business goals translates into reaching the personal goals of the business owner.  How hungry the owner is to reach those goals will determine how persistent and motivated the owner will be in attaining them.  A goal may be compared to one taking a journey to a particular place; when one gets to the end of the journey and sees all there is to see at that place, one then starts thinking about getting to another place.  Goals are not written in stone and must be adjusted regularly to meet the needs of the business.  All business have needs but not all business owners have written their goals or understand how to achieve them.  Staying focused on the journey and where it may end will keep the entrepreneur doing everything necessary to attain success. 

Businesses that succeed are persistent in their efforts and the rewards of achievement keep them motivated.

You have a great idea, a wonderful vision, a fantastic dream – and you are trying to figure out how to bring it to fruition.  This could just be legacy you will leave for your children.  You have found the path you must travel to gain the ultimate freedom.  You must now avoid the mistake many others have made – deciding on how to operate without first understanding what the operation is going to be.

Many entrepreneurs are fully cognizant of the fact that they know what they want to do but don’t fully understand how to do it.  They go to professionals they trust for advice and, unless those professionals understand the dimensions of a successful business, they are often misled.  You will be misled if you do not know which questions to ask.  It is a good idea that you be fully acquainted with your needs before you seek advice.

Those professionals that give advice about the right entity for an entrepreneur to choose must know, at the very least, the average annual taxes that the business is projecting to pay over the next few years and how much growth is anticipated for the future.

The usual entities that entrepreneurs choose are (1) Entrepreneurship (2) General Partnership (3) Limited Liability Company (4) S Corporation and (5) C Corporation.  These entities differ in various ways including the deductions that are allowed and how taxes are paid.  For the first four entities, taxes are paid through their owners and are like payroll taxes.  The C Corporation pays its taxes separate from its owners.  For payroll taxes, the more income a person declares to the government is the higher the tax bracket that person is aligned to.

The owners of some of the first four entities end of paying close to 50% of the taxable profit while some C corporations with the same taxable profit pay 35% in taxes.  Get the information you need before you make a decision and get it from a professional who understands all the dimensions of a successful business.  It is sad, but true, that many of those professionals that give this type of advice to entrepreneurs do not know how to successfully develop their own companies – yet they are giving advice.

It follows then, that unless you know your numbers, you cannot decide which entity you will be choosing to operate under.  This means you should have a well-written business plan.  If you are under the impression that a business plan is only written when someone is looking for loan or equity financing, you should readjust your thinking.  You need a business plan for your own use as a roadmap to guide the development of your business.  You will be proactive rather than reactive when situations occur that ordinarily could be detrimental; and you will be more likely able to overcome them instead of giving up in frustration and desperation.

Of course, deciding on the entity will take several factors into consideration including

·         How much profit the business will declare for tax purposes

·         How many partners, shareholders or members will be liable for the taxes

·         How many expenses the entity will have to deduct

These are examples of some of what the business owner has to be aware of.  As a responsible business owner, you will seek advice from the best sources.  You will be willing to give up time and money to get whatever you need to make the best decisions to grow your business.  A business that is not growing is dying.  After first determining if there is a need for your product or service; after developing and writing your business plan, you will then determine the best entity to operate under.  There are no shortcuts to this determination.  Doing it backwards can cost you thousands of dollars in taxes.  If you decide on the entity before you understand your numbers can put you in a hole that may take precious time and money from you as you struggle to get out.

In order to overcome anything, you first have to be intimate with it. You cannot overcome anything that you do not know. Whether it is fear, drug abuse, selfishness, alcohol abuse, greed, etc., you must first have an understanding of what it is you have to overcome. Once you get to know it for what it is, you will leave it alone.

You must realize that while you are still in the grips of whatever it is that is causing harm to you, your family, or your business, if you do not recognize it, you will go to the point of denying its existence. People deny truth every day. Until you realize that the pain of truth will set you free, you will forever be in bondage.

Once you have overcome, you will not or should not allow it to be in your space ever again. It is always one day at a time for overcoming. One by one, you must overcome all that create setbacks for you, until you are totally free to fulfill your destiny. It is impossible to know and fulfill your destiny when you are possessed by negativity in any form, whether it is fear, gluttony, greed, drug or alcohol abuse. Understanding the negativity will free you from its control. Remember, you do not possess the power to change anyone but yourself. People can be influenced by your words and your actions but they make the decision to change their lives, so it is with you. No one is to blame for anything in your adult life but you – you may have to overcome making excuses for failure by laying blame on others. Only you are responsible for your success or failure.

Many people know what they should be doing, but waste precious time doing something else because of negative influences in their lives. The “something else” is making them miserable and dis-eased and keeping them poor.

Time is more precious than money. With time you can get money, but money cannot buy you time. A life without fulfillment is a wasted and unhappy life.

Your gifts and talents can take care of all your needs. No one was put on this earth, even under the most extreme conditions, without being given the means to take care of their needs. We hear stories all the time of people who succeed under the most “impossible” situations. Why were they chosen amongst all who were called? What stops you is what you need to overcome, but first you must know it and become intimate with the power it holds over you and what negative influence it has over your life and your dreams. Once you know it in its entirety, now you have the power to overcome it. Not knowing everything you need to know, can cause you to step back into its grips.

Our greatest achievement is overcoming because it continuously takes us to a higher level of understanding. To overcome you must recognize the problem, become disciplined to confront it, become accountable to the goal you must reach – which is, overcoming to succeed.

—–Written by Patricia Warner (copyright pending).