How to Make Money in a Declining Market
Sales opportunities exist in a declining market. When consumers cut back they look for savings. Try to repackage or reprice offerings to take advantage
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Small Business Operations
Salary vs. Standard of Living
Americans are fixated on how much they make. People use their salary as a report card of sorts to compare their success to others. The problem is that income is often a poor measurement of success since it is decoupled from a person’s standard of living. It is not how much money you make, but
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Do Your Employees Know Their Contribution?
Everyone deserves a living wage, but the wages earned by an employee should be directly proportional to the value they provide to their employer. A pay raise should not be based on how long a person has worked for an employer or some government mandate. When my kids have come to me and asked “How
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Understanding Sales Volume
Sales Volume is just one part of your Economic Model and works in concert with margins. Sales volume is simply the number of units you sell in a specific period of time, say in a month. You can be just as successful if you have a high-margin low-volume business as you could with a low-margin
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Understanding Margins
Margins are just one part of your Economic Model. Margins can be defined simply as the difference between your Direct Cost to deliver a service or a product (often called COGS or Cost of Goods Sold) and the price you charge the customer for that product or service. The basic coffee you buy at Starbucks
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Understanding Revenue Drivers
Revenue Drivers are just one part of your Economic Model. Revenue drivers are how many ways you have to separate your customer from his money. A few years ago, I went to the Dixie-Stampede while I was in the Great Smoky Mountains. The ticket price was a reasonable $45 per person, which is a sensible
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Understanding Your Business vs. Economic Model
Most clients I see can clearly articulate their Business Model, but struggle when it comes to describing their Economic Model. Simply put: Amazon and Wal-Mart share a similar low-cost, wide-selection retail model. However, their Economic Model is quite different, since one business is a virtual store and the other a physical store. Within the Economic
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What is Your Special Leverage?
Every Business Model Needs to Leverage Something. That Special Leverage Could Be A Unique Skill, A Special Tool, Or Proprietary Process.
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The Path To Success Is Paved By Math
One nice thing about mathematics is that it is the same in every language and has only one solution to a problem. Wouldn’t it be nice if every problem had only one correct answer and, so long as you knew the rules, you could find that one true answer to every question? Successful entrepreneurs understand
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Are You Focused On The Right Target?
As an entrepreneur, you need to make sure your efforts are directed and focused on the right target to achieve your desired outcomes. For example, one of the goals of law enforcement is to reduce illegal drug usage. To that end, law enforcement agencies target drug dealers in the hope that these efforts will reduce
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