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To avoid bankruptcy…think smaller?

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There’s a wide mis-conception that the more hard work you put into something the better result you will achieve - and as in running a business, working harder should help you to avoid bankruptcy, right? Wrong.  The correct way to achieving better results in your business is to work smarter, not harder!

As in a recent article I read on MSNBC.com titled

Knowing when to call it quits in business’

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Sandy Tacchino of Fresno, California never would have thought she would be in jeopardy with her business, Little Dreamers, a children’s clothing boutique.  Determined to succeed, Tacchino like many driven entrepreneurs held the belief that grinding away day after day and continuing to work harder would end in an American success story, not a failure.

“I think we never really considered [bankruptcy] as an option because [our business] was a great idea, so who wouldn’t love our store?” she said.

Herein lies the problem- Like Tacchino, most first time entrepreneurs go in to business thinking that everyone will want their product. But unfortunately, no matter what it is you are selling, you will never be able to sell to everyone Norbit dvdrip . And if you are marketing to everyone, you are most likely going to capture no one.

You must be crystal clear on exactly who it is that wants what you have to sell- not needs, but wants

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. We don’t buy the things we need, we buy the things that we want.

For instance, I need to get my haircut regularly. But I want a place that is convenient, fast, reasonably priced and has appointments when I need them. My wife, however, also needs haircuts, be she wants a place that is chic, in the right part of town, has the best stylists and doesn’t mind making an appointment four weeks in advance. See the difference. Same need, two very different wants.

Find out what your customer wants and market specifically to those wants and you will be on a much better path to avoiding bankruptcy and filling your bank account.

Want to Know Who's Making Money in this Economy?

When times get tougher and cash flow gets smaller, consumers get more creative. Especially those consumers with luxurious appetites. One niche that seems to be flourishing during these leaner times are the thrift, resale and vintage shops.

Designer consignment stores such as The Way We Wore, who boasts such labels as YSL and Halston, has seen a 22% increase in sales over last year while Decadestwo Van Nuys Blvd. dvd , who carriesonly the creme de la creme of vintage designers reports sales are up 45% from last summer. These stores are not only seeing more shoppers coming in, but also more consignors looking to sell off last year’s Louboutin’s. Both parties win, the stores get an influx of new pieces to keep all their new customers engaged and the sellers get nice little return on their expensive investments.

This boost on sales isn’t limited to the designer resalers however, according to Los Angeles Times staff writer, Emili Vesiland. In her article Secondhand clothes, with sales rising, are the new scaled-back chic

, “The great purge in L.A.’s closets has also translated into healthy sales at charitable thrift stores, including the Salvation Army and Goodwill, as well as secondhand outposts such as the Buffalo Exchange in Highland Park and Santa Monica…Sales at the Salvation Army stores in Santa Monica are up 7%-12% from the previous year.”

So…please don’t tell me NO ONE is making money right now. I know it seems tough, but if we just get a little creative, we might find there is opportunity right under our noses…or at least in our closets!

If the 99 Cents Only Stores can raise their prices, why can't you?

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For the first time in its 26 year history, the 99 Cents Only Stores will be raising their prices to offset the rise of household items, foods and other goods.

To raise or not to raise, that is always the question. Well, if your not making enough to cover your costs, you must raise your prices (or lower your costs) in order to make a profit. But what if you just feel like you are worth more?

If you feel that you are worth more than you probably are. If you know that your product or service brings your customers incredible value, quality, ease, relief, hope and/or benefit, then consider separating yourself away from the competition and raising your prices.

Raise prices during an economic downturn you say? Well, if you are competing on price right now then you are facing a difficult battle. You can never win when you are competing on price alone. Your value and your service are your competitive edge so if you want to attract the clientele that can pay for what your worth AND you can deliver on that promise, then a price increase may be an option to think about when looking for ways to increase your revenues.

If you are STILL unsure though, complete the following exercise from Dr. John DeMartini, world leading behavioral expert, speaker and author:

  1. Calculate how much you would like to raise your prices
  2. Write down 100 benefits to your customers that would result from this raise
  3. Write down 100 reasons why NOT raising your prices would be detrimental to your business and customers
  4. Give yourself a raise!

The "Spray and Pray" of Direct Marketing

I get so much direct marketing crap online and in my physical mailbox.  Most small business owners use the “spray and pray” approach to promote their wares by throwing a few promotional lines on a postcard and sending it to thousands of people.  No wonder they become frustrated and reinforce the belief that “this stuff doesn’t work”  Duh!

Think of a lamp with diffused light spread throughout a room. It’s nice, soothing and subtly stated, hardly powerful, focused or intense.  At the other extreme is a laser, intensely focused, concentrated, which can cut through anything.  Ok, hold that visual in your mind….yes, like a laser.

That’s how you want to direct your direct marketing:  When you try and talk to everyone, you’re like a lamp.  And you end up talking to no one.  By focusing laser-like on the emotional needs and wants of your ideal client you can talk to them in a manner that excites them and sends the message that you know how to make their life happier with what you do.  Be laser-like in really understanding why people buy what you do.

Rick Lugash

The Law of Attraction Does Not Work

Unless, that is, you combine it with the Law of Action.

The movie, “The Secret” was both a blessing and a curse to the Quantum Physics and spiritual community alike. On one hand it raised some much needed awareness on the concept that the universe is abundant and magnificent; that anything that we want for ourselves and our lives is, indeed available to us. But what “The Secret” failed to reveal is how we actually turn what we want in to what we have.

Why am I writing about the Law of Attraction in a business blog?

Whether you want a new porsche or to increase your sales by 50%, you must start with a clear precise vision of exactly what you want and then you must build a strategy in order to acheive that goal. Staring at a picture or wishing on a star will only make you frustrated if you are just sitting on your bum waiting for your dream to turn in to reality. Continue reading →

Applying the Lessons of an Italian Economist to your Business

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Vilfredo Pareto

One of the most popular observations I make watching small business owners is the never-ending spiral of trivial activities that they undertake day after day after day.  Though most of these seem important and URGENT at the time, most are low leverage, meaning in six months it wouldn’t have made a difference whether they were done or not.  We seem to focus on the trivial many versus the critical few.

Before you start another day in this overwhelm consider how the 80/20 rule plays a role in your business.  The Italian economist taught us that 80% of the affects come from 20% of the causes.  While you probably can already confirm that 80% of the time you wear only 20% of the clothes in your closet,  consider that 80% of your results are coming from 20% of your activities in your business.  So what are those activities?  Most likely they are one of three things:  attracting more clients, generating more revenue from existing clients or increasing profit margins.  Start looking at your moment to moment activities and question yourself on their impact.  By the way, you might also find that 80% of your sales are coming from 20% of your clients.
Rick Lugash

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