Saturday, September 30, 2006

Put Yourself Out of Business?

At QSR magazine's Dine America conference last month, Steve Sheetz of Sheetz Convenience Stores took attendees through their process of "putting themselves out of business" - not in the typical fashion many companies do, but rather by asking customers and employees to provide suggestions and input on building the Sheetz of the future that will put their current stores out of business. How many businesses would take that bold a step?

The result? The Sheetz Convenience Restaurant --- no longer a gas station that sells food, it’s now a Convenience Restaurant that also sells gasoline. Worried? You should be. Open-theater food preparation, bulk candy dispensers, made-to-order sandwiches, and self-service order kiosks, even in the drive-thru (no speakers here), all add up to a convenience store selling more "restaurant" food per location than many of the leading quick-serve chains.

A self-service kiosk to place orders in a drive-thru? "We can’t do that!" Sometimes what you know and do holds you back from what could be done. The old saying, "Incrementalism is the worst form of change" rings true, certainly in the case of Sheetz, and likely for your business. Get out there and be different, better, and make people say "wow." Today’s customer demands it.

How? Ask! Sheetz did and now does TRIPLE the volume per location as what their competitors do. Employees and customers know your business and what they would like it to become. Seek input and make decisions. Tweaking the concept doesn’t always maximize the impact you can have on the top and bottom lines.

Employees and customers want to be bonded to your brand. What better way to do that than by asking their input in order to put yourself out of business

Internet Based Home Business and Contingency Plans

You have built a successful Internet based home business and your revenues are rolling in, so why should you worry about contingency plans? After all the Internet is ubiquitous and available virtually all over the world. We will examine some of the single points of failure, which could seriously damage your revenue stream in this article about contingency plans.

There are literally thousands if not millions of Internet businesses today and we cannot anticipate every possible scenario. Instead this article will discuss some of the general areas that anyone who depends on the Internet for their revenue should consider. Single points of failure are really the central focus of any contingency planning. Any time you have a failure of one of these elements, you can seriously risk your revenue stream and service to your customers.

The Internet itself is widely available with many interconnecting routes for managing traffic and as a result is one of the most robust networks available on the planet. So what is the problem? Well everyone must access the Internet from some point regardless of whether you do it from your home or office. In addition the services you use to provide your service to your customers must also access the Internet as well. These access points and applications, which run on these servers are often the trouble spots for many people.

Lets assume that you have a high speed line coming into your home with several computers and employees working on them and using this high speed line. What happens if you have computer failures, your hard disk fails or your high speed line goes down for a day. Do you have back up plans in place to replace your computers, to work from another location or recover your lost data. Depending on the risk of these events occurring and the impact on your revenue, you may want to implement recovery programs that minimize the impact of these sorts of failures.

At the other end of the network you are most likely making use of some ones server farm and applications that are running on these servers. This area is even more important since if your revenue stream is dependent on these applications running you will want to make sure that they can survive any number of catastrophes. Questions you can ask include: is the data backed up every day; do they have back up servers that your applications can be migrated to if there is a failure; do they have back up power to deal with power failures; do they have several access points to the internet in case one line goes down; are their databases secure from hackers; etc.

These are just a few of the areas that should be considered as part of your contingency planning activity. Of course you must balance cost vs. revenue loss with the risk of failures to decide on how much should be spent to deal with a potential disruption to your Internet based home business.

Friday, September 29, 2006

Introducing Successful Business Communication

Whenever we face the task of writing a report, preparing a proposal, completing a staff study, or composing a business letter, we go through the same series of logical steps. First we recognize the problem and/or the purpose with which the message must deal. Then we plan the content of the communication to achieve our goal. Next we organize our ideas so that they will be presented in an order that is logical and psychologically effective. Later we have to write the first draft, which must be followed by careful editing. It is imperative to make sure that what we have written is stated clearly, completely, correctly, and concisely. Writing the final draft from the edited version then becomes almost a simple formality.

In sum, the planning step pays dividends to both the writer and the reader. A working outline gives the writer an agenda to follow in creating a clear, organized document. That outline, as translated into headings and paragraph beginnings, serves the reader as a road map for following the writer's thoughts. The end result of such orderly sending and receiving is successful communication.

When we communicate, we attempt to transmit ideas. We select words, order them into sentences and connect the sentences to build paragraphs. The way business people handle those three elements largely determines how effective they are in making themselves understandable to others. Creating and maintaining high standards for written communication in the workplace is hard work on the part of the manager. But the effort is well repaid as subordinates begin to practice the same standards set by the manager. The alternative -simply letting poor writing go forward- backfires eventually on the bottom line, as clients, stockholders, and the public lose faith in a company that can't communicate accurately and clearly. Effective written communications succeed in both rational and emotional ways. Skilled business writers convey and arouse feelings as well as communicate facts and ideas.

Every company, big or small, communicates to dozens of different publics. These publics are either internal or external to the firm: employees, suppliers, dealers, distributors, manufacturers, customers, vendors, prospective purchasers, government agencies, community groups, educational institutions, and so on. Of the many types of written or printed communication forms, such as newspaper and magazine advertisements, direct mail pieces, telegrams, reports, and letters, it is certainly letters are used most frequently.

Our modern world of computer and electronic communication, like the Internet and the use of e-mails, has made a striking difference in our use of business letters, as information now can be send quicker and at less cost than in the past. But although the transmission of the business letter is changing, the essential act of sending a message from one person to another remains the same. Since one person is still communicating with another, it is important to be aware of and practice the basic principles of successful business communication.

Become a Credible Communicator Make Honesty Your Policy!

When you speak, do people listen? You don't have to be E.F. Hutton to command attention and respect in the workplace. But you do have to be credible.

Credibility in the workplace means believability. Simply put, do people believe what you say? Is your reputation based on a track record of telling the truth? Are your estimates accurate, your forecasts realistic and your word solid? Or are you a big talker, a storyteller or a spin doctor? Strive to be a credible communicator.

The Right Way to Speak and Write

From the moment you submit a résumé and then interview for a job, the credibility counter is activated. Are your CV's assertions accurate, your chronology factual and your affiliations, degrees and awards correct? Whether spoken or written, our communication must withstand the test for truthfulness.

Whether or not you are "found out" during the interview process, you can lose your job and damage your career immeasurably when you lie, misstate or misrepresent your accomplishments. Pulitzer prize winning authors have been undone, as have supposed war heroes and many a politician, by aggrandizing or completely falsifying one's past accomplishments. You're also susceptible to blackmail when you lie and are then threatened with exposure. As we've just seen, there is no "luck of the Irish" involved when you lie about your credentials, even as the head football coach for the Notre Dame Fighting Irish.

For entrepreneurs this is especially true. You ARE your business. You must be beyond reproach. Even a hint of impropriety can be fatal. Your goal is to ooze integrity through your words and deeds.

Your Word Is Your Bond

People listen to what you say and how you say it. In every job situation you have the opportunity to become known as a person of his or her word. Conversely, you can become known for shading the truth, for telling people what they want to hear, or parsing words as a defendant might do under cross examination in a court of law.

We've all heard of the boy who cried wolf so many times that when a wolf finally appeared, people had long since stopped listening. This boy's credibility had long since turned non-existent. The same is true in the workplace. Whether you cry racism, sexism, ageism or favoritism it's important that there be credence to your claims. You do everyone a disservice if you falsely accuse or ascribe such motives to actions that otherwise occur

Words Are Sticks and Stones

Beyond misrepresenting your own accomplishments or capabilities, be cautious of assertions made about others. Character assassination can be fatal to careers, and not just the person you're blaspheming. Whether or not you're a manager your words carry a weight to them that affects others. Gossiping about others or spreading falsehoods or even half-truths can flag you as dangerous, untrustworthy and ultimately unpromotable.

One of the keys to success in the workplace is engendering trust from your co-workers. If you are gossiping or betraying confidences you destroy your own credibility — as an honorable co-worker, a safe confidante, and am ally.

Take the High Road

Workplaces provide ample opportunities for you to earn credibility. Every time you make a deadline, do what you say you'll do or are there in a time of need for others, the department of the company at large, your credibility rises.

Times when you defend the honor of co-workers who aren't present, refuse to engage in gossip, or caution others to give co-workers the benefit of the doubt, you are showing wisdom and professionalism, which raises your credibility in the workplace.

Similarly, when you "say the right thing" or "do the right thing" in ethical situations your credibility is enhanced.

Tell It Like It Is

Often employees fall down when it comes to admitting mistakes. The credible communicator can admit errors or mistakes in a forthright and direct manner. Everyone makes mistakes, yet the credible communicator can address them and go about rectifying them, restoring confidence in him or herself. Those lacking in credibility might try to cover up, ignore or minimize their folly, often compounding the error of their ways. Ultimately, it's less important that you made a mistake, than that you fixed it and can assure others it won't happen again.

Know When to Say No

The credible communicator doesn't just tell people what they want to hear. Life would be easy of we could say "yes" to every request we received. Yet realistically, agreeing to something you ultimately can't deliver on is detrimental to your reputation. Develop the fortitude to say "no" when it's the right answer, even through it may not be the popular one. Over the long term, you will be respected for the accuracy of your assessments, decisions and determinations, even if the news isn't music to the ears of all who listen. Sometimes the truth isn't popular or pretty, but a person who is a "straight shooter" is respected by all.

Earning Your Stripes

Strive to boost your credibility rating at work and in your professional relationships. You'll know you're succeeding when you hear others tell you they know they can count on you, have confidence in your projections and feel secure in their knowledge you're on the team. Don't be in-credible…strive to be incredible!

Thursday, September 28, 2006

Hard Work Is Bad Management Business and Personal

Jenny woke tired. Her business was growing and the hours she was putting in demanded more and more of her time. She raised her head from the pillow, stumbled out of her now empty bed, and went to the kitchen. Still half asleep she put the kettle on for her morning cuppa and slowly walked to the bathroom. There on the floor were yesterdays clothes. She’d barely had the energy to slip from her work gear and climb into the bath to sip her chardonnay before bed, let alone pack her clothes away tidily.

She sighed at the sight of the untidy bathroom, but with her head swimming already, she just resigned herself to clean it all up on Saturday when she could sleep in. After her tea, Jenny dressed, put on her gym shoes, leashed the dog and stepped out into the day for her morning walk. She loved the fresh air.

Two hours later she was behind the desk, facing the usual barrage of emails, meetings, conference calls and fires to be put out. Jenny was successful. Profitable, creative and in love with her job. But something was wrong. Jenny was single and didn’t want it that way.

Hard work is bad management. When our identity becomes so linked to our work, we work harder thinking that we are being a better person. We link the time spent, the challenges faced, the hurdles overcome to the goodness of who we are. And here begins a problem. Hard work is bad management. Actually, the smarter we are, the less hard we work.

Having our identity tied up with hardship is very normal in our western culture. The privilege seems to be that those who are highly admired, have overcome obstacles, whereas those who have been blessed with seemly comfortable existences are termed lucky or blessed. They are not given such high accolade as the battler who overcomes adversity.

But adversity in itself is often the consequence of bad management. Few people acknowledge that failed relationships, business hardships or failed health are actually caused by bad management. Bad management of anything is most often the cause of the adversity we are so often given the accolade for overcoming. We usually cause our own hardship.

Trekking in Nepal I share allot of time with a Tibetan Doctor and often do the rounds with him to local villages. He provides his services free and we sponsor him by paying for some the medicines for those who can’t afford it. His patients often complain about sore this and sore that and hope he has bought with him a miracle. But his medicine is based on fixing the cause. The patient thinks there is a solution to a problem without dealing with the cause. And they are very disappointed when they are directed to the cause, like acidic eating alcohol, too much rice or something they think is a “normal” behavior.

It is the same here in Jenny’s life. The cause of her ever increasing tiredness, her increasing demands at work and her singledom is bad management. Not a growing business.

Growth of anything should stimulate growth in technique. Small business requires management of certain quality. Large business requires management of a higher quality. What keeps small business small, is bad management. If you apply small business management to a large business it becomes small again.

In relationship, it is the same. New, small and simple relationships are like small business. It is obvious what is necessary to make the relationship work. Lots of cuddles, kisses and sleepy time. But this is not the key to managing larger relationships (ones that last a long time).

Relationships that are small thrive on emotion, ambition, sexuality and happiness. Big relationships thrive on those things and much, much more. Do you know what those other things are? It is like asking a small business owner about the keys to making a larger business successful. Often they will say “more of the same” in other words “do what you do in small business more” but this is completely a disaster. Then, the only way to grow a business is to work harder, do more of what you did yesterday. And this is the opposite to the truth.

To make a small business bigger, you have to work less. To make a small relationship bigger you have to do less. The bigger something becomes the more efficient the time you spend in or working on it must be spent.

So here are a few clues to the difference between big business management and small business management. See if you can translate them to your relationship.

1/ Big business demands a bigger perspective of the business’s role in the market place.

2/ Big business needs more regular and automated monitoring

3/ Big business means less distractions, less emotion, more focus.

4/ Big business means visionary leadership

5/ Big business means more done in less time. (otherwise costs go up as production goes up)

6/ Big business means the delegation and sub contracting of repetitive tasks to experts.

7/ Big business means higher qualified people.

8/ Big business means more investment in systems to automate repetitive tasks

9/ Big business means more analysis before expenditure.

10/ Big business needs more level headed longer term planning.

Evolution of Industry How an Industry Changes Itself

Change is the only thing permanent goes the old cliché and one can’t make important decision in the business until and unless one get to know the nature and pace of change in the industry. Each industry has its own rate and way of evolving. While in technology Business models can become redundant in a quarter, old companies are using tried and trusted business models for over several decades.

The need to understand the change in market seems obvious but such knowledge not always easy to come by. Japanese companies failed to understand the advent of microprocessor as the dominant product and kept focusing on making the silicon chips cheaper. Small retailers failed to under the real impact of Wal-Mart moving into neighborhoods. With in a decade Wal-Mart changed the face of retailing in America running established players like K-Mart into bankruptcies.

To understand where your Industry is heading you have to shut the noise from immediate competitors and popular beliefs and take a long term view of things. The most pertinent question which most companies should ask is what business they are in. Because if you don’t know what business you are in then there are even lesser chances of understanding how it will change and evolve.

According to Professor Anita M. McGahan of Boston University’s School of Management there are four trajectories of change in an industry. These four trajectories are guided by two types of threat of obsolescence. First is threat to Industry’s Core activities – activities that historically generated profit for the industry. Second is the threat to industry’s assets like resources, knowledge and brand capital which made organization with in the industry unique.

Radical Change

Radical Transformation occurs when both the core activities and core assets are threatened by obsolescence.

Intermediating Change

Intermediate transformation occurs when buyers and suppliers have new options because they have gained unprecedented access to information.

Creative Change

In industries of creative change the customers and suppliers are generally stable but asset turnover is constant.

Progressive Change

Progressive change like creative change but the evolution is slow and gradual. Core resources tend to appreciate rather than depreciate over time.

Wednesday, September 27, 2006

How Not to Present Top 3 Presenting Don'ts

Yesterday I had the singular displeasure of sitting through a particularly bad presentation, so bad that I had to write this article as a form of catharsis (see: Aristotle). Without further ado, here are my Top 3 Presenting Don'ts:

Reading off a slide or other presentation materials - This might be my biggest pet peeve: When someone just stands there and reads directly off of what they are presenting. PowerPoint presentations are where you see this the most, as the offender in question will just sit there and read their slides word for word. What good does this do me? I could easily read the presentation on my own time and get the same thing out of it. The same goes true for just reading paragraphs from your notes. Even if you are giving a speech, you should be using notes. Bottom line: Don't use your materials as a crutch, use them as a tool.

Um...yeah...Um - Another problem I have is when the presenter is not a good public speaker. This may sound harsh, but it really grates on my nerves when every other word out of the presenter’s mouth is "Um". The biggest problem with this is that the flow of the presentation is interrupted every time one of these words slips out. If the flow of the presentation is constantly disturbed, the audience is going to get less out of the presentation. Another problem (at least in my eyes) is that these words make the presenter sound less professional and sure of themselves. It's much easier to get your point across if you are seen as an expert rather than the intern.

Looking at your feet - Last but not least, I hate it when a presenter constantly looks anywhere else besides their audience. This is awful practice and serves to keep the audience distant from the presentation as opposed to deep into the content. Eye contact really draws people in and makes them pay attention. If you don't maintain eye contact, you've probably lost half your audience right off the bat.

Models That Color Your Presentation

If you want to explain and discuss a complex (business) topic, an abstract model could help you in doing so. More complex than what we currently experience in Europe is hardly imaginable. In a situation that is so divers and complex to manage a model can express essentials without words...

In the article "Choose Your Favorite (Model): 1,2, 3, 4, 5, 6, 7, 8 or 9" you'll find different kind of models that are available for the presentation purposes.

The model André Sapir used is one of the number four (4) type. And it shows a simplified typology of countries about the distribution of Equity (Low versus High) and Efficiency (also Low versus High). It is used in the paper to stress a certain policy recommendations (for Europe) to face the globalization.

The advantage of using a model is that it clearly represents the issues you want to discuss. In the case of the Europe Model from Sapir, there are four types of country models (systems) within the European Union. And two types of models are said not to be "sustainable". That is a strong message.

Now if you represent a country you would like to know where they have placed you, in what box, do you fit in one of the "non-sustainable" boxes? Than, also hard to handle is when two neighboring countries like Spain and Portugal are not both -- as you would otherwise have imagined -- part of the same (Mediterranean) type. Portugal is selected to be Anglo-Saxon. This will generate a lot of discussions.

It is acceptable if all four boxes are equally challenging. In that case you could equally be proud to fit the category "handsome" or "gentle." But it would be less easy to accept when the categories are described as "Low" versus "High" (under the common denominator "efficiency" in this example).

Tuesday, September 26, 2006

Business Cashflow Auditing How Do You Manage And Plan The Cash Flows In Your Business

A client set me a puzzle the other day when he chose "Auditing my cash flows" as the goal for our session. He had just had a meeting with his accountant and was embarrassed to find he could not explain discrepancies between his incoming and outgoing monies. How could he stop the cash leakage and was it down to commercial folly or someone ripping him off? Here are some of the ideas we generated:

How do you accumulate evidence?

A standard audit principle is that "If it’s not recorded, it didn’t happen". So every time you buy or sell anything, you need to be given an invoice, bill, chit or receipt. If the cost is less than £10, write one for yourself - as a record of date, supplier and cash value. You can insist the suppliers deliver their goods with an Invoice.

BACS transfers, credit payments and debit cards automatically provide this sort of forensic evidence so you are well advised to stop paying or receiving cash and to channel everything through your plastic and electronic banking.

Who do you trust to act for you?

You can use the division of labour to create the controls and counter-checks that you need - so that the employee needing payment is not the person who signs the cheque, the storekeeper does not sign the issuance chit and the accountant does not tally the bank statements.

In a similar manner, apply reality checks to your sales activities:

* A bad sale or bad debt is a waste of your resources.
* If sales staff give discounts and credit periods that should reduce their commission and rewards. Then sales enthusiasm will be tempered by the risks they take with your money.
* Sales people should be rotated around the major accounts and sales regions before they become too cosy and forget how to see their prospects with fresh eyes.

When do you pay and when are you paid?

Timing your cash flows can be art but with a careful approach, you can make it a science:

* The Purchase ledger should lists all due payments and Payroll should predict your wage payment so you can plan your payments.
* The Sales ledger holds the details of sales and any credit given to debtors, their expected payments, the actual payments of cash you have received and the dates of each so you can plan your receipts.
* You should track the difference between your receipts (cash in) and payments (cash out) at least on a weekly basis – what you measure you can manage.

So my client took these ideas for careful management of his cashflows and has been applying them over the past three months. Already he feels he has a better grip on what is happening and how his accounting numbers are put together.

He is also much clearer about who he can trust and who he needs to watch in case they are bending the figures. I was interested to hear that "storage wastage" and "sales shrinkage" had reduced - and that alone paid for my invoice.

Business Plan Organisation Management How Do You Organise Your Business For Profit And Growth

Every company needs a sound and robust business model that scales as life changes. Many small businesses start with a business plan based on guesses.

Then as life rolls on, there is never time to update it to reflect your evolving situation. When your accountant nags you, you just feel bad. And your bank manager makes a new business plan a condition for any money discussions so you rush into guessing again.

As I coach my clients, I encourage them to create a simple, effective Business Plan that will earn them money as their business grows and their market changes.

Be succinct and clear

I encourage the owner to write their Business Plan in less than two sides of A4. In my experience with small businesses, briefer is better. The four sections should each have a couple of paragraphs to say:

* Why are we in business? – your purpose and intentions in running the business
* What do we sell? – your products, services and the combinations that customers want to buy
* Who do we sell to? – your clients’ demographics, locations, spending habits and interests
* How do we plan to run the business? – staff, structure, targets, management and a simple cashflow table (in an appendix) predicting the income and expenses for the next 12 months

Stay flexible and customer-centred

You need to consider the Scale, Scope and Structure of your business and align them with your long term Mission. Then you can include this detail in the right paragraphs of your Business Plan.

Your mission is simply "Why are you running the business?" State who your customers are, the needs you satisfy with products and services and your unique approach to your market. A strap line of 15 words is ideal.

Your scale describes your team – whether you employ them, associate with them or do sub-contracting. You might also show how the effort will flex as your sales levels change.

Your scope outlines the customers you want to work for and the key products and services you expect to sell to them. Where your market has a number of niches, each could be described individually.

Your structure defines how you sell to clients, the experience and skills needed for purchasing, production and delivery and how you manage your cash flow.

Being small, you are unlikely to have departments but you will have individuals following processes within a team. On the one hand, organising your firm will always be an exercise in frustration because the supply of your products and services rarely equals the customers' demands. On the other hand, small companies thrive by picking off market opportunities to which their bigger competitors cannot respond quickly:

* Time and market events overtake even the best organisation - so design flexibility into your business ready for when you need it.
* Unintended consequences grow with time – so keep watching for the unexpected. Set up triggers to flag possible issues, agree who monitors each flag and make the most interested person responsible for fixes.
* Make-buy decisions always trade-off costs against co-ordination – so monitor how the actions of your suppliers and associates effect your ‘internal’ costs of quality control, communication and re-work. Be prepared with a ‘plan B’ and re-take these make-buy decisions at least once a year to keep people on their toes.
* Understand the balance points in your business. But only re-organise once in three years – even small changes take several months to work through a business.

Monday, September 25, 2006

Your One Stop Online Auction Shop Save Time with Automation

If you list a few items "here and there" at online auctions, it only takes a few minutes to get your items up for sell. However, if you build an online auction business with hundreds of items for sale, you'll run out of time and energy fast. That's why automation is so important. Even if you find the perfect one stop online auction shop where you can sell all your items in one place, automation will still be necessary to keep the business going - and keep your sanity! Here are some great ways to automate your auction tasks.

Automate with Auction Software

There are software programs that are specially made for auctions. These programs will store all your listings in a database along with titles, descriptions, photos, pricing and shipping details. Some programs have a feature where you can save templates for certain categories. For example, if you sell household products, you might use the same template for all household items. Then, you might use a completely different template for your wholesale products. Therefore, you can save each template and have them available when you need them.

How it Works

A great benefit of using auction software is you can list more items in less amount of time. Here's how it works:

a) Type in your listings and accompanying details.
b) Upload photos or banners for your listings.
c) Submit the items to the auction site for listing.

It's that simple. Without this software, you will likely have to submit each item by hand through an online form with several screens. This could take several minutes or longer per listing. To get this software, check with your one stop online auction shop first. They might offer the software as a free tool. Use the search engines to search for "auction software" or "auction listing automation."

Automate Emails

Once items have been sold, you should have some email templates ready to go for "thank you" messages, up-sell messages, etc. Create several "thank you" emails for the types of products you offer, each being customized for those customers. Also, create several "special offer" emails to send buyers throughout the year. Some one stop online auction shops provide automated email systems for you. It's free and simple to set up a system like this, and the rewards are tremendous!

Automate the Shipping Process

Keep shipping supplies on-hand at all times. Prepare envelopes, boxes or bags ahead of time with labels, packaging materials, etc. Develop a system that you will use every time you receive an order so you won't get disorganized. Take advantage of shipping "tools" supplied by your one stop online auction shop or payment processing company. Some auction sites or payment processors will provide packing slips for every order with the customer's purchase details already printed for you.

Automate Listing and Ending Times

Schedule your items to end around the same time so you can easily manage them once the auctions end. If you schedule auctions to end on weekends, you can concentrate on shipping the items at the beginning of the week. Those who run auctions weekly usually go through a cycle of listing, ending and shipping around the same times every week.

Saving Time and Money

Automation will help you save time and money. You can list and manage more items through automation. Also, you'll have a better chance at getting repeat business by sending regular mailings or e-mails to buyers. The more money you can save the better bargains your customers will receive!

Starting Your Own Business, "Are You Ready?"

Starting a business is one thing, but making it profitable is another matter. We know that a successful business is the result of careful planning and understanding the basic concepts of business.

Your personality is the key concept of determining what kind of business you will get involved with. Obviously you must love children or you wouldn’t want to start your own daycare center.

For you to be profitable and successful you must love what you do.

There are 5 important traits to keep in mind when evaluating yourself. Remember the importance of these traits because they will allow you to become successful in your home daycare.

• Self-Motivation

• Patience

• Decisiveness

• Perseverance

• Drive

Self-Motivation is one of the most important criteria for successful entrepreneurs. This is what gets you going and then keeps you going.

Everyone, including myself, struggles with motivation especially when you work at home. It’s easy to get distracted and off track. Make sure you keep a list of things to do for the day and stick to it.

Wanting success is what makes the difference.

Visualize your daycare in your brain and realize that you are going to have to work for it. If you believe in your heart that you will be successful, then you will. Be patient and realize that you may need to wait for your business to make money and mature.

Self-motivation is also what helps you overcome the fears and doubts that you may have. D-O-U-B-T is a dirty word.

Realize that, D-O-U-B-T will destroy the business that you have dreamed about. Don’t stop believing in yourself! Turn off the negative tapes playing inside your brain.

We all have moments where we wish we could give up our businesses and get a job slinging hamburgers at McDonald’s. It would be a life of no responsibility. But, in reality, I would hate working for anyone else, and would especially despise the idea of making so little money.

Patience is my biggest hurtle I will admit to all of you. I want everything done yesterday and I want to see the reward right now.

I’ll admit it, I’m a part of the Pepsi Generation. I want it now – and make it cold too.

Sorry but in business it’s just not that way, so I’ve learned. Sometimes you feel like the roof is caving in and things just aren’t working out in your direction. Please remember the phrase, “this too shall pass”. There is also another saying, “most people pull out of business before it has time to mature”. So be sure to give yourself a chance and don’t blow it before it’s even begun.

Decisiveness is the concept of making decisions in a relatively quick and efficient manner. Some people have a big problem with this. I call it “you can’t think yourself out of a paper bag syndrome.” People with this affliction drive me crazy. You ask them a question and they say, “Well… (pause… pause…) I’m not really sure.”

Hello! The lights are on but no one is home.

In small business you need to make decisions pretty quickly. If a parent asks, can I bring my child to daycare if she’s running a temperature of 100 degrees? Your reply must be, “No, we wish to keep our daycare healthy and not spread illness.” Not, “Well…(pause… pause…) I’ll call you back later and let you know.”

When dealing with the public I unfortunately believe that people will sometimes try to get away with things. They want their way and will try to make you cave in.

In running a successful business, I believe that perseverance is 90% and education is 10%. Many millionaires believe that they are not any more intelligent than others. But what they do have is perseverance and tenacity. What is tenacity? No matter what happens they don’t lose sight of what they want and what their goals are. Remember, no one can take away what’s in your mind except for you.

Making your dream come true can be a lonely task at times and that’s where perseverance comes in. You need to keep moving forward and have that dream in the back of your head.

Don’t give up on your dream, don’t give up on yourself.

One way to persevere is to network with other business owners who have the same concerns as you. Become a part of a group where you can discuss your concerns.

You must be determined in your goals and you will succeed. By outlining your business you will achieve your goals. Make a point to do one thing each day that moves you closer to your goal. With that in mind it won’t seem so overwhelming to start your own daycare.