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Issue 6 February 10, 2009

 
February 10, 2009

Cartoon

Did you watch President Obama's speech last night?  If not, let me give you the short version - our government wants to spend $1 Trillion of our tax money to "jump start" the economy.  I'm not buying it - more spending is simply not the answer.  That is how we got into this mess in the first place.  And other than a few different faces at the top of the org chart, the cast of characters remains largely the same!
 
No, I've got a better idea - one I think you are going to like.  The creation of sustainable small business is the answer.  Let's take a look....shall we?
 
 
 
 $1.4 Billion...and Bankrupt.  Lessons??
               
 
 
Unless you have had your head buried in the sand, you probably know that Circuit City is toast.  How did that happen?  How did a company with $1.4B in 2007 online sales (not counting retail) go belly up?  More importantly, what can small business learn from their massive failure?
 
First, we can remind ourselves that service matters - and that we must continue to provide top notch service to our customers & clients every day.  Unfortunately, Circuit City forgot this golden rule years ago as they kept too close of an eye on the bottom line.
 
Second, if you have employees, treat them well.  Circuit City had some of the best commissioned sales people in the business.  However, they made the "brilliant" move in 2003 to cut all commissions - seems that these folks were "costing" them too much money.  So they laid off their 3900 best salespeople.  The rest of the top performers soon left once the opportunity for commissions was gone.  Then in 2007, they again laid off 3400 of their highest paid sales force.  Pure and simple.....stupid.  As my daddy always said, "Dance with the one that brung you!"
 
Third, you must continue to provide value.  If you've read this newsletter (or my blog) for any time, you know that I believe value creation is the crown jewel of small business success.  The marketplace is an impartial beast and does not discriminate.  If you are not making the money you would like to make, you are simply not providing enough value to your marketplace.  If you can latch on to this single concept and take 100% responsibility for the  implementation and execution or your value, you will be successful.  As a matter of fact, you will find that you virtually eliminate the competition.
 
Fourth, the faltering economy is not to blame for your poor sales - it simply exposed weaknesses that have been there all along.  In good times, anyone can prosper.  In the mid to late 90's there were many companies raking in unforeseen levels of revenue - all funded by blind venture capitalist.  I witnessed so-called salesman that could not sell a life jacket to a drowning man manage to make six figure incomes....all because times were good.  You see, when heat or pressure is applied to any material, the weaknesses are then exposed.  The same is happening to many small businesses today.
 
So join me in taking the contrarian road to small business success.  Learn from the failure of others.  Your customers, employees, and pocketbook will all thank you!
 
 
 
 Why Small Business Must Survive!
               
 
So why must small business survive?  After all, isn't it the mega corporations that are responsible for all of the jobs and money flow in our society?  What's the big deal with small business?
 
Let's take a look at a few facts that might astonish you.
 
                         SMALL BUSINESS:
  • Represents 99.7% of all employer firms.
  • Employ about half of all private sector employees.
  • Pay nearly 45% of the total U.S. private payroll.
  • Have generated 60-80% of net new jobs annually over the last decade.
  • Create more than half of non-farm GDP (Gross Domestic Product).
  • Are 52% homebased.
  • Produce 13 times more patents per employee than large patenting firms.
  • Make up 97.3% of all identified exporters and produced 28.9% of the known export value in FY 2006.

As you can see, small business truly is the lifeblood of our economy.  So exactly how many small businesses are there?

 In 2007 there were 27.2 million U.S. businesses (large and small).  The number of solopreneurs (no employees) is on the rise.  In 2000, there were approximately 16 million nonemployer firms and that number has risen to approximately 21 million in 2007.
 
It is plain to see that, while big business makes the front page headlines - and gets the bailouts - the true industry that drives the economy is small business.
 
Do you currently own a business?  Thinking of starting a new business?  There has never been a better time to start a small business.  Many direct sales companies (such as Mary Kay) are experiencing major growth as "traditional employees" are jumping ship for a brighter future.

But what about the economy?  Yes, it's tough but that simply provides greater opportunities for you to shine.  Don't get me wrong, you can't just hang out a shingle and expect business to be delivered to you on a silver platter.  But if you can "deliver the goods", the time has never been better.
 
 
 
 

Thinking About Starting A Business?

Are you having trouble with your recipe for success?  Do you have a dream but are unsure of how to get started?
 
What would starting your very own profitable business mean to you?  How about to your family?
 
If you've ever dreamed of starting a business, you owe it to yourself to stop dreaming and take action now! 
 
If you would like a 
complimentary strategy session to explore the possibilities, then click on the question mark below to find out more!
 
                      QUestion Mark 
 
 
 
 
 
 
Issue: 6
In This Issue
$1.4 Billion and Bankrupt - Lessons?
Why Small Business Must Survive!
Thinking About Starting A Business?
GOALS - Radio Interview
Case Studies Needed
 
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GOALS!
Everything You Know About Goals and Goal Setting is...
WRONG!
 
 
Click on the ticket above and listen to me being interviewed by radio host Lynn Jacobs.
 
(free gift inside) 

 
 

 
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Case Studies Needed!!!


We are in need of 5 individuals or small businesses that would like to be a "Featured Case Study" within Born To Win.
 
Only those that are serious about success need to apply.   
 
Files
 
 
 Click on the picture above and enter the requested information to be considered.
 
Someone from our office will contact you immediately.
 
 
 
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Mike Estes
Born To Win
615-567-6815
 
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