Small Business is Under Attack!

Small business, despite being the backbone of our economy, is under attack. It’s under attack through excess regulation.

 

 

 

 

 

It’s under attack through over taxation.

 

 

 

 

 

It’s under attack by minimum wage threats, it’s under attack by health care, it’s under attack by big business and it’s under attack by consumers.

 

 

 

 

 

 

It’s hard to comprehend the attacks small businesses face when in reality they represent 99% of employer firms, employ over half of all private sector employees and account for 40% of U.S. private sector payrolls. Small businesses and entrepreneurs have long been the backbone of the American economy contributing an estimated 46% of GDP.

 

Regardless, Washington DC and many state legislatures (e.g. California), continue to promote policies that favor big business over entrepreneurship. In addition, small business is often totally ignored and we end up with policies that have no benefit to, and frequently harm, the real needs of America’s backbone.

 

So what is a small business owner to do to fend off these attacks?  It’s my contention that there’s little to be done to fend off these attacks and instead small business owners should focus on protecting profits.

 

Let’s face it if, as a business owner, you had infinite revenue would the tax rate and costs from increased regulation really matter? The minimum wage could be $100/hour if you had enough gross profit to cover it! If you delivered unbeatable value and customer satisfaction compared to big business would you really be under consumer price pressure? The answer to these questions is “No.”

 


So instead of complaining, running scared or riding the cash flow roller coaster  (80% of small businesses ride that roller coaster and it is responsible for the vast majority of business failures) let’s dream about a different solution.

 

What if your business had all the leads it could possibly handle which generated more revenue than you ever imagined? And what if all that caused your business to be so profitable you no longer worried about the threats and attacks because it still made more money? Would that create a more valuable business that was more enjoyable to run and own?

 

 

 

 

 

 

Well that is exactly what successful business owners have done. Many have even turned, or sold, their small business into a medium or, in some cases, big business. Either way their immediate threats have been neutralized and their ultimate retirement or exit strategy has been solidified. So for those owners it is no longer a dream, it became a realistic solution.

 

What does it take to turn this dream into reality – is it only for unique businesses, is it only for sophisticated owners with special knowledge, or is it only for already super-successful enterprises? Again, the answer is “No” on all counts. Research shows that it can be accomplished by the owner of any business who sets out with the end in mind while equipped with determination, proven strategies and an informed support system.

 


 

So rather than spending this and future years feeling threatened or overwhelmed by external forces, protect against attack and fight back by focusing on the things you can control.

 

If you would like to learn more about these threats and solutions contact the author directly by sending an email to: graham@Grahamsthe1ForBusiness.com

Small Often Leads To BIG!

 

SMALL OFTEN LEADS TO BIG!

By Graham Skinner

Master-Mind Alliance® – Chico, CA

 


Minor changes can have a major effect. The thought of growing a business is daunting for many an owner of a small business. Sadly, this can stand in the way of true prosperity. The reality is that growth can come much more easily than would ever have been thought possible – just by making small, easy to manage changes.

 

It’s said that the flapping of a butterfly’s wing in Brazil caused a major event (a tornado) in Texas some years ago. While the veracity of that actual event is open to interpretation, it is a fact that that minor mathematical changes have huge effects in Quantum Physics. Well guess what, the same is true, and demonstrable, in analyzing the financial statements of businesses.

 

For instance small increases of, say, 5% in several key metrics such as gross revenues and gross profit margin in conjunction with corresponding reductions in some expenses can yield over 25% additional net income in most businesses. 25% in additional net income (i.e. CASHFLOW) with a relatively minor increase in gross revenue! Obviously results will be different in each business, however the concept remains the same – small, easily implementable changes lead to more cash flow.

 

In fact we have seen multiple situations wherein net income doubled by implementing strategies to make changes of just 10% across the key functions of leads, conversions, transactions, prices and profits. Imagine what happens when you really focus and increase one of those areas by 50% – the numbers become exponentially fantastic. This is how you can take a 6 figure business to a 7 figure business in one year.

 

So, look at those reports your accountant or your accounting program produce for you. Figure out what YOUR metrics are and how you might improve them just a little bit (or a big bit if you’re ready). If you have no accountant or accounting program, get one – used properly, they pay for themselves quickly.

 

If you would like ideas on how to interpret your numbers and implement manageable change then contact us. We’ve been there, we’ve done that and we’ve paid for ourselves many times over.