Archive for March 2015

How To Turn Information Into Money

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7 Pillars of Business Success – Part 3

We’ll begin todays’ article with a quote I came across during my recent trip to the UK –
 
“If you wanted to change the 20th Century – go to law school but if you want to be the one leading change, at the fore-front, of the 21st century – your century right now – go to business school – Casey Gerald (Harvard Business School MBA 2014).”
 
I believe in business; as a tool for change. Change in Nigeria, and indeed Africa. I believe the more enlightened and empowered entrepreneurs we have, the faster our chances as a nation at rapid development….this is musing for another article.
 
Since the release of Part 1 and Part 2 of this article, I have been trying to sit me down to write part 3. Finally got round to it today, and not sure if I want to write about cash flow, but I’ll try.
 
In part 1 and 2, we have identified product creation and processes as key points you should look into, if you really want to start, grow and build an enduring and profitable business – Online or offline
 
And now, it’s time to talk about Cash flow. Wikipedia defines Cash flow as the movement of money into or out of a business. It’s a simple and straight forward definition.
 
If more money moves “out” of your business than it moves “into” your business, you most likely are not running a profitable business.
 
Let me explain.
 
For example, if you make N1,000 daily selling information products on the internet, and you spend N3,000 daily on internet, transportation, eating and maybe renting of space at eateries to meet your clients one-on-one, then you can already see you have a N2,000 daily deficiency in your business.
 
Where is the N2,000 coming from? Loans and borrowed money from friends and neighbors? How to do intend to pay back? How do you intend to increase your N1,000 daily sales to N3,000 so that at least you can break even and pay back all your debts?
 
Or how do you plan to increase your N1,000 daily sales to N5,000 daily sales so that you can have N2,000 profit at the end of your business every day?
 
You need to answer that question of “what to do to generate enough sales PER DAY to take care of your business expenses” so you can at least break even to stay afloat or better still “break profit” and move on to impacting more lives.
 
So how exactly do you increase your cash flow in business?
 
Cash flow is increased by a number of ways including:
 
(1) Selling more of your goods or services, either online, offline or both-lines
 
(2) Reducing your business running costs e.g get a better internet connection that cost less, get better and cheaper seminar halls for your seminars, source for your import products from inter-lands instead of China city outlets and middle-men websites that make it impossible to make profit especially with the rising cost of dollar
 
(3) Increasing the selling price of your goods or services by creating more perceived value
 
As an entrepreneur, it does not matter if your business is online or offline, you need to pay attention to how cash flows into and out of your business. What “processes” or “systems” have you put in place to ensure consistent cash flow to take care of the running of your business, i.e. recurrent expenditures?
 
Remember we are talking about “7 Pillars of Business Success”; we’ll talk about one more final pillar in our next article – keep a date next week Monday.
 
Don’t forget: I’d really like to get to know you; my readers, it may be impossible to meet every body, on a one-on-one basis, but at least you can introduce your-self here below,
1.     Your real Name
2.     What you do
3.     How did you find businessforts
4.     Why do you read our emails or articles
5.     Has any of our products (ebooks, CDs, Seminars) helped you in the past? If yes, how?
6.     How can we be of service to you and your business goals this year?
 
There is a surprise down-loadable FREE gift worth $97 for everyone who submits genuine and well thought out answers to the above questions.
 
If you have not already done so in Part 1 of this articleSimply copy the questions, paste them in the comment box below and type in your answers
 
Part 4 will be the final part of this article and will be published with my upcoming book:
da-ecover4
See you in part 4.