How to Run a Business on a Shoestring Budget

How to Run a Business on a Shoestring Budget

Running your business on a tight budget is not only possible, but extremely beneficial, even when times are good. You don’t even need a degree in business or finance to create and stick to a budget; all you need is common sense, organizational and planning skills, and motivation. Read on for some ways to operate your business on a shoestring budget.

Understand your cash flow. Cash flow, in its simplest terms, is the movement of money in and out of your business. It is of utmost importance that you know where every penny you spend goes, and where every penny you earn comes from. This may seem easy, especially if you’re the only employee, but unless you document carefully and review your cash flow frequently, you may find that too much money is being spent that does not contribute to your bottom line. If you need to tighten your belt, so to speak, it may be necessary to cut back on expenses that are not directly related to income. For example, that shiny new business card certainly looks nicer coming out of your pocket to hand to a prospect, but is the higher cost going to directly result in a sale? These are questions you need to ask yourself when creating and/or revisiting your budget.
Stick to your budget. This may seem obvious, but it isn’t difficult to underestimate your expenses and overestimate your income. When budgeting, be conservative. Before making any kind of purchase, ask yourself why you need it and how it will bring in money. Sticking to your budget and reviewing it often will help prevent cost overruns before they happen. Tip: Categorize each expense according to a pre-determined system that works for your particular situation. This will make it much easier to sort your expenditures and decide which ones contributed to your income and which did not.
Push sales. Starting and running on a shoestring budget means you lack capital and that’s not the ideal. To overcome the lack of capital you must be willing to quickly generate sales. You must clearly identify your target market and have prospects ready to buy. Make sure your marketing materials reach those who need your products/services and your sales presentation is effectively closing sales. For free marketing resources, visit the Small Business Administration website.
Establish a network. You will need to quickly establish a large targeted network of prospects that are ready to buy, a network of influencers that will help spread the word about your business, and a group of people who’ll support your vision. Having a large network of people is the key to running a business on a shoestring budget. The more people you and your business are connected with, the more sales you will have. This will allow your business to get established, maintain stability and create the foundation to a successful long term business.

If you do go this route you will need strong planning, organization, networking skills, and a commitment to push for sales to quickly generate income to establish your business. Operating on a shoestring budget is definitely achievable as long as you’re willing to put in the work. How do you run your business on a budget? Please share your ideas below!

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7 Steps to Create a Winning Mindset

7 Steps to Create a Winning Mindset

In life and in business there are many unforeseen obstacles. Some of these obstacles can trip us up and cause us to fall flat on our faces.

How do you get back up? How do you make the pain of falling on your face go away? How do you keep going?

If you have a winning mindset you can overcome these obstacles and use them to motivate yourself to push forward and succeed. Here’s an outline to create your winning mindset.

Define your WHY. List three top reasons that you want to succeed. The first reason should be personal and for yourself, the second reason can be based on loved ones and the third reason could be for anything important to you.
Make a plan. The plan should include short, medium and long term goals. Then include the how, when, where, who and what.
Accountability. Share your plan with a friend or family member that is willing to cheer you on and be honest with you. Even better, get a small group of supportive, positive people who will hold you responsible and keep you on your plan.
Make a daily routine and schedule. A winning mindset is built on momentum. Checking off each thing on your to-do list daily will help you see progress and give you motivation to continue.
Use visualizations. See yourself and your goals as a campfire. Like a fire you need to keep adjusting it, adding wood to keep the fire going and make it big. Every step makes the fire bigger and sometimes a misstep or problem may diminish your flames. That means you need to adjust quickly and keep the fire going.
Make a plan for when you fall. Like with any injury you will need time to heal, to evaluate what happened and maybe some physical therapy to get back to full strength. Have a system in place that you’re comfortable with to help you evaluate and learn from your mistakes. You could keep a journal, take a walk or draw a map. See mistakes as detours that help get you where you want to go more quickly.
Perspective. Goals are destinations and mistakes/missteps are detours. You will get lost from time to time and sometimes you’ll speed ahead. That’s the nature of a journey. It doesn’t matter how you get there, as long as you get there. Having patience will give you the long-burning fuel you need to reach your destination.

Creating a winning mindset is like being a great baker: it’s part science, part self-confidence and part ingenuity. The science is in the plans you make, the confidence is in the belief in yourself, visualizations and your perspective, and the ingenuity is in finding ways to get things done.

Did we leave anything out? What else would you include in a winner mindset? Please share with us in the comments section below!

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Simple Ways to Add Value to Your Business

In this economy, it has become the norm for consumers to seek out products and services that will bring them the most bang for their buck. In other words, everyone is looking for the best value. Even an everyday trip to the grocery store involves a search for the best value; why buy three individually packaged rolls of paper towels for $3.00 each when you can get a 6-pack of the same kind for $14.99? As a small business owner, it is important to add value to your own products and services, so your customers are assured that they are making the best decision by patronizing your business.

Problem: A higher-priced product is perceived as too expensive and rarely sells.

Solution: Highlight the versatility of the product, and educate customers on its many uses, some of which they may be unaware. For example, a cashmere blend sweater wrap in your company’s catalogue is one of the priciest products at $79. Most of the customers who see it and try it on absolutely love it, but don’t want to spend so much on one article of clothing. Add value to the product by highlighting its ability to be worn on its own, as a wrap over a dress or blouse, tied in front or in back, etc. You may also point out that because of the high-end fabric, it will last many years and serve as a staple in one’s closet. Once all of that is considered, the price does not seem so high.

Problem: Most people don’t patronize small businesses because they don’t think they can offer the same conveniences as big box stores.

Solution: Emphasize your excellent customer service and throw in conveniences when possible. For example, if someone wants to make an exchange or purchase an add-on to one of your products, offer personal delivery so the person doesn’t have to make the extra trip. Take it one step further by making a follow-up call a few days later to make sure the customer is completely satisfied. Most people are willing to pay a bit more for top-quality service and convenience. The ability you have to be more personal with your customers is something you should take full advantage of when marketing your business.

Problem: Customers seem skeptical about making the purchase.

Solution: Offer a test drive of your product or service. This is an effective way to demonstrate your confidence in your business as well as an opportunity for you to showcase what you have to offer. One local masseuse who works out of her home offers three-minute “mini-massages” for just $3, but it becomes free when the client decides to either stay or book a future 30-minute or longer session. This strategy allows potential customers to literally try out her service completely risk-free, which works especially well for this kind of business since you can’t “return” a massage if you’re not happy with the results.

Adding value to your business doesn’t have to cost you any money. With a bit more time and effort, you could find yourself an increased customer base that is spreading the good word about your products and services to family and friends. How do you add value to your business? Please share your ideas below!

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How to Choose Social Media Tools for Your Business

How to Choose Social Media Tools for Your Business

When you begin to consider using social media marketing for your business, the choices can seem overwhelming. There are so many social networks out there, and will the time needed to do all of them really pay off in the long run? How do you choose what makes sense for your business?

Here’s a process you can use to help you decide and then use what you choose effectively:

Write down your goals for social media marketing: Are you seeking new customers, or looking to grow your mailing list? Are you interested in finding people that are interested in a business opportunity? By taking some time to consider your goals, your subsequent actions will be a lot more focused.
Define your target market: You must understand who you want to reach if you’re going to find them online. So spend some time narrowly defining your target market…their ages, education, income level, interests, etc. Then you can go and find them!
Figure out where your target market spends time online: Once you know who you want to reach, then do some research to find out where that target market spends time online. Facebook is a great place to find consumers, but if you’re looking for people interested in a business opportunity you may do better on LinkedIn. If you want to reach a more niche audience, perhaps the people you want to reach are on a more specialized network like fashionspace.com or wahm.com. Don’t just assume that the “biggies” are best for your business. Take the time to do the research so you know which network will help you reach the people you are looking for.
Decide how much time you can devote daily: This is also very important. If you’re a solopreneur, you’ve got a lot to do already, and adding the maintenance of dozens of social networks to your plate means that you won’t do anything well. Instead, narrow your focus to one or two social networks based on the daily amount of time you can invest. Remember, doing one social network well is better than spreading yourself too thin and leaving no impression on people at all.
Learn the social network before jumping in: Once you’ve got a short list of social networks that would work for your business, spend some time researching them. Talk to other business owners that have used them, and ask about their results and best practices. Read the terms of service of the network so you’re clear on what you can and cannot do as a business on the social network. And take some time to observe how others use the network at a personal level. If most people use the social network personally, you want to be sure your understand the norms and cadence of the interactions there, so you don’t come in like a bull in a china shop, alienating the very people you want to reach.
Commit daily: Once you establish your presence on the social network, realize it’s a daily commitment. Especially in the beginning as you’re building your momentum, it’s absolutely critical that you spend time every single day connecting with the people on your social network. Share great content, talk to people, answer questions. It’s the giving of yourself each day that builds the engagement that leads to new business.
Add your social networks to your offline marketing: Now that you’ve got an online presence, be sure to add it to your offline interactions. Add the URL of your social presence to your business cards and signage. Invite every customer to connect with you online. Let your in-person business contacts know about special “online only” offers that you provide online to encourage them to join you there. The beauty of the online presence is that you can connect with people a lot more regularly than just waiting to connect in person. Be sure every person you work with is invited to join you online.
Measure! This is perhaps the most important part of social media, and the one most often neglected by business owners. It’s not enough to set up your online presence and “feel” that things are going well. You must measure. The ultimate goal of any social presence is to convert contacts on your social networks to people that help you meet the goals you outlined in the first bullet of this article. So if you’re looking to build your mailing list, be sure you’ve got a way for people to sign up to do that, and call it out regularly on your social networks. Then measure how many people come to your sign up form, and how many get to the success page after filling it out. How many do you lose? If too many people are abandoning your form before completion, maybe you need to change your form. If your goal is to get more customers, then you should be measuring how many people are coming from your social network to your shopping page (or into your store…are you asking how they heard about you?), and then how many actually make a purchase after visiting. Google Analytics will give you a lot of this information. Make sure you’ve got it installed on your website, and are looking at the data regularly.

It’s not enough to just jump on Facebook because everyone else seems to be doing it. A measured, thoughtful approach to your selection of social media tools, and then measuring the results of your actions, will bring you much closer to your goals.

What social tools do you use? Why did you choose them? How are they working for you? Would love to read your thoughts in the comments.

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CEO Spotlight: Dave Wentz, USANA Health Sciences, Inc.

CEO Spotlight: Dave Wentz, USANA Health Sciences, Inc.

From the DSEF: We’re excited to introduce a new blog series today! We’d like to introduce you to the top executives of some DSEF-supporter direct selling companies. Every few weeks we’ll introduce you to another CEO, and they’ll share their thoughts on Direct Sales, Ethics, Social Good, and why they support the DSEF.

Today we’re thrilled to kick off this series with Dave Wentz, the CEO of USANA Health Sciences, Inc. USANA has been a big supporter of the DSEF for many years, and we’re thrilled to have Dave Wentz share his thoughts with you today. Enjoy!

CEO Spotlight: Dave Wentz, USANA Health Sciences, Inc.

I have the pleasure of serving as the CEO of USANA Health Sciences, Inc. My father, Dr. Myron Wentz, founded USANA in 1992 after years of developing diagnostic tests for infectious diseases at his laboratory, Gull Laboratories. I helped create USANA in the summer of 1992, prior to the formal opening of the company, helping to develop the company “look,” establishing product formulas, and preparing USANA for an impressive and strong debut. Because I’ve been involved with USANA from the very beginning, I’ve had the incredible opportunity to serve in many capacities, including vice president of strategic development, senior vice president, executive vice president, and president.

What did you do before you got involved with your company?

USANA has been, and will always be, an incredibly important and all-encompassing passion of mine. Before USANA, I earned a bachelor’s degree in bioengineering from the University of California San Diego. I feel very lucky to have been able to help form USANA from its very early stages into the half a billion dollar global company it is today.

What do you love about your company?

What really stands out for me is the integrity of the products and the integrity of the people, both our employees and our incredible Associates worldwide, that are all part of USANA. Without the high standards we place on ourselves, in terms of both product quality and the way in which we conduct business, we couldn’t be as successful as we are. I also love our continual innovations. Our scientists and our scientific partnerships elevate our products and the science behind them to a whole new level. I love this aspect of our business, and it truly distinguishes us from others in the market.

What makes your sales force amazing?

I am continually in awe of our home-based business owners. The work they do every day to share USANA’s message of true health and true wealth with friends, family, and everyone they meet is inspiring. The best part for me is that working together with our Associates, USANA has the ability to change other people’s lives for the better. USANA Associates truly care for one another, and they also care about people they’ve never met. They do this work because they believe in the message, and they believe in the products. Seeing them in action gives me even more motivation to continue to make USANA a better company. We really are a family.

Ethics is an integral part of DSA membership. How do you ensure your company maintains the highest level of ethics?

On a company level, USANA holds its employees to a very high standard of integrity. We have systems in place that allow for employees to report incidences of misconduct anonymously, so they can be honest without any fear of being reprimanded or creating any type of backlash from managers or others who may be involved. Our compliance and regulatory departments make sure that everything we say in any of our publications, videos, and even on stage is both factual and within all lawful regulations. As for our Associates, we hold them to high standards as well. We regularly inform our Associates regarding what they can and cannot say about our products and how they can lawfully run their businesses. Any Associate found to be acting outside the rules may be subject to a business termination.

Social good is another essential element of direct sales. What kind of social good campaigns does your company participate in or run?

USANA and Children’s Hunger Fund have a long-standing partnership that has led to more than $12 million in monetary donations and Usanimals (Children’s Vitamin) donations to those in need. All proceeds from The Healthy Home, the best-selling book my father and I wrote, went to Children’s Hunger Fund as well.

This year, we decided to expand this partnership and our giving in general by establishing the USANA True Health Foundation. This foundation will continue to support Children’s Hunger Fund while also collecting funds to help meet immediate needs, such as those created from natural disasters. Additionally, the foundation will support organizations like HealthCorps, which provides much needed health information and education to young people.

Every year at our International Convention in Salt Lake City, Utah, we have several fundraising activities throughout the four-day event. We have a 5K run/walk, and also raise money during USANAfest, a party with entertainment, food, and games. This year, the funds will go to support the USANA True Health Foundation.

Your company is a Direct Selling Education Foundation supporter. Why do you think the DSEF is important?

When my father decided to start USANA Health Sciences, we had so many options on how we could sell our products. We very well could have sold our products to stores. We could have gone the conventional route. But we believe the direct selling model has the distinct ability to benefit more people in more ways than simply selling a commodity to consumers. There are countless success stories in USANA, with Associates taking initiative in their own lives and, in the process, creating lives they could only dream of in the nine-to-five world. People need to know that direct selling can change your life, not only through financial freedom, but through time freedom; personal development; the joys of family and friends and teamwork; and most of all, creating a meaningful life with intention and purpose. By supporting the DSEF, we support spreading the message that direct selling can positively impact people and communities.

Thank you, Dave, for sharing your inspiring story with us. We are grateful for the support of companies like USANA, that help us to spread the message of ethics, entrepreneurship and integrity around the world. We appreciate you!

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How to Use LinkedIn for Your Small Business

How to Use LinkedIn for Your Small Business

Raise your hand if you have a LinkedIn account.

Now raise your hand if you haven’t used it since you set it up!

If you’re like many business owners, you set up your LinkedIn account a while ago, but other than serving as an online resume you have no idea what to do with it. But now is the time to change that, because there are many features within LinkedIn that can help you market your small business.

LinkedIn is primarily a networking tool. It is excellent for helping you connect with other professionals with whom you might be able to do business. Whether that’s an employer/employee relationship, a joint venture, or someone that joins your direct sales team, you can find motivated, competent people to connect with for your business when you use LinkedIn effectively.

Here are some ways to take better advantage of your LinkedIn account:

Your Profile: Be sure that your LinkedIn profile is complete, and lists all of your experience. Why? Because when people are searching for other people to connect with professionally, they will find you based on the keywords you use in your profile. It’s also a way to highlight your professional experience when people come to check you out. The more experience you have, the more likely it is that someone will choose to work with you.
Recommendations: Think about Amazon.com for a moment. Why do you think they include a place for people to leave comments about products? It’s because we’re more likely to believe what other people say about something than what a manufacturer says about its own product. The same holds true for you! When your LinkedIn profile is full of recommendations about how great you are…how committed you are to the professional development of your team…how amazing it is to work with you…people are more likely to believe it! It’s the difference between the resume, and glowing recommendations. Make sure you ask lots of the people that have worked with you to give you recommendations on LinkedIn. It’s an online way to make sure everyone knows how committed you are to the work you do.
Groups: LinkedIn also offers Groups, which are an outstanding way to network with others around certain topics, and demonstrate your expertise. Simply search for Groups related to what you do. There are many groups set up for direct sales, product lines, professions, etc. Once you join a group, participate in the conversation, share useful resources, answer questions, and get to know people. As you share great content, people will check out your profile to see who you are (which is why it needs to be complete!) And you can also spark offline conversations with people that may lead to additional business relationships.
Answers: Another way to demonstrate your professional expertise on LinkedIn is through LinkedIn Answers. You can find Answers under the “More” section of the LinkedIn top toolbar. Simply browse through the question categories to find questions related to your expertise. Then provide answers to those questions that you can. The more questions you answer, the more you demonstrate your expertise to LinkedIn users, which can lead to future business.

Now all of this, of course, takes time. And you must determine that the target market you want to reach is on LinkedIn. But if LinkedIn’s user base is in line with your goals for social media, making good use of the tools available can help you network professionally and build more opportunities for your business.

Do you use LinkedIn for your business? Does it provide you with additional business opportunities? Would love to read your thoughts on this tool in the comments below.

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These People Are…Incredible – Guest Post by Joe Mariano, DSA President

These People Are…Incredible – Guest Post by Joe Mariano, DSA President

From The DSEF: Today we’re delighted to bring you a guest post by Direct Selling Association President Joe Mariano. Joe and his team at the DSA work tirelessly to protect, serve and promote the effectiveness of member companies and the independent business people they represent. The DSA also works to ensure that the marketing by member companies of products and/or the direct sales opportunity is conducted with the highest level of business ethics and service to consumers.

“These people are … incredible.”

That’s what one direct selling CEO recently emailed me during her conference. I know exactly what she meant. After 26 years working at the Association, I’ve seen more than just a few company meetings. Each company brings its own unique style and expertise to its get-togethers, but they all have one thing in common: the passion, enthusiasm and love that the salesforce brings to our business. There is nothing more exciting, invigorating and gratifying than to get out into the field and see this reflected in the eyes and voices of our salespeople.

In recent weeks, I’ve had the opportunity to speak to thousands of company salespeople, from Philadelphia to Columbus to San Francisco. They are hungry for the messages that DSA, DSEF and our World Federation are uniquely suited to bring—the spirit of the industry, credible industry statistics and information, identification of our opportunities and challenges, a validation of what they do, a report on the government regulations that may affect them, and finally—a sense of being part of something truly phenomenal. Something larger than just a kitchen table crowded with receipts and paperwork, larger than their neighborhood party, larger than the sales organization they are working so diligently to build. Larger even than their great companies. They are part of a remarkable industry that is changing lives and helping people across the country and across the globe. A true phenomenon, 100 years and more in the making, that is offering an income opportunity to struggling people, that is changing communities, that is making unparalleled charitable contributions, that is capable of changing lives.

When we talk at these meetings of some of the 16 million people in the U.S. and more than 70 million across the globe, heads nod and notes are scribbled. When we tell the story of the direct selling representative floating down the Amazon River to sell her goods, or someone embracing entrepreneurship in China with the economic opportunity that direct selling provides, a collective “Ah” rises from the audience. When we describe the single mom who found her calling and herself in direct selling, a smile spreads across the listeners’ faces. Each of these sellers knows this story. Each of these sellers has seen this story reflected in his or her own life, and the lives of the people they have touched through their direct selling activities.

And when the remarks are done, the audience cheers. They cheer for themselves and everything they know they have accomplished and will accomplish. Each of you has probably seen this played out in some way at your own company events. I truly wish each of you could join me at all of these company meetings so you can see you are part of something even beyond your own great company. That you, as part of this great industry, are changing lives. That you are part of a community coming together through DSA. That all of these people are … incredible.

Joe Mariano is President of the Direct Selling Association. He also serves as Vice Chairman on the Direct Selling Education Foundation Board of Directors, and Chairman of the World Federation of Selling Associations (WFDSA) Global Regulatory Affairs Committee.