“Income, Profit, Equity.” February 2008
The New Small Business Model
In this time of financial uncertainty, the predictable chorus of business opportunity pitches is accelerating. We are facing a challenging scenario as people begin to wonder how secure their jobs are, how long their paychecks will last and if their benefits will continue. Just like past decades, when the economy is questionable, people frequently pursue part time small business efforts. Sometimes they begin by working from home with a goal to replace their full time income or at least to supplement their spouse’s paycheck.
Here’s the real question. How often do those part time business opportunities produce real results that translate into long term income, profit and equity?
Rarely.
Unfortunately, what often happens is a temporary increase in enthusiasm followed by a large expenditure of cash or credit to buy inventory or a ’system’ followed by failure, pain and bewilderment.
Does it mean the business opportunity is bad or deceptive? Not necessarily. However, in my experience, many well intentioned business opportunity marketers whet the appetite with upside potential, but frequently don’t explain to prospective small business owners how to manage expectations.
The old adage — if it sounds too good to be true, it usually is — still holds true.
The key to successful business opportunities in this fast-paced, global market is to have a clear understanding of the business model and to know precisely what you need to do. You must have a product or service that has value in the marketplace. You must have a solid strategy to generate prospects and purchasers for the goods. You must be able to effectively fulfill your promise to the customer… and do it all while generating a profit.
Yet, the numbers for failed small businesses are still as high as they’ve ever been. One big reason — easy access to credit — has masked the need to understand the fundamentals listed above. Fundamentals are fundamentals for a reason.
Another major reason for solo-entrepreneurial failure is because there is a lot to learn about internet marketing, which is often pitched as a simple, easy way to create cash while you sleep. This can be a fantastic channel to test marketing ideas and create high margin digital products, but there is much more to a business than simply internet marketing.
The best long-term strategy to create small business success in this web based economy is to use a new model. The new small business model should focus on your strengths — skills that are aligned with your innermost passion. Couple your strengths with proven strategies that produce results and leverage your time. Wrap your strengths and strategies in a synergistic environment so you can serve others while collaborating with those who can assist you.
The days of flying solo and succeeding with a high degree of probability are over.
The new small business model must help you focus on your strengths, use proven strategies, and support you with team synergy!
Cheers,
Steve
Steve Olds
Founder and CEO
www.STRATWORX.com