How Long Does it Take for a Business to be Successful?
One of the things I usually say to people is that their success will happen in the time it takes them to be successful. Most of us have a learning curve and as we embark on new ventures, we find somethings are easier than others. This is all part of our path to success. There are other variables as well. How effective is our marketing and advertising? Is our product or service ready to go? Is there a sufficient demand for the product or service we are offering?
In any business it is necessary to have a plan – a business plan. In this plan you will put to paper many of these variables and reduce some of the challenges to business by being proactive. If you cannot see your business becoming profitable on paper, then there is no way at all you can be profitable in real. This will save you time, effort and energy. For example: I was talking to someone about their idea and asked some specific questions about their plans.
- What was the expected price of their product?
- What was the initial raw cost per piece?
- How many of their product would be sold during the average month?
- How many hours in each average month were they planning on selling their product?
- How and where would they sell their product?
- How would they find their customers and how would their customers find them?
Interestingly enough this initial discussion stopped their entire business idea. The proposed product was going to be selling for less than $10 with a cost of almost $6 per piece. At a raw profit of $4 per piece they would have to sell hundreds every month to start to see some income. It just was not a practical or profitable business idea – even though the product would have benefited many people who might have purchased it. It just didn’t make economic sense.
Many network marketing – multi-level marketing companies have similar parameters. How many dollars worth of product per month have to be sold when your profit or commission from sales is 1-3% of the total (as many mlm’s are in the beginning) and often stop at 10%? If you have trouble with the math, imagine selling $10,000 of product in a month and making less than $1000. After all, you get paid on the portion of the sale your company considers cost – $10,000 in sales may carry less than half in GP or points. Your real success comes from the your organization, you will build and receive a percentage of their sales. In most of these you can expect to “take home” only about 10% of the volume of your entire team, so having a team volume grow each month is important to your survival as a network marketer.
The advent of many “start up free” opportunities has opened the door to millions of employee minded people. Seeing a chance to make money working from home has flooded cyberspace with thousands of people looking for the magic dust to their financial future, all without the basic understanding of sound business principles. I don’t know of anyone who ever made a “lifestyle” income without having the funds for a business. You cannot make something from nothing.
Where does all this leave us? If we are more aware of requirements and possibilities, then we are better able to achieve a successful result for ourselves. I advise everyone to look at any potential opportunity and ask (or answer) the six questions above. And I urge everyone to set goals – follow the SMART goal setting system (SMART Goals). Find a mentor – someone who has had the level of success you seek and is willing and able to assist you in “doing what they do and did” to achieve success.
In the end, fortune favors the bold, so be bold, take action and get results.