Once we become a Mum, something inside changes (apart from the loss of muscle tone!) that makes us re-think where we want to be and how we can still contribute to the household income whilst still being Mum, Wife and House-keeper.
Many of us trek down the road of a home based business. Why not sell a product from the comfort of your own home, around the kids and contribute to the bills as well. Sounds great in theory, but sometimes, not even practice makes perfect.
Did you know the scary fact that nearly half of all owner-operated businesses in Australia fail within the first 3 years – Bureau of Statistics.
So, how do you go from Business Failure to Business Success?
We drill down to the nitty-gritty in this 2 part guide that will change your mindset on business as a whole and how you can avoid being a statistic and turn a potential business failure to business success in one fell swoop.
Avoiding the Burnout
It is so easy to get all carried away with your new business that you end up working so hard “in” your business that you don’t get the chance to work “on” your business.
Now, what do I mean by that?
When you work “in” your business, you are doing all the hands on tasks that keep the business functioning from day to day. This is especially prevalent in a solely product based business model. The stresses are somewhat higher, particularly when you have out-laid to buy in stock to begin with. You have costs that you need to recoup in order to make a profit. You are replenishing stock levels, creating new designs, manufacturing, importing, dealing with excessive shipping costs, the fluctuating US dollar, duty and GST, warehousing, advertising and… well, everything.
It’s tiring. Trust me, I know!
When you are working “on” your business, you are working on building your brand, growing your business and in turn increasing your profits and income.
A business model that allows for more time working on your business rather than in it, is where you need to be in order to make your business successful and avoid the burnout that regularly happens.
Don’t get me wrong, you can still make a tidy business selling a product, you just need other avenues of income in order to make it profitable, offset your expenses and keep you motivated!
Establishing your Income Streams
Now, lets have a think about what your income streams are. Is it product based or service based?
If you have a product based business, your income stream is from the product you are selling. But that can get eaten up when you have to restock that product or introduce a new one. To make ends meet, you really need a few more avenues to drive profits into your business.
This can also be the case for service based businesses. Even though you don’t have the monetary outlay of a physical product, you still have your time, which is also worth being compensated for. The following income streams can be applied to any business model.
Have you thought about introducing a digital product to your repertoire? A digital product, like an eBook for example, has an endless lifespan. Once it is written, you can sell it over and over and over again. You make 100% of the profit each time it is sold! Maybe you have a décor business, you could introduce digital prints to your store which will have the same effect as an eBook and keep customers coming back for more.
Have you heard of affiliates? An affiliate is someone who gets a commission from a company for simply referring their product onto someone else. If you already have a website or small following, you can become an affiliate and promote other products or brands within your own business and earn the commission each time a purchase or sale is made. No packing orders or replenishing stock for you. Tip: chose brands or products you have a link to or use yourself, after all, you still have your brand to protect.
Can you incorporate a business directory or membership program? If you have a large enough following, people will pay to be listed on your website for exposure to potential new customers. By creating a directory, you can charge a small monthly fee for businesses to be listed on your directory. This will generate monthly income and all you have to do is set it up and make sure traffic is heading to your site to keep them coming back.
Hopefully that has given you a little insight into how the “others” do it in making their businesses work smarter and not harder and change their business failure to business success.
In Part 2, we will let you know how you can put all your new learnings and earnings into practice and automate your business so you can work less and earn more!
(This physical product business model can be physically, emotionally, mentally and financially draining so the failure figures are more and more understandable. You can learn more about this on an article on Business Jump “How Failure Lead Me To a 5 Figure a Month Business” )
Still want to know more, why not download our new eBook detailing how you can generate a passive income into your business.