This week's Indie Business Radio, show featured guest Christy Strauch, author of Passion, Plan, Profit: 12 Simple Steps to Turn Your Passion into a Solid Business
Christy is president of Clarity To Business and has worked with hundreds of small business owners, from artists to real estate agents, helping them do what they are passionate about – and make a profit.
Christy provided a number of great tips on the show. In her book and during our interview, she affirmed that you don't have to be a “numbers person” to properly manage the finances of your small business. Here are some of the valuable tips she shared during the show.
- Your “Right Livelihood.” Christy mentioned a concept rooted in Buddhism called, “right livelihood.” She said that the idea is that each of us has something that we are designed to do, which also allows us to provide for ourselves financially. One of the first things a person who wants to be successful in business may wish to do, says Christy, is search and find out what that thing is. Once that's done, it is an easier and more natural process to launch, own and manage a successful business.
- Remember The 80/20 Rule. Christy says that, for the most part, every business gets 80% of its income from about 20% of the products and services it sells. As your business grows, this general rule is a great way to determine with a high degree of certainty which products to discontinue and which ones to expand upon.
Christy says that small and independent business owners would save themselves a lot of trouble if they simply stopped offering items that don't sell well. Christy said that her book contains spreadsheets to help you figure out the costs, profit margin and gross profit of different products. This will make it easier for you to determine which products are making you the most money so you can focus on capitalizing on them.
- You Are Not A Bank! Christy said that many small business owners tend to underprice their products and services. The failure to charge what something is worth must be overcome if a business is to thrive.
Another issue she says we must avoid is allowing customers to treat us like a bank. Christy advises getting payment for everything in advance. If that's not possible, she says to be sure that you have a plan in place to cover any losses or financial hardship that would result if a customer did not pay for work or products in a timely fashion.
While each individual situation is different, I think this is great advice from Christy. If someone does not want to pay what your product is worth, that's generally a sign that it would not be a good business relationship. Sometimes, you just have to say, “No thanks.”
Listen to the Show
Get more of Christy's tips wherever it's convenient for you. You can download the entire show on iTunes (search on Indie Business). You can also stream it or download it at my radio show website, where you can also pick up a copy of Christy's book. If you like where you are right now, simply click on the link at the bottom of this post to listen right now! It's a great way to digest useful information while you work.
Click here to enjoy the companion newsletter for this show. The newsletter features the story of how IBN member Jim DeBetta owns and manages Jim DeBetta Enterprises where he helps inventors and people who want to get their products into retail stores. Jim also leads the “How To Sell To Major Retailers” Group at our social networking site.
Coming Up Next Week!
Coming up on October 26 at 1:00pm EST on Indie Business Radio: Marc Warnke, author of ONO, Options Not Obligations: Enrich Your Personal Life by Rethinking Your Financial Life stops by to share how to enrich your personal life by rethinking your financial one.
See you then!