Do Business Well

My business plan should include how I intend to approach the complicated issue of advertising. The issues that should be addressed include:

1. How much will I budget for advertising the first year?
2. What basis will I use for determining your budget in the second and ensuing years?
3. Whom do I expect to reach with my message?
4. What advertising media will I use to reach my audience?
5. What message do I expect to convey with my campaign?

It’s the rare business that can build beyond a meager beginning without advertising. At the very least, most businesses should have a presence in the Yellow Pages. At the other end of the spectrum, entertainment firms such as nightclubs or movie theaters have to spend a good portion of their start-up money getting out the word that they’re in town. Continue Reading »

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Enthusiasm will turn the worst salesperson into a successful mover of product. Finding the need and filling it creates professionalism, repeat customers, and higher tickets. The understanding of objections and the proper method of handling them adds a measure of depth and confidence that will help you enjoy selling and reduce the anxiety surrounding the sales situation.

Only interested customers raise objections—disinterested ones will agree with everything you say . . . until it’s time to hand over the credit card.

Many are the occasions where I’ve made a flawless presentation to a potential buyer who said “uh-huh” fifty or so times as I entranced him with my story. The order seemed to be in the bag, since no objection was raised at any point, not even about the price. When it seemed like a good time to ask for the order, my request would be met with “No. I don’t need any today. I’m really not interested.” Continue Reading »

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Many companies find that after their first few years they hit a sales plateau. Up to a certain volume, business comes easy. Then there comes a time when it seems as if the next sales dollar is very elusive. Ironically, the sales ceiling usually hits just at the point where profits start.

A variation of this dilemma is the seasonal sales phenomenon. I know of one motorcycle parts distributor who made huge profits eight months out of the year, only to lose almost all of it in the winter months. Continue Reading »

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ASSET VALUE

For most companies the asset value should represent the lowest amount below which the owner might just as well liquidate. There are only two differences between asset value and liquidation value. In calculating asset value you don’t have the costs of liquidation and you can be more generous in appraising certain assets than you might be if you had to liquidate.

INDUSTRY STANDARD VALUE

It’s common in many industries to have a valuation method. Travel agencies are generally valued at ten times annual commission. Manufacturers’ reps, on the other hand, are generally only worth one year’s commission. Magazines use a certain number of dollars per subscriber. Manufacturers might expect to get between two and ten times annual earnings. Continue Reading »

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