Friday, December 26, 2008

What size fits?

If you are designing a business that fits, it helps to know what size you are! And what size you want to be. The "default" setting in our culture --for businesses, anyway!--says "Bigger is better." But is it? Our bodies are not one-size-fits-all, so why should we expect our business to be?

First of all, if you are a new startup, or as in Ariane's example, you are starting a business in addition to a full time job, trying to grow into a major company overnight is going to put a lot of stress on you. It's hard to do unless you are really driven, and willing to sacrifice a lot of your life. Given the natural cycle of things, your business isn't likely to turn into a cash generating machine overnight. Why stress yourself out trying to be something you're not? The real question is what (or how big) do you want your business to be. That is a lifestyle decision as well as a practical business decision.

It is so easy to be seduced by the promise of "Be a millionaire if you do this program" (or seminar, or workshop). I understand that well--I spent years buying info products that promised to make me big bucks--I finally began to see what my business was, and what it could be, and with a sigh of relief have adjusted expectations to something that feels more doable and appropriate, and yes, sustainable.

Now I have more manageable goals, and am learning how to temper or avoid grandiose expectations. Not only do I feel more at ease, but I now see the possibility of success--since it's sustainable success, and success on my own terms.

If you are in a service business and working one-on-one, do you realize how many clients you'd have to serve (and how many hours you'd have to work and at what hourly or project rates?) to make 6 figures? Is it even possible? It might mean hiring employees (part or full time), marketing help, or creating products. All of those are good options--but it goes back to what kind of business do you want to have, and what trade-offs are you willing to make?

Good marketing whets our appetite for more money and success...but what do you actually want (as opposed to what you have been manipulated into wanting)? Chasing size without considering what it takes to get there--or how profitable it will be--can send a business owner down some blind alleys--the next "hot" internet marketing program, pursuing joint venture alliances that don't really add synergistically to your business, purchasing expensive marketing and list building services, or any of a whole slew of info products or coaching services--instead of the nuts-and-bolts of creating and marketing your products and services.

For example in an online business, is a email list of 10,000 better than an email list of 1,000? Sometimes, but if your goal is to actually make money and serve people with your products or services, then what you want to optimize is not the absolute numbers on your list, but the conversion rate--how many of your customers are buying what you offer?

If you have a smaller but loyal group of repeat customers this may be worth more to you in the long run than a large list of customers that are just names on a list who don't buy from you.

For our health, happiness and well-being, we can design our business around us--instead of trying to fit someone else's idea of what our business should look like. Isn't that one of the main reasons to start your own business?

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