So you went into business for yourself to earn money on your own terms, but it doesn’t seem to be working out as well as you planned? If the primary goal of the startup was to do little more than bring in a profit, we might have landed on the problem. This is not to imply that profits are not important to the overall success of any business venture, but instead to highlight the deep and impactful role that an entrepreneur’s purpose plays in the success of his or her startup.
Personal purpose is vital to success. No matter the state of the economy, purpose can drive what profit cannot. Business owners who make their purpose an integral part of their business lives breathe their true passion every day, even in otherwise mundane tasks like a business meeting or phone call. These purpose-driven entrepreneurs also have another advantage – – they are likely to find the market that is most underserved or dissatisfied with certain offerings in a specific area.
Perhaps, most importantly, customers understand when someone is simply looking to make a sale and when someone is genuinely trying to make the world a better place with their product.
If the only purpose an online business has is to move a product off of the virtual shelf and into the hands of any consumer, there is little chance it will survive. Instead, purpose-driven and oriented businesses tend to thrive where profit-fueled startups fail.
If these statements show more loss than profit, chances are the company is less stable than you initially realized, and it is time to cut corners and cut unnecessary spending before looking at growth. However, if you’re bringing in a steady and healthy profit, it is most likely time to reinvest to help your business grow.
Your business was not built overnight, and in all likelihood, it certainly will not expand that way either. Healthy and solid business growth requires the same dedication and investment that was put into the startup in the first place. So, make sure all of your ducks are in a row before you move forward with your new business plan.
1. You’ve got plenty of choices. Real estate, stocks, bonds, and investment funds — need we say more? Investing is actually a rather broad term for the vast array of choices that you have at your fingertips. Whether you want to own rental property and collect monthly payments or put your money into a bond for a specified term, there certainly is not a lack of opportunities.
2. Diversifying your portfolio is easy. Remember all those choices you have? Admittedly, there are certain risks involved with investing your money, but these risks can be mitigated by utilizing the various options that you have. Avoid falling into the trap of investing your money into only one area. You can hold a couple of real estate properties, own stock in several companies and pool funds with other investors to make a solid investment fund. The more you diversify your investments, the more protected you’ll generally be.
3. Long-term capital gains are taxed at a lower rate. Buying and selling investments is certainly one aspect of creating a solid investment portfolio, but the period of time for which an investment is held before being sold affects the rate at which it is taxed. For most investors, this means it is generally the best idea to hold onto investments for at least a period of one year, making them long-term capital gains when sold, and qualifying them for a much lower tax rate than if they had been sold after less than a year.
Create milestones, not speed bumps. Establishing several short-term or mini-goals along the way to a larger objective is exceptionally helpful for keeping up pace and momentum, but the term “mini-goal” means just what it sounds like — these goals should be much smaller. Need to bring in a certain number of customers by a previously date? Mini-goals focusing on target marketing and product improvement or development will contribute toward the overall objective, and can be met along the way.
Go ahead, reward yourself. Most people have moved beyond the motivation of a star sticker on a chart, so focus on what you would really enjoy. Did you hit a certain number for product sales? Send out for coffee. Finally replied to your emails in a timely manner? Watch the next episode of your favorite show. Even though they are contributing toward a greater objective, adding incentive to each mini-goal can keep everyone moving.
If you would like to know which posts were best received or went “viral,” Facebook Insights can provide this information. By seeing this, you can identify the most effective types of posts and how get the best response from those who visit your Facebook page. Additionally, you can see how many people actually see what you post, as well as see who is talking about your page.
Facebook Insights provides business owners a remarkable look at how they are doing–with customer interaction, communication and even marketing. This kind of real-time feedback is rare for business owners and site administrators, and this tool should be well utilized. In fact, information from Facebook Insights can indicate where improvements should be made, from website design to social media management.
Okay, so all that hard work and effort is still there, but it can be easier and even more enjoyable when you know that you are not just working for a good cause, you are working for a purpose. Instead of starting a business with a purpose in mind, let the purpose be the foundation upon which everything else is built. This means that your purpose needs to be clear from the very beginning, so make sure it makes an appearance in the business plan.
If your purpose is not shining through the products, then it is not working for you. Think of your purpose as what makes you feel most alive or thrilled, and ask yourself if your product is doing the same. If not, then your customers will not either. All of the flashy websites and target marketing in the world cannot make up for a product that is subpar or lacking in some way.
If you built your business in the online world, be prepared to start interacting there. Consumers expect their favorite brands, businesses and companies to play an active role online, mostly through social media. A few funny quips posted on Twitter or a viral photo or two shared on Facebook are not enough to get your target demographic excited and pumped about not only your products, but about what you are doing. Make sure your online presence counts.