Posts tagged "ROI"

Advice

10 Lessons from a Year of Blogging

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“There are no mistakes or failures, only lessons.” Denis Waitley

I made a resolution on the 31st of Dec 2007 to blog every day for an entire year. Not quite knowing what I was getting myself into I started writing and have not looked back since. Through the course of the year I realized that the goal I had set for myself was very challenging and required a lot more time and effort than I had expected. Nonetheless, I thoroughly enjoyed writing on a daily basis and aim to continue blogging through 2009. Next year I do not plan to blog everyday but have added some new twists along the way to help differentiate my blog from others in my niche. Listed below are 10 lessons that I have learnt after a year of blogging. If I had read these lessons prior to starting my blogging journey I would have been more prepared for what was in store for me. I hope these lessons will help new blog writers on their journey.

Lesson #1 – Selecting a Niche: Before one starts to blog, clearly identify the target market that you want to serve. This will provide definition and boundaries for your blog and help you to be more focused and become an authority figure in that particular niche. To learn more and access some helpful links on selecting a niche please click here.

Lesson #2 – Passion: The niche that is selected must be something one is truly passionate about. If you just begin writing about something that seems to be the buzz these days, it is most likely that motivation levels will fall drastically over a short period of time. To learn more about passion and selection of your blog niche please click here.

Lesson #3 – Have a Goal: This helps put things in perspective as well giving you achievable targets. Some metrics to track progress by are, number of posts, number of blog hits, number of comments etc. Set specific goals that can be measured and tracked. By doing this simple goal setting exercise , you have a far greater chance of success. To learn more about goal setting for your blog please click here.

Lesson #4 – Commitment: If you are planning on starting your blog next year, I suggest you give serious time and thought  to evaluate how much time you can actually spare in your day to blog. How long does it take you on average to write a blog post ? What other factors will help your commitment when you do start? Lastly, make an open commitment to the blogsphere about your aspirations and goals for the year of 2009. To learn more about commitments and blogs please click here.

Lesson #5 – Providing Value: I use the NABC formula to develop most of my value propositions. It simply helps you identify the Need, Approach, Benefit and Competition. Based on these core principles you can come up with a proposition that will help generate considerable value for your target segment. To learn about this formula in greater detail and how to apply it to your blog please click here.

Lesson #6 – Importance of Reading: If you plan to write a new blog in 2009 then reading is something I highly recommend integrating into your daily schedule. This will not only increase your knowledge base it will also help you get a better command over how to write as well. One needs to be constantly aware about the changes taking place in one’s niche and what authority figures are talking about. To learn more about my daily reading schedule please click here.

Lesson #7 – Dealing with Writers Block: Writing on a regular basis is a challenging feat. One which is bound to frustrate and irritate you at times,  it is also one of the most satisfying and rewarding things to be able to integrate into one’s life. Dealing with writers block is a part of being a writer. Some of the things I use to deal with it are taking short walks, doing a brain dump exercise or even using mind maps. To learn more about the strategies I use along with some helpful links please click here.

Lesson #8 – Patience: Developing a readership and increasing your daily traffic takes a lot of hard work. Expecting to make 6 figures a year from part time blogging is wishful thinking. One needs to focus on developing great content and using it to drive traffic to your blog. The beauty of the internet is its ability for the rapid exponential growth of your blog. A blog that is growing at a monthly pace of 10% will see traffic increase steadily through the course of the year and eventually those numbers will begin to multiply. To learn more about patience and blogging please click here.

Lesson #9 – Networking: A lesson I learnt late in my blogging journey was networking effectively through the blogsphere. If I were to start a new blog in 2009 I would spend more time building a comprehensive blogroll, concentrating on cross linking from high traffic blogs, commenting regularly and using social media to develop strong relationships with authority figures in my niche. To learn more about these techniques please click here.

Lesson #10 – Having Fun: This is an essential factor if one is wanting to blog on a regular basis. If one does not enjoy writing or reading, blogging on a regular basis is going to be more of a chore rather than something to look forward to. Pick a niche that excites you and half the battle is won. For the other half I recommend you should just write,  slowly and over time the content of your blog will become better and eventually blogging will become a lot of fun. To learn more about having fun while blogging please click here.

I hope these lessons will be of some help to first time bloggers. If you have been blogging for some time and have learnt or experienced some other lessons please share them so that we can build a repository to help first time bloggers. I wish you all the very best of success in future blogging ventures.

Advice

Lesson #10: Having Fun

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“People rarely succeed unless they have fun in what they are doing.” Dale Carnegie

Blogging on a regular basis is hard work. I am pretty sure most of us who blog on a regular basis have days when we just do not want to even look at a blank piece of paper that we need to convert into a worthwhile post. However, after a while,  inspiration does come and one begins writing. Sometimes it really feels like magic to me when you have just get started on a single point and suddenly….. you have a post, one that you can be proud of. I don’t always think its magic! More often than not it is a mixture of passion, hard work and persistence. However the most important ingredient in all this is that we need to enjoy the process. When you have fun doing something it becomes easy to do it and you no longer need to push yourself too hard. To top it all off, a single good comment on the post makes my day and it  all worthwhile. The fact that someone out there was able to connect with what I have written is an awesome feeling.

When one starts to blog just for the sake of blogging, it saps out all the fun from the process. That is why I had mentioned passion being supremely important when selecting what one wants to blog about. In the end however it all comes to down to doing something you have fun with and enjoy doing. It’s almost a year since I first started blogging,  I don’t think I would have made it all the way here if I had not had so much fun along the way. Seeing my readership numbers steadily increase, increased number of comments and the links that I have made this year have all been an added bonus.

This lesson has a wide application through our life. We sometimes make choices and decisions that appear to be the ‘right’ one at that point of time  because society deems it to be so. It takes a lot of courage and faith in one’s own ability to go off the beaten path, specially if that is one that does not bring us the sort of excitment and joy we want. Going off the beaten track is almost always a much more challenging route to take, with a whole bunch of obstacles along the way that remind you it is not too late to turn back and get back on the accepted track. However, if you follow a path that brings you a level of excitment, joy and most importantly the satisfaction you desire, very few things should persuade you to stop doing it. I hope everyone has the strength and courage to follow their heart  and may they find great success in doing so.

Advice

Lesson #9: Networking

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“The currency of real networking is not greed but generosity.” Keith Ferrazzi

A lesson I learnt late in my blogging journey was networking effectively through the blogsphere . When I started this blog I had a tiny blog roll and did a poor job of linking it to other articles and posts. It is only recently that I have discovered how effective linking can be, not only to promote  visibility of your blog but to network with other bloggers who may be writing in the same niche as you. The fact of the matter is that the multiplier effect gets amplified definitively through the internet. A blog post can suddenly become viral, and  your blog can experience an enormous amount of traffic. Even though I have put much heavier emphasis on creating quality content for my blog since the beginning of this year, I should not have neglected the power of developing deeper relationships with authority figures in my niche to help in the expansion of this blog in year 2.

If I were to start my blogging journey again from the very beginning, I would place much greater emphasis on networking and linking . Listed below are a couple of steps I would have followed to build up my blog’s visibility through networking and linking:

1. Join twitter as soon as possible. Thanks to twitter I have built up close relationships with many bloggers since I started actively using the service a month ago. If I had put in the same amount of effort from the very beginning of this year I am pretty sure my blog’s traffic would be much higher, I would have had better relationships with  many prominent bloggers and I would hence have developed a channel through which my blog posts could become viral almost instantly.

2. The blogroll on my blog is very weak. It barely includes any of the blogs that I read on a regular basis. Developing a substantial blogroll is another factor that I would pay more attention to if I were starting this blog over again. This way I would appear on the radar of some larger blog sites and it would also help my readers to link to many relevant blogs in the same niche.

3. Commenting is a powerful strategy to bring visibility to one’s blog as well as to integrate it into conversations taking place online. Comments provide a great platform to showcase opinions and suggestions which could help attract new readers to one’s blog as well as develop closer relationships with other bloggers.

These are some straegies that I would use to build stronger networks and deeper relationships with prominent bloggers in my niche. The sooner we begin putting in that extra effort to develop these relationships the sooner we will see results of our blogging effort. If any reader has any good link to articles that discuss linking or networking through blogs I would appreciate it if you could post the links. Thanks.

Advice

Lesson #8: Patience

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“Genius is nothing but a great aptitude for patience.” George-Louis de Buffon

Instant results and gratification seem to be the mantra of my generation. It is undoubtedly and definitely nice to get things whenever one wants them. However there is usually a fair amount of work/effort that needs to be put in before you see any tangible results. Blogging works in the same way. Expecting to make 6 figures from your blogging efforts right off the bat is wishful thinking. One can use all the SEO (Search Engine Optimization) tricks out there, but the truth of the matter is, if we want to see sustainable long term results it is only going to be through pure hardwork. It sounds cliche’d as I write this, everyone knows that it takes a lot of effort to do anything of substantial value. What we tend to lose sight of along the way is the patience to hang on to what we are doing. I personally know many individuals who started blogging only to leave the habit a couple of weeks or months later. They may not have got the level of traffic they wanted or made the sort of money they were looking for.

Its quite disheartening to check your stats and see that only 3 other people on the web have read your post. All the hardwork that has been put in still does not us the results we ‘think’ we are due. Here lies the problem, our expectations  from our blog need to be tempered right from the start. If you are really serious about making money or reaching a certain traffic level for your blog then one needs to put in an adequate amount of work. If there is something I have learned over the course of the last year, it has been that making a living solely by blogging is very hard work. It is not impossible, however it requires the same level of persistence, determination and effort that any other startup venture may require.

The beauty of the internet is its ability for the rapid exponential growth of your blog. A blog that is growing at a monthly pace of 10% will see traffic increase steadily through the course of the year and eventually those numbers will begin to multiply. Therefore, focus on your content before anything else, build a group of readers that follow you on a regular basis and continue to grow your base on a steady basis. With good content, regular updating and being relatively proactive through online social mediums you will reach your goal. Just don’t lose hope half way through… success usually comes to those who have the ability to continue hanging on when everyone else has given up.

Related Posts:

– 5 Steps to Patience

 

Advice Finance

Financial Metric #4: SG and A Growth

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“There is one rule for industrialists and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible” Henry Ford

Sales, General & Administrative (SG&A) expenses include, all salaries, indirect production, marketing, and general corporate expenses. This constitutes the bulk of expenses that a business incurs and should be constantly reviewed. The entire concept of running a lean enterprise extends from the fact that we use an optimal mix of resources to achieve our target goals. However, this is usually not the case in the real world and businesses tend to inflate costs drastically whenever they have some success. This creates an unhealthy dependence on extra resources and also leads to complacency within the team. When cuts need to be made during recessionary periods,  there is a detrimental impact on the team’s overall performance in such organizations. From the onset we have to continuously monitor our SG&A growth in relation to revenue growth as well as industry averages. This helps keep an eye on the ball and puts emphasis on efficiency. When evaluating this metric there are a couple of factors to keep in mind.

1. SG&A Break Up & Alignment: How are costs distributed through the business? We need to identify which costs contribute significantly to overall costs. This helps us map out IT, marketing, sales, payroll and other components which usually make up the bulk of expenses. Once we have this breakdown, we can analyze each component further and see how it contributes to the overall strategic vision of the company. If your company has a short term goal of increasing market share in its industry through mergers and acquisitions, there needs to be focus on getting the right people on the team instead of bulking up marketing expenses. We see hence how breaking up the SG&A and aligning it in accordance to the business vision is important.

2. ROI: Each major component such as IT or marketing, needs to be measured. When assessing your business it is important to delve into each component to gauge which technologies and campaigns are delivering an acceptable ROI and which are not. This exercise highlights non performing costs which are being incurred without adequate return. It is through this exercise that one can eliminate these costs and make the entire business more efficient.

3. Growth %: One also needs to pay attention to how fast the SG&A figures grow when the business begins to scale. This percentage needs to be kept in check and must be reviewed regularly to ensure that costs are not being overly inflated with growth. This usually happens when we begin to hire too many people, launch unnecessary marketing campaigns or have technology infrastructures implemented when not needed. This leads to erosion of operating margins and can have a detrimental impact on growth. If possible benchmark your SG&A against industry averages as well to ensure that growth is specifically aligned with the overall strategic direction the business wants to take.

SG&A needs to be kept in control and be constantly reviewed. However, I do not like pegging its growth to some budgeted figure. SG&A growth needs to be aligned with the business vision. Restricting it from growing over a certain percentage may have a short term benefit to the business, it may however prevent it from reaching its long term goals.

Marketing Strategy Teams

5 Steps to Assess a Business

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“Strategy is not just a plan, not just an idea; it is a way of life for a company. Strategy doesn’t just position a firm in its external landscape; it defines what a firm will be.” Cynthia A. Montgomery

As a business owner one needs to continually assess one’s own company as well as those of the competition. It is essential to have the ability to look at the larger picture and see what is working, and what is not. If you are younger start-up company looking to raise money, or attract potential team members, you need to have well thought out answers to key questions which will be asked. Listed below are five key questions which I believe every business owner must be able to answer.

1. Why does your organization exist?: To answer this question, one needs to have clear understanding of the problem the organization is wanting to solve and how it plans to do that. The answer needs an opening sentence which has the ability to get the other person interested instantly, and wanting to know more about the business. To read more about answering this question please click here.

2. What is your competitive edge?: This question requires you to identify three main components, customer needs, competitor capabilities and your own organizational capabilities. This will help to clearly identify the space your organization is going to be operating in, and your customer value proposition. To read more about the answering this question please click here.

3. What is your business model?: In essence this question is asking how your business makes money. The answer to this question requires you to clearly pin point your target market, financial estimates, scalability and originality. All assumptions and forecasts used in the answer must be based on extensive research. Investors see far too many hockey stick projections, without substantial evidence of how and why demand will pick up to reach those estimates. To read more about answering this question please click here.

4. How do you acquire customers?: The answer to this question is all about your marketing strategy.  Clearly outline metrics used to measure performance, market positioning and price point strategies. These objectives and strategies need to be translated into executable tactics through your promotional campaigns. Avoid using generic answers when answering this question and focus on key metrics you  want to achieve, and how. To read more about answering this question please click here.

5. Who is on your team?: This question requires you to tell the assessor the business plans for execution. The answer to this question is I believe, by far the most important aspect of assessing a business. One needs to mention the teams past experience, achievements, leadership examples and responsibilities. Highlight strengths and how they will be used to help reach your target goals. To read more about answering this question please click here.

One needs to have the answers to these questions, always prepared. They require much initial hard work and research,  the benefits however, far outweigh the time spent on them. One needs to remember to be clear, concise and confident when answering these question. It is all about passion for the business and the industry one operates in. This passion must be conveyed when talking about one’s organization. In the end if the story makes sense, numbers are fairly correct and you have managed to assemble a talented team, success is closer than you think.

Strategy Teams

Who is on your team?

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“The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they don’t play together, the club won’t be worth a dime.” Babe Ruth

The success of any startup depends on the quality of the team executing the plans. It comes down to having a team who complements each others strengths and weaknesses, has the ability to work cohesively together and most importantly, has the same core beliefs and values. To communicate this to a potential investor or assessor of the business, requires a deep understanding of oneself and one’s team mates. A clear segmentation of the roles each person will be playing and why that particular person has been chosen for that role is essential.

The answer to this question should include reference to the following:

1. Experience: The first things which needs to be established is the team’s past experience and achievements. This will assist an understanding of where they are coming from and whether they have the required understanding of the market and skill set they will be responsible for. Wherever possible, support your answer with specific details including return on investments (ROI), market share growth, sales figure or any industry rewards and recognition achieved. Past tangible results need to be highlighted.

2. Leadership: This point needs to be stressed to showcase  possession of the necessary skills to lead and motivate a team. Highlight experience, responsibility and motivational skills from the past. Forward looking investors need to know whether an individual has the ability to motivate a team during hard times, and push them further when things are going well.

3. Roles & Responsibilities: From the very beginning there should be clear allocation of responsibilities. Even though at the beginning everyone has to wear multiple hats, it is important that they are responsible for the part of the business where their strongest skill set is used.

The points mentioned above highlight some key areas to develop answers around. Ultimately, investors invest in teams, not business ideas. Use this opportunity to promote your team as much as possible. Be clear, concise and focus on results and tangible evidence of the team’s great ability to work well together.

Related Articles:

– Steps to create a winning team

Advice Inspiration Strategy

5 Steps to Patience

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“Patience is waiting. Not passively waiting. That is laziness. But to keep going when the going is hard and slow – that is patience.” Anonymous

When we read about the lives of great men and women, we find a common thread in their stories. That thread is patience. In today’s day and age of instant gratification, patience levels are at a steep decline. Too many people are moving too fast, too soon. Their lives are checkered with dissatisfaction and frustration. Lack of patience has a definite impact on the entrepreneurial journey as well. If wanting it all yesterday is a priority, this path does not have what you are looking for. Patience is a virtue which cannot be learned through text books or courses, it is acquired through experience. We are all constantly placed in situations where our patience is tested, the manner in which we choose to react to these situations, determines our patience tolerance level.

Listed below are five steps to understanding situations where patience is tested, and sequential consequences if patience is not exercised:

1. Strategic Indecision: Instant success for entrepreneurial start-ups is a rare anomaly. If you embark on this journey, make sure you realize it is for the long haul. It will require remaining committed to your strategy, and to constantly adapt it to market demands. Inability to adapt and change will give rise to growing impatience which will impact negatively on your business. To read more about patience and strategic indecision please click here.

2. Marketing Results: The secret behind companies who market themselves successfully, is patience. Once they formulate a strategy, they remain committed to carrying it out to the end. Do your best to remain consistent in the messages you send out and ensure you send them out regularly. Once the messages are out there, be patient, results will follow, in time! To learn more about marketing and patience please click here.

3. Handling Customers: Prospects and customers have an uncanny ability for getting under your skin, often driving you close to insanity. It is important to learn to keep one’s composure when dealing with difficult customers. There are several strategies which can be employed to help relieve some of the frustration, these include correct identification of prospects, using CRM software and having disqualification processes. To learn in greater detail about customer handling strategies please click here.

4. Employees: Managing employees effectively requires great levels of patience. They can be a handful, specially when the organization is growing rapidly and micro management is not an option. To help develop  patience levels for this, learning to set realistic expectations and providing continuous feedback is vital. To learn in greater detail strategies for management of employees please click here.

5. PRICE of Impatience: The price of impatience is, pain, regret, irritation, close-mindedness and becoming emotional. Each one of these can have a defining impact on your business, team and relationships. By not developing adequate tolerance levels to handle the complexities of business, reaching one’s goal can be a challenging process. It is important we learn to ask ourselves “Can I afford the price of my impatience?”. To learn more about the price of impatience please click here.

Developing a high threshold of patience, helps make the difficult challenges we face daily, more manageable. It enables us to enjoy life in a more fulfilling and satisfied manner, which in turn helps us to go on to achieve great things. Everyone will have moments, when lack of patience gets the better of them, keeping these incidents to a minimum, and being vigilant and pro-active about such lapses is essential. It is only when we become aware of patience thresholds, can we work to keep increasing them.

Advice Inspiration Teams

The Price of Impatience

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“One moment of patience may ward off great disaster.  One moment of impatience may ruin a whole life.” Chinese Proverb

This week we discussed several scenarios where patience is tested on the entrepreneurial journey. For the last post of this series I will focus on the ‘price’ we pay for lack of patience. Understanding the price of impatience is as important as developing patience. All of us have experienced instances where our patience gave way, and we did or said things which impacted negatively on our life and caused regret. What is important, is that we learn from these temporary lapses and ensure they do not occur again. If we don’t, we run the risk of always being angry, upset and dissatisfied with the progress of our growth. 

Outlined below is what I define the PRICE of impatience to be:

1. Pain: Whenever we lose patience, we cause pain to both affected parties. Often, this is embedded in our subconscious and a recall of that memory, can be a painful experience. There are times when a degree of pain helps us realize all that we should be grateful for. Too much pain however, can be the cause of major instability in life.

2. Regret: Sometimes during lapses of patience, we find ourselves doing and saying things, we would never do ordinarily. It all happens so quickly, and we only begin to understand its impact after everything is said and done. That is when the regret sets in, and if we fail to move forward at this point, it has a domino effect on the self. Regret about something which happened in the past is definitive only by the lesson we learn from it, we must learn to avoid acting in a similar manner again.

3. Irritation: Patience and irritation are negatively correlated, when patience is on the decrease we experience a heightened level of irritation. Nothing and nobody seems to be right anymore. It is like a virus that drains energy out of a team. We have to keep this emotion in check constantly when we are running low on patience, it is one of the easiest ones to give into. 

4. Close-minded: When we lose patience, it is like a switch goes off and blocks everything around us. We become increasingly selfish in our outlook and begin to believe that only we know how to do anything right. This is a dangerous path to tread, the price we pay for this attitude is a serious one. 

5. Emotional: We lose our patience and suddenly, all logic and rationale goes out the window and we find ourselves making emotional decisions. These are usually clouded with the false notion that we know best. This also triggers our saying and doing things that have the ability to cause pain and suffering to those around us. Is a lapse in patience really worth destroying something you may have spent a lifetime nurturing? 

Whenever you find yourself in a position where your patience is wearing thin, ask yourself the following question: “Can I afford the price of my impatience?”. It is important to take into account the larger picture. If we do not, our outlook will remain selfishly restricted to me, myself and I. Is it really worth it?

Advice Teams

Employees and Patience

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“The five steps in teaching an employee new skills are preparation, explanation, showing, observation and supervision.” Bruce Barton

Two characteristics often found in entrepreneurs is, the need for perfectionism and control. When teams are small, this works to their advantage, however, when business expands, these characteristics tend to be more disruptive by nature. For example, when the business starts to grow, it is inevitable that more resources will need to be hired to keep up with growth. The selection process itself is a difficult process for start-ups with limited experience. The real fun begins when you have these new resources on board and most of the time, they don’t know what they signed up for. Earlier on, I expected the same work ethic, dedication and sacrifices from them as I did of myself. That didn’t go so well, I soon found myself getting impatient as I had set unrealistic expectations. My perception of the scenario was biased, in the process I lost many good people. I learned a thing a two about patience during this time.

Some of the key things to keep in mind next time you feel your patience wearing thin are:

1. Set Realistic Expectations: To expect the people who work for you, to make the same level of sacrifices that you may be making is not correct. From the word go, we have to temper our expectations and more importantly, outline them before you start the selection process. This way, while recruiting there will be more detail, which will help the prospect to make a more informed decision. Keeping broad guidelines for what you want from an employee, will result in both sides being negatively effected.

2. Holding Hands: The on-boarding process takes time, this is the time to help the employee make necessary adjustments to fit into the organization. Bring them up to speed with the projects they will be working on and acquaint them with all the set processes. It takes an average of 1-2 months to bring an employee up to speed, till they start contributing to their potential. Make sure you help them as much as possible to speed up the process.

3. Feedback: We are all human and we all make mistakes sometimes. Instead of coming down hard on an employee regarding their work ethic, performance or behavior, provide feedback on steps to take to bring about positive change. Doing this effectively takes time and a lot of patience. Even when they mess up the proposal, don’t do a good job at that presentation or keep coming late to work, provide them with timely feedback. 

These are simple steps to take, to help become more patient with your employees. Incorporate them into your organization and see increased performance results, calmer working environment and a motivated workforce. Along the way, you will develop the patience required, to scale the business further and help manage people all over the globe. Remember, it is not possible to do everything ourself. Learn to sacrifice a little bit of that perfectionism and control, it will go a long way, in the larger scheme of things. 

Related Articles:

– 5 Steps to Hiring Better