Three Tips to Start a Consulting Business, pt.2

Three Tips to Start a Consulting Business, pt.2

Thank you for reading along to part 2 of my article, Three Tips to Start a Consulting Business. If you haven’t done so yet, I invite you to read the detailed part 1 here on my new self-hosted page.

Here’s a summary:

  1. Establish your reputation before striking out on your own

  • Join a Professional Associations and participate 
  • Network Within Local Communities
  • Offer content through your own website
  1. Partner with another firm while building your business 

Continue reading tips 2 and 3 on our new webpage.

Moving to a Hosted Account

Thank you for walking with me for these past 6 months.

I have enjoyed publishing content and sharing posts with you all. I hope you enjoyed reading the content as well. I invite you to bookmark and follow me as I move to a new site, SmartBizPractices.com 

I will be publishing the same level of content on the new site, and switching to a self-hosted site will enable me to provide you with even more content options. Some examples include eBooks, Downloadable Media, and even more options than are available here on the WordPress free site.

Thank you for the support and I look forward to seeing you there.

Also, click here and ‘like’ our Facebook Page, so that we may interact in real time.

How To Start a Successful Business, Here’s the Plan!

How To Start a Successful Business, Here’s the Plan!

 

American Poet Ralph Waldo Emerson once said:

“The future belongs to those that prepare for it”

What that means to me is that if you want to be successful at something, say, establishing a business, you have to prepare for it. One way to prepare for launching a successful business is to develop a realistic, aggressive yet flexible plan to achieve your goals. Follow these steps and you too can have a great plan to help you succeed in business!

Continue reading “How To Start a Successful Business, Here’s the Plan!”

Setting Business Goals for the New Year, in 6 Steps

Tips for Creating Effective Business Goals for The New Year

“More than 80 percent of the 300 small business owners surveyed in the recent 4th Annual Staples National Small Business Survey said that they don’t keep track of their business goals, and 77 percent have yet to achieve their vision for their company.” –Peter Vanden Bos, Inc.com
As we bring in the New Year it is important to take a step back, look at the big picture, and assess the direction your business is taking. Take a moment to celebrate your previous year’s accomplishments, both big and small. Often times we get trapped with tunnel vision and overlook just the amount of success we’ve attained. Whether it was starting your first social media campaign, launching a new product, hiring an employee, earning your first order, or taking active steps towards beginning your new business or venture. Doubt ends more careers than failure ever does.

Continue reading “Setting Business Goals for the New Year, in 6 Steps”

Handmade Business in 31 Days

 

Pricing for Success

A few months ago I read a very interesting article written by Maggie Whittey from GusseySews,com. The article, titled “Handmade Business in 31 days” covers a few great points business owners may sometimes neglect.  Specifically, the author poses a few key factors we need to know to accurately price handmade items (or services for that matter):

What is the cost per material item? {calculated down to the exact amount of material you use}

How much time does it take to make a finished item? {account for each step of the process}

What is the rate of pay to make a finished item? {include all positions/process steps; will you pay per hour worked or per finished task/piece}

What kind of profit* % must you make to remain a sustainable business?

What kind of overhead costs do you have? {your salary, accounting costs, newsletter subscriber fees, site hosting fees, basic office supplies, travel costs, site design fees, giveaways/donations, rent/utilities + more}

I have highlighted the last bullet point, overhead, as this expense is often neglected by many small business owners. Overhead accounts for many of the day to day expenses our business incurs directly or indirectly. For example, home business owners running online stores at marketplaces such as Etsy.com or ebay have to update their pictures, post listings, share content on social media, write blogs, etc. Most ‘typical’ businesses typically charge this activity to overhead. It is my experience, gathered through networking with other vendors, business owners, and artisans, that truly small home-based business owners often neglect to include this expense into their pricing model.

An article titled “How To Price Product Overhead” written by Michael Baton Kapput discusses some steps for pricing overhead adequately. While Maggie’s article specifically aims at home businesses, Michael’s article discusses your typical brick and mortar businesses. But please make no mistake about it, both articles share information vital and relatable in most businesses.

The following sample calculation should help you grasp the concept of cost-plus pricing:

Cost of materials $50.00
+ Cost of labor 30.00
+ Overhead
40.00
= Total cost $120.00
+ Desired profit (20% on sales) 30.00
= Required sale price $150.00

 

Source: Entrepreneur.com, Pricing a Product

Failing to account for overhead costs leads to misidentifying the true costs of doing business. Failing to understand one’s true expenses can lead to a miscounting of profits. As such, a business venture may prove to be non-sustainable and unprofitable.

I invite you to read Maggie’s article as it will provide you insightful information and formulas you can incorporate into your own pricing strategy. Additionally, check out my Pricing How-To Series for some more tools and tips.

I’d love to hear your comments and tips. Please comment below or contact me through twitter. I’d love to hear from you!