Only After the Storm, Do You Truly See the Light
Posted by Peter James | Posted in Business Success Tips | Posted on 11-02-2010
Tagged Under : Business Success Tips, business tips, entrepreneur, how to become successful, make money, secrets of success, Success
Article by Peter J. Normandia. Follow me on twitter.
Building a business can be quite a journey. Everyone knows the road is rough in the beginning, and each day is one fight after another to become, and ultimately stay, successful. I have been busy navigating my own path as of late, and I thought I would share all we have learned.
Like anything else in life, the key to success is all how you battle through the storm.
The Passion Mobb
Pixel Mobb was created as a unity between multi-talented creatives in the media field. Basically, that means a video guy and businessman, partnered with a graphic designer/web guy, and working with two music producers and a cinematographer, combined all their incredible individual talents into one company, kind of like the cartoon Voltron.
It was a novel idea, and I was excited to be a part of it. Everyone involved is ultra talented, friendly, and most important of all, passionate about what they do. We were bucking the system, sacrificing everything to do what we love. In the beginning, the sun was bright, and possibilities for the future were as endless as time itself.
The Clouds Form
When a business starts out, it is an exciting time. Every business lasts this way for a certain amount of time. Some are successful off the bat, but most hit their first patch of gray sky sooner than later.
Everyone has a different viewpoint on a storm. Some will say it’s the worst storm they ever saw, while their neighbor is outside walking a dog with a cigarette. It’s all in the eye of the beholder. In business, it’s exactly the same.
How you handle that first storm, an each one after that, is what defines you as a business. Whether an internet, service, or a product based business, you will be tested at every turn keep your cool, and stay on your path.
The Settlers
It can be easy to settle for less when you first start out. Money is money, and clients are clients. Every business has to sacrifice in the beginning. However, sacrificing does not mean settling.
Settlers will adjust their plan to every storm, trying to avoid each one. They will let their competition & clients define who they are. They will continue to settle for mediocre results in the chase for money.
It can be easy sometimes for a Settler to tell them self they are trying, when all they are doing is trying to float by like a high school delinquent, hoping no one notices. Shit, if they are earning a buck or two, who is to complain, right?
Wrong. I used to be a settler because I didn’t know any better. In fact, I think I always was a settler until I got into my business, and learned that settling now means never being ‘settled’ later on.
The Rain Begins to Fall
All businesses take time to find their place. It’s like getting on the mat in Jiu Jitsu for the first time. Sure, you know how to fight for your life, and maybe even have some wrestling training or other strategic advantage. Truth be told though, your first time on the mat is going to be rough. It is a new world, no matter how familiar it may seem at first. Eventually, after much effort, you will realize, ‘damn, i have a long way to go.’
Businesses are quite similar. You may know the terrain, what you have to do, and how to do it, but there will always be obstacles in the way, the biggest of which is usually MONEY.
When things get rough for a business, Money is always at the heart of the argument. The bottom line, is even when it rains, a business needs to pay the principals involved. If it doesn’t, then what is the point? Well, for a business to grow, and make it through the initial storm, the key is to concentrate on Profit margin, not money.
Is that a Hurricane?
When money is tight, things can seem rough. I had the same issue, especially in this economy, time and time again. No matter what business we got, or how well we performed, the storm just seemed to be getting worse and worse.
The ultimate purpose of any business is to make money. However, successful businesses know it is actually quite a different purpose. The real purpose for any business is first, to provide value. Value is what you are giving in exchange for your client’s money. For Pixel Mobb, we essentially build effective media pieces that grab attention. The value is in the effectiveness of the media we create.
Clients come to us, because they see what we can do and they want to know how we can do it for them. This was our initial business plan. We do websites and videos and we can do them really well which is a big value to any business, small or large.
So why does there seem to be a hurricane forming in the horizon in your business? It could be because, like us, the price your are accepting in exchange for your ‘value’ is not inclusive of enough profit margin, the true value of success for any business.
The Eye of the Storm
When the wind is blowing all around, and rain is pelting you in the eye, it can be difficult to charge forward as a business. The goal, though, is to keep moving toward your goal no matter what.
The virtual swirling winds and rain represent all of the obstacles in your way. They may not ever completely disappear, but that does not mean you can not find balance.
For a business to properly balance itself, it must first understand what it is worth. Many new businesses think like I did. You need a website, then my business can help. You need a video, then we can do it. As long as we make a little money, what is the harm?
The harm is in setting the line too low. In order for a business to survive, it must…
- give the proper service to match its value
- have room for error and the unknown
- do the work professionally, dotting every i and crossing every t.
- ultimately provide the maximum value for its clients
In order for a business to do all of these things, they must make money doing it. That means setting the right price for your product or services, and sticking to it. If value is what you provide, don’t be afraid to charge for it. When you set the budget line low, you set the expectations for your services low as well.
A client does not think they spent $500, and you worked 80 hours. They simply think, I spent $500 and I want the most value I can get for that investment. Once the client is yours, and you settled for less, then the problem is unfixable. Once you set that profit margin low, it can be near impossible to ever get it back.
The First Sign of Light
Sticking to a higher profit margin for your business is not easy at first. There will be many times when you may have to turn down work, even though you need the money. Truth is, even though you may make a few hundred dollars, the time it will take to do so can be used to make much more money if you do not settle for less. Instead of settling for less, why not spend that time to do that project on doing what you have to to find the proper clients?
Think of it this way. What do you want from your business?
- To make enough money to live comfortably?
- To provide value to the industry?
- To have good clients that appreciate your service/product?
If you answered ‘Yes’ to all 3, then in order to do that, you may have to raise your price, not lower it. Lowering your price is really conveying to clients that you are lowering the value of what you do. You are willing to accept less, in order to survive. It is like settling for a newspaper to cover yourself in a hurricane. Sure, it may work a little, but what is the end result really going to be? Get another newspaper?
The Beauty after the Storm
For our company, settling for any clients just to pay our bills actually hurt us. In order to do the job right, we needed to do the whole job. The minute we lowered our price, we expected the client to understand that we gave them a break, so they need to give us a break. That never happens though. Clients are clients, no matter what price they pay.
Protect yourself by setting the price that is going to make you happy in your business. Think of it this way:
“If you can’t get paid what you need to make a living, then you are not really making a living.”
The problem may not be your high price, but rather the low value you are providing. Charge right, and provide that value to the utmost of your business’s ability. Creating that value is the only way to get through the rough patches. It may be tough at first, but nothing is more beautiful then the wondrous light after a terrible storm.
