Back to Basics - July 28, 2009


Does This Describe Your Business?

A business that is sane.  A business that offers the entrepreneur time with her family.  A business that you run, rather than a business that runs you.  A business that from the onset grows into a financially viable asset. A business that allows you the freedom to live your life as you see fit.

This is what I call a successful business.  And you can have this by simply using Basic Business Tools.

Back to Basics

Not a very sexy title.  But oh so important!  Too many of us think we need to either ‘know everything’ or be an absolute expert before we can really begin to build a strong business.  But nothing is further from the truth.  We don’t need to be experts and we don’t need to know everything.  In fact, typically we simply need to get out of our own way.

This article is going to discuss one particular basic:  time.  I urge you to at least read to the bottom of this first section before you decide that I either can’t help you or you are not interested.  I especially urge you to keep reading if you would like your business to be like the one I described above, what I call a “successful business.”

My goal for this article is to encourage all of you to diligently decide what hours you are going to work each week and what you are going to do within those hours each week.  And here is why, if you and your team are NOT working within a calendar each week, your business is doomed.  And please note, that I said you and your team.

Many of you may keep business hours, with a set start and stop time, but if your downline is not, the growth of your business is curtailed to what you do.  You are missing out on the most important growth factor in network marketing, leverage.  Basically, you have bought yourself a job.  Strong words but I have not in my 20 years of either building a networking business or coaching the industry, seen a successful business that didn’t include set working hours.

Don’t get me wrong.  I’ve seen people make money, lots of it without good business hours.  But they weren’t sane.  They didn’t have a family life.  They were living this notion (which I believe to be mistaken) that they would sacrifice now in order to have what they wanted later.  Sounds noble.  But who says they are going to be around later?  And how do you put a family “on hold.”  They are all going to grow up while you are sacrificing the most important thing you have, time with them.  For those of you continuing with the article, this is what you will have when you are finished reading.

Coaching tools to present the importance of store hours to even the most resistant members (new and old) on your team Basic tools for keeping store hours A working friendly calendar

Is Your Frustration With Your Job (Current or Past) Killing Your Business?

Working set hours is a basic business principle.  Unfortunately, too often those who have escaped (or are working to escape) their corporate positions have such a bad taste in their mouths that they want to eschew any and all corporate structures.  It often sounds like this:

It is my business and I’m not going to pin myself down to a calendar again.  It feels too much like Corporate America.

Big mistake!  Although, I understand the sentiment.  None of us want to be told what to do or when to do it.  None of us!  Everyone knows what the favorite word of a two year old is when you tell them to do something.  “NO.”  If my mom was writing this, she would tell you that I didn’t get any better at taking instructions as I grew up either.  Did you?  No, of course not.  We all want to be in charge of ourselves (and rightly so).

Unfortunately, what I see most often is confusion between the basic business practice of dedicated time and someone else telling you what to do.  They are not the same thing.  It is critically important as entrepreneurs to understand that walking away from your corporate job and building a business does not mean that you can (or should) walk away from all corporate business practices.  Some of them are essential to running an efficient, financially lucrative business.  Working store hours is one of those things.

Is Your Business an Example of Your Freewill or Chaos?

Forgive me if I seem a bit “in your face about this.”  I am known as the “not so warm and fuzzy coach” (although there are many who would tell you my bite is not so bad).  But I feel really strongly that the high failure rate of networking businesses (probably all businesses) is because of the lack good business basics.  In a home business often the first hurdle to overcome is that of time.  Some of us never even consider the idea of ‘store hours’ and others of us are so hard over against them because of the bad taste in our mouths from our jobs, that when we fire our boss we hire chaos and anarchy. Ignorance, lack of consciousness or running things by the seat of your pants are not good tools with which to run a business.  Not ever.

You have complete freewill in your business.  But like anything else freewill, if it is going to work for you, needs to be exercised and not ignored.  If you approach time and your calendar with the idea that they need to work for you then decisions about when to work and when not to work, as well as what to do inside of that allotted time, all make your life better.  No one but you is making decisions.  Your calendar is simply the way to keep track of your intentions.  It may be your guide/boss/director but you established what it was going to direct you to do.  You are in the driver’s seat, which is exactly where an entrepreneur needs to be (not in the backseat or running behind trying to catch up).

Coach To Enroll, Don’t Tell

If most of us still harbor a two year old inside ourselves saying “no” to being told what to do, then it makes perfect sense not to tell people what to do.  But we do it all the time and then wonder why people resist us.  We need to bring them on board through their own volition.  Not as hard to do as you might think.

Coaching is about interaction.  It is not about me pointing a lot of information at you and you opening your brain like a huge receptacle and taking it in.  Coaching is really about engagement.  An easy way to do this is by setting up what I call a parallel example.  It is about engaging the other person.  It is a great coaching technique when you come across resistance.  Because we are working with store hours our parallel example will be their current or former job.

Coaching is typically done around questions rather than statements.  In order to stress the importance of store hours to their success my parallel example might look like this:

Why did your boss want you to show up at the same time every day and do the job you are supposed to do? (I am quiet, and let them answer. Then I affirm their answer and repeat, paraphrasing what they said is fine.) Right, it is how the job got done. That is how the widget they were building got built and delivered to the customer. Why is it important for the widget to get built? (Wait for an answer.) Right, to make money.

I told you it was a simple (dare I say basic) process.  By asking these two questions we walked them through the coaching process.  They established for themselves that they started and stopped their job with regular business hours because that was how the business got things done.  We then correlated that getting the product built and out the door is what makes money for the company.

It is a short step from here to ask the final enrolling question in order to suggest this may be an important requirement for their business.

Does it make sense then that your business will do better if it also has start and stop times? (Wait for the answer.) Right, the job gets done and your business makes money. Does that make sense?  (This is the final enrolling question in this particular example.  As always, wait for an answer to the question you asked.)

Fairly straight forward, yes?  By asking questions whose answers will build your case for you, you can open the doors for people to see the value to them of doing what you are suggesting.  It is a wonderful coaching technique to overcome resistance to tools that are beneficial to their business.

Basics of Store Hours

How different would your business look if the people in your downline:

Knew exactly when they were going to start work? Knew exactly what they were going to do when they started work? Knew exactly when they were going to finish work?

In a nutshell folks this is all we are talking about when say “store hours.”  If you know exactly when you start work, exactly what you are going to do during the time you are at work and know exactly when you intend to finish for the day, your business and personal life will, for the most part, run much more smoothly.  Nothing is perfect.  And I’m not suggesting that everything will be.  However, if you have this basis laid out, then when the phone rings at a time that you cannot talk you will be able to do one of two things:

Don’t answer it Tell who ever is on the phone you need to call them back because you have an appointment.  And you do, with yourself to do whatever is called out in your calendar.

Basics of Your Calendar

The first premise of your calendar is that you everything you are going to do that day, is in your calendar.  Everything.  That means no to-do list.  Right.  No to-do list.  If you have it to-do, give it a time in your calendar to get it done.  Stop dragging that to-do list around with you.  It is nothing more than a ball and chain keeping you over busy and stressed.

And make that calendar what I call a ‘Swiss cheese’ calendar.  Make sure that you in-bed 15 minutes in between each item on your calendar.  That way you’ll have some breathing room when something takes longer or life interrupts as it has a habit of doing.

I was asked during one of my coaching programs recently, when do I have free time?  Schedule it.  Big blocks of nothing to do.  It’s your free time.  If you want to pencil in your golf game, or yoga or walk by all means do so.  Schedule time for yourself.  Schedule time for your family.  Schedule a date night.  Block out big amounts of time for a romantic evening.  Schedule it and it gets done.

Oops, What Do You Do When You Realize You Are Off Calendar

Get back on.  No judgment.  No remorse.  Just get back on.  If you need to make changes in your schedule, make them.  But don’t just blow your calendar off.  If you want to re-schedule something because something fun has come up, take advantage of the fact that you are the boss.  And go do it.  But reschedule what ever activity you are preempting.

Facts About MLM Home-based Businesses - July 25, 2009


The basic needs for a MLM home-based business to succeed include a decent computer, a high-speed internet connection and a desire to be successful. Many companies involved in network marketing MLM have major money learning the ropes of network marketing and have slowly become proficient at it and are now seeking others to help their business continue to grow. Some may cite noble reasons to wanting to share their methods and a few may simply say they want to grow bigger and make more money and need your help to do so, but the bottom line is their methods have been proven to work and if you follow their lead, you can be successful as well.

MLM home-based businesses are an excellent source of extra income as long as the facts of such businesses are known. In addition, there are certain aspects the MLM home-based business owner or the member of this type of business needs to examine from time to time. The MLM home-based business owner or the team member should initially examine the MLM home-based business statistics available on the internet as well to gain a better understanding of this type of business.

The following is a detailed examination of those evaluation aspects concerning a MLM home-based business:

1. Denial- Most of the people involved with MLM home-based businesses lose money. This is a simple fact. If a team member or owner is spending more money than their producing on the MLM home-based business, the venture is a failure. This evaluation aspect takes into account that there are advertising, start-up, and other expenses as well.

2. Line Duplication- Certain members of an upline have success placing an internet wanted ad for distributors. This particular action cannot be duplicated in that it would not be effective for the entire MLM home-based business team to perform the same action.

3. Numbers- Most MLM home-based business owners or members don’t closely look at the numbers of their businesses. Pay particular attention to the various parts of the MLM home-based business (i.e. time value, sponsorship, downline members, etc.).

4. Run it like a Ministry- Some people that run MLM home-based businesses believe their products depends on the world’s survival. This is an excellent mindset to possess for a MLM home-based business.

All of these evaluation aspects must be positively confirmed to have the success and profits for a MLM home-based business. There are many MLM home-based business opportunities on the internet and in paper publications as well. An interested person should carefully research a chosen MLM home-based business, and apply these evaluation aspects to it after a time experiencing the MLM home-based business. Additionally, the interested person should find the MLM home-based business that allows personal time investment, instead of large amounts of money for the venture. Essentially, a MLM home-based business idea that requires a person to utilize free time as capital along with a small monetary investment is a venture that’s less risky but has lots of potential for providing generous earnings.

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For Small Business Accounts Read Bookkeeping Spreadsheets - July 22, 2009


There is a major difference between sophisticated accounting software used by larger businesses for financial control purposes than is required for small business where a simple bookkeeping spreadsheet is sufficient.

An accountant needs to not only ensure the financial records are accurate but also retrieve any part of the accounting records to answer accounting questions on the accounts, provide a legal basis for the transactions and report the financial statements at regular periodic intervals.

Accounting is a term that embodies a whole raft of financial activities while bookkeeping is specifically literally the keeping of books of account. For non limited companies that do not need to produce a balance sheet then a simple income and expenditure account can be produced much simpler using single entry bookkeeping principles.

Less financial control is often required from small business accounting software as the bookkeeper is often the owner manager who already has an intimate knowledge of each transaction. Books are still required for tax purposes and a solid requirement of preparing a set of financial books for tax purposes is that each entry is supported by third party evidence.

The prime accounting documents providing back up are sales and purchase invoices or receipts and bank statments. Financial transactions where no receipt exists can still be entered in the business books although all transactions not carrying third party evidence could subsequently be disallowed for tax purposes and certainly would be if the amounts entered indicated unusual income or expenditure.

Producing an income and expenditure statement using single entry bookkeeping is little more than making two lists of financial transactions. Those lists being one of sales income received from sales invoices or receipts issued to customers and the other of purchase expenditure being from purchase invoices received from suppliers.

To record sales income it would not normally be sufficient to simply add up the total of the invoices as such a summation does not leave an audit trail of the items which have been included. A written list of sales invoices does provide an audit trail.

Sales accounting for a small business accounting purposes can be either a manual list of the sales invoices or by using a spreadsheet package a list can be made on a bookkeeping spreadsheet. Basic formulae canh be used to add up totals in a bookkeeping spreadsheet.

The essential information to enter for a sales invoice would be the date of the sale, name of the customer, sales invoice number if applicable and optional a brief description of the item sold. In the next column would be the total sales invoice amount. Additional columns might be required to account for taxes on sales such as vat in the uk or sales taxes.

A further small complication might be if at the discretion of the small business owner additional information was required from the bookkeeping records to indicate the totals of the different types of products and services then additional columns could be incorporated to enter the net sales figures in these columns.

There it is then, a simple list of sales invoices to satisfy the sales accounting requirements for a small business where a balance sheet is not required.

On the expenditure side of the business the bookkeeping can also be a simple list of the purchase invoices and receipts showing the amount spent. The list should also produce an audit trail by showing the date of the purchase invoice, name of the supplier, purchase invoice for identification purposes and the total amount spent.

Usually tax returns are the main purpose of producing small business accounts and invariably some analysis is required to show what the expenses have been spent on. The small business owner can insert additional standard columns to the bookkeeping spreadsheet.

The expenditure analysis columns do not need to be a different column for each type of expenditure. It is better to set up and group the analysis columns in general headings which can accommodate all the expenses.

These bookkeeping analysis columns would include stock, other direct costs, premises costs, general administrative costs, transport and delivery costs, repairs and maintenance, travelling and hotel costs, motor costs, bank and legal costs and other expenses. It is better not to enter too many items under a general heading of other expenses as this is more likely to be investigated as the type of expense has not been precisely identified.

One important column to also include is for asset purchases as fixed assets usually have different tax rules applying to the claim of the expense against tax and should be separated from other expenditure.

Having set up two bookkeeping spreadsheets the task is then to produce the income and expenditure account by collecting the totals of each of the analysis columns. The sales total is the sales turnover from which is deducted the totals of each of the expenditure classification totals with the result being the net profit and loss of the business.

Where stock is bought and sold a further adjustment may be required to account for the difference between opening and closing stock. This is done by taking a physical stock check and valuing the stock at the start and end of the financial period.

On the income and expenditure account adjust the stock purchases figure by adding the value of the opening stock and deducting the value of the closing stock. The result is not the stock purchases total as shown in the bookkeeping spreadsheets but the cost of the goods which have been sold to produce the sales turnover being reported.

Simple bookkeeping for a small business accounting purposes can be two lists of sales and purchases supported with sales invoices and purchases invoices.

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