Thursday, January 2, 2014

Recipe For Success: Grace & Lace Flashback

By: Matt Turner, 
Writer and Entrepreneur 

To kick off 2014 as our most prosperous and expansive year yet, I thought it would be great to start by recapping one of the most successful pitches of 2013.

As entrepreneurs, we always have to be on top of our game. We have to know our business better than anyone, must have a very specific vision for where we are going, and always be taking massive daily action on our game-plan that will get us from where we are to where we want to go.

The power couple behind Grace & Lace did all of that and more, which is why we are going to use them as an example of how to make 2014 your best year in business yet.

This couple demonstrated a perfect recipe for success. Their business is less than two years old, and not only have they generated well in excess of $1 million in sales, but they are growing fast, and they had several Sharks offering them exactly what they were looking for. They had their choice of partners.

Here are four steps to take to initiate or enhance your business game-plan this coming year:

Step 1:
Create a product for YOURSELF. The best businesses or products are often times created for the entrepreneur first, as a need they had in their own life. This ensures the authenticity of the product, that it will be designed effectively for personal use, and it ties the entrepreneur in emotionally and passionately to the idea.

Step 2:
Low Cost, Large Mark-up. Create the most quality, cost efficient product first. Second, find a way to mark-up the product to a price point that gives it excellent margins and that customers are still glad to pay for. Remember, perceived value is the name of the game.

Step 3:
Utilize the internet! We are entering an age in which it is easier and easier to reach a large market, convert sales, and sell product. The days of needing to go to retail are over. Allow retail to come to you while you focus on online sales. Social media can effectively cut your marketing costs to $0, and cut out almost all middle men between you and your customer. You can invite in the channels necessary (distributors, manufacturers, etc) without needing to bring on extra people into the process (buyers, retailers, tons of employees, etc).
This = More $$$ for you!

Step 4:
Know what you are looking for in a partner! It isn't just money or resources you need, it is to align with the right person that can play the role you want them to play. Even if it is just money, you must know what is best for the next step of your business before you will attract the right partner to you.

This is one of the big mistakes that I see a lot of entrepreneurs make. They are a situation in which they are almost desperate for a business partner and/or a financial infusion in their business. By being in a place where they are "needy", they give away power to the investor, and are more apt to give away too much equity or take on a partner that is not a good fit for them.

Not only did this power couple come in with a thriving new business that is doing everything right, they knew how to show the sharks exactly what they wanted to see, AND they knew who the best partner was for them.

This led to them executing a perfect pitch, and leaving with exactly what they wanted.

So in 2014, let's all focus on these key areas of success.

Let's HUSTLE more than ever before, and make this the most prosperous year yet.

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