10 Rules to Go Out of Business

These 10 rules will drive you out of business! But you have a choice…don’t follow these rules! Now, take out your pen and paper, because you are going to want to take notes on what not to do in your business.

Rule #1 – Lowering Prices: Every business that is focused on making money will go out of business! The #1 thing these businesses do is lowering prices, because they think it will bring in more customers. You might as well hang an “out of business” sign on your door if you lower your prices. Instead, focus on your current customers and create value that exceeds price. Create this value through consistent communication with your customers. If you don’t create value, then the value of your business will plummet. Guaranteed!

Rule #2 – Open More Hours: Businesses extend their hours with the hopes of bringing in more customers. This will not work! It will only exhaust your employees and your revenue. Exhausted and frustrated employees will kill your team morale! Working harder instead of smarter will not take your business to the next level. Keep your regular hours and invest every second of your day in action steps that will move you forward toward your business goals.

Rule #3 – Adding More Product: Putting more product on your shelves or offering more services will not increase your revenue. It will frustrate your customers, because it confuses them as to your actual area of expertise. Decrease your inventory and focus on the product/service that earns you the most income. When a product/service brings in money, that means that your customers want it!

Rule #4 – Hire Less People, Lower Pay, and Go Automated: Let me be clear…NO ONE likes to talk to a machine or be put through a voice mail maze. Your customers prefer to interact with your team members so don’t even consider replacing them with an automated system. Plus don’t lower their pay to save yourself money! Your team members are loyal to your business so you must be loyal to them. Focus on providing nothing less than *5* star customer service and giving your customers the positive, human interaction that they want. Your team will either make or break your business!

Rule #5 – No First Impression – Zero Atmosphere: What do your customers see when they enter your business? They should be acknowledged and feel appreciated. The atmosphere should make them comfortable. Play music so there’s no awkward silence. Decorate according to the product or service that you are providing, but always maintain professionalism. Make your wall space work for you! I would suggest building a Wall of Fame that features your raving reviews. Plus your attitude should express how much you value them as a customer. Smile and say Thank You!

Rule #6 – Allowing Smart Phones: Your employees SHOULD NOT be allowed to be on their smart phones while working at your business or providing your service. Make sure that this is conveyed when you hire them. The only time that they should be on their phones is during their break. This includes you too! There’s no way that you can focus on your customer if you are constantly staring at your phone. Put the phone away! Look your customer in the eyes and develop a relationship with them that will last for years to come.

Rule #7 – Focused on New Logo, Business Card, Websites or Social Media Campaigns: Stop the madness! None of these things will bring in serious revenue for your business. Business owners make the mistake of focusing on these things to build their brand. Don’t fall into the trap of building a brand! Instead focus on building and deepening your relationships with your current leads and customers.

Rule #8 – Hiring an Industry Specific Expert as a CEO, Board Member, Partner, or Consultant: This has absolutely destroyed the retail sector! Just because they built one business doesn’t mean that they can take your business to the next level. Plus one thing that you will see about many industry specific experts is that they may be knowledge in one specific area, but they have absolutely no clue how to build a business or provide extreme customer service. Don’t be impressed by their accolades! Instead, focus on their actual experience and ask for reviews or testimonials from their current clients.

Rule #9 – Paid Reviews and Fake Testimonials: It’s not ethical to pay for business reviews or hire someone to give you a fake testimonial. If they aren’t REAL people with REAL results that are YOUR customers, then don’t use them to promote your product or service! It’s also highly unethical to pay for likes, loves, followers, subscribers, views, etc. Why? THEY ARE FAKE! Plus these fake reviews and testimonials will not generate revenue for your customer. If you want reviews and testimonials, then focus on building long-term relationships with your customers.

Rule #10 – Using the Failure Excuse: Just because everyone else in your industry or niche is failing doesn’t mean that you have to! Your business is not failing because of location, lack of jobs, poor economy, or even your product/service. Don’t fall into those excuses. Make yourself different from every other business out there! You can succeed, but you must believe that you can!

Now, enjoy the video of this teaching recorded LIVE on the John Di Lemme Show…