10 ways to succeed in 2006

Q: I have read your columns and was wondering if you had some suggestions for starting the year off right. My resolution is to make more money.

— John

A: Most entrepreneurs have New Year's resolutions that are really quite simple: To grow their businesses, have more fun, and maybe have a tad more free time. Certainly, there is no better time than January to think strategically and put a plan in place for accomplishing these goals.

So to help you out, here are my Top 10 Ways to Succeed in 2006. Take and use the ideas you like, discard the ones you don't, and just remember that even a small change can reap big rewards.

10. Review your Web strategy: Whether your online presence is a simple web site that informs customers who you are or is a site that engages in full e-commerce, there has never been a better time to expand online. The Internet has created a world of new markets. There is a lot of information out there to guide you, and plenty of resources to help you. Don't miss the greatest opportunity for small business expansion to come along, maybe ever.

9. Work smarter, not harder: I once had a boss who told me, "You will never get rich trading time for money." His point was that working for a certain dollar-an-hour meant that financial security would always be elusive. Of course he was right. The same is true in our businesses. It's not just about working hard. The great entrepreneurs work hard, but they also play hard and work smart.

Working smart means hiring people who have expertise in areas you do not. It means creating strategic partnerships to expand your brand. It means creating a sales channel that allows you to make money while you sleep. It means bringing in an intern to do the mundane tasks so you are free to bring in more business.

8. Cut your overhead: There are two ways to make more money in your business: You can sell more or spend less. Most of this column is about selling more, but remember that cutting costs creates cash flow too.

For example, if you have not shopped for cheaper insurance recently, you might find lower rates with a new carrier. Or consider bringing production of your marketing materials in-house. Or negotiate with your suppliers.

7. Reexamine your business structure: There are essentially four ways to own a business. It can be a sole proprietorship, a partnership, a limited liability company (LLC), or a corporation. Most small businesses are sole proprietorships and while those are simple and easy, know also that LLCs and corporations offer legal protection from business debts and they offer a possible tax savings. Check with your accountant.

6. Contact your contacts: One January, I sent out a letter to all of my clients telling them that I was expanding my business into some new areas and thanking them for their patronage. That $100 mailing generated almost a hundred thousand dollars in new revenue over time. Use the New Year to contact your contacts, and give them a reason to patronize your business again.

5. Invest in training: Training need not be expensive, but it can make a huge difference in the bottom-line. Training (either for your staff or yourself) can be done online, at a community college, or via a private training company. Find a subject that will benefit your business (i.e., something you may be weak in now), and learn how to do it better.

4. Raise your rates: The New Year is a logical time to notify customers of a fee increase. If you are worried about scaring off customers with a rate increase, test it on a few customers first. If you receive a negative reaction, you can always go back to your old prices, but if you have not raised your rates recently, you may be pleasantly surprised. Tip: Give them plenty of notice.

3. Receive your receivables: Too many invoices fall more than 30 days past due. Assign a staff member to your dead-beat clients, or prioritize this job for yourself. Worst case: Sell the bad debt and at least get something for it.

2. Get new customers: Look for new customers in new ways. Encourage everyone — from receptionist to your spouse — to bring in new business. Have a contest or some other incentive.

And my Number One way to Succeed in Business in 2006:

1. Get bigger and better customers: Not only should you get new customers (No. 9), but to really get ahead, target the sorts of customers who can take your business up a notch. Whether they are larger corporations with contracts to be had (check out BusinessMatchmaking.com), or simply a better client base (buy a good list from a list broker), the key is to locate customers who can add to the bottom line and then go after them.

May 2006 be a successful, fun, prosperous year for you and your business.

How did Steve answer other questions? Read his previous columns

Steve Strauss is one of the country's leading small business experts, a columnist for USATODAY.com, and the author of the "Small Business Bible." If you would like to have Steve speak to your group, or to sign up for his free e-newsletter Small Business Success Secrets!, visit his Web site. Have a question for Steve? Send him an e-mail.