Time and again young leaders and new consultants approach me with questions regarding re-investing in their business. Simply put, a savvy consultant does need to set aside a certain amount of profit to reinvest for business growth. The challenge comes, however, when consultants are earning so little in the first place, that they just don’t think it’s possible. The profit margin is either too slim, or they’ve already spent it on living expenses.

It’s a dirty little secret that most consultants don’t want to talk about or admit…

Direct sales companies attract consultants with great income potential, which leaves many consultants seeing dollar signs. It’s not the fault of the companies – far from it. Commission and compensation rates are very clearly outlined on every consultant agreement and policy manual. What’s missing, however, is any training on financial management or fiscal responsibility.

Again, this isn’t the problem of the direct sales company. It’s not even part of the “jurisdiction” of a direct sales company. Financial management is the responsibility of the consultant, and yet, too few leaders are offering any training to help their organizations make sound business decisions with their earnings.

Here are a few simple considerations to help you make re-investment in your direct sales business a little easier:

1. Split your profits on a percentage basis. Even if you’re not making a ton of profits each month, if you allocate specific portions of your income for different purposes (debt reduction, savings, team recognition, supply replenishment, etc), it becomes easier to stay consistent in reinvesting appropriately. It’s hard to set aside $20 from every show when you have that “bomb show” that only has $100 in sales. Opt instead to set aside a specific percentage of each profit check to make things easier.

2. You don’t need every new-fangled seasonal product. When you’re strapped for cash, one of the worst things you can do is plow more money into seasonal merchandise that has a short sales “life span”. You don’t need to purchase every new product that’s coming out in the holiday catalog, just to have it on hand for clients or team members that can’t afford to buy it for themselves. Buy what you will use – or what you don’t mind having around at the end of the season if and when it doesn’t sell.

3. Curb “consultant cost” purchases. Most consultant offers do not give you sales credit or commissionable credit. These are often advance purchases or end-of-season clearance items that companies offer to you at a special price. Unless you can turn around and sell the product, or you know your clients will go crazy for it (in the case of advanced purchases), it makes more sense to wait it out until you can buy it on a regular show order.

4. Double (or triple) dip when possible. If your company allows, add your purchases to an existing show order, take advantage of unclaimed host credits, and still get sales credits for the replenishment orders you’re placing. Not every company allows this kind of thing, but if your company does, take full advantage of it. You’ll be reducing your costs to re-stock your kit, plus many companies offer bonuses based on sales levels. It makes sense to let your own purchase count toward those levels whenever possible. Additional host bonus items can later be used as booking incentives or other gifts – generally at no additional cost to you.

5. Track your deductions. Tax time rolls around once a year, but keeping track of the money you spend should be a regular occurrence. Mileage, inventory, a business cell phone and other expenses can add up during the year yielding a substantial deduction come tax season. Talk with your tax preparer or book keeper for additional information.

Direct sales professionals serious about running a profitable business scrutinize every expense and look for a solid return on their investment. If you want to make the most of every dollar you earn, you owe it to yourself to look closely at every penny you’re spending in your direct sales business.

If you need additional help navigating cash flow and building a strong financial foundation in your direct sales business, consider Direct Sales 102. Designed for direct sales pros, Direct Sales 102 shows you how to build a financial foundation for success. Lisa Robbin Young offers direct sales coaching and training to direct sales professionals looking to grow their business like a real business instead of an expensive hobby. Sign up for her free weekly ezine at http://www.homepartysolution.com.

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Operating a home business is just like running any other business, from the space you work in to the tools you use. Your home office will be crucial to your business because it will contain everything you need to work efficiently. One of the biggest challenges faced by many business owners who work from home is organization. Many home business owners do not invest in the most important asset of their business, the office!

These are simple things and yet many home business owners neglect them. In order to make money from home, you must invest money in your business. Start with the basics so that you can stay organized as your business grows.

Organization is important to the many tasks that must be completed in the span of a work day. The more organized you are, the easier it is to keep up with information and make business transactions. Below are a few tips that will get you started down the right path.

Maximize your desk space. Your office desk will be the focal point of the room. Whether you have enough space for a large desk that will enable you to spread out and work, or limited space that includes a small desk and sturdy set of bookshelves, the more you maximize your space the better. No matter the size, always keep the desktop as clear as possible of papers and other tools. If you require a lot of items when you work, consider a desk with several drawers. That way you will be able to designate a place for everything and will know exactly where it is when you need it.

A filing cabinet will be another important investment. Even a small one will be equipped to hold business files and tax records. Such documents need to be on hand at all times because you never know when you may need to access them.

Bookshelves can also help maximize your workspace. Even if they are small in stature, as long as they are sturdy and able to hold any business-related books and manuals you are in good shape. This is especially important if you need to access catalogs and other materials quickly. Bookshelves also enable you to organize your books in an orderly fashion so they will be easy to find.

Taking the time and investing the money into your home office will pay off in the long run. These basics will set you up for success working from home. Learn more direct sales tips at the direct sales resource center.

Deb Bixler is a direct sales trainer who specialized in home party plan training. She created a home party plan business capable of replacing her corporate career in only 9 months and now teaches others how to do the same.   http://www.createacashflowshow.com/

Summer can be a dangerous time for direct sales consultants. With school letting out and families travelling, many consultants hang up their consultant hat for the summer and look to “start over” in the Fall. The excuses are plenty, and the reality is that when consultants do this, they’ve paralyzed their business growth and their cash flow.

In a family full of teachers, I learned first hand the importance of balancing cash flow. Most teachers earn an income nine months of the year, and then have zero income during the summer – the time when they’re most likely to be able to enjoy it! It becomes important to balance cash flow throughout the year, in order to maintain your sanity during the seasonal income slumps.

Here are a few tips to help you even out your cash flow this summer:

1. Keep working your business. This is probably the most important factor. Yes, people are travelling, but many are not, and it’s a good time to schedule one-on-one appointments or hosting recruiting interviews with teachers who are looking for some extra income. Your show sales averages may not be as high, but some income is better than no income.

2. Find your annual averages. I’m a big fan of knowing your averages. If you know that you spend $1000 a month on average, you know that you have to bring earn at least $1000 each month to keep your nose above water.

3. Save a portion of your income during good times. Set aside a portion of your income during the good months so that you won’t have to suffer during the lean months. Later in my aunt’s teaching career, the school district gave her an option to take less money each month during the year so that she’d have a summer paycheck. The automatic nature of the “deduction” made it easier for her to adjust her budget to accommodate living on less.

4. Live on less. Decide where you can cut expenses, save money, and tighten the belt for the summer. This is the hardest solution, because we are a nation of spenders, and once we find a “comfort level”, it becomes difficult to live on less.

5. Eliminate debt. Debt is a claim on your income. Lower your debt, and you’ll need less to live on each month.

Running a real business is about building something that will withstand financial hardships – including times of lean cash flow. These simple ideas will help you move through the summer with your sanity in tact.

© 2010 Lisa Robbin Young.

If you need additional help navigating cash flow and building a strong financial foundation in your direct sales business, consider Direct Sales 102. Designed for direct sales pros, Direct Sales 102 shows you how to build a financial foundation for success.

Lisa Robbin Young offers direct sales coaching and training to direct sales professionals looking to grow their business like a real business instead of an expensive hobby. Sign up for her free weekly ezine at http://www.homepartysolution.com.

Whether you joined your company for the additional income, the fun and products, or the tax benefits, taking the following steps will enable you to get control of your business finances for higher profits and greater peace of mind.

• Control your spending. Write down in advance what you will need for your business in the coming month. First, focus on business essentials such as catalogs and show supplies. Then be conservative for additional expenditures like buying equipment for your office or supplies for organizing.
• Be creative. Necessity is the mother of invention. Find ways to reduce unnecessary expenses by thinking creatively. Invite a prospect to your home for dessert and coffee rather than taking her to lunch at a restaurant. Make long distance calls to customers and hostesses on your cell phone if your plan includes free long distance minutes. Find new ways to save!
• Get Organized. Disorganization not only costs you time; it costs you money as well! Avoid wasting money on too many copies or duplicating forms by organizing your files. In addition, have a place in your wallet and a file in your desk where you place receipts for business expenses. Imagine the thousands of dollars in tax-deductions you may have missed simply because you did not keep a receipt.
• Track every business expense for the month. At the end of each month, total what you have spent on your business. Consultants who are maximizing tax benefits keep two totals: “Essential Expenses” and “Maximized Write-Offs” so they can see the additional benefits they are enjoying from their legitimate home-based business expenses. Write the highest total on the outside of a 9X12 envelope for each month.
• Track your income. List all your income for the month on the outside of the envelope as well. These will include Retained Profits (the 30-36% you keep from each show), Overrides (the amount earned on your team’s sales volume), and Bonuses (kit and volume bonuses).
• Compare income to expenses. Subtract your expenses from your income and evaluate the results. Keep in mind that if you are maximizing your tax benefits by writing off every legitimate expenses you would incur whether you had a business or not, you may show a loss that does not truly reflect the profitability of your business. This saves you tax dollars!
• Make necessary adjustments. How can you reduce expenses next month? Are there expenses, such as mileage that you are not taking advantage of? How can you increase your income next month? These questions will help you get greater control of your business finances and give you a feeling of confidence and success!

Jane Deuber is a Co-Founder of http://www.DSWA.org (the only association dedicated to the needs of the independent party plan and network marketing professionals). Discover what makes the DSWA so unique. Listen to three motivating and informative free teleseminars by visiting http://www.mydswa.org/tele_class.asp

One of the most commonly asked questions of home based business entrepreneurs, is, how do I get organized. Yikes.

Really, where to begin. I suppose the most obvious thing is that you absolutely MUST have some form of designated area in which to work your business. Now this would preferably be a room of its own where you could close the door and work without interruption and make phone calls without background noise. However, if this is not possible, at least make some logical working space for yourself where you keep all of your business tools. Without this, I think it would be next to impossible to function with any degree of efficiency.

Having an office space is simply not enough, you must organize it. Equipping yourself with office / administrative tools is the first place to start. Make yourself a list and get the supplies you need. A filing system is also very important as I have yet to come across anyone who works efficiently with stacks of paper everywhere.

If you have limited amounts of time, which most of us do, the last thing you should need to do is clean your area or look for important information when it comes time to work. You will burn up all of your time with this wasted time. What you should be doing with this time is making money.

A common hurdle that many of us in this business have is that many of us have small children. This does not mean however that it is impossible to get anything done or be successful, people do it all the time!

What you need to do is think ahead and plan ahead. Figure out when it is you can work on your business and when that time comes – work on your business. Refer to your task list and calendar to tell you what you are supposed to be doing. Do not make excuses to yourself as to why you can not get these things done, when the time comes, JUST DO THEM!

Jillian Middleton spoke to Usborne consultants at the Calgary convention in January 2009 about setting Store Hours and this is one of the best systems you could possibly implement. You set the hours in advance that you will work in any given week, (they can change each week) and then, You Stick To Them. Ask your supervisor for more detailed information on setting store hours.

Learning to work with children around is unavoidable. If you think you will be able to run your business without ever making a phone call, sending an email, assembling paperwork, planning your schedule, packing for a party, cleaning your office area or any other business related task while you have children around you are mistaken.

Children who grow up in homes where mom does things other than tend to the house and children adjust very quickly to this. They can even be a big help when they are old enough and you will have built in assistants! Until this time though, you have to be creative and learn to work around them. All kids can play independently for short periods of time while mom works and they will become accustomed to this very quickly. This way, you will not be restricted to nap time, and after bed time to do your work.

Another thing you can do is bring in a babysitter while you are home working to play with the kids. You will be able to get tons of work done and will still be available if they need you. Bringing in a babysitter one or two days a week after school for 3-4 hours will make more of a difference than you could imagine. Of course, for those of you with unlimited help and babysitting won’t have to worry about this but for everyone else, it’s a great option.

Being able to get more done in your allotted work times by being organized and utilizing help will make sure that you are able to stay balanced. Your work will get done in your designated work times and then you will have the time you need for other aspects of your life.

Brandy Burge has been in direct sales for 6 years. She is in the top 10 consultants in Canada with Usborne Books at Home, a Sales Manager with Norwex Enviro Products, and proud owner of NorwexWebsites.com and DreamcatcherWebStudio.com. She does all of this with 2 small children at home.

Now, as far as I am concerned and I think as far as the business world is concerned, the days of recipe card record keeping, birthday and phone directory books and hearing a knock at the door followed by “AVON calling” are gone – and they are not coming back!

If you are living in the stone ages, you will not have a business that thrives or even survives in the 21st century.

So, lets fast forward to where we need to be and get settled right in there.

Managing Your Customers – As an entrepreneur, you don’t want a cap on your customers; you want an endless ever increasing number. You also want to be able to maintain accurate information on each one since you will not possibly be able to retain all of this information as your numbers grow.

An electronic means of tracking your contacts is definitely the way to go. Using a program like Microsoft Outlook, or something similar is vital in tracking contacts and their information when dealing with large numbers of people.

There are just a ton of different programs that you can use for contact management, time management and maintaining communication. Have a look at programs like Oprius, I-Contact, Skype and Maximizer and see if they might work for you.

The advantages of using an electronic system are:

• Breaking down your contacts into endless categories and sub categories such as: Previous Hostesses, Previous Direct Sales, Catalog Requests, Team Members, Head Office Contacts, Other Consultants, Exhibit Contacts, and so on.
• You are able to store a vast amount of information on each of your contacts including both personal information and information on their previous business interactions with you
• You can use the Calendar function to manage your time, schedule appointments and set reminders for yourself for things like:  Home Parties, Phone Calls to be made, Customer Service Calls, Re-Book a Previous Customer, Etc.
• You can use the Task List as an ongoing to do list and eliminate all of those post it notes!
• You will be able to do focused marketing directed at specific customers based on who they are and what they are looking for or are interested in.

If you have a 21st century handheld, you now have the power to take all of this important information with you wherever you go. People without a cell phone these days are few and far between. If you are in business for yourself, a cell phone is definitely a “Must Have” item. With most plans, when you sign a new contract, you get a new FREE phone or you can pay a minimal amount to upgrade to a higher model.

Is your contract almost up? Find out when your contract expires and make a Blackberry or similar device your next “Must Have” item.

When you have a Blackberry, you can synchronize your Blackberry to your computer daily to keep on track. This way, you can record information and book appointments from anywhere, any time.

You will never double book and never have to tell ANYONE that you will have to get back to them after you check your calendar.

A key piece of information in the home party business is the directions to your hostess’s house which you can record in your contact file in your Outlook program. Unless they move, you will never have to ask your hostess to repeat the complete directions to their house for you again.

Having your own business website is a given today. If you don’t have a website in today’s society, not only will you miss a huge, essential piece of the pie, but you will also not be perceived as having a viable, successful, modern business that they just might want to be a part of. Your business website will not only provide potential and existing customers with current information on the business and the product, it will also connect them with members of your team in their area.

Another 21st century tool you might find useful is the Tom-Tom, or a similar device. Never again will you be late for an appointment because you’ve gotten lost on the way. When you have one of these in your vehicle, you need only to put in your destination address and your are guided right to where you want to go. A lifesaver for anyone who routinely gets lost or who can’t follow directions – you know who you are!

Brandy Burge has been in direct sales for 6 years. She is in the top 10 consultants in Canada with Usborne Books at Home, a Sales Manager with Norwex Enviro Products, and proud owner of NorwexWebsites.com and DreamcatcherWebStudio.com. She does all of this with 2 small children at home.

Are you in a direct sales home business and trying to figure out, like me, how to streamline your systems so that you can spend more of your precious business time working on income generating activities? As a home business owner, what you want is productivity, not activity.

Well, I’m here to tell you that there are some simple steps you can take now to help your business for the long term and an Autoresponder is one of those ways. An autoresponder is actually an online program that takes a prewritten email message or series of messages that you’ve created and sends it out automatically when someone signs up at your landing page or squeeze page.

That sounds a whole lot more complicated than it really is. It’s actually pretty easy, let me give you examples that might work in various aspects of your direct sales business to help you see how easy this really is:

1. Follow Up On Leads And Tracking Do you advertise either online or offline? Now with an autoresponder you can put an email address into your advertisement so when one of your potential customers or prospects emails you to find out more about your company, they are automatically sent your initial packet of information instantly. You can even put a different email address into each ad, making it easy to track which ads are producing results and which are not.

2. Generating Leads – Everybody loves free things. Do you have a coupon or e-book that you can probably give away to potential new customers or recruits? Set it up in your autoresponder and create a web form (all free with most systems) that you can place in your blog or on your website. Then you just add a quick statement like, “Get information and get free gifts, like it?” sending interested prospects to your autoresponder where the gift and the information are sent to them automatically!

3. Motivation With Contests – Set up a series of contest emails for either your customer base or your downline. For instance, have a “scavenger hunt” through your catalog and use the autoresponder system to create the excitement over a series of days.

4. Newsletters For Your Downline – If you’ve built a team of distributors under you, you’ll want to stay in touch with them regularly. Now an autoresponder can do that easily. You can set up a first email with a “Welcome to my team” and then you broadcast your team’s newsletters through the list.

You can also greatly boost your team’s production by helping your new consultants get off to a great start in their new business with a series of email training messages geared toward those days when they are waiting for their products to be delivered to their home. Enthusiasm during the first days are really important.

And also it can be used to solve general problems, is there a specific area or problem in your direct sales business that seems to have all the members asking the same question on that specific problem? Set up another series of emails specifically for that problem’s topic and set up your team members there as the questions come in.

5. Newsletters For Your Customers – You can also stay in contact with your customers by using an autoresponder email series just like you do with your downline. Make an automated welcome message is way better than no welcome message at all.

6. Leadership Communication – As your direct sales business grows, you’ll need to have leaders on your team. You can to things like setting up a series of emails congratulating them on their promotion, success and encouraging them in their new role as leader. Many people in direct sales have no idea what it means to lead a team of their own because they have the habit of being led all the time and you can set up a system to get them trained, mentored, and equipped as well and have it work for you continually while you’re doing your things, it’s completely automated.

I’m guessing that most of you, unless you’re brand new to direct sales or a home business, already have much of the information for many of the above idea. With an autoresponder, it’s just a matter of action that uses the information to the system where it can work for you, even when you’re off doing other things. You should really give it a try and almost all autoresponders have a free trial offer so you can check out how they will greatly boost your business before you decide to do it.

Tantawi Sagara is a leader in Internet Marketing and Social Media, offering a chance to people interested in changing their life and learn directly from a leader, read HisStory on his blog, and get more tips on http://freeforyoutosearch.com

One mistake that many individuals who are involved in home party plans make is they do not venture past the direct sales training offered to them by their company. While it is true that any reputable direct selling company will have a training plan in place; to effectively reach your business goals you will want to constantly educate yourself to enable your direct sales business to grow into a lucrative career.

Investing in Your Business
We have all heard the stories of those within our companies who excel at building their business, constantly being booked for home parties while managing a downline and repeat customers. Do they have a secret weapon? Probably not. What they do know however, is that to be effective in direct sales they need to recognize their strengths and weaknesses and further invest in themselves. How they do this is by going beyond the training offered to them within their direct sales company.

Enhance Your Current Direct Sales Training
One good way to enhance your direct sales training is to make a list of your own strengths as well as a list of areas that you would like to improve. Do you take rejection personally? Do you have a hard time asking for bookings? Perhaps your direct sales company offers a great fund raising program but you are too nervous to approach prospective clients. To build a successful business you may want to look for training materials such as books, ebooks and DVDs that can help you overcome these obstacles.

Before purchasing any training materials you can ask others in the business for recommendations such as helpful websites, books and e-books. You may even consider hiring a mentor or marketing coach to help you overcome your hurdles step by step (if your budget allows). You can also start your search yourself by looking for recommended books and e-books online, read reviews and don’t forget your local library for free resources.

A career in direct selling is not for everyone. Some will give it a try and decide that it is not for them while others may find themselves jumping from one home party plan to another thinking that maybe the next one will be the business that finally helps them achieve success. This seldom works, especially if they have not overcome the obstacles needed for them to succeed. If you are really serious about building your business then start by searching various websites online geared toward home party plans. Some, such as home party plan.org have done a lot of the work for you by sharing direct sales training resources to get you started.