I recently completed my 1^st half marathon. I took the time to research training programs and found one that fit into my busy schedule, discussed the time commitment with my family and found a buddy to train with. I had a solid PLAN. I had a solid SYSTEM for training. The day of the race I felt ready, and because I trained properly, the days after the race I felt great. You see, I had trained for 18 weeks prior to the race and my body was ready for 13.1 miles (of hills!). I spoke to many runners that day who hadn’t finish their training, or didn’t have a program they were following to train. They randomly selected a program and didn’t develop a system to make them successful. On the day of the race, those 13.1 miles were grueling for those people.

It came down to they had a clear goal (running the marathon) but didn’t have a plan for training so that they would succeed. As the Holiday selling season rolls around, it’s easy to get lost in the plethora of ideas to help you succeed. But sales ideas (Holiday Trunk Shows, Secret Santa, MK Bucks, Holiday Open House) are not nearly as important as your System for success. You need a Plan you believe in, a Plan you can and will execute with a profit intention, and a way to measure your progress. Otherwise, you’ll end up like those runners who didn’t have a System for preparation, which swayed their success on race day.

Four Little Steps toward a Profit Plan

Step 1: First thing you need to do is come up with your ideas. How do you want to try to make extra Mary Kay income this holiday season? Take a few minutes to come up with a BIG list of ideas you’ve collected (need some, write me!). Take a little time, do a little research, ask successful consultants and directors what has worked for them in the past. Soak up their tips and knowledge. No Idea is too “out of the box” at this point. Write a huge list of ideas.

Step 2: Filter these ideas. DON’T skip this step!!! Evaluate each idea and see if it fits for YOU! The difference between those who are wildly successful and those who are trying everything and not getting results is… the ones who have a system can see which ideas will work BEFORE they spend the time on it. Does it excite you? If so you CAN sell the sizzle! Does it make you want to throw up? If so you’re probably not going to do it (at least long enough to see the results). Has this method worked for you in the past? How can you modernize it for 2011? Does it fit into your time frame (both time you have and effort you are willing to put in)? Do you have the resources you need (i.e. lots of gift wrapping/basket/gift supplies, product on hand for cash & carry, list of contacts, etc.) If it doesn’t excite you, or you don’t have what you need to make it work, go to the next one on your list of ideas.

Remember, you don’t want to have to put a ton of money out to make an “idea” work! That directly decreases your PROFIT.

Step 3: Once you have selected the BEST idea for YOU… go test it out! Find 3 people to Book, or 3 companies to sell corporate gifts to, etc. Give it your ALL! Figure out your non negotiable schedule of INCOME producing activity toward this idea. Figure out your overhead cost (and try to keep it to a minimum!). Figure out your best contacts and start contacting them right away. ACTION! Action is the key. If you are giving it a lot of time and there is no monetary results… move on! You will have a list of 50+ ideas… go to the NEXT best idea for you on the list and repeat steps 2 and 3! Once you get the hang of it you will be able to recognize your hot buttons and your hold back items more quickly.

Step 4: Measure your results with the numbers, not just your feelings. What was your monetary goal? Use Ascend Live to track your extra income in a separate envelope. Evaluate the income vs. expense to see if this was a great idea for you or just a good one. Then intentionally spend that extra income with purpose! Dare I say plan what you will do with it BEFORE you earn it?

Pep Talk

Everyone loves ideas and “tricks” to the trade… but be aware! All the tips in the world are useless if you don’t USE them! Don’t buy into your own fear based excuses. Don’t stop before you start! If you find yourself making excuses, ask yourself, why you haven’t already tried this idea? What are you afraid of? Then feel the fear and do it anyway, but with a PLAN you can measure!

The Holidays don’t have to be a time of frenzy and feeling overwhelmed. If you take the time to PLAN and develop a system you can make that extra income and ENJOY the holidays all at the same time!

Be sure to visit us on our Facebook page and share what worked for you and what didn’t. We can’t wait to hear about your fabulous results!

People from all over the MK Community have been reaching out to us asking for some help in interpreting the news of the last week. I love that y’all trust Ascend on money stuff; you made me blush with delight! Alright all you savvy business women, let’s dig in.

The hoopla that went down around here while you were at Seminar will affect you both directly and indirectly. Here are the highlights in plain English:

· The Debt Deal: Congress and the President reached an agreement to RAISE the debt ceiling so that we didn’t default on our debt. (Need the 5 min crash course on the debt ceiling? Click here) This allows the government to borrow more money to make minimum payments on past loans. Double ugh.

· Strings Attached: The Debt Deal has strings attached. The government promises that it will cut spending over 10 years—the spending cuts will be will be felt in places that are considered “negotiable” (like Defense and Education) because that no politician is willing to go elbow deep in REFORM in the months leading up to an election year.

· Time for Vacation: Once the Debt Deal was brokered, and a congressional committee was appointed to figure out how exactly to exercise the Plan, they decided they needed a vacation. Off they went on “recess” against the express wishes of the President. Needless to say, the President isn’t keen on their choice and has asked them to come back to Washington.

· Kicked While Down: Days later, the sovereign USA got kicked in the gut while it was down: credit rating hit and the stock markets fell.

· AA+ Isn’t Good? Even though we met our deadline to pay the creditors, the rating agencies downgraded USA’s credit score. (more on why below) The credit score for government and business is based on how many big A’s you have next to your name. AAA is the best.

· Before You Say Who Cares: A worse credit score means the government will need more money for the same bills! That affects everything. Remember, your Income is the collateral the Government put up to borrow (more) money.

· The Double Whammy: The GDP (gross domestic product) and Unemployment/Jobs Report came out the day after the Debt Deal was brokered. It looked and smelled rotten. So Wall Street freaked out and dropped 10.8% late last week! Imagine 10.8% of the money in your checking account just disappearing. That’s exactly what happened to most of our IRAs and investments.

Holy Stinky Election Year

Look, there’s no pretty way to say it. As the world watched our government play politics until 11:59p something became very clear: The United States of America cannot make a decision to save its economic life… especially not with the 2012 elections just around the corner. Republicans are standing firm on not raising taxes, so they won’t vote on anything that smells of tax increase. Democrats are standing firmly on their commitment to not touching Social Security, Medicare as a way to decrease government spending. Impasse.

Be careful dear entrepreneur that you don’t bury your head in the sand, or throw up your hands in the air. Nothing is more important to our economy than the work you do in your business. You still have a fantastic business model to work with—so do the best you can with what you’ve got. Don’t wait for things to happen around you or for reform, do it yourself. You are in control of your Income and Expenses. Nobody is going to do it for you. And with high levels of unemployment, many people need leaders they can follow into starting their own business. Are you that leader?

If you want your voice heard in Washington use your liberty to make phone calls. Tell your Senators and Congressmen to go back to work and to courageously embrace reform. Tell them how you feel about the things you learned here today. If you have investments (or your spouse does) that are in the stock market, call your financial advisor with questions and ask if changes need to be done to your portfolio.

Most of all be diligent, work hard, be a good steward of your finances, and keep on keeping on!

LeAnne

PS: For the record I’m not an economist… I’m a professional financial advisor who just happens to own Ascend Live, which helps the Mary Kay professional keep more of what she makes. Sign up for Ascend at AscendLive.com

Here we are! The last month of the Mary Kay Seminar year… Did you set goals? If so where does it look like you’ll end up? Here are 3 common places you might find yourself in June…

1. The “WHOO HOO” Gal! You already met your goals or can easily achieve them by the end of June. Congrats to you. You must have had CLEAR goals and were disciplined to do the work it takes to get you there! You broke it down and did what you had to. Challenge to you = what is your next step? This is no time to rest on your Laurels!

2. In the S-T-R-E-T-C-H Gal! You are so close to finish your goal but it’s going to take a real PUSH to get you there. You can do it! Time to break down your goal to daily (even hourly) steps. Don’t stop till the last minute of the last hour of the last day! This is where you’ll need to dig deep and PUSH! Challenge to you = USE your 6 most important things list and weekly plan sheet… without a plan this won’t happen… don’t give up when you are this close!

3. The “Not gonna happen” Gal? You did set a goal (or didn’t really set a goal) and no matter the amount of push it’s just not gonna happen this year. That’s OK! Really it is… but what are you going to do now? Challenge to you = this is time to rededicate… This is not the time to take the month off… build your momentum for next year NOW! Set a goal, map it out, set the dates, figure out the baby steps you’ll take to make the bigger goal a reality! Feed on the momentum of those who are stretching.

So how does this tie into Money Management you ask? We believe if it’s about your business… it’s about money! Regardless of which of the above 3 common places you might find yourself above Money Management played a part in either you achieving or not achieving your goals. The role could have been a positive or a negative role, but I can pretty much guarantee money played a role. Was money your motivation? Did you want a special trip for your family? Did you want to purchase something special for your kids… was earning extra money for your family what made you put on your pumps everyday and get out there? Maybe money wasn’t the “reason”… maybe you wanted the recognition of your achievement, or just loved putting product on your customers faces. There are LOTS of positive reasons involving recognition and money… BUT there are negative ones too, even if your intention was positive. Take a moment to evaluate your goal and what you did to reach it… did you manage your income well to not deplete your inventory and keep proper records? Did you put yourself into debt to reach your goal? Did you include your bookkeeping in your goals? Money management is critical in any successful business. This leads me to the 3 types of money managers. The kind of money manager you are can play a part in achieving your goals or not!

1. We have the Achiever: This consultant is diligent and works in her business books weekly. If an IRS auditor showed up on her doorstep she’d be ready! She knows how much of her money is designated for Inventory and how much is her profit and has a good idea of how much it costs her to run her business. Her shelves are stocked and she can CONFIDENTLY recruit because she knows she is making money. She does the 50-5-5-40 split religiously and does not comingle her business and personal finances. She is disciplined and no goal is too big for her to go for it!

2. The Striver: This consultant really tries but she just doesn’t “get it”. She doesn’t have designated time or a system to manage her business finances… She’s unsure of her budget but keeps trying. She has some records, maybe a few holes in her inventory, and doesn’t really feel like she’s making money. She’s wondering where her money went (because she didn’t tell it where to go!). She wants to recruit but feels out of integrity because she’s not really sure if she’s making money or not. She’ll have some information at tax time but isn’t as prepared as she could be. She sometimes stretches by purchasing items she doesn’t necessarily need.

3. The Party Gal: This consultant figures it will all work itself out. She doesn’t have a separate checking account for her business. Doesn’t have the info she needs at tax time. Doesn’t really know anything about business money management at all. She’s having a great time but is slowing going further and further into debt.

Goals and Money Management have a few things in common. They both require a PLAN and Discipline to make them work. This is where Ascend Live comes in… Ascend Live is an easy money management tool that takes the mystery out of business bookkeeping. Want to see it in action? Why not decide to take our Ascend Live for Consultants webinar or our Ascend Live for Directors webinar? During these free webinars you will learn the basics of money management every director and consultant needs to know! We’ll show you how a dedicated 15 - 20 minutes per week to your bookkeeping in Ascend Live will help you know where your money is going so you no longer have to wonder where it went! You SEE the money and feel confident when selling and recruiting. Knowledge is POWER and Power is CHANGE! Decide where you want to end up this time NEXT year. PLAN it; get the tools you need, see it, believe it! The simple act of managing your business money can make a HUGE difference in your entire business life! Prove us wrong Visit our Webinars Page to sign up for the next free webinar! We’ll “see” you there!

Due to the overwhelming gratitude for our last article, we’re answering questions that rolled in about the new product changes & how to get them on your shelf without breaking the bank.  Before we begin… Don’t forget about all the practical training videos you can access in our Training Center.  This is perfect time to brush up on your skills on handling Discounts and Giveaways.  There’s an awesome 5 minute video in The Training Center called “How to replace discounts & Freebies without losing your mind!” or CLICK HERE to view it.

Given all the questions around this season of change in Mary Kay, we created a special Webinar called “Smart Moves with New & Expired Products!”   It’s on Wednesday, October 20th, 2010 at 6 PM PDT.  We will SHOW you how to track and save for new products stocking LIVE!  Click here to register!

It can be overwhelming when so many products change at once.  If you are intentional about your business, intentional about your inventory and intentional about making a plan you can have it all… without breaking the bank!  Share some of your own tips on our Facebook page for “Ascend Live” or on our Facebook Fan page “the Training Center by Ascend Live”. We can’t wait to hear YOUR ideas!

Q: Dear Ascend, how do I properly handle expired product?

A: First you’ll want to know that most Mary Kay® products are produced to have a minimum shelf life of 3 years from the date of manufacture.  If the shelf life is less than 3 years then the expiration date of the product must be clearly indicated on the package.  You can find a list of products with expiration dates and how the MK coding system works in Product Central under “product presentation & expiration” on InTouch.   You will want to identify expired or unsellable product (e.g. if it isn’t in the Look Book, you may not be selling it).  Expired product needs to be removed from your shelf and tossed; unsellable products may be donated and you may deduct it. It is way better to give it away for a deduction then to let it sit there collecting dust, in our humble opinion. Talk to your accountant for more specifics on handling unsold, expired product where your taxes are concerned.

Q: Dear Ascend, with all the new items and new packaging coming in, how do I decide which items to keep on hand and which to move?  I have customers who LOVE these products and don’t want to disappoint them when they are no longer available.

A: You are a smart business woman.  DON’T stock up on product that is “going out,” that is not a smart move!  DO think of fun, creative ways to make your customers “want” what you have, yet dangle the carrot of what is yet to come.   It really boils down to embracing change.  No one really “likes” change but is a necessary part of life and your business.  It is a smart business move to have current products on hand… Your customers will adapt to the new items offered once they are introduced to them and have a chance to try them.  Eventually they will need to switch over to the newer offered items as your inventory of “previous items” shelf life will come to an end.   You really don’t want to keep more on your shelf than you need to as it is a depreciating asset!

Q: Dear Ascend, I am so excited by the new packaging and new products coming out.  I don’t want to miss out but I also don’t want to increase my credit card debt.

A: You don’t have to!  Having inventory on hand is what makes a Mary Kay consultant stand out, BUT your clients know you keep the most ordered items on hand.  It is OK to tell them… You know I’m out of that.  I’m happy to order it for you and will get it to you ASAP.  If it really bothers you, you can say, “I’ll have a special gift for you for waiting.” Then include a small sample for her to try as a gift.
Want another “real world” example?   One of my girlfriends recently told me she went to her local salon to purchase her hair styling products.  When she got there the shelf was empty.  The salon owner told her they are on order and to stop in a few days later. So she did.  Believe it or not people ARE used to waiting for things they love from time to time.  It’s OK!

You also might want to keep this in mind when deciding to purchase on a credit card… The longer you keep a balance due to inventory purchases on your business credit card the less potential profit you have.  Every month you pay the % interest on the product sitting on your shelf your profit is DECREASED by the % rate – until it ultimately means no profit can be made on the sale because the potential profits have been spent on interest.

Q: (this is a similar one!) Dear Ascend, I intend to order the new items slowly and build my inventory over time…What if my customers order more than I have?

A: Again, if the item is new you can say something like, “Wow that item is flying off my shelf, I have some on order and will be sure to reserve one for you when it comes in.”  OR “I am waiting on my shipment including that item to come in. I’ll have it for you by next week”.

Q: Dear Ascend, How can Ascend Live help me keep track of the funds I need for these changes.

A: Ascend Live is a money management program that gives you a windshield to plan ahead for future expenses.  This type of planning is one of the greatest benefits of having Ascend Live.  You can simply create a custom envelope called something like “Savings for new inventory” or “out with the old!” or even “liquidation sale”.  You can then set the funds aside in this envelope so you are not tempted to use it for other expenses.

Don’t forget to join us on Wednesday for the upcoming webinar “Smart Moves with New & Expired Products!” where we’ll go over how to track and save for stocking new products LIVE!  Click Here to register!