Small Business Profit Maximizer!

Using Systems to Improve Sales and Profits

A common complaint I hear from business owners is that they spend all day answering their employees’ questions or correcting their errors.  If a business owner is really dedicated to using their time to massively increase sales and profits, they must eliminate these interruptions.

The best way to accomplish this is by documenting the core business systems that you use to deliver your product or service to your customer.  Yes, this is a lot of work.  So why bother?

Let’s face it:  Your business has systems now.  In fact, without documented systems, every employee is using their own system of how to get the work done.  This means that a customer is likely to receive a different experience every time they come into your business.

So:  Do you want to design your systems and the resulting customer experience, or do you want to leave this up to your employees?

A second big reason to use systems is that it makes it easier to train and manage your employees. Training is easy.  Just hand a new employee the system manual and make sure they learn it.  A better way is to use your computer to record your instructions along with screen shots of your computer or a video camera with you showing how the job should be performed.  These can easily be uploaded to your private You Tube channel and shared with your staff.

Now, you are not managing the employee, but rather managing the system.  For us, putting a tax return together is a documented system that every employee who assembles a tax return uses.  All I have to do when I sign a return is review that the system was followed.  If I find an error, there is no argument, because I have communicated in advance what the process is and what the results should be.

Every System Can Be Improved

You must believe that every system can be improved in order to willingly do all of the work required to document your systems.  You must truly understand and believe that there are real benefits to doing so.  Even if all of your systems are several times more effective than those of your competitors, you can be assured that there are still improvements that can be made.

Where Do You Start

Start by reading the full article in ISB Mag! Innovative Small Business Magazine is available on iTunes newsstand. It has a lot of profitable ideas that you can use in any industry! 

Click below to download the free app!

https://itunes.apple.com/us/app/innovative-small-business/id548759791?mt=8

Myths Business Owners Believe (Part III)

Myths Business Owners Believe (Part III) 

Myth:  A widely held but false belief or idea.         

 

Myth:  I can't compete with the national chains.  The truth:  The national chains can't compete with you!  You are closer to the customers than the managers of these large chains.  You can spot market trends much sooner, and because you don't have the large infrastructure that they have, you can respond much more quickly.  Plus, you can build a very good business from the small niches the big chains don't want.

Finally, perhaps the most dangerous myth that almost all new business owners (and even many experienced business owners) fall prey to:

Myth:  I know all I need to know about running my business.  The truth:  The biggest problem is not what you don't know.  Rather, the biggest problem is that you don't know what you don't know.  A successful business owner never stops learning.  They concentrate on improving all of their business skills.  They read books, hire coaches, go to conferences and seminars, and learn from what other business owners are doing right and wrong.

What myths do you believe?

How are they holding you back?

 

Myths Business Owners Believe (Part II)

Myths Business Owners Believe (Part II)         

Myth:  A widely held but false belief or idea.

 

Myth:  Success depends on hard work.  The truth:  Yes, you will work hard, harder than you may have ever worked before.  Trust me; 40-hour weeks are going to become things of the past.  But working hard isn't enough.  You have to work on the right things.  Start by setting goals and deciding how to reach them.

Myth:  I can be my own boss.  The truth:  You may be in charge, but you aren't the boss.  My name is on the door, but I have hundreds of bosses.  Every client is your boss.  Even your employees are your bosses sometimes.  You might get to decide who you work with, but whatever work you do accept must be delivered in a quality way.  That delivery of a quality product or service that the market is willing to pay for is your new boss!

And you can't do it alone if you want to grow.  Accordingly, hiring quality employees is essential.  It is your responsibility to find the right people, train them well, and give them the tools they require in order to produce the quality products or services the market expects.

Myth:  I can set my own salary.  The truth:  Most business owners were successful and making good money before they became owners.  In fact, it took me almost 12 years to get back to the same level of income I was making at my last job!  With a new business, most of the early profits must be re-invested in order for the business to grow.  Sure, many business owners make a very comfortable living, but only after they have met a need that the market pays them well for.  (Yes, I am repeating myself.  It's that important!)

Myth:  I will make a profit quickly.  The truth:  You will learn that in business, everything takes twice as long and costs three times as much as you expect.  Expect the unexpected and plan for it.  Always have two or three times the funds you think you will need to start the business, open a new store, or launch a new product.

Myth:  I can take more time away from work.  The truth:  A new business is like a newborn baby.  It needs constant attention.  The most successful business owners work many long hours and are always striving to improve their businesses.  To be successful you must achieve this single-minded focus on making your business a success.

(Continued in Myths Business Owners Believe – Part III)

 

Myths Business Owners Believe (Part 1)

 

Myths Business Owners Believe (Part 1)

 Myth:  A widely held but false belief or idea.

 Myths are harmless for most people.  They can believe them without any real negative effects.  But when a business owner believes a myth, it can cause business failure or stagnation.

 I’ll use myself as an example.  As a CPA who had assisted many business owners before starting my own business, I thought I knew exactly what was required to open and run a business.  I could not have been more wrong!

This brings us to the number one myth that new business owners fool themselves with when they first start out:

Myth:  I know what it takes to run a business because I have studied other business owners and have done my research.  The truth:  The responsibilities, pressures, and demands of running a business can only be understood by those who have actually started and owned a business.  Much like getting married, becoming a parent, or learning to drive a car; there is no single course, book, or experience that will prepare you for the experience of being a business owner.  Expect to be challenged and pushed to your limits almost daily.

Unfortunately, this is only one of the many myths stopping business owners from growing the businesses of their dreams.  Every day I speak to business owners who are struggling with the hard truths that must be learned to be successful.  Here are some of the most common and destructive myths:

Myth:  All I need to succeed is a good idea.  The truth:  Every business owner thinks they can offer their customers something better than their competition.  But there are few truly original ideas.  Even Apple's Steve Jobs didn't invent something new when he introduced the iPod, iPhone, or iPad.  He saw an opportunity to create a new product by improving or combining existing technologies in a way that the market would love.

Myth:  Offer a great product, and customers will beat a path to your door.  The truth:  Steve Jobs didn't use the "Field of Dreams" method to market his products.  Apple is a master of marketing and sales.  Every business owner must understand one thing--every business is a marketing business first!  Every business owner must become an expert at sales and marketing.

(Continued in Myths Business Owners Believe – Part II)

5 Great Reasons To Hire A Telecommuter

How would you like to hire someone that is more motivated and more qualified to do the work and costs you less than your average employee? No, I am not talking about hiring someone illegally. You can accomplish this simply by employing a telecommuter. Let’s take a look at 5 very good reasons, why it makes sense for you to consider telecommuting from an employer’s perspective.

1) Less Overhead

How much is all this office space, furniture, computer equipment along with your IT department to maintain them, utility bills etc. costing you? Telecommuters do not require any of the above, which will cut your overhead cost tremendously. Telecommuters use their own office, their own equipment from computers to paperclips; use their own power, phone and Internet connection. If their computer acts up, it’s up to them to get it up and running again.

2) Less Benefits To Pay

Most telecommuters are independent contractors. You do not have to provide for health care, workman’s compensation or paid vacation. Consider the tax benefits as well; there is no employer portion of federal and state tax to pay.

3) Hire Experts When Needed

Do you need someone to write the occasional press release and maybe come up with a revision to your brochure every once in a while? Instead of hiring someone fulltime as your marketing person, consider outsourcing the tasks to a freelance telecommuter. You will pay per project, or hire your freelancer for a few hours per month, instead of creating a marketing position. Freelancers give even small businesses the opportunity to hire an expert for almost any task.

4) On Demand Work

Do you expect a temporary increase in your workload, be it seasonal, or because you just landed a large project? Why not pick up a few telecommuters for the task instead of working with inexperienced temps, or hiring in-office personnel that you may not need three months down the road. Telecommuters combine the flexibility of temps with the on-the-job experience of permanent employees. You get the best of both worlds.

5) More Motivated Workers

Telecommuters have a very good reason why they want to work from home. Whether that reason is being able to stay home with the kids, a disability, or avoiding a long commute, being able to work from home makes them happy. As you well know, happy employees are more motivated, don’t count the minutes until they can leave the office and overall get more work done.

If you haven’t already done so, I encourage you to give telecommuter a try the next time you need a highly motivated, experienced worker, but aren’t in a position to create a permanent onsite position. Once you have experienced all the benefits a telecommuter brings to your organization, you may even consider converting even more positions to telecommuting.

Understanding Financial Statements

In Financial Accounting - Reporting for those outside the business, the 3 most important financial statements, relevant for budding entrepreneurs are:

1. The Statement of Financial Position or the Balance Sheet

2. The Statement of Income or The Profit & Loss Statement

3. The Statement Of Cash Flows.

The Balance Sheet shows the business's assets, the liabilities, and the equities of a business. It is a 'snapshot' of the business economic resources at a certain date. That is why when you see one, it says something like, The Statement Of Financial Position as at dd/mm/yyyy.

Unlike a Balance Sheet that is a 'snapshot' of economic resources, the Profit and Loss Statement is a summary of the flows of earned revenues and incurred expenses of a business for a period of time. That is why when you see one, it says something like: Profit & Loss Statement for the year 200X.

The Statement of Cash Flows summarizes the 'cash' effects of the activities of a business for a period of time. These activities can be operating, investing and financing. The keyword that I would like to emphasize in the above definition is the word 'cash'. It only records activities that involved the transfer of cash.

I can summarize the above even further:

1. Your Balance Sheet shows you what you own and how you acquired them (borrowed from others or contributed by you).

2. Your Profit And Loss shows you how much you are expending each period and how much you are earning.

3. The statement of Cash Flows summarizes the exchange of cash in your operating, investing and financing activities.

I personally feel that for most freelancers, when starting a small business, attention should be placed on your Profit and Loss statement because that is your record of how much income is coming in and how much expenses is going out. Take a look at the revenue items there to know which activity is bringing in money and take a look at the expense items to see which ones are costing you the most and ask yourself whether those expenses are really necessary. Are there ways in which you could cut your costs?

Costs are what any entrepreneur has to control at the start of every business. No cost item should go by unnoticed or unmonitored. Their existence must be justified. Every dollar counts. Every dollar that gets tied up in one thing is a dollar that could otherwise be used somewhere else.

The Face of Your Company over the Phone

Never underestimate the importance of the person answering your business phone. Believe it or not that is one of the most important jobs of any business.

When potential customer calls your business they are expecting the same courtesy that they would get as if they had walked in your place of business. Customers also expect the person on the other end to be knowledgeable about your product and services or at least direct them to someone who will answer their questions.

 If the person who answers the phone has an attitude or is unaware of your products and services you need to keep them away from the phone! They can be costing you money! A customer that has a bad experience with your staff over the phone may take that as an indication of how your business is operated. There is little room for error when it comes to phone etiquette.

Make sure to train your staff on how to handle incoming sales calls, who to direct them to and how to maintain a friendly demeanor on the phone.  

Reasons to Refinance

Nearly everyone can think of the first good reason to refinance your current mortgage – to take advantage of a lower interest rate. But there are a few more you may not have been aware of – let’s take a look at them all:

1. Lower Interest – Again, this is the main reason most people will refinance their mortgage. The going interest rate for a home mortgage at the end of 2010 was 5.9. However, thanks to the economic downturn and housing market crash, interest rates are even lower now. Keep in mind that not everyone will qualify for a lower interest rate, however, mainly because they don’t have enough equity built up in their home thanks to decreasing value.
2. Different Type of Loan – Some home owners opt for an adjustable-rate mortgage rather than a fixed-rate mortgage at the beginning of their loan. This usually means a lower interest rate for them in the beginning but at the end of that adjustable term, it means a very large “balloon” payment that can be very difficult to pay.
3. Cash Flow – This may not technically be referred to as a refinance, but it’s pretty darn close. Some home owners who are free of their mortgage may decide to take out another mortgage loan to get their hands on extra cash to buy another home or start a business.
4. Divorce – Many times the spouse who is allowed to keep the home will refinance in order to remove the other spouse from the mortgage.

Regardless of your reasons for refinancing make sure do your homework and don’t get into a mess with a new mortgage. Talk to your mortgage broker or banker and get all of the information you need to make an educated decision.

So You Decided to Advertise…But Are You Ready?

A lot of business owners start an advertising campaign and forget to prepare their staff. It would be a shame to spend money on a successful advertisement campaign that brings in prospects - only to drop the ball at the end.

Informing your staff of current sales, conditions, limits and procedures before it is released to public is a must. In order to accomplish your goals you need all of your team on the same page. Depending on the frequency of your promotions you should set-up meeting to educate your staff on how you want everything handled.

Another thing to be prepared for is the increase in demand. Larger chains may advertise a deal of a life time but only have 2 items in stock. They can get away with doing that because they have numerous resources and products to meet their customer’s demands. But as a small business; your customers expect you to have products in stock when you advertise them and, they expect your staff to know what to do when presented with coupons or other promotional information. If your business offers services, make sure that you have enough recourses and staff to get the job done. Customers are willing to sacrifice their time in order to get a deal; but, only to a certain extent.

Whether you realize it or not, small businesses are held up to a higher standard. Make sure you are prepared to follow through on what you have promised. The goal of every advertising campaign is to offer a discount on your services and products in hopes of gaining a customer and MAKING MONEY!!

A poorly planned and executed advertising campaign can end up hurting your business by losing you customers and money.

Sell Your Company, Not Just Your Products!

I have reviewed numerous ads for my clients and I see one common mistake over and over again, their ad just focuses on the products not the COMPANY!

Every time a business owner purchases advertisements, they need to remember that they are buying an opportunity to introduce their business. Yes, the product is a way to lure a customer into your business, but don’t forget to attach your logo, address, contact information and other valuable information about your company.

If you offer free installation or a free consultation, include it. Add any information that makes your business stand out from the rest.  Sorry to break it to you, but “Lowest Prices in Town”, “Best Customer Service” and “#1 in Town” are no longer valuable sales phrases. They have lost their meaning with overuse.

Be creative! There are effective ways to sell a product and your business at the same time. For example:

“Bring your Kids to Fast Lube! Now, with new playground, you can get your tune-up and not worry about a babysitter.”

“Free Baby’s First Hair Cut at Family Cuts! Trust our family friendly professionals to mark this milestone and get a free picture while you’re at it!”

“Need to find the perfect gift? Sally’s Gift and Stuff has thousands of choices for you and can custom order any jewelry purchase!”

So, think of what your company can offer that no one can, and make sure to include YOUR COMPANY’S INFORMATION!!

Small Business REHAB – “Survival Mode”

 

Typically, people think of drug addicts or serious injuries when they hear rehab. We all know rehab is short for rehabilitation and with the current business market businesses need some serious rehabilitation! Days of letting things slide and splurging on meaningless expenses are long gone. A discussion I am having with business owners’ way too often is – “My business is in trouble! What do I do?” So what should a business owner do? Go into survival mode and rehabilitate!

When should you a business owner go into “survival mode”? For most it is obvious – they can’t collect and pay mounting bills. But, for many it sneaks up on them. Here are the common signs that your business is in trouble:

· When more cash is going out than what is coming in.

· When your bank account balances fall below their normal for two straight months.

· When future sales outlooks are dim.

· When your 941 payroll tax deposits cannot be paid on time.

 

 

So what do you do once you realize your business is in survival mode?

 

First, the business owner must “adjust their attitude”.

 

The business owner’s ability to adapt to their current situation is the number one predictor of whether the company will survive or not. A business owner must:

· Stop panicking, take a deep breath and take a proactive stance.  Start thinking and planning.

· The business owner must understand that this recession is real and that business failure will severely affect their family, employees and creditors.

· Accept the responsibility! Everything good or bad that happens is a result of decisions YOU have made and will make.

· Forget the past. Fixating on your mistakes will just enable you. (I am often guilty of this one. Thank God my wife is around to knock me out of it!)

· Go back to your roots. Understand that this will be hard and will take extra time and energy while the business is in “Survival Mode”.

· Go into business overdrive. When you are at your business:

o    Don’t answer non-business email.

o   Don’t waste time on social networks (Facebook, MySpace, Twitter, etc) unless of course it is business related.

o   Don’t surf the web.

o   Don’t make personal calls.

· Stay positive! Visualize success constantly.

· Eliminate the blame game. Remember it’s always your fault – So just fix it!

· Set goals in writing. Better yet, write a business plan. Get your goals down and keep them where you can see them to serve as a reminder.

 

Cost-Reducing Tips for the Small-Business Owner

One of the keys to running a successful small business or home office is learning to control costs. Even the smallest expenses can quickly add up and cut into profits, leaving you with a business that won't move forward.

Many small-business owners know where their money comes from, but are not as clear on where it goes. This can have a significant impact on their businesses' cash flow.

It's important to review your expenses regularly - every quarter if possible - so you can accurately manage your outgoing expenditures and look for ways to save.

Demos Parneros, president of U.S. stores at Staples Inc., provides the following suggestions to save your business money.

* Buy last year's model. Furniture, computers, PDAs - there is always something new. This also means that there is always something old. If you wait until the end of the year or for sales throughout the year, you can save on your office needs.

* Buy in bulk and buy ahead. By buying commonly used items in large quantities, you can save a lot. Replenish your supplies before you run out. Thinking ahead, and thus buying ahead, gives you a chance to comparison shop and take advantage of sales.

* Buy products that save money. Consider quality alternatives to national brands. Staples ink and toner products, for example, offer consumers quality products at a 15 percent to 20 percent cost-savings per cartridge.

* Take advantage of discounts. Professional and trade associations often offer their members discounts on insurance, travel, shipping and other common expenses. Similarly, some credit cards, like the American Express Corporate Card for Small Business, may get you discounts as well.

* Save on mail costs. Mail costs for your business can add up fast. To save money, use postcards or consolidate shipping. You also can buy or lease a postage meter or get a mail scale to eliminate overpaying.

Educate, Don’t Sell

We all have had an experience with a salesperson that was uncomfortable and too aggressive. No one wants to be forced into buying something that they are unsure of; and, for the most part, they won’t buy.  That is why, when approaching a potential customer, you may want to consider taking an informative approach rather than a hard sales one.

Many salespeople are taught to close, close, close; but, are never taught different forms of selling. An informative approach is a great way of finding out what your customer’s needs are, as well as an excellent way to educate them about your products and services.

By asking simple questions, you can build a relationship with your customers and truly meet their needs. By doing this, it will eliminate buyer’s remorse and hopefully create a returning customer.  Over aggressive salespeople may generate sales, but can tarnish your company’s relationship and reputation with your customers.

Educating yourself and your sales staff about all of your products and services is essential to closing sales. A confident, educated sales staff will always be successful.

If you need help with training your staff, call our office at 915-857-8158 and we will be more than happy to help you.

3 Innovative Ways To Build An Optin Email List That Stands Above The Crowd

With so many optin email lists out there, you really need to come up with a hook to attract subscribers. It needs to have something special or different. It could be something you offer inside every newsletter issue, like interviews with experts. Or the hook could be a unique incentive that website visitors can take advantage of immediately when they sign up.

Here are 3 ideas you can use for your own sites, or use as inspiration to get you thinking a little outside of the box:

-- Build an Optin Email List by Creating a Private Members Only Site or Section --

Create a private web site and have people sign up to get free, immediate access. For example, you could say, "Subscribe to our free e-zine and get free access to our private membership web site!" You can choose to have them receive a username and password every time they want to login, or you can just provide a link to the site in your welcome email.

Your private members only site can be as big or as small as you want. Some of the things you can include inside are: reports, software, articles, ebooks, etc. Inside the site, you can advertise your affiliate programs, as well. And you can follow-up to let them know about updates, new products they might be interested in, the latest news in your industry, etc.

-- Build an Optin Email List By Giving Subscribers a Free, Tangible Gift --

Instead of offering a free ebook (or a whole package of them) like most everybody else, promise to give your visitors something they can hold in their hands if they give you their contact information.

For example, you could say "Subscribe today and get our new report mailed to you via First Class." You could print out your report on standard 8 x 11 sheets of paper, fold it up, put it inside an envelope, and mail it off.

Or you can offer a tips booklet and mail it to new subscribers. Or you can create your own CD full of information targeted toward your market and mail that. Or if you have a wholesale supply of a product of interest to your subscribers, then you can send one to each new subscriber. The possibilities are only limited by your imagination.

Follow-up possibilities include: articles (your own or written by others), tips you pick up, news in your niche, reviews of products or other interested, related websites, etc.

-- Build an Optin Email List Through a Contest or Sweepstakes --

Hold a free contest or sweepstakes at your website where they must give their contact information, including their email address, to enter. Make the prize something that your niche market will be interested in. Otherwise, they'll never want to enter.

If you already have an ezine up and running, you could offer free automatic entry for new subscribers. For example, you could say, "Subscribe to our free newsletter and get automatic entry into our contest." You'll also want to retroactively include current subscribers.

You can announce the winner(s) at the end, as well as send any new contest announcements or product announcements. Or you can make this an ongoing contest, where you give away the same thing to one (or more) lucky people every month. That way you'll entice many subscribers to stay on your list.

You can find niche products to give away through wholesalers or dropshippers. Or you can create it yourself. One of my favorite ways to do this is create a CD-Rom with a guide or report (or sometimes several) that my niche market will find interesting.

Once again, you can follow-up with tips, articles, news, new product announcements, or just an announcement of each monthly winner(s).

Hopefully, now I've inspired you to take some action or encouraged ideas of your own with these tips. Any idea, the more popular it gets, requires you to think outside the box every now and then in order to be effective. Building an optin email list is no different. And with newsletters and ezines saturating the Internet day by day, you need to offer something a little different to make them want to sign up to yours. Or you'll just end up getting left behind.

Manage the Stages of Team Development

A productive team doesn’t spring up overnight. If you’re involved in launching a team or task force for your organization, pay special attention to these stages of development:

• Orientation. When the team is new, people look to leaders for structure and direction. Provide training, help the team set goals, offer feedback, and keep the team focused. Initially, team members may welcome this; as they grow more confident they may find your guidance stifling and intrusive. Be ready to step back and let the team come to you with questions and requests.
• Challenge. Once the novelty of working together as a team wears off, team members may start to challenge each other and jockey for dominance. This is a natural result of their growing confidence and skill mastery, but it can stunt the team’s development if not addressed promptly. Be alert for conflicts, so you can resolve them before they explode. Focus your leadership efforts not on achieving the specific task at hand but on teaching people how to function cooperatively.
• Cohesiveness. As the team begins performing effectively, your role becomes that of a coach. Concentrate on training people in teamwork skills like leading meetings, solving problems, and giving each other feedback. Be prepared to act as a liaison between the team and the rest of your organization.
• Disillusionment. For a time, the team may bask in its newfound sense of accomplishment. At some point, though, teams often hit a new wall caused by unresolved personal conflicts or external obstacles they’re unable to overcome. Team members often want to give up and revert to being led by a manager. Your role is to keep their expectations realistic and remind the team that obstacles and conflicts are inevitable. Use objective measures to show how much they’ve already achieved. Keep them focused on team goals, and coach them to overcome roadblocks.
• Maturity. Once the team has overcome its first substantial obstacles, it’s usually ready to spread its wings and move up to higher levels of performance. Start involving team members in the organization’s long-range planning; provide the resources they need to set their own goals and strategy.

Manage Projects Better with These Questions

Managing a project isn’t the same as supervising ongoing operations in your workplace. To ensure that the next project you’re responsible for goes smoothly, start by asking these questions:

• What’s the purpose of the project? Find out exactly what’s wanted—the ultimate outcome. This includes the big picture as well as the fine details: What will the result look like? What will it do? What impact will it have?

• Who stands to benefit? Your boss isn’t the only person you have to please. Find out who the “clients” are. These may be the people who buy your products or other employees of your organization. Get input so you’ll know what they expect.

• How are you expected to proceed? Find out what methods your organization expects you to use. Will you hire outside contractors or bring people in from your workforce? What information resources are available? How will you monitor progress and test your results?

• What’s the schedule? You’ll have deadlines. Establish a series of milestones, so you’ll know when you’re on track—or when unavoidable developments are throwing you behind. Discuss long-term and short-term requirements with your stakeholders, so you can adjust your efforts accordingly.

Marketing & Sales Tip – Open Up Your Doors!

It is always a good PR (Public Relations) move to host an event where customers and vendors can see your appreciation. With the warmer weather approaching, it is the perfect time to hold an event and invite customers, potential customers, leads, vendors, employees and anyone you feel should attend.

You are creating an event to network your business, while projecting a charitable image. Whether it is cocktails and hors d'oeuvre at your place of business or full a three course meal in a banquet hall, this event can:

• Give you feedback from current customers
• Remind customers of your services
• Meet new clients and educate them about your business
• Have potential clients talk to satisfied customers
• Have your staff meet new and existing customers
• Improve communication with vendors

And the list can go on. Another benefit of the event is it is completely tax deductible! You get to throw a party for the people who make your business possible and are not taxed on it, how great is that!