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We celebrate SBDC day and discuss "Where is the exit door?" Wednesday, March 17 is SBDC day. So? The SBDC - Small Business Development Center network should be one of the most valuable tools in your arsenal. They are highly qualified individuals who are currently providing webinars and individual advising at no cost to you. Follow this link to find the local office of America's SBDC for your business. Our second bit of news for March has both good and bad components.The good news is that the millennials are showing a strong preference for owning their own business. Following the title of a presentation I gave this spring, (Sharks, Cockroaches and Independent Small Businesses; they will never go away) it indicates the title continues to be correct. The downside is the boomers who are aging out. As I recently spoke to someone who heads the educational programs for an international trade association, I was disappointed when I was at their conference and trade show two years ago. I saw so many vendors with programs of, "let us help you raise cash". Visiting with these vendors, they are simply business liquidators. You know, those red and yellow signs you see in a business as an indicator the end is near. As many of you are members of trade associations for your industry let me suggest you speak with management and ask them to follow the example of the HPBA (Hearth, Patio, Barbecue Association) - another international trade association. HPBA has created a program to help their members to transition out by way of selling to an employee, selling to an outsider or passing the business to the next generation. Definitely not closing the business where you will receive the least amount of dollars for your years of work. You likely had a very pleasant experience as you came in the front door of small business ownership. We hope you will make it a pleasant experience as you make your way to the exit.
Article of the Month - New glasses for a new view point Definitely one of the favorite articles I have written over the past 30 years. This is a simple 10 suggestion guide for approaching business.With all the distractions we have experienced over the past year, this month's article can serve as a refocusing guide. This quick read can be a wise investment of your time as long as you take action on the points we are mentioning.
Who is visiting Small Business Converations this month? - The president of the SBDC We started a tradition a couple of years ago when we found that the Small Business Development Centers (SBDC) are celebrated on the third Wednesday of March each year. In advance of this year's event, March17, we invite the president of the SBDC, Mr. Tee Rowe to join us for a conversation. We also invite to the program one of the state directors and this year we have chosen Laura Fine of Arkansas. Especially during the pandemic the SBDC has so many ways they can assist your business as they have a vast array of small business experts available to you at no cost. They are also hosting an increasing number of free webinars. What is available to you depends on where your business is located. Join us for this important program. Announcements and invitations will be sent next week.
Book of the Month - Profit First Mike Michalowicz is a recognized name as he wrote the small business column for Wall Street Journal and hosted the reality show, "Business Rescue". He has written a bunch of books applicable to your small business. This month we are suggesting, "Profit First". A different twist on building the plan for your business. While most look at revenue and margin followed by the various fixed costs and the variable costs, this book looks at the desired profit first. Hence the title of the book, "Profit First".
Internet Tool for Your Business - GMROI An old saying states there are three ways to make your business more profitable. While all three work, they are not the only three. The three are sell more; increase your margin; and diminish your operating expenses. Let's look at another idea. We have two businesses that have the same annual amount of revenue. One has a lot of inventory and the other produces the same revenue on much less inventory. Of course we are more impressed with the one that needs less inventory. But what about the maintained gross margin in the two businesses? Ah, that is the key factor to GMROI; Gross Margin Return on Inventory (or Investment). It is about turning your inventory but it is also about maintaining your margins. That is GMROI. And here is the link to a calculator on the Profits Plus website to help you do the calculation for your business.
Staff Incentive for Your Business - Do you value what your employees have to say? Do they know you value what they say? Do you have a way to show it? We have a way to share with you. Ask each of your employees to write a short piece on how to best accomplish a particular task in your business. After a review by all of your employees, put these ideas in a notebook that is shared with a new employee. "How we get things done around here", is a good title. And with each employee signing the piece they created it demonstrates to all employees that you value them and their input. We want to recognize A Carrot A Day by Adrian Gostick and Chester Elton, whose book provides the basis for each month's incentive idea.
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MAY 2024
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With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.
Small Business
The May Small Business Advisory is titled "Planning for a successful accountant" and is appropriate for many with the April 15 tax deadline having passed.
Did you work with your accountant? Or, did you just give them a bunch of papers and wait to receive a completed tax return?
Successfully working with an accountant requires a partnership. This month's Small Business Advisory gives suggestions of how to make this happen in 2024.
Small Business
We see that many small business owners have too much of a focus on the "top line" of their income statement.
Increasing revenue is great, but it is not a cure all for any challenges your business is facing. And sometimes, incresing revenue can create a challenge.
Who is your customer? Some small businesses have no focus. Their customer is whoever calls or walks in the door.
And some small businesses have determined which customers, in sufficient numbers, they should spend their efforts to attract.
The article of the month shares an old Southern rhyming couplet about business; "The bertter you niche, the more you get rich."
Lean Startup by Eric Reis is our suggested book for May.
As the title suggests, the reader of the book would be someone that is starting their business. However, we see more value than just that.
Perhaps you have been in business for many years. We think this book could give insight to items, and methods, that a small business owner should think about with their business today.
