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A couple of business stories that provide inspiration to a small business Preparing for July's 21st edition of Independent Retailer Month, we have two stories of achievement by business owners. While we would look at them as being "big business", they each have fascinating stories of drive, making an effort, creative thought, and success; much like the small business you own. The first story is likely the best known. We are adding some details that we heard but have been unable to connect to what is reported by Bass Pro Shop. Johnny Morris started his business in 1972 by having a small display of eight feet in the back of his father's liquor store in Springfield, Missouri. Johnny was selling fishing tackle because he and his friends enjoyed fishing. The part of the story we have always loved starts with Johnny trying to purchase a particular tackle at a local mass merchant. The story did not stock it and Johnny was unable to persuade the person in the sporting goods department to order the tackle. Johnny had the same experience when speaking with the manager of the store. The first Bass Pro Shop was opened when Johnny Morris bought a piece of land in Springfield. That part of the story that we love is because it shows a person seeing an opportunity when someone else, a competitior, failed to take care of customers. The second story, told by Netflix co-founder Marc Randolph, involves Netflix and Blockbuster. Netflix started in 1997 with an idea of people ordering DVDs online. A plus to the customer was no late fees and not having to go to the store to select their movies. Perhaps surprisingly, the idea was not working to the point of making Netflix profitable. Blockbuster was doing well. Randolph and his partner, Reed Hastings, were not making money. They decided to offer Netflix to Blockbuster for the price of $50 million. While not out loud, Randolph and Hasting felt that the Blockbuster management was trying their best to not laugh. Today, Blockbuster is little more than a, "do you remember?" question on social media and Netflix is worth $150 billion. At the high point, Blockbuster was worth almost $6 billion. Two interesting stories of businesses and what can happen. July 1 starts Independent Retailer Month for the 21st year. It is a celebration of individuals who have an idea, and with proper research and financing, create a small business that is an integral part of the community.
The title of the article tells the essence of this month's article' inventory in a business should be the best investment you can make. In a service business? There are items that relate to what you can do for your customers that you could be selling to them. The key is that you have to know how to properly manage the inventory in your business. Inventory turn is a critical factor in having inventory drive the profits in your business. If your business is retail, inventory control is more than your point of sale system making the decisions for you. This month's article can share some valuable insight.
Who is visiting Small Business Conversations this month? Doug Thiel We are excited to have Doug Thiel as our guest for the June edition of Small Business Conversations. Doug's experience has been in selling high end products to customers; specifically Steinway pianos. When Doug visits the program this month, we are going to talk about the way he taught his staff to take care of customers. We are going to talk about how his employees taught the customers how to use and enjoy the products bought from the business. We see this as being appropriate for any business selling services or products. It is more than just getting the contract or making the sale; it is helping the customer appreciate and enjoy what they receive after having spent money with your business. We have had a couple of conversations with Doug and have found him to be knowledgeable and fascinating. And in June we get to share him with you. Dare to lead; Brave Work - Book of the month Being a leader is a very unique position. There are many organizations that you may be a member of that have a president, but that is only an office. Being a president does not mean being a leader. The same can be said foryour busines. You may be the owner, but that does not automatically mean you are a leader. And if you look at the business we all admire, they have indviduals that are leaders. This book by Brene Brown is a great read. You will see where you are and where you should be.
What is a customer worth? - Internet Tool for Your Business We often think about a person spending a small amount of money with a business. What does that business think about that exchange? "Gee, that's all they are going to spend?" Then think a moment about the number of people in the community. How much money does the average person in that community spend with that business? The answer is, "absolutely nothing". So this small purchase, when compared to the rest of the community is quite significant. Now, take a moment and look at the Internet tool of teh month. It is a calculator that helps to understand teh value of the customer. If you have read the book, "Reinventing the wheel" by Chris Zane, you will see that Chris is thinking the same way we are and looks at the lifetime value of a customer. In the case of his business, that value is in excess of $12,000. And he realizes that one small purchase is but a component of the overall value of the customer. We created this took to help those in your business to understand that a purchase of any amount by a customer will put that customer in a special and rare group - those that have chosen to do business with you. Each month we highlight one of the 47 free tools on the Profits Plus website; we call them "calculators". While some provide analysis by numbers and ratios, some are assessments and others are self-examination questions. Many are downloadable while others, because of the complexity of the calculations going on behind the scene, are a part of the website and allow you to print your answers. None of them require to you to give any personal information nor are there any "cookies" tracking you or your information. Internet Tool for Your Business
Staff Incentive for Your Business - Money or ... What matters most? We found a report in which employees were asked about their expectation about influence of their performance. 15% of respondents said a financial reward was the biggest influencer. 66% said it was recognition. This reminds me of a trip to San Antonio for a conference I spoke at. After a couple of days, I needed a break from the excellent food found in the town. And on a walk a couple of blocks from the Alamo, I found a Whataburger. The experience was very different from most places as the employees were interacting with customers who were primarily tourists. Engaging one of the staff, I complimented them on the experience I was having. This person told, with excitement, the story of the customer who was so appreciative of the experience they had. This person was a part of management of Whataburger. And while there was a small gift card ($10) given, the employee at the store told more about his appreication for the recognition he had received. The gift card was never spent. Instead it stayed in their wallet as a reminder of being appreciated. 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.
