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We express concern for those businesses that have not recognized what has happened in the past 28 months Watching businesses since March 2020 has been very interesting. There are many who have suffered tremendously; restaurants, barbers and beauty shops, nail technicians, dry cleaners, those selling suits and dress up clothing, and others we won't name. Then there is the group we want to talk about; those who have benefited from the sales increase during the pandemic. There are many businesses in this group; outdoor activities, furniture, pets, bicycle, liquor, sewing, crafts, hobbies, and others. We ask this question as a prompt for these businesses to think about what is next. And from our talking with manufacturers and wholesalers we are finding a lot of people who are not giving this situation the appropriate amount of consideration. The overwhelming majority of businesses that experienced the growth during the pandemic did not create the boost in their business. Further, while they experienced an increase in revenue, the important measuring points - like margin, expenses, and net profit have not necessarily improved. So, we offer two observations and concerns. Have your margins improved? Have your expenses, as a percentage of revenue, remained the same? As a percentage what has happened with your net profit? Looking forward, what are you and your business going to do? Are there changes you are making in your business that will continue this revenue growth? Or, have you just been along for the ride and in the next couple of years the boost in revenue you have had will be nothing more than a memory? There are opportunities to grow. Let me suggest your moving into the driver seat instead of just riding along with the economy. Opportunities abound, and you can continue to grow your business.
Article of the Month - I read your book The article of the month for July describes an exercise that works for any small business. It is very appropriately tied to the previous article as it shows how to look at the new opportunities every business has as a result of the changes caused by the pandemic. he title of the article comes from a line in the movie, "Patton" in which an opponent has just been defeated. Patton had read a book that was written by the opponent and used the contents of the book to develop his strategy for winning. We have the PowerPoint from a presentation, "If General Patton ran your business", that is on our website and it can give you additional details.
Book of the Month - The consolations of philosophy This book by Alain de Botton takes us away from the traditional books we recommend each month. However, we like the idea of hearing the thought processes of some of the great minds. We think the idea of a different book goes along with the ideas we are suggesting in this month's Small Business News. There are a lot of ideas that are very relevant to both our personal and business lives. We hope you enjoy the read.
Internet Tool for Your Business - Your business has assets; what kind of payback are you getting from them? Look at your balance sheet and in the top section there is a list of assets in your business along with the dollar value of each. These are the items you have determined you need for your business to be open. The question we ask with this month's Internet Tool of the Month is, "What kind of return are these assets producing for you?" By asking this question we hope to cause you to take a close look at each and make a determination as to whether or not the dollars you have in that particular item could be doing more for you if they were invested in something else. 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 you to give any personal information nor are there any "cookies" tracking you or your information.
Staff Incentive for Your Business - Do it to the man Visiting a business last week, we saw a sign about the business closing for a day to give employees an opportunity to rest. While closing the business for an entire day could be an expensive proposition, we understand the need to take care of employees all the more in this time of a sizable labor shortage. Using experiences from our business, we would create competitions within our staff. Sometimes the competition was in sales; other times it was building displays; completing tasks; or solving challenges within the business. The favorite prize was getting an afternoon off with pay. What made the prize all the more valuable to some of our staff was my working the afternoon shift for the employee who was now enjoying time off. I remember one employee referring to this as, "sticking it to the man". We all understand the reference they were making, and enjoyed in the chuckle about my doing their job for them. However, the most important part was that everyone became a winner; things were accomplished for the business and employees got time away from work. The only cost to all of this was my effort. 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.
