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September 2022
Who knew? 90 days from now is "National Write a Business Plan Month" Somebody had the idea of naming December as, "National Write a Business Plan" month. Whoever that person is, they are likely not a small business owner. Whether service or product oriented, we know that many of the small business owners reading this newsletter would tell us they do not have time in December to take on such a task. That is why we call it to your attention on September 1. So, you have been in business for many years; perhaps decades. If you have not had a business plan to date, why would you take the time to write one now? Our answer is, "because you want to be in business for years to come". While the task may sound daunting, we have several points we want to share. The first is that you do not buy that "fill in the blanks" software. Another point is that you do not need to hire some consultant to do it for you. The reason for both of these concerns is that the resulting document is not one that you have created. When you create it you remember what it contains and you "own" the content. We'll share a couple of points to get you started on the project before December. You should have a mission statement which simply says why your business exists. As an example, the mission statement for Profits Plus has been around since the beginning and is very simple; "Increase your profits plus build your business for the future". You likely want to tell those reading your mission statement, your customers, how the products and services you offer benefit them. You include things like the type of employees you have working for you and the quality of the products and/or services you provide. You hold your business to this standard. As an example, as you consider hiring an employee, you ask yourself if this candidate fulfills what you have said about employees in your mission statement. The second item is a vision statement. This is something that is for you. It is where you answer the question of where you see your business three, five years and ten years from now. Be as specific as you can. This way you can know if you have fulfilled your vision. Other components will include what customers you will attract and what products and services you will offer. Speaking of offers, we have one for you. Several years ago I wrote a book on creating a business for a niche industry of retail. If you would like me to send you a PDF of that book, just send me a note. There is no cost and there is no catch. I am just glad to share what I have with others.
Article of the Month - "Why not?" The September article of the month makes an interesting comparison to what happened in the college bookstore industry over 50 years ago; someone had a very different idea that changed their industry. It also disrupted the rest of the bookstore industry. Today every small business in every industry has an opportunity to make changes. Perhaps not on such a grand scale as our story. The bottom line is that your customer has grown used to changes; now more than any other time in their life. We ask one question; Is your business operating the same way it was in February 2020? With all the changes all of us have experienced as individuals, we have to ask one question. Why?
Who is visiting Small Business Converations this month ? Kurt Tobin answers three questions An international trade association contacted us with a concern of losing membership due to owners getting to the point they want to retire. Unfortunately, few of those wanting to retire have made plans well enough in advance to help them transition from business while getting the most from the transaction. One of the challenges is that of determining the price. Whether the sale is to an outsider, employees or family member, the price is a very important consideration. We believe that amount should be determined by a professional and that professional is not the person who is the realtor or broker handling the transaction. They have a vested financial investment in the price. The September Small Business Conversation brings a professional, Kurt Tobin, who will help us understand the differences between a business evaluation, a valuation and appraisal. Listening to the program could be of great benefit to you and your business regardless of when you are planning to transition from the business.
Book of the Month - Orange Revolution by Adrian Gostick and Chester Elton The book of the month, The Orange Revolution, echos a lesson we have frequently been asked to share this summer. Everywhere you go you can see businesses that are operating on less than desirable quantities of employees. The first question we invite a small business owner to consider goes like this; why would a high performance person leave the business they are working at to join your business when your staff is under-performing? It requires a business having a culture of quality with regard to staff to attract quality employees. Let us invite you to read this month's book suggestion to get ideas of how you can make a change in your business.
Internet Tool for Your Business - ROI Each of the calculators from Profits Plus gets a mention in our newsletter once every four years. Perhaps this one is my favorite because it teaches so much about a business. It can measure how well your business is performing as well as specifically what aspects of your business needs a change to make the investment you have in your business increase. There is a question we ask every time we demonstrate this calculator. When you invest in something, don't you ask what the rate of return is that you can expect on that investment? Don't you want to know the rate of return the business you own is producing? This calculator can answer that question! 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 An article we read this week gives us the message we want to share regarding incentives for the September Small Business News. This article said there are three kinds of incentives (who knew?). We want to share this message as we believe it can broaden all our thoughts on what kinds of incentives we can create for our employees. The three types of incentives are economic, social, and moral. Economic incentives are easy to understand. I think that is what almost all of the incentives have been that we have shared in this part of our newsletter. Whether the incentive has been money, a gift, or time, they represent economic incentives. The second is social incentives. The article explains it as our being seen as doing something good. We think an example of this one as the incentive we previously shared about your business sponsoring a youth sports team. We did add a unique twist in our business by rewarding an employee with time off (economic incentive) to go watch that team play and being a vocal cheerleader for them. The third is that of moral incentives. The example I think of is that of you, your employees, and your business making selections of the products and services you sell, as well as the way you operate your business as "the right thing to do". While there are some people who do not like Chick Fil A because of the beliefs of the founder and his family, look at their television commercials and the stories you read about them in the social media. These messages represent a "do right" attitude which attracts customer and employees. And who would argue the point that as you visit the many fast food places available, it appears the sharpest group of employees are those at Chick Fil A. The essence of this month's incentive is that there are ways other than money to provide incentives to your staff which will help your business develop a higher overall quality staff. 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.
