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September 2023 News of the day - "Diamond Jim" shares his second chapter of keys to small business success Some days I get to share experience and insight. Today is not one of those days for me as it is appropriate I pass the baton for our News of the Day. Our news of the day comes from "Diamond Jim" Mills of Pineforest Jewelry in Houston. Diamond Jim has been in business for over 40 years and is considered one of the best. We asked his thoughts on what a small business should focus on. There were twelve points; four of which we shared last month; four this month; and the last four will be shared in October. Join me as we listen to wisdom in small business ownership. 1 Prepare yourself. Every businessperson must have at the very least a rudimentary understanding of business essentials, computer essentials, finance essentials, an absolute grasp and understanding of bookkeeping/accounting essentials…and, last but not least, the ability to communicate. Along with these one should have an understanding of advertising and marketing. 2 Your business will succeed or fail largely due to YOUR ability to understand numbers and use them to run your business profitably. Understand what your absolute break-even target is. KNOW your cost percentages and live by them. If you sell inventory then you MUST understand inventory TURN. Otherwise, your profits will inevitably end up as unwanted markdowns with no true value at some point. Without ALL of these…failure WILL be an option. 3 Do your research. Do not think that just because you "open your doors" for business that customers will magically walk through your door. Use your research to determine the need for what you offer. Ensure that you have some method of outreach for your potential customers. Make sure that your business will be viable for years to come. Make sure that your business is able to adapt to the market and demand so you remain in business should market changes occur. 90% of small business startups fail within one year, 90% of the remaining 10% fail within 5 years. Be prepared. 4 Create a business plan of action. This not only includes what is necessary for a startup, but also a business plan for 3 years, 5 years, 10 years. Very few folks see beyond this; however, time flies and most never even think about an exit strategy until it is too late. I believe an exit strategy should be developed along with a startup strategy, and looked at yearly for revisions the same as the business plan. An exit strategy may be a moving target, but it IS a target and should be considered and revised with every review of your financials. Your exit strategy could be the most important decision of your entire life. Article of the Month - Abbott and Costello teach business strategy As a constant student of small business, I tend to find lessons for small business in everything I see. While watching what is considered by many as the greatest comedy routine ever performed, "Who's on first", by Abbott and Costello, I again had my "small business" ears on. There is even a seminar I have created based on the routine. What can you learn about owning and managing your small business by listening to a couple of comedians? You will find the answer by following the link below. Who is visiting Small Business Conversations this month? Tom Hubler The dynamics of a family owned business; need I say more? From my personal experience, being a part of a family owned business provided me with the greatest learning experience possible. Audiences have heard me state that I cannot remember the number of times I was told to leave and go home (something like being fired but also being expected to be back at work the next morning). One of the concerns I see in family businesses is that of bringing in a family member into management as compared to that person starting at the bottom. All kinds of opportunities and challenges. This summer I heard Tom Hubler of Hubler Business Families speak at a conference and I immediately extended to him an invitation to join us for a podcast. September is when we get to share Tom Hubler with you. Book of the month - Essentialism Essentialism by Greg McKeown is a book that while I have not yet read, has a couple of testimonials that have me sold on why this needs to be the next book I read. "Essentialism isn’t about getting more done in less time. It’s about “A timely, essential read for anyone who feels overcommitted, overloaded, or overworked.” I think of several small business owners I have spoken with this year. Each have called or written asking for guidance or assistance as they work to make decisions or improve their business. None of the conversations have gone further than the first couple of times; all because the owner is overwhelmed with other projects or distractions. If you can find the time (which obviously many need to) I know this is going to be a good investment of time for you (and for me as I read it). Internet Tool for Your Business - A different type of job application For many years we would see small businesses using a job application that was picked up at some office supply store or downloaded from some website. Always, there would be questions asked of the applicant that made no sense to us as being relevant to the conversation. We decided to create our own job application for use in our business. When I share the presentation on how we created our staff education program in our business, I suggest people visit the link below to download a version of our job description. Definitely you should adapt it to fit your business, and you may need to have it reviewed to make sure it fits within the employment laws of your community, state, province, or nation. From our experience it does get us closer to knowing the applicant rather than using those generic job applications. 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. Internet tool for your business Staff Incentive for Your Business - It is just a few special days in their life We have always seen those name tags worn in many businesses; simple with the name inserted with a Dymo labeler. Nice try, but definitely not a lot of special attention being given. It is fairly inexpensive to have name tags created by a local award and trophy shop. Ours had our business name; in large letters the first name of the employee; and beneath their name was the number of years they had been a part of the team. We made a big deal of giving the new name tag each year. The new one was taken from the employee and demonstratively thrown in the trash can. Then they were presented with the new tag. What about birthdays? And wedding anniversaries? If you employee students, recognizing when they complete a course or earn a degree. It is kind of a big deal in their life, and your recognizing it just adds to the event. 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.
