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October 2018
Volume 19 Issue 11

A concern about Amazon & Global Entrepreneurship Week

This past week there was an announcement about Amazon expanding to a new area of sales. Nothing new here as most of us can remember when Amazon was just a budding website that sold books. Obviously they have grown to a lot more areas as they are even a threat to Google! In years past, if a person wanted to make a purchase online they would "google it" with the name of the popular search engine becoming a generic name for any online search.

That is no longer true as more than half of those wanting to make a purchase online begin their search at Amazon instead of Google. Amazon is not a growing part of the market; Amazon wants to be the market place.

What was bothersome to me was the news service getting a quote from the head of the trade association. This person stated how they were glad to see products now available on Amazon. This might be an appropriate quote if it weren't for this association's membership being manufacturers, wholesalers and retailers of the products. While not knowing the makeup percentages of the association, Amazon has the potential to now eliminate two of the three categories of membership. This group, with members in Canada and the United States, could become a direct to consumer product category.

What does this have to do with you and your business? You could be next. Whether you have product or service, Amazon can replace you. With many product offerings Amazon does offer installation services.

While just over 50% of everything sold on Amazon comes from a third party (a business such as yours), as sales grow Amazon can easily decide they no longer need the third party and eliminate the very business that grew the category. I can't say I would advise anyone to sell through Amazon. While I understand the short term benefit, you may be contributing to a much larger problem.

$$$$$$

On another note, Global Entrepreneurship Week is coming next month; November 12-18. Let me share a connection where you can learn more about participating.

Global Entrepreneurship Week

Article of the Month - Is the experience consistent?

When a person has multiple experiences with your business - be it product, service or a combination of the two, there is one thing they are going to expect; consistency. If you sell food they want the food and the service to be similar with each experience. After all, they came back because of a positive previous experience.

Creating that consistency requires an effort on your behalf. We found the way to create the consistency was to develop job specifications; the written details (written by our staff) of how any task was to be handled. In addition to helping our current employees be consistent, it makes for a much easier task of a new employee getting into the routine of how to handle each and every job.

We anticipate reading this article can be a big help to anyone's business.
Book of the Month - Return on Customer

Don Peppers and Martha Rogers make a strong point to open this book; customers are even scarcer than capital. Let's say it as being harder to get customers than it is to get money for your business. It is more than a claim or a "shock statement". By a sizable multiplier factor, a person in North America has far more choices of how to spend their money than their counterparts in Europe. Not going down the path of, "we need to thin the herd regarding the number of businesses", this book presents what we need to pay attention to; the Return on Customer.
Internet Tool for Your Business - What is your customer worth?

Each month we highlight one of the 45 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.

Keeping with the same thought process as the book of the month, we offer one of the Profits Plus calculators to help you see just how valuable each and every customer is to your business - in a dollar and cents valuation. We have seen our calculator used in one of our monthly book suggestions; we used it in our business to demonstrate to our staff just how valuable each and every transaction is with every customer. The effect this can have on your business can be impressive.
Staff Incentive for Your Business - A simple act of kindness

August found me getting to spend a couple of extra days in San Antonio - one of my favorite cities to visit. After multiple visits to a variety of local businesses enjoying the awesome food in the city, I needed a break. On a Saturday evening I wandered into a Whataburger near the Alamo. As I enjoyed my hamburger and shake, I more enjoyed watching the employees interact with customers; they were all having fun.

When one of the employees approached, I shared a comment and he shared this story.

"One day a person came in and ordered a meal to dine in. As I engaged the person, just as you saw me do earlier, he thanked me and identified himself as the grandson of the founder of Whataburger. He gave me a $15 gift certificate to say thanks".

The employee pulled that gift card from his pocket to show to me. He had never spent it. He held onto the card to remind him that his employer appreciates him.

I wonder just how many people, co-workers and customers, this employee has shared his story with. It meant a lot to him and still does. 

What was the last thing you did to recognize an employee? If there was something physical, like a gift card, was it so meaningful that the employee is still holding onto it? 

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.
Profits Plus | tomshay@profitsplus.org
(727) 464-2182 | www.profitsplus.org

 

 

 

 

 

MAY 2024
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Small Business

AdvisorieS

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

News

Top Story

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.

Article of the Month

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."


Book of the Month

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.
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BOOK US

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

Advisories

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

News

 

Top Story

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.


Article of the Month

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."


Book of the Month

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.

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