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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.

This month's issue is a lot about our finding a focus away from price and taking a look at
how we can change our business and our focus on our customers
 
e-retailer logo
November 2017
Volume 18 Issue 12

Educator for a Day and
The race to the lowest price goes in a circle

With the November issue of the e-retailer over the past 18 years, we have most frequently suggested readers participate in Teach In Day. The event works with local schools and has people from the community teach classes for a day. We have always been fond of it as it allows us to tell students about becoming business people.

While many of us have our successors come from within the family, you could be the one that peaks the interest of a young person who eventually becomes a small business owner.

The event is now called, "Educator for a Day" and for 2017 will be held on Thursday, November 16. Let us suggest your contacting local schools to learn more about participating.

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We found an interesting report this past week from Forbes. It stated that prices at Costco were 57% lower than Whole Foods. Perhaps that is not surprising with the design of Costco being in the discount/quantity purchase format of businesses. That, and with Whole Foods having a nickname of "whole paycheck".

However, Whole Foods is now owned by Amazon. While Amazon can use Whole Food stores for distribution of the products, you would not expect Amazon to begin dropping the prices at Whole Foods to make it competitive with Costco; you just don't buy a business and then destroy its business model.

So, what is the point of this "circle"? The first is "caution" - be careful about what you read and hear about small business and how the Internet is going to destroy the traditional model. The second is dropping prices leads a business to becoming a commodity - whether you sell products or services. He who becomes a commodity last is the winner. It is never about how much your revenue is. It is always about how much you get to keep.

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Small Business Saturday is November 25. Be sure to participate. 

 

Article of the Month

Keeping in the same vein as our news of the month, our article for November is, "Redefining your market strategy". We use an example of a product/service business - the gift basket industry. The article suggests ways of adding and changing a business. There is no suggestion of going after business based on price. We think you will get some ideas for being adaptive in how you approach your customers.
Book of the Month - Leading Change

John P. Kotter's, "Leading Change" takes a look at 100 businesses and their efforts to make them into better competitors. (Note there is no mention about better meaning lower price). Think about the article we have just suggested and ratchet up the effort a bunch.

Business books are a great investment for you and for your business. It is also a great replacement for watching television and reading a newspaper as the business books always cause you to challenge your thinking and ways of doing things. They force us to open our minds to new ideas. And, once a mind has opened, it can never go back to being closed in the same way. And when you buy the book, please stay away from Amazon. Go to your local book store. If they don't have the book they can order for you. If you want to order online, see if your local store has a website. Or, there is a link on our website to Powell's Bookstore; an independent store with an awesome selection of business books

Return on equity calculation - An Internet Tool for Your Business

Take a look at the bottom line of your balance sheet. While there are several names it could possibly have, it represents your investment in your business - the equity.

If you took that equity out of the business and invested in something other than your business, how much would that equity earn for you? Surely before you made that change, you would want to know what the rate of return is going to be.

We are suggesting you do ask yourself about the equity in your business. Just how well is it performing? This calculator from the Profits Plus website will answer the question for you.

Did you know we have 40 calculators on the Profits Plus website? They are all free. Some calculators are downloadable while others allow you to input your information on the website. Be assured of this; there are no "Cookies" on the website. You do not have to sign in to use any of the calculators, nor is any of your information retained on the site.
Staff Incentive for Your Business

"If you cross your eyes, they will get stuck that way". Ever heard that expression? Ever see it happen? Of course not. As we give an idea every month for incentives for your staff, have you ever heard an employee in any business say, "This business recognizes my work too often"?

Of course not. Point made; just this morning I read a newsletter from a group of businesses in Minnesota about an employee and how they gave great customer service to a competitor who was price shopping their store.

In addition to adding my compliment, I offered a bit of advice to the business; take good care of that employee or that competitor just may hire them away from you. There cannot be too much recognition.

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) 823-7205| 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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Tom Shay
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Dardanelle, AR 72834
(727)823-7205