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December 2018
Volume 20 Issue 1

News of the day - our anniversary
The cost of education

Today marks the start of our 20th anniversary of this newsletter. While I individually was teaching business over a decade before that, it was December 1999 when the first edition arrived. So, what is important?

YOU! We write the Small Business News for the sole purpose of sharing ideas that can help you with your business. If you make more money, achieve your goals, get more time away from your business, develop a staff that works better together - any and all of these are the reasons we write to you each month.

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Last month as I spoke at a conference in Las Vegas, I heard a message that resonates with me; I hope it does with you as well. The person delivering the message explained he owned a small auto service center. He told how he and his staff had worked late into the evening every night for the past two weeks. Their business was closed for the four days of the conference as all of the staff was in Las Vegas for the event.

"I can't afford to be here", was the first part of his message that was easily understood. The second part is what resonated.

"I can't afford to not be here if I want to grow my business".

Wow! What a powerful message by a business owner that clearly understands what it takes to be the owner and leader of a business.

To manufacturers, wholesalers, and sales representatives; growing OUR businesses in not about your telling us about new products, new buying programs and incentives. It is about your working with small business owners to help them become better owners. Better owners make more profit and achieve the goals they establish for their business.

Every small business should be aware of the threats that large businesses and the Internet pose. Even service businesses need to be aware that Amazon continues to grow the part of their business that installs what they sell. They want to be the marketplace; not just be a part.

We, the small business owners, need to understand the cost of learning to be a better business owner is a lot less expensive than not knowing.

Article of the Month - Is the experience consistent?

When I first began writing and speaking many years ago, one of my mentors commented that I had a unique talent. Apparently, not everyone sees every personal experience as an opportunity to learn something that can be used in their business. Everything you and I experience is a personal interaction.

This month's article, which I first wrote some 25 years ago, is but one example of how we can keep our business - selling products and/or services - in our mind as we think about every experience we have. There is one question you should ask with each experience - "What does this teach me that I can use in how my business interacts with my customers?"
Book of the Month - Buy low, sell high, collect early and pay late: the manager's guide to financial survival by Dick Levin

Dick Levin was a professor of under graduate and graduate level courses at the University of North Carolina. While I love his analysis of the skill set of those in the banking industry, this is the book of the month because it is based on financial management.

Let's take a quick side step to look at why I so strongly suggest books on financial understanding. Why not books on customer service, social media, merchandising or other topics in this vein? Financial is of first importance because your having money in your business gives you the opportunity and time to make changes to all of these other concerns. Understanding your financials shows you what is happening in your business and where you need to make adjustments.

You can hire people to do most any job in your business; just not to understand the financial information.
Internet Tool for Your Business

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.

Your balance sheet likely has an asset titled, "accounts receivable". For many businesses this number represents the amount of credit card transactions for which the money has not yet made it to your checking account. It can also include the transactions which are referred to as "charge accounts" or "house charges". These are any type of transaction in which you are not paid at the time of the transactions.

The accounts receivable aging calculator tells you how long it is taking to collect the amount due your business. Your being slow to collect this money means you are giving your customer an "interest free loan". Think about this; if you went to a bank to borrow money you would expect the bank to charge you 6% or more for that money. Compare that 6% to the net profit of your business. If your net profit were 6% you have essentially made no money on that slow paying account.

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Staff Incentive for Your Business

December 27 should be the date when the media starts to run their annual stories about your New Year resolutions. While not suggesting resolutions for you or your business, let's look at starting 2019 with establishing some goals for your staff.

As you do so, we should also do something to help them achieve their goals. After all, achieving goals will help your business and each employee's self esteem.

Let us suggest your putting on your calendar, making a point to talk with each employee, every other week, about what their goals are and how they are working toward achieving them.

Remember, with your employee achieving a goal, everyone wins; the business, the employee and you.

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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