April 2025

Volume No. 26, Issue No. 5

News of the day - proactive or reactive

As I just got off the phone a few minutes ago visiting with a friend, I thought about the appropriateness of this month's news of the day. We are both part of a non-profit and individually we have work to do that is due April 7. The friend mentioned how they are known for doing things at the last minute or having to explain why they are late in getting things done.

I have the need to be the opposite. I want things done now because there may be other things that come along. By getting something done now, if there is downtime, I can enjoy it more because I am not worried about meeting a deadline.

Let's take these two examples into each of our businesses. When we are being proactive we are preparing; preparing for building our business. When we are reactive, the position we find ourselves in is that of repairing. And when we are repairing, the result is that we have gotten our business back to the point of where our business previously was.

Proactive or reactive; it is a state of mind, and it is a decision you make.

Article of the Month - 5 to 1 or 1 to 5

We have shared this phrase many times during presentations and trade shows. It is the summary of a study in the banking industry, however we see it as applying to small businesses. If a person has an account with a bank there is a 90% chance they will close the account and take their business to another bank. However, if the person is using five or more of the bank's services (checking, savings, car loan, safe deposit, mortgage, etc.) there is a 90% chance they will not take their business elsewhere.

Apply this concept to your business and your customers. Are you selling one product or service to five customers? Or, are you selling five products or services to one customer? The article explains more.

Article of the Month

Book of the month - Empire State of Mind: How Jay Z Went from Street Corner to Corner Office

There are owners and then there are entrepreneurs. This is the story of an entrepreneur who started his career by standing on street corners. This book is our suggestion as a way to look at ourselves. Too often we see ownership as the destination instead of our continued search for opportunities to utilize the skills we have learned.

The book is, "Empire State of Mind: How Jayz Went from Street Corner to Corner Office" by Zack O'Malley Greenburg.

Book of the Month

Internet Tool for Your Business -
Using a gift card instead of a discount

We have a note of appreciation for Ron Friedman who shared the idea that prefaced the creation of this unique calendar. What do we see traditional media and social media being most used for by businesses? Our answer is offering price discounts on our products and services.

If your business has a 7% net profit and you offer a discount of 20% off your products or services, it is easy to see that you are going to lose money on that transaction. We offer an alternative that has been "test-driven" by small businesses. The concept is to give the customer a gift card to your business when their purchase exceeds the amount of the average transaction in your business.

Using this technique can lead to increased average sales, repeat sales, and increased margins. The free calculator will help you determine how to implement this concept in your business.

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 scenes, 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 -
Making a pretty community

Here in our office, we completed a form to contribute in honor of someone. The funds will be used to plant flowers and trees in a community. Often these efforts are arranged by a chamber of commerce, Main Street program, or garden club. Recognition is given to those who are honored.

This could be a way of recognition for employees of your business. Whether the recognition is the longevity of employment, an accomplishment, or just a thank you for being a part of the team, this could be a way of telling your community how your business appreciates the employees.

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.