Who's on first? What's on second? I don't know is on third?
You will likely remember these lines as an adaptation of the famous Abbott and Costello routine. Did you know it also applies to business? Here's how.
Recently I went to visit a multi-generation business. The young lady I first spoke with was the daughter of the owner. She spoke intelligently and in the case where she needed approval, she said, "I need to ask Jerry about that. Please excuse me for just a minute". (Jerry was her father)
A visit to another multi-generation business, a car service center, had a situation where I walked in and the young lady said, "Can I help you?"
My response was that I wanted to pay my bill and thought she would like me to do so, so that they would have paychecks later that week. Her response was, "I will get my check either way".
I thought it was an odd, and impolite, response. But what got me was when she answered the phone, told the person to hold on and then said, "Daddy, line two".
The first business owner is teaching their daughter the business from the ground, or front line, up. She has to work hard to get her first "hit". In the second business, her dad has given her special privileges. Someday she may become management, but she will never know or understand what is necessary to work your way up in the business. Definitely she is not learning that it is the customer that makes the business possible.
Unfortunately, the 'advantage' many parents want to give their child is really a big disadvantage. How are you doing with your children?
|Internet Tip of The Month
New Calculator: Debt to Equity Ratio
Although similar to the Debt to Net Worth calculation, (which we covered last month) we are now comparing the debt (total current liabilities and long term debt) to the equity of the ownership of the company.
Debt to Equity Ratio is calculated by taking the total of the debt, and dividing it by the equity. Equity is calculated by adding the net worth and the stockholder (or owner) equity. The answer is stated as a ratio (i.e. 1.5:1). For a small business, 1:1 is unrealistic, but 3:1 indicates you owe a lot, and a bank is probably not going to look at you favorably with regard to a loan.
Click on the link below to visit the calculator page that will perform this calculation for you:
Debt to Equity Ratio
The Power Promoting Idea of the Month
What's on back of your business card?
We learned the lesson the hard way a long time ago. A traditional business card is blank on the back. You give a card to someone and it continues to be your business card until..
That until is when they need a piece of paper to write something down; a phone number or something to get at the grocery store. Now the card is no longer your business card but has become a note card.
You solve that by putting something on the back of the business card. How about putting a list of your services. Everything from alterations to repairs to delivery. The cost is minimal. You eliminate your card becoming something else. And, you are telling your customer something else about your business.
This idea is #9 from the red Profits Plus Ideas book. You can order your copy by clicking on the link below.
Profits Plus Resource Center
Summer continues at the Shay house. The treehouse we are building is well under way and hopefully we will have it finished in July. When Tom is not in the office or up in the tree, here is where he will be:
July 9-13 San Diego, CA
July 16-17 Newtown, CT
July 18 Newark, NJ
August 9 Houston, TX
August 12 Atlanta, GA
August 22 Chicago, IL
August 24 San Antonio, TX