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.

  e-ret@iler newsletter
July 2009
Volume 10 Issue 8
Profits_Plus Solutions
Tom Shay Photo
Article of the Month

When the old way no longer works
by
Tom Shay

I will be the first to admit that I do have some rather different ideas about running a business. Then again, as I have seen the traditional ways fail with so many businesses, as well as with mine, I have always been open to experimenting.

Consider this idea; the boss does not do the hiring! Instead, the best sales person hires the new sales people. The same idea applies to the other areas of your business.

Read the article for July 2009 and see how I have tested this theory in our business.

Click on Article of the Month to read this article.

Book of the Month

Retail Superstars
by
George Whalin

The very morning my copy arrived in the mail from George, I also saw several groups giving a 'tweet' about this book as well as a review from Business Week. George is one of us!

He gives an inside look at 25 of the very best independent businesses in the states. It won't matter which country you live in. The examples all give great ideas that can be applied to your business.

And if you take a look at our blog, you can hear an audio interview I did with George before the book came out.

We have more books to suggest for your reading. Click on Book Referral to visit this page on our site.

 

 

Contact Us


Profits Plus
P.O. Box 128
Dardanelle, AR
72834 USA
(727) 823-7205 Voice
(727) 898-3179 Fax


Seminar Logo
Business Advisory

July 2009

1. Last minute reminder: National Independent Retailers Week - July 19-25

It is not too late to get your business and your community involved. We have heard several interesting stories from readers and recently did interviews with some industry trade magazines.

The artwork to create promotional material for the event is free and we suggest you use it to create window posters and bumper stickers. As the media contacts you, asking you to spend money with them, prompt them to promote the event. There is a lot of support information about why it is good for people to support local businesses on the website we created for the event.

2. June conference call

The June call is on the website so you can listen for free. During the session I talked about advertising and why I think so many of us consider our advertising efforts to be a failure. There were some great conversations as well as one business sharing about their promotion of 'shotgun weddings'. If you missed the live call, take a few moments when you can isolate yourself at home or in the office to see if the ideas I share apply to you.

June e-retailer conference call

3. July e-retailer conference call

Barring unseen surprises, I am inviting you to join me for another free conference call on Thursday, July 23. There will be an announcement sent out about one week ahead of time, and a second announcement within a day of the call. As always, I am asking for your questions that you want to discuss.

The topic I am preparing is going to deal with inventory; too much, too wrong, and too little planning.

The dial in number and pin number remain the same. To participate you need to dial 1-218-339-4600 and upon getting the recorded message, enter the pin number of 270985#. Pressing *6 will mute your phone so that you can continue your work while you listen, and pressing *6 again will unmute your phone so that you can ask questions and participate in the call.

4. What I am hearing

In the past few weeks I have been speaking to a number of individuals that are Main Street managers around the states. The two concerns they are expressing are somewhat related in that they both have to deal with inventory. The first concern is that of too much inventory.

While this can come as a result of the economic downturn, it likely happens because the business is not using any format of inventory control. I am hearing of merchandise that is sitting in the store for a much too long period of time. If you want to get to making money, you have to get this old inventory - at any price - out the door and get that money back into action.

The second aspect I am hearing from these same folks is with businesses that are not paying attention to who their customers are. The businesses appear to be desperate for any customer and are stocking such a variety of items that you can't tell who their target customer is. In the tough economic times, I understand the business that would say they would be glad if any customer would walk in.

But the key to success is targeting a type of customer and having the things they want and need. As a customer is making a purchase, we want to see them buy several items from a store as compared to only one. I refer to this as the 5 to 1 ratio being better than the 1 to 5 ratio. A store wants to sell 5 items to 1 customer instead of 1 item to 5 customers.

And while we will talk about these issues in the July conference call, let me close with, "The better your niche, the more you get rich!"

Internet Tip of The Month
Return on equity

How much of the business do you actually own? It is not the whole business; instead it is the part of the business that is shown on the balance sheet as 'stockholder's equity', 'equity' or 'ownership'. This number indicates how much money the business owes to you. Of course, the amount changes each month as a business makes or loses money.

You can also total the assets, subtract what you owe to others and the remainder is your equity. The return on equity calculator helps you to see how well your equity in the business is working to earn more money for you.

Return on equity calculator

The Power Promoting Idea of the Month
Having an 'oldies' sale

This is from our original book; the blue book on page 48. In watching businesses that have an oldies sale, I can say that those that are successful are those that strongly get into the spirit of the event and have a lot of fun.

If you are using print advertising, use a font that has an antique look to it. If you are using television or radio, make sure you are consistent with the background music and that it has a sound that is appropriate to the time period you are trying to recreate.

Have your employees wear clothing that is appropriate for that time period. Have a contest with prizes for customers that do the same. Create posters that tell about events from that time period. I have seen several gift shops that sell books with tidbits about specific years. One of these books could be a big help.

One of the common elements I have seen has been the 'roll back prices to the good old days', but you could be creative by having all the prices end in certain numbers. As an example, if you are having a 50's sale, then the last two digits of all prices would be in the 50's. ($29.50, $32.51, $47.53, etc)

Look for historical societies, car clubs and similar groups to celebrate what they do so as to gather additional participation.

 

 

 

 

 

 

MARCH 2024
Have the Small Business Conversations, Advisories and News sent to your inbox. Subscribe HERE

Small Business

Conversations

We are taking a break with the Small Business Conversations programs. However, we have the many years of the program cataloged by date on the website.

Small Business

AdvisorieS

The March Small Business Advisory remembers a line from many a western movie; "They went that a-way" and expressions similar to that distract from a business giving great customer service.

Small Business

News

Top Story

The big news item on November 30, 2022 was the advent of ChatGPT; Artificial Intelligence applications which many believe are used exclusively by big businesses.

This does not have to be true as there are many applications we share that have usage in a small business.


Article of the Month

"No plan B"; the subtitle to Van Morrison's Born to Sing album. The idea of no plan B also applies to a small business when you think (or is it when you don't think) about when the time, or opportunity, comes that you can sell your business. Generally speaking, a small business owner gets less money when they decide to close their business.


Book of the Month

"Escape from Cubicle Nation" is the March book of the month. While directed towards those working a corporate job and wanting to become an entrepreneur, we remind readers about utilizing their gut feeling to make decisions in their business.

After all, you did use your gut feeling when you decided to open or purchase your business.

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

Conversations

We are taking a break with the Small Business Conversations programs. However, we have the many years of the program cataloged by date on the website.

Small Business

Advisories

The March Small Business Advisory remembers a line from many a western movie; "They went that a-way" and expressions similar to that distract from a business giving great customer service.

Small Business

News

 

Top Story

The big news item on November 30, 2022 was the advent of ChatGPT; Artificial Intelligence applications which many believe are used exclusively by big businesses.

This does not have to be true as there are many applications we share that have usage in a small business.


Article of the Month

"No plan B"; the subtitle to Van Morrison's Born to Sing album. The idea of no plan B also applies to a small business when you think (or is it when you don't think) about when the time, or opportunity, comes that you can sell your business. Generally speaking, a small business owner gets less money when they decide to close their business.


Book of the Month

"Escape from Cubicle Nation" is the March book of the month. While directed towards those working a corporate job and wanting to become an entrepreneur, we remind readers about utilizing their gut feeling to make decisions in their business.

After all, you did use your gut feeling when you decided to open or purchase your business.