March 2021
Volume #22 Issue #4

We celebrate SBDC day and discuss "Where is the exit door?"

Wednesday, March 17 is SBDC day. So? The SBDC - Small Business Development Center network should be one of the most valuable tools in your arsenal. They are highly qualified individuals who are currently providing webinars and individual advising at no cost to you. Follow this link to find the local office of America's SBDC for your business.

Our second bit of news for March has both good and bad components.The good news is that the millennials are showing a strong preference for owning their own business. Following the title of a presentation I gave this spring, (Sharks, Cockroaches and Independent Small Businesses; they will never go away) it indicates the title continues to be correct.

The downside is the boomers who are aging out. As I recently spoke to someone who heads the educational programs for an international trade association, I was disappointed when I was at their conference and trade show two years ago. I saw so many vendors with programs of, "let us help you raise cash". Visiting with these vendors, they are simply business liquidators. You know, those red and yellow signs you see in a business as an indicator the end is near.

As many of you are members of trade associations for your industry let me suggest you speak with management and ask them to follow the example of the HPBA (Hearth, Patio, Barbecue Association) - another international trade association. HPBA has created a program to help their members to transition out by way of selling to an employee, selling to an outsider or passing the business to the next generation. Definitely not closing the business where you will receive the least amount of dollars for your years of work.

You likely had a very pleasant experience as you came in the front door of small business ownership. We hope you will make it a pleasant experience as you make your way to the exit.

Article of the Month - New glasses for a new view point

Definitely one of the favorite articles I have written over the past 30 years. This is a simple 10 suggestion guide for approaching business.With all the distractions we have experienced over the past year, this month's article can serve as a refocusing guide. This quick read can be a wise investment of your time as long as you take action on the points we are mentioning.

Article of the Month

Who is visiting Small Business Converations this month? - The president of the SBDC

We started a tradition a couple of years ago when we found that the Small Business Development Centers (SBDC) are celebrated on the third Wednesday of March each year. In advance of this year's event, March17, we invite the president of the SBDC, Mr. Tee Rowe to join us for a conversation. We also invite to the program one of the state directors and this year we have chosen Laura Fine of Arkansas.

Especially during the pandemic the SBDC has so many ways they can assist your business as they have a vast array of small business experts available to you at no cost. They are also hosting an increasing number of free webinars.

What is available to you depends on where your business is located. Join us for this important program. Announcements and invitations will be sent next week.

Book of the Month - Profit First

Mike Michalowicz is a recognized name as he wrote the small business column for Wall Street Journal and hosted the reality show, "Business Rescue".

He has written a bunch of books applicable to your small business. This month we are suggesting, "Profit First". A different twist on building the plan for your business. While most look at revenue and margin followed by the various fixed costs and the variable costs, this book looks at the desired profit first. Hence the title of the book, "Profit First".

Book of the Month

Internet Tool for Your Business - GMROI

An old saying states there are three ways to make your business more profitable. While all three work, they are not the only three.

The three are sell more; increase your margin; and diminish your operating expenses. Let's look at another idea. We have two businesses that have the same annual amount of revenue. One has a lot of inventory and the other produces the same revenue on much less inventory. Of course we are more impressed with the one that needs less inventory.

But what about the maintained gross margin in the two businesses? Ah, that is the key factor to GMROI; Gross Margin Return on Inventory (or Investment). It is about turning your inventory but it is also about maintaining your margins. That is GMROI. And here is the link to a calculator on the Profits Plus website to help you do the calculation for your business.

Internet Tool for Your Business

 

Staff Incentive for Your Business -

Do you value what your employees have to say? Do they know you value what they say? Do you have a way to show it? We have a way to share with you. Ask each of your employees to write a short piece on how to best accomplish a particular task in your business.

After a review by all of your employees, put these ideas in a notebook that is shared with a new employee. "How we get things done around here", is a good title. And with each employee signing the piece they created it demonstrates to all employees that you value them and their input.

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.