September 2019
Volume #20 Issue #10

News of the day - delays and making plans

Small Business News - it is a week late. Yes, We have been sending the Small Business News since 1999 and had a delay in sending the newsletter once because of technical issues. This issue is late because of me. It has been a challenging week. First, we have had a bit of a distraction with the concern for hurricane Dorian. Fortunately for our area, the storm stayed to the east and we received very little rain or wind. The second issue is our puppy, Rusty. Well he is about 15 years old but to us he is still our puppy. As I write he is in the hospital with the hope they find no additional problems and this two day treatment will help resolve the challenge. If you believe in offering a prayer for your pets, we will greatly appreciate those on Rusty's behalf. The news of the day is preparing for December. Not because of it being the holiday season, but because it is "Write a business plan month". Having been the fourth generation of our family to own a business, I do understand how the majority of businesses do not have a business plan. My task today is to share reasons why you should join the minority. Mistakes and problems in your business cost money. Creating a business plan can help save you money. Let me give a couple of examples. When you write a business plan, you state the specifics of the type of customer you are looking for. You will save money by making sure the products and services you offer are selected with that customer in mind. With that same type of customer in mind, you will decide where you should spend your advertising and marketing dollars. The expense will be sizeably less than the business who uses all advertising mediums and all forms of social media in the hope they have bought the right ones. Our last example is that of your staff. What do you want your staff to be like? When you are looking to hire someone, you keep this description in mind. I understand the challenge currently of low employment. However, when you have hired someone out of desperation, how has that previously worked for you? We have a free session on the Profits Plus website you can look at that will help you get an idea of what your business plan should contain.

Article of the Month - Having the right tools

Whether you sell products or services, what is the biggest operating expense for most businesses? Personnel is the correct answer. Unfortunately as all of us have experienced, customer service is not often something that excels. Seems to me that something is missing. We know that missing item is a tool; the job description that is being utilized.

Read this month's article to see how you can easily create, implement and utilize job descriptions.

Article of the Month

Who is visiting Small Business Converations this month? - Larry Pfarr discussing the last 75 days of the year

Larry Pfarr, our resident expert on merchandising, joins us as we help you prepare for the holiday season. Larry's previous visit caused a lot of you to send questions for Larry. He will be ready for you Thursday night.

Who's business would not like to receive a boost during the 2019 holiday season? Join us this Thursday night and bring your favorite holiday drink. (No, we won't be playing Christmas music.)

Book of the Month - Managing by the Numbers by Chuck Kremer

Individually there may be many things about your business that we can disagree about. However, there are two factors that we have to be in full agreement. The two are financial understanding and staff education.

This month's book, Managing by the Numbers, does cover the first one. Go to your local library to see if they have it or can get it for you. If not, visit your local independent book store and get this one ordered. It will be one of the best investments you could make.

Managing by the Numbers will walk you through a detailed explanation of your income statement and balance sheet. It will also show you how to budget and create a cashflow plan.

This is a great book. We heartily recommend it.

Book of the Month

Internet Tool for Your Business - Cash to current liabilities ratio

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 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.

The cash to current liabilities ratio is a variation from the current ratio. The reasoning behind the cash to current liabilities ratio is that we are only measuring the cash on hand. If a business sells off inventory at a reduced price in an effort to pay bills, the business is going to struggle because the margin has not been maintained.

Internet Tool for Your Business

 

Staff Incentive for Your Business - On the right foot

This spring I had the opportunity to shadow a friend at her business. While not the first time to have seen this, it was very impressive as her staff gathered 15 minutes before the start of the work day. They do this every day.

Everyone standing for this gathering demonstrated it was going to a short meeting. She then recognized and handed out individual praises for things accomplished the day before and during the current week. She also offered praises for efforts in customer service. When a customer has written her or given verbal praise she tells it to everyone while giving individual recognition where appropriate.

She outlined what needed to be accomplished during the current work day and week. Sales goals were also reviewed. 

Occasionally she has also surprised them with a treat; something she cooked or prepared. On this day it was her own version of a smoothie with blue berries.

What a great way to give praises and get a day started! 

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.

What's coming up that you can promote? -

Give your existing and potential customers a reason to celebrate. We collect information from National Day Calendar and share certain events that we know you could include as a part of your promotional efforts.
We are adding this new feature to help you create events for several reasons. Your customers will enjoy a fun connection with your business. You can easily use social media to promote the event. You will get the benefit of your event getting a tie in to events that local and national media promote. Our favorite example is that of chocolate pie. Yes, there is a chocolate pie day. If you are a grocery store or restaurant, it is a natural to tell your customers of the event and invite them to do business with you. Other types of businesses could do a joint effort with the restaurant or grocery store.

Putting these together can be quick and easy, but should be planned in advance. As an example, as this is September you should be looking at what you can do in November.

Examples of November events include:
November  3 - National housewife's day
November  4 - National candy day
November  5 - National donut day
November  8 - National parents as teachers day
November 11 - Veterans day
November 16 - National fast food day
November 28 - Thanksgiving day (USA)
November 30 - Small business Saturday

We want to thank National Day Calendar for this information. National Day Calendar -  Where the world gathers to celebrate every day.