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It is how you approach every interaction Amazing how a local shoe repair show can find itself on national television because the owner, the fifth generation to own the business since 1908, makes a point to differentiate his business from the competition. The business is McFarland's Shoe Repair; also known as America's Cobbler. In the interview, McFarland told of understanding the importance of the shoes that customers brought or mailed to his shop. His interest in the customer oozed from the interview. Who would have thought that people across the country would mail their shoes to this shop? And then there is the shop I experienced recently. While I have more than my fair share of shoes in the closet, when I have a pair that I greatly enjoy I will go to great lengths to keep them in good condition. I have some shoes that have been to a repair shop multiple times. At the shop I visited, the cobbler took one look at my shoes and said they were not worth repairing. His comment was something to the effect that I should throw them away and buy new shoes. And that is where the lesson comes in. Too often as we sell a product or service we decide, (without being asked), to tell the customer what they should do. In every situation, it is the customer who determines the value of the item. With the shoes; they were favorites as they were my first pair of red shoes! All this leads to debunking an old adage about features and benefits. Many of us were taught that it was our responsibility to know the features of what we sell and be able to translate features into benefits. That may be true, but the missing component is that we do not know if that benefit is relevant to the customer. What makes something relevant to the customer becomes the advantage. It is the customer that determines if the benefit is truly an advantage to them. And that is where master salesmanship comes into play. Animals and chain stores - Article of the Month I remember an expression my Dad would say about the need of a business to be unique. "When the bear gets in the water with the alligator, the alligator usually wins". The meaning I understood from the expression is that a small business, selling a product or service, will not do well when it attempts to go against a competitor based on the strong point of the competition. The article of the month, using the example of an independent pharmacy, shares ideas on how to deal with the alligator your small business may be facing. Built to Sell - Book of the month Perhaps the biggest challenge a small business owner faces is learning how to delegate. It is great that an owner wants to interact with their staff and customers. However, when the owner is doing tasks that could be done by an employee, the owner is missing the opportunity to work on building their business. Hence, our book suggestion for October. John Warrillow's book is, "Built to Sell; Creating a Business That Can Thrive Without You". We think you will enjoy this read and find value in this book. Current ratio - Internet Tool for Your Business Perhaps another name for this month's Internet Tool of the Month would be, "help you sleep at night". The current ratio is an important measurement that is easy to calculate. It compares your current assets to your current debts. The answer gives insight into your ability to pay bills over the next 12 months. That may sound easy. The challenge is whether or not your financial statement has been created correctly. I have seen accountants who do not do the job properly. In the many situations where a business owner has purchased QuickBooks or other similar software, just because what you see on a screen or paper looks like a financial statement, does not mean it is a correct financial statement. Your current assets are those items that are expected to be turned into cash in the next 12 months. This list would include money in a checking account, money in other types of accounts, inventory, and accounts receivable. Current liabilities include your current accounts payables, and the principle part of any payments due in the next 12 months. Do not take our two lists as absolutes but as guidelines as to the information you need for this calculation. When calculated, the answer is expressed as a ratio. If the second number is bigger than the first, then your business may already be experiencing challenges with paying bills on time. The same could be said when the two numbers in the ratio are the same. What allows you to sleep better at night is when the first number is larger than the second. This is an indicator of the likelihood of there being enough money for the coming year. This is offered as a guideline. This also shows that a good accountant who is involved with your business can be a valuable help to you. 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. Internet Tool for Your Business I can give you time - Staff Incentive for Your Business Perhaps you have seen the movies in which someone is dying and another person is asking if there is anything that can be done for the individual. "You can't give me the one thing I would want; time", is the frequently given response. And in that movie, that is true. However, in your business, you can give someone time and that can be one of the best incentives you could offer. So, ask any employee if they had an afternoon; a whole day; or a long weekend to themself. "What would you do if you had that?" While listening to the answer is very important, look at that person's facial expression and listen to the tone of their voice. You will likely hear and see excitement. While giving them the activity they are thinking about could be beyond your means, giving them the time away from work (with pay) could be the most amazing reward you could give an employee. Yes, you can give the gift of time. 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.
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DECEMBER 2024
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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
Whose job is this, anyway? Have you heard that before? The December Small Business Article of the Month offers ideas from those who have found solutions.
Small Business
Past our announcement that the December newsletter starts our 26th year, we are discussing what is and what is not a problem.
Starting with, all these announced closings of retail operations is not a problem indicative of retail. It is an indicator of chain stores trying to correct the problems they previously made.
We came across a solution of tasks not getting done as well as tasks not done correctly. We created an owner's manual for our business. Details in the Article of the Month.
Atomic Habits by James Clear. Have you ever caught yourself saying that you had gotten out of the habit of doing something? Perhaps it is something you need to continue to do? This book can be applicable to personal and business life.
