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November 2023 Making an investment on November 15 Wednesday, November 15 is a day you could do something very important to help your fellow small business owners. It is the annual Great American Teach In Day. Contact your local school and volunteer to teach students about small business works. Tell students of the benefits and enjoyment you receive from owning your own business. Explain to students how a small business works from the inside. Mentioning this reminds me of an experience we had in our family business. I remember a high school student working in our business who brought his homework to show my Dad. The student received an "A". In the report, the student explained that a business pays a small price for a product and multiplies the cost several times to determine the selling price. The operating expenses are minimal and the average small business makes a net profit of 30%. While my Dad thanked the student for sharing his work, inside he was furious. How could a teacher possibly give a student that grade when all of the information is so very wrong? My thought was to wonder who was teaching this student about business. A similar situation occurred this past week as a young man came to me after a presentation to ask about the challenges of keeping employees in his business which is exclusively service. My answer was that he needed to explain to all of his employees just how margins and operating expenses really are within a business. Hence, my suggestion; Would you volunteer some time with your local school on November 15 to teach some classes and explain small business? Article of the Month - We are not playing on the same team Entering the last two months of the calendar year, this is an opportune time to think about who will provide your year-end accounting. Sure, you have had the same accountant for years. You think you are pleased with their work because you and your business have never been audited. And, you have never had to pay any penalties. Shouldn't that be enough to decide that all is well? We would like to offer the article of the month as a guide to measuring what your accountant is doing to help your business. You may find that you need to have a better understanding of your business. And if your accountant is not going to teach you, where are you going to learn more? Book of the month - Extreme Ownership by Jocko Willink & Leif Babin We appreciate after a presentation that someone in the audience offers to share a book suggestion with us. This book, Extreme Ownership, is written by a pair of Navy SEALS who translate their experience and discipline from military action to business ownership. Over the years we have shared multiple books on business management that have been written from an individual's experience of leadership in the military. We think you will enjoy this one as well. Internet Tool for Your Business - Accounts Receivable Aging Interesting how so many business owners look at only two things - gross revenue and net profit - when determining how well their business is doing. If your business has accounts receivable, then the Internet tool for your business we are suggesting is very important. This tool helps you to see how well you are doing at collecting those receivables. Revenue is not revenue until the money is in your checking account. And this tool will show you how much of your money is still in the hands of your customers and not doing anything for your business. 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 Staff Incentive for Your Business Regardless of whether your business provides services or products, it is November that starts a busy season in almost everyone's life. Understandably for those of you in retail, it is a time when it is "all hands on deck" to take care of the Christmas buying season. However, as a means of engagement for your employees, it could be very beneficial to give each of them a day off early in the season. You could preface this announcement by telling your staff you want them to be able to enjoy the season as well as you need their best effort during this busy time. A day to rest; to shop for the holidays; or to be with family; you will be telling your staff that you are thinking of them. 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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FEBRUARY 2025
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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
Hopefully there are few small businesses that are operating with handwritten documents. Whether you have a point of sale (POS) system; Curstomer relationship management (CRM) system; or anything digital that helps you better operate your business, there remains a question.
Are you using everything that you bought? That is the focus of the February Small Business Advisory.
Small Business
As small business ownerss we are sure to disagree on many aspects of business management and ownership. However there are two items that I will always insist on.
The first item for you as manager and owner of a business, you must inderstand financial information. You cannot leave it to an accountant. The second item is you have to invest in educating your staff regarding their responsibilities within your business.
Most every small business has inventory. It may be inventory used as a part of your services. It may be inventory for items used in your business. The article of the month shares ideas of how you should control the inventory. This is important because you do not want to run out of the necessary inventory, and you do not want too much of your money sitting in more inventory than you need.
You cannot beat your competition unless you know what they are doing. The February book of the month is, The Everything Store, written by Brad Stone and Jeff Bezos.
