December 2021
Volume #23 Issue #1

Customers have heard it before, so why is it being repeated?

We start our 23rd year of Small Business News with this issue. Those who are the newest readers and those who have been with us since 1999 - we appreciate your receiving and reading our newsletter and trust that with each issue we make it something that is a good investment of your time as you read each of the articles.

Perhaps it has been our unique experience, but this past few weeks we have noticed a repetitive event in the majority of businesses we have visited or dealt with.

Surely we are all aware of the challenges of business since March 2020. Past the initial loss of business and the financial setbacks that many businesses have faced, the current challenges manifest themselves in the availability of products and supplies for our businesses as well as the shortage, and dependability, of existing and potential employees.
We, as well as our customers, have seen and heard a lot about these challenges in the media. And everyone has experienced them whether they have shopped online, called a customer service number, shopped in a business, or called a service provider.

Now let's look at this from the side of the customer. Christmas 2019 seems like a very long time ago. Being able to get out and enjoy the holidays is going to be a very welcome experience. While there are some businesses that continue to be very cautious in their safety measures, the majority have decreased their safety measures to the extent that the shopping experience feels closer to "normal".

The experiences our customers will have with us should be experiences the customer desires to have. The customer is spending discretionary money. With each of these occasions, the experience with us should be very pleasant and enjoyable.

However, if we are making a point to tell every customer about our problems, as many have heard over and over in recent days, our customer is hearing things they don't need to hear. And, it does not do anything to help them be in the mood to buy.

Yes, I am being blunt. The customer does not need to hear our whining about the problems we are having. They are already hearing it with other businesses.

Let's be the different business. Let's enjoy Christmas with them. And doing so begins with making the customer's experience as pleasant as possible; without telling them all the challenges.

And on a very positive note we are seeing two signs that get our attention. The number of containers sitting in port in Los Angeles has dropped by 25% since October. And, the Baltic Dry Index (BDI), a measure of global shipping rates and an inflation indicator, has plummeted 50% since peaking Oct. 7, another good sign for consumers.

Article of the Month - Which flag should they raise?

There is a similarity of experiences with businesses that remember the recession of 2008 and what has occurred since spring 2020. In every community we have all surely seen businesses that closed as a result of the challenges the business was unable to overcome.

While the article was written to speak to the staff of a local Main Street program, we would suggest local businesses contacting their area SBDC (Small Business Development Centers) and SCORE (Service Corp of Retired Executives).

Both organizations have many qualified individuals who can help a business that has a new opportunity on the horizon as well as the business that is facing challenges. A call to either group can be a wise investment.

Article of the Month

Who is visiting Small Business Conversations this month? Pamela Danziger

The December Small Business Conversation will be tomorrow night, Thursday, December 2 at 8pm Eastern with our guest expert, Pamela Danziger.

With as much of our business world has changed in the recent past, we are going to visit with Pamela to discuss the changes in marketing. As frequently as we see Pamela quoted in the media, we feel very fortunate to have her joining us for a one-on-one conversation.

Book of the month - Present Over Perfect by Shauna Niequist

The subtitle for Present Over Perfect is "Leaving Behind Frantic for a Simpler, More Soulful Way of Living".

We think this is an appropriate choice for our December book suggestion. Personally, as I think back over what part of the 98 years of the family business that I have been a part of, it is the Christmas season that has created many of the great memories. As I think of these memories, each have pleasant experiences with customers, employees and family.

We think this book can share some ideas that can be of value to all of us.

Book of the Month

Internet Tool for Your Business - Determining the operating expense as a percentage

We understand the many business owners that struggle to understand their financial statements. This happens to be a part of the business that we like to help with. Let's share one bit of information that can be a good place to start.

Your income, whether you call it sales, income, revenue, has a couple of items to consider before you get to your profit. The first is the cost of the goods or services that you provide. The second is the operating expenses necessary to operate your business - rent, payroll, insurance, taxes, occupancy costs, and others.

When we explain the financial statement we do so with a pie chart. The income for your business is represented by the entire pie. The second "piece of the pie" is the cost of goods or services that we mentioned. And the third piece of the pie is the operating expenses. This month's calculator shows you how to calculate the operating expense piece of the pie.

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 - Enjoying the season with your staff

As we were thinking about what the incentive suggestion for December was to be, we saw a message on Facebook that answered it for us. There was a discussion between several people that had worked in our family business in the 1990's. One person mentioned their still wearing a watch that we had given them at a Christmas party. That response was repeated by a couple more. Interesting how an experience from almost 30 years ago is still remembered.

We had a tradition of having a party as a part of our decorating the store for Christmas. Each employee was invited to bring their family to the party as well as bringing their favorite Christmas snack food. During the evening we played Christmas carols, enjoyed food, and got the store decorated. To help get into the spirit, we turned the air conditioning as cold as possible (the business was in Florida) to add to the feeling of the season. A part of the party was our giving a special gift to each employee.

Interesting how something from that long ago continues to be a bond decades later. It worked for us, and it can work for you.

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.