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.
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When the light bulb goes on
Do you think you can do it all yourself?
Two men were taking a walk through a wooded area and came upon an old wagon. Thinking it could be a lovey yard decoration they decided to pull it out and take it home with them. The wagon originally had four wheels but the two front wheels were missing. What was the front of the wagon had handles. The rear of the wagon had a large latch where something could be tied or hooked and pulled behind the wagon.
The two grabbed the rear handle and began to pull. After a hundred yards, one realized that this was a slow process as where the axle for the missing wheels was dragging in the dirt. He said,” Let’s pull it from the other end. It will go quicker”.
When they did change ends it did work quicker. The second one said, “it is quicker but we are getting further away from home”. You wonder when the light bulb goes on.
A local business sells both B2B and B2C. While we have had the experience of watching this business, we have also had multiple dealings with them as a customer.
When we visit their sizable showroom floor and warehouse, there is a display area for customers as well as a counter for their business customers. Watching the commercial side of the business, while the staff is product knowledgeable, you frequently hear, “you will have to ask the boss about that”.
On the consumer side of the business, the owner has decided to be the primary salesperson. Perhaps it is because they believe they have the most product knowledge or the best sales skills.
A customer came into the consumer side of the business to ask about exchanging something. The customer was told they would have to wait as, “the boss has gone to the bank and will be back shortly”.
Not to be paranoid, but now in this small community an employee has made an announcement that could lead someone to guess how money is transported to the bank.
These are but a few examples of how this business owner has made everything in the business dependent on them. As one who has visited with the owner and heard the complaints of how much work they have to do as well as how many hours they put in, it is easy to see how this is happening.
Any task that can be put into a routine can also be delegated to an employee. And that does include taking deposits to the bank. While some owners will shutter at that idea, they fail to remember they have given a key to the business to that same employee. They could easily steal much more money in the form of inventory and information than there could be in any bank deposit.
Situation after situation we observed an owner that had made a decision to be a part of everything that happened in their business. The owner is the second generation to own the business; you do have to wonder what their parents had taught them about operating the business.
And, you have to wonder when the business owner spends time to do the things only a business owner can do. Owner duties are definitely not done during business hours as the owner is busy doing everything we have just described and more.
Anticipating the owner takes the work home or spends early morning or evening hours in the building by themselves, you wonder how much time they spend with their family. Perhaps this is why with many businesses we find the next generation choosing a different career.
Bottom line; you have to wonder when the light bulb goes on.
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This article is copyrighted by Tom Shay and Profits Plus Solutions, who can be reached at: PO Box 128, Dardanelle, AR. 72834. Phone 727-823-7205. It may be printed for an individual to read, but not duplicated or distributed without expressed written consent of the copyright owner.
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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.
Perhaps you have investments outside of your small business; gold, stocks, bonds or money market funds. With each you likely know what the rate of return is.
What about your busines? Do you know what the rate of return is for your business? You should. After all, you do not want to be the person who has just bought themselves a job.
We see a lot of social media with what we think is a "sympathy plea" do do business with local small businesses.
It is not going to work. People select where they do business based on positive reasons. We discuss what we are seeing.
Article of the Month
A timely article for the holiday season. With any business that has inventory, are you looking at sales per square foot? Are you looking to see which is the most valuable space in your business? You can increase sales by knowing which items to place where.
Book of the Month
Fix This Next by Mike Michalowicz. We love this description of the book; The biggest problem entrepreneurs have is that they do not know what their biggest problem is.
If you find yourself trapped between stagnating sales, staff turnover, and unhappy customers, what do you fix first? Every issue seems urgent - but there is no way to address all of them at once. The results? A business that continues to go in endless circles putting out urgent fires and prioritizing the wrong things.