T.I.D. – Today’s Inspirational Devotion
"In this age, which believes that there is a short cut to everything, the greatest lesson to be learned is that the most difficult way is, in the long run, the easiest." – Henry Miller
Henry Valentine Miller (1891-1980) was an American novelist and painter. He was known for breaking with existing literary forms and developing a new sort of 'novel' that is a mixture of novel, autobiography, social criticism, philosophical reflection, one that is distinctly always about and expressive of the real-life. He also wrote travel memoirs and essays of literary criticism and analysis.
B.I.T.S - Business Improvement Tips & Strategies
Recession-Proof Your Business: Volume 6 – The Four M’s of Profit
Even a brilliant business strategist will fail without profit. Adherence to the “Four M’s of Profit” can help guarantee success when times are tough.
Management
Profitable companies are well managed. To manage a business effectively requires a blueprint for employee and team training, a current and useful database of contacts, leads, and customers, a good budget and strong accounting practices, and skillful use of time and resources. Intelligent managers know how to systemize routine procedures to streamline them, while humanizing the exceptions.
That means that, for example, while customer service systems should be consistent and follow written guidelines and rules, customer service depends upon well-trained humans to spontaneously solve the problems that are unexpected or out of the ordinary. They do so by understanding the core values of the company and internalizing those to beneficially represent the business under all circumstances.
Money
Strategies for dealing with money will make or break profitability. A successful approach to managing money will involve several key components. Those include auditing costs and setting budgets that are understood and followed by everyone in the business. Next, margins need to be increased – even if only gradually – in order to fatten profits. By keeping prices stagnant the average business will begin to lose money automatically, just because of the demands placed on money by ordinary annual inflation.
A better approach is to proactively raise prices, concentrate on enhanced customer service to justify the increases, and in that way dramatically boost net profits without alienating customers. Discounts and giveaways should be discontinued, but replaced with profitable programs such as in-house financing and credit card acceptance to make it easier for customers to buy and pay for their purchases.
Marketing
Marketing should be not so much about selling, but more about buying. Marketing of products and services is too often done solely from the perspective of the seller, rather than the buyer or customer, and those marketing campaigns seldom work. Those businesses that focus on marketing as a form of customer service will tap into the needs and desires of their targeted audience in a way that translates more easily into increased business and revenue.
Customer-centric marketing revolves around offering real value and it also involves such strategies as “up-selling” to customers. They buy a deluxe model versus a standard model, for instance, and pay a premium in order to enjoy bigger benefits from the upgrade. “Cross-selling” – where a company sells other products to enhance the primary purchase, is also effective. Rather than just buying the burger, for example, the customer also buys fries and a soft drink to go with it. “Down-selling” works well when a customer might otherwise not buy anything. Accommodate their budgetary demands and make a customer for life, rather than trying to sell them what they can’t afford and losing them to a competitor.
Merchandise
Taking a top-down or macro view of business merchandise can be a valuable exercise for a business owner, because the products and services sold help define the entire business model and guide the direction of sales and revenue. First of all, when given a choice between one item of merchandise and another, look at the potential profit margins and choose the one that delivers the most bang for the buck.
Sales of computer printers, for example, peaked and then slowed down after most consumers bought one because they do not need to be replaced very often. But ink has to be replaced continually; so most manufacturers focus on selling ink rather than printers. They will practically give away a printer just to snag a customer who will then have to return again and again to buy ink refills. In other words, these printer manufacturers used to be in the printer business and sold ink to promote that product. Now they are in the ink business and sell printers in order to support their new business model. But all the while they are making profit by knowing where it comes from and how to nab it.
Identify which products are profitable, and focus on selling those. Other ways to manage merchandise include stocking only higher priced and faster-moving items in the inventory, selling exclusive lines that others don’t offer, and carrying private label merchandise. Selling only quality merchandise – and making that part of an overall brand identity – is always a wise approach and can generally deliver higher margins because people pay more for prestige, status, and excellence.
Monday, March 30, 2009
Monday, March 16, 2009
TIDBITS-9
T.I.D. – Today’s Inspirational Devotion
“God forbid that I should build a fire for my comfort which should be the means of destroying any of His creatures!” – John Chapman
John Chapman (1774-1854) The mission of John Chapman has been immortalized in America through stories, legends, books, cartoons, even a memorial highway in Ohio. His adventures were diverse, and some even claim that he traveled as far west as California, planting his orchards along the way.
B.I.T.S - Business Improvement Tips & Strategies
Recession-Proof Your Business: Volume 5 - Indispensable Businesses are Recession-Proof.
The biography of the businessman behind the legend of Johnny Appleseed tells a similar story. While most people believe that the apple-sowing mendicant was a fictional character, the truth is that there was a real person upon whom the Johnny Appleseed folklore and mythology is based. John Chapman was his name, and biographer and historian Robert Price chronicled his business life in a book published in 1954. Chapman was, for all intents and purposes, one of the first franchisers in the USA. Although myth describes him as someone who simply walked around mindlessly or randomly planting apple trees, he actually engaged in a carefully conceived business that was absolutely recession-proof. Upon his death in 1845 he owned more than 1,200 acres of prime real estate because he found a product to sell and a way to deliver it to customers that was unique, ingenious, and profitable through thick and thin.
Frontier settlers needed sugar, but it was prohibitively expensive. A more affordable substitute was sweeteners made from apples – what we today refer to as fructose. Apples were also a valuable foodstuff by themselves. But apple trees were few and far between in the wilderness of North America. So Chapman would go deep into the frontier, plant an orchard, and then – as the settlers arrived – he would sell the young trees to them. By establishing these frontier tree farms or nurseries across the USA, he ensured a strong demand for his product. He didn’t even have to deal with labor intensive apple cultivation and harvesting, he just sold young trees that grew easily in the fertile frontier soil.
His overhead was tiny, because he would use the seeds of one tree to grow dozens of others in a true franchise spirit. But each sapling he sold brought a good price. Even though settlers had no extra money, they considered the purchase of a healthy tree to be a wise long-term investment. And according to many land grant laws that were intended to discourage real estate speculation, land owners were required to plant a minimum number of fruit trees on their homesteads. So Chapman had a product that people not only wanted, but were also required by law to have. Highly motivated customers came to him by word of mouth.
In order to keep moving, branch out, and stay ahead of the national migration of his customers, Chapman decided to hire people to manage his orchards in his absence. He would go somewhere, start a new nursery, and then hire and train a local person to run it and bank the profits which he shared with them. Eventually Chapman had an entire network of nurseries that were paying him dividends, so he moved back to his native Ohio and retired as a very wealthy man as the money kept rolling in from his national orchard business.
When he first began to ply his trade he was in poverty, but by the time he died his business was worth millions in today’s inflation-adjusted dollars. His business was indispensable, and people sought him out to buy his products. In short, he had an exemplary business model. When an employee becomes indispensable to a boss they ensure that they won’t be fired and will be first in line for a promotion. Similarly, those businesses that become essential and irreplaceable to their customers thrive with longevity while other companies tread water and eventually succumb to red ink.
“God forbid that I should build a fire for my comfort which should be the means of destroying any of His creatures!” – John Chapman
John Chapman (1774-1854) The mission of John Chapman has been immortalized in America through stories, legends, books, cartoons, even a memorial highway in Ohio. His adventures were diverse, and some even claim that he traveled as far west as California, planting his orchards along the way.
B.I.T.S - Business Improvement Tips & Strategies
Recession-Proof Your Business: Volume 5 - Indispensable Businesses are Recession-Proof.
The biography of the businessman behind the legend of Johnny Appleseed tells a similar story. While most people believe that the apple-sowing mendicant was a fictional character, the truth is that there was a real person upon whom the Johnny Appleseed folklore and mythology is based. John Chapman was his name, and biographer and historian Robert Price chronicled his business life in a book published in 1954. Chapman was, for all intents and purposes, one of the first franchisers in the USA. Although myth describes him as someone who simply walked around mindlessly or randomly planting apple trees, he actually engaged in a carefully conceived business that was absolutely recession-proof. Upon his death in 1845 he owned more than 1,200 acres of prime real estate because he found a product to sell and a way to deliver it to customers that was unique, ingenious, and profitable through thick and thin.
Frontier settlers needed sugar, but it was prohibitively expensive. A more affordable substitute was sweeteners made from apples – what we today refer to as fructose. Apples were also a valuable foodstuff by themselves. But apple trees were few and far between in the wilderness of North America. So Chapman would go deep into the frontier, plant an orchard, and then – as the settlers arrived – he would sell the young trees to them. By establishing these frontier tree farms or nurseries across the USA, he ensured a strong demand for his product. He didn’t even have to deal with labor intensive apple cultivation and harvesting, he just sold young trees that grew easily in the fertile frontier soil.
His overhead was tiny, because he would use the seeds of one tree to grow dozens of others in a true franchise spirit. But each sapling he sold brought a good price. Even though settlers had no extra money, they considered the purchase of a healthy tree to be a wise long-term investment. And according to many land grant laws that were intended to discourage real estate speculation, land owners were required to plant a minimum number of fruit trees on their homesteads. So Chapman had a product that people not only wanted, but were also required by law to have. Highly motivated customers came to him by word of mouth.
In order to keep moving, branch out, and stay ahead of the national migration of his customers, Chapman decided to hire people to manage his orchards in his absence. He would go somewhere, start a new nursery, and then hire and train a local person to run it and bank the profits which he shared with them. Eventually Chapman had an entire network of nurseries that were paying him dividends, so he moved back to his native Ohio and retired as a very wealthy man as the money kept rolling in from his national orchard business.
When he first began to ply his trade he was in poverty, but by the time he died his business was worth millions in today’s inflation-adjusted dollars. His business was indispensable, and people sought him out to buy his products. In short, he had an exemplary business model. When an employee becomes indispensable to a boss they ensure that they won’t be fired and will be first in line for a promotion. Similarly, those businesses that become essential and irreplaceable to their customers thrive with longevity while other companies tread water and eventually succumb to red ink.
Sunday, March 1, 2009
TIDBITS-8
T.I.D. – Today’s Inspirational Devotion
"If we don't change, we don't grow. If we don't grow, we are not really living. Growth demands a temporary surrender of security." – Gail Sheehy
Gail Sheehy (1937- ) is an American writer and lecturer, most notable for her books on life and the life cycle. She is also a contributor to the magazine Vanity Fair. Her fifth book, Passages, has been called "a road map of adult life". Several of her books continue the theme of passages through life's various stages. She has also authored a biography of Hillary Rodham Clinton titled Hillary's Choice.
B.I.T.S - Business Improvement Tips & Strategies
Recession-Proof Your Business: Volume 4 - Choose Products and Services with Care and Attention
Brad Sugars, founder of the world’s largest business coaching franchise shared with us, that if he had lived during the era of the famous California gold rush he would not have chosen to follow the masses in search of elusive gold. Instead, he believes, it would have been easier and smarter to set up a roadside stand and sell tin pans.
The idea sounds completely counterintuitive, but often those who think against the crowd and buck the trend emerge much more successful and prosperous.
Let’s consider the historical facts. While a small percentage of prospectors actually struck it rich, 100 percent of them bought at least one pan in order to help them sift through mud in search of the precious metal. Those who supplied the tools of the trade, in other words, made plenty of money because they did not have to worry about creating the market for their product. They simply and cleverly identified a niche and filled it. By doing so they fulfilled their entrepreneurial dreams as customers sought them out and then flocked to them in droves.
• Find Out the Needs of Your Customers - Survey your client base to find out what kind of products and services you can offer that promote their development.
• Certify Products and Services – Review the quality of the products and services you are providing, and find out if there is a certification program for them.
• Offer Green Products and Services – Make available for purchase green products and services that have a low impact on the environment.
• USP and Guarantee – Create a ‘Unique Selling Proposition’ for your product or service that sets you apart from your competition, and back it up with a guarantee.
"If we don't change, we don't grow. If we don't grow, we are not really living. Growth demands a temporary surrender of security." – Gail Sheehy
Gail Sheehy (1937- ) is an American writer and lecturer, most notable for her books on life and the life cycle. She is also a contributor to the magazine Vanity Fair. Her fifth book, Passages, has been called "a road map of adult life". Several of her books continue the theme of passages through life's various stages. She has also authored a biography of Hillary Rodham Clinton titled Hillary's Choice.
B.I.T.S - Business Improvement Tips & Strategies
Recession-Proof Your Business: Volume 4 - Choose Products and Services with Care and Attention
Brad Sugars, founder of the world’s largest business coaching franchise shared with us, that if he had lived during the era of the famous California gold rush he would not have chosen to follow the masses in search of elusive gold. Instead, he believes, it would have been easier and smarter to set up a roadside stand and sell tin pans.
The idea sounds completely counterintuitive, but often those who think against the crowd and buck the trend emerge much more successful and prosperous.
Let’s consider the historical facts. While a small percentage of prospectors actually struck it rich, 100 percent of them bought at least one pan in order to help them sift through mud in search of the precious metal. Those who supplied the tools of the trade, in other words, made plenty of money because they did not have to worry about creating the market for their product. They simply and cleverly identified a niche and filled it. By doing so they fulfilled their entrepreneurial dreams as customers sought them out and then flocked to them in droves.
• Find Out the Needs of Your Customers - Survey your client base to find out what kind of products and services you can offer that promote their development.
• Certify Products and Services – Review the quality of the products and services you are providing, and find out if there is a certification program for them.
• Offer Green Products and Services – Make available for purchase green products and services that have a low impact on the environment.
• USP and Guarantee – Create a ‘Unique Selling Proposition’ for your product or service that sets you apart from your competition, and back it up with a guarantee.
Monday, February 23, 2009
TIDBITS-7
T.I.D. – Today’s Inspirational Devotion
“Man can only become what he is able to consciously imagine.” – Dane Rudhyar
Dane Rudhyar (1895-1985) was a respected modernist composer as well as a pioneering modern psychological astrologer. Born in Paris as Daniel Chennevière, he immigrated to the United States in the early 1900's. His music utilizes dissonant harmony; he claimed to be inspired by the cadence of speech. His work influenced a group of composers known as the ultramodernists. He also wrote a number of astrology books, including the seminal Astrology of Personality.
B.I.T.S - Business Improvement Tips & Strategies
Recession-Proof Your Business: Volume 3
The Critical Difference between Response and Reaction
Coaches often talk about the need to remain calm and aware under duress, so that instead of simply reacting in a random and haphazard fashion one can respond with more levelheaded and effective behaviors. If you have adequately trained and sufficiently practiced to meet a set of challenges, responding to adverse conditions is often relatively easy and successful. But reacting to situations you are not prepared for or accustomed to can frequently lead to knee-jerk actions that are neither thoughtfully conceived nor efficiently executed.
The difference between response and reaction generally boils down to deliberate preparation, prior planning, and intentional action – versus simply doing something from a place of fear or panic. Emergency response organizations, for example, drill and train for the inevitable. When a fire erupts or a traffic accident happens, firefighters and police officers typically view the situation as another day at the office because they have planned in advance to react in an intelligent, effective and professional manner. They have the resources on hand, they understand how to best deliver them, and they confront the situation from a position of strength, not in a weakened state of distress.
One of the interesting things about response versus reaction is that once one reaches a certain level of training, instinctual behaviors become transformed from reactions to responses – and from reactionary to responsible. The first time a new quarterback enters a professional game it can be a harrowing and clumsy experience. But after some time and a little bit of repetitive practice, flawless responsiveness becomes instinctual and subconscious. The blur of defensive linebackers rushing forward no longer inspires panic but indicates openings downfield that can be exploited for more yardage or a score. The quarterback begins to respond even better under pressure, because that environment produces energy and insight.
Similarly, when a business is planned with proper contingency solutions in mind, it can avoid missteps and bad judgments while capturing a greater market share. Experiencing an economic recession only makes it stronger by allowing it to put into action the concepts that it has been practicing all along. And while it survives it thrives, because of the simultaneously weeding out of weaker and less capable competitors.
“Man can only become what he is able to consciously imagine.” – Dane Rudhyar
Dane Rudhyar (1895-1985) was a respected modernist composer as well as a pioneering modern psychological astrologer. Born in Paris as Daniel Chennevière, he immigrated to the United States in the early 1900's. His music utilizes dissonant harmony; he claimed to be inspired by the cadence of speech. His work influenced a group of composers known as the ultramodernists. He also wrote a number of astrology books, including the seminal Astrology of Personality.
B.I.T.S - Business Improvement Tips & Strategies
Recession-Proof Your Business: Volume 3
The Critical Difference between Response and Reaction
Coaches often talk about the need to remain calm and aware under duress, so that instead of simply reacting in a random and haphazard fashion one can respond with more levelheaded and effective behaviors. If you have adequately trained and sufficiently practiced to meet a set of challenges, responding to adverse conditions is often relatively easy and successful. But reacting to situations you are not prepared for or accustomed to can frequently lead to knee-jerk actions that are neither thoughtfully conceived nor efficiently executed.
The difference between response and reaction generally boils down to deliberate preparation, prior planning, and intentional action – versus simply doing something from a place of fear or panic. Emergency response organizations, for example, drill and train for the inevitable. When a fire erupts or a traffic accident happens, firefighters and police officers typically view the situation as another day at the office because they have planned in advance to react in an intelligent, effective and professional manner. They have the resources on hand, they understand how to best deliver them, and they confront the situation from a position of strength, not in a weakened state of distress.
One of the interesting things about response versus reaction is that once one reaches a certain level of training, instinctual behaviors become transformed from reactions to responses – and from reactionary to responsible. The first time a new quarterback enters a professional game it can be a harrowing and clumsy experience. But after some time and a little bit of repetitive practice, flawless responsiveness becomes instinctual and subconscious. The blur of defensive linebackers rushing forward no longer inspires panic but indicates openings downfield that can be exploited for more yardage or a score. The quarterback begins to respond even better under pressure, because that environment produces energy and insight.
Similarly, when a business is planned with proper contingency solutions in mind, it can avoid missteps and bad judgments while capturing a greater market share. Experiencing an economic recession only makes it stronger by allowing it to put into action the concepts that it has been practicing all along. And while it survives it thrives, because of the simultaneously weeding out of weaker and less capable competitors.
Monday, February 16, 2009
TIDBITS-6
T.I.D. – Today’s Inspirational Devotion
“He who every morning plans the transaction of the day and follows out that plan, carries a thread that will guide him through the maze of the most busy life. But where no plan is laid, where the disposal of time is surrendered merely to the chance of incidence, chaos will soon reign.” – Victor Hugo
Victor Marie Hugo (1802-1885) The French born writer, has a literary reputation that rests primarily on his poetic and dramatic output and only secondarily on his novels. Among many volumes of poetry, "Les Contemplations" and "La Légende des siècles" stand particularly high in critical esteem, and Hugo is sometimes identified as the greatest French poet. Outside France, his best-known works are the novels "Les Misérables", 1862 and "Notre-Dame de Paris", 1831 (translated into English as The Hunchback of Notre Dame). Hugo is buried in the Pantheon.
B.I.T.S - Business Improvement Tips & Strategies
Recession-Proof Your Business: Volume 2
Planning Ahead Means Getting Ahead
Once a company starts losing its bearings and mooring and gets carried away by stormy economic tides it is difficult – if not impossible – to get safely back to shore. During a recession those who were barely afloat sink, those treading water drown, and those without a fixed compass get confused and lose their financial vision, brand identity, and connection to their primary customer demographic. To avoid these effects it is important to prepare well ahead of time for the eventuality of downward market cycles.
According to a January 2008 article published in BusinessWeek, market measurements and forward-looking financial indicators are important tools. Without them business owners may never see hard times coming and can be blindsided and have their cash reserves wiped out without warning. While no business leader has a crystal ball, those who do employ easy to read and understand metrics, benchmarks, and other tools for testing and evaluating performance are in a stronger and more informed position. They can sooner identify trends and more quickly adjust and adapt to changes, which gives them a tactical and strategic advantage over their less informed competitors.
Rather than simply shooting in the dark, those who have the proper tools can find targets and hit them. When profits begin to drift downward, they can realign their focus to hone in on them in a more precise and accurate manner and get back on track to profitability. Those who do not respond proactively to changes are at risk for not only wasting time and money, but also losing their valuable customer base and overall brand integrity and congruency.
“He who every morning plans the transaction of the day and follows out that plan, carries a thread that will guide him through the maze of the most busy life. But where no plan is laid, where the disposal of time is surrendered merely to the chance of incidence, chaos will soon reign.” – Victor Hugo
Victor Marie Hugo (1802-1885) The French born writer, has a literary reputation that rests primarily on his poetic and dramatic output and only secondarily on his novels. Among many volumes of poetry, "Les Contemplations" and "La Légende des siècles" stand particularly high in critical esteem, and Hugo is sometimes identified as the greatest French poet. Outside France, his best-known works are the novels "Les Misérables", 1862 and "Notre-Dame de Paris", 1831 (translated into English as The Hunchback of Notre Dame). Hugo is buried in the Pantheon.
B.I.T.S - Business Improvement Tips & Strategies
Recession-Proof Your Business: Volume 2
Planning Ahead Means Getting Ahead
Once a company starts losing its bearings and mooring and gets carried away by stormy economic tides it is difficult – if not impossible – to get safely back to shore. During a recession those who were barely afloat sink, those treading water drown, and those without a fixed compass get confused and lose their financial vision, brand identity, and connection to their primary customer demographic. To avoid these effects it is important to prepare well ahead of time for the eventuality of downward market cycles.
According to a January 2008 article published in BusinessWeek, market measurements and forward-looking financial indicators are important tools. Without them business owners may never see hard times coming and can be blindsided and have their cash reserves wiped out without warning. While no business leader has a crystal ball, those who do employ easy to read and understand metrics, benchmarks, and other tools for testing and evaluating performance are in a stronger and more informed position. They can sooner identify trends and more quickly adjust and adapt to changes, which gives them a tactical and strategic advantage over their less informed competitors.
Rather than simply shooting in the dark, those who have the proper tools can find targets and hit them. When profits begin to drift downward, they can realign their focus to hone in on them in a more precise and accurate manner and get back on track to profitability. Those who do not respond proactively to changes are at risk for not only wasting time and money, but also losing their valuable customer base and overall brand integrity and congruency.
Sunday, February 8, 2009
TIDBITS-5
T.I.D. – Today’s Inspirational Devotion
"Parties who want milk should not seat themselves on a stool in the middle of the field in hope that the cow will back up to them." – Elbert Hubbard
Elbert Hubbard (1856-1915) a successful American writer, printer, and businessman, is best known for his inspirational essay, "A Message to Garcia." He retired at age 35 from a successful job selling soap to found Roycroft, an artist's colony in East Aurora, New York, where he wrote and printed his own books and magazines while other artisans created Arts and Crafts furniture. He died on the ship Lusitania when it was sunk by a German submarine in 1915.
B.I.T.S - Business Improvement Tips & Strategies
Recession-Proof Your Business: Volume 1
How to survive and thrive, no matter what the economic outlook.
Why some businesses thrive while others implode during an economic recession remains a puzzle to many business-owning entrepreneurs. Some mistakenly assume that all businesses must suffer through recessionary cycles. But the fact is that some companies are essentially recession-proof, and it is not necessarily because they are bigger, better known, or more generously capitalized. What really separates the successful enterprises from those that collapse during down cycles is that they are organized around a uniquely dynamic and healthier approach to business.
They plan for the future and have contingencies in place to confront whatever challenges might arise. They sell products and services that do not go out of fashion as easily. And they focus on profits in an intelligent manner that helps them grow and prosper in both good and bad economic environments.
Here are some ideas for creating a company that will greet a recession successfully:
• Set, measure, and consistently monitor inventory targets, sales goals, and revenues. But make your net profit the main overriding focus.
• Weed out unprofitable accounts and lackluster ventures, services, campaigns, or products. Reward top performers and either reposition those who are not contributing to make them valuable or let them go for the benefit of the overall team.
• Keep in close touch with customers and track their demographic patterns and consumer preferences. The better one knows his or her customers, the better one understands one’s own business.
• Develop strategies to attract new customers, retain existing customers, and sell more products or services to each and every customer. Grow the customer base but also grow net profits in order to capture tangible bottom line benefits.
• Advertise and market aggressively but constantly refine and redefine the campaigns to strengthen the brand and enhance the equity of the brand name to give it greater power, meaning, and recognition.
"Parties who want milk should not seat themselves on a stool in the middle of the field in hope that the cow will back up to them." – Elbert Hubbard
Elbert Hubbard (1856-1915) a successful American writer, printer, and businessman, is best known for his inspirational essay, "A Message to Garcia." He retired at age 35 from a successful job selling soap to found Roycroft, an artist's colony in East Aurora, New York, where he wrote and printed his own books and magazines while other artisans created Arts and Crafts furniture. He died on the ship Lusitania when it was sunk by a German submarine in 1915.
B.I.T.S - Business Improvement Tips & Strategies
Recession-Proof Your Business: Volume 1
How to survive and thrive, no matter what the economic outlook.
Why some businesses thrive while others implode during an economic recession remains a puzzle to many business-owning entrepreneurs. Some mistakenly assume that all businesses must suffer through recessionary cycles. But the fact is that some companies are essentially recession-proof, and it is not necessarily because they are bigger, better known, or more generously capitalized. What really separates the successful enterprises from those that collapse during down cycles is that they are organized around a uniquely dynamic and healthier approach to business.
They plan for the future and have contingencies in place to confront whatever challenges might arise. They sell products and services that do not go out of fashion as easily. And they focus on profits in an intelligent manner that helps them grow and prosper in both good and bad economic environments.
Here are some ideas for creating a company that will greet a recession successfully:
• Set, measure, and consistently monitor inventory targets, sales goals, and revenues. But make your net profit the main overriding focus.
• Weed out unprofitable accounts and lackluster ventures, services, campaigns, or products. Reward top performers and either reposition those who are not contributing to make them valuable or let them go for the benefit of the overall team.
• Keep in close touch with customers and track their demographic patterns and consumer preferences. The better one knows his or her customers, the better one understands one’s own business.
• Develop strategies to attract new customers, retain existing customers, and sell more products or services to each and every customer. Grow the customer base but also grow net profits in order to capture tangible bottom line benefits.
• Advertise and market aggressively but constantly refine and redefine the campaigns to strengthen the brand and enhance the equity of the brand name to give it greater power, meaning, and recognition.
Sunday, February 1, 2009
Business Planning Basics
You have probably heard the proverb "He who fails to plan, plans to fail"... so here are 10 questions created to help you plan your new business, and create your business plan - you provide the answers.
1. What is your business (list your products and/or services)?
2. What is your vision for the business (what do you want it to look like 50 years from now)?
3. What makes your business UNIQUE (how are you different than your competition, outside of price)?
4. Who is your target market (you may have more than one, but be specific for each)?
5. Why would customers want to buy from you (how does your business fill their need)?
6. What is your projected cashflow (how much will you make, and how often will you make it)?
7. Which hats will you wear (what are your specific roles & responsibilities in the business)?
8. Who are the members on your team (this includes anyone who helps you move your business forward)?
9. How much money will it take to startup your business (where will it come from)?
10. How will you test and measure your results (what will you track and how will you track it)?
1. What is your business (list your products and/or services)?
2. What is your vision for the business (what do you want it to look like 50 years from now)?
3. What makes your business UNIQUE (how are you different than your competition, outside of price)?
4. Who is your target market (you may have more than one, but be specific for each)?
5. Why would customers want to buy from you (how does your business fill their need)?
6. What is your projected cashflow (how much will you make, and how often will you make it)?
7. Which hats will you wear (what are your specific roles & responsibilities in the business)?
8. Who are the members on your team (this includes anyone who helps you move your business forward)?
9. How much money will it take to startup your business (where will it come from)?
10. How will you test and measure your results (what will you track and how will you track it)?
Subscribe to:
Posts (Atom)
