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.
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