Its all about business.

Archive for March, 2008

Really? That’s the BEST you can do?

Mar 20

Posted by Michael Crooks in Excellence!, Starting out in business, The Customer Service Dept, The Marketing Dept, The Operations Dept, The Sales Dept | 1 Comment

I received an e-mail from a supplier yesterday. They sent me a proof to approve and fax back to them.

First thing I noticed was that my Purchase Order (PO) number was wrong. The next thing I DIDN’T notice, was the fax number to which the supplier wanted me to fax the approval back. It was buried within 3 pages of blah, blah, blah … blah, blah, blah.

I faxed the proof back noting my approval. I also noted that my PO# was incorrect and what the correct number is. I then mentioned that they should consider putting the fax-back-to number right on the proof. Ya know, because it would make it easy for me.

The supplier wrote me the following reply:

Mr. Crooks.

When your PO came across our fax machine the numbers on it were hard to read. The Order Entry Department did the best they could considering what the fax looks like but, I assure you, I’ll change that one incorrect digit. I truly apologize for your inconvenience. I’ll forward your idea about a fax number being on the proof to the proper department.

In my opinion, the Order Entry Department DID NOT do the best they could. Their best would have been to call or e-mail me to verify the hard-to-read-information. So, if guessing is the best they can do … do I need to find someone with perhaps higher standards?

Look. You don’t have to be a genius to put a fax number on a form that you want a client to fax back to you. Nor does it take the wisdom of Solomon to verify information you can’t understand.

With regard to service, attention to detail and making life easy for your clients, before you tell someone, “That’s the best I can do” ask yourself, “Is that the best my competitor can do?” Find out before your client (ex-client) does.

Leadership is it… PERIOD!

Mar 19

Posted by Steve Gray in Excellence!, Leadership, People!, Personal Development, Planning, Starting out in business | No Comments

Leadership is it… If you have ever wondered about what makes a solidly compelling and successful company, well check the list and see what you think…

A leader leads by example… If it’s a brilliant business the leader is brilliant and that excellence is passed down with ease. They follow excellently because they were led excellently, and when they get to lead they do the same.

A leader plans… For the future, for the next five minutes, for the next five years to ensure success.

A leader is creative… It’s the only way to have an edge in business, call it innovation or any other term it’s creative approaches that work in a changing world. Anything else is a cop out.

Leaders go for positive results… That’s what they do because it’s good for business, good for staff great for customers and in the long run it can be fantastic for the environment.

Leaders love people… They know that to get the wheels turning it takes people, people to buy, people to sell, people to create, people to manage and people to lead.

Ever had a doubt about what it is that makes a winning business? Well not now, I have just told you… leadership of the highest order makes the difference…

The basics of the basics of business.

Mar 11

Posted by Steve Gray in Finance, Planning, Risk Management, Starting out in business, The Board Room | No Comments

Let’s get simple with the $$ and the practicalities of business.

$$ in, this comes from the sale of goods, services and the income from investments made on behalf of the business.

$$ out, these are the expenses your business has.

Profit (or loss) is the difference between the $$ out and the $$ in.

The aim of the business, from a financial perspective is to make a profit and therefore have more in than out. (There are exceptions but in the main this is the main idea.)

With the practicalities of business, either you fulfill a want or a need with the service or product you are offering, if there is no need or want for what you have then no one buys.

So knowing the above points, a few questions come to mind, the profit amount you need to make, and is the product and or service range on offer sustainable when I make that level of profit?

Big questions perhaps, but ones that you should keep quite simple. If you get these right then your business will provide you with the sort of lifestyle you believe you deserve. One way of doing this is to figure out the industry average for profit margins and apply that to your business and or to look at what you need to grow your business to keep up with the costs of living and development that takes place, this way you can adjust the profit to suit.

It might seem okay to provide the market with 1,000 items per week @ $5 each, and make a profit of $4 per unit but if the price of living etc goes high too fast then it can fade into insignificance. Therefore the astute business operator has to make sure they have their finger on the pulse to effectively know what’s going on so they can balance things effectively, otherwise they can soon end up working for very little.

That’s the basics, how you go about measuring them and implementing the ideas presented are another thing, but being able to do so will ensure you can keep ahead of the costs and see things grow effectively over time. Therefore if someone says they do not want to grow their business you know they don’t know about the basics and why it’s so important to do so. Perhaps one of your tasks is to remind them…

The money or the end product?

Mar 10

Posted by Steve Gray in Finance, Growth, Planning, Risk Management, Starting out in business, The Board Room | 2 Comments

When you start out in business or develop a new product there is an inevitable challenge to figure out if the emotion that motivates the initiative is the only thing making it happen or the $$ are a motivator as well.

I guess the ideal is both. People want the product, you make it, they pay the $$ and at the end of the process you benefit by getting $$ in and make more than the cost of the item, therefore you have a profit.

Here’s part of the challenge as I see it, people want to provide “stuff” and so they do so with the intent of it being a, something people want (it fills a gap or need in the market place) or A, something they need. Sometimes however they run into the idea that they can do it at a good price and not need to make much int eh way of $$ (the emotion takes precedent over the practicality of having $$ to run the business and make it prosper.

Lets work on the idea that both can be useful and in the case of a business with two or so partners this might become an issue early on, one wants to solve a problem the others want to make $$. Not a long wrong with that, and in fact if a partner in business does not want to make $$ then I question if they realy should be in business.

So it’s a conundrum that many businesses face how far do I go with both the emotional and practical side of the business and how do I measure this to make sure I don’t tip the scales one way or the other?

Until next time I want you to keep checking your business or business idea for both and see if there is a balance that is readily struck or not.

Watch where you step…

Mar 7

Posted by Steve Gray in Franchisees | No Comments

Another franchise buying tip for the non business person.

You are excited about the business you are looking at and in most cases you have gone out on a limb  and “emotionally bought in” to the business and no matter what someone tells you, you are going to buy it. BUT to be sure you have made sure and made an appointment with the franchise groups marketing and sales dept and want to find out more.

In essence  you have already bought and the more details you seek from the company (who’s main interest is to sell you a franchise) the more they know you are interested. However the smart person will take this step and make it just another part of their research… but watch out for the things that some people would say are sneaky habits the sales crew might use.

- There are limited opportunities – We are selling x No of territories per week, so don’t miss out. This is often true but how long has the territory you are after been on the market? is it a resale and if so why? Get in touch with the previous owner and hammer them for info, the real info not the trumped up “Oh I have a back injury and can’t continue…” ask about the turnover, the profits, and the customers perhaps even the staff they had or still have etc.

- A good operator can make a real go of this franchise – Then ask them to define a good operator, if its a person that works 16 hours per day, 7 days a week then you might need to rethink things. Call up existing franchisees and see what sort of commitment they are putting in and the payola for that.

- Your time is your own – Sure you might have time flexibility but at what cost? If you take a day off to go to kids functions, performances etc will the income drop for the time you are not there (especially if you are a one person franchise).

- We support and train you – Okay what sort of support do they really give, ask the other franchisees when you do your research… find out how they practically put in to make your business be all it can be. Do they hep your with business plans, do they review business plans? and the list goes on.

- It’s a great lifestyle choice, you can be your own boss! – So what’s the advantage in that? Often it means more headaches than just working for someone else. Start asking people in business about being a boss and what that might really mean to you.

These are just a few, but I  hope it helps  you to “see through” the surface information to find the real  meat in the sandwich, not just the fillers.

Watch your language!

Mar 5

Posted by Steve Gray in Franchisees | No Comments

If  you are out to buy a franchise watch out for this trick designed to lure the non business person into their lair…

- Income guarantee -

You currently have an income with a job, you get $$ to take home and spend… that’s the usual definition of income, but in business circles this can be used to have you thinking that, but in fact  you get income that you then have to pay the costs of doing business out of. In fact it should be stated that it’s a turnover guarantee, then once the costs have come out you are left with some $$ (if you are lucky!) and then you can take your income out of that.

The lesson know your business terminology, get a glossary of business terms and make sure you  have a solid understanding of this important area so you can talk turkey and not feel like one!

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