Thoughtful Thursdays - How's the bottom line?

Over the years I have witnessed apparently successful businesses exit the market place. Many reasons are given, but in the end, if it was not a planned exit, it came down to insufficient cash resources to run the business.

Today's thought is about maintaining margins as costs continue to rise.

Continued non-response to increasing costs will put the profitability of your business at risk. Small business owners often absorb increases for fear of loosing their customers if they raise prices. If the market is unwilling to accept a price increase, then the business must find a way to reduce their costs.

A thorough examination of operations including mapping of all processes will provide a good indication of where improvements might be implemented, the result being in cost reduction. This should be done on an ongoing basis to keep costs under control. Owner operated businesses are often so busy managing day to day activities, this type of exercise pushed aside.

Do not use the excuse of "We might loose the customer if we raise our prices" to avoid taking the time to accurately nail down your costs, do your homework. Recall how hard you worked to get your customers. Reinforce the value of doing business with you and if a price increase is justified the chances of successfully implementing it will be greatly increased.

Reduced profit margins are every business owner's concern.

Good selling,

Richard

Thoughtful Thursdays - Learn from the people you buy from

I would be willing to bet you have a list of product or service providers you prefer to do business with.

Maybe it is the favourite restaurant you frequent and no matter hwo many times you read the menu, you end up ordering "the usual". Your server may already know you and ask if you if want "the usual".

It could also the service station you have to drive a bit further to get to now, but you always go there when your car is in need of service.

How about the hair stylist you have followed from salon to salon over the years?

The list goes on...

Today, think about why you continue to take your business to these businesses and list the reasons. Review the list and ask yourself if your customers feel the same way about you.
You can learn a lot from the people you buy from.

Good selling,
Richard

Thoughtful Thursdays - Sharing experiences

I had the pleasure of moderating an entrepreneur panel this week for group of people preparing to launch their business ideas.

The panel was comprised of three business owners from diverse backgrounds. Their businesses represented products, services and a combination of both. The length of time since start up ranged from five to seven years.

Although the businesses were different and the backgrounds of the owners diverse, it quickly became clear they shared many points of view. I want to share a few of these thoughts today.

• Listen to the people you are talking to
• Reduce the stressors
• Be mindful, but do not let what is worrying you, stop you
• Focus on the positive and feed from that energy, not what comes from the negative
• Get over your mistakes quickly and learn from them
• When working from a home based office find a way to disengage from work - clear your mind of the distractions
• Pay attention to proper nutrition and exercise
• Create structure and routines and follow them - BE ORGANIZED!
• Join industry-based associations
• Give back selectively, volunteer where it makes sense
• Train your customers to the way you do business
• Deliver on your commitments
• Review your business plan once a year and set annual goals
• Be aware your cash position - monitor what is coming in and going out
• Know what your value proposition is and communicate it - stand out in your field
• Celebrate your successes
• Know yourself - strengths and weaknesses
• Don't think you have to or need to do it all yourself, ask for help - it is out there if you look for it

I want to thank the panelists for generously donating their time and sharing personal experiences with a group of eager new business owners.

Lara Bazant - Bazant Unique Adornments
Clare Kumar - Streamlife
Luigi Benetton - Luigi Benetton Communications

Good selling,
Richard

Thoughtful Thursdays - Be a better listener

Being a good listener is a characteristic demonstrated by successful people in every walk of life and sales is no exception. You can become a better listener by putting into practice a few simple thoughts.

•  Focus on the speaker
• Avoid distractions - turn cell phones off, do not incoming take calls, stay on topic, tune out the noise
• Make eye contact
• Acknowledge and empathize
• Do not interrupt
• Be interested and learn
• A bit of silence is okay

A lot of the selling process is about asking, when you ask a question have the courtesy of listening to the response and hearing what your customer or prospect is saying. Assessing the situation and determining needs is facilitated by being a good listener.

It sounds easy, it may take longer than you think to improve your skills. The improvement in the quality of your conversations will be noticeable with the increased information that becomes available to you. Being a better listener pays off in the long run.

It has been said may times before: You have two eyes, two ears and one mouth. Use them in similar proportions.

Good selling,
Richard