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Getting Started with 2010: A Few Actions are Better than Nothing.
I have been spending the last few weeks polishing up 2010 Business Plans and Budgets with many of my clients. Some have jumped into the process with both feet, others want to test the water and a few say they “can’t swim” meaning they are procrastinators. Which group do you fit into?
For those who have not been totally converted to basic business planning and budgeting here are a few suggestions to get started:
The Rule of Threes:
When you think about your business in 2010 what are the most important issues you will face in these three areas:
1. Sales and Marketing
2. Operations
3. Finance and Administration
For example, in Sales and Marketing you might select three initiatives:
1. Reverse your sales trend
2. Improve your margins
3. Reduce your inventory
Now, what are the three actions that you would take to reverse the sales trend? Select three actions that would help you accomplish this initiative.
1. Look at your sales mix (the composition of your sales). Which categories of merchandise sold the best and which the least? What actions should you take?
2. Analyze your customers to determine who purchased the most and the least.
3. Review your promotions and determine which produced the most and the least response?
Continue the process by always focusing on three areas and three actions.
Assign someone to be accountable for each area and each action even if it is you. Set goals, expectations and accountability for each area.
If you get this far, chances are you will continue with the process. If I have piqued your interest, download a free copy of my latest book, A Journey with Mac. There are several chapters devoted to Action Planning and even how to create an Action Plan.
Begin now and push the year-end excuses aside. Procrastination destroys more ideas and businesses than anything else.
Who do you need to remember for the Holidays?
What better time of year to remember friends and loved ones than this holiday season. Unfortunately, we are all so busy that our remembrances are often too short and we tend to forget those that contributed to our success. Take the time to recall your friends, family members and especially your clients and customers so you can acknowledge them in a special way.
With the technology available today it is easy to send an appreciation whether a simple email, an email greeting card (I use americangreetings.com ), or amazon.com for that special gift.
A donation to a charity in the name of the recipient allows you to support a charity while remembering that special person. Gift certificates are easy to purchase from local restaurants and movie theaters without leaving your office.
In the next few hectic weeks there are plenty of opportunities to remember those who care about us. Let them know how you feel about them. A remembrance now during the holidays reminds us what the season is all about.
So let me be the first to wish all of you (y’all for you Southerners) Happy Holidays and a healthy and prosperous New Year
Retailers: Be aware of how you are being represented!
My wife and I just returned from Boston visiting family, sightseeing and of course shopping. One day we went to Quincy Market, Faneuil Hall and The Gallery at Copley Square. We looked around more than we bought but I was stunned by one observation; the attitude of most of the staff.
With the cutbacks in sales staff, those remaining are working additional hours and should certainly feel the pressure to making sales. Consequently there are a lot of worried and tired folks out there. Our first stop was a kiosk at Quincy Market. The owner, sitting on a stool, never made an attempt to acknowledge our presence. When my wife finally went over it was as if the owner was “doing us a favor” to wait on us. After a few minutes of conversation she seemed to perk up and as my wife engaged her in further dialogue the owner became more animated and actually became interested in what was being said. The result was she made a sale, but how many others would have simply walked away? How many of you would you have tolerated her attitude? Were it not for my wife, I would have walked within seconds.
Entering several other shops we were met with less than enthusiastic greetings, if any at all. The clerks looked like “deer in the headlights.” The lackluster greeting of “may I help you” was matched with our “no thanks, just looking.” In a boutique department store we watched a manufacturer’s rep. sharing product knowledge with the associates who, it was obvious, were not that interested.
Even in a top-of-the-line department store we experienced a mixture of “don’t bother me” or “do I have to leave the group I am chatting with” body language. Eventually we did find several energetic sales associates and made a couple of small purchases. Our interest (and our spending) picked up when we were engaged with those showing a genuine caring attitude.
It makes no difference if you are an individual proprietor or the manager of a large department store because employees who deal with your client’s day in and day out are representing you. The challenge for all retailers is to meet or exceed a customer’s expectations. Ken Blanchard, in his book “Raving Fans,” hits the nail on the head with his rules for creating exceptional and loyal customers. I recommend it highly. Click here for my “Recommended Reading” link.
I’d love to hear your customer service stories. With your permission I’ll publish them on this site and let them be a lesson to all. Take a moment to write me your favorites;
Best,
Coach Katz
Is the check really in the mail?
With the economic pressures upon all of us, stretching the dollar is of major consideration. Each of us is reevaluating our budgets, cash flow and accounts receivables. Having worked with clients on how to stretch their dollars and improve their cash flow here are a few suggestions for improving accounts receivables:
Remember you are in business to market your products and services but you are NOT in the business of financing your customers. If you have an outstanding bank loan and are paying interest while your accounts receivables are 60, 90 days or older, you are in reality financing your customers’ business; paying unnecessary interest while (in the majority of the cases) your clients are paying you none.
Consider some of these concepts to increase cash flow from overdue accounts:
* Take credit cards to reduce the number of outstanding accounts. Switch balances from old outstanding accounts to credit cards.
* Eliminate adding any new accounts by taking only credit cards. Credit card fees are less than “carrying an account.”
* Establish a formal collection process.
* Make sure all statements are going out on time and the same time each month.
* If a 30 account is not paid in 45 days call the customer and ask them “when can I expect a check?” Even a partial payment is better than nothing.
* It may be necessary to set up a payment schedule that will bring in cash from each owing customer each month. Train the customer to pay something monthly. The longer a customer delays payments the harder it is to collect.
* If there has been no payment in 60 days repeat the process. There is a tendency for many to remain in “denial” or simply not believe you are serious about payments.
* If no payment has been received or payment arrangements made within 75 days, write a letter that the account will be turned over for collection. Send the letter FEDEX, UPS or certified mail. This will add to the urgency.
* After 90 days turn the account over to a collection agency and let them take it from there. Typical fees are 50% but at least you may still get something.
The old adage, the squeaky wheel gets the oil, applies here. Take action now. Don’t put off the collection process. It works!
Oh, By the Way College Senior’s its November…Do You Have a Job?
A student approached me after class today and with a panic in his voice said, “I don’t have a job. What should I do?” My business class is devoted entirely to relationship building and a significant portion is spent on networking. Classes started at the end of August and this student has been attending the classes but wasn’t listening to the discussions. Now panic sets in.
Unfortunately this encounter takes place far too often. Why? College is safe from the real world and breeds procrastination when it comes to planning a career. Years ago, I remember having the same uncomfortable thoughts and have devoted a great deal of my life working with students in career planning and helping them overcome their fear of “life after college.”
Most of us know what we do NOT want as a career. Professionals such as lawyers, accountants, doctors, etc. have a direction and follow a curriculum that supports those careers. But what about the business major or liberal arts major?
Here are some ideas to get you started in planning your career choices.
1. List on paper your likes and dislikes regarding career choices.
2. Place the positive choices in priority
3. Research the opportunities in these fields
4. Locate a mentor to support your efforts
5. Create a resume that “separates you from the pack”
6. Learn the techniques of networking and creating “centers of influences”
7. And most of all don’t procrastinate!
These steps, if done diligently, will focus you and should create a proactive attitude for this most important step in your life. If you want some help give me a call. I’ve had lots of success in helping young folks bridge the gap between the college dorm and the business world. Its six months until graduation and the odds of securing a job are NOT in your favor in our current economic downturn.