Its tax time and spring is on its way. This time of the year usually reminds people that it’s time to do spring cleaning. But when you think about it isn’t it a great time to give your business an annual checkup?
No matter how large or small your business is, you cannot gauge the effectiveness of any changes you’ve made the previous year without analyzing the benefits and bottom line. Doing an annual check up will help keep you focused and keep your business on the right track.
Here are 10 questions to help you get started:
How did your 2007 year-to-date sales compare to the last couple of years?
Don’t be satisfied if you only managed to match what you did the previous year because if sales stayed the same then you’ve achieved zero growth. With inflation, and the way things are going in the economy, this flat growth line is a warning sign for more trouble down the road.
What percentage of your business is from repeat customers?
This is important to know because if this number is low, then you need to evaluate your customer service and marketing. The estimated cost of getting a new customer versus retaining an existing one can be as much as 5 to 1 in terms of dollars spent. Keeping customers is more cost effective than constantly seeking new ones.
How long has it been since you offered a new product or service?
Loyal customers like to see you change and progress with time. If you’re stuck for an idea, ask your customers what they need or hire a consultant to evaluate your business.
Do you consider marketing and advertising an expense or an investment?
How you look at the money spent in these areas affects your willingness to spend money at all. Would you look at prescriptions as a waste of money? Marketing is really investing in you, your vision, and your company.
The old adage that you must spend money to make money is true, but you must spend it wisely. Spend it on marketing that will get you responses and business. If what you’re doing now is not working, once again it may be time to bring someone in to evaluate your situation so that you can make the necessary changes.
Do you know what PR is and how to use it to positively position your business in the media?
I’ll bet that at least one of your competitors does! Nearly every mention that you see of an individual or business in newspapers and magazines are a direct result of publicity efforts. Being quoted or featured in an article speaks volumes to your clients and readers who are your potential prospects.
If you’re interested in branding and marketing yourself or your business, please contact me. I specialize in kreative marketing and can help you implement a great branding and PR strategy.
Are you listed in the yellow pages?
If you only have a line listing, consider including a small ad in the yellow pages. If you can afford it, it will pay dividends throughout the year.
Do you treat your regular customers better than clients who just “drop-in”?
If you don’t then you should! If your customers don’t feel special when coming to you for products of services, why should they remain loyal to you? Have a customer appreciation day or a special invitation only sale for your regulars. Create a mailing list of your regulars and send some occasional post cards or greeting cards for special events or anything to just keep in touch. Learn to recognize them on sight and greet them by name when they visit you.
How long has it been since you really talked to one of your customers?
Just as you appreciate it when your Doctor takes time to talk to you, your customers will appreciate it if you take an interest in their needs. If you have a service business, have lunch or coffee periodically with some regulars - even if they only contact you once or twice a year. The personal touch in an impersonal world will be remembered.
How is your business doing compared to your competition?
Every company, no matter what the size, has competition including home-based businesses. Is their business growing or downsizing? Is their pricing or service better than yours? If so, what can you tell potential customers about the price difference? Think about how you can improve your service to meet or exceed your customer’s expectations.
Are your employees happy?
Don’t ask them directly. Just observe them throughout the day. Watch, listen and learn. Employees who like their jobs don’t watch the clock for quitting time, aren’t habitually late, don’t have poor body language, don’t spend time on personal phone calls, and don’t look like they never smiled a day in their life!
It’s also important to observe how they interact with customers. Not everyone is a good match for direct contact with the public, so make sure you don’t have an employee who is driving business away.
I can remember when I was working at my very first job out of school. It was McDonald’s and I was a cashier so of course I had direct contact with the customers. In my training they taught me to smile when I talk to people. That was something I could do without any problems – especially when I talk to someone face to face. Then one day my manager gave me the best business tip of my life. He pointed out to me that when talking to customers on the telephone I should still smile at them.
For some unexplainable reason, when you smile as you talk on the phone, the exchange with the client becomes more pleasant and more productive. It’s as if that smile went right through the phone wires to the person to whom you’re talking. If this is not something you already do then you should try it. You may be pleasantly surprised at the reaction you receive!
To Your Health, Wealth & Happiness!
Pam Lawhorne
Pam Lawhorne is a serial entrepreneur, small business expert and creative marketing consultant, who provides advice, guidance, and encouragement to aspiring CEO's around the nation in her popular seminars and publications. She is the Chief Empowerment Officer of Empower U, Incorporated, a training and consulting firm that specializes in interactive workshops, seminars and coaching programs.
Ms. Lawhorne is the author of “From Minimum Wage To Getting Paid! - How To Become A Successful Entrepreneur With No Money, Education Or Experience!" and she is also a syndicated columnist who writes articles on empowerment, entrepreneurship, personal development, creative marketing and real estate investing. Her articles appear nationally in newspapers, magazines, and on numerous business websites and on-line publications. For additional information please visit her website: www.PamLawhorne.com.
The above article is copyright 2003-2008 by Pam Lawhorne. Permission to repost is freely granted so long as the text is not altered in any way, and the copyright and links are included.
Tuesday, January 22, 2008
Monday, January 14, 2008
Become Your Own Personal CFO
Budgets and personal finances are not most people’s favorite topics, and certainly not one of mine. Most bank executives even have problems in this area, and if you’re an entrepreneur then more than likely you probably do too! It's not that you don't care or anything. It's just that you’re probably concentrating so much on your business that your personal checkbook takes a back seat. Then one day you are met with the startling fact that you’re not saving enough for lean times and you panic. Then what?
Well, just apply your professional talents to the situation and become your own personal CFO! By focusing your 'CFO' eyes on the situation, it somehow tempers the pain of dealing with your own money. To get started, here are 5 rules for treating your personal finances like a business:
1. Be Your Own Board Of Directors.
To make good decisions, you must know what you’re trying to achieve. In business, Board of Directors write mission statements to keep the company on track with goals. At home, it’s up to you to define your mission and make sure you’re fulfilling it by writing down your goals. Not just your financial goals either, but your “life” goals as well.
2. Know Your Operating Costs.
Do you know what you spend every month on average? Businesses do because they base their budgets on historic spending patterns. Most people, however, don’t know what it costs to keep their lives running. You can make out detailed budgets, but find out at the end of the month that you haven’t stuck to it. So instead of doing a budget that dictates how much to spend, do a “cash flow statement” that records how much you actually spend each month broken into several categories.
3. Know Your Net Worth.
Companies measure the progress towards their goals through balance sheets which list their assets and liabilities. Your net worth is your balance sheet where you list everything that you own. That means your checking and savings accounts, investments, car, house, etc. minus everything you owe. Track your net worth quarterly to make sure you’re moving toward your personal goals. Without this step, you might not see the impact of your money decisions until it’s too late.
4. Forecast Money Decisions Results.
When a business makes important decisions, they use a process called “scenario planning”. They look at the possible outcomes of one choice compare to another. You can use the same process to make smart money decisions. For any choice, pick two options, and then look at what each answer would do to your cash flow and net worth. Remember, there are no “good” or “bad” choices – only choices that put you closer or farther from your goals.
5. Track Progress By Annual Reports.Just as companies assess their progress in their annual reports, you need to review your list of priorities every year.
- Have you accomplished any goals?
- Have your spending patterns changed?
- Did you spend less than you earned?
- Did you save as much as you planned?
You need to treat your money like you treat your business. Give it the time it deserves, because in the end the time you spend is really an investment in yourself and your dreams.
To Your Health, Wealth & Happiness!
Pam Lawhorne
Pam Lawhorne is a serial entrepreneur, small business expert and creative marketing consultant, who provides advice, guidance, and encouragement to aspiring CEO's around the nation in her popular seminars and publications. She is the Chief Empowerment Officer of Empower U, Incorporated, a training and consulting firm that specializes in interactive workshops, seminars and coaching programs.
Ms. Lawhorne is the author of “From Minimum Wage To Getting Paid! - How To Become A Successful Entrepreneur With No Money, Education Or Experience!" and she is also a syndicated columnist who writes articles on empowerment, entrepreneurship, personal development, creative marketing and real estate investing. Her articles appear nationally in newspapers, magazines, and on numerous business websites and on-line publications. For additional information please visit her website: www.PamLawhorne.com.
The above article is copyright 2003-2008 by Pam Lawhorne. Permission to repost is freely granted so long as the text is not altered in any way, and the copyright and links are included.
Well, just apply your professional talents to the situation and become your own personal CFO! By focusing your 'CFO' eyes on the situation, it somehow tempers the pain of dealing with your own money. To get started, here are 5 rules for treating your personal finances like a business:
1. Be Your Own Board Of Directors.
To make good decisions, you must know what you’re trying to achieve. In business, Board of Directors write mission statements to keep the company on track with goals. At home, it’s up to you to define your mission and make sure you’re fulfilling it by writing down your goals. Not just your financial goals either, but your “life” goals as well.
2. Know Your Operating Costs.
Do you know what you spend every month on average? Businesses do because they base their budgets on historic spending patterns. Most people, however, don’t know what it costs to keep their lives running. You can make out detailed budgets, but find out at the end of the month that you haven’t stuck to it. So instead of doing a budget that dictates how much to spend, do a “cash flow statement” that records how much you actually spend each month broken into several categories.
3. Know Your Net Worth.
Companies measure the progress towards their goals through balance sheets which list their assets and liabilities. Your net worth is your balance sheet where you list everything that you own. That means your checking and savings accounts, investments, car, house, etc. minus everything you owe. Track your net worth quarterly to make sure you’re moving toward your personal goals. Without this step, you might not see the impact of your money decisions until it’s too late.
4. Forecast Money Decisions Results.
When a business makes important decisions, they use a process called “scenario planning”. They look at the possible outcomes of one choice compare to another. You can use the same process to make smart money decisions. For any choice, pick two options, and then look at what each answer would do to your cash flow and net worth. Remember, there are no “good” or “bad” choices – only choices that put you closer or farther from your goals.
5. Track Progress By Annual Reports.Just as companies assess their progress in their annual reports, you need to review your list of priorities every year.
- Have you accomplished any goals?
- Have your spending patterns changed?
- Did you spend less than you earned?
- Did you save as much as you planned?
You need to treat your money like you treat your business. Give it the time it deserves, because in the end the time you spend is really an investment in yourself and your dreams.
To Your Health, Wealth & Happiness!
Pam Lawhorne
Pam Lawhorne is a serial entrepreneur, small business expert and creative marketing consultant, who provides advice, guidance, and encouragement to aspiring CEO's around the nation in her popular seminars and publications. She is the Chief Empowerment Officer of Empower U, Incorporated, a training and consulting firm that specializes in interactive workshops, seminars and coaching programs.
Ms. Lawhorne is the author of “From Minimum Wage To Getting Paid! - How To Become A Successful Entrepreneur With No Money, Education Or Experience!" and she is also a syndicated columnist who writes articles on empowerment, entrepreneurship, personal development, creative marketing and real estate investing. Her articles appear nationally in newspapers, magazines, and on numerous business websites and on-line publications. For additional information please visit her website: www.PamLawhorne.com.
The above article is copyright 2003-2008 by Pam Lawhorne. Permission to repost is freely granted so long as the text is not altered in any way, and the copyright and links are included.
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