“If It Doesn’t Add Up, Don’t Do It”

Business coach, Dennis Kelley wrote recently about the “Language of the Numbers” and the importance of understanding what the numbers are telling us. At the risk of being blunt, business is all about making a profit. So if your numbers or business strategies aren’t adding up to business profits, don’t do it, or do it differently; plainly spoken “If It Doesn’t Add Up, Don’t Do It”.

At Action Coach of Akron/ Canton we teach clients that a successful business is, “a commercial, profitable enterprise that works without you”. This means your business must give a good return on investment plus a full wage for every hour you spend working in your business. You can then pay someone to do your job and the business profits are not affected.

Our quote, “if it doesn’t add up, don’t do it” can be applied in all areas of your business. Advertising is an example. If an ad is run and does not get an immediate response, there is no point in keeping that ad running. It is wasting precious time and money. Change the ad or where it is running.

Increasing your team must also add up in dollars. Perhaps a business should consider setting training and operating systems in place so less expensive team members can be hired to follow the systems, rather than hiring seasoned veterans who have the “head knowledge” of how it should be done. Alternately perhaps the business should look at new machinery or technology instead of more team members.

If you want to buy a business the figures also must add up – or have the potential to do so. Make a list of the criteria the business must fill and make sure this list is completed before you commit yourself. Many people buy into something believing it would fulfill their needs, only to discover the figures were inaccurate or did not add up. If you are not sure, get help. Two heads are better than one, and prevention is better than cure.

A great idea when looking at a business is to check the industry average and see how your business compares. Given that four out of five businesses go broke in the first five years, you may want to be better than average.

Finally the bottom line where your figures must add up is in net profit margin. To get this figure a business must add all expenses, including an appropriate wage for all the hours put in the business, plus interest on the capital you put into the business. This will give your real margins.

“If It Doesn’t Add Up, Don’t Do It” must be applied regularly. Don’t wait until the end of the financial year to find if you have made a profit. Business is work, but it should also be fun.

The Language of Business is Numbers!!

Numbers are the language of business or your SCOREBOARD in the game of business. If you are challenged by the numbers of your business you are not alone. Many owners struggle to understand the financial statistics that are so critical to the health of any business. Most people do not get this education in school and many times do not take classes in financial management in college. The task of understanding your numbers can be intimidating at times and we tend to shy away from things that we do not understand.

The key with numbers is to gain a good working knowledge so you can make quality decisions to positively impact your success. A good accountant and/or bookkeeper can assist you getting the specific and critical numbers you need to interpret in your business. Accountants and bookkeepers have much more to give and do than just your tax returns. Use them to increase your knowledge and get your money’s worth. A coach will then help you to use this information on a weekly or monthly basis in order for you to use it to YOUR advantage in a practical sense.

Putting together the scorecard that you review on a regular basis is one of the keys to business success. At a minimum EVERY business should have an income and expense budget, a cash flow budget and the key performance indicators needed to understand how the business is performing. It is also critical to produce and review performance against these budgets as well as a Profit and Loss Statement, Balance Sheet, and Cash Flow projections. Obtaining this information and analyzing it on a regular basis will keep your business on solid ground.

Making decisions in business without this information can quickly lead to major problems. In fact, a business that is doing really well in sales and growth can get into as much trouble as a business struggling in these areas if the owner doesn’t know the language of business … their numbers! Learn your numbers, and if you need help take ACTION today and ask for it. Your business depends on it!

Achieving Unlimited Success book launch

I am pleased to announce the completion of my new book titled Achieving Unlimited success; How to Get Out of Your Own Way and Live the Life of Your Dreams (Aviva Publishing, NY.) The book will be released at the end of March and is available for pre-sale today. Visit http://www.achievingunlimitedsuccess.com/to learn more and order a copy.

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Whether that is a highly successful business, a strong career, a 6 or 7 figure income, or something more, this book will teach you what you need to know to create the life you want. The task of achieving unlimited success in your life is yours. Take action today to begin building the business and the life you desire. Nothing can hold you back once you have identified what you seek and commit to taking action on your plan. Order your copy today and begin your journey!

Building Trust in Your Business

Over the past several months there have been many instances where consumers have been left with trust issues about business. From E. Coli in spinach, to lead in toys -- there have been many concerns about product safety lately. Add to that the trust concerns consumers have about price increases in energy, food and health care and trust in business would seem to be taking a hit.

It's interesting then that a recent study called the "Edelman Trust Barometer of 2007" indicates that 58 percent of U.S. college-educated opinion leaders age 35 to 64 say they trust business, up from 44 percent in 2002. That is a significant increase over the last five years. The study indicates that overall, people trust local brands more than global ones. That could be a major factor in the message you convey to your clients and prospects.

Another interesting finding is that, "People are nearly twice as likely to believe a regular employee of a company as they are the CEO," says Laurence Evans, president of StrategyOne, the research arm of Edelman. Typically, your customers are interacting with your team members on a day-to-day basis so empowering your team to make decisions and take action to WOW a customer will pay big dividends in your customer satisfaction levels.

Take the time to train and build credibility with your team. Create a culture of truthfulness and integrity in your business and this culture will come out when serving your clients. If they trust you and they believe you then they are much more likely to buy from you ... and come back for more!

Build Your Referral System

Referrals are your best source of future prospects and can be one of the most economical prospecting methods you will ever use. However, before asking for referrals effective customer service techniques must be implemented.

Before you can ask clients for referrals, you must be sure they are pleased with the product or service they have received. Prior to implementing a successful referral process, effective customer service techniques must be practical, or they are unlikely to be carried out. Most of the customer service techniques are simple and can be easily carried out. This is about doing what you say you will do. Remember: Always under promise and over deliver.

Great customer service builds great relationships.

Be attentive to customers, it will gain customer loyalty and acquire new customers. When customers receive proper attention, they often feel that they are getting their money's worth and that their needs are being satisfied. It is also important for sales professionals to solicit customer opinions often about how products or services can be improved so that customers feel valued. In addition, sales professionals and then-clients can brain-storm regarding cost-saving methods, thus creating customer loyalty by accommodating customers' needs. By taking time at the beginning of a sales negotiation to create better customer service, sales professionals can ensure that customers' needs are being met while maintaining good relations.

Sales professionals need to work "smarter" to meet customers' needs instead of simply closing sales. These simple, inexpensive methods of customer service will establish good relations with customers, which is the prerequisite for requesting referrals.

When should you ask for referrals?

Is it better to ask clients for referrals during the sales closing or during the client follow-up? According to several sales process experts client follow-up is the best time to ask for referrals. Wait until you know that the customer is pleased with your service.

There are several ways to implement the referral process.

1. The direct approach, which involves asking customers for referrals after the customer-service techniques have been implemented. If customers do not immediately give recommendations, then the sales professional could mention colleagues or businesses associated with the customers. This will help customers to remember their business contacts, and usually they will give referrals.
2. Offer incentives to customers for referrals. For example, sales professionals/management could offer a 10 percent discount on the next purchase or contract after customers' referrals become new customers.
3. Give gifts to show appreciation. This can be as simple as inviting customers to lunch (under the presumption of showing appreciation), at which time you can easily request a referral.
   

Requesting referrals and implementing the referral system are both very basic. First, build a relationship with customers. Once you are confident that a customer has a favorable attitude and opinion of you and your company, it is the ideal time to begin requesting customer referrals. These referrals include the customer's colleagues, friends, or competitors, which can create a huge network and more sales. It is mandatory, once a referral system is implemented, that you create, maintain, and improve relationships with new customers while continuing to build networks.

Always remember these new customers are candidates for additional referrals. Sales professionals who continue to build this process and improve their customer relations will see a significant improvement in their overall dollar sales and number of customer accounts.