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Year End Financial Questions to Grow Business

7 Questions You Should Ask At Year-End

Posted on by Joan Nowak

As we approach the end of the year and the start of tax season, are you pulling together year-end financial reports and information for your accountant? Don’t just hand them over, take the time to review them. Then ask yourself some relevant questions to help make improvements.

Go beyond revenue or sales. Explore all areas of the business that drive profitability. Look at trends. by comparing results this year with prior years. Then armed with information, create a better roadmap for success next year.

7 Questions to Ask at Year-End

Where did our revenue come from? Think in terms of customers and products/services. How many new customers did we get? How much of our revenue is coming from current customers? What products or service categories grew versus declined?
What are the spending habits of our customers? Here we want to consider two things. What is the average amount our customers spend and how frequently do they buy? Is spending up or down? Are they using less or spreading the sales among more vendors?
Are the gross profit margins higher, lower or the same versus last year? How do our margins compare with others in our industry?
Is our labor as a percentage of sales up or down? Is increased labor translating into improved service and increased profitability? Do we have the right people to get the results we want?
Are fixed expenses up or down versus last year? Can we reduce costs while also increasing value? Don’t assume. Request quotes. You don’t need to change suppliers but you should know the going rate and other value vendors provide.
Is your business debt higher, lower or the same when compared to previous years? Is it manageable? Do you have access to capital moving forward?
What did you actually pay yourself for salary or draw this year? Is it more than last year and adequate to meet your personal obligations? This is one you should never ignore. Your business. Your risk. Your pay!

Where Are Your Opportunities?

Based on your findings, where do you need to see improvements? Of course, you must do something to create change. So what actions do you need to take to improve each of the areas you identified? List those tasks and you have the foundation for a simple road map to get you there.

Need a Better Road Map?

If you need a better course for your business but struggle with planning and goal setting, check out my Ultimate Goals and Action Planning Guide for small business owners. With my step by step instructions, plus easy to use templates and examples, you can create an effective, actionable plan in less than 8 hours! Click here to learn more and get started.

How To Package Services To Grow Sales

Posted on by Joan Nowak

Is sales growth one of your key goals? When planning, many service companies look at expanding services to get there. It’s certainly one option. But why start from scratch or reinvent the wheel? Simply package or repackage current products and services to provide more options for your customers. After all, customers love and want options – and packaging provides convenience, savings, simplicity and often better results.

7 Questions To Ask Before You Package Services

Who is the package being created for? Be specific. If you want your package to sell, it must meet the needs of the target. It is much easier to add the relevant features when you have a specific customer or niche group in mind. You’ll achieve greater success if you avoid the one-size fits all solution.

What results can your customer expect to receive? If they purchase the ‘package’ what will they get – more time, savings, increased growth, convenience, etc. Try to be as specific as you can.

What makes it different from other products or services? This is an important question so don’t overlook it. Think about the system or process you use to use to deliver it? What makes it easier or convenient? How does it work better? What additional value do they get? Are the expected results tangible or measurable? Can you guarantee the benefit you expect to deliver? Often going through this process triggers ideas and helps you build the features for the package.

What features are included in the package? Remember to link these back to the benefits or results you will deliver and only include features that are important to YOUR specific target.

What will you charge? Before you just throw in a number, consider the target, the benefits or results they can expect and the difference from other products or services. If your new package is positioned around convenience or better results, your target may not expect savings or a lower price. But if it’s built around savings, then your price should reflect this. What would your target be willing to pay? Do you wish to establish a price but offer a special introductory offer to current customers? How will they pay – at time of service, payment plans, multi payments, monthly invoicing, etc?

What will you name it? While not applicable to every package, an easy to understand or cool name can help with marketing your new package.

How will you communicate it to reach customers? Do you simply wish to rely on up-selling or cross-selling existing customers or prospects? Do you wish to reach others with this package and need additional tactics to do it? The key here is to have a plan. Don’t create the package and hope for the best.

So get the juices flowing and look for ways to provide additional options that your customers want. It really is a great way to generate additional revenue for your business.

More Ideas to Grow Your Business

For new business improvement articles, exclusive tools and insights on entrepreneurship, click here to subscribe to my monthly eNewsletter. When you do, I’ll also send you my free eBook, How to Build Profit Through Leverage.

3 Hiring Secrets That Save You Time and Money

Posted on by Joan Nowak

Need to add staff? While it may be a challenge sometimes, here are a few hiring secrets to make your job easier – and save you money too!

Market for Employees. If you want to attract quality people to your small business, think like a marketer. Put the internet to work for you. There are dozens of job posting boards – some are free and most offer a lot of flexibility so you can get creative. One of my favorites, Indeed.com, offers both free and sponsored (fee) options plus a convenient way to track candidates from start to finish. In addition, don’t overlook your own website, especially if traffic to your site is consistently high. Add a career page and make it easy for people find you.

Phone Interviews. These offer a quick way to weed out unqualified candidates and save you a lot of time. Have specific questions to help identify skills, experience and other key requirements for the position. Ask the same questions to each candidate. If you are doing a lot of phone interviews in a short period of time, take good notes and possibly rate each applicant. It makes choosing the top candidates to move forward a lot easier.

In addition to saving time, phone interviews also allow you to evaluate a candidate’s verbal communication skills. This is a critical competency for many jobs so why wait for the face-to-face interview to determine their skill level.

Online Research. While you should always check personal and professional references, there’s no need to stop there. Facebook, Google+ and Linked-In make it easy to learn more about potential employees. In fact, you may be surprised at just how much you can learn – good and bad. Take a few minutes to do a little research before you put the offer on the table.

When it comes to building a quality team, nothing beats a good hiring system. Make sure yours includes some of these elements. For additional hiring tips and other ideas to grow your small business, check out my article library.

Ready to Put Your Business on the Path to Success?

Would working with a business coach help you take your business to a whole new level? Then let’s explore the possibilities with a complimentary consultation. It’s a chance to get to know each other, discuss your goals and the obstacles that hold you back. Together we can determine if there is a good fit between your needs and my services.

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

Are You Leveraging Your Marketing?

Posted on by Joan Nowak

It’s risky to have a business that is too dependent on one customer or key employee. But what about your marketing? Putting all your eggs in one basket here is just as risky. Changes in customer attitudes and behaviors can leave you with an empty pipeline and roller coaster sales. Leveraging your marketing improves results — and can actually save you time and money.

What considerations go into your marketing choices? For some, it’s all about the latest buzz or what’s new. Others look for tactics that are easy or inexpensive. Maybe it’s time to think like your target market. Do they rely on one method to get information? The answer is probably no. Even if you work within a small niche, it is likely that communication preferences still vary within that group. Choice and convenience matter.

How To Reach More Prospects

The best way to reach more new prospects and build relationships with existing customers is to utilize a variety of communication methods. The same message, delivered consistently, through various channels will go a long way toward improving your results.

Marketing tools, when used together, create synergy – so the whole is greater than the sum of its parts. Years ago, I did a direct mail campaign that achieved a 5% response rate – yes that’s really high! While my agency designed a great piece and we had a compelling offer, it was part of an integrated effort that included radio. And that made a huge difference.

As a small business, you don’t need to rely on broadcast media to create an integrated effort. Print with digital (online) marketing works well. So does print with on-site signage for retail and trade businesses. Digital, print, and phone work well together for many B2B companies.

The key to creating leverage is to plan ahead! Avoid the last-minute, toss-it-out there to see what sticks approach. Complement that direct mail campaign with an email effort and powerful landing page. Pump up your trade show with a follow-up postcard and email campaign. The options are limitless when you …

Think Integration. Think Complementary. Think Consistent.

For more articles on growing revenue, click here

Ready to Put Your Business on the Path to Success?

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

3 Steps To Get More Sales

Posted on by Joan Nowak

While customers must need the products and services you offer, they will buy when they are ready, willing and able. You must meet all three to gain the business and get more sales. Here’s what you need to consider.

Ready is often a timing issue. Customers may want what you offer, but not now. So how do you speed it up or put yourself in a position to win when they are ready? You have a few options here. First, look for ways to make it easy for them to decide. Turn their want or need into a must-have through differentiation and special offers.

Second, understand the timing cycles as it relates to your products or services. Timing often impacts your ability to get more sales now. So when do people think about what you offer? Some are seasonal such as lawn care, tax preparation, and apparel. Some are linked to events or milestones such as engagements, weddings, holidays, college graduation, the birth of children, new home purchase or death of a spouse. Others are linked to product life cycles and usage. How long does that heater, appliance, car or computer last? Make sure your marketing efforts are timed properly to take advantage of the opportunities.

Third, have a system to stay connected with the ideal prospects in your sales funnel so you are the first one they think of when they are ready!

Related Article: Make It Easy For Customers to Decide

Willing has to do with perceived value and trust. Do your customers understand what you do and why you are the better choice for them? Do they perceive value as it relates to your products or services? Do they trust you to deliver what you promise each and every time?

This is where building a relationship with current customers and prospects really comes in. Use your marketing to engage, educate and build credibility with online reviews, testimonials, and guarantees. This puts you in the consideration pool when they are ready to buy. Without trust, it’s difficult to get more sales.

Able is all about the capacity to pay. No matter how awesome your products and services, some people simply can’t buy because they lack authority or financial resources. Does your contact have the authority to make the purchase? Can he/she afford to buy your products or services now or in the future? If the answer to both is yes, stay connected and continue to build and nurture the relationship. Time may turn this opportunity into a sale. If not, let it go and move on.

We all want customers who are instantly ready, willing and able to buy. But the reality is that many aren’t. So stay connected by phone, email, mail, in person or through social media. In doing so, you move them closer to the sale. Take the three steps to create that all-important YES.

More Business Improvement Ideas

How to Create a Positive Customer Experience

Posted on by Joan Nowak

Do you want customers to feel good about your business? Of course! Your marketing — what you say about your products, people, and service levels — may get people interested. But what happens next, the actual customer experience, will ultimately determine what they think and feel.

From the moment you close a sale, you have a lot of chances to create a customer experience that gets people talking about your company. Do it right, then you get more repeat business and referrals. Mess it up, and all you get is a lot of negative press – especially today in our socially plugged-in world. Sales and profit suffer, along with your reputation. Don’t leave it to chance.

Plan The Experience. Execute Well.

Map out what you want YOUR customer experience to look like – from start to finish. What should your sales process look like and what are the touch points along the way? How will you deliver your product/service to customers with consistent quality and efficiency? What about billing? What are you doing after the sale to continue to build the relationship?

It’s not difficult. You probably already have an idea of how you would like things to work. It’s also not expensive. In fact, it’s one of the low-cost ways to build profit. So map it out and put it in writing. Now stop and ask yourself two questions:

What can we do to make it easier for prospects and customers to do business with us?
What can we do to wow or inspire them, to make them smile or surprise them?

Investing resources, both time and money, to generate new leads is important. But what you do from that point on is the key to repeat business and referrals. Decide what you want, document it and implement consistently.

Make the customer experience an asset to your business. You’ll be rewarded with loyal customers and more profit in your business.

Ready to Put Your Business on the Path to Success?

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

Is the Quick Fix The Best Solution?

Posted on by Joan Nowak

I recently ran across an article, 9 Deadly Leadership Mistakes. The author, Peter Economy, made some great points. But one, Looking for Quick Fixes, stood out because you rarely see this associated with leadership. But it is.

Peter went on the say “No matter how difficult the problem, there is always a quick solution”. And with so many fires to put out or hats to wear, the quick fix is often welcome. It allows you to move on to the next crisis, issue or opportunity.

Solving the immediate problem quickly is a good thing, especially when it impacts customers, team or money. But the quick fix is often nothing more than a band-aid. It doesn’t address the root cause; it’s not the long-term solution. The problem will return again and again.

Here’s an example to demonstrate this point. Your technician performed a service. The customer was unhappy and called to complain. You apologize and send someone out to re-do the work. Problem solved. The customer is now satisfied and you move on. But what have you done to fix the problem moving forward?

Are You Fixing or Band-Aiding Problems?

While fixing a problem will take more time, it’s worth it in the long-run. Just think about the impact these problems have on costs, profit, customer satisfaction, team satisfaction – and you personally. Do you really want to spend your days putting out fires?

Going from band-aid to fix is not difficult. You still want to solve most problems quickly – especially when customers are involved. But when you do, go a little further. Ask more questions: How do we make sure this doesn’t happen again? Is this a system or people issue – or maybe a combination of both?

Get others involved as necessary and dig a little deeper when you encounter problems. Make the commitment to really improve your business. Get rid of the band-aids and fix the problems for the long-term. Think systems and procedures. Need some help in this area? Check out my article, How to Create Business Systems

Ready to Put Your Business on the Path to Success?

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

The Myth About Sales

Posted on by Joan Nowak

As sales go, so goes the business. It’s a common myth about sales. As a result, revenue growth tends to top the list of priorities for small business owners. It’s the milestone that gets the most attention. It’s the most important number – or is it?

As a business owner, sales growth is simply one metrics on the scorecard. If sales alone guaranteed success, then large organizations like WorldCom and Radio Shack would still be in business. Sales are important, but profit and cash flow is king.

So look beyond sales. Seek opportunities to improve profit and cash flow. Here are four things to consider:

How can I improve my gross profit margins? Whether you raise prices, reduce costs, increase labor efficiency or eliminate products (or customers) that are profit busters – do something! If your products and services are not generating good margins, selling more won’t help the bottom line.

How can I reduce debt and/or monthly payments? While some level of debt is normal in business, it needs to be manageable based on your profit. Excessive debt can kill cash flow. And yes, ultimately kill your business.

How can I improve efficiency and effectiveness? Often overlooked, this area has a lot of hidden profit. Whether you improve your scheduling, delivery, and collection or eliminate mistakes and costly re-doing of work, systems build profit – and make life a lot easier!

How can I get more from my current customers? Don’t limit revenue growth to new business – products, markets or customers. Build plans and tactics to keep current customers coming back and buying more. Then be consistent with your efforts!

Never ignore sales, but give profit and cash flow the same priority. Together, they form the nucleus of a financially successful business!

More Ways to Grow Your Business

7 Questions to Ask Before You Make Your First Hire

Posted on by Joan Nowak

It is rewarding when a plan comes together. You’ve worked hard and your business is taking off. But if the growth leaves you with little time to enjoy your success – or worse, dreading new business, it’s time to get some help. Before you run out and make your first hire, get clear on what you need and why you need it.

Whether you are considering your first hire or looking to add to your current staff, ask the right questions to make better staffing decisions.

7 Questions To Ask Before You Hire

Is your current activity level temporary or sustainable? Don’t let ‘crazy busy’ drive you to make a rash decision. Hiring is a long-term commitment – in terms of time and money. If you have a short-term need, you may wish to consider temporary labor or retain someone on a contract or freelance basis.

Do you need to delegate some tasks? For most business owners, the answer is yes. So maybe the better question is are you willing to delegate some tasks? Unless you are willing to let go of some tasks, hiring or outsourcing won’t free up your time. The key to going from technician to entrepreneur lies in your ability to focus on the tasks that only you can do – and delegate the others to someone else. Be an effective delegator.

What tasks do you need someone to perform? As a small business, don’t trap yourself by thinking along traditional roles or titles. Build a list of tasks and be specific. If you are not sure, start writing down all the tasks you do for the next 7-10 days. Also, jot down the tasks that you should do, but aren’t because you simply don’t have time. Look at the list and I’m sure you will find a lot that you could pass on to someone else. Use this list to create a comprehensive job description. And yes, you should always have a job description before you hire!

What skills could a new employee bring to your company? We all have our strengths and weaknesses. It is human nature to gravitate toward people who are like us and often possess the same skills. When hiring, consider bringing in someone who can compensate for your weaknesses. In other words, hire for your weaknesses! It will make your life easier and will actually strengthen your company.

How will the employee contribute to the bottom line or success of your business? Whether it is generating sales or new business, delivering quality service, improving efficiency or freeing up your time – have a reason and expectations when hiring. Know how you will measure success and the expected contributions the new hire will bring. Share it with the employee so you are both on the same page. This is especially true when hiring millennials — who want their jobs and related tasks to have a purpose.

How will you find the right person? Before posting an ad in print or on job boards, start by reaching out to your own network – business contacts, suppliers, friends and even your social connections. Let them know you are looking to hire. Share your job description and other relevant information so they can help you find the perfect person. A phone call, email and social posts or messages can often uncover potential candidates. If your real or social network cannot provide qualified applicants, consider online job sites. For small, local businesses, I recommend Indeed.com. They offer both free and paid options and some tools to help manage the pool of candidates.

What do you need to properly train and develop a new team member? Finding the right person is important. But even the most skilled individual will need training – to learn how YOU do things. Written procedures and/or training videos for the tasks you need done make training easier and more effective. They allow the new employee to hit the ground running and quickly contribute – while saving you or others valuable time.

That first hire can make a big difference – but only if they stay and contribute to your success. Invest the time to do it right and it will be a win-win for you and your new team member.

Ready to Put Your Business on the Path to Success?

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

How to Create Ads That Sell

Posted on by Joan Nowak

Whether you use print or digital marketing, the goal of your advertising goes beyond awareness. As a small business, you must create ads that sell. In other words, they must compel them to act — call, visit, click — in order to generate new or recurring sales.

So if you want to get more from your print or online advertising efforts, apply the AIDA system to create ads that sell.

What is AIDA?

AIDA is the acronym used by marketers to describe the four ‘events’ that must occur when a customer views your advertising. It stands for Attention, Interest, Desire, and Action.

Attention

Your ad must first attract the attention of your target market so they will start to read it. Nothing happens until they do. This is typically done with a good headline, picture or both. While there are a lot of headline possibilities, some of the most common and effective headlines include words such as Free, YOU, How You Can, How To, 7 Reasons Why or 5 Ways To.

When it comes to headlines, remember one thing. Your company name and logo are not a headline. It does nothing to get prospects attention. Put them at the end with your contact information and replace it with a compelling headline.

Interest

Once you get their attention, you need to raise customer interest so they continue to read on. The best way to do this is by focusing on advantages or benefits. The things that solve one or more of their common problems. Many small business ads focus on features, often the same ones everyone else claims. Customers want and buy benefits so use them instead.

As you use your copy to build interest, keep one thing in mind. Behavior studies suggest that losses are twice as powerful as gains. In other words, loss or risk aversion are strong motivators that you should consider and use to build interest.

Desire

This is where you convince customers that they want and need YOUR product or services. That YOU have the ability to satisfy their needs. Think believability and uniqueness. Why should they choose you over others?

Action

What does the customer need to do next? Don’t assume they know. Whether you want them to call to schedule an appointment, visit your store or restaurant or click to make a purchase, a clear call to action is a must.

This 4-step system helps you target more effectively and works like a screening process. A certain percentage of readers will fall off along the way. It’s expected. You don’t want everyone. You just want those who want and need what you are offering.

As you plan your advertising each year, take a look at your current or past print, social media, and digital ads. Review the reports where available. Are they producing the results and ROI you want? Do they follow the AIDA system or can improvements be made? Why not make some changes and test them out?

More Profit Building Ideas

For business improvement articles, exclusive tools and insights on entrepreneurship, click here to subscribe to my monthly eNewsletter. When you do, I’ll also send you my free eBook, How to Build Profit Through Leverage.