Find more bottom line profit in your business

As a business owner, it is important to keep focused on building a profitable company (with integrity). Sometimes profit can seem elusive, and even when you do make a profit, it can be hard to see the money anywhere.

Some quick ways to improve profits and find the money:

  1. Review all purchasing agreements and look for overcharges on carriage, deals not adhered to.
  2. Review your margins – sometimes when we negotiate better deals with suppliers, the only one that benefits is the customer – Great that they can benefit, but you can too. Sometimes having formulas to work out your margins can be a bad thing.
  3. Return stock to suppliers where ever possible – If it is not selling, time to move it on and cash in.
  4. Look at all expenditure on Not For Resale items – can you make savings. Remember that every euro you save here goes straight to the bottom line.
  5. Know your numbers. Every business has metrics that they can compare, i.e Gross Profits, Wages to Turnover, Marketing Spend etc. If yours are out of whack, its costing you money. Why do you allow it.
  6. Add on sales – customers will buy more from you if they are aware that you supply it. Don’t assume that they know. Not every suggestion for an additional sale will work, but the more relevant they are, the better. i.e if you sell tyres, would you not automatically recommend wheel alignment. Of course you would. Non aligned wheels will destroy new tyres.

As a business owner, it is not ok just to accept what happens – You can affect your business positively every day.

Call me if you would like to find extra profit in your business. 087 222 0720

So you think you know it all…

I Know, I Know, I Know and therefore I am not listening…

How many times have you had a discussion with a team member about their performance, i know everythingconscious of the fact that they are nodding in agreement, but silently saying to themselves that “they know it all” and therefore, are not listening, not taking in the feedback and more than likely, not going to make any change to their work.

It is very frustrating.

“I Know” are 2 of the most dangerous words in life – They close your brain off from learning anything new, they deprive you of new opportunities to learn, they prevent you from improving the quality of your life and if you are a business owner, they can deliver you a team of mediocrity that takes your business nowhere.

I challenge you. Next time you find yourself saying that or next time you hear it from a team member, stop.

Let me give you an example. I was recently speaking to a sales exec about their performance. They had been in sales for 20 years, so as far as they were concerned they knew it all about sales. This same individual was performing at about 60% of the average sales person in the business but they could not see it. They could not see that their 20 years of experience was in fact 1994 repeated 20 times. they could not see that the world around them had changed. They had not adapted themselves.

Rather than them saying “I Know” they need to replace this with “I can sell but how good am I at it, really?” Everyone needs to say this because there is always room for us to improve.

Focus your team on getting better. Focus yourself on getting better.

The more you learn, they more you can earn. Call me on 087 222 0720 if you want to learn and earn more.

When an 11 year old perceives indifferent service

2 Boys aged 11 and 9 recently visited a local convenience store to buy some sweets. The shop was not that busy – maybe 2 or 3 other customers at the time.

Just as the boys reached the till with their sweets in one hand and their cash in another, indifferentanother member of staff arrived on the scene.

With no consideration at all for the number of customers in the store or consideration the 2 members of staff immediately decided that it was time to switch shifts – just because the clock said so.

It took more than 5 minutes to change the shift – this was caused in the main by their idle chit chat between the 2 members of staff, nothing to do with a shift handover. There was no apology for any inconvenience either and by the time they were finished all other customers in the shop were waiting to be served. Both members of staff were using their mobile phones while the changeover took place. No other person had entered the shop in the same time so it was not that busy that they could not have waited for a more opportune time.

This simply give the impression that this business does not really care about its customers – On the sign outside – it says convenience store – It would have been quicker to drive 3 miles to the supermarket and get the goods in the express checkout that is always manned.

People pay extra to shop in convenience stores, they do not pay extra to be treated with indifference and kept waiting un-necessarily.

While this is a staff issue – it also says something about the owner of the business. Have they not trained their staff on how to give excellent service with a smile. Or if they have, what are they not implementing and policing it. The big companies do. I wonder why? Could it be something to do with good service being linked to increased profits?

If your customer thinks you do not care, they will go elsewhere – and if they do, it is your fault – well at least 65% of the time in any case.

The 2 children picked up on this indifference – what about all the others in the shop? How often does it happen in your business and how much is it costing you?

 

1st Gitomer Certified Advisor in Ireland

Quick Announcement:

Derek O’Dwyer is now the 1st Gitomer Certified Advisor in Ireland. Derek has been personally trained by Jeffrey to deliver his complete range of Classroom and online training. Derek will be running a number of introductor sessions over the next few weeks. for full details of all the courses, check out this website.

Jeffrey Gitomer is the author of The New York Times best-sellers The Sales Bible, The Little Red Book of Selling, The Little Black Book of gitomer CAConnections, The Little Gold Book of YES! Attitude and 21.5 Unbreakable Laws of Selling. All of his books have been number one best-sellers on Amazon.com, including Customer Satisfaction is Worthless, Customer Loyalty is Priceless, The Patterson Principles of Selling, The Little Red Book of Sales Answers, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching!, The Little Teal Book of Trust, Social BOOM!, and The Little Book of Leadership. Jeffrey’s books have appeared on best-seller lists more than 850 times and have sold millions of copies worldwide. Jeffrey gives public and corporate seminars, runs annual sales meetings, and conducts live and Internet training programs on selling, customer loyalty, and personal development.

In addition Derek also offer people access to the latest in online learning offering one of the most advanced supervised learning platforms.

With over 1000 hours of online content any business owner would be advised to see the system for themselves and take advantge of all that Jeffrey Gitomers training can offer.

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What gets measured gets managed

If you have ever played a game, be it football or tiddly winks, you will most probably have kept score. The same is not true in many businesses and consequently business struggle and fail to take corrective action quickly enough – because they are often unaware of subtle changes taking place.

There are financial measures and there are non financial measures in every company. It is easy to measure turnover, and cashflow and wages etc. It is not easy to measure and then understand the activities that lead to the turnover, cashflow and wages. And it is this lack of information that leads to many business mistakes.

For example, if business A had a turnover of 100,000 and business B had a turnover of 80,000 we could easily assume that A was a better business. But we cannot tell anything from turnover.

If Business A had a Net Profit of 10,000 and Business B had a Net Profit of 9,000, we would again think that A was a better business.

But what if Business Owner A had to spend 15,000 to get that level of sales while Business Owner B only Spent 1,000

What if Business Sales Manager A required 10 inquiries to get every sales, where Business Sales Manager B only required 2 inquiries.

What is business A had a gross profit of 40% while Business B was making 55% while selling the same product?

What if Business A realised that no enquiry over the past year had come from his website, despite spending thousands on its development?

What if business B realised that 20% of all his enquiries were as a result of one happy customer singing their praises?

What if the receptionist at company A always informed inquiries that they would be called back but never passed the message on?

What if one sales person in the business was visiting 10 customers per day and the 2nd sales person was only visiting 5, struggling but unaware of what they should do?

What if the supplier for company A was actually charging them 5% more than their competitors because he knew he could get away with it?

What if company B had a wage figure which was 15% higher than their immediate counterparts.

Imagine if you had every available piece of information about how well or poorly your business was doing. Would some of your decision have been different and would you have focused more on sales and customers and less on rules and regulations.

We call all of the above Key Performance Indicators (KPI’s). Do you have yours?

Can a Business Owner Take a Holiday?

Some business owners never take holidays. They can provide a multitude of reasons: 

1. No time – too busy

2. If I go away, the business will not survive without me

3. If I go away, the business will suffer so much while I am away that the holiday would be ruined.

4. I could not trust any of my team to take control while I go away

5. I cannot afford to take holidays

6. Its so stressful before I go on holidays that it ruins the holiday.

7. I get so stressed about business while I am on holidays that I do not enjoy them.

8. When i come back from holidays, the amount of issues that I have to deal with are too great.

If any of these sound like you, then stop what you are doing right now and consider the real damage you are doing to both yourself and your business. Consider the damage you are doing to family by not spending time with them. Did you start your own business to work every day or did you start so that you could be your own boss?

Taking time to recharge the batteries is good for you and for your team. If you answered yes to any of the above questions, then you need to make some radical decisions in your business so that you can take a break, even a few days, when you decide to – Its important that you can do this, confident in the fact that the business is working while you are away.

Do not become a slave to your business. Call me on 087 222 0270 if you’d like to discuss your business, its potential and its challenges.

Dream x Goal x Plan x Act

If you are in business and are feeling overwhelmed, overworked and stressed out, then maybe its time to drEAM GOAL BUSINESS PLAN ACTIN DEREKO DWYERtake a step back and take a good look at why you are in this place. It will also help you to get some perspective.

When working with clients, we use the following formula to help them get some definition, some direction and some focus.
Dream x Goal x Plan x Action

1. Dream – Take the time to think big, what do you really from from your life and your business – be specific. Think long term like 5 to 10 Years.

2. Goal – to help you achieve your dreams, what specific goals would you need to set to ensure that you are on the right journey – These are like milestones and are between 3 months to 3 years away. Again be as specific as you can

3. Plan – every business needs a plan yet so few ever write a plan after the first few months of business. A plan in more about the process of thinking and writing and sharing than the actual document that you produce but it causes you to ask “how to” or “how can I” questions. Again it helps to keep the daily challenges in perspective.

4. Act – Often where most people struggle – working their plan. What tasks will you do in your business every day that will help you move towards your goals and achieve the tasks in your plan. How will you recover from setbacks. How disciplined will you be.Business Coaching for small business, Free business advice ireland

If your dreams really inspired you and your goals were clear, your actions on a daily basis would have more purpose and conviction. Start today

Call Derek O’Dwyer today on 087 222 0720 if you would like to take your business to the next level.