Blog Archives - Page 5 of 10 - Hybrid Business Advisors

How To Get It Right The First Time

Posted on by Joan Nowak

When it comes to delivering what we promise, mistakes sometimes happen. We are, after all, human. As business owners, we strive to keep customers happy, so when mistakes occur, we do what we must to make it right. Often this means we do it over or go back and fix it.

Getting it right for the customer is certainly a key to retention and future referrals. But if we don’t address the root cause, the problem will occur again and will continue to erode profit and your reputation.

How To Reduce The Quality Problems In Your Business

First, understand the true cost of poor quality. When work needs to be redone, it costs you three times – first, you pay for the original work, second, you pay for the work to be done again, and third, the opportunity cost of lost revenue that you could have earned on new work if you weren’t fixing the old work. Do the math – it’s often enough to motivate owners to focus more on quality.

Next, look at the systems and procedures you have in place. When mistakes occur, the tendency is to blame the people involved. Sure people implement your procedures, but well-documented systems can help reduce the human error that causes mistakes to occur in the first place.

Here are a few things to consider when documenting your systems:

Customer information or data that is critical to fulfilling the order or delivery of service and the procedure when something is missing.
Common problems or mistakes that occur in your daily business and what can be done to reduce them (double-check, red flags, etc.)
Quality control checks that are in place to catch mistakes before they happen
Decision-points with clear direction to address exceptions that may occur
The technology you can employ to help improve the procedure

Then, consider the people element. Are your people trained to implement your systems? Do they possess the skills needed to do the work? The right people, properly trained, with the right systems, can make a big difference.

Finally, measure quality in your business. Depending on the type of business, this may include rejects or rework, on-time delivery, customer complaints, etc. Select what is relevant and begin tracking it. Share it with your team and set goals together for improvement.

The right systems and people can go a long way to help you get it right the first time. Make it a focus in your business – and you’ll create raving fans and a healthier bottom line. For help with developing systems in your business, check out my Ultimate Systems & Procedures Guide for Small Businesses.

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

Who Controls Your Destiny?

Posted on by Joan Nowak

I continue to be amazed by the attitudes of people who accept that they have no control over their destiny – in business and in life. They have done it this way for years, so it must be right. Or no one can make money in this economy.

Some of this comes from the beliefs we develop early in life. Others come from advice we get later. Think about those who give us advice about business? Some of this advice comes from people who never owned a business or it’s based on assumptions that simply no longer apply. I recently spoke with an owner who was advised not to expand because he would need to take on employees and good people are impossible to find. Talk about holding someone back.

Most limiting beliefs remain with us because we give up what we want most in life for something we want now.

Don’t let fear, self-sabotaging beliefs or the advice of others hold you back. As Jack Welch says, ‘Control your destiny or somebody else will’.

Control Your Destiny By Doing Two Things

Figure Out What You Want. Call these goals, dreams, vision. Visualize what you want and why it’s important to you. And don’t share it with anyone who is likely to tell you why you can’t have your dream.

Make a Plan. Organize yourself. Decide what knowledge you need to gain and what you need to do to get what you want. Find someone who can help you and hold you accountable. Plan your action, then action your plan.

Related: If you need help with planning and goal setting, check out my Ultimate Guide for Planning.

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

When Your Gross Profit Margin Speaks, Do You Listen?

Posted on by Joan Nowak

Your gross profit margin is a critical financial metric as it directly impacts your overall income. For most businesses, this number remains relatively constant from month to month. By tracking it monthly, you can easily identify issues before they become major problems.

Whether your margin is higher OR lower than normal, it’s speaking to you. It’s giving you a red flag that says something is different or possibly wrong. Do you ignore it or assume it will fix itself next month? Or do you investigate by digging a litter deeper or asking questions?

Is Your Change In Gross Profit Margin Explainable?

If you implemented a price increase, without an increase in cost, then you should expect an increase in your profit margin. No problem, it’s explainable.

There are other reasons why you may experience a one-time blip in your margins – up or down. You may not always like it, but again, they are explainable. You know why it happened. For example,

Did you have a few new customers with large sales, but lower than normal margins?
Did you have an extra pay period that increased your direct labor costs?
Did you need to purchase additional inventory or stock to meet a future need?

But you could also have lower gross profit margins because …

Suppliers raised or changed prices and you haven’t passed it on to customers or built it into your estimates or quotes
Quality issues caused work or jobs to be re-done or rejected
Customers were billed improperly or not at all
Supplier invoices for stock or materials were incorrect or paid twice
Labor hours are higher while sales are declining; scheduling more people than needed
Subcontractor costs were higher than you projected

These sometimes get ignored until they become obvious – your checking account is low on cash! But the sooner you catch them, the sooner you can fix the problem. So if you are not calculating or tracking GP margin, start now.

And when you uncover an issue, don’t ignore the red flags or band-aid the problem. Fix it permanently by improving your systems and procedures – so it does not happen again and again.

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

How to Build Loyalty, Repeat Business & Referrals

Posted on by Joan Nowak

Creating raving fans for your small business is one of the best ways to build sustainable profit. These customers buy again and again and tell others about you. So if you want to build loyalty, repeat business and word of mouth referrals, DO what you promise, each and every time. It’s that simple.

It starts with follow up and follow through! Your actions and communication before, during and after the sale go a long way toward building customer relationships. The kind that gets people talking and coming back.

4 Ways to Set Yourself Apart

If you promise to get back to a prospect or follow up on a decision, do it. It sets the expectation for your relationship when they buy. If you don’t follow through on commitments before the sale, why would a customer expect more after the sale is finalized?

Make sure deliverables are on-time. Whether you sell products or deliver services, customers should be able to count on you to deliver WHEN you promise. If an unexpected problem occurs, inform the customer immediately regarding delays and rescheduling. Nobody likes to deliver bad news, but most customers appreciate the honesty and will work with you.

Make sure the quality of your products or services is consistent. Customers expect this, so don’t disappoint them. If something isn’t to your standards, fix it or get another one. Communicate any issues or potential delays. Don’t cross your fingers and hope customers won’t notice. They typically do.

After the job is done or the product shipped and arrived, follow up! Are they happy with the product or work? What could you do better? This is a great way to differentiate yourself, show customers you care and build raving fans. It’s also a great time to encourage or ask for referrals.

Make follow-up and follow-through a priority and do it consistently. Build it into your systems and procedures. Your customers will notice and reward you with repeat business and referrals.

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

How to Take Advantage of the Summer Slowdown

Posted on by Joan Nowak

For many small businesses, the summer months are generally slower than other months. It’s a great time to take a vacation or spend some extra time with family and friends. But it’s also a great opportunity to plan, organize or take on a new project. Are you taking advantage of the summer slowdown to speed up your success?

5 Ideas to Take Advantage of Summer Slowdown

#1 | Re-evaluate your goals and re-set your priorities. Are you on track? What do you need to do over the next six months to get where you want to be?

#2 | Organize your space. It’s amazing what it does for your productivity! So file what you must and throw out what you should.

#3 | What project have you been planning to tackle, but putting off? Pick one and start taking action. Here’s a few my clients have undertaken during the summer months:

Review systems and procedures you currently have in place. In many cases, you will uncover some changes that will improve productivity or efficiency.
When was the last time you did employee performance reviews or feedback? There’s no rule that says these must be done in January. If it’s been a while, make this a priority – and get them done.
Improve your online presence. When did you last make any additions or changes to your website, social media profiles or pages or online business directories? Take some time to review and update where appropriate.
Check out a new group or business organization. While attendance often falls in the summer months, those who do attend are usually eager to meet new people – and you can benefit from the connections.

#4 | As you learn and grow, so will your business – so invest some time in personal development. Enjoy a good book that can inspire and educate. Check out my reading recommendations.

#5 | When was the last time you looked at your pricing and costs? Are they still aligned properly and generating the profit margins you want and need? Is an increase warranted?

The summer may be slower, but it’s still filled with opportunities. Take advantage of them.

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

7 Secrets to Better Time Management

Posted on by Joan Nowak

It’s no secret that many people try to accomplish more than is humanly possible each day. They believe that with better time management they can accomplish more. But getting more done takes planning and discipline. It’s about managing yourself and how you choose to spend your time.

7 Secrets to Help You Manage Yourself

Evaluate how you use most of your time. If you want to improve anything, you need to start with a clear understanding of where you are today. Start by jotting down what you do, big and small, for a week or two. Include work, personal and family related activities. Make note of interruptions too! This little exercise will help you identify the time stealing activities so you can begin to eliminate, delegate or manage them more effectively.

Establish a default calendar for your ideal week. We all have routine tasks and activities each week, so allocate time for them on your calendar. Then structure other activities or tasks such as meetings, sales calls, planning, or project specific work around them. Remember to also schedule family or personal commitments too. We all need ‘me’ time but will rarely get enough if we don’t plan for and schedule it.

Think good or great, not perfect. How much time do you waste trying to perfect something you are working on? Is the extra time really going to make a difference to anyone but you? All tasks are not created equal. Sometimes good is good enough. Reserve perfect for the things that warrant that ‘time’ investment.

Work on priorities during peak energy times. For most people, energy levels fluctuate throughout the day. Know when your energy level is typically highest and work on priorities or challenging tasks at that time.

Establish systems for routine tasks to eliminate duplication and gain efficiency. Try to group similar tasks, like email, returning calls, or researching information, together to reduce stop/start time. Create and use templates for common communications — don’t re-invent the wheel each time! Be decisive and take action when handling email — respond, delegate, schedule task or meeting and delete or file.

Limit Weekly Priorities. Goals help us prioritize what is important. But if you have too many priorities, you accomplish less, not more. So limit weekly priorities to 3-5 based on the scope of the tasks. If you have too many priorities, you really have none.

Say No. Interruptions like phone calls, text and office drop-ins are productivity killers so tune them out, turn them off or shut the door. Meetings without a clear purpose — why bother? Requests for help? Certainly but not right now. Schedule a time that is convenient for you — and you may find they figure it out on their own! If you value your time, learn to say no to things that waste it or don’t need your involvement.

Self-management requires discipline, clear priorities, boundaries for yourself and others – and a willingness to say NO when appropriate. Use the above tips to start changing your behaviors.

Can Accountability Make A Difference?

With so much on your plate, it’s easy for business owners to get side-tracked. What if you had someone to help you stay you on track, prioritize tasks, deal with overwhelm, make better choices and decisions? Someone to provide a fresh perspective to challenges or roadblocks? Click here to learn more about my accountability program for business owners.

Are You Setting The Right Example For Your Team?

Posted on by Joan Nowak

If you want your business to be flexible enough to change and grow in any economic climate, you need to create a work environment where learning is appreciated and encouraged. The best way to do this is to lead by example.

Good leaders are teachers and learners! So create a learning environment for your team to thrive. Here are three ways to help you be the leader and learner your team needs.

3 Secrets To Being a Good Learner

Be excited, not threatened, by new ideas. People who see innovation as a threat that will diminish their power are making a big mistake. If you’re truly dedicated to your company’s growth and willing to work hard to achieve it, any change that creates improvement will simply make your position stronger.

Recognize your personal biases and admit them to others. Sacred cows and biases in business can stifle innovation. They can make you blind to good ideas and cause you to spend resources on potentially risky concepts.

Remain humble. Even the most important business knowledge is, at best, temporary. Today’s ideas may not be effective tomorrow. By remaining modest about your accomplishments, you’ll build a foundation of support in your organization that’ll help you later.

When you learn and grow, so will your business. The same is true for your team. Encourage learning and lead by example. Because the best investment any of us can make is an investment in ourselves.

Related Article: Invest in Yourself – It Pays Dividends

New Monthly Article & Business Tools

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.

The Business Letter – A Forgotten Tool

Posted on by Joan Nowak

Sure email, websites and social media provide low-cost ways to reach prospects and customers. But with all the technology out there, many small businesses often overlook the business letter as a marketing tool.

What a shame because it’s a great way to capture new business. Think about it. Today we all operate on email and text overload – but when was the last time you heard someone complain about getting too many letters? With less competition, your message may actually get through!

So if you are looking for a new way to market your business, give letters a try.

7 Ways To Make Your Business Letters Pay Off

Write like you speak – this is a key. Keep the letter conversational in tone and avoid business jargon.
Be emotional. Make sure your letter hits on the pain, worry or other emotional needs of YOUR target. Be specific; don’t soften it up or be too cute.
Provide concrete solutions to their emotional needs. How are you going to be able to help them? Remember benefits, not features!
Make it personal. Mail merge programs make it easy to create a personal letter. Avoid generics like business owner, homeowner, or resident.
Create credibility by referencing neighbors, colleagues or similar businesses you’ve helped. People respond when they believe you know and understand them.
Create a reason to act or take away the risk. Include an offer or even a guarantee to compel them to act. Include the action you want them to take or what follow-up action you will initiate. Don’t leave it to chance or assume they will know.
Use sub-headlines. If the letter is longer, use sub-headlines to break it up. This can be very effective for those who scan before they read. Make your sub-heads stand out.

If you market to other businesses and want your letter opened, try this. Instead of using labels, hand-write the envelope or use a handwriting font. Use blue, not black ink. It gives the letter a personal feel that gets through the gatekeeper or other staff.

New Monthly Article & Business Tools

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.

Is Your Team Sitting on the Sidelines?

Posted on by Joan Nowak

Did you ever notice how some businesses have awesome people, those who are committed to customers and each other? It shows in everything they do. They go out of their way to help. And look for ways to improve themselves and those around them. These employees are quite simply worth their weight in gold. And what a difference it makes for YOU, the business owner!

Team Building Secret

So what’s their team-building secret? It’s not about paying them a lot of money, but do pay them what they are worth. It’s not about giving them weeks of paid vacation – although paid time off is always appreciated. You may be surprised to learn that two of the best ways to build a strong team costs you very little.

#1 – Get Them Engaged.

Consider the words of Vince Lombardi, “Individual commitment to a group effort is what makes a team work, a company work, a society work and a civilization work.” Individual commitment comes from participation and understanding. The more involved your team is, the more committed they are to its success. And since some of the best ideas for business growth and improvement come from employees, it’s time to get them engaged. Then everyone wins!

#2 – Show Appreciation.

As human beings, we want recognition and need to feel appreciated. It’s natural. In April we celebrate employees with employee appreciation day. But what do you do the other 51 weeks in the year? Again, it’s not about money. Yes, token gifts or group lunches are nice; but simple things like thank you for a job well done, recognizing them in front of peers and customers, and soliciting their suggestions goes a long way. All it takes is a little forethought and some of your time!

New Monthly Article & Business Tools

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.

What Are Your Customers Worth?

Posted on by Joan Nowak

How much will you spend in your lifetime on something as simple as toothpaste? Thousands of dollars? How much will the average customer in your business spend with you over their lifetime?

Single Transaction vs. Lifetime Value

Are your customers a single transaction or a lifetime relationship? Here’s an example using a lawn-care company:

- The customer pays you $25 each time you mow their lawn.

- While the first transaction is only $25, they spend that each week from May – September so annually they spend about $500.

They stay with you for seven years so they actually invest $3,500 in your company. So is this a $25 customer or a $3,500 customer?

Next, consider that your ‘logo’ vehicle is parked in their neighborhood generating potential leads for you each and every week. Or that loyal customers gladly refer others to you. Over the seven years, do you think you could get 3, 4 or 5 new customers from your relationship?

So now what is this customer worth?

Establish A Long-Term View of Customers

As a business owner, you must establish this long-term view of their value before you can appreciate how important it is to develop a relationship with customers and ensure everything is done to keep them as long as possible.

So how do you determine the lifetime value of your customers? Here’s what you need to know.

What you average customer spends each time they buy from you?
The number of times per year (on average) your customers buy.
How long does your average customer stay with you?

Don’t strive for perfection here. If you don’t have this information at your fingertips (and most won’t), come up with your best estimate using the purchase history or other data you have. You can get a ballpark figure if you randomly select 50+ customers and review their purchase history or research industry data.

Your View of Customers Drives Decisions

How you view your customers — as a single transaction or lifetime relationship — will ultimately drive the decisions you make and the actions you take. With a lifetime value perspective, what would you and your team do differently? Would you invest more to acquire a new customer? Would you stay connected throughout the year? Would you make each customer contact or service call special? Would you take the time to check in with customers to determine their level of satisfaction or maybe get ideas for improvement?

For most business owners, the answer is yes to all these questions. So now it’s your turn. Start nurturing those relationships and create lifetime customers for your business.

New Monthly Article & Business Tools

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.