Articles Archives - Page 3 of 11 - Hybrid Business Advisors

How to Turn 1% Into Double Digit Profit Growth

Posted on by Joan Nowak

Profit growth or improving the bottom line is a priority for business owners — especially now as they look to bounce back from the Pandemic. But too often they look for the magical silver bullet. The one big innovation or idea that will turn a business around and make people notice.

Innovation is important in all areas of your business, but often small improvements over time can make a big difference on the bottom line. In fact, a mere 1% improvement in revenue or sales, cost of goods sold and expenses can produce double-digit profit growth!

The Power of 1%

Here’s a simple example to demonstrate the Power of 1-1-1

Revenue: With a 1% increase, revenue goes from $500,000 to $505,000

COGS: With a 1% reduction, cost of goods sold goes from $300,000 to $297,000

Expenses: With a 1% reduction, expenses go from $160,000 to $158,400

The result, Net Profit goes from $ 40,000 to $49,600. An increase of $9,600 or 24%!

Check it out with YOUR numbers to see for yourself.

So now ask yourself “Do I have what it takes to achieve a 1% improvement in these three areas”? Absolutely! Can you do more? Probably. The key is to start – so set a goal. By focusing your efforts in these areas, you too can make progress 1% at a time.

Of course, a goal without actions won’t do much to get you there. So here are some things to consider as you plan your profit growth initiatives:

Revenue / Sales: There are hundreds of ways to grow sales. While generating more leads is an obvious one, here are a few that are often overlooked. You can improve revenue by improving your sales conversion rates, get customers to spend more or buy more often or expand your products or services. Need some ideas, check out 155+ Profit Building Ideas

Cost of Sales or Goods Sold: Based on experience with hundreds of small business owners, this area offers a lot of opportunity for profit improvement. The costs included in the cost of sales or goods sold will vary based on your type of business. These are variable – and link directly to sales levels. Examples of costs include inventory, incoming freight, direct labor (associated with service delivery or production), raw materials, service related suppliers and sub-contractors.

So how can you improve this area? Consider some of the following: improve labor efficiency by eliminating waste, renegotiate prices with key suppliers and vendors, outsource or utilize sub-contractors, improve scheduling, plan purchases to get volume pricing, and eliminate rejects or reworks.

Expenses / Overhead: These are relatively fixed and include everything from wages and benefits to marketing and rent. In today’s economy, many have focused on trimming the fat – but the key is to do so without impacting your ability to grow and deliver on your promise to customers.

Here’s a few things to consider: re-evaluate staffing levels to align with sales and service requirements, re-evaluate benefits, develop compensation model that includes pay-for-performance elements (not just guaranteed wages), evaluate outsource options or leasing, re-quote service contracts and insurance, renegotiate rent or relocate where appropriate, track marketing to improve ROI, and establish a budget – and live with it.

Small improvements in all areas have a compounding effect on your bottom line. They build on each other. All it takes is a clear focus, some simple proven strategies and a commitment to do it.

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 30-minute session. 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. Book appointment now.

Got questions? Call Joan Nowak at (856) 533-2344 or email Joan@HybridBizAdvisors.com

Business Systems | Build Profit As You Grow

Posted on by Joan Nowak

Business systems make life easier, drive profitability, and leverage your business. Many small businesses learned the importance of operating systems when a pandemic caused changes in the way they had to operate. The old way of doing things didn’t work. With safety as a priority, everything from sales and hiring to customer service, daily operations, and billing were impacted to some degree. These businesses also learned that it’s easier to modify your current systems instead of building everything from scratch.

Business Systems Make Pivoting Easier

The businesses with quality systems and technology to support them, found ‘pivoting’ was a lot easier.

Whether back-to-work plans included simple modifications, a whole new business model, or something of a hybrid approach, we are reminded that updating and documenting systems is important. Here are a few things to consider:

Hiring people is on the rise. Training and helping them to succeed without documented systems is far more difficult.
Getting customers back (or getting new ones) is a priority. Consistent methods to implement your strategies are important for results.
Defining your customer experience is easy. Delivering on your promise time and again is more difficult without systems and technology to support your efforts.

Business Systems | How to Get It Done

Whether you simply need to update what you have or build them from scratch, here is some good news. You can do it while you continue to grow your business. Here’s the best way to approach it.

Set the right goal. Yes, I’m also a big advocate of setting goals! Avoid setting a goal to complete a how-to manual. It is just plain boring and overwhelming. Instead, set a goal to build systems into your business – as you are building it. You will eventually end up with a practical, how-to manual, but you’ll build profit and efficiency along the way to keep you motivated.

Take it one procedure at a time. For every system you document and implement, you will see improvements in efficiency, productivity, and profit. So you don’t need to reach the end of the project (a how-to-manual) to see results: more sales, customers, profit, control, and freedom.

Start with the most critical. Business systems, like customers, are not created equal. Focus first on the ones that impact YOUR sales, delivery, profit, and time.

When evaluating the systems in your business, you need to consider two factors. First, consistency. Is the procedure performed the same way by all involved? Second, effectiveness. Does it deliver the outcome or results you want?

For example. You have a sales system that is documented so everyone does it the same way. But if your process doesn’t help you achieve a better outcome – more sales or a higher conversion rate – then it’s consistent but not effective. In your business, you want both!

Make Your Systems Effective

Keep it simple. Procedures must be understood by those who implement them if they are to deliver consistent results. Include scripts, checklists, and samples where appropriate to help people perform the task at hand. And always take advantage of technology that is out there for you.

Include limits of authority. Procedures will explain what to do and how to do it. But some tasks such as preparing a customer quote, closing a sale, paying vendors, or resolving a customer complaint may require you to spell out how much authority others have to complete these tasks. Limits of authority empower others (with limits) so tasks get done without you while also reducing potential risks (aka bad decisions).

Here’s a common example. If quotes are needed to close a sale and timely response plays into getting the business, you don’t want approvals to become a bottleneck. With guidelines, only proposals that fall outside the parameters you set need to be held for your approval. Therefore, your quote process may include language such as “All quotes or proposals over $5,000 OR under 35% gross profit margin require owner approval”

If you really want less stress, more profit, greater freedom, and the ability to effectively pivot in the future, then make systems more of a priority. Take it one at a time and build as you grow. It’s not hard, you simply need to kill the excuses.

Get Serious About Systems

If you are serious about leveraging your business with systems but struggle with where to start and how to do it, then check out my Ultimate Systems and Procedures Guide. Designed specifically for small business owners, my step-by-step guide with templates and examples makes it easy to do it yourself.

About Joan Nowak. As a business improvement expert, I’ve been helping entrepreneurs turn ideas into profits for more than a decade. My whole-business approach empowers clients and drives improvements in key areas including revenue, operations, team development, customer satisfaction, and profitability.

4 Ways To Prioritize Your Business Goals

Posted on by Joan Nowak

When it comes to planning, most business owners are not short on ideas for growing sales and profit. They set goals and identify what they need to do to get there. But as you set goals and create your action plan, you need to prioritize business goals and activities.

You only have so many resources – people, time, and money. You still have a business to run and customers to serve. Be realistic about what you and your team can accomplish each month and quarter. Set priorities. What’s first, then second, and so forth. Here are a few things to consider as you prioritize business goals and tasks.

4 Ways To Set The Priorities in Your Plan

Top Challenge.

What is the #1 challenge you face today in your business? Is it getting new customers, getting more from the ones you already have, making more profit from your current sales, delivering consistent service to customers, having the right people, or getting more from them? Choose at least one or two that address your biggest challenge and work on them first.

Complexity.

How much work and other resources are required to complete the tasks or projects you identified in your plan. The more complex, the fewer you can reasonably handle in a short period of time.

With large, complex projects break down the tasks and spread them out over a few months. This allows you to make progress without getting overwhelmed, putting them off, or ignoring other areas in your business. For example, a new website or how-to manual will take more than a month. A marketing campaign or customer feedback survey can be done within 30 days.

Natural Prerequisites.

Sometimes there are things you must do first because they are tied to the success of something you want or need to do in the future. Here are a few examples.

If you plan to use social media, email, or other online strategies but don’t have a website (or your current one needs updating), then the website should be done first to get the most bang from your other efforts.

If you get a lot of leads but struggle with converting them to paying customers, you might want to focus on ways to improve your sales conversion rates before you invest in new lead generation or marketing.

Time versus Money.

In a perfect world, we seek balance. But if money is tight, then focus initially on things that are low or no cost to help you build more revenue, profit, and cash flow. Then invest in strategies that require additional financial resources.

One caution as you set the priorities in your plan. Don’t prioritize based on what you like or what is easy. Putting off what is important for what is easy is just another form of procrastination. Focus on what will get you results – more sales, profit, control, or freedom.

It’s Never Too Late to Plan

Need help creating your road map for success? You can do it yourself by using my Ultimate Action Planning Guide.

Prefer to work on it with me? Then check out my Action Planning Program just for small business owners. Click here to learn more.

About Joan Nowak. As a business improvement expert, business coach, and consultant, I’ve been helping entrepreneurs turn ideas into profits for more than a decade. My whole-business approach empowers clients and drives improvements in key areas including revenue, operational performance, team development, customer satisfaction, and profitability.

Hiring: 7 Do’s and Don’ts to Make Your Efforts Pay Off

Posted on by Joan Nowak

A strong team makes it possible for any small business to accomplish great things. But when it comes to hiring, many owners just wing it, and often end up disappointed and frustrated.

Getting the right people is not easy, but if you do it well, you won’t be doing it so often! Here are some do’s and don’ts to make your hiring system pay off – in terms of sales, productivity, and profit.

Do Build a Case for Your Hiring Decisions. Before you rush out and replace an employee or bring in additional help – stop! Be clear on what you need, why you need it and what it will cost. Think long-term not just quick fixes.

Do Create a Good Job Description. Think beyond just duties and responsibilities. What skills must the person possess to accomplish the job and add value to your company? A good job description sets the expectations for the position and can provide the clarity you need – so you attract what you want.

Do Require a Resume. With online job sites for almost every position out there, most candidates have a resume of some type. Resumes are a great way to evaluate written communication skills and can help weed out those you don’t want. So make them a part of your hiring process – ask for them!

Do Phone Screening of Applicants. A 10-minute phone screen, with relevant questions, can save countless hours. Beyond getting clarification on resume information, a phone screen is a great way to evaluate verbal communication skills.

Don’t Go At It Alone. As a small business owner, you likely interview most candidates. But why not allow other employees to participate in the interview process? We all pick up different things and input from others can be very helpful in making good hiring decisions. If you are a solo owner, ask another solo owner to interview your candidates and return the favor for him/her when needed.

Do Reference and Background Checks. Face it, some people polish the apple a bit or just flat-out lie on resumes and throughout the interview process. Before you jump in and offer someone a position, do your homework. Get business references and call them. Confirm their employment and the dates – then ask the magic question, ‘Would you re-hire the candidate’. A simple yes or no will speak volumes. And don’t forget to do a little online research. Facebook, Linked-In, and other social media platforms are helpful. Google and other search engines can also provide information, good and bad, on potential employees. Use it. If background checks or assessments are part of your process, do them too.

Do Not Settle. I know that being short-staffed can be frustrating, but hiring the wrong person, just to get someone in there, will cause more damage. It can hurt productivity even further, kill employee morale, and cost you in the long run.

Finally, believe you can get quality people within your company. If you believe you can, you will. Unfortunately, the opposite is also true. So whether you are replacing a current employee or hiring for the first time, invest the time to do it right. The people in your company represent YOU – so set high standards and integrate these suggestions into your hiring process or system.

Let’s Have a Conversation

Ready to build a culture of collaboration and a more profitable business? Sometimes another set of eyes and a little accountability are what you need to take your business in a new and better direction. Let’s have a conversation. A 30-minute discovery call is a chance to get to know each other, discuss your goals, and answer any questions. Click here to book your free call.

How To Turn a Quick Fix Into a Permanent Solution

Posted on by Joan Nowak

No matter how difficult the problem, there is always a quick fix. And with so many fires to put out, the quick solution is often welcome by business owners because it allows you to move on to the next crisis or opportunity.

By definition, a quick fix is a problem-solving technique which involves using the fastest solution to keep the problem from escalating or recurring in the near future.

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 likely return again.

Is It a System Or People Issue?

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 and smooth over the customer. Problem solved. The customer is now satisfied and you move on.

But what have you done to fix the problem moving forward? This is the missing piece in many small businesses. After you employ a temporary solution, you should evaluate the source of the problem in a more in-depth manner – to create the best solution for the future.

In the above example, it’s easy to assume the employee did a poor job or needed more training. In this case, the office staff scheduled two additional service calls and he was running behind. Concerned about being late to his remaining customers, he took shortcuts to make up the time. So is it a people issue or a system issue – or maybe a combination of both?

Fix Then Solve

This principle applies to all areas of your business. While customers may create obvious fire drills, here’s a few others to consider:

Key employee resigns unexpectedly – and you have no one cross-trained.
Primary supplier goes out of business or increases prices dramatically and you have all your eggs in one basket!
Your biggest (or best) customer merged with another company and they have their own preferred vendor (and it’s not you).
Sales plunge and you have no ongoing, consistent method to generate more sales from new leads or existing customers – cash flow is getting tight.

All of these issues require immediate action, so go for the quick fix. But afterward, work on the best solution for the future. From the above examples, that may include documenting or improving procedures, cross training employees, creating multiple supplier arrangements, expanding or diversifying customer base, and ongoing marketing and sales efforts.

While the best solution will take more time, it is often worth it in the long-run. 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?

Determine The Source of Problems

How do you determine the source of problems? Ask more questions. How do we make sure this doesn’t happen again? How can we do this better in the future? Think systems and people!

What systems and procedures do you need to run all areas of your business? Are they documented so others can use them consistently? Are they effective – work the way they should?
What people (employees, vendors, contractors, power partners) do you need to run your systems? Are they trained properly? Are the expectations clear?

Get others involved and encourage people to speak up without fear. It’s difficult to get to the root cause and solve problems without honest communication from everyone. Make the commitment to really improve your business. Get rid of the band-aids and fix the problems for the long-term.

Tired of Hitting Roadblocks?

Would another set of eyes, ongoing support and accountability from an expert help you to get moving in a new and better direction? Let’s explore the possibilities with a brief, complimentary consultation. No obligation, only opportunity. Click here to schedule your free consultation today.

Ready to Lead Your Team?

Posted on by Joan Nowak

Leadership is tested most during times of crisis or change. Are you ready to lead your team? To be the leader your team needs, start by focusing on these four areas.

Communication

Good communication skills are important at all levels of business. But it can be challenging with some or all employees working remotely. Keeping a pulse on what’s going on is more difficult. Casual chats as you walk around and lunchroom conversations aren’t there for you. Getting informal communication or feedback requires planning and initiative.

Schedule brief catch-up calls with your staff. Encourage others to do the same. Nothing says I care more than a one-on-one conversation.
Zoom and Google Meet are great tools for bringing the team together. They can replace onsite meetings. Just don’t overdo it! Keep them brief and have an agenda.
Keep email communication clear and simple. They are a great way to keep your team up-to-date on what is going on.
If you use text, use it wisely. Would you want to receive text messages all day and night from your boss or colleagues?

Redefine Goals & Expectations

Most small businesses have undergone changes over the past year. Some changes were as simple as safety protocols. Others changed their business model, products, or operations.

But with the knowledge you gained and trends you’ve watched, take a hard look at your overall business. Your team, operations, customer service, products, systems, and margins may need revamping to handle changes in attitudes and behaviors. It’s not about surviving – but thriving in years ahead.

Communicate your new vision for the future. Clarity from you can also reduce stress on them! Set clear goals and expectations so everyone is on the same page.

Accountability

Communication and clear goals are a good start and something your team needs from you. But make sure you give people the tools, support, and authority to do their jobs and achieve the results you all want. Build-in accountability.

By definition, accountability is the acknowledgment and assumption of responsibility for actions, decisions, and implementation within the scope of their job. It comes with an obligation to report, explain and take ownership of results.

The best way to build accountability within your company is through follow-up. Check on progress along the way. When you follow up on projects or tasks you reinforce their importance. It also gives you the opportunity to recognize their work, keep them motivated or help get them back on track if necessary.

Delegation

“The greatest leader is not necessarily the one who does the greatest things, but the one that gets the people to do the greatest things.” If you believe the words of President Ronald Reagan, you have the ability to be a great leader. You simply need to open doors for others on your team to accomplish great things.

It starts with delegation. Sure effective delegation saves you time and allows you to focus on the right stuff. But it’s really more than that. When you effectively delegate work to others, you allow them to learn new skills and take on more responsibilities. It helps you empower others to accomplish great things for you and your company.

Mentoring

If you take care of your team, your team will take care of your business. Good leaders understand this so they make teamwork and developing others a priority.

We’ve all had people in our lives who we admired or learned from. They make a difference and are often unforgettable. Many of these individuals are former bosses, coaches, teachers or business colleagues. And when you ask people about them, you will often hear “I learned so much from him/her”.

You too can be that person in your company. Whether you teach them directly or open the doors to learning, you have the ability to help your team reach their full potential. Share your knowledge. Promote training and development within your company. Be the serving leader your team needs to excel at work and in life.

How Can I Help You Better Lead Your Team?

How can personalized advice and coaching help you reach your business and professional goals? Let’s start with a conversation about what’s important to you — and what is holding you back. Book a free 30-minute call today. Click to schedule now.

Do Products & Services Need a Facelift?

Posted on by Joan Nowak

Products and services have a shelf life because customer needs change over time. Do your need a facelift? Are your products and services a want, need or must have? The right products and services make marketing and sales growth easier.

5 Ways To Improve Offers and Grow Revenue

#1 Create a new product or service

What do your customers want or need today that you could easily offer or integrate into your services? They can be big or small. The key to success here is to ensure it’s a natural fit for your other products. They should compliment your current offers and be logical to customers based on your company’s reputation and experience.

#2 Offer a simpler or smaller version

Can you take something away or simplify it to make it more affordable to your target customers? This may be a way to create an easy entry to your company. From there, you can up-sell or cross-sell products in the future.

#3 Upgrade a product or service

What can you add to create a premium version or upgrade to something you already sell? What would your ideal customers value? Consider what your competition does or does not provide. One of the keys is to do a little research by talking to your ideal target customers. What do they want, what are they willing to pay?

#4 Bundle into a package

While bundled services may cost more as a package, they typically deliver more value in the long-term and ultimately save customers money. The key with packaging services is to create them for a niche or small segment of your market. Do not try to create packages that serve everyone or you will ultimately serve no one.

#5 Update your current products or services

Since the needs of customers change over time, your products and services need to keep up. Do the value-added features you include still matter to customers? If not, remove them and save the money. Are there services that you need to add that are now expected? If so, find a cost-effective way to incorporate them. Feedback from customers makes this easier to do. So evaluate your services and modify them as needed.

Communicate Changes and Improvements

When you give your products and services that much-needed upgrade, remember to communicate it! While many small businesses promote a new product, they often overlook communicating improvements or changes to existing products or services. Announcements in newsletters or email campaigns, press releases, a simple business letter, direct mail piece, updates on social media or even a ‘New’ icon on your product website can often do the trick.

Don’t overlook the product or service development side of your business. It’s an important part of marketing. And rem to communicate the changes you make. Your bottom line will thank you.

Ready to Put Your Business on a Better Path?

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

How to Fix Customer Churn

Posted on by Joan Nowak

Even if you do everything right, some level of customer churn is going to happen. Customers may move away or outgrow the need for your product or service. But if you dig deeper, you will find that most customer churn is controllable. You and your team have the ability to retain valued customers.

Why Customers Churn or Leave

When businesses lose valued customers, they often assume it is related to price or competition. But too often, that’s the go-to reason to justify the loss – covering up the real issues.

Outdated products or services. Customer needs change. So should your products or services. Do yours need a facelift?
Lack of engagement or perceived indifference. Most businesses invest a lot of resources on new customers. What are you doing to make valued customers feel important? Make sure they know you care.
Poor customer service or quality. It’s all about your customers’ expectations. They deal with a lot of companies and industries, not just yours. What should your customer experience look like? Does your team have the tools and know-how to deliver it consistently?
Attracting the wrong customers. It is not easy to turn away customers. But too many one-and-done sales or dissatisfied clients do not help your business. You want people who value, want and need what you offer. People whose problems you can solve – and are happy to pay for it. Is your marketing and sales attracting the right customers?
Over promise and under deliver. If customers expect the Taj Mahal and get a hut, they feel cheated. When it comes to quality, service, performance, lead time, results or other benefits — be honest.

How to Retain Valued Customers

Get Your House in Order. If customer service or quality levels are broke, work to fix them. It’s the number one way to reduce customer churn and retain customers. If you fail to deliver what you promise, customers won’t stick around and will share their bad experiences with others. Identify what you want the ‘buying experience’ to look like and have procedures and tools in place to help your people deliver it consistently.

Talk to Customers. Customer needs change over time. So, take the time to ask them for feedback on what they need and how well you are meeting their needs and expectations. It’s also a great way to uncover new product or service opportunities.

Reward Retention. If retention is really a priority in your business, demonstrate this to your team. Set goals for improvement areas and reward the team when they are accomplished. This approach works for any improvement you wish to make. It becomes a focus for your team. And with focus comes improvement.

Choose People Wisely. When you hire employees or select subcontractors to interact with your customers, make sure they value customers and possess the skills to deliver to your standards. Are they empathetic and trustworthy? Can they communicate well and listen? Each customer contact with you, your team or other partners is an opportunity to build your reputation or destroy it. Make the selection of people a priority.

Say Thank You. Sounds obvious but consider this. When was the last time you received a personal thank-you note from a company you do business with? This simple strategy can really make an impact and says a lot about your company and the value you place on customers.

Stay Connected. Social media can certainly keep your name in front of customers, but nothing beats a personal approach. Whether you do it by phone, mail or email, make sure your customers know you are thinking of them. Too often, we only connect when we’re trying to sell something. A simple thank you, a request for feedback, or a holiday greeting card can all do the trick. If you want to add a special offer, just for them, even better! While the frequency may vary based on your business or industry, quarterly contacts should be your minimum goal!

Make Customers Feel Important. Your current customers need to feel more appreciated than non-customers or prospects. While new customers are important to growth, make sure current customers get some VIP treatment. Programs, offers or specials that are exclusively available to them work well – so build some into your marketing efforts.

Make Service Everyone’s Job. Does everyone in your company understand the value of customers and are they ready to help them regardless of whose job it really is? Train your team on customer service and give them the tools and ability to take care of your customers. From the receptionist to the technician or delivery driver, your team will make an impression. The kind they make is up to you!

Ready to Put Your Business on the Path to Success?

Would another set of eyes, ongoing support and accountability from an expert help you take your business to a new level of success? Then let’s explore the possibilities with a complimentary consultation. To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

Make Your Business Stand Out

Posted on by Joan Nowak

Your customers are exposed to over 5,000 messages every day. So how do you get through the clutter and make your business stand out – without doubling your marketing budget? The key is a strong USP or unique selling proposition. When you nail it, marketing is a lot more effective so you can spend less and get more.

The latest, innovative product or service – something that nobody else offers – is one way to create uniqueness. But it’s not the only way. Service delivery, processes, people, technology, performance and other factors can help your small business stand out in the crowd. If you do it consistently well and tell people over and over again.

Determine What Makes you Unique

The best way to discover your uniqueness is to look at your business from the outside. When working through this with my clients, we start by answering the following questions.

What do you actually sell? Think benefits, not features.

What are your core products or services? Think beyond highest sales volumes or those that are common for your type of business. Your products or services can differentiate you, so look at them closely.

Who are your key competitors? Based on the benefits you deliver, consider actual competitors who do the same thing AND those who potentially deliver the same benefits with different products or services. Since you compete for a share of the budget, this can be helpful.

What are the perceived standards in your industry and other industries? Consider customer service, technology, product quality, sales and marketing. Your customers’ expectations are built from experiences with a lot of industries – not just yours.

What are some ‘claims’ about your products, services or business that you take for granted – and assume customers know about? Coors built their USP around their cold brewing process. While not unique in the industry, Coors was the first to actually tell people about it. And they still benefit from that message today.

Narrow Your Options

As you go through the process of brainstorming and answering these questions, ideas will pop into your head. Write them down, no matter how silly they may appear at first glance. Use all the information to come up with a few options to consider.

Next do a little research with your customers. Bounce some options off them. Did they know this about you or your business? Do they care? Why or why not? What does this claim say about your products, service or overall business?

Find something you do so well that you can guarantee it, especially if your industry has a reputation for doing this poorly. Look for a process in your business that links your products or services to quality or performance or reduces risk.

Sometimes simple things, such as custom scheduling blocks to eliminate long wait times, can make you stand out. You only need ONE. Identify your claim to fame and make it the focal point in your communication to customers and prospects.

Need another set of eyes to help you define your claim to fame? Let’s do it together. Call me at (856) 533-2344 to learn more or get started.

Break Down the Profit Barriers

Posted on by Joan Nowak

Marketing alone won’t solve your revenue or profit woes. It can actually erode profit further if done in a vacuum. Profit comes from a combination of factors working well together. If you want better business results, you need to break down the profit barriers between marketing, sales and operations.

Avoid Operating in a Vacuum

Marketing simply provides an opportunity to generate additional revenue. The key word here is opportunity. Regardless of what marketing tools you choose, most marketers evaluate their effectiveness based on activities or engagement metrics such as likes, clicks, calls, requests for quotes, appointments or visits.

But as the owner, actual sales generated and the associated profitability are far more important to your bottom line. Metrics like sales conversion rates, dollar amount of sale, and gross profit margins are vital measures for sales and marketing.

So how does your operations fit into marketing and sales discussions? Think about service levels and the impact they have on your reputation (future sales) and repeat business. The best marketing and sales efforts will be wasted if you don’t deliver what you promise customers in terms of quality and service. Customer satisfaction, on-time delivery, quality (rejects/reworks) and customer retention metrics can help you determine how well you perform in this critical area.

When you want to grow both revenue and profit, where should you apply your resources – time and money? The metrics above can be useful uncovering opportunities and weaknesses. So, it’s a good starting point. But here are a few other things I find helpful with clients.

Connect the Dots – and the People

Growing a business requires a full team effort. You need all your employees to provide creativity and commitment. It’s difficult to be successful when your marketing, sales and operations teams operate in silos. While they all have their roles, they can accomplish more when they work together with one common goal – to acquire and retain quality customers.

Bring down the barriers that tend to exist in many businesses – big and small. Connect the dots and leverage everyone’s knowledge and experience. Whether you are building a plan or solving a problem, tap into all the people resources in your business. Different perspectives can often bring better solutions or ideas.

Fix the Weaknesses

Before you invest more money in marketing, make sure your team is ready to convert the sales and deliver what you promise. There’s no point in getting leads – and then disappointing prospects or customers along the way.

For that reason, my work with clients on marketing always starts with an analysis of sales and operations. And yours should too. In addition to the metrics I mentioned earlier, here are a few additional things to consider as you look to improve these three areas:

Sales

Do our sales people have the training and skills to nurture leads, sustain relationships and close sales?
Are we prospecting for our own leads or do we rely heavily on inbound leads from other sources?
Is there too much emphasis on sales – and too little on profit or long-term value?
Do we track activities and results so discussions with others, including the owner, are based on data – along with customer feedback and gut.

Operations

Do our people have the training and appropriate levels of authority to do what is needed to solve customer issues or problems?
Is there too much focus on the quantity of work done – and too little on the quality?
Are we using technology to continuously improve efficiency, response time, scheduling and communication?
Do we have a consistent method to get feedback from our customers?
Do we track complaints and metrics that are important – and work as a whole team to correct issues we uncover.

Marketing

Are we opening the right doors for sales – and reaching the right prospects?
Is our message compelling and clear so it sets the right customer expectations?
Does our pricing align with our brand and value proposition – while providing the margins we need or want?
Is our marketing diversified to reach prospects through various methods?
Are we consistent and timely but flexible enough to take advantage of unique opportunities that may arise?

If you want a business that consistently delivers sustainable growth and profitability, break down the profit barriers and leverage your business for success.

Ready to work with a coach to solve your frustrations and leverage your business? Schedule your free session today. Learn More