Weekly Edge

How to successfully manage your business and your life

Heather Frame - Wednesday, February 20, 2019

If you’re like most business owners, you have more to do than time to do it.

 

But too many entrepreneurs get so wrapped up in their business, they forget to take care of the other aspects of their lives.  And the results can be devastating!  Families are neglected, friends are lost, and physical and mental health of the business owner declines (just to name a few).

 

So here are some tips to successfully manage your business and your life:

 

§  Put systems in place – Mistakes are made when processes are not systematized.  When processes are consistent, fewer mistakes are made and there are fewer fires to put out.

§  Take the day off – Despite the temptation to work a 7-day week, take at least one day for yourself.  You will see  your productivity and your health improve (not to mention how happy your family will be to see you)

§  Go home – Set a time schedule for yourself.  Schedule the number of hours you will work and stick to that plan.

§  Set your priorities – There’s always another crisis to save.  So be sure to make special occasions with friends and family a top priority.  Don’t allow a business ‘disaster’ to hold you back.  After all, there’s bound to be another one tomorrow.

 

You’ve probably heard all these tips before, but unless you are willing to take these suggestions to heart and make a change, then you’ll never be able to effectively manage your life.

 

And remember, nobody ever lay on their deathbed wishing they had spent more time at the office!

Is your database up to date?

Marcus Everett - Wednesday, February 13, 2019

Do you have a database of your customers?

 

As you know, it is far easier to sell back to someone who has bought from you before than it is to someone who has never bought from you.  So, doesn’t it make sense to know who these people are!

 

Keeping an accurate database of all your customer’s means you ensure you have all the right names and addresses.  This is important if you have a large database that you do not regularly check.  It is especially critical if you base much of your business on mail order and direct mail.

 

If your database is out of date, you can waste a lot of time and money contacting inactive customers, or sending mail to an old address after your clients have moved.  By regularly updating your database you can be sure that your time and money is being well spent.

Moments of truth…

Heather Frame - Wednesday, February 06, 2019

Do you know what your Moments of Truth are?  They are times when it really counts to impress someone with your service.

 

Do you know what yours might be?

 

Take the time now to list as many of them as you can.  Be ruthless with yourself.  A good place to start is with your customer interaction.

 

Once you’ve jotted down some of your Moments of Truth, you’ll begin to see why it is customers leave you for a competitor.  You’ll begin to develop ideas to stop this in its tracks.

 

Before we go any further, here’s some statistics about why customers leave that may startle you.  They are:

 

1% due to death

3% due to a house move

5% due to buying from a friend

9% due to being sold by a competitor

14% due to finding a better product or price

68% due to perceived indifference

 

These figures are staggering.  68% of your customers leave because they perceive your business to be indifferent to their needs.  They feel you just don’t care.

 

Now look at how many leave because of the efforts of your opposition.  The figures are so small as to be almost negligible.  Only 9% are swayed by the active efforts of your competitors, while a mere 14% find a more attractive deal elsewhere.

 

Remember the 80:20 rule?  If you were to really do well with only 20% of your customers, you’d be looking after those that account for 80% of your revenue.  So how hard is it to hang on to that 68% slice of customers who leave just because they think you don’t care about them?  Putting this another way, how easy would it be to retain that 20% of customers who contribute the most to your bottom line just by treating them well?  Why do all the difficult (and costly) things to shore up your bottom line when a simple remedy like offering great customer service can do it for you?

Here’s a quick test for you

Heather Frame - Wednesday, January 30, 2019

Do you know what a client is worth to you in your business?

 

What we’re talking about is their lifetime value.

 

Is a client worth $100?  $500?  $1,000?  20,000? Or even more?

 

Take a moment to get a figure in mind of what a client is worth to you…

 

Once you’ve got that figure think about this question

            What would you be willing to pay to get a new client?

 

Whenever you do any marketing, like placing an ad in the paper or doing a letter box drop for example, the cost of the activity must be divided by the number of new clients it creates.  This is your cost of acquisition.

 

So, whenever you embark on a marketing campaign in your business make sure you know how much you are going to spend and test and measure the results of how many new clients you gain from each campaign.  So you know exactly how much it costs you to acquire each client.

Have you bought yourself a job?

Heather Frame - Wednesday, January 23, 2019

Why do people go into business for themselves? 

 

Just look at the statistics.  Around 80 percent of businesses started this year will be gone in five years.

 

Most business owners we meet seem to work harder than any of their people, and many seem to make less income than they could make elsewhere.

 

From what we’ve found, people start their own business for one thing and one thing only…. freedom. 

 

Whether that is working for themselves, having more time for themselves, financial freedom, or just the freedom of knowing that they’re in charge of their lives.

 

Yet despite this longing to be in charge, the exact opposite becomes reality.  Most end up having the business run them.  In fact, they end up with the very thing they didn’t want, a job.

 

In effect, they’ve taken great risks and expended vast energy, and all they’ve done is bought employment.  A job that keeps them just over broke.

 

So, now it’s time to reflect on where you stand.  Have you bought yourself a job or are you well on the path to building a business that gives you your freedom?

Moving forward in 2019

Marcus Everett - Wednesday, January 16, 2019

Great leadership requires the ability to control what is in your power to control, to give people clarity, direction, and a sense of security, to chart a course and set goals your employees believe are attainable.

 

As we begin a new year, it is your job as the business leader to set and communicate expectations for the year ahead. From strategic initiatives to marketing campaigns, from new positions to new product lines, your company is waiting for you to clearly set the goals for the new year.

 

It also falls on your shoulders right now to make sure that your financial house is in order, that you understand thoroughly where you are today, how you got there, and have a plan moving forward.

 

Three areas of financial focus for Quarter One

We’re all eagerly anticipating good things from the year ahead. But hoping is one thing, preparing is another. Here are three financial objectives you really need to have in order to start the first quarter off right:

 

1.     Set Your Budget - Your budget is the financial plan for managing and controlling revenue and expenses over a period of time.

 

2.     Determine Your Financial Goals - A big part of your budgeting process revolves around the financial goals you’ve set for the year ahead. Where do you want and need your business to be at the end of the year?

 

3.     Communicate to your Team - we talk a lot about the importance of creating your Company Culture, or “the way we do it here” and communication is the key.

 

How your business does in Quarter 1 sets the tempo for the entire year. Make sure that you set the right tempo for the year ahead with clear direction, a realistic budget and the support of your team. Here's to your success!

 

Need help developing a budget? Just email us at info@profitedge.com.au  and we’ll

arrange to send you some tools to create your Budget and Cash flow forecast

The Writing Is On The Wall

Heather Frame - Wednesday, January 09, 2019

It’s official.  To survive in business in the current economy, you need to be focused on growth.  Now, more than ever, we need to build a strong relationship with our customers and get them involved in our businesses.

For years, just about anyone could make money in business.  Low interest rates, high employment and low inflation, spawned a whole generation of buyers eager to spend up big on credit; many possessing 3, 5 sometimes 10 or more credit cards.  So for years, business owners have been spoilt and you didn’t have to be Einstein to make money.

Fast forward to today and it’s a different story.

Belts have become tightened all over the country.  Wallets stay firmly shut as consumers battle their debts.

Many small businesses have been hit hard with a slump in profits threatening their existence.  Like a house of cards in a strong breeze, we can see many businesses come tumbling down.

However, the good news is, in our world most of our clients are doing well.  They’re being proactive, they’re not sitting around for the axe to fall.  They are actively working on their businesses and getting many balls in the air at the same time to keep their businesses growing.

This is what it takes.  You can’t sit still.

Most of this comes down to our own mindsets.  We must constantly monitor our thoughts and actions.  We can’t fall for all the doom and gloom talk.  We can’t wait for others to motivate us.  No.  We must be our own cheerleaders and keep ourselves moving forward.

Whatever happens this year, one thing is for certain, change is coming.  The lesson for us is to remain adaptable and embrace this change.  And proactively plan ahead to meet these challenges.

Your relationship with your customers will be the major factor in how well you survive and thrive in the coming year.  Remember, you’re in the relationship business; no matter what you actually sell, no matter what your profession or trade, you are in the relationship business.  Once you really understand this concept everything else gets a whole lot easier.

Stay focused

Heather Frame - Wednesday, January 02, 2019

As you get into the making the most of the year ahead keep this in mind…. 

 

‘Don't be distracted by criticism. Remember--the only taste of success some people get is to take a bite out of you.’ Zig Ziglar

What life do you choose?

Heather Frame - Wednesday, December 26, 2018

As 2018 draws to a close here’s something to ponder

 

‘Let others lead small lives, but not you.  Let others argue over small things, but not you.  Let others cry over small hurts, but not you.  Let others leave their future in someone else's hands, but not you.’ Jim Rohn

 

Here’s to a huge 2019 ahead

Merry Christmas….. And eight gifts that do not cost a cent

Heather Frame - Wednesday, December 19, 2018

With only six sleeps to go before the big day here’s wishing you a happy and safe Christmas with your loved ones. 

 

Plus, here are 8 gift ideas that do not cost a cent

 

1.     THE GIFT OF LISTENING...
But you must REALLY listen. No interrupting, no daydreaming, no planning your response. Just listening.

 

2.     THE GIFT OF AFFECTION...
Be generous with appropriate hugs, kisses, pats on the back and holds. Let these small actions demonstrate the love you have for family and friends.

 

3.     THE GIFT OF LAUGHTER...
Clip cartoons. Share articles and funny stories. Your gift will say, "I love to laugh with you."

 

4.     THE GIFT OF A WRITTEN NOTE...
It can be a simple "Thanks for the help" note or a full sonnet. A brief, handwritten note may be remembered for a lifetime, and may even change a life.

 

5.     THE GIFT OF A COMPLIMENT...
A simple and sincere, "You look great in red," "You did a super job" or "That was a wonderful meal" can make someone's day.

 

6.     THE GIFT OF A FAVOR...
Every day, go out of your way to do something kind.

 

7.     THE GIFT OF SOLITUDE...
There are times when we want nothing better than to be left alone. Be sensitive to those times and give the gift of solitude to others.

 

8.     THE GIFT OF A CHEERFUL DISPOSITION...
The easiest way to feel good is to extend a kind word to someone, really it's not that hard to say, Hello or Thank You.