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Are You
Making Any of These
10 Costly Small Business Mistakes?
These traps/mistakes are common to many
entrepreneurs and small business owners:
1. Getting Wedded To
an Idea And Sticking With It Too Long.
Don't marry a single idea. Remember, ideas are the currency of
entrepreneurs. Play with many ideas and see which ones bring money and
success.
2. No Marketing Plan.
A marketing plan creates the kind of attention you need to get in
front of the right types of people, companies, etc. It is what attracts
people to you! There may be as many as 25 ways to market your business
at no or low cost. A good marketing plan implemented effectively,
efficiently, elegantly and consistently, will eliminate the need for
"cold calls!" (See below for how to create a results driven marketing
plan).
3. Not Knowing Your
Customers.
Changes in your customers' preferences and your competitors'
products and services can leave you in the dust unless you get to know
your customers well, what they want now and will likely want in the
future, what their buying patterns are, and how you can be a resource
for them even if you don't have the right products or services for them
now! (See below for low cost techniques to gather facts about your
customers and the people you'd like to have for customers).
4. Ignoring Your Cash
Position.
The world (aka customers) doesn't respond to even superior products
in the timeframe that you think they should. You'll need plenty of cash
to sustain yourself in the meantime. (See below for how to forecast your
cash needs and protect yourself from cash crisis situations).
5. Ignoring Employees.
Motivating, coaching and managing your staff is probably one of your
toughest challenges as an entrepreneur/business owner today! Without
your patience, persistence and "people skills," your problems can
multiply quickly. Morale, productivity AND PROFITS can easily be
destroyed! (See below for how to get your employees' full commitment to
job performance).
6. Confusing
Likelihood With Reality.
The successful entrepreneur lives in a world of likelihood but
spends money in the world of reality.
7. No Sales Plan.
Without a sales plan, there's no serious way to gage the financial
growth and progress of your business. You need a realistic map for where
the sales will come from, how they'll come and from whom.
8. Being a Lone
Ranger.
You might be the key to everything BUT you cannot DO everything and
grow at the same time. Even modest success can overwhelm you unless you
hire the right staff and delegate responsibility. (See below for
effective delegation techniques)
9. No Mastermind.
Get an advisory board or a mentor! Sounds crazy for a small
operation? It's not! The board can be family members that you trust, or
friends. Ask them to be your board of directors and review your business
plans and results with them. Having someone to bounce ideas off and get
an objective opinion is critical.
10. Giving Up.
Some of the most successful entrepreneurs failed several times
before doing extremely well. So, if you're failing, fail. And fail fast.
And learn. And try again, with this new wisdom. Do NOT give up. Yet, do
not suffer, either.
The Secret of
Making Money
With Your Small Business
It was Scott Fitzgerald who observed,
"The rich are different from us."
It was Ernest Hemingway who then shot
back, "Yes. They have more money."
But money isn't all that the rich have
more of, they also have more worries...
...so before you accept this invitation
to move up higher financially, you may want to consider some of the pros
and cons:
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Disadvantages
of Being Rich
You'll start hearing from long-lost
cousins looking for loans.
You won't be able to get away with
sending the Red Cross just $10.
Total strangers will corner you to
ask which stocks to buy.
You'll have to dress for the opera.
Whenever you throw a dinner party,
you'll be expected to provide valet parking.
No guest will ever again show up
bearing a bottle of wine.
Political candidates will want to be
introduced to you.
None will want voters to see you
together.
You'll feel obligated to buy the
Forbes 400 issue each year to see if you've made the list of
America's richest. |
Advantages
of Being Rich
You'll have tons of money.
|
So, now then. Do you really still want to
be rich? You do? Great! because I am going to give you some tips and
techniques that will help you succeed and make lots of money with your
small business...
...but first let me reveal to you the
one ingredient that will determine the fate of your success.
The Single Most
Important
Ingredient for Business Success
The first and most important thing you
need to acquire in order to succeed in a small business is... knowledge.
Sounds exaggerated? Listen to this...
According to research conducted by Dun &
Bradstreet, 90% of all small business failures can be traced to poor
management resulting from lack of knowledge.
This is backed up by my own personal
observations. In my 23 years as a business coach and consultant to small
businesses, I've seen practically dozens of small business owners go
under and lose their businesses -- not because they weren't talented or
smart enough -- but because they were trying to re-invent the wheel
rather than rely on proven, tested methods that work.
Conclusion:
if you are really serious about
succeeding in a business... If you want to avoid the common traps and
mistakes... it is absolutely necessary that you acquire the right
knowledge, and the obvious way to do so would be to look for it on the
Internet, right? Wrong!!!
On the Internet, it's tough to know whom
to believe. There are so many people making ridiculous claims, it's
insane.
Here's How I'm
Going to Help You Instantly
Improve Your Business Profitability
I am going to share with you some of the
best kept secrets in the small business community: The methods, the
techniques and the "dirty little tricks" that make it possible for an
elite core of small business owners to take the lead and see their sales
and profits explode. These are the same proven and tested techniques
that my clients pay me $630 an hour to hear.
You'll be saving time and money, avoiding
mistakes and disastrous situations, and learning secrets other business
owners only wish they knew.
Here are a few things I discuss that will
start putting a lot of cash into your pocket every month:
How to determine the feasibility of your business idea. A complete fill
in the blanks template system that will help you predict problems before
they happen and keep you from losing your shirt on dog business ideas
Do you
need new customers for your business? If you do, then here's a great
idea that has worked magic for businesses. I'll show you this little
known, yet extremely effective ten-step strategy to locate and find new
customers. This same formula helped one client of mine to increase his
customer base by 46% last year.
What to do
when you work your tail end off on a marketing campaign and it bombs? A
unique method will help you find out what went wrong and how to fix it.
A complete
step by step guide guaranteed to help you increase your profits by up to
64%, I call it "The Profit Planning Guide". This is a simple, practical,
common sense strategy, but amazingly enough, almost no one understands
or uses it.
Five
things most all business owners do wrong that actually hurt their
business badly. Are you your own worst enemy? If you are, don't worry.
You can easily cure these common ailments in only an hour or two.
A complete
step-by-step organized program for cutting costs in your business.
Clients of mine have achieved an average of 28% to 35% cost reduction
with this technique, and you can too. Keep the money in your pocket with
this one!
An arsenal
of 43 super-slick results-oriented ideas to promote your business. Apply
these clever strategies to see your sales skyrocket.
Top 4 ways
to obtain money for your business and which one of them you should use
-- making the wrong choice may cost you dearly.
Your cash
position is one factor that can make or break your business. I'll show
you techniques to protect yourself from cash crisis situations and what
to do if you get into one. This is extremely essential must-know
information - ignore it at your own risk.
If you are
having problems selling what you're selling, it's probably because
you're selling the wrong thing to the wrong folks. Sometimes just a
twist or two can shake loose the money like crazy. I'll show you how to
shake, jiggle and jolt your money tree.
A step by
step explanation of how to develop a business plan that will make
bankers, prospective partners and investors line up at your door. Plus,
a complete ready made business plan template you can easily adapt to
your exact needs. (This material alone is sold elsewhere for $69.95)
Discover
the easiest, simplest ways to find new products for your business that
people are anxious to buy
How to
make money with your new idea or invention. Secrets of making sure you
put cash in your pocket on your very first idea business venture
Do you
know exactly why people are buying from you? If you don't, you could be
missing eighty percent of your potential buyers. The solution? Low cost
market research. I'll show you clever, proven methods to get closer to
your customers needs and to ensure that they keep coming back for more
What
portion of your advertising works and what is a complete waste of money.
A simple to implement technique will help you to find out.
How to
expand your market. Powerful strategies for growth and expansion
What bank
loan officers don't tell you. How to get your loan applications
accepted. Traps and mistakes to avoid.
Simple,
easy to copy ideas that will enhance your image - and the response you
get from your customers
How to
hire the right employees. Techniques and strategies to assemble your own
winning team. Helps you to always get the right people for the right job
Proven
techniques to spur stuff productivity and team spirit - you'll get more
done with less resistance, quickly and effectively
How to
effectively delegate work and responsibilities. Tactics to squeeze more
out of your day with foolproof delegation techniques
Boost your
business performance through a management audit. Easy to follow method
to give your business a profit checkup. Instantly reveal inherent
problems and hidden opportunities
How to
effectively present plans and ideas. Easy-to-follow tips and strategies
to drive your point home in a powerful way
Common
problems in managing a family business - and how to solve them once and
for all
Business
survival tips. Strategies and techniques to help you in bad times - this
can make or break your business
I'll show
you an amazingly simple, low cost technique to gather facts about your
customers and the people you'd like to have for customers.
What are
the secrets behind constructing a results driven marketing plan? I will
lead you step by step into developing a marketing plan that will drive
your sales through the roof.
Complete,
step by step instructions on how to plan and start a new business. This
is must-know must-do information; ignore it and you stand a good chance
to fail. You get specifically designed instructions for each of the
following: a service business, a retail store, a home based business, a
manufacturing company, and more.
What are
the secrets behind the people who have million dollar home based
businesses? I'll give you a 24 tip list proven to turn your home
business into a money machine.
How to
determine the optimal price points for your products? Are you selling
way too cheap? Did you know you could often increase sales by raising
your prices? Learn the art of beating your competitors' prices while
remaining extremely profitable.
Which
media outlet will bring you the best results for the money? Where to
spend your limited advertising budget. What NOT to waste money on.
A little
known strategy that will double, even triple the effectiveness of your
advertising. What you need is a psychological weapon. I'll tell you
about one so slick it'll blow your mind.
I'll
reveal to you an amazing eight-step selling formula I have learned from
one of the top sellers in the country. Just following this simple
formula will turn you into a top seller almost overnight. More
importantly, you come away with the most comprehensive understanding of
the essence of the selling process. This skill alone, which few people
possess, is worth a small fortune.
How to
write "killer" ad copy that will make orders roll in so fast it will
make your head spin.
What
direct mail techniques work and which ones flop (you'll be shocked!).
Direct mail secrets you can take to the bank.
Complete
fill in the blanks template system for crafting a marketing plan that
will explode your sales and profits.
How to
create a press release that snag free publicity like crazy. You get a
step-by-step instructions plus actual samples.
What
nobody ever told you about raising venture capital money. Insider
secrets of attracting investors, how to best construct your proposal,
common mistakes and traps to avoid, and much more.
Having
problems collecting money owed to you by customers? Here's how to get
what is yours! I'll show you effective collection techniques you can use
and mistakes to avoid.
How to get
your employees' full commitment to job performance. Discover the five
key factors that determine your employees' commitment and dedication.
You may find it hard to believe, but none of them include a raise.
I'll show
you exactly how to plan and execute your marketing campaign so that
orders come pouring in -- and the logic behind it.
Facing a
tough decision? I'll teach you an effective 7-step decision making
formula that will help you come to the right decisions. It's easy and
really works!
As a
business owner you deal with problems and crisis situations on an almost
daily basis. As a matter of fact the way you handle such situations can
make or break you. I'll show you an effective, easy to implement 9 step
strategy that will help you solve any problem like magic.
How to
decide on the legal structure of your firm. A revealing look at the pros
and cons of a sole proprietorship, a partnership and a corporation and
which of these structures is best for you
Checklist
for entering into a partnership. Keeps you from costly mistakes when
forming a partnership
How to
select a franchise business. A step by step guide to selecting a
franchise that is best for you
How to
create a results oriented marketing budget. Where to focus your
marketing money and energy for maximum profit
Effective
(and cost effective) ways to make customers aware of your products and
services. Plus, little known strategies that will double, even triple
the effectiveness of your advertising
Insider
secrets and tips revealed for ensuring your success in a home based
business
Financial
ratio analysis. Easy to grasp explanations, formulas and ratios that you
can apply immediately to make sure your business in on the right track
Where do
you go for the financing you'll need? Real options plus tips on which is
best for you
Checklist
for retaining your profit. A penny saved is a penny earned - simple ways
to keep profit up and costs down
How to
build employee trust. Powerful strategies to establish your credibility
with subordinates
How to use
and apply positive discipline measures. clever strategies to handle
tricky, frustrating or time-wasting situations with flair, confidence
and speed
How to
deal with employee grievances. Ignoring them won't make them go away -
techniques for handling complaints like a pro. Do's and dont's for
smoothing out the waves
How to be
a better communicator. Boost your communication skills so your message
is always clear and decisive
How to
conduct successful meetings the easy way
Planning
and goal setting made easy. A wise man once said: "If you're not sure
where you are going, you're liable to end up someplace else". Here are
the tips and techniques that will help make sure you're always on the
right track
How to
handle stress the easy way. Eleven sure-fire ways to make the stress in
your life work for you instead of against you
***
There is so much more, I
couldn't possibly list it all here. What you have just read is only a
small sample of the exciting information you will get when you use the
Managing a Small Business CD-ROM (MSB).
Can you see yourself
becoming totally absorbed by this information, injecting your business
with new life, and experiencing a dramatic increase in sales and
profits? By now, it's obvious you can.
You need this kind of
straight-up information. The Managing a Small Business CD-ROM is so
comprehensive it will blow your mind. This is the mother of all small
business reference guides. I've included in it everything I have learned
during my 23 year career as a business coach and consultant.
You'll find in MSB dozens of
simple to understand guides, worksheets and tip lists that will reduce
your learning curve by years. It contains a whopping 220 topics that
cover practically every aspect of running a small business.
It's so
complete and easy to use...
...you'll no
longer worry about over looking an obvious solution to a situation
... no
longer be forced to turn to expensive outside consultants
... no more
time-wasting and money-draining due to lack of knowledge
... no
longer struggle trying to handle frustrating situations that could have
been avoided before they turned into costly problems.
The CD-ROM will teach you
scores of tricks, secrets and shortcuts -- and teach them so that you
can start using them at once. This program does far more than
impart knowledge... it inspire action.
The material included in the
CD-ROM is so vast that if put on paper it would take up a six-foot
shelf. And it comes complete with an index that makes it easy for you to
locate the exact information you need in order to tackle any situation
in your business.
It's like having a business
consultant at your side 24 hour a day.... at a fraction of the cost.
By the way, my clients and
protégés were so impressed with the CD-ROM that they have nicknamed it,
"SBB" (short for "Small Business Bible").
Whether you're just getting
started or you're on your way to the top, this could be the single most
important investment you make in your business!
The Managing a Small
Business CD-ROM could pay for itself the first time you use it... and
it's sure to spare you lots of costly mistakes every step of the way.
Free Bonuses
Just to "sweeten" the deal,
if I receive your order by midnight
Saturday, July 5, 2008, I'll include the following
Seven valuable bonuses (worth $500), that you can keep
as a gift, even if you later decide not to keep the CD-ROM package!
You get here superior tools
to help you ensure the success and growth of your business - all packed
into seven dynamite, "easy to use" software packages
Free Bonus
#1:
A Fully Featured
Small-Business Accounting Package. (a $70 value).
This is a fully functional, high-quality
software program.
Detailed help will get you familiar with the
various data-entry forms and data tables for clients, suppliers, and
reports. There's plenty of detail for small-business accounting,
including tabbed dialogs for extensive formatted data entry, memos, and
record-keeping.
Searches
and filters let you manipulate data easily, and preformatted reports
summarize the details.
The program includes:
-
General ledger, Accounts
receivable and Accounts payable
-
Powerful invoice/order
entry system
-
Bank reconciliation
-
Automated checks printing
-
Design your own reports,
business forms and financial statements
-
Export reports directly to
MSOffice suite
-
And much more ...
If this sounds like
mumbo-jumbo to you, don't worry. Once you read the financial management
section of the CD-ROM, it will become crystal clear to you, and you will
also realize how crucial the financial and record keeping activities are
to the success and growth of your business.
This is a professional tool,
yet intuitive and easy to use. It comes complete with detailed
instructions and a help system that makes it easy for you to take full
advantage of all its features even if you are just taking your first
steps as a business manager.
Free Bonus
#2:
Advanced Contact and
Information Manager
(a $63 value).
This software program is a
full featured versatile Contact and Information Manager designed to meet
your evolving needs as a small business manager. It is the ideal choice
for people who need to organize their contacts information without
having to take time to learn a complex program.
The powerful, easy-to-use
features provide an interface that lets you keep track of virtually any
contact you have with your customers, prospects, and associates.
You can
use it to plan out-of-town trips by calculating distances between
various U.S. locations, categorize contacts into groups to send
mailings, and schedule appointments with flexible warning alarms. It
also lets you quickly update records in one step, view a contact's
activities graphically with dynamic charts, send personalized email to
unlimited contacts, and generate dozens of reports for one or all
databases. Other nice features include a word processor with spell
checking, built-in auto-dialing, launchable URLs, a to-do list, label
and envelope printing, and drag-and-drop appointments and events.
Free Bonus
#3:
An Easy to Use Project
Management Software Program (a $60 value).
Start a
business, develop a product, plan a wedding, build a home, add a deck,
and more! With this program, planning special events and managing
projects is easier than ever before!
With the
program you can manage and communicate every stage of any kind of
project and manage one or many projects simultaneously. You can even
drag and drop objects between projects or work breakdown structure limbs
without losing dependencies and workflow. The program lets you handle
project schedules and resources with customizable project, activity and
resource calendars. It also offers on-screen resource and expense
summarization at any level of the project hierarchy.
Free Bonus
#4:
A Fast And Easy Program
For Effective Forms Management
(a $60 value).
Design your own forms from
scratch-- it's as simple as drag-and-drop. With easy-editing
capabilities and on-screen filling and mailing. This program has
everything you need to start using forms today. Do away with having to
choose between forms that don't fit your needs and costly trips to the
printer. Take a break from tedious manual filling. Create custom forms
and fill them on your personal computer
Free Bonus
#5:
A list of 5000
media contacts, including magazines, weekly newspapers, daily
newspapers, radio and TV stations
(a $120 value).
Having your business
mentioned in the media is one of the best ways to gain exposure for your
products or services, as well as a highly professional image for your
business!
In the course you'll learn
how to write results driven press releases. Usually the only sensible
way to publicize your press releases would be to have an agency do it
for you. This would cost you $100’s if not $1000’s of dollars. Now you
can reach 5000, yes 5000, media sources with your press release. No need
to utilize a public relations outfit, YOU can do it yourself, and pocket
the money you save!
Free Bonus
#6:
I'll give you access to
my bookmarks of essential small business resources on the Internet
(a $50 value). This is my personal resource list, I have spent four
years compiling and distilling it and it is worth a fortune. The time
you will save and the money you will make from these resources are
enormous. I make it available exclusively to people who have ordered the
CD-ROM. No one else can access it.
Free Bonus
#7:
A collection of 70
invaluable, ready-to-use business & legal forms (a $77 value).
With this collection you no
longer have to depend on expensive, time-consuming lawyers every time
you need a legal agreement. Saves you thousands of dollars in legal
fees.
You'll find here most needed
forms, including: sale of goods contract, sale of motor vehicle
contract, sale/purchase of business, demand for payment, indemnity
agreement, notice of default, settlement offer on disputed account,
articles of incorporation, corporate bylaws, corporate shareholders
agreement, corporate stockholder proxy, stock purchase agreement,
partnership agreement, agreement to sell business, joint venture
agreement, employment agreement, employee non-compete agreement,
consulting agreement, sales rep agreement, promissory notes, wills, and
much more.
That is a total value of
$500 in free gifts, yours to keep regardless of whether or not you
decide to keep the CD-ROM.
Who I Am and Why I'm
Qualified to Give You
the Best Small Business Advice Available
I'm the CEO
of BizMove.com, a successful Internet based information business. I'm
also the creator of "The Managing a Small Business CD-ROM" and the
author of five books, all in the area of small business management.
I've been
involved in small business for the past 23 years of my life, as a
business coach, a manager of a consulting firm, a seminar leader and as
the owner of five successful businesses.
During my
career as a business coach and consultant I've helped dozens of business
owners start their businesses, market, expand, get out of troubles, sell
their businesses and do practically every other small business activity
you can think of.
The CD-ROM
presented here contains every tip, trick, technique and strategy I've
learned during my 23 year small business career. You practically get my
whole brain on a CD.
Here's what
other people say about the CD-ROM:
"This is great. I received
the CD-ROM. I applied the advice from the "profit planning guide"
and within
6 months my profits jumped by 32%.
Thank you."
Edward L. Booth, New York, NY
"I am an avid reader of
business how-to books. Your Managing a Small Business CD-ROM is by far
the most comprehensive and useful business resource I have ever seen."
Larry Swain, Cambridge, MA
"The marketing section is
what I use most. The success of our recent marketing campaign can be
attributed directly to your advice."
John Karno, Santa Monica, CA
"I've been a small business
owner for the past 15 years. I am surprised to find in your CD-ROM so
much useful stuff that is completely new to me."
Steve Edmark, Des Plains, IL
"I ordered the Managing a
Small Business CD-ROM after a new business I had started, flopped. It
opened my eyes to see the mistakes I had made. I started using your
advice. Now, in just 4 months, I am breaking even and the prospects look
great."
Karen Elizabeth Barnays, Houston, TX
"The Managing a Small
Business CD-ROM is my constant business companion. I consult with it at
least once or twice each week."
Richard Song, Melbourne, Australia
"I started a new business
with no prior knowledge except what I found in your CD-ROM. Friends
warned me, pointing to the high failure rate of new businesses. I went
on with my idea and succeeded. I spread the word about the CD-ROM to
every business owner I meet."
Thomas Hicks, Newport Beach, CA
A
Full
Year Money-Back Guarantee
If you want to order, I
insist you do so entirely at my risk. That is why the CD-ROM comes with
a... No Risk full year Money-Back Guarantee. There is absolutely
NO RISK on your part with this 365 day guarantee. What I mean is I want
you to order without feeling you might "get taken." After all, I am a
well-respected consultant and my reputation is on the line.
Therefore, I want you to
order this material today... read it, use it... and if for any reason
you aren't completely satisfied, you not only can cancel, you should,
for an immediate refund of your purchase price. You simply can't lose.
And if you decide to cancel
and return the CD-ROM, the Seven bonuses are yours to keep, with our
compliments, just for taking the time to respond to our offer.
How the CD-ROM is
priced?
This essential CD-ROM is
normally priced at $99.95, but...
... as part of a marketing
test, if you order by midnight
Saturday, July 5, 2008, you pay only $49.97 (that's
50% off ...plus, you still get all seven FREE bonuses.)
Think about it, Just one
strategy can put thousands of new dollars into your bank account.
Money that'll fall through your fingers, if you don't grab this offer
now. Simply because you don't know what to do, or how to do it
The price of this valuable
resource is a painless drop in the bucket compared to the money you
would lose in your lifetime without this know-how. Look at it this
way... You really cannot afford not to invest in this course.
Plus, listen to this... I find this to be the most exciting part...
In addition to the fully loaded CD-ROM that will be sent to you via
airmail, you will also get, WITHIN 10 MINUTES, a concise version of the
manual. Yes, that is right... Within 10 Minutes of receiving your
on-line order (within 24 hours if you order by phone), our computer will
automatically give you instructions of how to immediately download a
concise version of the manual so that you can start taking advantage of
those essential techniques and strategies right away.
A quick
reminder: The special price of $49.97 is only guaranteed if you
order by midnight
Saturday, July 5, 2008. Otherwise you'll have to pay the regular
price of $99.95.
If you are serious about
succeeding in your business, you need this CD-ROM. Don't delay a
moment longer. Order now!
Easy Way to Order
Sincerely,
President, The Small Business Treasure Chest Inc
P.S. The Managing a
Small Business CD-ROM will make a huge difference. You risk nothing. The
CD-ROM is not the original price of $99.95, but only $49.97 (if you
order by midnight
Saturday, July 5, 2008) and comes with a one year money back
guarantee. And you get 7 free bonuses which you may keep regardless.
Don't delay a moment longer, order now!
P.P.S. By the way,
the Managing a Small Business is a tax-deductible purchase on Schedule A
of your tax return.
|
Food
For Thought
Today is a new day. Make the best of it. Don't fill it with complaints
or regrets. Break the cycle and use today to accomplish something.
Is there a problem that's been hounding you? Start taking steps to
solve it. Pretending like it's not there won't make it go away. Start
working on it today. Is there a project you've been meaning to start?
Begin it today. Make a good start, and make the commitment to work on
it every day until it is finished. There will always be a good excuse
not to, but excuses don't bring any fulfillment to your life. Just do
it.
What is the best thing you can do with this day of your life? How can
you use today to bring more value and fulfillment to yourself and to
others? Each moment is an opportunity to live and to give. Make it
count. |
How to Cut Your Expenses
Increasing
profits through cost reduction must be based on the concept of an
organized, planned program. Unless adequate records are maintained through
a proper accounting system, there can be no basis for ascertaining and
analyzing costs.
Cost reduction is not
simply attempting to slash any and all expenses unmethodically. The
owner-manager must understand the nature of expenses and how expenses
inter-relate with sales, inventories, cost of goods sold, gross profits,
and net profits.
Cost reduction does not
mean only the reduction of specific expenses. You can achieve greater
profits through more efficient use of the expense dollar. Some of the ways
you do this are by increasing the average sale per customer, by
effectively using display space and thereby increasing sales volume per
square foot, by getting a larger return for your advertising and sales
promotion dollar, and by improving your internal methods and procedures.
Profit is in danger when
good merchandising and cost control do not go hand in hand. A big sales
volume does not necessarily mean a big profit, as one retailer, Carl
Jones, learned.
Jones's pride was stocking
stylish and well assorted lines of merchandise. Each year, sales volume
increased. This increase was attributed to good merchandise which Jones
felt took care of the steady rise in expenses.
But Mr.
Jones began to have doubts when he found it necessary to get bank loans
more often than had been his practice. When he discussed the problem with
his banker, Jones was advised to check expenses. As the banker said, "A
large and increasing sales volume often creates the appearance of
prosperity while behind-the-scene expenses are eating up the profit."
Paying The Right Price
Your goal should be to pay the right price for prosperity.
Determining that price for your operation goes beyond knowing what your
expenses are. Reducing expenses to increase profit requires you to obtain
the most efficient use of the expense dollar.
Look, for example, at the
payroll expense. Salesclerks are paid to sell goods, and their
productivity is the key to reducing the payroll cost.
If you train a salesclerk
to make multiple sales at higher unit prices, you increase productivity
and your profits without adding dollars to your payroll expenses. Or, if
four salesclerks can be trained to sell the amount previously sold by
seven, the payroll can be cut by three persons.
An understanding of the
worth of each expense item comes from experience and an analysis of
records. Adequate records tell what has happened. Their analysis provide
facts which can help you set realistic goals, you are paying the right
price for your store's prosperity.
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