The Case Self-Reliance in Business

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OK, I know, the election has long passed us and yet many of us are still wondering – “What’s the government going to do for us now?”

That very question gives me the chills.  Gross.  That’s the problem isn’t it?

I think the better question is – “What can I do for myself and my business today?”

My eldest daughter Chloe was blessed to obtain an education that was ideal for her from K through 8th grade at a Waldorf School. For those of you who are curious about Rudolph Steiner’s educational philosophy, feel free to go to http://en.wikipedia.org/wiki/Rudolf_Steiner to learn more.

One of the basic tenets though is the teaching of self-reliance. The ability to do and take care of oneself is a key component of this educational program. It’s the basis for a sound foundation to build your life on and become responsible for yourself and others who are apart of your community as well.

So many of our government funded programs instill the need for individuals to become further dependent on the system – rather than learn and practice the skills they need to break the cycle and become self-sufficient.

My beau, Tom, was attempting to help another colleague by asking him a series of questions about what he was doing in terms of finding another job. The bottom-line, “not too much.”

Why not?

People are faced with feelings of being overwhelmed, helpless and despair right now, in part, because they believe someone will be out their to help them.

Most great opportunities are the ones we generate for ourselves and take responsibility for.

How are you being self-reliant in your business? Share Your Comments Below!

Ask Ellen Rohr – How to write a refund policy

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Dear Ellen,

My husband and I run a small plumbing and heating business.  For the first time ever, we are going to accept credit cards.

The credit card company requires that we provide them with our “refund policy.”  Can you help?

All the best,

Carol Cautious

Dear Ms. Cautious,

How about…100% satisfaction or 100% money back.

Why not?  Vow to resolve every customer complaint to the customer’s complete satisfaction, including a full refund, if that’s what it takes.

When you put together your budget, add an account that reads “Customer Satisfaction Costs.”  This is an expense category for money (dinner tickets, carpet cleaning, whatever) that you give to the customers to make ‘em happy.  This won’t be more than 1-2% of your total sales.  Some folks are just bad customers.  Expect a few and budget them in.

For big jobs, build payment points throughout the production, to keep cash flowing and to spot – and resolve – dissatisfaction before the job is finished.

For more information on refund policy’s and to ask Ellen your own question, visit www.BareBonesBiz.com

Top 3 (+1) ways to provide Excellent Customer Service

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1. The customer is #1.

We’ve all known this forever. It’s a golden rule. But have you noticed how this simple, important concept seems to have slipped to the wayside the last few years? Sullen sales people, crabby CSRs and inept employees abound. I have to admit that when I come across one of these types employees, I feel I should re-thinking doing business with them.

Everyone wants to be treated with courtesy and respect. Also understanding and tolerance. Sometimes even with empathy. All this makes us feel good and we become receptive. But being treated in a negative way causes us to close off and become resistant and possibly resentful. This is certainly not the feelings we want to create in our consumers!

2. Everyone is a customer

Including employees and other support people! Yes, everyone with whom we come in contact with daily  is involved in providing customer service to consumers. There must be a sense of genuine appreciation and respect to all, or an excellent customer service plan will fall apart rather quickly! It’s a team effort and everyone in the company must thoroughly believe in and be committed to the effort. And this means every single person in the organization being supportive of one another!

3. Thorough training.

I know this initial cost outlay can make some cringe. But if your people are not trained properly you will lose sales and consumers, which will amount to a much bigger cost later.  From their first day, employees need to be taught the importance of customer service and how to deliver it. Also, a rigorous training program will let your people know they are held to a higher standard – kind of like being a member of an exclusive club!

+1. You must be committed to exceptional customer service.

Hire the best people. Train them well. Compensate them well. Hold them to a higher standard. And most importantly, show by example. Customer service runs from the top of the organization chart all the way down to the newly hired part-time floor buffer. It must be you that leads the charge to create and maintain an atmosphere of excellence and care.

Do you have customer service tips?  Please share them below!

Social Networking Short-Cuts

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Networking has always been a tough part of building a business — it takes a lot of time and effort making connections with the people you meet, often with little success. But today, there are many ways to network more effectively and in less time — and it’s mostly by networking smarter, not harder.

Be More Strategic About Your Networking

Strategic networking does away with the random, off-chance style of attending events and meeting strangers.  Rather than wasting hours of precious time sorting through a needle in a haystack, here are three easy steps to cut your networking time in half – offline and online!

1. Spend some time reviewing your business’s goals.

2. Next, identify the kind of people you need in your network to help you reach your goals.

3. Make a list of 10 ways you can meet your now targeted and ideal network.

What associations can you align with that will specifically this audience?
Who do you know that can give you an introduction to an ideal prospect?
What Facebook groups have captured your ideal audience?

Start with your list of 10 and begin working your way through it.

After 20 long hard years of networking, it can be exhausting and extremely time-consuming.  Trim the fat, so to speak, gain laser focus and go STRAIGHT to your ideal customer, client or prospect!

Do you have tips on networking short-cuts?  If so, please share them below!

Home Services? Maybe Not.

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I just purchased a “dog” of a house in Concord to use as an investment property that I can fix up and rent out.  Great idea, right?  I thought so, but as always, nothing is ever as simple as it appears.

In measuring the openings of missing or chewed out doors (a dog that was “kept” in the basement for God knows how long), I realized many of these items could not be purchased at the big box home improvement retailers.  Special orders mean more money, however, luckily, I live in a town that has a special lumber company with specialized service and even though you have to spend a little more money, it’s worth it in the end right?

Well, not so fast.  Measurements were not done correctly — did I mention I’m a Property Virgin (a borrowed name of a show from my favorite television network, HGTV), and upon visiting the lumber company again, one of the salespeople standing next to the gentleman who was helping me had to bring it to my attention that there would be an automatic 15% restocking fee.  I wasn’t informed of this when I placed the order by the way.  Measure twice, order once — I get it now.

Mr. Sullivan asked me if I could come by later last Monday to sign off on the paperwork, and when I didn’t hear from him, I called on Tuesday.  Guess what — they were closed due to the Nor’easter we were experiencing.  I called on Wednesday, same story.  I have my contractor coming on Saturday, and I’m not sure if I’ll have the doors and other items needed to repair this old dog of a house.

When is it my turn to be the customer, and expect that the company I’m “special ordering” items from, might call me back before the storm hits?  Will they be there on Saturday when I have a contractor who can’t do the work needed due to the undelivered items brought on by a storm?  I think not.

Ask Ellen Rohr – Should you drop prices if you are just starting out?

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For today’s blog let’s open the Mail Bag!  I get lots of emails from folks trying to clean up an accounting mess, solve a business challenge or just make more money.  Sound familiar?  Read on!

Dear Ellen,

I’m new to business.  Is it a good idea to offer a lower price than the ‘going rate’ when first starting out, to attract new customers?

Sincerely,

The Newbie

Dear Newbie,

Yikes!  You just can’t compete on price.  Forget it!  There will always be someone who will charge less than you, even if they have to PAY to do the job.  And, the market is much less price-sensitive than you think it is. Can you believe $50,000 for a watch?  $3.00 for a bottle of water?   Hundreds of dollars for Lady GaGa tickets?  Consumers will buy just about anything, if they can see the value or benefit.

Here’s a sure-fire, make-your-dreams-come-true formula for making money in your business…

• First, how much money you want to make?

  How much money will it take to make all the headaches of small business ownership worth it?  $40,000 per year?  $100,000?  $750,000?  Pick a number.

• How many hours can you sell in a year?

  Suppose you sell 4 billable hours a day, 5 days a week, for 50 weeks in a year.   4 * 5 * 50 = 1000 billable hours a year.

• Then, crunch the numbers.

  If you want to make $100,000, it will take $100 per hour just to cover your salary.  Add to that all the other costs of doing business.  Inflate for profit.  Voila’!  You have a selling price that makes sense and makes money.

• Learn to market yourself…and eliminate price competition forever.

  The market doesn’t set prices…marketers do!  What makes you special?  Look at what the low-price providers may sacrifice.  To charge more, you must be different and better.  Try “clean, sober, on time and dressed right.”

• Keep a sharp eye on the money…and your time!

  Track every penny in and out of your company.  Run a balance sheet and income statement…every week!  Measure the difference between what you thought you would sell and spend (budgeted) and what you actually sold and spent.|

  Most folks look to their competition, and base their selling price on what the other guys are charging.  If most businesses fail – and they do – what makes you think your competition knows all that much about making money.

  Crunch the numbers.

  Charge what you must!