26 Aug

Small Business and the Baby Boomer Generation

We are small business owners from the Baby Boomer Generation.  We aren’t as young as we used to be.  The oldest among us is about 71, the youngest is about 51.  We’ve worked hard running our businesses while raising a family, accumulating things and if we were successful, making money. 

So now what? 

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16 Jul

Your Small Business Model Doesn’t Have to be Complicated

 

One of my favorite expressions I hear from small business owners is, “That doesn’t fit my business model.”  I have sometimes followed up when hearing that and asking simply, “What is your business model?”  Usually, I am told a lot of “stuff” about demand, processes, partners and things that really aren’t overwhelmingly important.  In other words, a lot of stuff that adds little value to the small business owner.  Most often because somewhere, somehow, someone has made this all very complicated.

Your business model should be simple.  It should be a quick snapshot of what your business is and how it operates.  Like the overused metaphor of layers of the onion, the model can be as multi-layered as you want.  Layer upon layer of stuff that has value to some and to others is gobbledygook.

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19 Jul

The Value of Goodwill to Your Small Business

 

Is Business Goodwill something a small business owner should be concerned with?  I would say, without hesitation, absolutely yes.  Not only does it add to the value of your business but if used appropriately, it becomes part of a tool to manage your business.

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24 Oct

Small Business is TOUGH…How you are structured makes it easier.

 

 

Successful SB Owner

 

 

What is Small Business in America? By some definition it is companies of less than 100 employees. By others it is less than 500 employees. Some include home based businesses, some do not. For simplicity we will focus on companies of less than 100 employees and exclude home based business.

There are 8.1 Million Small Businesses in America today. They employ over half of all private sector workers and almost 40% of those in High Tech jobs (approximately 130 million workers). They provide between 60% and 80% of all net new jobs annually. They produce more than half of all nonfarm private gross domestic profit in the US (roughly $6 Trillion). Small Business is important.

Pretty impressive stuff. They also account for over 52% of all retail sales, over 46% of all wholesale sales and almost 25% of all manufacturing sales. The average annual gross revenue of a small business is $3.6M. Small Business is profitable.

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10 Aug

Customer Retention Can Make or Break Your Business

 

You put a lot of time and effort into acquiring your customers or clients.  You developed a product or service, you identified ways of getting it in front of those who would potentially buy it.  Your hard work and efforts paid off; you sold your goods or services.

As time goes along you increase your sale. You develop new customers and new markets for what you have to offer. As a result of your success, you broaden your offerings with new products and new services.  You feel good about what you have done.

At the end of a month, you look at your business, preparing for the next month.  You notice that your Gross Sales are down.  You walk over to your head of sales and ask why.  Your Sales Manager explains that they are selling a lot, so you begin to dig deeper.  Your next stop is your Manager for Customer Service and Retention.  They inform you that they are on target for upselling value added parts to the products and services that are being sold.   Knowing that you haven’t answered the problem, you go back to your office and dig some more.  As you review your sales you notice something.  You aren’t getting enough repeat business.

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