Yes, I apologise I've been quite lately. So much has been happening. The business is still growing but with change. A new direction.
Over the past few months I've sat back and studied where I want to be in the future, what I want to do. How do I want to spend my days? To really do what I want to do I need to make changes now both in my personal life and in business. Free up some time and get some assistance where I need it most.
We all have a few week areas or areas we need a helping hand once in a while. I learnt early on in business to ask questions to people with anwsers and to have someone to toss things in the air with is great. I found a mentor for finance, a mentor for recruiting and now as I make changes again a mentor for guidance. I have not had all these mentors at the same time but I have asked for their mentoring help at times of need.
A mentor does not work in your business but is a sounding board to assist you with developing your business skills. You can take your mentors advise on board but the final decision is yours.
There are many places you can find a mentor. You may already know someone you wish to ask but if not ask at your local business enterprise centre as they have mentors who will guide you as you start your business or focus in new arenas.
From childhood I've had some wonderful mentors. Some of mentors have been relatives, some have been friends, they have been younger and older and some of my mentors have been indirect mentors. This group do not know how they influenced me or how I modelled my ways by watching them or listening to them. I thank all my mentors for the guidance they have given me, and the knowledge they have shared with me.
Quote 'You know, you do need mentors, but in the end, you really just need to believe in yourself' Diana Ross
Sunday, August 7, 2011
Friday, April 29, 2011
Help I need a Money Tree
Cash flow crisis hits most small businesses at sometime in its life. This time of the financial year money issues hits small businesses the most, but actions can be taken to assist with cash flow management.
1) Provide a customer the invoice immediately upon delivery of goods or services.
If you wait to prepare your invoices monthly than you may be adding as many as 30 extra days to your cash flow conversion. The goods have gone, the service actioned but you have not been paid. Who is fitting that bill?
2) Offer customers a discount for paying on the day they receive the goods or service.
3) If your service is going to take some time, request a work in progress payment where the customer pays a certain percentage of the total invoice up front before the job begins. You do not want to be out of pocket for expenses.
4) Track your past due accounts and actively call customers to collect overdue payments. Set up a system to send out statements and letters to the customers explaining the steps that will be taken if the account remains unpaid. This may include percentage penalties or transfer to a collection agency.
It is important to monitor your cash flow and shorten the flow conversion so you can bring money into the business quicker. A cash flow gap occurs when the cash flowing into your business doesn’t keep up with the cash flowing out. We all know that cash can flow out of the business quickly with all sorts of expenses from materials to permits and wages.
Quote: “The best things in life are free but you can tell me 'bout the birds and bees. Now gimme money”—The Beatles
1) Provide a customer the invoice immediately upon delivery of goods or services.
If you wait to prepare your invoices monthly than you may be adding as many as 30 extra days to your cash flow conversion. The goods have gone, the service actioned but you have not been paid. Who is fitting that bill?
2) Offer customers a discount for paying on the day they receive the goods or service.
3) If your service is going to take some time, request a work in progress payment where the customer pays a certain percentage of the total invoice up front before the job begins. You do not want to be out of pocket for expenses.
4) Track your past due accounts and actively call customers to collect overdue payments. Set up a system to send out statements and letters to the customers explaining the steps that will be taken if the account remains unpaid. This may include percentage penalties or transfer to a collection agency.
It is important to monitor your cash flow and shorten the flow conversion so you can bring money into the business quicker. A cash flow gap occurs when the cash flowing into your business doesn’t keep up with the cash flowing out. We all know that cash can flow out of the business quickly with all sorts of expenses from materials to permits and wages.
Quote: “The best things in life are free but you can tell me 'bout the birds and bees. Now gimme money”—The Beatles
Monday, April 18, 2011
Crunching out the numbers, the cost of the campaign and customer.
We all have our preferred way of building up our businesses with new clients/customers, and as much as we want free business as much as possible, there is a cost involved with lead generation.
In my industry the best way to grow your business is via referrals but this will only build the business to a certain point. Marketing needs to take place to promote and call in new business. But at what cost? How much does each customer cost? Do you know?
Purchasing Customers – which one would you like?
All the customers have different price tags as all have come to you via a different method, maybe flyers, radio or local paper.
But how much did your campaign cost?
The best way to work out your cost is to look first at your static costs, these are the costs that stay the same, they consist of the expenses accumulated with doing a quote.
For example:
Brochure: $0.40
Petrol for quote: $2.50
Quoter/Staff: $20.00
Static Cost $22.90
Next look at the lead generation cost, this is the total expense for a particular marketing campaign.
In this example we are placing an advertisement in the local paper for $350.
Lets say we had 10 quotes from the campaign with 7 new customers.
Our price per customer is:
Static cost x #of quotes + lead generation costs/new customers
Our example brings this to:
$22.90 x 10 = $229 +$350 = $579/7 =$82.70
Our new customer has cost: $82.70 this is the purchase price per customer.
In the repeat business industry like I’m in, we can than work out the breakeven time frames by dividing the purchase price per customer by the average clean profit.
For an example lets base this on a $25 profit per clean. In this case if the customer was a fortnightly customer it will take 6 weeks until you hit break even timeframe. (3 cleans)
$82.70 / $25 = $3.3
Always monitor your campaigns, know your numbers and recognise what needs to change to bring the numbers down. This could be the marketing method, conversion rates or static costs.
Quote: ‘Make measurable progress in reasonable time. ‘ by Jim Rohn
In my industry the best way to grow your business is via referrals but this will only build the business to a certain point. Marketing needs to take place to promote and call in new business. But at what cost? How much does each customer cost? Do you know?
Purchasing Customers – which one would you like?
All the customers have different price tags as all have come to you via a different method, maybe flyers, radio or local paper.
But how much did your campaign cost?
The best way to work out your cost is to look first at your static costs, these are the costs that stay the same, they consist of the expenses accumulated with doing a quote.
For example:
Brochure: $0.40
Petrol for quote: $2.50
Quoter/Staff: $20.00
Static Cost $22.90
Next look at the lead generation cost, this is the total expense for a particular marketing campaign.
In this example we are placing an advertisement in the local paper for $350.
Lets say we had 10 quotes from the campaign with 7 new customers.
Our price per customer is:
Static cost x #of quotes + lead generation costs/new customers
Our example brings this to:
$22.90 x 10 = $229 +$350 = $579/7 =$82.70
Our new customer has cost: $82.70 this is the purchase price per customer.
In the repeat business industry like I’m in, we can than work out the breakeven time frames by dividing the purchase price per customer by the average clean profit.
For an example lets base this on a $25 profit per clean. In this case if the customer was a fortnightly customer it will take 6 weeks until you hit break even timeframe. (3 cleans)
$82.70 / $25 = $3.3
Always monitor your campaigns, know your numbers and recognise what needs to change to bring the numbers down. This could be the marketing method, conversion rates or static costs.
Quote: ‘Make measurable progress in reasonable time. ‘ by Jim Rohn
Sunday, April 10, 2011
Thinking Positive
There are days when I feel so close yet so far as I grow my business.
On these days when I listen to my inner voice, am I listening to the correct little voice.
We all have inner voices guiding us with our daily lives, the little invisible friend who is whispering in our ear. Some of our self talk is uplifting but sometimes it is the ‘Little Voice’ that holds us back. It is negative.
It is time for me to take control of my inner voice, refocus and continue to grow my business in this changing environment.
This week has been about focus. Realigning the goals and putting affirmations into place that can be repeated when doubt sets in. I’m pushing away the little negative voice and making room for the positive invisible friend.
In some cases a negative inner voice is actually a vocalization of low self-esteem. You may have received some negative feedback or economy is not working in your favour and your inner voice starts putting negative thoughts into your brain. It is possible to take back the reigns and continue stepping forward towards your goals.
Think positively: Think of the good services you provide and the positive feedback.
Realign the goals: You may need to realign the goals and change the deadlines but by looking back at your future goals you can put the plan back in place to move on and grow.
Acceptance: Accept that there will be setbacks, failures, mistakes and shortcomings than use these to learn from and move forward.
Support team: Speak to your mentors and support team, accept their listening ears and weigh up their advice, as this is your business.
Quote: ‘“A human being's first responsibility is to shake hands with himself.” Henry Winkler
On these days when I listen to my inner voice, am I listening to the correct little voice.
We all have inner voices guiding us with our daily lives, the little invisible friend who is whispering in our ear. Some of our self talk is uplifting but sometimes it is the ‘Little Voice’ that holds us back. It is negative.
It is time for me to take control of my inner voice, refocus and continue to grow my business in this changing environment.
This week has been about focus. Realigning the goals and putting affirmations into place that can be repeated when doubt sets in. I’m pushing away the little negative voice and making room for the positive invisible friend.
In some cases a negative inner voice is actually a vocalization of low self-esteem. You may have received some negative feedback or economy is not working in your favour and your inner voice starts putting negative thoughts into your brain. It is possible to take back the reigns and continue stepping forward towards your goals.
Think positively: Think of the good services you provide and the positive feedback.
Realign the goals: You may need to realign the goals and change the deadlines but by looking back at your future goals you can put the plan back in place to move on and grow.
Acceptance: Accept that there will be setbacks, failures, mistakes and shortcomings than use these to learn from and move forward.
Support team: Speak to your mentors and support team, accept their listening ears and weigh up their advice, as this is your business.
Quote: ‘“A human being's first responsibility is to shake hands with himself.” Henry Winkler
Sunday, March 27, 2011
Plan Your Day
To get the most out of your day it is important to plan your day. I like to plan the night before as with a cleaning business I’m often out in the field in the morning, however if you prefer you can plan at the start of your day before you doing anything else.
If you start your day with distractions such as blogs, emails, newspapers on-line you could be setting up your day to have one distraction after the other. There will often be an email you want to respond to immediately, and of course you need to get to the emails, blogs, papers etc but with these written into your daily plan you will.
Create lists:
- A master list with all the jobs you need to get round to doing, these do not need to be worked on immediately but if on the list they will get actioned. Add to this list any new jobs or tasks you think of throughout the day. This is like a brain storming exercise, a tick list to work through over time. Some of these jobs you’ll do, some you may delegate.
I personally keep my master list on a white board in the office it is great to see the tasks get crossed out.
- A must do list with all the tasks and jobs you must get round to doing today.
- A should do list with all the tasks that are not crucial to do but should be done throughout the day at sometime.
You will most likely have a diary or calendar you work from, which tracks your appointments. Between these appointments place in time to action your must do list with the jobs in priority, also block out time for emails, blogs etc and don’t forget to block out your meal times. Your health is important take the break to recharge, rethink and refresh.
“He who fails to plan, plans to fail” Proverb
If you start your day with distractions such as blogs, emails, newspapers on-line you could be setting up your day to have one distraction after the other. There will often be an email you want to respond to immediately, and of course you need to get to the emails, blogs, papers etc but with these written into your daily plan you will.
Create lists:
- A master list with all the jobs you need to get round to doing, these do not need to be worked on immediately but if on the list they will get actioned. Add to this list any new jobs or tasks you think of throughout the day. This is like a brain storming exercise, a tick list to work through over time. Some of these jobs you’ll do, some you may delegate.
I personally keep my master list on a white board in the office it is great to see the tasks get crossed out.
- A must do list with all the tasks and jobs you must get round to doing today.
- A should do list with all the tasks that are not crucial to do but should be done throughout the day at sometime.
You will most likely have a diary or calendar you work from, which tracks your appointments. Between these appointments place in time to action your must do list with the jobs in priority, also block out time for emails, blogs etc and don’t forget to block out your meal times. Your health is important take the break to recharge, rethink and refresh.
“He who fails to plan, plans to fail” Proverb
Friday, March 11, 2011
The First 30 Seconds.
It only takes 30 seconds to form an opinion on someone or something. Although you may say nothing, your sub-conscious will be working for you and sending you a message. This is only human, your customer is thinking the same way.
You need to impress in 30 seconds to get the business. This is the 30 second interview and will set up how you deal with this customer throughout your business relationship.
Say Hello, Good Morning, - do not ignore and don’t chat on a personal call thinking the customer will wait. They don’t always wait and may not return.
Be neat and tidy, dress according to your business and if you have a uniform wear it proudly it represents your business and YOU.
Answer phone calls promptly and politely. Speak clearly into the phone. If you can’t give the caller 100% than leave the call go to message bank and call back. If you need to place on hold ask first.
If you have a junior, trainee or partner with you introduce them immediately. If your business is in services and you are visiting the customers home, ask them if they mind if the person with you joins you as you walk through the home.
If you have a business card, have it ready to give the person on introduction.
The best way to make an impression is to practice. You need to answer a few questions in your first 30 seconds. 1) Who are you?, 2) What do you do?, 3) Why do I need to know you? 4) What will make me remember you?
In my industry I’ve often spoken to the person on the phone and set up an appointment. On the phone I’d have answered with the business name, followed by my name. I’d have listened to the request and booked an appointment.
At the appointment I’d introduce myself.
Hi I’m Angie Emde from cleaning Services (While handing my business card).
Shall we take a look through your home so I can give you a tailored cleaning quote.
I should point out that all our staff are fully trained, insured and security screened. (point to folder). As you can see we wear uniform. We also bring all our own equipment and chemicals with clean clothes and mops in each job, however if you have a preferred chemical just let me know…..
At the end of your meeting make a point of letting the customer know when you’ll follow up.
You need to impress in 30 seconds to get the business. This is the 30 second interview and will set up how you deal with this customer throughout your business relationship.
Say Hello, Good Morning, - do not ignore and don’t chat on a personal call thinking the customer will wait. They don’t always wait and may not return.
Be neat and tidy, dress according to your business and if you have a uniform wear it proudly it represents your business and YOU.
Answer phone calls promptly and politely. Speak clearly into the phone. If you can’t give the caller 100% than leave the call go to message bank and call back. If you need to place on hold ask first.
If you have a junior, trainee or partner with you introduce them immediately. If your business is in services and you are visiting the customers home, ask them if they mind if the person with you joins you as you walk through the home.
If you have a business card, have it ready to give the person on introduction.
The best way to make an impression is to practice. You need to answer a few questions in your first 30 seconds. 1) Who are you?, 2) What do you do?, 3) Why do I need to know you? 4) What will make me remember you?
In my industry I’ve often spoken to the person on the phone and set up an appointment. On the phone I’d have answered with the business name, followed by my name. I’d have listened to the request and booked an appointment.
At the appointment I’d introduce myself.
Hi I’m Angie Emde from cleaning Services (While handing my business card).
Shall we take a look through your home so I can give you a tailored cleaning quote.
I should point out that all our staff are fully trained, insured and security screened. (point to folder). As you can see we wear uniform. We also bring all our own equipment and chemicals with clean clothes and mops in each job, however if you have a preferred chemical just let me know…..
At the end of your meeting make a point of letting the customer know when you’ll follow up.
Sunday, February 6, 2011
Controlling Your Business Image
Nearly every business today decides on a logo and colour scheme for use in their promotional material. This is the image for your business and someone needs to ensure that it is the same image used throughout the business.
- business cards
- Signs
- Letter heads
- Brochures
- Uniforms
- etc......
As your business grows and more hands help out the image begins to change, details and names change, someone needs to take control of your business image as you want people to see your image and know your name.
Make sure the the logo you use is the same format each time you use it.
Make sure the colours are consistent.
Make sure the same font is used each time.
Make sue the address,telephone number etc are consistent in each advertisement.
Keep copies of all your promotional material and advertisements to form a historical library.
- business cards
- Signs
- Letter heads
- Brochures
- Uniforms
- etc......
As your business grows and more hands help out the image begins to change, details and names change, someone needs to take control of your business image as you want people to see your image and know your name.
Make sure the the logo you use is the same format each time you use it.
Make sure the colours are consistent.
Make sure the same font is used each time.
Make sue the address,telephone number etc are consistent in each advertisement.
Keep copies of all your promotional material and advertisements to form a historical library.
Friday, January 14, 2011
Dealing with Customer Complaints.
You should feel blessed if a customer calls to complain and deal with the complaint as quickly and efficiently as possible. A customer who takes the time to complain is a true customer. They have been happy with your service but need something rectified. This customer is not spreading negative comments about your business and you need to secure customer satisfaction as quickly as possible.
I work with staff and sub contractors and I recently had a call re the standard of work of one of the sub contractors. I offered to send the sub contractor back to the job, however this was declined. I offered to go out myself to the customer, however this to was declined. I than agreed to go myself the next time the customer needed our assistance. The customer was happy with this as the job was not badly completed, just not up to the normal company standard.
When a customer complains you need to solve the problem as quick as possible, this could be completing the service again free of charge, giving money back or providing a discounted service. Where possible I always offer to go and fix up the reason for the complaint. In a service industry this is repeating the particular job.
Sometimes a customer is just not happy and complaining in order to get a discount. These customers are dishonest customers and whatever you do or offer to do will not change the fact they want a free or discounted service. If I've a customer who does not accept a repeat free service than I work to the rule that "The customer is always right... once." and I give them the discounted service and walk away. No repeat business.
The reason for the complaint also needs to be looked at. In my case, the worker is a good worker and I chose to give feedback to the worker and re-train.
"A man would do nothing if he waited until he could do it so well that no one could find fault." ~John Henry Newman
I work with staff and sub contractors and I recently had a call re the standard of work of one of the sub contractors. I offered to send the sub contractor back to the job, however this was declined. I offered to go out myself to the customer, however this to was declined. I than agreed to go myself the next time the customer needed our assistance. The customer was happy with this as the job was not badly completed, just not up to the normal company standard.
When a customer complains you need to solve the problem as quick as possible, this could be completing the service again free of charge, giving money back or providing a discounted service. Where possible I always offer to go and fix up the reason for the complaint. In a service industry this is repeating the particular job.
Sometimes a customer is just not happy and complaining in order to get a discount. These customers are dishonest customers and whatever you do or offer to do will not change the fact they want a free or discounted service. If I've a customer who does not accept a repeat free service than I work to the rule that "The customer is always right... once." and I give them the discounted service and walk away. No repeat business.
The reason for the complaint also needs to be looked at. In my case, the worker is a good worker and I chose to give feedback to the worker and re-train.
"A man would do nothing if he waited until he could do it so well that no one could find fault." ~John Henry Newman
Friday, January 7, 2011
Ask for the sale
A big mistake is not asking for the sale, closing the deal, booking the appointment.
We can go through the process, the quote, giving up our time and taking up theirs but if we do not ask for their business......was it worth it. Your potential customer may stay just that a potential customer.
Asking for the business is not pushy, it is merely assisting with a decision. Asking needs to be done in a positive way to be sold, if asked in a negative manner, the business is lost.
Recently I made that error and said "although we are more expensive than others we do have insurance, ......." Naturally this potential customer is shopping around.
To ask for the sale I should have said "all our staff are fully insured, bring along their own equipment and are security screened. We have a Tuesday or Wednesday available which day suits you?"
Be prepared to book the appointment, ask for the sale.
We can go through the process, the quote, giving up our time and taking up theirs but if we do not ask for their business......was it worth it. Your potential customer may stay just that a potential customer.
Asking for the business is not pushy, it is merely assisting with a decision. Asking needs to be done in a positive way to be sold, if asked in a negative manner, the business is lost.
Recently I made that error and said "although we are more expensive than others we do have insurance, ......." Naturally this potential customer is shopping around.
To ask for the sale I should have said "all our staff are fully insured, bring along their own equipment and are security screened. We have a Tuesday or Wednesday available which day suits you?"
Be prepared to book the appointment, ask for the sale.
Monday, January 3, 2011
Customer Service
You would not have a business without your customers and customer service is the liveblood of any business. You need not only provide excellent customer serivce to your customers that keeps them coming back, but you also need to know the customer is happy with your services and willing to refer you to others.
Great customer service is not hard, there are only a few step to follow.
1. Communicate
I like to personally meet with my customers from time to time face to face. The customer feels more assured that you are looking after them when they've met you in person.
Leave short notes for changes in the schedule and email or text the note if this is what the customer prefers.
Write a newsletter once in a while and give updates to all your cusotmers of any changes.
Respond to Messages Promptly & Keep Your Clients Informed
2. Be Friendly and Approachable
Believe it or not you can hear a smile through the phone. It's very important to be friendly, courteous and to make your clients feel like you're their friend and you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object - it happens to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite and courteous.
3. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out
Sometimes this is easier said than done! However, achieving this supreme level of understanding with your customers will do wonders for your working relationship. If you notice your customer needs the windows cleaned promote a local window cleaner. I once pointed out to the customer that their oven should be cleaned at least twice a year. This is now and additional service to the cleaning schedule.
4. Don't make promises unless you will keep them.
Reliability is one of the keys to any good relationship, and good customer service is no exception. If you say, “You wipe the celing fans when cleaning' ensure you do wipe the fans when cleaning.
The simple message: when you promise something, deliver.
"You will be judged by what you do, not what you say."
5. Deal with complaints.
No one likes hearing complaints, and many of us have developed a reflex shrug, saying, "You can't please all the people all the time". Maybe not, but if you give the complaint your attention, you may be able to please this one person this one time - and position your business to reap the benefits of good customer service.
6. Train your staff (if you have any) to be always helpful, courteous, and knowledgeable.
Do it yourself or hire someone to train them. Talk to them about good customer service and what it is (and isn't) regularly. Most importantly, give every member of your staff enough information and power to make those small customer-pleasing decisions, so he never has to say, "I don't know, but so-and-so will...
7. Take the extra step.
If a customer asks you to assist with something that is not normally part of your routine, don't turn your back, do the extra, you'll be greatly appreciated.
8. Throw in something extra.
Peolpe love to get more than what they thought they were getting, throw in the extra, a coupon, a tip or an additional task.
Customer service, like any aspect of business, is a practiced art that takes time and effort to master. All you need to do to achieve this is to stop and switch roles with the customer. What would you want from your business if you were in your customers shoes? How would you want to be treated?
Treat your customers like you would like to be treated and they'll always come back.
Great customer service is not hard, there are only a few step to follow.
1. Communicate
I like to personally meet with my customers from time to time face to face. The customer feels more assured that you are looking after them when they've met you in person.
Leave short notes for changes in the schedule and email or text the note if this is what the customer prefers.
Write a newsletter once in a while and give updates to all your cusotmers of any changes.
Respond to Messages Promptly & Keep Your Clients Informed
2. Be Friendly and Approachable
Believe it or not you can hear a smile through the phone. It's very important to be friendly, courteous and to make your clients feel like you're their friend and you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object - it happens to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite and courteous.
3. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out
Sometimes this is easier said than done! However, achieving this supreme level of understanding with your customers will do wonders for your working relationship. If you notice your customer needs the windows cleaned promote a local window cleaner. I once pointed out to the customer that their oven should be cleaned at least twice a year. This is now and additional service to the cleaning schedule.
4. Don't make promises unless you will keep them.
Reliability is one of the keys to any good relationship, and good customer service is no exception. If you say, “You wipe the celing fans when cleaning' ensure you do wipe the fans when cleaning.
The simple message: when you promise something, deliver.
"You will be judged by what you do, not what you say."
5. Deal with complaints.
No one likes hearing complaints, and many of us have developed a reflex shrug, saying, "You can't please all the people all the time". Maybe not, but if you give the complaint your attention, you may be able to please this one person this one time - and position your business to reap the benefits of good customer service.
6. Train your staff (if you have any) to be always helpful, courteous, and knowledgeable.
Do it yourself or hire someone to train them. Talk to them about good customer service and what it is (and isn't) regularly. Most importantly, give every member of your staff enough information and power to make those small customer-pleasing decisions, so he never has to say, "I don't know, but so-and-so will...
7. Take the extra step.
If a customer asks you to assist with something that is not normally part of your routine, don't turn your back, do the extra, you'll be greatly appreciated.
8. Throw in something extra.
Peolpe love to get more than what they thought they were getting, throw in the extra, a coupon, a tip or an additional task.
Customer service, like any aspect of business, is a practiced art that takes time and effort to master. All you need to do to achieve this is to stop and switch roles with the customer. What would you want from your business if you were in your customers shoes? How would you want to be treated?
Treat your customers like you would like to be treated and they'll always come back.
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