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Hungry Like A WolfMonday 06/04/2012
DwayneDwayne Briscoe / Bookkeeping-Results, LLC
Owner / QuickBook Pro Advisor

888-692-2083 / 713-898-1648

www.bookkeeping-results.com
Hungry Like A Wolf

 

With the economy improving over the past several months, many business owners are trying to “make up for lost time” and they’re not realizing that as the old adage goes, slow and steady wins the race.  When times were tough and people were very careful about how and where to spend their money, it doesn’t mean that you need to change those habits in order to handle this new influx of customers wanting to spend money again.  Things have changed dramatically and people aren’t necessarily going to unlearn their spending habits that they developed but will likely hone in on their cost-saving decisions when it comes to spending money again.

 

What can you do to combat this attitude but still continue growing your business?

 

1.            Time and time again, your best customers are your existing customers.  It’s so much more financially feasible to work with a loyal customer versus getting a new customer.  That doesn’t mean though that you can’t avoid new getting new business.  Continue working with your current client base because they are the ones who stuck with you through the tough times and you have a stronger fan base for your product and/or services.  Whether it’s offering long-term rewards, special savings or secret sales, treat them like you would want to be treated.

 

2.            Don’t go on a spending spree with your new influx of cash.  Ideally in a perfect world, businesses should have a 6-month reserve of cash for when the tough times hit again, just like you should for your personal reserves.  Whether you needed to borrow money from family/friends, or go out and get a loan from a financial lender, re-evaluate what you’re trying to accomplish and how you are going to get yourself out of that financial abyss and actually work towards setting aside money again.

 

3.            Look at how your expenses, not your income, have been over the past year comparing it to the current time frame.  If your average monthly cost of staying open without any income was $25,000.00, can you still potentially get by with that amount or stay as close to it as possible?  It doesn’t mean that because you took a pay cut during that time it’s time to give yourself a huge raise.  Again it’s about longevity, and if you don’t have that control over your expenses like you did in the past, then you could be caught with your pants down again and may not be able to survive through another tough economy.

 

4.            When you have employees who have been with you through the tough times, yes everyone, including yourself, has been looking for an increase in pay to catch up from what they potentially gave up.  Get creative with paid time off or other types of rewards.  However above all else, sit them down and explain to them what your business plans are in order to continue your recovery period and set a target date to actually increase that pay again.  Just think that they’ll be without a raise for 3-4 years and still be a loyal part of your business.  This is an issue that can be not only a detriment but also a death knell for a business owner.

 

5.            Don’t consider lowering your prices to get a new customer who may or may not be a loyal long-term customer.  If you’ve set your prices to where you are not making money, you’re cutting your nose off to spite your face.  This happens more often than not because people feel that it’s necessary to get develop a new fan base.  Examples of how this has happened, is sites like GroupOn or Sweet Jack, offering discounts at a 50% minimum.  Yes everyone loves a great deal, however there’s no incentive to bring that customer back time and time again, which what your goal is as a business owner.

 

Yes it’s easy to be hungry like a wolf, but if you learn to look at the long-term grazing principle versus the short-term to feed your immediate needs, then you need to re-think your long-term business survival.

 

 

About Our Show Advisor: Dwayne Briscoe is the founder and owner of Bookkeeping-Results, LLC.   Dwayne began his company in January 2007, based on the foundation to educate small business owners and bookkeepers who use QuickBooks®.  Working as a full-charge bookkeeper and trainer in a variety of industries for over 15+ years, he is a certified Pro Advisor with 5 certifications, including Enterprise Solutions and Point of Sale.  He is also an instructor at Brazosport College in Lake Jackson, where he teaches basic accounting, QuickBooks®, and basic payroll, along with hosting his own private classes.

 

Bookkeeping-Results, LLC has focused more on quality and not quantity for their clients, by paying attention to the details.  Through regular continuing education participation, as well as exploring additional ways of “thinking outside of the box” to help expand people’s knowledge of their own financial well being, it’s important to focus on not only saving the client money but also making the client money.

Previously broadcast from:
SKL @ BlogTalkRadio.com 11/07/2011 - 01/03/2014
CBS Radio's Talk 650 10/12/2009 - 07/01/2011
CNN 650 Radio News 11/08/2006 - 10/08/2009
KSEV AM700 04/04/2005 - 10/30/2006

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