Economy-crunched small businesses, stampeding to reduce payroll, need first to pull back the bells and whistles.

S C A L E   I T   B A C K.

Ideas, Proposals, Recommendations, Products, Services

Stop to think about it: If YOU are having trouble affording employee costs, your CUSTOMERS may be having trouble affording your product and service “extras.” [Restaurants have been scaling back since 2008 by offering better quality in smaller portions on slightly smaller plates!]

Let’s say you’re a consultant, and know in your heart of hearts that a client organization you work with needs to develop three new levels of consumer goods and services to stay competitive, but you also know that their naive management has failed to get its arms around the budget stranglehold that White House pressure has put on them.

You can lay it all out for them , knowing they will never pay your fee, and go down with the ship . . . or chunk up your recommended action plan to address just one new level, leaving the other two to simmer until the first of these can produce enough revenues to cover the investment and your fee, setting the stage for a level two proposal.

It’s worth the reminder that, as my father was known to exclaim and as Giovanni Torriano was first credited with recording the phrase in his Second Alphabet in 1662, “You can’t get blood out of a stone.”  And while we’re on the subject of hard subjects and difficult feats, you may want to accept the inevitable and just agree to “bite the bullet.”

In other words, when you can see that your proposal carries with it the hand-wrenching anguish that forces your client to back away from the table, scale it back. What can be accomplished by eliminating the bells and whistles and still manage to develop a new first level that’s acceptable, that can be expected to perform adequately?

Does this put a burden on you? Of course. When you may have been thinking you could do a $15,000 fee project, you find yourself settling for a smaller $4,995 fee project. What’s the answer? Do it with a $15,000 fee attitude, and use the extra time to get out and sell another client or two on projects that total $10,000.

So, now what? You lose $5? Ah, but now you have three clients and can more safely hedge your bet. If you work at it you may also generate $45,000 total a short way down the road, instead of just the opening effort for $15,000.

You can do this. The point is that everyone in business has reached a point of struggle (or at least substantial concern). How much further can this go? Will we have to go belly up? How can we pay the bills? 

Bottom Line: WE HAVE TO RISE ABOVE THESE KINDS OF THOUGHTS AND FOCUS ON HOW TO GET INCREASED SALES NOW BY OFFERING DECREASED FRILLS.

Force yourself to take a good hard look at what you’re selling and to whom. Can it be streamlined and priced lower without losing value or impact or safety? Can the excess packaging be eliminated or relaced less expensively without risking damage? Can you use 2-day Priority Mail instead of more expensive overnight shipping? 

Can you make arrangements to package the cars you sell with a gas or routine servicing giftcard? Some lawyers are doing reduced price packaging of basic family and couple’s wills. Some chiropractors will do basic 2 for 1 adjustment visits. The travel and hospitality industries constantly offer discount incentives that strip away luxury cost extras.  

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Hal@Businessworks.US 302.933.0116 

 Open minds open doors

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“Spread out the tools,

then go for donuts!”

No, those eight words are not part of what construction guys can teach to small business owners. In fact, those eight words may account for the building industry employment transience we so often hear about.

No, I’m talking about seven (7) magic words!

Did you ever have a house built? (No not those seven words.) If you’ve ever had a house built and asked something dumb like “Gee, when do you guys put in the main water pipe and wire connections?” (“Oh yeah! Plumbing and electric? No problem; we can run those lines after the house is done; we’ll dig the yard up again and re-cement the concrete foundation we’ll have to break, along with maybe a wall or two, but don’t worry!”)

Did you ever have an addition put on your house? (“Uh, what cough, cough, dust is that, cough, cough, that you didn’t expect? I, cough, cough, don’t see any dust!”) Was your builder marching to his own drummer? (“Duh, what blueprints?”) Odds are the lesson you learned was to never do it again, right?

Well, let me tell you that there are two great lessons to be learned from construction guys that can make a life or death difference for small business owners. One, which comes from such an unlikely pair of experts as a carpenter and a heart surgeon — but which probably started with the carpenter since carpenters have been around a lot longer than heart surgeons:

Measure twice. Cut once.

This little 4-word gem of a mantra is the unspoken guideline for many successful small businesses. It’s one way of making sure there’s minimal or no waste of time, money or effort. It’s also expressed as “getting it done right the first time” (or “haste makes waste” as Granny used to say).

It’s the idea that we can actually help ensure maximum productivity with minimum expenses and liabilities. It’s all about making sure there are no rocks under the water we’re diving into. This little piece of reassurance can have untold value and appeal to a small business owner’s wallet and sense of well-being.

And what are the other three words of wisdom?

Chunk it up!

Whether you’re overwhelmed with a ten mile-long “to-do” list or a project with altogether too many parts, or you’re looking for a value-added way to entice customers by offering them a staggered payment plan, construction guys score again!

They don’t kill their customers with the whole monster total price to pay at once, they charge you what? One third up front (to cover the costs of materials), one-third half-way through the job (to cover salaries), and one-third on completion with satisfaction (to cover profits).

If they only get the first third up front, they’ll never wind up on the short end of a parts/supplies bill. If they get the second third halfway, they can only not make a profit, but will have paid for all materials and labor and put money through their bank. This approach works for nearly all business services and most large ticket item products.

The customer is happy to not commit all their money at once and will prefer a pay-as-you-go option to keep more control on the work that’s booked. 7 words: Measure Twice. Cut Once. Chunk it up!

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302.933.0116 Hal@BUSINESSWORKS.US

Thanks for visiting. Go for your goals! God Bless You!

Make today a GREAT day for someone!