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The Donald Cooper September Business Newsletter

Volume 5,  Issue 8 - September 2006

1.  If you think running a business today is tougher than ever before, you're only half right.   

(time to read this article is about 90 seconds)

Printable version. 

Many of my clients complain that running any business today is so much tougher than in the past…and they’re half right.  When it comes to having more demanding customers, more and stronger competition and shrinking margins, business is definitely tougher.

But, in terms of having inexpensive and readily available technology that allows you to…

a)	track sales and margins by item or department, on a daily or weekly basis,
b)	control costs in every part of your operation,
c)	manage inventories,
d)	know, serve and communicate with customers as individuals,
e)	expand your markets through the internet,
f)	measure staff productivity...and,
g)	generate accurate financial statements instantly,

…running a business today is 10 times easier than it ever was.
 

Now, here’s the harsh reality.  If you’re not prepared to embrace and benefit from all the ways that running a business is now easier, the ways that it’s now more difficult will eat you up!  So, here’s the simple but tough question, “How successfully are you using all of the tools and technologies now available to control costs, proactively serve your customers, make better and faster decisions, expand your business, grow your bottom line…and have time to have a life?”

As Canada’s leading manufacturer of sports equipment back in the 1960’s and 70’s, our product range consisted of over 11,000 items.  Invoices were manually typed and then manually recapped onto 11,000 bin cards to record current and future orders, plan production and control inventory.  The bin cards were recapped from time to time to create hand written reports for analysis.  The information was late and the reports were inaccurate. As a result, we were frequently out of stock of key items and we turned our inventory fewer than three times a year. We were also flying blind when it came to product costing, scheduling and factory efficiency. And we call these the “good old days”!

So, stop complaining about how difficult it is to run a business these days. It’s a waste of time and energy. Instead, embrace the latest software, tools and technologies available to proactively manage your business, then get professional coaching in how to use it effectively …or just sell and get out before it’s too late!

2.  Are you asking the right questions when something goes wrong in your business?   

(time to read this article is about one minute)

So, except for the genuinely “bad apples” that you need to deal with, stop playing the “blame game” when something goes wrong.  Ask the right question and, through it, empower your staff to help you fix what needs fixing in the business. You’ll be amazed at the results!

3.  Birth Announcement...well, actually it's our new DVD Video Seminar!     

(time to read this article is about one minute)

The title is a bit long, but it sure covers all the bases.  If you’re committed to growing your business and your bottom line, this excellent Video Seminar and Implementation Guide are definitely for you.  A number of our clients, locally and around the world, have already pre-purchased this DVD for each person on their team.

Specifically, here are just a few of the hundreds of bottom-line insights and ideas that you’ll take away…

Item #1:    If you’re having trouble finding and keeping staff, apparently you’re not alone. The Canadian Federation of Independent Business estimates that there are currently 233,000 full time job vacancies in small businesses in Canada.  Whatever country you live in, I bet the situation isn’t all that different. 

So, it’s time for every business to start asking the two simple questions that I’ve been preaching for years now…

a)	What kind of business do the best people in our industry or labour market want to work for?
b)	What must we do to become that kind of business?

Remember, the best people have to work for somebody…why not for you?  But first, you have to deserve them!


Item #2:   A recent Canadian survey shows that while 29% of Canadian children are obese, only 9% of parents think that their children are obese.   Denial ain’t just a river in Egypt!   In both our business and our personal lives, we can’t fix what we’re not willing to see.

Item #3:   Why are high gasoline prices hurting the automotive industry so badly? Because many new car buyers are buying fuel-efficient compacts rather than big SUV’s. And here’s the bottom line impact of that shift… 

a)	The average profit for an automaker on a large SUV is $12,250.
b)	The average profit on a compact car is just $1,100.

Do you have a good handle on what’s making you money in your business…and what’s not?  And how could your bottom line be altered drastically, one way or the other, by changing your sales mix?


Item #4:  The USA trade deficit for July was a record $68 billion.  Simply put, this means that America imported $68 billion more in products and services than they exported.  How does a nation pay out so much more than they take in every month?  They go further into debt and they print more money, both of which devalue their currency.

Item #5:  Just like the word “service”, which is tired to the point of being meaningless, I’ve long thought that the word “training” has pretty much had its day. 

Well, apparently Jack Welch, the former CEO of GE agrees because, in a recent article in Business Week magazine, rather than talking about “training” Jack talks about the importance of “continuous learning”.

I think that people are much more open to “learning” than to being trained. Think about it. People learn…seals are trained!  Would the phrase “continuous learning” be useful in your business?  

6.  Simple marketing tips from a goofy caterer, a huge retailer and a shy florist! 

(time to read this article is about one minute)

8.  What are the "unforgivables" in your business...and do you have them covered?    

(time to read this section is about 2 minutes)

In just about every business there are certain things for which your customers, and perhaps the media, simply will not forgive you…and you’d better have them covered. 
 
I first learned this as a teenager working at a summer camp where I was the riding instructor and my brother taught water skiing.  What I discovered was that if a child slipped off a horse and broke their arm, it was regrettable…but no big deal.  They got driven into town, had a cast put on their arm…and back at camp everyone signed their cast.  They were practically a celebrity!

But if a child drowned at the waterfront, every parent would show up the next day to pull their kid out of camp.  A child drowning is unforgivable!  So, they had swim tests for every kid before they could participate in any waterfront activity.  Every waterfront staff person had to have their Royal Lifesaving Certificate. They used the buddy system in the swim area with buddy checks every five minutes and waterfront staff huddled every day to review safety procedures.  In other words, they had the waterfront “covered”.

In the meantime, up at the stable, it was just me, 12 kids each hour and a string of reluctant horses.  

Here are a few other examples of “unforgivables”…

-	If you own a restaurant, cold food is forgivable…food poisoning is unforgivable.
-	If you’re an airline, a plane arriving late is forgivable…a plane crash is unforgivable.
-	In my opinion, a squeaky bed in an otherwise romantic hotel room is unforgivable.
-	If you’re a manufacturer or distributor, anything that makes your customers look bad to their   customers should be unforgivable.

So, clearly, anything that’s a life and death situation needs to be an “unforgivable” in your business.  Think about what they might be and make sure, like the camp that I worked at so long ago, that you have them covered through continuous learning, process and discipline.

But what about any action, inaction or failure to perform that might break your clear and compelling Brand promise?  What about anything that would erode a customer relationship or drive a customer into the arms of a competitor? While not life-threatening in the physical sense, shouldn’t they also be ”unforgivable” in your business?  What continuous learning, process and discipline would be required to make that happen?  Something to think about. 
 
 

9. That’s all for this month!

"Thanks" for all of your great feedback and suggestions!  We especially love to hear of your successes using our insights.