Big Mistake? Don't Make It!Today I had a conversation with a business owner, or I should say former owner.Her business went down considerably this past year. By first of September she knew the situation was simply too bad for her to keep going. She decided to start a business closing sale, with the need to be out of her location by the end of October.The sale which she did herself, just did not go well. She continued to cut prices, but the business closing sale did not create the cash or reduce the inventory as much as she had planned. When she closed her doors the amount of unsold inventory was a BIG problem.In other words she was still in money trouble. She packed it and put it in storage. Almost three months later she called for help with almost $80,000 at cost inventory!Could I help her find some one or a business to buy her inventory? I could as I have contacts to give her. but she should be aware of how they do their job. 1. They DO NOT pay full cost for inventory 2. If it is fashion or seasonal, the discount is greater. 3. She will need a complete inventory. The question she really wanted answered; "how much can I get?" My estimate, in these economic times, 10% of total inventory value at cost. IN DOLLARS perhaps $8,000 to maybe $10,000. The BIG MISTAKE--Trying to do a major sale without professional help! You know the old saying: "PENNY WISE AND POUND FOOLISH" This is an example of very poor decision making. If this is how she ran her business it is easy to understand why it was financially so unsuccessful. If you are facing quitting business talk to honest, reliable companies that will give you straight answers and professional help. Believe me THIS IS WORTH IT! If you have comments or questions email to Marcia@matsmallbusinessconsulting.com Marcia's Blog
Be Prepared For What You Don't ExpectAsset Markets are extremely complex! As a business your biggest asset [dollar investment] is your inventory.Be prepared for 2010 to be a difficult year. I think it is going to be a little better for some areas, but the soft spots and the pits are still in the economy. I think capital preservation is VERY important. This relates to your business inventory. Know your inventory, track it constantly, have a well laid out buying plan. Make adjustments to your buying plan during the year as sales or lack there of require. Go for the money MAKING all year.January 7 2010 THE MIND SET OF YOUR CUSTOMERSThis recession/depression is changing your customers values, their mind set along with their spending. A more cautious, anxious consumer is being seen as your customer now. Is this short term? Customers are re-evaluating their purchases. A client of mine with a golf shop shared this story. A long term customer came in with the intention of purchasing a new set of irons. After trying everything and much discussion he was very hesitant about the money. He decided to get a new wedge and new putter instead of the full set. How have your customers changed in the past year? How have their needs changed? Think long and hard about this. The way you answer could send you on a new product path and service for these value minded customers. Talk with your customers now to understand how their needs and buying out look has changed This is a good time to do a customer survey. If you need ideas about setting up a survey send me an e-mail or give me a call, we can talk about it. It can give you a competitive advantage.Trimming costs where you can is important. Renegotiate prices with suppliers , talk to your leasing company, work to get every cost advantage you can. Think of markets you could expand into within your business structure, new products. Remember a good product always sells. People are willing to pay for things that help them. I have no doubt gone on much too long. I am passionate about small business. I will be back with more soon. Marcia Thomson
Dec 24 2009 Time To Transform your Business Model And Make Money Doing It In a RecessionFor many business owners that are trying to find their way in the worst recession since the 1930’s the easy thing to do is just stay focused on this years’ numbers. Look for ways to lower costs and improve operations. Stick with the way you have been doing business and things will be OK. WRONG!WAKE UP! You need to face the reality of what is going on in the business climate. This recession is different in its wide scope and in its depth. Doing all the same things you have always done will let you continue for a time, but not for long. You have to consider making changes! There will be a lot of mixed messages coming at you. Changes everywhere, times of prosperity and times of downturns. You are going to wonder if you are on a roller coaster or a see-saw. Let’s bring some common sense to all this. First the media goes crazy during a recession. They turn negativity into an empire of pessimism. People become conditioned to expect the worst. Don’t buy into this hysteria, don’t you become one of their victims too. If you maintain rational thought and common sense you will see some amazing opportunities popping up all around you. Keep your eyes and ears and mind open. People get scared and start cutting back. This is what causes some business to not do well. Especially business that don’t provide items we need. We can live without some non essentials for awhile. OFFER and DELIVER REAL VALUEWe look for genuine value. It is our money and we want to be sure we are getting a fair deal.Consequently, businesses that provide genuine value actually do better in a recession. Put your time, energy and knowledge into the OFFER AND DELIVERING of real value. Find ways for your business to give people what they want and expect when they do business with you. Offering value means showing your unique business skills and expertise in a way that can be a potential benefit to your customers. Delivering value means that people are actually receiving this special value and benefit from this value you have created within your business. If you don’t do both, you will not have the sustainable income that you should expect from these efforts. Especially in a recession, but this is true during anytime in business. The most viable long term strategy is OFFER and DELIVER value. You should mix and match other ideas with it, but this should be your main method of your business remake strategy. Get good at finding different areas to expand these two core points. Be sure to get all your employees to become part of how you are making changes and why.We look for genuine value. It is our money and we want to be sure we are getting a fair deal.
THE RECESSION/DEPRESSION ECONOMYSometimes recessions help to weed out the companies with problems. They were doing a good job at one time, but they did not keep pace with what is going on now. As our values change, our companies need to adapt the ways that they are doing business. Businesses that can’t/won’t do that deserve to die off. To eventually be replaced by new companies that have a better grasp of people’s current needs and desires. Businesses that just don’t get it will be replaced by companies that do. That is a good thing. To prop up proven losers is to me a “dumb” thing to do.We need this form of self-correction to prevent bigger problems along the path to grow this economy. We need to send a message that if you fail to OFFER and DELIVER value people genuinely want, your business will ultimately fail, and political lobbying will not save you. Too many people think that the point is to chase dollars, especially many of our politicians. Becoming obsolete is a trap that CAN be avoided. You need to make sure you are contributing to OFFERING and DELIVERING REAL VALUE. Have A Great Story About This Topic?Do you have a great story or comment about this? Share it!
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