I was recently asked to write a guest article on Metalworking Solutions, 2011 Chattanooga Area Chamber of Commerce Small Business of the Year. Please check out the article $300, A Wrecked 64 Ford and A Lot of Dreams. It’s a great American story.
It was a pleasure to write this article about one of our favorite customers.
By: Terry L. Massey
Shannon Brown’s, owner of JSB Holdings (Recent 2011 Chattanooga Area Chamber of Commerce Small Business Award Winner), brother is one of the five finalists for the Toyota’s Ideas for Good Challenge.
Stephen Brown is a finalist in the Solar Powered Ventilation System category and his idea is titled “Self Contained Mobile Water Purification Unit”. Below is Stephen’s explanation of the water purification unit:
“Every 20 seconds a child dies from water related disease and nearly 1 billion people lack access to clean drinking water. We don’t realize these facts because water is so cheap and available here in the United States. My idea to make the world a better place would be to use TOYOTA’S Solar Ventilation Technology to build self contained water purification systems for people who do not have access to this precious resource. The solar powered pump can circulate water through a filter while the UV exposure kills the bacteria in the water. The water could circulate through a purification sensor which can measure when it would be safe for drinking and other uses. ”
Voting is one of the six criteria that the “Gurus,” (you can read more about the “Gurus” on the web site), will use to determine the winner. You may VOTE ONCE A DAY, from today until April 30…please do! The winners will be announced May 9th.
The link to vote is: http://yourideasforgood.com/gallery?idea=2425
There are more than one Stephen in the finals so please make sure you are voting for Stephen B.
Feel free to spread the word to your friends and family to increase awareness. At the same time, you will learn about interesting ideas that could help make our world a better place.
By: Terry L. Massey
David C. Edelman, Partner at McKinsey & Company, says they are in his article written for The Harvard Business Review, Branding in the Digital Age: You’re Spending Your Money in All the Wrong Places. I agree with him.
I remember the old axiom taught in sales school “he who speaks first owns the product,” meaning “ask for the order and shut up.” The new axiom is quickly becoming “he who defines the solution owns the solution.” So, sales professional, business owner take heed. Learn to listen and flex, tailoring your products and services to the end game the customer is describing. But you say, “the customer doesn’t know what they want,” ever so true in many cases.
Edelman pointed out in his article that buyers will review a few items of interest, learn and as they learn their criteria shifts and they bring in additional brands/items/services to review. It’s my opinion that buyers do this relentlessly until that point they believe themselves competent enough to design their own solution whether it is choosing a smart phone, selecting office supplies or licensing software. Once they believe they know the solution then the true quest begins to find and acquire their solution. Notice I said their solution not your solution.
But you say, “they still don’t know what they are doing. They can’t become an expert in such a short time and design a solution looking forward that will accommodate their needs now and in the future.” While you may be correct, good luck on that one. Look at what you are saying you are going to have to do to be successful. First, you have to convince them that their research is invalid, not thorough, or at a minimum well intentioned but misguided. Second, you run the risk of insulting their intelligence and finally you have to persuade them that you and your products are the Utopia they didn’t even realize they needed.
Wouldn’t the better way be to listen and ask questions nurturing the prospect along, adding value to their solution building experience? Once they describe their solution, you can affirm them and be there to provide it and if appropriate demonstrate how doing business with you protects and enhances today’s decision going forward?
by: Terry L. Massey
So, what you do when the bank says “no” to your request for a loan or increased credit limits? Do you pack your bags and go home or do you go back and nurse the scrapes and bruises and take a long hard look at the business, hopefully the latter. Let’s explore a few ideas.
Increase Profitability – How certain are you that you’re not leaving money on the table? A company did a study and we found that 60% of their customers contributed 4% of their revenue. We began increasing the pricing to these customers thus increasing the company margin and have yet to lose one of them. Why? Because we found that what this company provides to these customers is very unique and we were pricing well under what the market would bear.
Don’t be afraid to increase pricing. Survey your competitor pricing, estimate the value that you provide over and above your cost and set your price appropriately. Consider setting minimum order pricing and volume order pricing if you haven’t already.
Restructure your discount schedule and payment terms. Reward good behavior such as long term contracts and being easy to serve (reward the customer for taking costs out of the process). Time your customer’s payments so that you are receiving payment as you incur cost. Focus on your collections. Why should you serve as a bank to your customer? Is a slowing paying customer truly worth it? You may find that your margins are taking significant hits when you factor in the cost of money on slow paying customers.
Focus on Your Best Customers – Look at the revenue per customer and calculate the margin contribution of each. Then analyze what % of your customer’s business are you getting? Are they using another vendor for similar products or service? How can you grow you business with that customer? A company found that one of their largest customers shied away from getting both equipment and supplies from them as they felt this would put them at a credit risk in case of a slow paying project. Once we understood the issue we were able to come up with credit limits by product lines that the customer buys, taking away their concern that we would freeze their ability to do business and now this customer has doubled their total business with the company.
Focus on Your Best Products/Services – Do you really know what products and services are providing the greatest contribution to your business? Have you looked at cross selling possibilities? Once you have identified your best contributors and movers take a look at the rest of the inventory and identify the things that aren’t moving. I am amazed at the items in warehouses that have been around more than two years. If it hasn’t sold in two years at your current price why do you think it is going to in the future? Liquidate these inventories, gain the additional warehouse space, not to mention cash and buy items that will move and contribute to the bottom line.
I continue to field questions from business owners on what banks are looking for in order to extend credit or make a loan. It is pretty much the same from all of them. Here you go:
Needless to say the banks’ loan volume is currently a little sparse. Most of the bankers that I speak with are focused on deposits, not loan activity.
Check back next week and I’ll speak to methods to fund your business while your getting your debt-service ratio where it needs to be.
by: Terry L. Massey
At the beginning of every year the topic of Goal Setting is being discussed in every department. It always amuses me the arguments over what’s a goal, what’s an objective, etc. I think we make it to complicated. So here are the basics. Stick to this and you’ll do fine.
Granted there are all types of goals. But the basic structure is pretty much the same. So whether it is a strategic initiative, departmental goal, or a personal objective – describe it, define the measure (how), define the target (how fast and how far), assign it (who is responsible), and date it (start/stop). Quit making it so hard.
One might think this will be just another Apple iPad article but then one would be wrong. While the iPad was definitely an Entrepreneurial hit in 2010 it is not our pick.
If you missed the announcement of The Square it’s no surprise. They don’t have the marketing budget or reputation of Apple, at least for now.
So what is The Square? The Square is a credit card reader that plugs into your Android or iPhone. It is free. There are no merchant accounts to set up or pay for. Your are charged 15 cents plus 2.75% per transaction where you swipe the card and 15 cents plus 3.5% if you key the credit card. There are no contracts or set-up fees. Simplicity is truly beautiful. You can learn more about The Square at squareup.com.
What’s your pick for Most Useful Entrepreneur Gadget of 2010?
Metalworking Solutions in Chattanooga, TN continues to grow their company in this difficult economy. Metalworking Solutions has doubled their business in the five months that we have been privileged to have them as our client.
CEO Bill Hewgly has a young executive team that is eager to learn and lead the way in their industry. Under Bill’s leadership, this team has learned that there is no recession for innovators. Expect to hear more from this company as they are truly building a company that will last.
Click here to read the article: Growing in a Recession.
Terry Massey, Partner at AmeriStride will be conducting a business growth workshop for the Chattanooga Area Chamber of Commerce this Wednesday in the Chamber Board Room. This workshop is part of the Business Building Block Series that the Chamber puts on each year. Details on the event and how to register are listed below:
Chattanooga Area Chamber
2010 BUSINESS BUILDING BLOCKS
Seminar Series
“How to Build a High-Impact Company”
Preparing for Growth in the Wake of Volkswagen
Wednesday, August 11
12 p.m. - 4 p.m.
811 Broad St
Chattanooga, TN 37402
Cost is $30
Includes Lunch and Parking
Change has come to our area with Volkswagen, Alstom and other major companies investing in our local area economy. Is your organization readying itself to thrive in this new decade of opportunity?
In this seminar Terry Massey will offer a common sense approach to preparing your business to excel in the wake of the good fortune our city and state leaders worked so hard to bring our way.
“It takes about three quarterly cycles for an organization to learn and instill the disciplines that bring about higher collaboration, more focused decision-making, more productive meetings and professionals with greater respect for management and new-found company loyalty.”
Terry L. Massey
or call the Chattanooga Area Chamber events hotline at
423.763.4366 or e-mail events@chattanoogachamber.com.
Click here for additional seminar information,
pricing and directions to validated parking locations.
Hosted by:
Chattanooga Area Chamber of Commerce
Chattanooga/Hamilton County Business Development Center
Southeast Women’s Business Center
Tennessee Small Business Development Center
This economy has produced a myriad of Solopreneurs. Unfortunately many have joined this new business journey unwillingly. In my speaking circuit I have had various discussions with these new business owners finding that they have very few avenues of assistance. While there are several well meaning non-profit organizations that they can turn to, it appears that the quality of service is hit or miss in many circumstances.
AmeriStride aims to change that, while our services are not free, we are willing to work with these Solopreneurs to aid them in getting started on solid ground. We have a network of complimentary business associates of like mind that realize this market is under served and needs the same quality assistance that larger organizations receive from companies such as ours.
Here is a link to such a firm in Chattanooga, J. Edward Nanney, Attorney at Law’s latest blog post, “To be or Not to Be - Picking a Structure for Your Business (part 1)”. If you are a Solopreneur you’ll find this information helpful as you start out.
By: Terry L. Massey
Email us at info@AmeriStride.com to book an appointment and receive a copy of Gary Harpst’s best selling book:
