| |
| |
|
Small Business Information |
|
|
|
Small Business - A Thing Worth Doing Is Worth Doing Badly
A thing worth doing is worth doing badly. Yes I know that it should be 'well'. My grandma drummed into me that whatever I did I should do it as well as I possibly could. But grandma said that there was another side to it. If it were worth doing, even doing it badly was better than not doing it at all. "Never be put off from doing something that ought to be done because others can do it better", said Grandma, "The others may not do it and then it never gets done". So it's hard for you to estimate sales - take a stab at it anyway! I wish I had a dollar for every small business operator who told me that it was impossible to prepare a projection of cash-flow requirements because their sales were so sporadic and uneven. It's strange in a way that although it is true that each business is unique, it is also true that all small businesses are the same. Most small retail firms average about 30% as a gross profit. That gives them an average mark-up on purchases of about 42%. It doesn't matter what sort of shop, you can use that as an average. Similarly, all other expenses average out at about 20% which gives a net return on sales of 10%. Aren't there firms that do better than this? Too right there are?but some do much worse. So a projection based on averages for your industry will probably be badly out-of-whack. You might think the result is a bad job but it will be one hundred times better than none at all. The owner will know quite a number of concrete figures without having to guessitimate. She will know many of her outgoings:
"Hey! I hope to have higher sales than that". But now we've made a start, we can build in some of your expectations, and now we have a projection that we thought couldn't be done. "But will it be right"! No it will never be right on the money, but it doesn't have to be. Each week/month we will compare what actually happened with what we had hoped to happen and work out our strategies accordingly. If sales fall short by 10% in the first month we have a far greater chance of recovery over the 11 months than if we had no plan at all (even if we thought it was a bad one). And for those proprietors who do a plan and do not compare it to actual until the end of the year any shortfall will be lost forever. A thing worth doing is worth doing badly. It applies to all aspects of business - and life. I often hear owners say, "I can not up-sell. I'm no good at it". Maybe, but it is necessary. Who is going to do it if you don't? Get a little training and start doing it badly. You'll be surprised at how good you get. A thing worth doing is worth doing badly. The Author Kelvyn Peters is one of Australia's longest serving Tax Agents. He was registered in 1962 and became a CPA in 1964. He's served on many charitable boards including St Aubyns Hospital, Alzheimer's Association and Older Peoples Advocacy Service. As a young man he won the Outstanding Jaycee Award three times. Kelvyn is a compassionate, generous man who loves people. That's why he is so skilled at helping people in trouble. Kelvyn Peters was Mayor of Kingaroy Shire Council from 1982 to 1987 and campaigned as the 'Young Man of Action" Over 20 years later he still calls himself a 'Young Man of Action'. He is a director of Restaurant Catering Qld Inc the peak employer representative in Queensland, and has advised the hospitality industry for many years. His specialty is moving in to rescue a sick business. Kelvyn has spent over 20 years experimenting and researching methods to help small business in ways that are affordable. He has perfected it with local clients now he is going global and he is only an email away. http://www.profitstrategies4business.com
MORE RESOURCES:
Small-Business - Google News |
|
|
|
RELATED ARTICLES
How To Build Business Credit Having their own business is something many millions of people dream of doing. Many do, of course, but so many others never quite get around to it. Gold Medal Delegation When the recent Games of the XXVIII Olympiad came to a close in Athens, two events stood out in my mind as perfect examples of the importance of time management:1. Teenage swimmer Michael Phelps, America's most-celebrated Olympic athlete, matched Mark Spitz's record of four individual gold medals with a stirring comeback in the 100m butterfly. The Key To Success - Choose The Right Partners Do you promote yourself as offering prompt, reliable and quality service?Of course - none of us promote ourselves as anything less, and equally we strive to provide this level of service all the time.So what happens when you take your networking to the next level, and start to offer referrals, or even establish partnerships or alliances for certain activities?Whatever you do at this point creates significant impact on your business and personal reputation - potentially positive and also potentially negative. Do You Really Need a Toll-Free Number for Your Business? Do You Really Need a Toll-Free Number for Your Business? The answer is YES! If you run a home business, whether it's a direct sales business, a part-time venture, or if you work full-time from home, if you don't have a toll-free number, you could be leaving money on the table.Studies show that a potential client is 50% more likely to contact a business who has a toll-free number. Pressure Washer Companies and Steam Cleaner Maintenance If you run a pressure washing business it is a must that you understand and take care of your equipment. It is your livelihood. 10 Hiring Tips for Small Business Owners As a successful small business owner,you're accustomed to long hours; non-existent holidays and weekends spent working.When was the last time you went to your dentist? When was the last time you had an uninterrupted night out with your partner?Whether your goal for 2005 is to find more time for family or personal enrichment --like attending classes and conferences -- you'll want to consider bringing on some help. The Greatest Challenges the Internet Consultant Faces! While there are few career paths that some would call perfect, being a consultant comes pretty close to having it all. Yet while it is one of the best ways to earn a living, there are challenges and pitfalls that are sometimes overwhelming and unexpected. Why Do Most Online Small Businesses Fail? Search Engines account for almost 90% of all web traffic!In the Offline world its all about "location, location, location."Put your business were people crowd around and your set. Leveraging Business Relationships for more Profits When should you leverage the relationship?Leveraging sometimes brings a negative connotation to the mix. It does not have to be that way. Small Business Stress Buster: Completion not Perfection Completion not Perfection Five Keys To Doubling Your Productivity and Boosting Your EffectivenessI frequently meet with business owners and executives who feel overworked and undervalued. Many of them are highly gifted and are in fact contributing a huge amount of work, energy and brilliance to the companies they own or work for. Seven Common Mistakes Made By Small Business Owners Most new small businesses won't be in business this time next year. That's the cold hard facts. The Joy and Hazards Of Finding Your First Office Q: I have outgrown my home office and need to find office space for me and two part time employees. I am really excited about opening my first official office, but never having rented commercial space before I don't know anything about how this process works. Small Business 101: Deadly Ignorance American small business is again in transition. Many employees, now working from home, are no longer tied to a geographic office and the woes of commuting. Why Small Businesses Fail (or Fail to Thrive) Tammy, a skilled and gifted horticulturist, called me to discuss what she needed to know to start her own florist and landscaping business. She had been in the horticulture industry for 10 years and was incredibly skilled at working with flowers and plants - one of the best. Work is a Four Letter Word I love work, I can watch it all day.I am not scared of work, I have been known to approach within arm's length of it on a number of occasions. Small Business Secrets: Self-Confidence Can Be Arranged At first blush this idea might be difficult to wrap your brain around. That's because you've been taught that self-confidence is achieved through mastery of knowledge or skills. FFP vs. CPFF Contracts SBIR Corner: FFP vs. CPFF contracts:In the SBIR/STTR world, the single most important decision you need to make is whether you are going to bid a job as Firm Fixed Price (FFP) or as Cost plus Fixed Fee (CPFF). Building A Business That Works For You Before you want to build your business, you need to know why you are in this business.Many of us entered business as a technician. Small Business Vendors; Getting the Best Service If you are a small business you know that you must rely on your vendors to make sure you have everything your customers need. Lack of vendor support can lead to upset customers or even loss of your business. Government Does Not Pay Its Bills on Time Many small companies work very hard to get new accounts. Occasionally they try to get government contracts to supply products or services.
|
| home | site map |
| © 2006 |
