by MHolland | Nov 28, 2024 | Business Tips, Selling Tips
There are two fundamental ways to approach your business…
One is the Big Bang Theory. Setting BHAGs. Big Hairy Audacious Goals. Go big or go home.
You get the idea.
The other is the CANI approach to business (and life). Constant and never-ending improvement (CANI).
Small, tiny habits versus big goals.
Tiny, micro habits beat setting big goals every time.
I am a big believer in habits versus goals. Habits create the momentum towards your goals.
By doing little things consistently and improving on those little habits each week tremendous movement towards your goals will occur.
You will also be more relaxed and have more fun on the journey.
To read more about how to get started please read this:
Tiny Habits for Productivity
4 Ways to Grow
Related to the above is making tiny improving in the Four Ways to Grow your business.
In fact, just 1% change in all four areas can create a massive momentum in your business.
Each of the Four Ways is unique, requiring a different strategy.
By focusing small changes and a 1% grow strategy in each of those areas the results can compound.
Imagine what would happen if in the next fiscal quarter for your business you achieved the following:
- 1% growth in new customers.
- 1% growth in existing customers coming back more often.
- 1% growth in your average sale. Who would leave for a 1% price increase?
- 1% reduction in total expenses.
I have a chart to demonstrate the effect of this. I will go through the numbers again in a future blog post.
Branding
A friend of mine, Isabelle Mercier specializes in brand creation, systems, and outsourced marketing.
This week she writes about how to create your brand.
She uses the word “envy”, which I am not big on.
I would replace with “strong desire” to have the results that the branding offers you.
Check it out here:
Mastering Envy The Key to Creating a Strong Brand in a Saturated Marketplace
Thanks for reading…
by MHolland | Nov 20, 2024 | Business Tips, Cloud-based Accounting, Systems
Today I am going to explore the benefits of outsourcing your internal accounting versus doing it yourself…
Firstly, doing it yourself is draining, time-consuming, and often frustrating. Outsourcing to professionals is not just easier; it is smarter, more cost-effective, and gives your business the edge it needs to thrive. Here is why.
Reclaim Your Time
Your time is your most valuable resource. Do not waste it reconciling accounts or chasing receipts.
- Focus on growing your business instead of managing complex online software.
- Spend more time building customer relationships and driving strategy.
- Let professionals manage the grunt work quickly and accurately.
Outsourcing frees you to focus on the big picture while your accounting is handled by experts.
Access Expert-Level Support Without Hiring
Hiring an in-house accountant can be expensive and time intensive. Outsourcing gives you access to top-tier expertise without the commitment.
- No need to train employees or keep up with regulations—they have it covered.
- Get advice tailored to your business’s unique challenges and goals.
- Collaborate with a team that is always up to date on the latest tax laws, tools, and trends.
It is like having an entire accounting department at your service—without the overhead.
Save Money, Avoid Hidden Costs
Think outsourcing is expensive? Think again. Compared to hiring in-house staff, it is a bargain.
- Pay only for the services you need—no salaries, benefits, or office expenses.
- Avoid costly mistakes that could lead to penalties or missed opportunities.
- Many outsourced firms include innovative software as part of the package, saving you even more.
Better financial management does not have to break the bank.
Gain Impeccable Accuracy and Compliance
Accounting errors can be costly—missed tax deadlines, inaccurate reporting, and even audits. Outsourcing ensures your books are done right the first time.
- Get accurate records every time, with no guesswork.
- Ensure compliance with ever-changing tax and regulatory laws.
- Stay on top of deadlines without lifting a finger.
When professionals manage your accounting, you get peace of mind that everything is in order.
Stay Agile as Your Business Grows
Your business needs change as you scale, and so do your accounting requirements. Outsourcing is built to grow with you.
- Add services like payroll, financial analysis, or tax planning as needed.
- Access advanced tools and technology to streamline processes.
- Stay flexible without being tied down by in-house resources.
Whether you are just starting to scale or managing a multimillion-dollar operation, outsourcing keeps pace with your growth.
Get Strategic Insights, Not Just Numbers
Good accounting is about more than just balancing the books. It is about empowering your business with data-driven insights.
- Spot trends in your finances to capitalize on opportunities.
- Plan with accurate forecasts and cash flow management.
- Make smarter, faster decisions with clear, up-to-date financial reports.
When professionals oversee your numbers, you get the insights to take your business to the next level.
Reduce Stress, Gain Peace of Mind
Let us face it—accounting can be stressful. It is not what you signed up for.
- Deadlines are met. Always.
- Records are neat, organized, and audit ready.
- Your business is well cared for, so you can focus on what matters most.
Outsourcing takes the hassle out of accounting, so you can run your business stress-free.
Thanks for reading…
by MHolland | Nov 13, 2024 | Business Tips, Cash Flow, Selling Tips
When it comes to sales and marketing, many businesses are tempted to treat price as the ultimate selling point.
But does focusing solely on price really drive the best results?
Studies suggest that it may not be the deciding factor we think it is. Instead, it is just one component of the larger value customers consider before making a purchase. Here, we will explore why focusing beyond price can increase profitability and customer loyalty.
The Myth of Price as the Driving Factor
Price is frequently believed to be the single most important aspect of a customer’s purchasing decision. However, data tells a different story. According to one survey, only 15% of customers make decisions solely based on price, while a whopping 68% leave a business because they feel that it is indifferent to them. This insight challenges the notion that lower prices alone can attract and retain customers.
Customers prioritize factors that give them a sense of value beyond mere cost. They want solutions that address their needs, along with a positive experience. As a result, focusing exclusively on price often overlooks the real motivations behind a purchase.
Understanding Customer Decision Factors
When considering a purchase, customers typically weigh various elements. Here are some of the top factors besides price:
- Quality: Customers want products or services that meet their standards and last over time.
- Customer Service: Excellent customer service adds significant value, as customers want to feel acknowledged and supported.
- Convenience: Easy access, fast delivery, and flexible payment options all make a company more appealing.
- Warranties and Guarantees: Risk reduction through warranties offers peace of mind.
- Personalized Assistance: Many customers appreciate knowledgeable advice and support, especially for more complex purchases.
These factors combine to create a perception of value that transcends the simple dollar amount.
A Closer Look – Why Customers Leave
In the same survey, customers were asked why they chose to leave a business. The reasons were illuminating:
- Convenience accounted for just 3% of customer losses.
- High-level relationships—such as a shift to a trusted friend or family member’s business—represented 9%.
- Product/price/time concerns accounted for 15%.
- Finally, perceived indifference—the impression that a business did not genuinely care about its customers—was the leading cause, at 68%.
This shows that price is not the primary reason customers leave; rather, it is the lack of personal engagement and attention. When customers sense that a business does not value their patronage, they quickly turn to a competitor that does.
Real-World Case Studies: Price Is not Everything
Many businesses that consider themselves in “price-sensitive” industries have discovered that focusing on non-price factors can boost their profitability. Here are two examples:
- The Electrical Goods Market: This industry might seem entirely price-driven, but an independent study found that only 18% of customers based their purchases on price. The majority were more interested in features and the benefits those features offered. Nearly half (42%) of customers made their choice based on the product’s features and the perceived advantages those features would bring them.
- Hot Chicken Store vs. Chain Franchises: An independent chicken shop found itself struggling against larger chain franchises with more purchasing power, which allowed them to offer lower prices. After a strategic decision to raise prices rather than try to compete, the owner saw an increase in profits. This pricing decision allowed him to focus on differentiating his business, highlighting a customer experience that set him apart from his competitors.
Both examples illustrate the power of shifting focus away from pricing wars and toward creating a unique value proposition.
The Cost of Discounting
Many businesses use discounting as a strategy to boost sales, but the math behind it may surprise you. For example, if your profit margin is 30%, a 10% discount requires an astonishing 50% increase in sales to maintain the same profit. In other words, discounting is often less effective than anticipated and can even harm long-term profitability.
In contrast, increasing prices can enhance profits without major losses in sales volume. At a 30% profit margin, raising prices by 10% means you could afford a 25% decrease in sales volume before profits fall below previous levels. While discounting can make a quick sale, it is rarely a sustainable way to grow profits.
Shifting the Focus to Value and Service
So, what is the alternative to relying on price as the primary marketing tactic?
Focusing on value-driven service, tailored customer experiences, and a unique business identity can be far more powerful. Here is how:
- Better Service, Better Sales: Companies with a focus on “awesome service” give customers a reason to stay, pay a higher price, and return. High-quality service not only leads to immediate sales but also creates long-term loyalty. In fact, studies show that improving customer retention by just 5% can increase profits by as much as 25%.
- Understanding and Meeting Customer Needs: When customers inquire about price, it is usually just the beginning of their decision process. Businesses that can look beyond the price question and explore customers’ needs—such as specific product features, customization options, or delivery requirements—demonstrate an understanding and commitment that resonates with customers.
- Training and Consistency: It is essential to train employees to deliver consistent, high-quality customer service. Programs like “Towards Awesome Service” can empower employees to engage with customers more effectively, creating a culture of service that naturally stands out.
Your Action Plan to Move Beyond Price
By broadening the scope of your business strategy, you can differentiate yourself from competitors who focus solely on pricing. Here are some steps to start:
- Evaluate and Adjust Pricing Policies: Review your approach to discounts and consider how adjusting prices might impact your bottom line. Avoid excessive discounting, which can erode long-term profitability.
- Invest in Customer Service Training: Equip your team to offer service that goes beyond customers’ expectations. Programs focused on “awesome service” can be especially beneficial.
- Ask the Right Questions: Train staff to go beyond quoting a price when interacting with customers. Encourage them to ask about the customer’s specific needs, preferences, and timelines.
- Consult with a Financial Expert: An accountant or financial advisor can provide insight into effective pricing strategies that support profitability without undercutting value.
In Conclusion
Price, while important, is rarely the most compelling reason customers choose to buy from a particular business. Often, they are looking for a positive experience, a feeling of value, and a sense of connection with the business. By shifting focus away from price and toward quality, service, and a unique customer experience, your business can stand out in ways that drive customer loyalty and profitability—without racing to the bottom on price.
Thanks for reading…
by MHolland | Nov 8, 2024 | Accounting Software, Business Tips, Cash Flow, Cloud-based Accounting
I have written in the past about the need to switch from manual cheques to online bill payments…
While cheques seem secure (you are using paper and pen, after all), online bill payments deliver awesome advantages in speed, security, and cost.
Cheques are risky. Online bill payments are secure.
That is a flip in your thinking, right?
Let us go through the seven benefits.
Benefit One – Fast and Simple
Online payments happen fast—no more waiting on the mail or bank delays. Payments are instant, freeing up time and simplifying the process.
- Quick Processing: With online payments, funds transfer immediately, bypassing the hassle of mailing and clearing cheques.
- Effortless Transactions: Forget about writing, signing, and mailing cheques. A few clicks, and it’s all taken care of.
Benefit Two – Stronger Security
Cheques can be lost, stolen, or altered. In other words, ripe for fraud. With online payments, digital safeguards work to protect your accounts, making fraud much harder.
- Top-Notch Encryption: Banks and payment platforms use advanced encryption to keep data secure.
- Around-the-Clock Monitoring: Banks and payment platforms monitor for unusual activity, flagging anything suspicious.
- Two-Step Authentication: Extra security steps add a second layer of defense, reducing the risk of unauthorized access.
Benefit Three – Lower Costs
Running a business means watching expenses. Cheques require printing, mailing, and processing fees that can add up. Online payments save money by cutting out these extra costs.
- Goodbye to Printing and Postage: No need to pay for cheques, envelopes, or stamps.
- No Lost Check Headaches: Online payments remove the risk of lost cheques and the hassle of reissuing them.
Benefit Four – Control Cash Flow
Online payments let you manage cash flow with precision. Scheduling and automating bills helps avoid late fees, and you always know when money is moving out.
- Easy Scheduling: Automate recurring payments to ensure bills are paid on time, every time.
- Predictable Cash Flow: Set dates for payments so you know exactly when funds will leave your account.
Benefit Five – Go Green, Save Green
Online payments aren’t just convenient—they’re better for the environment. They eliminate the paper waste from cheques and the carbon footprint of mail delivery.
- Paper-Free Payments: No more cheques, no more envelopes—just instant, eco-friendly transactions.
- Reduced Emissions: Skip the postal service and the delivery truck, keeping your operations lean and green.
Benefit Six – Streamlined Record-Keeping
Online bill payments mean clear, organized records. Every transaction is digitally recorded, making bookkeeping a breeze and audits smoother.
- Automatic Record Generation: Online payments create a digital record, reducing errors and streamlining account reconciliations.
- Easier Audits: Digital records make it simple to trace and verify expenses.
- Software Integration: Syncing with accounting software like Xero or QuickBooks reduces manual work and ensures your records are up to date.
Benefit Seven – Build Better Relationships
Prompt payments build trust, and online payments make timeliness easy. Vendors know they’ll be paid on time, and customers appreciate a straightforward, reliable process.
- Reliable Vendor Payments: Scheduled payments keep you in good standing with vendors and partners.
- Customer Convenience: For customer-facing payments, digital options make it easy and fast—an experience customers love.
In Summary
Cheques have had their day, but online payments are faster, safer, and more efficient. For businesses focused on improving cash flow and cutting costs, going digital is a smart move.
Switching to online payments means easier financial management, stronger security, and streamlined operations—making every transaction simpler for you and your business.
Thanks for reading…
by MHolland | Oct 30, 2024 | Business Tips, Selling Tips, Systems
A family business is more than a company. It is legacy, values, and generations of demanding work. It is unique. And just like every family is different, every family business has its own way to define success. So how do you know if you are on the right path?
Key Performance Indicators (KPIs) can help. KPIs keep your business on track. They are like the dashboard in an aircraft. Without KPIs you are flying your business blind.
Why KPIs Matter
KPIs are your business’s health check. They are the numbers that tell you if you are thriving or just getting by. They give you focus. They drive decisions. Think of KPIs as the vital signs of your business. With the right KPIs, you will know where you are winning and where you need to improve. Every business and organization needs this insight.
Step One – Align KPIs with Goals
It starts with a simple question – what is your 3-year Vision? Where do you want to go?
For some, it is growth – it is increasing revenue.
For others, it is improving efficiency or customer loyalty.
Your KPIs should match these goals. No random metrics. If your goal is growth, measure revenue or profit margins. If your goal is customer loyalty, look at repeat sales or retention rates.
Every KPI should connect back to what matters most. This keeps you focused and cuts out distractions.
Step Two – Make KPIs Measurable and Clear
Numbers matter. The best KPIs are specific and measurable. Think percentages, timeframes, or raw numbers. For example – “Increase monthly revenue by 15%” or “Reduce customer complaints by 25%.”
These are clear. They are easy to track and easy to understand. Avoid vague goals like “Improve customer service” without any numbers. Specifics matter. The clearer the KPI, the easier it is to measure it.
Step Three – Get a Good Mix of KPIs
KPIs should be balanced. A good mix looks at the big picture.
Financial KPIs like net profit or gross margin are crucial. But they are not the only numbers that matter.
Customer satisfaction, employee turnover, and process efficiency matter too. Each tells a part of the story. Financial metrics show profit and cash flow. Customer metrics show loyalty. Employee metrics show team stability and morale. Together, these KPIs give a full view of your business’s health.
Step Four – Keep KPIs Realistic
Ambition is great but keep KPIs achievable. Aiming for the stars is fine, but do not let it become unrealistic. Unrealistic KPIs can lead to burnout, disappointment, and poor decision-making.
Think about why you are in business in the first place. Most people go into business for freedom. No one wants to be a slave to your business. Do you?
Start with reachable goals and increase gradually. If you are tracking profit margin, aim for a 5% increase this year, not 50%. Realistic KPIs keep your team motivated and moving forward. Small, steady wins add up.
Step Five – Review and Adapt KPIs Regularly
KPIs are not set in stone. As your business evolves, so should your KPIs. Review them regularly. Every quarter or every year, check if they are still relevant.
Has a goal changed? Adjust the KPI.
Has the market shifted? Update it. Adaptable KPIs keep you responsive to change. Your business is dynamic—your KPIs should be, too.
KPI Ideas for Family Businesses
Need ideas for KPIs? Here are a few to consider:
- Gross Profit Margin – Shows your profitability after direct cost of sales.
- Customer Retention Rate – Loyal customers are your backbone. Track them.
- Operating Cash Flow – Essential for understanding your cash movement.
- Employee Satisfaction – High satisfaction often means lower turnover.
- Sales Growth Rate – Tracks how fast your revenue is growing.
- Inventory Turnover – Ideal for businesses with physical goods. Shows how often stock is sold and replaced.
- Debt-to-Equity Ratio: A key financial health metric. Lower ratios indicate stability.
Each KPI tells a piece of the story. Together, they give you a roadmap for success. They show you what is working and what is not. They keep you accountable. And they keep you moving toward your goals.
In Conclusion
KPIs are a tool—a powerful one. They are not just numbers; they are a compass.
With the right KPIs, you have a way to measure success. You have a way to stay focused. And, most importantly, you have a way to ensure your business thrives for years to come. So, choose wisely, measure consistently, and watch your hard work pay off.
Thanks for reading…
