Making Good Business Cents
Making Business Cents
I have had the dubious honor of speaking to many business owners about the durability of their companies during today’s critical financial times. And, it is unanimous! Eighty-seven percent of them believe that despite government attempts to pull the American economy out of the dumps, they can read the handwriting on the wall, and it’s not good.
It is absolutely vital for owners of companies to make as much sense as possible, as to what will and will not work during these dreadful economic conditions, or else their companies will make no cents at all. On the other hand, families all over this globe are struggling to make ends meet. New research indicates that nearly a quarter of a million people in Ireland have nothing left to live on after they have paid their bills each month.
The latest national snapshot of the social sector shows the number of Australians being turned away from emergency relief, disability, homeless and youth welfare services is dramatically on the rise. Figures from the Australian Council of Social Service show that demand for emergency relief, including food and shelter, almost doubled in 2009-10 from the previous financial year said, Erin Long of the Sunshine Daily Coast, 20th April 2011.
More people and businesses are struggling to make ends meet and the demand for support services is growing as the cost of living grows. While businesses are trying to remain or become solvent, banks are not helping the crisis by not lending. The simple answer to why banks aren’t lending is because they don’t have to. Banks, like all other businesses, are required to make profits. In order to answer to their regulators and their shareholders, banks must be profitable or they cease to exist. That’s exactly what is happening today.
The American public was told that the bulk of the stimulus money will not be spent until the end of 2010, at which point it will probably not be needed. This did not happen and unemployment is increasing at an alarming rate. In order to increase employment, you must stimulate small businesses and encourage banks to lend. The U.S. Government today does not seem to have this as a priority.
What must be done today is that business owners and heads of families should pay close attention to markets and strongly consider how they manage and spend their money. Businesses should be especially sensitive to the consumer’s new spending trends and be on the cutting edge of how to sell more products without increasing their prices. Customers will become loyal when they think that businesses are considerate of their needs as well.
Five things that constitute good business sense:
- Character: Character is something you either have or are. People of preference try to make something for themselves, while a person of character works to make something of themselves and their business.
- Forget the Past. The past is always going to be the way it was. Stop trying to change the past. Stop looking at where you have been and start looking at where you can be. Plan for future profits instead of going over past losses.
- Don’t Procrastinate. A procrastinator is always paying more for something they could have paid less for if they would have made a decision yesterday. Ask yourself, “If I don’t take action now, what will it cost me tomorrow?”
- Know Your Business. There is something you may have started that you promised to finish. Too many people know what they are running from, but not many know what they are running to. Concentrate on finding your business purpose, then concentrate on fulfilling it.
- Know your customers’ needs. When you have what others need, you have customers. Needs are not hard to discover. The solution to finding what your customers are looking for is in the ton of questions you need to ask.
If you want to get help to increase your profit margin, ask questions to potential customers. You will be surprised how they will provide you with answers on how to make them buy from you.
Recommended Reading:
I frequently say, “Readers are leaders and leaders are readers.” I strongly believe this statement; therefore, I have taken the time to recommend reading material that I believe will greatly benefit your life and business endeavors. Click the images to see more information or to order the books from Amazon.com.
The materials are provided for your convenience and Dr. Brown will earn a small commission from Amazon when you purchase through the links provided above.
