One of the big issues for many businesses (particulary with the economy going abit pear-shaped) is retaining their customers.
I speak to many business owners and when I ask them what their customer feedback is like, I get the typical response - "They're all happy". The next question is how do you know? "I ask them".
Unfortunately the typical kiwi response when asked "how do you find our service?" is that everything is fine. Most people just want to avoid conflict and will tell you what you want to hear, not what they really think.
On the other hand, if it's a third party asking them, and they know it's anonymous, then they'll be frank and open. That's how market research companies have forged a market fior themselves.
You don't have to pay a fortune to market researchers for this sort of feedback. For example, RockSalt provides a service whereby we can launch a small but effective customer survey at a very reasonable price (just contact me for further details).
Just remember, if you let a client stew on an issue you're likely to lose them. If you have a chance to remedy it, and you actually follow through, you can turn a problem into an opportunity.
Monday, March 16, 2009
Tuesday, January 13, 2009
Cheap (or Even Free) Internet Resources
I am always on the look out for cheap or free resources that are out there on the net and am continually surprised what there is out there.
The latest one I've found today is the SkypeIn part of Skype.
Now I've been a Skype user for a number of years now - with in-laws based outside Auckland, it was a great way for the kids to stay in touch with them for free.
Tonight I've gone one step further and setup a SkypeIn number. Basically, you get a landline to your PC or laptop that runs on VOIP. It even comes with voicemail. The cost? About $30 for 3 months!! That compares with a second line through Telecom for something like $45 per month.
Where I'm going with this is that you should be looking at the infrastructure you have in place for your business and ask yourself if it is serving you well and whether you are getting value for money. Sometimes you can get in a state with the blinkers on and carry on with what you've got because that's what you've always done.
Take a step back and have a good look at what's out there. You'll be pleasantly surprised.
The latest one I've found today is the SkypeIn part of Skype.
Now I've been a Skype user for a number of years now - with in-laws based outside Auckland, it was a great way for the kids to stay in touch with them for free.
Tonight I've gone one step further and setup a SkypeIn number. Basically, you get a landline to your PC or laptop that runs on VOIP. It even comes with voicemail. The cost? About $30 for 3 months!! That compares with a second line through Telecom for something like $45 per month.
Where I'm going with this is that you should be looking at the infrastructure you have in place for your business and ask yourself if it is serving you well and whether you are getting value for money. Sometimes you can get in a state with the blinkers on and carry on with what you've got because that's what you've always done.
Take a step back and have a good look at what's out there. You'll be pleasantly surprised.
Friday, January 9, 2009
Seccession Planning
I've been harping on about it for a while now to my clients and now here's some evidence of a lack of forward planning by many businesses. This article from Simon Telfer is from the NZ Herald website today.
Simon Telfer: Tune in to the alternatives before dropping out of your business
The unpreparedness of our nation's privately owned businesses was highlighted again last week with the release of the ASB Succession Planning Monitor for the third quarter.
The report found that fewer than half the respondents were ready for an unexpected offer, falling to a 24 per cent state of preparedness for negotiating a minority shareholding with a key employee.
This report was consistent with other surveys this year, which indicated that the key reasons for business owners not planning were time, complexity and a lack of desire to think about leaving.
It's this last point that gives rise to a conundrum. Healthier and wealthier, the baby boomers are no longer happy to have their nose to the operational grindstone right up to the day they exit their businesses.
But neither can they stomach the idea of waking up one Monday morning as an "ex-business owner". They believe they still have a significant amount to contribute to their business, matched by a desire to remain commercially stimulated and connected. Securing a mid-week bowls club membership or joining the North Shore coffee set doesn't appeal. Flexibility is key. After all, they've got their second OE to organise.
Generational succession is another option open to family-owned businesses. However, it is becoming less frequent.
The third most commonly advanced succession solution is an employee or management buyout. This concept is sound, but few business owners have had the foresight or courage to hire people better than themselves and then develop them to be in a position to realistically undertake an MBO. This is particularly the case in smaller companies.
So recognising that a traditional succession planning approach may be needed in time, what intermediate solution is going to fulfil these baby boomers? One that allows them to act strategically in a business that still excites them but without the people management and other operational headaches?
Precession planning is one solution, and it starts with a chat about hats. For a business owner who has routinely, but subconsciously, worn the three hats of employee, director and shareholder for the majority of his or her working life, this can be a revelation.
Simon Telfer: Tune in to the alternatives before dropping out of your business
The unpreparedness of our nation's privately owned businesses was highlighted again last week with the release of the ASB Succession Planning Monitor for the third quarter.
The report found that fewer than half the respondents were ready for an unexpected offer, falling to a 24 per cent state of preparedness for negotiating a minority shareholding with a key employee.
This report was consistent with other surveys this year, which indicated that the key reasons for business owners not planning were time, complexity and a lack of desire to think about leaving.
It's this last point that gives rise to a conundrum. Healthier and wealthier, the baby boomers are no longer happy to have their nose to the operational grindstone right up to the day they exit their businesses.
But neither can they stomach the idea of waking up one Monday morning as an "ex-business owner". They believe they still have a significant amount to contribute to their business, matched by a desire to remain commercially stimulated and connected. Securing a mid-week bowls club membership or joining the North Shore coffee set doesn't appeal. Flexibility is key. After all, they've got their second OE to organise.
Generational succession is another option open to family-owned businesses. However, it is becoming less frequent.
The third most commonly advanced succession solution is an employee or management buyout. This concept is sound, but few business owners have had the foresight or courage to hire people better than themselves and then develop them to be in a position to realistically undertake an MBO. This is particularly the case in smaller companies.
So recognising that a traditional succession planning approach may be needed in time, what intermediate solution is going to fulfil these baby boomers? One that allows them to act strategically in a business that still excites them but without the people management and other operational headaches?
Precession planning is one solution, and it starts with a chat about hats. For a business owner who has routinely, but subconsciously, worn the three hats of employee, director and shareholder for the majority of his or her working life, this can be a revelation.
Thursday, January 8, 2009
Lease or Buy?
With people starting to head back to work, my experience tells me that business owners quite often think about buying a new car (don't ask me why, I just have experience in the industry that supports this trend).
I'm regularly asked which is better - buying a car or leasing a car? The answer is.....it depends.
The benefits of buying a car are quite straight forward - the car is yours from day one, you have an asset (albeit a depreciating one) and you can sell it when you want or keep it for as long as you want. Once you've paid for it, you don't pay any more (other than maintenance). You also get a GST deduction on purchase.
With leasing, there's then 2 different forms of lease.
An operating lease is like a long term rental car. You stipulate how many kilometres you're going to do over the trm of the lease, what you want included in the lease payments (registration, maintenance, tyres, etc.) and you drive it away. The benefits are that the payments you make a fully tax deductible (income tax and GST), you get a new car at the end of the lease and you don't have to worry about disposing of the car. Also, the risk is all on the lease company in terms of residual value (what the car is worth at the end of the lease). It is also quite an affordable option for a new car as built into the payments is a residual amoutn meaning that you are not funding the full value of the car. The biggest disadvantage is that you are locked in to the lease for its term (albeit with the ability to cancel it with an often hefty cancellation fee) and you have no rights at the end of the lease in relation to what happens (you may be offered the vehicle to purchase at a price but the lease company doesn't have to).
The other type of lease is a finance lease. The vehicle is yours from day one but is financed by a finance company. The vehicle sits on your balance sheet as an asset but so also does the liability to the finance company. This has the effect of increasing your company's indebtedness, which is not always a good thing. It is quite a flexible arrangement as you can structure a "balloon payment" meaning the monthly repayments are lower but you have to pay off a chunk every so often (usually milestones like 12 and 24 months).
So, which is best? I stress that this is only my personal opinion and the answer depends on your own circumstances but my personal preference is towards an operating lease. At the end of the day, by head tells me not to sink my own money into an asset that will always depreciate.
Note: Rocksalt nor Steve Mutton will accept any liability whatsoever for any reliance placed on the above views. To analyse the best option for you or your business, please contact Steve, RockSalt or your own professional advisor.
I'm regularly asked which is better - buying a car or leasing a car? The answer is.....it depends.
The benefits of buying a car are quite straight forward - the car is yours from day one, you have an asset (albeit a depreciating one) and you can sell it when you want or keep it for as long as you want. Once you've paid for it, you don't pay any more (other than maintenance). You also get a GST deduction on purchase.
With leasing, there's then 2 different forms of lease.
An operating lease is like a long term rental car. You stipulate how many kilometres you're going to do over the trm of the lease, what you want included in the lease payments (registration, maintenance, tyres, etc.) and you drive it away. The benefits are that the payments you make a fully tax deductible (income tax and GST), you get a new car at the end of the lease and you don't have to worry about disposing of the car. Also, the risk is all on the lease company in terms of residual value (what the car is worth at the end of the lease). It is also quite an affordable option for a new car as built into the payments is a residual amoutn meaning that you are not funding the full value of the car. The biggest disadvantage is that you are locked in to the lease for its term (albeit with the ability to cancel it with an often hefty cancellation fee) and you have no rights at the end of the lease in relation to what happens (you may be offered the vehicle to purchase at a price but the lease company doesn't have to).
The other type of lease is a finance lease. The vehicle is yours from day one but is financed by a finance company. The vehicle sits on your balance sheet as an asset but so also does the liability to the finance company. This has the effect of increasing your company's indebtedness, which is not always a good thing. It is quite a flexible arrangement as you can structure a "balloon payment" meaning the monthly repayments are lower but you have to pay off a chunk every so often (usually milestones like 12 and 24 months).
So, which is best? I stress that this is only my personal opinion and the answer depends on your own circumstances but my personal preference is towards an operating lease. At the end of the day, by head tells me not to sink my own money into an asset that will always depreciate.
Note: Rocksalt nor Steve Mutton will accept any liability whatsoever for any reliance placed on the above views. To analyse the best option for you or your business, please contact Steve, RockSalt or your own professional advisor.
Tuesday, January 6, 2009
Top 7 Business Lessons You Can Learn From The Wiggles
In trolling the net, I found a link to the following article which you might think would be a bit tongue in cheek, but it does actually have some merit.
http://ezinearticles.com/?Yummy-Yummy:-Top-7-Business-Lessons-from-the-Wiggles&id=30403
A Hat Tip to Andrea Coutu at the Consultant Journal (http://www.consultantjournal.com/blog/?page=blog) for the link.
http://ezinearticles.com/?Yummy-Yummy:-Top-7-Business-Lessons-from-the-Wiggles&id=30403
A Hat Tip to Andrea Coutu at the Consultant Journal (http://www.consultantjournal.com/blog/?page=blog) for the link.
Surviving the Current Economy
Thought I'd better do my first business based entry for 2009 though I'm not 100% sure I'm out of holiday mode yet.
I definitely believe that 2009 is going to be a hard year for small/medium business and owners/managers need to make sure that they're addressing issues within their business as there's not much influence you can have on the external factors.
The first thing to do is have a good, hard look at your P&L and balance sheet.
In your expense lines, is there there anything there that you can do without? I'm not suggesting you cut to the core because I think that is counter-productive. You should be looking at what you are purchasing and asking whether you are getting the best price for the quality you are receiving? Are you you paying through the nose for a high quality product when a cheaper one will do the same job? Consider joining a buying group to take advantage of bulk buying power if you aren't big enough on your own. There many of these around - just look on the web.
In your balance sheet, are you getting a return on all your assets? If there's a millstone around your neck (e.g. a leased car that is not being used) it may be better to pay for the problem to go away (i.e. pay the termination fees and get rid of it). That way you have a fresh start and you're not constantly looking at a problem every time you go into the office.
What about trying to generate new business? I would urge you to seriously consider joining a networking group of some description. These can take on many different guises - industry groups, Chambers of Commerce, Rotary/Lions. Personally, I belong to a BNI (Business Networking International) chapter. Once a week we meet for breakfast, each member gives a 60 second spiel on their business (usually something new they are doing or a different service they offer), and then members swap referrals. I am constantly amazed at the number of referrals that cross the table - in our group of 30 odd members, there are in excess of 20 referrals each week. It is important that you join the right group but the best part is that there is only one member from each industry group in each chapter - for example, I am the only Business Consultant in our chapter. It's definitely not just doing business with each other, it's doing business with people that other members know.
I definitely believe that 2009 is going to be a hard year for small/medium business and owners/managers need to make sure that they're addressing issues within their business as there's not much influence you can have on the external factors.
The first thing to do is have a good, hard look at your P&L and balance sheet.
In your expense lines, is there there anything there that you can do without? I'm not suggesting you cut to the core because I think that is counter-productive. You should be looking at what you are purchasing and asking whether you are getting the best price for the quality you are receiving? Are you you paying through the nose for a high quality product when a cheaper one will do the same job? Consider joining a buying group to take advantage of bulk buying power if you aren't big enough on your own. There many of these around - just look on the web.
In your balance sheet, are you getting a return on all your assets? If there's a millstone around your neck (e.g. a leased car that is not being used) it may be better to pay for the problem to go away (i.e. pay the termination fees and get rid of it). That way you have a fresh start and you're not constantly looking at a problem every time you go into the office.
What about trying to generate new business? I would urge you to seriously consider joining a networking group of some description. These can take on many different guises - industry groups, Chambers of Commerce, Rotary/Lions. Personally, I belong to a BNI (Business Networking International) chapter. Once a week we meet for breakfast, each member gives a 60 second spiel on their business (usually something new they are doing or a different service they offer), and then members swap referrals. I am constantly amazed at the number of referrals that cross the table - in our group of 30 odd members, there are in excess of 20 referrals each week. It is important that you join the right group but the best part is that there is only one member from each industry group in each chapter - for example, I am the only Business Consultant in our chapter. It's definitely not just doing business with each other, it's doing business with people that other members know.
Monday, January 5, 2009
My Wishes for 2009
In no particular order:
- RockSalt to "rock on"
- Spend more time with the kids, particularly Tom as he is really getting to that "difficult" boy age where he needs more male influence
- Someone to get rid of the politically correct crap that is invading our society - it serves no purpose other than pandering to small groups
- The National government to really make some positive changes to make doing business easier (there's far too much red tape in this country)
- Everyone in the world to just get along (I'm not taking any sides in this whole Gaza strip saga as I think neither side is innocent but can't work out why people just can't live quietly and leave each other alone)
- Broaden my horizons and read some non-fiction books. I tend to stick to tried and true thrillers but should broaden my range with some personal development books
- Upgrade the jet-ski
- Do more regular posts
- Every day, make sure Larissa knows that I love her
- Be in a position to build a new house
- Lose some weight
Let me know what some of yours are.
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