• Leading Edge Business Strategies, your Mentor to Success

    Leading Edge Business Strategies, your Mentor to Success

  • A mentor for your peace of mind

    A mentor for your peace of mind

Proven strategies leading to your business success

You've accomplished the most important first step for your business. You've taken the time to look for help. Business success depends on mentors that have the experience and the skill to craft your business into a profitable and sustainable entity. This investment pays you back with the faster development of your company without the scary pitfalls and setbacks. Contact us today for a free consultation and get your business on the right track to success. Email or call us for a FREE consultation at info@leadingedgebusinessstrategies.com (207) 577-1948


GROWTH
GROWTH

Today, more than ever, GROWTH is necessary to keep pace with your competitors, changes in trends and global economic stability. Managing that growth is key to keeping your business stable, profitable and financially prepared. Trends come and go and your ability to stay in front of the growth curve is tantamount to survival. See what we can do to smooth out the ups and downs of your business cycle to ease the stress of growing your business. Sign up for a free analysis of your growth opportunities and readiness.

PROFITABILITY
PROFITABILITY

The future of your business depends on your making a profit today. Profits help you plan the future of your company and grow your own personal future. It is the lifeblood of any business which allows it to pay its employees, acquire new products or services and plan for the future. It also helps you sleep at night. We can help you plan that future with careful strategic cash management planning allowing you to make money even in the most challenging economic times.

SUCCESSION
SUCCESSION

No other businesses need an objective viewpoint more than family businesses. Satisfying the needs of an exiting generation and an assuming one so all parties are content is a monumental challenge with a lot of emotions. From vision to strategies to development and implementation, the process is challenging and can be stressful. A business coach can pace this to map out a successful transition so that all can eat Thanksgiving together in the future?

In Business with Children – a Succession Story

Now that people are living longer, healthier lives, they are no longer willing to give up the reins of the family business sometimes even into their 80’s. That puts the next generation into their 50’s and 60’s. How do they plan for their retirement?

Jeff and his sister want to take over the family business from mom & dad who are in their 70’s. Mom & dad show no signs of letting go. Jeff is in his 50’s and wants to move the business along into the 21st century, increase revenues and provide for his own future. So, how does he fire mom & dad? People talking

Jeff is sensitive to the fact that his parents founded the business and are just as emotionally attached to it as they are
financially. They never set money aside for retirement and even though they take 8 weeks off in the winter to warmer climates, they still run the show from southern latitudes. Jeff feels like he can never assume full control. His sister is marginally interested in the future but deep down expects Jeff to take care of that. Another brother who is not involved with the business  lives on the west coast.

This scenario plays itself out too often. There have been few to no conversations about the ‘when mom & dad get older’; they’ve never initiated the conversation because they are living day to day until some outside force imposes a change. Many times, the younger generation doesn’t want to offend the parents and create a morbid discussion about “when you die”. So it is left untouched until it is too late. What is the best option in these cases?

It’s time for a talk around the campfire. A skilled business coach with the gift of sensitivity can bring this discussion to light with the entire family involved. In the scenario above, all members of the family, even the one not involved in the business, must participate in the conversation. After all, he is set to inherit a part of the net worth even if the other two siblings buy the business. ‘Ouch!’ Really? He’s ever done anything for the business. But, he is an equal sibling. You may think he deserves none of it, but he thinks differently. It may not be an equal share, but it’s still a share.

If this is being handled when it’s too late (death of a parent or both), this can get ugly. But if it is handled while they are still around, they can have input. The screaming can happen before the will is executed instead of after and normally it is split on a more even keel. There’s something about the parents not being around that elevates the conversation and settlement to an ugly level.

When the succession planning is done ahead with a third party leading the discussion, it is easier to discuss with a business consultant in the room. A good business consultant will regulate the conversation and bring the greed and control levers to a neutral position with thoughtfulness. All parties need to benefit in some form. Telling your parents that it is “time to step aside and let us take over” is usually realized by parents during the course of the conversations, making the end result easier.

So don’t wait until it’s too late. Find someone with the gift of compassion and start thinking of this 5 years ahead, make that 10 years ahead. Begin preparing the business for the change and for mom & dad to step aside. They’ll feel respected and appreciated for how it was done and will be prepared to make the move much easier.

Leading Edge Business Strategies, LLC is a consulting firm for small business. Paul Beaudette is the President and has over 30 years of successful business experience leading companies to sustainable profits, new growth strategies and business sustainability.

 

What Will Your Profit Margin Be This Year?

Did you predict an end of year profit in January?

If you didn’t, why not? What are you afraid of? What do you fear will happen if you throw a number at it and don’t achieve it? Or, what if you surpass it?

Every year we hesitate to forecast the numbers for the next year. Why? Let’s look at it:

  1. Do we feel the whole process is out of our control?
  2. Are we dependent on the economy?
  3. Are we dependent on the stock market performance?
  4. Does it depend on how certain employees will perform?
  5. Does it depend on how you’ll perform?
  6. Will the government shut down and affect your business?
  7. Are you vulnerable to a supplier on the brink of a buyout or failure?
  8. How about your biggest customer, are they on the fence with switching to another company?
  9. Is global competition going to price you out?
  10. Are you unable to find qualified help?

These are all very valid concerns that all businesses face. The question is, should they affect our outcomes? Sure, they make affect our volume in revenues, but depending on how much control you have over your company, they should minimally affect it. Your profitability is controllable. You just need to ask yourself the right questions, contemplate different scenarios and develop strategies for each that protect your profitability.

Leading Edge Business Strategies is offering a 15% discount for any company that wants to guarantee their bottom line for 2017. This package includes coaching for budget development, scenario creation and strategy formation. You’ll be provided with a monthly budget that you can use as a road map for your business throughout the year. You’ll have predictable monthly profits to use as benchmarks and be able to make adjustments as you work through.

Make this year a year of predicted success. Call today for a free consultation and quote.

(207) 577-1948 or email: paul@leadingedgebusinessstrategies.com .

Quotes are based on company size, number of employees, revenues and sales structure. All quotes are written showing fee, discounts and net payable amount.

Call                  Email                   Share

Sneak a peek at my answers to the questions above on page 2.

Answers to questions from page 1:

  1. No. The process of developing a budget should be completely in your control. You have the reins of everything about your business. If you don’t, who the heck does? It does not  just happen. You make it happen.
  2. No. When the economy improves, our revenues go up and vice versa. Our profitability can remain the same when we take those reins and control the horses. With enough planning, your profitability should improve when the economy improves, but profits should not go down when the reverse happens.
  3. No. The stock market affects investors. It influences how people think about the economy. It scares people when it nose dives and makes people happy when it skyrockets. But pay attention to what you do best in your business and your customers will keep coming.
  4. No. If it does, sell them the company. They should not have that type of control over your bottom line.
  5. Yes. You are in charge and have the power to affect your bottom line.
  6. Yes. It’ll affect your revenues (income) but you still have control of your profitability. Make adjustments. I know that’s not easy.
  7. No. You should know your supplier well enough if that will happen. Make a decision if that should be your supplier going forward if that is the case.
  8. No. Just like your biggest supplier, know your biggest customers as well. You should know most of your customers well, but know them like family.
  9. Probably. What is your strategy ‘in case’ that happens? Be prepared for your competition making changes.
  10. No. Treat your help fairly and pay then well, offer them good benefits and they’ll take care of 1 through 9 by default.

Call                  Email                   Share

 

Have YOU had Your Customers for a Sleepover Yet?

But, it’s good customer service!

Getting and keeping customers today is harder than ever. When opportunities arise to WOW! the customer, you need to jump on it immediately.
Take a look at this story of an opportunity that presented itself in what could have been a dire situation for both the customers and the employees. But the lead manager of the John Lewis department store in London made lemonade.
This inspiring story is delivered in this fun Prezi as you follow the adventure of an open-minded, risk-taking manager (Deborah), who did what was right for the customers, all 100+ of them.
Ask yourself, would you stick your neck out to do this? The last few slides say it the best: “It shows that great service isn’t a set of rules, it’s a mindset.”

Use right and left arrows at the bottom to view presentation at your pace. Some slides have sound, not all.

Listen carefully to Deborah as she describes the experience. Find the key culture characteristics that drive this behavior and how as a manager, she was totally comfortable in doing this at a cost. How does that culture become not only unquestioned, but supported by senior managers? And note the enabling, not constraining nature of the effort.

“Sharing your customers’ problem and doing all you can to help solve them.”

Share your customer service hero experience here.                          

Small Business vs. Unlimited Guarantees

“Is the customer is always right”?

In reality, is the customer always right? No, not really. Many customers have taken advantage of that adage and have started using it to get something for nothing.

This mindset has occurred as corporations  have extended warrantees for longer terms and in some instances for a lifetime. The wording of such warrantees varies as to what constitutes a guarantee-able cause. Some are unconditional.

Why have companies made these promises to repair or replace their goods with such risk? Well, they either believe their products will last that long, they are desperate to compete on something other than price or they are playing the odds that most people will not return their purchases. All of these have associated costs that you pay for upon purchase.

What has gotten customers (a minority that is growing) to this point? Why are customers willing to lie to get “free stuff”? Retail clerks tell stories of products returned way past their guarantee expiration and with elevated tones decry the failure of the products until they have talked to higher ups and gotten what they want. Are their claims legit? Sometimes yes and sometimes no. They just know that if they scream loud enough they’ll get what they want.

With online and telephone (mail order) purchasing, it gets even worse. Without face to face contact on a return, theReturns line elevation of tone, the assertiveness of conversation and the “I won’t take no for an answer” speech can become
belligerent and often does. Lacking eye contact and the emotional connection of a personal conversation, the clerk on the other end of the line seems less human. Getting your way results in a freebie. The caller goes away swinging high fives while the clerk on the other end feels diminished, defeated and demoralized. After all, this is the company he works for, the products he believes in resulting in a desire for combat pay.

Big business created this practice

Companies have that right to offer any extended warrantees they wish. The do need to live up to them. They also need to spell them out completely. If a $10 billion company makes $800 million in profits, they can afford to risk a 7-9% return rate without affecting the bottom line much. They may get added business because of their warranty which will more than make up for the return rate. Returns may be resold at discounted prices if not damaged.

How can I as a small business compete?

Small businesses that resell products can live by their product manufacturers’ warrantees. If they provide an installation of the products, they should warranty the installation as well or declare in the terms that installation is not included. Some manufacturers offer some compensation for re-installation of their products at a pre-negotiated discounted rate if failure occurs. For large failures, say an entire commercial HVAC system, a negotiation with the manufacturer should be executed in order to not put a small business under financial duress.

Are customers ‘entitled’ to warranty freebies?

  • Customers returning products claiming failure, defective performance or damaged items are entitled to a replacement or repair per the warranty terms. If cash refunds are available, they should be spelled out in the terms. Many products are replacement or repair only.
  • Returns PolicyCustomer honesty is important. If the customer is lying about the performance of the product, they damaged the product themselves or misrepresented how they received the product, the conversations become ugly. Situations such as these need to be protected under the warranty terms and conditions.
  • Don’t offer cash back unless there is proof of purchase/receipt and the time elapsed is limited.  Most people don’t read warrantees until they need to use them, so make sure you’ve covered your company.
  • Do the math. What exactly is it costing to accept, say 8%, of sold products back? In your calculations, figure the labor, postage/trucking etc. as well. What handling will be needed afterwards to re-sell, re-condition, liquidate or dispose of the item? Whatever the average cost is, include it in the sale of the product after deducting the re-sale. If the cost is high, manage your warranty terms carefully.
  • In the case of service-only businesses, call-backs are costly. Sending a technician, installer, service person back to a customer has hidden costs. Not only is the employee time lost, the transportation costs (mileage, time), that tech’s billable time is lost, parts replacements and the lost confidence in your business’ ability to do the job right the first time is now questioned. Remember that customers talk and one bad experience gets shared many times over.

Returned sales cost small businesses thousands of dollars each year. If they aren’t accounted for ahead of time, they come off the bottom line. It is possible to protect yourself by planning ahead. Do the math and protect your profits.

Cash Flow – the lifeblood of your business.

SMALL BUSINESS SPECIAL

Is cash flowing through your company like a river? Comes in fast and goes out faster?

Are your expenses under control or are there too many hands in the pot?

Are you making the best use of your cash and line of credit?

Are you forever surprised at the end of the year over money you have left (or don’t have left)?

Here’s your chance to get your business organized at the halfway point of 2017. Start off on the right foot with a cash flow projection that shows you real numbers that you can run your company and lowering your stress level by taking action six weeks before your cash and expenses become unbalanced. Always be prepared.

Call us today, get 8 hours consultation on a business channel, department or overall company process you need help on and you’ll get a free cash flow analysis that will help you finish 2017 with a real time view of the cash flowing through your company.

Create opportunities for adjusting prices.

Enable your ability to set money aside.

Pay bills on time.

Pay down that line of credit.

Know when to buy that new equipment.

Take advantage of discounted buying opportunities.

Don’t wait until its too late, call or email us today.