Why A Lack Of Growth Might Be Your Greatest Risk

When the topic of risk is addressed most of our thoughts go towards insurance however there are significant risks to your business that cannot be insured.  One of those is a lack of growth.  A lack of growth can be a slow death spiral that can be irreversible.

First let’s define growth.  The obvious mode of growth is an increase in sales however a second type of growth is also desirable—growth and maturity in the operations.  So why is a lack of either type of growth a risk to your company?  This is because of your employees.

As we examine in organizational structure there are three types of employees:  Climbers, Campers and Quitters.  Climbers consist of about 10-20% of your employees but they produce 80% of your profit.  Campers consist of about 70-90% of your employees but they only produce 30% of your profit.  Quitters consist of 5-15% of your employees but they actually cost you 10% of your profit.  Climbers receive their personal satisfaction through their work as opposed to Campers and Quitters who respond more to outside of work activities.  Obviously it is paramount that you retain and challenge your Climbers.  Turnover should be focused in the Quitter/Lower Level Camper pack and everything possible should be done to prevent turnover of Climbers.

Climbers need a ladder.  Climbers need to see that there is “somewhere to go” in your company.  Failing to see that they will leave you and often times for less money if they see a more challenging opportunity elsewhere.  They need recognition.  An entrepreneurial Climber may even become your competition if you don’t provide that outlet within your company.  Turnover amongst Climbers hits your company hard.  They are hard to find and hard to keep and it is very difficult if not impossible to teach or train that trait.

Find Out How Much $ You Can Save With TFG Doing Your Accounting!

You are paying too much for your accounting.  TFG, a non-profit organization providing services to mid-small business owners can show you how much–but you have to call us to find out!

TFG’s Accounting Supervisors and Data Entry professionals will complete your Quick Books accounting daily and provide all of your reports, payroll, budget, AR and AP.  We can do as much or as little as you like while you maintain your CPA to file your taxes and give tax advice.

But that’s not all!  Our Success Partners can customize your reporting to identify and monitor you Key Profit Indicators and provide weekly support.

Do you turnover in accounting?  Is your accounting done accurately and on time?  Are you getting the financial reporting that you need to drive your business in a timely manner?  Are you overpaying for accounting?

If you are serious about your business you owe it to yourself

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Two Things You Need to Know to Increase Sales

Sales have not really changed over the years.  The tools have increased and allowed us to be more effective however the principles are the same.  The new tools such as social media, use of CRM, the internet in general, and many others can make you much more efficient, however if you are not following the basic principles you will not get the results that you could be getting.

First you must understand and accept that in making a sale what you are doing is solving your customer’s problem.  In order to solve a problem you must understand what that problem is–duh!  That can be done in numerous ways–research, industry knowledge, and so on–but the most effective way is to ask them.  If it is face-to-face it means not talking, it means asking questions and listening.  I recently had a discussion with a small, in-home candle maker who sold mostly through Amazon.  She wanted to greatly expand her number of accounts so I asked her the question that you should always ask yourself, “Why should a customer carry your candles?”  In response she told me all of the good things that went into her products but she never told me how carrying her candles would benefit the customer.  You must put yourself in the shoes of the customer and understand how purchasing your product or service would benefit them.  It’s not all about you–it’s all about them.

A second way of finding out their problem is educating them–they might not even realize that they have a problem until you educate them to the benefits of the solution.  This can be true with new products on the market.  You must  educate the customer as to the problems created by not changing and by not using your product.  Remember that change is resisted.  The benefit of change must be overwhelming and again it is the benefit of the customer that matters.

The second principle is to create and understand your own sales system.  You must create a system that follows the four functions: lead generation, lead qualification, closing and customer service.  Each should be examined separately and each should be accomplished in the most cost effective manner.  Lead generation is a low-level, often automated, function.  How can we generate the maximum number of leads as inexpensively as possible?  Many companies have their high-paid, top sales people inefficiently performing this entry level task.  Secondly, once we have leads how do we qualify those leads?  What is the matrix of variables that makes a lead qualified and how can we apply that matrix to the leads as efficiently as possible?  This winnowing of the leads creates the pool of leads upon which you focus your attention.  These are the leads towards which investment of resources is directed.  Most companies focus their efforts here in training sales people to close–a function which does require constant attention–however it is just as important to make sure that closers focus their time on qualified leads.  Lastly customer service needs to be treated as a sales function.  The most valuable sales asset in most businesses is their customer list.  A strategy must be implemented to maximize sales from this list.

The mapping of your Sales System allows  you to produce and monitor results from each category and gives you control of the sales process.  The owner should always have at their fingertips the information as to the “numbers” in each of these phases.

Let’s examine and refine your Sales System through an Initial Consultation with one of our Success Partners.  Give us a call today–303 338 9300 to set up your IC!

TFG will do your accounting better and cheaper

Experience has shown that small to mid-sized businesses suffer from inconsistent accounting.  As the company grows their needs expand and yet they continue to utilize the same limited skills in accounting.  Too small for a qualified CFO they hire relatives or referrals, they suffer turnover, and take time away from what the owner should be doing.  Penalties are paid, tax documents are improperly filed, bank statements are not reconciled, and worst of all the owner is not receiving timely, accurate and usable managerial information from their accounting.

TFG will do an assessment of your current strengths and weakness and put together a plan to address your needs.  In times of turnover it may mean the complete outsourcing of your Quick Books accounting or it may mean supplementing existing personnel so that they can work effectively.  The implementation of the customized plan will make you more profitable, reduce your stress and provide a framework for growth.

The TFG staff is qualified and consistent.  They provide a stability and level of expertise to your company.  Give us a call and see how.  303 338 9300

Patreon Schedule

Patreon Schedule

Visit our Patreon site for more valuable information to help you manage your business.  We put up posts and workshops according to the following schedule.  Note that some of the materials are only available to patrons.

January-February                            Make a Minimum Mandatory % of Profit

Informational Posts 1/1; 1/15; 2/1

Workshop 2/15

March-April                                      Cost Controls

Informational Posts 3/1; 3/15; 4/1

Workshop 4/15

May-June                                         Organizational Structure

Informational Posts 5/1; 5/15; 6/1

Workshop 6/15

July-August                                      Sales

Informational Posts 7/1; 7/15; 8/1

Workshop 8/15

September-October                        Risk Management

Informational Posts 9/1; 9/15; 10/1

Workshop 10/15

November-December                     Have Fun

Informational Posts 11/1; 11/15; 12/1

Workshop 12/15