Category Archives: Business Help Tips and Advice Windsor Ontario

A Calculation to Help Determine Potential Profits

A Calculation to Help Determine Potential Profits

A calculation for small business profit improvementThe Pareto Principle (also known as the 80-20 rule) is named after an Italian economist named Vilfredo Pareto. It is an interesting concept which can be applied to help determine insights for potential profit improvement.

Let’s look at two possible applications for a small business:

Possibility 1) 80% of your profits come from the top 20% of your customer base.

Possibility 2) 80% of your customer frustrations come from the top 20% most frustrating customers (better known as the bottom 20% of your customer base).

If the second possibility exists in your business, the reality is that your bottom 20% of customers provide you with no profit at all and in fact are likely costing you time and money.

How can you determine the your most profitable customers?

Do a Pareto Analysis on your customer base.  Here is a simple step by step process:

Step 1) Make a list of your current customers.

Step 2) Determine a ranking system for your customers.  A sample system would be to score each customer from 1 to 5 on the following attributes:

  •      Payment history – 1 for a quick payer to a 5 for a delinquent.
  •      Hassle factor – 1 for never a problem to a 5 for continuous hassle.
  •      Likability – 1 for we really like working with them to a 5 for we’d prefer not to work with them.
  •      Value for price fit – Score a 1 if they appreciate and really value what you do for them and to a 5 for no appreciation and less desire to pay for your value.
  •      Risk – Evaluate the business risk of doing business with each customer – 1 is for lowest risk and 5 would be the highest.

The above are just examples. You decide the correct attributes of a good or bad customer.

Step 3) Rank the customers according to the ranking scheme

Step 4) Consider the top 20% of the customer ranking.  If Pareto was right, the top 20% of your customers are where you make most of your profits. Don’t forget to thank these customers!

Step 5) Review the bottom 20% of the customer ranking. Ask your accountant, bookkeeper or business advisor to help you determine your profit from these customers.

Even without applying this principle to your specific business, we know there is not only the potential for profit improvement, there will be quality of life improvement to be enjoyed by you and your employees who won’t have to deal with as many frustrations anymore!

Find Time to Work ON Your Business

Find Time to Work ON Your Business

Find the time to work ON your business - Hyatt Lassaline Windsor OntarioMany business owners spend more time planning for their vacation than they do planning for the future of their business!

Often we’re so caught up in managing the day to day activities of working ‘in’ our business that we neglect working ‘on’ our business.

We know that we should be streamlining our business systems, developing customer relationship strategies and focusing on innovation (just to name a few!), but who has the time?

Here are some tips to help you find the time to work ON your business.

Make a Don’t Do List – Start with tasks that are easy to delegate – then delegate them! Some of these tasks might be enjoyable to you (like getting coffee), but if you’re serious about finding extra time to work on your business for freedom and profit, then the sacrifice should be well worth it.

Ask Permission for Planning Time – Often as business owners we’re used to being pulled in many different directions and are overwhelmed with interruptions. If we simply ask to work undisturbed employees and other interrupters of your time will learn to be more independent – leaving you time to work on your business. Set aside dedicated time every week to plan for your business’s future.

Spend Time Away from the Business to Plan and Brainstorm – Taking time away from your business in a relaxing environment is the perfect place to re-energize, refocus and work on your business strategy. Work with your tax advisor to be certain that your business planning retreat can be written off as a business expense.

Spending focused time regularly working on your business will have immediate and long lasting benefits, so don’t put if off any longer – commit to working on your business today.

Simple Steps to Beat Workplace Procrastination

Simple Steps to Beat Workplace Procrastination

Tips to defeat workplace procrastination Business help Windsor OntarioLet’s face it, as business owners, there are problems and tasks that we avoid, put off or simply try to ignore. Most often they are bothersome or overwhelming – if we completed these tasks our stress level and life would improve.

Here’s a simple process for beating workplace procrastination:

  • Start the process the afternoon before.
  • Create a to-do list, review it and prioritize.
  • Clear your workspace and prepare it with items necessary to complete the tasks.
  • Set yourself up to work in a distraction free environment.
  • Tackle the hardest job first thing in the morning.

Once you’ve completed the hardest job, you’ll feel accomplished and ready to take on more. Your stress level will decrease and your business will benefit. So why wait any longer?
Just do it.

Tips to Improve the Hiring Process

Tips to Improve the Hiring Process

Tips to Hire EmployeesDoes your business have an induction plan for new employees? Induction plans help ensure that new hires start off on a productive and positive note.

Here are some points to consider as you develop an induction plan for your business:

1)      Identify key current employees to provide hands on training to the new hire. It will take extra time and resources to properly train the new employee, so this must be accounted for.

2)     Create a checklist of essential items.

  •         Computer
  •         Email account setup
  •         Locker
  •         Uniform, phone, supplies
  •         Clean desk
  •         Clean truck

3)      Give the new hire access to training items, safety rules, passwords and keys.

If your business doesn’t have a formal process now for new hires, consider starting a system for this process. Don’t worry if it’s not perfect from the start, it can easily be reviewed and changed as your business evolves.

Small Steps to Business Success

Small Steps to Business Success

Steps to business success Hyatt Lassaline Windsor OntarioOften business owners are desperately seeking perfectionism to improve their business. Instead of trying to do business tasks 100% better, focus on doing several things 1% better and build from there.

Where to begin? Here are a few actions business owners can apply in only minutes a day:

  • Listening and communication skills – focus on listening better and giving thoughtful replies.
  • Learn a new skill – perhaps something to help you work more efficiently.
  • Become better organized – spend a few moments and tackle your desk, email inbox or paper files.
  • Talk to your customers – thank them and ask how they can be better served by your business.
  • Talk to you employees – learn their frustrations and address them to help improve productivity and morale.

These actions can have profitable, business building results. Start today!

What is Holding Your Business Back?

What is Holding Your Business Back?

It just might be you. It might be a self-imposed barrier that’s holding you and your business back.  

A self-imposed barrier is a thought or belief you have that is blocking you from seeing an opportunity.

A common example is when the business owner believes all their current customers are aware of every product or service the business offers, but in reality the customers do not.

Are you confident that all your current customers are aware of your complete business offerings?

Business advice to quickly improve profitsOne simple way to test this assumption is to assemble in a simple document a list of all the products or services your business provides. Politely ask your customers for a few minutes of their time to discuss your business’s offerings. You may uncover that your customers were unaware of many of your products or services.

The self-limiting belief described above limits potential sales to these customers. If you can open yourself to new possibilities, you might learn something new about your customer’s needs and frustrations.

You won’t know unless you start the conversation with your customers.