Stop the Cash Flow Roller Coaster

How Striking a New Chord Can Lead to Business Growth

2009-02-19T09:07:00.000-08:00

One of my business and personal philosophies is to always be learning something new. Learning a new skill opens my eyes to new possibilities, renews my curiosity, and heightens my joy of exploration and discovery. The challenges excite me and frighten me, taking me quickly out of my comfort zone.

Once out of my comfort zone, uncertainty creeps in. I wonder “can I do this?” I fight the pull my comfort zone exerts, urging me back to the safety of what I know. Gradually, I conquer the new skill and all its possibilities become clear and my comfort zone expands.

Lately, my pursuit of new skills has led me to fulfill an ancient dream, learning to play guitar. Learning guitar is a skill that will take anyone out of their comfort zone. For starters, pressing tender fingers on steel strings is painful. Practice too much and you end up with blisters. Those blisters complain when they are applied over and over to a computer keyboard. The simple act of typing becomes a punishment that probably is outlawed by the Geneva Convention.

Once the fingers become accustomed to pressing down on steel strings, another torture is added. That of twisting your fingers into unnatural positions to play chords. Some of these chords have been aptly named “Satan Chords” by my friend Sarah, a fellow sufferer. One such chord, the B minor had become a bête noir for me. Difficult to achieve but necessary for a number of my favorite songs.

Looking for an easy way out, I begged and pleaded with Chris Bannon, my guitar torturer, er, teacher, for a work around. Some other chord I could play instead that would work almost as well. I wanted the easy answer. Instead, he patiently showed me how to play the B minor chord again. Rats! Is there no escape?

The B minor chord backed me into a corner because it is one of the main chords for my all time favorite song. To learn the song, I had to learn the Satan Chord. So, I did. The “why” was big enough so I stretched my comfort zone (and my fingers) to accommodate the necessary chord.

To take my mind off the pain in my fingers, I thought about how small business owners often try to stay within their comfort zones in the day-to-day running of a business. They get stuck in the rut of “this is the way we’ve always done it.” Making changes is inconvenient and sometimes frightening.

I hear things like “we don’t need a website” from businesses that could clearly benefit from having one. Or, “I have to do everything because no one else can do it as well as I can.” I even had a client who ran a professional practice who rented a second office so he could do the five years of tax returns he hadn’t gotten done. His thinking was that it was too expensive to hire an accountant to do it. We all have blind spots.

The simple truth is that breaking out of our comfort zone involves effort and risk. We’ll only do it if the “why” is powerful enough. For me, learning guitar had a big enough “why.” It was a dream from childhood that I needed fulfilled. Learning a B minor chord had a big enough “why” because not knowing it meant I couldn’t play my favorite song.

For the business owner, learning a new skill or trying a new marketing strategy or learning to delegate has to have a big enough “why” as well. If your goal is to get out of the office in time to have supper with your kids, then learning to delegate becomes an important enough goal to conquer. If your goal is to achieve a certain level of financial comfort, then the “why” becomes powerful enough to encourage you to try new strategies to reach that goal. Business as usual quickly loses its comfort if it can’t get you from Point A to Point B. And in the process of leaving our comfort zones, we become better business owners (or guitar players). The personal growth leads to business growth. Each goal achieved leads us to the next larger goal in an ever expanding comfort zone.

Accountants Hold the Key to Unlocking Small Business Cash Flow Mysteries

2009-02-12T06:46:00.000-08:00

Economic downturns have a way of uncovering the weaknesses lurking just under the surface in businesses. Business inefficiencies that go unnoticed during boom times can quickly cripple a business during a downturn. Those weaknesses and inefficiencies often impact profits, but even more critical is the impact they can have on cash flow.

When cash flow suffers, a business gets squeezed for working capital. Making payroll, buying raw materials, and paying operating expenses becomes difficult. During particularly vicious downturns, vendors and banks are less likely to grant credit and loans, making cash flow even more difficult.

Most business owners are ill-equipped to manage cash flow. They tend to focus more on profits, underestimating the importance of cash flow until trouble develops. Additionally, business owners are often at a loss trying to figure out solutions for their cash flow problems. Without expert help they cast about for answers and grow frustrated when the answers are not easily found.

The answers to their cash flow questions may be as close as their accountant’s office. Accountants with small business experience can often point out weaknesses and inefficiencies in a business with some quick financial statement analysis.

Accountants who also have business consulting experience can provide valuable insights into the problems in the business that are causing cash flow problems.

A recent study conducted by FSB and Zogby International found that 70% of the small business owners surveyed either don’t have an accountant or get little help from their accountant in identifying strategies for improving cash flow or profits. Why the disconnect? What keeps small business owners from consulting a valuable resource that can help solve business problems?

Small business owners have shared some of the following reasons:

Lack of understanding of the importance of having an accountant—in the minds of many business owners accountants exist for the sole purpose of preparing their taxes.
Fear of looking “dumb” by asking questions.
Fear of not understanding the answers to questions, again feeling “dumb.”
Don’t want to “disturb” the accountant with questions.
Fear that the meter starts running as soon as the accountant picks up the phone.

Perhaps the most troubling disconnect is that often accountants don’t understand how to improve cash flow in their clients’ businesses. Small business consulting and accounting are two very different specialties. Some areas of overlap exist between the two, namely the financial pieces, but often cash flow problems are caused by a lack of a good marketing plan, under pricing, or a multitude of other management issues that have little to do with accounting.

Accountants can help business owners by defining exactly how the accountant can help, providing educational resources, and stressing the importance of managing cash flow. It isn’t necessary for an accountant to be a master of all the skills needed to create a successful business. For example, an accountant who lacks marketing expertise can offer referrals to experts or recommend marketing books. Serving as a resource for small business owners rather than being someone who “just does taxes” opens the door to both a stronger relationship with clients who build stronger businesses and the opportunity for additional revenue streams for the accountant over the life time of that relationship.

Is It Time for Your Business to Grow Up and Leave Home?

2009-01-28T14:38:00.000-08:00

When starting a new business, working from a home office is often a great choice. It allows business owners to keep expenses low, avoid the time and cost of a commute, and gives flexibility to work around personal time, family life, and volunteer work. With all the benefits of working at home, who would ever think of throwing the business out of the nest?

Working from home, unfortunately, isn’t always the paradise-on-earth that our cubicle-dwelling friends may think it is. It has its drawbacks.

1. Lack of boundaries. Kids. Spouses. Neighbors. Friends. Family. It’s so great that you’re home all day and have time to take care of all the day-to-day tasks—read a story to a bored toddler, walk the dog, clean the bathroom, take the cat to the vet, take care of sick kids, etc. This list of tasks may well be followed by the question “Are you going to work all night, again?” Oh, they mean no harm and you’re happy to help out but how in the world will you find time to work?

2. Space. It started out with a computer in the corner of the spare bedroom. Then, your business needed some inventory storage, too. Bookshelves. Filing cabinets. Stacks upon stacks of paper. Before you knew it your business spilled out of the spare bedroom, slunk down the hall to the dining room table, took over the basement, and like some strange ooze it’s heading for the garage next. Then, add in an employee or two to the mix.

3. Multi-tasking. It’s great to work at home. You can change a diaper, talk to a customer on the phone, order supplies on the internet, check your email, and do your ironing, all the while working on a project deadline. At some point multi-tasking becomes entrepreneurial attention deficit disorder. You’re pulled in so many directions you bump into yourself in the hallway. Sometimes being able to focus just on the work you need to complete rather than trying to multi-task gets the job done sooner and better.

4. Productivity. You set your goals for the week, work long hours, and then look back to see you haven’t accomplished any of the goals you set out to accomplish. Where did the time go?

5. Isolation. Do you thrive on the solitude that a home office can offer or do you need the stimulation of being around others to get your wheels turning and your productivity into high gear? Home offices lack the repartee of companions and the synergy of combined thoughts.

When your business reaches a point where it either takes over your home life completely or it gets completely squeezed out by time pressures, it may be time to make a change. If you are committed to making a home office work, it’s a matter of re-thinking the way things are set up now.

Stepping back and looking at the entire situation from different viewpoints helps to sort out the problem areas. Think about what is best for the business and what is best for you, personally. It may be possible to change some aspects of your home office to make it work better for you. Some areas to consider would be solving child care issues, setting boundaries for family members, having a weekly meeting with other entrepreneurs, finding storage for inventory, blocking out time each day to devote to nothing but business. Sometimes it’s a matter of fine tuning what you already have in place.

If you are open to the idea of moving your business, ask yourself these questions before making that decision.

*Is business growth and development being held back by operating from a home office?
*Will your business be financially able to meet a regular monthly rent payment?
*Will moving to another location help or hurt your family situation?
*How will moving your business to a new location change your life and business for better or worse?

Finally, picture what your life might look like after you move your business. What will it feel like going to an office regularly? What will you be doing differently to grow your business? How will your family adjust? For some business owners, kicking their businesses out of the house can be the perfect catalyst for creating a more successful business.

The Economy is a Convenient Scapegoat for Small Business Woes

2009-01-23T06:27:00.000-08:00

Main Street Vacancies on the Rise reads the headline in my hometown paper. One business closing, one business shutting down for the winter, empty buildings on Main Street. It’s a common tale these days. That darned economy is taking all the fun out of small business ownership.

The florist shop closes, citing competition from the new supermarket and people having to choose between gas money or flower money. The lobster restaurant shuts down for the winter claiming that the townspeople aren’t supporting them. They can only rely on the summer people.

The news isn’t all bad though, there on my favorite American Main Street. An existing supermarket is holding its own against the newcomer. A new art gallery has opened. A gift shop is expanding. The new movie theater and pub is holding its own. A beauty shop is adding booths. The Maine-owned discount store doubled its space and increased its offerings.

As an entrepreneur, the question that comes to my mind is always the same. Why? Why is one business closing while another expands? Why is one business able to compete while another is not? Why is one business supported by the locals and another is not?

In fact, asking why may be a business owner’s most important job function. Keep asking the question and you’re bound to get answers and more questions. What could the florist shop have done differently? Why is the gift shop able to expand? What are the owners of the new art gallery doing to draw in business? What can I do in my business to win over the locals, the summer people, other business owners? What other markets can I tap into to sell my product or service?

It’s easy to blame all small business woes on the economy but the truth of the matter is that many small businesses were struggling during the boom times. The economic doldrums may offer the final coup de grace, but the fatal problems were already there.

This is not a time for business-as-usual, particularly if business-as-usual wasn’t working to begin with. Weak businesses will fail in a bad economy. Strong businesses will seize opportunities, look for unfilled niches, and employ good marketing tactics to survive the tough economy.

7 Strategies for Keeping Cash Flow Positive During Tough Economic Times

2009-01-02T12:43:00.000-08:00

For small businesses, cash flow is always a critical element. During tough economic times, cash flow will be the difference between success and failure. Here are seven proven strategies to keep cash flowing:

1. Rein in those receivables. Cash flow is tight for most businesses right now. Allowing customers to use your business as a bank is a surefire road to cash flow difficulties. Start calling your customer as soon as an invoice gets overdue. The longer you wait, the less likely you’ll get paid. Be the world’s squeakiest wheel.

2. Plug up the leaks that drain cash from your business. Remember frugality? We practiced it at home growing up. Turn off lights, turn the heat back, cancel subscriptions for publications no one reads, shop for insurance, shop for phone service. There is no better time than now to get a better deal.

3. Defer expenses or buy like crazy? How and where you spend your precious cash is a huge decision. Do you really need to purchase items now? On the other hand, with all the great deals available, maybe this is the time to buy. The decision to buy or not to buy should be made carefully. Sure, you can get some great deals but every dollar you spend is a dollar you don’t have. Choose wisely.

4. Look for evergreen opportunities. Sales of luxury goods are down but psychics and astrologers are seeing record sales. Even during economic downturns, there are businesses that find opportunities and thrive. One of the great things about small businesses is we’re nimble, we’re agile, we can turn our businesses on a dime. Look for the silver linings that hold promise during a tough economy.

5. Stay on top of your cash flow forecast. You do have one, right? Keep it updated. When are you expecting cash and when do you need cash to pay your obligations? Timing is critical and you’ll have a tough time managing cash flow without a forecast. (For a cash flow forecast template go to www.CashFlowRollerCoaster.com and click on Cash Flow Tools.)

6. Take a look at your budget. Now is the time to take a good hard look at your budget to make adjustments. Do you need to lower your sales expectations? Do you need to see where you can cut expenses?

7. Increase your marketing activities. This is not the time to stop marketing. This is the time to market like crazy. And no, marketing doesn’t have to be expensive. This is make or break time for small businesses. Those business owners who understand and apply good marketing tactics have the advantage.

A Captivating Experience...Day Three...Food Running Low...Must Preserve My Strength...gasp!

2008-05-24T11:17:00.000-07:00

It started innocently enough. My internet connection got a bit erratic. No big deal. I focused instead on work that didn’t involve the internet. After several days of an unreliable connection, I figured I’d have to make the dreaded call. The cable company. How I hate calling them. Press 1 if you want to waste your whole day. Press 2 if you want to waste your whole week. Press 3 if you’d like to be massively inconvenienced.

Surprisingly, I didn’t wait long for a customer support person. He offered to set me up with an appointment the next day (Saturday) or Sunday. We settled on Monday. So far, so good. I planned to be in my office all day Monday. On Monday, the sun rose and set with nary a sight of the expected “cable guy.”

Tuesday morning I called the cable company again. The customer service representative looked up my account and asked, “Why didn’t that get forced?” Don’t you love it when someone talks jargon to you. Makes you feel all warm and fuzzy. Turns out due to a clerical error, my order was entered but never communicated. The customer service rep apologized and then proceeded to tell me all about how he needed new glasses. His old way of dealing with his eye problems was to get progressively larger television sets but he thinks he’s finally gotten to the point where new glasses are the only answer.

Well, my sight-challenged new friend, who had to be continually brought back into focus on my problem, told me that they’d try to get someone out on Tuesday if possible and if not Tuesday, definitely on Wednesday. So, Tuesday became another wait-and-see day where I waited around for the cable guy. No, I never did see him.

The sun rose on Wednesday, and I, still resting lightly in the arms of optimism, figured I would be top of the list for Wednesday morning. Oh, sweet, foolish dreamer. Lunch time came and no cable guy. A cursory glance in the fridge revealed scant pickings for lunch. I began to wonder if anyone had ever starved to death while waiting for the cable guy. Still, clinging to hope, I thought, “He’ll be here right after lunch.” I ask you, at what point does optimism take the tumble into harebrained foolishness?

By then, I’d come to realize that cable technicians are like plumbers, mythical beasts who live in enchanted forests and are seldom seen and hard to find. Meanwhile, across town, my mother was wondering if she’d be able to keep that appointment that I promised her I’d drive her to. I picked up the phone and made the third call to the cable company. “When will he be here?” I ask. “We don’t know,” the reply. Anytime between now and 7 p.m. I explained the appointment quandary. The customer service representative said, “Why do I always get these calls?” (You mean, customer service calls? Gee, go figure!)

It seems that there is no way to find or contact these mythical beasts we know as “cable guys.” Apparently in the enchanted forest there are no cell phones. Through some sort of magic, within minutes of hanging up with the cable company, the technician called me to let me know he was on his way. Twenty minutes later, there he was, riding into my driveway on a unicorn. He waved his magic wand and the problem was fixed. Then, he disappeared in a flash of white smoke back to the enchanted forest.

Which leads me to some rather pressing questions. Why do some companies think that it is perfectly acceptable to ask a customer to wait for a technician for three days straight with no definite time? What do people with regular jobs do when a situation like this occurs? Has anyone been fired because they were trapped at home waiting for a cable technician? And the most important question…how can we as small business owners use this to our advantage?

If you’re in an industry that has a nasty reputation for horrible customer service, it’s very easy to become a standout by doing the opposite of what people expect. If you’re writing marketing copy, you focus on what you do that no one else is doing and tell your customers about it. “We won’t keep you hanging like the cable company.” If you’re looking for new business opportunities, find out what really bugs people and provide a solution in a way that gives them value, and you improved cash flow.

That’s Business 101. A class I’d love to teach at Cable U. Of course, I can’t find Cable U. It disappeared behind an eerie thicket of thorns and lies waiting to be re-discovered by some brave adventurer with an industrial strength weed whacker.

For more tips and articles visit www.CashFlowRollerCoaster.com

Thinking Outside the Lobster Trap

2008-05-18T11:15:00.000-07:00

When people think of Maine, they think lobster. When Mainers think of lobster, they think “industry in trouble.” High fuel costs, boat maintenance, shifting prices, and a natural resource and a way of life in danger of disappearing. Lobstermen and women in Maine are known for their hardiness and work ethic. They are the quintessential Mainers—rough-hewn from the very granite of our rocky coast. And engaged in the fight of their lives as they try to survive working in a traditional Maine industry. An entire way of life, centuries old, clinging as tenaciously as a barnacle to the hull of a lobster boat.

And then, two brothers, life-long lobstermen, took a look at the industry from outside of the lobster trap. Brendan and John Ready saw a market for a different kind of business. The brothers founded Catch a Piece of Maine, an off shoot of their seafood business. For a premium price, customers can partner with the lobstermen. Customers pay $2,995 for a trap and lobsters caught in that trap during the season are shipped to the customer (or the customer’s Great Aunt Tammy). Every lobster harvest shipped includes the following:

4: 1 1/2 lb. hard shell lobsters caught from your private lobsterman
1 lb. Maine steamers dug by a real Maine clam digger
1 lb. Maine Mussels harvested by a Maine Mussel grower
4 servings Maine made desserts from local purveyors (blueberry brownies, Maine whoopee pies,..)
Lobster Bibs, cooking instructions and recipes, utensils, wet-naps, & sea salt
A photograph and story about your private lobsterman and a map detailing where the lobsters were caught.
A personalized gift message and the DVD about the lobstermen showing your support of the working waterfront and the values associated with Maine (should you choose to send any of your lobsters as gifts).
Next day shipping throughout the entire continental U.S. is included.

Online tracking of your trap is also offered making it a fun activity for the whole family. The company also donates 10% of the profits to Gulf of Maine Research Institute to fund educational programs for Maine school children. Check out their website at www.catchapieceofmaine.com. Notice how they brought other Maine businesses along with them…clam diggers, mussel growers, dessert makers, bib makers, etc.

The outside-of-the-trap innovation has proved attractive to the corporate and business gift market as well as with “foodies.” It has also earned the brothers the title of National Young Entrepreneurs of the Year from the Small Business Administration. An award well-deserved.

Time to put on your thinking cap and start thinking outside the trap for your own business. How can you take a traditional industry and turn it into a more profitable, more enjoyable, more passionate undertaking?

For more tips and articles visit www.CashFlowRollerCoaster.com.

Cash Flow Puzzler--From the Cold Case Files of Caroline Jordan

2008-04-25T11:08:00.000-07:00

The name’s Jordan, Caroline Jordan. They call me the Cash Flow Master. I’ve got a case to crack. You could call it the Case of the Hand in the Cookie Jar. My client is struggling to make payroll. Struggling to get product from his vendors. Struggling to meet loan payments. Living off customer deposits. The business used to be healthy. Used to have cash reserves. Now? Different story. This business is flirtin’ with disaster.

The business passed from father to son. Dad left a healthy business with good credit and a cash reserve. The new owner (formerly a salesman with the company) immediately began drawing an executive salary. Hired his wife to answer phones and do office work, paid her an executive salary, too. A business owner can’t be seen driving anything less than a Mercedes and the wife needs a Volvo Cross Country wagon. An executive-style house on the right side of the tracks is necessary to maintain that aura of success. Vacations in Aspen, Europe, Florida. All part of the package. Hmmm, where to get the funds to pay for all that?

Well, the company of course.

Before long, Dad’s cash reserves are gone, an additional business credit line has been opened and exhausted, vendors are screaming, and employees’ checks are in danger of bouncing.
Can the Cash Flow Master save the day?

Wish I could say, “Of course.” But some cases can’t be solved and some businesses can’t be saved. If the guy (or gal) sitting in the big chair can’t see the error of his wanton financial ways, the business doesn’t stand much of a chance. The Cash Flow Master stands alone like the small child who pointed out that the Emperor has no clothes.

For more tips and articles visit www.CashFlowRollerCoaster.com.

How One Local Business Creates Happy Campers

2008-04-24T11:05:00.000-07:00

It’s springtime and a girl’s thoughts turn to...hooking up the RV and getting out of Dodge. The RV dealers are helping to introduce those thoughts into the minds of all of us here in the still-frozen North. They’re running advertisements, inviting folks to stop by, and running sales. Can camping season be far away?

When we bought our RV we went to two local dealers within an hour’s drive. Dealership #1 had acres of RV’s to see but in the showroom not one sales rep paid a bit of attention to us—too busy talking amongst themselves. Dealership #2 Call of the Wild in Oxford, Maine had acres of RV’s, too, but offered a major difference over Dealership #1. Rick, the sales rep. Rick gave us a tour of every RV we wanted to see, explained the differences in models to two neophyte RV’ers, helped us narrow down our search, and knew exactly where on the lot to find the RV’s that fit our needs. When we’d made our choice, Call of the Wild was able to make financing easy by offering in store financing through a local bank at an excellent term and rate.

When we picked up our RV we were given in depth training and demonstrations by technicians in the service department. They even delivered the RV for us. A few days later we received a package in the mail containing a large water jug and some fresh chocolate chip cookies. We also received a thank you card. One year after our purchase we received a card from Call of the Wild thanking us again. Need parts or accessories? They’ve got that, too. Question about an RV issue? Drop by Call of the Wild. Need a dumping station after a trip? Got it.

Lots of Smart Business going on! And another great example of creating a customer experience. It will be years before we buy another RV so why does Call of the Wild do all this? Happy campers tell their friends.

For more tips and articles visit www.CashFlowRollerCoaster.com.

The Mammoth, the Dodo Bird, the Dinosaur...Is Common Sense Next?

2008-04-18T11:01:00.000-07:00

I recently paid a visit to a local “Everything’s a Buck” store to pick up a stack of greeting cards for church. When I got to the checkout, I noticed a sign saying “We accept VISA.” Great! Often those Dollar stores don’t take credit cards because of the fees charged by the bank. That meant customers needed cash or a check to purchase merchandise.

I said to the cashier, “Do you take Mastercard as well as VISA?” “Yes,” she replied. I ran my card through the card swipe and got an error message. The cashier cleared the machine and had me run the card again. Another error message. She cleared the machine again and had me run the card. Once again, an error message appeared. We did this once more, still no luck.
She had me hand her my card. She looked at it and said, “Do you have another way to pay for this? We don’t take Mastercard.”

I calmly asked (honest, I was calm), “So the part where I asked if you take Mastercard…?” “Oh,” she said, “I thought you said Discover.” I asked, “Do you take Discover?” The reply, “No, just VISA and debit cards.”

Now, here comes the really scary part...She turned to the new cashier she was TRAINING and said, “It’s really important that you listen to the customer.” No kidding!

Okay, okay, so I understand that maybe the thought of working at the dollar store won’t attract the best and the brightest of applicants. If you’re looking to go to an Ivy League college, it’s not the best resume item. And I know it’s tiresome having to answer the same completely obvious question over and over again…”How much is this?”. But come on people, give me a break!

Poor customer service, unfortunately, isn’t hermetically sealed into “Everything’s a Buck.” It creeps out the door and ends up in restaurants, offices, auto repair shops, and doctor’s offices. Poor customer service has become the norm. And, there is a direct correlation between the growth of poor customer service and the decline of common sense.Businesses need customers. Businesses with employees need sales to cover payroll. Treating customers as an easily replaced commodity creates a business environment that’s sure to create a drop in sales resulting in Cash Flow Extinction.

Poor customer service kills small business’s greatest advantages. Let’s take the local hardware store as an example. Hemmed in on all sides by big box competitors, Ye Olde Hardware store can’t compete on price. There’s got to be something else that cause customers to bypass the big box and shop at Ye Olde instead.

If you add to Ye Olde’s troubles by offering poor customer service, the business environment gets really tough. You’ve removed the strongest advantage a small business or professional practice can offer. Along the rocky road, customers leave, business drops off, and the business slides deep into the Cash Flow Swamp.

The flip side of that slimy, algae-covered scenario is this. Use customer service (and well-trained customer service people) as your number one best business practice and you set yourself at least one giant step above your competition.

Then, if you can train your employees to become excellent helpful and suggesting salespeople (Think “Do you want fries with that?”) now we’re approaching something that resembles improved cash flow.

And by the way, excellent customer care is a perfect justification for charging higher prices. Let’s use a day spa as an example. The drugstore and department store shelves are lined with products to make you look younger, feel better, have fewer wrinkles, etc. For eight bucks you can get yourself an at-home beauty treatment guaranteed to take years off your face. Yet, spas attract hordes of people looking for the same results while they’re paying way more than eight bucks.

Why is that? Spending the day at a spa goes far beyond slapping some goop on your face in your bathroom while your kids are knocking at the door and your husband wants to know if you’ve seen his other black sock Spas create a customer experience, a sense of pampering and care that no mere jar on a shelf can ever offer.

Creating a customer experience can be done in any business. Consider the auto repair shop that advertised to women. Women could come to the repair shop and not worry about getting taken advantage of. Terrific. Almost. When the women arrived to get their cars fixed, guess what they found? A dirty, greasy waiting room, hunting and fishing magazines on the banged up coffee table, calendars with bikini-clad models, and a bathroom that encouraged women to say, “I’ll wait til I get home.”. A consultant set the business owner straight and the waiting area was transformed. The business prospered. It’s all in the details. A well-created customer experience changes your customer’s perception from thinking that your business should be selling “Everything for a Buck.”

For more tips and articles visit www.CashFlowRollerCoaster.com.

Cash Flow Puzzler--The Case of the Pointing Fingers

2008-03-30T11:11:00.000-07:00

The name’s Jordan, Caroline Jordan. They call me the Cash Flow Master. I stepped out of my neatly organized office where there’s a place for everything and everything’s in its place, the pencils are always sharpened perfectly, and my hair is always neatly in place (Hey, it’s my story, I can tell it however I want!) It was a bright sunny day and I was on a mission. To discover the cause of cash flow problems in a company I’ll call “X”. “X” for Extremely messed up. “X” for Excruciating. This could be my toughest case yet.

It’s a father and son deal. Dad has built the business from scratch. He wants to retire. He tries to retire. He keeps trying to retire. The son wants to take over. Wants to take the business in a new direction. The problem as they see it—cash flow. If only they had it Dad can retire and Son can take the business in a new direction. Dad says it’s Son’s fault. Son says it’s Dad’s fault. My diagnosis: They’re both right.

The first step—a little cash flow archaeology dig. When did the problems start? An analysis of accounting records is revealing. “Hmmm,” I say, “Interesting.” It seems Dad’s been propping up the business with his own funds for years. Cash Flow gets tight, the old man makes a deposit. Problem solved...or is it?

Then, Sonny starts ordering inventory for the new direction he wants to take the business. Pop doesn’t want to sink his retirement funds into the new venture. Cash Flow dries up. Fisticuffs ensue.

Meanwhile, customers are calling to complain because the service technician didn’t show up, products haven’t arrived because of a credit hold with the vendor, the receptionist is overwhelmed with calls from bill collectors, and the service technicians are standing in the warehouse smoking and talking about how screwed up everything is.

“Let’s take a look at your business plan,” I say.

“Hang on,” I’m told. “It’s in the safe,” says Dad. “No wait,” he says, “Maybe it’s on my bookshelf.”

“We have a business plan?” says Sonny.

I nod wisely. Stroke my chin. Once again, I’ve cracked the case. Cash Flow isn’t the problem. Cash Flow is a symptom of underlying business problems. The first step is understanding that. The second step is to stop blaming other forces and start solving the real problems. I roll up my sleeves...

For more tips and articles visit www.CashFlowRollerCoaster.com.

March Madness? Mad as a March Hare? Mad as a Hatter? I’m Beginning to Understand !

2008-03-24T10:51:00.000-07:00

I’ve been humming a song lately. An old Jimmy Buffet tune called Boat Drinks. It goes something like this:

Lately, newspaper mentioned cheap air fare
I gotta to fly to saint somewhereI’m close to bodily harm…
...This morning, I shot six holes in my freezer
I think I’ve got cabin feverSomebody sound the alarm

My friends here in Maine know exactly what I’m talking about. For my friends “from away”, let me set the scene—every Wednesday and Saturday since the first of December, we get a boatload of snow dropped on our roads, driveways, and roofs. This is followed by plowing, sanding, and roof shoveling. And whimpering. Lots of whimpering. As soon as that’s done (or sooner) it’s Lather, Rinse, Repeat. We’ve had something like twelve feet of snow in three months. Even the teetotalers are starting to yell for “Boat Drinks.”

Even the hardiest of souls has a pinched look about them. Schedules have been thrown into disarray as cancellations and poor road conditions frustrate us all. Even the kids have come to realize that too many snow days has an unpleasant side effect—school may last until 4th of July this year.

What's all this have to do with cash flow, you might ask? Absolutely everything, I might reply.

For starters, this incredibly snowy winter has created a strain on many small business budgets. Those who have a contract for plowing are making out okay because the contract price covers all those storms. Those who are paying by storm for their plowing, shoveling, and sanding are taking a big hit to the plowing expense line. The other downside is that because traveling has been treacherous, sales are down for businesses that count on foot traffic.

The ripple effect of a downturn in business is being felt now at the state level. Maine is struggling to deal with a large decrease in expected tax revenues as well as added costs for keeping state roads cleared. At the local government level, towns and cities are struggling with the added burden of overtime pay for plow drivers, funds needed for additional loads of sand and salt, and more neighbors who can’t afford to keep their homes warm and their roofs shoveled.
In short, it’s been a long winter.

But here’s the bright side of all that snow. Every able bodied person who wants work has more than they can handle. If you’ve got a shovel and you know how to use it, you’re very popular. If you’ve got a pickup with a plow, you’re a golden child. If you’ve got a tractor, you approach the status of demigod.

Another benefit of all this snow...if you’re a chiropractor or a massage therapist this is a great time to offer your help to all of us whose backs are breaking.

If you’re in any type of entertainment or restaurant business, it’s a great time to offer relief for cabin fever.

Those who offer tanning can benefit by offering a vacation “experience” without leaving the state. Salons and spas can benefit by offering a pampering experience to get you through the winter doldrums.

Weight loss products? Now’s the time to start dreaming of bikini weather.

Travel agencies can offer that Buffett trip to “Saint Somewhere.”

Mechanics can start talking about getting your car aligned when the frost heaves and pot holes settle down.

Insurance agents can help their clients by compiling a list of recommended roof shovelers and by giving their clients information about the importance of keeping your roof shoveled, how the weight of snow effects your roof, how much a foot of snow weighs, safety tips, etc.

Those who own plant nurseries, seed companies, hardware stores, landscaping companies can start talking about the approaching gardening season. Florists can offer a touch of spring with daffodils, hyacinths, and tulips.

Mental health professionals can offer tips on coping with the dark days of winter, articles dealing with winter depression, “Top 10 Tips to Boost Your Mood”, “Seasonal Affective Disorder and You”, etc.

Veterinarians can talk about keeping your animals safe during the winter. Businesses specializing in wildlife products and services can talk about keeping back yard bird feeders filled or the effect of a deep snow pack on the deer herd.

What if your business isn’t in the snow belt? Can you still turn snow into cash? Absolutely! All you have to do is send me a plane ticket and I’ll be happy to come help you out!

For more tips and articles visit www.CashFlowRollerCoaster.com.

Portland Flower Show Offers Hope of Spring to Weary Mainers

2008-03-18T10:59:00.000-07:00

The 2008 Portland Flower Show is underway here in Maine. It’s not just some pretty flowers either. It’s a great example of Smart Business in action. First of all, timing is everything with this show. Here we are buried under twelve feet of snow, desperate for spring, and the nice folks at the Portland Flower Show open their doors and invite us into a world full of color and fragrance. It’s heady stuff! Crowds flock. Wallets open. And the sweet sound of cash registers fills the air.

Landscapers, nursery owners, pool and spa companies, a local book store, a caterer, a local musical group, seed companies, hardscape companies, herbalists, garden furniture, garden related gifts, garden tools, tractor sellers, tree removal companies, even a candy company with flower-related candies. The list is almost endless.

Many of these companies won’t make a dime at the show but the smart ones will capture the names and addresses of those who stop by their booths. Can follow up contact be far behind? Trade shows are great opportunities to drum up leads. But be sure to build into your plan a way to capture the names and addresses of those who expressed an interest in what you do. Offer a free report or booklet or CD on a topic of interest. Or a free sample or gift by mail as a thank you for stopping by your booth. Then follow up.

For more tips and articles visit www.CashFlowRollerCoaster.com.