Steve Reports

As a reminder the popular definition of insanity is “doing the same thing over and over and expecting the different  results”. Most companies continue to do business the same way and blame the economy and high gas prices on their declining business results when they should be looking in the mirror. There seems to be a strong undercurrent of “I am waiting for somebody to do something vs. I am responsible.”

The operative word here is most. There are sectors of the economy that have been hit by current conditions. I will leave that analysis to economist and academics. They have a lot more expertise in such matters and enjoy the intellectual debates of cause and effect. I have a laser beam focus on what individual companies can and should be doing to achieve their potential.

I am excluding from this article any company who is in serious cash flow difficulty. When a business gets to that point, crisis management… turnaround expertise is needed. MY firm International Resources does that work and we are very good at it. I always advise if you are in that situation, call me or a firm like mine right now as time is of the essence. My direct line is 727-587-7871.

What are “The 5 Steps To Stop Insane Management From Driving Business Into The Ground?”

1. Have a very clear profit plan at each line item of business performance. Measure actual performance against plan and have clear accountability for achieving the plan line item by line item. To implement this you must have timely, accurate and relevant information. No excuses…must have.

2. When people who are accountable for line item performance consistently fail to meet the stated goals, replace them. Period!

3. The number one function in a business that will be the subject of most of the excuses is sales. These excuses come from people who do not understand how to market to a consumer who places ever increasing importance on relationships. Why do you think the community building sites like YouTube, MySpace and Facebook are in the top ten most highly visited sites globally? According to Alexa, YouTube is 3 , MySpace is 6 and Facebook is 8 ) Every business must have a relationship driven marketing strategy and then implement it. See Relationship Marketing below.

4. Always be evaluating the market including on line competitors. I wonder if Microsoft, Yahoo and AOL in retrospect would have done anything different when Google first came to market?  No company is immune from being seriously weekend by competition. I look at the drugstore landscape. I live in Florida where competition is very active particularly for pharmacy prescriptions. A new format of drugstores was introduced not that long ago by Walgreens, CVS, and others with positioning of buildings with 24 hour drive through pharmacies on high cost real estate. Two things have happened with those changes. Prices skyrocketed to pay for real estate and relationships with the pharmacy customer has almost become extinct. Within this landscape I am aware of several privately held drugstores doing very well because of their attention to customer relationships.

5. Don’t push a boulder up hill. Some companies were never meant to be. People start companies or buy existing companies because they think it is a good idea. The only opinion that matter is the market. If your business was not all that strong in the past and you are basically doing everything right, the best action to stopping the profit leaks may mean closing the doors. If you are not sure Contact Me.

Reality Business: The following examples are taken from just one day’s experiences - today.

1. I was talking with a former client who is now a good friend, who told me they have exposure on a large receivable as it looks like the customer is going out of business. After asking two questions I understood that procedures installed during the consulting project were ignored. Insane management. This happens all the time where people make exceptions to sound business practices and then wonder what went wrong. Follow well founded established policies and procedures without exception. Does that mean nothing will ever go wrong? No, but the surprises will be fewer and far between.

2. During a meeting with a very successful fund manager I asked him if there was any one or two things that he attributes to his success. We were specifically talking about clients who transfer portfolios of $250,000 and higher to him from other firms. He said: “just two things: first I have a “high touch” approach which cements the relationship. The markets have been unforgiving lately. I increase my meetings with clients when competitors are shying away from making calls to people whose portfolios have been hit. Second I have marketing funnel to my target audience that has consistently worked very well.” I am not writing the details as this is proprietary but I will tell you this - you don’t have to be a rocket scientist to figure it out.

3. I was invited to lunch at a very nice restaurant in Tampa. It has a fairly steep price tag for most of the selections. There were many tables available. Like nearly every other restaurant I have ever dined, regardless of price point, when I left they have no idea who I am and have no way of inviting me back. Insane management.

All in one day!!

Relationship Marketing:

I love talking about how easy it is for retail business to install a relationship marketing program. This is actually easy for every company, but most readers can relate to experiences with restaurants, grocery stores, dry cleaners, specialty shops and other retail stores. Just ask yourself when was the last time you received a thank you note, an incentive to come in for a special on a particularly slow day or a brief questionnaire asking you how they can serve you better? It happens. I listened to a story the other night about a business getting a fax every time it rains near the lunch hour from a nearby restaurant saying “It is raining. Our business will be slow today. Come in for a free Taco.”" Of course, nearly everyone will be buying more than one taco. But isn’t that cool and how hard is that to do?

Visit http://www.localretailmarketing.com for an idea on how you can begin strengthening your customer relationships. The information is free. My firm is not if you want us to do it for you. We get it done now which can be very valuable for you.

Accept The Responsibility and Take Action Starting Now!!

Sending all my readers the energy of wellness, happiness and peace.

Steve Pohlit
http://www.stevereports.com

Don’t Miss These Free Reports from my new business consulting site:

The Top 10 Action Stops That Will Make Your Business At Least 50% More Money in 90 Days or Less While You Spending Less Time Working Click Here For The Free Report

The Key Issues That Must Be Addressed Before You Buy Any Business of Any Size. Click Here For The Free Report

Steve is the President of International Business Consulting Resources. His firm specializes in guiding companies to rapid increases in revenue and profits with a sustainable growth rate. Don’t miss my FREE Report: How To Make More Money With Your Business Now and Long Term I am building my practice and welcome new client inquiries. Call me for a fee consultation at 727-587-7871 Remember many of my business building articles can be found at Steve Reports and my prosperity building tool (best tool ever for helping you manifest your goals and dreams) is The Prosperity Tool Chest and guiding articles posted very often at Prosperity Tip

Click Here for the details of this story: In summary, at first glance it appears the company’s success is do to ……let the President Steve Matyas tell it: “It sounds like a cliché, but everything we do is about making shopping easy for our customers. We continually ask ourselves and our customers, ‘What can we do to make shopping with us easy?’”

Specifically what are they doing better than their competition and pay very close attention to this as there are very valuable lessons to be learned:

1. Clearly defined niche - small business owner.

2. Establish a process for staying in touch with their customers and then offering the products and services they want and need. Have you heard the message: find an hungry market already spending money on what you are offering then position your offer better than your competitors?

3. Make is easy for your customers to do business with you. In the article you will notice there are different size store models depending on the market. Staples cannot profitably operate the same store format in all markets because of demographic differences.

4. After following the first three steps they are able to reap the rewards of their focus on “making shopping with us easy” and they know how important it is to have the right employees in their stores to execute on this goal. Notice their emphasis on innovative recruiting to attract people they need for their growing business.

This is a great example and lesson of a business understanding and serving their customer.

Sending all my readers the energy of vibrant health, happiness and prosperity.

Steve Pohlit
http://www.stevereports.com

Steve is the President of International Business Consulting Resources. His firm specializes in guiding companies to rapid increases in revenue and profits with a sustainable growth rate. Don’t miss my FREE Report: How To Make More Money With Your Business Now and Long Term I am building my practice and welcome new client inquiries. Call me for a fee consultation at 727-587-7871 Remember many of my business building articles can be found at Steve Reports and my prosperity building tool (best tool ever for helping you manifest your goals and dreams) is The Prosperity Tool Chest and guiding articles posted very often at Prosperity Tip

Celebrity is defined by Mirriam-Webster as a famous and celebrated person. When I think of a celebrity, I feel that person is known by many people with diverse interests. Celebrities I am aware of generally fall into a perceived niche. Oprah for example promotes many different themes. She is a talk show host. Tony Robbins is a self development guide.

What happens when a celebrity who is well known in a specific area decides they are going to make a huge difference on a related but very distinct area of interest? For example, you are probably aware of several actresses who have increased the awareness in society of orphaned children by their posture and by personally adopting one or more of these children. Now they become well known for their personal interests and beliefs.

I have studied in general what several famous people have done outside of the area for which they became famous. I asked the question: by being famous did these people automatically gain acceptance in another area of personal interest? The answer is no. Even though celebrities have a following, when they move out of their arena of fame for them to be successful with their message they and their message needs to be marketed.

As I have worked through the development of a marketing strategy with a celebrity, I quickly realized that my primary mission was to present a plan that most people could understand. The focal point was the same one that I use with all my business clients. That focal point is simply “what is the goal?”. For business development projects the goal is usually defined as a targeted increase in revenue and profits in first 90 days and the establishment of new processes and procedures to sustain that growth rate. For my celebrity client we agreed on a twelve month measurement of success which is a bit of stretch.

Once there is “buy in” on the goal statement that includes a defined time frame for achievement the steps to achieve that goal can be identified and sequenced. This is no different than my advice to business owners which is the goal that you want to achieve three months or twelve months from now is achieved by what you do each day and each week. We set the goal, we define the steps, we measure actual vs. plan and act on the variances. That’s it.

When you do this kind of work, you learn a lot about the person and their support structure. This is true for a business and for a celebrity. It is natural to want to share this information with others and particularly those close to you. You cannot. The two attributes that are most important when working with anyone are credibility and trust. Your credibility comes from the value you are adding now and not from anything you have done prior. Trust is gained by respecting those areas of the lives of the people you are working with that need to remain private. If they choose to become more transparent with anything that is their call. So it is with my celebrity client. If ever my role is disclosed, it won’t be coming from me.

Sending all my readers the energy of vibrant health, happiness and prosperity.

Steve
http://irconsultinginc.com

Steve is the President of International Business Consulting Resources. His firm specializes in guiding companies and their employees to achieve their highest potential. Many of Steve’s business building articles can be found at Steve Reports and his prosperity building tool is The Prosperity Tool Chest

Email Steve or call him directly at 727-587-7871

I have led companies in the retail, real estate, transportation and restaurant industries from  near catastrophe to stability and profitable growth. Companies find themselves in a dire straits position for a multiple of reasons when the economy is strong as well as weak … more so when weak.

The current business climate is tenuous and an increasing number of businesses find themselves in a profit and cash flow crunch. If you or someone you know is in that position, time is of the essence. Literally every hour that passes is critical when a company’s profit and cash flow are on a downward trend. The faster action is taken to restore the business to a positive cash flow position, the more likely it can be further strengthened to renewed profitable growth.

The following steps are the major ones that I have guided clients through who have been in this situation:

1. Stop issuing checks until Step 2 and Step 3 are completed. The exception would be payroll and any utilities if you are at the point of being shut off if the bill is not paid. If you have a trucking company you have to buy fuel. If you are a restaurant you have to buy food. If you don’t have the funds to pay “life support costs and expenses” there are still options but they would have to be addressed on a case by case basis. You want to avoid getting to the point of not being able to pay the must have expenses.  There is a wide variation of the definition of must have items. The clients I have helped were very surprised at the literal definition of “must haves” but they thanked me later.

2. Be certain as to your exact cash and liquidity position. You need a very accurate snapshot of the free cash in your bank account, the quality of accounts receivables and a precise accounts payable listing that includes all invoices. You would be surprised as to how many companies do not know their actual cash position, ignore problems in their accounts receivable balances and forget that oftentimes there are bills sitting in unopened mail and desk drawers.

3. Develop an eight week cash receipts and disbursements forecast and don’t leave one cent off of the disbursements list. If you are not sure how to do this, there is an example at 10 Minute MBA This is a core schedule that I implement with all clients and is very valuable when used properly.

4. Document an organization chart with each person’s position and compensation.

5. If the business sells a physical product, it is important to evaluate the inventory. You cannot sell what you don’t have and you can’t replenish inventory if vendors have shut you off.

6. If there are debt agreements in place understand all debt compliance covenants.

7. Identify all critical support functions. For example, the company’s internet connection, maintenance agreements on machinery and equipment and key licensing agreements if any.

The goal is to have an accurate picture of all the facts no matter how dismal they are. I can’t tell you how many times I have been blind sided by additional pieces of information that were very important in finalizing the turnaround plan.

What Actions Are Typically Taken Once There Is An Accurate Picture of Situation?

1. Cut all non- essential spending and payroll.

2. Implement a temporary reduction in pay for as many people as possible. That is always difficult and may be impractical if there is a union or a large hourly workforce. Every situation is different but normally payroll has to be cut and it is often delegated to the outside consultant to handle.

Note: many of these steps are implemented quickly. Even while the entire picture is still being developed. That is where experience with these situations is very valuable. Experts with turnaround experience know how and where to act fast.

3. With people you want to take the action one time and then meet with those that remain and explain to them what is going on and how it is going to be fixed.

4. Vendors on the accounts payable list will need to be called and given a date when they can expect a workout plan. This is not fun work even for an expert consultant. However, whatever needs to be done to save the business and restore profitability should be addressed.

5. If there is a sales staff, look to move those people to full commission status and if possible add to the staff with full commission as the compensation package. Be careful if out of pocket expenses are paid. They have to be limited and per diems in place.

6. Assign clear accountability for collecting receivables and put in place a three step collection process. In certain cases discounts are negotiated for paying early.

Notice all the emphasis at this point is on cutting expenses and build cash once that process is in place then

Work on your building business and profits plan. Make sure it is realistic and focused on the next 90-180 days. When that is drafted including the financial projections you are now in a position to negotiate with bank debt holders, capital equipment lease venders and other long term lease agreements in place.

Some clients may need to file for chapter 11 reorganization. This should be avoided at all costs since it is very expensive, time consuming and a major distraction. However sometimes it is the only available option other than shutting your doors. Chapter 11 is usually the best answer where selling assets, selling the business or parts of the business is part of the the turnaround plan.

I hope this helps and while it addresses many points there are always more depending on the business. The following is right from my Turnaround Consulting Site

Do you worry about running out of cash?
Do most of your key vendors have you on COD?
Have checks issued by your business bounced?
Are revenue trends decreasing and accounts payable increasing?
Have any of your valued employees left for a “better opportunity”?
Are you spending all of your time fighting fires?
Do you wake up at night fearing you will be out of business?
Do you fear you will not have enough cash to meet your next payroll? What about the next?
Are you thinking or have been advised that a reorganization of your business under Chapter 11 of the US Bankruptcy code may be the answer?

“If You Answered Yes To More Than One of These Questions, Then You Need To Call Steve Pohlit at 727-587-7871 Right Now. That Is My Direct Line. I Will Personally Determine If I Can Help You Solve Your Business Problems or Refer You To Someone Who Can. This Call Will Cost You Nothing and May Well Save Your Company.”

____________________________________________________________________

There are two reasons why companies ask me for business consulting assistance:
1. They know what to do but want an independent third party experienced business development consultant to drive the process as that approach demonstrates management’s commitment to achieving the goals.
2. Management understands the need for improved performance and understands they do not have the experience to implement what is required.
3. There is actually a third reason and that is where a business is in a crises situation and turnaround business consulting procedures need to be implemented fast. Nobody likes that situation, even the consultant. However, many companies can be salvaged with the right action. Think of the what goes into action when a person has a heart attack. Timing and action are the differences between life and death.

Be Well and Prosper,
Steve Pohlit
Business Development Consulting
Steve Pohlit has more than 20 years experience running very large and medium sized companies. Steve consults with clients to design and implement processes that will deliver improved business performance for the long term. Learn more about the process of Increasing Profits by 30% or More In 90 Days or Less by visiting 10 Minute MBA or you can call 727-587-7871 and speak with Steve directly. Have a question? Click Here To Visit Ask The Consultant

Situation Room:

Revenues nearly doubled in one year to more than $14 million. Profits hardly moved from the previous year which and those profits barely broke $0. When I reviewed this information with the founder of the business, he looked me directly and sternly in the eye and said “That’s Not Good!” We then went onto discuss the changes being implemented to posture the company for making money.

Today

Are those changes working? Too early to tell because I know from experience many companies never continue following what they are taught. They revert to the “way they have done business in the past.”

I am a business development consultant. I am not a permanent fixture in companies I help. I have a long list of companies that are successful. I have a shorter list of companies that are not. What is the difference?

Commitment!! If I show you “How To Increase Profits by 30% or More In 90 Days or Less” and that happens, you are happy. When I tell you what we just did must continue each day, week and month, you begin to think about what you have to do to make that happen and some people conclude they do not want to do that work. They would rather settle for mediocrity.

The Solution

It is harder to continue losing money than it is to make money. Think about it. When you are losing money, you not only have the work to do but you also have the draining worries associated with losing money. How do you think I know that? The solution is to make up your mind to be prosperous.

Now assuming you are losing money or not making the money you want, how do you change that? The companies I work with follow a proven program for success. How do I know? It has taken quite a bit of time and experience to identify the fundamentals of running a business that everyone can follow each day. Part of the experience was finding the people who run successful companies.

If you are using the Internet as part of your marketing strategy, who are you following. Right up front: don’t follow me except when it comes to blogs then read my Blogging for Profit Series - it will help you. So who should you follow? I pay attention to people who are obviously successful. When I met John Reese and had my picture taken with him outside his Lamborghini I knew he had achieved a measure of success and was delighted to have that opportunity of meeting him. He was gracious is very focused on sharing what works for him. John understands there are not limits to the amount of money in the world and if John Reese makes $20 or $200 or $2000 million, there are still millions and even more you can make. I highly recommend John’s material.

In 1990. I was in Aspen Colorado at a three day summit for people running companies owned by an investment firm. The hosts of that meeting were two brothers whose net worth was at least multiple billions of dollars (yes that is a B). The learning curve for me at that time was fast and furious. I learned very successful people have a very clear definition of their business, the direction of their business and profit goals are clearly defined and the support structure necessary to achieve their business goals is soundly in place.

To The Point

Today at the start of every consulting project I reach agreement with the owners and management team on the definition of their business and the near term revenue and profit goals. We then move onto growth rates and setting the procedures and processes in place for achieving those goals.

This process is provided to everyone interested in the complimentary mini-course How To Increase Profits by 30% or More In 90 Days or Less (Register Here). This course is as relevant for internet marketers as it is for billion dollar companies.

It all starts with a clear definition of what you want and what you are prepared to do. Once you decide, follow a proven roadmap. Do you think it is coincidence this blog is named “Roadmap To Extraordinary Profits”? By the way, over time certain of the tools and techniques used in achieving extraordinary profits are refined. Like you I pay close attention to the tools and techniques developed by experts to help your business. I frequently mention the people who continue to help me with their training. The experts on my list are there because they help me based on my interests and my intent on using what I learn for myself and clients.

For those who say their business is Internet marketing I say your business has to be more clearly defined. Ed Dale is applying “the buy em and flip em model” for web sites and has evolved from a number of business models. I think Ed has a clear definition of his business but I can’t define it. Brad Fallon has a very traditional business model with search engine optimization as the engine. Frank Kern who may be an idiot savant, has a clear business model of monetizing small niche markets. Dan Kennedy is a copywriter and direct response marketing guru. Bill Glazer is an information marketer. Dan and Bill also run the college of direct response marketing through their newsletters, seminars and information products. Ken McCarthy is an educator. His System Seminar teaches people. Ken spends some of his time and resources on non-direct teaching but he loves to teach and does a great job doing so. I could go on but you get the point. Look at any person that you view as success and generally what business they are in is clear. Don’t reinvent the wheel. Have a clear definition of your business and a clear measurable goal for your business. Then measure the progress frequently.

I cannot emphasize enough the importance of measuring progress frequently . I develop a key factors report for every company I work with that tracks progress. For example in a retail business we track sales and gross margin trends. In the contracting industry we track flow of requests to bid and make sure bids submitted and ultimately the work completed tracks with the gross margin goals. In those industries and all others where I do work we always have an annual plan of revenue, margin and profit. Again this is detailed in the currently free course How To Increase Profits by 30% or More in 90 Days or Less

Avoid thinking tools are your business. The Internet, SEO, direct response marketing, copywriting, niche marketing, video, podcasts, autoresponders co-registration, infomercials, and more are tools. Recognize these are tools and continually ask yourself what are the tools that will really help your business the most. Then as others point out so well, what are the activities that need your skills and which ones should be outsourced.

Allot of times I write for my own benefit meaning it crystallizes my own thinking and in order to write about a topic you need to have a level of experience with the subject matter. This article for example originated because I have not personally focused on a clear definition of my own business and I have not completed a clear financial plan with action steps for myself. I am now doing this and I am optimistic this will be my best year ever (and I have had some really good years.)

I wish you prosperous health, happiness and abundance

Steve Pohlit
Business Development Consulting

Steve Pohlit has more than 20 years experience running very large and medium sized companies. Steve now designs and implements processes with large and small companies that will deliver improved business performance for the long term. The latest successful on line and off line marketing techniques are part of the processes that are implemented. Most projects are self-funding within 90 days. The business then experiences a very high return on investment. Learn more about the process of Increasing Profits by 30% or More In 90 Days or Less by visiting http://www.stevepohlit.com or you can call 727-587-7871 and speak with Steve directly. Have a question? Click Here To Visit Ask The Consultant If you want to learn how to use a blog to build your business then register for the the free mini-course “Blogging for Profits” at Steve Reports.

Best Buy’s Results Only Work Environment Deserves High Marks. Here’s Why

Huge cuts in turnover.
Huge increases in productivity.

Those are the results reported by the departments of Best Buy that have focused on having people achieve work milestones rather than caring where the employees are when they get the work done. Many hardly ever show up for work.

The focus is on results and for many of the tasks needed completed at the home offices of Best Buy and now they are not.

With the change, employees love working for Best Buy. How do they know? Well when high turnover rates plummet to near 0 that is a pretty good indicator.

I can’t tell you how many times I have counseled CEO’s and Presidents moaning about otherwise outstanding employees not being able to consistently get to work at a prescribed time.My advice always is have clear definition of what needs to be done and when and then leave them alone.

Best Buy’s new rules are:
Don’t waste my time.
Don’t waste your time.
Don’t waste the company’s money.

Good rules!

Does the ultimate flexible schedule work for everyone? Well there are a few jobs where I have not figured it out. For example, I am writing this 40,000 feet in the air and I don’t think airlines can operate with pilots, flight attendants, mechanics and airport support showing up when they feel like it or not at all.

If you have abused your lifestyle and are scheduled for bypass surgery at 7AM in the morning, I don’t think you want to be prepped and then find your doctor decided to sleep in or go play golf.

Buying food at a grocery store or restaurant could be a challenge if the place is not open because people who operate those stores decide to go fishing.

But maybe there is more flexibiliy than what we think. What if there were an extra number of people employed and the staff worked it out. For example: Hey Judy I don’t feel like working this evening could you help me out? Judy says sure and the staffing for the restaurant is fine. The employees worked it out. Now if you are a store manager and you want some coverage the day after Thanksgiving, maybe your thinking is not in sync with the goal.

Before you start with the “but we cannot afford any extra staff” argument I ask you what does your turnover cost you?

I was in a long line at an “Oh My God” fast food restaurant (OK it was Burger King where they suck me in with their purported Angus steak burger that I like - hey Warren Buffet and Bill Gates like the value meal so back off.) To the point! The line was long and since I frequent this particular Burger King while working with a client near there, I cannot help it but I simply ask - what the hell is wrong here? The answer is always the same. This location like a multitude of other locations just like it pay their employees near minimum wage, their turnover is about 3000% a year and their lost sales are about $2,000 per day. By the way that is three quarters of a million dollars. I estimate one location leaves about $200,000 of profit on the table because of turnover and lost sales. I am I right - absolutely.

So Best Buy understand the cost of turnover and they apparently understand the importance of no comprise to achieving defined performance goals. I hope Best Buy continues to have huge success with this program. My only question is from a competitve advantage point of view, I have no idea why they let this program be published by Business Week and others. I would have advised leaving their competitor in a bigger cloud of dust before acknowledging the success of this program.

Be well and prosper,

Steve Pohlit
Business Development Consulting

Steve Pohlit has more than 20 years experience running very large and medium sized companies. Steve now consults personally with clients to design and implement processes that will deliver improved business performance for the long term. Most projects are self-funding within 90 days. The client then experiences a very high return on investment. Learn more about the process of Increasing Profits by 30% or More In 90 Days or Less by visiting http://www.stevepohlit.com or you can call 727-587-7871 and speak with Steve directly.

John Reese Exposes The Truth of Multiple Sources of Income and Steve Pohlit Reveals How John’s Advice Works Off Line

I have been a subscriber of The Reese Report since it’s first issue. John offers sound advice on building on line based businesses including web sites that attract traffic that buys what you have to sell. John is one in a small group of people I have paid close attention too and who have helped me learn and bring value to my business development clients. I always recommend The Reese Report.

John has just released a video commentary that encourages you to focus on one targeted market as your primary source of income. If you are in business or want to be you should listen to his message. Click Here to watch this video. It is about 10 minutes and worth it.

Most of my work is with traditional offline businesses. This year I have worked with several contractors and retailers. In the past I have worked with manufacturing companies, trucking companies, companies operating multiple restaurants, drug stores, convenient stores and more. In each case a primary focus of my work with those companies has been A, B, C management. A, B, C management is simply defining those customers that represent 80% or more of your current and future income and the critical path tasks required to build and serve those customers profitably.

Not every project achieves the goals set out at the start. The single biggest reason a company optimizes performance and profits over time is that they consistently stay focused and execute on the A priority tasks that result in meeting and exceeding the expectations of their customers. The kind of focus John Reese is advocating in his video.

If A,B,C Management is the formula for success then why do companies hire a business development consultant? Good question and here is one example that illustrates the answer. Currently I am working with a very qualified and bright group of people in charge of developing and running their business. They know they are working hard and should be making more money. They also know what they should be doing and are not. They hired me to help them change the way they work. This company like every business I have worked with already has a full agenda when I walk in the door. The are finding the direction provided by the consulting process helps them modify their work to focus on what will make the biggest positive differences in their business long term. In the first week they agreed to several major actions that they have been procrastinating on for quite some time.

I am preparing a special report that addresses the key questions every business should ask when considering if they need a consultant and how to proceed in hiring one. In the meantime if you have questions you are encouraged to contact me by email or phone. All my contact information can be found at http://www.stevepohlit.com or in my resource box below.

Be well and prosper,
Steve Pohlit
Business Development Consulting

Steve Pohlit has more than 20 years experience running very large and medium sized companies. Steve now consults personally with clients to design and implement processes that will deliver improved business performance for the long term. Most projects are self-funding within 90 days. The client then experiences a very high return on investment. Learn more about the process of Increasing Profits by 30% or More In 90 Days or Less by visiting http://www.stevepohlit.com or you can call 727-587-7871 and speak with Steve directly.

I purchased the Thanksgiving local newspaper for $.35 for the ads. There is wisdom in those ads that is worth tons of money.

Did you know Target has one of the hottest niche products featured on its key pages promoting Friday and Saturday specials? Do you know what that product is or even how I know it is that hot? Do you wonder why the other retailers missed it? I don’t wonder I know precisely why. Do you want to know what that product is? Look up my email contact information at www.stevepohlit.com and drop me a line.

Do you know that Best Buy has black Friday specials that are so hot they are giving tickets out starting at 4AM for people who want in at 5AM? Are any other retaileres doing this? None that I found. Do you think someone will start Black Friday at 12:01 AM sometime soon? I’ll bet on it. Do I agree with any of that? Doesn’t matter. The only thing that counts if you are retailer is the gross margin in the cash register. There will be some winners? Want to know who they are? I will tell you who will be the big winners this selling season in one week. Subscribe to Steve Reports and don’t miss it.

Did you notice the extensive joint ventures done by Circuit City, Best Buy, and other major chains? Did you know that these deals started nearly a year ago? Do you think you can learn a few things from what is working and what is not working this season and apply them to your business?

Do you know that most small businesses and entrepreneurs will ignore the reasons for others succeeding that are right in front of them? Now you know that some of these lessons can be found by spending 35 cents on Thanksgiving.

Do you think there is insight on what item are hot in the 6AM - 11AM specials offered on Black Friday? (Excluding Best Buy and several others who are now stating at 5 AM)

Do you want to be a store manager of a store opening at 5 AM on the day after Thanksgiving? Can you imagine what you are thinking about all day Thanksgiving? Do you know how companies are able to find and motivate people to do this the day after Thanksgiving?

The above is just a short list of what came to mind as I studied the Black Friday ads. Some would say I was working. I happened to see Warren Buffet being interviewed recently and he was laughing talking about loving what he does. His quote was along the lines of ” I tap dance to work every day. I have more money than nearly everyone else and it doen’t matter, I just love what I do”

I love what I do and you will see more evidence of how I am helping others gain tremedous value in their business by paying attention to what works.

Now if you used the Thanksgiving ads to wrap the scraps from dinner, you will want to find the copies not sold in the morning at your local convenience store waiting to be picked up and grab yourself another copy.

The Christmas Shopping Marketing Games Are Out In Full - Enjoy The Full Show

Be well and prosper,
Steve Pohlit
Business Development Consulting

Steve Pohlit has more than 20 years experience running very large and medium sized companies. Steve now consults personally with clients to design and implement processes that will deliver improved business performance for the long term. Most projects are self-funding within 90 days. The client then experiences a very high return on investment. Learn more about the process of Increasing Profits by 30% or More In 90 Days or Less by visiting http://www.stevepohlit.com or you can call 727-587-7871 and speak with Steve directly.

The following article by my friend Allyn Cutts offers excellent advise and is a courtesy of Steve Pohlit, Business Development Consultant who helps companies develop and implement business building marketing programs and organizational processes to optimize profit growth.

Are You Top Of Consciousness

How many great ideas have you had that fizzled and evaporated into thin air? Heck, they were darned good ideas too! The problem wasn’t the ideas, it was implementing them… making them work.

We’ve been talking about Top of Consciousness Marketing, one of the greatest marketing tools I’ve come across. Now it’s time to do a little strategizing about ways to make it work for you. There’s no sense in letting another brilliant idea vanish!

How often and how many ways could you contact a potential customer outside of normal visits to you place of business? Quick! Make a list…

Here are a few to get you going:

* Seasonal greetings
* Post cards
* Birthday cards
* Newsletters
* Catalogs
* Flyers
* Special sale notices
* Telephones calls
* Emails
* Thank you’s

Listen up, here’s the secret to effectively obtaining Top of Conscious positioning in the mind of your customers… finding 10 to twelve ways to contact them every year.

Newsletters are probably one of the easiest ways to implement a regular contact system with your customers and potential customers. A monthly newsletter written in an informative and entertaining style is something your customers and potential customers will look forward to. It’ll also go a long way in establishing your credibility as an expert in your field of business.

Who doesn’t appreciate a personalized “Thank You?” It doesn’t really matter if it’s a phone call, and email, a card or a bouquet. It’s the thought that counts.

Remember the pleasant surprise of an unexpected birthday card? Hey, it always feels good to have someone remember your special day.

The key to staying on at the top of peoples minds is simply getting their attention on a regular basis. Pick one or 10 of these methods and start using them to get the attention of your potential customers and to keep loyal customers feeling appreciated.

Stick around for some more great ideas on implementing Top of Consciousness strategies.

Dedicated To Your Further Success.

All the best,

Allyn Cutts

About the Author

Allyn has spent over 24 years helping businesses like yours find new customers and increase sales to current customers.

Allyn consults personally with clients to design and deliver offline and online direct marketing strategies that focus on metrics and measurable results. You can learn more about Allyn Cutts at http://AmazingMarketingStrategy.com or you can call 610.437.4106 between 10 AM and 4 PM Eastern Time Tuesdays and Thursdays
___________________________________________

Steve Pohlit develops and implements processes and procedures that grow revenue, maximize gross margin and optimize net profit. This approach is detailed in the free course “How To Increase Profits by 30% or More in 90 Days or Less” which can be found at by click here and “Blogging for Profits” which is another free series that can be found here at Steve Reports.

May Your Profits Grow and You Have Fun With The Journey

Steve Pohlit, Business Development Consultant

Zale Corp. vs. Signet: One Tested…The Other Didn’t…Look At The Dramatically Different Results

Ann Zimmerman and Kris Hudson reported a very interesting article in the Wall Street Journal that describes the dramatically different results of two very large mass market jewelers - Zale Corp. and Signet. Zale’s jewelry division is headquartered in Texas. Signet which owns Kay’s Jewelers and Jarid is based in the UK. Both companies target market share in the huge U.S. market.

If you are in business, you must read the papers and magazines that deliver lessons and ideas that will help you. A quick review of the articles I publish reveals many examples taken from publications that are used as valuable lessons. Today’s article is no different.

In direct response marketing circles there has always been a lot of attention to the importance of testing. That industry uses what is called the “control”. This is the direct mail piece that has a predictable rate of response when mailed. Once established, writers are challenged to beat the control. The best copywriters, the ones with long running controls, make a ton of money because they deliver the goods.

I was trained in retail by some of the best in the industry in the 80’s. Then I worked with fashion retail, mass merchandisers and specialty stores. The divisions of The Limited were particularly skilled at identifying fashion trends that were popular in foreign markets, replicating enough of an item for a market test and then if the tests met their expectations, they would quickly mass produce the item and fly finished production to their US distribution center where the garment would be in the stores in a matter of weeks.

Every successful retailer is constantly testing market response. Every successful internet marketer is constantly testing market response. Market testing is critical for maximizing profits at companies. So what was Zale Corp. thinking when they implemented a complete change in jewelry merchandising strategy following a lackluster Christmas selling season in 2005? I don’t know and if it has worked the story might be different. But moving from a mass market strategy to an upscale market strategy in a matter of months chain wide end in a financial disaster for Zale and possibly the end of the careers for a number of people at the company including the CEO. Signet on the other hand is following a strategy of consistently testing and modifying its product offer based on the results of the testing. They base their merchandise strategy on listening to what the consumer wants as evidenced by how they spend their money.

I have been in business long enough to know that the former CEO of Zale Corp. probably has his side of the story and it is different from the message published in the WSJ. However, the financial results of the two companies speak for themselves and reinforce the importance of testing.

The roadmap to success in business is relatively easy to follow. Every day I am working with companies who realize hire me because they know they can be doing better and need a refresher on the fundamentals of doing business. Testing is one of the fundamentals for most businesses. If you are not doing it, or if you do not have a formalized testing process in place with the details of the tests being run presented at management meetings, start now.

Steve Pohlit, Business Consultant
www.stevereports.com
www.stevepohlit.com
“Helping Business Make Extraordinary Profits Now! No Reports…Just Results!”

Business Development Consultant, Steve Pohlit, advises all companies to have a website with local search information now. The trends are clear. Conduct this experiment on your own. Simply ask 10 people how they would locate an apparel store, car wash, CPA, shoe repair shop, dry cleaner, attorney, etc. Even if they know the name of the business but do not know the address, ask them how they would find the address. There is a good chance 70% or more of the people you ask will say they search on-line.

The Wall Street Journal reports that Google and Yahoo are making major investments in local search “rushing to add more consumer information about local businesses”. Yahoo has www.local.yahoo.com and Google recently changed from Local to Maps which can be found at www.maps.google.com

Yahoo is building local town squares where users share information about local businesses. Google is accumulating local business information that is already posted elsewhere on line.

If you have a business, you must have domain name and at least one page that provides information on the type of business, products and services offered, location and contact information. Information about your business is going to be available on-line soon, if it is not already there. It is better for you to be in the driver seat as to what is published.

The cost of having an on line presence is no longer an excuse. The entire process can be accomplished for much less than the cost of a yellow page listing. In fact, I am registering domain names for $8.00 a year and hosting a web site can be done for $100 a year or less plus most hosting packages include an email and the ability to set up a blog. Essential design can be done less than $100 assuming the business owner gives the designer basic information. If you need additional information on setting up websites or hosting websites, email me and I will help you.

I have discussed the major opportunity for most companies is previous articles, but here it is again: use your website to provide detailed information about your business, offer visitors a reason to register with your business and then develop a communication strategy with your subscribers. This process will increase revenue and profits. It will dramatically increase revenue and profits when you also capture the contact information of people physically visiting your business and people buying from you. That is the entire basis for the business model presented at www.localretailmarketing.com The principle applies to national companies as most market to their customers in local communities.

Here is one example of a national restaurant business headquartered in Tampa, Florida. Most people are familiar with the name Outback Steakhouse. You may not know the names of their other divisions which include: Carrabba’s Italian Grill, Bonefish Grill, Roy’s and more. The St. Petersburg Times reported that Outback was concerned about the performance trends of their flagship business, Outback Steakhouse. To further understand the basis for these trends, the company hired a consulting firm to study trends and evaluate customer perception of the business. It was not reported how long this study took or cost. It simply said it was conducted in 2005 and the results are being reported in 2006.

You can monitor customer reaction to your business daily without any special studies when you have a communication program in place. For example, in the restaurant business you could offer an incentive to come in and eat. That incentive can be tracked. When the customer who received the incentive in their email, redeems it you can link it to a survey. The survey can be conducted while they are in the restaurant or afterwards with a follow-up message that includes a big, warm thank you for your visit. This is not hard to do. What must be in place is a culture that reacts to what the your customers are telling you. They will spend money with you when they know you care.

Steve Pohlit is a CPA,MBA and has been the CFO of several major domestic and international companies. Today Steve is an expert business consultant focused on helping companies improve their business performance including growing profits, revenues and customers. For a FREE 6 week mini course where you will receive 10 easy to implement action steps guaranteed to increase business revenue and profits by at least 30% in the next 90 days, please visit www.StevePohlit.com All articles published by Steve unless specifically restricted may be freely published with this resource information.

The A,B,C’s of Inventory Management

One might think the books have not been written, the software not developed and the knowledge base empty when reading some of the recent headlines. When the largest retailer in the world announces they are reducing the amount of inventory in their stores because they have too much, it crowds the isles, confuses the customer and delivers the wrong message, one might wonder why they have this problem. After all the best and brightest work there and they has not held back on investments in technology. So how does the largest retailer in the world get themselves in a position where inventory levels are excessive?

Inventory management is an art not a science. The levels of inventory are a judgment call based on the available information. Let’s review how it is supposed to work. Before we start, this brief lesson applies to every company that has inventory no matter what industry and no matter what size the company. If you think this does not apply to you then I submit you are exactly the person I was thinking of when I wrote this article.

The primary reason for any inventory is to use it or sell it to make money. If you have an inventory of spare parts for a machine that is 20 years old, you are carrying that inventory to make sure you can repair the machine if it fails. If you dispose of the machine you no longer need the spare parts inventory. If you are a restaurant that specializes in prime cut steaks, you need the inventory to match the projected customers for today and maybe tomorrow. If your projections are wrong, then you either run out of steaks or have an excess. In the restaurant business, there rarely is any need to carry more than a couple days supply of inventory. Restaurant suppliers generally deliver more than once a week. In the fashion apparel industry, inventory is seasonal. In the early Spring merchandise is already in the pipeline for Fall and Winter. If apparel merchants misjudge the style, color, or fashion trend of their customer, they will be left with merchandise taking up valuable retail space. Blowout sales are then used to get rid of it.

Good systems will tell you the quantities on hand, on order, days of supply, gross profit in inventory, inventory turnover in total, by category, by vendor, by item and a lot more. Good systems will automatically process replenishment orders for item that are considered basic or staples. However, people makes policy decisions. Policy decisions are ones like inventory turnover will be at least 4 or we will now carry a higher mix of higher priced items to attract a more upscale customer. Inventory policy decisions drive the organization to action to achieve the goals of those policies.

In my experience, effective inventory policies are a result of business strategy linked to business financial performance and liquidity goals. When there is no clear definition of the goals then how do you evaluate actual results? Actual performance is always relative to the targeted goal.

The following is a brief summary of the impact of less than optimal inventory management:

Sales goals can not be met if you have nothing to sell. Forecasted demand along with replenishment modeling are key.

Gross margin goals cannot be achieved if your actual inventory mix does not match your gross margin goal or your customer demand patterns do not match what you have to offer.

Liquidity goals cannot be achieved if inventory turnover is less than target.

A,B,C Inventory Management Plan

1.Establish clear sales and gross margin goals.
2.Develop the same goals by line of business, product category
3.Identify the A items in each category. A items are the ones that make up 80% of the sales volume for that category.
4.Calculate the gross margin for the A items by category. Calculate the variance of actual gross margin for the A items vs. goal. If the result is the same, your goals are likely too low.
5. Repeat steps 1-4 for inventory turnover. Be sure the turnover goals tie into you liquidity forecast.
6. Develop detailed action plans to improve the performance of the A items. Assign a time line to those action plans along with specific accountability for implementation.
7. Extend steps 1-7 to the B items. Include in your action plan a goal of identifying which B items should move into the A category. This is normally done based on buying trends and gross margin opportunity.
8. Calculate the total investment for each level of inventory (A, B, and C’s) Evaluate the actual return on investment vs. target. You do have a targeted ROI, correct?

Project Manager: Make inventory a priority. Many people can be involved but one person should be accountable. If you have concerns about status or progress, hire an outside professional.

Complexities usually flow into the picture when people begin to spend a lot of their time on what they view are needed support tools. Those can include staff, systems and procedures. While tools are necessary to achieve your goals, a consistent focus on actual vs. targeted performance of A items should yield enormous benefits.

Your business will not learn you have lost the election until you realize the money is no longer being spent. Most of this attrition is preventable by following a few basics.

Consumer Marketing 101.2: Listen to your customer and ask them how you are doing meeting their needs and fix what is broken.

It is likely I am not a typical customer since I tell companies when I am happy or not with their products or services. It has been my experience that most companies DO NOT CARE or at least the people serving the customer do not care.

Not too long ago I had a problem with my laptop. Over the years I have purchased at least 10 laptops from one company. The last one is the last one. They accused me of a liquid spill and did not honor the platinum warranty for which I had been charged a premium. I will not bore you with all the details. Their customer service department didn’t care. End result - business lost. Lifetime value of this customer (me) is about $3,000 a year.

There is a service station close to my home with a car wash. I was working with a client near but not that close so I was driving a lot. I would spend about $100 per week at that particular station. 2 out of 4 times that I used the car wash - it didn’t wash. I have asked them repeatedly to fix the car wash. Each time they have given me free car washes or my car wash money back. I DON’T WANT A FREE CAR WASH …I NEED A CAR WASH THAT WORKS. Today was the end - I will not return. End result they lose $100.00 of revenue per week. I estimate their average customer spends $80.00 a month. If I owned that station I would consider me a valuable customer. They don’t care. When you see stores closing or changing ownership, just give the departing owner a sticker that says “I don’t care.”

Consumer Marketing…It is not about the headline, the copy, the web site, the direct mail piece or media ad. First and foremost,It is about how you treat the customers you have.

Author: Steve Pohlit, a business consultant who has helped companies in many industries including: retail, manufacturing, wholesale distribution, restaurant, real estate and trucking achieve increased profits. All information published by Steve, unless otherwise noted, may be republished without restriction with this resource box intact. For more information please visit www.stevepohlit.com