Mike Michalowicz's Blog, page 48

10 WAYS TO MAKE YOUR NEW RESTAURANT MORE PROFITABLE IN 2019

There is a lot happening in the Boston restaurant landscape. It seems that restaurants, places we have loved for years and places we haven’t even had the chance to try out yet, are closing their doors. Some say it’s the ridiculous and ever-escalating Boston rents, some say Millennials are to blame, but in either case – complaining never pays the bills. This article, with the help of some of Boston’s Top Restaurant Influencers and Experts, is meant to be a helpful outline, or guideline, to those brave souls who still venture to enter this tumultuous, yet passionate, marketplace.

HOW DO I MAKE MY RESTAURANT MORE PROFITABLE?

1. The Food. There is no avoiding the importance of food in a restaurant’s success. It may not be the only thing – but it may be the most important thing. After all, it is the reason your guests will leave the house in the first place. Ensure that you have a chef/kitchen manager whom you can trust, who can run a team which can prepare food in a timely manner, with consistent quality and presentation. In addition, our contributor Restaurateur Matt Sullivan (www.ackprime.com) adds that it is important not to put all your “chef eggs” in one basket… meaning be prepared to be able to execute your menu with a new chef/kitchen manager, thus, systems and recipes are a must. Make sure that the menu is not too long, to ensure you have the freshest food, and keep inventory of perishables down. Invest in quality ingredients, it is the only way to ensure a superior product is being provided to your guests. The execution of the food served is also extremely important and can be ensured by a great expeditor. If “all things food” is not addressed, there is little point in going on to the next points.

2. Location and Demographics. Invest in a good realtor who is an expert on locations and demographics in your city. What kind of demographic are you looking to attract? Where does that demographic live in your city? What do they like to eat? If you are looking to serve urban professional hipsters, find out where a Whole Foods has opened recently, (why not piggy back on Wholefoods’ first-rate demographic modelling?). If you are looking to open a New York style Steakhouse serving wealthy baby boomers, find out which part of the city buys the most Cadillacs. A top-class realtor, such as our Contributor Charlie Perkins of Boston Restaurant Group, (www.BostonRestaurantGroup.com) must have an authoritative grasp of these facts. Charlie tells us to have your concept solidified first, then set about looking for the right location. Charlie also shared that 65% of all restaurant openings are quick-casual concepts – which speaks to the Millennial demographic who aren’t out to get the traditional “3-course” meal but prefer a drink and to share a few appetizers. Another great, possibly business-saving tip, from Charlie is when working on your budget, your total Occupancy costs should be no more than 8% of gross sales. Those restaurants with higher Occupancy costs tend to struggle and most often fail. And then there is thinking forward, way forward and down the road of possibly selling, and the 3 things that make the sale value of a restaurant are, at least in Boston, location, license, lease… so it will literally pay to think ahead on these things. And here’s an old school tip… if you find a location you think might work, spend a few hours, at different times throughout the day, parked at a nearby business and study who and what happens in that area.

3. Financial Foundation. This is key. Setting up your financials, your cash flow, your “books”, correctly and accurately from the beginning will save you in almost every way. After all, if you don’t know your numbers, you don’t know your business. The Profit First Cash Management system is the best at absolutely ensuring profitability from the very first deposit. In the restaurant business, you generally have no idea how much sales your establishment can bring in on any given week… there could be snowstorms, school holidays, power outages, large televised sporting events, so many variables that can affect sales. But, in the end, the restaurateur makes it work. So, whether you bring in $15,000 a week or $25,000 a week in sales, you make it work because there is no other option. Setting up a cash management system from the get-go where profit is taken first off of every deposit, then Owners Pay, then taxes, sets up the Operating Expense account that the restaurant has to manage with… and guess what? They’ll manage.

4. Website. Over the years, we have worked with dozens of restaurants which have committed over a million dollars in renovating their property but have opened without a website being live or updated or useful! The fact that this still happens in 2019 is remarkable. Our Contributor Honor Lydon of BostonChef.com (www.BostonChefs.com) shares that you must have your press kit ready to go, BEFORE you open the doors. If you wait to do it after, or when someone asks for this info, after you’ve opened and are in the thick of it, then it won’t get done. Or it certainly won’t get done well. And this is important because having a strong identity in a world filled with so many dining options, is imperative. Honor highly recommends getting your website together sooner rather than later, having headshots, recipes, and food photographs at the ready so when people reach out who want to talk about your restaurant, they can do so eloquently and accurately. In the grand scheme of things, a website is relatively inexpensive, with a high-quality one available for between $2,000 and $5,000. The revenue driven by the website will be ten times the outlay and is crucial to driving revenue, so do not scrimp on the cost with a part-time nephew or friend, or one of those “free” website platforms who might not have you live at least a month before opening. Choose a professional, and better still one which specializes in restaurants.

5. Great Concept. A disproportionate number of the most successful new restaurants are profitable because they give the dining public what they want, in many cases before the public know they want it. Some restaurateurs are just great at predicting new trends, but one thing we can state after 20+ years in the business, is to repeat that old adage “there is nothing new under the Sun”. Even the most exciting American chefs borrow from the Spanish, French and Italian masters. If you are stuck for some inspiration, why not spend a week in New York, San Sebastian or London, three of the most Avant Garde food cities. See what is really clicking there, and the chances are, in a year or two it will be popular in your city too.

6. Overestimate your Capital Requirements. From experience we have seen restaurants spend over a million on renovation, only to shutter within six months. Why? In nearly every case, the restaurant assumed it would break even as soon as it opened; or the build costs were higher than expected, and the reserve fund for the first six months was used up for the build. Either way, the bottom line is that it is common for restaurants to underestimate costs and actually go bust before they have really hit the ground running at six months. Make sure you have enough capital in place for the build, start-up costs, a loss for six months, and some extra for unexpected events… ALWAYS. Our contributor/restaurateur Matthew Sullivan recommends adding 40% on top of what you “think” the budget might be… if you’re estimating $100,000 in start-up/building funds, have $135,000 or $140,000 in the bank… you’ll need it.

7. Ensure Sufficient Two-Top Tables. The cardinal sin of most architects is completely ignoring economic reality when designing floor layouts. The fact is, the most common party size in fine dining restaurants is two, followed by four tops. Even more important, two-tops tend to have a higher spend per head, and a shorter turn time, which means they earn far more per hour. It is incredibly common for restaurants to have banks of large tables and booths, and a relatively small number of two-tops, often situated in the least hospitable parts of the restaurants. The result is that most restaurants will not sit two-tops at a six-person table, thus causing a wait which then gives the reputation of being a place where there is “always” a wait and guests may decide to go elsewhere before even trying to see if a table is available. To ensure the profitability of your new venture, remember that you will probably get more two-tops than any other party size, they will spend more per head, and be in and out relatively quickly, so ensure plenty of two- tops, and that some of these are in nice locations, like beside the window (and not near the bathroom or kitchen door). Finally, it is easy to combine several two-tops into a larger table, but you cannot split a larger fixture like a booth between two or three parties.

8. Accept Reservations. If your restaurant is full service, reservations are a must. Not only are they requisite for the guest experience, but they are highly effective for the operator as well. Walk-ins tend to come in large lumps, around 7pm for example, or Sunday Brunch at 10am. A well-planned reservation system is far more effective at smoothing the loading of diners over the whole shift versus walk-ins, which improves food and service, consistency, the guest experience and your profit. OpenTable is still the leader in online reservations but it is also a great CRM (customer relationship manager) software. While not cheap, you can absolutely make your money back and then some by utilizing this tool to its capacity.

9. Invest in a Lead Host. In Europe and New York, it is not uncommon for the best-paid member of staff to be the Maitre’d. And why not? It is the most intellectually vigorous position in the restaurant when done correctly. Yet in many American restaurants, the host team are the least well-paid members of the staff. It is crucial to have one person beside the door who knows what they are doing. Invest in a well-paid, experienced lead host or reservations manager, who understands the importance of maximizing reservations and walk-ins, and is incentivized to manage the floor in a profitable way for your business. In many of the most successful restaurants, the GM or restaurateur takes on this role themselves, but we would recommend having someone else take on this role so that the GM and restaurateur are free to engage the guests.

10. If you are New to the Industry, Open with a Restaurant Consultant. Restaurants have an incredibly high failure rate, and if you have never owned a restaurant before, the learning curve is painfully steep. Working with an industry veteran can smooth the curve and reduce the amount of your savings/investment which is burned approaching break-even. Be wary of some “consultants” however, as many are failed restaurateurs, who failed for a reason. Always check references, plus their successes and failures. If you are not sure where to find a consultant in your city, why not call the five restaurants you most admire locally and ask them to recommend someone? Or better yet, contact BostonChefs.com and see who they might refer too. Most will be happy to help, and cross-referencing their recommendations is useful. Better yet – build a Team! This article alone includes 4 industry experts that can help you on your way to restaurant stardom. Don’t be afraid to reach out – while this industry can be competitive, we all want to add great places to our dining landscape and thus the comradery far outweighs the competitiveness.

Let’s meet the Experts…

First up, Matthew Sullivan. Matt is one of those “fixture” restaurateurs that you might see at random bars about town – but in a good way! He has owned and managed restaurants in several of the different Boston Neighborhoods. Matt has run the full spectrum of the “dive bar” outside the Garden in downtown Boston to quite the chic-chic “ladies who lunch” dining establishment in a very wealthy suburb. Today, Matt splits his time between his longtime restaurant in Milton’s quaint downtown, Prime Milton, and the Island of Nantucket where he’s entering year three of a very successful tenure at his island steakhouse, Nantucket Prime. https://www.primemilton.com/ https://www.ackprime.com/

Next, we have Honor Lydon, co-founder and Executive Editor of BostonChefs.com. BostonChefs.com is THE hub for all things’ restaurant in and around Boston. It is a digital marketing network that connects chefs, diners, and brands through a shared passion for food and drink. Their platform provides insider coverage of the local culinary scene to an audience of food-lovers. In addition, BostonChefs.com enables independent, chef-driven restaurants to reach engaged and passionate diners, provides brands a platform to connect with their audiences in the context of content they are passionate about, and connects the best industry talent with jobs at the top restaurants in the region. https://www.bostonchefs.com/

And last but not least, the famous restaurant broker-guru, Charlie Perkins, of Boston Restaurant Group. Founded by Charlie in 1990, The Boston Restaurant Group, Inc. is the commercial real estate firm that specializes in selling restaurants, leasing restaurant space, appraisals, and management consulting. Charlie is a frequent speaker on subjects relating to Restaurant Valuations and Opening a Restaurant and I am thrilled that he has generously participated in this article. http://www.bostonrestaurantgroup.com/

Oh wait, one more, then there is me…Kasey Anton, restaurateur turned bookkeeper turned Profit First Professional. I have had the opportunity to work in all kinds of restaurants since I was 14 years old, in every position, and loved every second of it. My lifelong goal as a child was to open my own restaurant one day and, with the help of 2 partners, I did just that in 1999 with the opening of my first restaurant, Bomboa, located in between the Back Bay and South End of Boston. But as all good things must come to an end (especially in the restaurant world), I sold Bomboa in 2006 – the year I had my first child and decided that 4:00AM closings weren’t in the cards for me anymore. From there, I began helping other businesses, restaurants and others, get their finances straightened out and create a solid financial foundation for these businesses to grow. I was introduced, via audiobook, to Profit First on my honeymoon in 2017 and knew within the first few minutes that this was the solution for so many of my clients – especially our restaurant clients – and it has been my mission ever since to work with our clients to help eradicate restaurateurial poverty. https://sparkbusinessconsulting.com/

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Passion is the Key to Success

A guest post by Rodrigo Laddaga of EMyth en ESPAÑOL

Passion is a topic that is covered by many authors and gurus in these past decades, but I still see that many people “don’t get it” yet. When we talk about entrepreneurship and small business success or any kind of success we find that in each instance passion is the key element. Steve Jobs explained it in a very practical way in his famous interview with Bill Gates, when he said “you have to love what you do or you are going to quit soon or later.”   Your business, ultimately, is your life.  If you want your life to be fulfilling (a perhaps extremely accurate definition of success) you need to have passion for what you do.

Most of the people that start a small business start it with the wrong assumption.  They ask themselves, “How can a make money?” “What type of business can be more profitable?”  The focus is money first, fulfillment second.  That’s a mistake.

The right question to ask is, “What am I passionate about, and how can I build a business around it?”  This is so critically important, because you will spend most of your days working on your business, between 8 to 12 hours a day, between 5 or even 7 days a week. Most people today spent more time at work than any other activity, so you better do something you really, really like.

As the famous author Wayne Dyer said “If you are not doing what you love and loving what you do you have 2 options, change what are you doing, or change the way you feel about what you are doing.”  The second option is very impossible to achieve.  You can’t create passion out of thin air. Either you have it or you don’t.  The only way to change your feeling about what you are doing is to find your passion within what you do, is to tell yourself a new story. If we observe the people that are truly successful you will find that most of them, if not all of them, have this key ingredient, they just love what they do. It does not matter if they are writers, business men, sports people, actors, singers, architects, engineers, etc. – passion leads to success.

I really believe that schools at any grade should focus in helping kids, teenagers, young adults and adults find their passion – the probabilities of being successful and happy will increase exponentially.   The task of finding your passion is not easy, but there is a simple guide:

Ask yourself these 3 questions frequently, at least once a week, and measure yourself from 1 to 10.

1. When I woke up this morning, did I feel energized, enthusiastic about my business and what I do? How energized are you when you wake up? (1 to 10 scale)

2. When weekends come, do a feel like “yes finally the weekend” or do a feel like “this weekend is a gift to recharge for work on Monday! And I am excited for the week to start again.” (1 to 10 scale)

3. Do you get lost in your work today because you are having so much fun? (1 to 10 scale)

If you can your score average is 8 or higher, you are living your passion. And some fine tuning may get you to a perfect 10.  If you score below an 8, you should strongly evaluate the link between your work and passion.  Because, once you can closely correlate your passion to your work, it will lead to unlimited success.

 

Rodrigo Laddaga is married with two children.  He started his first business at 26 right after college. He is passionate about finding the best tools and techniques to help entrepreneurs and small businesses succeed. He is a mentor for Endeavors Network, a member of EO (Entrepreneurs’ Organization) Mexico and member of USEM (Social Responsibility Association).

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Stay Away from Making Facebook Mistakes

We are far past the wild west days of Facebook, yet many users continue to treat it arbitrarily making faux pas after faux pas.  Just like you wouldn’t go to a networking event with horrible b.o. and shoving your cards in peoples face, you need to stop doing the virtual equivalent on Facebook.  Now that I think about it, people do go to networking events and try to push their businesses on you – and not surprisingly they fail to connect with anyone or persuade anyone.  Their b.o. doesn’t help either.

Here are some of the biggest Facebook mistakes you must avoid:

1. Failure To Check Grammar
Reading your posts twice before you click “post” is a must, especially if you have a large and engaged Facebook following. In this digital age, it only takes a second to grab a screenshot of your silly typo or obvious grammar misuse. And thanks to social sharing, this screenshot will make it around the web in no time causing you shame and negative publicity. Be especially careful in calling your fans by name: spell it right the first time to avoid offending anyone.
Thanks to Jonathan Passley , PDR Web Solutions



2. Believe IQ Over EQ
People buy on emotions first; justified by logic. People are attracted to emotions first and may ignore logic. Engaging in logical discussions when the other person is very emotional or even an emotional bully may have you committing a faux pas because your emotions may cross the lines of etiquette and social norms. Learn to accept “we agree to disagree” and move on. You will be recognized as a person of high integrity and business ethics.
Thanks to Leanne Hoagland-Smith , ADVANCED SYSTEMS



3. Buying Friends
Facebook fan pages were designed almost to show a certain amount of credibility. You build a solid brand, engage in conversation with your audience and people like your page. Somewhere during this process people started to get the idea that if you had more “likes” people would automatically find you credible so they started to purchase fans. All this gets you is a fan page filled with hot air and no substance but you are plagued with bogus profiles.
Thanks to Maciej Fita , Brandignity.com



4. Non-Business Friendly Pictures
Time Magazine reported 73% of recruiters check out your social networking sites, including Facebook. Recruiters like me will be turned off if your profile pic was taken on a phone in front of a mirror or your cover photo is a shot of you and your buddies playing beer pong. Be sure to manage your online reputation at all times, but particularly when you’re searching for a job. Ensure your pictures represent a professional image that won’t make a recruiter second guess whether to interview you.
Thanks to Scott Vedder , Author, Signs Of A Great Résumé



5. Emoticons!

Too often, in an effort to make communication via facebook more “personal” and “expressive”, people and businesses rely on using emoticons (aka smiley faces, etc.).

Skip the emoticons – when addressing a broad audience – specifically through a professional or business page, emoticons can dilute the effectiveness of the message, diminish credibility, and even be perceived as inappropriate. Instead, focus on crafting a message that delivers the same effect without the need for a (blank) face.

Thanks to Andres L. Douzoglou , Beyond Aero Triathlon And Cycling, LLC



6. Smash & Grab!
Treating Facebook like a Smash & Grab – it\’s not. Facebook is more like a networking meeting, everyone wants to sell but no one is here to buy. So you must be patient and willing to engage your customer. Engagement leads to a conversation, that leads to trust, that leads to a sale. Be willing to serve by offering Free Quality information. For best results you must be willing to learn and use the correct processes, just like in a real networking meeting.
Thanks to Bert Martinez , Bert Martinez Communications



7. Not Knowing Your Audience
The biggest faux pas is not understanding your Facebook audience because it holds the possibility of a number of negative outcomes including: posting information that is not relevant to your community, posting too often or not enough, or neglecting to engage with your audience.
Thanks to Eileen Bernardo , Viralheat



8. Going Where The Customers Are Not
The biggest faux pas that business people make is to invest time on Facebook but it’s not where their customers and prospects are. To do social media right requires time and effort, and you can spend all the time in the world on Facebook, but if you aren’t engaging with the right audience you are wasting time you could be spending elsewhere to drive business growth. Identify the top three social media sites your customers go to interact with businesses like yours and that’s where you need to be.
Thanks to Sheryl Johnson , BD-PRo Marketing Solutions



9. Doing It Because Everyone Else Is
Don’t just set up a Facebook Page because ‘everyone is doing it’. This could be the biggest mistake your business makes. Setting up an account and

encouraging followers, then realizing you don’t have the time to consistently manage it is a huge risk. Leaving an open and unattended

platform for your fans (and non-fans) to send inquiries, post about your business or use as a reference for information (and not updated information

might I add) could lead to some very unhappy customers.
Thanks to Karen Cummings , VISION Marketing & Consulting



10. Making Facebook Business Personal

The biggest faux pas many businesses make on Facebook is being too personal. Many of the posts or photos that are put up on businesses fan pages are what should be on a personal Facebook page.

Personal pages are just that, for friends and family, not business contacts. If the image you put out on Facebook is too informal or even inappropriate, it will turn of clients or potential clients. People are connected to you to see a good or service, not look at photos of your kids or your vacations.

Thanks to Bridget O’Brien , Bridget O’Brien PR



11. Its About Me, Me, Me!
The biggest faux pas is to to always be talking about Me, My and Mine. It’s a turn off.  You wouldn’t do it face to face, so don’t do it on Facebook.
Thanks to Katy Kassian , Buffalo Gals Bakery & Country Store



12. Set-up And Forget
Too many businesses set up a page and expect to start receiving thousands of “likes” without providing content or interaction. Give people a special reason to “like” your page by providing them something your competitors cannot. If your Facebook hasn’t been updated, tie it directly to your site to save time posting.
Thanks to Jordyn Jacobs , Red Nine Music



13. Thinking Facebook Is Private
The biggest thing that causes issues on Facebook is that users either don’t use the privacy controls that Facebook provides, or simply don’t bother to think about who can see what they post. Assume everything is public, and that your future employers, parents, etc. are going to see it.
Thanks to Matt Taylor , http://www.matthewtaylor.co.nz



14. Tagging Without Permission
Don’t tag pictures of people without permission; you could get a friend or coworker in trouble depending on when and where the photo was taken, and with whom and what.  Always ask before you do.
Thanks to Donna Talarico-Beerman , Elizabethtown College



15. Blending Personal & Business
The number 1 no-no is opening your personal facebook page to your business contacts! Keep

your personal and business life separate. If you want a business page, set

up a separate one. Do not mix the two!
Thanks to Bruce Specter , New American Mortgage



16. Deleting Anything Negative
One of the biggest faux pas a company can make on Facebook is making a policy of immediately deleting negative postings, rather than trying to solve the customers’ problems. If customers catch on, it will be a major PR disaster for the company.  Instead, face the music and help the complaining customer out.  That is how you impress future customers.
Thanks to Mario Almonte , Herman-Almonte PR



17. Posting Pictures Of Other People’s Children
Online privacy is a growing concern among parents, particularly those with teenagers. Whether you’re a school with your own Facebook page or a proud new uncle who just snapped an pic of your newborn niece, resist the urge to post any photos online of children unless you have the express consent of their parents. Many parents are growing loath to the idea of having their kids pictures floating aimlessly around the internet and consider tagging an invasion of privacy, yes even on Facebook.
Thanks to Chris Crosby , SociallyActive



18. Sharing Only Your Content
A big mistake that is made on Facebook is that companies

never stop talking about themselves. While it’s important to share your content, sharing only your

company’s content will quickly cause followers to unlike your page or not

read your posts. Instead, share content that is related to your industry and that your followers will

enjoy reading. Then, when you post content about your company, your

readers are more likely to read and engage with your posts. Good content brings readers.
Thanks to Margaret Colebeck , Vantage Advertising



19. Overselling
One of the biggest faux pas I see brands doing is overselling their product. Facebook is a place where people go to be a part of a community. Facebook pages should embody the lifestyle of the brand and share how people are interacting with the brand in real life. Yes, you should link to your website and encourage people to purchase your product, but you also want people to become brand advocates for your product and create their own buzz around your brand. Word-of-mouth, online and face-to-face,
Thanks to Alexandra Weissner , Metzger Associates

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Tips to Waking Up Earlier

You know the saying: “The early bird gets the worm.” Now, I don’t know if you are in the worm business, or if you are even a bird for that matter. But, if you are an entrepreneur, the early time of the morning is when you can get a lot of work done. Here are twenty eight ways you can wake up earlier.

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1. Leave The Shades Open
Its simple.  The brighter it is, the easier it is to get up.
Thanks to Steve Silberberg , Fatpacking


2. The Early Mindset
If you want to be ahead of the flow, be the “early bird,” then this is truly an attitude, a change of mindset. When you begin to see the results of your early morning endeavors, this creates an internal change within your own motivation. Additionally, rising earlier allows you to schedule some exercise time even if it just walking. Now you have even greater clarity and even more energy to tackle the rest of the day when others are just starting to awaken.
Thanks to Leanne Hoagland-Smith , ADVANCED SYSTEMS


3. Have Your Spouse Help Out
If you can’t get yourself up and going early in the morning, consider getting your partner to help you out. Once I gave my husband the blessing to turn on the news and lights when he got up, I started getting up earlier too. I even get greeted with a kiss and a cup of coffee … now that’s a way to start the day off right!
Thanks to Kathi Browne , BrowneKnows Consulting


4. Turn Off The LED Lights
Research shows that the blue lights that blink on so many of our computers, clocks, microwaves, televisions and even nightlights, actually stimulates our brain activity! Those lights keep us from enjoying deep, restful REM sleep. I turn off, or tape (black electrical tape) over all the lights in my apartment to ensure that the part of my brain that responds to light shuts down entirely at night.
Thanks to Becky Blanton , BookyBiz


5. Plan Ahead Subconsciously
Always have a plan to what you are going to do with the extra time you have in the morning by getting up early. The subconscious can play games with you if you don’t plan ahead. You may have planned to wake up early on a different day and then did nothing with additional time, so the next time you planned to wake up early, your body said to you ” ‘Nope, I am still sleeping” and rolled over. So make a plan the day before and complete all duties, your subconscious will then smile.
Thanks to Brian Collins , Life In Synergy


6. Early Doesn’t Mean Morning…Necessarily
Waking up early is never easy for me. I usually take cheat and take some NyQuill just to give me that extra push to fall asleep no matter what time. I have two alarm clocks in the house and I even decided to have a child…they wake up at 5am all the time. I am not saying my plan works for everyone, but it works for me…and probably every other parent out there too.
Thanks to Greg Palomino , CRE8AD8 LLC


7. The Early Rise Mindset
Truly successful people get up earlier than anyone else. By the time the rest of the world is waking up, they already know what is going on not only in their world but also the rest of the world. They also have as much if not more done than anyone else by the time every one is waking up. This includes YOU! So if you want to be truly successful, then remember that your competitors are already up and running while you are literally still asleep on the job. GET UP and SEIZE the DAY!
Thanks to Edwin Soler , Libreria Berea


8. Boomerang
I use Boomerang to schedule my emails, whether it’s early morning or when I know that user is pretty responsive or prefers to receive emails. For example, if I know Mike Michalowicz is a party animal who loves to respond after a few beers on a Friday night, at 2:59am, that’s when I schedule him to get my emails or if it’s an official reply to one of the customer enquiries, it goes 7:31am on Monday morning & guess who gets a prompt response.

The Questions Entrepreneurs Need to Ask to Succeed

Many entrepreneurs fall into the same cycle. Maybe you have as well! Are you in the cycle of working your fingers to the bone, just to keep your head above water? No exercise? No healthy food? And – let me guess – no time for your family? If that describes you, then you are indeed in the trap, my friend.

Chasing Your Tail

The popular entrepreneurial author Barry Moltz coined a phrase to describe this occurrence: the Double Helix Trap. The trap works something like this – you work as hard as you can, focusing your efforts on servicing your clients. But then sales drop – you are busy serving clients, after all, not selling. So then you do everything you can to boost sales. You network like mad, you call prospects, you do everything to book business.

But then, since you are selling, you are not making money – you need to do the work to make the money, so you are back to serving clients and not selling. You are indeed caught in the trap!

Self-Evaluation Time

There is a way out of the trap, believe it or not. The way out is through the process of asking two simple questions, answering them honestly, and then taking two simple actions.

First, you want to ask yourself, every 90 days, “What’s working?” You will need to list all the things you have been doing in the past 90 days that is making you money. Is there a specific way you are marketing that brings in the most leads? If so, that is working. Is there a specific client who keeps buying repeatedly from you? If so, that is also working. Is there one service or product you have that is bringing in the nicest profits? If so, that is working. Once you identify what is working, you now need to amplify it. Do more of that! You need to think about, plan on, and simply start doing more of what is working.

But this is only half of the equation. The other half is to ask yourself what’s not working. Similar to what you did above, you will need to list all the things you did in the last 90 days that are not working. Is there a specific way you are marketing that is not bringing in results? If so, that is not working. Are there certain clients that you work hard for, yet they aren’t paying you? That, clearly, is not working! Is there a service offering that is just not selling? That is also not working.

With the not-working stuff, you have two options. One is to reduce and eliminate it as quickly as possible. The other is to find a way to modify or change it so that it gets into the working category by the next 90-day evaluation.

Trusting the System

Obviously, this 90-day time-frame analysis system is not scientific. And I’m sure there are a million arguments out there, stating why some things need several years before hitting their peak. (I mean, some fine wines need 100 years to hit their prime!) But the point here is that a lot of parts of your business can be evaluated every 90 days, and these two questions can be asked.

And once you do ask, despite it sometimes being difficult to handle the answers because maybe you really want certain things to work and they are not, you will ask yourself why in the heck you didn’t stop that a long time ago, and do more of the other thing a lot sooner!

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Volunteering Teaches Entrepreneurship

Learn Entrepreneurship By Volunteering

If I offered you a chance at an internship that would rock your business, and your business potential, more than any class you could take anywhere, would you sign up? Yes? OK, then get out there and volunteer somewhere. Volunteer? Yeah. It’s a good thing. I mean, duh!  It helps our neighbors, our communities and our country and it helps us. Yeah. You and me and everyone. Millions of us volunteer in one form or another. We deliver meals to shut-ins, swing hammers and paint houses with Habitat for Humanity, fill boxes at the local food bank, or serve dinners at local homeless shelters. We’re out there baby!  In fact, according to the Bureau of Labor Statistics, around 63.4 million people in the US volunteered last year. That’s 26% of the population.

So why do all these folks volunteer? Lots of reasons. Obviously the financial gain is NOT one of those reasons, but there are other kinds of rewards and remuneration. People volunteer because they get more out of the experience than what they put into it. The whole feel good, put a gold star on my emotional chart is one thing. But you also can express yourself, meet new people, make new friends, learn new skills, network and rub elbows with community leaders you might not ever meet otherwise. But there’s one more reason to volunteer: You can learn to be a kick ass entrepreneur along the way—especially if you go into it seeing it as both a chance to give back and an opportunity to learn and hone your people and job skills.

I experienced all that stuff first hand by spending a few days planning, and then working, at the food bank in my community.  Man oh man, did I experience some hard core business lessons, and so will you…

 

Lessons Learned

Going into volunteering, you may think you are the ultimate nice guy, the generous guy, giving of your time and skills. You’re just going to walk in, do some work, help a few folks and earn some brownie points. But if you really want to see what being an entrepreneur is all about, volunteering in a leadership position will give you important insights into what it is like to run a business and to rely upon others to have your mission carried out. Consider it a trade in a lot of ways, your time for life lessons. Getting others to do the things you want or need them to do is hard enough when you’re paying them. When they are simply volunteering their time, it becomes a whole new ballgame, one that requires inspiration and clarity in the common vision in order to effectively lead them and meet all the objectives.

There are a lot of important things that volunteering will teach you about entrepreneurship, but here are the ones I learned first hand:

Focus. How easy it is to get off track! When people work, they often get distracted. This is especially true with volunteering. Even people who know each other (and those who don’t) can be easily sidetracked into conversation. You’ve seen it happen in your workplace right? Well, it happens everywhere. The work grinds to a halt and you’re the one who has to light the fire to get things popping again. You can’t whip volunteers (or employees), or hold a performance bonus over their heads. So you need to find a way to support both rapport among the team and getting the work done. You have to learn to go in prepared and to be aware of how to influence and motivate your volunteers.
Listen. You will also learn, when volunteering, that everyone has a better or new idea. The thing is, people volunteer because they want to be helpful and they want to share what they know and be rewarded and acknowledged for their contribution and its significance. So ideas (as dumb as some are) come fast and furious. You’ll need to learn to acknowledge their input while focusing that energy on going about the work in one consistent way.

Recognize. Want to keep your volunteers motivated?  Lavish them with praise and recognition for their efforts and for a job well done. But only use this to reinforce the good things, like when they are doing the right things right!

 

 

The Hardest Lessons

Becoming humble is perhaps the hardest and most important lesson you can learn from doing volunteer work. You realize at some point along the way that in the grand scheme of things, you really aren’t all that important. I had to step away for an hour during my volunteer project and, sure enough, productivity actually hummed along (even increased) when I was not there. The lesson here is that you, as an entrepreneur, need to set the course, get people fired up, and then, for God’s sake, get out of the way and let them do amazing things.

Volunteering to organize something for your community may not put money in your pocket. But there is a good chance it can help you become a more insightful business leader, as it did me. By honing in on the important lessons that you learn as a volunteer, you can use what you learned to work with your own employees. And those lessons may just take your business to the next level, which is priceless.

If you want to read more about volunteering, check out Volunteer by Charlotte Hindle.

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The Challenges Financial Advisors Will Face in 2019 by Wendy Barlin

I’ve interviewed advisors and conducted research across the United States and have determined the most common theme for business success going into 2019, is to “specialize in a niche market”.  It is important to understand Millennials have different needs than Baby Boomers or Generation X and determining where you add the most value & working only with clients where you can make a difference, will be a key factor in your success as an advisor in 2019.  

SEIA Advisor, Michael McCauley’s 2019 focus is to “stay in your lane” and stick with clients that you know you can add value and understand that you cannot help everyone. The market will always fluctuate in any given year, largely out of our control. How we react, how we respond to our clients and how we face these challenges is more easily addressed with a narrow market focus. Millennials may not be affected by one swing in the market but have different concerns, while Baby Boomers may need more attention in a downward swing market. You can more easily prepare for these needs and help focus clients in a strategic way if you work within their niche.

Another common strategy for 2019 is to rebrand yourself within your current client base as a money coach or consultant, offering teaching & training and discussions about money, investments, security and planning. This will set you apart from the competition. Chantel Bonneau, CFP with Northwestern Mutual, sees more opportunities than challenges in this strategy, as advisors are more regularly being called upon to step up and coach their clients. Be there to teach and help clients understand their money and their choices through good times and bad. Market fluctuations will make you more valuable to your clients when you offer these services.

The Question most advisors are asking going into 2019 is, how do you differentiate yourself as an advisor in a crowded and competitive marketplace? Our Advice, beyond finding your niche and expanding into coaching, you need to be able to quantify your value. How many clients do you serve? What is your retention rate? What is your referral rate from existing clients? Being able to quantify and express this to prospective clients is extremely powerful. Arielle Jacobs CFA, an advisor with Capstone Partners, is always asked by prospective clients how their firm differentiates themselves from others. This is an important question and advisors need to ask themselves, what makes us special beyond what clients already expect us to be good at? Is it our Advisors, our systems, our services or all of the above? Find something quantifiable, easily measurable, and presentable to clients as your unique selling point.

2019 is gearing up to be an exciting year, full of countless opportunities for advisors to step up and add value for their clients, don’t be left behind!

 

About the Author

Wendy Barlin is a Certified Public Accountant with 20 years experience spanning diverse industries such as entertainment, professional services, hospitality, real estate and medical groups. Wendy is originally from South Africa and after a year traveling abroad, fell in love with the sparkle of the City of Angels and decided to make Los Angeles her home. Wendy is a member of the AICPA and CAlCPA societies.

Barlin Business Solutions is so much more than an accounting and income tax firm. They specialize in taking all the tedious financial chores off the shoulders of busy professionals so that they can focus on areas where they excel.

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5 Biggest Mistakes in Healthcare Staffing by Susanne Mariga, CPA

When one starts a business there is rarely someone available to guide you through every possible twist and turn.  To give you a head start and to help you avoid some of the pitfalls along the way, I interviewed 5 amazing thought leaders in the Healthcare Staffing Industry.  These are individuals who are truly steering the pack with their excellence in operations, experience, and revolutionary ideas.

1. Giving Up Margins For Volume … PK Scheerle, RN and CEO of Gifted Healthcare

Gifted Healthcare is listed as one of the Country’s 2018 Fastest-Growing Staffing Organizations by Staffing Industry Analysts (SIA).  The commitment to their nurses and clients has contributed to a 30% annual growth rate allowing them to gross revenue of $56,543,000 in 2017.  PK Scheerle, CEO of Gifted Healthcare, warns that sometimes, new healthcare staffing firms in an eagerness for growth and customers, against their better judgement trade hours for low margin sales. When this happens a Healthcare Staffing Agency can end up in a place where they find high volume business does not equal profitable business.  When margins are low a Healthcare Staffing Firm is unable to sustain. They are unable to hire the best internal staff, they are unable to pay payroll taxes, and they are unable to invest in the development of the company.

PK Scheerle advises that it is just not enough to give up margins.  She advises it is best to hold on to the margins and in exchange for low prices Healthcare Staffing Agencies should provide the best service that it can.  PK advises that Healthcare Staffing Firms should invest time in developing their Best Alternative To A Negotiated Agreement (BATANA) and spend the time understanding what keeps their clients up at night.  For example, if there is a new emergency room that just opened in the area, it is a wise investment to get to know the owners and ask if they need 3 to 4 available and experienced nurses. PK says offer your firm up as the firm of quality and convenience letting customers know that you have 4 nurses ready to go.  PK advises that a developing firm should build a strategy of increasing their client prospect pool by calling every reference that was ever received for a nurse. She advises developing relationships and taking a deep dive to understand how your firm can bring something that matters to clients.

PK advises one to learn to convince and negotiate during difficult conversations. For example, a healthcare staffing firm may be able to negotiate terms with a client for a nurse who is willing to work 48 hours a week and is willing to stay 20 weeks with a client requesting a tenure of 13 weeks.  By offering your client a nurse willing to work additional hours a week and who is committed to stay longer, this benefits the client who is now able to save 4 days of orientation, increasing efficiency and reducing overall training cost. In another example, the nurse is unable to work a 12-hour shift, however, the nurse is available to work the busiest and hardest to fill shifts for the client.  

PK tells Healthcare Staffing Firm owners that they are smart and valuable and have something to offer.  Clients want to pay for no-nonsense service and by offering solutions that make a client most successful, a health care staffing firm will achieve the title of the most valued partner without feeling the pressure of lower margins.

2. Coasting on Auto Pilot … Linda Murphy, VP Client Sales of AMN Healthcare

AMN Healthcare is a Fortune’s 100 Fastest-Growing Company and is listed as one of the 2018 Largest US Staffing Firms with revenue over $100 Million by Staffing Industry Analysts (SIA).  Linda Murphy advises that one of the biggest mistakes that can occur within a Healthcare Staffing Firm is that once they reach success and objectives are met the Healthcare Staffing Firm may begin to coast on autopilot.   This coasting of autopilot mentality can result in missed opportunities and a failure to adjust to the changes required within the market. Linda Murphy advises Healthcare Staffing Firms to constantly be mindful of what is happening in the industry.  She challenges that as long as a competitor has market share, there is still work to do.

Linda Murphy advises Healthcare Staffing Firms to embrace change while they are successful.  This includes continuously investing in research to determine if a new prospect fits the company’s business model, desires, and risk tolerance.  Linda advises Healthcare Staffing Firms to look for opportunities for partnerships with competitors in Master Service Provider contracts and with the Centers for Medicare and Medicaid Services (CMS).  

CMS establishes rulings each year to ensure they are delivering quality care to Medicare patients and are meeting the needs of the population.  Linda Murphy believes that the CMS is very prudent and values input from members of the community to implement real-world ideas. The CMS is focused on quality and providing a positive impact to its patients and there is an opportunity for Healthcare Staffing Firms to work together with the CMS to help them meet this goal.  Linda Murphy encourages Healthcare Staffing Firms to maintain an agile mentality to maintain innovation. She believes that this innovation doesn’t need to be an extreme shift but can be as slight as gaining greater share into the current market. For example, if one is already well established in nursing consider entering into physician care or allied health opportunities.  Healthcare staffing firms must be willing to plan and ask themselves “where do I want to be or what do I want to do”, and those that hold out on change will lose opportunities.

3. Failing to Understand the Complexities in Regulations of a Multi-State Environment … Scot Thompson, President & CEO, C&A Industries, Inc.

C&A Industries, Inc. has received the Best Places to Work In Omaha Award since 2009 and is the recipient of the 2018 Circle of Excellence award.  Scot Thompson, President and CEO of C&A Industries, Inc. is listed as 2018’s 100 Most Influential People in Staffing.

Scot Thompson warns that Healthcare Staffing Firms operate in a complex everchanging multistate regulated environment and the failure to maintain that compliance can be detrimental.  Not only are there federal and state regulations, but there are compliance requirements on a municipal level, and Healthcare Staffing Firms must be aware and in compliance with these.  These regulations not only encompass tax regulations but also include employment regulations. C&A Industries, Inc. has invested in its accounting department in order to stay on top of ever-changing regulations, however, for blooming Healthcare Staffing Firms Scot Thompson recommends that these firms invest in the use of a tax advisor that has expertise in multi-state compliance requirements.  

4. Lack of Balance and Diversification … Bill DeVille, CEO & Co-Founder Health Carousel

Health Carousel is one of the 2018 Inc. 5000 Fastest Growing Private Companies in America. It is voted Best Place To Work In Cincinnati, Ohio, and is a Staffing Industry Analysts (SIA) Largest US Healthcare Staffing Firm.  Bill DeVille warns there is a balance between focus and diversification and a Healthcare Staffing Firm must get it right. Without a diversified customer base, a Healthcare Staffing Firm is vulnerable if one client goes wrong.  If a Healthcare Staffing Firm is trying to be too many things when they are too small, they can end up sacrificing quality and end up nothing to nobody.

Bill DeVille encourages Healthcare Staffing Firms to consider building enough diversification that alleviates the Healthcare Staffing Firm from becoming overly dependent upon one employee or one specific account.  He urges Healthcare Staffing Firms to consider becoming a strategic player or a dominant player in a niche.

To discover one’s sweet spot, Bill DeVille encourages Healthcare Staffing Firms to find the unmet need in the market by discovering the client who is not being served well. However, Bill warns, there is usually a reason companies aren’t serving the unmet need.   The Healthcare Staffing Firm should consider “why” other healthcare staffing firms are not solving this problem and how they may be able to solve it. In entering a new market or becoming a dominant player, Bill DeVille warns that a Healthcare Staffing Firm will face obstacles.  For example, a new Healthcare Staffing Firm will need to build credibility to solve the problem for its clients. The Healthcare Staffing Firm will need to build enough trusted relationships by delivering on its promises. To truly become the “Go To Market Expert” the Healthcare Staffing Firm will need to build credibility and market acceptance with the right balance of diversification.

5. Following the Leader … Jeff West, Regional Branch Manager, Nursing Division, Aureus Medical

Aureus Medical Group is a nationwide leader in healthcare staffing and an affiliate of C&A Industries which has more than 45 years of staffing experience.  Jeff West warns against Healthcare Staffing Firms becoming stuck in a follow the leader cycle. Jeff West believes that Healthcare Staffing Firms should focus on continuously self-defining excellence by making themselves better with an inside/out approach.

To focus on being the best at placing Healthcare Staffing professionals, Jeff West recommends that Healthcare Staffing Firms know their people and provide a plan and a vision for the culture that they want to build.  Building the right culture includes hiring the right people and projecting goals for the next 30 to 60 days, as well as, the next 3 to 5 years.

In developing a Healthcare Staffing Firm from the inside out, Jeff West recommends that Healthcare Staffing Firms build a reputation as a credible expert.  This can be done by being the resource of education and information for your clients, continuously educating them about current market trends. This education should also be provided to internal team members and to nurses so that these team members can also teach and advise your clients.  Jeff West believes that although a lot of people come into the industry, credibility and solid reputation is built by what you say and how you follow through. Over time doing the “right thing” builds credibility.

6. Bonus … Failing to change when things just aren’t working … Susanne Mariga, CPA, Certified Profit First Professional and Managing Member of Mariga CPA PLLC

It’s easy for Entrepreneurs and leaders to get into the trap of hoping things will change and turn around.  In instances of an underperforming employee, many of us get caught up with the long-term coaching of a loyal team member who is just not capable of turning around. We are afraid to raise our prices due to the fear of loss of a long-time client.  We get too busy just getting things done to examine our own processes to discover more efficient ways of achieving the same end.

When we sanction the status quo or allow things to continue in a downward spiral, we lose not only valuable time and money, but we lose opportunities and our reputation.  When we keep an underperforming employee under our wing, we send a clear message to our other team members that we sanction incompetence and expect the other players to pick up the slack (until they choose not to).  When we fail to raise our prices to keep in line with the growing cost of wages and overall inflation, we slash our ankles because we are no longer able to retain the best and the brightest or stay at the forefront of technology. When we are busy stuck in the production and fail to look up, we miss the opportunities in front of us.  We fail to build relationships with our clients and we fail to hear the hints they express when they tell us what they wish they had.

When marketing initiatives just aren’t working and new service lines or great ideas just aren’t panning out, there is gold in quickly evaluating the situation, turning the ship, shutting off the faucet, and discontinuing the bleed. When we allow a bad situation to fester it rarely improves on its own.  When things just aren’t working, quickly evaluate, continue to evaluate, and change.

About the Author

Susanne Mariga is a Certified Public Accountant, a Certified Profit First Professional – Mastery Level, a Certified Business Coach, and the Managing Member of Mariga CPA PLLC.  Susanne Mariga is a graduate of the Ohio State University and the daughter of an entrepreneur. Susanne has a personal mission to eradicate entrepreneurial poverty in the Healthcare Staffing Industry.

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The Queen Bee Role

 

The Queen Bee Role (QBR) is the singular most important activity within your business that delivers on your brand promise. That is a doozy of a sentence, so let’s break it down to the critical elements:

The QBR is always an activity. And it is always at the Doing level.
The QBR is always a singular activity. You are likely doing many activities that support your brand promise, but only one can be the most important. That critical activity is the QBR.
The brand promise of your company is the greatest commitment you assure the customer will receive when they do business with you.
This is why the QBR is the heart of your organization – it is the most important activity influencing the survivability and thriveability of your company.

Your brand promise is the pledge, assurance or guarantees you make to your customers about what they will experience with your company. This is the most compelling reason to why clients do business with you. And the QBR is the activity that most makes the brand promise a reality.

In short, the QBR delivers on the promise.

Examples of a QBRs are:



Company
Brand Promise
QBR


FedEx
We deliver your packages on time.
The movement of packages (logistics).


Savannah Bananas
Fun. Family. Entertainment.
The ideation of fresh, fun family entertainment.


Your local doctor
An accurate prescription for your health.
Spot on diagnosis.


Fast Food Restaurant
Food served fast.
The assembly of burgers (and other foods) as fast as possible.


High End Restaurant
Remarkable food.
Preparation of food that tastes extraordinary.


Mike Michalowicz

(author)
Complex business ideas made simple and actionable.
Write books that are easy to digest, empowering and delivers results.


Joe’s Lawn Care
Vacation in your backyard.
Landscape design services.

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Do I Need to Use Bank Accounts with Profit First?

The post Do I Need to Use Bank Accounts with Profit First? appeared first on Mike Michalowicz.