Mike Michalowicz's Blog, page 57

4 Tips to Ensure your Allergy Practice is Profitable in 2017 by Wendy Barlin

Running an Allergy Practice is no easy task! Running a highly profitable one is even harder.

As a CPA who focuses on Allergy Practices, I wanted to learn what the most successful practices did to ensure a health practice and how I could help my clients achieve greater PROFITS……

My aim was not to uncover the basics, but to dig deeper into the financial operating processes and mindsets of highly profitable firms.

Below is what I learned.

When it comes to a successful business, there is no doubt that profitability is a critical indicator. In fact, it is one of the most vital elements that must be present in order to ensure that a business is self-sustaining and will continue to grow its customer base. Not to mention that if you ever want to sell your company for a pretty penny you must be PROFITABLE.

When it comes to actually obtaining the best profit possible rather than simply acknowledging its importance, of course, things become a bit more complicated. This is perhaps especially true in today’s business landscape. Consumers today have more options than ever before when it comes to the services and businesses they frequent. That is why it is so important to ensure that you are doing all that you can to provide the best and most smoothly run service to your patients.

To determine the best way to ensure profitability for allergy practices this year, I reached out to industry experts for some advice and insight. I was fortunate to interview three specialists, and they gave me some great tips about the most important factors that influence success. Let’s take a look at what they had to say, and examine three tips to ensure that your allergy practice is profitable in 2017.

1.) Embrace the Present (and the Future)

Adjusting to new technology can be difficult for any business. In industries where diagnosis and treatment tends to happen in person, however, the adjustment to new care methods can be particularly challenging. With that said, there is no avoiding the changing healthcare landscape. Harry Nelson, founder and managing partner of Nelson Hardiman, believes that looking to the future of healthcare is one of the best ways to ensure profitability for an allergy practice. He suggests paying attention to things like tele-health services that provide convenient advice and diagnosis to patients without requiring them to come in for an in-person visit. Concierge direct care is another growing service area to keep an eye on.

Summary: Stay current and leverage technology

2) In-Office Sales Are Key

Lee Sheinkopf, MD, a board certified allergist/clinical immunologist of the Allergy Asthma Care Center, has valuable experience in improving the profitability of practices. She believes that one of the most important things to emphasize when it comes to increasing profitability is to sell more point-of-sale items in your office itself. This refers to things like pillow encasements, shampoos, and other items that patients might find helpful in treating their allergy issues. This is especially important if you are going to recommend that patients try solutions like using a pillowcase that eliminates dust mites – why divert your customer to other retailers when you could sell the relevant items yourself and increase your profit in the process?

Summary: Make it easy for your customers to purchase products directly from you rather than the big box stores. Convenience trumps price.

3) Specialization Trumps Generalization

There is a tendency in today’s workplace to cross train employees in many different roles. You might have one employee who was hired to code medical records, for example, but ends up spending a lot of time answering the phone, scheduling appointments, and even checking in patients. Dr. Trenkle believes that this is a mistake. In order to ensure knowledgeable and smooth service, it is important to hire a team of people who are specialists in what they do – and to have them focus on that particular role.

Summary: Hire talent for the primary role they will be performing.

4) Implement a “pay yourself first methodology”

“You as the owner of the firm are more dedicated, more invested and more committed to the success of the company than any employee ever will be. Yet many owners pay themselves last or in some cases not at all.” says Mike Michalowicz Author of Profit First and CEO or Profit First Professionals.

Are you ready to increase your profitability in 2017? Follow the above advice, and you’ll be well on your way!

Explore these ideas further at the following sites:

Nelson Hardiman – www.nelsonhardiman.com

Dr Lee Sheinkopf – www.ilovemyallergist.com

Dr Raffi Tachdjian –  www.airedoc.com

Dr Geoffrey Trenkle – www.laentdoctors.com

Wendy Barlin is more than an accountant. She is a Personal Business Manager and financial confidante. Her specialty is taking all the tedious financial chores off the shoulders of busy professionals and business owners so that they can focus on the areas where they excel. Wendy is a member of the California Society of CPAs and the American Institute of Certified Public Accountants. She served on various committees for the Jewish Federation of Los Angeles and is a mentor for the Jewish Vocational Services Mentor Program.  You can learn more at wbarlincpa.com/

 

Give and Ye Shall Get

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.

Different is Good

The hottest meme (an idea or behavior that gets copied or imitated by people, over and over again)a few years ago was a CVS sales receipt.

When something is different than expected, it gets noticed. In this case it is the longest sales receipt ever. But the tiniest receipt ever, the size of a postage stamp perhaps, would get noticed too. So would one chiseled into metal. Or stone. Or ice.

Regardless of the category, different, strange, unexpected, weird, atypical, odd, bizarre, unfamiliar – all get noticed. Some of them, if they are lucky, get talked about a lot. A real lot. If a meme can occur around a sales receipt, it surely can occur around something in your business.

Trigger the next meme.

The Mom & Dad Marketing Plan For Profit First

In an effort to market my new book, Profit First Revised & Expanded, I employed the best (and most affordable) marketing experts this side of the Mississippi: my Mom & Dad. Profit First launches this February 21, 2017.

10 Ways Churches Can Thrive Financially by Ruby Tan

Many years ago, I invited a non-Christian friend to volunteer with me at a Christian organization for their annual fundraiser. She was surprised to have received so many phone calls from strangers who wanted to give. She said, “At my work place, I had to call our customers who owe us money repeatedly to pay us, but here, people just called in to give money.” What a great testimony for all the cheerful givers. Nonprofit organizations and churches depend much on the giving of it’s community. Church leaders agree that when the congregation’s giving decreases, the church suffers financially. However, that is only a portion of the equation. The larger portion lies on how money is managed, physically and spiritually. Here are the 10 ways churches can thrive financially.

Teach Godly Financial Principle – Many families, including church-goers, suffer from financial difficulties not necessarily due to lack of income as many would think although it is a possibility but more often due to a lack financial discipline. People are searching on the internet as to how to create a monthly budget. It is important for churches to teach their congregation and their leaders alike how to budget, give generously, set spending priorities, and be good stewards of the resources God provides for us. In Matthew 25:21, we see what the master says to his faithful steward or servant, “. . . Well done, good and faithful servant, you were faithful over few things, I will make you ruler over many things.”
Be As Transparent As Possible – According to Dr. Charles Stone, churches should be transparent about their financial condition. This internal process and money management works because it builds trust in the church. This means the financial records should be made available to the congregation. Proverbs 11:14 says, “Where there is no counsel, the people fall; but in the multitude of counselors there is ” The congregation may or may not be counselors, but the church is accountable to them.
Develop A Clear Communication –More often than not, lack of communication leads to misunderstanding, contention and withdrawal.  Amos 3:3 says, “Can two walk together, unless they are agreed?” If a church takes on projects and/or ministries without clear communication with their congregation, when financial responsibility is passed on to them, their giving is no longer cheerful giving, but giving out of obligation. On the other hand, when the church and congregation communicate well in everything they do, both will reap the benefits together. Ecclesiastes 4:9, “Two are better than one because they have better reward for their labor.”
Pray Without Ceasing 1 Thes 5:17 – Jesus warns us in Mark 13:33 by saying, “Take Heed, watch and pray, for you do not know when the time is. Although this passage refer to the coming of the Lord, but it encourages us to be vigilant. Do you know when the giving in the church will drop? You may argue that you could do a forecast. As much as you have planned, which you should, the unexpected may take place. One pastor I spoke with shared this story. His congregation gave an approximate of $200K on a monthly basis. Due to certain circumstances, the giving went down to $35K. Through many prayers different individuals gave extra and some wrote large checks which helped them make up the difference.
Trust In The Lord – Proverbs 3:5-6 “Trust in the Lord with all your heart and lean not unto your own understanding. In all your ways acknowledge Him and He shall direct your paths.” As stewards, these promises are extremely meaningful as we face inconsistencies in giving and insufficient funds when paying bills. The Lord promises in Isaiah 40:31, “Those who wait on the Lord shall renew their strength; they shall mount up with wings like eagles, they shall run and not be weary, they shall walk and not faint.”
Obey The Word Of God –If you are willing and obedient, you shall eat the good of the land. Isaiah 1:19. Samuel gave God’s commandment to King Saul to completely destroy the Amalekites. King Saul destroyed everyone but he took Agag, the king of Amalekites, alive and spared the best of his flocks for sacrifice to the Lord. He thought he had done well because he had reserved the best for sacrifice but he was wrong. As the result, his position as a king was given to someone else. 1 Samuel 15:22, Samuel said, “. . . Behold to obey is better than sacrifice and to heed than the fat of rams.”
Segregate The Want from The Need –What we want is not necessarily what we need. Nowadays it is hard to distinguish want from need because we use those two words interchangeably. The bible says that we only need two things. 1 Timothy 6:8 says, “Having food and clothing, with these, we shall be content.” Dave Ramsey simply put it, “If you can’t afford it, you don’t need it.” Therefore, having identified what is ‘need’ and what is ‘want’ in the church, when it is time to slash expenditures it makes it a lot easier.
Learn To Be Content – Contentment goes hand in hand with above. Though it sounds simple, it is nowhere near simple at all. The apostle Paul who had been through ship wrecks, poverty, hunger, imprisonment and a host of other conditions stated that he had learned to be content in whatever state he may be in. Philippians 4:11. “I once heard great advice from a wise mother she said, “Learn to do with, and learn to do without.”
Set Up A Reserve – In the world of ‘for profit’ businesses, when a business makes some profit, they may keep a portion of the profit within the business for reasons such as expansion, big purchases, and for emergency funds. Likewise, churches should begin a reserve account that can be used to support the expenditures when giving in the church shrank due to lost of employment among the congregation, for example. Proverbs 21: 20, “There is desirable treasure and oil in the dwelling of the wise, but a foolish man squanders it.”
Adopt ‘Purpose First’ principles of Profit First for Non-Profit – Do Profit First principles apply only to businesses that focus on making profit? The answer is no. Although it may have been intended in the beginning to always generate profit for businesses, the principles can be applied to non-profit organizations and churches. It is a system designed for clarity and cash management in order to do the best with the resources we have. This mindset can absolutely be applied to your purpose as a non-profit.

How? Ecclesiastes 11:2 (ISV) “Apportion what you have to seven and also to eight, for you do not know what disasters might befall the land.” Profit First principle deals with human behavior for managing cash flow, dividing income into several accounts. Since humans are involved in for-profits and nonprofits, Profit First principle will serve both worlds well.

To learn more about our contributors:

Dr. Charles Stone can be found on his blog www.charlesstone.com and at his ministry, Crown Ministries, www.crown.org.

Many thanks to the pastors who did not want their names mentioned. Let the name of the Lord, Jesus, be glorified, the Word of God.

Ruby Tan is the owner of Cela Bookkeeping Services, LLC (www.celabookkeeping.com); a firm that helps churches and nonprofit organizations manage their finances through ‘Purpose First’ methodology, a Profit First principle with www.ProfitfirstProfessionals.com ; a MoneyLife Coach volunteer for Crown Ministries; a born again Christian; a mother and a wife who loves to cook.

The Power of Listening

The key to networking is not in the talking, it is in the listening and asking questions. This is true for a few reasons:

1. People like people who are interested in them. The more you ask questions about them, and simply listen, the more they will automatically like you.

2. You learn from listening, not talking. By asking questions you will learn about this person, and you can find if there is a connection for business or something else.

3. The people who listen and ask questions actually control the conversation. If there is something specific you want to learn or need to know, just ask and the direction of the conversation will go that way.

Now that we have clarity on the power of listening and asking, there is a way you can become instantly better at it: networking solitaire. The method is this, for every person you meet mentally list ten things about them or their business that is remarkable, unique or interesting. Once you get your ten, go to the next person.

On average it will take you 8 to 10 minutes to get your ten points. Which, in the networking world, is the perfect time to move on. Just be sure to grab a business card before you part ways, so you can follow up if an opportunity exists.

And be sure to jot down a few of your mental notes on the card, before your store it away. That way, when you do your follow up with them you can pick up where you left off. And that’s darn impressive.

Episode 132: Be Profitablie from the Start with Tess Wicks

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Show Summary

On this episode we talk with Tess Wicks and discuss how Profit First can be applied to start-up businesses.  A lot of businesses start up and believe they have to put all of their money back into the business until one day it can be profitable.  Tess Wicks tells us something totally the opposite. She says a start-up business needs to be profitable from the very first moment. If you’re making a hobby into a business or deciding to go all in from the get-go, Tess walks you through all the steps to ensure profitability from day one and forever more.Welcome to Episode 132 of the Profit First Podcast!

Our Guest

Tess is the Backpocket CFO for small businesses and online entrepreneurs. She is the founder of her financial consultancy, Creative Profit Co. where she shows business owners that they’re never too small to think big about business. Creative Profit Co. works with their clients to implement the processes and systems that will make them the most profitable, Profit First being one of them. Tess is an actuary by trade and comes from the consulting world, helping Fortune 500 companies save money through analyzing their benefits. After one-too-many 2 AM “data parties”, Tess packed up her calculators and dove headfirst into the risky world of entrepreneurship. Through tinkering in software, content marketing, building a media company and personal finance coaching business, Tess found herself back in an ironically similar financial consultant role; however, this time she’s using her financial know-how and analytical powers to help her fellow entrepreneurs grow a sustainable business and finally make the profit they deserve.

Guest Links

Website: www.tesswicks.com/creative-profit-co

Facebook: @CreativeProfitCo

Twitter: @Tess_Wicks

Instagram: @Tess_Wicks

Corporate Partners

Receipt-Bank – Software and service to make the gathering, storage & processing of bills, receipts and invoices as easy and as cost effective as possible for businesses.

Nextiva – VOIP phone providers for small businesses.

Fundera – Single source online funding for entrepreneurs. Also offers an adviser program for CPAs, bookkeepers and business coaches.

Fundbox –  The simplest and fastest way to fix your cash flow by advancing payments for your outstanding invoices.

Xero– Accounting software with all the time-saving tools you need to grow your business. Xero is always secure and reliable and our experts are here to support you 24/7.

The Pros and Cons of Hourly vs. Salary Pay for the Gym and Fitness Industry by Shannon Simmons

Have you ever asked yourself, “How should I pay my coaches and employees?” I suspect you have. The consideration of hourly versus salary is one of the most daunting challenges gyms and fitness centers face.

Here are some pros and cons of paying hourly instead of salary and of course there’s always the straight commission method as well.

1st Pro: SPEED – As the owner you have the ability to change your costs much faster when paying hourly. If for any reason you need to cut payroll you can simply cut hours and reduce your cost.

1st Con: LOYALTY – If you must cut costs as mentioned above, your coaches lose their trust in you AND their dedication to your gym. If you are able to provide a salary, the coach has security in their job, begins to treat it more like a career and will be loyal to you and your gym. – Nick Berry, Fitness Revolution

2nd Pro: CLARITY – The starting wage for hourly employees is usually much more straightforward given the local market. – Michael O’Koomian, MOK Capital Advisors

2nd Con: CONFUSION – It can be difficult to determine a starting salary. There are formulas to use and this is also something which a bookkeeper or accountant should be able to provide assistance.

You can also approach your employees with a starting salary with a promise to revisit in 30, 60 or 90 days. By starting low, you won’t be overpaying but they have a sense you care because you are working to provide them with a steady reliable paycheck.

You can also keep steady salaries low but add in corporate goals to achieve quarterly bonuses. This way you’ll only have the additional cost of the bonuses if the coach earns it and therefore affords you the revenue to pay her/him. A great place to get started thinking about corporate goals is The Great Game of Business by Jack Stack and recommended to us by Dean Carlson of Get Fit NH.

3rd Pro: FREEDOM – If you pay your higher level managers a salary but your coaches are only there to implement their programs and do not have responsibility outside of showing up to work directly with your member, the coaches may enjoy this freedom over the security of a regular salaried pay check. This also ensures your members are getting the programming they want and need as well as the encouragement from a friendly face on a daily basis. Frank Nash of Frank Nash Training Systems

3rd Con: LIMITING – When paying by the hour, your employees may only train or work when they are on the clock. For salaried employees you can add other administrative tasks, especially for those employees who have an added incentive for a quarterly bonus. Adding these tasks to a salaried coach reduces the need for administrative overhead positions, thus cutting other costs in the organization.

While coaching several gyms on profit improvement this past month, I have found that this decision is one of the biggest factors influencing continual profits. Consider all the pros and cons closely, and contact me at Shannon@NetBooksAccounting.com if you would like further direction.

Shannon has been consulting with small businesses for nearly 10 years. After 2 years in public accounting she saw a need to work for small business owners to teach them how to grow financially healthy businesses. She has built on her Master of Accountancy degree from Manchester University by becoming a Certified Profit First Professional and a Certified QuickBooks ProAdvisor. When she’s not meeting with entrepreneurs or assessing their businesses she enjoys time with her husband and 2 children serving in their community, playing and watching sports, marveling at nature or reading a good book.

7 Tips for Independent Bicycle Dealers to Grow Profits This Year by Eric Levenhagen

Profitability is the main key to business success. Some analysts say right now is as tough a time as any to be an independent bicycle dealer (IBD). The industry has been on the decline as of late. Since 2000, the number of IBD shops has almost been cut in half. If you don’t want to get left in the dust, take notes from some of the industry’s most notable experts to get pedaling down the path to a more profitable business this year.

Tip 1: Improve Your Customer Service | Jay Townley

According to Jay, bicycle shop owners must sit down and consciously think of what they can do to welcome everybody into their shop. Many bicycle shops have gained a reputation over the years of being exclusive to a certain demographic – mostly middle-aged men who have been avid cyclists for a long time. By not catering to a bigger audience, shop owners are leaving a lot of opportunities (and money) on the table.

For instance, women make up over 50% of the U.S. population. Greeting a woman as she walks into your store can have a big positive impact. There is also data that suggests up to 55% of potential customers who leave a store without buying a bike went to another bike shop and purchased one. This could be 4-5 shoppers per day in a typical store and an extra bike sale per day.

Action Steps: Have an employee (preferably a female) greet every customer as they walk into your store. Engage these customers in their buying process, whether they are a seasoned cyclist or a first-time buyer.

Jay Townley is the co-founder and partner of Gluskin Townley Group, a consulting firm with over 75 collective years of experience in the bicycling, research and retail industries. Find out more about Jay here: http://www.gluskintownleygroup.com/

Tip 2: Adapt to What Is Happening in the Market | TJ Juskiewicz

Shop owners should be aware that it takes much more than offering a brand and traditional advertising to be successful. More and more options are becoming available in the online marketplace. Even the major brands are offering products online. But not everything can be replicated with an online buying experience. Service is easily the most important aspect of the purchasing experience that cannot be delivered over a website.

New bike owners need someone to assemble their bike, recommend and offer accessories, and provide future tune-ups and service work. Building long-term relationships with your customers is the only way to get them coming back to your shop for these services.

Action Steps: Be active in your community so people think of your shop for future service needs, even if they originally bought the bicycle online.

TJ Juskiewicz is the director of RAGBRAI, a seven-day bicycle ride across the state of Iowa. Heading into its 45th year, RAGBRAI is the oldest, largest and longest recreational bicycle touring event in the world. Learn more about TJ and the ride here: http://ragbrai.com/

Tip 3: Consider Taking Advantage of New Trends & Products | Jonathan Weinert

One growing product category in North America the past few years is electric bikes. There are even many exclusive eBike dealers in the U.S. that have been successful. Whether you want to start a new shop geared exclusively toward eBikes or add them to your existing product line, there are a few things to consider. Most consumers who are looking to purchase an electric bike are seeking out dealers to help them. The product is still new, it is more complicated than a traditional bicycle and it is more expensive than a lot of traditional bikes.

Customers want to be sure they are informed before making this substantial investment. They also have service needs that must be met, so establishing a relationship with a service shop is important to this customer.

One bit of warning – dealers who have tried to sample this product line by carrying one or two models in their store are not as successful as those giving eBikes prominent displays and being fully invested in the product line.

Action Steps: Determine if carrying electric bicycles is a worthwhile venture for your store. There are a lot of things to consider, but tapping into this newer trend may mean reaching parts of the population that have not been a bike shop customer for 10 or 20 years and want to return to the activity.

Jonathan Weinert is the Marketing Manager with Bosch eBike Systems. Find out more about them here: https://www.bosch-ebike.com/en/.

Tip 4: Educate Yourself About New Markets | Ray Verhelst

According to Ray, there are two distinct markets for eBikes. One is traditional IBD’s looking to add eBikes to their existing shops. The other is IBD’s that sell eBikes exclusively, commonly known as eIBD’s. eBikes are growing in popularity, but dealers should be aware of the barriers to entry. There are different insurance requirements, financing issues to work through and extensive technical product training, just to name a few. Those dealers that make the leap will gain access to an enthusiastic customer base of riders who are excited and willing to learn about making the most of their investment.

One other new market that is showing signs of growth is the mobile service market. Gone are the days where you must load your bicycle onto your bike rack and take it into the local service shop. Mobile service shops will come to you directly. And they offer many of the same traditional services like new bike assembly, bike fitting, tires, suspension, and so on.

Action Steps: Figure out which new products and services you can add to make your existing offerings more diverse.

Ray Verhelst is Director of the Electric Bike Association, which is the only business to consumer organization within the North American Bicycle Industry dedicated to the eBike community. Learn more about Ray and the association here: http://www.electricbikeassociation.org/.

Tip 5: Evolve as a Retailer | Pat Hus

Consumers are more in control of how they buy and take delivery of products in today’s retail environment. They shop from their phones or tablets and conduct research on products they want to buy. They want to check on inventory status online before driving to the store itself. Progressive bike shops are looking to build their own apps for mobile devices, but this is a steep investment in dollars and time for a smaller dealer.

Instead, look to various apps already developed that are building support in various communities. These apps are embracing new customers and bike enthusiasts in your community by showing them where to ride, what type of gear they need and connects them with other enthusiasts in their community. Small stores should look to support such apps and gain new customers from it.

Action Steps: Figure out how to best leverage technology and an evolving buying experience to gain new customers.

Pat Hus is VP & Show Director at Interbike, the largest bicycle industry trade show in North America. Learn more about Pat and Interbike here: http://www.interbike.com/

Tip 6: Focus on the Life of a Cyclist, Not the Initial Sale | Donny Perry

The bicycle retail industry has been focusing on the wrong thing, says Donny. Instead of being focused on the initial sale of a bicycle, shop owners should be more focused on bringing that customer back for everything else they will need in their life cycle as a bike shop customer. That customer will need to come back for annual tune-ups, eventual service on the bike, accessories and upgrades over time.

Shop owners should look to develop a system to increase their customer’s awareness of reasons to come back to the store. Then the key is to drive revenue on items the retailer either creates or controls the distribution channel. Maybe that’s service work or an accessory line they produce. The profit margins on items the shop owner controls and creates are always going to be the healthiest.

Action Steps: Implement a customer relationship management (CRM) system and use it to automate efforts to drive customers back to your shop. Focus on sales where you create or control the distribution. Consider the sale of a new bike the beginning of a long customer relationship, not a consumer interaction that is one and done.

Donny Perry is the author of “Leading Out Retail: A Creative Look At Bicycle Retail And What All Retailers Can learn From It”. You can learn more about Donny and his book here: http://www.donnyperry.co/.

Tip 7: Plan to be Profitable and Implement a System to Achieve It | Eric Levenhagen

Many small business owners expect their business be profitable. They work towards that goal by driving sales month after month and trying to keep an eye on cash while keeping costs as low as they reasonably can. Some owners use tools like a Profit & Loss Statement to manage these costs, while many others must constantly look at their bank balance to judge their success. These are outdated ways to manage your business finances and won’t help you maximize profits.

First, shop owners should flip the old formula of Sales – Expenses = Profit. This formula leaves the most important thing in your business, your profits, in the least important position (at the bottom). Almost like you’re expected to live off leftovers. Instead, flip the formula like this: Sales – Profit = Expenses. Now you’ve moved profit into a place of priority; your profit is first. Next, instead of working from financial reports that are 3-5 pages long, learn to consolidate the most important financial info you need in your business to one page. It will be easy to look at, easier to spot trends, and figure out where your business needs your attention the most in real time.

Action Steps: Implement a cash management system that puts your profit first. Streamline your financials to look at what is most important. Lean on your accountant or hire a good financial coach to hold you accountable.

Eric Levenhagen is the Managing Member of ProWise Financial Coaching. Learn more about Eric and his firm here: www.prowisefinancial.com.

Now don’t just let all this knowledge sit in your head without action. The only way you really make this next year the most profitable year of all is to do something with what you’ve learned! Implement an idea, measure the results, and adjust as necessary. It’s the only sure way to move forward.

Eric Levenhagen is a Certified Public Accountant and was one of the first thirty tax professionals in the country to earn the Certified Tax Coach designation. He is the managing member at ProWise Financial Coaching where he specializes in helping small business owners minimize their taxes, maximize their profits and enhance their life through entrepreneurial abundance.  In 2015, Eric was selected by his colleagues as the Certified Tax Coach of the Year. Eric is also a contributing author to the best-selling book, Secrets of a Tax Free Life. Learn more at www.prowisefinancial.com

Episode 131: Bringing in the Top-Talent with Mark Hunter and Dr. Sabrina Starling

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Show Summary

On this episode we talk with Mark Hunter the owner of Hunter’s Home Center and his business psychologist Dr. Sabrina Starling. This is part two of a two-part series. Part one was episode 130. Now, in this episode we interview Mark Hunter who has used hiring strategies and techniques on how to bring in top-talent and Mark explains, from his experience, how top-talent can drive profitability in the business, can make the business itself grow faster than ever, all while having employees who are thrilled to work for an organization and are compensated at the top of the market for the work that they do.  Even to the point that Mark is somewhat of a legend in his community for how well he treats his colleagues at his company. Welcome to Episode 131 of the Profit First Podcast!

Our Guest

 

Mark Hunter has been an entrepreneur for the last 36 years.  Starting his first business at age 19.  He created two products and took them to market after receiving U.S. Patents.  Has exhibited one of his products at Disney World’s Epcot Center and personally sold them on QVC.  He started his current endeavor 14 years ago with the help of his wife Linda.  They own and run Hunters’ where they sell appliances, mattresses and furniture.  They have experienced a 23% growth rate for 2016 and will set a new store sales record this year of $1.7 million in their very small rural Wyoming market.  Mark enjoys helping people and is always willing to help other entrepreneurs.

Guest Links

Website: http://huntershomecenter.com/index.html

Website: www.tapthepotential.com

Facebook: https://www.facebook.com/tapthepotential

Twitter: https://twitter.com/DrSabrina @drsabrina

LinkedIn: https://www.linkedin.com/in/drsabrina/

Corporate Partners

Receipt-Bank – Software and service to make the gathering, storage & processing of bills, receipts and invoices as easy and as cost effective as possible for businesses.

Nextiva – VOIP phone providers for small businesses.

Fundera – Single source online funding for entrepreneurs. Also offers an adviser program for CPAs, bookkeepers and business coaches.

Fundbox –  The simplest and fastest way to fix your cash flow by advancing payments for your outstanding invoices.

Xero– Accounting software with all the time-saving tools you need to grow your business. Xero is always secure and reliable and our experts are here to support you 24/7.