| We all know that a building has to have a strong | | | | sitting and having the order taken was 45 minutes. I |
| foundation if it is to survive, so, too, a business.There | | | | would have left long before. I am never that hungry. |
| are many planks that support a business but there | | | | They are now out of business.A kitchen renovator |
| are four corner-posts that bear the most weight...The | | | | had a unique quality product and used an excellent |
| four corner-posts are Marketing, Selling, Production | | | | installer. His price was very low compared to others |
| and Financial Control. There are a multitude of other | | | | in the area. They are now out if business.You can |
| aspects which helps to make a business profitable. | | | | produce low quality items at a low price and a high |
| For example, customer service, adequate capital, and | | | | quality product at a high price, but you will lose your |
| location.But I can guarantee that if a firm is failing in | | | | shirt if you try to sell low quality products at a high |
| any one of marketing, selling, production or financial | | | | price or high quality items at a low price.Financial |
| control the business will fail.And that's the chief | | | | ControlFor some reason this is the area in which |
| difference between a small business and a big | | | | most small businesses fail.One reason is that |
| business. A big business has whole departments to | | | | bookkeeping is a skill that can be easily learned |
| oversee each of those functions and it has people | | | | (especially with all the accounting packages available). |
| who do nothing else but make decisions | | | | Accounting, however, is a discipline that requires 3 to |
| (manage).You must carry out all four functions and | | | | 5 years of study and a lifetime of learning.Yet the |
| manage at the same time.MarketingI have been | | | | small business owner tries to do it all himself at the |
| counseling in small business for 30 years and still find | | | | same time as all his other functions. Or he leaves it |
| people who do not know what marketing is.At | | | | totally to his 'girl' who cannot do it either.But the |
| seminars I ask about their marketing and it almost | | | | success for any task is reliant on the ability to |
| certain one or more participants will say, "Well, we | | | | measure every important aspect. In a restaurant we |
| advertise in the local give-away newspaper". | | | | measure the value of wages against sales for the |
| Advertising is not marketing. It's only a tool of | | | | same period. Is your wages 45% of sales? That's |
| marketing.To use any marketing tool you must know | | | | too high. Let's work out how we can reduce it."We |
| who your target is and you must know what you're | | | | put 50% on our purchases to arrive at a price". That |
| selling.Your customer is not buying a drill. He is buying | | | | means your gross profit margin is 33% but your |
| a hole! I do not know who first said this and it has | | | | financials show that you are only achieving 29%. Let's |
| been around for at least 40 years. It sounds simplistic | | | | do something about it.A compromise for the small |
| and hackneyed but it is really a profound | | | | business owner is to have a professional accountant |
| observation.I don't think that girl is really buying a | | | | design an easily kept system that will produce the |
| hole. She may be buying independence; the ability to | | | | information required. Then your 'girl' can be trained |
| hang pictures, put up curtain rods without having to | | | | how to operate the system.Most Businesses FailOnly |
| rely on her male partner. The features and benefits | | | | about one in ten businesses do really well and makes |
| which appeal to her will be different to those which | | | | some money for the owner. Your's won't be one of |
| influence a builder.So if you are hazy on marketing | | | | them unless you can get the four corner-posts |
| you've got a lot of reading to do to get up to | | | | right.Author, Kelvyn Peters is one of Australia's |
| speed.SellingWe all know what selling is...don't we? | | | | longest serving Tax Agents. He was registered in |
| Well perhaps not, because most small businesses do | | | | 1962 and became a CPA in 1964.Kelvyn served on |
| it badly...or the owner does it but the staff has not | | | | many charitable boards including St Aubyns Hospital, |
| been trained to do it."Do you want fries with that?" | | | | Alzheimer's Association and Older Peoples Advocacy |
| has been made famous by a well known take-away. | | | | Service.As a young man he won the Outstanding |
| We call that up-selling .It was a very successful tactic | | | | Jaycee Award three times. He's a compassionate, |
| which increased sales of fries etc. but it is starting to | | | | generous man who loves people. That's why he is so |
| lose its edge.Several times on recent visits I have | | | | skilled at helping people in trouble.Kelvyn Peters was |
| been asked whether I wanted fries when I already | | | | Mayor of Kingaroy Shire Council from 1982 to 1987 |
| had fries, or did I want desserts when I already had | | | | and campaigned as the 'Young Man of Action'. Over |
| them. That gives negative vibes. They are not really | | | | 20 years later he still calls himself a 'Young Man of |
| thinking of helping me. They are just trying to | | | | Action'.He is a director of Restaurant Catering Qld Inc |
| increase sales.ProductionThis applies to both | | | | the peak employer body in Queensland, and has |
| manufacturing and retail establishments. You have to | | | | advised the hospitality industry for many years. His |
| 'produce' your product but you must do more than | | | | specialty is moving in to rescue a sick business. |
| that. It must be produced at the location, at the | | | | Kelvyn has spent over 20 years experimenting and |
| quality, at the time and at the price that your | | | | researching methods to help small business.He has |
| customer wants.A restaurant had their production | | | | perfected it with local clients. Now he is going global |
| down to a science but the waiting time between | | | | and he is only an email away. |