Employees Have a Direct Impact on Profit

Increasing profitability is usually the top priority for a small business.  When identifying revenue barriers, a good place to start is measuring the strength of your talent pool.  This area is often ignored especially by business owners who employ family and friends.  Corporate companies track revenue per employee and use industry benchmarks to build healthy organizations.  Small businesses do not.  This simple ratio (gross revenue divided by number of employees) can quickly identify a revenue opportunity.

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What Is Your Definition of Failure? Leadership vs. Management

The term “Getting Ahead” seems to have become synonymous with the term “WINNING-AT-ALL-COSTS”. This attitude leaves Leadership in the dust. How many true leaders are leading countries, Fortune 100 companies, non-profits, entertainment media, sports organizations and government entities?

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Non-Profit Doesn’t Mean Non-Revenue

Non-profit doesn’t mean Non-Revenue.  Non-profit and for-profit entities both have to drive revenue to sustain their organization – period.  I met an aspiring entrepreneur last week with an idea to start a non-profit for low-income students to learn art.  This was a highly educated and motivated person with a heart for this community; noble.  So what’s the problem with the idea?

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Want Collaboration? Deal With, Get Over or Lose the Fear!

I’m headed to our nation’s capital in a few days for a summit on fostering collaborative relationships within government entities that serve small business – how did I get into this?  Inducing collaborative relationships is not rocket science – seriously.  Here are some things I have learned about building relationships in today’s business environment.

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What to Know About Start Up Pricing

One of the most pressing issues for a small business owner is pricing. A weak and uninformed decision in this area can result in lasting damage to a company.  Over pricing a product/service can depress the response.  Under-pricing will make it harder for to sell the product/service at a higher price later.  There is a simple strategy here – knowledge.  The key is knowledge: market knowledge, product/service knowledge and personal knowledge.

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Scalability: Revisiting the Basics

Small business owners be vigilant in your pursuit of a scalable organization.  Ted Wright, CEO at Fizz, @fizz_womm, discussed the idea of scalability in his recent presentation in Colorado Springs.  Scalability is the organizational capacity to take on more work while maintaining or improving the profit margin.  There are two common ways to improve scalability; increased employee productivity and increased business from current customers.  Interestingly, small businesses EXPECT continuous improvement in these areas yet don’t really do much to ensure they get results (assuming revenue per employee and revenue per customer are key performance indicators on the management dashboard).

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The “Aha” Moment

My experience working with small business owners has been like the founding of a new religion.  I’m amazed, inspired and on-fire to get things done.  These men and women take leaps of faith that would make the weak quake.  They move forward because moving backward or standing still is not an option.  One step, then another, then another – never looking back, never taking time to pat themselves on the back and definitely never thinking the job is ever done.

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