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Engage and Retain Busy Consumers With These Tried-and-True Strategies

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In the competitive landscape of modern business, capturing the attention of busy consumers is a challenge that requires innovative strategies and a keen understanding of consumer behavior. Small companies and startups must navigate a crowded marketplace with short attention spans and fierce competition. By employing targeted approaches, however, businesses can not only attract but also retain these consumers, turning them into loyal customers. This article explores various methods to achieve this, from leveraging strategic branding to crafting value-driven content.

Engage With Targeted Social Media Ads

Leveraging targeted social media ads is essential for capturing the attention of busy consumers and converting them into loyal customers. By focusing on specific demographics such as age, location, and income level, you can ensure your marketing efforts reach the most relevant audience. This approach not only optimizes your advertising budget but also enhances the likelihood of conversions by engaging users who are more inclined to be interested in your products or services. Craft compelling ad content and utilize precise targeting tools to significantly boost your return on investment and foster a dedicated customer base.

Leverage Reverse Phone Lookup

Using reverse phone lookup can be a valuable tool for improving customer relationships. By identifying missed calls, you can promptly return them, showing customers that their communication is important to you. Additionally, reverse phone lookup allows you to gather demographic information about your callers, helping you understand your audience better and tailor your interactions to meet their needs. This insight enables you to personalize communication, strengthen trust, and build long-lasting relationships with your customers.

Level Up Your Service

Exceptional customer service is crucial in turning busy consumers into loyal patrons. By exceeding expectations and adding a personal touch, you can create memorable experiences that foster loyalty. Consider small gestures of appreciation or personalized responses to customer inquiries. These practices enhance customer satisfaction and encourage repeat business, ultimately boosting your bottom line. Prioritizing customer service can significantly improve customer retention and profitability, making it a vital strategy for small businesses and startups.

Provide Value-Driven Content

To engage busy consumers, focus on crafting content that genuinely addresses their needs and interests. Move beyond traditional promotional tactics and offer material that educates, informs, or solves specific problems. By understanding what your potential customers are looking for, you can tailor your content to resonate with them, thereby building trust and establishing your brand as a thought leader. In a digital world saturated with information, content that provides genuine value stands out, leading to deeper connections and increased customer loyalty.

Bring Them Back with Automated Emails

Automated email sequences are a powerful tool for capturing the attention of busy consumers and converting them into loyal customers. By using email marketing automation software, you can create a series of emails that are triggered by specific actions or sent at set intervals. This approach not only saves time but also allows you to deliver personalized content that resonates with your audience. Understanding your customer’s journey and key interaction points is crucial for optimizing these sequences to maximize their impact.

Reward Your Most Loyal Customers

Creating an ambassador program for loyal customers is a powerful way to boost brand engagement and drive word-of-mouth marketing. Start by identifying your most passionate and influential customers who consistently engage with your brand. Define clear objectives for the program, such as increasing referrals, expanding brand awareness, or generating authentic user-generated content. Offer attractive incentives, such as discounts, exclusive products, early access to launches, or rewards for referrals, to motivate participation. Provide ambassadors with tools like branded merchandise, social media templates, and personalized referral codes to make promoting your brand seamless.

Get The Community Involved

Engaging with your local community through events and workshops is a strategic way to capture the attention of busy consumers and transform them into loyal customers. Hosting interactive sessions such as cooking classes or gardening workshops, provides hands-on learning experiences that align with the interests of your audience. These events not only impart valuable skills but also create opportunities for meaningful interactions, fostering relationships that can lead to lasting customer loyalty.

Building a loyal customer base in today’s fast-paced environment requires a blend of creativity, strategic thinking, and genuine engagement. By implementing these strategies, businesses can effectively connect with busy consumers, fostering relationships that are both meaningful and enduring.

Get expert business consulting and strategic solutions tailored to your needs with ITB Partners.

Thank you for visiting our blog.

 

Jim Weber – President
New Century Dynamics Executive Search

 

Jim Weber – Managing Partner,  ITB Partners

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Marketing Director Search Landed by New Century Dynamics Executive Search

The Marketing Director is a leader, brand champion, and strategist who generates a profitable revenue base for our franchisees.

https://wp.me/pa0WEz-3fs

This document is presented to you confidently.  All communication, whether written, oral, or electronic should be addressed to the following:

 NEW CENTURY DYNAMICS EXECUTIVE SEARCH

Tel. 770-354-2817;

e-mail: JimWeber@Newcenturydynamics.com

 

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Marketing Director Search Landed by New Century Dynamics Executive Search

Director of Marketing – Job Description

Role Overview:

The Marketing Director is a leader, brand champion, and strategist who generates a profitable revenue base for our franchisees.  The Director of Marketing is directly responsible for developing and implementing plans and strategies that increase brand awareness and traffic counts in the Cafes and supporting franchisee initiatives such as community events, menu changes, calendar events, local events, etc.  This includes leading/managing internal resources and project teams, as well as direct oversight of external marketing-related business, franchisees, suppliers, and vendors.

Role Requirements:

    • Works closely with franchisees to improve their financial performance.
    • Participate in weekly strategy/update meetings
    • Conduct Cafe / Market visits x per quarter
    • Member of the new Cafe/market open team
    • Partner & align with the operations team
    • Promotes the culture and the Cafe operations

 

Role Responsibilities:

Marketing Strategy (increase guest traffic and check average)

    • Work closely with Operators and Franchisees and key management to develop Local Store marketing plans
    • Drive and facilitate execution of plans
    • Build and manage the event planner
    • Build and execute event strategy around dates, and community / local events

New Market Penetration / New Cafe Openings

    • Build and execute plans to support new Cafe openings and new market penetration
    • Assess post-open KPIs (options/strategies) to maintain new Cafe open momentum

  

Guest Insights

    • Facilitate the understanding of the Store trade areas and boundaries
    • Source, collect, and assess guest demographics
    • Ensure understanding of guest data and traffic/check trends

 

Social Media / Customer Facing Technology

    • Assess the current strategy, to upgrade and improve execution
    • Develop and execute plans to increase the operator’s profitability.
    • Assess and recommend opportunities for brand building and enhanced PR.

 

Ideal Candidate Profile

Knowledge / Skills / Abilities (KSAs)

    • Degree in Marketing
    • Proficient Analytical Skills
    • Minimum of 7+ years direct QSR. Or Quick Casual marketing experience
    • Successful creation and execution of revenue-generating strategies
    • Direct experience leading new store openings and new market penetration strategies
    • Basic understanding of Cafe operations
    • Social Media Savvy
    • Customer Facing Technology Savvy
    • Experience with Consumer Insights
    • Proficient in office tools (Microsoft Office)
    • Project management skills
    • Ability to multi-task
    • Solid written and verbal skills

 

Behavioral Profile –(Leadership-Teamwork-Conscientious)

    • Excellent communication skills
    • Ability to influence and persuade others
    • Ability to take constructive criticism
    • Ability to work effectively within multiple levels of an organization and individuals
    • Creative
    • Self-motivated, energetic, highly organized, and able to manage multiple tasks and projects

 

Physical Requirements (ADA):

    • Sitting at a desk – using a computer, telephone, etc. 50% of the time
    • Lifting/carrying no more than 15 lbs. – minimal % of the time
    • Meeting Management – (standing, sitting, interacting) 30%
    • Travel (domestic based on openings and events): 30-40 % of the time

 

Jim Weber – President
New Century Dynamics Executive Search

This document is presented to you confidently.  All communication, whether written, oral, or electronic should be addressed to the following:

 NEW CENTURY DYNAMICS EXECUTIVE SEARCH

Tel. 770-354-2817;

e-mail: JimWeber@Newcenturydynamics.com

 

 

Marketing Director Search Landed by New Century Dynamics Executive Search

The Marketing Director is a leader, brand champion, and strategist who generates a profitable revenue base for our franchisees.

https://wp.me/pa0WEz-3fs

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Create Your Market Develop Strategy

When you’ve chosen to develop a new market, planning for the successful penetration of that market begins. The primary reason for your planning should be to go where your customers are, and the competition isn’t. Further analysis must be completed to understand and prioritize the trade areas for development. The starting point is to identify the relevant trade areas in the market and secure demographic data on its residents. Understanding the trade area population by daypart is very helpful. This data will help you prioritize the trade areas for development. I learned the fine points about developing a market while managing the Atlanta market.

I have lived in the Atlanta area for 28 years. My last employer transferred me here as preparations were underway for the 1996 Olympics. They saw Atlanta as a primary market for development and assembled the resources to execute that strategy. In that assignment, I was directly responsible for two QSR franchising brands. Later, as an independent consultant, I gained further experience with other brands. Atlanta is a very desirable market for national and regional restaurant brands. However, it can be a difficult market to develop. There is a long list of brands that came to Atlanta and failed. Ultimately, they closed their stores and left. Atlanta is an excellent case study of how to develop a retail brand.

Atlanta is the 6th largest city in the United States of America. It is the Capital of Georgia and is considered the Capital of the South, probably due to its strategic location It is a major crossroads for the Southeast, so logistics and supply chain are significant industry sectors. Hartsfield Jackson Atlanta International is the world’s busiest Airport. 80% of the U.S. Population is within a two-hour flight from Atlanta. Atlanta is also a Financial Hub. Other major industry sectors in the SMSA include Advanced Manufacturing, Life Sciences, Healthcare, and FinTech.

The Atlanta SMSA is very attractive to businesses due to its moderate climate, reasonable cost of living, and business-friendly State and Local Governments. Atlanta is the headquarters for many national and regional brands. Nineteen Fortune 500 companies are headquartered in Atlanta, including sixteen Fortune 100 companies. Two Hundred Inc. 500 companies also call Atlanta home. It boasts home-grown QSR and Casual Dining Brands that dominate their categories.

The Atlanta market has been growing steadily for as long as I can remember. Many fraternity brothers made a beeline for Atlanta when I graduated from college. In 1996, the population of the SMSA was about 4.5 million people. Today it is closer to 6.1 million. Atlanta continues to grow in all directions, unimpeded by major bodies of water and other natural boundaries. Atlanta has a highly diversified population and a well-diversified economic base. There are many well-regarded Colleges and Universities located in the Atlanta area creating an ample supply of part-time employees.

The population growth in suburban Atlanta continues. Growth is so great that traffic, especially during rush hour, has become a major problem. Commute times are unbearable. Many employers have moved into the suburbs to be more convenient for their employees. In other words, businesses are following their employees into the suburbs. This is very helpful as it adds to the daytime population of trade areas. Development opportunities in trade areas on the periphery of the SMSA are abundant. Based on the rationale I have presented; Atlanta is a very desirable place to conduct business.

I have witnessed successful development programs and many failures of national and regional brands. The difference between success and failure is often the development strategy pursued by the brand. Regarding the development of markets like Atlanta, one must plan a military campaign. Don’t jump into the middle of the market to be surrounded by savvy competitors with established brands. Solid brands have lost time and resources by attacking the Central Business District first. A brand must have exceptional national recognition to effectively develop the core of an SMSA. Successful brands, including Marlows Tavern, have pursued an “Outside-In, Development Strategy.” Success requires attacking growing trade areas from the fringes of the market. Building from, the perimeter offers a less competitive landscape. Less competition means lower investment costs and a more favorable labor market. An Outside-in Development Strategy is the most effective way to develop Atlanta!

Summary and Conclusion
A successful market development program requires a thoughtful analysis of the trade areas within the SMSA. If the trade areas are ranked by their potential ROI, it will probably lead to an Outside-In Development Strategy. For a market like Atlanta, that is the recommended path. An exception to that rule would be high-end, luxury goods and services, with well-established brand identification.

 

Thank you for visiting our blog.

 

Jim Weber – Managing Partner,  ITB Partners

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How to Craft a Development Strategy

Now that your foundation for growth is established, it is time to craft a development strategy.  You must determine when and where to direct your investment.  To craft a development strategy, one needs a framework to synthesize the relevant statistics and prioritize the markets for development.  This is the focus of this article.

 

I have seen many companies stumble and fall because they did not have a viable development strategy or failed to follow the plan they crafted. The fundamental problem was a failure to appreciate the value of market penetration, the key to success for retail brands.  Fully penetrating the market maximizes cash flow, as all your resources are optimized.  I will get back to you on this issue later.

 

Determine when and where to grow.

During my corporate career, I learned the value of a viable development strategy.   My personal development goal was to learn how to create strategy to expand successfully into new markets.  As a result, I learned how to.

    • Determine the maximum potential penetration within each market
    • Prioritize markets for development
    • Prioritize trade areas within the market for development

Solid analysis addressing the prior bullet points is mission-critical.  My employers were focused on the statistics needed to craft a solid development strategy.  However, most did not have a good framework to integrate the data into a coherent strategy.  As Director of Planning and Analysis for the Retail Group of a Fortune 500 Conglomerate, I made a point to master this skill.  I studied the concept of portfolio theory, employed by many conglomerates.  Creating conglomerates was popular at the time.  A fundamental tool used by these companies was the Market Growth/Industry Penetration Matrix developed by the Boston Consulting Group (BCG) in 1970. Generally known as the Boston Consulting Group Growth/Share Matrix, (BCG Matrix), this methodology was designed to help conglomerates analyze their business units. It helped prioritize resource allocation for brand marketing, product management, and strategic management.  Later in my career, I used the BCG Matrix to craft a viable development strategy.

Conglomerates fell out of favor, in the 1980s, helped along by In Search of Excellence, authored by Thomas J.  Peters and Robert H. Waterman, Jr., published in 1982.  Although conglomerate portfolio strategy may have fallen out of favor, I believe the BCG Matrix was still useful.   And it was!

The Value of Retail Store Penetration

    • Leverage and optimize resources
    • Labor – Attract employees /efficient use of supervision
    • Supply Chain/logistics efficiency
    • Marketing and Advertising Effectiveness

Eventually, I was able to put the BCG Matrix into practice.  As a Regional General Manager for three separate QSR Brands, I was responsible for developing my Regions. I worked to identify and prioritize under-served markets with enough penetration for a first-line supervisor. In other words, finding underserved markets, with significant upside potential. I used the BCG Matrix to plot the market growth rate for total QSR Industry sales against the total QSR penetration. My metric for QSR penetration was total QSR Sales as a percentage of all retail food sales in the market. The lower the ratio of QSR sales to total food sales the better. This metric identified markets that were underserved from a QSR perspective. I plotted other statistics against the market’s growth rate, but QSR market share was the most relevant statistic.

Competition is always a consideration but it is not a reason to avoid a market.  The fundamental takeaway is to build toward saturation in high-growth markets.  I used this tool to great effect.  Determining how to develop that market is the next strategic decision required when you decide where to grow. I will address this topic in my next post.

Summary and Conclusion

When expanding your brand beyond your home market, you must have a strategy to achieve optimal penetration.  The key is to build in growing markets, adjacent to an established market, where you have a beachhead.  The key factor for success is to drive for maximum market penetration.  As penetration approaches market saturation, maximum cash flow will be achieved.  Following this model generates the best result.  The BCG Matrix is a useful tool to help guide your plans.

Call to Action

If you want to expand beyond your home base or if your development plan is not working, I can help! Call or email to begin the discussion.

Thank you for visiting our blog.

 

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our perspective and would like to receive regular posts directly in your email inbox. To this end, please put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is important to me, so please leave a comment.

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Trust But Verify!

I just got off the phone with my best and oldest friend, John.  He recently learned that an employee stole over $100 K from his business.  It breaks my heart to hear of the trouble it’s caused him and his wife.  The situation is especially disheartening as he is at the end of his career, looking forward to retirement.   Fortunately, he will be OK, but It still stings.

John and I started our corporate finance careers together, working for the same employer. He had just earned an MBA.  I was a few years ahead of him at our company while working on my MBA, part-time, after hours.  After 20 years of building careers with major corporations, we both left for entrepreneurial ventures.  John bought a small manufacturing business, and I became an Executive Recruiter and Management Consultant.  Over the years, I advised John on many issues.  He is the nicest guy you could ever hope to meet, but he has a fatal flaw. He is far too trusting. We have discussed this issue many times over the years.

Steps to Minimize Business Risk

    • Ensure that appropriate systems are in place.
    • Appropriate accounting, and clearly states transactions.
    • Checks and balances: Establish clear authority and accountability for transactions with Approval limits.
    • Oversight: routine review by senior management of cash flow

My friend, Stan, confirmed that this issue is all too common. He told me about two recent situations regarding companies that lost control of their cash while trying to scale. One lost a lot of money to an unscrupulous employee whereas the CEO for the other was not focused on critical matters. One situation was a restaurant and lounge, and the other was a food ingredients manufacturer.  The latter is a great example of a company losing control while trying to scale.

The company just mentioned is a food and ingredients business selling Hot Sauce, Barbecue Sauce, and Rubs.  It is owned by a husband-and-wife team that wanted to grow their business.  Neither had a relevant business background so they hired a CEO.  Regrettably, this CEO proved to be incompetent.  There was no discipline around forecasting sales and planning resource requirements.  No one was evaluating contracts to ensure performance and the viability of the relationships.  They failed to recognize the underlying risks which resulted in the loss of their manufacturing facilities.  Annual Revenue rose to $3 Million, however, they lost their production facility and incurred $800 K of debt.  Ultimately, the CEO was fired.  The fundamental issue in this case was the lack of proper oversight.  An Advisory Board to help provide guidance and oversight could have prevented these problems.

From time to time, even large established corporations suffer fraud from dishonest employees.  This month it was reported that an employee of Macy’s concealed more than $150 Million of expenses over a three-year period.  Reports did not provide details about this theft except to say that the person in question managed the accounting for small package deliveries.  If this fraud can be perpetrated against Macy’s, it can happen to anyone.

If you are a small business owner with aspirations of building a bigger business, you must have a clear understanding of the business profile.  Mitigating risks includes a combination of systems, processes, and procedures.  However, without oversight, systems, processes, and procedures are useless.  As an owner-operator, you must make time to review critical aspects of the business.  You must know where your funds are going and in what amount.  You must be familiar with your vendors and the terms of those agreements.  A Big Red Flag is to see funds going to a vendor you don’t recognize.  You must investigate that matter immediately.  Another Red Flag is payroll checks for an unfamiliar employee.  Small and large accounts payable can reveal problems.  It is incumbent that owner-operators and senior executives build oversight into their daily routines to ensure compliance and minimize risk.

An Independent Advisory Board can be helpful.  People who know your line of business can help you negotiate the most favorable agreements.  They should have the experience you lack that will result in useful guidance and advice.

If you want to scale your business to become a bigger, more profitable enterprise, you must be mindful of the risk posed by dishonest employees.  Trust, but verification must be a key operating principle!

Thank you for visiting our blog.

 

Jim Weber – Managing Partner,  ITB Partners

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Your feedback helps me continue to publish articles that you want to read.  Your input is important to me, so please leave a comment.

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Unlocking Financial Mastery in Small Business Success

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In the dynamic world of small business, maintaining a robust and healthy cash flow is the lifeblood that fuels sustainable growth and long-term success. Imagine easily steering your business through these unpredictable waters, fortified by smart strategies that stabilize your financial inflows and outflows and prepare you for unexpected financial tides.

Whether you’re looking to renegotiate payment terms to gain a financial edge or harness customer feedback to refine your offerings, the right tactics can transform how you manage your business finances. Today, New Century Dynamics shares this comprehensive guide to help empower you to optimize cash flow, reduce high-interest burdens, and strategically invest in your business’s future, all while enhancing your financial acumen through practical learning opportunities.

Crafting Winning Payment Strategies

 

Maintaining a healthy cash flow is crucial for the success of your small business. One effective way to ensure this is by strategically negotiating payment terms with your suppliers. Understanding the market position of your suppliers can give you an edge in these negotiations. For example, if a supplier is under financial pressure, they might be open to offering discounts for early payments, which can benefit your cash flow. Building a strong relationship with your suppliers can further enhance your negotiating power, allowing for more favorable terms. Utilizing tools like Cargoflip can also help you manage and track payments efficiently, optimizing your cash outflows.

Empowering Your Financial Acumen with Education

Earning an online accounting degree can significantly boost your financial knowledge, equipping you with the skills necessary to maintain a healthy cash flow for your small business. The benefits of a bachelor’s accounting degree include allowing you to specialize in areas like managerial accounting and accounting research, enabling you to make more strategic financial decisions. Studying online offers greater flexibility, making it easier to balance your business responsibilities with learning. This convenient approach allows you to select world-class programs without the need to relocate or disrupt your daily operations.

Discovering Hidden Patterns in Cash Flow

To make informed financial decisions, it’s essential to analyze your business’s historical financial records. By doing so, you can identify patterns and trends in cash flow that can guide your strategic planning. For instance, recognizing seasonal variations in cash inflows and outflows can help you anticipate future cash flow challenges. This foresight ensures you have the necessary funds to cover operational costs and seize growth opportunities. If you notice increased cash inflow during specific months, it indicates potential seasonal demand surges, allowing you to plan your finances accordingly. This approach not only enhances your forecasting accuracy but also optimizes your cash management strategies for sustained financial health – click here to learn more.

Streamlining Finances with Expense Organization

Organizing your business expenses into operating costs, payroll, and marketing categories can provide valuable insights into your spending patterns. This practice allows you to pinpoint areas where costs can be reduced or streamlined. Accounting software can automate this process, ensuring accuracy and saving you time by applying predefined categorization rules. Regularly evaluating these categories also aids in creating precise budgets and forecasts, helping you plan effectively for future financial needs. This proactive approach not only enhances your financial control but also ensures compliance with tax regulations.

Elevating Products and Loyalty Through Feedback

Leveraging customer feedback is key to refining your products and encouraging repeat business. By analyzing customer feedback, you can identify areas for improvement, leading to better product offerings that resonate with your market. Successful businesses often see a significant increase in customer satisfaction by actively incorporating feedback into their development processes, which also boosts customer retention rates. Engaging your customers in the product evolution process demonstrates your commitment to their needs and fosters loyalty, ultimately stabilizing your cash flow and setting your business on a path for sustained growth and competitive advantage.

Slashing Interest with Debt Management

Formulating a structured debt repayment strategy targeting high-interest debts can significantly reduce overall interest expenses. By prioritizing debts with higher interest rates, you can tackle the most expensive obligations first, saving money in the long run. This method is particularly beneficial for small businesses looking to maximize financial efficiency and foster growth, as it minimizes the financial drain caused by high-interest payments. Regularly reviewing your budget to adjust this repayment plan ensures it remains effective as your financial situation evolves. This proactive approach aids immediate financial stability and forms a solid foundation for sustainable business expansion. Check out the avalanche method for more insights.

Aligning Investments for Continued Prosperity

To ensure your small business thrives in a constantly shifting market, it’s crucial to periodically assess and adjust your investment strategy. Regular reviews allow you to gauge how well your investments align with your business objectives and current market conditions, fostering financial stability. By analyzing market trends and economic indicators, you can make informed decisions that support sustainable growth and mitigate risks associated with market volatility. Additionally, enlisting the help of financial advisors can offer you specialized insights and personalized recommendations, providing an edge in fine-tuning your strategy for optimal returns.

Embracing these strategies not only fortifies your cash flow but also transforms financial management from a daunting task into an empowering tool for innovation and resilience. Your small business stands at the brink of potential – where informed decisions and strategic foresight meet to cultivate growth opportunities. By weaving these practices into the fabric of your operations, you’re crafting a narrative of enduring success, one where each financial maneuver propels your business toward a brighter, more prosperous future. So seize this moment to elevate your business acumen and cultivate a thriving financial ecosystem, where every choice you make today shapes a legacy of sustainable success!

Discover how New Century Dynamics can elevate your executive search and business strategy, celebrating 25 years of unmatched client service! Call 770-354-2817.

Thank you for visiting our blog.

Jim Weber – Managing Partner,  ITB Partners

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So, You Want to Go Big Time? – Know Your Customer!

Before making any significant investment, competent business managers thoroughly analyze the opportunity.  They will perform a financial analysis to justify the investment.  The typical analytical model employed is a discounted cash flow analysis.  The two major components of this methodology are the upfront investment and the ongoing cash flow from operations.  The initial investment is straightforward.  It includes the outlay for land, building, furniture, fixtures, and other startup costs to be capitalized.  A cash flow analysis employs the typical expenses incurred in your existing outlets.  The cost of Goods Sold and Labor vary with sales.  Most other expenses are fixed, at least on an annual basis.

Business activity is reflected in revenue.  Revenue is the critical component of cash flow from operations. The business owner must determine the revenue required to achieve the target Return on Investment.   The revenue target is the product of the number of transactions and your average transaction value.  The average transaction value is revenue divided by the number of transactions.  You must know your customer’s behavior to make that forecast.  You must know who they are and why they visit your establishment.  You must know how often they trade with you and how much they spend.  You must know their demographics, i.e., their age and income level.  You must know as much as you can about your customers.  Detailed customer information will help you build a revenue model to complete the cash flow expectation.

Early in my career, I was the Director of Planning and analysis for the Retail Group of a Fortune 500 Conglomerate.  I spent most of my time evaluating investment proposals for prospective new stores.  Later in my career, I became adept at prioritizing markets for expansion.  Every market, (think SMSA) is a collection of trade areas (think neighborhoods).  You determine the viability of a market by researching its trade areas.   Understanding the trade areas means understanding their demographics. The prioritization of potential trade areas is based on the performance of existing outlets in their trade areas.

Once you have established the revenue required to achieve your target ROI you must determine if it is reasonable.  The business owner can confidently move forward if the revenue estimate is reasonable.  If the revenue cannot be justified, further consideration is required.  The data from one point of distribution is not enough.  One needs three to five locations or more to generate reliable data.

How does one validate the revenue required to make an investment work?  Forecasting the exact revenue amount is not realistic, however, one can determine a reasonable range.  One obvious metric is to compare an existing location to the site under consideration.  The comparable location should match the size of the trade area, accessibility to prospective customers, the number of competitors, and the number of prospective customers with the ideal demographic profile, etc.  The revenue generated by the comparable existing location suggests the potential for the site under consideration.  There are other ways to validate the targeted revenue, but this example is instructive.

What do you need to know about your customers?

    • Who are they?  Socio-economic profile
    • Where are they coming from, home, work, other
    • How far do they travel? Time/distance
    • How often do they trade with you?
    • How much do they spend?
    • Age
    • Household income?

The entrepreneur must assemble the customer information required to complete their analysis.  There are many sources to consider data owned by the entrepreneur.  Credit Card vendors can supply some of the data, and some may be acquired by a third-party researcher at a cost.

Begin by collecting your customers’ data from your internal records.  Internal records reveal average transaction value (check average), activity by day, daypart, and month.  Credit card companies can provide aggregated information about consumer demographics and residence.  Third-party marketing researchers can help determine the boundaries of your trade areas.  They do this by plotting the customer’s home and work address.  The point is to know enough to forecast the revenue potential from prospective trade areas.

Finding customer data

    • Customer Surveys
    • Data shared by credit card and other 3rd party vendors
    • Size of trade area by home/workplace, map their address
    • Beware of destination venues for projections

 

SUMMARY AND CONCLUSION

The successful entrepreneur knows his customers.  He continually works to understand their evolving wants and needs. This is fundamental to running a successful business.  Continued success for any size business requires customer knowledge.  This knowledge helps the business owner retain their customers.  New products, services, and programs are based on customer insights. Without a customer insights program, the business owner is on shaky ground.  Without solid customer data, significant growth of the business is not realistic.

Thank you for visiting our blog.

 

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our perspective and would like to receive regular posts directly in your email inbox. To this end, please put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is important to me, so please leave a comment.

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Scaling Smart: Innovative Strategies for Managing Rapid Business Growth

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Navigating the complexities of rapid business growth requires strategic foresight and adaptability. As a business owner, it’s vital to recognize and address the unique challenges that accompany your company’s expansion. Implementing proactive measures can greatly ease the transition as your business scales. This guide from ITB Partners delves into essential strategies designed to help you manage growth effectively, ensuring you harness every opportunity for success.

Implement Automation to Maximize Efficiency

As your business grows, maximizing efficiency is key. Automating routine tasks allows your team to focus on core operations, reducing human error and increasing efficiency. Streamline your workflows by identifying and removing bottlenecks to enhance productivity without compromising your unique customer service. This approach keeps your operations agile, and ready to scale up to meet growing demand seamlessly.

Refine Financial Forecasts for Long-Term Viability

The growth phase increases revenue but also escalates expenses, necessitating updated financial forecasts and budgets. Regular adjustments to your financial plans help accommodate costs associated with expansion, such as marketing and staffing. Budgeting wisely mitigates cash flow issues arising from rapid growth, ensuring financial stability. This strategic financial oversight supports sustainable expansion by facilitating informed investment decisions.

Evaluate Infrastructure and Team Capacity for Scalability

Ensure your infrastructure and resources keep pace with increasing demands to maintain quality and customer satisfaction. Assess the adequacy of your physical and technological resources, and consider expanding your team through hiring or outsourcing to prevent burnout. A well-supported team and robust infrastructure are critical in scaling effectively without compromising service quality or employee satisfaction. Investing in training and development can sustain team morale and productivity, which mitigates the stress of growth.

Create a Growth-Focused Marketing Strategy

Adapting your marketing strategy is vital as you scale, requiring a plan that reaches a broader audience and supports long-term growth. Diversify your marketing efforts to capture new market segments and retain existing customers. Utilizing various channels, such as paid ads and partnerships, enhances brand visibility and bolsters customer loyalty. A dynamic, growth-oriented marketing strategy not only attracts new customers but also strengthens the foundation for continued success.

Pursue an Online Business Degree

Pursuing a business bachelor’s degree online enhances your business acumen, enabling you to master key concepts in accounting, strategy, and management. This education equips you with crucial skills, ensuring you’re prepared to tackle complex business environments. Online programs offer the flexibility to maintain full-time employment while progressively applying what you learn directly to your business challenges. By earning this degree, you gain the insights necessary to lead and sustain business growth.

Adopt Scalable Technology Solutions for Future Growth

Incorporating scalable technology solutions prepares your business for future expansion by aligning with increasing demands. These technologies ensure that your business systems grow with your customer base, supporting larger transaction volumes and efficient workflow management. Scalable solutions provide crucial analytics, enabling data-driven decisions that anticipate and meet future needs. Investing in such technologies ensures your business remains adaptable and competitive as it grows.

Optimize Supply Chain Management to Meet Demand

A robust supply chain is essential to support growth and maintain service quality. Strengthening supplier relationships and ensuring they can meet increased demands prevents bottlenecks and maintains product quality. Diversifying your suppliers and establishing backup sources mitigates risks associated with supplier limitations. By optimizing your supply chain, you ensure reliability and consistency, crucial for enhancing customer satisfaction and maintaining your brand’s reputation.

 

Managing rapid business growth combines strategic expertise with a deep understanding of your business’s core needs. For business owners, the key to sustained success is maintaining quality while scaling operations. Embracing change and preparing for the challenges of expansion will enable you to navigate growth phases confidently and efficiently. Ultimately, it’s about crafting a resilient business model supporting your immediate goals and aspirations, ensuring lasting stability and success.

For independent solutions to your organization’s challenges, contact ITB Partners Today!

Thank you for visiting our blog.

 

Jim Weber – Managing Partner,  ITB Partners

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Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me, so please leave a comment.

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Installing Drywall – Your Basement Finishing Project

Hanging Drywall

Good work! You have framed the area you are finishing. The walls and ceiling have been packed with soundproofing, fire retardant, insulation, or some combination thereof. Electrical outlets, overhead lighting, surround sound speakers, etc., have been installed. Now, you are ready to hang the drywall. Hanging and finishing drywall is the topic of this post. As with earlier posts, I refer you to videos on YouTube to help you understand the basics of hanging and finishing drywall. This post will present thoughts and considerations you may not find in those videos. Probably the most important point to consider is that the fewer joints to mud and tape the better.

Key Discussion Points

    • Plan out your cuts (fewest joints to tape)
    • Which size sheets can you accommodate?
    • Finishing corners
    • Taping
    • Hanging sheets, vertical vs horizontal
    • Fixing damaged sheets (torn paper)
    • Benefits of Expansion Foam

Your first task is to determine the optimal drywall sheet size to purchase. Our basement is a walk-out with three access points and relatively high ceilings. If you have a captured basement with lower ceilings or tight stairwells you may be restricted on the sheet size you can use. Otherwise, you may have to cut your sheets before moving them into the basement. So, ceiling height and accessibility must be evaluated before a buying decision is made. Try to purchase the largest sheet size possible to minimize cuts, The determining factor will be the type of basement you are finishing.

When my husband was ready to install drywall, he was confident he could hang and finish the walls. He was uncomfortable with the ceilings, so he hired professionals to tackle that task. In effect, he did that job backward, walls first then ceiling. The recommended installation process is ceilings first. The outcome was fine. No problems were encountered following this sequence. As most of the construction area has nine-foot ceilings we used nine-foot sheets hung vertically. The remainder of the area had eight-foot ceilings so we could place 8-foot sheets horizontally.

Corners can be tricky. External corner joints can be managed using corner beads, but they can be challenging, depending on the connection. Internal corners may have gaps that need to be corrected. If Internal corner gaps are large, expansion foam can be the solution. The foam will fill the gap and provide a base to add the joint compound. My husband had to deal with both situations. For an amateur, he did well. However, he plans additional work on one external corner.

Exposing electrical outlets is your next task. From my experience, one achieves the best result by using a drywall router tool. This tool rides along the exterior of the outlet box as it cuts away the drywall. If you don’t have a drywall router tool, you can measure and mark the outlet box location on the drywall. You can cut before or after the drywall is hung. Of course, this method requires meticulous measurements to ensure the cut matches the outlet’s location. My husband found this method more challenging. It required additional time and effort to correct errors in the cut.

Many YouTube videos describe how to mud, tape, and finish your drywall. Again, I refer to those videos for a better understanding of this task. I want to emphasize our learning to ensure a smooth, attractive joint. The first consideration is the joint compound to use. My husband used a premix joint compound for our basement finishing project. If you ask him today, however, he will say he wished he had purchased a dry product to mix himself. His thinking is that the premix resulted in too much sanding and was more difficult to achieve a smooth finish. The other point he makes is to wet the tape before its application to the joint. Many videos he watched did not emphasize this point, possibly because they used a wetter mix. He quickly learned that wetting the drywall tape was mandatory when using the premix joint compound. Not doing so resulted in bubbles and separation of the tape from the drywall.

Summary and Conclusion

Begin your drywall installation with a plan. Know the square footage you intend to cover and your options for different sheet sizes. Determine if you have any constraints moving drywall sheets into your work area. That information may determine the size of the drywall sheet you must buy. Remember, you want to minimize the number of joints to finish. The joint compound you choose is an important consideration. Finishing internal and external corners can be improved using corner beads and expansion foam. Making the cutouts for electrical outlets is best done with a drywall router. That tool will give you a clean and accurate cut, and minimize any further work on outlets.

Jill Weber, Owner and President of Kitchen Connections, LLC

For more information about Kitchen Connections, LLC and what we can do for you, visit http://kitchenconnections.biz

770-650-0632

 

Thank you for visiting our blog.

 

Jim Weber – Managing Partner,  ITB Partners;

President, New Century Dynamics Executive Search

I hope you enjoyed our perspective and would like to receive regular posts directly in your email inbox. To this end, please put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is important to me, so please leave a comment.

Installing Drywall – Your Basement Finishing Project

Good work!  You have framed the area you are finishing. The walls and ceiling have been packed with soundproofing, fire retardant, insulation, or some combination thereof. Electrical outlets, overhead lighting, surround sound speakers, etc., have been installed. Now, you are ready to hang the drywall. Hanging and finishing drywall is the topic of this post.

https://wp.me/pa0WEz-33B

Posted on

So, You Want to Go Big Time? Systems, Processes, and Procedures in Place?

This post is the third installment for entrepreneurs considering putting their small business on a bigger stage.

Success or Failure

Scaling your business requires a platform to build upon.  That platform comprises your business operating systems, processes, and procedures.  Your foundation must be strong enough to support your growing business, flexible enough to accommodate current expansion plans, and functional enough to support further growth.  You must be confident that operating systems, processes, and procedures are in place and functional.

You cannot just flip a switch and start growing!

One can build a solid foundation for growth while outsourcing some functions.  Functions often outsourced include Real Estate, Construction, Human Resources, Legal, and Marketing.  For Example, Paychex offers a 45% discount on payroll administration, HR, and PEO savings.   Operations and Accounting should be insourced, depending on the situation.  The entrepreneur must determine and prioritize functions to be managed internally or outsourced.  Whether the function is insourced or outsourced, trusted advisors and employees must oversee the outsourced resources.

I am often called upon to serve on advisory boards and to conduct searches for companies engaged in rapid growth.  Advisory Boards can be fun and exciting.  You will enjoy interacting with friends and colleagues.  Participating on an Advisory Board is more about ‘giving back’ than monetary compensation.  However, a fine meal and good fellowship are the rewards for attending each meeting.

When executives need help building a team to scale their enterprises, they call me.  They have determined the company needs more expertise to manage rapid growth.  The search is frequently for senior-level Operations Executives, CFOs, or Marketing Executives.   In these assignments, I look for executives who have worked for major brands, followed by success working in a smaller, entrepreneurial company.  This combination of experience positions these candidates for success with my clients.  This type of search has become my specialty.

Recruiting CFOs ensures the accounting system can support a growth-oriented business.  The accounting function must process and document transactions from additional points of distribution.  This function is critical from my perspective.  Too many companies failed because they needed to have appropriate accounting controls.  Poor controls led to the mismanagement of costs and expenses.  You must be confident that your accounting system fully aligns with your objectives.  If not, you need to rethink your plans.

Expanding your business requires hiring personnel to generate more revenue.   Expansion in the service and manufacturing sectors means opening more plants or retail outlets.  Expansion requires accelerated recruiting, selection, and training.  These are separate processes that require different skills.  Recruiting is about attracting interest.  Recruiting is a selling function.  Selection is about identifying the best applicants to hire.  Selection is a buying function.  Training is about teaching new hires to perform their jobs effectively.  Continuing developmental training provides new skills to ensure employees maintain their competitive advantage.

Key Components – Systems, Processes, and Procedures

    • Accounting Systems and Controls
    • HR – Employee Policies and Procedures
    • Culture-Values and Mission
    • Operating Systems

As the leader, the successful entrepreneur must create and maintain a culture that consistently delivers value to the customer.  A viable culture must have a value system and a code of conduct to guide employee behavior.  Corporate values should be documented and faithfully executed!  Maintaining the integrity of the culture during rapid growth is critical.  Employers must choose new hires based on compatibility with the company value system.  The Chief Executive must reinforce the Company Culture.  If the CEO is not confident that the culture and values are strong and healthy, growth may not be appropriate.  Management must address their culture before they consider significant growth.

Integrated computer software is the heart of contemporary operating systems.  These systems support the requirements for accounting and control for cash and credit, inventory management, employee payroll, and management reporting.  Documenting company policies and procedures and creating an employee handbook are integral components.  Safety and Security policies and procedures are also critical operational systems.  Business owners contemplating rapid growth must have complete confidence in their operating system.

Growing your business requires moving into new trade areas.  Your supply chain and logistics system must be capable of expanding service into new markets.  I witnessed one company selling franchises in markets beyond their distribution capabilities.  That created an undue burden on the new Franchisee until the Franchisor could serve that market.  It was an operations problem for the new Franchisee and an embarrassment for the Franchisor.  This logistics disconnect is not viable for successful expansion.  Regrettably, I have seen this mistake continually repeated over time.  Most small, local companies use third-party wholesale distributors, making the logistics challenge easier.  Even so, planning and coordination is required.

Summary and Conclusion

Every structure requires a foundation for support.  A large structure needs a strong foundation.  Organizations are the same, especially ones anticipating rapid growth.  The foundation of a business is its systems, processes, procedures, and culture.  When planning for rapid growth, the CEO must evaluate the integrity of the business foundation.  The CEO may proceed confidently.

Thank you for visiting our blog.

 

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our perspective and would like to receive regular posts directly in your email inbox. To this end, please put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me, so please leave a comment.