On June 29Th 2007, just a little over 4 years ago, with lots of fanfare Apple Released the I Phone to a very large & waiting mass of technological hungry people. It was introduced by Steve Jobs just 6 months earlier and described as a mobile device that would revolutionize the mobility landscape as it was known. Little did anyone know at the time that the technology behind the iPhone would spur new products like the android, I pad, and Tablets and create technological revolution unlike any other in the history of mankind. These devices can function as a video camera, a camera phone, a portable media player, and an Internet client with email and web browsing capabilities, can send texts and receive visual voicemail, and has both Wi-Fi and 3G connectivity.
In a relatively very short period of time these devices have embedded themselves into our culture and every aspect of our personal lives and are growing in popularity and increasingly changing our day to day patterns from shopping to socializing. When you consider that they have already replaced the need for cameras, radios, phone books, maps, portable CD players, desk top computers, laptops, printed books and magazines, even guitar tuners you start to realize the impact on a variety of manufacturers. And in the near future they will replace your car radio, home DVD players, your keys, the post office and even your plastic credit card. They have put at the fingertip of every user any and everything imaginable by bringing wireless Internet activity to a mobile device. combined with over 50 million applications that currently exist, these mobile devices are seemingly unlimited in functionality If there is something that a person wishes there mobile device could do chances are there is an app for it or somewhere someone is developing one. It has changed and will continue to change life as we know it far more then the invention of the computer or even electricity. and where it is headed no one knows yet because we are only at the beginning of this technology phenomenon
Unlike other technology advances which were primarily developed by the space program and then driven by business in the Private sector, this revolution was developed by the privet sector and is driven by the consumer and has for the most part caught the business community as a whole off guard. But that is changing quickly as smart business CEO's and owners are scrambling to tap into this monster before it’s too late. It’s clear that businesses and especially retailers who do not embrace this quasar will fall by the way side and quickly cease to have customers. This is because consumers have adopted the technology and are learning to take advantage of the simplification and immediate gratification they bring to a hectic, in motion lifestyle. They are letting their devices guide them and it is up to businesses to insure that it guides them into their doors
Retailers need to understand that the concept of marketing to consumers hasn't changed, it simply has gone digital, and become very personalized. Printed ads and junk mail are wasted expenses and should be replaced with email and text databases, customer loyalty/reward plans and custom mobile apps that can be downloaded by the consumer and guide them to your door and keep them coming back. Every business should have a budget for not only an e-commerce website but also a down loadable mobile app that will add value to the potential customer.
Businesses also need to realize that these devices in the hand of an unhappy customer can have serious consequences. they bring a whole new meaning to "the customer is always right" This was displayed recently when Actor Alec Baldwin , minutes after a nasty confrontation with a airline stewardess tweeted from his mobile device to hundred o thousands of followers a comment about the confrontation and nowonderamericanairlinesisbankrupt. This one simple text caused a media storm and a nightmare for American Airline s marketing division.
Regardless of the pros and cons, these devices are here to stay and it appears where they are headed is where ever the imagination of software developers take it.
Showing posts with label planning. Show all posts
Showing posts with label planning. Show all posts
Tuesday, December 6, 2011
Tuesday, July 20, 2010
The Company Check-Up
Do you give your business an annual check-up?
Running a retail business can be rewarding yet also very stress full, especially in this economy. One mistake business owners make is when times are good, they tend to let operations stagnate with the excuse "If it ain't broke, don't Fix it". But when the economy slows and business is harder to find, that is when most business owners frantically start looking at what is happening in their business. Out of desperation they begin to explore costs and inventory, they revisit employee policies and desperately look for waste and inefficiency. Remarkably, they will find all sorts of ways to reduce costs and add black to the bottom line. Its what I refer to as kicking the tires. But why do they wait for lean times to take such a serious approach to their profitability.
The truth is that it is these little expenses and wasteful habits that keep businesses from growing and achieving bigger success. Remember the old saying "A penny saved is a penny earned". In a small business it is these collection of pennies that can make the difference. Small businesses don't have the large Cash flows of big corporations to afford the luxuries that the big boys can afford. It is by keeping there operations efficient that they can have success and longevity. Sure you get your monthly statements and you know were you stand. But they don't tell the whole story. They simply present a picture of where you are, based on what you did. But what if you did something different?
In my 24 years as a small business owner I have found that it is wise to follow the same practice with your business as your health. An annual complete physical or Check up is essential to insure that your profits are not slowly eroding away. Check your key monthly expenses, Insurance, Phone, Utility, fuel. have they slowly risen? if so why? what has changed? is it time to get competitive bids or lower the thermostat, or tune the vehicles.
For most small businesses the largest expense is people. Take a good look at your pay rates and your benefit plans. Are your labor costs staying within their designed percentage. Are your policies and operations creating unnecessary overtime. I have found that for most businesses payroll is the hardest factor to control and deal with.
When it comes to inventory, you should have a mechanism to insure that your margins are checked with each delivery. But even the most savvy business owner can't control every piece of inventory, and you can't change prices daily. Inventories get old, they get lost and sometimes even disappear and all of this adds directly to your Cost of sales. Purchasing habits change and and that can have a big effect on your cost. Vender's change policies and personnel, and with that, shipping and delivery can easily increase and erode away profit. Get rid of old inventory even if at cost. It is costing you to sit on your books and you can use the money for new inventory. If your food inventory is turning to waste, find out why and change your buying quantity. If old inventory is unsellable try donating it to charity. They can give you a receipt that will reduce your taxes.
Another area to scrutinize is your internal policies and procedures. All policies are made for a reason but businesses are not static, they are dynamic and in constant flux and change. the policy you made last year to insure quality may be out dated and costing you time and money today. Most business managers train there staff to follow policy and routines. Smart business owners should allow and reward employees to challenge or at least improve policy as the the business evolves.
Don't be afraid to step into the various roles of your business and give your operation a thorough checkup. Spend some time in their shoes. the results will put money back in your pocket, keep your business purring and give you a new renewed vision and interest into the business operation. It may be just what it needs, even if it appears to need nothing.
Running a retail business can be rewarding yet also very stress full, especially in this economy. One mistake business owners make is when times are good, they tend to let operations stagnate with the excuse "If it ain't broke, don't Fix it". But when the economy slows and business is harder to find, that is when most business owners frantically start looking at what is happening in their business. Out of desperation they begin to explore costs and inventory, they revisit employee policies and desperately look for waste and inefficiency. Remarkably, they will find all sorts of ways to reduce costs and add black to the bottom line. Its what I refer to as kicking the tires. But why do they wait for lean times to take such a serious approach to their profitability.
The truth is that it is these little expenses and wasteful habits that keep businesses from growing and achieving bigger success. Remember the old saying "A penny saved is a penny earned". In a small business it is these collection of pennies that can make the difference. Small businesses don't have the large Cash flows of big corporations to afford the luxuries that the big boys can afford. It is by keeping there operations efficient that they can have success and longevity. Sure you get your monthly statements and you know were you stand. But they don't tell the whole story. They simply present a picture of where you are, based on what you did. But what if you did something different?
In my 24 years as a small business owner I have found that it is wise to follow the same practice with your business as your health. An annual complete physical or Check up is essential to insure that your profits are not slowly eroding away. Check your key monthly expenses, Insurance, Phone, Utility, fuel. have they slowly risen? if so why? what has changed? is it time to get competitive bids or lower the thermostat, or tune the vehicles.
For most small businesses the largest expense is people. Take a good look at your pay rates and your benefit plans. Are your labor costs staying within their designed percentage. Are your policies and operations creating unnecessary overtime. I have found that for most businesses payroll is the hardest factor to control and deal with.
When it comes to inventory, you should have a mechanism to insure that your margins are checked with each delivery. But even the most savvy business owner can't control every piece of inventory, and you can't change prices daily. Inventories get old, they get lost and sometimes even disappear and all of this adds directly to your Cost of sales. Purchasing habits change and and that can have a big effect on your cost. Vender's change policies and personnel, and with that, shipping and delivery can easily increase and erode away profit. Get rid of old inventory even if at cost. It is costing you to sit on your books and you can use the money for new inventory. If your food inventory is turning to waste, find out why and change your buying quantity. If old inventory is unsellable try donating it to charity. They can give you a receipt that will reduce your taxes.
Another area to scrutinize is your internal policies and procedures. All policies are made for a reason but businesses are not static, they are dynamic and in constant flux and change. the policy you made last year to insure quality may be out dated and costing you time and money today. Most business managers train there staff to follow policy and routines. Smart business owners should allow and reward employees to challenge or at least improve policy as the the business evolves.
Don't be afraid to step into the various roles of your business and give your operation a thorough checkup. Spend some time in their shoes. the results will put money back in your pocket, keep your business purring and give you a new renewed vision and interest into the business operation. It may be just what it needs, even if it appears to need nothing.
Tuesday, October 20, 2009
We have Come Along Way since the Abacass
The other day I was explaining to a new associate the history of technology in the retail environment. I was explaining how and why Cash Registers evolved from basically adding machines to theft prevention devices and how electronics revolutionized everything into we what we now call point of sale. Suddenly I noticed a little glaze in the eyes of the recipient and I realized that although my history lesson was factual, it was no longer relevant. WOW! Who would of thought!
You see in today's world, Technology is not a new piece of science, Its a fact of life. In his mind all he's ever known is technology and any thing prior was prehistoric. Today's modern cash registers are complex, integrated computer networks that have entrenched themselves into every aspect of the business and retail world. In fact those businesses that have embraced technology have taken a bold path of no return.
The simplification and automation that today's technology adds to the business world cannot be out done except with more technology. So Once a business embarks on a path utilizing technology they will never go back, they will always move forward. Technology will become the new way of doing business. and the entrepreneur who sees the benefit's will begin to look for other ways that technology can improve daily operations. They will view the old way of doing business as archaic and irrelevant to the future. Just as my student did. However most small business fail to look at technology this way. They treat it as a expensive necessity instead of a long term investment into the future.
When considering the use of technology in a business it is crucial to make a long term plan and budget. Having a set goal and Researching is the most important thing a business owner can do before committing to purchasing any form of technology. The wrong purchase can be economically painful and in some cases fatal to the survival of the business however the right purchase with a tactical and affordable goal can can be the catalyst to success and growth.
It all Comes back to Return on investment ROI. Don't just buy a computer. Buy a back office that will improve your accounting and tell you if your making money. Buy a system that will help control your inventory and lower your food or inventory cost. Buy a solution with a Point of Sale and insure accuracy and improve your staffs through put. Take a look at all the new gadgets that will enhance the customers experience. This is a "I Want it Now" society so your POS should deliver finger tip information and availability, immediate receipts, fast credit processing, it should take the leg and pencil work out of everything you do, and most importantly, be EASY TO USE. It should compile information about your customers and have the ability to offer incentives for there return and be able to identify them when they do return and suggest a reward. It should be able to grow with your business and your vision and with the advancement of new technology. this means an open system. that is a system running on an open platform or operating system. Does all this cost more? Yes . But the return is ten fold.
Last but not least computers don't run themselves. you will need some portion of your staff dedicated to running your system so budget accordingly. consider it a necessity and part of the overall cost. Its all in the planning
In closing let me say that it is those hard challenges in business that you overcome that bring you to the next level.
If you always do what you always did you will always get what you always got.
we live in a technological world that is limited only by our lack of imagination. Let technology work for you and your business.
You see in today's world, Technology is not a new piece of science, Its a fact of life. In his mind all he's ever known is technology and any thing prior was prehistoric. Today's modern cash registers are complex, integrated computer networks that have entrenched themselves into every aspect of the business and retail world. In fact those businesses that have embraced technology have taken a bold path of no return.
The simplification and automation that today's technology adds to the business world cannot be out done except with more technology. So Once a business embarks on a path utilizing technology they will never go back, they will always move forward. Technology will become the new way of doing business. and the entrepreneur who sees the benefit's will begin to look for other ways that technology can improve daily operations. They will view the old way of doing business as archaic and irrelevant to the future. Just as my student did. However most small business fail to look at technology this way. They treat it as a expensive necessity instead of a long term investment into the future.
When considering the use of technology in a business it is crucial to make a long term plan and budget. Having a set goal and Researching is the most important thing a business owner can do before committing to purchasing any form of technology. The wrong purchase can be economically painful and in some cases fatal to the survival of the business however the right purchase with a tactical and affordable goal can can be the catalyst to success and growth.
It all Comes back to Return on investment ROI. Don't just buy a computer. Buy a back office that will improve your accounting and tell you if your making money. Buy a system that will help control your inventory and lower your food or inventory cost. Buy a solution with a Point of Sale and insure accuracy and improve your staffs through put. Take a look at all the new gadgets that will enhance the customers experience. This is a "I Want it Now" society so your POS should deliver finger tip information and availability, immediate receipts, fast credit processing, it should take the leg and pencil work out of everything you do, and most importantly, be EASY TO USE. It should compile information about your customers and have the ability to offer incentives for there return and be able to identify them when they do return and suggest a reward. It should be able to grow with your business and your vision and with the advancement of new technology. this means an open system. that is a system running on an open platform or operating system. Does all this cost more? Yes . But the return is ten fold.
Last but not least computers don't run themselves. you will need some portion of your staff dedicated to running your system so budget accordingly. consider it a necessity and part of the overall cost. Its all in the planning
In closing let me say that it is those hard challenges in business that you overcome that bring you to the next level.
If you always do what you always did you will always get what you always got.
we live in a technological world that is limited only by our lack of imagination. Let technology work for you and your business.
Subscribe to:
Posts (Atom)
