What is customer What is customer service?service?

Who is your most Who is your most important customer?important customer?

Everyone matters!Everyone matters!

Hey, it could be Dale!Hey, it could be Dale!

10 “Secrets” of 10 “Secrets” of ProfitabilityProfitability

How important is How important is profitability??profitability??

By focusing on By focusing on revenuerevenue, you will not , you will not automatically receive profitsautomatically receive profits

What?!? Hasn’t this been our focus What?!? Hasn’t this been our focus Dr. K?Dr. K?

Maximizing revenues does Maximizing revenues does notnot mean mean that you are maximizing profits.that you are maximizing profits.

Happiness is a profitable business Happiness is a profitable business with a positive cash flow!!!!!!with a positive cash flow!!!!!!

1. Focus on costs, to increase 1. Focus on costs, to increase profitsprofits

Improving profits by $10,000 is the Improving profits by $10,000 is the same as increasing sales by $200,000 same as increasing sales by $200,000 or reducing costs by $10,000or reducing costs by $10,000

What are some areas to look at to What are some areas to look at to reduce costsreduce costs

AdvertisingAdvertising CommunicationsCommunications BenefitsBenefits

Other areas to examineOther areas to examine

InsuranceInsurance

OvertimeOvertime

Every expense needs to be gone Every expense needs to be gone overover

2. Focus on customer 2. Focus on customer serviceservice

Always, always try to exceed your Always, always try to exceed your customers expectations!customers expectations!

Do a customer satisfaction survey.Do a customer satisfaction survey. Customer service starts to when the Customer service starts to when the

customer calls in till the product is customer calls in till the product is delivered.delivered.

How to deal with an irate customer.How to deal with an irate customer.

3. Get great employees3. Get great employees

Employees are the key to any businessEmployees are the key to any business Forget about training and hire for character, Forget about training and hire for character,

motivation, and people skillsmotivation, and people skills If an employee or a customer gives you a If an employee or a customer gives you a

headache, then get rid of them.headache, then get rid of them. Great employees will make your job easier Great employees will make your job easier

and better.and better. Pay employees as much as you can, within Pay employees as much as you can, within

reason.reason.

4. “Incentivize” each and every 4. “Incentivize” each and every workerworker

People work harder with People work harder with incentivesincentives You get congruence with goals of You get congruence with goals of

business and workerbusiness and worker Less managementLess management Work is more fun with incentivesWork is more fun with incentives Incentives do not have to be moneyIncentives do not have to be money

5. Work smarter, not harder5. Work smarter, not harder

Burnout happens to business owner who Burnout happens to business owner who think they can work harder and harderthink they can work harder and harder

Economic reward system is not for labor Economic reward system is not for labor but for smart work.but for smart work.

Use your mind to figure out how to work Use your mind to figure out how to work smarter.smarter.

Definition of insanity…Definition of insanity… Make sure you work more on your Make sure you work more on your

business rather than in your businessbusiness rather than in your business

6. Watch your marketing 6. Watch your marketing expensesexpenses

More money is wasted here than anywhere else.More money is wasted here than anywhere else. Develop a marketing planDevelop a marketing plan Set goals that you need to make with salesSet goals that you need to make with sales Limit advertising expenses to between 3 to 5% of your revenue.Limit advertising expenses to between 3 to 5% of your revenue. Make advertising, outcome driven.Make advertising, outcome driven. Be proactive with advertising.Be proactive with advertising. Watch yellow page expensesWatch yellow page expenses

Ask your customers if there is anything additional that you can provide Ask your customers if there is anything additional that you can provide them(chicken example).them(chicken example).

7. Find a mentor7. Find a mentor

Mentors do work- why?Mentors do work- why? How do you find a mentor?How do you find a mentor? Most people are honored to be a Most people are honored to be a

mentor!mentor! Only cost is an occasional mealOnly cost is an occasional meal If you try this, I guarantee that you If you try this, I guarantee that you

will love this.will love this.

8. Do not compete on price8. Do not compete on price

If you can avoid competing on price, If you can avoid competing on price, you are better off (but this is hard)you are better off (but this is hard)

Compete on Compete on qualityquality Compete on Compete on serviceservice How to price your productHow to price your product

9. Understand financial 9. Understand financial statementsstatements

What is the purpose of these things?What is the purpose of these things? How important are these How important are these

statements?statements? How to read the statements?How to read the statements? You can master this!!!You can master this!!!

10. Take vacations!!10. Take vacations!!

Avoid burnoutAvoid burnout Examples of entrepreneurs who did Examples of entrepreneurs who did

not take time off...not take time off... Take Take longlong vacations vacations When you forget what day it is, this When you forget what day it is, this

is a fine vacation...is a fine vacation...

Quick ReviewQuick Review

Focus on costsFocus on costs Customer ServiceCustomer Service Find great employeesFind great employees Incentives for workersIncentives for workers Work smarter, not harderWork smarter, not harder Marketing directionMarketing direction Find a mentorFind a mentor Do not compete on price if canDo not compete on price if can Understand financial statementsUnderstand financial statements Take vacationTake vacation

Any Questions???Any Questions???

Entrepreneurs are the people Entrepreneurs are the people that make our country that make our country

great!!!!!!!!!!!!great!!!!!!!!!!!!

Thank you for letting me be your Thank you for letting me be your professor this semester!!professor this semester!!