The gamesmanship still continues …

It’s been a while since the President has been in full blown “crisis” mode, but it doesn’t appear he is quite there yet with the lingering small business credit crunch that has only been in effect for the last two years or so …

The “urgent” need for small business aid …

Unfortunately, both sides on this issue have played games with policy at the expense of small business owners and creditors who need more signs of certainty from the political class about plans for the economy moving forward.

Despite the rhetoric, there have been few signs of true incentives to get these markets moving again, or to give small business owners an idea of the future costs of health care and other new business and financial regulations the Obama Administration (and Congress) has cooked up over the past year or so.

Will a couple more weeks make any difference for the millions of businesses that desperately need access to expanded credit lines?

Probably not …

But the good news (in a bit of a cynical twist) … is that if those companies have survived, they are probably lean enough, creative enough and innovative enough to survive no matter what the policy makers do.

And that is the ultimate triumph of entrepreneurship in the “dog days” of our “Recovery Summer” …

Jodie Shaw

Off to Barcelona …

… for the largest gathering of Business Coaches in the world!

Our ActionCOACH Global Conference kicks off next week in Barcelona … with more than 300 coaches and their significant others in attendance.

Conference time is always a mix of stress and excitement, as we always go into Global Conference with a lot of new ideas and initiatives … and come out of Global Conference with loads of new learning, education, strategies and plans for the future.

This year … I’m focused on a lot of numbers … from the level of our revenues our coaches generate to the number of leads we are looking to consistently generate for our coaches.

Numbers are the language of business, and I’ve discovered that the best way to move any metric or benchmark in business is to have a good handle and understanding of the numbers that drive a particular business.

It’s hard to argue with numbers as facts … and it’s hard to avoid accountability if you truly run (and are run) by the numbers.

So … here are some good questions to help you start to benchmark your own numbers:

• Do you know how many leads your marketing program has generated today?
• Do you know what your highest margin product is right now?
• Your best-selling product?
• The number of competitors in your category?
• Their yearly revenues?
• YOUR yearly revenues? (Trust me … it’s a more valid question than you may think!)
• Do you know the “lifetime value” of your current customer?
• Do you know how much it costs to “buy” a new customer for your business?
• Do you know how much the average customers spends with you each time they buy?

If you know the answers to some of these questions …  great!

Now … how do you propose increasing your numbers in these areas?

If you don’t know … even better!

Now you have some homework to do … and while I’m networking and leading hundreds of coaches at our Global Conference, you can be digging into the numbers side of your business.

Because if you don’t know how the numbers are running in your own company, you run the risk of the numbers running you out of business …

And in this economy … that’s something no one (especially your customers) wants to see.

Jodie Shaw

Cashflow or profits?

In our last post we looked at the importance of generating leads over “building a brand” …

Now, for a more financially-oriented question:  What’s more vital initially for your business … cashflow or profit?

Hmmm …

We’ll tackle this one in a later post …

Jodie Shaw

More reform? Or more small business credit woes?

While this just posted …

“Financial Overhaul Passes Key Senate Hurdle …”

I found this going through some old emails over the past week:

Small business credit woes …

As if there isn’t enough “crunch” in the small business credit markets already.

I’d be interested to hear your thoughts about “reform” measures … and how you think they would affect your operations over the next year (and years to come).

I have an idea what your answers will be … and I’ll address some of my own thoughts about this topic in future posts.

Jodie Shaw

Why “knowing your numbers” means ALL of your numbers …

Here’s a great example of how even “small” costs can add up over time, and in time, really start to “choke” profits:

Read about the impact of “swipe fees” …

As mentioned, one small business owner discovered just how the “swipe fees” on credit and debit card transactions added up … and not very well, especially for small companies.

This is a great example of knowing your numbers … and taking that knowledge a step further so that you have a good handle on ALL of your numbers (especially on the cost side).

That’s really the only way you can make better decisions on your own costs … and how to make it easier for your customers to do business with you.

Jodie Shaw

Here’s a stimulating number … 36,000 new jobs

How valuable is franchising to the overall economy?

Here’s an interesting article on some new stats from the IFA (the International Franchise Association) about the stimulating effects of franchise operations on job creation …

Franchising and job growth …

These numbers are also interesting in context.

From the period 2001-2005, the annual rate of franchise economic output grew at an average of 9.7% a year.

Even in the current 2009-2010 period, that output has continued to grow at a rate of 2.8% … an uptick from a decline of 0.7% in 2008-2009 (a decline less severe than the 2.4% fall in GDP over that same period).

What’s the explanation for the strength of franchising in the face of economic challenges?

Proven systems and methodologies.

Unlike a business owner who has never experienced a downturn, a franchise system is built to meet a variety of challenges, including economic slowdowns.

The system, in the case of a franchise, is the solution.

It is heartening to see some economic bright spots in our industry leading the overall economy out of our current stagnation.

And for those interested in becoming a franchisee at some point, the article also outlines some good things to consider before making the leap into a new business venture.

But overall, the numbers continue to favor franchising as both an engine of the economy and a driver of job creation.

It’s also a great way to jump into the business world as an entrepreneur, especially if you don’t really know “how to” run a business.

Because a good franchise system is exactly that … a system.

And a good proven system will always be more successful than an independent owner using “trial and error” as a business plan or personal path to success.

Jodie Shaw