What is customer service?

Who is your most important customer?

Everyone matters! Hey, it could be Dale!

10 “Secrets” of Profitability

How important is profitability?? By focusing on revenue, you will not automatically receive profits By focusing on revenue, you will not automatically receive profits What?!? Hasn’t this been our focus Dr. K? What?!? Hasn’t this been our focus Dr. K? Maximizing revenues does not mean that you are maximizing profits. Maximizing revenues does not mean that you are maximizing profits. Happiness is a profitable business with a positive cash flow!!!!!! Happiness is a profitable business with a positive cash flow!!!!!!

1. Focus on costs, to increase profits Improving profits by $10,000 is the same as increasing sales by $200,000 or reducing costs by $10,000 Improving profits by $10,000 is the same as increasing sales by $200,000 or reducing costs by $10,000 What are some areas to look at to reduce costs What are some areas to look at to reduce costs Advertising Advertising Communications Communications Benefits Benefits

Other areas to examine Insurance Insurance Overtime Overtime Every expense needs to be gone over Every expense needs to be gone over

2. Focus on customer service Always, always try to exceed your customers expectations! Always, always try to exceed your customers expectations! Do a customer satisfaction survey. Do a customer satisfaction survey. Customer service starts to when the customer calls in till the product is delivered. Customer service starts to when the customer calls in till the product is delivered. How to deal with an irate customer. How to deal with an irate customer.

3. Get great employees Employees are the key to any business Employees are the key to any business Forget about training and hire for character, motivation, and people skills Forget about training and hire for character, motivation, and people skills If an employee or a customer gives you a headache, then get rid of them. If an employee or a customer gives you a headache, then get rid of them. Great employees will make your job easier and better. Great employees will make your job easier and better. Pay employees as much as you can, within reason. Pay employees as much as you can, within reason.

4. “Incentivize” each and every worker People work harder with incentives People work harder with incentives You get congruence with goals of business and worker You get congruence with goals of business and worker Less management Less management Work is more fun with incentives Work is more fun with incentives Incentives do not have to be money Incentives do not have to be money

5. Work smarter, not harder Burnout happens to business owner who think they can work harder and harder Burnout happens to business owner who think they can work harder and harder Economic reward system is not for labor but for smart work. Economic reward system is not for labor but for smart work. Use your mind to figure out how to work smarter. Use your mind to figure out how to work smarter. Definition of insanity… Definition of insanity… Make sure you work more on your business rather than in your business Make sure you work more on your business rather than in your business

6. Watch your marketing expenses More money is wasted here than anywhere else. More money is wasted here than anywhere else. Develop a marketing plan Develop a marketing plan Set goals that you need to make with sales Set 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 expenses Watch yellow page expenses Ask your customers if there is anything additional that you can provide them(chicken example). Ask your customers if there is anything additional that you can provide them(chicken example).

7. 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 mentor! Most people are honored to be a mentor! Only cost is an occasional meal Only cost is an occasional meal If you try this, I guarantee that you will love this. If you try this, I guarantee that you will love this.

8. Do not compete on price If you can avoid competing on price, you are better off (but this is hard) If you can avoid competing on price, you are better off (but this is hard) Compete on quality Compete on quality Compete on service Compete on service How to price your product How to price your product

9. Understand financial statements What is the purpose of these things? What is the purpose of these things? How important are these statements? How important are these statements? How to read the statements? How to read the statements? You can master this!!! You can master this!!!

10. Take vacations!! Avoid burnout Avoid burnout Examples of entrepreneurs who did not take time off... Examples of entrepreneurs who did not take time off... Take long vacations Take long vacations When you forget what day it is, this is a fine vacation... When you forget what day it is, this is a fine vacation...

Quick Review Focus on costs Focus on costs Customer Service Customer Service Find great employees Find great employees Incentives for workers Incentives for workers Work smarter, not harder Work smarter, not harder Marketing direction Marketing direction Find a mentor Find a mentor Do not compete on price if can Do not compete on price if can Understand financial statements Understand financial statements Take vacation Take vacation

Any Questions???

Entrepreneurs are the people that make our country great!!!!!!!!!!!! Thank you for letting me be your professor this semester!!