ABC Solutions

Influencing Your Word-of-Mouth Results

Just about every business relies on “word-of-mouth” marketing to get the vast majority of its clients. If this is true for your business, then it just makes sense to figure out how to boost your referrals from all sources. Referrals are almost always easier to sell and they keep your marketing costs low. But how can you do that?

The first step is to make sure that you know who your best current referral sources are. If you’re not already asking the question to new clients “How did you find out about us?” then I’d recommend you implement that right away.

If you do know the answer to that question for each customer, then you can make a list of your referral sources. Take a look at the list, and see what these referral sources have in common. Here are some questions to ask:

  • Are they all customers?
  • Do they all have a profession in common? For example, are they all lawyers, massage therapists, plumbers, or pediatricians?
  • Have you properly thanked each of these individuals? If not, you can send out a thank you card or take them to lunch with no other agenda.

The last question to ask yourself is “where can you find more of the same type of people that are referring you?” If you discovered that you get a lot of business from dog groomers, then you may want to consider visiting every grooming salon in your zip code. You may also want to present a speech to a dog groomers Meetup group that you find.

You really can be proactive about your referrals so that business comes to you more easily. Try these tips to boost your referral sources in your business.


The One Question to Ask Each Day

As a business owner, you’re likely torn in a hundred different directions every day. It can take up most of the work day just fighting fires, serving your customers, and answering employees’ questions. It’s super-easy to lose sight of what you can be doing to move your business forward the most.

That’s when “the one question” can come in handy. It’s something you can ask yourself at the very beginning of each day, even before you check your email.

The one question is, “What’s the highest payback thing I can do today that will boost my profits?”

It’s not fighting fires or answering routine employee questions or even serving current customers. Although those are all important and essential, none of them will take your business to the next level.

It could be meeting with a power partner or referral source that sends you a lot of business, designing the next campaign that will bring in a higher level customer, or researching new products to sell. It’s going to be a task that gets you working “on” your business instead of “in” it.

If you like this idea, consider writing the question on a sticky note and posting it to your bulletin board so that you can see it every day.

Try asking yourself this one question each day: “What’s the highest payback thing I can do today that will boost my profits?” Then do it, and watch your business grow.


Planning for a Fabulous 2015

The holiday month of December brings celebration as well as reflection for all the events that occurred in 2014.  It also gives us great hope for a new fabulous start in 2015.  Here are three ideas to start 2015 with a bang.

  1. Find a focus for the year.

    Instead of getting into the rut of making and breaking resolutions, consider having a focus for the entire year.  Choose your focus from among things like:

    • Developing a department in your business, such as your sales, marketing, operations, HR, admin, or another.  The focus will be on building or expanding the department you’ve chosen to work on.
    • Changing your company culture to a trait or aspect you want to be known for.  Developing the trait will be your focus.
    • Building a relationship with an individual or a group of people related to your business.  The relationships are the focus.

  2. Live by a theme for 2015.

    Your theme could be an emotion or expression such as gratitude or compassion.  It could be a color – purple – just for fun.  You might adopt a favorite quote or religious verse or even song.  Your goal for the year will be to embody your theme and/or bring it into other’s lives as well.

  3. Do the one big thing.

    Are you holding back on a huge dream for yourself?  Then take steps in 2015 to move closer to it.  Make 2015 your year to do the one big thing that’s been weighing heavily on your mind.  Just think how you’d feel if you finally did it; your life would be forever altered.

Happy 2015Write your focus, your theme, or your one big thing on dozens of sticky notes, and plaster them everywhere.  Mark your calendar and to do list with reminders and milestone checks.  Make art out of your sticky notes, and post them on the refrigerator door and your office walls.  That way, the reminder will be physically with you all year.

We wish you a happy and healthy new year to you and yours.

What Is Real-Time Accounting (and Why Should You Care)?

Real-time accounting is when your books are caught up to the present and you know exactly where you stand with your account balances, revenue, and profit.  It’s truly doing your accounting in real time.

The opposite of real-time accounting is getting your books done once a year (or worse, being years behind).  When you wait to do your books once a year, say at tax time, you lose the power of being able to monetize opportunities in real time.   Some examples are realizing your prices are too low and your profit margins need adjustment, seeing what’s selling well and restocking sooner than later, or discovering a worker is not productive based on your pay rates and prices.

Today’s cloud accounting systems and bank feeds allow you the potential for real-time accounting, where the benefits include:

  • Better cash flow management
  • Faster correction of pricing, hiring, stocking, and margin mistakes, saving money and increasing profits faster
  • Faster identification of any tax liabilities as well as the ability to reduce or eliminate penalties from paying late or underestimating taxes due
  • Ability to see whether you are making a profit or a loss
  • Potential to catch fraud or identity theft much faster if you become a victim
  • Lower accounting costs when errors snowball over time
  • More peace of mind
  • Ability to be more proactive in your business management, capitalizing on opportunities that show themselves in the numbers

Consider moving to real-time accounting if you haven’t already.  For example, if your books are done annually, moving to quarterly or monthly services will begin to provide the advantages listed above.

How Understanding Assets vs. Expenses Can Make You Rich

Assets and expenses both have a “debit” balance on the financial statements, but that’s where their similarities end. Spending on one can make you rich and spending too much on the other can leave you broke.

An expense is money you may need to spend, but after a year, there is nothing lasting to show for it. An asset is a tangible resource that is still worth something after a year or more and that belongs to you or your business. The best assets grow in value over time, but some lose their value too. Real estate typically goes up in value, while a car loses value, or depreciates heavily, in its first few years.

The best example of an asset versus an expense is spending on a mortgage versus rent. When you pay a mortgage, you own more of the property than you did last month. One day, you can sell your ownership in the property and get cash or another asset in trade. When you pay rent, there’s nothing left at the end of the month. There’s no accumulated value.

Generally speaking, spending on an asset builds or at least better preserves your wealth. Spending on an expense drains your worth because you don’t own anything at the end.

The path to building your wealth is to spend on assets when you have a choice and minimize expenses when you can.

In the book “The Millionaire Next Door,” one of the top examples to build wealth is to avoid replacing your car as long as you dare. It used to be a habit for some families to replace their car every two years. With today’s reliable models, you can go between five to ten years without having to replace your car. Although a car lasts more than a year and is considered an asset, it still loses value every year.

Investing in assets and reducing expenses will build your business’s net worth and increase profits. Look for ways you can apply this to your business and watch your money grow. As always, reach out if you’d like to know more.