Perform Break Even Analysis with Excel’s Goal Seek Tool

As a small business owner or investor, you ask many“what-if?” questions. In preparing to present your business plan to an investor you want to know your “break even” point. Fortunately, Excel has a great tool – Goal Seek – that can save you time by creating multiple scenarios to help you determine your goal – to break even!

You can watch this Excel Video Lesson here – online – or you can download it to watch later, at your convenience. I invite you to subscribe to my podcast, Danny Rocks Tips and Timesavers” at the iTunes store by clicking this link – this is a free subscription.

Click here to see a listing of “The 50 Best Tips for Excel 2007.”

Learn how you can “Master Excel in Minutes – Not Months!”

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How to compete with competitors

“If you’re playing your competitor’s game, you’re going to lose.”

– David Yoffie

Follow the leader is a fine game to play – if you are a child. It is, however, a losing strategy in life and in business.

In my experience, I have found it easier to compete when I have been the under-dog. Less was expected of me. My goals were sharper. I looked for every opportunity to take advantage of the weaknesses of my competitors. An under-dog can do several things to gain market share:

  • If your competitor processes orders in two days, strive to turn orders around in one day.
  • If they open late and close early, do the opposite – open early and close late
  • If they offer a wide selection of products, do the opposite – find a niche market and carry a deep selection. And hire staff who care deeply about your niche and passionately serve your customers.
  • Find out what your customers value the most – and fill it for them.

Don’t play your competitors game. Play your game! Find your competitive advantage. Give your customers lots of reasons to do business with you.

Worry about your customer – not about your competitor.

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What to do when your busness is under siege

“We keep moving forward, opening new doors, and doing new things, because we are curious – and curiosity keeps leading us down new paths.”

– Walt Disney

How do you compete with “free? That has been the challenge facing the retail music store model since the year 2000. When most of the recorded music we listen to has been obtained digitally – legally or illegaly – how do you motivate customers to visit your shop to puchase Audio CDs?

There is no one easy answer. However, if you want to discover 8 possible answers then I suggest you read John Tozzi’s excellent article in Business Week Magazine – “From Bricks and Mortar to Digital Music Master.” 

This article details the eight steps that one New York City retailer – Other Music – is taking to respond to the challenge. 

Click here to read the article and also take time to view the slide show that accompanies it. Here are a few of the tips the owners and staff of Other Music are using to stay competitive and to lure customers to shop with them – online and in-store:

  • Sell MP3 Downloadson your own site. Apple’s iTunes Store does not carry every piece of music! Other music specializes in selling – and promoting – the music produced by Independent Record labels and individual groups.
  • Sell vintage LP Albums and other collectibles on auction sites such as eBay and Amazon. You may reach new customers and the prices that these collectibles fetch will almost always be higher than what you would have priced them at. The power of a free market!
  • Don’t print and mail a catalog! Put your catalog on-line and automate the mail order process.
  • Electronic Newsletters – allow you to stay visible to your customers. The more visible you are, the more value your customers will see in doing business with you.
  • Handwritten Reviews of Music by your staff. Showcase the great knowledge that you staff has about the music that your customers want to find. This is one of the greatest competitive edges that a small, independent music store has – exploint it! And… leverage it – use these reviews in your catalogs and newsletters.

Think that you can’t compete? You can, but it does require you to try some new things. Take your first step – read the Business Week article and make a plan to implement one of these eight tips this month. Not only will you see a difference … so will your staff… and so will your customers – new and old!

 

 

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Why did we choose this restaurant?

How many restaurants are in your city? Or in a city that you are planning to visit? Which one will you recommend – without hesitation. Or should I say, which one would you make a reservation for?

What makes one restaurant stand apart from the others? Is it the food? The ambience? Or the people?

This afternoon, my wife & I were finishing up our trip to Boston. We had our minds – and appetites – set on sitting at an Oyster Bar and slurping away. We took a cab downtown only to find the restaurant closed because of a natural gas leak.

To put it mildly, we were greatly disappointed.

But just a few bloks away was Hanover St. – a street filled with Italian restaurants. We had dined on this street earlier in the week and thought that we should try another one of the many Italian restaurants crowded in this area of town. But which one to choose?

Our choice was made for us! By Guilio- a wonderfully vital 70-year old man. He saw us looking at the menu from the street. And then … he just appeared and said,”If you come into my restaurant, I promise that you will have a wonderful experience.” And it was!

Guilio sat us by the window and quickly said, “Michael, come over and take care of our new friends!”

Both Guilio and Michael took very good care of us. Lots of good-natured banter; lots of insider tips about the menu; lots of personal care. The food was great. But Guilio and Michael turned this into a truly memorable meal – one that my wife and I will recount to our friends and colleagues for many years to come!

We will send them lots of business based up our recommendation. Wouldn’t you like to have lots of unsolicited referrals for your business?

You can – just delight your customer. Make thier experience with you a memorable one. Those memories will turn into stories told. Those stories will in turn become referrals for your business. The best advertising you caan’t buy – word-of mouth recommendations!

The best part of the day with Guilio & Michael? Easy!

My wife wanted to take a box of Cannoli’s back to our family. There is a great Italian pastry shop up the street from the restaurant. But there was a problem – a line of 25 people waiting to get inside to join another line to order some Italian pastries.

That’s when Michael took charge of the situation. He took my wife by the hand and said, “Come with me.” He went into the pastry shop and went right to the front of the line, He whispered a few words to the owner. Within a few minutes, he presented my wife with a perfectly wrapped box of Cannolis – specially packaged for the plane trip home.

By the time they returned to the restaurant, I had already decided that Michael was going to receive a very large tip from me. And my recommendation that all of my friends patronize his restaurant.

The food was great. The ambience was warm. But it was the people – Guilio and Michael who made the meal memorable. You can bet that we will return there soon – and often!

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Gone – but never forgotten

“If you think you are too small to have an impact, try to go to bed with a mosquito.”

– Anita Roddick

It sounds morbid, I know, but I begin each morning by reading the Obituary page in The New York Times. I’ve done this for years. I consider an obituary to be a celebration –  a tribute to a life well led.!  Reading it is also an opportunity for me to look forward – to ask myself, “Have you done everything that you wanted to do yet? If not, why not start today? What are you waiting for?”

Anita Roddick, the founder of The Body Shop, passed away last September.  I first became aware of her a few years ago, when I found the quotation that I use at the top of this post. What a remarkable woman! What a story! What a life! What an impact she made – just like a mosquito bite!

I wanted to learn more about her – and then she was gone…

I was too busy to comment on her passing last year. But her voice remains in my head. And her story continues to evolve.

This morning, as I was preparing to travel to a conference of small business owners and managers, I was doing some research on Anita Roddick. As a result, I came across a wonderful tribute to Dame Roddick by Valeria Maltoni. This eulogy was originally published on the Fast Company.com website.. Click here to read it. Great writing, Valeria!

And that is another benefit of reading the Obituary page – I discover great writing – and great writers! Until this morning, I had never heard of Valeria Maltoni. From just a quick look at her website and blog, I want to read more. Her voice is unique. I want to hear more!

I’ve started my day with a new discovery. How did you day begin? How will it end? Make it happen!

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When prices force you to move your business

Yesterday, I wrote about how technology is changing the textbook publishing business. Today, it is time to shine the spotlight on the an endangered species – the independent neighborhood record store.

Click here to read The New York Times’ article, “Record Stores Fight to Be Long-Playing,” by Ben Sisario. Here is a brief excerpt:

“The hole-in-the-wall specialty shops that have long made Lower Manhattan a destination for a particular kind of shopper have never made a great deal of money. But in recent years they have been hit hard by the usual music-industry woes — piracy, downloading — as well as rising real estate prices, leading to the sad but familiar scene of the emptied store with a note taped to the door.”

So, if you thought that it was difficult to compete against “Free!” – as in illegal downloading and file sharing – try to compete against 300% rent increases:

“Rent is up, and sales are down,” Malcolm Allen of Jammyland said as he sold a few Jamaican-made 45s to a customer last weekend. “Not a good combination.”

One strategy for survival is to diversify the range of merchandise that you offer for sale. Another is to sponsor more in-store community events – concerts, meet-the-artists, lessons, clinics, etc.

One such (nation-wide) event took place yesterday – April 19, 2008 was proclaimed “Record Store Day.” And an impressive roster of artists, record labels and community organizers joined forces to create fun events to give visibility to the value of the neighborhood record store. Continue reading “When prices force you to move your business” »

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Starbucks – This is Not About Training

starbucks-closing-stores.jpgI applaud the leadership of Howard Schultz, the CEO of Starbucks. As you may know, Starbucks closed all 7,100 of their stores yesterday for a 3 1/2 hour training session. Here is a short excerpt from Mr. Schultz introductory remarks:

“This is not about training,” he said to his employees, looking somewhat somber. “This is about the love and compassion and commitment that we all need to have for the customer.”

I like to remind myself that “A business without customers is not a business.” Customers define your business. Attracting and retaining customers is the number one job of every employee. Starbucks is selling much more than coffee. It is selling the “Starbucks Experience.”  And recently, customers – as well as the CEO – have found that experience to be lacking.

Mr. Schultz and others had a mission and a vision to elevate coffee from a commodity (10 cents a cup and free refills) to a lifestyle choice. He wanted to recreate the experience he enjoyed on a trip to Italy, sipping espresso in a cafe. He wanted to create a sensual experience for customer when they visited a Starbucks location. He wanted to create a sense of theatre as the barista prepared each special beverage. He wanted the exchange between the barista and the customer to be personal.

This is what Mr. Schultz had to say  (in a recent memo) about the present state of Starbucks:

…one of the results has been stores that no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store. Some people even call our stores sterile, cookie cutter, no longer reflecting the passion our partners feel about our coffee. In fact, I am not sure people today even know we are roasting coffee. You certainly can’t get the message from being in our stores.

Definitely time to wake up and smell the coffee!

I promised to go out to my local Starbucks first thing this morning in order to observe any immediate changes as a result of yesterday’s training. It’s now time to go … I’ll report on my experience later today.

Let me know what you think on this topic. Share your experience with our readers.

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Law of Reciprocity

`Who says that customer service is dead? It’s alive and well! I found another exceptional employee the other night – a clerk in a Barnes & Noble Bookstore in suburban San Diego, CA. Here’s the story.

I saw (part of) a terrific documentary on Television about a month ago. I really wanted to purchase a copy of the DVD if it was available. The only problem was that I couldn’t remember the name of the film. So, I had some time on my hand prior to my drive home and went looking for it at the local Barnes & Noble.

The clerk looked friendly enough and, of course, he asked if he could help me.

“Yes, I’m looking for a documentary about the musical sidemen who backed the Motown stars on their recording sessions in the 60’s and 70’s. I don’t know the title. Can you help me?” Continue reading “Law of Reciprocity” »

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How are you known to your customers?

“The most valuable asset that any company has is its relationship with its customers. It’s not who you know; rather it is how you are known to them.”

– Theodore Levitt, Harvard Business School

I discovered this quote about 8 years ago and it has become my daily mantra. I strive to live by it’s principles.

So, this quote immediately came to mind when I heard the news that Governor Mitt Romney was suspending his campaign for the Republican Presidential nomination. How was Gov. Romney known to many voters? As a “flip-flopper”; someone who frequently changed his position on key issues.

It is one thing to change your position on an issue after receiving new information or after considerable thought and deliberation. Unfortunately, Gov. Romney seemed to change his position based up the audience that he was addressing or as a result of a recent poll that indicated that voters showed a preference for a different position.

Leaders do not listen to the latest poll results. They listen to their heart. They speak directly; not from both sides of their mouth on all sides of a core issue.

In an article on Politico.com, Mike Allen and Jonathan Martin wrote: Continue reading “How are you known to your customers?” »

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Book Review: Marketing Your Retail Store – In the Internet Age

I love this book!

If you operate a retail business, regardless of size or industry, you need to buy this book – now! In my opinion, it is the most practical and tactical business book for retailers who want to learn how to attract and retain customers. For every concept covered, Bob & Susan Negen provide both “Low-Tech Tactics” and “High-Tech Tactics” for the retailer to implement. Continue reading “Book Review: Marketing Your Retail Store – In the Internet Age” »

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