Solomon Bruce Consulting: Blog

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Make Planning Adjustments NOW for a great 2010!

noreply@blogger.com (Joe Michels) — Sun, 28 Mar 2010 02:14:00 +0000

With 25% of 2010 gone, now is the time for you to review your operating plan and see what changes, if any, need to be made. Although this has been a rough year so far, all of the folks that I talk to tell me that things are going somewhat better than 2009. That being said, now that the first quarter of 2010 is gone, let's review the operations plan and make changes for the next 3 quarters.
   I trust that you developed an operations plan in December 2009 for 2010. Assuming that to be true, by taking a review of your firm's performance in Jan/Feb/March 2010, you have some idea of what changes you need to make. For instance, you may wish to increase product forecasted sales if indeed you did experience a sales increase in Q1. Analyzing each of the various product categories to determine how each category contributed to your overall sales process. In some cases, you may need to reduce expected sales, in other cases, you may need to increase those forecasts based upon Q1.
   As we continue throughout the year, watching the plan and making quarterly adjustments will allow you to "come in on target" by December 31. After all, now is not too early to be planning for the fall season. Although your business may not have a seasonality component in it, i.e., a clothing store that has winter clothes, you still need to determine what you expect the businesses performance will be based upon the data collected in Q1.
   Most of our clients and many business people that I talk to, throughout the region and the country, are telling us that business has picked up. In some cases, the pick up has been substantial, in others, a moderate amount, but an increase non the less. We would not suggest that you reduce anything that you are currently doing, if anything, probably increase the marketing effort to try and make up for part of last year, 2009.
   Managing the plan, increasing your marketing and watching the till are the key measures needed to insure a profitable 2010.

Merging companies-- Is the cultural fit right?

noreply@blogger.com (Joe Michels) — Mon, 22 Mar 2010 01:43:00 +0000

I was in a service business last week that had recently merged with another similar business which was larger and had a greater customer base. Interestingly, I had used this smaller service business for several years, had got to know most of the staff, as well as the owner and general manager.
The atmosphere when I walked in was different. You know how that it is, it is just different. Yes, the people were friendly, however, the business had been rearranged, some of the pictures were taken down, other pictures put up in their place. I met with the general manager and told him why I was there and what kind of service I needed. He told me that his staff would be happy to help me solve my problems! I said great-- that is what I needed, solved problems.
   As we filled out the paperwork for the service staff to fix my problems, I asked how the change in new ownership was going. Interestingly, he said that some days things are great, other days, it was not as much fun as it used to be. Now, I wanted to know what would generate that kind of answer. As we visited for several more minutes, it became clear to me that the cultural fit of each company was much different.
   The smaller company had a much more "family" type of atmosphere, where rules and regulations were in place, however, there was some degree of tolerance to be able to make "adjustments" if needed because of rules. In the new company, everything was being done on the computer, and there was no tolerance for deviation. If the computer said to do something, that was how it was done. I clearly noticed that some of the staff from the smaller firm were having "learning challenges" with all of the new rules, policies and procedures. Now, this is natural for change to happen in any type of new organization. However, the real question that must be asked is "How are our two cultures going to merge successfully?"
    This is not the first time that I have addressed the subject of merging corporate cultures. Interestingly, it makes no difference if we are talking about a 3 person office merging with a 39 person firm, or a 125 person store merging with a 400 person company-- the issues and concerns are the same.
    During these turbulent times, many business owners that we talk to are looking at merging with another firm. The answers that we normally hear are the merger will be better for both firms, we will be able to provide services that neither firm is able to profitably provide, able to increase customer base, reduce inventories, etc. The one element that I do not hear about is how the different cultures will integrate.
    If you are thinking about either buying another company, going into partnerships with another firm, you really need to spend some time on culture of each firm.
    Here are some questions that need to be addressed BEFORE the companies merge:
A. Do we do things the same way? Does one firm use automation almost exclusively and the other firm use manual methods?
B. How will our various staff members integrate into the new combined firm? What about skill duplication, overlap?
C. Will more training be required for all staff because of the integration of both firms?
D. Will more harm than good be done if we decide to merge?

   These are questions that many firms wish they would have considered before they merged. In many instances, the merger did not work from the beginning. In other cases, it took several years and much greater than anticipated expense expenditures before the combined firm worked as initially envisioned.
   If you are thinking about merging your firm with another, irrespective of the size of your firm, carefully consider the points above. The cultural fit of two discrete companies has to be carefully considered in the overall merger process.

Customer Confidence-- Do you ensure it every day?

noreply@blogger.com (Joe Michels) — Mon, 15 Mar 2010 15:32:00 +0000

I had to buy some tires last week for my car. I went to a local tire store that I had been recommended to go to by local medial professional. According to this medical professional, this tire store was the best in town. Taking that advice, I stopped at the store, ascertained that the correct size tires were available, the price was competitive and the service time was acceptable. I left my car, attended to other business matters and returned several hours later, ostensibly ready to drive home. However, we began to encounter a series of "glitches"!
The first glitch was that the computer would not accept the serial numbers of the tires. After a few minutes, the manager came to me, red faced, and said that they had installed the wrong size tires on the car. OK, glitches happen, what did we need to do to fix it. Leave the car for another hour and the correct tires would be put on the car. Well, OK, I needed the tires, people make mistakes, go ahead and fix the problem. While I was there, the tire shop manager said that the brakes were in need of repair as well.
   I did know that the brakes were needing repair, however, what I did not know was that, according to the shop, I needed not only brake pads, but new rotors and calipers as well. Swallowing hard after hearing the price, I said go ahead, knowing that the car needed the brakes.
Now, it was 7 PM when I returned to get the car. After I paid the bill, I got into the car. I instantly knew that we had problems. The car sounded like an old International Harvester truck that we used to have on the farm. Something was not correct. I drove the car home, frustrated that something was wrong.
    I took the car back a couple of days later for "checking". What the shop told me was that they had improperly put the car on the lift, bent a piece of metal underneath the car, knocked the muffler out of the bracket and had to replace the real brake pads with Original Equipment Manufacturer parts. WOW! Whatever confidence I had in this shop completely dissipated. Tomorrow, I am going to the dealer to see what other damage might have been caused by this shop.
   What if this shop was yours. How would you handle this matter? How do you handle matters when the shop made grievous errors of procedure? Interestingly, the shop was very willing to admit that they goofed up, but did not seem how to "fix" the problem. The shop foreman told me that they had quality control checks all around and he was surprised that this challenge happened to me. My unspoken question was how did the shop function in the first place? Are you out on the floor each and every day watching what your employees are doing? Do you hear customer complaints immediately? Do you try to resolve these complaints as soon as possible?
   The shop manager was proud of the work being "guaranteed". Of course, it really makes no difference now, I will never go back to invoke the "guarantee". I have lost full faith and confidence in this business. Sadly, I should not have lost that faith.
   I would strongly suggest that you review your policies and procedures when glitches inevitably occur. After all, we are all humans. However, I think that the glitches at the tire store are representative of a much greater challenge. Business is hard to keep. Forcing customers away from your business after you have tried everything to get customers to come in is futile. A good procedure check is necessary in times such as these.

Employee Empowerment-- What is your employee's role?

noreply@blogger.com (Joe Michels) — Tue, 09 Mar 2010 20:55:00 +0000

I met the other day with an airport fixed base operator (FBO). He was extremely frustrated by the challenges he continues to experience with "service providers" in his community, especially regarding catering for aircraft that purchase fuel and then continuing on to their ultimate destination.
The FBO manager told me a story about a deli that he prefers to use and has had excellent service from in the past. However, last week, he called, on short notice and asked that 7 complete sandwiches, i.e., sandwich, chips, apple, drink be made for an inbound aircraft that needed fuel to continue on their journey. The clerk at the deli told him that the "grill was off" and the sandwich preparation area was being cleaned before closing. The FBO manager asked, "What time do you close?" He was told the deli would close in an hour and a half!
   Now, no matter of reasoning with the clerk to get the sandwiches made did any good. In the end, the manager ended up "working the phones" trying to find someone or some cafe to make his 7 sandwiches for him to fulfill the incoming aircraft's meal needs.
   As we talked about this, the FBO Manager told me that cost was no object. He did not care what the cost was, the client wanted the sandwiches and was willing to pay whatever! Wow, when/where do you ever hear that, in today's constrained market?
   As business owners, it is important for you to insure that your staff is empowered to make decisions that will enhance/increase your business sales and business opportunities. This requires that you provide your staff with the requisite training and understanding of their role in the overall operation of the business. After all, you cannot be there 24/7/365, however, if you have trained your employees well, they will know exactly what they are authorized to do and how you expect it to be done.
   In the example above, we don't have enough information to ascertain what the deli cleaning and closing policy was. However, shutting the grill down and cleaning the sandwich preparation area 1.5 hours before closing does not seem to allow for "last minute" calls that can be very profitable. In today's environment, one wants to insure that your business is taking advantage of all available opportunities, no matter how they are presented. In this case, this was a lost opportunity that resulted in profit going down the drain.
   Have you trained all of your employees to be "customer service friendly?" Do your employees know how much latitude they have in making decisions when you are not physically present on the premises? Do your employees know that the customer is the individual who pays the bills?
   Although this may seem somewhat simplistic, it is not. Each employee should have an "Owner" attitude-- insuring that they run the business just like you, the owner, has taught them to do. Of course, if you have not taught them, then they have no idea of what is acceptable or unacceptable.
   In the case of the FBO Manager, I suggested to him that he visit with the deli owner and explain what happened and how he ultimately resolved his dilemna--- he ended up using a competitor that was not as good as his original deli choice.
   Employee empowerment is the key to great customer satisfaction. The Ritz Carlton hotel chain empowers their employees to expend up to $2,000, no questions asked, to insure total guest satisfaction. It makes no difference if the employee is the chamber maid, the bellman or the cocktail waitress, customer satisfaction is the key to Ritz Carlton.
   Although your business may not be in hospitality, the customer service attitude that your firm embodies will tell alot about how you do business.
   Give your staff the tools and training needed to insure that they are able to fulfill any customer requests, within reason, of course! This is another way in which your business can enhance profitability!

Company Culture Drives Employee Behavior-- Good or Bad!

noreply@blogger.com (Joe Michels) — Sun, 28 Feb 2010 19:21:00 +0000

I was visiting with a business owner the other day. He told me that he had installed some video surveillance equipment in his business to ostensibly improve organizational efficiency. His business is in the medical space, where working with various types of prescription medicine is a daily occurrence.

As we visited, I asked how his new video equipment was working. Interestingly, he told me that the equipment worked well, however, he had already identified some staff procedural errors. The more we talked, I discovered that all-though his business had established, documented procedures for most tasks, it appeared that the employees did not follow the established procedures. When he told me about some processes which appeared to be egregious, I suggested that perhaps he may have to terminate some employees. He told me that if he terminated every employee every time a procedural violation was discovered, he would have no employees and would end up doing all the work himself!
   Now, I fully understand that as humans, we all make mistakes and are prone to errors. However-------, the corporate climate determines if we continue to make errors or we follow procedures documented in the process and procedures manual.
   I asked if he had documented processes and procedures. He told me that he did-- and the staff were responsible for reviewing those procedures on a periodic basis. I suggested that he may wish to increase the frequency of the review process, until such time that staff were both intimately familiar with the processes and minimal, if any errors were detected.
   I am a big fan of checklists. The Air Force ran by checklists. Now, some may say that nobody can think and thus, a checklist is needed. A recent article in Business Week provided another spin. The recent Business Week article talked about the B-17 Bomber and all of the initial problems that airplane encountered when it was new. What was discovered was that the B-17 was so complicated for pilots, they could not remember all of the steps required in order to land the plane. Thus, several crashed early in the program. Not only were human life lost, the investment in aircraft was also significant. However, after the development of take off and landing checklists, the accident incident rate was reduced to almost zero and the B-17 continued on to a storied history.
    The same is true of your business. You should have a documented process and checklist for each and every process in your business or organization. There should be a process for opening the business, turning on the lights, taking out the trash, setting up the displays-- EVERYTHING and EVERY PROCESS needs to have a documented process and procedure.
    Your next question is WHY? The real reason is standardization. If all of your processes and procedures are standardized, there is no question about what is expected, how a task is to be accomplished and what the end result should be. Process standardization and checklists also increase productivity and decrease training times for new employees. For a small business, the key to process documentation, standardization and checklist compliance is consistency. For many small businesses, the owner does everything. If the owner is hit by the train on his way to work, nobody knows how to do anything.
    Think about your business. Do you have established processes and procedures? Do you have process checklists for each and every task? Do you require your staff to follow the checklist each and every time? Do you explain during weekly or bi-weekly staff meetings the importance of following processes and procedures? If the answer is NO to any of these questions, you have the opportunity to increase your efficiency, work to achieve greater profitability and provide standardization of service.
    My health care business owner decided to go back and review his process and procedures with his staff again, after we had our visit. Remember, the reason you are in business is for GREEN DOLLAR BILLS! Make sure that you have procedures in place to maximize your acquisition of those bills!

Dollars walking out the door? Do you see them leaving?

noreply@blogger.com (Joe Michels) — Wed, 24 Feb 2010 17:33:00 +0000

Last week I was away at a client engagement. I stayed at a motel that had a coffee shop/restaurant/bar co-located with it. On the first morning of the engagement, the waitress offered me a second glass of orange juice. I said, "Sure, I would love to have another glass of OJ!" When the bill came, amazingly, the second glass of orange juice was not charged.
That evening, I stepped into the bar to see who was around! I met a former student who was in town for business. We sat and had an adult beverage, and he elected to eat dinner. At the end of the evening, he picked up the tab and said, "They did not charge us for the second adult beverages!"
   Now, as a professional consultant, my antennae perk up high. Do we have a problem here? Is the corporate culture one of "giving" away product? Do we have extra product in which to give away? Do we have a staff training issue? Is the staff giving away product in expectation of a greater tip for themselves? These are all questions that a professional consultant is interested in knowing.
    Interestingly, the meeting that I attended for our engagement was also attended by the owner of the motel. I asked her if this is common practice in her business. Well, you probably know the answer-- NO, it was not a common practice in her business, or so she thought!
    Sadly, it appeared to me that giving product (and PROFIT) away is a common practice in her business, she just did not know it. Now, I don't find it uncommon to "give" something away occasionally, especially in the hospitality industry. However, I find this experience probably not a mere coincidence. It appeared to me that to have "FREE" product "GIVEN" away in the same day by two different staff suggests that perhaps the business has a problem.
    Do you know if any of your dollars are walking out the door? More importantly, do you know how many dollars are walking in the door and remaining in the business?
    If you cannot answer definitively or clearly on any of these questions, this is the time to engage a professional operations management consultant to help you and your firm regain profitability. As the owner of the business, you establish the corporate culture in which the business operates. As I have mentioned in many previous posts, you must be actively involved in all facets of your business each and every day. This includes knowing what is going on all the time.
    There are very definitely times when "giving" something away makes great business sense and is the right thing to do. However, those expenses should be carefully and fully documented in the budget and used for marketing and resolving customer challenges.
    Pay real close attention to what is happening in your business. Interestingly, nobody in this motel knew me, who I was, what I did or where I was from. This is all the better. You know, if they are giving "PROFIT" to me, they are giving "PROFIT" to many others as well. This is a matter that is well worth watching, especially if cash flow appears to be tight or profit appears to be less than it should be.
With our turbulent economic conditions, paying attention to where the dollars are going every day is something that you, the owner, needs to pay attention to. If you don't pay attention to the dollars, the dollars will find a way out the door and not into your pocket--where they should be!

Equipment Leasing- A Viable Option in These Turbulent Times

noreply@blogger.com (Joe Michels) — Fri, 12 Feb 2010 22:53:00 +0000

In today's turbulent economic conditions, many business owners find themselves with short cash positions and a continuing reluctance to commit to the new expense of adding or replacing equipment. Even though, this may be exactly the right time to replace equipment do to some great deals, the lack of fiscal resources may preclude a business owner from "making a big jump" and spending large sums of money.
A viable option in today's economic climate is to lease new equipment to allow your business to remain cost competitive and possibly, reduce labor costs and increase organizational efficiency.
A Fair Market Value (FMV) lease is an equipment lease that establishes portion of equipment purchase value as a "residual" payment at the end of the lease term. This residual is typically 10-20% of the purchase value. At the end of the lease term, the lessee has three options:
      A. Return the equipment to the lessor and potentially replace/upgrade with new equipment
      B. Pay the residual amount and receive full ownership title to the equipment
      C. Refinance the residual amount into a monthly payment structure, with ownership transfer at time of payment completion.
   The Internal Revenue Service typically views an operating lease as a "rental" (since the payment structure is not based on full equipment value), 100% of your lease monthly payment can typically be written off as a business expense. Check with accountant, attorney and tax professional for the exact circumstances of your case. We don't provide any tax advice!!
    Depending upon your particular business case, it may be more beneficial to take advantage of depreciation, as opposed to a monthly expense. Equipment leases can be structured as a finance, or capital, lease with a $1.00 residual payment at lease end. These leases are considered to be "financing", so all of the benefits of ownership are available immediately.

OFFICE BALANCE SHEET TREATMENT

     Your FMV lease payment may be treated as an operating expense on your financial statements. This approach does not increase your capital equipment purchases and add to your long term debt.

CASH FLOW

     Leasing provides the flexibility to adjust the residual amount and the length of the lease term, allowing for payment structures that make sense to your business cash flow. Some new equipment may allow for business expansion, technology upgrading or production capacity increases which may increase cash flow. With affordable payment structures and the ability to write off payments, leases can essentially pay for themselves.

    Leasing makes sense in a wide variety of applications as you consider enhancing your overall organizational capability. Like any financial decision, this is one where your accountant and/or tax professional need to be carefully consulted to determine the benefits of leasing to your business. However, in these turbulent economic times, leasing may be exactly the way to acquire new equipment that can increase and enhance your business operations. Now is the time to consider these ideas so that when the economic conditions return to normal, which they naturally will, you will be ready to achieve even greater sales and operational productivity.

When the phone rings, ANSWER IT!

noreply@blogger.com (Joe Michels) — Wed, 10 Feb 2010 00:39:00 +0000

In our previous blog, we addressed how to get the phone to ring-- get out and pound on doors and make something happen. Today, I want to address the complimentary challenge, the phone rings and nothing happens.
I was at Rotary the other day and a member was complaining that he had called a business, wanted some help, and had yet to be called back. One of the other members at our table opined that the firm was real busy, had recently expanded and was looking for a larger office space. This member is a realtor who is helping the firm find new office space.
   As we discussed this challenge, we all concluded that it is hard enough to get a prospective client to call so that a sale can be made, but it is even more challenging when you are ready to buy, try and call the perspective seller and never get a return call back to address your question and customer needs.
   Now, the first question that must be asked is,"Did the phone ring?" Well, the customer left a message on some voice recorder, he dialed what was the advertised phone number in the advertisement, received a voice recording announcing the name of the firm that he called and told to leave a message. I guess we could say that he called the right business. The real question is why he did not receive a return phone call back. Now, about 5 days have transpired since the customer made the initial vendor contact, which is probably about 4 days longer than any customer should have to wait for a return call.
    The idea that the firm was expanding is of significance. Was the firm expanding at such a rapid rate that they did not have time to return phone inquiries? Who is responsible for checking the voice mail and either directing the call to the correct staff member, or making the initial call to ascertain what the perspective client needed? Perhaps the phones had been disconnected for some internal moving to address the expansion plans.
    The key point here is that it is hard enough to get the phone to ring anyway. However, if the phone did ring and nobody answered, or a customer left a voice mail and did not receive any response back, that indicates, at least to my fellow Rotary member, that the vendor was not interested in his business. Indeed, that he is what he thought and asked us at the table to make some recommendations/suggestions on other vendors who could fulfill his need.
    Who answers your phone calls? Who checks your voice mails? How frequently do you have your voice mails checked? Do you "test" the system periodically to see if indeed the identified procedures and protocols that you have established are followed? If you don't have any procedures or protocols that address telephone answering, perhaps, this might be a good time to develop some!
    In today's challenging and turbulent economic conditions, it is hard enough to get the phone to ring at all. However, it is even more frustrating to have someone call you wanting to buy the product or service that you offer and never receive a return phone call explaining how you can help with the customer's challenge.
    There is no reason NOT to return the phone call. Even if you do not provide the product, service or need identified by the customer, you have a chance to talk to someone who thought that your firm was the correct one to provide that product or service. You have the opportunity to explain your business and suggest/recommend another firm who may be able to address the customer need.
     I have returned phone calls to perspective customers and explained that our firm did not perform the service that they were seeking. However, in our phone call, I was able to explain what services we do provide and how those services could address other challenges that the customer had. Interestingly, in most cases, I was at least able to explain more about our services, even if we did not receive an engagement at that particular time. Make sure that the phone is answered all the time. If you use voice mail, make sure that voice mail is checked several times each day and return calls are made immediately. Don't force a perspective customer to go to your competitor just because you did not pay attention to detail. Remember, Attention to Detail is the key to success in business.

The Phone is not Ringing-- What is the problem?

noreply@blogger.com (Joe Michels) — Mon, 08 Feb 2010 17:23:00 +0000

I was with a client last week and both he and his partner said that the company phone was not ringing. I had them give me their office number, and with my Blackberry, I dialed the number while sitting in their office. Guess what, the phone rang just fine. In fact, we found out that the phone worked whenever the number was dialed. What the client and his partner figured out was that the phone was not broken, however, their marketing and public awareness needed some additional attention.
    My next question is how do they let potential clients know that they are in business? Sheepishly, they said that they did not. They just expected the phone to ring because they did good work!
    Now, there is nothing wrong with that logic, however, as both the client and his partner observed, it did not work. If you want people to find you, you have to tell them where you are, what you do and how they can contact you.
    The current economic malaise that we are in has caused many business owners to question the value of increased expenditures for advertising and marketing. This is probably the time when a business owner needs to INCREASE his/her expenditures for marketing. Now, you might argue that this seems counter intutitive--i.e., makes no sense to spend money on advertising when in a down economic market when sales are slow.
     The logic for these increased expenditures is as follows: A business needs to continue to advertise/market to let clients know that the business is still in operation in both good and slow economic times. When in slow economic times, it makes good sense to advertise/market so that your clients know what your capabilities are and that you are able to fulfill customer needs.
     Now, the cost for marketing/advertising is expensive. However, there are ways in which you can help reduce some expenses. A business's chamber of commerce membership provides lots of networking opportunities-- After Hours, Rise and Shine Breakfast, Special Seminars are all tools which to meet other business people. Your business paid for the Chamber membership, you need to use it.
     I remember an old friend of mine that was a career chamber executive often say that the Chamber provides many opportunities for the members, however, it is up to the member to avail themselves of the opportunities. Participating in the many committees of the Chamber builds your brand awareness as well as allowing you to meet other business people in your community. This is a good thing!
     If business is somewhat slow, look at participating in some community activities-- the school, Boy/Girl Scouts, Youth sports, Little League baseball, Rotary, Habitat for Humanity are just some examples of community activities that can always use help. The community activity gets the help, and your firm gets the publicity for helping.
     This may sound somewhat simple and the question you may ask is "Why does he say spend money when we don't have much?" Recognizing that resources are tight in any market, and even more so when sales are down, if you wish to continue in business, you must continue to let clients know that your firm is still up and operational.
      The old fashioned way of knocking on doors is hard work and somewhat frustrating-- however, if there is no work in the shop, it is far better to "mine the contacts" and see what might be available instead of waiting for the phone to ring. After all, you can transfer the office phone to the mobile phone, and begin the trek of knocking on doors. Of course, some strategic planning needs to go into which doors to knock! You can just start down the street and begin knocking, you may get a job that you did not anticipate.
       I was in an office building to see an accountant several weeks ago. After I visited with the accountant, I did go "knock on doors" of the other businesses in the building. I knocked on the door of a social services agency, talked with the executive director and told her what I did and how I did it. Interestingly, she did not need operations management consulting, however, she had another task that she did need help with. I told her that our firm could help her with the other task. We agreed upon the requirements of the task and the number of deliverables. When I got back to the office, our team jumped in and instead of 3 deliverables, we designed 6 different deliverables. The bottom line was that the executive director was elated with the work we produced and we were happy to help design some ideas for her agency.
     What are you doing to generate phone calls? Are you knocking on doors? What about social media? Do you have a Facebook or Twitter site? Are you participating in various community events? Are you participating with the Chamber? If not, these are ideas that may help you generate the phone ringing!

Cash Flow Projections-- Do you know where the money is located or when it is coming?

noreply@blogger.com (Joe Michels) — Mon, 01 Feb 2010 17:27:00 +0000

            Yesterday, we discussed capital resources tied up in inventory. We talked about the fact that inventory can consume a large amount of disposable cash, especially if the inventory is not moving or "turning" rapidly. We briefly mentioned obsolescence, spoiling as well as pilfering when addressing inventory issues. We did not talk about storage-- that is coming.
             Today, I want to spend a few minutes on Cash Flow Projections. This is another step in the business operations cycle that many business owners either forget to do, don't know how to do it or don't believe it is important in their business operations.
              Cash flow projections are just that-- projections forward from the time that the analysis is completed showing expected cash flow at a certain point in time, normally at the end of a certain month. Now, there is nothing spooky or complicated in doing these projections, your MS Excel spreadsheet or any other spreadsheet is ideally suited to help you set up these forecasts.
               Develop your spreadsheet with all of your sales and income forecasts for each month for the next year. This should be divided by month on top, with different sales categories along the side of the spreadsheet. Now, do the same thing for all of your expenses-- identify all expenses on the side of the spreadsheet, by month. When this is completed, now subtract the expenses from the sales/income line, giving you a measure of operating income. If you now subtract the taxes from the operating income, you should have net business operating income.
                 The net business operating income shows you what your bottom line financial position is each month. Now, here is where you can do sensitivity analysis with the spreadsheet to see what input variables, i.e, either increased sales and income or reduced expenses, are needed to increase the overall bottom line. This is an important task that many business owners do not do-- and then become surprised when they find themselves with a lack of operating capital during a down month. Going through this exercise gives you a good idea of what your cash position should be for any month forward.
                  Cash flow projections help you identify if you expect to have a down month, or conversely, know that a major sale or sales will be coming in that will substantially boost your revenues. If you have expenses that are billed quarterly, i.e, taxes, insurance payments, dues, etc, you can see the impact of the change. If you expect to have either a down month or a "bonus" month, you are then able to adjust your cash expenditures to be in alignment with expected income and outflow.
                   Cash flow projections are key to any business, especially in the turbulent times that we are currently experiencing. Careful planning today will result in less stress tomorrow!

Need working capital? Look at the inventory!

noreply@blogger.com (Joe Michels) — Mon, 01 Feb 2010 00:09:00 +0000

         One of the challenges that many businesses have at this time of year, February/March, is the lack of cash flow. No matter how good or bad the sales were last year, many businesses seem to short of cash in February and March.
         Last week, we worked with a client who was in this exact situation. The firm had a successful year in 2008, however, did not break even in 2009. Alas, the client needed some help and engaged our firm to ascertain what might not be working.
         As we reviewed the firm's financial data, it became very apparent that a substantial amount of money was tied up in inventory. Now, this is NOT a bad thing, if the inventory is moving in and out at a rapid rate. However, it is a bad thing if the inventory is sitting on the shelves and not moving. Alas, that was the case with this client. The firm had purchased excess inventory "expecting" to rapidly sell it as the year progressed. However, the economic conditions turned in such a way that the inventory did not sell, became stale and consumed much needed and precious working capital.
          One of our first questions to the client was why the excessive inventory? The answer-- "I know we'll need it and we'll be able to sell it once a demand is placed. After all, that is good customer service!"
           As we analyzed that response, our next question was what, if any, data was available to substantiate that decision. Sadly, no hard data was available, just a "gut level" intuition that the inventory would be needed.
           This client is in an industry where once the inventory has been purchased, it is not returnable to the vendor for any reason. Thus, the firm had inventory that may or may not be sellable.
            The further we explored the financial data, we conducted a physical count of all inventory to verify the data that was contained in the accounting system. Here, we found a couple of errors which reduced the value of the inventory by approximately $15,000. Now, finding that error caused us concern on what other data errors may be in the accounting system. We'll leave that question for another time-- just focusing on inventory today.
            Inventory is one area where business owners have to pay real close attention to dollars. If you forget to watch the inventory account, you may end up with excessive inventory which may or may not be able to be sold. Inventory which is perishable, i.e, chemicals, paint, film, solvents must be carefully monitored. Inventory which is pilferable is another big concern. Everybody likes a "free" steak from the restaurant when the shift is over. Food costs in the restaurant can make the difference between profit and loss.
            We explored the "supply chain" system. In our client's particular case, the lead time for an inventory item is about 4 weeks. As we dug deeper, we determined that the industry that the client is in accepts 4-6 week lead times for inventory parts. Thus, there was no reason to put working capital in inventory "Just in Case!"
             What about your business? Do you have tight control on all of your inventory? Do you monitor your sales each nite to be sure that the inventory is properly decremented? When was the last time that a physical inventory was conducted? Do you reconcile your accounting system with your physical inventory, making any adjustments necessary? These are all questions that a consultant will explore when addressing inventory issues.
              With technology changing so rapidly, if you fail to pay attention to inventory, you will have excessive capital invested in a commodity that has no value. Much inventory is very perishable today. Most supply chains are able to deliver new products to your store in 48-96 hours, negating the need for excessive amounts of product inventory.
               If cash flow is a problem in your firm, investigate inventory quantities and vendor return policies. Although you may have to pay a restocking charge, it may be worth it if you are able to gain some additional liquidity.

Hey Sweetheart, It ain't about you, its all about the client!

noreply@blogger.com (Joe Michels) — Wed, 27 Jan 2010 18:47:00 +0000

I talked with a business owner the other day who was excited and happy! In fact, she was really walking on Cloud 9! I asked her why she was so happy. She told me that her small firm had just received a multi million dollar contract and in the process, beat out several other firms much large in size and stature than her firm.

Curiosity being what it is, I could not help but want to know more. So I asked! Here is what she told me. Her firm competed with over 50 other firms, some of regional and national significance on this particular project. After the client evaluation team ranked all of the various competing firm proposals, her firm, along with two other firms reached the final review stage. The other two firms were of much greater size and stature than her firm-- HOWEVER, the key factor which allowed her firm to win the contract was that they LISTENED TO THE NEEDS AND DESIRES OF THE CLIENT!

The business owner told me that one firm presented a "canned" solution to the problem, while the other competing firm proposed something that the client had no interest in. Her small firm carefully listened to what the client said they needed and wanted. Her small firm then took those ideas and proposed a solution that exactly fulfilled the needs, desires and expectations of the client. The end result-- a multi-million contract which provides much needed work for several months.

Now, the real question becomes, do you really listen to the client or do you think that you know more than the client and have a pre determined solution in mind before the client is finished describing what he/she needs or wants?

Remember, in grade 2, the teacher always talked about listening. There is a difference between listening and hearing. When you listen, you detect the various nuances and inflections that the speaker provides when he/she is talking. When you hear, you know that someone is speaking, but normally do not ascertain the real specifics of the conversation.

When a client asks for a specific product, service or need, do you really LISTEN to what is being requested?

Do you use probing, open ended questions to gather more information about the needs of the client?

Do you try to accurately help the client refine his/her needs and desires before proposing a product or solution to the client need?

If you answered no to any of the above questions, you are probably not maximizing your ability to completely fulfill the specific needs of the client. Remember, the client is the one paying the bill. Giving he/she what they want, and helping clarify their needs and expectations in the process will normally result in a happy client as well as a happy vendor.

Listening to the needs of the client is paramount in increasing overall business viability. Don't forget to carefully listen to what the client wants. When you listen, you substantially increase your ability to gain business than may have gone to a competitor!

I need some help-- will you help me?

noreply@blogger.com (Joe Michels) — Sun, 17 Jan 2010 02:00:00 +0000

One of the most important duties of a supervisor or boss is to provide mentoring to those individuals who either ask for it or who you recognize will benefit from it.

There are many ways in which mentoring or coaching can be accomplished. In business today, the most common form is to show junior employees "the ropes"! This may be something as simple as how to make a call, what to say, when to say it, etc. It may be as sophisticated and complicated as having a junior employee show you how to use some of the new features of the computer.

Let's talk about both types of mentoring-- direct mentoring and reverse mentoring. Both are very common in the business world today-- and both types provide a tremendous amount of benefit for each individual-- both the mentor and mentee.

As a previous Business College Dean, I have helped lots of students get ready to go to work, and once in the work world, answer questions that they were uncomfortable asking anyone else. If you mentor someone in/out of your organization, you have a duty/obligation to him/her to be able to provide the best insight and advice that you are able to provide. This may be as simple as how to network at a Chamber of Commerce function, how to attend a fancy client dinner or it may be as sophisticated as helping the mentee not only gain the confidence but the skill and ability to be able to supervise or take on additional responsibility.

With any human relationship, there is more than one way in which to accomplish the task! Some folks require a calm, easy approach, with lots of explanation and time required. Others are able to be told what/how to do something and are able to do it. The key here is that, in many cases, you may not be the direct supervisor of the individual who is asking for the assistance. If this is the case, you need to help the mentee without degrading or making comments about the mentee's direct supervisor. In essence, you are the individual who is showing the mentee how to be successful in the world of work. A key point here is that there is always more than one way in which to accomplish a task or complete a project. Although the mentee may not agree with what he/she has been asked to do, it is important to be able to learn different points of view! This will come in very valuable when the mentee becomes a mentor!

One of my most recent mentees had graduated from a fine, very prestigious university and has struggled for the past 7 months trying to find his first job! I had met this individual at a university/industry networking opportunity which I attended with a client. The mentee was impressive, however, discouraged about his lack of success in finding a job. I decided that I wanted to help this young man. In the past 4 months, we have had several conversations, I have written and re-written several resume drafts as well as shared about how the interview process works. The bottom line is that after almost 8 months of searching for a job, he had success. Now, I am not saying that I want/need any credit for his success, however, I was very happy for him that he has found a good job in this dynamic economic environment. When somebody asked me what I got for Christmas, this is what I told them-- and I meant it!!

The key here is to help those that are either just learning, or need some additional insight from those that have more experience, wiser judgement and have encountered a few "knocks" along the way. After all, is that not what we are here to-- help our fellow man?

The converse is also true. Reverse mentoring allows newer, more junior employees to show/tell more experienced employees how the computer/social media/texting/cell phone world works!!

Interestingly, I had someone ask me the other day if I texted, or knew how to text!! I laughed at the question! Yes, I am very comfortable using all the latest forms of technology, however, I never hesitate to ask one of our younger associates if I either don't understand something, read something that does not make sense or want to see how to do something that I seem to not figure out with the computer or cell phone!

With many more experienced individuals, they are afraid or embarrassed to ask for help from younger colleagues. I am not! My logic is that we all cannot know everything all of the time-- there is nothing wrong or you don't need to feel embarassed to ask for help/assistance/understanding on something that you may not have detailed familiarity.

Mentoring is one of the most rewarding parts of the leadership challenge-- irrespective of whether you are in business, the non-profit sector or government. Being able to see other folks learn and understand something that they did not know previously is very exciting.

How do you do it? Are you open, willing and enthusiastic to help other colleagues learn, understand and relate to matters that they need help on? If not, you should be. These individuals are team members as well and your assistance will be invaluable in insuring that they make a greater contribution to the overall team effort.

Don't be afraid to seek the guidance and assistance of younger colleagues. In most cases, younger colleagues will be excited to show you how to do something that you may not have done before, especially in the computer domain as well as social networking.

Eliminate Personnel Turnover--Here is How!!

noreply@blogger.com (Joe Michels) — Wed, 13 Jan 2010 00:42:00 +0000

One of the most vexing problems that many business owners face is personnel turnover! Some businesses that we have worked with have had personnel turnover exceeding 300% in a year. That means, that they have had 3 different people for each job, just in a short 12 month timeframe!!!

Wow, you say, what is the problem at that company? What are they doing that causes so many people to leave so rapidly? Must be a horrible manager?

This is a question that we are frequently asked. The answer is actually quite simple, somewhat intuitive, however, sometimes difficult to comprehend.

The first question we ask as we work with the business owner is, "Do you have job descriptions for each employee?" Normally, the answer is NO-- we don't need a job/position description for our line of work.

A job/position description is key to any position for any employee that you have. This job description should outline the duties and responsibilities of the job, any health or safety hazards that the incumbent may be exposed to, travel responsibilities, supervisory responsibilities, who the supervisor is. These are basic job description requirements, additional requirements can be addressed if germane to the position.

The company should have a complete and comprehensive procedures manual documenting all of the various processes and procedures that the firm uses. This is complicated and somewhat tedious, however, once completed, you will say prayers many times over for identifying each and every process that your firm uses.

Salary is another key point. The old adage, "You get what you pay for" is no more important than in the personnel arena. It is true that you can find individuals to work for a certain pay level. It is also true that you will find "higher grade" candidates if you elect to pay more than just the basic industry minimum.

I am aware of a firm that is in the food processing industry. The firm has several employees, all of whom have only a high school education. However, the firm has a turnover ratio approaching 0%-- meaning, once somebody gets hired, they don't leave!! They like the firm and the boss. Here is what is interesting-- they starting salary is about twice minimum wage, with the maximum salary about three times minimum wage. Yes, they have a full benefit package, health, retirement, vacation, 401K, etc. The firm has a very comprehensive position description for each employee. Everybody knows what is expected of them. The procedures manual is equally complete and comprehensive. The owner is a firm believer in education and training, insuring that her staff is constantly trained on all of the new processes and procedures of the industry.

Does paying a greater salary, having clear and comprehensive job descriptions as well as a complete policy manual actually cost more money? The real answer is NO, it is actually cheaper, in the long run, than to not develop anything. YES, there is an initial cost involved with developing the job descriptions and procedures manual, however, that cost is rapidly returned several times over when employee turnover is reduced to almost zero.

Does your firm experience substantial employee turnover?
Does it seem like there is continual employee discontent and frustration?
Do your employees know what is expected of them each and every day?
Do you fairly and adequately compensate your employees for their contribution to your firm?
Are your employees happy to work for you?

If the answer to these questions is NO, then perhaps, you should seriously consider making some key "field adjustments" in your personnel operating policies. As a business owner, you may experience some short term pain and frustration, however, the long term return on investment is significant--- and you will reduce your employee turnover rate.

If you need help on this matter, let us know, we can give you the assistance you need to increase your profitability and efficiency and reduce personnel turnover!

Is There Anything Else?

noreply@blogger.com (Joe Michels) — Thu, 07 Jan 2010 22:35:00 +0000

In the business that I am in, I dine out with lots of people. Sometimes it is breakfast, lunch, coffee or dinner, however, eating away from home is something that I do!

I find it absolutely interesting when you go out and eat and the normally server asks, "Is there anything else?"

My standard comment is, "What do you recommend?"

Most of the time, the response is "Nothing".

I find this response amazing! It is amazing for a number of factors-- this is the one chance to upsell the menu, ask for a greater order and increase the average sale--- allowing the server to make a bigger tip! Most folks, by human nature are willing to take the suggestion of others! I am!

My point here is that anticipating the "silent" needs of the client are something that a business owner always has to be alert to. If you don't ask, you will never know if there are unmet needs that the client wants, desires, expects or needs. There are always additional needs that the customer has that he/she may not voice or identify. A good salesperson should always be willing to ferret those needs out so that the customer needs are indeed fulfilled.

In the restaurant example, I will normally take a glass of orange juice if asked if I want one. I may elect to order a glass separately when placing the order, but I normally will accept one, if offered. This is just a trivial example, however, it clearly illustrates the principle that I am addressing.

I always have an additional suggestion for my clients when we are discussing an engagement. Even though I may have understood what the client desired, requested or signed up for, I always suggest some other factor that the client may not have considered or may increase the value of the engagement that he/she has already agreed upon.

This additional suggestion does not need to be done in a pushy or continual manner. If you ask twice and each time the client does not accept the offer, then you can normally assume that you fulfilled all of the client needs with the products that he/she has ordered.

A prime example of this that has gone totally overboard is at the "Quickie Lube" automobile oil change places. Here, your original intent was to go and have the oil changed in your vehicle, however, you are normally pushed to change the air in the tires, flush the rear end, radiator and transmission systems, replace all of the belts, hoses and filters as well as have the car washed and the inside of the car treated to a "spa" treatment!! Interestingly, the technician goes through this same pitch every time that you come in for service, irrespective if you did agree to have all or part of this done during your last visit!

There is nothing wrong with encouraging your staff to find those "silent"needs of the customer and ask if the customer wants those needs addressed. If the customer say NO, well, you tried and did not succeed. If the customer says YES, you have helped the customer with a challenge that he/she may not know that they had as well as provide an additional sale.

Encourage your sales staff to always try and identify the "silent" needs of the customer. Interestingly, each customer has "silent" needs that are wanting to be discovered, but the customer does not realize or recognize that those needs require attention. At the end of the day, your customer will thank you for helping solve a potential problem that he/she may not have realized existed!

I only have the $15 certificate! Will that work?

noreply@blogger.com (Joe Michels) — Sun, 03 Jan 2010 23:26:00 +0000

I had dinner the other day in a small family owned diner. The food was good, there were lots of people eating and the holidays were coming upon us.

I sat at the counter-- just seemed like the right thing to do! As I was waiting for my sandwich, an elderly lady came in and wanted to buy a $25 gift certificate from the diner to give a friend from church for Christmas. She told the waiter, a young man about 19, what she wanted. He said that he would go get it. As I was at the counter, I could watch this whole process unfold!

He came back several minutes later and informed the lady that they were out of $25 gift certificates, all they had were either $15 or $50 certificates available. Would she like either of those? The lady pondered a while, and decided, out loud, that she could pay another $5 and get 2 of the $15 certificates--- that would be close to the $25 certificate that she originally intended to get. She went ahead and told the waiter that she would take the 2 $15 certificates.

Now, as I was eating my sandwich, I got to thinking about this whole scenario. The lady had many choices from which to get her friend a gift certificate. Most every restaurant in town will offer gift certificates to you. She chose this specific one because the food was good. However, if she did not have the other $5 to make up the balance, the diner could have lost a $25 sale.

I don't know if a manager or owner was on the premises. However, I think that another way to have handled the matter would have been to give the lady the 2 $15 gift certificates for the $25 that she originally wanted to spend. I would have told her that we were out of the $25 gift certificate, however, I would be happy to give her 2 $15 certificates to make up for the hassle.

Here is what I think would have happened:
A. The Lady would have been surprised by the offer of generosity of the waiter.
B. She would have told all of her friends about what a wonderful waiter the young man was and what he did to solve a problem. She probably would encourage others to go and eat at this diner.
C. The "word of mouth" advertising that was probably given was well worth more than the extra $5 of the gift certificate.

Studies have shown that gift certificates are redeemed between 60-82% of the time, depending upon the study. Let's look at the most optimistic redemption rate, 82%.

Assuming that 82% of all of your gift certificates are redeemed, that still leaves an 18% non redemption rate (read REAL PROFIT)--because people paid for the certificate, but did not use it. This is profit in your pocket!!

Most folks will always use the maximum amount of the gift certificate. A friend gave me a gift certificate the other day for Amazon. Although I did not really want anything-- I found some things that I could use-- however, at the end of the transaction, I used the entire gift certificate and then some-- wanted to get full value for the gift certificate. I think that we are all like that!!!! The bottom line is that I spent more money than the gift certificate was for and the store made more profit!

How do you handle gift certificates in your business? Do you have "hard and fast" policies, or like employees at the Ritz Carlton hotel, are your employees empowered to "do what is right" to satisfy the customer?

Ritz Carlton hotel employees are all authorized to solve any problem up to $2000 limit with "no questions asked". If a greater adjustment is needed, management approval is required. Interestingly, it is very rare that any problem ever reaches the $2000 limit.

I suggest that you not have such hard and fast policies that your employees are not empowered with great flexibility to adjust to customer needs. A little flexibility goes a long way into increasing sales, returning happy customers and greater profitability.

During your next staff meeting, I suggest that you review your gift certificate policy, if you have one. If you don't have one, now might be the right time to consider developing one. If you decide that "rules" are needed, put yourself in the place of the customer on the other side of the counter--- if you want to be treated to that rule, I suspect that your customer will accept it as well. However, if you find the rule either onerous or silly, I suspect that your customer will as well.

Don't make the "rules" so tough that your customers don't want to buy a gift certificate from you! Creativity and ingenuity are the factors which will increase your sales through gift certificates!

It Cost Too Much!! I bought it at the Box Store!

noreply@blogger.com (Joe Michels) — Thu, 31 Dec 2009 23:02:00 +0000

When I was at my brother's for Christmas, my nephew told me that he had purchased his finacee's engagement ring from a small, independent jeweler located in the college town the university from which they both graduated was located.

My nephew told me that he got a "good deal" on the engagement ring, because "He had a friend who worked in the store and knew diamonds". I complemented him on his astute purchasing skills, using a friend working in an independent business. However, the next statement he gave me cause for concern. When I asked where they bought the groom's ring, he said, "At the Big Box Store-- it was cheaper than the wholesale price my buddy could get it for at the independent jeweler".

Now, I wondered, how could this happen? How did the small, independent jeweler lose a sale because "it was cheaper at the Big Box Store?"

One cannot fault, and I certainly do not fault the young man for wanting to stretch his meager resources as far as they will go. We all want to do this. After all, he is going to be a newly wed with big college debts to pay. However, how could an independent business owner allow a sale to slip to the Big Box Store?

My brain went into afterburner--- had the small independent jeweler not explained why his prices were higher? What about the quality of the product at the Big Box Store? Who is going to be there when there is a problem with the groom's ring? Is the Big Box Store going to have a repair department if there is a problem or sizing issue? Now, one could argue that not much can go wrong with a groom's ring, especially if there are no diamonds in the ring!

This is a case of where the value of the independent jeweler, or for that matter, any independent small business, lost a sale because they failed to explain the VALUE that the small business provides to the customer. Value is measured in many different forms-- price being only one form. However, quality of product, integrity of the vendor, name brand merchandise, customer service and reputation of the independent business are all other factors to consider as well when purchasing any product in which an independent business owner competes with a Big Box Store.

My good friend, Chris Montague of Montague's Jewelers (www.montaguesjewelers.com) told me, "Service, value and quality, above all else, are where locally-owned businesses shine. They have the knowledge, passion, community commitment and expertise that the national chains, on-line sellers and 'Big Box' Stores simply can't match. In this specific example, during a ring's life folks will always do better going to a locally owned professional. Another critically important point to remember, for every $100 spent at a national chain only $42 stays in the local economy. The numbers for on-line sellers are much worse. Contrast that with a locally owned business, and $72 out of every $100 spent stays local. This along with many other factors is an important distinction, and one we need to explain better to our clients."

Make sure that your customer knows the VALUE that your business provides each and every day to their clients. Remember, value comes in many forms--price is only one. Price is important, however, service, quality and selection are also important. A good product that lasts a long time, is well built and provides many years of service is better than a cheaper, poorly made product that will wear out faster and ultimately cost more than a good product in the beginning.

Insure that all of your employees know the VALUE of all your products! This is a point that cannot be over emphasized each day and each week in staff meeting. Make sure that employees understand why your product is better, albeit more expensive, than the box store. This is a sales objection that is easy to overcome with facts-- make sure that your employees have all of the facts.

Customers that recognize the VALUE of the product or service that you provide will continue to return to shop with you! Make sure that you emphasize the value your business provides!!!

I Forgot!

noreply@blogger.com (Joe Michels) — Tue, 29 Dec 2009 21:34:00 +0000

I stayed at a nice Resort the other nite on my way to visit my brother and his family for Christmas! This resort is a nationally known facility, with a high class reputation for food, service and ambiance.

A fire was burning in the fireplace, I sat down and ordered a liquid beverage. 20 minutes later, the waitress came over and said, "I forgot what you wanted. What did you order?"

I told her what I ordered and began to wait another 20 minutes before she came back and served the beverage. Now, I had a parched throat, was tired and thirsty-- needless to say, I was ready for another beverage shortly after the first one arrived!

Well, you guessed it-- another 20 minutes lapsed before she came around again and asked if I wanted another beverage! Interestingly, there was a couple sitting on the side of the fireplace who just started to laugh about this little snag! I asked what was so funny, interested in knowing what they knew that I did not.

They said that they have had the same experience every time they stay at this resort, always a different waitress, however, always the same result-- a long wait and no chance to order any food. They cracked the code-- they bring their own beverages from their room and don't worry about the waitress.

I got to thinking---um, what is the problem here? Well, I think it is obvious---- management was not watching the floor and seeing what was happening! My new friends and I did discuss that perhaps the resort had a staff training issue-- perhaps, the waitress was not trained properly, perhaps she had more tables to be responsible for than she could handle (staffing issue).

The one thing that was clear was that sales were being lost because I was never asked about food or anything else. The other guests were not asked if they wanted something to eat or drink either. More money lost for the resort.

Remember, sales are what make the cash register ring! At the end of the day-- it is all about the cash register ringing!

Take a look at your business.

How much money are you loosing every day by not paying attention to your customers?
Do you watch your staff make the sale?
Does the staff have the training and tools necessary to be most productive employee?
Has the employee been trained "your way"? Your procedures may be different than what the employee did before. Make sure that the employee understands and knows how you want things accomplished.
Do you encourage your staff to fully address all of the customer needs? If I am thirsty, I am probably hungry as well?
Are all staff members encouraged to continually ask members if their needs are being addressed by a staff member?

Customer service is the key to more sales-- don't let a staff member "Forget" to fulfill a customer request. The customer may walk and never be back!

We want customers to continue to come back and buy more product-- what ever that might be!