............................................"Promise Guide"............................................ --------------- Your Partner In Progress --------------

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Profit = STABILITY

Profit, that wonderous word all our businesses desire even more than sales. If I ask an owner why they are in business, a great majority of the time the answer is to make money. I did not realize we were all in the printing business. Although we all want profit, we cannot get to it until we have consistent recurring revenue/sales to extract the profit from in our businesses. Additionally, we can only extract profit by managing the expense of the business so that rather than profit being what is left over after expenses, we target and identify the value the business profit should be making and then operate our business with the remaining dollars to cover our expenses.  Unfortunately, the accounting world has trained us to believe that profit is the result of revenue – expenses.  I would challenge your business in 2021 to rethink that equation and take profit first from revenues and learn to operate your business leaner and more cost effective.

At JKL Associates and many of our clients, we practice the “Profit First” method of managing our business finances.  There is a book by my colleague Mike Michalowicz of the same name which I will encourage you to get a copy of if this interests you.  We would also be open to giving you our view of how this has successfully crafted a cleaner decision-making financial model for JKL Associates.  If you want a real deep dive into this approach beyond the book, there are certified Profit First Professionals which could assist you with this method/approach.

If your discovery of what to Fix This next identified Profit as your next focal point to work on, then first I need to congratulate you on placing the sales level into a good cash position. This provides the air your business breathes and now our body (business) needs to use that air most effectively.  Again, through a series of questions you need to peek further into your Profit dynamics in your specific business. Let us start with debt.  1) Are you consistently and strategically reducing debt or are you accumulating it?  In small businesses I see an evil trend of credit card use to start up and carry a business.  The venture from the start might very well have been under capitalized and credit cards are floating the business.  This debt is not only expensive on interest rates, but it accumulates little by little until you have a whopping number and have maxed out the limits. The credit card companies are masters at selling owners on the perks of their cards.  Miles, trips, bonus etc. all are pennies on the dollar for the credit card company, but it is baked into the interest rate of 7% to 21% your cards accumulate each and every month. You need a plan to address this if this is part of your profit erosion. 2) Are your products and services priced with proper margin to contribute properly to your organizations expenses to allow for profit to exist? This is a bit deep to try and give a simple answer as each business has its own set of complexities etc. If you have never evaluated your deliverables from a margin perspective, now is the time.  You might very well discover that some of your products which you thought were great contributors to your profit are actually losing or stealing you blind. 3) Once you have a good understanding of where your debt is, and your margins are appropriately set to your product/services then you need to look at relationship frequency – how are transactions contributing to profit.  Part of that is sales – creation of cash, part of it is gathering the cash in (receivables) and part of it is tied to you delivering on your “Promise” so that recurrence of cash continues so that stability can be realized.  At the end of the day, profit gives your business stability to operate into the future.

This week take some time to evaluate profit from the perspective of having the business work for you rather than you only getting the left over from the business after expenses.

Need a third party set of eyes to cause you to look differently at your profit? Give JKL Associates a call at (313) 527-7945 in Michigan or (407) 984-7246 in Florida or go onto our calendar below and schedule an initial meeting which works best on your busy schedule. JKL Associates looks forward to continuing to build relationships rooted in “Purpose.”

QUESTIONS OR COMMENTS – EMAIL US AT PARTNERS@JKLASSOCIATES.COM OR CALL OUR OFFICES – MI AT (313) 527-7945 FL AT (407) 984-7246
Celebrating 30 years of Delivering on “Promises”
OUR PURPOSE – TO BUILD RELATIONSHIPS ROOTED IN “PURPOSE” SO AUTHENTIC CONTRIBUTIONS DELIVER “PROMISES”
A LIFE WHERE A “PROMISE” MEANS SOMETHING!
BECOME A FAN ON FACEBOOK ? WWW.FACEBOOK.COM/JKLASSOCIATES
LINK UP ON LINKEDIN ? WWW.LINKEDIN.COM/IN/JKLASSOCIATES
FOLLOW US ON TWITTER ? WWW.TWITTER.COM/@JKLASSOCIATES

 COPYRIGHT – JKL ASSOCIATES 2021

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Sales = AIR

Today we jump right into the base or first level of the BHN – Business Hierarchy of Needs.  As with the Maslow hierarchy, there are certain almost inevitable laws which govern states of existence. As human creatures there are some extremely basic things, we need in order to live.  One of them is the air we breathe.  In business there are also extremely basic things a business needs to exist. Sales are the air a business breathes.  Like us humans when the air and oxygen stop then we stop existing. The same is true for a business when sales stop.

In 2020, depending on which business or industry you are in you experience either a lessening of air or sales or you had a strange abundance of sales.  For example, in the hospitality industry events, expos, conferences went away and thus sales dried up.  Those organizations who were in the supply chain for PPE (Personal Protective Equipment) if they could figure out a way to gain access to it were working extra hours and the revenue in that sector of their business expanded exponentially.

The outcome in 2020 influenced revenues more dramatically than typical years. Larger swings in one direction or another.  The economy swung in many directions and various level of uncertainty caused many businesses to defer on purchases or other investment type decisions.  As the available air (sales) became less, the number of people consuming the air (expense) had to be reduced and thus many employees were furloughed, terminated etc.  Various support programs from unemployment, stimulus checks, Payroll Protection etc. were supplemental oxygen to businesses.

As we start into 2021, it is now time to move forward. If when you completed the “Fix This Next” discovery questionnaire https://jklassociates.fixthisnext.com/ your primary focus point was sales, then this is directly where you need to focus and fix this next. You cannot be bothered with other things like profit or operations etc.  If you do not have sales, you do not have a business.  We might desire other aspects of the hierarchy such as the ability to provide an impact on our community like more jobs etc. If the sales do not provide the basic air for the business, then you are just a great wisher and not leading the business.

I would like to provide you a foolproof way of generating sales in each of your businesses. Fixing your sales needs is not a cookie cutter thing.  Each of your businesses provide various products or services to various consumers or other businesses and industries.  Each of these have unique demands and sales cycles.  I can ask a few questions for you to narrow in and pinpoint some things you need to get your focus on sales. 1) who is your target market?  Get real detail on who is best suited to be your client/customer.  Do not settle for anything because in the longer run it will cost you to either support them or get out of the relationship. 2) Once you know your target, focus your campaigns there.  Be laser focused on who you are going after.  3) As part of our sales efforts, you MUST track what is working and why.  If you do not have a sales management system of some sort you are again guessing.  If you invest into social media to stimulate interest, then have a plan of expectations so you can evaluate your investment to return on your expectations.  It is not just about getting connections or friends.  It is about converting contact points into relationships which generate sales. 4) Once you have established a conversion from prospect to client then make sure both parties are living up to the mutual commitments of the relationship.  You are delivering on your “Promise” of goods and/or services and they provide timely payment for the goods and services. 5) Honoring commitments is part of the relationship. People do business with other people in person, via telephone or even the internet.  Somewhere in the chain of events people touch the relationship.  During each of these points of contact everyone needs to honor the commitments made whether explicit or implicit.

This week if your Fix This Next focal point is sales then you need to start getting onto executing strategies and plans to put more air in your sails.  Without air your boat does not move forward.  You idle and drift along without direction or purpose.

Need some energy behind your sales deployment efforts? Give JKL Associates a call at (313) 527-7945 in Michigan or (407) 984-7246 in Florida or go onto our calendar below and schedule an initial meeting which works best on your busy schedule. JKL Associates looks forward to continuing to build relationships rooted in “Purpose.”

QUESTIONS OR COMMENTS – EMAIL US AT PARTNERS@JKLASSOCIATES.COM OR CALL OUR OFFICES – MI AT (313) 527-7945 FL AT (407) 984-7246
Celebrating 30 years of Delivering on “Promises”
OUR PURPOSE – TO BUILD RELATIONSHIPS ROOTED IN “PURPOSE” SO AUTHENTIC CONTRIBUTIONS DELIVER “PROMISES”
A LIFE WHERE A “PROMISE” MEANS SOMETHING!
BECOME A FAN ON FACEBOOK ? WWW.FACEBOOK.COM/JKLASSOCIATES
LINK UP ON LINKEDIN ? WWW.LINKEDIN.COM/IN/JKLASSOCIATES
FOLLOW US ON TWITTER ? WWW.TWITTER.COM/@JKLASSOCIATES

 COPYRIGHT – JKL ASSOCIATES 2021

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Foundation and Framework of culture

Last week we introduced you to a means to get focused in on what to fix next in your business.  If you missed that article just go to the JKL Associates website under the 3-minute Weekly Insights http://www.jklassociates.com/3-minute-weekly-insights/ section and get caught up on the intro. Hopefully by now you have also taken time, a few minutes, to complete the complimentary discovery questionnaire to narrow in on your Fix This Next item in your business.  If not – stop and visit https://jklassociates.fixthisnext.com/

The Fix This Next tool narrows in on one of 5 areas which need your next fix.  Those areas are – Sales, Profit, Order, Impact and Legacy. We will be getting into a deeper dive on each of these in the coming weeks. Like Maslow’s hierarchy, one level must build upon another level as you grow your business assets. You cannot work on providing great financial support to charities in the “Impact” phase of your business if you first cannot sustain stability by being profitable. Events like 2020 do cause a realignment of the inner working of a business and thus we move up and down the various levels during the course of time.

In addition to the BHN – Business Hierarchy of Needs in the Fix This Next process, the foundation of all of your business efforts MUST have a solid framework. This is where the “Promise Culture” model of Purpose, Core Values, Principles all tie together with the various relationships which exist in your business.  From your employees to your clients and customers, to vendors, stakeholders, and others who without them you struggle to have a business.

Too often businesses are so focused on what they do or deliver they lose sight of who they are and why they even exist.  When there is a loss of purpose and no guidance system to hold the fabric of the organization to a set of standards then it eventually becomes a free for all and the integrity of what you started out to accomplish gets derailed.

The vast amount of change which took place in 2020 caused most people to re-evaluate many things both personally and in business.  People are questioning where they work, what they do, how they do it and many other factors.  Businesses moving from in office staff to hybrid teams or a more completely remote workforce must deal with the impact this has on the organization’s culture. You cannot ignore it and hope it somehow sorts itself out.  It will take its own path if you are not leading. You will have no idea where it will take you.  As the saying goes – if you do not know where you are going then any path will take you there.  I am quite sure that is a poor strategy to take.

This week even before you start to think about what to fix next, you need to get a pulse on your business culture.  How did 2020 impact the way you once did business and how do the changes which you implement on the fly in 2020 going to impact how you will do business moving forward.

Looking for some insights into your business culture?  Give JKL Associates a call at (313) 527-7945 in Michigan or (407) 984-7246 in Florida or go onto our calendar below and schedule an initial meeting which works best on your busy schedule. JKL Associates looks forward to continuing to build relationships rooted in “Purpose.”

QUESTIONS OR COMMENTS – EMAIL US AT PARTNERS@JKLASSOCIATES.COM OR CALL OUR OFFICES – MI AT (313) 527-7945 FL AT (407) 984-7246
Celebrating 30 years of Delivering on “Promises”
OUR PURPOSE – TO BUILD RELATIONSHIPS ROOTED IN “PURPOSE” SO AUTHENTIC CONTRIBUTIONS DELIVER “PROMISES”
A LIFE WHERE A “PROMISE” MEANS SOMETHING!
BECOME A FAN ON FACEBOOK ? WWW.FACEBOOK.COM/JKLASSOCIATES
LINK UP ON LINKEDIN ? WWW.LINKEDIN.COM/IN/JKLASSOCIATES
FOLLOW US ON TWITTER ? WWW.TWITTER.COM/@JKLASSOCIATES

 COPYRIGHT – JKL ASSOCIATES 2021

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On to 2021!

2020 is in the history books. Either a lot can be said about 2020 or nothing at all.  Some of us just want to move on to a new year and new opportunities. Others of us are wondering what happened in 2020 and how do I go about 2021 with so many unknowns.

The good news is that life and business go on.  We make our lives and business based upon our attitudes and what we focus those attitudes upon. 

So, what should your business focus on? This question seems so logical that we sometimes take it for granted.  Each of us wake up in the morning and believe when we go to work, we are in fact working on the next most important thing to improve our business.  Sometimes we are correct and other times we simply tackle the thing we think is most important.  What makes this or that more important?  As I observe business leaders in our clients and other companies, some leaders are better at narrowing in on what is truly the next most important thing to work on in the business.  Unfortunately, there are way too many who think they are focused on the next thing to fix and do make progress on that item only to discover other things should have had their attention first.

As we start into 2021, we are all dealing with a new and different landscape than 12 months ago.  2020 tossed all kinds of curves, dips, dives, mountains, rain, fire, and every other type of chaos at all of us. So many things have changed that we all need a way to identify what we should focus on to “Fix This Next.”

For the next six weeks we are going to explore just such a process to allow you to deep dive into what you need to focus on, define a strategy to resolve it, execute and measure your progress.  Once you get that accomplished then revisit the process and take on the next biggest thing to fix. Repeat as many times as necessary to upscale and grow your business during the evolving change in the marketplace.

So, this week your nudge is to get started. My colleague Mike Michalowicz, author of such great business books like “Profit First,” “Pumpkin Plan,” “Toilet Paper Entrepreneur.,”  and other books came out with a business discovery system which he documents in his book “Fix This Next.”  As JKL Associates is a certified Business Advisor with the “Fix This Next” system, I will share with you the process which you can execute on your own or engage a Certified Advisor to help you navigate to greater results.  As part of the discovery effort, I am providing a link for you to complete a quick questionnaire which will pinpoint areas for you to focus on during your discovery of what to fix next.  To access the complimentary questionnaire visit https://jklassociates.fixthisnext.com/ and complete the questionnaire.  Your assessment results will be emailed back to you and identifies the area of greatest attention to “Fix This Next.”.

Next week we discuss the foundation of your business – its Culture.

In the meantime, JKL Associates is here to assist you to achieve greater results in 2021.  Do not hesitate this year.  Opportunities exist so let’s go make them happen.  Give JKL Associates a call at (313) 527-7945 in Michigan or (407) 984-7246 in Florida or go onto our calendar below and schedule an initial meeting which works best on your busy schedule. JKL Associates looks forward to continuing to build relationships rooted in “Purpose.”

QUESTIONS OR COMMENTS – EMAIL US AT PARTNERS@JKLASSOCIATES.COM OR CALL OUR OFFICES – MI AT (313) 527-7945 FL AT (407) 984-7246
Celebrating 30 years of Delivering on “Promises”
OUR PURPOSE – TO BUILD RELATIONSHIPS ROOTED IN “PURPOSE” SO AUTHENTIC CONTRIBUTIONS DELIVER “PROMISES”
A LIFE WHERE A “PROMISE” MEANS SOMETHING!
BECOME A FAN ON FACEBOOK ? WWW.FACEBOOK.COM/JKLASSOCIATES
LINK UP ON LINKEDIN ? WWW.LINKEDIN.COM/IN/JKLASSOCIATES
FOLLOW US ON TWITTER ? WWW.TWITTER.COM/@JKLASSOCIATES

 COPYRIGHT – JKL ASSOCIATES 2021

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