Too many companies settle for the profit they make instead of working for the profit goal they have set. If 20% net profit is your goal, then write a budget that gets you there. Don’t compromise until you have reviewed all your options. That is true budget discipline. › Continue reading…
Tag: business
A majority of respondents to this AV Matters poll report 10% or more growth in the second half of 2011 compared to 2010. The question was posed on Monday August 8th in the midst of the stock market turmoil that followed the Congressional compromise on the US debt ceiling. › Continue reading…
Commission is an incentive to sell the right products, to the right customers, and profitably. We hope it will encourage our sales team to find new business too. Because we ask so much of commission, it makes sense to have multiple components. We will look at revenue, gross profit, and quotas.
Time to make some game-changing decisions
From Rental & Staging Systems April 2010
The fact that the Recession has ended was easy to miss, as was the beginning back in December 2007. Running a business is a lot like playing the stock market. If you remember to buy before prices go up and sell before they go down, you win. In business, we make investments in a different form, but timing is just as critical. Also important is your portfolio mix. There are three key investment areas in your business that are calling for your attention. The time to invest in them is now. A well-timed, diversified portfolio will set your company apart from the recession-bound stragglers. › Continue reading…
I just read today’s headline about the jump in jobless claims and immediately started to contrast that story with all the good news I am hearing on the street from AV folks. For the past month I have heard almost exclusively about better than expected revenue and revenue forecasts. › Continue reading…
Which things can we fix and which are here to stay?
By Tom Stimson CTS
Shrinking margins, unfair competition, price shopping customers, disloyal suppliers, greedy bankers, and a general lack of appreciation for the value of your services…does this about sum it up? Ten or fifteen years ago the industry starting mumbling about AV becoming a commodity. At that time 40-50% equipment margins and an exclusive lock on professional gear made AV dealers quite happy and the AV Industry very attractive to investors. Value-added services like design, programming, and project management were considered overhead costs and what little revenue they represented was just gravy on an already profitable transaction. › Continue reading…
I was thinking the other day about companies that I admire and enjoy working with the most. What do they have in common? At first I thought it was that they are friendly and open, but that knocked a couple of favorites out of the running. I also know some very nice companies that are not that fun to work with. They are stuck in a pattern that cannot be broken without extreme intervention. When you are in a role like mine that is designed to help people, and they won’t let themselves be helped – it’s frustrating. Still, it doesn’t mean I don’t enjoy being with them. › Continue reading…
Five Skills That Are Key In Any Economy
From Rental & Staging Systems December 2009
When Rental & Staging Systems Editor David Keene asked to write a column on the business lessons of 2009, I had no trouble citing factors that seem to have the biggest impact on success in a changing economy. The following five skills are not just theory. I have seen them all in practice (though rarely all in one place) and measured their effect on my customers. And I discussed these concepts with many of you at the Rental & Staging Roadshows held across North America this year. Let me emphasize that these skills are important at any stage of a company’s life cycle, but are even more critical in a down economy when survival is on the line. › Continue reading…
2008-09 has been a study in business defense. Adjusting staffing levels, hedging operating budgets, and rethinking strategies has consumed most small businesses – and it is getting kinda old. We all seem to be waiting for some sort of sign that will trigger us back into business offense. If defense is characterized by control and saving, then offense has to be the willingness to take some risks and bet that there is more available upside than downside. The past couple of months have proven to a lot of folks that recent upticks of activity have been just bursts and not trends. What will be the your true indicator to switch gears? › Continue reading…
The Dow Jones index is hovering around 9900, October has been a busy month, and the pipeline for 2010 has new activity. It’s time to celebrate because the economy is coming back…right? As much as I want to be excited about the spurt in business so many of us are seeing, I want to caution against resuming “business as usual”. When we get busy we start to miss the people, suppliers, and perks we still had before the Recession. The natural tendency is to reward the team for their sacrifice by hiring up, suspending those furlough days, and reinstating full salaries. I don’t think it is time yet to do this – for most of us. › Continue reading…
