Don't Use The Economy To Muck With Your Customers

There is a quaint little coffee shop not far from my house where I like to stop each morning to grab a cup of coffee before heading into the office. The coffee shop used to be my main place to hang out, do some work and have my face to face meetings with a clients and colleagues. In fact when I first moved into the area four years ago it was where my book was originally conceived and written. Regular customers would always find me hard at work at 6AM pounding away at my keyboard as the great coffee buoyed my creative spirits and the continual tapping of my keys kept rhythmic timing to the often great jazz that played in the background.

That was nearly four years ago. The business has been bought and resold now twice and the spot where I once plugged in for my creativity is now but a shell of its former self. The perky jazz has been replaced with loud and obnoxious noise, which for me, a person who loves all music, that says something. The displays are dirty the walls and floors are a mess. The energy of the place is both erratic and depressing. The people who used to hang out for hours in the morning are now gone - many of us defaulting to the "grab and go" customer. The coffee is still better than Starbucks but even that has changed slightly.

Then this week it happened. It started on Monday with a rather bold sign slapped on the front door that read, "EFFECTIVE IMMEDIATELY WE WILL BE CLOSED ON SUNDAYS!!!" That same emphatic announcement was also displayed at the counter where you order. A customer in front of me asked why they were closing and one of the employees remarked because, "You don't come in on Sundays. We don't make any money so we are closing." The comment was said in such a way that it could have easily been taken to mean their livelihood or lack thereof on Sunday's was somehow this poor lady's fault. Watching this all go down perturbed me not to mention I haven't seen that customer who asked in all week - clearly it bothered her too.

Then yesterday the final straw.

The original owners had come up with a crafty little plan way back when. Oh how I miss them. Anyway....They sold big coffee mugs for $ 15.00. When you brought that coffee mug in your refills were always $ 1.00. A great deal and something I took advantage of over these past few years. I would continually refill my "charge account" and the coffee shop would simply deduct a $ 1.00 from my balance. Great deal and worked like a charm.

Until it didn't.

Yesterday I was in getting my regular refill and I noticed the price on the register didn't show a $ 1.00 it showed $ 2.00. I stopped the gal and said, "Wait a minute the refills are supposed to only be a dollar." I smiled and was giving her the benefit of the doubt because she rarely worked the register.

Without looking at me once. She said, "Nope. Not any more. The price on the cups is now $ 2.00," and she proceeded to deduct it from my account with out nary a glance to gage my approval or not.

"Hmmm wait a minute. It has always been a dollar. When did this change happen?"

To which she remarked, "Earlier this week." I hadn't paid any attention. She then said something I can't believe, "Blame the economy," she handed me my coffee and smiled. "Have a nice day."

Clearly this new business owner does not get it. The economy isn't to blame...it's understanding how to run a business that is the likely culprit. Whether it be how you communicate to your customers in writing (bold in your face signs) or with the verbiage that you give your employees to explain a price increase, you have to understand and appreciate the impact and the subsequent Ripples it will have on your customers.

Driving by today I did not stop though I could see into the shop from the street as I drove by. At that time of the morning there is usually a line at the counter. This morning there was only two people and the parking lot was basically empty. Sad but certainly not unexpected. It takes a long time to build goodwill with your customers and an instant to lose it.

We can blame the economy on a lot of things but we should never use it as a crutch or an excuse to justify an erratic change with our customers. Lest we as business owners will find out first hand how hard the economy can be when the customers who helped us build our companies suddenly decide to spend their money elsewhere. It's a sad fact but a true one.

Ripple On My Friends!!!

The Economic Ripple Effect To The Small Business Owner

The turbulent oceans of our economy are fraught with stormy waves of uncertainty, fear and outright panic. No where is this economic turmoil more readily apparent than with the the small business owner and individual entrepreneur. If the past week of anxious phone calls and requested meetings from current and prospective clients is any indication, I suspect if you are a business owner you too are concerned and worried.

I am not an economist and I certainly don't know how to predict the future. I have however survived as a business owner some very turbulent times that hit our local and national economy. I know the fear and I am all too familiar with the sleepless nights that seemingly compound our worries of where the next rent check or payroll payment is going to come from.

The advice I give my clients is that things are survivable provided you have a plan. I know many business owners that simply didn't respond quick enough and watched their businesses seemingly implode overnight. It happened because they didn't have a plan and they let fear take over - something that happens easier than you might imagine. As you can imagine fear and failure seem to run in the same circle and so a lot of great businesses simply cease to exist.

Here's what I know. We are a free country where all things are possible. This current economic situation is not only survivable but it will be a financial win-fall for some. Sure you might say that's for the fat cats with the big money to invest while things are down, that isn't me. Well it isn't me either. The financial win-fall can be yours too if you have a plan.

Here's the advice I give my clients and you get the benefit of it without having to spend a dime.

1. Reach out to everyone of your clients and talk to them. Have a conversation with them to see what the current economy is doing to their business and listen. Listen for signs that there might be trouble in their business and offer to help when and where you can. Big opportunities grow from adverse situations like these. You customers will appreciate you for it and you may develop a loyalty that pays you dividends for years to come.

2. Review your receivables daily. The first thing that tends to happen with small businesses is that receivables get out of control. When you look at them daily it becomes impossible to ignore what can be a killer problem to your business. And don't just look at them - do something about them. Call your late paying customers. Get them to pay. Let them know that you need to be paid within terms - set their expectations going forward. Stay in front of them consistently and your company will likely get paid more timely than other vendors that let their invoices creep past due.

3. Use the time to negotiate more flexible terms with your bank and your landlord. I think it is imperative to have a personal relationship with your banker and your landlord. That personal relationship allows you to go to them and have open and honest conversations about your concerns about your business and it gives you both ample opportunity to discuss options - there are always, always options. I would suggest doing this even if your business doesn't need to - you never know how you can lower your interest rate or your dollar per square foot if you don't ask. Ask!

4. Review the troops, vendors & suppliers. Some of you may consider this cold but I have to say it. If you run a business there is fat somewhere in your financial bowels. It is your job to proactively seek it out and remove it. That may mean you have to make some difficult decisions about cutting personnel that aren't making your organization money or helping you move the ball further down the field. It sucks and it's painful but it can help. Vendors and suppliers are the same way. Do you really need the most expensive cell phone and a Blackbery? Do you really need the water bottle service or to pay someone to take out the office trash? Sometimes cutting the fat of excessive services can add significant dollars back to your bottom line. Dollars you may need to survive on in the weeks and months ahead.

5. Build your resource network. The best time for you to be out making connections is NOW! Your business needs you actively having as many conversations as you can possibly have. Those conversations open doors. Behind those doors are more opportunities for your business, more advice from resources you can't possibly imagine and ultimately it will demonstrate to you and to the public that your company is alive and kicking.

I know in the weeks and months ahead there may be more bad news. All I can say is don't panic and don't lose focus on your business. When you are in control and "minding the store" it makes it so much more difficult for fear to take over.

Ripple On!!!


If you have concerns about your business or entrepreneurial venture and want to talk I am available. I will say that I don't give free advice except here on the BLOG so if you want to chat please keep that in mind.

Email is the best way to reach me. If you want to chat further about your business send me an email to steve@ripplecentral.com and we will arrange a conference call.

Virtual Connection Becomes Realty

I spent Friday night connecting with a good friend and colleague that up until now I have only met virtually. Donna Karlin, Fast Company writer, executive and political coach and BLOGGER extraordinaire was in town for the MYOB Conference presented by HOW Magazine. What made this extra special was Donna resides in Ottawa, Canada and this was the first time she or I have been remotely near the same location to have the chance to meet. She graciously made time to meet me and a colleague for dinner so we could "officially meet" and swap stories.

The conference was being held just outside of Austin at the beautiful Hyatt Lost Pines Resort. Though the drive out there was pleasant I was anxious and a little nervous to meet this woman in person. Donna has accomplished so much in her career developing some of Canada's most influential executive and political leadership. She is what we would call her here in the states - a mover and shaker. I tend to shake more than I move.

From the moment I saw Donna in the lobby my nervousness immediately subsided. With a hearty smile and a reciprocated big bear hug (customary for us down here in Texas), all of the feelings of inadequacy melted away. You see not only have I been a fan and admirer of Donna for some time, she has been a huge fan and supporter of the Ripple as well. Something that gives me more pride and confidence than you could possibly imagine.

As we enjoyed a fabulous meal and a great bottle of wine, I had the opportunity to see why I had been so drawn to Donna in the first place. She is such a genuine and straightforward person that I found myself on more than one occasion wishing we lived closer. Her energy and enthusiasm is infectious and it is so obvious why so many organizations around the world call upon her to right their wrongs.

After an evening of great conversation and lots and lots of laughs I felt sad that our time had to end. As I drove home with my colleague Prince, my mind kept mulling over how amazing it was to actually make a real face to face connection with someone whom I've only corresponded with via email and the occasional catch-up phone calls. The simple fact our meeting came to fruition is such a testament to what I speak about in my book. Connecting truly is one of the most amazing things one can do with their life. I am proof positive of that. My life if brimming full of incredible connections like Donna because I took the time to make them and I am much richer in so many ways because of them.

Thank you Ms. Donna Karlin for taking the time to track down your "Prime Minister of the South." I welcome you back to Austin anytime and hopefully for a much longer visit - this time so you can meet the family.

Feeling incredible as I start this Monday and I have Donna and her get out there and create it mindset to thank for that! And yes Donna, that is a fact - not an assumption! (SMILE!!!)

To check out Donna's website please click here!

Ripple On!!!