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How Can I Make More Money?
Written by: Adam SonnhalterArticle Overview: "Money, its a gas. Grab that cash with both hands and make a stash." by Pink Floyd Things in business can often get confusing. After all, isn't every business in business to make money? So shouldn't that be the #1 focus? Well, perhaps surprisingly to some, the answer is a definitive NO!
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How Can I Make More Money?
"Money, its a gas. Grab that cash with both hands and make a stash." by Pink Floyd
Things in business can often get confusing. After all, isn't every business in business to make money? So shouldn't that be the #1 focus?
Well, perhaps surprisingly to some, the answer is a definitive NO!
Now this may sound like a surprising response from a business coach. I mean, aren't we in the business of helping our clients increase their profitability and thus "make more money?"
Well, yes, but it doesn't sound like this: "we've got to help you make more money." Let me share a story with you to illustrate my point.
Jack and I have an inside joke about a guy named Chuck. Our buddy Chuck is a facilities manager for a company, which basically means he's the "sheriff" in town when it comes to policing how the facility is being used.
Well, we utilize this facility quite a bit as part of our business and we bring a lot of people through this facility. Once in a while we'll ask the staff if we can use a private room for an hour or two. Keep in mind, this is a room that is otherwise not being used. This usually works out just fine until Chuck gets involved.
The conversation goes a little something like this:
Chuck: "Hey, what are you doing in here?"
Us: "Well, we spoke to Sally and she said we could use this room for some privacy for the next hour. We promised to return everything to its original condition so it'll be like we were never here."
Chuck: "She's not supposed to do that. You have to pay to use these rooms. We're trying to make some money around here!"
Whenever we need a good laugh, I'll mention the phrase "we're trying to make some money around here" to Jack and we'll both smile just like I am now while writing this.
Our poor friend Chuck is missing the point. While we fully understand that they're in business to make a profit, Chuck has completely lost sight for just HOW that "making money" thing happens.
It's not his fault of course. Chuck's just trying to do his job. I'm sure one of Chuck's supervisors reminded Chuck of the fact that they're in business to make money at some point and it has obviously stuck in his head. Can you imagine how good Chuck would be if his supervisor had actually shared with him just "how" they make money?
Can you imagine having dinner at your favorite restaurant and the manager coming by your table during the meal and saying, "Are you almost finished, we're trying to make some money around here and we'd like to use this table two more times again tonight?"
Sounds crazy right? I mean, that would probably be the last time you'd go to that restaurant.
If you're in business, don't worry, your customers know you're in business to make money. The key for you and your staff is to not make them feel that way.
This is where those phrases like customer service come in. The way to really make money is to constantly deliver value to your customers. Depending on your business, what the customer views as "valuable" will differ.
For instance, if you're in a retail business, one of the things that customers may perceive as valuable is that you and your staff greet them by name when they enter your store. It makes them feel welcome and special. Of course they realize you know their name because they frequent your store often and that your business has made a profit on them over time. Just realize they aren't showing up to make you money. They show up to get their needs satisfied.
That's the trick. All customers know that you're in business to make money. The way you get them to invest their money in your business might vary, but one sure way to make this happen is to have the focus be on the customer and their wants and needs.
Your customer wants your product or service. They want to buy it in their own way. They want you to focus on them. Not the fact that "you're here to make money."
Here are a couple of ways to figure out how to make more money by focusing on your customer:
1. Ask Your Customers: guess what? Your customers will typically tell you what they want if you just ask them. Ask them what you're doing right and what you're doing wrong. People love to have their voices heard.
2. Define What You're Selling: we often get lost in our product or service when people ask us what we do. For instance, an Italian restaurant might say "we sell the best pasta in town." But your customers aren't just buying pasta. They could do that just about anywhere. They're buying the entire dining experience at your restaurant. This includes the way the restaurant is laid out, how they're greeted when they enter the restaurant, the music being played, the way the tables are arranged, the friendliness of the staff, the speed of the service, the options available, the price, and of course the pasta!
3. Make Sure Your Staff Knows: while it's important for your staff to be reminded that you're in business to make money, it's more important for them to remember "how" your business makes money. That the customer needs to perceive value in everything that is delivered. Engage your staff in trying to figure out exactly what it is that you're selling. You might be surprised what you hear.
If you're doing the right things in your business, the money will follow. If you're primary focus is on the money itself vs. delivering true value, then the making money part will be a constant struggle and quite frankly, will be tremendously unfulfilling.
Do you know somebody who sounds like Chuck? If so, can you please help him out? We'll all be better off!
Article Tags: how can i make more money
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About the Author: Adam Sonnhalter RSS for Adam's articles - Visit Adam's website Adam Sonnhalter is a Partner of Maximum Value Partners, a business coaching firm based in Northeast Ohio that works with companies across the U.S. with anywhere from 1-25 employees. Adam has been involved in professional services his entire career including nearly a decade on Wall Street as an Investment Banker helping people buy and sell companies as well as raise money for their companies. Adam grew up with an entrepreneur at the dinner table and has been advising business owners for well over a decade. Adam's partner in MVP is Jack Mencini. Jack has personally owned and operated several companies, 5 of which he bought and subsequently sold, the others were started from scratch, including MVP and one that made the Weatherhead 100 list of fastest growing companies in Northeast Ohio. All of this came after 17 years working for a couple of large public companies in Northeast Ohio that exposed him to business throughout the world. We currently work with companies throughout the U.S. either in person or virtually. More information is available about Adam and Jack and their business coaching at the MVP web site www.maximumvp.com and their blog www.AskTheBizCoaches.com . Click here to visit Adam's website Cash Flow Forecasting Tool |
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