Written by Bob Phibbs
Retail sales are up. Stocks are up. So why are so many independents down? They aren’t making money.
Truth is, many never had but it took the economy to pop like a balloon to bring them back to earth.
Is it that they are enamored with being “the boss?”
Their wife has an endowment she is supported by, so their business hasn’t really had to make a profit.
They may have a husband who has another job and this has been a hobby.
They like to buy pretty things regardless of whether they sell.
Maybe they own the building so rent is cheap.
But the reality is you have to pay attention to your business fundamentals before it is too late.
You’re either taking out a profit or you’re putting in money. And I’ll bet many of you would be surprised to discover you’re subsidizing your customers because you don’t price correctly, are over-bought or have no presence on the web.
I heard a speaker last week say you could double sales by just asking more people to buy. If you believe that or you think saying, “I refuse to participate in the recession” will result in more sales, I think you’re delusional.
Much like after 9/11, we are in a different environment than many of us have ever faced. We can’t hide from the truth - business is work.
A marriage is work. Raising kids is work. We see what happens when people don’t take care of those things.
When you’re in denial about your business, the financial results can be devastating. When it closes, everyone sees what the owners should have seen.
If you’re happy being in denial and flying blind in the plane, you are on a collision course with reality.
Best-selling author and speaker Bob Phibbs has helped thousands of businesses compete by using his sales approach and not discounting. His Book, You Can Compete: Double Sales Without Discounting is the backbone of scores of businesses’ training programs because it teaches his methods for making a business successful. Download more free tips at his website. Follow him on Twitter at http://www.twitter.com/theretaildoctor.com