80 20 Rule
August 5, 2008 by Tom Biancos Blog
Filed under Stuff that goes here
Here again the old “80/20 Rule” applies: In an established business, 80% of your sales come from 20% of your customers. These are the customers to focus on. If you don’t know who they are — if you can’t list them — in order of decreasing sales — find out. Analyze your sales and make a list — and hang that list where you can see it every day. And every day, ask yourself, “How can I build my sales with these customers? How can I strengthen my relationship with them?”1. Thank-you notes: This is a no-brainer, but you’d be surprised at how many entrepreneurs neglect to write thank-you notes–especially when they get really busy. Take the time to show your customers that you genuinely appreciate their business. They’ll remember your thoughtfulness because most of your competition won’t send out thank-you notes.2. Postcard mailings: If you target consumers, send out monthly mailings that make good refrigerator fodder, such as “Quote of the Month,” “Recipe of the Month” or useful tips on such topics as time-management, gardening or anything else that interests the bulk of your customers. Avoid being too promotional here. Just provide the kind of information that customers will want to hang on their frig. The added benefit to you is that whenever guests visit your customers’ homes, they’ll see your name, potentially leading to conversations about your business.3. E-mail updates: Think of your e-mail update as a press release that you send to your customers. Providing them with regular product, service and customer updates via e-mail at least once per month will convey a sense of positive momentum. This keeps customers in the loop and, over time, gets them excited to be involved with you and motivates them to pass on referrals.4. Getting together over coffee or lunch: Try to spend face time in a nonsales environment with your customers. Ask about their family, hobbies, personal goals and so forth. When you show customers that you really care about them on a personal level, they’re yours for life.5. Birthdays, anniversaries and other special occasions: These occasions are very important to your customers and their families and friends. Be among the few who actually remember a customer’s special days, and that customer will never forget you!6. Follow up on well-being: For example, if you find that a customer’s wife has been sick, call periodically just to find out how she’s recovering.7. Pass referrals: One of the most powerful ways to encourage loyalty in customers is to pass them referrals. When you get a chance, scroll through your customer database and think through people you know who might add value to your customers.8. Entertaining at your home: Throw a party for your best customers. You’ll be amazed at how much rapport and goodwill you can build with people when you get them in your home environment. Your guests will also find value in your party as a networking opportunity for them.9. Post-sale feedback: Demonstrate that you care about the quality of your service. Call customers and ask them questions like:* Are you pleased with the service you received?* What did you like most about working with us?* What would you like to see improved?Without this invaluable information, you’ll have a hard time improving your products and services. Besides, when you ask customers for feedback and implement their comments, they feel a sense of ownership in what you’re doing and thus become more loyal to your products and services.
Selling Out and Slacking Off
July 15, 2008 by Tom Biancos Blog
Filed under Stuff that goes here
I have been real quiet lately, We are still in the internet business but we are out of the wedding business, thank god brides are crazy, sorry if you are one. No all kidding aside it was a great run but as I have always said if you are going to do ecommerce you have to love what you sell. I admit I was bitten by the married bug and was having the time of my life after we got married so doing this with my wife Kim Bianco, sounded like a good deal and it was, but item to switch gears to internet marketing, SEO, 2.0 tool and Kim’s Atlanta Real Estate Company. We are working hard and are close to launch a few tools to improve the dynamic sales chain, for a free repot on what I am talking about click here. We also are going to blow the lid off internet marketing, ecommerce, SEO, Social Marketing, Traffic, Affiliates, ebook creation among others so stay tuned….More to come soon. Oh and I can tech you how I spent $100 on Urls and flipped them all for $1/4 of a Million. Really thats way I have been so slack. Vegas, Sea Island, Hilton Head, Mexico, and St john its tuff but someone has to do it. Hey who is this fat guy in the picture.
Top Tips for Your New Restaurant
May 25, 2007 by tom bianco
Filed under Stuff that goes here
Here is an encouraging article from Kevin Moll who is in the restaurant consulting biz about the successes rate in the restaurant business. Are we getting better or is this number skewed in some unseen way? Want to hear some good news? Your chances of success are better than most people think. According to the Bureau of Labor Statistics, the survival rates of all new businesses started between 1998 and 2002 find that 66% of them are still open two years after they started. According to the Bureau of Labor Statistics, the survival rates of all new businesses started between 1998 and 2002 find that 66% of them are still open two years after they started. A Cornell University study of restaurants in three major markets showed a first year failure (or closure) rate of 27% with only a minor (4%) difference between franchised and independent restaurants. Regardless of how you crunch the statistics, and I might add that quality statistics for the restaurant industry are hard to find, approximately 30% of all new, first year restaurants go out of business on the average. This means you have a 70% chance of first year success if you have a viable, well thought out concept in a worthwhile location. It is important to note that of the 30% of restaurants that close during their first year, most of those operators were under-educated, under capitalized (most common reason), or were not willing to make the time commitments necessary to get the job done. Why am I concentrating on the first year aspects of survival? Because statistics and logic both say that if you make it past your first year, the percentages are in your favor beyond year one. How can you minimize the risk in your first year? These Top Tips listed below will aid in insuring your survival: Tip #1. Know your market. The easiest and fastest way is to get a Feasibility Study done! I know of a restaurateur who was looking at placing a Mexican restaurant into a major metro area. His Feasibility Study revealed that a quickly expanding localized chain was inevitably going to greatly diminish his potential success, so he changed his concept, thereby avoiding an expensive potential failure. You too can avoid major failure by knowing your market, and concentrating strongly on your biggest competitor. If you can’t or don’t want to fight for market share, reconsider your concept niche or location. Tip #2. Find your niche. We have all heard this before, but you can’t be everything to everyone, and do it well. Select the market you enjoy and have experience in. If you know everything about the burrito business, and know for a fact that your burritos are superior in quality, then chase down that great location, know your market, and fill that niche. It’s important to minimize the competition in your chosen niche, and done right, you can own the entire niche market. Why compete when you can own the market? Tip #3. Have a plan. Don’t shoot in the dark with your capital resources. Pay for a quality business plan, and have a qualified restaurant consultant do it. You pay for legal and accounting advice because they’re professionals in their industry. Same thing with your Restaurant Consultant. A business plan is not cheap, but it will guide you on the path to growing your business profitably, and you’ll find that your business plan will quickly pay for itself. Tip #4. Know the industry, or pay for the knowledge. Just a few pieces of quality advice at the right time can save you thousands of dollars. Did you know that if your Restaurant Consultant negotiates your pricing with your foodservice vendors, you’d get better pricing than if you had negotiated the prices yourself? The author of this article was Director of Business Development with a large foodservice distributor, and is able to lower your food cost significantly by representing your interests with your vendors. Tip #5. Your menu is your number one tool in insuring a profitable operation. By costing out each menu item and placing it in the correct menu location, you can bring more dollars to the bottom line. Operators are so concerned with food cost percentages, but fact of the matter is that you take dollars and not percentages to the bank. It costs a little bit, but your reward is great when you have your menu professionally designed. Regardless of the size of your operation, you can’t afford not to have your menu evaluated. Why miss out on lost profits? Tip #6. The menu controls everything. From what you serve, to what equipment you need, to your signage design and concept name–everything revolves around the menu. What are you serving, and what is your position in the market? If you don’t know, get help immediately. Tip #7. Build your team. You need a few good players on your team, and the team members are as follows: An attorney with restaurant experience, an accountant with a list of restaurant clients, a banker that understands the restaurant industry, and Restaurant Consultant that understands startup ventures. When interviewing your Restaurant Consultant, know in advance that there is only one proper way to figure your food and beverage cost percentages. If you are told that you take your total costs and divide that number by your sales, you are getting inferior advice-keep looking. May I humbly suggest our services? If you would like to know the correct formula for computing food and beverage costs, please contact the author of this article, Kevin Moll, at 1-800-961-6005 for some insights. Tip #8. Cover your business bases. This includes: Insurance, corporate formation, business registration, company structure, funding, design, architecture, location, building codes, health department regulations, permits, and others. These will all have to be factored into your plans for opening and staying open! Tip #9. Understand your marketing and have a plan. You may, “Own a niche”, you may serve the highest quality products, and you may be the best in your market. But if nobody knows where you are located or what you offer, how will you pay the bills? A big part of the business plan is a high quality marketing plan. Has this convinced you to consider having a business plan done? Tip #10. Go forward. Until you are open, you will be faced with many obstacles that may be new to you. Use your team, stay focused on the goal of not only getting or staying open, but excelling in your brand management, delivery of product, and above all, listen to your advisors. As they have nothing to loose by telling you the unvarnished truth, they’re in your court more than you know!
