What does it mean

Over the many years I have been teaching and consulting the questions about terms used in business has often been asked. I have put together a list of commonly used business terms and phrases with their meanings. Yes, this is just like those dreaded vocabulary lists we had in school.

The good news with this list there will be not test. Just an opportunity for you to have a better understanding of what the heck I am talking about when I write articles on business. I hope it helps.

Glossary of Business

Accounting-system of managing financial activity of a business
Accounting software-automates many of the functions of business accounting
Action cycles-a system of managing tasks to complete production goals
Administrative costs-expenses related to business management
Advertising-mechanism to create awareness, educate and attract customers
Assets-items of monetary value owned by the business
At-will employment-allows employer to hire and terminate employees without cause.
Break-even-level at which business income matches expenses
Budget-a system to monitor and project business financial activity
Business expenses-costs of doing business as defined by the Internal Revenue Service
Business goals-establishing an end and a means to get there.
Business plan-a device used to map out the direction a business wants to go. Used to assess business growth and mission.
Capital-accumulated liquid and tangible assets of a business
Capital expense-costs associated with acquiring assets
Cash flow-measures income and expense trends in a business
Cash flow forecast-projects future business income and expense
Closing the sale-the final steps in selling your product or service
Compensation-financial considerations given to employees or contract labor
Consultations-used to educate and gather information from clients
Contract labor-non employees who provide specific job functions for our business
Cost of obtaining business-expenses related to attracting new and existing clients to our business
Cost of sales (COS)-expenses related to producing the products we sell
Cost of sales (COS) percentage-the portion of gross sales related to cost of sales expense
Custodial accountant-an individual who handles regular record keeping of business finances
Database-a collection mechanism to hold customer or financial data and records
Depreciation-expensing and recapturing capital investment
Depreciation rules-government regulations on the amount of capital, which can be deducted on taxes each year.
Employee Covenant-a written statement of the employees job expectations
Employee handbook-guidelines outlining expectations, responsibilities and privileges of employment
Employee orientation-a time of training for new employees
Expense budget-a system to monitor and project business costs
Financial plan-the portion of a business plan dealing with monetary goals
General expense percentage-the portion of gross sales related to operating expense
General expenses-costs related to the day- to-day operation of a business
Gross profit-total of all sales revenue
Income-money received in exchange for sale of goods or services
Income and expense projections-evaluation and visioning of financial direction of business
Invoice-an itemized list of goods sold, including price and sales terms
Job description-a detailed list of functions, duties and responsibilities of employee
Liabilities-money owed by business to others
Limited checking account-used to pay irregular expenses, (taxes, insurance, withholdings)
Managerial accountant-consultant to business on financial operation
Marketing-creating a need for product or service
Marketing calendar-a system of managing marketing plan
Marketing plan-Portion of business plan, which determines the type of business and how it is going to attract the desired clients
Mechanics of pricing-method for determining selling price
Mission Statement-a promise created by the business for how they plan to conduct their operation
Money market account-a holding account for liquid capital, including depreciation recapture
Net profit-the amount of cash from sales left after expenses have been deducted
Operating expense-costs related to conducting business regardless of sales activity
Operational productivity-level of work completed in business workflow
Overhead-expenses, which exist whether or not business activity takes place
Owner's compensation-amount business owner pays himself in form of cash and benefits
Owner's statement of values-the business owner's vision of why his business exists
Partnership marketing-sharing marketing projects with other businesses
Personnel guidelines-rules for how an employee should conduct himself or herself in the workplace
Price point-a pricing level where the product will be sold
Probationary period-often given to a new employee. It allows an employer to evaluate the employees ability to perform job functions
Product lines-the various items a business will sell categorized by likenesses
Profit and loss statement (P&L)-evaluation of income against expenses to determine financial health of a business
Promotional planner-system to manage marketing programs
Pure cash accounting-method of recording income and expenses when cash in transacted
Recapture-ability to regain value of capital items
Regular checking account-handles the day-to-day income and expense of business operation
Relationship marketing-developing clients as marketing tools
Return on investment (ROI)-the value of a business measured against it's performance
Return on investment (ROI) formula-used to determine the value of a business
Sales objections-when clients begin questioning reasons for making the purchase
Sales presentations-showing and educating client products and serviecs offered
Sales projections-analyzing sales categories and their potential growth
Statement-a summary of invoices
Tax accountant-provides assistance in preparing tax returns
Technological productivity-using automation to achieve job functions
Time management-making the optimum use of one's time
Workflow-tracking how production elements are completed

So, you have weathered the storm

Congratulations, you have survived the first three months of the year. This is often the toughest period financially for many small business owners. This means if you are still in business you have survived, but did you thrive and do you have a plan for how you will continue to succeed in the remainder of the year.

There are three things you should think about as you look forward to financially better times. First, how are you doing financially? Did you hit your first quarter sales goals? If not, why not? If so, how can you translate that success to your future marketing efforts? Consider what adjustments you will need to make in the coming months to address your financial needs.

A good management plan allows for you to be more fluid in your business and redirect your business decisions as circumstances may dictate. It allows you to capitalize on successes and avoid repeating mistakes. The plan allows you to chart your business and set goals for its future. If you do not have a management plan in place it is still not too late to put one together.

Next, have you established a strong marketing plan? Are you ready to promote your products and services? To do so you should have targeted the demographic of your potential client. Then determine the best way to deliver your message to them in a way they will respond. Next, create your marketing collateral to build awareness for your offer. Be prepared to follow-up on leads and referrals and don’t be afraid to ask existing clients for these referrals. The point is, the chance an existing client will know someone who would also be interested in your service is pretty good. But you must ask them for these referrals.

And finally, your future, what are you doing today which will make the first quarter of next year more successful. It is not too early to be considering your marketing and financial goals for the coming year. There are indications the economy is getting better and people’s perception of the economy is improving. This bodes well for small business and you need to be prepared to take full advantage of the improving economy.

Your foresight and attitude will go a long way in improving the success of your business. Those of you who have maintained a strong business over the past eighteen months are keenly aware of how important having a good plan in place has been to your past success. Presumably you were successful because you invested the time in your business to make the necessary decisions to keep it moving forward.

Better days are ahead. Be prepared to take full advantage. Plan to succeed and work your plan. As always we are here to assist you if you need it.

Selling your image files

One of the major fallouts from the digital revolution has been the desire of the professional photographer’s client to have the files from the session. For many studios this has created quite a quandary.

As a studio considers how best to address this there are four areas you should consider. They are profitability, image integrity, studio reputation and position in market, and the goals of the studio.

The first factor in making a decision on offering the image files to the client is from a financial standpoint. Purely as a business decision you have to look at the bottom line. The question becomes at what price you offer the image files to maintain the profits necessary to achieve your financial goals. This can be done a couple of ways.

You may offer to sell the image files as an incentive to a minimum purchase requirement or as part of a package. Either way the total dollar amount of the required sale should meet your minimum sale requirement to maintain profitability. You cannot however offer the image files without the needed minimum order, to do so is unprofitable.

Some studios have gone to a larger upfront fee or minimum order and then sell duplicate prints at lower prices to combat the price issue.

Next consider how your original image files may be manipulated. If the file is utilized in ways which deteriorate the overall image quality or alters the image in a way which it was not intended. The impact is the concern of work being out there which may not be to your standards or be used in products which you do not offer.

You also need to consider the quality of reprints made from the image files and whether they are a reflection of the quality you can produce. Having your name associated with poor quality reprints can be detrimental to your reputation.

Where do you want to be positioned in your market? If you are trying to be known as a high-end more exclusive studio then you may be more interested in maintaining the image files for your client. If you are going to maintain the image files you need a system in place to protect those files for your client. Otherwise you may want to simply shoot the job and turn the image files over to the client and let them get their own reprints.

Neither is necessarily wrong but it is important you understand your strategy and how you are presenting your products to your customer. Remember your decision should be a reflection of your overall business goals.

New technologies will continue to offer challenges for your business. However the way in which you make decisions for your business does not need to change. As long as you focus on the overall goals and vision for your business and utilize them in making decisions it will be easier to keep your business on a successful path.

Ah, to sell or not to sell, that is the question

Ah, to sell or not to sell, that is the question. When it comes to selling digital files of the images created it becomes quite a dilemma for many photographers. There are probably as many schools of thought on this as there are professional photographers.

As the photographic industry has transitioned from film to digital capture the consumer has become much more astute to the process involved in creating the final images sold to them. Here a couple of suggestions to help photographers deal with this often times misunderstood process.

First, let’s consider the business side of this decision. The fundamental question is the photographer’s profitability. In other words what does the photographer need to make from each session to maintain the profit level they need to stay in business?

Understanding and knowing where the sales average needs to be on each job and pricing appropriately to achieve that average will assure you are profitable. So now the question becomes how to make the image files available to our client once we have met our threshold of profitability. Once it is met it probably begins to make sense, from a pure business perspective, to allow the client to purchase the image files.

With this in mind, once the client has reached a certain investment level with the studio it may be alright to sell them the image files for an additional fee. Creating additional incentives, bonuses and minimum order requirements are all ways to get the client to the purchase level the photographers needs them to be.

The photographer can also consider allowing the client to purchase reprints from them at a much reduced price once the minimum order requirement is met. This way they are still on control of the quality of prints which are being made.

The client may decide it is simply easier and better for the photographer to maintain the files and get additional prints from them if and when the need arises.

Secondly, and more fundamental to most photographers is the idea of giving up control of their image files. Losing creative control can be frightening and the products created outside of that control can put sub-par images on the street.

This should be a decision made by each photographer as a reflection to their desire to maintain creative control and the overall mission and vision for their business. Also, if the photographer wants to keep the image file it will require a system of file management, backup and storage.

Either way, consider only offering the image files which the client placed orders. If they did not like an image well enough to purchase an image originally why would they want the image file?

In summary, set your prices and create a structure which assures your profitability. Consider the pros and cons as they apply to your business and your desired ongoing relationship with the client and finally how you want to be perceived in your market area.

The Value of What We Sell

It is how much? For those of us who sell a service it can be a difficult process of learning our value. Determining the price of our services is one thing. Creating and understanding the value of our services is quite another.

Creating a price for our service is a mathematical process of figuring costs and applying formula to determine profitability. Creating value is more complicated.

We establish value by engaging our clients in the process of producing the final product. In this process we create a relationship with the client. Through the relationship we create we give them the sense of importance in what we provide for them.

This emotional engagement with the client will help them understand they are not just purchasing a product but they are making an investment in the relationship. Their investment is an emotional response to the experience we create for them.

This being said, it becomes essential we understand the importance of engaging our potential client. We do this by listening and responding to their needs in a positive way. The key here is to both listen to what the client is telling you, repeat it back to them, and then offer alternative which serve their needs.

It is also imperative that you believe in the value of what you are offering to your client. Rehearse if necessary. Repeat over and over the values of your product until you are completely comfortable. Your client will sense your insecurity about your pricing if you do not believe in yourself and the value of your product. So again, practice until you are confidant.

Remember sales is a process. It begins with your initial contact with the client and never ends as long as you maintain a relationship with them. Sales is not high pressure. It is creating a need, engaging your client on an emotional level, and responding to the clients needs.

Create value for your client and price becomes secondary to your client and improves your ability to serve their needs and your needs.

Winners Not Whiners

The one person who can make you and your business better is YOU! It's time to get off of your backside and start doing what is necessary to make your business and your life better. It is easy to blame everyone and everything else for you not being as successful or happy as you want to be.

The truth is the only person who can change your circumstances is YOU!

Stop making excuses for not succeeding. It’s not the economy or the competition. IT IS YOU! Your first decision is to make that realization.

Your second decision should be to attend this two-day workshop. Stacey Friedlein is known for telling it like it is. He has a unique ability to help his clients and students identify the core issues which keep them from achieving maximum success. His thirty plus years of experience in business ownership, management, sales and consulting, and as a lifetime Christian has made him a trusted mentor and educator to hundreds of small business owners.

Through a process of reflection and analysis he can help you identify your value system and personal and professional goals. With this knowledge he will guide you through a planning process which creates an action plan for managing their business and getting the most out of your life.

This is not a one-stop, fix-all workshop. In this program you will learn the techniques necessary for making everyday decisions which will improve your business, your personal life both today and into the future.

So are you going to take action, stop whining and register today for a two-day event which will change your life!

Be About the Business of $ucces$ Seminar and Workshops

Taught by Stacey L. Friedlein, Cr. Photo., PPA-ABI, S-PPANI

Get more information on classes near you at: http://www.inthespiritconsulting.com/Business%20Brainery.htm

Eye to Eye with Kids

Warning-If you don’t truly love kids and working with kids this packet is not for you. Unless you have the genuine desire and patience to commit to children’s photography, you will find doing it extremely frustrating and nerve racking.

Get on their level

Now that you have been adequately warned we can go on. It takes a special personality to work on your knees and babble like an idiot. Not to mention a good pair of knees to begin with. In my years of photographing children, I wore out countless pairs of trousers by standing on my knees all day.

I’d like to spend some time talking about kids and adult relationships with them. Many, in fact most, adults view kids from an adult perspective. The old adage that a child should be seen and not heard still rings true with most grown ups. Think about the last time you spoke with a child. Either your own or maybe a subject in your camera room. Where were you when you spoke to the child. Were you, like most adults, standing, staring down the end of your nose at the child.

Think about this for a minute. When you converse with another adult do you sit while the other stands. It can be very awkward. You want to be on an even level with that person. The same is true with kids. Try this test. Get another adult to help you. Stand on a chair and put your hand on your knees and speak to this person. (Much like you would if you were speaking to a small child.) Speak in the same tone of voice as if the person you were speaking to were three years old. Now reverse the roles. How did you feel. If you are like most adults, you probably felt uneasy and intimidated. This is the same way that a child feels when you speak to them this way.

Try to remember this the next time you encounter children. Bend down on one knee or sit down when you speak to them. Get on their level. They
will feel more comfortable with you.

Big men with hairy faces may frighten children. This is just a fact of nature. How many times have you had a parent tell you that their child is petrified of Santa Claus. That is not to say that men with facial hair cannot photograph children. They just may have to work harder at it.

Getting to know them

If you don’t like children or don’t like working with them or if you get nervous around them, they will know it! Children are extremely perceptive. So if you feel this way and want to change it. What can you do? Spend time with some kids.

If you don’t have any of your own, borrow some. I’m sure there a plenty of parents out there who would be more than happy to have you baby-sit for a couple of hours. Get on the floor with them and roll around. Play their games. Let them lead and you follow. Observe their actions and reactions. Remember, take notes if you need to, the things that they seemed to like to do and the things that got a positive response out of them. These are things you can use to stimulate reactions in the camera room.

Translating this knowledge into the camera room

Be sure to practice. Spend some time working with kids in the camera room as well. Be sure that the things you are doing with the kids are appropriate to their ages. Young kids will just not react as well to silly jokes, for example, as older kids will. So what is appropriate. Let’s look at various ages and what can be done with them.

Developmental abilities in the first year

Most photographers and parents think of taking portraits in the first year at ages three months, six months, nine months and one year. It is more appropriate to think in terms of developmental abilities in the child’s first year.

Consider the following levels:

4-6 weeks-It is at this time that the child begins to react to outside stimulation. The child is more alert. Don’t expect to elicit smiles on demand at this age. If the child does smile, it is probably gas. No matter what mother says, infants at this age do not smile ‘all of the time’. You are going to want to look for eyes open and focused and a pleasant expression. You can help yourself greatly by explaining this to the parents in advance of the session. The best stimulation you can use at this age is your voice or moms voice. Loud squeakers and other noisemakers may not work. Also, do not shove toys directly into a child’s face. If you think they like this, think again. Let someone shove a stuffed frog in your face and see how you like it.

3-5 months-You want to have the child come in for pictures when they are able to hold their head up while laying on their stomach. By this time they should be able to respond to outside noise. In fact a small squeaky toy can be very helpful. If you are creative with your voice you can use it effectively as well.

5-8 months-The child should be sitting unassisted. This means that the child should be able to sit on it’s own for a few minutes. I would still have mom or an assistant within arms reach of the child. A noise maker or brightly colored toy can help gain attention. Remember not to make any sudden moves toward the child. It could cause the child to fall over.

7-10 months-When the child is standing. If you can work it out, get them in after they begin standing and before they begin walking. It’s much easier to photograph them when they aren’t quite as mobile. Another thing you can do to keep them in one place is to have them stand against something. Such as a chair, large toy or column.

1 year-It is important that this session come fairly close to their birthday. This is the one time in the first year when date should take precedence over ability. Then photograph them at least once a year thereafter.

Using smiling aids

The use of props and noisemakers can be very effective in eliciting that all important expression. Remember that a big cheesy smile is not necessarily what you always want from your small subjects. You should therefore, select aids that will help you gain the expression that you are looking for.

One of the best tools you have to use is the sound that comes out of your mouth. Your voice can be a great asset. With some practice you can have that ‘Donald Duck’ or ‘Goofy’ voice down pat. Those squirrel-ly voice effects can be a hit with the kids as well. Be careful, some kids get really frightened by strange loud noises. Voice inflection can be very important. Sometimes a whisper will give you more of a response than a yell. Remember to consider the expression you are looking for an tailor your voice for that expression.

Make sure that your aids are age appropriate. Know what is hot and what is not.

Knowing what shows, videos and characters are hot for pre-schoolers and high schoolers can help you immensely in the camera room. A variety of familiar Disney character or Sesame Street puppets will appeal to most young children but probably won’t do much for adolescent kids. Being able to talk about hot movies or music groups and sports will be helpful with older kids. Teasing adolescents about having a ‘boyfriend’ or ‘girlfriend’ can work also.

Do your homework. You need to know what kids are seeing and liking. The best thing I used to do when I was doing allot of children was to watch Sesame Street every day. I then could relate with my small subjects about what had happened on that day’s show. Parents thought I was off my rocker, but so what.

Be sure to keep your smiling aids out of sight. I never let my subjects play with my toys. I’m really stingy. No, actually there is a very good reason for this. If a child plays with a smiling aid then it loses it’s effectiveness when I want to use it. I used to tell my subjects that the puppets were there to work and they had to sleep between sessions so that they were ready for the next session. I kept all of these special friends in a separate place out of reach. I also had toys the kid’s could play with during the session. I would talk in character voices and always keep my aids out of the child’s reach. I would occasionally have the character ‘tickle’ the subjects tummy. Again, remember to keep the aid out of the child’s face.

Timing is essential in children’s photography. You must have your camera ready and your lights set. Children have extremely short attention spans. I’m a strong believer that if you can’t have the session done in twenty minutes you are not going to get it done. Be sure you are ready, have props, film and needed equipment close at hand. Most of the time you will get that wanted expression only in a fleeting moment.

Pre-portrait consultation

You can help yourself tremendously by having a pre-portrait consultation. Discuss what your client is looking for. Talk about clothing and props. Find out the best time of the day for the child. Let them know that if the child is not feeling well the day of the session that they may call and reschedule. You need to be flexible about this, especially with kids. Everyone will have a better time if the child is feeling well. Be sure to find out about nap times. NEVER! book a child right before or during nap time or before or during meal time.

It’s a good idea to meet the child during this consultation. Plan to spend a few minutes getting to know the child. This will help break the ice the day of the session. You may want to show them the camera room and what you will be doing the day you take the pictures. Take time to answer any questions that the child may have.

Prepare the parents for what to expect. They expect their child to behave beautifully and cooperate completely. You need to give them a reality check. This is not to say that the session will be anything less than the very best. Provided they follow your advice.

Ask the parents not to put any undue stress on the child. Parents have a tendency to think they can force their child to be happy. It just doesn’t work that way. You need to be allowed to set the parameters in the camera room. Don’t allow them to begin bribing the child with wondrous gifts if they cooperate. This usually does not work. When the child is unhappy. One of the very worst things parents can do is get angry with the child. If a child is spanked for crying, there is usually no hope in getting the expressions you or the parents desire. If this happens you may want to stop the session and suggest a retake on another day.

Keeping parents at bay in the camera room is necessary if you hope to build a working relationship with the child. Be sure to discuss with the parents what their role will be during the portrait session. Remember, it is your camera room, your expensive equipment and your expertise that they have hired to capture their child’s image. You must maintain the control.
Allow only one parent in the camera room with you. Otherwise, you will have too many distractions to the job you are trying to do.

One of the things that worked well for me was to give the parents specific responsibilities and boundaries. I would keep them busy holding up props or backgrounds. They felt like they were contributing to the success of the session. This also would keep them in one place and allow me to work directly with the child. Talk to the parents through the child. You will be amazed at what you can get by with telling the parents if you ask them through the child. For example, if you have a mom constantly in your way in the camera room. Say to the child, “Billy, we can take your picture as soon as we get mom to move over to the right.” This is a much softer approach than talking to the parent directly. On occasion I would tactfully ask parents to leave the camera room if I felt they were interfering.

Don’t mention the Doctor

The experience of having a portrait taken can be the same as going to the doctor. This happens when parents unwittingly use the same phraseology when preparing their child for a portrait sitting as they do when they take them to the doctor. This can lead to unnecessary fear and apprehension on the part of the child. Be sure to discuss this with the parents and suggest that they consider how they talk about the portrait session in front of the child.

In the camera room

Plan plenty of time for the session. The actual photography should be only a small part of the time. When the child arrives, make them feel comfortable. Give them time to get acquainted with the studio. You will want to spend time with the child before you begin photographing them Depending on the age of the child, you can play a game, sing a song or talk about a topic of interest to them. The key is to help them relax and become
acquainted with you. The session will go much more smoothly if you leave the anxiety in your lobby.

Once you are in the camera room you will want to work quickly, but not so fast that your customer feels rushed. Keep the conversation going in the camera room. I found that talking to the child thoughout the entire session helps them relax. The last thing I want the child to know is that I’m taking the photograph. By talking about subjects that interest the child is interested in, it gets their minds off of being photographed. Their expressions will then become much more natural. They will also stay involved in the session.

Think about what you say when you are working in the camera room. Some things are just not appropriate for kids. For example, if you have the child say a word to help them smile, what are you having them say. The words that you use and the tone of voice you use them in can illicit different types of expressions. A whispered ‘peaches’ can give you a soft sweet smile. Whereas a loud ‘Chuckie Cheese’ will give you a broad toothy smile. Use these words and voice inflection to your advantage. Words like money, sexy and hot rod may be appropriate for a senior but not for a child. Constantly watch for expressions. Often children will give you the desired expressions without prompting. Be ready when these occur.

Cut and Run

Know when things aren’t working. If the session just isn’t working out, you’re better off cutting bait and running. Prolonging a bad session will not improve the results. If the child is uncooperative or the parents are not happy you are much better off to reschedule and have them come back on another day.

Junior High Graduation Program

There is a tremendous untapped market in Junior High graduation photographs. This is an important milestone in a child’s life. This is seen more from a personal development standpoint than from an academic point. Most children are in the midst of many physical changes, which mean this stage in their life needs to be recorded in professional photographs. A lot of these kids feel awkward and ugly and this is an opportunity for studios to make them feel and look good with professionally posed and lit photographs.The typical ‘school picture’ is unflattering, with no retouching. Most kids dislike those type photographs for that reason.

The timing of this program is perfect for most portrait studios. The program can run from February through April. This is typically a time when studio volume is down and photographers are looking for ways to be busy. This allows for sessions to be done and finished photographs to be delivered prior to the end of the school year.The same marketing strategies that work for your high school seniors can work for the junior high graduate.

*Gather the names for these kids the same ways you would for seniors through classmates, mailing list companies or schools.

*Incentives such as 2 for1 sessions, bonus wallets, signature boards, digital press products and so on can be effective gimmicks in booking these sessions.

*Many schools have formal graduation ceremonies for junior high students. If the schools in your area do this, then your marketing is easier. If not, then you will have to work a little harder to establish the need for a portrait sitting now.

*Your current senior price list is fine for this program. You may want to modify your sessions. A 1 and/or 2 outfit session is probably appropriate. You may want to do some poses in a formal outfit and some in a casual setting. Encourage personal props that reflect the personality of the subject. Sales while they could exceed senior orders will probably be somewhat smaller.

Parents want to have quality professional photographs of their children. This is an opportunity for you to build a brand new market. With perseverance on your part it can become a lucrative annual program. It may even grow into something like high school senior portraits.

This is a great way to begin planting seeds for their senior portraits. When they have an enjoyable experience with you now, they will remember that and be back in four years for their senior pictures.

Be Prepared When the Telephone Rings

How you answer the telephone may be the single most important factor in successfully booking sessions in your studio. You need to realize the phone ringing is not an interruption in your day. Instead understand it is your lifeline. When the phone rings it is an opportunity for your business. So, take a deep breath, relax and answer the phone pleasantly.

How do you react to that inevitable question, “How much is an 8x10?” Your response can make the difference between booking a session or hearing an immediate “thank you” and click of the receiver in your ear. People ask this question because they do not know what they really need to ask. It becomes your responsibility to lead the conversation to booking the session.

One of the most effective ways to deal with phone requests for information about your services is to answer a question with a question.

By using this method you will begin to get to know your client. Be enthusiastic. Enthusiasm breeds enthusiasm. If you are excited about making the customers portrait, they will become excited about having you do it for them.

It’s important to get the name and phone number of the person calling. Get this information early in the conversation. This way you will be able to call them by name. And more importantly, you will be able to follow up on the lead later.

A good method for tracking this information is the use of a pre-portrait questionnaire. This type of form allows you to record the needed information and assures that you don’t leave anything out. (Please contact us if you would like a sample.)

Show genuine interest in their portrait. Ask who will be photographed and where they would like to have them made. Do they want to come to the studio or would they prefer the comfort of their own home. You may also want to suggest an alternative location. Many people have probably not even considered the possibility of having their portrait done somewhere other than the studio. This gives you the opportunity to point out the advantages especially if it is children or a family that you will be photographing. People are generally more comfortable in an environment they are familiar with.

Ask if they are considering a formal or casual portrait. This will have some bearing on location and background selection.

Find out when they would like to have the portrait made. Is this being done as a gift or for a special occasion? You will want to be sure that you can produce the final images in the time frame they need.

This might be as much information as you will be able to get from the first phone conversation. Be honest with the client. By taking this approach you have taken the emphasis off of price and put it on creating something of lasting value. At some point you will need to discuss price. Now it is a secondary consideration and may not be nearly as important to them.

A clothing consultation is essential. There are a number of issues you will want to discuss at this time. You will want to coordinate clothing and props with the type of portrait being done. Nothing is worse than to photograph a family group where half the family is formally attired and half is in casual clothing. Find out if there are any special hobbies that can be included in the portrait session. This helps personalize the portrait. When this is done the subject(s) will be more inclined to buy more and larger portraits.

When planning a group portrait you will want to discuss coordinating colors. Be sure that subjects are in the same color tones and keys. Avoid loud patterns etc… You need to discuss this with the client. They will not necessarily know to do this. Poor clothing selections can kill additional sales because the images will not be visually appealing. You may want to have the subjects come in to the studio prior to the session to discuss clothing and show you what they plan to wear. It will be much easier to make these decisions early instead of the day of the session.

Find out the last time they had a portrait made, where they were photographed if it was not by you. This allows you to learn more about their experiences and expectations in having a portrait made.

Discover where the portrait is to be displayed. This will have some bearing on the type of photography you may want to do. It is also a good time to plant the seeds for wall portraits. Most people have not considered where they will place the portrait. By discussing these options they begin thinking in terms of a wall portrait.

Find out who the portrait is for. This will help in the selection of backgrounds, props and mood of the portrait.

Good preparation is essential to successful portrait sessions. Communication on the key items outlined here can help make the session work more smoothly and improve the final results of the portrait.

Adjusting pricing in a bad economy

The most frequent question I have been getting recently is in regard to making price adjustments to work in the current economy. This is a very difficult question to answer in a few sentences. With this in mind I am going to break down the fundamentals of pricing and try to address how they are made to work when the economy is slow.

As we begin remember perception is reality and if people perceive the economy is bad, it is bad. Even when people are not directly impacted by a slow economy they will change buying habits and look for a bargain. The strength or weakness of the economy relies on what people believe to be true. When all the economic indicators are pointing to a recession and every headline screams doom and gloom it is natural for people to panic.

Where your business is concerned my advice is DO NOT PANIC. When you are making decisions based on fear you are going to make bad decisions. Therefore we need to address pricing fundamentals. The first question you need to address is do you intend to make a profit from the work you do. If the answer is yes, you must price for profit. If the answer is no, read no further, you can simply give your work away.

Now for those of you who want to be profitable, we begin by looking at the costs of running your business (general expenses including paying yourself) and producing your product (cost of sales) and add a fair profit for your business (returned to the business to use for future growth). Once we understand these numbers we can begin setting pricing based on numbers.
Understand your have to meet the minimum requirements of profitability (general expenses, cost of sales and net profit) if you are going to have a viable business. Beyond this we look at market demographic, quality of work, placement in your market and other such factors to establish your product value and your selling price.

Because the economy is perceived to be bad does not necessarily mean you need to cut prices. Often it requires restructuring and a change in mindset in order to give your client value and keep your margins profitable. When people have a finite amount of money to spend on your services you want to make sure they are buying out of your most profitable products. Generally these are your prints. Be careful in offering specialty and digitally manipulated products which erode your profitability.

On the expense side you need to cut the fat. Do away with unneeded expenses, streamline workflow and delegate away those things which keep you as the business owner out of your revenue streams. Photoshop is fun but is it profitable. Equipment vendors hate me. Here is my advice on capital expenditures. If you can’t show me how the item you want to purchase (camera, software, background, etc) can make you more money then you cannot make the investment. From a business perspective it is crazy to spend money on something which will not make you more money.

If you are overshooting on sessions, you must learn to cut back. This is a time waster and a drain on your profits whether you realize it or not. This is an area where photographers are pathetic. Shooting several hundred images on a portrait session or several thousand on a wedding is actually negatively impacting your business. You are chewing up hours of time in dealing with image files. YES, YOU ARE! By showing the client so many images you are confusing buying decisions and ultimately when the client is confused they buy less. And you are not going to like this, but I think photographers are actually lazy when they overshoot. The thought process being, “I will take a bunch and then I will have a few really good ones".

Are you mad yet? I hope so. Now what are you going to do about it. Change is in the wind. It’s time you discover your photography is a business and you need to treat it as such. If you need more help, contact me and I will be glad to assist you.
Remember, DO NOT PANIC! Now create a plan for your business which includes a solid pricing plan based on the things we discussed earlier and trim the fat from your expenses. Put off capital investments which will not give you a return and work your plan. Best wishes for a successful future.

The Studio Gold Card

Getting a solid customer base is essential to any business. Turning good customers into repeat customers can make the difference between survival and success. The Studio Gold Card can help you achieve a steady flow of repeat customers.

This program is designed to be used primarily with children. You can, however, modify it to be used in any of your service lines. Here is how the program works. The card is set up for a certain number of prints to be purchased over a pre-determined period of time. For example you may want to offer 8 8x10 portraits over a six year life of the card with a limit of to 1 8x10 per session. A single child need not use the card. Any member of the immediate family can take advantage of the program.

To determine what the card would be sold for you would multiply the retail price of your prints by the number offered on the card. In our example, we are offering 8 8x10 prints with a normal value of $40.00 each. This means that the value of the card at full retail price would be $320.00 (8 x $40.00). We then will offer a discounted price for the card when it is purchased. For example, we will give them a 50% discount. That means that they can purchase the card for $160.00.

The customer can receive additional savings with the card. As in our example, they will receive each session at half off of the regular session price. The will also get 10% off of any additional portrait purchases that they make from the session. The will get advance notice of all studio promotions.

You can add whatever other enticements you would like to your program. You may want to make your offer totally different. That is OK.

Here are some other considerations for you.

You will want to limit the number of cards you sell (at least as far as your clients are concerned). This will add prestige to the program in your customer’s eyes.

Only offer the card after you have done the first session at full price. This does a couple of things for you. It allows you to meet and work with the client and determine if you want to make a long-term commitment to them. There are some clients that you simply do not want back. It also allows them to recognize the value of the card after they have paid full price for the first session.

There are many options and variations that you can implement into your own program. You may want to allow them to use one or two of the sessions for the whole family. You will need to determine how to price the card. If you offer multiple price lists for different types of portraiture you will need to determine which will be used for the program. You may want to exclude other studio specials and senior photography from the card. A time period between sessions may also be necessary. Limit the card to immediate family members only.

In the business environment where we live, the consumer continues to demand more services and better value. Once you’ve shown them that you offer those things it’s important to keep them. This program allows you to do just that

Inspirational corner

But seek first his kingdom and his righteousness, and all these things will be given to you as well. Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.
Matthew 6: 33-34

It is easy to become concerned about your future. Let’s face it, times are tough. A weak economy, rising fuel and food prices, global warming, an unpopular war and so much more gives us plenty to worry about. We are reminded in Matthew to concern ourselves with focusing on God and trusting in him to take care of our needs. When we give our troubles to God we are free to worship and glorify him in our everyday lives. Are you putting the Kingdom first?

Pricing for your market

It is always an interesting exercise to work with clients to establish effect pricing strategies. There are many factors to be considered. They include product quality, competition, target demographics and marketability, and most importantly—profitability.

Let’s look at each of these areas. First, how is your product quality? For many small businesses this is fundamental to establishing a good reputation which allows the business to succeed. Durable products which provide lasting value in themselves establish value and will demand a greater investment.

Researching and understanding the other players in your marketplace is essential. I never advocate setting prices based on what the guy down the street is charging. However, knowing their pricing can help you in understanding where to position yourself in the market. You may be charging more and that is OK as long as you understand why and can effectively convey the reasons to you client.

Next, learn as much as you can about your market area and the customers you will serve. Find out what they value and research their buying habits and where they spend their money. What motivates their buying decision? Your pricing structure should be a reflection of what you have learned.

As you identify your client base, be sure your products are appealing and attainable. It is harder to sell a Lexus to a client who desires a Chevy Truck. Take a look at your past sales and identify those products which are selling the best. From there you can create a price structure which maximizes your profitability in those products.

A profitable pricing structure is essential and fundamental to keeping your business viable. Analyzing your price list to identify your costs and expenses is the quickest way to find your profit. Many times the lack of profitability does not mean your prices are too low. Generally the structure of your pricing can be adjusted to improve profits.

Be wary of “industry standards”. These numbers are generally skewed by the method the data is collected. If this data is submitted on a voluntary basis, it very well does not reflect a true cross section of the industry. Due to a wide range of variables pricing and profitability generally cannot be established for an entire industry. While these benchmarks can be interesting they should not be used to measure an individual business’ sales, pricing or profitability. To create profitable pricing, all of the areas discussed above should be taken into account. Your pricing structure should be a reflection of these factors which will assure your financial success

Give 'em a Reason to Come Back

This promotion is a great idea for getting increasing sales from your current customer base. It really is more of a marketing philosophy than a single promotion.

The idea is to give your customer a reason to come back to your business for other products and services you offer. Simply create coupons which can be placed in customers’ orders. These coupons can be for anything from a percentage off their next purchase to a free gift with the purchase of a specified product. You may want to offer some kind of customer loyalty incentive. Such as, buy ten of a specific item gets the eleventh free.

Think about your product offerings and consider how you can offer and promote these services to your customer through coupons and brochures to be placed in orders.

Keep in mind all of these people are customers of yours already and for many they only need to be given a reason to come back to your business.

The whole idea behind this program is to create customer loyalty. This is a great way to give them a reason to return to your business and to spend more money with you. This program works best when you to make a concentrated effort to follow through with it on an ongoing basis.
This can be a terrific way to promote existing products, introduce new products, and most of all give your customer a reason to come back to you.

Inspirational corner

Then, what looked like flames or tongues of fire appeared and settled on each of them. And everyone present was filled with the Holy Spirit and began speaking in other languages, as the Holy Spirit gave them this ability
Acts 2:3-5

It was with utter astonishment of those present early that Sunday morning to hear men speaking in languages not their own. We hear further on in Acts that everyone present could hear and understand what was being said in their own language. Those who today doubt the validity of this event need only pause and realize we know the message of Jesus Christ today. It is alive and well and continues to be translated for those who have yet to hear the salvation story. It then becomes incumbent on each of us to spread the good news of a saved world. Who can you share the story of Jesus?

Who is Your Customer?

Do you know who your customer is? What type of person purchases your goods or engages your services? What are their buying habits? What do they value? Answering these questions is a key component of creating a successful marketing plan for your business.

Finding the answers to these questions will help you identify the products and services you can and should be offering. It will help you to build identity and create direction for your marketing efforts. Understanding your target demographic will certainly help you create much more effective marketing based on their needs and desires.

It’s said, “It’s hard to sell to snow boots to people living on a beach.” In other words you need to find out what your client base is looking for and create products and services to fill those needs.

So, how do you get this information? First, look around. Pay attention to your surroundings. Look at the clothes being worn, the cars being driven, the houses people live in. Where do people work and socialize. What do they do for recreation? Answering these questions will help you to begin to get a snapshot of your potential client base.

From here you can dig deeper. There are number of resources to help you find median family income levels, number of residents per household, age and ethnic background. You can also find the number of children in a household and ages. Begin by looking at the http://www.census.gov website. You can also check with your local chamber of commerce, city or county government and the public library who may have this kind of data available.

This process does a couple of things for you. First, you can begin to determine if there is enough potential in your area to support your business or a specific product offering you may be considering. Next, it will help you to create marketing pieces which will attract the attention of your potential client based on their needs and interests.

Understanding your potential customer is vital to creating effective marketing and maximizing your advertising dollars. You may be able to sell snowshoes to beach combers but wouldn’t be easier to sell them suntan lotion. If you only knew!

Selling Something or Something

Motivating yourself to sell up your client can be difficult. Most often it is because we either do not ask for the additional sale or we don’t know how to ask for the additional sale. Are you an order taker, simply selling the customer only what they ask for? Would you like to become a sales maker? Here are a few suggestions that can help you increase your average sale. It really is very simple.

Asking the right questions is the key. When making a sales presentation to your client, you have to ask the right questions. Do not simply ask yes and no questions. You want to ask open ended questions that give them options and opportunities to make choices.

Adopting a mindset which you offer options allows you to give clients all of the information they need to make an appropriate buying decision. Consider these scenarios:

First, you may have a client come to you and ask for a specific item or service. By engaging them in conversation you can better understand their needs and offer them suggestions and recommendation for helping them best fill that need. As an example, a customer comes to your hardware store looking for a garden hose. They may be thinking they need a 25’ plastic hose. By asking questions about what they need you may find they really need a 50’ hose and a rubber reinforced hose would serve them much better.

Now you have helped the customer fill their true need. They buy the better quality hose. They have spent more money than they originally intended. But, by taking the time to ask questions and find their true need, you have shown them the value of the better hose. They are happy with the decision because you have helped them discover their true need. You now have a customer who will likely be back the next time they have a need for your products.

Another, you own a shirt printing business. The client is in to place an order. You have three grades of the product they are interested, a “good”, a “better and a “best”. By explaining each grade and their advantages you are leading the customer to make an educated decision on the product. Let’s say you are selling imprinted or embroidered items. The customer is looking for shirts. By explaining the difference in the shirt material, fabric care and durability you are helping your customer see the value of the “better” and “best” quality as it relates to the “good” quality product.

By explaining these details you are educating your client. Showing them you care about them getting the best value for their money and increasing your bottom line by guiding them towards a buying decision which moves them to a more profitable product line. They win and you win.

One final example, be prepared to offer suggestions for add-on products to their purchase. You are a portrait photographer. The mother of a one-year old is in to place an order from the images you created of the child. As you guide her through her selections you have the ability to offer her additional products. Show her how she can use her images to create multi-image wall portraits, coffee table books and all of the other great products you can create.

Selling the emotion is essential to increasing the sale. When you become emotionally involved in the sales process, so does your client. Be sure to have samples of the products you want to sell them. You can’t sell it if you don’t show it. Help her consider all of the people who deserve photographs of her child and the products you have to fill those needs. Allow her to have all the products she desires.

Remember that all clients are looking for solutions to needs. That is why they came to you in the first place. They needed your services and your expertise. They are relying on you to help them make the right choices. Make sure that you give them all the help they need in fulfilling their needs and in making appropriate buying decisions. And watch your bottom line grow.

Inspirational Corner April 2008

There is a time for everything, and a season for every activity under heaven: a time to be born and a time to die, a time to plant and a time to uproot, a time to kill and a time to heal, a time to tear down and a time to build, a time to weep and a time to laugh, a time to mourn and a time to dance, a time to scatter stones and a time to gather them, a time to embrace and a time to refrain, a time to search and a time to give up, a time to keep and a time to throw away, a time to tear and a time to mend, a time to be silent and a time to speak, a time to love and a time to hate, a time for war and a time for peace
Ecclesiastes 3:1-8

If you read the first article in this newsletter, you read a great deal about making good and appropriate use of our time. As I wrote the article, I was reminded of this popular scripture from Ecclesiastes. We are reminded there is appropriate time for all things and all things happen in due time. The part of the passage which always resonates for me is “a time to be silent and a time to speak”. For me it reminds me there are times I need to be quiet and listen for God. Whether I am looking to the future or concerned about the here and now, I need to be quiet. To allow God’s plan for me I need to allow him to fill not only my ears but my soul with his spirit. The same is true for each of us. God has a special plan for everyone. If we are quiet enough he will reveal it to us in his way, in his time. Spend some time being silent and allow him to reveal his unique plan for you.

What a Waste of Time

Does it seem there never seems to be enough time in the day? Do you feel overwhelmed by the massive amount of stuff you need to accomplish? Does your day lack focus? Are you jumping from project to project? Feel like you are spinning your wheels? Get to the end of the day and wonder what you accomplished?

Well it is time to take control of your life. Time management is one of the very essential factors in becoming successful in business. We are going to talk about three things you can do to become more productive. Please take the time to read this article. 1. To-do or not to-do. 2. Deal with it. 3. Live in boxes.

First, to-do or not to-do that is the question. The answer is, to do it; it must be on your list. Creating to-do lists is one of the easiest ways to become more organized in your day. To get started, write down five things you want to accomplish before the end of the day tomorrow. Do it right now, I’ll wait…Finished? Great, let’s move on. Congratulations, you have just started down the path of putting more time into your day. I would like you to add one more thing to your list and that is “Make my to-do list for tomorrow”.

The simple exercise of creating a daily to-do list helps you to become more organized in your time, it allows you to prioritize the tasks which face you tomorrow and helps you each day to hit the ground running.

A key component of making this process a success is to complete a task before moving on to the next. When you are trying to do several things at once you are inevitably going to be less efficient and the quality of your work will suffer. You may need to take larger projects and break them down into smaller pieces in order to manage the entire task. Doing so will make you better able to deal with larger projects.

As you think of other things which need your attention. Write them down to be added to your to-do list. This allows you to get back to the task at hand. I suggest you keep a notepad or day journal with you. This way when you get ready to work on the next day’s list you can refer to the notes you made.

Long term to-do lists are great for you to work out the details of large projects or concepts. You may want to keep a separate list of such projects. On a weekly basis you should set aside time to review your to-do lists and analyze the progress you are making on these long-term projects.

Next, deal with it. There are two major time wasters which you need to take care of. First is the mail. Sort it over the garbage can. If you are not in the market for red plaid snow boots, throw the advertisement away. Don’t need a magazine subscription to Underwater Basket Weaving Weekly, through away the advertisement. And just how many credit cards or home equity loans do you need, throw the advertisements away.

Once you have thrown the junk away. Sort the rest of your mail. File the bills to be paid and deal with them when you have planned to pay bills. I suggest you pay your bills at least once a month. And the Roseanne Barr theory of, “Pay the ones marked final notice and throw the rest away”, is probably not a good management decision.

Take care of the rest such as client correspondence and move on with your day.

The other major time waster is the internet. Deal with e-mail just as you do your regular mail. Get a good spam filter to eliminate your need to wade through all of the junk which shows up on your inbox. By the way, reading our e-mail should be an essential part of your time spent on-line.

Next, limit the amount of time you are surfing the web. And don’t give me the little Miss Innocent look. You have been busted. A recent report suggested American business loses several billion dollars each year from abuse of the internet in the workplace and small business is no exception. The internet can be a great tool. It can also be a great deterrent to getting your work done. If you must be on-line, go with a purpose and when you find the information you need, get off and get back to work.

The final suggestion is to live in boxes. Okay, so you are asking, “How is living in the box the big screen TV came in going to make me more productive?” This is not quite what I had in mind. The suggestion here is to set your daily schedule into specific time segments. To begin, you can log your activity for several days. Use a note pad, write the date at the top, and jot down each activity you do in the course of your day and how much time you spent doing it.

After, review your log and ask where you could be more efficient. What activities could you have done together to maximize your productivity. What things did you do which really did not need to be done or could have been done at a different time. Where were there large gaps of time where you could have been more productive?

Set aside a block of time (at least an hour) to do this next exercise. Now, take a day planner (we have time management sheets available, simply e-mail us at info@inthespiritconsulting.com and put “time sheets” in the subject line and we will send it to you.). Begin by placing all of your scheduled appointments on the time sheet. Next use the to-do list you created above and begin writing in the other tasks you need to complete. Give yourself adequate time to finish these tasks.

Once you have done this you can begin to evaluate how you can better be using your time. This is where living in boxes comes into play. Start scheduling tasks back-to-back. Schedule your appointments the same way. This gives you larger boxes to complete your other work. Now your day becomes more efficient and productive. You are managing your schedule, it is not managing you. And the likelihood you will be living in a box is reduced because you are more productive and profitable in your business.

There you have it. To-do or not to-do, make a list and stick to it. Deal with it, eliminate time wasters handle items once and move on. Live in boxes, create structure in your day and manage your tasks. Anything else is a waste of time!

Marketing Tip of the Month March 2008

Building a loyal customer base is essential to all small businesses. One great way to build customer loyalty is to remember them after they have completed their business transaction with you. Here are three simple things you can do to make your customer feel appreciated after the sale.
First, give them a follow-up call to assure they were satisfied with their products and services. A personal phone call is a great way to show you care and are concerned about their satisfaction. This call should be made within a day or two of delivering the final product.
Next, send a thank you note. A handwritten thank you note shows again you are genuinely interested in your customer and shows you value them. The note should be sent within two or three days of delivering the product.
Finally, be sure to stay in touch with your client. Remembering them on birthdays, anniversaries and other special occasions is great. Be sure to add them to your regular mailing list so they are getting your marketing pieces and newsletters. Create a referral program to entice them to share their experience with other potential clients.
Remember, your customers are the life-blood of your business be sure to take care of them and they will take care of you.

Inspirational Corner March 2008

Recent weeks have begun to take their toll. The dark gloomy days of winter seem to cast long across peoples spirits. In central Illinois this has been an extremely unusual winter. The thermometer seems to be on a bungee cord. Up one day, down the next. We have experienced below zero temperatures, snow, ice, unusual amounts of rain, thunderstorms, flooding and an exceedingly number of gloomy overcast days. There are days when it takes all of one’s effort to simply make it through.
This must have been what life was like for many before Christ was revealed as the messiah. Living in the darkness of sin and not knowing when the ‘light’ would come. Jesus reveals to us in the 9th Chapter of John, “As long as I am in the world, I am the light of the world.” Through restoring sight to the blind Jesus taught us all he was indeed the light which restores our sight. It is a light so powerful as to break through all darkness and reveal the messiah to each of us.
As we continue to use this Lenten season to reflect on God’s love for us and how he expressed his love, not by living, but by his willingness to die so we may live, we can rejoice in the light. So in the weeks to come, as we trudge out the final weeks of a gloomy winter, we can rejoice in the Light of a Risen Christ. Make this light shine brightly in your heart as you share His message of salvation and redemption.

Three Tips to Stay Financially Viable in a Stagnant Economy

Recent months have shown a slowdown in the national economy. For the first time in many years consumers are showing less confidence in their future financial security. Those businesses that rely on consumer’s discretionary income are especially susceptible to the financial pinch of a tight economy. As consumer confidence wanes it becomes more important for small business owners to pay attention to their finances.
There are three areas to be considered by business owners and managers as they evaluate the financial future of their business. Simply they are profitability, expense and debt management. Let’s consider each.
First, pay attention to your profit centers. First of all, it is important to know where your revenue is coming from. Review your profit and loss statement and look at the areas where you are generating the most net profit. This is the product line(s) you want to continue to focus your marketing efforts. Maximizing sales in these areas will be essential.
Evaluate the areas where you are generating less net profit. See if there are ways to cut production costs of these products. Consider combining less profitable products with those with a higher margin. In marketing terms this is called “bundling”. It allows for more profitable products to increase the overall profits when sold together. By bundling you also bring more value to your client. In a weak economy, customers are looking for the best value. This marketing technique addresses the clients’ desire for finding the best value. This additional value should translate to increased sales.
Next, managing expenses becomes essential in keeping your business financially solvent. Reviewing and understanding the expense lines of your profit and loss statement will help you to find areas where unneeded expenses can be reduced or eliminated.
Pay close attention to product inventory. Keep on hand only those products which you need for immediate production needs. Many suppliers will offer discounts for volume purchases. When cash flow becomes tight, as it may well, in a soft economy it is important to keep your assets as liquid as possible. You may have to pay slightly more for products but in the long run you may save. The reason being, if you have to borrow to cover expenses later on because you overstocked inventory, the interest you pay on borrowed money will very likely be more than the savings on purchasing the original inventory.
Now is not the time to make new capital expenditures. This sometimes can be the hardest thing to reign in. With new technology and products coming into the marketplace comes the desire to have the latest greatest new tool or piece of equipment. STOP! There are some questions you need to ask. First, how will this item improve the profitability of my business? If you cannot justify on paper how this investment improves your bottom line you should not make the purchase.
Next, take your emotions out of these decisions. When considering asset acquisition, compare products, price and performance before making a buying decision. Sleep on these decisions. If you happen to be attending a trade show or your visiting a supplier’s show room, don’t be pressured into making the decision on the spot. Before you consider these items you should do your homework and know exactly what the product can do to benefit your business. Remember, this is a business decision and you don’t want your desire to ‘have’ override the need and the potential return on the investment.
Finally, if you can’t pay cash for the item, you probably should not buy it. Taking loans on capital expenses in a downturned economy can spell disaster for your small business. As cash flow tightens it may become harder to make payments on business loans. Creating a system of asset replacement through depreciation management is a much more viable and safe way to manage asset acquisition.
The last area is taking care of debt. If you are currently carrying debt you should evaluate your interest rate and repayment method. High interest rate credit cards are bad news if you are unable to pay off your balance each month. Making minimum payments means you are only covering interest and maybe a small part of the principal balance.
A good option for many small businesses with debt is to refinance into a traditional bank loan. Generally the interest rates will be much lower and you can establish a monthly payment which will allow you to save money on interest and retire the debt much sooner.
Managing cash flow is also important to managing debt. If you have a good business plan and financial history of your business you may be able to consider a business line of credit. Many banks offer lines of credit for business. Generally the interest rate will be lower. This type of credit allows you to tap into the line when you need funds and repay as you are able. A line of credit takes strict discipline to use it wisely. In your business plan, the bank will want to see your projected cash flow as you ability to repay the credit line.
Bonus tip. Providing your clients with outstanding customer service is a great way to keep the business coming. Taking care of your customers needs and going beyond their expectations is essential to sustaining and growing your business.
So, in review, manage your inventory, keep cash in your pocket not in your supply closet. Don’t make investments into unneeded capital assets. Manage your debt load. Don’t take on more than you can manage and finally, take outstanding care of your customers.

Inspirational Corner February 2008

The Apostle Paul was stuck in a Roman dungeon facing the possibility of having his head chopped off. Instead of worrying about dying, he prayed.

And look at his word found in Philippians 4:6-7. Remember, a man sitting in a damp, dark, depressing dungeon penned these words: ""Don’t fret or worry. Instead of worrying, pray. Let petitions and praises shape your worry into prayers. Before you know it, a sense of God’s wholeness, everything coming together for good, will come and settle you down."
When you face a challenging circumstance you have two choices. You can lose heart and let worrisome thoughts control your mind; or you can pray about it
The gift of prayer is wonderful. Even more wonderful is having a loving God who not only listens but also answers our prayers.

Planning for the Bounty of Your Harvest

I love spring and I love to garden. With the gentle warm breeze comes a feeling of renewal. We begin to see evidence of this renewal in the budding of the trees and the greening of the grass. It is during this time of the year, in late winter, I begin looking at seed catalogs and deciding on the things I want in my garden in the spring.

Remembering the successes and failures in my past experiences helps me to choose seeds, which will improve my end results. To help me do this I keep a journal each season of the brand and type of seeds I planted. I record how well they did when I harvest from my garden. This process allows me to select the appropriate seeds and not repeat mistakes I may have made. Not only in the seed selection but also at how well I managed my garden.

There is great satisfaction of putting seeds in the ground and seeing the plants burst through the soil. In many ways it is a wondrous event. From such a small seed grow plants, which produce magnificent flowers or plentiful vegetables. Planting and harvesting can be very rewarding.
We can receive the same great rewards in our business. We just have to learn how to sow the seeds and reap the harvest. The planting begins with planning. And now is the time to be planning.

For many small business owners this is the slower time of the year. It makes it the perfect time to begin planning for your future success. Just like me and my garden now is the time to be selecting the ‘right seeds’. What are those things, which will grow and bear fruit in your business? Look at what has been productive for you in the past and look at ways to improve on its success.

Evaluate what has not worked well or where you may need to add to your marketing plan to improve your results. You should ask questions such as, "Where do we need to increase cash flow?" "What product lines and services are the most fruitful and how do we replicate and improve on those successes?" "Where have we not done so well, and why?" "What tasks seem to get in the way of my success and how do I put my focus back on my success?"

Answering these questions and creating a plan to address the changes needed to improve your success can help you become more satisfied with your end results. With this in mind…Plan, Plant, Reap and Enjoy the bounty of your harvest.

To your success,
Stacey Friedlein

To My Son Kyle

This was a letter I wrote to my now fourteen year old son shortly after he was born. I had the privilege to read it to him for the first time at his confirmation this past May.

August 29, 1993

Dear Kyle,

I was sitting with you in my arms today and watched you sleeping. I couldn't help but notice those tiny little hands.

As I sat there and examined your tiny little hands, I couldn't help but wonder what would become of those hands in your lifetime. Would they toil in hard labor, becoming callused and hard? Maybe they would pen words that would inspire generations to come. Possibly they would point the way as you lead men into battle. Maybe they would mold great works of art from a clump of clay.

Could they play inspired music to soothe the soul? Would they produce the cure for dreaded disease? Maybe develop the plan for a leveraged buyout. Is it possible that they could hold the bat that wins the deciding game of the World Series, throws the winning touchdown in the Super Bowl or sinks the twelve-foot putt to win the Masters?

And as I sat there I also thought of the things I hoped for those hands and the little man who owned them.

I hope that they will serve you well in all you try. I hope you will learn from their exploration of this big old world. May they allow you to hold on to all that's important in your life.

As they wipe the sweat from your brow, may you find satisfaction in a job well done. May they defend you well when faced with adversity? May they also hold you back to reason before fighting. It's O.K. to back down but never back away from those things that you truly believe.

I hope these hands will know the gentle touch of a good woman and loving children. May they never be too busy to hold those things that are truly important in your life? And even though they may grow tough and hard may they also be gentle enough to reassure and comfort those in need.

In closing, I want to remind you to get down on your knees and fold those little hands to give thanks to a loving and caring God that makes all we have in this life possible.

Love,
Daddy

Energy To Succeed

In recent weeks I have been leading my church congregation through the discernment of our future. It has really come down to focusing on the ministry of our church and whether we as church members have the energy to engage in a new ministry focus.
We are a small congregation with a small core group of members who carry the bulk of the load. It’s the eighty-twenty rule in action, twenty percent of the members doing eighty percent of the work. What we are discovering is the twenty percent are very tired. For several years we have worked hard to maintain a building, meet payroll and care for the financial needs of our ministry. We have been in survival mode.
Most of our energy has been expended working on the church instead of in the church. The realization is we can no longer stay in the “status quo”. If we are to survive and more importantly thrive, we must change our focus to ministry and mission. In working towards that goal our church council has created a ministry plan and are now holding a series of congregational meetings to gain input on this new direction. The options presented to our congregation were to create a ministry plan, which would revitalize or members, stay in the “status-quo”, or turn our assets over to the synod and lock the doors.
The new ministry plan is radical and bold. We refer to it as an “All-In” plan. In this plan we would liquidate all of our assets including our current building, the land we have purchased for a future building and devote all or our resources to ministry. This would mean a temporary worship space and a radical departure from our past. Sort of dying so we can live.
You might wonder why I am sharing this with you. It’s because I believe there are valuable lessons for you and your business in the process my church is now going through.
First, how are you doing? Are you tired and burnt out? Feeling overwhelmed by the day-to-day responsibilities of your business?
Now, Is your business vital, meaningful, and serving the purposes for which it was created? Where is the energy? The vitality? What is the mission you are on in your business? These are tough questions. However, they are vital to sustaining and growing your business.
Most importantly, what are you going to do about it? You may not need a radical departure from what you are currently doing. Maybe you need to tweak and modify one or two key elements to move from survival to thriving.
But, if you are so beaten down and beaten up by your business that you no longer feel you have the energy to continue, it is time for an “All-In” plan for your business. The question for you becomes, “What things do I need to do to change the scope and focus of my business to achieve the goals I have?”
Consider this as a process. Begin by thinking about the core of your business and why it has become essential to what you do. You may find the core is the problem. It may be too time consuming and unprofitable to continue.
The energy you are expending may be in the wrong places. Are you spending your time on tasks and in areas of your business, which are not helping your business to grow? You need to be working in your revenue streams.
The common quote is “working on your business, not in your business”. This simply means you need to be doing the work of growing your business. Not spinning your wheels in tasks, which take your focus away from the important work of your business.
The process of identifying and capitalizing on those things, which will re-energize you, revitalize your business and allow you to experience the success you desire begins when you recognize the need to make change.
So like my church, you have choices. The choice to stay in the status quo, to recreate your business and move in the direction which will make you succeed or lock the door and recognize you are not equipped to succeed in this business. You see the choice is yours. If you choose to create a new plan or tweak your existing plan, contact us. We can help

November 2007 Inspirational Corner

So whether you eat or drink or whatever you do, do it all for the glory of God.
1 Corinthians 10:31

God doesn’t care! That’s right he doesn’t care. He doesn’t care who we are, where we live, what we do for a living, how much money we do or do not have, our social standing, our political affiliation, whether we are a fan of the Cubs, the Cardinals, the Bears or the Rams. It doesn’t matter to him whether we use a Nikon or Canon camera.
But he does care! He cares for us as his children. The way we are loved by our parents and the way we love our children. Unconditionally, without strings, without expecting anything in return, without us loving him. When Christ died on the cross we were all given the gift of the kingdom. We didn’t earn it, we can’t buy it, and we sure don’t deserve it. It is simply there for us.
Pretty amazing. It is when we understand and accept this gift that we can truly be set free to live his purpose and do what he intends for us. Share His love with those around us. Our family, our friends and those we have the privilege to create our art. Work with love, work with passion, and work with the knowledge you are a special child of God

Digital Press Books

Have you seen the digital press books, which many labs are now offering studios? They come in a variety of sizes and page configurations. And the prices are incredibly reasonable.
These books have tremendous marketing potential. Here are a few suggestions:
Reunion Books-Often when families get together they are not prepared to have formal portraits made. The press book gives you a great opportunity to provide a treasured keepsake for all of the family members. The book can contain both posed and photographs of the family and the reunion. You can include individual family groups, generation photos and family history pages and copies of old photographs of ancestors.
In addition to the books you can sell individual photographs to the families and this is a great opportunity to offer copy and restoration services for those old family photographs.
The same concept can be used for school class reunions or military reunions.
Community Event Books-These books provide a great opportunity to offer a photographic record of significant community events, such as, community anniversary celebrations, local festivals, fairs or military and historical reenactments.
Church and Community History Books can provide a record of church milestones and histories. This would be a great add-on sale to church directory photographs. Consider photographing significant landmarks in your community and creating a keepsake, which would include a history and detail of each landmark.
Another concept would be to create Children’s Storybooks. Tell a story be creating theme session. Photograph the child to illustrate the story and then create a storybook. This is sure to be a treasured keepsake for the child, parents and grandparents.
Other possibilities include subject books of general interest. These may include a book of spring flowers, old barns, butterflies, etc. You may consider photographing interesting personalities in your community as a “Faces About Town” collection
There will be some production time involved. However, compared to the time you may spend manipulating one image to create a digital presentation to your client, your return with these books should be much better.
These books would work well as a fundraiser for your favorite charity. Have them sell them and return a portion of the sales back to the organization.
Two labs that offer these products are H&H Color Lab on the web at hhcolorlab.com and American Color Imaging at www.acilab.comIf you need additional assistance in how to price or market these products, please contact us at info@inthespiritconsulting.com

September 2007 Inspirational Corner

As Jesus and his disciples were on their way, he came to a village where a woman named Martha opened her home to him. She had a sister called Mary, who sat at the Lord's feet listening to what he said. But Martha was distracted by all the preparations that had to be made. She came to him and asked, "Lord, don't you care that my sister has left me to do the work by myself? Tell her to help me!" "Martha, Martha," the Lord answered, "you are worried and upset about many things, but only one thing is needed. Mary has chosen what is better, and it will not be taken away from her."
Luke 10:38-42

Have you ever felt like Martha? Consumed by the all of the projects, activities and responsibilities of your daily life. So busy with these demands that you lose focus of what is really important.
Stephen Covey writes in his book “First Things First” about the importance of living by the compass and not the clock. In other words paying attention to what we should be doing instead or what we feel we have to be doing. In other words, doing what is important not what is urgent.
So many of us get caught in the rat race we forget to stop and consider the things, which are really important to us. Consider this. Is it more important you complete the entire stack of paperwork before you leave the office or that you are able to see your son play football? Paperwork is urgent, your kid’s are important.
Jesus reminds us in the Bible text above that we are to be more like Mary, focus our time where it is important. And the most important is our relationships. Not just our earthly relationships, but also most important of all our relationship with Him. So throw away the clocks and replace them with compasses.

Add-on Products Help Build Bottom Line

Who knew a $1.00 add-on product would take the business owners and their employees on a cruise. As a way to motivate their sales team a small business owner decided to create a rewards system for employees who sold specific products.

In this case the portrait photography studio was offering surface modifications on their proof products. The benefit to the customer was a more finished looking photography which now had a protective coating. The cost to the customer was $1.00 in addition to the price of the print. The cost of this was very low and provided a great additional revenue stream.

Each time this surface modification was sold the profits were deposited into a special bonus account. At the end of one year there was enough money to take the entire staff on a cruise.

This program can work in any business. Think about the products and services you offer. What things can you market as add-ons to enhance your customer’s experience with your business?
Once you determine your products, create a plan for implementation. A rewards system for your employees, as we discussed above, is a great way to get them on board and excited about increasing your sales. When you can get your sales staff excited about selling it will improve not only the sale of the add-on but in selling more product and service.

There are a number of ways to implement this kind of program. You can create special products, which are featured, in your marketing, run promotions, which include specialty products above your promotional offer or simply using suggestive selling techniques to entice your customer to buy.

Employee rewards can vary dependent on your goals. It may be something as simple as a gift certificate for dinner out or movie tickets. You may also consider offering paid time off for employees who reach sales goals. On the other end of the spectrum would be trips and larger gift items.

Use your imagination and creativity to help build sales, improve employee morale and increase your bottom line. If you need help or more information with this program, feel free to contact us at info@inthespiritconsulting.com.

An Employee Covenant

Motivating employees to step-up their job performance is often one of the most challenging things for a small business owner. It no longer is enough to provide a good work environment and a fair compensation package. This is happening for a variety of issues including education social influences.

Many employees today have sense of entitlement. They feel by simply showing up they are entitled to a paycheck. We see it in retail and service businesses. Common courtesies once understood and practiced are no longer.

Here a couple of examples. On a recent trip to a fast food establishment there were a group of employees standing in the parking lot. Apparently they were on a break. Never the less, imagine the surprise to hearing them shouting expletives and showing obscene gestures to bypassing cars. As a further shock, one of them was the manager on duty.

On another occasion, a group of business associates were dining in a restaurant. One in the group asked for a drink refill. The waitress flippantly said, “When I get around to it.” Two things you should know. The individual who had made the request was paying the bill and we were the only group in the restaurant. Needless to say the gratuity became non-existent.

These examples are from the food service industry. However, this problem exists in all industries whether it is food service, retail or the corporate environment.

Now the question becomes how do we motivate our employees to perform and not just meet but exceed expectations.

One very good way is through the use of a personal covenant. It works like this. During employee reviews (and if your not having these as least every six-months now is the time to start) you provide the employee with a form with “I promise to…” written across the top,

During the review you explain to the employee that they are to write on this form the things they will do in fulfilling their position with your company. It can include everything from showing up on-time, a time-line for completing assigned tasks, reaching sales goals, completing projects on time and anything which relates to their job performance.

Ask them to spend time and complete the form during the review. Discuss their list and set quantitative and measurable goals. Then you and they sign it. This form becomes an important tool in future employee reviews.

At the future review you now have a measuring stick, which the employee created, to measure job performance. You should find the employee feels much more accountable based on the list they created. Now they are being judged on what they said they would do, not what you said they should.

This process allows for the employee to feel they are an essential part of your company. It helps them to understand the importance of their doing their job correctly and in a timely manner. You should see a boost in employee morale and job performance by using this system.