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The Up and to the Right | Small Business | Practical, Actionable, Sustainable Improvements
51 minutes | Oct 1, 2021
Up and into the Future! | Up and to the Right | Episode 62
Business Pivot TriggersPractical Approaches to PivotsWhat's Next for Up and to the Right?Contact Beyond 50 Percenthttps://email@example.comIG & TW @beyond50percent
57 minutes | Aug 17, 2021
Happy Lucky’s Teahouse Owner Interview | Kari and George Grossman | Up and to the Right | Episode 061
In this episode of Up and to the Right I'm excited to have Kari & George Grossman owners of Happy Lucky's Teahouse. We'll talk about getting started in 2009 and adapting to a wildly changing business environment in 2020.About Happy Lucky's With a commitment to quality, selection, and community, Happy Lucky’s creates a highly interactive, informative, and immersive tea experience. Whether you are already a tea lover or new to the brew, you’ll find the flavor, aroma, and feeling that speaks to you from over 200 loose-leaf options on our Great Wall of Tea.Find Out More About Happy Lucky's Teahousehttps://happyluckys.com/970-689-3417
40 minutes | Aug 15, 2021
2021 Small Business Trends | Up and to the Right | Episode 060
Is it click bait?To be fair, click bait isn't my plan. In fact, I think it's important that we separate the small business trends for 2021 that matter to us as owners from the 'trends' over which we have no agency, no resources to follow or that simply don't apply.Let's figure out which windmill to chase!See the full show notes: https://b50p.info/uattr060
31 minutes | Jul 27, 2021
The Best Book for Building Small Business | Up and to the Right | Episode 059
Best Book for Small BusinessShow Contents00:00 Pre Show00:16 Program Start01:20 Introduction01:41 News & Updates04:40 Let's talk about reading!16:43 Let's get practical!17:35 Sidebar on book length...19:30 Working a Book24:48 My New Reading Experiment30:07 Show Close & Contact InfoI asked the internet... "What book was the most effective in helping you make REAL CHANGES to your small business?"In this episode I'm going to share how the internet replied!Let's get... well read!Contents:Chapters Added After the ShowIt's time to roll up our sleeves and get to work!Connect on SocialLinkedIn | https://b50p.info/sklinkedinInstagram | https://b50p.info/instagramFacebook | https://b50p.info/facebookTwitter | https://b50p.info/twitterTwitch | https://b50p.info/twitch
36 minutes | Dec 31, 2020
Small Business Priority | 4Get 2020 Time to Move On | Up and to the Right | Episode 058
Full Show Notes: https://b50p.info/uattr058Small Business Priority | 4Get 2020 Time to Move On2020 is finally over. There will be plenty of blogs, podcasts, articles and videos reviewing 2020 and predicting 2021. Not here... not today.As small business owners, we need to focus on what IS... NOW and figure out what needs to be done at this moment in time to move our business forward.Your time is a limited resource. How do you know what to work on? I'm going to throw out a quick way to think about what matters to you now and some tips to keep it at the top of mind.Let’s get… focused!
33 minutes | Dec 17, 2020
Starting Up a Small Business - What is a 'Small Business'? | Up and to the Right | Episode 057
Show Notes: https://b50p.info/uattr057What is a Small Business?Over the years I've come across a lot of misinformation about what it means to be a small business. Sometimes people think it's determined by the number of employees, sometimes by revenue, even by the corporate structure. As we'll see below it's actually easy to understand why there is confusion identifying what is a small business.Defining Small BusinessSo, if there's so much confusion around how to define a business as small then how can we go about doing it correctly?The good news here is that while it isn't as easy as a single criterion that we can point to, there is a place we can go to find out exactly how to classify our own business as small or not.There are three pieces of information that you're going to need to put all of this together.Your NAICS CodeThe Number of EmployeesAverage Annual Revenue (based on three years)Once you have those three pieces of information you'll be able to get the right answer for answering the question... "What is a small business?" at least, for your case!
31 minutes | Dec 10, 2020
Starting Up a Small Business - Small Business Regulations | Up and to the Right | Episode 056
Full Show Notes: https://b50p.info/uattr056You've come up with a great business idea. You've started your business and things are going great when out of the blue a great potential customer asks: "What's your export control code?"Don't know? You're not alone and export control is just one of the seemingly endless regulations that may (or may not) apply to your small business.Let’s get… regulated!In short, small businesses are regulated by largely the same laws that regulate larger organizations. The only difference is that there may (or may not) be provisions in those laws that allow small businesses to bear a lighter burden in some ways. While there may be some provision for small business in the regulatory environment, it is equally true that small businesses are still required to adhere to regulations that cross a wide variety of areas which we'll cover.I want to dispel the myth that forgiveness rather than permission is a risk that small business owners should avoid. It is better to ask for implementation than forgiveness... every time.
30 minutes | Dec 3, 2020
Using the Power of Leverage in Business (in a good way) | Up and to the Right | Episode 055
Show Notes | https://b50p.info/uattr055It's time to roll up our sleeves and get to work!Physics in Business. At first, it might not seem like the two are closely connected. I've found that the principles we use to describe our physical universe often have parallels in the business world.The power of leverage in business is often thought of as a negative. Something used to push someone else down in a negotiation or to artificially inflate value. These are the uses of leverage that we won't be talking about here. We are going to talk about the necessity of leverage and why understanding it and, in fact, embracing it is elemental to creating, operating, and sustaining a valuable business.Let’s get… leveraged!
35 minutes | Nov 19, 2020
What did Newton Know about Action in Small Business | Up and to the Right | Episode 054
Get the show notes: https://b50p.info/uattr054I put a lot of effort into running and growing my business. I'm sure you do too!What do we get for that effort? I'm not talking about. the long-term effects of our actions resulting in new revenue or market growth.What reaction do we expect from this particular action?Let’s get… mechanical!
44 minutes | Nov 12, 2020
Working ON Your Business With FLOW and Megan Denae Anderson | Up and to the Right | Episode 053
Get the Show Notes: https://b50p.info/uattr053If you picked two words to describe entrepreneurship they would very likely be longly and busy. Really... REALLY busy!I can speak from personal experience that being a small business owner can leave you feeling alone as well as fill your time with a stream of seemingly critical tasks.How can entrepreneurs like you find kindred spirits that share common experience AND get the opportunity to work ON your business by accomplishing focused work?Let’s get… into the FLOW!Accelerated Business Consulting: https://www.beexcellent.biz/
29 minutes | Nov 5, 2020
What did Newton Know about Making an Impact as a Small Business | Up and to the Right | Episode 052
See the full Show Notes: https://b50p.info/uattr052What did Newton Know about Creating Impact as a Small Business?Everything we need to know about making an impact as a small business... Newton knew in 1686!? Really?Newton’s 2nd Law states that Force = Mass * Acceleration.How can understanding one of the fundamental laws of physics help us make an impact as a small business?Is changing the world as easy as Force = Mass * Acceleration? Well yes... and no.Let's rewrite that a bit. Mass = ResourcesAcceleration = MomentumForce = ImpactHow about Impact = Resources * Momentum?You get the idea. There are advantages to thinking about business from the perspective of physics.Let’s get… mechanical!
26 minutes | Oct 29, 2020
What did Newton Know about Small Business Communication? Objects Rest and Motion | Up and to the Right | Episode 051
Everything we need to know about small business communication... Newton knew in 1686!? Really?An object at rest tends to stay at rest unless acted upon by an outside force.An object in motion tends to stay in motion in the same direction unless acted on by an outside force.If these trends sound familiar ... A customer who is happy tends to stay a customer unless there's a sale at a competitor.A rock star employee tends to stay a rock star unless we eliminate performance bonuses.You get the idea. There are advantages to thinking about business from the perspective of physics.Let's get... mechanical!
28 minutes | Oct 22, 2020
Draining Content Creators Dry | Up and to the Right | Episode 050
Show Notes: https://b50p.info/uattr050Consuming content has become a byword. We all want to learn and grow personally and professionally. To that end, we read or listen to books, watch videos, take online courses, and consume any number of other types of content.Have you ever stopped to consider whether or not the content you’ve consumed has actually generated a beneficial transformation in your business?How do we get the most benefit from the information we read, watch, or listen to? How do we drain these content creators dry?Let’s get… draining!
31 minutes | Oct 15, 2020
Small Business Startup Tips... You May Have Missed | Up and to the Right | Episode 049
Show Notes: https://b50p.info/uattr049A small business startup can be overwhelming. So much so that many people choose not to and many of us who do start small businesses often miss a piece of the small business puzzle.In this episode, I’m going to share three things you need to do when you’re starting your business that might not be on your list… yet!Let’s get… started!
41 minutes | Oct 8, 2020
When Should I Hire a Consultant? | Up and to the Right | Episode 048
Full Show Notes: https://b50p.info/uattr048When Should I Hire a Consultant?Hiring a consultant is bringing an ‘outsider’ into your business and can be an intensely personal experience.What’s in this episode for you?!When should you hire a consultant?We’ll talk about hiring consultants in small businesses and my own 2020 adventure in bringing help into my own business.There are 3 consultants every business owner should have… what are they?You’ll find highlights below. Watch the livestream recording or listen to the podcast version on your favorite podcatcher for all the details!When Should I Hire a Consultant?What is a Consultant?In order to understand when it’s time to bring in a consultant let’s talk, first about what a consultant is.This may seem basic but it’s important to be clear about it.A consultant is someone from outside your company that brings needed expertise or resources that will benefit your business.Most often we think of engineering services, marketing or business management ‘consultants’ with varying degrees of trepidation or even loathing.The trepidation and loathing is a product of consultants who don’t take their craft and customers seriously. I’m sorry if you had that experience.For what it’s worth… to me small business is as serious as the 50% of the economy that it represents (which means I take it seriously).When Should I Hire a Consultant?I have found two criteria that make this very simple.When you find yourself needing to accomplish something that you’re not objectively qualified for.If you don’t like doing it but it still needs to get done.How Do I Know What to Hire a Consultant for?Break down what needs to be done, what skills are needed to achieve those goals, and then match those to your own skillset.Get referrals from colleagues who have experience with a consultant in an area you need who got results similar to what you’re looking for.Get to know the experts you're considering. You’ll get a lot more benefit from someone you enjoy working with.Let's roll up our sleeves and get to work!
65 minutes | Aug 12, 2020
Jeff Allen with Allen Service | Pivot to Profit - 002 | Up and to the Right
Jeff Allen, Allen Service, Plumbing, Heating, and Air Jeff, his brother Mike, and the team at Allen Service, Plumbing, Heating, and Air, have been operating as an ‘essential business’ through the current crisis. A small business succeeding during the COVID-19 pandemic, Jeff and his team prioritize employee and customer safety while still providing quality services. I’ve always thought that heating, ventilation, and air conditioning (HVAC) systems in our homes were for comfort and convenience. I learned from Jeff that our indoor air often has more contaminants than the outside air and that modern HVAC systems can clean the indoor air we breathe, making it safer. They have been able to not only operate during the current crisis but offer products that can reduce the contaminants and contagions in our homes. As you can imagine, after nearly 60 years in business Allen Service has been through a lot, and Jeff shared his experience and practical action you can adapt to your business situation. Contact Jeff & Allen ServiceAllen Service, Plumbing, Heating, and Air“The name you know and trust.”970-286-0359https://www.allenservice.com/ A Brief History of Allen Service in Northern ColoradoJeff introduced us to Allen Service as the name you know and trust in plumbing, heating, and air in Northern Colorado, serving only residential (non-commercial) customers. After nearly 60 years as a local small business, it was interesting to hear how and why they chose to move away from commercial customers. One of the key takeaways was they have optimized their business, processes, and training to focus on and deliver the best possible service for a specific customer segment. By concentrating their efforts, they have been able to consistently grow their business while maintaining high-quality service. Allen Service as an Essential BusinessColorado classified the plumbing, heating, and air conditioning industry as ‘essential’ during the economic shutdown. This designation allowed Jeff and his team to hone their business processes to deliver critical services during this challenging time in a way that has minimized the risk to Allen’s customers as well as their team members. As we all spend more time in our homes to reduce our exposure to the pandemic, we become more aware of issues related to our HVAC or plumbing systems, which Jeff and his team can address safely. Additionally, as I mentioned earlier, I learned that our indoor air quality is often lower than the air quality outside. There are modern solutions that can reduce allergens, contaminants, and even contagions from our home environment. Zero ContactWhen the pandemic began to impact business operations in the US significantly, Jeff and his brother Mike made adjustments to their work processes to create a ‘zero contact’ service. They achieved this by adding additional personal protective equipment (PPE) such as masks to their existing practices.Customer Safety & COVID-19Allen technicians have a defined procedure that Jeff details during our conversation that allows them to contact the customer and perform the service in a way the eliminates contact between the technician and the customer and minimizes the technician’s impact on the home.Employee Safety & COVID-19While keeping zero contact between the customer and service technician is an excellent step to keeping employees safe, the management team at Allen Service has also taken steps in their offices to reduce employee interaction and possible contamination. Jeff and Mike’s extra precautions have reduced the risk of transmitting the virus among their team with excellent results. Indoor Air QualityI’ve known Jeff for a while, and I knew he would have a lot of great experience and expertise to share. I didn’t realize that there is technology available to us through our HVAC systems that will help remove the allergens, contaminants, and contagions from our indoor air. Jeff shared that by installing these economical add-ons to homes, their team has an immediate impact on the health and quality of life of Allen Service customers. Managing a Remote WorkforceMany of the Allen Service team members are now working remotely to minimize the risk of exposure. While this takes some getting used to, it has provided the opportunity for Jeff and his team to experiment with operating processes that offer benefits that employees enjoy, improving the work experience for his team. Actions & ResultsJeff and Mike Allen have demonstrated that small businesses can create ways to operate safely during a pandemic. By taking stock of the facts, they developed policies and processes that keep their customers and team safe while still delivering the quality service northern Colorado expects from Allen Service, Plumbing, Heating, and Air. Look at the facts, not the fear. Identify how your business can have a meaningful impact. Take care of your customers and your team. Wrapping it all Up Do you have an innovative solution to a COVID19 problem or another difficult business situation? Email me at firstname.lastname@example.org to be a guest on the show… share your message! Click the link above or use your favorite podcatcher to listen to the full episode. Thanks for watching or listening! Up and to the Right is live weekly - check the Podcast Page for details about when we're live and where! You can subscribe to the Up and to the Right podcast on iTunes, Stitcher, Google Play, TuneIn, and now there’s even a playlist on the Beyond 50 Percent youtube channel!
42 minutes | Aug 5, 2020
P2P - How the Pandemic Affected My Businesses | Pivot to Profit - 001 | Up and to the Right
Full Show Notes & Resources: https://b50p.info/p2p001Being a small business owner is challenging in the best of times. During periods of economic uncertainty that challenge becomes more difficult. In 2020 we're faced with those economic concerns but they are combined with a serious global pandemic and the groundswell of difficult but necessary social and cultural shifts. Any one of these would be stressful enough on its own but combined it is understandable that many of us are under a great deal of stress. Social distancing has, in large measure, removed some of our traditional coping tools, many recreations and social support. I hesitate to use the term 'unprecedented' which seems to be getting thrown about; however, it's clear that we are living in a difficult time. As I thought about all of this I wanted to find a way to pull back the curtain on our isolation. Rather than just finding solace in shared difficulty I wanted to produce a show that allowed business owners to share their own experiences and thoughts with other owners as well as share with the customers the best way to safely support local businesses. Let's pivot to profit! Introduction to the Pivot to Profit Segment In this first episode of my new segment I just want to let listeners know what to expect and share a bit of my own experience on the two businesses I own and operate. My Three Goals: You are NOT Alone! Share Experience & Successful Actions Share Safe Ways to Conduct Business First of all the regular episodes of Up and to the Right will continue. Pivot to Profit is a supplementary audio only production designed to complement the regular show. The focus of Pivot to Profit is to have real, on the ground, discussions with business owners just like you. I want to make sure that business owners know that they are not alone during this difficult time. There are a lot of us out there coping with similar problems. We can learn from each other and that’s a huge part of the value of this segment. The second piece is the opportunity to share actions both successful and less so in order to help each other learn and grow and continue to operate during this crisis. Finally, I want to provide business owners the chance to share safe ways for their customers to purchase products & services. This may provide listeners with ideas for their own business as well! My COVID19 ExperienceAs you probably already know I own and operate two distinctly different companies; Directed Energy & Beyond 50 Percent. Directed Energy provides high voltage & high current pulsed power equipment for a variety of international markets. It’s a niche business but relies on the international economy and the needs of a relatively narrow list of customers. Beyond 50 Percent is a service based consulting practice I started to help entrepreneurs and small business owners. Directed EnergyThe impact of the pandemic on Directed Energy has been very serious. Our sales dropped substantially and after a few months of reduced income I had to make the decision that business owners never want to make. I had to let team members go. These were people I’ve worked with for over 10 years so they are friends as much as coworkers. One thing that made the situation better was that I have always been very up front about the financial position of the company and going into 2020 that made it clear that employment positions would have to be eliminated. I’ve reduced expenses and worked with vendors to put Directed Energy in a cash neutral position. The good news is that we are able to continue operating, serving customers and shipping product. The takeaway is being able to recognize the action required and taking it even when you really… really… don’t want to. Beyond 50 PercentThe business for Beyond 50 Percent is significantly different than that of Directed Energy. As a professional consulting services company there is no inventory to hold and no direct employees aside from myself. I use carefully selected independent contractors for accounting, marketing, graphic design, web development and other business services. This provides much more flexibility and reduces the direct impact of COVID19. However, I had decided to put more of my time into Beyond 50 Percent and arrange Directed Energy so it needed less of my direct input. For Beyond 50 Percent I’ve had to change my growth expectations for 2020… not what I’d hoped for but I’ve taken time to hone my messaging, tweak the website and take care of other ‘background’ business operations so I’ll be better positioned to move forward. You’re Not Alone!As I mentioned before and I want to say it again because business owners often feel isolated. “You’re not alone!” There are a lot of us out there and we really are all in this together as a small business community. Actions & ResultsThe actions I’ve taken have been:Stay in Control of CashReduce Costs (even when it hurts)
39 minutes | Jul 9, 2020
Practical Profit in Small Business | Up and to the Right | Episode 047
Reminder: What is a Business Principle?When I talked about what made a business principle I ended up here:A business principle is a concept that is both foundational and relevant to all businesses.This set a pretty high bar when it came to identifying what were business principles and what were strategies, missions and tactics.Profit made the cut and that’s what I want to cover today.Why Profit?Profit is the standard measure by which companies large and small are evaluated. While profit alone doesn’t create a full picture of a business, it is used frequently as a shortcut or first order tool to determine how a business is doing.More importantly, profit is a good indicator of the direction of future cash flow. As a rule, if net revenue is positive and our business is profitable then it is generally true that cash flow is also positive. Of course, there are a lot of factors that impact this but it’s a good start. A Note about Non-ProfitsAre non-profit organizations (NPO) exempt from profit concerns?Yes… and no.While it’s true that non-profits don’t have to worry about making a reportable profit, they do have to worry about the direction of their cash flow.When it comes to NPOs the ‘profit’ they need to be concerned about is how well they are able to magnify the effect on a cause of a donor’s contribution over the ability of the individual donor to make an effect themselves.Get OK With ProfitBefore we go any further we need to get okay with profit. There’s a lot of misunderstanding and misinformation about business and profit in general. The term ‘profit’ itself seems to have gathered a negative connotation in today’s popular culture. If a news story comes out about a large company doing something that appears to put profit before people then it reinforces this negative stereotype.Well, I’m here to tell you that businesses need to focus on, be comfortable with and even seek (yes… SEEK) profit.We use the cash generated by our well run business to: Run the Business Pay Down Debt Increase Working Capital Fund growth Create an Emergency Fund Give to Charity Create Owner Value These and all the ones you can think of that I didn’t list are reasons that we need to be comfortable with and plan our businesses around profit.Factors That Put Pressure on ProfitAs you can imagine there are a number of factors that put pressure on profit. Some put pressure to reduce profit and others add pressure to increase it.Downward Pressures Competitive Landscape Customer Expectations Economic Environment Upward Pressures Growth Funding Owner Return & Benefit Operating Costs Savings & Emergency Planning Future Company Valuation Ethical Considerations - How Much is Enough?So… the inevitable Question… “How much is enough?”Honestly, this is a question only your conscience and your customer base can answer. My input on this is pretty simple. If you offer a product or service that is either unnecessary or easily replaceable with an economic alternative then you are free to profit to whatever extent the market will bear. If you sell wakeboards for boating or jewelry you can let the market forces guide your profit. This is because neither of these are necessities.I like the example of a Rolex vs. a Timex. Rolex is free to profit as much as their customers will allow because Timex and other watchmakers offer economical alternatives so customers are now bound to the Rolex product.When you offer necessities like food or medical products/services there is, in my opinion, a moral duty to develop a business model around ‘reasonable’ profit.I realize that ‘reasonable’ is ambiguous and represents a moving target. I think of this as a thought experiment and guideline to consider depending on your business.Basically… something to think about.Service Based Businesses & ProfitIs it possible for service based businesses to achieve 100% profit? You know… Revenue - Expense = Profit with “0” Expense?Well… no.Your service based business will always have one expense and that’s you. If you think you’re achieving 100% profit you are not paying yourself.To better understand the operations of your business pay yourself a competitive salary and evaluate your business with its true costs in mind.Practical ActionWatch Your P&LRegularly review your Profit & Loss Statement (aka Income Statement) and look for profitability and trends over time.Use this information to restructure the parts of your business that impact your profit.Use Profit to Test Business ChangesYou can use profit to test new products, price points, markets and customer segments.Plan for ProfitWhether you offer physical products or professional services start with the idea of profit when you design your offering. If a product can’t meet the profit requirements of your business it needs to be redesigned, replaced or simply discontinued.How do you achieve profit? Drop a comment with your thoughts. Connect with me to keep in touch and share ideas!
46 minutes | Jul 2, 2020
Practical Cash Management in Small Business | Up and to the Right | Episode 046
Reminder: What is a Business Principle?When I talked about what made a business principle I ended up here:A business principle is a concept that is both foundational and relevant to all businesses.This set a pretty high bar when it came to identifying what were business principles and what were strategies, missions and tactics.Cash management made the cut and that’s what I want to cover today.Why Cash?Using cash instead of a form of barter system allows us the flexibility to delay purchases, store value and sell goods & services to one market while purchasing goods and services from another. This provides for a wide variety of products and services and flexible timing for purchases.Why is cash management a business principle?Managing cash is essential for business. Without proper cash management businesses cannot continue to pay employees and vendors; purchase inventory or expand and grow.Additionally, cash management is applicable to all businesses since all businesses must have transactions in order to continue operations.Cash Considerations for Business Cash vs. Profit Cash In Cash Storage Cash Out Cash Planning Cash vs. ProfitWe need to get this right from the beginning cash and profit are related… but not directly. Positive cash flow means that the cash you have coming into the business is greater than the expenses, investments etc. that you must pay and does not take into account a number of transactions like depreciation that will affect your profitability but not your cash.If you’re not clear on this, discuss it with your accountant so you get a general understanding of these differences.Profit is an accounting construct used for business analysis and taxes. Cash InHow cash is collected can have a significant impact on our cash management and our expenses. Delayed cash in from customer credit and credit card fees add to the complexity of cash management.While there’s no ‘one size fits all’ plan it’s important to understand the consequences of your cash collection and to be intentional about it.Cash StorageIn many ways the literal storage of cash is less an issue than it once was there are still a number of considerations to keep in mind if you do store actual cash as well as where you put your money (checking, savings, money market, investments, safe… etc.). Cash OutOne of the most important aspects of our relationship with cash is how we use it. Who has access and authority to distribute cash (write checks, pay bills etc.). Who has access to using the company credit card (yeah… that’s cash too really)?Cash PlanningAs important as understanding how cash is used another key is when it is used. Business owners must stay in control of the ‘when’ of cash. Remember that you have control of your cash until you’ve mailed the check!Practical Action Don’t take cash or cash management for granted! Understand how cash moves in your business and why. Keep and eye on trends and act quickly to changes.
34 minutes | Jun 26, 2020
Adding Value as a Small Business | Up and to the Right | Episode 045
Reminder: What is a Business Principle?When I talked about what made a business principle I ended up here:A business principle is a concept that is both foundational and relevant to all businesses.This set a pretty high bar when it came to identifying what were business principles and what were strategies, missions and tactics.Communication made the cut and that’s what I want to cover today.What is Value?According to Merriam-Webster the definition of “value-added” is: “a product whose value has been increased especially by special manufacturing, marketing, or processing”I want to change the word “marketing” to “experience”. Marketing is a tool to communicate but it’s the experience that changes the value of a product.Why is adding value a business principle?Value qualifies as a principle because of the fundamental requirement to offer something that your customer values more than the money they wish to exchange for it and it is universally applicable to all businesses.Examples of Value-AddedIntrinsic Value - CommoditiesA commodity is an item that can be easily compared on price and is generally just as easily replaceable by another, similar product.Examples might be automobile gasoline or general food items.Luxury ProductsOn the opposite end of the spectrum we have luxury items which are difficult to compare on a cost base and are less replaceable than a commodity.Differentiating Commodities and LuxuriesOf course, the scale between a commodity and a luxury item is wide. One of the key goals of marketing is to differentiate brands from competitors but also from the nearest commodity. This increases the overall perceived value of a product with the intent of increasing sales volume, margins or both.A practical way to look at value-added is simply how we separate what we have to offer from the nearest commodity.Consistent QualitySometimes you just want to be sure that you know what you’ll be getting every time you use a product.Many ‘mass produced’ products rely on this characteristic. Fast food restaurants and automobile gasoline for example.Functions & FeaturesSpecific product functions, features and capabilities are a common way to differentiate your products and services from both competitors and commodities.The Swiss Army Knife differentiates itself by adding the value of a combination of useful tools to the standard pocket knife.DurabilityDoes your product last longer than other, similar products? Can your product be used in harsher conditions?Durability makes it easy for customers to rationalize a higher cost when the product will last longer or work in more difficult circumstances.Customer IdentificationHow a product makes us feel about ourselves can play a big part in our purchase decisions. We’d all like to imagine that we’re more rational than we really are when it comes to how we spend our money.Helping customers identify positively with our products and services in ways that also give them a positive outlook on their own values can add value that is powerful but difficult to quantify.Hybrid cars, health food stores and gyms often add this kind of value to their products & services.Customer ExperienceWhat is the environment in which your customer experiences your product or service? Is the environment part of the value? Think about flying first class versus coach or getting coffee in a boutique coffee shop rather than a convenience store.Customer experience can be another way to add value that doesn’t necessarily add a great deal of cost.How to Identify Your Value-AddedHow can small business owners get a good understanding of what value they are currently adding? Ask Observe Compare AskOne way to find out what your customers think the value of your product is would be to simply ask. You can do this with a survey or in person. While this may be a good start it’s important to understand that survey data may be affected by the customers feelings and perceptions about the survey itself.ObserveWatching what your customers actually do and say when they are in your store or using your product can tell you a lot about what they value and how they really feel about your business.CompareBy comparing both the observations you make and the direct questions you ask you can get at least a somewhat comprehensive view of the value your customers see in your products and services without the cost of outside market research.Practical ActionAlright so let’s get practical!Here’s a quick way to get started understanding the value you add and adding to it! Find out what your customers value through observation, direct conversation and/or by using a survey. These should be benefits you already offer as well as those that you may be able to add. Answer the question: How does the value perceived above match the value you originally intended? What can you do to enhance your product or service to add additional value? Reminder: Look for ways to separate your product or service from the nearest commodity!Do you have a creative way to add value? Drop a comment with your thoughts. Connect with me to keep in touch and share ideas!References“Value-added.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/value-added. Accessed 25 Jun. 2020.
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