Archive for August, 2008
08.17.08
Posted in Internet Management at 8:39 pm by
Firstly, a Yoga student, who has such a serious ailment, should get their doctor’s permission before starting to practice Yoga with a teacher. If possible, get a doctor’s referral to a particular Yoga teacher, who is more knowledgeable in this area. Many doctors often network with local Yoga teachers, studios, and ashrams, for the benefit of their patients.
Chair Yoga classes may be advisable in some instances. Yoga postures practiced during chair Yoga classes will not put pressure on the neck. It is also wise to find a teacher who has been thoroughly trained in the use of props, modifications, and completely understands your ailment.
Find a Yoga teacher who is understanding, gentle, and knowledgeable. At that point, set up an interview with your prospective Yoga teacher, and explain your ailment in detail. The methods, personalities, knowledge, and patience, of instructors who are teaching Yoga, will vary.
Some of the poses that I would not recommend would be: Sirsasana (Headstand); Sarvangasana (Shoulder Stand); Halasana (Plow Posture); or any other posture that could cause severe compression on the cervical vertebrae (neck). Also, your doctor should be made aware of any “risky” movements and positions performed in a Yoga class, such as, chin locks, neck rolls, and fingers clasped behind the neck.
You will find it is important not to do any exercises or postures that hurt, even a little bit. Pain is your body’s way of telling you, “not to do that” and “stop now.” The Yoga exercises, that will help you the most, are those where you will feel a smooth and gentle stretch. If you don’t feel a gentle stretch, I suspect those Yoga poses are not doing you much good.
If any Yoga exercises hurt at all, stop doing them immediately. I have yet to see a student, patient, or client, benefit from doing any Yoga pose that caused pain. To continue further on this point: Any treatment, of any kind, (Chiropractic, massage, physical therapy, or Yoga), should be with the goal of less pain. Why do it, at all, if you are going to be in more pain?
Learning Yoga for a serious condition, such as a neck ailment, should be practiced under maximum supervision of a competent Yoga teacher. I would suggest at least one private lesson before trying a group Yoga class. A Yoga teacher may suggest, at least, a few private Yoga sessions, so that the student understands all the safety guidelines.
As educational as Yoga videos are, they are no substitution for the guidance of a competent Yoga instructor.
Paul Jerard is a co-owner and the director of Yoga teacher training at: Aura Wellness Center, in North Providence, RI. He has been a certified Master Yoga teacher since 1995. He is a master instructor of martial arts, with multiple Black Belts, four martial arts teaching credentials, and was recently inducted into the USA Martial Arts Hall of Fame. He teaches Yoga, martial arts, and fitness to children, adults, and seniors in the greater Providence area. Recently he wrote: Is Running a Yoga Business Right for You? For Yoga students, who may be considering a new career as a Yoga teacher. http://www.yoga-teacher-training.org/index.html
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Posted in Internet Management at 2:25 pm by
Did you know that 80% of all sales are made after the 5th contact?
The biggest mistake we make is not following up with our clients regularly. We not only lose the chance to offer other services and products, we lose the chance for satisfied clients’ referrals.
Building your practice needs consistent bi-monthly follow-ups.
If you think this takes too much time, follow my lead and delegate some of it where you will spend only 6-8 hours a week. Remember, only marketing and promotion builds income and business, the rest are expenses.
Here’s the ten ways to follow-up with coaching clients:
1. Keep track of every one who contacts you, in person or by email about coaching.
Treat email addresses like gold. These are already qualified, targeted future clients. Copy and paste their email note, date, and question into Textpad or notepad under the name “potential clients.” Print it out and keep in a hard file named the same.
2. Don’t throw away email addresses.
When someone connects with you, copy and paste their address into your computer folder called “eLists.” Place the address where you think it belongs. Name one file “potential clients.” If they are past clients, create another list and call it “past clients.” If present clients, make a file for them too. Categorized into groups, you can personalize your note to each one. Every month you’ll want contact one of these groups and offer them something special.
3. Keep track of your ezine subscribers’ emails separately.
While you may use a company to send out your ezine, you may also want to have that list handy in your own office. My assistant uses www.textpad.com shareware program to manage all of my different email lists. Since I only send out my ezine on book coaching and business tip monthly, I follow-up in between with a thank you or special offer. It takes less than 3 minutes to send out.
4. Choose the appropriate follow-up message for each group.
For your monthly ezine, you may want to send out a mini “marketing survey.” You ask 4-8 questions. For any who take the time to respond, you offer them a fre.e eBook or report.
In one follow-up I asked, “What are the 3 top questions you want answered about writing and publishing a book?” My subscribers knew I was thinking about them and appreciated it by signing up for the follow-up small cost book coaching marathon teleclass.
People love freebies, so when your follow-up offers a free tip or question and answer, our potential clients will see your value.
5. Leverage big results from just a little effort.
Don’t waste any information that helps you promote. After you get responses to your mini survey, use them again and again. After you answer the questions, keep them in a folder called Q and A. Create a new web site link and post them as new content for your hungry web site visitors.
When other professionals ask me for an interview for their ezines and sites, I get them via email, answer them and get promoted by others through their ezines and Web sites.
At the same time, I divide these interviews into articles under 1000 words and submit them to opt-in ezines looking for free content.
From just one ezine interview, several high power professionals called me to order books first, then to become business clients.
Follow-up means giving to your potential clients. When you give, many will give back. They will pass your freebie on to their associates and friends and even keep the information in a file.
Don’t think you are bothering your contacts. If they don’t want your news, they can opt-out. Thank you’s and free gifts keep your name in front of your buyers. It tells them you appreciate them and let’s them know what new things you can offer them. Follow-up is good business.
Part two of this article is available at www.bookcoaching.com/freearticles/article-139.shtml.
Judy Cullins, 20-year book and Internet Marketing Coach, Author of 10 eBooks including “Write your eBook Fast,” and “How to Market your Business on the Internet,” she offers free help through her 2 monthly ezines, The Book Coach Says…and Business Tip of the Month at http://www.bookcoaching.com/opt-in.shtml and over 140 free articles. Email her at mailto:Judy@bookcoaching.com
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08.12.08
Posted in Internet Management at 10:35 pm by
Diversify - to make diverse, give variety, to balance, to divide securities in different industries, to produce variety, to engage in varied operations.
Diversification is a wealth building strategy; it is also an excellent method for becoming more profitable. By working on your business instead of in it you can remain focused on the big picture and clearly see the best options for creating multiple revenue streams.
If you sell products you can offer them in different sizes, combine them with other products of yours or with complimentary products and sell the value added package at a higher price point. If you have a service business you can offer different services and programs at different price points.
By developing multiple revenue streams you spread out your risk and the costs of marketing and customer or client acquirement and boost your profits. It’s also an excellent way to offer your customers ideas for repeat sales, which are more profitable than first time sales.
In a service business you could offer a booklet about a program you have developed for $15.00, a mini workshop on the same program for $49.00, a series of teleclasses on the same program for $69.00, a full day seminar on the same program for $125.00…
This allows clients to choose the product that is the right price point for their current interest level. It allows you to develop a strong program, and by leveraging that program with slight variations and packaging you can create several different revenue streams.
It’s also an effective strategy for encouraging clients to try your service and then continue to buy once they understand the quality and value of your offering.
One important thing to remember when developing multiple revenue streams they should be complimentary to one and other. This will allow the products or services to cross promote each other appealing to the same customer demographic. You want to be focused and very specific in what you offer even though you are giving your customers several choices.
Be careful when developing multiple revenue streams that your efforts don’t become fragmented. Make sure that your offerings always appeal to your target customer, trying to target products or services to all potential customers will cost you money and will weaken your marketing appeal to your core customers.
Passive income is an excellent way to add a revenue source without adding more work to your schedule. There is the initial creative process, but once the product or program is developed and your marketing strategies are in place profits will come in without you having to create something, or provide a service each time.
Take a step back from your business and see where you can leverage your current offerings into additional products or services and what kinds of passive income opportunities you can develop to boost your profits.
If you don’t own your own business you can still apply the idea of multiple income streams to your career, look into doing special projects with a project based fee that is in addition to your regular salary, explore how you can use your strengths and expertise to develop some passive income opportunities and investigate the ideas you have had for starting a business while you still have the pay security of your current career.
About The Author
©BZ Riger-Hull - For valuable free articles, assessments, & practical success tools www.in-spiros.com, mailto:A1@smartautoresponder.com.
Certified as a Success Coach, “Four Agreements” Facilitator, & Tele-Course leader We help you communicate powerfully, reduce stress, Strategically Attract success, & increase your financial well-being: bz@in-spiros.com
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Posted in Internet Management at 10:04 pm by
Proofreading classifieds can be a good, solid career. There are few career openings in this field though, so you need to be well versed in order to get into this field. Now, if you see an ad for this type of work, you will want to make sure it is legitimate. Sometimes, companies make money by providing information to individuals who are looking for work from their house. But, it is wise to know a scam when you see one. You can spot them when you see job information being offered at a price. In any case, proofreading classifieds can be a legitimate job, along with all the other freelance proof reading opportunities out there. You need to simply know where to look and to know what to look for.
It is important to realize that a freelance business is one that you will build yourself. That means you will forge a relationship between yourself and the client. There really are few cases where you will have to buy something. Sometimes, you’ll find a website in which you pay membership to access postings of work. This can be a good place to start your freelance career. The proof reader must realize the costs of starting a business though. This may include becoming certified in proof reading as well as the costs for these websites that help you find leads.
In some cases, it will be necessary to have necessary qualifications for any type of proof reading or editing job. You may be able to get this training online as well as in some of the community colleges in your area. Work is never guaranteed, though, when it comes to freelance work. It is up to you to build your business whether it be with proofreading classifieds or some other field in the proof readers world.
If you are lucky enough to find legitimate work, proofreading classifieds for home employment, then go for it!
Visit http://www.FreelanceWritingResource.com for more Articles, Resources, News and Advice about Freelance Proofreading Jobs.
Copyright © FreelanceWritingResource.com. All rights reserved. This article may be reprinted in full so long as the resource box and the live links are included intact.
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Posted in Internet Management at 12:43 am by
1.Rid your home of all the clutter that tends to build up over the winter. Remove all knickknacks from surfaces. If a table looks too bare add just one simple item like a small bouquet of flowers or a light-colored candle. PS: Nothing says spring quite like a colorful display of flowers, so place them throughout the house to add color, fragrance and texture to each room.
2.Put away wintry-looking blankets, throw pillows, or afghans that are draped over the backs of sofas and chairs. Replace flannel bed linens with crisp light cotton percale and fill plastic under-the-bed storage bins with winter bedding and accessories. PS: Clean things first then store them.
3.Either remove rugs or replace them with lighter-colored ones. Once again, the idea is to make rooms seem more open and breezy.
4.Clean out closets. Spring is the time to put winter clothes away and bring out lighter wardrobe items. Consider donating things you haven’t worn in a year since you know you’ll probably never wear them again! PS: Don’t forget to clean them first, as mentioned above.
5.Take stock of what’s in your kitchen. Check expiration dates on goods in your refrigerator and cupboards and toss anything that has expired. Wipe out the inside and outsides of your refrigerator and cupboards as you go.
6.Put up the shades and open the curtains and drapes so you can see all the new life unfolding outside. Wash your windows so you aren’t looking through a grimy film.
7.Go big and bold with front door decorations. Remember to look at it from the vantage point of passers-by to make sure it’s visible and welcoming. Sweep your porch or entry area and buy lots of potted plants. PS: Consider buying a new welcome mat.
8.Clean out the garage and keep the door open while you work so that you can enjoy the nice weather. While you’re there, store the fireplace accouterments for the summer and give the hearth a good cleaning.
9.Do some yard work. Replace and/or repair gardening tools, prune shrubs and young trees, prepare flowerbeds, and weed, weed, weed!
10.Clean and inspect your gas grill. You don’t want any surprises when you light up a tank of propane for the first time. PS: You should clean the grill at the beginning and end of the grilling season.
Spring is a great time to embrace the Feng Shui art of uncluttered living. You’ll have less to dust, less clutter to look at, an easier time finding the things you do use, and less stress in your life.
Rosemary Chieppo has been a professional organizer, writer and public speaker since 1999. The costs of not being organized are enormous: time, money and stress. Organizing is the greatest gift people can give themselves; it clears the path to life’s more important destinations! Visit Rosemary’s website at http://www.borntoorganize.com.
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08.07.08
Posted in Shopping & More at 6:19 pm by
Penis rings are marital aids and put to good use to make the tool look harder and larger. If males use a willy ring males will stay firmer for a longer period and delay the finale. Penis rings, like most marital aids, are incredible for the house. Martial toys like penis rings work by keeping the blood flow in the male privates until the bloke actually finishes the love session.
Countless gals enjoy the look of a penis ring on their hot boy and boys revel in the sexy toy because it makes them seem larger. As a sex aid for gentlemen it is one of the greatest. This sensual aid comes in different materials such as metal.
Guys can wear a willy ring by making sure you yourself are flaccid and then sliding the male privates through as well as the balls. Then the men are ready. The sexy toy will make the lads look extra hard and give your male an incredible orgasm. The magnificent thing about sensual aids is they are here to give your love life a magnificent lift. The great love life you experience should really spice up your love life with your partner. Chaps can find penis rings in all the major sensual aid shops. If males want to see more about marital aids you can look online. Get Male Sex Toys from Sex Bomb and have the best night in ever.
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08.06.08
Posted in Internet Management at 8:47 pm by
Why should I increase my Omega fatty acid intake?
Our intake of essential fatty acids has changed radically in the last century. Our ratio of Omega-6 to Omega-3 should be close to 1:1, but it is now over 10:1 and up to 20:1. This is due to the addition of corn, sunflower, safflower, sesame and other Omega-6 oils to our food supply. Such excesses are thought by many scientists to be a factor in a number of chronic medical conditions including arthritis, cardiovascular disease, asthma, acne, obesity and depression. It is clear that we need to increase our intake of Omega-3 fatty acids and decrease our intake of Omega-6 (linoleic acid) oils. By doing so we will be, look and feel healthier.
What are good fats and bad fats?
Fat is a concentrated source of energy. This source of energy is very useful during aerobic exercise. The longer the exercise, the higher the fat contribution for providing energy. Fat is particularly used in large quantities in the brain and nervous system. There are two types of fat: saturated and unsaturated. Unsaturated fats are commonly referred to as “good” fats, and should make up the greatest percentage of your fat intake.
UNSATURATED
• Unsaturated fats, “good fats” are liquid at room temperature, and remain in liquid form even when refrigerated or frozen.
• Good fats are part of the essential fats: omega 3 and omega 6, both of which are unsaturated fats.
What are EPA and DHA?
These are two specific essential fatty acids found in fish oil. Both Eicosapentaenoic Acid (EPA) and Docosahexaenoic Acid (DHA) have been well documented in regulating cellular functions and promoting good health. Diets deficient in EPA and DHA have been associated with a number of health problems, most notably cardiovascular disease.
What is GLA and how is it different from other Omega-6 sources?
GLA (Gamma Linolenic Acid) is an Omega-6 fatty acid found in high amounts in borage oil, and to a lesser degree in black currant and evening primrose oils. In contrast to the sunflower, safflower and other Omega-6 oils, the presence of GLA in borage oil results in very different physiological effects. Linoleic acid in its current dietary excess promotes inflammation due to the production of arachidonic acid (AA). GLA on the other hand, actually interferes with the production of AA and decreases inflammation. GLA has been used with success in treating various medical conditions, most notably rheumatoid arthritis and eczema. Emerging science also indicates that GLA has synergistic activities with the Omega-3 marine-derived DHA and EPA, particularly in cardiovascular health and fat metabolism.
We all want to be healthy, happy and fit with enough energy for work and for play. A well-balanced diet, exercise, and enough rest go a long way in helping us get the most out of life. And essential fatty acids (EFAs) have been proven to help us achieve healthier and happier lives. These good fats’ truly are essential and the majority of us are not consuming enough of the well-researched Omega fats. Now getting the right amount of Omegas to suit your specific health needs is easier than ever.
Where do essential fats come from?
Sources of Omega 3 and Omega 6 essential fats:
• Cold Water fish such as Salmon (coho, king and pink), sardines, cod, albacore tuna, trout, halibut , herring. (these fish are also a great source of Omega 6, but are predominantly richer in Omega 3)
• Flaxseeds and green leafy vegetables are great sources of Omega 3.
• Sesame and sunflower seeds and other seeds and nuts are great sources of Omega 6.
• Borage oil and evening primrose oil are rich sources of GLA which is part of the Omega 6 essential fats.
Where do saturated fats come from?
Saturated fats contain large amounts of saturated fatty acids. Saturated fatty acids are named so, because they are “saturated” with hydrogen, meaning they have only single bonds between carbon atoms, leaving no room in their chemical structure for additional hydrogen atoms. Saturated fats are typically solid at room temperature.
Varieties of Saturated fat include: Butter, coconut and palm oils and lard.
Benefits
• aid in balancing the autoimmune system
• treats skin conditions such as eczema and psoriasis
• cardiovascular health
About The Author
Chester Ku-Lea is a health nutrition consultant and is the owner of
www.AstroNutrition.com - a provider of premium health nutrition and sports supplements.
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Posted in Internet Management at 4:11 am by
When you follow your heart, you follow your inner guidance.
When you follow your inner guidance, all steps lead to love.
It’s a great concept, but how do you do it? How do you follow your heart? It’s not as mysterious or abstract as it may seem. Here’s a 3-step process that anyone can do.
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Step One
Abraham* tells us that your emotions are your guidance system. That’s why our first step is to pay attention to our emotions in a whole new way. Instead of expressing, understanding, or even aiming to deeply feeling our emotions, in this process we are looking to them for information.
Our emotions basically tell us, among other things, which way we are headed.
“Negative” emotions are telling you that you are going in the opposite direction of your heart’s desire. “Positive” emotions are telling you that you are moving swiftly toward the fulfillment of your heart’s desire.
So, step one of our mini-system is this: Pay attentions to your emotions.
Do you feel better than you did just a moment ago (or a day ago) or do you feel worse?
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Step Two
Abraham* also tells us that, “Good feels good and bad feels bad.” Now that we are paying attention to our emotions, we are going to add this very obvious (but often overlooked) interpretation.
If your emotions feel “good” let’s interpret that as an indication that your focus in this moment is “good.” Here, “good” means any focus that allows you access to the flow of life force. This can also be understood as any focus that inspires a release of resistance. This type of focus is “good” because the more you release resistance, the more available you become to receive what you have been asking for.
If your emotions feel “bad” let’s interpret that as an increase in resistance. We’re calling that “bad” because it is a clear indicator that you are in the process of creating something other than what you want.
So, step two of our mini-system is this: Interpret your emotions as a meter of allowing and resistance. How your emotions feel (”good” or “bad”) tells you how much you are engaged allowing your good to come to you or how much of you is engaged in resistance.
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Step Three
Trade in your resistant focus for something you love.
If your emotions are telling you that your current focus has you headed in the wrong direction, and if you interpret that to mean you are engaged in resistance and moving away from what you want, step 3 becomes pretty obvious:
Change your focus.
You can do this with ease. Here’s how. You notice what you don’t want and let it tell you what it is you do want. If you look 180 degrees from the circumstances you are resisting, you will find the possibility of what you love.
Step three asks you to focus on something that you love, even if it is not currently “real” in your experience. You know if you have truly shifted your focus because your guidance system will tell you. If you suddenly feel a little bit better, you are now moving toward the fulfillment of your heart’s desire.
This system is clean and simple. It is also powerful beyond description. I wish you much success as you move joyfully toward the fulfillment of your heart’s desire.
*Find out more about the teachings of Abraham at www.abraham-hicks.com
Dr. Rebbie Straubing is a workshop leader, Abraham Coach, writer, and developer of The Yoga of Alignment (YOFA). Learn the Art of Joyful Manifestation at http://VirtualWorkshops.net
You can receive Dr. Rebbie Straubing’s Free e-Course, 7 Secrets for Manifesting Your Heart’s Desire, at http://www.yofa.net/7secret.html . Find out more about YOFA at http://YOFA.net
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08.01.08
Posted in Internet Management at 1:13 pm by
To offset any confusion, we are not talking about a grill for the Toyota Tundra but the powerful new Tundra Grill from Hammacher Schlemmer, built to withstand the elements and burn a variety of fuels including wood, charcoal, pinecones and brushwood, as well as cook all kinds of meat, poultry, fish and pretty much anything else you want to throw on, within reason. With the Tundras 37 inch diameter basin you are not limited to one type of cooking method either; you can grill, broil, simmer, fry, smoke and bake.
The options do not end there is the Tundra Grill comes equipped with a grill rack, skewers, and three swing-out skillets for frying eggs, simmering sauces, or even baking bread Dutch-oven style. No need to fret about your steak not coming out just the way you like it; the skillet, skewer, and rack height are adjustable for precise flame proximity. You will be able to cook for an entire dinner party or family gathering all at once, with space for two whole fish, three whole chickens, and six steaks. Want a cup of hot coffee or soup on a brisk morning or chilly evening? No problem; put on a cast-iron kettle for coffee or stock pot for soup.
The Tundra Grill is built to last, justifying its price tag. Whether you are cooking out in your backyard or braving the tundra, this grill has all the features and equipment to accommodate. The Tundra comes with a stainless smoke hood to induce draft in a gazebo or lean-to, or to keep out the rain so nasty weather will not thwart dinner plans. The Grill is wind deflector also helps make outdoor cooking a cinch. Zinc-coated steel shrugs off anything Mother Nature dishes out, while Birchwood handles allows for safe skillet use. Worried about messy ash clean up? The Tundra has got you covered,the Grills ash box and scoop makes for one-step ash disposal.
James Rothaar writes articles on the Luxury Lifestyle for Justluxe on topics such as Luxury Spas and Fashion.
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Posted in Internet Management at 8:00 am by
Do you have any idea how much your customers are actually worth to you? Do you know which ones you make money on and the financial impact of those that beat you up over price, service levels and “extras?” Or, do you say things like “we don’t have the time to figure that out,” - or, “we are different,” - or, “how would knowing that really help us” - etc, etc?
What could be more relevant to any small business than having at least a basic understanding of customer profitability? Usually when a company looks honestly at its customers, the realization jumps off the page that you make a lot of money from some customers, you make less on another group, and you probably lose money on some. When you think in terms of the factors that drive this in your company, you can begin to take steps to make sure you retain the profitable ones and not spend too much of your time on the others.
There are several ways to look at customer profitability, but one of the best is to think in terms of the lifetime value of an individual customer. Lifetime customer value (LCV) is the amount of profit that you will realize from an individual customer over the time that that customer does business with you. Focusing on LCV gets you two things. First, it measures the profitability of your customers, not just the revenue, and, because there can be a big difference in margin and costs between customers, the amount of money you make can be very different. Second, LCV focuses on your overall, long-term relationship with customers, not recent transactions, and over time some relationships have the potential to be a lot more valuable than others.
The challenge, of course, is that when you start thinking about how to implement this concept, you quickly realize that it can be expensive and time consuming to collect the information you need to really impact your bottom line. But, what if you could get “80%” of the benefit of knowing the LCV of your customers for “20%” of the investment? Wouldn’t you be willing to spend a few hours and maybe do a little tracking and forecasting, if it would make you more profitable? Here are some things you can do.
Start by creating a list of characteristics that describe both your ideal customers and your less than ideal customers. The objective is to identify both the quantifiable and the intangible factors that influence the profitability of an individual customer. For example, a long time customer, or a customer that makes multiple purchases, is better than a new one, for the obvious reason that it gives you a bigger revenue stream and the not so obvious reason that it doesn’t cost you as much to market, sell to, and service that customer. A customer that has been in business for awhile, or buys higher margin products, or refers other business to you, or who you can use as a reference is a lot more valuable to you than one who is always pushing you on price, or takes up a lot of your time, or who requires that you stock inventory that you otherwise wouldn’t, or who is just generally difficult to deal with. The more that you can quantify in describing these customers the better; but the intangibles are important, too, because there are hidden costs involved.
Then divide customers into 3, or 4 revenue groups. You can refine this later, if you want to, but you need a starting point. One place to begin is some combination of number of purchases, average sale amount, or total sales per customer. Looking at number and dollars of sales splits your customer base either by revenue (dollars), or activity (number). These are two of the important things that drive profitability.
Sometimes a better place to start, if you have the information, would be 3, or 4 divisions based on gross profit margin, or some other key profit driver. If you don’t know gross profit margin by customer, you could divide your customer base by number, or dollars of sales, look at the margin for a few representative customers in each group, and make some assumptions about the margin for the entire group. The value of an initial division by gross profit margin is that you have already made a big profitability distinction in grouping your customers.
Finally, look at your expenses a little differently and break them into 4 categories. These 4 expense categories are cost of goods sold (the cost of making or buying the product you sell), sales and marketing (the cost to get and keep your customers), fulfillment (the cost to deliver your product to customers), and general and admin (everything else). A few assumptions have to be made here and in some cases you might have to split an expense between more than one of the four categories. But, once you’ve done this, you can look at your expenses in a different way - i.e. how they are affected by individual customer transactions.
In restating expenses and matching them to the revenue groups, keep in mind several things that can meaningfully impact the profitability of any customer group and ultimately the total profit of your business. The number of customers in each group is important, because some of your expenses will be related to this. For example, shipping and handling is partly driven by the number of customers that you ship to. The number of new, versus repeat buyers is key, because you really don’t need to spread as much sales and marketing expense to the “old” customers as you are to the “new” ones. There may be costs related to a particular group for sales and marketing, or fulfillment. Fixed, versus variable costs are important, because you benefit from spreading fixed costs over as many customers as possible, while variable costs can rise or fall based on the number of customers that you service. And, finally, don’t neglect to consider time you and you staff have to spend servicing customers. Salary expenses are fixed in total (at least in the short term), but the amount of time that a customer demands can vary greatly and in that sense can be “hidden” costs as you look at the profitability of any customer.
If you are so inclined, you can bring these assumptions together in a financial model that lets you forecast LCV with some precision. But, consider what you have learned already by taking these few steps. You’re recognizing in a more focused, analytical way, that not all customers are the same. You see more clearly that the amount of sales to a customer is not all that matters. The margin is a lot higher for some customers that for others. Your company’s expenses take on a different meaning, because they now generally reflect what it costs you to get, keep, and service your customers. You’re thinking in terms of some of the key factors that impact the profitability of any of your customers. If you stop here, you have spent a few hours of your time, but you still have benefited from understanding more about how much you might make, or lose, from different groups of customers.
(There are two Business Management Tools on the Business Advisor Online site that will help you easily gain a financial perspective on the Lifetime Customer Value of your customers. The Simple Calculation LCV Model provides a high level calculation; it does not require you to have collected detailed customer information, but will still give you a reasonable LCV estimate. The Detailed Calculation LCV Model lets you include more information in the calculation and helps to estimate expenses in the four categories outlined in this week’s feature article.)
About The Author:
Jim Deyo is the President of Business Advisor Online, an internet based service that provides small businesses with the ideas they need to grow and the resources they require to make the right decisions. As a former Sr. Vice President with a major banking institution, Jim worked extensively with small and medium sized companies and has over 30 years experience in commercial and consumer lending, accounting, finance, marketing, and strategic planning. Visit the website at http://www.businessadvisoronline.com and sign up for a six week free trial of the service, or e-mail Jim at jimdeyo@businessadvisoronline.com.
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