Sometimes all you have to do is make a call or send an email.  Just ask, follow-up.  Being there is half the battle.  Often that’s all you need to do to surface a new order — make contact.

When someone buys from you, the first thought that ought to enter your mind is What else may they need?

Often times people buy things from us because they’ve reasoned a need for something.  They acted on their worldview and exercised a purchase.  That’s great!

But often there’s more.

The person making the purchase is somewhat blinded by their worldview — they have a perspective and way of looking at things that led to the decision to make a purchase.  But their way of looking at things may not consider all thoughts, ideas, and angles.

Enter the expert.

You are the expert of what you do.  Don’t under estimate it.  Daily, you live the decision your customer may be making but once in a blue moon. Your perspective of their purchase may result in something different — a greater win/win whereby the buyer gains more from purchasing beyond their initial order and you benefit more because your expertise results in a greater average transaction value.

The idea is to follow-up. Take a careful look at what people are buying from you and truly understand why — what are they trying to accomplish, how can you help them achieve it, and can you add more value simply by engaging and talking to them about their purchase.  What may result is a greater level of customer satisfaction and volume of purchase.

Money may move from the table to your pocket.

What do you think?

While  access to commercial loans is difficult, an alternative to consider in your search for capital is an angel investor.  And while angel investors are non institutionalized, they’re far from unsophisticated.  In fact, some angels are more sticklers for detail than their VC cousins — after all, it’s their money.

Fobes.com offers Ten Ways to Attract Angel Funding.  I’d like to highlight #8 for you:  Finalize Your Financial Model.   In fact, I’d really like to highlight one aspect of your financial model — revenue forecast.

Here’s the deal

You should know everything about your first year projection.  I mean everything.  If you can’t answer these questions, the odds of hitting your number are slim.  And if you can’t hit the first number, how are we to believe you’ll hit the second, third or fourth number in your plan?

We won’t.  That’s the rub.

On the heals of yesterday’s post on limited commercial lending, here’s a Reuters article that adds further frustration to the topic.  According to the article, stimulus money intended for small business isn’t reaching potential buyers because the lenders don’t want to take it — the strings attached aren’t considered good business for the banks.

The problem?  Paperwork and potential restrictions from the government on dividends and payroll of the banks making loans.  That and some banks are concerned of a potential stigma of being known as an institution that took stimulus money.

The middle-man in the deal doesn’t like the deal.  And that may mean businesses who can benefit from a loan — if not have a necessity for one to survive — may not get one.

Bankers said they are hesitant to take capital injections from the government because of the stigma and the potential restrictions on dividends and compensation…The bankers said the SBA loan program has promise but involves a lot of paperwork and takes a long time to process the loans.

Here’s the rub

As shared in yesterday’s post, banks are cranking out new credit card programs left and right to bridge the gap in lending.

So, what’s a business to do?  When it comes to access to commercial lending, it appears small businesses are facing the reality of damned if you do, damned if you don’t — taking credit where you can get it or throw-in the towel.  Even if it means taking money with up to 30% interest.

What do you think about all of this?

According to this CNNMoney.com article, small business lending has all but dried-up and gone away.  Replacing it is good ole’ credit cards — with up to 30% interest on repayment.

Here’s the money quote (no puns intended):

Brooks applied for two business loans with Chase, first in 2007 and then again in 2008. Both applications were denied. While he had always had credit cards, Brooks never had to depend on them before: “We just never really used them — they were just there.” But toward the end of 2008, Brooks started paying bills and suppliers with his cards.

Now, he’s hit the limits on nearly a dozen cards. Brooks isn’t sure where to turn to next to keep his business running.

Criminal.

If a business can’t get a loan, why is it so easy to credit cards instead?   We know the answer, but it doesn’t change the question.

Regarding the quote above, maybe Brooks’ business shouldn’t continue operations.  Maybe the crime is credit cards somehow allowed it to exist beyond it’s time.  The weak should die?

But it’s hard to tell.  We don’t know enough to have a good opinion on the operations of Brooks’ business.  Judgment on his business isn’t the point I want to raise.

The point of the CNNMoney.com article that caught my attention is banks cutting their volume of small business loans, while increasing their credit card programs to small businesses.  Small businesses are being forced to increase their use of credit cards because that’s increasingly the only form of credit they can access.  That’s the criminal part.

A rhetorical question:  With stimulus and bail-out money being thrown around everywhere, why isn’t it funneling through  banks to small businesses in the form of small business loans?

It’s a mind-numbing and highly frustrating formula:  Limit small business loans by increasing lending requirements in an effort to reduce the portfolio of risky loans, then increase access to credit cards to fund small business,  while increasing credit card rates to protect the issuer from losses due to maxed out cards and rising rates of default.

This is insane.

Agree or disagree?

The first report is in — Utah’s experiment with a 4-day workweek appears to be a success.  In the first year of the program, the state reduced it’s operating expense by $4.1M.  That may not seem like a lot to some, but it’s significant as a result and begs the question of how much greater a return it can net?

Savings were found where you’d expect — for example, energy and janitorial. The surprise came in the reduction of overtime.  Preliminary conclusions are working four 10-hour days reduced the need for overtime by allowing more work to be produced in a given day.  Interesting.

Employee moral was reported up as well.    Although the article didn’t mention it, I’d be curious to see what affect there has been on sick-days — Do people who work four 10-hour days a week take less sick time than employees who work five 8-hour days?

Regardless, changing your work schedule should be considered as a way to smartly reduce cost.

What do you think?