From Thug to Tycoon

From Thug to Tycoon
by Reed Sawyer

There is a HUGE injustice in this country.  Young black males have a 46% unemployment rate...and it's not getting better anytime soon.  Before we start protesting, let's examine how to reduce that unemployment statistic by at least one person...YOU.


If you are young, black, and male, your chances of being hired are very small.  How can we change that?  First, let's realize that a boss DOES NOT have to hire you.  He will hire you IF and ONLY IF you make money for his company in excess of your costs.  If you have potential liabilities that would cost him money, he would rather poke himself in the eye first.


So, what can you do?
Let's examine your assets, and your liabilities, and let's readjust them so that your liabilities are now assets.  Can we do that?
Your anger:  Anger is nothing more than badly focused energy.  What makes you angry?  Is it being poor?  Ok, then let's make some money.  Your anger, or energy, needs to be focused on things that put money into your pocket.
The easiest job to get is the one that nobody wants...sales.  If you can sell, you can make as much money as you deserve.  It is not about your hours, but about your production.
How can you increase your sales production?
1)  Don't scare your customers.  If you are going to talk to people on the phone, you have to be articulate, eloquent, and prepared.  That means that if you have a heavy street accent, it might be time to take elocution and diction lessons so that you don't sound like a gangbanger.  What are the best resources?  Look to SNIROL.com for more information on our guaranteed speech performance tools to make you sound great.
2)  Don't scare your customers.  If you are going to meet people, you have to be dressed professionally.  Baggy pants are out.  Khakis are in.
3)  Don't scare your customers.  If you are going to meet people, you must be well groomed.  Cover up your tattoos.  Shave off your facial hair.  (10% of all customers will be afraid of people with facial hair.  10% of people will be afraid of people with tattoos.  10% of people will be afraid of people that are bald.  10% of people will be afraid of people with gold teeth.  10% of people will be afraid of people with a thick accent.  10% of people will be afraid of people that make fast movements and use their hands in an aggressive manner. If 60% of the potential customers are afraid of you, you are working too hard.  You have to ask yourself, what do you care about more?  Looking like a gangster?  Or making money.
Lose the flash, Grab the cash.

How else can you make money?  Time management is an essential part of any entrepreneur/success process.  Your goal is to be focused, without distractions, and  plan your time so that when you are selling, you aren't losing sales.  (All it takes to lose a sale is to have someone ask a question that you don't know the answer...and you don't know how to respond.  By the way, the best way to handle that situation is to answer, "That's a great question!  I don't hear that every day.  In fact, it's the first time that anyone has asked that question.  I compliment you on asking such an intelligent question.  Let me research that and get back to you...in the meantime, are there any other questions that would stop you from going forward on this today?  You know, why don't we move forward, for all of the obvious reasons.  Please sign here."

Incremental Revenue...a.k.a. "Vacation money"

Incremental Revenue...aka "vacation money"
by Reed Sawyer

When I was growing up, we had an RV park.  During the winter time, we had more campers than sites, so we would allow them to park around our house for the few months that we were overflowing.  Since our house was on the golf course, it was a very desirable site.

I hated it.  I hated looking out my window and seeing people staring in at me.  I kept the curtains shut, and I complained to my Aunt Betty about it.  (She was one of the partners in the RV park business).  "Why do we have to have those stupid campers outside of my windows?  I hate it."

My Aunt Betty was wise, and she said, "Reed, you're looking at it all wrong.  All of the fixed costs of the park have already been paid for, we didn't have to spend any more money developing those lots.  The ONLY cost that we have is for water and electricity, and those are minimal.  This is VACATION MONEY."

Once she articulated it like that, I loved it.  I wanted us to get more campers around our houses.

Let's examine what incremental revenue is:  Incremental revenue is revenue that comes in addition to your regular revenue, but without additional variable costs (or very minimal costs).  The fixed costs have already been paid, your variable costs are low, and the incremental revenue is almost pure profit.  It is "VACATION MONEY".

Is there any way that your business can develop additional incremental revenue?  What processes, space, advantages does your business have that it isn't using all the time that people need?  Can you create some incremental revenue streams from unused capacity?

If you are a bar/restaurant owner:  Do you have a slow night of the week that is underutilized?  Can you contact insurance companies, car dealerships, any sales organization and offer to let them use a meeting room, FOR FREE, on that night?  (What will they do?  They will probably all eat a meal, have a few drinks, and you might even have them start thinking of the restaurant as "their place" and start coming back more frequently.)  What is your cost?  Nothing.  You already had that room available.  What is your possible incremental revenue?  Possibly an average of $10 per head, minimum.  If you have 20 extra customers per week, on your slowest night, will that give you more "heat" and bring in more customers?
Can you sell advertising space on your menu?  Can you talk to every business in a one mile radius and see if you can deliver sandwiches daily?  Weekly?  Can you give the business owners a 20% discount on their morning coffee and pastry? Can you arrange with the business owners to have celebratory dinners at your restaurant, on slow nights, at a discount?

If you are a commercial dry cleaner:  Do you have large washers and dryers?  Can you do napkins and tablecloths for restaurants?  Can you do shirt laundry for a car dealership/body shop?  If you have excess time in the day where your machines are not running, can you find a company that needs to have their uniforms washed daily?  What should you charge?  Whatever you can get, but your fixed costs and variable costs are already paid, this is pure profit.
Can you offer an expedited service, for a premium?  If someone wants a garment cleaned in an hour, can you do it?  (If your boilers are still on and you have your crew available?)  Can you offer premium service, for a little bit extra?
Can you wash welcome mats for businesses?  (Most welcome mats are too big for a normal washing machine, you have a unique advantage over the small machines.)  What is your cost of doing them?  (Remember that you don't have to press or dry the mats.)  Can you use that as an intro to doing uniform laundry?

If you have public restrooms with lots of traffic:  Can you do advertisements in your bathroom over the urinals?  (What is your cost for a small advertising display case?  If you charged $20 a month, would you recoup your costs in the first month?)

If you have lots of foot traffic, and excess space:  Can you offer storage lockers?  How quickly would you recoup your money?  When the people come back to your store, can you upsell them into another purchase?
Can you have a soda cooler next to the cash registers?  People will pay premium for convenience items made on impulse.  Can you have high impulse items there as well?

If you have a service business:  Can you offer seasonal checkups (air conditioners, water heaters, appliances, etc...) for a nominal fee?  (If they need repairs, you are almost guaranteed to get the work.)

If you have enough "incremental revenue" sources, would that help your business?  Would that "vacation money" make your business more profitable, and make it easier to sell when you are ready to sell?

Can you brainstorm and find a dozen different incremental revenue sources that are untapped, and make those available?  When you let your customers know that you have "off the menu" choices and services available, and let them know that you are there to help them with ANY of their needs, you might just pick up additional ideas, and additional revenue.

Keep your core business healthy, but utilize excess capacity, space, resources for incremental revenue, and watch your profits soar.