Painting Business - 5 Ways To Determine How Much a Single Customer is Worth

Painting Business - 5 Ways To Determine How Much a Single Customer is Worth
If you are in the residential service industry (i.e.
painting business, carpet cleaning, lawn care, etc.) how do
you calculate just how much money a single customer is
worth? It's simple once you take the following facts into
consideration:

1.) For one thing local service customers represent
immediate income. Depending on your type of business,
whether it's carpet cleaning, painting, window washing,
etc. your customers are a way to make instant needed cash.
You need to put food on your table and pay bills paid just
like everyone else and there is nothing like immediate
income to do it.

2.) Add-ons - one thing nice that adds to your immediate
income is when customers add on extra work during a job.
For example: If you are a house painter and you are
painting their kitchen, they may ask you to paint the
half-bath down the hall. This adds a nice chunk of cash to
your immediate profits.

3.) Customers are a testimony of your good work. Sometimes
a potential customer will ask you for references. Having
plenty of previous satisfied customers on hand to use as a
reference works well. I have had potential customers say
things like "I thought they were your mom and dad the way
they went on and on. They had so many nice things to say
about you!". Wow! Is that a reference or what?!

4.) Your customers can give you lots of great referrals!
Without intending to brag, I have made thousands of dollars
off of single customers many times over the years. This
happens simply from them referring me to their inner circle
of family and friends. Not every customers will do this but
with the ones that do, I can trace 2nd, third, and even as
deep as 6 and 7 generations or levels of new business all
pointing back to one single customer referring me to their
friends and family for painting.

5.) And the fifth way to calculate a customer's worth is
they may call you back many times to service them again.
Many times I start out doing a job for a customer and then
they call me back for a series of other jobs. I have even
had customers give me inside work to do at my discretion to
fill in for rain days painting somewhere else! (How did
they know?)

This is the proper way to know how much money a single
customer is worth to you. Take all that into consideration
and I guess each customer can be worth thousands and
thousands of dollars to you over the years in your own
local service business!

I know this from experience... I'm thinking about just one
customer in particular right now that over a 10 year span
of painting for them, they have had me back quite a few
times. This same customer has also given me some excellent
referrals. I can trace new business 5 and 6 levels deep and
probably deeper from just this one painting customer alone.

That's the exciting thing about owning your own local
business. You get to meet a lot of fine interesting people.
These are really nice people that have the money to hire
you with. And they have lots of friends who have lots of
money to hire you with too! (I call that job security.)

The bottom line is this, if you treat each customer as if
they were worth a million dollars to you and consider no
job as being too small, they can eventually lead you to
some great opportunities to expand your customer base.

----------------------------------------------------
Lee Cusano has owned and operated his own successful
painting business for over 16 years. He has also helped
many others to start their own painting business with his
"Paint Like a Pro Estimating and Advertising CD-ROM".
Lee also offers a free report titled "How To Gain a High
Success Rate For Getting Painting Jobs". To get it go to
http://www.Painting-Business.com

Ability to Make Money and Keep it is the Lifeblood of Your Business

Ability to Make Money and Keep it is the Lifeblood of Your Business
"Money is a terrible master, but an excellent servant." ~
P. T. Barnum

You need money to pay your workers, pay the rent, buy
supplies, and pay other overhead. Money provides the
business owners' lifestyle and is essential for the
business to be able to continue. Without enough of it, your
business dies.

Your understanding of money is crucial because you must
have and understand money to survive for any length of time.

Knowing the Numbers

If you want to plan effectively, as a business owner or
professional you must "know the numbers." Knowing the
numbers means that you fully and completely understand the
financial aspects and financial condition of your business.

Below is a list of the financial facts you must know about
your business:

1. Gross income: the amount of total income from all
sources.

2. Gross expenses: the total amount of money spent to run
your business except for income taxes. Gross expenses
include wages, salaries, cost of inventory, phone, office
supplies, etc.

3. Net income: gross income minus gross expenses. Sometimes
this is also called gross profit.

4. After-tax income: net income minus anticipated state and
federal income taxes for your business. This is also called
net profit.

5. Fixed expenses: those expenses that do not change a
month to month, regardless of how much product or service
you sell. For example; rents, officers salaries, insurance,
or anything that has an unchangeable, fixed cost.

6. Variable expenses: these are expenses that change
according to the amount of product or services that are
sold. For example, the costs of the product (it cost you
four dollars to produce each CD that you sell), sales tax,
wages (hiring someone because you are selling more CDs),
marketing, etc. These expenses are also called marginal
expenses.

7. Those areas of your business that are most profitable:
each of your products and services will produce income and
have expenses associated with it. You need to be able to
identify the income and expenses that are associated with
each product and service so that you can determine what
products and services are most profitable.

8. Net profit from your workforce: the amount of profit
produced by workers. Certain workers will produce products
or provide services that will bring in revenue. Subtracting
the cost of having those workers will result in your net
profit from your workforce. It is obvious that if you are
not making a net profit from certain people, you need to
carefully assess your reasons for keeping them in their
present position.

9. Opportunity cost: this is the time and money it takes to
make and deliver a product or service. This time could be
spent elsewhere if you are not making or delivering that
particular product or service. You want to be delivering
the most profitable item or service in order to make most
profitable use of your resources. This is not actually a
number, but is something you need to recognize when
analyzing the financial condition of your business.

These are the basic numbers any business owner like you
must know to effectively make decisions about your
business. One of our jobs as a coach and your accountant is
to ascertain what pieces of the financial puzzle you
already know and what areas you need to obtain more
complete information.

THE LIGHTER SIDE

"I'll tell you what I tell every taxpayer who sits in that
chair," said the IRS agent at the beginning of Brown's
audit. "It's a privilege to live in this great country, and
you should pay your taxes with a smile."

"Thank goodness," said a visibly relieved Brown. "I thought
you were going to ask for money."

Wishing you a prosperous and balanced life

----------------------------------------------------
Stan Mann, C.P.C. supports business owners, top executives
and commission salespeople to substantially grow their
business and have a balanced life. He is a Certified
Professional Coach. For additional articles and resources
please visit http://www.stanmann.com I deliver customized
coaching programs to help you become the leader of a highly
successful and highly satisfying business.

Financial Control Using Self Employed Single Entry Bookkeeping System

Financial Control Using Self Employed Single Entry Bookkeeping System
Double entry bookkeeping is an accounting technique to
record the financial transactions of a business where every
transaction is entered twice, equal and opposite
transactions. Double entry is required for all businesses
that must produce both a profit and loss account and a
balance sheet.

All limited companies are required to produce a statement
of assets and liabilities and maintain a system of
financial control and invariably need to adopt a system of
double entry bookkeeping usually using an accounting
software package.

The same rules may not necessarily to self employed
business that does not require to produce both a profit and
loss account and a statement of assets and liabilities as
the final product of the financial accounting. In the UK a
balance sheet is an optional requirement of self employed
business.

There are advantages and disadvantages in preparing
financial accounts using self employed bookkeeping. The
main advantage being the simplicity with which accounts can
be produced requiring a much lower knowledge of accounting
systems. The main disadvantage of single entry bookkeeping
is the absence of financial control due to limited detailed
records of asset and liability accounts.

Preparing accounts using single entry bookkeeping involves
recording the prime financial transactions once rather than
twice. Prime financial records include sales income,
purchase expenses and cash or bank transactions.

As the accounts do not require to produce a trial balance
and balance sheet then when using self employed bookkeeping
recording cash and bank transactions is not strictly
necessary but highly recommended to provide additional
financial control. While cash and bank transactions are
movements of assets or liabilities and not part of the
income and expenditure account accurate cash and bank
records are useful since cash flow is a highly critical
area for small business.

In the absence of a double entry bookkeeping system the
small business has less control over the debits and credits
of the business. That being the amounts owed for sales
invoices from customers who are called debtors and the
amount owed by the small business to suppliers who have
supplied goods and services on credit and are called
creditors.

What is required from commercially available single entry
bookkeeping software is not just an accounts package that
produces the profit and loss account but also has
additional facilities to assist financial management and
control of the business by providing optional areas for
cash, bank, debtors and creditor accounts to be maintained.

Mismanagement of small business finances is a major area
which can drive a small business into liquidation and
bankruptcy. The first lesson an accountant might learn when
studying accounting and financial control is that the
business must always have sufficient cash or availability
to cash resources to trade the next day. Bank records and
maintaining a positive cash flow is important as without
liquidity the business cannot trade..

In a similar vein control over debts owed to the company
and owed by the company is also important for the smooth
operation of a small business. Bad debts from clients can
cripple a small business in fact high levels of bad debts
can cripple any size of business as evidenced in recent
times with the so called credit crunch. Lack of control
over unpaid purchase invoices to creditors can result in
serious disruption and higher costs since suppliers stop
supplies and may charge recovery costs and relentlessly
chase up the debs taking up valuable time.

The conclusion then is while single entry bookkeeping is a
viable option anyone who adopts a self employed style of
bookkeeping to simply produce a profit and loss account, or
income and expenditure account should also have
supplemental systems to control assets and liabilities.
Bookkeeping software can produce a solution by adding
additional financial control.

The advantage of using a single entry bookkeeping system
involves the simplest form of keeping records of financial
transactions. Essentially the small business makes two
lists, one of income received and one of expenses incurred.
Using single entry might involve virtual zero accounting or
bookkeeping knowledge.

When recording the financial transactions in the two lists
of income and expenditure a small amount of extra detail
can have magnificent effects on the quality of records
produced by grouping together items of a similar nature.

When entering sales invoices or income received to produce
the sales turnover total a small amount of analysis can
save much time and produce a more sophisticated result. For
example the sales can be listed in one column to produce
the overall sales turnover but also analysed to a small
number of additional columns in which could be entered
different types of sales income.

The additional columns might be for different types of
product or sales from different sales channels, sources, or
perhaps used to separate out interest received if tax
differently to business sales income. Some analysis of
purchases is usually essential as only the tiniest business
would get away with lumping all purchases together as one
total.

Single entry bookkeeping would involve making a list of all
purchase invoices for goods and services. The analysis of
those purchases then achieved by listing each invoice again
in an analysis column according to the type of expense
incurred. Bookkeeping software should include a simple
expenditure analysis.

Having produced the list of sales and the list of expenses
all the information is then available to produce an income
and expenditure account. Enter the totals from the single
entry bookkeeping sheets on a separate sheet with sales
income at the top, a list of expenses under each purchase
expenditure category. Take the total expenditure from the
total sales and the result is the net taxable profit.
Bookkeeping software should automate this process.

The financial accounts based upon a single entry
bookkeeping are complete and a net taxable profit produced
for the tax authority.

----------------------------------------------------
Terry Cartwright a qualified accountant at DIY Accounting
in the UK designs accounting software for limited companies
at http://www.diyaccounting.co.uk/selfemployed.htm on excel
spreadsheets using a double entry bookkeeping system
http://www.diyaccounting.co.uk/bookkeeping.htm

Putting Yor Best Foot Forward May Start With Your Shoes - Dressing For The Job Interview

Putting Yor Best Foot Forward May Start With Your Shoes - Dressing For The Job Interview
If you were to ask 100 people their opinion about what to
wear to an interview, the majority would answer, "Dress on
the conservative side." With that in mind, here are some
suggestions on how to put your best foot forward –
shoes and all.

- Closed-toed shoes are the way to go. Flip-flops,
open-toed, or backless shoes are taboo. Run-down or worn
shoes are a definite sign that the person wearing them does
not care about grooming – or detail.

- Jackets should be conservative - not be the type worn as
outerwear. Leather jackets are too casual for most
interviews – save these for your leisure time.

- Grooming is everything – unwashed hair or extremely
long or uncut nails are a real turnoff. You should be clean
and groomed regardless of the level of the job.

- Don't overdo anything – this goes for jewelry
– one pair of earrings – one ring per hand. No
face jewelry allowed.

- Dress appropriate to the environment. No short skirts,
shorts, or leggings in the interview. In most jobs it is
best to leave your jeans at home. Even the best
fashion-statement jeans are too casual for an interview.

- Trendy, over-sized purses should not be brought to the
interview. This is not the place the strut your Prada
– shoes or purse.

- Hair-dos and Color that are "over-the-top" are not
acceptable. Anything that attracts - and takes away from
your total image and impression should be avoided.

- Do you want to be remembered as the woman or guy with the
purple hair? Or, the guy or woman who was someone that they
would want to spend more time with?

- Color me Conservative - Colors in various shades of blue
and gray are best. Wearing black to the interview could be
viewed as too serious. If you do wear black, make sure that
there is another color near your face to soften the look.
Brown is still considered questionable as a business color
and probably should be avoided. Change your outfit's look
for a second interview by wearing a different color blouse,
shirt, scarf or tie.

Whatever you wear should accent the fact that you're a
professional who's ready to get to work at a new job. Let
common sense guide you, and it should be easy to avoid
fashion blunders that could damage your chances of getting
to the next level in the process. In this market, it is
essential that you look good and your appearance is right
for the job.

----------------------------------------------------
Carole Martin, America's #1 Interview Expert and Coach, can
give you interviewing tips like no one else can. Get a copy
of her FREE 9-part "Interview Success Tips" report by
visiting Carole on the web at http://www.interviewcoach.com

The Domino Effect of Changing Your Logo

The Domino Effect of Changing Your Logo
It's a rainy afternoon and you've got a hot cup of tea and
a box of dominoes. You set them up on end, one next to the
other in a snaking line across your dining room table. Then
you bump the first domino and watch as the rest fall down,
one after the other.

Redesigning your logo is more than just fun and games

Changing your logo is a lot like playing dominoes—once you
start, you have to keep knocking over project after project
until you've got all of your marketing pieces set up again.

Once you decide to create a new logo, you'll instantly find
a whole new list of to-dos. This would include setting up
the brand definition, expressing it in a logo, and then
making sure that all of the rest of the pieces flow from
those

Knocking down those to-dos takes more effort than the
simple little bump that topples over the row of dominos.

What does redesigning really mean?

Think back to the first time you designed your logo—the
work, time, expense, and thought you had to put into the
project. Just because this is a redesign doesn't mean that
it will be any easier than the first time around. In fact,
it may be more difficult since you're more invested in your
business and brand than you were when you first launched it.

1. Having a good reason. You need to have a reason that
makes sense from a business perspective. If you're
redesigning your logo because you're bored, this might not
be the best use of your resources. But if you've made a
major change in your services, target audience, or the
benefits you provide, a redesign may be justified.

If you don't have a solid reason to redesign your logo,
reconsider whether a redesign is the right path to take.

2. Hiring a designer. Finding a designer to create just the
right logo for your company takes time, attention to detail
and the patience to really look into the designer's
expertise. You may be lucky enough to already have a
designer that you work with. In that case you just have to
make sure that they have the time and inclination to work
on your project. If you don't have a designer, you can see
my tips on hiring a designer to learn more about the topic.

3. Re-examining your Brand Definition. If you're going to
redesign your logo, you might as well dig deeper into your
brand and make sure that it's as polished and complete as
possible. Going back over your business's personality,
service offerings, product plans, and differentiation will
help make sure you're developing a logo that will help you
connect with your best customers. Clearly define who your
target audience is and what they want to see in a logo.

4. Redesigning the logo is a big investment.

If you're going to change your logo, you'll be investing
time, thought and money into the redesign. Make sure that
you have the bandwidth and budget to give the project the
attention it deserves.

5. Trashing and revising all of your existing marketing
materials. Once your new logo is complete you'll have to
recycle your business cards, letterhead, brochures and
other printed materials—and pay to have the new ones
printed. Then there's redesigning your website (and the
editing and rewriting that you should do along with that).
And don't forget about changing the digital design
templates on your computer—your branded email footer,
newsletter templates, Word letterheads, and Quickbooks
invoices.

Go through your marketing pieces and just think about what
it would take to re-create those. The writing, editing,
design, coding, printing... Do you really want to redo all
that work? And will the redesign of all of those materials
pay off?

6. Making the transition make sense for your clients. Your
clients get attached to your logo. They identify with it as
the face of your business. If you just change your logo
without saying anything to your clients, it can make them
feel disoriented and disenfranchised—like their feelings
about your business don't matter. Changing the way your
materials look can make clients wonder if your business has
been bought out, or if you've raised your prices or changed
your level of service.

If you do create a new logo, be sure to inform your current
and past clients about the change and to explain the
reasoning behind the redesign. This simple act can help you
keep their trust and keep them onboard with your business
through the transition.

Making sure that you're prepared to address these 6 steps
in your logo redesign will ensure that a needed redesign
goes smoothly—just like knocking over those dominos.

----------------------------------------------------
Erin Ferree is a brand identity designer who creates big
visibility for small businesses. As the owner of elf
design, Erin is passionate about helping her clients stand
out in front of their competition and attract more clients.
Her "Define Your Difference Branding Workbook" will help
you with your brand definition - the most important step in
the logo design process.
http://www.elf-design.com/products-define.html