National Clothesline

Do you have questions regarding the operation of your business?

If you do, you can e-mail them to me. My email address is consultme@msn.com. In the event

the question is of general interest, I will put it into my next column and respond with an answer…

Regarding those questions, and perhaps my answers, President Lincoln made the following statement, “Better to remain silent and be thought a fool than to speak out and remove all doubt.”

Before you ask a question, be certain that it is well thought out, and I will try not to “remove all doubt” when I respond.

Today’s question comes from a person who made the following inquiry.

“I am 49 years old and have been in business about 26 years. Neither of my kids wants to go into the drycleaning industry. Should I sell and retire?”

After an extended conversation, I learned that the person owns the land the plant sits on. He and his wife work a considerable amount of hours, but do not vacation often. There is no general manager, and the business is highly profitable. Regarding the children, one is in college and the other has recently graduated college and has entered the workforce.

My response was as follows: At age 49, you are too young to retire. Life expectancy keeps increasing due to medical advances. Your children are now entering, or about to enter the workforce. After your children find out how much mom and dad are earning in the drycleaning industry, jobs in the public sector will not seem as rewarding.

Find a general manager, even if you have to pay more than you would like. Learn how to work on your business, not in your business. Take time off and enjoy your life, but keep your source of income until each of your offspring has definitely made a career choice.

When they both have made a total commitment to his or her chosen career, then you might consider taking a step back from the business and running it like an investor, not an everyday participant.

The sale of the company is a final step. The rent you receive and the proceeds of the sale will provide a nice nest egg. My major concern is whether you will really be happy doing nothing.

In case you have not heard, we are now in a recession. No one likes to use the word depression because this is an election year. I have heard, time and time again, the housing market is suffering its greatest loss since The Great Depression.

California, with an economy larger than most countries in the world, has its highest unemployment rate in years. Oil prices have risen to historical highs forcing other costs to rise beyond reality. Banks have failed and the government is taking them over. It is a good thing that our government has many printing presses.

Let us now recession-proof your business. First, you must position your company to become a leader in the drycleaning industry. By doing this, you will leave less perceptive competitors in your wake when the economy changes.

Abraham Lincoln said, “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” Sharpening your axe can pertain to your plan or lack thereof. Create a plan and chop down the tree.

Implement cost-cutting actions. Your second highest expense is your rent. Attempt to negotiate with your landlord to reduce your rent. Your landlord knows there is a recession.

Get bids on your supplies. Determine your total annual expenditure on supplies and attempt to get multiple bids. If possible, you might be able to buy in large quantities. Some suppliers will warehouse the supplies you order, and not charge you until they are delivered.

If your supplier offers payment terms, take advantage of them. A 2 percent discount is better than no discount at all.

Get bids on your insurance. You may love your current agent; however, can you get a better price and more coverage from someone else?

Diversify your services. If you are not offering finished laundry, someone else is, and your customer is going to your competitor. Consider doing shoe repair, carpet, and upholstery cleaning, floor mats, and anything else that will need to be serviced by a company that does drycleaning and laundry. Any item a client wears or has in their home or office is potential business.

Survey your employees for ideas and suggestions on money saving. These employees are doing the work and know where the waste is. Have a contest and reward the employee for the idea that saves the company the most money.

Provide outstanding customer service. It costs more to get a new customer than to keep an old customer. Keep your current customers happy.

Have you surveyed your customers recently? Do you know what they want in the way of service, hours of operation, pick up and delivery?

Do not assume you know what your clients want. I hope you know the definition of assume. Years ago, the movie Bad News Bears gave us a great definition. Assume can be defined as making an ass out of u and me.

When you survey your customers, offer them a reward for supplying the information.

Reward the employees who are knocking themselves out for you and your company. Extra time off or a gift certificate to a restaurant could make somebody very happy.

Call customers who have not picked up their cleaning for 30 days. A friendly call from the CSR will do wonders. Your cash flow will increase and your bank balance will look better. Review your customers who have monthly statements and call anybody who is not current.

Do not cut back on your marketing. The biggest mistake some businesspeople make is cutting marketing when there is a business slowdown.

Become more aggressive and go after customers. Every customer contact (past or present), can lead to increased sales.

P.T. Barnum said, “Without promotion, something terrible happens — Nothing!”

Barnum was not a president, but that statement demonstrates the ultimate necessity of continuing your marketing.

Look for technological advances. You want to be a leader in the industry, not a follower. When a new customer walks in, you want that new customer to be overwhelmed by your computer system and all that you offer.

Be certain your web site is up to date. Be certain it is easy to navigate. Does the site show all the services you offer? Consider sending your customers a newsletter by e-mail.

Do you have a Unique Selling Position? A USP is what differentiates you from your competitors. This is what makes your organization stand out from the crowd.

It might be same-day service seven days per week, staying open from 6 a.m. until 11 p.m., free pick up and delivery Monday through Saturday, and next day alterations. Do not concern yourself with competitors’ actions. Your goal is to outshine them.

A final presidential quote from Abraham Lincoln: “You have to do your own growing no matter how tall your grandfather was.”