Rick's Business of Audiology Blog

What is the Value of your Business?

What is your business worth?  There are days when we wish we knew; perhaps today.

Here is a very useful short article to help you start your rational thinking process.

How much is your car worth?  Hmmm... Hard to know exactly; depends.  Was it just washed?  Just in a fender bender?  Making funny sounds?  What is the make, model, and color?  Where it is located?  Etc.   Perhaps most importantly: Who is the buyer?

It all makes a difference, and your business is similar. 

First Right of Refusal: Think before you act.

Friday's post about the business advice from vendors generated some comments. Good.

Several revolved around vendors asking for a first right of refusal on your business. This is a HUGE deal in the business world. It is potentially giving your family wealth to someone else.

Here is how I encourage you to think.

Financial Advice from Vendors - Bad Idea

Here is an article about suppliers providing financial advice.  It is worth a read.

In this short article Meidar points out the "obvious" problem of taking financial advice from the sales groups you are buying from.  Madoff's scheme to separate wealthy people from their money has made this a hot topic today in the popular press.  The idea has been around for as long as there have been people with money who are willing to wish as opposed to reason.

Three Points:

1. A lot of people have been taken this way. Slick sales people offer you a carrot, while stealing your farm. There is a saying a fool and his money are soon parted. This is often a way they part.
2. The people taken are often good at something, but not the finances. Called Marks in the industry. Audiologists as a group are very smart, honest, and trusting. The supplier company management may not be honest or trusting. It makes for an uneven playing field. If you are honest and trusting you are at risk for a smooth sales persons to woo you out of your inheritance and the family wealth you have worked so hard to create.
3. Successful people use fee for service. It removes the obvious conflict of interest.

http://www.forbes.com/2009/06/05/financial-advice-health-opinions-contributors-ubs-madoff.html

When you go to pay cash for a car, do you allow the sales person to examine all of your financial portfolio, business strategies, and take a look at all of your personal financial information before you even look at the car?

Obviously not.

I hope this helps you,

Rick

Annual Evaluation Myths

I don't know where the concept of an annual review originated. I think the need for an annual evaluation is one of those myths that we can do without.

If an employee adds significant new skills or abilities, or in any way improves their ability to add value to your organization then why wait until the end of the year to reward them? That isn't very motivating.

If and employee fails to perform as desired, or in any way decreases in their ability to add value to your organization then why punish the rest of your team until the end of the year? That also isn't very motivating.

Saving up "bad news" for a non-performance related date only means you and the employee are carrying around additional baggage until that date. The ignored conflict makes every other interaction more difficult for both of you. It decreases the open communication and camaraderie you need.

Saving up "good news" for a non-performance related date only decreases the value of the praise.

I hope this helps you,

Rick

Facebook Professional Oops!

My last post was about every interaction being a test. It includes every interaction.

A client and I were just reviewing a Facebook page of a potential employee. It looks like the applicant can really party. It appears they have a lot of drunken friends. It appears they give little thought or open respect to their profession, or their professional appearance.

Every Interaction is a Test

Each time we interact with anyone it is a test. It is a test of how we do. It is a test of what we are. It is a test of what our future value might be. These informal tests are an inherent part of our being. Kids can be great in helping us understand adults. Ever watched a 3 year old meet someone for the first time? You can openly see them evaluating: Playmate? Threat? Food Source?

You are evaluating this right now. Is it worth reading to the next paragraph?

Mobile and 24 Hour are OK

As I write this the birds are chirping, and the sun is out. It is almost midnight and the campsite fire is puffing out enough smoke to keep the mosquitoes away.  I am about to pick up a good book.

Promotion Letter Strike Out

Audiologists aren't the only people who send marketing letters that don't achieve their purpose.

My inbox today contained a letter from one of my insurance agents. I have quite a few policies with him; home, auto, boat, etc., it looked just like a statement, so I opened it.

It reads:

Dear Richard,

Let's look at your home policy.

Business is slow in my office and I want to sell you additional insurance you may never want or need.

Best Month Ever: Again

I just finished a phone call with a client who is having her best month ever. These past few days have been like that. It seems almost every month sets new highs for her in the number of people she is actually helping hear. This seems to be a great time to be in the Dispensing Business. It seems for most everyone May was a great month for helping people hear.

There is so much talk about the economy and all sorts of other problems it would be easy to think times are bad for everyone.

Do Something Each Month for Someone

One of my personal goals, for many years, was to do something special for someone each month.

Yes I kept score, but only to make sure I would actually do it. It kept me on the alert for things I could practically do. I kept score in the present and future, not the past. I didn't keep track of what had happened in any organized manner, just what was going to happen.

It started when I was young; you know when your mom tells you to open the door for people. I worked after school as a delivery driver for a nursery and florist, not always the most exciting job. I was at the bottom of the pecking order. Peck, peck, peck.