Lydia came into the world in Lynn, Massachusetts in 1819. She was the tenth of twelve children, born into a wealthy Quaker Family. Her childhood was privileged and she was educated at the Lynn Academy, working as a school teacher before marrying Isaac in 1843.

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Living in Townsville, we are well above the Tropic of Capricorn which means we are getting pretty close to the Equator.   This results in wonderful winters but stinking hot and humid summers.   It is a crime against humanity to try to live here and not have air conditioning.   In our house, we do have air conditioning, but nevertheless, I thought it might be time to upgrade it in preparation for the Summer months.

Now there is a local air conditioning company here, who advertises beautifully on TV.   When I think of air conditioning I think of this place.   Their ad is etched in my memory because I hear it often and I like what it has to say.   You see, most people go to electrical shops and buy their air conditioners when they are on sale.   This is great, in that they get a good price but more often than not, the charge to then install the air conditioner far exceeds what it cost in the first place, or worst still, the air conditioner they buy is either too large or small for the room or cannot be lodged in a suitable place.  

So I called the local TV advertisers who say clearly in their ad, that they will come to your home for free to advise exactly what they think your air conditioning requirements will be and then they will quote on the full process, including installation.   I like the idea of this because I am clueless when it comes to these matters and would rather an inclusive quote so I know exactly how much the damage to my hip pocket will be.

Expecting the owners of this business to be as friendly as their TV ad, I was a little taken back when the man who answered the phone sounded over worked and grumpy.   I told him I would like him to come to our house and quote on air conditioning.   He sounded very reluctant to do this and instead asked for the dimensions of each room.   I told him I didn't know so he told me to look for the original plans of our house.   Was he kidding? I told him the reason that I called, was because I didn't want to have to do any of these things.   I wanted him to come and do it for me (for free) as he advertised on TV.   He kept persisting that I give him room dimensions and eventually I just gave up and told him I would go elsewhere.

This is a classic example of not delivering on what was advertised.   I know I was speaking to the owner of this business and he did not do what his ad said he would do.   Why spend money advertising if you are not going to follow up on what you promise in your ads.   Seems to me to be a very fast way to turn people away from your business.

Read About Angela Arthur

With the continual growth of our Wizard of Ads business in Australia, I have been finding it increasingly difficult to work and look after my 14 month old daughter, Bridget at the same time, so I decided to investigate the possibility of child care for three days a week.

Now anyone who has ever been a Mother, will know that this is a gut wrenching decision.   Whilst I know that Bridget will love the activities provided and the interaction with other children, there is a guilt stricken part of me that thinks I should be with her all the time.   

So here I am, a hormone infused, neurotic Mum looking at child care options.  

My first option was family day care which is a child care service in a home environment with approved Carers.   The Carers provide the care in their own homes for small groups of children.   I rang our local branch and spoke to a lovely lady who assured me there would be no problem getting Bridget care in my local area.   Happy that Bridget would be well looked after, I reorganized my schedule so that I could work full time on Tuesdays, Thursdays and Fridays.   When I called them back to tell them the days I needed, a different lady answered the phone and proceeded to tell me that it would not be as easy to place Bridget as I was led to believe.   This lady was not nearly as friendly as the first lady and I started to feel very uneasy (after all, this is my beautiful baby girl we are talking about) but I put Bridget's name down on the waiting list anyway.  

I decided that I would try a child care centre to see what sort of a reception I received there.   I was a little more reluctant about this option because it seemed a lot less personal.   I called a centre close to our home and a lovely lady named Jodi answered the phone.   She was warm and friendly and straight away I felt at ease.   I gave her Bridget's details and she advised that there was a vacancy at the centre and that Bridget and I should come down and have a look around.   The next morning, I dressed Bridget in her best dress and we visited the centre.   I was surprised to learn that there was a maximum class size of 10 for Bridget's age group.   The centre was clean and well managed and I saw a lot of happy children having a really good time.   Jodi went through the curriculum with me and I was astounded at the number of actives the children actually do.   Bridget and I stayed for about an hour.   Bridget played with the other children and I just watched what was happening and satisfied myself that my beautiful bunch of joy would be well cared for.   Before leaving, Jodi gave me Bridget's enrollment forms and we settled on a start date.   Jodi assured me I could come back or ring at any time.   She made me feel good about the whole thing and assured me that the Mum's had a much harder time with the day care decision than the children did.

When I returned home, I decided to ring the lady at family day care and let her know that I had Bridget booked into a day care centre and would not be requiring the family day care option now.   I told I was lucky to get Bridget in so quickly as there are often waiting lists for this kind of service.   She promptly said to me, "Lucky or Unlucky?".   I asked her what she meant and in her arrogant way, she said "I am just a believer in family day care – that's all!".   With that, I hung up feeling very angry.

At the end of the day, I cannot say which option is better.   What I can say, is that thanks to Jodi, I felt much better about the child care centre.   Jodi is a fantastic ambassador for her centre and clearly loves her job.   She came across as much more passionate about children and her "can do" attitude sold me.   Clearly, Jodi knows the importance of being approachable and friendly as a marketing tool.

Read About Angela Arthur

If you are in a small business and you extend credit to your customers, you owe it to yourself and to the health of your business to implement some effective credit control procedures.  

Here are a few simple steps you can take to ensure your cash is flowing inwards on a regular and timely basis.

1. Make sure your Accounts Receivable function is computerized.   If you refer to my previous post "Is Your Book Keeping Up to Scratch?" (posted September 22, 2006), you will remember that it is time to come out of the dark ages, and get your business computerized.    A computerized Debtors System will enable you to print reports that show exactly how much money is owed to you, who owes it and how old the debt is.  
2. Before you take a new credit customer on, have them complete a Credit Application Form.   Your form should request information such as their full legal status (eg Sole Trader, Partnership, Trust or Corporation), their full legal name, their trading name, their address (both physical and postal), their phone number, fax number and email address, the physical address and drivers license numbers of the owners/directors, the amount of monthly credit they wish to have extended to them and the names, addresses and contact numbers of at least three of their other suppliers so you can do a credit reference check.
3. If your would-be customer is a corporation, have the Directors sign a guarantee.   This means that if for some reason the company no longer exists, you have the right to pursue the directors personally for the debt.
4. Once you have approved credit for your new customer, make sure that they are advised in writing and made fully aware of your terms of trade.
5. Offer discounts to customer who pay earlier than their credit conditions as an incentive for them to pay promptly.
6. Make it the responsibility of a staff member to follow up outstanding debts.   I have always found that a phone call once the account is a few days overdue is the most effective way.   Letters are usually ignored.
7. If a customer tells you they are posting the cheque today, say you will be passing that way today and offer to pick the cheque up if it is feasible.
8. Once a debt has become too delinquent for your liking, it is time to consider suspending the customers account for all further purchases and enlisting the services of a professional debt collector.

Remember, it is up to you and your businesses cash flow as to how long you can sustain a delinquent account.  

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My baby daughter, Bridget and I, were shopping in a local Department Store recently when a large rack of ladies fashion pants caught my attention, with a sign beckoning,  

 "Buy one pair of woven pants and get the second pair for 50%".    

Now usually, I can't be bothered trying clothes on when I have Bridget with me as the fitting rooms are too small for me, Bridget and the stroller.   However, this deal was too good to be true so I braced myself and braved my way into the dimly lit and very depressing little fitting cubicle.   Having satisfied myself that I looked like a supermodel in these pants, I decided to make the purchase based on the fact that I could get a second pair in a different colour for half the price.

I excitedly approached the checkout line and patiently waited for my turn to be served.   Much to my dismay, I noticed as the cashier rung up my stunning new pants, that both pairs were charged at full price.   I promptly informed her that the second pair was supposed to be 50%.   She said, "No sorry, that is only for  woven pants".

 At first I accepted this argument, until I thought about it.   Why had the glaringly large sign appeared on top of this particular rack of pants, and what constitutes "woven" pants anyway?   I assumed most things made of material were woven so I glanced at the tag on the pants and it confirmed that they were indeed made of woven material.   By this stage, I had paid for the pants on credit card but decided to make my point anyway.   The cashier finally accepted my argument but advised that it was too late for her to do anything about it and I would now have to go to the refund counter to be reimbursed my 50%.  

I was a little annoyed and, as it was approaching lunchtime, Bridget was getting a bit cranky too.   Again, I patiently waited at the refund counter until a lady asked if she could help me.   I explained to her what had happened and pointed out the sign that was so obviously perched on top of the rack of pants.   She quickly said to me, "I'm sorry, but that sale finished last week". As the veins in my forehead started to bulge,  I informed the lady that the only reason I purchased the pants in the first place was to get the second pair for 50% and if the sale had finished last week, why then was there a sign bigger than Mt Everest on top of the rack of pants saying the second pair was 50% off?   She quickly referred to her catalogue and said, "Oh, I'm sorry, you're right, the second pair is 50% off".

It then took nearly another 20 minutes for her to work out how to process the refund through her cash register and credit the amount back to my credit card. By the time I left the store with my pants, I felt flat and deflated.   My exciting purchase had turned into a nightmare.   By now, Bridget was hysterical and I was crying as well.

How many of your customers walk away feeling like I did?   Be honest now!  

Are your staff fully informed about your latest sales and special deals or are they struggling in a black hole of non communication?  

Are they fully trained not only in your product range but also how to use your basic office equipment?

Please don't let your customers walk away feeling like I did!

Read About Angela Arthur

As an accountant, when dealing with small businesses, it never ceases to astound me just how many business owners have no idea of what sort of profit they are making or if indeed they are making any profit at all. They go about their business with limited knowledge as to how financially healthy it is. They work very hard in their business, but neglect to work on their business.

In this age of technology, it is amazing how many clients, still come to their accountants at the end of a financial year with manual cash books and bank statements. The accountant dutifully prepares a set of financial statements and tax return and the client trots off for another year of business. You could ask these clients at any time during this year how their profit is going, and they wouldn't have a clue.

If you really want to be successful in business, you need to pull your head out of the sand and start keeping creditable records.

Invest in Quickbooks or MYOB and either hire a book keeper or learn how to do it yourself. Revenue and profitability should be tracked on at least a monthly basis. Once you start keeping these records, you will be surprised at how useful this information can be. You will start to gain a better understanding of the ebbs and flows of your business and you will probably even start questioning aspects of your business. The information will also allow you to measure key performance indicators and compare them to benchmarks for your industry.

Once you are fully aware of what your profit is on a monthly basis, you are in a much better position to make business goals and plans for the future. You will have a very clear picture of where your business is today and this in turn will make it easier to set goals for one, five and even ten years time. You can then develop a business plan and piece together how to achieve it.

Read About Angela Arthur