Blumer & Associates, CPAs, PC - Certified Public Accountants

Along with a new Trader Joe’s coming to Greenville, SC comes a business with a different business model (and some take-aways).

I read an article recently on Trader Joe’s, a unique whole-foods type grocery chain based out of Monrovia, California.  Sounds like a cool store, but even cooler was the business model I read about in the article.

My takeaways:

1.  Trader Joe’s is opening 5 locations in 2010.  That is a scaled-down strategy from the big box stores.  Being small is an option in your business.

2.  Grocery chains typically stock some 50,000 items for sale, but Trader Joe’s stocks about 4,000 well-chosen items in their stores.  You don’t have to sell everything, and that means your business will not be suited for everyone - and that’s okay. 

3.  This is a place for foodies.  It boasts some of the most unusual foods that can not be found anywhere.  Their location is meant to be for those seeking the unusual and niched.  Create a niche for your business.

4.  Their product mix is on small inventory with high turnover. They buy less products and determine to sell those products with greater turnover.  This allows them to buy in large quantities with deep discounts.  Offering limited products with high profit potential allows for better service to the ultimate customer.

5.  The highest R&D costs for Trader Joe’s is the travel budget for the inside buyers that search the globe for the best products available.  When customers come to Trader Joe’s they know that the products on their shelves will be the best the world can offer.  Be consistent in excellence, and customers keep coming back.

Any takeaways from the article?  Leave it in the comments.

Our client, CoWork Greenville, LLC, has a bunch of creative clients and friends moving into their new space soon near downtown Greenville, SC.  The office is going to be awesome, so if you are looking for a long-term or temporary space to be innovative and collaborative, check them out.

CoWork’s web is: http://www.coworkgreenville.com

Check out this video by Jamin Jantz, a Project Manager for the creatives, and one of CoWork’s members:

A client sent me a great article on how to build referrals in your business.  It got me thinking about some other recent stuff I’ve read on building referrals.

Here are some of my take-aways:

1.  Asking for referrals is one of the greatest ways to build business, but we never do it.  If you consistently serve your clients well, then they would probably be happy to send you referrals.  They’re just busy (like you) and don’t think about it.  Ask!

2.  Ask for referrals right after you’ve delivered a superior service or product.  Start it this way, “If I was able to add value to you, do you think there is anyone you know that I could help as well?”

3.  Setup a process to ask for referrals.  Our firm’s marketing person (my wife) has helped me do this in our firm.  We have made a list of the top clients that we do a lot of work for, and have strategically put them on my calendar throughout the year to call and ask for a referral.  If we didn’t have a process, I would have forgotten.  But its working.

4.  Tell your referral sources about what you do, and who would make a good client.  I often meet with potential contacts just to see what they need and what type of client they are looking for.  Likewise, they ask me what type of client I am looking for.  We often think of clients that could mutually benefit each other right in our meeting.  Very helpful.

5.  Meet a lot of new people.  This takes a lot of time, but anytime I travel, I’m always looking to meet new people in the city I’m traveling to.  Never waste that opportunity to simply make an acquaintance with other people.  You never know, maybe the barista’s brother-in-law just told him about a friend’s mother that needs your services.  Building your business ALWAYS means building relationships – you never know where it will lead.

6.  Now it’s your turn – please let me know how you build referrals… (leave it in the comments above)

Thanks, Jason M. Blumer

Small is the new big.  This trend has been noted some time ago by a study commissioned by Intuit.  And I see the trend everywhere I look.  I like what I see.

Here is what small is NOT:

1.  Less profits.  I don’t think being small means your profits have to be small.  You must be wiser and more efficient when you chose to be small, but you don’t have to settle for smaller profits.

2. Less staff and people.  Small can be a mind set and doesn’t have to actually look smaller to those around you.  It may NOT mean that you have fewer people working for you.  It could mean that, I just don’t think a smaller staff is a requirement for small.

3.  Less expertise and notoriety.  Just because you are small doesn’t mean you have to be the “unknown provider.”  You can be well known, you just get to decide what you do with your well-known expertise and notoriety.

4.  Less global reach.  On the contrary, small businesses are some of the most well positioned companies to take their concepts to an international market.  This evidence is all around us.  Small can be global.

Here is what small IS:

1.  Slower growth.  I believe small is choosing to grow slower.  When you do this, you innately learn what you are doing.  You figure out what you are doing quicker, and you screw up your business plans less often (at least that is what I think I would have done over the past 7 years had I chosen small).

2.  Strategic.  Growing slower means you are growing smarter.

3.  Artisan.  Choosing small means you are choosing to be a specialist who can be known as an artisan in your field.  Here is a great video explaining the concept of artisan.  Artisans hand craft things with care, and are reachable by their customers and clients.  They have a lot of face time with their people, and are known by their people.

4.  New business models.  Your employees can work for you all over the world now.  Business models are becoming flatter, meaning hierarchy and large management structures are not as needed.  They often create difficult ways to get real business done.  You can chose a brand new business model for your industry and still remain small.

These are my thoughts.  Am I off my rocker?  What do you think?  Leave it in the comments above.