The Advisor’s Corner

Is your business designed to give your clients/customers what they want?

April 28, 2014/in Nuggets and Encouragement Regarding Strategy and Focus/by Tom Doescher

In our April 23, 2012, post, “Create your own path,” we encouraged business owners to focus on their customers’ needs, not on what their competitors were doing. You can be in what appears to be the same business as someone else, but chances are you have totally different clients/customers.

In our community, we have just such a situation occurring with two fitness clubs/gyms. We will attempt to contrast the features of each gym without promoting one over the other. Gym No. 1 has significantly more members, extended operating hours, many cardio machines, free weights and exercise machines, amenities like tanning booths and massage chairs, limited group training, and an attractive low monthly fee. Gym No. 2 has fewer members, some machines and free weights, and lots of group training options — some included in the monthly fee and others offered for an additional fee. Gym No. 2 is affiliated with a physical therapy (PT) clinic, which refers many members to the gym to participate in classes designed to promote an active lifestyle for life. Gym No. 2 refers its members to the PT clinic, too. We do not have official demographics, but the average age of Gym No. 2’s members would appear to be higher.

We have not seen any financial data on either gym, but it seems as though both are successful, even though they have two entirely different approaches.

Is your business designed to give your clients/customers what they want? Do you know what they want — or are you copying one of your competitors?

Is it better to buy at the top of the market or at the bottom?

April 14, 2014/in Nuggets and Encouragement Regarding Strategy and Focus/by Tom Doescher

This is not a trick question. At a recent automotive trade group meeting, two warm-up questions were posed to the participants. They were: “What sales revenue do you expect for next year?” and, “Are you planning to make any equipment or facility investments this year?”

As you would expect, the answers were all — except for our responses, that is — very optimistic. Not that we’re pessimists, but for years we have watched the shrewd operators know when to buy and when to wait. We don’t know if we’re at the top or near the end of the cycle, but modern economic history has shown that we don’t stay at the top forever. The smart operators are very calculating, independent thinkers who do not follow the herd. For example, Warren Buffet invested $5 billion in Goldman Sachs on September 24, 2008 (while most of us were running for cover), and made a very handsome return on his investment.

We’re not saying not to invest; what we are saying is that you should base your decision on hard data (i.e., booked business with realistic, predicted volumes), not emotions and hype.

By the way, remember that the goal is long-term profitable growth, not increased sales.

Are you absolutely certain you should build that new facility or purchase that new press now?

p.s. We know successful business is all about guessing right, so we encourage you to base your decisions on as many facts as you can.

A tribute to my father and mentor

March 31, 2014/in Sharpening Your Personal Leadership Skills/by Tom Doescher

On December 7, 2013, Al Doescher, a common man with a lot of wisdom, passed after enjoying a very fruitful life. In reflecting upon his life, I connected some dots I had never thought of before. The following is partially therapy, but hopefully some advice that will enhance your life and business. Enjoy.

As many of you know, Frank Moran, founding partner of Plante Moran, had an enormous impact on my life and our family; as a result, he has been mentioned or quoted many times in previous blogs or in our Food for Thought articles. The first time I heard Frank speak, it was special. His philosophies connected to something deep inside of me. From that first moment, I said, “I’m all in” — and I never looked back for 40 years.

Those of you who have been receiving our blogs know we identified four traits observed in the greatest leaders, and labeled them the “Big 4” ( Read them here: Big 4 and Big 3). The first trait is a high degree of self-knowledge or, as Socrates would say, “Know thyself.” A new insight for me has been the realization that my dad and Frank Moran were philosophically similar. Now I know why I was so at home at Plante Moran!

Anyway, here are 10 Al Doescher proverbs:

Every day is a bonus.
Life is a bowl of cherries. Watch out for the pits.
One day at a time.
It is what it is.
What you gonna do?
You can’t spend watcha ain’t got.
Save your nickels and dimes.
He puts his pants on one leg at a time, just like everybody else.
The Golden Years ain’t so Golden.
He’s dumb like a fox.

Hopefully there are one or two that will be helpful to you in your life or business.

In recent years I have come to realize that, most days, I draw upon the mentoring I received as a child. So now you know more about me, too.

Is your business designed to give your clients/customers what they want?

Is it better to buy at the top of the market or at the bottom?

A tribute to my father and mentor

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