Category : business smarts

By / business smarts / Dec 2,2014

Business Is About Profit

By Ken Matesz

“In the state of nature, profit is the measure of right.”               Thomas Hobbes

The only reason to run a business is to make a profit. Period.

If you don’t like that statement or disagree with it, you don’t belong in business and your business venture will probably fail unless it is subsidized by some industry or an outside agency or person. It also might survive a while being subsidized by debt.

When I first went into business about 25 years ago, I did not understand this important fact. I thought I was going into business to help the world.

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By / business smarts / Nov 7,2014

Overhead is a luxury

By Ken Matesz

The word “overhead,” in business, is an accounting term that refers to all ongoing business expenses not including or related to direct labor, direct materials or third-party expenses that are billed directly to customers.

In my masonry heater business, the firebox door to be installed on the customer’s project is a direct material expense of the project, not overhead.  But the phone bill I receive for having the ability to call customers is an overhead cost.  My truck and its maintenance is overhead.  Replacement diamond blades are overhead costs as are things like the maintenance of a brick saw.  

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By / business smarts / Nov 7,2014

The project you didn’t take

By Ken Matesz

“No,” is a complete sentence.

It is easy to think that we should build every project that comes our way. If the customer comes to us ready to hire us, we should always take it, right?

Wrong.

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By / business smarts / Nov 7,2014

Do More Than Your Customer Expects

by Ken Matesz

“Your customer doesn’t care how much you know until they know how much you care.”    Damon Richards

There is nothing better than a happy client.

Happy clients are the hallmark of good business.  A happy client will come back to you when he needs more of your expertise.  A happy client will refer others to you; he brings you more business.  He always speaks well of you and your products. A happy client thinks he got a bargain on his deal with you.  A happy client pays you promptly.

When you are building anything for others, you want happy clients.  

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