Plain Talk How About a Reality Check? By Rob Buksar If you’re readin ants this you must have pe survived thetransfor- ~ ’ mation into the new century. Congratula- ri Py tions and welcome to . — the brave new world. I want to wish everyone who reads “Plain Talk” a happy and prosperous new year. Abum rang the doorbell of a Beverly Hills mansion, and rang and rang, undissuaded by the fact that it was the middle of the night. Finally, the tickedoff homeowner came to the door, pulling his silk dressing gown around him. “What are you doing lean- ing on my doorbell at this hour?” he asked. “Can Ihave two dollars?” asked the bum. “Why did you have to wake me out of a sound sleep for two stinking dollars?” the millionaire raged. “T don’t tell you how to run your business,” was the cool response, “so don’t tell me how to run mine.” I am not in the business of telling any of you how to run your business. Frankly, in this day and age I’m not sure I’m qualified to run my own any longer. The new world order and glo- bal economy still don’t make sense to me if we’re going to remain a sover- eign nation. Of course we may not be a sovereign nation anymore and I’m the only one who doesn’t know. Nev- ertheless, I find the beginning of the calendar year a good time to do a busi- ness reality check. Again, I am not making any value judgements here. Each and every one of us is respon- sible for our own salvation. Make your own evaluations. Since you will be evaluating your own business you may have a difficult time doing it honestly and unemotionally. Let’s face it, we all have an emotional stake because it is our business. Sometimes we tend to ratio-nalize away the facts when we don’t want to face the truth. You know, it might be a good idea to go through the following checklist the first time yourself. Once you’ve scored it put the results in your desk drawer and share them with no one at this point. Now, ask either your ac- countant or maybe a friend who’s in an unrelated business to evaluate your business using the same checklist you did. Compare the results. You will end up with some real interesting food for thought. Here are the rules: You score each question ona | to 5 scale. One is the worst possible rating, making five the best. The best possible score is 90. If you score 90 you truly have the ideal business. Anything less boils down to what each one of us can live with. Let’s begin: My business is ideal because: 1. It has no investment or down- side risk. 1-2-3-4-5 2. Ithas a recognized market. 1-2-3-4-5 3. Customers have a perceived need for the product and are eager to buy it. 1-2-3-4-5 4. There is an assured low cost sup- ply of products or parts available for me to sell. 1-2-3-4-5 5. There is no (or at least minimal) government regulation of my business activity. 1-2-3-4-5 JANUARY, 2000 6. No hired labor is necessary. 1-2-3-4-5 7. Large gross margin can always be attained. Cost little, charge a bunch. 1-2-3-4-5 Electrical Rebuilder’s Exchange JANUARY 2000 – PAGE 5 8. Customer purchases frequently. 1-—2-3-4-5 9. Favorable tax treatment. 1-—2-3-4-5 10. Distributor network receptive to product they want (don’t have to fight or give the store away to sell it). 1-2-3-4-5 11. Great news value. Something people want to hear about. (no-pro- motion cost) 1-2-3-4-5 12. Do not have to provide credit. Customer will pay up front. 1-2-3-4-5 13. No product liability 1-2-3-4-5 14. Will not be put out of business by technical innovation within the year. 1-2-3-4-5 15. Competition is non-existent. 1-2-3-4-5 16. Fashion is not a factor. 1-2-3-4-5 17. Not perishable. 1-2-3-4-5 18. Weather is not a factor regard- ing sales. 1-2-3-4-5 If you’re home by six every evening wondering how to legally ex- pense off the surplus cash in the com- pany checking account, you probably scored pretty high. If you scored low I’dalmost be willing to bet someone is indirectly subsidizing your business. How? What about a spouse working full-time in order to provide a house payment, education money for the Page 1 of 2