Interview with Alicia Connor

Jonathan: I recently spoke to Alicia Connor MA, a Registered Dietitian Nutritionist (RDN) and chef, about diet, meal planning, and nutrition.  Below is an edited version of our conversation:

Jonathan: Is there a distinction between nutritionist and dietitian?

Alicia: It’s different training and different required coursework.  There could be a two or four year program, or there could be a master's degree included. To become a registered dietitian nutritionist (RDN) specifically, an internship and passing the registration exam is required. RDNs are also required to have a master's degree.

Jonathan: And your background is dietitian?

Alicia: Correct, and I've had this credential for just over 10 years now.

Jonathan: And the chef part?  

Alicia: I worked as a cook and chef first and then went back to school because I didn't finish my college degree originally.

Jonathan: How much of your work is spent with people that have an underlying medical condition that necessitates dietary constraints compared to others who are just well and want to continue to stay well?

Alicia: A lot of people that I work with have Pre-diabetes or Type 2 diabetes, want to lose weight, and/or want to manage chronic disease.  Other clients have underlying issues. For example, one of my clients has pancreatic insufficiency and he had a lot of digestive issues. Since working with him, symptoms have resolved.  We're going deeper to see if we can improve the health of his pancreas.  I would say most people have something deeper that  they're not giving enough attention to, like sleep quality.   

Jonathan: What would you say to the person that is under a lot of stress, because I imagine people who are reading this are business owners.  

Alicia: I would recommend it's eating balanced meals and snacks throughout the day, focusing on a nutrition-based eating plan. I work with a lot of clients on behavior and how they think and feel.  If we're pulling the trigger on emotions all day long, we're responding in a way that's elevating our stress, then that has a huge impact on health.  When we're stressed, that’s one variable that increases blood sugars.  Our body thinks we're being chased by a tiger when we're stressed, when in fact we might be just sitting at a computer.

Jonathan: You mentioned more meals or more snacks…is there an optimal number?

Alicia: Four to six, but everything depends.  If you're somebody that exercises in the morning, have something before you exercise.  This could be a small thing.  But if you're doing strength training, have something protein-based afterwards.  You are trying to fuel what you're doing. In general, I recommend four times a day.

Jonathan: Inflammation as the cause of illness has been a hot topic for a while.  How hard is it to counter that with an anti-inflammatory diet and what does that entail?

Alicia: There's some major foods that you could avoid like gluten, dairy, vegetable oils to name a few. Some people have a response to nightshades which include  tomatoes, eggplant, peppers, and potatoes.  And, yes, inflammation is the precursor to a lot of illnesses.

Jonathan:  After you’ve done your assessment, how much of your efforts are recommendations, suggestions, and recipes?  Are you giving an entire menu to follow for the week, or is it just ‘here are some suggestions to eat’ or ‘more or less of this and do less of that’?

Alicia: I don't necessarily say eat more of this and less of that because most people know what they would like to reduce already.  If somebody wants me to create a meal plan for them that's individualized, I’ll usually give ideas.  I find that if it's too rigid, then people don't follow it, and the whole idea is to create a plan that's sustainable and flexible.  

Jonathan: The idea of being a dietitian and having a chef background; they're complimentary. 

Alicia: Absolutely.  You came to one of my meal planning sessions, the one about meals that heal.  The idea of bringing back Sunday suppers with the meals that heal to help with physical, social, and mental health.  If we eat and cook together, then that'll help everyone.  I also do workshops like Workplace Wellness, and encourage people to bring in what they make and it can be a creative outlet.  Quick & Delish Life Sessions are monthly topics that include life reflections; the February 2024 topic is about how to apply research-supported benefits of the Mediterranean diet and lifestyle. 

Jonathan: Alicia, thank you for your time and insights.  Alicia can be reached at:

email: alicia@aliciaconnor.com 

website: www.aliciaconnor.com 

Alicia on LinkedIn

Quick & Delish by Alicia Connor on YouTube 

Schedule a free consult!

2024 Payment Prediction

My top payment prediction for 2024 is that businesses which can set-up a subscription like billing model will continue to do so.  They will prioritize the certainty of a consistent revenue stream even if it means having to offer a discount to clients or nudge some prospects look for other providers.  I suspect if companies are big enough to have the data at their fingertips they will know exactly how much (if at all) to discount for subscribers to optimize their revenue.  If I was forced to come up with another prediction is would be to expect an even larger rejection of tipping.  Individuals have no problem spontaneously tipping, for example, salon workers, but don't want to feel pressured to tip someone who merely hands them a pre-made sandwich.

A.I., Personalization, and Merchant Services

Businesses are working not only to streamline transactions, but also to personalize them.  As consumers become increasingly discerning, the need for tailored and individualized experiences has never been more critical.  Merchant services are stepping up to the plate, leveraging data analytics and cutting-edge technology to create personalized customer journeys.  At some point, probably sooner than expected, every interaction with a business will feel uniquely crafted for you – from targeted promotions based on purchase history to customized loyalty programs that reflect your preferences.

One of the key drivers of this shift is the integration of artificial intelligence (AI) in merchant services. By harnessing the power of machine learning, businesses can analyze vast amounts of customer data in real-time, offering insights into shopping habits, preferences, and even predicting future needs. This not only enhances customer satisfaction but also fosters long-term loyalty.

Personalization extends beyond just product recommendations; it encompasses the entire shopping experience. From personalized marketing emails to customized offers at the point of sale, merchant services are creating a more intimate and engaging environment for consumers.

As businesses embrace this transformative facet of merchant services, they will not only stay competitive in a saturated market but also forge meaningful connections with their customers. In the era of personalization, merchant services are no longer just about transactions – they're about building lasting relationships.  

Consumer Spending

According to MasterCard, January retail sales, excluding the automotive sector, was up 8.8% over last January.  Spending in restaurants was very strong; up 24.2% over last January.  Robust U.S. consumer spending is also noticeable across entities.  Bank of America has said that credit and debit card spending is up 5.1% year over year in January, and they are on record as viewing this one more sign that there is “a strengthening in consumer spending”.  The trend of good news continues.

Tracking gun sales

Over the past few months the groundwork has been laid so that gun store purchases can be tracked. Not tracked by the government but rather by the card brands (American Express, Discover, MasterCard, and Visa). It is worth noting that this will not make it possible to determine what exactly was purchased, but it will convey how much was spent and by whom. Some argue this can help law enforcement spot suspicious transactions, whereas others see this as a path toward curtailing Second Amendment rights. So why is this happening? The card brands have all made statements that they support all legal commerce and don’t want to affect any purchases. However, their hands have been tied because a new merchant code was created specifically for gun stores and now they have to comply with the gathering of data; there is a merchant code nearly every other business type. Do you have any thoughts about this?

"More" does not mean "Better"

A recent conversation with a prospect yielded a lot of insight.  Her top priority was selecting “the Point of Sale (POS) system that had the most integrations”.  When asked why she explained that “having the most integrations meant having the most options and the greatest likelihood that, whatever she needed now or in the future, would be available to her”.   Although this seems rational, it was very misguided.  First, having the most does not mean best or best for you.  Second, most businesses will only use a fraction of the available functions and integrations of any POS.  They are all so powerful and offer a very robust ecosystem.  Third, if you are going to go down the multiple integration path, instead of getting built in features, it means being prepared to speak to multiple companies for support.  When these points were shared with her, some of her concerns about missing out on integrations were reduced…more so when I told her that most of her needs are features in some of the POS systems and she would not have to consider paying more for redundancies.  I don’t know what she will decide, but I know that her final selection will be better.

Venmo will charge for goods and services

Venmo announced that they will start charging businesses and sellers who use their platform 1.90% + 10 cents per transaction starting in August. This is not surprising as PayPal stated that they were raising their rates, and PayPal is the parent company of Venmo. There are additional fees if the business/seller wants to receive their funds faster, and there are not the same kind of protections for both parties as with a credit card transaction. This is another example of the payment landscape rapidly changing.

PayPal announces many price increases

PayPal has announced new rates for their services starting on August 2nd.  The most noteworthy of their new rates are 2.59% + 49 cents per transaction for Visa, MasterCard, Discover and debit online transactions.  They will institute a 2.99% + 49 cents per transaction for chargeback protection if desired.  Given their usual markup for American Express we anticipate the rate will be 2.89% + 49 cents per transaction.  Lastly, they will charge what seems to be an exorbitant  3.49% + 49 cents per transaction to accept payments using their digital wallet. On the whole, these rate changes put them out of step with the rest of the industry where the trend has been to hold rates/costs steady.  The last big increase from a well known brand was Square, which occurred more than two years ago.  

Surcharging is Charging Ahead!

As the economy has started to pick up steam post Covid-19, we are noticing very high demand for flipping the processing fees from the business to the card holder.  We used to see this only in small ticket-high volume businesses like bagel-bakery-coffee shops, convenience stores-bodegas, car washes, etc.  Recently, we have seen a tremendous increase in businesses with higher average tickets moving their costs to their clients.  For example, plumbing, heating and air conditioning, locksmiths, and auto repair.   From our conversations with the recently converted merchants, there was no loss in business, but they received more cash as payment.  This is a huge win for the businesses as they cut their expenses and do not suffer a loss in revenue.

Level 1, Level 2, and Level 3 Processing

Several month ago, we engaged with large business to streamline their payment platform.  What became apparent was the opportunity to convert their system from Level 1 processing to Level 2 and Level 3 processing.  Most businesses process at Level 1, however, if the business provides additional information such as sales tax, invoice number, postal code, etc., the transactions which are business to business will qualify for lower interchange rates (lower costs to you).  The most extreme case, going from level 1 to level 3, with the most expensive card type would save more than 1%.  Going from level 1 to just level 2 might translate to half of 1% (0.50%).  This solution does not make sense for every business, but if your business sells to other businesses, let’s explore this opportunity together.

Square changes its rates

Several months ago Square changed it’s standard pricing.  It went from a flat 2.75% to 2.60% + $0.10 for swiped transactions.  This may not seem like a big change, but for businesses with an average under $66.50 it’s going to cost more to use Square.  Who is this hitting the hardest?  Coffee shops, pizza and take out food businesses, wine and liquor store, bodegas, nail salons, etc.  I understand Square’s motivation to raise their rates on the majority of their clients.  They were hemorrhaging money and no business want to lose money.  Consequently we have been able to save many of Square’s low ticket clients $400-$800 per month.

Interview with Mark Stone

Mark Stone
www.salestaxdefense.com

Jonathan: I recently spoke to Mark Stone, the founder of Sales Tax Defense about how to best handle sales tax issues and how to prevent them from occurring.  Below is an edited version of our conversation:

Jonathan: Mark, why don’t you share a little bit of your background dealing with sales tax issues?

Mark: I am the Managing Partner of Sales Tax Defense LLC since 2006. We specialize in Sales, Use and Transaction taxes. I have worked as a New York State sales tax auditor as well as a Tax Manager at several prominent accounting firms over the past 25 years. I am frequently invited by various organizations to speak on Sales & Use Tax issues and I have served as an expert witness testifying in tax court on behalf of my clients.

Jonathan: Excellent.  What are the best practices a business should employ so that the proper amount of sales tax is paid on-time? 

Mark: First you want to register for Sales & Use Tax, so you have the legal right to collect sales tax.  Sales tax is collected on retail sales, leases or rentals of most goods, and any taxable services in the state required.  Use tax is due when a seller hasn’t properly charged a purchaser sales tax.  Businesses should understand when they need to charge sales tax and what documentation they need from their customers if the customers are not paying tax.

Then you want to make sure you file on time, even if no tax is due.  Lastly, mail your returns by certified mail with a return receipt requested so that you have proof it was received on-time, or file electronically.

Jonathan: OK, what should you be doing in your business?

Mark: You need to know what you are supposed to charge tax on and charge it.  Too many sellers make excuses as to why they didn’t charge their customers tax.  The State comes back years later and make the seller pay what they didn’t collect, plus interest and penalties.  Your business should keep adequate and complete records for at least 3 years and make sure your customers pay the tax when they are due.  You also want to collect Exemption Certificates from the customers you don’t charge sales tax.

Jonathan:  It sounds like a POS system would solve many of these issues.  Also, you mentioned Exemption Certificates?  How do I get that?

Mark: Exemptions certificates are provided by the customer and given to the seller.  They are blank forms downloaded from the NYS Tax Department’s website.  The purchaser completes the forms and gives them to the seller to document why the purchaser is not required to pay the seller sales tax on the transaction.

Jonathan:  Anything else?

Mark: Generally, NYS gives a person or business 90 days to respond to a notice.  If you don’t respond within 90 days, then the amount claimed to be due becomes “fixed and final” and the Taw Department can now begin seizing your assets to pay the assessments.  If you get a bill from the government, you should call your tax professional immediately.  The bill is not going to go away on its own!

Jonathan: Mark thank you for your time.  Mark can best be reached at: Sales Tax Defense, LLC

673 Deer Park Avenue, Dix Hills, NY  11746, 631-491-1500 x.11, www.salestaxdefense.com

mstone@salestaxdefense.com

Interview with Ambere St. Denis

Ambere St. Denis

 www.crimsoninsurance.com

Jonathan: I recently spoke to Ambere St. Denis, the founder of Crimson Insurance, about insurance in the cannabis industry.  Below is an edited version of our converstion.

Jonathan: What is the state of the Cannabis market with regard to insurance?

Ambere: The Cannabis industry has been in flux over the past several years, but never quite as fluid as it has been this past year.  Since Lloyds of London pulled out of the American Cannabis Insurance Market in 2015, options have been slim.  And although Lloyds is still offering coverage in other countries where this industry is nationally legalized, until it becomes federally legal here in the states, Lloyds will not offer coverage.  However, several other carriers have finally started to offer terms for the cannabis industry. Unfortunately, most of their terms have been restrictive and fairly limited, but it's a start.

Jonathan: What do you mean by restrictive and fairly limited?

Ambere: Several carriers are only offering fire coverage, which means if you have a fire- you are covered.  Any other peril is not covered.  For the cannabis industry this is particularly bad.  Most claims in the cannabis industry are in the crime (employee theft) or robbery categories.  Manufacturers have the additionally defect issues that require coverage like E-Pens exploding.

Jonathan: OK.  But why are the insurance carriers so restrictive?  The point of insurance is that you can quantify risk and thereby come up with an appropriate price to charge to mitigate the risk.

Ambere:  Insurance can be a very, slow moving machine.  Many carriers are hesitant to offer coverage in "untested" industries.  Meaning that there is not much actuarial information yet available for them to base their rates on.  Many industries only have non admitted carriers available, specifically due to the exposures contemplated.  Admitted carriers tend to market to the conservative exposures like offices and storefronts.  Non admitted handle the higher hazards like trucking and construction.  So until there is more data, the cannabis industry falls into the higher hazard arena. 

Jonathan: Ambere, what do you mean by “non-admitted carriers” and “admitted carriers”?

Ambere: An "admitted" carrier means the Department of Insurance guarantees claims payments up to 80% if the carrier becomes insolvent.  A nice add to an industry that has only had "surplus" lines offering previously.  And while many surplus carriers are AM Best rated A or higher (billions in bank), it's still preferable, when available, to have your state guarantee.

Jonathan: AM Best? 

Ambere:  Sorry, AM Best is a third party that rates the financial strength and solvency of insurance carriers, and so getting an “A” rating from them could give one some comfort.

Jonathan: Have the fires in California affected the insurance market? 

Ambere: The California fires have definitely impacted the market, causing a moratorium on any cultivation or production operations in many zip codes.  It has taken almost three months to fully contain these fires, which are reported to be the largest in California history, and they have caused the insurance industry to review and revise how they offer terms for agriculture, including crop coverage for cannabis farmers.

Here in California, our Insurance Commissioner has been pushing, and quite successfully, for an admitted market to make products available to this burgeoning industry.  

Perhaps it's motivated by the influx of tax dollars Colorado has seen over the past several years since marijuana became fully legal there.  Whatever the reason, California blazed the trail on offering an admitted option, albeit limited, to this industry.

Jonathan: Are other states, with regard to insurance, set-up in the same manner as California?  Do they have admitted carriers to cover cannabis?

Ambere: The Western states have been at the forefront with cannabis, likely due to how well it is cultivated here.  Other states are following suit and many states across the country are starting to offer medical as well as adult use options for cannabis consumers.  And while existing options expand their offerings, other carriers have come to compete.  And why not? With billions of dollars being spent in this industry and its ancillary industries, there is room to grow for everyone.

Jonathan: From the perspective of someone who has a cannabis business, I can imagine that they would need to insure against, theft and fire.  Are there other types of insurance that they should have?

Ambere: Many municipalities are requiring Cannabis Bonds and General Liability to open their operations.  As previously noted, employee theft is a concern as is crop failure.  And with the medicinal use permits, the potential for cyber claims if personal data gets compromised would also be a concern.  Many operations are delivering directly as a service to their clients. This brings up the possibility of cargo theft as well.  As the industry develops, new concerns are mounting and looking for a way to offset new liabilities will always be an issue.

Jonathan: Ambere thanks for your time.  Ambere can best be reached at Crimson Insurance,  www.crimsoninsurance.com, 888-405-7479, or ambere@crimsoninsurance.com.

SCAN Data program

The SCAN Data program is Altria and RJ Reynold's (tobacco) platform that gives incentives to merchants who sell cigarettes.  Most POS companies charge $25 to $99 per month, but with us, it's free.  Ask us how we can help you save more than just these fees if you sell cigarettes.

Interview with Zev Asch

Zev Asch

LEDAZA

Jonathan: I have known Zev, a hands-on marketing expert, for a few years. We sat down for an open, heart-to-heart discussion about marketing and small business.   

Jonathan: Zev, before you start, tell me a little bit about your background and how you wound up spending a career building small businesses with a focus on marketing?

Zev: My journey didn’t start in business or marketing but psychology. I’ve always been fascinated by the human brain. I came to the U.S. from Israel to study psychology but with just enough money to last me for my freshman year. When I graduated (with Honors) I wanted to pursue a doctorate in psychology but there was no way I could have afforded to study and support myself. I decided to pursue an MBA in Marketing instead, or what I thought was a discipline that was very much aligned with psychology.

Jonathan: And then what happened?

Zev: I had a choice to make as an immigrant with a six-month-old baby; work for IBM and climb the sought-after corporate ladder or work for small businesses where, if I was good, would provide me with an opportunity to grow professionally and financially. I was never interested in titles or corner offices anyway. It was a strategic, career decision but it worked out very well for me and I was able to learn first-hand, in “the trenches of small business” what it takes for small companies to survive and thrive.

Jonathan: So how did marketing fit into your plan?

Zev: Without dating myself, I am one of few professionals that has experience that extends way before the Internet and well into the 21st century. It has awarded me an extensive and very interesting perspective on how to grow a business but especially on marketing.

Jonathan: Since you brought it up, what do you think has been the most influential aspect of the Internet, or the digital revolution, on retail businesses?

Zev: I am going to get some people angry with my answer but if you bear with me, you’ll understand why I believe I’m right. When I do public speaking or workshops I always ask the audience this question: “Do you think it was easier or more difficult before the Internet to grow a business?” The majority always answer, “it is much easier today than it has ever been to run and grow a business,”. Sorry, wrong answer – remember, I’ve done both and I can say unequivocally that today is way more challenging than pre-Internet.

Here’s why: Remember the saying, “if it was that easy everyone would be doing it?” – that’s exactly my point! Every business owner and entrepreneur has access to the full range of digital platforms and products to promote their business. The result an overwhelming marketing noise that continuously hits our prospective customers. This constant barrage of messages, posts, videos, paid advertising that rank high on Google, etc., is not only challenging from a business standpoint but more importantly, it overwhelms and confuses our customers.

Jonathan: That is an interesting perspective so why does it matter, or maybe the question is “so now what should a retailer do”?

Zev: It matters because differentiating yourself is incredibly challenging. Which brings up to marketing – I like simplicity and dislike jargon so here’s the role of marketing in one sentence: “Get your business noticed in a way that drives qualified leads, or prospective buyers, to engage and learn more about you.” But here’s the thing, it doesn’t and shouldn’t end right there. While in my core I am a marketing specialist, I have always ensured that my responsibility covers what I call The Three Pillars of Growth in business: Marketing, or “get the leads in”, Sales or “convert them to paying customers”, and Customer Service or “never ever give them a reason to think about leaving”.

All of this is especially critical for retailers – whether you are a fashion boutique, wine shop, or a restaurant owner, you’ve got to go through the painstaking process of identifying what makes you unique. The best way for retailers to do that is also the simplest way: Speak to your customers, get to know them and let them tell you how they make a buying decision.

Jonathan:  So retailers should ask their clients right after they make a purchase why they just made that purchase from them?

Zev: Let me first state that this is incredibly critical, but it is also hard work. You can’t just send a survey and expect the work to be done. How many customers love to complete surveys? Not many. The best way, the one I recommend without hesitation, is to speak to your customers. Engage your customers when they come to your business.  Engage them before, during, and after they leave. They will appreciate the attention and will tell you what you want to know. For example, ask them which Facebook pages they follow, what blogs they read, what podcasts they listen to, what other sources of information they subscribe to. Ask them what it important to them when they shop at your store.  Is the service?  Do they value you are two minutes away from their office?  Ask them how you rate when it comes to fulfilling their expectations?  It’s not difficult to have a conversation, but be strategic about what you ask and what you want to know.  Lastly, you need to commit to getting this feedback. 

Jonathan: If we can pivot, it seems that all everyone talks about is marketing these days: web-marketing, brand-marketing, email-marketing, social media-marketing, etc. Are they missing something?

Zev: Absolutely. Look how many webinars and “secret tips to crush your next marketing campaign” books and podcasts are out there. There are quite a few gurus and self-made experts who claim they uncovered the secret to successful marketing; some of them are brilliant marketers who are making a lot of money on the backs of desperate entrepreneurs.  But most are not because despite their claims, no one has been able to demystify human behavior.  It may appear simple, that a “red” call to action button is the color that will make a human to press it.  I’m sorry, but whatever study was run to suggest that, next week “blue” may win. While color may certainly play a role in decision-making, what takes place before you get to press the button is way more critical.

Jonathan: So how do we figure out what works and what doesn’t?

Zev: Marketing is a science – it’s not a “thing” where all you do is post stuff on Facebook, LinkedIn etc. My favorite saying to our clients is, “likes don’t pay the bills”.  You simply can’t make assumptions; instead all we do in marketing is test, retest and test again.  I don’t know if red or blue is the color this week, so I run two ads and compare the responses.

Jonathan: With Social media everywhere, are we spending too much time marketing on it?

Zev: That’s a great question and the answer is actually quite simple: When marketing ‘works’ i.e., creates a consistent and sustainable growth for your business, it is always a result of the cumulative efforts of marketing, not just social media but direct mail, email, PR, etc. It is a balancing act using multiple platforms and tools but the most critical aspect of doing anything in marketing is “know your customer!” We have the ability to reach the masses but the key to success is identifying who your customers are (the multiple groups and segments) then spending time constructing their “profile”.  Intimate knowledge of your ideal customer is the key to success.

Jonathan: What do you think is the biggest challenge small retailers face today?

Zev: Get out of your own way. One of the most frustrating aspects of working with entrepreneurs is their increasing lack of patience – everyone wants guaranteed results or what I call “the endless chase for certainty.” Owners must commit to a marketing budget (free marketing doesn’t work) then let a marketing professional implement a scientific approach to business growth – identify your customer, make some assumptions, present marketing “ideas” and measure what works. Testing, by virtue of what the word means, requires multiple approaches and the patience to learn from them. Every client we speak with starts with, “so if I commit a budget to this it will work right?” – No, I would rather than you invest less but commit more in the form of patience and allowing us to intimately engage with your prospects. 

Jonathan: I am curious, is there one person that influenced you the most when it comes to marketing?

Zev: Absolutely and it is Seth Godin. I’ve followed him for over twenty year and I truly consider him a marketing genius – not from an intellectual perspective, although I wish I had his brain, but from his ability to “see” clearly and deeply what marketing is all about. Seth’s mantra that I have adopted throughout my career is rooted in his “Purple Cow” book – or to quote a title of another book, “Differentiate of Die” – especially nowadays where there is so much marketing noise out there, we must find a way to get noticed (Purple Cow) and then find a way to engage at a deep and meaningful way in order for marketing to actually generate results.

Jonathan: Zev thanks for your time and insights, and one can read more about Zev and his marketing, sales and customer service approach at www.ledaza.com.  You can also reach him at zev@ledaza.com or call him on his cell because that’s how he’s most accessible at 631.875.4103.

Visa's new Claims Resolution Initiative (VCRI)

A few months ago, Visa published a brief on their new Claims Resolution Initiative.  It outlines their process with dealing with disputes and fraud, because of the rapid increase in both (in terms of relative and absolute frequency).  Here is their brief.

https://usa.visa.com/dam/VCOM/download/merchants/visa-claims-resolution-efficient-dispute-processing-for-merchants-VBS-14.APR.16.pdf

Interview with Doug Bend

Doug Bend

Bend Law Group

Jonathan: I recently spoke to Doug Bend of the Bend Law Group about how to best create layers of defense for a retail business

Jonathan: Before getting to how a business should create layers of defense, what exactly are we defending against?

Doug: Our firm has counseled hundreds of business owners, including many retail businesses. The owners who sleep the best at night are those who have made strategic legal and insurance investments to protect their business and personal assets. That's why we recommend four layers of defense for small business owners.

Jonathan.  Ok.  What’s the first layer of defense?

Doug:  It's hard to overstate the amount of litigation that could be avoided by great customer service. The saying "penny wise and pound foolish" is never more true than when it comes to a customer potentially suing you for negligence. All it takes is for an unhappy customer to complain to an attorney at a cocktail mixer who responds, “You should sue!”.  The least expensive legal defense you will ever pay is apologizing and comping the customer product or providing them with a discount. If a customer was harmed at your business, apologize and be quick to fix whatever might have caused the injury, and err on the side of reimbursing the customer's reasonable, documented expenses. 

Jonathan:  And if you are able to nip this problem in the bud, not only might you prevent potential lawsuits, but you might turn what could have been a 1-star review into a 5-star review. 

Doug:  Yes, you might gain new customers and not lose any potential customers because of the bad PR.

Jonathan:  I’m sure that sometimes the apology and offers to reimburse the cost of products does not insulate a retail business from unhappy customers who want a pound of flesh.  So what’s the next layer of protection for retailers?

Doug:  Yes, even with great customer service there may still be a lawsuit. A solid insurance policy can help cover the costs of the litigation, and if you lose the lawsuit, the damages.  Be sure to know what the insurance policy covers and what it doesn't. Many mistakes occur when a business believes they have coverage when they actually don't. They're only left to find out after a potential claim has been brought to their attention.

Jonathan:  What’s the final layer of protection?

Doug:  A properly formed and maintained legal entity can serve as a crucial last line of defense to help protect your personal assets from your business activities. If a customer isn't satisfied with your apology and your insurance don't cover the claim, a legal entity can serve as a final backstop to prevent the customer from going after your personal assets. Consult with a business attorney and your CPA about the best type of legal entity for your business, as there isn't a one-size-fits-all legal entity choice.

Jonathan:  This last layer of protection sounds like the very first thing a business owner should do.

Doug: A legal entity certainly provides the most bang for the legal buck for most retail businesses

Jonathan:  I know there is also a bit of pushing between the attorneys and the accountants over the ‘best’ legal structure for a business.  The attorneys are looking for protection and the accountants are looking at tax efficiency, and they may not come up with the same answer.  Do you have a feeling which should prevail?

Doug: Many of our retail clients form an LLC, but there is not a one size fits all answer. It depends on each client’s goals, sources of financing and other factors to make sure we select the best legal entity for their business.

Jonathan:  Many thanks for your time as I know how precise your time is and this is not a billable event.

Doug:  Thank you for this opportunity to talk, and if anyone would like to discuss business formation, I’m reachable.

Jonathan: Doug Bend can best be reached at the Bend Law Group, 2181 Greenwich Street, San Francisco, CA. 94123, (415)-633-6841, Doug@bendlawoffice.com. Bend Law Office Website

Interview with Jan Roos

Jan Roos

CaseFuel

Jonathan: I recently spoke to Jan Roos of CaseFuel with the goal of learning the key factors to creating a seven figure law firm.  Below is an edited version of our conversation.

Jonathan: What does it take to build a multimillion dollar (law) practice?

Jan: At CaseFuel, we’ve spoken to literally hundreds of law firm owners ranging from solo practitioners who are just starting out to massively successful firms.  Fortunately, success leaves clues, and after speaking to many practice owners we’ve uncovered the four commonalities among practice owners that reached 7 figure annual revenues.

Jonathan: What’s the first factor?

Jan: Know your numbers. Focusing on objective measures for your business is one of those truisms that’s trotted out by many but implemented by few. Sure, we all check bank account balances and see a profit and loss sheet at least once a year when we file taxes, but the firms that grow know a lot more than that.  They set goals.  For example, if you take $1,000,000 and divide it into 12 months, it’s $83,333.33 per month.  If your goal is to hit seven figures you need to average $83,333.33 per month.  Going deeper, fast growing firms are able to easily convert this into case files required to hit that number by knowing their average case value. Let’s say you run a family law practice and made $30,000 last month on 6 new cases. Doing some quick math, the average case value is $5,000.  If 7 figures is your goal, you now have the much more tangible figure of 17 cases ($83,333.33/5000, rounded up) to hit for that seven figure monthly run rate.  Now you can take this further along and think about how many of these 17 cases can you expect from referrals, your website, networking, etc. 

Jonathan:  So the goal is to know what you need, and how you can get there, by breaking the entire practice into smaller, more manageable parts?

Jan: Yes, by breaking things down into manageable chunks, you’re setting yourself up for incremental gains that will result in real money in your checking account regardless of whether you make seven figures this year or not. And that’s worth investing time into.

Jonathan: What’s the second factor?

Jan: Practices need to focus their energy on predictable and scalable channels.  We all want to get referrals, but it’s not possible to know with certainty how many referrals you are going to get next month.  In our world of search engine marketing, we can easily look up the number of people searching for ‘divorce lawyer + CITY’ in a given month, usually numbering in the thousands.  It’s knowable.  You could also host workshops, doing “lunch and learns” with captive audiences, and you’ll get real good knowing how many will attend.  Once you get a scalable channel locked in, it’s just a matter of how much you want to keep investing to keep the leads coming in.  One more point about knowing what your predictable and scalable channels will yield for your practice, you should know what the cost per case file for any predictable channel you have, so that when you get a windfall you can choose where to invest that money to get the highest return if growth is your goal.

Jonathan: How many different channels would you suggest a firm pursue?

Jan: I definitely recommend having multiple channels established so as not to become dependent on any one, but how you get there is a different question.  If you don't have a lot of time I don't recommend pursuing more than one channel at a time without the help of a professional.  The learning curve can be steep, and the old adage of chase two rabbits and get zero will apply more often than not.  If you have the resources (time/money/manpower) to pursue multiple channels, especially with the help of a specialist, you can go up to two or three at a time. 

Jonathan: Excellent.  What’s the third factor?

Jan: Owning the intake process.  I recently interviewed someone on our podcast who concluded that firms are leaving millions of dollars of cases on the table by not focusing on intake.

In one instance, his company was able to help a firm post 200 new case files from leads that hadn’t been contacted in over 9 months. To think that this was accomplished on the coldest of cold cases paints a frightening picture of what could be possible by following up on people that are not on your radar.  An interesting fact from the business world at large is that the top compensated person aside from the CEO in most cases is the person handling sales. In law firms, the person handling sales is typically the lowest compensated person working at the front desk. 

Jonathan: Yikes. The lowest person on the totem pole is determining so much of firm’s success.

Jan:  Yes.  There are certainly firms out there that are losing out on potential case files due to manners on the phone, slow to call back, missed calls, or lack of follow up on ‘maybes’ and appointment setting.  Putting this into numbers, we’ve seen firms with the best intake booking 20% of inbound leads from the internet into case files.  This is double the 10% industry average, and the best part is that you don’t have to change your existing spend or marketing activity.  We like to ask (practices) if you have 20 minutes a day to pick up another case file per week.  If you’re committed to growing a practice, the answer is probably yes.

Jonathan: What’s the final factor that multimillion dollar practices have?

Jan: All of them are committed to success.  For example, calling back someone who said ‘not right now’ is going to be a less pleasant conversation than calling back a hot referral. This is one of the major reasons firms trying out new marketing channels slide back to networking after a few months.  If you’re committed to growing, you need to commit to ownership of the results you’re getting from all of your channels. In almost every city and practice area in the country, there are people posting case files from the same opportunities you have.  The onus falls on you if they’re getting results and you’re not.  Commitment is the difference between the client of ours that has been posting multiple high value personal injury cases per month for the last 3 years and the one the next town over that insisted that online marketing was impossible to build a business on after 2 months.  Both of them were getting similar lead volumes and levels of qualification.

The first was focusing on the 20% that closed, treated every case as a potential opportunity and did their best to follow up; the second was focused on the 80% that didn’t, took their negative expectations into their calls and it affected the entire business. 

Jonathan: I suspect that once these four factors are in place, the practice will operate at a higher level, even if it does not become a seven figure practice.  Jan thank you for your time

Jan: Thank you.  If anyone would like to speak to me about the process we use to generate case files for growing practices all over the country, feel free to drop a line over at casefuel.com.  You can also listen to the Casefuel podcast and hear what some experts have to say about marketing your practice. 

Jonathan: Jan Roos can best be reached at CaseFuel, 166 W 4th St Ste. 5, New York, NY 10014, E-mail jan@casefuel.com
Website: Case Fuel

Interview with Alex Miller

Alex Miller

Millennium Medical Solutions
@Alex_Miller_MMS

Jonathan: I had the pleasure of sitting down with Alex Miller of Millennium Medical Solutions with the goal of figuring out the key questions restaurant owners should be asking with regard to health insurance which then lead to a larger HR picture.  Below is an edited version of our conversation.

Jonathan: Alex, everyone knows healthcare laws have been going through lots of changes.  What should restaurants owners ask their healthcare broker?

Alex: The first questions is “what is their method for controlling healthcare costs”?  Using data and benchmarking they should be able to show you where your premium falls in comparison to restaurants similar to yours.  They will also negotiate with carriers to get you the best rate and suggest alternative options for funding your benefits.

Jonathan: I often say rate or cost does not mean much unless you consider value.  So what should they expect for the best rate?

Alex: “Best” refers to the best brokers and the best carriers.  The best brokers will be able to provide you with references in similar industries and demographics to yours. This guarantees your benefits broker is focused on the specific types of products your employees need.  The best brokers are the ones who are invested in your employees and want them to completely understand their benefit options. They will host informational sessions and schedule employee meetings so everyone can understand what they are getting.  Lastly, you want your broker to be accessible in case you ever need them.  Someone needs to always be available to help you if you have a question about your plan or are having trouble making a claim.  This dedicated contact person can help you resolve any issues and answer questions.

Jonathan:  And what about best carriers?

Alex: The best (carriers’) insurance programs can directly impact employee turnover, retention numbers, workplace productivity, job offer acceptance rates, and candidate quality. With the ability to affect your organization at a very large scale, it is important to have a broker and carrier who really outperforms.  A good broker knows the pros and cons of the carriers and can steer you in the right direction.  You might not be able to tell the right decision immediately, but the wrong choice can really impact you and you don’t want to experience those shock waves.  

Jonathan: Health insurance is often thought of as a retention tool because employees or potential employees want to know that they have good coverage.  When framed this way it sounds more like HR than just health insurance.

Alex:  It is part of the HR sphere.  A good broker takes compliance to the next level. They will supply you with all of the tools and information you need in order to make informed decisions.  They will act as a trusted partner who works strategically with HR, supplying the vital tools for success; tools such as online enrollment and outsourcing services. You want your broker to be a total solution provider for your organization.

Jonathan:  Talk to me about PEOs (Professional Employer Organization)?

Alex:  A PEO may very well be the answer to the common question, “How do we get into a large buying group for healthcare?  We have young employees and likely rated as a low risk (profile)”.  A restaurant may be part of a buyer group for everything else but for healthcare they cannot combine with other businesses.  With a PEO a small business can underwrite and indeed get large group rates and yield a 15-40% medical insurance savings alone.  For example, for New York businesses, the rates are the same whether the group is 28 or 58. Additionally, for Restaurant Execs there are unique benefits no longer offered on New York SMB Market.  The biggest compliment we hear is that you have empowered our restaurant with simplicity, choice and a sustainable solution needed to attract and retain our greatest asset - our people. 

Jonathan: OK I understand that PEO or large buying group using payroll and benefits has taken off. Is this appropriate for restaurants?

Alex:  So the PEO can get pricey depending on the number of participants enrolled on a health plan. I would not say this is an automatic for all restaurants.  That said, if the PEO can save enough on the medical to offset admin costs and the company can save valuable time then it could work.  The average man hours saved is 10 hours per month.  There is empirical evidence that companies using a PEO grow faster and stay in business longer.  I would simply say why keep doing the same thing and expecting a different result.  At renewal, you should be kicking the tires with an experienced PEO expert.  Borrowing on 20 years of industry experience and coming from Blue Cross (from years ago) we are in a unique position to help our clients. 

Jonathan:  If the PEO does not make sense do you then advise they simply go back to their state market? 

Alex:  Clients today are sophisticated and demand simplicity and value.  As an alternative to the PEO we offer a technologies exclusive via Private Exchange.  This tech emulates the defined contribution cafeteria style multiple plan offering with, a Benefits/Payroll/Tech convergence if you will.  The admin costs are a fraction of a PEO but there are no large group medical discounts.  This is a great affordable fall back option to gain competitive advantage for our restaurant groups.  

Jonathan: Alex, thank you for your time

Alex: Thank you, and everyone should feel free to reach out to me.  I’m happy to help restaurant owners or other business owners get the best answers so that they can make the most informed decisions.

Jonathan: Alex can best be reached at Millennium Medical Solutions,
200 Business Park Drive, Suite 204, Armonk, NY 10504, (914) 207-6161, 
email: AlexM@medicalsolutionscorp.com
website: Millenium Medical Solutions

No more signing

Customers no longer need to sign receipts to complete transactions.  This can make operations easier for many merchants.  We have some concerns that even though signing is not required, the mere act of signing a receipt might act as a deterrent to fraud and chargebacks.  Just something to think about.