12 Month Sales Forecast from SCORE
April 15th, 2010Entrepreneurship – United by the Power of Ideas
April 14th, 2010Author Jim Collins’ Home Page
April 14th, 2010The Michelli Experience
April 14th, 2010The New Gold Standard
April 14th, 2010The One Minute Entrepreneur
April 14th, 2010The One Minute Entrepreneur by Ken Blanchard and Don Hutson and Ethan Willis, provides insights on setting a firm foundation and building a successful business. Click here for a summary of the book.
Good to Great
April 14th, 2010Good to Great, by Jim Collins, provides insights on how some companies have made the leap from being good to being great. For a summary of this book, click here.
Strategy and the Fat Smoker
April 14th, 2010Strategy and the Fat Smoker by David Maister
Strategy and the Fat Smoker, by David Maister, reminds us of the need to take action on those obvious things your business needs to do but often overlooks. For a brief summary, click here.
The New Gold Standard
April 14th, 2010The New Gold Standard by Joseph A. Michelli
The New Gold Standard by Joseph A. Michelli is a book based on the five leadership principles used by The Ritz Carlton Hotel Company. The principles are “Define and Refine,” “Empower through Trust,” “It’s Not about You,” “Deliver Wow!” and “Leave a Lasting Footprint.” You can check out the book and the book’s website, the author’s website, or read this great review by Michael Avari.
Outliers
April 14th, 2010Success isn’t just a result of intelligence. Hard work, persistence, and the right circumstances are all part of the mix – as Malcolm Gladwell will show you in Outliers. Check out this Powerpoint for a great book summary or check out author Gladwell’s website.
Exceeding Customer Expectations
April 14th, 2010Exceeding Customer Expectations by Kirk Kazanjian
Exceeding Customer Expectations by Kirk Kazanjian will show you how Enterprise, the #1 car rental company in America, created award-winning customer service while developing and keeping exemplary employees.
Shadows of the Neanderthal
April 14th, 2010Shadows of the Neanderthal by David Hutchins
Hutchins uses the model of a caveman exploring the world to teach the reader important lessons to planning and growing an organization. Shadows of the Neaderthal has been praised for its humor and cleverness.
How the Mighty Fall and Why Some Companies NEVER GIVE IN
April 14th, 2010How the Mighty Fall and Why Some Companies NEVER GIVE IN
Jim Collins 2009
Stage 1 Hubris Born of Success
Kicks in when people become arrogant, regarding success virtually as an entitlement, and they lose sight of the underlying factors that created success un the first place
Stage 2 Undisciplined Pursuits of More
Stray from disciplined creativity that led them to greatness, making undisciplined leaps into areas where they cannot be great or growing faster than they can achieve with excellence, or both
Stage 3 Denials of Risk & Peril
Leaders discount negative data, amplify positive data, and put a positive spin on ambiguous data. Those in power blame external factors
Stage 4 Grasping for Salvation
Looking for silver bullet saviors or actions
Stage 5 Capitulation to Irrelevance or Death
Accumulated setbacks and expensive false starts erode financial strength and individual spirit to such an extent that leaders abandon all hope of building a great future.
THE SILENT CREEP OF IMPENDING DOOM
Effective teaching: don’t try to come up with the right answers; focus on coming
Up with the right questions
Organizational decline is largely self-inflicted
Every institution is vulnerable
FIVE STAGES OF DECLINE
Great companies can stumble badly, and recover.
STAGE 1: HUBRIS BORN OF SUCCESS
IT’S FAR BETTER TO CREATE YOUR OWN FUTURE, REPEATEDLY, THAN TO WAIT FOR EXTERNAL FORCES TO DICTATE YOUR CHOICES
Hubris –excess pride that brings down a hero, or outrageous arrogance that inflicts suffering upon the innocent
To remain successful you have to keep pushing with as much intensity as when you first began building that flywheel
A core business that meets a fundamental human need rarely becomes obsolete
Great companies foster a productive tension between continuity and change
Great companies know the differences between current practices and enduring principles of their success
Companies that constantly change without consistent rationale will collapse
MARKERS FOR STAGE 1
- SUCCESS ENTITLEMENT, ARROGANCE
- NEGLECT OF A PRIMARY FLY WHEEL
- ‘WHAT’ REPLACES ‘WHY’
- DECLINE IN LEARNING ORIENTATION
- DICCOUNTING THE ROLE OF LUCK
STAGE 2: UNDISCIPLINED PURSUIT OF MORE
Big acquisitions taken out of bravado rather than penetrating insight and understanding- can bring you down
Over reaching explains how the once invincible self-destruct, not complacency
Innovation can fuel growth, but frenetic innovation can send a company through the stages of decline
Hubris can lead to making brash commitments for more and more and more. Then one day you cannot deliver and fail
A constraint on growth and not the fundamentals can drive decline
Do not confuse growth with excellence
Problems of stage 2:
- undisciplined pursuit of more
- discontinuous leaps into arenas with no burning passions
- actions inconsistent with core
- addiction to undisciplined scale
- neglect of core
- use of organization for personal gain
- compromise values
Packard’s Law- no company can consistently grow revenues faster than its ability to get enough right people, to implement that growth and still become a great company
Any exceptional company depends first and foremost upon having self-managed and self-motivated people
If you have the right people, who accept responsibility, you don’t need to have a lot of senseless rules and mindless bureaucracy
Bureaucracy erodes the ethics of freedom and responsibility and breeds mediocrity
Right people see themselves as having responsibilities and not jobs- personal accountability
Leaders who fail the process of succession set the enterprise on the path of decline
Best leaders see themselves as unimportant as compared to building an executive team based on core values that are not dependant on a single leader
MARKERS FOR STAGE 2
- UNSUSTAINABLE QUEST FOR GROWTH, CONFUSING BIG FOR GREAT
- UNDISCIPLINED DISCONTINOUS LEAPS
- DECLINING PORTION OF RIGHT PEOPLE IN KEY SEATS
- EASY CASH ERODES COST DISCIPLINE
- BUREAUCRACY SUBVERTS DISCIPLINE
- PROBLEMATIC SUCCESSION OF POWER
- PERSONAL INTERESTS PLACED ABOVE ORGANIZATIONAL INTERESTS
STAGE 3: DENIAL OF RISK AND PERIL
Great companies experiment with a lot of little things that might not pan out
3 questions of ambiguous data:
1- What’s the upside, if it turns out well?
2- What’s the downside, if events go badly?
3- Can you live with the downside?
Deterioration in gross margins, current ratio, or debt-equity ratio indicates an impending storm
Pay attention to customer loyalty and stakeholder engagement
Negative signs: externalizing blame; obsessive reorganization
There is no organizational utopia
MARKERS FOR STAGE 3:
- AMPLIFY THE POSITIVE, DISCOUNT THE NEGATIVE
- BIG BETS AND BOLD GOLDS WITHOUT EMPIRACLE EVIDENCE
- INCURRING HUGE DOWNSIDE RISK BASED ON AMBIGUOUS DATA
- EROSION OF HEALTHY TEAM DYNAMICS
- EXTERNALIZING BLAME
- OBSESSIVE REORGANIZATION
- IMPERIOUS DETACHMENT
STAGE 4: GRASPING FOR SALVATION
This starts when looking for the silver bullet
The signature of mediocrity is chronic inconsistency
Be rigorous about what NOT to do
MARKERS FOR STAGE 4:
- A SERIES OF SILVER BULLETS
- GRASPING FOR A LEADER AS SAVIOR
- PANIC AND HASTE
- RADICAL CHANGE AND ‘REVOLUTION’ WITHOUT FANFARE
- HYPE PRECEDES RESULTS
- INITIAL UPSWING FOLLOWED BY DISAPPOINTMENTS
- CONFUSION AND CYNICISM
- CHRONIC RESTRUCTURING AND EROSION OF FINANCIAL STRENGTH
STAGE 5: CAPITUALTION TO IRRELEVANCE OR DEATH
CASH is critical
If no cash, no way to continue the fight
If you have clear and inspired purpose built upon solid core values, then the noble course may be to fight on, to reverse the decline, and to try and rekindle greatness
WELL FOUNDED HOPE
Right leaders feel a sense of urgency in good times and in bad, whether facing threat or opportunity
Right people will drive improvement and will never take well to manipulation
The path to recovery lies first and foremost in returning to sound management practices and rigorous strategic thinking
Lack of management discipline correlates with decline
Adherence to management discipline correlates with recovery and ascent
The truly great come back from setbacks stronger than before
NEVER GIVE IN:
- be willing to change tactics, but never give up your core purpose
- never give up on the principles that define your culture
- never give up on building a great company
- never give up on the discipline to create your own future
- never give up faith in your ability to prevail
SUCCESS IS FALLING DOWN AND GETTING UP ONE MORE TIME WITHOUT END.
Richest Man in Babylon
April 14th, 2010Richest Man in Babylon
George S Clason 1926
1- Start thy purse to fattening
2- Control thy expenditures
3- Make thy gold multiply
4- Guard thy treasures from loss
5- Make of thy dwelling a profitable investment
6- Insure a future income
7- Increase thy ability to earn
Foreword
Success means accomplishments as the result of our own efforts and abilities
The Man who Desired Gold
A man’s wealth is not in his wallet
Income is the thing
If you never seek it, you will never get it
The Richest Man in Babylon
If I was to achieve what I desired, time and study would be required
I discovered wealth when I decided that a part of all I earned was mine to keep- not less than 10%
Pay yourself first
Opportunity wastes no time on those unprepared
Wealth grows wherever men exert energy
Make your treasure work for you
Insure an income for the future
Invest thy treasure with the greatest caution
Counsel with wise men
Enjoy life while you are here
Live according to your income
Seven Cures for a Lean Purse
Start Thy Purse to Fattening
Live on 90% of what you net, save 10%
Control thy Expenditures
Live on 90%
Make thy Gold Multiply
Guard thy Treasure from Loss
Make thy Dwelling a Profitable Investment
Insure a Future Income
Provide in advance for old age and protecting your family
Increase thy Ability to Earn
Study and become wiser
Be a continual learner
Respect yourself
Meet the Goddess of Good Luck
To attract good luck, you must take advantage of opportunities
Five Laws of Gold
1- Gold comes to those that save 10%
2- Invest your savings cautiously
3- Use the counsel of the wise advisors
4- Gold leaves those investing in things they are not familiar with
5- Gold leaves those seeking impractical returns
The Gold Lender of Babylon
If you desire to help a friend, do so in a manner that does not make their burden yours
Those in the throes of great emotion are not safe risks
The wise lender wishes not the risk of the undertaking, but the guarantee of safe repayment
The first desire is safety
The second desire is that it earn more gold
Better a little caution than a great regret
The Walls of Babylon
We cannot afford to be without adequate protection
The Camel Trader of Babylon
He who spends more than he earns is sowing the winds of needless self-indulgence from which he is sure to reap the whirlwinds of trouble and humiliation.
A free man looks at life as a series of problems to be solved and solves them, while the soul of a slave whines.
Where the determination is, the way will be found.
The Luckiest Man in Babylon
Thou can’t get ahead by shirking
Work is the best friend I’ve ever had, it brings me all the good things I’ve ever had
Decide what thou desires to accomplish and then work will aid thee to achieve it.
Check out The Richest Man in Babylon in Paperback
2020 Barhorst Insurance Group (BIG) Billion Strategic Plan
April 14th, 20107 Tips for Building a Successful Agency
April 14th, 2010Entrepreneur v. Intrapreneur
April 14th, 2010Outliers Book Summary
April 14th, 2010Passage to Perfection
April 14th, 2010What History Has Taught Us
April 14th, 2010Gung Ho!
April 14th, 2010Gung Ho! by Ken Blanchard provides insights on how to increase your businesses morale and productivity.
Bringing Out the Best in People
April 14th, 2010Bringing Out the Best in People by Aubrey C. Daniels helps you tap into your Team’s discretionary effort. If you want to create an environment where individuals meet or exceed their goals, don’t walk but run to buy this book.
25 Ways to Win with People by John Maxwell
April 14th, 201025 Ways to Win with People: How to Make Others Feel Like a Million Bucks by John Maxwell
25 Ways to Win with People by John Maxwell is the companion book to Maxwell’s Winning with People. Read this shorter manual to discover specific ways to improve your interpersonal relationships.
Hiring the Best
April 14th, 2010Learn how to direct interviews your way. With over 400 interview questions and tips on hiring the best person for the position, Hiring the Best will help any business own find the best employees.
Now, Discover Your Strengths
April 14th, 2010Now, Discover Your Strengths by Marcus Buckingham & Donald O Clifton
This inspiring book deals with the power of knowing, leveraging and playing to your strengths. This helps you understand why it is better to continually hone your strengths rather than spend your self-development time focused on your weaknesses. Understanding and playing to your strengths is something every entrepreneur should want to do to make their business endeavors succeed.
First, Break All The Rules
April 14th, 2010First, Break All The Rules by Marcus Buckingham
This is the second book by this author focusing on leveraging a persons strengths to generate enduring profits. The book provides you with positive steps and measurement questions to determine is you have, or are developing, an environment that attracts and retains talented employees. Solid managers are key. This is a must read in my opinion.
Who Moved My Cheese?
April 14th, 2010Who Moved My Cheese? by Spencer Johnson, M.D.
Who Moved My Cheese? is a great book on how to deal with change in your work and in your life..
PROFIT Thru Leadership – Business/Life Coaching
April 14th, 2010Wonderlic Hiring Solutions
April 14th, 2010Pre-Employment Testing Materials
April 14th, 2010Applicant Rejection Letter
April 14th, 2010Applicant’s Statement of Clarity
April 14th, 2010Authorization for Prior Employer to Release Information
April 14th, 2010Background Check Authorization
April 14th, 2010Commercial Lines Pre Hire Test
April 14th, 2010Employee Turnover Calculator
April 14th, 2010Hiring Process Flow Chart
April 14th, 2010Hiring Process PowerPoint
April 14th, 2010Insurance Procedures Pre Hire Test
April 14th, 2010Interview Questions
April 14th, 2010Luck Test
April 14th, 2010Personal Lines Pre Hire Test
April 14th, 2010Reference Check Completion Form
April 14th, 2010Team Dynamics
April 14th, 2010Team Dynamics Score Grid
April 14th, 2010Telephone Interview Questions
April 14th, 2010Values Survey
April 14th, 2010EasyFile Document Imaging
April 14th, 2010Microsoft Office Online
April 14th, 2010Dual Monitor Video
April 14th, 2010Two monitors are better than one
April 14th, 2010Quality is Free
April 14th, 2010Quality is Free by Philip Crosby
This great book is as mainstay in my library. I reference it often when thinking about customer expectations, processes and changing or refining processes. It is a great tool for thinking about productivity/profitability and successfully serving customers.
What is Lean Six Sigma?
April 14th, 2010What is Lean Six Sigma? by Mike George, Dave Rowlands and Bill Kastle
This book combines Six Sigma and Lean Production to achieve success in your production process and workplace. With charts, diagrams, and graphs, this book is the key to making your business run more smoothly.
Business Process Improvment
April 14th, 2010This book provides a step-by-step guide to apply quality improvement techniques to your service-oriented business. Originally successful in the manufacturing sector, business process management can result in a more streamlined and better quality business.
Business Process Improvement Workbook
April 14th, 2010This is an update to Harrington’s Business Process Improvment. It contains helpful supplemental information and walkthroughs for people learning about BPI.
The Basics of Process Mapping
April 14th, 2010The Basics of Process Mapping by Robert Damelio
The Basics of Process Mapping is the beginner’s guide to process mapping, focusing on relationship and process maps. A short book, it provides all you need to know about beginning process mapping in a concise manner.
The World is Flat: A Brief History of the Twenty-First Century
April 14th, 2010The World is Flat: A Brief History of the Twenty-First Century
By: Thomas L. Friedman
This was an insightful book that is written to every audience. You don’t have to have a degree in computer engineering to understand the course of globalization and the cutting edge uses of technology. He does an excellent job of pinpointing different watershed dates in the past twenty years that have revolutionized the relationship between technology and business. This is an eye opening read for many who have not yet encountered the level of outsourcing that takes place day to day.
Daily Percentage of Calls Answered w/i 30 Seconds
April 14th, 2010Flow Process Chart
April 14th, 2010Phone Call Evaluation
April 14th, 2010Technology Audit Sheet
April 14th, 2010Jeffrey Gitomer’s EZine on Weekly Sales
April 14th, 2010The Chet Holmes Method
April 14th, 2010Simple Truths Books – by Todd Duncan
April 14th, 2010Raving Fans
April 14th, 2010Raving Fans: A Revolutionary Approach to Customer Service by Ken Blanchard and Sheldon Bowles
Raving Fans, by Ken Blanchard and Sheldon Bowles, provides a great example of how to learn what a customer really wants and meet that expectation. To read a brief summary, click here.
Selling the Invisible
April 14th, 2010Selling the Invisible by Harry Beckwith
Selling the Invisible, by Harry Beckwith, is a field guide to modern marketing. Click here to review a book summary.
The Ultimate Sales Machine
April 14th, 2010The Ultimate Sales Machine: Turbocharge Your Business with Relentless Focus on 12 Key Strategies by Chet Holmes
Entrepreneur Magazine callsThe Ultimate Sales Machine by Chet Holmes “much more than the average sales book.” Follow its advice and expcet success in your sales.
The Simple Truths of Selling
April 14th, 2010The Simple Truths of Selling by Todd Duncan
Sales expert Todd Duncan publishes another book on becoming a successful salesman in The Simple Truths of Selling.
Little Green Book of Getting Your Way
April 14th, 2010Little Green Book of Getting Your Way by Jeffrey Gitomer explores the elements of getting your way and persuading people. This best-selling author also wrote Little Red Book of Selling. Also, check out his website.
Little Red Book of Selling
April 14th, 2010Little Red Book of Selling: 12.5 Principles of Sales Greatness by Jeffrey Gitomer
How do you sell? Find out why people buy. Read Little Red Book of Selling by Jeffrey Gitomer to learn the principles of “why people buy.” Also, visit his website.
How to Get Your Competition Fired (Without Saying Anything Bad About Them)
April 14th, 2010How to Get Your Competition Fired by Randy Schwantz will show readers how to attract customers by getting them away from the competition. Attracting customers is one of the hardest parts of running a successful business, especially when they are already customers with your competitors. Schwantz will help you get rid of the competition by fixing the problems faced by their customers.
Benefit Selling – Auto Sales Script
April 14th, 2010Benefit Selling – Home Sales Script
April 14th, 2010Benefits Selling Life Insurance Outline Scripts
April 14th, 2010Benefits Selling Life Need Awareness Script
April 14th, 2010Sales Scripts – Price Objection Tools
April 14th, 2010Sample Sales Meeting Presentation
April 14th, 2010Guerilla Marketing Online
April 14th, 2010FloodSmart site for NFIP Agents
April 14th, 2010Publicity Hound
April 14th, 2010Marketing Outrageously
April 13th, 2010Marketing Outrageously: How to Increase Your Revenue by Staggering Amounts! by Jon Spoelstra
This a great book on how to be make your marketing stand out in the market today.
Editorial Reviews
Spoelstra (Ice to the Eskimos: How To Market a Product Nobody Wants) offers another fine book on creative marketing strategies and motivation. His book, which shows how considering marketing problems “outrageously” but consistently can benefit an organization, is instructive in its marketing ideas and stories of triumph. President of the professional sports division of Mandalay Entertainment, Spoelstra has held positions or served as a consultant with several sports teams, including the Portland Trail Blazers, New Jersey Nets, and Dayton Dragons. Here he describes how in his own experience a lack of adequate funds for marketing and advertising goals led to his “outrageous” approach. In each of the 17 chapters, Spoelstra illustrates one of “ground rules” of marketing, claiming that, for instance, each company must differentiate itself and that budget constraints need not prevent a company from doing its best work. His concerns for increasing revenue through marketing will be useful to professional marketers and students of marketing. Recommended for the academic and public libraries that serve them. Littleton Maxwell, Business Information Ctr., Univ. of Richmond, VA
Copyright 2001 Reed Business Information, Inc.
Guerrilla Marketing
April 13th, 2010All of Jay Conrad Levinson Guerilla Marketing books are excellent. They are great guides on how to the the most for your marketing with limited or no budget. A must-read for all entrepreneurers.
A Book Review*
Guerrilla Marketing
By Jay Conrad Levinson
by Michael C. Gray
December 29, 2006
How can a small business effectively promote itself without the financial resources necessary for “traditional advertising”?
In what is now a classic book, Jay Conrad Levinson describes many techniques that can be used to market a business with a “shoestring” budget.
Jay Conrad Levinson is a former advertising executive who worked at the J. Walter Thompson agency. He decided to create his own business helping entrepreneurs market their businesses successfully.
The first mistake of many small businesspersons is not understanding the vital role of marketing in building a successful business. Many of them are good at “doing” what the business does ‚Äì auto mechanics, chefs, inventors, accountants, chiropractors, dentists, hair stylists, etc. If they don‚Äôt have customers to “do the work” for, their businesses will fail.
Another mistake is not knowing what marketing initiatives have the best results, and what marketing initiatives have no results at all. The “marketing plan” often originates with an advertising salesperson from the yellow pages or a local newspaper. The businessperson may rely on the salesperson to write the advertising, when the salesperson doesn‚Äôt really have the necessary skill. The businessperson may not know the critical elements of a successful advertisement to look for.
Levinson recommends using marketing techniques for which results can be measured.
A third mistake is not making a sufficient financial commitment to marketing. The business that is able and willing to spend significantly more for marketing than its competitors has a significant advantage.
Levinson also explains how the demographics of the marketplace are changing, creating opportunities for businesspersons who design their businesses to satisfy the needs of growing customer niches.
Guerrilla Marketing is a worthwhile book for any businessperson to learn many different ways of effectively marketing his or her product or service.
The Service Profit Chain
April 13th, 2010The Service Profit Chain by James L Heskett, W Earl Sasser Jr., and Leonard A Schlesinger
The Service Profit Chain, by James L Heskett, W Earl Sasser Jr., and Leonard A Schlesinger, is an excellent book documenting the logic of quality employees and quality service driving quality business results. The book has a chapter that focuses on the need to market to existing customers so that they become loyal, advocating customers. For a review of this book, click here.
Buzzmarketing
April 13th, 2010Buzzmarketing by Mark Hughes gives you marketing advice from a master. Author Mark Hughes was behind the marketing for Half.com, which attracted millions of customers in a few years. This book will show you successful marketing without resorting to the traditional overused advertising techniques.
The Tipping Point
April 13th, 2010The Tipping Point: How Little Things Can Make a Big Difference by Malcolm Gladwell
This thought-provoking book is all about how little things can make a big difference as you prepare to promote your business. It focuses on how and why some messages, products, and behaviors seem to spread just like viruses, while others do not. This book will walk you through the concepts of: Law of the Few; Stickiness Factor; and Power of Context. Each of these concepts are key components of thinking through your own messaging and promotion. Check out another Gladwell book: Outliers (or check out the book review).
Creating Competitive Advantage
April 13th, 2010The Tipping Point: How Little Things Can Make a Big Difference by Malcolm Gladwell
This thought-provoking book is all about how little things can make a big difference as you prepare to promote your business. It focuses on how and why some messages, products, and behaviors seem to spread just like viruses, while others do not. This book will walk you through the concepts of: Law of the Few; Stickiness Factor; and Power of Context. Each of these concepts are key components of thinking through your own messaging and promotion. Check out another Gladwell book: Outliers (or check out the book review).
The Tipping Point: How Little Things Can Make a Big Difference
April 13th, 2010
This thought provoking book is all about how little things can make a big difference as you prepare to promote your business. It focuses on how and why some messages, products and behaviors seem to spread just like viruses, while others do not. This book will walk you through the concepts of: Law of the Few; Stickiness Factor; and Power of Context. Each of these concepts are key components of thinking through your own messaging and promotion.
Check out a Question & Answer session with Malcolm Gladwell about The Tipping Point
A&M Save the Date
April 13th, 2010Flood Insurance Information
April 13th, 2010Multifaceted Marketing Plan Presentation
April 13th, 2010Multifaceted Marketing Plan Template
April 13th, 2010Referral Contest
April 13th, 2010Referral Contest Rules
April 13th, 2010Renter’s Insurance Flyer
April 13th, 2010Texas A&M Game Plan Marketing Flyer
April 13th, 2010SBA – US Small Business Administration
April 13th, 2010SCORE – Counselors to America’s Small Businesses
April 13th, 2010Entrepreneurship and Education at the Kauffman Foundation
April 13th, 2010Envelope Budgeting Method
April 13th, 2010Beginner’s Guide to Financial Statements – SEC
April 13th, 2010Balancing Marriage and Business – Inc. Magazine
April 13th, 2010Business Plans Kit for Dummies
April 13th, 2010Business Plans Kit for Dummies by Steven Peterson, PhD, Peter E. Jaret, and Barbara Findlay Schenck
Business Plans Kit for Dummies, by Steven Peterson, PhD, Peter E. Jaret, and Barbara Findlay Schenck, is a great reference book, complete with a CD-ROM that provides sample business planning forms and worksheets. For an overview of the book, click here.
How to Read a Financial Report
April 13th, 2010How to Read a Financial Report by John Tracy
Do you find financial reports seem to be written in a foreign language? If so, How to Read a Financial Report by John Tracy will help you make sense of the number and provide you with a visual guide to help you navigate the process.
Art of the Start
April 13th, 2010Art of the Start by Guy Kawasaki
Art of the Start by Guy Kawasaki provides a guide to launching any type of new business project. By giving tips and directions, this venture capitalist and veteran of Apple Computers explains exactly how to create your best business practices.
Balanced Score Card
April 13th, 2010Balanced Score Card: Translating Strategy into Action by Robert S Kaplan & David P Norton
This is a great book for understanding why it is important to measure the financial performance of your company, but equally as important to measure customer satisfaction, business process & continuous learning/improvements. All of these measures allow you to view whether or not you are truly growing a successful, viable business. The book provides great examples and will cause you to think through all of the major components of your business. Bottom line- you must measure results to get results and understand your direction.
Financing Your Small Business
April 13th, 2010Financing Your Small Business by James Burk and Richard Lehmann
Finding funding can be one of the most daunting tasks of starting a small business. Financing Your Small Business will provide you with advice ranging from SBA loans to equity financing.
Rich Dad, Poor Dad
April 13th, 2010Rich Dad, Poor Dad by Robert Kiyosaki gives readers advice on how to become rich. He chronicles the lives of his father (poor) and his friend’s father (rich) to how to achieve financial success over a lifetime.
The Richest Man in Babylon
April 13th, 2010The Richest Man in Babylon: The Success Secrets of the Ancients by George Clason
Written in the 1920’s, this book provides timeless sound financial advice. Only 145 pages, its lessons are quick, direct, and easy to internalize. Its usefulness is apparent through its success and popularity over many generations seeking financial success.
12 Month Cash Flow Form – from SCORE
April 13th, 20102020 Barhorst Insurance Group (BIG) Billion Proforma
April 13th, 2010Barhorst Insurance Group (BIG) 2008 Budget
April 13th, 2010Five Year Proforma Template
April 13th, 2010Household Budget Considerations
April 13th, 2010Net Present Value Calculator – Microsoft Office Excel
April 13th, 2010Sample Budget Calculator – Microsoft Office Excel
April 13th, 2010Sample Business 1 Proforma
April 13th, 2010Building A Dynasty
March 31st, 2010What History Has Taught Us
March 31st, 2010Don’t let fears of a recession discourage you from starting or expanding your business. During economic downturns, it is widely believed that the business failure rate is high, consumers quit buying, and the economy drastically shrinks. Common wisdom (and the media) recommends that business owners adopt a “hunker down” mentality and hope for the best for their businesses.
However, history tells us otherwise. Economic downturns can create a great environment for you to start and expand your business. Costs are lower, and consumers are looking for alternatives and stability. The Great Depression created more millionaires than any other period in US history. Companies like Kellogg’s, Purina, Texas Instruments, and KFC all greatly benefited from the Great Depression.
Even now, the economy isn’t nearly as awful as many would have us believe. Texas home sales peaked in 2006 (and are still much stronger than the 1990’s), and January 2009 retail clothing and electronic sales were up. Stores selling luxury items like Coach and Nieman Marcus, continue to see profits as well.
But how do you profit? Most importantly, you need to stay alert and work harder. Improve your customer awareness and experience, make smart investments in growth, and increase your marketing. Be willing to do what others won’t do and do whatever it takes to expand and grow your business. If history teaches us correctly, many of the companies who work hard and make smart decisions will find themselves profiting from the current economic situation.
The PowerPoint “What History Has Taught Us” will show you who profited from the Great Depression and how you too can take advantage of an economic downturn. Check it out!
Strategic Planning
March 31st, 2010The idea of strategic planning conjures up pictures of rooms flip charts filled with outlines, motivating words, and organizational charts. To many it seems a daunting task with questionable outcomes, shallow thought, and lots of additional work.
Frequently that’s an accurate picture, but it doesn’t have to be like that. The planning process is much more palatable if it follows some basic rules. In business and personal planning, strategic thinking precedes strategic planning, and that must be followed by strategic doing. Unless the stated objectives degenerate into work, nothing of value can happen.
If done properly, the process of developing the plan is of more value and in the long run, more important than the plan. The engagement of key personnel to develop their own steps for completing objectives, and appropriate metrics for evaluating agreed upon goals or an end game contributes more to the outcome than does any written document.
In his book Seven Habits of Successful People, Stephen Covey emphasizes over and over that for any worthwhile endeavor you must always begin with the end in mind. Likewise, strategic planning begins with the definition of a measurable end game. Strategically it must have four components. (1) An active verb; what is to be accomplished must be clearly stated. Example verbs are; grow, change, achieve, become, and position. (2) A completion date; by when this action will be accomplished. Often time frames are unrealistic, so individuals creating the plan must argue, analyze, confront, and agree upon what will be accomplished by when. (3) A clear measurable result; this normally states the size, volume, change, or milestone that the plan is focused to accomplish. Examples include finances, sales, weight, education, personal achievement, and team or individual accomplishment.
The last component (4) who is accountable for what makes buy-in necessary. A plan developed and given to you by someone else has little or no buy-in; it must your plan. You must believe it, want it, and feel driven to make it happen or it probably won’t happen.
My experience in planning and doing has consistently shown that it’s more about the team than the plan. If the team chooses to be a team, any endeavor becomes much more possible than if a team is chosen or appointed.
Strategic planning IS difficult. It is time consuming, frustrating, and at times agonizing, but if properly done, it’s extremely effective and immensely rewarding.
Michael E. Workman has extensive work experience in distributor services, marketing, industrial sales, sales management, operations management, strategic planning, and profitability improvement. He is Professor Emeritus of the Industrial Distribution faculty at Texas A&M University, where he taught for nineteen years. He conducted the strategic plan for Barhorst Insurance Group – 2020 BIG Billion Strategic Plan.
Benefits of Entities
March 31st, 2010In the Game Plan, Warren Barhorst briefly discusses the necessity of the entrepreneur selecting the appropriate form of business entity. These are a few additional comments.
There is a smorgasbord of entity forms available which all impact tax, liability, ownership, control and management issues. Some are simple. Some are complex. To avoid getting lost in the details of the many alternatives, the following comments are limited to the corporation and LLC formats.
LIMITED LIABILITY
To operate in a sole proprietorship format or general partnership format is similar to a tight rope walker operating without a net. Yes, you can insure around many of the potential liabilities which are ready to pounce upon the small business owner, but, unfortunately, you can’t insure against every contingency. Why unnecessarily subject the assets which you have accumulated outside of your business, or which you may have inherited, to aggressive litigants suing on some novel theory not covered by the policy or for an amount in excess of policy limits? Just as large businesses form subsidiaries to isolate potential liability issues, you need to isolate the potential liability generated by your business enterprise from infecting your family’s personal assets. (The protection afforded by a limited liability entity such as a corporation or LLC is undermined whenever you provide a creditor of your business entity with your personal guaranty. The realities of operating a business, particularly at the early stages, may necessitate that you provide a personal guaranty. Obviously, to the extent possible, it is best to keep these to a minimum and get them cancelled ASAP once your business is on a sound financial footing.)
EASE IN TRANSFERRING A”SLICE” OF OWNERSHIP
The share or units in corporations and LLCs are easy to transfer. The individual assets held outside an entity usually are not. Although many types of licenses are personal, many others as well as permits, etc., belong to the entity and thus are transferable with the entity. Intellectual property rights, such as trademarks and service marks, are made easily transferable if owned by an entity rather than being personally held. If you have service marks, trademarks, permits, licenses, vehicle titles, etc., in a sole proprietorship, you are going to have to transfer each one of them if you sell all or part of your business. The same issue arises if you transfer an interest in the business to a family member, whether by a lifetime gift or a bequest at your death. If assets instead are held in a business entity (whether in a corporation, LLC, etc.,), the assets remain owned/titled in the entity, and all that need pass from you to the buyer or family member is the document evidencing your ownership of the business (eg., stock certificate for a corporation or membership or unit certificate for an LLC). You are transferring to them a “slice” of the corporation or LLC which owns all of the various assets of the business. This is much easier than transferring a slice of each and every asset of the business.
The easy transferability of the entity’s business interests also:
(1) increases the ability to raise capital and provides a better platform to attract additional investors if needed: and
(2) eliminates the need for separate probate proceedings at your death (in a state or states other than your state of residence) if business real estate assets are owned by your entity in other states. (If held individually by you, business real estate is subject to a separate probate proceeding in each of those other states.)
CENTRALIZED MANAGEMENT
The formation of a business entity also brings order to the management of the company. The responsibilities and authority of members of management can be clearly defined within the organization, as well as to third parties, such as banks and vendors, dealing with the organization. Also of importance is that management and control can be separated from less active or inactive owners of the business, in sometimes very creative structuring (ie., there can be differing ownership interests with differing voices in management and control).
TAX ISSUES
Selection of business entity or any applicable tax elections are best left to your individual consultation with your tax advisor who is familiar with your individual situation. Having said that, there are a few generalizing comments to be made about taxes and entity selection.
A regular “C” corp is taxed at two levels: the corporate level and then again at the shareholder level when net earnings are distributed. Put simply, there is double taxation. Not a good thing unless you really want to pay more than your “fair share” to the government. The corporation can make an “S” election with the IRS to basically be taxed as if the business was owned directly by each owner in each owner’s proportionate share. The corporation files a tax return but there is no tax liability due by the corporation. Put simply, you are only taxed once. You don’t have to be a theoretical physicist to figure out why the Sub-S election has been popular.
More recently on the scene is the LLC which provides both the benefits of limited liability and single level taxation. The popularity of the LLC is reflected in the numbers: nationally, nearly 2 new LLCs are formed for every corporation formed and over 34 LLCs are formed for every new limited partnership formed. (These numbers are from an unpublished 2009 study by Rodney Chrisman.)
For those entrepreneurs seeking tax filing simplicity (ie., no additional tax return), yet with the umbrella of limited liability, the one member (owner) LLC may be the entity of choice. The reason: a one member LLC does not file a separate tax return for the entity but rather reports on Schedule C of the Form 1040 of the tax return of the LLC owner (unless the LLC elects otherwise). The caveat, as Warren has pointed out in his book, is that you still have not removed yourself from a position of increased audit risk. Schedule Cs pose increased audit risks for Form 1040s.
You’re probably all asleep now. Talking tax issues usually puts a pretty heavy glaze over people’s eyes. But the tax issues are probably the most complex, but also one of the most important elements, in selecting the entity to use in your business. As they say, don’t try this yourself at home. Seek out professional advice for your situation.
WALK THE WALK
Whatever business entity format you choose, you need to be sure you respect the existence of the entity. The business assets are no longer is your back pocket. Entrepreneurs often achieve success because of their notorious nonconformity. This is not an area to express your nonconformity. It is extremely important that you always properly designate your capacity (eg., “XYZ, LLC, John Doe, President /Manager”) when signing documents. Ignoring this little detail can totally void your well planned efforts to build that fortress around your personal family assets because it may expose you to personal liability.
Other “window dressing” corporate formalities are also still important, but have been neutralized somewhat in the “piercing the corporate veil” offensive tactic employed by creditors trying to reach an owner’s personal assets. For example, the Texas Business Corporation Act and the new Texas Business Organizations Code both provide that failure to follow corporate formalities is not a basis to hold a shareholder liable for any obligation of the corporation. Other states may differ on this, so caution is still necessary.
SUMMARY
Regular “C” corporations, Sub-S corporations, LPs, LLPs, LLCs …. It’s an alphabet soup out there! It’s complicated! Do not try this at home without the help of a professional. But you need to educate yourself on the available alternatives. The important point is that if you are currently operating your business as a sole proprietor or in a general partnership with another owner, do yourself, your family, your retirement years, your stress level (and thus your health insurer) all a favor and contact a professional advisor and seriously look at reorganizing your business under one of the limited liability entities available in your state.
Marv Wurzer earned his J.D. from the University of Houston, followed by an LLM in Taxation from New York University. He is Board Certified by the Texas Board of Legal Specializiation in Tax Law. Since 1979, he has been a practicing attorney at Johnson & Wurzer P.C. in Houston, where he focuses in general business transactional practice with an emphasis on tax related issues and private foundations.
[The above is accompanied by the usual caveat: This article has been prepared for informational purposes only and does not constitute legal advice.]
Leadership Thoughts for the Aspiring Entrepreneur
March 31st, 2010One of the key ingredients to building a sustaining business is leadership. There have been many volumes written about leadership, trying to answer questions such as: are you born with it or is leadership learned? Do all leaders have the same traits? Is leadership situational? What are the differences between managers and leaders? All great questions, each one worthy of being part of a continuous learning process.
True leadership, which is needed to sustain your business is partially instinctual and partially a continuous learning process. The instinctual component comes from your general beliefs and approaches to dealing with people. If you have an ability to work with people; help them understand why they and the job they are doing is important; want them to develop into what ever their dreams might be; and also believe that customers are the reason you exist and not a nuisance- then I believe you have some of the instincts that are foundational building blocks for being a leader and not a managing boss. If this list of statements has you scratching your head or wondering why anybody would possibly want to help an employee reach their dreams, then you might want to think about looking to hire someone with the necessary skills and track record of successfully getting others to perform exceptionally well.
The learning part of leadership is part of life’s journey and your willingness to become a lifelong learner and observer of what makes people want to work, want to give their best efforts, and want to go the extra mile to make sure your customers have received the attention that will make them not only want to do business with you again, but will also cause them to recommend you to a friend. This learning will show up in the hiring practices you employ, the training program you implement, how closely you are able to match compensation to quality work, and how closely your actions and words align with each other, as you ask your team to implement new processes, serve customers, try new things, work harder and represent your business.
To be a leader you must be able to be in the trenches with your people, help them to understand what has to be done, when it has to be done, and to what specifications it must be done and then empower them to take the actions necessary to complete that objective or job. It does not mean that you do not take quick and decisive action for non-performers, because not taking action is contrary to doing what is best for the team and for the customers they serve. Taking action on non-performers is part of the alignment between action and words.
Being in the trenches can mean a variety of things to different businesses. The smaller your operation the more it means understanding how to do each job and being able to tell your staff, in a one-on-one setting, how that job fits into making the customer service proposition work. The larger your organization becomes, you must still find ways to communicate how a particular job or task fits into the service equation and that you understand the risks and rewards of being a team player.
Whether the business is large or small communicating with employees about where the company is headed, how it is doing and particularly how their role impacts the company’s success or failure, is essential. Those communications need to be made in a manner that works for all kinds of employees. Sending out an email is communication, but not the kind of communication that makes people feel personally accountable or a part of a team that cares about results and cares about them. An annual performance review is also communication, but not one that gives the employee an opportunity to grow and provide input throughout the year. If you were only talked with on an annual basis, how much a part of things would you feel? A leader finds the right way to communicate with their team on a continual, formal, and informal basis, being ‘corporate’ when necessary, but most often being personal in their communication style and approach.
True leaders understand that the key to having happy customers is having happy employees serving them. Happy employees are generally a product of a work environment that allows them to understand the entire process and understand why they are important in that process. It also allows them to continually grow or become the best that their dreams allow them to become, recognizes them for the work they perform and has leadership that can closely align their actions and words.
Leadership requires an interest in what makes customers happy, and more importantly what makes the people serving customers an excited motivated team. Leadership requires that your words and actions be constantly aligned and that you believe in people and their abilities.
Employee Turnover Cost
March 31st, 2010A few years ago, I was participating in a small business executive coaching group where we were asked to provide financial, human resource, and general business practice information pertaining to our companies so that the facilitator could build a benchmarking database for the group. The idea was to use the information to develop best practices for the major sections of our businesses such as sales, finance, human resources, and customer service.
We had to answer several questions concerning human resources that really opened my eyes to how important hiring employees that stick matters to a successful business. The first eye opener was that we had run over 300 employees through our operation in less than ten years of being in business. At first you might say 300 does not sound that bad, but when you consider we had two employees (Lisa and I) when we started the company five years earlier and there were less than 50 people working for us at the time, the number was eye opening! The second lesson was evaluating what the true cost of turnover is with an employee. Most business owners do not fully evaluate what choosing the wrong employee costs. When you start to consider all of the factors such as advertising, recruiting, hiring, training, lost productivity and lost business the numbers can range from 130% to 250% of an employees annual compensation for any one position depending on the positions complexity. If you look at my 300 employee turnover number from above and figure that my average annual turn over of employees per year was 30 (300/10) coupled with an average salary per employee of $25,000 and a low to moderate cost factor of 150% of the salary the total cost of our turnover was 1.125 million. Show me any business owner that would not like to put that type of revenue back into the business!
With any business concept there are thousands of ways to evaluate a situation. To evaluate your turnover cost, you can use Renovo’s employee turnover cost calculator, Google “cost of turnover” and pick from the 8.5 million options or go to the U.S. Department of Labor‚Äôs employee turnover calculator. Once you do a quick estimate, you will have to agree that picking the right employees from the start is most cost effective and what is best for growing your business.
It took me a few years to years to figure it out, but when I did we put a hiring process in place, adjusted it as needed and stuck with it. Our hiring process has not completely stopped our turnover, but we have over 100 associates in the operation today and we loose very few on an annual basis. As I stated in Game Plan, develop a hiring process, have your attorney examine it thoroughly and follow it. And when you are tempted to take shortcuts in the hiring process or do a favor when hiring your buddy, remember this: Your personal success or failure my ultimately be determined by your personnel success or failure.
Using a Hiring Process
March 31st, 2010Using a hiring process is vital to the long term success of your organization. As with any process or plan, it does not have to be perfect, it just has to be implemented consistently. We have been using the process outlined below for the past five years with good success. You are welcome to implement a process similar to this process in your organization, but I urge you to consult with an employment practices attorney to make sure your system is legal.
You can click on the highlighted text in the outline to see a sample document or the testing company we are using for that item. If you do not like the assesments we are using, just “Google” pre-employment testing and choose from one of the many tests that are available.
To make it easier for our hiring managers to follow the process we created a hiring process flow chart with sign off blanks at each step. We place one flow chart at the front of each applicants file to insure the process is being followed consistently.
1. Pre-screen Resumes
a. Look for relevant work experience and education
b. Look for job stability and advancement
c. Sort Resumes into two groups
i. Will try and contact for telephone interview
ii. Will not try to contact for telephone interview
2. Conduct Telephone Interview
a. Look for communication qualities your company requires
b. Use scripted questions to insure consistency
c. Look for eagerness to be interviewed
d. Tell Candidate how your hiring process works
e. Sort Candidate into two groups
i. Will bring in for first interview
3. Have Candidates Sign Release Documentation
b. Authorization of Background Check
c. Authorization for Prior Employer to Release Information
4. Administer Employee Paper Surveys
b. Luck Test
d. Industry Skill Assessments
ii. Commercial Lines Insurance
5. Conduct Initial Interview
a. Be Prepared
i. Office Clean and Organized
ii. Dressed as you expect Candidate to dress
c. Let them do the talking
d. Don’t try to sell them on your company at this time
6. Request Letter of Interest in the Position from Candidate
a. Check letter for grammar, spelling, readability and real interest in position
7. Review information collected from all Candidates
a. Sort Candidates into two groups
i. Continue Process
8. Check References
a. Send Authorization for Prior Employer to Release Information Form
b. Use scripted question
c. Fill our Reference Check Form
9. Review information collected from all Candidates
a. Sort Candidates into two groups
i. Continue Process
10. Have Candidates Take Internet Based Assessments
11. Review information collected from all Candidates
a. Sort Candidates into two groups
i. Continue Process
12. Order Background Investigations
a. Criminal
b. Drugs
13. Review information collected from all Candidates
a. Sort Candidates into two groups
i. Continue Process
ii. Send Rejection Letter
14. Conduct Second Interview
a. Dig deeper into Candidates experience and personality
i. Assessments will provide good questions to ask
c. Introduce Members of your Team
i. Peer interviews
ii. Round table interviews
iii. Avoid interviewer bias by asking for another opinion
d. Sell value of working for your company
i. Underpromise and overdeliver
15. Review information collected from all Candidates
a. Sort Candidates
i. 1st Choice
ii. 2nd Choice
iii. 3rd Choice
16. Administer Omnia Profile Benchmarking Assessment for 1st Choice
a. Review results to make sure Candidate fits culture and position
b. Make note of any hot buttons
17. Conduct Third Interview
a. Review any issues you may have
b. Review questions and concerns raised by Omnia Profile
18. Make Offer
a. Be prepared to make offer
i. Explain your company put on process
ii. Set expectation of employment
iii. Set expectation for training
iv. Explain benefits, vacation, etc.
b. Know what money you can offer
i. Minimum
ii. Maximum
c. Be prepared to negotiate
19. If Offer Not Accepted
a. Send Letter withdrawing offer
b. Repeat Step 16 for 2nd and 3rd Choice
20. If None of the Candidates Accept Your Offer
a. Find out why
i. Money
ii. Benefits
iii. Hours or work environment
iv. Wrong fit
b. Start process over from beginning
i. You only want the best
ii. Do not sort through your culled resumes to pick Candidates
Turbo-Charge Your Company
March 31st, 2010It’s amazing what a difference eighteen years can make. In the early to mid 1990’s, I was conducting training classes and selling training manuals and audio-cassette tapes to small businesses in Atlanta, Georgia. The training was in time management, personal organization, sales, communications, supervisory and leadership/management development. More often than not, I would hear from small business owners that they didn’t believe in investing in training their people. Their concerns were that they would spend the money to develop an employee and then that employee would leave and go to work for someone else. Although I would point out that their companies are only as good as the competency and caliber of their people, some chose not to make the investment.
My how times have changed. The good news is that not only are large corporations heavily training and developing their people, but now the small business sector has finally embraced the wisdom of doing so. Small business owners have finally discovered that by investing time and money into enhancing the skills of their employees, they will sell more, have satisfied, loyal customers, better leadership and management and provide a great place to work. This will, in turn, attract and retain top talent.
In 2006, the Texas Monthly published its list of “The Ten Best Companies to Work for in Texas.” Warren’s company, The Barhorst Insurance Group, was honored with being the sixth best company to work for in Texas. Warren is a huge believer in personal and professional development of himself and the members of his organization. It’s no surprise that he and his organization consistently out-perform and remain at the top of over 3,600 other Nationwide Insurance agents around the country. I have coached Warren along with several of his Leadership Team members, as well as provided training to his direct reports and Customer Service Team.
If you read about Warren’s company and the others who made it in the Top 60, you would have noticed they have at least one thing in common. Virtually all of them said they provide training, coaching, seminars, and continuing education opportunities.
Nowadays, if you want to attract and keep good people, you’ve got to have an organization that believes in and invests in the ongoing development and training of your team members, especially if you hire Generation Y’ers. In order to lure top talent, it has been common practice for a company to provide an Executive Coach in order to gain a competitive edge. The Executive Coach may work with the new hire to enhance his/her business skills, help achieve work/life balance or on any number of other areas for personal and professional growth.
In an effort to retain top performing individuals, Coaching is offered as a reward or to enhance the skills and competencies of an existing employee and of a newly promoted manager or sales professional. Coaching provides a one-on-one, tailored approach so a person is set up for success. When you provide coaching and other training to your team members, you and they will see opportunities available to them within your company. You will have provided them a career path and a reason to stay with your organization instead of leaving for greener pastures. Employees today are seeking opportunities and companies that will help them hone their skills, acquire new knowledge and abilities, and experience challenges.
If you’d rather have top-talent find you instead of you having to find and recruit them, in addition to retaining your high-caliber team members, consider creating a learning culture within your organization. Offer a variety of training and development opportunities where they will grow as individuals and in turn, help you grow your business.
Continuous Learning
March 31st, 2010Many people graduate from high school or college, think they can get a job, continue to make money, and be successful for the rest of their lives. Not only do they believe they will they continue to make money; they believe they will make more over time, sitting in the same job with the same skills they had at graduation. Their common perception is that since they are done with the classroom, they are done with learning. They have the skill set and abilities necessary to help them achieve in their careers and in their lives.
This couldn’t be further from the truth. Technology and business practices change over time, making it necessary for people to adapt. In addition, people don’t become better at their jobs by simply sitting at their desks, doing the same thing they’ve always done.
Every inspiring entrepreneur should understand the term “continuous learning.” Employees should strive to achieve continuous learning and training outside of a traditional classroom environment. By improving skills, employees make themselves more competitive and better assets.
What exactly is continuous learning? Carter McNamara, MBA, PhD, of Authenticity Consulting, LLC. describes it as a lifestyle: ‚ÄúSimply put, continuous learning is the ability to learn to learn. Learning need not be a linear event where a learner goes to a formal learning program, gains areas of knowledge and skills about a process, and then the learning ceases. If the learner can view life (including work) as a “learning program,” then the learner can continue to learn from almost everything in life. As a result, the learner continues to expand his or her capacity for living, including working‚Äù (http://managementhelp.org/trng_dev/design/cont_lrn.htm).
Fostering an environment of continuous learning will also help you (the business owner) continue relationship building. You are improving your relationship with your employees and creating a happier and more successful business environment. Your employees (and your business) will achieve more success through continuous learning.
Being a good employer means helping your employees achieve their goals. Ultimately, they may outgrow their job – that’s ok! They will continue on to other jobs, but they helped your business improve in the long run. In addition, they will continue to speak highly of your business, further increasing your networking and relationship building.
Most importantly, don’t forget how much continuous learning will improve your business in the long-term. Although you may already have a successful business with successful employees, don’t stop there. A good entrepreneur is always looking for the best ways to improve himself and his employees. Your employees are your greatest assets. Even though they may already be outstanding employees, there is always room for improvement. Implement and encourage continuous learning to make the most out of your employees and your business.
Don’t Drop The Client…All Systems Go…Customer Service Assembly Line…
March 31st, 2010Teamwork Exercise
Concept:
This game is a way to teach employees and teammates how each team member’s contribution affects the way a customer, product or process moves through your organization. It also illustrates the complexity and links in a business process ultimately showing your team that communication and following the process are the keys to success.
“Ah ha” Moments…”This is what it is like to do business with us”
- Affect absenteeism has on performance
- Affect attitude has on performance
- Teamwork
- Continuous learning
- Working under pressure
- Ability to succeed with limited resources and limited people
- Process improvement
- Ability to adapt to change
- Importance of training
- Planning
Items needed:
1. 20 feet of yellow rope or string
2. 16 feet of 1” white PVC pipe
3. Hack saw to cut pipe into:
a. (2) 24” Pieces representing the longest process
b. (2) 18” Pieces representing a long process
c. (3) 16” Pieces representing a medium process
d. (3) 12” Pieces representing a short process
e. (2) 6” Pieces representing a resource limitation
f. (4) 3” Pieces representing a employee problems
4. 6 to12 marbles representing your customer, product or service
5. Plastic bucket or paint can representing a happy customer or completed product.
6. (5) Index cards that can be used if help is needed in transferring marbles between pipe sections.
7. Candy bars or treats for team members as a participation reward
Instructions:
Lay the rope on the ground with one end acting as the start of your business process than curve the rope in several ”S” patterns to illustrate the different parts of the process you are demonstrating. Put the second end of the rope in the bucket to illustrate a satisfied customer or your finished product etc. Pass out all of the PVC pipes except the (4) three-inch sections and the (2) six-inch sections.
Explain to the group that the rope represents XYZ process and the marbles represent our customer or our procedures and the pipe sections represent the company’s departments, people, or processes and the bucket represents a happy customer or finished product. Use your creativity to correlate the yellow rope, pipe sections, marbles, and the bucket in the minds of your participants to a process, product line or service for you company. It always works well to have the group help you suggest the product line, process, departments or people that need to be holding the pipes on the yellow line.
Pick participants or get volunteers from the group that represent the different departments like accounting, customer service, sales, reception, operations and management that are in involved in the business situation your are trying to illustrate.
Explain that the marble must begin a the first pipe and always more forward towards the bucket and dropping the marble represents a dropped call, dropped customer, bad service, product defect or any issue you are working to improve in your operation. Let the group know that the marbles must go through every participant’s pipe and end up in the bucket. If they drop the marble, they must start back at the beginning of the process. Let them know the only tools they have at their disposal are themselves, the pipe sections and the index cards. Instruct the group that they cannot:
- Touch or connect the pipes together in any fashion
- Hold each others pipes while transferring the marble from on section to the other
- Touch the marble with there bare hands to transfer the marble from pipe to pipe
- Exchange pipe sections with another participant
- Move the rope or bucket
- Move their feet once the marble has been transferred to their pipe section.
Separate the participants from the rest of the group and give them five minutes for planning.
Heckling…Working under pressure:
While the participants are out of the room…
Explain to the rest of the group they will be the hecklers for this exercise. Pick six more volunteers. Hand out the (2) six inch pipes explaining that the pipes represent moderate issues like an employee who is not fully trained, “My computer is broken, I can’t work”, or “I have a bad attitude” etc. Hand out the (4) 3 inch pipes and explain that these represent big issue like “I am sick and cannot come in today” or “I quit, I did not want to work here anyway” or “I got “down sized” due to lack of sales” etc. Explain that as the participants are trying to move the marble through the tubes they should go up and take the participants larger tube from them and replace it with one of the short tubes and yell out “I am sick and cannot come in today” etc.
Explain to the group that they really need to apply the pressure every time a marble is dropped yelling out “Mr. Smith hates to be put on hold” or “Mr. Jones just cancelled his order because we messed it up” or Mrs. Smiles will tell ten of her friends not to buy from us” etc.
As the game gets going you can whisper in the persons ear that exchanged the long pipe with the short pipe to go up the person in the game with the short pipe and say “You can’t get it done I’ll just do it for you, go sit down” etc.
The game works well indoors or outdoors. You may have to police the participants from touching each others pipes, touching the marbles, and moving their feet while the marble in their pipe.
Group Discussion Questions:
- How did you plan your strategy?
- How effective was your plan?
- If you were to do the exercise again what would you change?
- What stopped customers or products from flowing smoothly?
- How did you feel about the resource limitations?
- How did you feel about the people limitations?
- How did you fell about the breakdowns (dropped marbles)?
- What was most frustrating about the exercise?
- What did it take for your team to succeed?
- How is this experience similar to work?
- Where does our current process break down?
- How do we find solutions to our problems?
- Do we have any repetitive breakdowns in our company?
- What actions can we take to stop breakdowns from happening?
- How can we communicate better when we see a breakdown on the horizon?
Adapted and changed from a similar activity found at www.teambuildingusa.com called Customer Connections.
The 5 Reasons Employees Don’t Perform Well
March 31st, 2010Employee non-performance is one of the most common topics of discussion in my coaching sessions with business owners and managers. Frustrations run high because the managers assume employees “should know” what a good job looks like. However, upon further questioning, many times the solution lies in the leadership abilities of the owner or manager. Without realizing it, the leader may be contributing to his team members’ lack of performance.
Below are five reaons why employees do not perform well along with the corresponding suggestions for improvement…
Reason #1 – DON’T KNOW WHY OR WHAT
Solution: Clarify or set goals and define standards and expectations. Paint a vivid picture of what a good job looks like. Let your team members know the “why” of what you ask them to do so they have the big picture and fully understand the importance of their jobs.
Reason #2 – DON’T KNOW HOW
Solution: This is about training. Have you done a proper job of traiing your employees so they have the knowledge, skills and abilities to satisfactorily perform? Do they have the correct tools, resources and support?
Reason #3 – DON’T KNOW WIIFM (What’s In It For Me?)
Solution: This one deals with motivation. People are motivated by what’s important to them. The more you understand and know your team members, the more you can provide a motivational environment where they will want to perform well because they benefit in some way from doing so. An example would be to give new projects and tasks to someone who likes to stay challenged. As long as you keep this person growing and stretching, she will be happy and productive. If she becomes bored, she may become unproductive and worse, troublesome.
Do you provide positive reinforcement for good performance and behavior? What are your reward systems? Are you rewarding the right things? Are you certain you’re not sending mixed messages? Many times leaders say they want strong, effective teamwork but they reward individual success.
Reason #4 – NOT CAPABLE
Solution: This is the proverbial Square-Peg-In-A-Round-Hole Syndrome. Implement Warren’s hiring practices to ensure a good fit between the employee and the knowledge, skills, abilities and characteristics required for the position.
Reason #5 – NOT WILLING
Solution: When a small business transitions from a “Mom & Pop” run organization to a more professional approach to leadership, employee accountability is implemented. Many times longtime team members will resist this accountability and think it doesn’t apply to them. Afterall, “they’re just like family”, so the new rules of conduct are for everyone else.
Unfortunately, if these employees are not able to make the transition with you, they will either quit or have to be asked to leave. Otherwise, they will be disruptive to any organization change effort. This person will not make a positive contribution to the success of the organization. This is especially tough for family owned and operated businesses where that person may be a son, daughter, brother, wife, or other relative.
Coach Gail has been working with small business owners, managers and sales professionals for over 20 years. Located in the Panhandle of Florida, Coach Gail coaches her clients by phone and they are located throughout the United States. All of Coach Gail’s clients want to excel in their chosen fields and have a desire to continually develop themselves, their businesses and their team members. You can learn more about the results Coach Gail has helped her clients achieve by visiting her web site at www.coachgail.com. You can also reach her by calling 850-927-4245 or emailing at coachgail@gtcom.net.
Core Values Can Be A Key to Business Performance
March 31st, 2010Many times over the years I have had conversations with people about what they like or dislike about their jobs and the company in which they are employed. Often I heard about frustrations from both the ownership level, as well as the employee level that were based on a conflect of personal core values and beliefs.
A business owner might complain about employees who do not share his work ethic, trustworthiness or sense of commitment. An employee might voice concern over how customers, employees and suppliers are treated by their company. In some cases, the ethics and morals of the business owner and employee were so contrary to each other that the employee was terminated by their employer or they resigned.
It is a good practice today for a company to create written vision and mission statements. In addition, clarifying and communicating an organization’s core values and beliefs (i.e., standards of behavior) helps provide the tools for individual members to make the right decisions and demonstrate the correct behaviors as expressed by the leadership of the company.
Core values and beliefs were so important to Charles Brewer, founder of the Internet Service Provider, Mindspring (now known as Earthlink), that he created them before he even decided what kind of business he wanted to establish. Before starting Mindspring, Mr. Brewer wrote out a list of guiding principles by which he would run his company and attract talented employees. Operating his company according to his core values and beliefs, Mindspring experienced record-breaking sales, rapid growth, and a superior reputation for high-quality service and reliability. Mindspring was also known as a great place to work…where people had fun, learned a lot and felt like they were making a positive contribution.
A client of mine with whom I worked in defining his company’s Core Values and Beliefs, indicated this was one of the most significant accomplishments we achieved together. He “walks his talk” and uses his written Core Values and Beliefs to reinforce the high-level of employee and customer care he expects from members of his organization. Implementing and positiveley reinforcing his personal values throughout his company has earned his business a stellar reputation in his industry, increased sales in a depressed economy and propelled him to a higher level of success and fulfillment. Also, there is consistency in how everyone in his company interacts with each other and those outside the business.
Getting in touch with your personal values and beliefs will not only aid you in building your business, it will also improve your personal life. It can enhance your existing relationships and attract others who are of like mind and spirit.
A word of caution; living in integrity with your personal values and beliefs can also make painfully obvious those relationships in your life where there is a conflict. You may find that disconnecting from those people who do not share your values and beliefs or limiting your exposure to them is the healthiest solution for you. As difficult as this can be, the great news is that your overall quality of life is maximized by surrounding yourself with high-caliber individuals.
Coach Gail has been working with small business owners, managers and sales professionals for over 20 years. Located in the Panhandle of Florida, Coach Gail coaches her clients by phone and they are located throughout the United States. All of Coach Gail’s clients want to excel in their chosen fields and have a desire to continually develop themselves, their businesses and their team members. You can learn more about the results Coach Gail has helped her clients achieve by visiting her web site at www.coachgail.com. You can also reach her by calling 850-927-4245 or emailing at coachgail@gtcom.net.
7 Ways Employees Can Become Indispensable
March 31st, 2010The unemployment rate is currently 9.5%, the worst it’s been in 25 years. Although some of my clients have had to regrettably reduce their staffs, other clients are looking for talent. That means opportunities are still available.
What I’ve noticed is that sometimes the people who are asked to leave a company are the ones who weren’t contributing to the degree that they could have. As a result, they were expendable.
As a leader, which of your employees would you consider expendable and why? How many of your team members are indispensable?
I looked up both words in The American Heritage Dictionary of the English Language. Below are the definitions I found:
Ex-pend-a-ble adj. Suitable for sacrifice if required; not essential to preserve.
In-dis-pen-sa-ble adj. Incapable of being dispensed with; essential; required.
Since I work with leaders, I know the emotional and mental toll it takes on them when they have to let a member of their staffs go. It is a very difficult decision for them to make and it’s not taken lightly. As part of their decision making, among what they evaluate are attitude, work ethic, goal-orientation, use of time, personal organization, desire to grow, ability to adapt and embrace change, and willingness to do whatever it takes to help the company be successful.
I think that many (not all) of the individuals who find themselves a casualty of reduction in force decisions by their employer have contributed to their own demise. In other words, they were expendable instead of indispensable.
As a leader, you can help your team members learn how to become indispensable by sharing the following information. I believer EVERY member of an organization needs to be accountable to…..
1. Help attract new customers.They can do this by bringing in leads and opportunities to do business with people they know. Who in their world can benefit from the services and products your company provides? They can give these names and contact information to the sales professionals in the company to follow up on. Do your employees also buy and use the services of your company? If not, what’s standing in the way?
2. Help retain existing customers. What can each individual do to create exceptional customer experiences? If they directly interact with customers, they can make the experience memorable. They can be upbeat, positive and always smiling. Customers, callers and visitors want to feel welcome, appreciated and special. They will want to keep coming back. They will also tell others about your company. If an employee doesn’t directly interact with customers, they can still suggest ideas that will improve customer service. They can also do their jobs to the best of their ability, so the end product and service are high-quality and customers will keep buying.
3. Help increase business with existing customers. Team members can look for opportunities to further serve your customers. Many times customers are not fully aware of a business’ full product and service offerings. Train your staff in ways to find opportunities and create awareness with customers about your entire product line. Sometimes all customers need is a simple suggestion, encouragement or a reminder…think, “You want fries with that?”
4. Help reduce costs and expenses. Ask your team members to look for waste in time and resources and make suggestions or take action to eliminate them. The more money a busienss wastes, the less there is to use for growth, employee performance rewards and other benefits. It’s in the best interest of each member of an organization to help reduce their employer’s costs and improve profitability.
5. Take initiative. This is another big one that an employer evaluates when deciding who to let go. They want an individual on their team who is the kind of person who doesn’t have to be told what to do. An individual needs to look for ways to add value and go above and beyond their normal job duties. If they see something that needs to be done, they need to just do it. If a co-worker is buried in work, they can ask if they can help out. There are a ton of ways to demonstrate initiative. They just need to be creative.
6. Learn something new and enhance knowledge, skills and abilities. What is the last book a member of your team has read that dealt with their personal and professional growth and development? When was the last time they took a seminar or workshop? When they participate in employer-sponsored training, how well do they pay attention and use what they learn? I believe a persona and an organization is either green and growing or ripe and rotting….there is no in-between. Once one thinks he has “arrived”, he’s dying on the vine. Superstar athletes like Tiger Woods and other exceptional athletes and business professionals recognize they have to continue to grow and learn (no matter how great they are) if they want to keep their leadership role. If they ever get comfortable, someone else will pass them by.
7. Be organized and use their time well….work smart. Do each of your team members plan and write down what they want to accomplish each day? Do they consistently use a calendar system to remind them of tasks and to schedule appointments? Are they focused and spend 80% of their time on their priorities? One of the first things I do with a new client is to ensure they have and consistently use some kind of calendar system and they plan their days. Immediately they become more productive and effective! Working long hours doesn’t always translate into working smart or accomplishing goals. Challenge your team to ask themselves this question all day, each day: “Is this the best use of my time at this moment?” Watch for what changes they make as a result of their answer and how that impacts their goals and success.
What employer would want to part ways with a team member who consistently does the above things? The kind of person who does the above will become indispensable to you. They will also be positioned to promote as the company grows. As a business prospers, so will its members.
Coach Gail has been working with small business owners, managers and sales professionals for over 20 years. Located in the Panhandle of Florida, Coach Gail coaches her clients by phone and they are located throughout the United States. All of Coach Gail’s clients want to excel in their chosen fields and have a desire to continually develop themselves, their businesses and their team members. You can learn more about the results Coach Gail has helped her clients achieve by visiting her web site at www.coachgail. com. You can also reach her by calling 850-927-4245 or emailing her at coachgail@gtcom.net.
Dual Monitors
March 31st, 2010Sometimes we are “penny wise” and “pound foolish” when it comes to purchasing technology for our office or business. Many of us have grown up with computers or have been forced to adapt our business to them and do not ask the question, how can I do this task faster with this machine. Believe me when the first word processors came out, businesses could easily justify the expense of the machines by the increase in productivity over using a typewriter to create documents.
Dual or multiple monitors’ effect on productivity is similar to the word processor and the typewriter. Depending on the amount of toggling you or your staff does, you can easily see a 40% to 50% increase in productivity. In our operation we have folks with one, two and three monitors on their desk based on the number of applications they frequently run or move data back and forth from in their job.
I am from the “keep it simple” school of measuring the effect technology can have on a process and with evaluating multiple monitors I would place dual or multiple monitors on one employees desk and compare the rates of work with another employee who does not have multiple monitors. Of course, if you only have one employee or yourself just document the time it take to complete tasks and then measure it again with the extra monitors installed. You can evaluate the cost benefit by breaking an employees pay down to a per minute cost and multiplying the rate times the number of minutes in a day you save by having multiple monitors than multiply by the number of work days your company has in a year. If you want to figure the productivity increase, take the number of minutes saved in a day divided by the number of working minutes in a day.
Installing this technology is simple. You can “Google” dual monitors and choose from over two million results. Microsoft has dual / multiple monitor directions on their web site. I like this dual monitor video from “How Stuff Works” as well. You can try this idea by first checking to see if your machine has two video cards (many new machines come with two) buying a video card from $10 to $150 depending on your graphic quality requirements, installing it and using a monitor off of another computer in your operation. Of course you can just purchase both the video card and extra monitor knowing that you will have enough gains in productivity to justify the expense. If you are truly an operator and not a geek you can call on any competent computer service company and they should be able to upgrade your machine for under $250. Our experience has been that using two or three 15 to 19 inch monitors is best. They fit on the desk and the individual monitor size is what the employee is used to looking at.
As I said in Game Plan, it is easy to justify this expense and the pay back is usually big on this idea. A $250 investment can increase an employee’s productivity by as much as 50%. Think about what that truly means to the business. Fewer people processing more business, adding knowledge and skill to an employee, and productive employees are always happier and more profit to your bottom line. It is a win-win for everyone.
Is Technology Adding or Reducing Your Productivity?
March 31st, 2010For the last 20 years, I have been working, operating, acquiring, consulting and evaluating business and have determined that over 80% of the companies or offices I have seen do not leverage technology. In fact, I would say that in most cases technology is actually reducing and limiting their effectiveness.
There are many reasons for this phenomenon, many are specific to each individual business but there are several common factors and solutions that all businesses should consider and take action on to begin the process of leveraging technology to its fullest:
First, in Game Plan I suggest that you only use technology to improve or enhance your company or process. So the first question is just that. Does this current or future technology improve or enhance our process? In 9 out of 10 cases, the existing software or machine will do the job if the operator uses the machine to its fullest potential.
Second, I would ask you to consider what I call the “telephone game” training phenomenon which is caused by training one person to use a device who then trains the next person who trains the next person, and before you know it seven or eight of the critical steps in the process are lost – just like what happened to the story that was passed from person to person in the “telephone game” you played in school as a kid. I urge you to add technology, computer usage, and software best practices to your training programs. There are all kinds of resources on the web and many of them are free.
Next, I would consider having yourself or someone on your staff become the technology evangelist, making it this person’s mission to push the existing technology to the limit. By inspecting your expectations, you will find that most of your staff is in their “comfort zone” and not using the technology as intended or to its fullest potential. The technology evangelist needs to coach and encourage the best usage. Most companies have a closet “techno-geek” that would love taking on this task.
Last, I would have you consider joining user groups for your software, touring other businesses to see what technology they are using that might benefit your business, surfing the web for ideas, and subscribing to trade journals or periodicals that pertain to technology or technology in your specific industry. For insurance I like Steve Anderson’s web site and his monthly magazine called the The Anderson Agency Report. Ask your friends at your local chamber or networking functions and see what they are doing and take notes!
Technology is supposed to help drive your company to new heights, but in most cases we buy equipment and software that is hardly used. Don’t be intimidated – start embracing technology today and start with the small stuff. You can start by using free templates from Microsoft¬Æ for all of their products. “Google” what you are thinking or struggling with, and millions of results will provide you with a good basis to make decisions for your business. I try and learn something new every week. There are cool things always popping up. In fact, I just learned that I can create a map on my computer and send in to the Navigation system on my car! Take your blinders off and look at what this stuff can do for you!
Using Microsoft Office to Its Full Potential
March 31st, 2010This chapter focuses on using the technology you already have. It is easy to succumb to advertisements that promise to drastically improve your business, but you probably already have much of the equipment needed to do most of your business. Microsoft Office is one of the most useful products that is often overlooked. Sure, almost everyone has it and almost everyone uses it, but few people succeed in using it to its full potential. The programs are easy to use, but also incredibly detailed, allowing anyone from the newest user to the most experienced computer whiz to easily use these programs. However, many computer users do not recognize the depth of Microsoft Office and rush to buy expensive new software without examining whether Office will meet their needs.
Let’s examine some of the possibilities of Microsoft Office, specifically Word, Powerpoint, and Excel. While these tips focus on the newest version of Office, Microsoft Office 2007, many of them can also be found in the older versions as well.
Microsoft Word
- - The arrival of Word 2007 makes it even easier to have control over the layout of the document. With a separate tab for footnotes, endnotes, and sources, Word will manage these functions for you, so that you don’t have to edit them manually.
- - A Microsoft Excel spreadsheet can be entered into Word. What is the advantage of putting in an Excel chart rather than creating a chart in Word? You have all the power of Excel at your fingertips within your Word document – equations, calculators, graphs, etc. You can even customize which parts of the spreadsheet show up in Word.
- - Microsoft Word will autosummarize a document for you. By picking out keywords and phrases, it will find the key sentences in each paragraph and bold them for you. You can also direct the manner in which Word finds these key sentences. In the end, you will have an easier to read document!
- - Become more familiar with editing your Word document. By tracking changes you can have multiple editors to a document and then chose which changes you wish to accept.
Microsoft Excel
- - Excel 2007 makes using Excel even easier with access to the most commonly used equations. Instead of having to look them up, they are available under the formulas tab. This cuts out the time it will take a new user to learn Excel.
- - Excel provides an extensive list of calculators. While you can create them yourself by entering in complicated equations, why bother? Excel provides everything from net worth calculators to cash flow statements, to Sudoku creators!
- - Graphs in Excel look much more professional now. You can create more professional graphs yourself much more easily.
Microsoft PowerPoint
- - In Microsoft Office 2007, creating diagrams is even easier. SmartArt allows you turn outlines and text into smooth looking diagrams that match your theme and can be easily animated. It is simple to change the diagrams, as well.
- - Most people know about animating slide shows, but few understand the extent of your ability to customize them. Create custom animation paths for a truly unique presentation.
- - Import a photo album into PowerPoint for a quick and easy presentation.
- - Don’t bother clicking through a slide show. Want it to run independently? Set it on an automatic timer.
- - Want to be able to make notes and emphasize parts of your presentation as you give it? Use the pen to write on slides.
- - If you have more than one screen, look at the notes that accompany the slides while the audience looks at the slides on the other screen.
All of these Office functions (and much much more) can be found in detail on the Microsoft Office website. The site contains walkthroughs, tips, and help. There is also an extensive library of additional templates and designs to use. Before buying new expensive technology, take a look at the technology you already have. Do a little research. Take some time to look at the technology you already have. Be creative!
Imaging and its Effects on Productivity
March 31st, 2010Over the past 15+ years, my staff and I have implemented thousands of hardware and software solutions to increase the productivity of offices by reducing or eliminating the use of paper in a business workflow. We have developed proven case studies that show how a well implemented imaging solution can reduce unnecessary staff tasking as well as eliminate hard cost budgetary items in regards to paper based transactions.
The hard cost of paper that consumes revenue is a combination of factors such as “negative” square footage (filing cabinets and off- site storage), office hardware (copiers and fax machines) and office supplies (ink, toner and paper). In a paper based organization these are necessary operational costs, but not in a paperless environment. For the sake of efficiency and productivity in your office, research the hard costs of these items and keep in mind that these budgetary items compound as your business expands. As your business grows, so does the mountain of paper to be filed, as well as the number of ink cartridges and boxes of paper you are forced to buy!
In nearly all applications of business, we can assume that staff time and productivity will be affected by the simple process of filing and retrieval of documents. Neither of these tasks positively impact productivity. By adding a versatile imaging solution to your business, redundant tasks now take seconds instead of minutes, adding up to hours in the typical work week. For staff that currently has filing responsibilities, depending on their individual skill set, there are a few recommendations to be made. Clerical staff can be retrained to become imaging staff, if not Customer Service Reps, or better yet revenue producers for your successful business.
AOS has implemented paperless workflows in a variety of vertical markets with Easyfile, our Document Imaging Solution of choice. No matter what the business does, there are two key pieces of a productive imaging solution. First, proper equipment such as scanners for incoming paper based documents such as mail; accompanied by quality workflow capture tools, assisting electronically with daily activities, to reduce the amount of paper you produce. An accurate imaging solution provider inserts itself precisely before the page is printed, and asks, why? Some examples of available technology products are Easyfile’s e-doc viewer, allowing for digital alterations such as adding signatures and notes on documents, universal application plug-ins, direct e-printing, e-faxing, and upload capability and finally indexing applications to save documents away quickly, easily and most importantly, accurately.
Second, a search and retrieval feature that allows you to find, and then transition your documents. Each document, photo, voice file, etc. requires indexing to save the file into the imaging solution. Indexing allows for specific search identifiers to retrieve the file you are looking for quickly and accurately. Now that you have found the appropriate document, you can attach notes or messages such as
[à Sign here X_____________] and have the ability through Easyfile’s e- docviewer, to transition that document electronically via fax or email, directly from your search results, and most importantly without the use of paper.
Productivity, especially in today’s business environment, means more than properly allocating staff time. Productivity is aligning the tools and resources that you have, or can acquire, to gain control on costs, driving your business towards profit. Paper based transactions are a drain on productivity & Productivity = Profit! As far as the paper goes… believe me you won’t miss it!!
Bio:
Matt Smith is a graduate of Temple University’s, Fox School of Business. After graduating he partnered with AOS, and has established the company as a leading Document Imaging Software provider. AOS assists clients through consultation to achieve their unique paperless business objectives. Matt has focused AOS towards the emerging need for increased productivity and reduction of cost by implementing imaging solutions in nearly all of today’s complex business environments.
http://www.aosdigital.com/document_solutions/easyfile
Written by: Matt Smith, VP AOSDigital
O: 800 511 2679
Business Continuity Planning for Small and Medium Size Businesses
March 31st, 2010Problem Statement: Data Loss and the Associated Risks
A recent study discovered that, of companies experiencing a “major loss” of computer records, 43 percent never reopened, 51 percent closed within two years of the loss, and a mere 6 percent survived over the long-term. Episodes requiring the recovery of business data include; natural disasters, accidental or intentional data sabotage, systems failure, media theft… to name only a few.
For small and medium-sized businesses (SMB’s) in particular, these conditions and the criticality of a swift recovery further emphasize the need for detailed Business Continuity Planning (BCP) and robust data backup and recovery solutions.
Not convinced? Ask yourself a few simple questions:
What would happen to your business if you suddenly lost the following and how would you recover?
- Emails (current or archived)
- Accounting Data
- Patient or Client Records
- Internal Documents or Records (HR files, Tax filings, Inventory records, Purchase Receipts,etc)
- Customer Order and Contact Information
- What is the value of and risk to intellectual property or proprietary information in the event of a disaster?
- What would be the impact to your business due to the loss of customer confidence?
- What advantage could your competitors gain due to your data loss or due to the resulting impact to your business?
Unlike large corporations, many smaller companies cannot afford optimal in-house strategies and solutions in service of BCP. Like enterprises however, SMB’s face the same risks of civil or criminal action in the event of loss or exposure of customer data. Without the means to recover, these companies are at elevated risk of being put out of business due to any major loss of data.
Business Continuity Planning: a Blueprint for Surviving Disaster
In plain language, BCP is working out how to stay in business in the event of disaster. BCP is the blueprint for how businesses plan to survive everything from local equipment failure to global disaster. A thorough BCP should result in a formal printed manual available for reference before, during and after the disaster event. Data-oriented BCP is an indispensable component of this plan regardless of organization size. It is the key to recovery and compliance in the event of data loss. Copies of the plan should be readily accessible to anyone who plays a role in the plan and should be stored off-site in location(s) deemed to be unaffected by the potential risk.
What’s in a Plan??
A good BCP should consist of the following:
1 – Analysis‚Äì This process involves A) evaluating the impact to your business in the event of a catastrophe (or ‚ÄúImpact Analysis‚Äù), B) the threat of the event occurring (or ‚ÄúThreat Analysis‚Äù) and, C) the scenarios that should be included in your recovery plan (or ‚ÄúImpact Scenarios‚Äù).
For example;
A proper impact analysis would help to rate critical VS. non-critical business functions AND how long can the business be without these functions: (i.e. How important is email or phone connectivity compared to inventory files, or last year’s tax filing information?)
A proper threat analysis would help to indicate the exposure or risks that your business is subject to (i.e. what is the likelihood of a flood or tornado, and how bad would the business be affected if these events occurred?)
Proper impact scenarios would help the plan author identify the result of the threat and the associated response (i.e. “In the event of a flood, customers would be notified prior to the event that business will be conducted from our North office. Backup drives will be removed and restored at the alternate location…”).
2 – Solution Design ‚Äì Which solution is the most cost effective based on the requirements identified during the Analysis phase? Critical components of an IT BCP solution are typically Data Storage Capability and Mean Time to Recover (or the time needed to re-establish the solution and accompanying data).
3- Implementation – The execution of the BCP design itself either in test or actual scenarios.
4 ‚Äì Testing and Organizational Adoption – Don‚Äôt wait for the event to occur before trying out the plan! Rehearse your response by restoring data archives (being mindful of production systems) or by planning a work-from-home day for employees. Visit or activate alternate business sites to ensure continuity of systems and processes. These are but a few examples.
5 – Maintain and Update – conduct frequent reviews of your plan with all parties involved (staff, contractors, third-party vendors, etc.) to ensure the procedures contained are still relevant and to allow for updates based on new threats or impacts identified. Other updates may be administrative in nature, but are no-less important. These include: changes in staff, vendors, clients, business intent, etc.
Being Prepared…
NFL football great Roger Staughbach once said: “In business or in football, it takes a lot of unspectacular preparation to produce spectacular results‚Ķ“. While the business of BCP may seem laborious and unnecessary, you must ask yourself how well you are prepared to face one or more catastrophic impacts to your business, and how important a thorough and expeditious recovery is to you, your clients, your family etc. Within these answers should lay the foundation of your own plan.
About ComResource
ComResource, Inc., founded in 1991, is a privately-owned and operated IT Solutions Provider. ComResource has helped Small and Medium Businesses all over the country with their Business Continuity Planning (BCP) and other IT initiatives. ComResource is a recognized Microsoft Gold Partner in addition to partnerships and affiliations with Cisco, Toshiba, Lenovo, Citrix and others. ComResource employs a simple philosophy of treating Clients, Partners and Employees as you would like to be treated. It is through this approach that ComResource has assisted clients in their day-to-day business and IT needs. More information on ComResource is available at http://www.comresource.com/
Southwest Airlines Stepping Up Customer Service
March 31st, 2010In an economy with nearly 20 percent unemployment, one would think that people would choose to cut back on expenditures such as travel. The truth of the matter is that people are still flying because they are becoming better-informed consumers.
Travelers are choosing to stray from their usual travel schedules and use many of Southwest Airlines flight specials. Southwest Airlines has been on the cutting edge of consumer service and affordable nationwide transportation. Books have been written about what has now been coined as the “Southwest Effect” and their fuel price hedging strategies have allowed them to remain competitive through recent anomalies (Iraq War, Katrina, etc.), but many have not heard or experienced how they leverage technology.
One of the many features that Southwest uses to exude friendly customer service is a technology called virtual queuing. I recently experienced this technology when attempting to book a flight during the Christmas Travel Season. I knew that they would be receiving tons of calls, so I was prepared for the worst. To my surprise it was actually pleasant. This virtual queuing is a technology that they recently implemented as an enhancement for customers who are affected when they experience higher call volume than normal. During those heavy volume periods, they enable “virtual queuing,” which gives the Customer the approximate hold time, and then allows him/her to enter a phone number and receive a return call from one of our Customer Representatives. The Customer keeps the same place in the “holding pattern” without having to remain on the line. Changes like this are invaluable to customers and help to develop patronage.
Another technology that Southwest uses to keep customers informed is a web-based program called Ding Fares. Everyone has heard the commercials, “Ding! You are now free to move about the country.” A comedic play on words off of what the pilot says when the plane reaches cruising altitude. Ding Fares allows the consumer to choose their home airport or airports to find exceptional travel deals. Customers no long have to sift through tons of different flights. They just open up this program and everything is organized for them.
Gary Kelly CEO, President and Chairman of Southwest Airlines and the nearly 35,000 employees know that leveraging technologies such as these are the key to future success.
Everybody Sells
March 31st, 2010No matter what your new idea is for starting or expanding your business, you must remember that you are a salesperson. You may not think of yourself as the classic ’sales guy’ that spends all day calling on prospects to sell them a particular product or service, but you are still a salesperson.
In order to get your idea off the ground, there are a whole cadre of people that must believe (or buy into) your idea. People you may need to sell on the idea include: your family, your partner, your accountant, your lawyer, your banker, your employees, your potential employees, and yes, even your targeted customers. This initial set of sales is made easier by having a well thought out business plan.
Now that you realize getting the business off the ground is just as much about selling the idea is as it is having a well thought out plan, you need to also realize that you are now in sales for the rest of your business career. You will be constantly selling an idea, service, product or building a relationship. Just as important, everybody that works for you is in sales as well, whether they directly touch the customer or not. Your team creates an image of you and your business. That image is part of what you provide to the marketplace.
Do not fear selling. No matter what type of business you are in, there are countless resources available to you to identify the skill sets needed for your particular business, and how to acquire those skills. Two potential places to start are thesalesboard.com and Superior Selling Skills Mastery by Daniel Sitter. You can always just Google sales, and a nearly infinite number of learning opportunities will present themselves.
Just remember- Everybody Sells!
Building a Rapport with Your Customers
March 31st, 2010The concept and practice of building a rapport with your customers is really quite straightforward. It is very much what is called ‘Golden Rule Selling’ in the book Game Plan. Treat your customers exactly how you want to be treated if your roles were reversed. Regardless of what you are buying, you want someone that listens to you; understands what you are saying; discusses options with you; clarify’s expectations; follows through; is genuine; and, maintains contact. It does not matter if you are selling a deli sandwich or a complex financial instrument, to build a good relationship you need to follow these basic steps. By the way, you also need a product that meets the expectations you establish with your customer.
Listen: Everyone wants to be heard. They want you to pay attention and not be distracted. They want you to listen to their individual needs- whether it is the type of cheese for their sandwich or whether it is to purchase insurance to cover their business- they want you to listen to their individual desires.
Understand: Throughout the listening process, everybody, in every situation wants you to indicate that you understand what they are telling you. In some cases that may mean repeating what they said, in other instances it may mean asking clarifying questions. Either way it is an indication that you are listening and understand what they desire.
Discuss: Often times, because you are the expert in the field (sandwich artist, insurance professional, dry cleaning guru, etc.) you may want or need to discuss options your customer may not have considered. Or you may recognize that you cannot do exactly what they want, but have options for them that will meet the majority of their needs. This requires a positive dialogue around what your client wants to accomplish and the best options you have to help them meet or exceed their expectations.
Clarify Expectations & Process: Once you believe they have clearly stated their desires, and you have reviewed option to meet those desires, you need to review with your client what you heard, what is going to happen next, when you will meet their needs, and what their role and responsibility is in the process.
Follow Through: Now you must deliver. If you cannot deliver as you had committed, tell them immediately and tell them what to expect next. No one likes surprises.
Be Genuine: If you do not act genuine, if you act as if you are only going through the motions- they will know. Your ability to build a relationship and repeat business will suffer if you are not genuine and truly interested.
Maintain Contact: This may be the hardest part of building a relationship. You need to figure out how to keep the customer coming back if you are involved in transactional sales- like selling a sandwich. (Give them a coupon for their second visit). If you are in a business where you have been intrusted to do them a service (like insurance protection), you need to reach out periodically to make sure they are satisfied and that their needs have not changed.
The benefits of building repeat customers in a transactional business, or building a relationship in a business where you are held out as an expert capable of better understanding needs and tending to them, can be very rewarding personally and financially. As you interview potential employees for customer facing positions, think through the skill sets and talents necessary to build lasting customer relationships. It can make a significant difference in your business. Building rapport with your client base depends on you being genuine, consistent and truly interested in serving their needs on an ongoing basis.
Following a Sales Process
March 31st, 2010In my business travels and speaking engagements across the USA, I get to see and learn about many different enterprises. I often find out that many do not have a documented business plan, and even fewer have a formal process for achieving sales success. Because of this, I have been conducting some informal research on the number of attendees and businesses that develop and follow a business plan. My results show that less than five percent of us actually develop and execute a plan for our businesses. I would take this one step further and say that less than one percent of people surveyed use a sales process.
Being effective at selling is not any different than manufacturing a quality product or building a house. You would not attempt either of the above tasks without first developing a plan or process to achieve your desired results. As a matter of fact, you would not try to drive from Texas to New York without a plan. It’s the simple truth that people who plan are more successful than those that don’t! It does not matter if you own the business, or are a high level sales executive, a sales manager or the sales rep making the calls. Develop a plan and follow it. In reality, it does not even matter if the plan is perfect. We all know that a great plan marginally executed will never outperform a marginal plan that is executed well.
Developing a sales process is a simple exercise in documenting the steps that need to take place during a sales interaction with a customer. If you are in the restaurant business your process might start out looking like this:
1. Greet Customer: “Welcome to Harry’s . We’re happy to see you tonight.
2. Introduce yourself: “My name is Warren and I will be taking care of you tonight. If there is anything special you need, please let me know.”
3. Describe the specials of the day: “Our chef had some red snapper brought in fresh off the boat this morning for his special tonight. He can blacken it with a shrimp white wine sauce, or you can get it grilled with a lemon dill sauce. I tried them both this evening when I came in and they are wonderful. “
4. Pass out the menus: “The menu is divided up into six sections. Appetizers and salads on the left with beef, poultry, seafood and sides on the right. Our side dishes are a nice size portion and typically feed two to three guests.”
5. Ask if the group will be having wine or cocktails this evening.
6. Etc., Etc., Etc.
If you are in the real estate business your process might start out looking like this.
1. Greet Customer: “Welcome to Houston Northwest Properties. I am glad you came in to see us.”
2. Make the customer feel at home. If they have kids with them, see if the parents will let you show them the office play room.
3. Build Rapport: Find common ground! Use open ended questions like: “What brings you in today”, “How did you hear about our firm?” “Are you new to Houston?” “How long have you lived on the Northwest side of town?”, “Did you grow up here?”
4. Find out what they are looking for in a realtor: “What are you looking for from your realtor?”
5. Describe what your firm does for them as a client.
6. Etc., Etc., Etc.
These are simple examples of what the documented process looks like. You can also look at our sales process by clicking this link. Once you have documented your processes all you have to do is implement your new system by learning and practicing the steps. You may have to teach your team the process 10 to 20 times before they can consistently deliver the process. Implementing a consistent sales process will drive consistent sales results – don’t get frustrated, practice makes perfect! If the McDonald’s point of sale person can consistently ask you if you want an “Apple Pie” your team can implement a sales process in your company!
I promise you that all of the great businesses you patronize follow a sales process that make every experience predictable and keep you coming back time after time. The key to making this successful in your business is inspecting what you expect. At our office we monitor and voice record telephone calls. We also video tape presentations and make joint sales calls to make sure our sales process is being followed. Just like when I was a kid playing football we use a recording (game film) and a report card to see if we did what we were trained to do. Your team may be a little hesitant at first, so be sure and remember to use the recordings, report card and the joint calls as an opportunity to teach, not discipline. By using the recordings to focus on ways to improve your team’s performance, their effectiveness and closing ratio will improve quickly.
We all are looking for a magic pill to lose weight, a new product that will make our business an overnight success, or some competitive advantage that will push us over the top, but the research shows that less than five percent of companies document their plans and processes. Research also shows that only five percent of Americans reach retirement financially independent. I am not a rocket scientist to see this correlation. Become part of the five percent. Document and implement your sales process today, and your golden years will truly be golden. It’s not fancy, it’s fundamental and we all know that the best teams win by executing the fundamentals well – not trying trick plays.
Basic Marketing Thoughts
March 31st, 2010As you begin to think about what kind of marketing activities will uniquely position you and your business in the marketplace, you will find an unbelievable amount of resource available to guide you. If you just Google “marketing,” over 400,000 references will be cited. Some are free, some have a cost, some are general in nature, and some are specific to your kind of business.
I want to challenge you to think beyond the normal four “P’s” of marketing (product, price, promotion, and place). I want you to think about not only driving new customers to your business, but also to consider retaining customers, creating loyal customers, and what it will take to get loyal customers to refer you to their family and friends.
Incentivizing new customers to be repeat, advocating customers is a critical element to building a long-term successful business. Throughout my career I have continually referenced a book by James L. Heskett, W. Earl Sasser, Jr., and Leonard A. Schlesinger, The Service Profit Chain. Harvard Business Review also wrote an article on this book. It is one of the best examples of why creating loyal customers through service leads to better business results.
Please remember that your marketing activities not only need to position you in the marketplace and drive new sales, but they need to focus on retaining loyal customers as well.
Active Marketing
March 31st, 2010Let me first begin by saying, I am not quite a “marketing professional.” In fact, I am not a “professional” at all – yet. I am a 23-year-old college student. I received my BBA in Marketing in 2008 and will graduate this December with my MBA. The thing about college is, it teaches you all of the terms and principles you “need to know”, but not necessarily how to apply them in the real world. This is where an internship comes in, and I have had the great pleasure to work as a Sales & Marketing Intern for the Barhorst Insurance Group this summer. Though I have been here just over a month, I have already learned so much!
One of my first tasks as an intern was to create a referral program that provides apartment complexes in the area with an incentive to refer their renters to us for their insurance needs – specifically, Renter’s Insurance. As any good marketer knows, you must have a plan before you start your marketing activities. With the help of the Marketing Director, Mary Cuccurullo, we came up with an idea to create a referral contest and define a plan for implementation. Our goal was to get Leasing Agents to refer business to us, and in return, we would provide them with a chance to win a gift card. For every referral they sent us, we would enter their name into a monthly drawing. At the end of the month, we would draw a name, and the winner would win $100. This contest would then start over at the beginning of the following month. Now we had our incentive!
The next step was to create the sales collateral for the referral program. I’m no graphic design artist, but I can navigate my way through Photoshop. I created a flyer to promote the contest, a sheet with the contest rules, referral cards for renters to fill out with their contact information, and flyers to leave behind at the apartment complexes. After much back-and-forth and some here-and-there tweaking, the graphics were done and sent to the printer.
Now it was time to go out and get the ball rolling. I visited apartment complexes in the surrounding area (over 40 of them) and spoke with Leasing Agents. My goal was not to sell them a policy, but to talk with them (not to them) and establish a relationship. In my opinion, this is the best way to get business; the bottom line is people are not going to refer business to someone they don’t know or someone they don’t like. Sure it’s cheesy, but “if you build it, they will come”, “it” being the relationship and “they” being “the customers.”
This task – developing a referral program, creating sales collateral, and visiting apartment complexes encompassed four different aspects of marketing: relationship-building, active marketing (getting out there and meeting people as opposed to sticking up a sign), referral marketing, and offering incentives. People generally tend to think with the mindset of, “what’s in it for me”, but to a successful marketing approach will ask “what’s in it for them?”
Aside from this project, I have worked on several other tasks and continue to face new challenges everyday. Come August, it will be time to pack up my things and head back to school, but for now, I am taking in this new experience and looking forward to what the remainder of my internship will bring.
-Rian Beaudoin, Sales & Marketing Intern
Networking
March 31st, 2010Fast forward 20 years in my life when I started an insurance agency. Conventional wisdom told me that since I know people, I should be able to convert relationships to dollars. Friends kept telling me that I would be the ideal insurance agent because of my relationships, but memories of flip charts in living rooms began to haunt me. Thoughts being known as the guy who only wants to be friends because he want to sell something kept me up at night. We all know folks whose persona and style is “business success at all costs” – don’t worry, this article is not written to tell you that their style is wrong. However, I chose a different style based on this principle: “If I succeed in business and make lots of money but have no friends, I have failed in life as a human being.” So, how do I effectively market to my network and abide by this principle? My answer: slowly, carefully, and maybe not at all.
When asked to write this article on the subject of successful networking, I contemplated all that I’ve done to successfully grow my networks and eventually my insurance business. After all the contemplation, this is what I discovered: I’ve grown my networks through a sincere interest in people and/or organization without an ulterior motive. For example, my wife and I go to church and belong to a Sunday school class because we want to grow in God’s Word and socialize with other Christians in our community. We didn’t join the church to grow my business. Not surprisingly, there are many of our church friends who have turned into clients or who refer us business.
There are obviously different types of networks (business networks and personal networks). Use your business networks to expand your business and your personal networks to feed your passions. Business networks that you should consider include BNI, your local Rotary Club, Toastmasters and other business networking groups. These groups are designed specifically to help you grow your business.
Also consider your ‘vertical market’ as a source of networking. What is your “vertical market”? If you can define your vertical market, think of ways that you can help your vertical market be more effective to their customers. If you can figure this out, you should have a never-ending stream of referrals. I’m in the business of insuring homes. My vertical market would be realtors and mortgage folks that have numerous transactions that need homeowners insurance to close. These transactions are opportunities for me. Due to this, I’ve tried to develop relationships with realtors and mortgage people because they all have clients that need homeowners insurance. if I can effectively help them close a deals faster, I would hope that in return, they would refer me business.
So in closing, here are my recommendations:
1. Meet as many people as you can.
2. Get involved in things that you are passionate about and interest you.
3. Don’t confuse your business networks with your personal networks.
4. Be careful about using your personal networks to prospect.
Happy Hunting
CO-OP Advertising…Leveraging Someone Else’s Money to Expand Your Presence
March 31st, 2010What is CO-OP Advertising?
Keeping your name in front of consumers does not have to be expensive. There are thousands and thousands of CO-OP advertising and marketing programs in the marketplace today. It does not matter what industry you are in (manufacturing, retail, professional, wholesale, service, etc) because there is usually a company, trade association or government body that wants to get their name or program in front of consumers. Learning who and what CO-OP resources are available for your industry is the key to making the most of your advertising and marketing dollars. Most CO-OP programs come in two forms: Fixed and Unlimited. “Fixed” programs have a set limit on the number of ads or a maximum reimbursement dollar amount. “Unlimited” programs allow for an unlimited amount of reimbursement. Although most people think of CO-OP advertising as print advertising, many of the programs out there today allow for all types of marketing, including direct mail, point of sale merchandising and store signage. Most of the programs require that you invest some of your own funds and will reimburse you after you place and have paid for the advertisement. Program reimbursement can range from 20% to 100%, with most plans reimbursing at a 50% to 75% level. Be sure you understand the branding, messaging, program rules and approval process before you place the advertisement.
Finding CO-OP Programs
Finding CO-OP dollars is as simple as doing a Google search for ‚ÄúCOOP,‚Äù COOP funding, COOP marketing, Coop advertising …, asking your vendors, or asking your trade associations, etc. You can even purchase The Co-op Advertising Programs Sourcebook‚Ñ¢. The book is considered the essential link between businesses trying to find subsidized advertising programs, and the book lists over 4000 available programs. Keep searching and asking until you find something. If there are no formal programs for your industry, start asking the question ‚Äúwould you consider partnering?‚Äù and ‚Äúwe should have a program like the ‚Ķ industry does.‚Äù Keep asking, you will find someone that wants to partner with you.
Programs I Use
As an insurance agent I typically use CO-OP funds from FEMA’s National Flood Insurance Program (NFIP), insurance companies, and the trade group called the Independent Insurance Agents of Texas (IIAT). The NFIP’s program rules can be found by clicking here and the IIAT’ rules are found by clicking here. Most insurance companies programs are proprietary and not shared openly on the web. Even if you are not in the insurance business you may want to look at these programs as a reference tool for learning about CO-OP advertising. In 2009 we have received or have commitments to receive $60,000 in CO-OP reimbursements. The reimbursement percentage varies from each program but on average we will get 60% of our advertising investment reimbursed.
What Happens to The Money If It Is Not Used?
Most of CO-OP programs are set up on a “Use it” or “Lose it” basis and many CO-OP eligible partners don’t “use it”, so, as with most unused budgets at companies, the funds are swept by the finance department at the end of the fiscal year, and the budget is at risk of being reduced for the next business cycle. Because of this issue, most CO-OP fund managers make additional funds available over and above the original commitment that was made to you. Rarely is this fact publicized, and the funds are distributed to the CO-OP managers’ best program users or the folks that ask for additional funds. We recently had exhausted our budget with an insurance company so we went back to the program manager and showed him how effected the promotion they funded had been and asked for the funds to run a second campaign. He said “no one else is using the money, why not” and the funds were approved immediately!
Leveraging Your Budget
In today’s world, spending your advertising budget in the most cost efficient manner is vital to your company’s success, and using CO-OP dollars is a way to leverage your spend to its maximum level. In our operation, we are getting $100,000 worth of advertising for $40,000 because of our CO-OP partners’ investment. Since we were going to spend the $100,000 anyway, we really have increased our budget by $60,000 and maximized our advertising to truly increase our presence in the market place. By spending a little time and effort researching what is available in your industry you most likely will find several opportunities to leverage your advertising budget to it maximum.
The Economic Future Just Happened by Kauffman Foundation
March 30th, 2010Tips to Attracting a Bank Loan
March 30th, 2010Banking Basics
Banks want to make loans as this is how they make money. It is important to be confident and well prepared when you meet with the Banker, so include the following information in your loan request:
- The amount of the loan you need.
- How long you will need to pay it back (the shorter the better).
- What you will do with the loan and how it will make your business more profitable.
- Collateral to support the loan.
- Personal guaranties to support the loan.
Prepare for the Meeting
It is essential that you are well prepared for the meeting no matter how strong you believe your business is. The following should be prepared for the meeting:
- An executive summary that details the background and operations of the business.
- Details on the loan request, what it will be used for, how it will increase the company’s profitability and how it will be repaid.
- Detail on the collateral that will secure the loan. Very few lenders will lend money without adequate collateral to support the loan.
- Three years of financial statements and tax returns for the company along with a personal financial statement for the owners. Understand the financial statements and be prepared to answer questions.
- A three to five year financial projection for the business. Be realistic. It is much better to be conservative on your projections and to over deliver.
After the Meeting
Ask the Banker when you can expect an answer but be patient. Do not get discouraged if the loan is declined. Use it as a learning tool. Did the loan request make sense? What could you have done better? If you are still confident that the loan request is a good business decision, keep trying other lenders. If it is truly a good business decision, you will find a Bank to approve your loan.
Mark Rothschild has been in the banking industry for over 25 years. After getting his B.A. from the University of Michigan, he earned his M.B.A. at the University of Texas, and then his CPA. He is currently Senior Vice President, Commercial Bank, of JPMorgan Chase Bank, where he has worked for twenty-three years.
Developing a Household Budget
March 30th, 2010Creating a household budget is an important part of understanding what you and your family need to live on as you start or expand your business. Each household budget is somewhat unique, because each family unit has their own priorities, their own must-haves, and their own special circumstances. The best place to start is by developing your own household budget, click on my household budget considerations to get your thought process started.
The real challenge with household budgets is living within them! This is an opportunity for you and your family to create rules of the road- so you can have some comfort that basic needs are being met and you can focus on growing your business.
One simple budget process that was effective for me, particularly early in my career, was what I called the ‘envelope method.’ My wife and I created a budget, and took a box of envelopes labeling each one with a different budget category. We then placed the envelopes into three groupings: must fund/ should fund/nice to fund. We placed money in the envelopes each payday. Money was only spent if it was in the envelope. This meant early on we ate a lot of meals at home, didn‚Äôt travel much, and clipped a lot of coupons. This discipline helped us on our journey to meet many of our long term lifestyle and financial goals.
Whatever discipline works for you and your family is the right one. The envelope method worked exceptionally well for us. Over 339,000 envelope examples and details are listed when you search Google for ‘envelope budgeting.’ The real key is creating a budget and then agreeing to live within it.
Basic Understanding of Financial Statements
March 30th, 2010There are four primary financial statements: balance sheets, income statements, cash flow statements and shareholder’s equity. Financial statements show the financial condition of an entity at a given time. This discussion will only include the balance sheet and income statement.
A balance sheet provides detailed information about a company’s assets, liabilities and shareholder’s equity. Assets are shown at the top of the statement and the liabilities and equity are shown at the bottom. Assets equal the liabilities and equity. Assets are things a company owns such as cash, accounts receivables, inventory, equipment, trucks, plants, land and other things that have value such as trademarks and patents. Assets are listed as current and noncurrent. Along with cash, items that are expected to be converted to cash within one year such as receivables and inventory are considered current assets. Noncurrent items are assets the company does not expect to convert to cash within a year or sell and include items that are used to operate the business like equipment, furniture, vehicles and plant.
Liabilities are listed according to their due dates. Liabilities expected to be paid within one year are considered current and those expected to be paid longer than a year are considered long-term. Examples of current liabilities are accounts payable and the portion of debt that is payable in the next twelve months. Shareholder’s equity includes both the original investment of the shareholders plus or minus the company’s earnings or losses since inception. Companies often distribute earnings as dividends instead of retaining them in the company as retained earnings.
An income statement shows the amount of revenue a company earned over a given time period and the costs and expenses associated with earning that revenue. The top line of the income statement, called gross revenue, is the total amount of money brought in from sales of products and services. This is gross revenue because no expenses have been deducted. Next returned items and discounts or allowances are deducted to leave net income. The next item deducted from net income usually is the costs of goods sold. This is the amount of money expended by the company to produce the goods and services that were sold leaving a subtotal called gross profit. It is called gross profit because there is other expenses that have not yet been deducted called operating expenses. These expenses go toward supporting a company’s operations and are not directly linked to the production of the product or services being sold and include items of expense such as salaries for administrative personnel, marketing, research and depreciation. Operating profit before interest and income taxes are arrived at after deducting all operating expenses from gross profit. This is usually called income from operations. Next you must add any interest income and deduct any interest expense to arrive at operating profit before income taxes. If there is operating profit before income tax than income taxes must be deducted to arrive at net profit or net loss.
Bio:
Ray Highsmith is the President of Barhorst Insurance Group, LTD., the largest Nationwide Agency in the nation. He has been in the insurance business since 1997 after successful careers in Construction and Real Estate employed in various positions ranging from controller to Vice President of Finance and Accounting. Ray graduated from Texas State University in 1964 with a major in accounting and presently resides in Jersey Village, TX with his wife Brenda with whom he has been married for 45 years.
Funding Your Small Business Through the SBA
March 30th, 2010As you set out to find funding for your new or expanding business, it is important to know all your options. Finding money can be overwhelming and intimidating, but there are many free and helpful sources to get you started.
The Small Business Administration website will educate you on your different funding options. It will also provide you with important information on obtaining funding through the Small Business Administration. It provides a realistic overview of the hurdles you will face. Because it is a government resource, it is unbiased, so you don’t have to worry about scams, and outdated or false information. Contrary to popular opinion, there is no such thing at 100% funding – you will eventually have to put your own money into your business. In addition, there is no such thing as a government grant for an individual for-profit business. The SBA never lends money directly to small businesses unless in the case of disaster resistance. Instead, the SBA guarantees loans from other lenders to provide security. Lenders are more willing to provide loans for small businesses because the SBA guarantees a portion of the loan – generally up to 75% for loans over $150,000.
The SBA offers four types of loan programs – 7(a) loans, special purpose loans (classified under 7(a)), micro loans, and certified development company/504 loans. Each is geared towards a different type of small of business with different needs.
The SBA will provide you with common sense advice (much of which is covered in Game Plan) about preparing for a loan. Before looking for a loan you need to develop a loan package, which consists of three major components:
1) statement of purpose
2) business plan
3)financial statements.
Be organized and clear, detailing what your business does, what you need a loan for, and how you plan to use the loan. You need to be completely prepared for any questions that you may encounter, including what the loan with be used for. You will need to be able to communicate your passion for your business, so that the lender will know that you are committed and excited about being a successful entrepreneur. Remember: the lender will usually have to justify your loan in front of a board, so he must be able to communicate exactly why you want a business loan. Try to show how your business will profit both the lender and the SBA. The lender is looking for a reliable borrower who will pay back the loan on time so that the lender will profit. Show the SBA how they will profit by showing how the loan to your business will improve the economy and create more jobs in your area. Don’t forget who your audience is, and be ready to play to their needs.
Your local Small Business Administration district office will provide you with many of the resources you need to begin. Check out the website to learn about resources in your area, including specifications and laws in your particular area. It also provides free online training seminars in a variety of topics that you will find pertinent to your small business needs (you even get a certificate of completion at the end!).
Finally, check out the many free resources including small business development centers, SCORE (Counselors to America‚Äôs Small Business), Small Business Development Training Network, and women‚Äôs business centers. Do your research, prepare, and you should have all the tools you need to receive the appropriate funding for your business. For more information on funding your business, see the SBA’s Business Funding Primer
Are You In?
March 30th, 2010When starting a new business, most business owners realize that it’s going to be a long and arduous journey. It means long hours and dedication. Budgets must be tightened and luxuries foregone. Entrepreneurs know they are going to have to dedicate themselves to their business.
However, business owners often don’t realize the effect that starting a business will have on their own families. They don’t think about the impact that it will have on the lives of their spouse and kids.
Before you embark on a new business venture, it is important to have the support of your family. You will need their love and support as you begin to work hard. They need to understand what the next few months, years, etc. will entail. They need to be ready to start the journey with you.
The May 2009 issue of Entrepreneur Magazine raised this issue in its article “Balancing Marriage and Business.” Written by the spouse of an entrepreneur, this article discusses how starting a business is hard, especially while juggling family life. Meg Cadoux Hirshberg, wife of Stonyfield Farm yogurt company entrepreneur Gary, details the daily stresses of life with an entrepreneur. Most importantly, she talks about truly being “in” – buying into the entrepreneur’s dream. Although she acted “in,” she realized that she really wasn’t. She went along for many years, outwardly showing a semblance of being “in.” However, she was forced to confront the ultimate decision of being “in,” when asked to give the business the money her father had left her.
When I was young, my father was a tax attorney in a two-person law firm. He worked long hours, especially around tax season. During those times, my mother carried the burden of caring for three toddlers, while we saw little of my father. Recently, my mother informed me that my memories of celebrating my father’s birthday as a child were not actually celebrations on his actual birthday. My father’s birthday is March 27 – just a few weeks before Tax Day. When he surfaced from his work mid-May, my mother would declare a random weekend to be dad’s birthday, her three young children none-the-wiser.
Although this particular example is hardly a great sacrifice by my parents, it is a great way in which my mother adjusted life to fit around my father’s business dreams. My point here is that my father could not have handled a family and a growing business simultaneously by himself. He relied on my mother to be “in” – to buy into his business dreams and goals. As the years have passed, his business grew and stabilized, allowing him to spend more time with us and juggle his business.
The first step of creating a successful business is dreaming. But a well thought-out plan, motivation, and commitment are the necessary steps to turn that dream into a reality. As you begin your business, ask yourself, “Am I in?” Then, ask yourself whether your family is also in as well. You will need their help. Good luck on your journey towards success!
Entrepreneur Magazine Business Plans
March 19th, 2010BusinessPlans.org
March 19th, 2010SBA Small Business Planner
March 19th, 2010The Science of Success
March 19th, 20105 Year Proforma Template
March 19th, 2010Business Definition Framework
March 19th, 2010Business Plan Components
March 19th, 2010Business Plan Example
March 19th, 2010Business Plan for Startups – from SCORE
March 19th, 2010Business Plan Overview
March 19th, 2010Chicken Little – Is the “Sky” Really Falling?
March 19th, 2010Common Business Objectives
March 19th, 2010Org-Chart Planning Inc. – Sample Organizational Chart
March 19th, 2010Sample Business 1 Plan
March 19th, 2010Target Audiences
March 19th, 2010The Science of Success Book Review
March 19th, 2010The Secret
March 19th, 2010The Secret by Rhonda Byrne is a wonder film and book about the law of attraction and how to visualize what you want in life and business. You can watch the first 20 minutes of the film on Youtube or purchase the movie, book or other Secret items at the Secret web site.
Awakening the Entrepreneur Within
March 19th, 2010Awakening the Entrepreneur Within by Michael E. Gerber
Awakening the Entrepreneur Within by Michael E. Gerber shows you how to make your dreams become a reality.
NUTS!
March 19th, 2010NUTS!, by Kevin Freiberg and Jackie Frieberg, is great documentation of how Southwest Airlines started as a dream, drawn on a cocktail napkin, and became one of themost profitable airline in the world today. This is both entertaining and filled with ideas on how to build a quality team, while focusing on a basic business plan and your customers. For an overview, please click here.
Business Plan Kit for Dummies
March 19th, 2010Business Plans Kit for Dummies by Steven Peterson, PhD., Peter E. Jaret, and Barbara Findlay Schenk
Business Plans Kit for Dummies, by Steven Peterson, PhD, Peter E. Jaret, and Barbara Findlay Schenck, is a great reference book, complete with a CD-ROM that provides sample business planning forms and worksheets. For an overview of the book, click here.
The Science of Success
March 19th, 2010The Science of Success by James A. Ray is a great book on how to attract prosperity and create balance in your life. You can check out this excerpt from the book or look at our book review presentation. The Science of Success is required reading for our new employees and we use the PowerPoint in our orientation class to review the reading material.
Simple Business Plans
March 19th, 2010Do you really need a business plan? The answer is yes. Would you drive from LA to New York without a map? Would you build a house without a blueprint? Writing a plan is not complicated, just google the words “business plan” and look at all the free resources. The process of building the plan will make you think through all of the nuts and bolts of running your business. As I pointed out in Game Plan, the chances of success go up by about 95% when you write you goals and plans down, make them public, and work towards achieving them every day. This example is of a simple plan and simple proforma I helped a friend write a few years back for his landscaping business. The degree of complexity in your plan is up to you. Remember that a marginal plan executed with passion will always outperform a great plan that is not implemented well.
Business Plan Fundamentals
March 19th, 2010Creating or updating a business plan can sound like a onerous task, but it is really a logical flow of information about your business or business idea. It should be considered a living document that is never quite done and constantly updated and refined due to business results, changing market conditions, products and service expansion and any other issues that are involved in your changing business.
Drafting a business plan is really nothing more than answering a series of questions:
1. What is the business reason (Mission)
2. What do we want to become (Vision)
3. What market and need are we trying to satisfy?
4. Who are the target customers?
5. Why will we be successful?
6. Who is our competition?
7. What does our organization look like?
8. What is the growth strategy?
a. Sales Force
b. Sales Activities
c. Channels of Distribution
9. How would you describe your products or services?
10. What are the critical actions for:
a. 6 Months?
b. 12 Months?
c. 36 Months?
d. 60 Months?
11. What are your funding needs for the same time periods as question 10? (Proforma)
12. What do your sales, expenses and profits look like for the same time periods as question 10? (Proforma)
I am not trying to tell you that it will not take time, thought or preparation to “complete” a thorough business plan, but the degree of detail and work should reflect who your target audience is that will be reviewing, providing input or possible be evaluating the business plan.
Break the business plan into the questions outlined above, gather feedback from trusted advisors as you answer the questions, and do not be afraid to adjust your answers as you get feedback. By following these basic steps, you can create a “living” document that will assist you in making daily decisions, investment decision, and aid you attracting investors and funding.
Please feel free to use our business plan examples, search the web for “business plans” or go directly to the Center for Business Planning, the Small Business Administration or Entrepreanuer Magazine sites for a detailed template and instructions on planning.
Planning Through Organizational Charts
March 19th, 2010by Warren Barhorst
The Concept
In Game Plan, I strongly encourage the reader to dream and plan for the future by visualizing, goal setting, and planning. It is well-documented that few of us take the time to actually put our plans on paper, but I believe this process is one of the keys to success. Since my early days as an entrepreneur, I have always used organizational charts as one of my planning tools. Even when our company only had two employees, my wife Lisa and myself, I still designed an organizational chart for the operation. I would lay out what I wanted the company to look like today, in one year, and in five years. The best part about using an organizational chart for planning is that it gives you a visual picture of what your operation will look like. Just like directions to a destination or instructions on how to assemble something, a map or diagram always makes it easier to understand. I urge any aspiring businessperson to add organizational chart planning to his or her process.
The Tools
There are hundreds of different program options available to draw your chart. Since most of us already have a version, I like using the organizational chart feature in PowerPoint®. It works well for companies with less than 50 employees and firms that do not have a complicated business structure. If your plans are more complicated and you want to invest a few dollars in software, you can check out Microsoft® VISIO® or SmartDraw®. You can also Google® ?organizational chart software? and pick a program that you like. Most of the vendors on the web allow you to use a trial version free for 30 days.
The Process
There are no specific rules on how to build organizational charts, but I like to start my chart planning process on a scratch pad or white marker board. I do this because I do not want the complexities of drawing or operating the computer to stall the creative process. Depending on your computer skills and creative process you can work through the ideas below in a manner that works best for you.
The first step is to put yourself on the top of the chart, assuming you own the operation or are in charge of it!
Step two is to start thinking about the current positions / departments in your operation and what future positions / departments your company may need. If you are new to business, you may want to look at other organizations for inspirations by Googling images of ?organizational charts?. If you know a national company that you like, use their name in your image search to see if their chart is out on the web. Doing this will help you with department names, position titles, and organizational structure. Most businesses can be broken down into five basic departments: Executive, Sales, Marketing, Operations, and Finance. Your business may have different department names, but usually the department will fall under one of these categories.
Step three is to set up your basic structure. This example illustrates a husband and wife operation with two full-time and one part-time employees. Notice that I have included all of the departments and positions in the company even though many of the positions are filled by the same person. This is the critical step in the Org Chart Planning Process that many aspiring entrepreneurs miss. You want to draw the present-day diagram with all of the departments and positions that the company currently needs to operate. By listing the departments and positions your subconscious mind will help you recruit talent as your company grows. After you complete your present day chart, I would then build a chart with the positions/departments that you want to have in place in the next 12 months, and then a chart for what you want the company to look like in five years.
The next step in Organizational Chart Planning is to share your chart with your team. Employees that work for small business owners want to know that they are part of something on the ground floor that is growing and seeing the future on paper increases their engagement and makes them want to work hard so that they have the opportunity to fill one of the management roles on a future chart.
The final step in this planning process is to include your charts with your business plans. Make sure to review them on a regular basis and update them at least annually so that you continue to visualize and study your long-term goals.
In closing, I would ask for you to remember that you would not build a house without a blueprint or drive from New York to Texas without a map. So why do you think you can build and navigate the business world without a plan? Planning is the easiest part of business and the most often overlooked. It takes a little time and thought but Planning with Org-Charts will increase your chances of success 1000 fold.











