This is the Year: 10 Important declarations for 2010
1. In 2010, my business brand will stand for …
2. My best customers will keep coming back because …
3. My goals for 2010 and 2011 are …
4. My financial plan for 2010 shows total revenue changing by _______
and profits increasing by _______.
5. I’ll balance the time I dedicate to my business with the time I spend with loved ones by …
6. I will have a set of actions, complete with target dates, to accomplish my goals. The actions planned for this month include …
7. My business, in its own small way, will help address societal problems by …
8. My will review business results, comparing them to my goals, and deciding whether changes are needed. The plan to do this is ...
9. The biggest challenges I’m addressing right how are …
10. When I have a tough business issue or decision to make, I’ll contact the following people to discuss it …
Why?
If you have this form filled out thoughtfully and are excited about your plans, congratulations. If not feel free to contact Barry Neagle at 774-238-6073 or bneagle@gmail.com. The first consultation is free in 2010.
Thursday, December 31, 2009
Monday, October 26, 2009
Make Retailing a Happening (HACC Flagship November, 2009)
Q: Dear Coach Barry: I run a small retail business in Centerville. My traffic is down this time of year, but I think I offer great items at great value during the winter. How can I keep the customers coming in to get me through the winter? – Anonymous
A: Dear Anon … Thanks for asking. If you’re going to be open, you need the year-rounders coming in all winter and spring. I suggest you work towards building a loyal following by staying in touch. The most impactful thing you can do is ‘buy’ your customer’s contact information and then use it to serve them. Suppose you offer a 10-20% discount on their next purchase if your customer gives you a phone and email address. As you collect the information, build a simple database and keep it handy in the store. After all, you can’t let people get the discount twice for giving you the same information !! Then do some simple things and use your information to get the word out.
Create a rollout of items. Introduce an item for the holidays, and tell them that there will be a companion item with a New Year’s theme for January, a Lover’s theme for February, a Spring theme for April, and a beach theme for June. Keep them coming back all the time.
Host an event with the rollout of the new items. A fashion show, or a wine tasting, or a trivia contest. Make it fun to shop with you.
Create merchandise that promotes your shop or restaurant -- How about a knit cap or tee-shirt with your logo and a clever saying. A hockey rink out of state gave away and sold boxer shorts that had “The Smell of Hockey” written across the bum. And who doesn’t have a coffee mug that says “Cuddles & Bubbles”. Most family restaurants sell shirts or water bottles with their name on it, but without a clever ‘must have’ saying, they mostly hang on the wall and get dusty. Make your advertising a collector’s item.
Thank-you cards – The last time you got one, it was probably from you mother. When did you last get one from a store or business? Wouldn’t it be impressive? Do it, and do it before your competitor does.
Call customers to say ‘thank you’ two days after they bought from you. Even if you only leave a message, think about the impact that will have. You’ll be the talk of the town.
And finally, with a data base of customer contacts, you can also do some of the techniques we talked about last month. Check out the October Flagship posting on this blog.
A: Dear Anon … Thanks for asking. If you’re going to be open, you need the year-rounders coming in all winter and spring. I suggest you work towards building a loyal following by staying in touch. The most impactful thing you can do is ‘buy’ your customer’s contact information and then use it to serve them. Suppose you offer a 10-20% discount on their next purchase if your customer gives you a phone and email address. As you collect the information, build a simple database and keep it handy in the store. After all, you can’t let people get the discount twice for giving you the same information !! Then do some simple things and use your information to get the word out.
Create a rollout of items. Introduce an item for the holidays, and tell them that there will be a companion item with a New Year’s theme for January, a Lover’s theme for February, a Spring theme for April, and a beach theme for June. Keep them coming back all the time.
Host an event with the rollout of the new items. A fashion show, or a wine tasting, or a trivia contest. Make it fun to shop with you.
Create merchandise that promotes your shop or restaurant -- How about a knit cap or tee-shirt with your logo and a clever saying. A hockey rink out of state gave away and sold boxer shorts that had “The Smell of Hockey” written across the bum. And who doesn’t have a coffee mug that says “Cuddles & Bubbles”. Most family restaurants sell shirts or water bottles with their name on it, but without a clever ‘must have’ saying, they mostly hang on the wall and get dusty. Make your advertising a collector’s item.
Thank-you cards – The last time you got one, it was probably from you mother. When did you last get one from a store or business? Wouldn’t it be impressive? Do it, and do it before your competitor does.
Call customers to say ‘thank you’ two days after they bought from you. Even if you only leave a message, think about the impact that will have. You’ll be the talk of the town.
And finally, with a data base of customer contacts, you can also do some of the techniques we talked about last month. Check out the October Flagship posting on this blog.
Marketing when you have no money !! (HACC Flagship October, 2009)
Q: Dear Coach Barry: I run a small business in Hyannis, and am looking for some low-cost or even no-cost techniques that can charge up my marketing activities. What do you suggest? – Baffled in Barnstable
A: Dear Baffled … You ask a very good question. Many businesses, especially the seasonal variety, have been hit hard. They don’t have much cash, but know they need to do something to stand out from the crowd and generate more business. But they have to watch every penny.
Any marketing technique can be effective when it has a good message and is targeted at the audience you want. If you miss these two important ideas, your marketing is wasted. So I’m going to assume that you have decided who you need to reach. Maybe existing customers to offer new services. Maybe new customers who don’t know you. Maybe year-rounders. Maybe seasonal residents. Maybe business owners. You know that one campaign won’t do a good job for all, and if you try the all-in-one campaign, you’ll probably miss the mark altogether.
As for cheap, here are two of my favorite low-cost ideas. These work best for service companies.
Email marketing – If you’ve been clever enough to gather email addresses from customers, visitors to your store, or prospects, you’ve ready to roll. For under $200 per year, you can send out email blasts using a service like Constant Contact. It’s a great way to introduce your ‘friends’ to new specials. If you don’t have the emails, start collecting them NOW.
Make a few phone calls – If you have service customers that use you sporadically or regularly, set up a list of customers to call. Do as few as 3 per day, but not more than 20 … or you’ll get burned out. And the script that can generate new business and customer loyalty goes like this…” Hello. How are you today? I’m calling to make sure you’ve been happy with what we did for you (sold to you). Do you need any more or something to go with it? Do you know anyone else who would like to know about us that I could call? Do you mind if I call back in 6-9 months again?” Trust me, for service businesses especially, this works. If you deal in one-time sales to walk-in customers, get their email or phone, and call them the next day with the same script. You’ll really stand out from the crowd.
Multi-purpose print items – Suppose you printed a 3-part card to pass out … at networking events, to your visitors, and as billing stuffers. One part simply says “Thank You” and lists all the items and services that you offer. The next part is a customer satisfaction survey or mailer to show you care. And the third part is a coupon for a new service or a card for your customers to give to their neighbors and friends. Print on a sturdy paper or card stock, perforate the 3 parts, and you’ll have a full service form for a fraction of the cost of multiple handouts.
A: Dear Baffled … You ask a very good question. Many businesses, especially the seasonal variety, have been hit hard. They don’t have much cash, but know they need to do something to stand out from the crowd and generate more business. But they have to watch every penny.
Any marketing technique can be effective when it has a good message and is targeted at the audience you want. If you miss these two important ideas, your marketing is wasted. So I’m going to assume that you have decided who you need to reach. Maybe existing customers to offer new services. Maybe new customers who don’t know you. Maybe year-rounders. Maybe seasonal residents. Maybe business owners. You know that one campaign won’t do a good job for all, and if you try the all-in-one campaign, you’ll probably miss the mark altogether.
As for cheap, here are two of my favorite low-cost ideas. These work best for service companies.
Email marketing – If you’ve been clever enough to gather email addresses from customers, visitors to your store, or prospects, you’ve ready to roll. For under $200 per year, you can send out email blasts using a service like Constant Contact. It’s a great way to introduce your ‘friends’ to new specials. If you don’t have the emails, start collecting them NOW.
Make a few phone calls – If you have service customers that use you sporadically or regularly, set up a list of customers to call. Do as few as 3 per day, but not more than 20 … or you’ll get burned out. And the script that can generate new business and customer loyalty goes like this…” Hello. How are you today? I’m calling to make sure you’ve been happy with what we did for you (sold to you). Do you need any more or something to go with it? Do you know anyone else who would like to know about us that I could call? Do you mind if I call back in 6-9 months again?” Trust me, for service businesses especially, this works. If you deal in one-time sales to walk-in customers, get their email or phone, and call them the next day with the same script. You’ll really stand out from the crowd.
Multi-purpose print items – Suppose you printed a 3-part card to pass out … at networking events, to your visitors, and as billing stuffers. One part simply says “Thank You” and lists all the items and services that you offer. The next part is a customer satisfaction survey or mailer to show you care. And the third part is a coupon for a new service or a card for your customers to give to their neighbors and friends. Print on a sturdy paper or card stock, perforate the 3 parts, and you’ll have a full service form for a fraction of the cost of multiple handouts.
Monday, September 14, 2009
Do you know what you don't know?
From the August, 2009 edition of Flagship, a publication of the Hyannis Chamber of Commerce...
You may not know what you don’t know !!
There is no doubt that the business world has changed dramatically in the last year. There are new problems, new solutions, changes in buying motivation, changes in selling strategies, changes in laws, changes in technology, and more new stuff that we don’t know yet. Do you know the most dramatic things that have changed in your industry? How do you know they are the most important changes? How do you find out?
Head in the Sand?
Unfortunately, too many business leaders are scared (understandable) and sticking their heads in the sand (a budget-friendly tactic, to be sure), waiting for the storm to pass. But it isn’t a storm. It’s a climate change. (No windmill or solar panel references. Sorry.) The economy has permanently changed, and to succeed, you need to understand what is fundamentally different, and what it means for your business. So get you head OUT of the sand, look around, and get reconnected with the world.
Its time to attend that conference
You industry associations have meetings all over the country and the world. It can be expensive to attend, but make an effort to go. Listen to keynote speakers. Attend breakout discussions on things you don’t know anything about. Don’t keep going to the sessions on technology or marketing because you used to. Go to new ones on health insurance or stimulus grants. And ask the other attendees … “What is changing in your market, and what are you doing about it?” “What is the worst thing about this new economy?” “What is the best thing?” “What is the most surprising thing?” I guarantee that you’ll be stimulated and jolted into thinking of new things for your business. Sure, the internet and business blogs can accomplish a lot of this, but let’s have some fun while we do our exploration.
Local Networking
Local networking opportunities are expanding all the time a former ‘corporate’ types have become local entrepreneurs like the rest of us. There are probably 10 networking events each week within an hour’s drive of Hyannis. Make a commitment to attend at least 3 per month. The Chamber work continues. BNI chapters continue to encourage guests. Other less formal groups like Monday Madness are becoming networking resource centers. Stay in touch with local people, and ask interesting questions.
Read
Read. Remember that? Your industry journals can be more interesting than ever before. Pick up a copy of Inc magazine, or Forbes, or the Harvard Business Review. Some things won’t apply to a small business, but most will be perfect. Read at least one article that doesn’t seem to apply to your industry, and find the parallels to today’s problems and at least one idea that can be modified for your business. This simple exercise will awaken the creative impulses that got you into business in the first place. I promise.
There is stuff we know. We use it to our advantage. And there is stuff we don’t know, but have decided its not important, or hire others (CPAs, Lawyers, etc) to keep us up to date. But then there is the stuff we don’t know we don’t know. It can devastate us if we find out too late, or it can open new opportunities when we find it out earlier than our competitors. It’s the really important stuff.
You may not know what you don’t know !!
There is no doubt that the business world has changed dramatically in the last year. There are new problems, new solutions, changes in buying motivation, changes in selling strategies, changes in laws, changes in technology, and more new stuff that we don’t know yet. Do you know the most dramatic things that have changed in your industry? How do you know they are the most important changes? How do you find out?
Head in the Sand?
Unfortunately, too many business leaders are scared (understandable) and sticking their heads in the sand (a budget-friendly tactic, to be sure), waiting for the storm to pass. But it isn’t a storm. It’s a climate change. (No windmill or solar panel references. Sorry.) The economy has permanently changed, and to succeed, you need to understand what is fundamentally different, and what it means for your business. So get you head OUT of the sand, look around, and get reconnected with the world.
Its time to attend that conference
You industry associations have meetings all over the country and the world. It can be expensive to attend, but make an effort to go. Listen to keynote speakers. Attend breakout discussions on things you don’t know anything about. Don’t keep going to the sessions on technology or marketing because you used to. Go to new ones on health insurance or stimulus grants. And ask the other attendees … “What is changing in your market, and what are you doing about it?” “What is the worst thing about this new economy?” “What is the best thing?” “What is the most surprising thing?” I guarantee that you’ll be stimulated and jolted into thinking of new things for your business. Sure, the internet and business blogs can accomplish a lot of this, but let’s have some fun while we do our exploration.
Local Networking
Local networking opportunities are expanding all the time a former ‘corporate’ types have become local entrepreneurs like the rest of us. There are probably 10 networking events each week within an hour’s drive of Hyannis. Make a commitment to attend at least 3 per month. The Chamber work continues. BNI chapters continue to encourage guests. Other less formal groups like Monday Madness are becoming networking resource centers. Stay in touch with local people, and ask interesting questions.
Read
Read. Remember that? Your industry journals can be more interesting than ever before. Pick up a copy of Inc magazine, or Forbes, or the Harvard Business Review. Some things won’t apply to a small business, but most will be perfect. Read at least one article that doesn’t seem to apply to your industry, and find the parallels to today’s problems and at least one idea that can be modified for your business. This simple exercise will awaken the creative impulses that got you into business in the first place. I promise.
There is stuff we know. We use it to our advantage. And there is stuff we don’t know, but have decided its not important, or hire others (CPAs, Lawyers, etc) to keep us up to date. But then there is the stuff we don’t know we don’t know. It can devastate us if we find out too late, or it can open new opportunities when we find it out earlier than our competitors. It’s the really important stuff.
Wednesday, June 24, 2009
A Greener Workplace
Want to make your Workplace Greener?
Here in New England, many businesses are doing fine. Some are hanging on. And some are struggling. No matter where your organization is, we still have community responsibilities. Charities depend on business support, and communities depend on us all to be good neighbors. Part of that is making our workspaces greener. What can you do?
REDUCE
• Reduce the amount of paper you use by printing only what is necessary. Keep your file electronically, and make sure you have off-site backups. It’s real easy with some of the new services available from companies like HACC member, iMedia Technology. If you can, offer your customers a way to review statements and purchase orders, etc. online.
• Reduce your energy consumption to reduce waste and save money. Conduct an energy audit. Review machine use, lighting, and insulation. Ask your employees for suggestions. You’ll save money and increase morale, along with helping the environment.
• Set your computer and laptop power management settings to the most efficient energy level. Then power down computers at the end of the day and unplug them, if your network allows for it.
• Combine lamps and machines that can be turned off easily onto dedicated powerstrips that can be easily turned off at the end of the day.
• If its time to replace a company car, look for the most fuel efficient. A hybrid may reduce the impace on the environment while saving you gas money, too. You may even want to ‘wrap’ your car with advertising that shows people how ‘green’ your company has become.
RECYCLE
• Keep a recycle bin or two in the office. Encourage your team and visitors to recycle paper, plastic, cardboard, and other things that your refuse company will separate for you. Be sure to shred sensitive material first, or turn over sensitive material to a business that shreds and recycles.
• Try to use refilled printer and copier ink and toner cartridges whenever possible. At least, make sure you recycle your cartridges.
• Make sure to recycle corrugated cardboard shipping boxes you receive. Or better yet, switch to reusable and returnable packaging and consider asking the supplier for a discount.
REUSE
• Consider all the materials you use in your business. Can any of these materials be used for other purposes? Your employees will have some great ideas.
• Reuse cardboard folders by applying fresh labels rather than discarding them.
• If you are replacing older computers o rmachines, check to see if a local non-profit can use it before your trash it. You may even earn a tax deduction for the contribution !
All these ideas won’t work for everyone, but a few will work nicely in your organization. They will save your money, increase employee morale, and provide opportunities to market your company as a ‘green’ company. Oh, and it could actually help the environment, too.
Here in New England, many businesses are doing fine. Some are hanging on. And some are struggling. No matter where your organization is, we still have community responsibilities. Charities depend on business support, and communities depend on us all to be good neighbors. Part of that is making our workspaces greener. What can you do?
REDUCE
• Reduce the amount of paper you use by printing only what is necessary. Keep your file electronically, and make sure you have off-site backups. It’s real easy with some of the new services available from companies like HACC member, iMedia Technology. If you can, offer your customers a way to review statements and purchase orders, etc. online.
• Reduce your energy consumption to reduce waste and save money. Conduct an energy audit. Review machine use, lighting, and insulation. Ask your employees for suggestions. You’ll save money and increase morale, along with helping the environment.
• Set your computer and laptop power management settings to the most efficient energy level. Then power down computers at the end of the day and unplug them, if your network allows for it.
• Combine lamps and machines that can be turned off easily onto dedicated powerstrips that can be easily turned off at the end of the day.
• If its time to replace a company car, look for the most fuel efficient. A hybrid may reduce the impace on the environment while saving you gas money, too. You may even want to ‘wrap’ your car with advertising that shows people how ‘green’ your company has become.
RECYCLE
• Keep a recycle bin or two in the office. Encourage your team and visitors to recycle paper, plastic, cardboard, and other things that your refuse company will separate for you. Be sure to shred sensitive material first, or turn over sensitive material to a business that shreds and recycles.
• Try to use refilled printer and copier ink and toner cartridges whenever possible. At least, make sure you recycle your cartridges.
• Make sure to recycle corrugated cardboard shipping boxes you receive. Or better yet, switch to reusable and returnable packaging and consider asking the supplier for a discount.
REUSE
• Consider all the materials you use in your business. Can any of these materials be used for other purposes? Your employees will have some great ideas.
• Reuse cardboard folders by applying fresh labels rather than discarding them.
• If you are replacing older computers o rmachines, check to see if a local non-profit can use it before your trash it. You may even earn a tax deduction for the contribution !
All these ideas won’t work for everyone, but a few will work nicely in your organization. They will save your money, increase employee morale, and provide opportunities to market your company as a ‘green’ company. Oh, and it could actually help the environment, too.
Wednesday, May 27, 2009
Back to Basics -- May 2009
Take Control – of your business success
“A series of simple yet effective ways for your business to succeed in challenging times”
Managing in Changing Times -- Back to Basics
It seems that all the business pundits are publishing ‘how to’ guides for difficult or challenging times. On these pages, we’ve been outlining key actions business owners can take to succeed and thrive. None of the ideas are revolutionary. All are proven to work. But many simply don’t get done. Old habits and easy distractions are allowed to dominate in businesses that can’t adapt as they need to.
Last month’s edition of CapeBusiness included advice from two local bank presidents. Joel Crowell of Cape Cod Cooperative stressed the importance of communicating with your banker, first about cash flow, and secondly about your business plan. Business Plan! Where have we heard that before? Everywhere! A business plan can be a 20 page document with 10 pages of historical and pro forma financial spreadsheets. You may need one of those to get an SBA or Bank loan, but most of us aren’t there now. But a business plan can also be as simple as a list of goals for the business, a set of action items that need to be done to reach those goals, management responsibilities, and a monthly or quarterly financial forecast for the next 2 years. Businesses have always needed these. The plan is important for the owner as a way of organizing her/his thoughts and communicating to key advisors. More important is the work of creating the plan. Setting financial, operational, and customer goals that are aggressive yet do-able is a wonderful team building exercise. Developing the action plans is the true essence of leadership. We must take control, and not simply react to the market. And the financial projections test the expected outcomes of the actions. This is a technique for today. That’s for sure. But it’s been a technique all owners need to have been doing continuously.
Dorothy Savarese of Cape Cod Five pointed out that this is a time to watch the business environment and make decisions about what to do for your business. Get ahead of the curve. Downsize, if you must, sooner rather than later. Trim excess expenses and negotiate lower costs. And strengthen relationships, with customers, suppliers, and other collaborators. This is all great advice for today’s times. Of course, it was great advice when times were good, too. A business leader always has to be looking around to see what good could happen and make plans to capitalize, or what bad could happen and make plans to mitigate the effects. They must always look at expenses that can be cut without hurting quality or customer care. And relationships are what built a business. They must be nurtured in good and bad times.
So the best and brightest are giving us solid advice for ‘recession-busting strategies’. And they are reminding us that basic business management works in good times and in bad. Go back to your industriy conference notes. Look at an old business textbook. Dig out your favorite book on leadership, regardless of its age. Call your banker. Call your CPA. Call your business advisor. All the advice you’ve been getting is still valid today.
So make a plan. Work the plan. Then celebrate.
Happy Summer !!
(I’d love to hear from readers on their successes getting back to basics and re-introducing practices they used to use in the past I’d be happy to share your successes in this column next month.)
Barry Neagle
President, Neagle & Associates, Ltd.
bneagle@gmail.com
“A series of simple yet effective ways for your business to succeed in challenging times”
Managing in Changing Times -- Back to Basics
It seems that all the business pundits are publishing ‘how to’ guides for difficult or challenging times. On these pages, we’ve been outlining key actions business owners can take to succeed and thrive. None of the ideas are revolutionary. All are proven to work. But many simply don’t get done. Old habits and easy distractions are allowed to dominate in businesses that can’t adapt as they need to.
Last month’s edition of CapeBusiness included advice from two local bank presidents. Joel Crowell of Cape Cod Cooperative stressed the importance of communicating with your banker, first about cash flow, and secondly about your business plan. Business Plan! Where have we heard that before? Everywhere! A business plan can be a 20 page document with 10 pages of historical and pro forma financial spreadsheets. You may need one of those to get an SBA or Bank loan, but most of us aren’t there now. But a business plan can also be as simple as a list of goals for the business, a set of action items that need to be done to reach those goals, management responsibilities, and a monthly or quarterly financial forecast for the next 2 years. Businesses have always needed these. The plan is important for the owner as a way of organizing her/his thoughts and communicating to key advisors. More important is the work of creating the plan. Setting financial, operational, and customer goals that are aggressive yet do-able is a wonderful team building exercise. Developing the action plans is the true essence of leadership. We must take control, and not simply react to the market. And the financial projections test the expected outcomes of the actions. This is a technique for today. That’s for sure. But it’s been a technique all owners need to have been doing continuously.
Dorothy Savarese of Cape Cod Five pointed out that this is a time to watch the business environment and make decisions about what to do for your business. Get ahead of the curve. Downsize, if you must, sooner rather than later. Trim excess expenses and negotiate lower costs. And strengthen relationships, with customers, suppliers, and other collaborators. This is all great advice for today’s times. Of course, it was great advice when times were good, too. A business leader always has to be looking around to see what good could happen and make plans to capitalize, or what bad could happen and make plans to mitigate the effects. They must always look at expenses that can be cut without hurting quality or customer care. And relationships are what built a business. They must be nurtured in good and bad times.
So the best and brightest are giving us solid advice for ‘recession-busting strategies’. And they are reminding us that basic business management works in good times and in bad. Go back to your industriy conference notes. Look at an old business textbook. Dig out your favorite book on leadership, regardless of its age. Call your banker. Call your CPA. Call your business advisor. All the advice you’ve been getting is still valid today.
So make a plan. Work the plan. Then celebrate.
Happy Summer !!
(I’d love to hear from readers on their successes getting back to basics and re-introducing practices they used to use in the past I’d be happy to share your successes in this column next month.)
Barry Neagle
President, Neagle & Associates, Ltd.
bneagle@gmail.com
Great Questions to ask yourself -- March 2009
Take Control – of your business success
“A series of simple yet effective ways for your business to succeed in challenging times”
Do you know how well you’re really doing?
These are interesting times, no doubt, for business owners and leaders. If we’re going to succeed, we need to build on our strengths and address our weaknesses. And the financial information you need to start analyzing this has recently been updated. Did you know that?
You’ve just had a business tax return prepared, we can assume. Maybe you’ve done it yourself. Hopefully, you used a professional, and your business records are nicely separated from your family finances. So you’ve had to get your financial records up to date. Look them over. If possible, involve your CPA, your banker, your business consultant, or any knowledgeable friend. Compare last year with the last couple of years.
And answer these questions.
• Are sales up or down from last year? By how much?
• How much of your business came from repeat buyers? New customers? Is this good?
• How did your top 10 customers from 2008 do during 2009? Did you lose any? Why?
• Which product lines did the best? Which services grew? Are you promoting them in 2009?
• Are revenues spread evenly across the year, or is there more seasonality than you’d like? Is it getting better or worse?
• Did costs increase or decrease, when looked at as a percentage of sales?
• What can be done to decrease costs without sacrificing quality?
• Did your expenses increase or decrease, as a total, and as a percentage of sales?
• What are the 5 largest expense items on your income statement? What are you doing to keep them under control?
• Payroll is probably in the top 5. Are you waiting too long to ‘right-size’ ? Can people be protected by converting some fulltime people to part time? Do you have the right people? It’s a good time to add quality skills if you can afford it.
• Are accounts receivable being collected as quickly as you’d like? What are you doing ?
• Are accounts payable stacking up because of a lack of cash? Can your banker help?
• Did inventories grow or shrink? Are you sure?
• Is the business generating cash?
The exercise of looking for these answers will tell you a lot about where you’re strong and where you need to spend some time. If its hard to get answers, you may not be really taking control of your business. If you haven’t set up your accounting systems to be able to answer these questions, talk to your bookkeeper. This is important stuff! Maybe you use QuickBooks or NetSuite. Maybe an Excel spreadsheet. Maybe simply a checking account. It’s not too late to make sure that 2009 is the year you start get the information you need to be a better business executive.
Next month, we’ll look at what you can do with this information and how it can lead you through 2009 and beyond.
Barry Neagle
President, Neagle & Associates, Ltd.
bneagle@gmail.com
“A series of simple yet effective ways for your business to succeed in challenging times”
Do you know how well you’re really doing?
These are interesting times, no doubt, for business owners and leaders. If we’re going to succeed, we need to build on our strengths and address our weaknesses. And the financial information you need to start analyzing this has recently been updated. Did you know that?
You’ve just had a business tax return prepared, we can assume. Maybe you’ve done it yourself. Hopefully, you used a professional, and your business records are nicely separated from your family finances. So you’ve had to get your financial records up to date. Look them over. If possible, involve your CPA, your banker, your business consultant, or any knowledgeable friend. Compare last year with the last couple of years.
And answer these questions.
• Are sales up or down from last year? By how much?
• How much of your business came from repeat buyers? New customers? Is this good?
• How did your top 10 customers from 2008 do during 2009? Did you lose any? Why?
• Which product lines did the best? Which services grew? Are you promoting them in 2009?
• Are revenues spread evenly across the year, or is there more seasonality than you’d like? Is it getting better or worse?
• Did costs increase or decrease, when looked at as a percentage of sales?
• What can be done to decrease costs without sacrificing quality?
• Did your expenses increase or decrease, as a total, and as a percentage of sales?
• What are the 5 largest expense items on your income statement? What are you doing to keep them under control?
• Payroll is probably in the top 5. Are you waiting too long to ‘right-size’ ? Can people be protected by converting some fulltime people to part time? Do you have the right people? It’s a good time to add quality skills if you can afford it.
• Are accounts receivable being collected as quickly as you’d like? What are you doing ?
• Are accounts payable stacking up because of a lack of cash? Can your banker help?
• Did inventories grow or shrink? Are you sure?
• Is the business generating cash?
The exercise of looking for these answers will tell you a lot about where you’re strong and where you need to spend some time. If its hard to get answers, you may not be really taking control of your business. If you haven’t set up your accounting systems to be able to answer these questions, talk to your bookkeeper. This is important stuff! Maybe you use QuickBooks or NetSuite. Maybe an Excel spreadsheet. Maybe simply a checking account. It’s not too late to make sure that 2009 is the year you start get the information you need to be a better business executive.
Next month, we’ll look at what you can do with this information and how it can lead you through 2009 and beyond.
Barry Neagle
President, Neagle & Associates, Ltd.
bneagle@gmail.com
Management by Fact - April 2009
Take Control – of your business success
“A series of simple yet effective ways for your business to succeed in challenging times”
Management by Fact
Last month, we looked at some of the valuable business information that can be contained in your financial records. Your accounting systems may need some tweaking and your bookkeeper may have to change the reports they are providing. But the data can be there with a little bit of planning.
My experience is that many owners do NOT have the information they need to run their business. They have trusted their instincts in the past, and it used to work just fine. They don’t know another way. However, in these times, our trained business instincts need to be supplemented by what I call “management by fact.” For example, if you discover that one product line is growing much faster than another, find out why. Should you push it more? Raise prices? Facts can also cause you to question what you used to take for granted. For example, if you are working hard to push new installations of your product, but the facts tell you that you make higher margins on service than new installation, maybe you should push the service work, even servicing installations done by your competitors.
Each business has a few key indicators of financial health. They are going to be different for each business, but they will all include variations on sales revenue, cost controls, expense management, inventory and cash. It’s a real shame that most owners never look at them until it’s too late. Here’s a simple process to make sure that doesn’t happen to you.
A Budget
We recommend a very simple management system to use financial information. It starts with a budget. Make a monthly forecast (even a guess if that’s all you have) for sales, costs, expenses, payroll, net earnings, and cash. If you’ve never done it, use your bank statements or financial records, broken down by month. If necessary, use a bookkeeper, CPA, or business consultant to help you. Of course, you want the budget to show a realistic view of your business. If it makes money for you, is it enough? If it doesn’t, can you sustain the losses? You’ll know. Don’t be afraid to change the budget as you get smarter during the year.
Actual Results
Then, at the end of every month, get a report that compares your actual results to your budget. If you’re on track, great. If not, do something. You may need to adjust your budget. After all, you’re probably doing this for the first time and you’re learning as you go. But stay focused on what the discrepancies are telling you. Maybe it’s bad data. Do you need a better way to get information into your accounting system? Maybe it’s too optimistic a view of sales revenue. If so, what can be done to push more sales or defer expenses? Maybe it’s something else. Know it and react to it. As you adjust the plan, make sure you look at the impact it will have on cash balances. Cash is still king!
Board of Advisors
On a quarterly basis, get your top employees and a couple of outside advisors to join you for a review of your financial results, comparing your budget to your actual results. If you’re doing better than you planned, celebrate. Do something to reward yourself and your team. If you’re behind on your plan, make adjustments to your operations and to your budget. Outside advisors can be a great source of ideas and encouragement, and may be better than involving employees if you want to keep the books private.
We know that not many business leaders make the time to do these simple things. But we need to be better business leaders now more than ever before. The tailwind of economic prosperity has been replaced by a headwind or resistance. We have to work harder to tack into the wind than run with the wind. So make a few adjustments. Run your business with facts as well as instincts. Use your friends and advisors.
Most people won’t do it. But the winners will. Do you want to be a winner?
Barry Neagle
President, Neagle & Associates, Ltd.
bneagle@gmail.com
“A series of simple yet effective ways for your business to succeed in challenging times”
Management by Fact
Last month, we looked at some of the valuable business information that can be contained in your financial records. Your accounting systems may need some tweaking and your bookkeeper may have to change the reports they are providing. But the data can be there with a little bit of planning.
My experience is that many owners do NOT have the information they need to run their business. They have trusted their instincts in the past, and it used to work just fine. They don’t know another way. However, in these times, our trained business instincts need to be supplemented by what I call “management by fact.” For example, if you discover that one product line is growing much faster than another, find out why. Should you push it more? Raise prices? Facts can also cause you to question what you used to take for granted. For example, if you are working hard to push new installations of your product, but the facts tell you that you make higher margins on service than new installation, maybe you should push the service work, even servicing installations done by your competitors.
Each business has a few key indicators of financial health. They are going to be different for each business, but they will all include variations on sales revenue, cost controls, expense management, inventory and cash. It’s a real shame that most owners never look at them until it’s too late. Here’s a simple process to make sure that doesn’t happen to you.
A Budget
We recommend a very simple management system to use financial information. It starts with a budget. Make a monthly forecast (even a guess if that’s all you have) for sales, costs, expenses, payroll, net earnings, and cash. If you’ve never done it, use your bank statements or financial records, broken down by month. If necessary, use a bookkeeper, CPA, or business consultant to help you. Of course, you want the budget to show a realistic view of your business. If it makes money for you, is it enough? If it doesn’t, can you sustain the losses? You’ll know. Don’t be afraid to change the budget as you get smarter during the year.
Actual Results
Then, at the end of every month, get a report that compares your actual results to your budget. If you’re on track, great. If not, do something. You may need to adjust your budget. After all, you’re probably doing this for the first time and you’re learning as you go. But stay focused on what the discrepancies are telling you. Maybe it’s bad data. Do you need a better way to get information into your accounting system? Maybe it’s too optimistic a view of sales revenue. If so, what can be done to push more sales or defer expenses? Maybe it’s something else. Know it and react to it. As you adjust the plan, make sure you look at the impact it will have on cash balances. Cash is still king!
Board of Advisors
On a quarterly basis, get your top employees and a couple of outside advisors to join you for a review of your financial results, comparing your budget to your actual results. If you’re doing better than you planned, celebrate. Do something to reward yourself and your team. If you’re behind on your plan, make adjustments to your operations and to your budget. Outside advisors can be a great source of ideas and encouragement, and may be better than involving employees if you want to keep the books private.
We know that not many business leaders make the time to do these simple things. But we need to be better business leaders now more than ever before. The tailwind of economic prosperity has been replaced by a headwind or resistance. We have to work harder to tack into the wind than run with the wind. So make a few adjustments. Run your business with facts as well as instincts. Use your friends and advisors.
Most people won’t do it. But the winners will. Do you want to be a winner?
Barry Neagle
President, Neagle & Associates, Ltd.
bneagle@gmail.com
Monday, March 16, 2009
B2B Services - Who's good?
All of us small businesses need help. We use bookkeepers, lawyers, graphic artists, payroll services and more. Together we can identify and endorse those we think are really good.
I'm going to start with a group of people I can heartily endorse, based on personal and client experiences. Please comment and tell us about more:
BOOKKEEPING & FINANCE
Glivinski & Associates South Yarmouth, MA 508-398-9300
GRAPHIC DESIGN
Andrew Newman Design Marstons Mills, MA 508-420-1161
IT SERVICES
iMedia Barnstable, MA 508-36204171 ( for 10+ computers and 1+ server)
NeuEon, Inc. Orleans, MA 877-273-9200
LEGAL SERVICES
Keith McManus Hyannis, MA 508-778-8855
Edward Conroy Plymouth, MA 508-747-9571
Ted Schilling Centerville, MA 508-775-0700
PAYROLL
BizChecks Payroll Marstons Mills, MA 866-932-9700
PRINTING & SHIPPING
Business Center of Cape Cod Centerville, MA 508-775-9890
PROMOTIONAL PRODUCTS
Bay State Calendar Osterville, MA 508-778-5564
WEB SITE DESIGN & HOSTING - Custom Designed Web Solutions
Koa Media South Yarmouth, MA 508-398-0026
WEB SITE HOSTING & PROMOTION - Simple Web Sites, targetted advertising
eCape Dennis, MA 508-385-0003
I'm going to start with a group of people I can heartily endorse, based on personal and client experiences. Please comment and tell us about more:
BOOKKEEPING & FINANCE
Glivinski & Associates South Yarmouth, MA 508-398-9300
GRAPHIC DESIGN
Andrew Newman Design Marstons Mills, MA 508-420-1161
IT SERVICES
iMedia Barnstable, MA 508-36204171 ( for 10+ computers and 1+ server)
NeuEon, Inc. Orleans, MA 877-273-9200
LEGAL SERVICES
Keith McManus Hyannis, MA 508-778-8855
Edward Conroy Plymouth, MA 508-747-9571
Ted Schilling Centerville, MA 508-775-0700
PAYROLL
BizChecks Payroll Marstons Mills, MA 866-932-9700
PRINTING & SHIPPING
Business Center of Cape Cod Centerville, MA 508-775-9890
PROMOTIONAL PRODUCTS
Bay State Calendar Osterville, MA 508-778-5564
WEB SITE DESIGN & HOSTING - Custom Designed Web Solutions
Koa Media South Yarmouth, MA 508-398-0026
WEB SITE HOSTING & PROMOTION - Simple Web Sites, targetted advertising
eCape Dennis, MA 508-385-0003
Wednesday, March 11, 2009
Its your money !!
As we enter 2009, many business owners are a bit fearful about what the economy holds. It is unlikely there will be a bailout for us, and it’s unlikely that the Cape’s economy will thrive like it was a few years ago. We can cower in the corner, shut down all spending, and let our business and our bank accounts shrink. Or we can take control. This is the first in a series of simple tips and ideas for you to take care of your business in these challenging times.
We’ll start with cash, the prize we chase and the Achilles heal of many weak businesses. Many of your customers will not step up and take control like you can; so they may be cash-challenged. And they’ll be later and later in paying your bills. So they threaten to make you cash-challenged, too. What can we do about it?
First of all, if you haven’t already, announce your payment terms for 2009. Put an insert in your first quarter invoices, and update your invoice forms so they clearly spell out your terms. Maybe a 2% discount for payment within 20 days… perhaps a 1% per month penalty for payments beyond 60 days. You decide what works for you, and tell your customers.
Then be much more diligent about collecting your money. Yes, its yours ! You’ve bought the inventory, made the sale, make the delivery, or performed the services. You are entitled to be paid now. So when invoices get to be 20 days old, send a gentle email reminder that payment is due in the next week. After 30 days, make a phone call to politely ask when payment is scheduled. At 45 days, follow up and be a little firmer. At 60 days, you have to be harsh, and at 90 days, you may have to shut off future sales to your customer. Your IT team or support company can help you send these automatic emails and prepare the phone follow up lists automatically if you think there are too many to do by hand.
This may establish a new relationship with your customers. If you have forewarned them and made sure your people have been very polite during the collection process, they will respect you even more. And you’ll have your money. Of course you can make exceptions for special circumstance, but the fewer the better.
If you get excited by this idea, you can even implement tracking statistics so you can see how well it works. Track total receivables to see if its going up or down. You can also track receivables as a percentage of sales. You can measure total receivables or overdue, whatever is best for your business. You can even measure average “days sales outstanding”. Whatever you decide to track, if you pay attention and learn from the experiences it will better, and you’ll have more of your cash, within a few short months.
We’ll start with cash, the prize we chase and the Achilles heal of many weak businesses. Many of your customers will not step up and take control like you can; so they may be cash-challenged. And they’ll be later and later in paying your bills. So they threaten to make you cash-challenged, too. What can we do about it?
First of all, if you haven’t already, announce your payment terms for 2009. Put an insert in your first quarter invoices, and update your invoice forms so they clearly spell out your terms. Maybe a 2% discount for payment within 20 days… perhaps a 1% per month penalty for payments beyond 60 days. You decide what works for you, and tell your customers.
Then be much more diligent about collecting your money. Yes, its yours ! You’ve bought the inventory, made the sale, make the delivery, or performed the services. You are entitled to be paid now. So when invoices get to be 20 days old, send a gentle email reminder that payment is due in the next week. After 30 days, make a phone call to politely ask when payment is scheduled. At 45 days, follow up and be a little firmer. At 60 days, you have to be harsh, and at 90 days, you may have to shut off future sales to your customer. Your IT team or support company can help you send these automatic emails and prepare the phone follow up lists automatically if you think there are too many to do by hand.
This may establish a new relationship with your customers. If you have forewarned them and made sure your people have been very polite during the collection process, they will respect you even more. And you’ll have your money. Of course you can make exceptions for special circumstance, but the fewer the better.
If you get excited by this idea, you can even implement tracking statistics so you can see how well it works. Track total receivables to see if its going up or down. You can also track receivables as a percentage of sales. You can measure total receivables or overdue, whatever is best for your business. You can even measure average “days sales outstanding”. Whatever you decide to track, if you pay attention and learn from the experiences it will better, and you’ll have more of your cash, within a few short months.
Do your best customers feel the love?
This month I want to remind you to take care of your customers, especially loyal customers who make repeat purchases. We all have them, those special customers who think our business is simply great. We might even have a name for them… the Gold Customers. They keep buying from us and they tell their friends and business associates. We love them, and it appears they love us, too. But how do we really know? If they stop loving us, will we find out soon enough to fix it?
A few simple steps can ensure that our best customers remain loyal. First of all, find out who they are and make a list. Your bookkeeping systems should be able to get a listing of who has bought the most from you over the last 3 years. Or you may want a listing of who bought most often from you. If you books are, well, informal, look over the invoices that are sitting in a shoe box somewhere. It’s something to do while the Patriots are not entertaining us on weekends and pitchers and catchers haven’t reported to spring training. Whatever you do, make a list of the top 20, 50, or 100 best customers. And tell your staff they are to be treated with special care.
Secondly, call them and say ‘Thank You’. Don’t make it a sales call. It’s simply a call that says … “I know that you are one of our best customers. We really appreciate your business and I’m calling to thank you. If you ever have any concerns, you can reach out directly. My staff has been instructed to make sure you are treated to the best customer service possible.” And make sure you make that call at least once a year, from now ‘til forever.
Third, make sure they remain loyal. Ask your team to generate a Gold Customer sales report every month or every quarter, that shows the revenue from each of the best customers, including the date and amount of the most recent purchase. Look it over to spot trends and identify the customers who may have slowed or stopped purchases. As soon as you see a negative trend, call the customer and ask if everything is OK. When you learn about a problem early, you can fix it. If they are already doing without your product or using a cheaper competitor, it’s too late.
Finally, evaluate whether you want to have a special set of Gold Customer services. Maybe a dedicated support or service person. Or a hand-delivered holiday gift. Maybe a reception after the July 4th parade. If you’re in the hospitality business, you may offer a free dessert or glass of wine with dinner or a room upgrade. Send them a birthday card. There are lots of creative yet inexpensive ways to make them feel loved. Once you decide to pamper your best customers, use your creativity more than your cash to make them feel special. Discounts are rarely appreciated as much as good service.
2009 promises to be a challenging business environment. Businesses that ignore the warnings and don’t make changes are going to struggle. But those of you who decide to take control can do well. Customers want value, and special care coupled with fair prices is the best value we can deliver. Feel free to share your Gold Customer programs with me. You may find your business featured in upcoming columns.
A few simple steps can ensure that our best customers remain loyal. First of all, find out who they are and make a list. Your bookkeeping systems should be able to get a listing of who has bought the most from you over the last 3 years. Or you may want a listing of who bought most often from you. If you books are, well, informal, look over the invoices that are sitting in a shoe box somewhere. It’s something to do while the Patriots are not entertaining us on weekends and pitchers and catchers haven’t reported to spring training. Whatever you do, make a list of the top 20, 50, or 100 best customers. And tell your staff they are to be treated with special care.
Secondly, call them and say ‘Thank You’. Don’t make it a sales call. It’s simply a call that says … “I know that you are one of our best customers. We really appreciate your business and I’m calling to thank you. If you ever have any concerns, you can reach out directly. My staff has been instructed to make sure you are treated to the best customer service possible.” And make sure you make that call at least once a year, from now ‘til forever.
Third, make sure they remain loyal. Ask your team to generate a Gold Customer sales report every month or every quarter, that shows the revenue from each of the best customers, including the date and amount of the most recent purchase. Look it over to spot trends and identify the customers who may have slowed or stopped purchases. As soon as you see a negative trend, call the customer and ask if everything is OK. When you learn about a problem early, you can fix it. If they are already doing without your product or using a cheaper competitor, it’s too late.
Finally, evaluate whether you want to have a special set of Gold Customer services. Maybe a dedicated support or service person. Or a hand-delivered holiday gift. Maybe a reception after the July 4th parade. If you’re in the hospitality business, you may offer a free dessert or glass of wine with dinner or a room upgrade. Send them a birthday card. There are lots of creative yet inexpensive ways to make them feel loved. Once you decide to pamper your best customers, use your creativity more than your cash to make them feel special. Discounts are rarely appreciated as much as good service.
2009 promises to be a challenging business environment. Businesses that ignore the warnings and don’t make changes are going to struggle. But those of you who decide to take control can do well. Customers want value, and special care coupled with fair prices is the best value we can deliver. Feel free to share your Gold Customer programs with me. You may find your business featured in upcoming columns.
If you have to fire someone, do it the right way !
Many people, unfortunately, are going to be laid off in the next several months. And business leaders are going to be the ones doing the firing. It hurts to have to fire someone, but not as bad as it hurts to be fired. So if and when you have to do it, respect the employees and make it as painless and respectful as possible.
Prepare
First of all, prepare for the employee meetings. If you have a Human Relations advisor, or a mentor or coach, get their input. This is not a meeting you have often, so don’t simply trust your instincts. Make notes for the meeting; so that you make sure you include all the points you want to make. And practice what you’re going to say. Don’t wing it.
Privacy and Candor
Make an appointment with the employee, and meet them in a private place. Use an office or conference room, or someplace else where you both can have privacy. Make sure you are candid and direct about the reasons. Explain in detail the financial pressures the company is under and explain that this decision is about the company, not about the employee. It does no good to bring up performance issues, unless they’ve been discussed in the past and they were significant reasons why this employee was selected to be terminated. Stick to the real point that the company simply can no longer afford to keep all the staff.
Reaction
Give people time to react. While they should be paying attention to what is going on, most will appear shocked. Some may get angry or cry. Let it happen. This is the time to show respect to the “person,” even if the “employee” has to be terminated. Make sure they have time to ask questions, and prepare a written package of information for them. Include the last day of pay, what happens to unused vacation, collection of company property, disposition of retirement accounts (if any), and what will happen to their benefits going forward.
Assistance
If the employee warrants it, tell them you’ll be happy to serve as a reference or prepare a letter of recommendation for them. And if you can give them a few leads as to where they may find work, do it. Don’t promise or encourage them into thinking you can find them a job. Simply offer the facts of what you can do for them.
Scheduling
Some people think its best to do a firing on a Friday; so the tensions have time to abate over the weekend. It may be better for you, but this is about the employee. I recommend doing it early in the week. Then they have some time to immediately begin a new job search without having to wallow in their grief all weekend. They undoubtedly have friends at the company, and they may need to hear all the support they can from their co-workers.
Transition
Try to make sure to demonstrate respect for the person. Avoid having security escort them out of the building, or having them clean out their desk or truck immediately. Ideally, give them a few days or weeks of time to clear up their responsibilities and transition projects to others. This will also give them a business setting to work from for a while doing their next job search
Learn from it
I’ve done this more than I like, and I’ve learned from the experience. Think about what the employee could have done to avoid the situation … such as begin looking for a new position as soon as the company’s situation began to worsen… or transferring into a more critical part of the company where they are less likely to be terminated … or doing unique things that make them truly indispensible. And then think about the advice you can give remaining employees, and to take yourself, to avoid more layoffs in the future. If you’re the business owner, the one who got caught with not enough money to pay everyone, redouble your efforts, take control, and do the things that will have you NOT participating in the economic slowdown. Be the one hiring good people who are now available.
I’d love to hear from you on you good or bad firing experiences. Whether you’re boss or the laid- off employee. Feel free to call or email your comments, questions, and ideas.
Barry Neagle
President, Neagle & Associates, Ltd.
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