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
Monday, March 16, 2009
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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