MILDRED WALTERS: Coach

Stage 1: Business Life Cycle

2013-05-21T06:00:00.000-05:00

There are basically five stages of business growth. Regardless of the industry or the number of years in business, there are common characteristics to each stage of growth. Some businesses may remain at Stage 1 for several years before the owners figure out how to catapult to the next level.

Stage 1: Existence

At this stage the owner does everything and directly supervises subordinates. The owner is the business, performs all important tasks, and is the major supplier of energy, direction, and capital. Systems and formal planning are minimal to nonexistent. The company’s strategy is simply to remain alive. Key questions are:

· Can we get enough customers, deliver our products or services, and provide our services well enough to become a viable business?

· Can we expand from one key customer or pilot production process to a much broader sales base?

· Do we have enough money to cover the considerable cash demands of this start-up phase?

Businesses fail at this stage for several reasons:

· The owners cannot accept the demands that the business places on their time, finances, and energy

· The start-up capital runs out

· The business never gains sufficient customer acceptance or product capability to become viable.

The companies that remain become Stage 2 enterprises. Stay tuned for the description of that stage next week. This week and for the next four weeks, I’ll be posting about the five stages of small business growth.

Source: The Five Stages of Small Business Growth by Neil C. Churchill and Virginia L. Lewis.

Knowing Your Business Life Cycle Can Be a Key to Survival

2013-05-14T05:00:00.000-05:00

Businesses have stages of development just as humans do. Before my first child was born, I purchased books on what to expect during the first year of life. Those books alleviated some of my fears by helping me to know what was normal and what was cause for concern.

I believe that there are more theories on business development than there are on human development. Some authorities say that businesses go through as few as three stages and others describe seven stages. However, they all site start-up, growth, and maturity as some of the stages.

Recognizing the stage that your business is in is important for the same reasons that it is important to know what stage your child is in. This awareness helps you to know how to deal with them. You'll know when to be alarmed, when to apply extreme remedies and you may learn what other business owners have done at the same stage.

The time it takes to go through each stage is different for each business. Sometimes it depends on the industry or it may depend on how the business is nurtured. I've seen businesses that have been in operation for twenty years but they are at a stage reached by many five year-old businesses.

I have clearly seen five stages that small businesses move through during their life cycle. I'll describe those over the next few weeks. We'll talk about how to measure your company's performance and ways to keep moving toward the next stage. Hopefully you'll find these posts helpful.

How long have you been in business? What stage do you think your business is in?

Winning with a Losing Hand

2013-05-07T06:30:00.000-05:00

I have a group of friends who love to play cards. Their game of choice is “Bid Whist.” I was never much good at the game. I like to talk too much. Silly me—I confused card playing with a social activity. These people are laser focused. For this group a card game is serious business.

So, I watch others play and I’ve learned some things.

1. Bid high. After the cards are dealt, you don’t have long to make your bid. If you set your goal too low, your opponents will criticize you for being afraid. And you’ll be upset with yourself when you realize that you could have set a higher bid and ended up with a higher score.

2. Trust your partner. One of the rules of the game is that you can’t have discussions with your partner.“No talking across the table.” If your partner makes a bid that you don’t agree with, you have to believe that he knows what he's doing. Either he has winning cards or a strategy that will neutralize the winning cards in the hands of the competition.

3. Play the hand you’re dealt. If you look at your hand and don’t see anything to your favor, you can’t just throw in the cards. You’ll be surprised. Sometimes the competition is so bad that you win anyway.

4. Know your competition. The best card players count cards. They know what has been played and they know which cards are left in each suit. They’re just not sure who has them. Without being able to talk to your partner, you can make a good guess about what’s in her hand by the way she responds to the cards you lead with. So through deductive reasoning you can surmise what’s in your competitors’ hands.

5. Winning is always an option. You may not have the best cards, but you may have a good strategy. For example, you may seek to control the game by forcing your opponents to play cards before they intended. You make them play the card when it’s not to their advantage.

In “Bid Whist,” just like in business, a good strategy can make a bad hand a winning hand.

Necessity is a Powerful Motivator

2013-04-30T05:30:00.000-05:00

Some time ago I had the pleasure of working with two distinctly different companies. Company #1 had deep pocket investors from the beginning. The company burned through $3 million in about 18 months. They funded a facility build-out, bought new furniture, and quickly hired several new staff members. All before their product ever went to market.

Company #2 had only the money from the owner’s savings. The work space was furnished with desks and chairs that had been left behind by previous occupants. For over a year her only assistance came from an accountant, attorney and a virtual assistant.

The owner of Company #2 told me that if she wasn’t profitable by a certain date, she would close shop. Her funding was based on sales. Until her business reached a specific level, she re-invested profits into the business. She worked long hours and tracked every penny. Necessity is a powerful motivator.

The investors abandoned Company #1 after two years. The rate of return wasn’t what they wanted. Left alone, the owner was lost. When I began to work with him, I asked to see financial statements. He had none, not even Profit and Loss Statements. After two years of being in operation, all he had were the projections from his business plan. He explained that the investors hadn’t required them. He also told me that since he had no revenue, he didn’t need them. True, he had no profits, but he certainly had losses. And that should have been documented.

It took a while, but Company #1 finally dug himself out of his hole. After laying off all but two team members, he started fresh. Now the business is a mid-sized company with profits above industry average and an enthusiastic workforce. The owner says that he’ll keep running his mid-size business like a scrappy start up. He is not casual about even one cent that comes into the enterprise.

Company #2 is still going strong, as well, and is fully staffed. The owner of that company says that she has learned that when people feel that there is abundance, they are not as careful about how they use cash. She treats every dollar as if it might be her last. But now she can take time off and enjoy life.

Both companies reached their destinations although taking very different paths.

Did Mr. Coffee See Keurig Coming?

2013-04-23T07:57:00.000-05:00

Mr. Coffee was revolutionary. It took the old percolator out of American homes with a new drip brewing process. Mr. Coffee dominated the market until Keurig came along with its single serve coffemaker in 1998. That was six years before Mr. Coffee decided to join the one-cup business.

Last night in Wal-Mart, I saw Keurig displayed where Mr. Coffee used to be. Mr. Coffee was on a clearance table for half price. Mr. Coffee single serve uses the K-cup coffee made by Keurig.

Did Mr. Coffee see Keurig coming? One of the jobs of the leaders is to be a visionary. You've got to see what's on the road ahead. You must be realistic and see the good and bad, to know your competitors as well as you know yourself. If you don't know your competitors, you could get clobbered.

Can you answer these questions:

Who are our competitors now?
Who are then new ones coming in?
Who are the old ones that you've always had?
What are the strengths and weaknesses of your competitors?
Are they spending a lot of money right now?
How big is their sales force?
How do you beat them?

What else should you know about your competitors?

Tips for Writing Effective Want-Ads

2013-04-16T05:30:00.000-05:00

Has recruiting good employees become an issue for your organization? You have to make the effort to sell your company to prospective candidates while remaining honest. It may be tempting to make bold statements to aid in recruitment, such as: "This is the best place to work in Middle Tennessee" or "We offer you a path to the top of our organization."

Making these statements may seem harmless, but if they are not true you are_______ what? Your company's reputation can be harmed with these brash, untrue statements.

To recruit the best candidates, design your ad to:

Grab the readers' attention with a heading that will help sell the job.But don't be too creative. Be sure that it doesn't overpromise. However, you shouldn't just list the job title.
Be honest about advancement opportunities and the responsibilities of the position.
Be specific about the required qualifications--education, experience and skills.
Generally tell the advantages of working for a small entrepreneurial company and specifically your company.
Be easy to read, whether online or in print. Double check to be sure it is grammatically correct and that there are no spelling errors.

Provide the readers with instructions on how to apply for the job or how to get more information--phone number or address.

What have you found to be the best source for recruiting new employees?

Stop the Rise of Scapegoats

2013-04-09T06:30:00.000-05:00

Do you have employees who don’t take the blame for their mistakes? When deadlines are not met, do they blame someone other than themselves? Are they quick to blame a co-worker for customers’ complaints?

If this type behavior is common in your business, you may be fostering a culture of scapegoating. Take a look at how you respond to mistakes. If your battle cry is "Failure is not an option," you could be sending a signal that mistakes are to be hidden. In this environment, customer service is neglected. No one wants to deal with the complaint. Instead, they’d rather discuss who made the mistake.

How do you create open and honest communication among employees? In what ways do youdistinguish between errors made while striving for excellence and those that are made from lack of effort?

Increase Revenue with Joint Ventures

2013-04-02T09:03:00.001-05:00

Joint Ventures can be quite beneficial to your business. You may decide to form a JV with another business, a nonprofit organization, or a governmental agency. Examples of successful JVs include:

1. Two small businesses join together to pursue a contract that neither has the capacity to handle alone.

2. A small business joins with a nonprofit organization to create a product that is sold for profit with the proceeds benefiting the nonprofit. The company provides the know-how and the nonprofit provides the labor.

3. A risk management company joins with an insurance company to provide workshops to their target market.

4. A beauty shop and a health spa work together to create “Me-Time” Day.

5. A medical equipment company joins with the local community college to recruit students for jobs and internships.

To find Joint Venture partners, think about the businesses that already have your prospective customers or employees. Look for mutually beneficial arrangements where you can share the expense of advertising, create better deals for your mutual customers, and generate goodwill.

1. Plan carefully to insure that your Joint Venture is of benefit to you and your JV partner. When you contact the prospective partner, be sure to explain how the venture can benefit the other business. Find something that they want from you and be clear about your offer.

2. Choose a business with a reputation equal to yours. You don’t want to partner with a business that needs you to improve their image. Be sure to that you partner with someone you know, like and trust.

3. Clearly define parameters of the relationship, what the expenses are and when they are to be paid. If the project is to generate revenue, decide in advance how and when it will be distributed.

4. If the partnership is for one event only, say so. Set specific begin and end dates. Know who will handle publicity and advertising.

5. Determine if both parties have to agree before a decision can be made.

6. Decide if you will share customer lists or if each organization will handle their direct contacts.

7. Determine in advance what your goals are and agree on what success will look like.

8. Put as much as possible in writing in advance, but keep the lines of communication open. Look for ways to make the venture positive and productive for all parties involved.

Have you had experience in a Joint Venture? Was it positive? What did you do to make it a positive experience? If it wasn’t, what could have been done to improve the situation?

You Must Predict the Future

2013-03-26T06:30:00.000-05:00

A consultant told me last week that there was no way possible for a business owner to plan for the future. She said, “The economy is in such a flux that there is no way to plan ahead.”

I’ve spent the last few days mulling over that assertion. You see, strategic planning is a major part of what I do. That’s how I work with business owners. I believe that if you can’t see what’s coming down the pike, you’re doomed. You must predict the future. How?

1. Look at what’s going on in your industry. What are the trends?

2. Know your purpose. You must know who needs the things that you provide. What problems do you solve? How do you solve them now? How will they be solved in the future?

3. Recognize what you know. Think about what you’ll need to know to serve future clients and begin learning those skills. If no one is doing it yet, look around to see how you can gain the skills you’ll need.

The owners of the major railway companies thought everyone would travel by train forever. When people began to travel by plane, not one of those railway owners had invested in air travel. They didn’t see it coming. If they did, they may have thought it was a passing fad.

In what direction is your industry going? Are you prepared to make the necessary investments of time and money to begin pilot projects to test your ideas? Is your future secure?

Think About Your Company's Culture

2013-03-19T05:30:00.000-05:00

Every business has a culture. From the multi-national corporation to the smallest, sole proprietorship, every business entity has more than a legal identity, a set of policies and procedures, or a brand. The organization's productivity and performance are affected by its culture. Strong corporate cultures are intentionally shaped by the business owner, while weak ones are the result of neglect.

Although most larger organizations monitor and manipulate their corporate culture to ensure that it's beneficial to the company, many smaller business owners are unaware that a specific culture has developed until it exits. This is a mistake which can be detrimental to your business success. Your corporate culture will help or hinder your company's success depending on how you manage it.

Corporate culture is unique to each company. To manage yours, you must clearly communicate your business' vision, mission and values. They contribute to the corporate culture. Other contributing factors are:

The way employees, customers, and the wider community are treated
Freedom in decision making, developing new ideas, and personal expression
The flow of power and information

Forming a corporate culture may be intentional or unintentional. To be intentional in creating your corporate culture, support and encourage those things that you value. For example, if you want employees to treat each other with respect, say so. Then reward those who demonstrate that behavior. The reward may be recognition or a token.
You may not have the opportunity to build the company culture that Google has, where employees have flexible work schedules, free employee lunches, and in-house physicians. Yet, you can still create an employee-friendly work environment. Perhaps you can offer paid time off as an incentive for reaching a specific milestone. Or consider allowing employees to telecommunicate if it will work in your industry?

As you create your culture, take a look into the future. Are the actions you take now good for the long-term growth of your business? Can they be sustained when the workforce grows? Can you continue them when your responsibilities change? Can someone else assume the role you now play in fostering a strong corporate culture?

Is It Time to Review, Renew or Re-do Your Plan?

2013-03-12T09:12:00.000-05:00

When the period covered by your current plan ends, what do you do? You may consider doing one of the three following actions:

Review the plan. Did you do what you intended? Is your business similar to what it was at the beginning? How has your business changed?
Renew. Do you want to continue on the path that you are traveling? If so, all you need to do is add current figures and update your charts and graphs.
Re-do. Perhaps you decided to go in a completely different direction than originally planned. In that case it's time to re-do your plan. You can't simply freshen it up with a few new charts and graphs. You need to re-think your mission, values, and vision to bring them in alignment with your current intentions.

Do you use a written plan to guide your business? Is it helpful?

Hire Slowly; Fire Quickly Part 3

2013-03-05T07:41:00.000-06:00

Part 3: Unemployment Compensation

A while back, I was at a Chamber meeting chatting with a woman who owns a business that frequently uses temporary labor. She was surprised that those short-term employees, even if she used their help for only one day, were eligible for unemployment compensation charged against her account. She said that her premiums were becoming a major expense for her growing business.

Regardless of the length of time someone works for your business or the circumstances under which he is hired, you may be liable for benefits paid. Even if you tell the prospective employee at the time of hire that the job is temporary, as soon as work is not available, he becomes eligible to apply for unemployment compensation and your reserve account becomes liable for charges if he is approved for benefits.

The person whose employment has just been terminated will go straight to the unemployment office to file a claim for benefits. To avoid having this claim charged against your account, it is up to you, the employer, to prove that a former employee was guilty of willful work-related misconduct. Your Employee Handbook will be your best weapon to prove that the former employee willfully broke company policy.

When the former employee files for unemployment compensation, the Tennessee Department of Labor will investigate. You should be able to provide documentation that the former employee was aware of the policies and the dates that you discussed those issues. Listed below are seven common reasons for releasing an employee.

1. Absenteeism/Tardiness

2. Violation of Company Policy

3. Poor Work Performance

4. Use of drugs/intoxicants

5. Falsification of application

6. Refusal to work shift

7. Stealing

Tennessee law does not recognize probationary employment. If you discharge a new employee within any period of time, you will have to prove willful misconduct in order to protect your reserve account from charges.

When someone voluntarily quits in lieu of being discharged, it is treated as if the employee was fired.

Be sure that each employee receives a copy of the Employee Handbook and you have their signature on a document stating that he has read the Handbook.

This information is from the Tennessee Department of Labor Web site.

Hire Slowly; Fire Quickly Part 2

2013-02-26T06:30:00.000-06:00

You’ve made your decision to terminate employment of someone you thought would be a fitting contributor to the company’s bottom line. But, it didn’t work out that way. Once you've made the decision, arrange to meet with the employee face-to-face in a private location.

I warn you, the actual meeting can be very emotional. No one likes to fire an employee. So, keep the following points in mind:

Don’t

Blurt out something you didn't intend to say.
Apologize.
Make up a false reason.
Give no reason at all.
Engage in discussion or reconsideration.
Allow a peer to the soon-to-be-terminated employee or a direct report of said employee to witness the meeting.
Provoke the employee to anger.
Be unnecessarily cruel, rude or rash.

Prepare what you’re going to say.
Have a witness and helper at the meeting with you. It can be someone from HR, another manager, or another person higher up the chain of command. The important thing is that this person is there and informed beforehand.
Think about how the employee might respond.
Explain briefly why you're unsatisfied with his or her performance. This should be a restatement of discussions you’ve previously had with the employee, alerting him that his employment with your firm was in jeopardy.
Allow the person to respond, but be clear: the decision has been made, and it's final.
Tell the person to gather her personal belongings, return any company property (such as keys, security ID, credit card or electronic devices) and leave the premises.
Check with your attorney or state Department of Labor to make sure you're not violating any employment laws.
You may wish to draw up a severance agreement, which outlines any compensation or continued benefits the person may receive after termination, and have that ready for your final meeting.
Treat the terminated employee with dignity.

Normally, the direct supervisor fires the employee. If that person is not available then the supervisor's boss does the firing. Firing is not done by Human Resources, an outside consultant, a peer, or a manager from a different department. It should be done only by the direct chain of command.

Next Week Part 3: Preparing for the Unemployment Compensation Claim

Hire Slowly, Fire Quickly

2013-02-19T05:30:00.000-06:00

When a group of business owners gets together the conversation frequently turns to employees—recruiting, selecting, hiring, training and retaining. If those things are done well, the gut-wrenching decision to fire an employee does not become an issue. But, we’ve all made mistakes in that regard.

Begin taking corrective measures as soon as you realize that you’ve made a mistake by hiring the wrong person for a position. If you see that the person underperforms or violates one of the rules you've outlined in your employee handbook, your first course of action is to talk privately with the employee and give him or her time to improve performance. With luck, this one conversation will turn things around. But document the conversation any way. If things go badly, meaning you eventually decide to terminate the person’s employment, all documentation must be contemporaneous. You can’t go back later and try to document the actions you’ve taken. If you meet regularly with your attorney, be sure to discuss actions taken with this employee.

Business owners will quickly tell you that Tennessee is an “Employment-at-Will” state. They believe that they may legally fire, suspend or discipline any employee at any time and for any reason or no reason. And they are right about that. However, an employer may not discriminate against any employee on the basis of their race, sex, age, religion, color, national origin, or disability. And that’s what the unemployed person may think if you haven’t expressed concern about their skills or abilities or absences or tardiness or any other violations.

That is one reason why you should discuss unacceptable behavior with the employee and document it. And if your employee fails to improve after repeated warnings (as a general rule of thumb, allow for three), you know it's time to let that person go. If your documentation is in order, you need not fear firing.

However, even with your documentation in order, the employee may immediately leave your office and head to an attorney's office to take legal action if he thinks he has been discriminated against.

Or she may file for unemployment compensation, which may lead to an increase in your unemployment insurance premiums. It may increase only slightly in the beginning, but it can become a pretty steep expenditure fairly quickly.

So, it is important to keep your ducks in a row. Take your time hiring to be sure that you have hired the best person possible for the position, give immediate and frequent performance feedback and terminate when you see no change in behavior.

In the coming weeks, I’ll discuss unemployment insurance and the best way to terminate an employee with her dignity and your safety in mind.

Will You Choose Your Passion or Your Love?

2013-02-12T02:47:00.000-06:00

You've put it on your calendar. You'll make an extra effort to give attention to Honeybunch for Valentine's Day.

But at the last minute a new hurdle is suddenly blocking your path. Your business is very important to you--it's your passion and it's at a critical growth stage right now. You know that if you could just put in a few more hours you would have everything worked out.

But it's Valentine's Day and you promised you'd be home early to change into something special for your evening out. You know you made the promise, but this latest challenge just can't wait.

How many times have you given that excuse? Honey Bunch loves you so much that he/she will understand, you reason. Your business is Important to you both, you continue your rationalization. You've poured your blood sweat and tears into it for years and both of you benefit from your efforts, enjoying the lifestyle that your business allows you to have.

But Honey Bunch wants your attention today.

So, what are you going to do?

Soft Skills Also Matter

2013-02-05T08:15:00.000-06:00

You may have started your business because you have excellent technical skills. Knowing how to write a great press release or how to install cable lines may be necessary to your business success, but so is knowing which glass of water is yours at a banquet table.

Do potential clients judge you when you take your cell phone from your pocket during luncheon meetings, lay it on the table and watch to see who is calling? Yes and it is even worse if you pick up the phone and start talking, even if it is to say, "I can't talk right now, I'll call you later." It does not make you appear to be important, it gives the appearance that those calls are more important that the conversation you're having live right now.

Some rules of etiquette exist for purely practical reasons. I once had an officemate who used the "conference call" button on her phone all day. After being told by her peers that her practice was disturbing us, she continued. When our supervisor told her not to do it anymore, she explained that she was mult-tasking. She said that she continued doing other work since her hands were free while she talked on the phone. Needless to say, she didn't last with the company very long. Her view of what was right just never quite connected with the company's norm.

As your business' leader, you are being watched. Your behavior sets the expectations for the company. Do you know how you are projecting to people? Three things that must be controlled are:

1. Adding too much value to the company. Do you delegate tasks and then stand over your employee's shoulder, telling them exactly how to do the task? In other words, do you micromanage?
2. Do you obviously have favorite employees? Do you only reward the employees who suck up to you, saying yes to all your ideas--good and bad?
3. Are you afraid to give praise to employees who are doing a good job? One business owner told me that she was afraid that if she praised employees, they would automatically expect a raise.
What soft skills do you know that you need to develop or improve? Have you been putting it off too long. Ignore them long enough and they could destroy your business.

Not All Activity Is Productivity

2013-01-28T05:30:00.000-06:00

Today is Monday which means that last night, I sat down to review my calendar for the week. So many activities. But do they equate to productivity? What do I expect to happen as a result of all these actions?

Many of my clients say that they prefer to "fly by the seat of their pants." When something "feels right" to them, then they just do it. It takes a while for me to convince them that their activities should be in alignment with their strategies. After all, the strategies were developed after much contemplation and discussion. The whole purpose of creating strategies is to get you to your desired goal--your hoped-for-future.

So before you get busy chasing your tail this week, wondering where all the time has gone by Friday, take a moment to figure out what you're supposed to be doing in the first place. Do you remember your goals? Do you remember your plans? How will your activities this week move you farther down that road?

How do you keep your activities in alignment with your goals?

Helping Others While Helping Yourself

2013-01-21T05:30:00.000-06:00

Today is the day that we celebrate the birth of
Dr. Martin Luther King, Jr. And it is the Presidential Inauguration Day. Both leaders called on us to be involved in public service to our communities and service to our nation.

As a small business owner you may feel that you have neither the time nor money. However, becoming involved in community service can be mutually beneficial. Such an arrangement can increase your credibility, image and prestige. But the match has to make sense. It makes sense for Nike to sponsor a marathon. But it does not make sense for a business with a client base outside the community to invest in a neighborhood softball team.

Benefits of cause marketing are found in the book, SpecialEvents: Inside and Out. They include:

Enhancing Image/Shaping Consumer Attitudes

To improve how your company is perceived by its target audience, sponsoring events that appeal to this market is likely to help generate a positive reaction to the company.

Creating positive publicity/heightening visibility

Positive publicity helps create heightened visibility of the company’s services. Various media covering the event may include sponsors’ names and/or photos. In addition, the kind of media coverage a sponsor may get is often unaffordable if the company were to think of purchasing it, and if it were available. Be sure to coordinate with the non-profit’s public relations person to before releasing information about your involvement to the media. Non-profits are usually pressed for time and short on staff. They may gladly accept the help.

Differentiating from competitors

Sponsoring an event, especially an exclusive sponsorship, is a significant way to create competitor differentiation. The company name has the opportunity to stand out head and shoulders above the competition.

Opportunities to meet key stakeholders and solidify business relationships.

Evaluate each opportunity and look for ways it could tie into your overall marketing objectives.

The range of required financial and personal support varies. Think about an organization that you would like to support, decide if it makes sense and ask how you can be of service.

Another Way to Grow Your Business

2013-01-14T11:05:00.004-06:00

There are many ways to expand your business. One way to grow is through acquiring another company. It may do exactly what yours does or if may offer business lines that you would like to enter. You may simply want to add another location. Why not look around for existing businesses that are already doing what you may want to do? It may make more sense to acquire an existing business than to start a new one from scratch.

Of course, to do so will require some outside help, such as lawyers, attorneys, and other intermediaries. That means that you will need to have more cash on hand to make this happen. Just like building a house, these things always require more money than your first estimate. And the more complex the transaction is, the larger those fees will grow.

Then are also some other costs associated with integrating the two businesses. Remember to include the cost for IT and accounting systems.

By expanding in your existing market, you might risk cannibalizing your existing business, so be sure to closely examine the new company’s current clients and the fit of each company in the marketplace. What are the similarities and what are the differences?

Questions

How well do you measure your cash? If you're getting ready to grow, there's going to be a lot of stress on your working capital and your ability to measure your financial health.

Will growth jeopardize your relationship with current customers? Will you be able to continue offering top-notch service?

Is the new company strong or will it drain your current working capital for a while?

Is the company being sold because it is no longer making a profit?

Do you have the ability to turn it around?

Do you have the revenue to sustain both companies until they are both producing a profit?

Ready or Not

2013-01-07T07:49:00.000-06:00

Ready or Not the New Year is here. You may have set concrete goals or made some vague New Year's resolutions. Regardless, if you want to realize your hope-for future by this time next year, you won't get there by accident. You're going to have to be intentional about reaching those goals. Run a reality check before you commit to your resolutions.

Do you have the skills?
Do you have the talent?
Do you have the experience?
Do you have the support?
Do you have the confidence?

If your goals pass the test, keep them in your face so that they serve as your operational guide for the next twelve months. What core directional efforts will move you toward your
hoped-for future. Every choice you make should move you closer to achieving your goal.

What are you doing to achieve your goals this year? Do you have a strategy in place? Do you have an accountability partner?

I Heard the Bells on Christmas Day

2012-12-17T06:42:00.001-06:00

(Henry Wadsworth Longfellow (1807-1882), 1867)

I Heard the Bells on Christmas Day

Their old familiar carols play,

And wild and sweet the words repeat

Of peace on earth, good will to men.

I thought how, as the day had come,

The belfries of all Christendom

Had rolled along the unbroken song

Of peace on earth, good will to men.

And in despair I bowed my head:

"There is no peace on earth," I said,

"For hate is strong and mocks the song

Of peace on earth, good will to men."

Then pealed the bells more loud and deep:

"God is not dead, nor doth he sleep;

The wrong shall fail, the right prevail,

With peace on earth, good will to men."

Till, ringing singing, on its way,

The world revolved from night to day,

A voice, a chime, a chant sublime,

Of peace on earth, good will to men!

All the best to you, your family and organization.

I will post again January 7, 2013.

Mildred & James Walters

Set BHAGs for 2013

2012-12-10T09:42:00.001-06:00

Do you set the same business goals year after year—1) increase revenue by 10% 2) hire more capable team members 3) expand market . . . You set the same boring goals, but you don’t reach them. Why? Because they are boring, they don’t capture the imagination, and you put them away as soon as you write them, if you put them to paper at all.

This year I dare you to set a BHAG. According to Jim Collins, in his classic business book, Good to Great, a BHAG is a Big Hairy Audacious Goal. Set a goal that matters. Set a goal that makes a difference. Set a goal that will be clearly visible when it is achieved.

Your BHAG can’t be random, unrelated to your core business, or something impossible for you to achieve. It has to:

be achievable
be clear.
immediately understandable. Team members should understand what you’re after without a long explanation.

Take some time away from working in your business to set your BHAG for the year head. The best time may be the week in between Christmas and New Year’s Day. This time put your BHAG in writing and post it in a prominent place. Stop at least once a week to see if your activities have gotten you closer to accomplishing your BHAG.

With whom do you set plans for your business?
When do you do your goal setting?
How do you communicate your goals to teammates?

Leave your remarks in "comments" so that others can benefit from your knowledge.

Is Your Employee Handbook a Working Document?

2012-12-03T07:22:00.000-06:00

Do you have an employee handbook? The majority of my clients do. Yet, when an employee asks for extra time off or arrives at the office with a brand new tattoo that’s clearly visible, they are not sure about what to do or they are reluctant to take action.

I refer them back to their employee handbook. The handbook was written to 1) save time 2) provide legal cover 3) create a harmonious workplace.

Save time: If you don’t have to recreate the wheel each time an issue comes up, that saves you time. If your handbook was written with the help of a human resource consultant or an attorney, you were probably given a list of policies that should be addressed. Now, when someone asks you a specific question the answer is probably in your handbook.

Legal cover: There are tons of laws that apply to the relationship between employee and employer. Your employee handbook, even if you have just one employee, should reflect the most important of these laws. Be sure to adhere to your carefully crafted policies regarding harassment and discrimination, wages and hour issues, and safety. Is it clear that you are an equal opportunity employer in every respect? Do you explain what an employee should do to report violations?

A harmonious workplace: Articulate your expectations for employees, encouraging positive behaviors and avoid making threats. Explain that in the unlikely event that an employee fails to meet expectations, the organization will provide coaching, counseling and in some cases, discipline, necessary to assist the employee. Let employees know that you want them to succeed.

Be certain that wording used in your policies say what you may do; not what you will do. Avoid language that locks you into a specific course of action in every case.

Questions
Did you write your employee handbook yourself? Did you use a template? Did you hire an attorney or a human resource consultant to help?

Save Time and Money with Private Label

2012-11-26T05:30:00.000-06:00

I received this email from a busy entrepreneur (is there any other kind?). Briefly, he said, “I have a small business making candles. It is growing on course, but workdays are getting longer. All my problems center in finding and keeping a good operations manager. That position is central to keeping things on track while I am out making sales calls. I have processes in place, but things seem to stop when I am out. I can’t stay inside overseeing my workforce and be out on sales calls. I am overwhelmed!”

My response: Without a good operations leader, I am afraid your production will suffer. We could also spend some time reviewing your processes. But, have you thought about getting out of the manufacturing end all together? Consider private labeling. You see it all the time in the grocery store. A manufacturer will put the store’s label on a product that they make for several stores

Consider the amount you are now spending on personnel and the cost of time in leading your team. Now look at the cost of working with a private labeling company to produce those candles for you. The price per candle for the manufacturer should be much less since the volume would be much greater than yours. Also, you will save because:

You don't have to purchase new equipment or maintain old equipment.
You don't need a production staff.
You could also contract the shipping and distribution to the manufacturer.

Changing to a manufacturer will give you more time to work on your business, instead of in it. This will be a good time to re-think your branding.

Consider product colors, graphics, shapes, and sizes. What message do they send to consumers?
Packaging and promotions should also reflect your image. Changing to a manufacturer may give you the flexibility to start fresh.
And the manufacturer may offer other options, such as: several containers, fragrances, and colors from which to choose.

Question: Think about your business. What are some of the things that you have found that you no longer need to do yourself? What are some of the things you can pass off to others?

You're Not Stupid

2012-11-19T07:30:00.000-06:00

You're not stupid, even if we don't agree. Two Saturdays ago I participated in a role play at a Tennessee Coaches Alliance workshop. My team’s role was to pretend that we really believed in an issue and to try to force our beliefs on another group that was described as more tolerant and open to compromise.

Our chosen topic was spending the holidays with family. When the exercise started, I did not have a strong opinion on the subject. But as I warmed up to the idea of defending the practice and making others believe the same, I noticed two things. I became committed to winning them over to my way of thinking and my body temperature became increasingly warmer.

We only had ten minutes for the activity, but before time was called others in both groups—my less passionate teammates and those had been more tolerant and open to compromise—disliked me. I noticed that they had to remind themselves that I was only carrying out an assignment and that the ideas expressed were not necessarily my personal view. I was the one that they had previously liked.

I also noticed that as we debriefed, my body temperature dropped back to what it had been prior to the role play.

When have your found yourself aggressively supporting an issue that you don’t really care about, but you continued arguing because you don’t like to be wrong?