The Constant Entrepreneur: Advice For Running a Productive Business

Computers: A love/hate relationship

If you follow my blogs you will notice that I try to do a daily posting, but there were no postings for last Thursday or Friday.

Wednesday morning my laptop computer decided that it was moving from a full time to part time status, simply powering off at will. I would be typing away and all of a sudden the computer would just shut down! How frustrating – no, beyond frustrating.

I rushed out to Office Max and found a computer to my liking on sale, brought it back to the office, and have spent the last four days installing software, configuring printers, getting the e-mail to work, and copying files.

The good news is that my significant data was backed up (as of a week ago), and that my old computer will stay up long enough to copy files that I might need.

The really bad news is that my old computer ran Windows XP, and my new computer is running VISTA.

The horror stories I have heard about upgrading to VISTA are all true.

I have not yet been able to get the Outlook 2007 to successfully access the data from my Outlook 2003 database.

While some of the software I ran under VISTA works fine, other software will not install properly or will simply not run properly (or at all). The biggest offender seems to be any software from Intuit (QuickBooks, and QuickBooks customer manager). I also have two printers that I am fighting with to get printing through a wireless print server from Belkin.

The lessons learned are:

1. Make sure that files are backed up frequently – one never knows when the grim reaper of computers will strike.

2. Getting a new computer operational will take much longer than it should reasonably take.

3. When upgrading from XP to VISTA, budget for the unexpected software upgrades.

One day the computer industry may be mature enough to make getting a new computer up and running a fast and painless proposition. Such is not the case today.

Will Limkemann
Limkemann Business Advisors
440-871-0976
www.neobizadvisor.com
will@limkemann.net

The Constant Entrepreneur: Advice for Running a Productive Business

Seeking Advice Too Late

For several months I have been helping the owner of a deeply distressed company try to save the business. When I got involved, the business was losing money every month, owed the bank a large amount of money and was seriously delinquent in its loan payments, and had severe operational and quality problems.

This morning I learned that the inevitable had happened – the bank has seized all of the company’s assets and has forced the business to close. There are no winners as the bank will recover just a fraction of what is owed; the owner and his family who invested in the company have lost their entire investment; and many vendors (including me) have been stuck with large amounts owed them.

The sad thing is this. We could have helped save the company – but the owner waited until he was in serious trouble before seeking outside help. About 8 months before we were retained, the company lost a large customer and started losing money. But the business kept operating as it had been hoping that it would turn itself around. Each month things got worse. Had the owner sought help at the outset, we could have helped him take steps needed to get the company profitable.

This owner, like so many business owners, waited until it was too late before getting help. It’s like not going to the doctor when a lump first appears, but instead waiting until you are too weak to move.

No owner knows it all or has all the answers. The moral of this story is that help should be sought when the first symptoms appear, not when foreclosure is inevitable.

Will Limkemann
Limkemann Business Advisors
440-871-0976
www.neobizadvisor.com

The Constant Entrepreneur: Advice for Running a Productive Business

The Entrepreneurial Challenge.  The successful corporate CEO is usually a visionary with strong communication skills to rally the employees, investors, and customers to the corporate cause. The CEO does not need to be an expert in every aspect of the business, as she or he is surrounded by a board of directors and a staff with expertice in every discipline needed to effectively run the business.

On the other hand, the small business owner expects to be an expert in every discipline, be able to do anything , and make every decision. It is no wonder so many business owners get worn out, and so many businesses fail. The personal expectations are inhuman!

But it doesn’t need to be that way. While the small business owner will never have (or need) the level of experts as might be available to the large corporate CEO, the smart owner can tap into vast resources when they are needed. Resources may include: advisors, consultants, and staff.

Every business owner has access to advisory services – some of which are at no cost. Yet most do not take advantage of having meaningful conversations with their bankers or insurance agents, and many are reluctant to talk with their attorneys or accountants for fear of high bills. Fewer still engage trusted business generalist advisors who can provide guidance, help, and support in all areas of the business.

Often overlooked is a board of advisors. A priority of any business owner should be to establish a board  which meets regularly, provides input, and whose input is acted on by the owner. A board may include a trusted business advisor, banker, accountant, lawyer, insurance executive, and a non-competitor expert in the same industry as the business. It is important for the board to consist of people from multiple disciplines, all of whom are admired by and trusted by the business owner. For a very small business, a quarterly board meeting might be held as a luncheon or breakfast with no cost beyond that of the food. As the business grows it is not uncommon to provide a stipend for each meeting attended.

A consultant is a paid specialist in a particular discipline. Consultants can be valuable if chosen carefully. If the owner needs help in marketing, there are marketing experts who can help develop a marketing strategy, plan a marketing campaign, and develop printed material or web sites. There are similar experts for virtually any aspect of any business. Getting expert help is not inexpensive, but the cost is less than hiring similar full-time staffers. As with every relationship a business owner has, consultants need to be carefully interviewed and hired deliberately.

Employees are key to any business. A well-chosen and trusted staff enables the owner to not only tap into the wisdom and expertise of employees, but makes it easier for the owner to delegate. When hiring, a small business owner needs to view every single position strategically, and assure that the person hired brings strategic strenghts to the company. In particular, every new hire should bring to the company expertise that complements the strengths and capabilities of the owner and other existing employees.

Having available the right mix of advisors, consultants, and staff will enable the business owner to be more strategic in his/her thinking, and ultimately will maximize the ability of the company to grow and prosper.

Will Limkemann
Limkemann Business Advisors
440-871-0976
www.neobizadvisor.com
will@limkemann.net

The Constant Entrepreneur: Advice for Running a Productive Business

Small Business Challenges.  An Associated Press article by Ramit Plushnick-Masti was featured in the business section of the Cleveland Plain Dealer yesterday (Sunday July 6), with the headline “Small businesses pinched and barely hanging on”. The author says that “Things are so bad that many small enterprises, which account for about 99 percent of the country’s businesses, say they are hanging by a thread that may soon snap.”

The article blames rising costs brought on by high oil prices, shrinking profits, and the negative impact of big box stores on small businesses.

It is a reality that most small business fail. But, in spite of hard times, many businesses thrive and some become wildly successful. It takes paying passionate attention to all of the details of the business, providing what customers want at a price they will pay, and controlling costs. Most small successful business owners also understand that they don’t know it all and can’t do it all, so they find trusted advisors that can keep them from making serious mistakes.

Will Limkemann
Limkemann Business Advisors
440-871-0976
www.neobizadvisor.com
will@limkemann.net

The Constant Entrepreneur: Advice for Running a Productive Business

A Tale of Two Stores. My wife and I frequently shop at our local Target store. We sometimes shop at Michaels, a craft store. Both stores appear to be customer friendly in their layout. We usually and easily find the merchandise we want.

The stores are clearly differentiated by their check out process.

Target has many check out lanes with clear identification as to which ones are open. They are well staffed for the amount of store traffic no matter what time of day or season. Clerks are efficient. Hardly do we ever spend more than a couple of minutes waiting in line. What a pleasant experience.

Yesterday my wife an I went to Michaels to buy crafts for our grand children. We quickly found what we wanted and proceded to check out. As we approached the cash register, I commented to my wife that I now remember why I do not like to shop in this store.

There was one clerk on duty – her name tag identified her as the supervisor. She spent about three minutes resolving a customer return dispute. The next customer had a cart full of merchandise. Many items were identical. Rather than scanning one item, counting the items and entering the count, each item was individually and laboriously scanned. By the time the cart was half empty, the gentleman ahead of us in line set his merchandise on a display and left the store in a huff!

I wondered how many sales they lose in a day due to slow check out procedures.

My wife and I perservered and finally, after waiting in line more than five minutes, paid for our two items.

This would not annoy me so, except that this has been my experience every time I have shopped in the store. I can imagine that many people simply skip shopping there altogether after experiencing the check outs.

The primary point of customer contact in any retail store is at the cash register. If the cashier is not pleasant or the checkout process is slow, management needs to quickly address staffing, recruitment, training, and procedural issues.

In retail, as in any business, management needs to frequently and objectively review all areas of customer contact to assure an excellent customer experience.

Will Limkemann
Limkemann Business Advisors
440-871-0976
www.neobizadvisor.com
Will@limkemann.net

The Constant Entrepreneur: Advice for Running a Productive Business

Collecting Money. As money gets tight, it is increasingly hard for the small business to collect payments on time. It seems no matter what payment terms are set, the check always seems to be written later. This is especially tough when selling to large companies that demand 45, 60, or even 90 day terms!

Here is a collection tip that I have used in the past. It really works!

Befriend the accounts payable (A/P) clerk who handles your account. Get on a first name basis with her (usually, but not always a ‘her’). On the day before an invoice due date, call the A/P clerk and, in a friendly tone, ask if the check will be going out tomorrow per the invoice terms.

The response will be one of the following:

1. Yes – the check will go out tomorrow
2. The check as been delayed until … due to ….
3. I have the invoice but it has not been approved for payment
4. I do not have the invoice

If the answer is number 3, the clerk will usually advocate for you and see that the necessary approvals are received. She has also provided you information you can use to follow up with your purchasing contacts.

If the answer is number 4, immediately fax a copy of the invoice to her and she should be able to flow it through the company’s systems.

This tip will usually assure that payment is made on time – and if it is not, at least you will know why.

Will Limkemann
Limkemann Business Advisors
440-871-0976
www.neobizadvisor.com
will@limkemann.net

Business Success

Thousands of businesses are started each year – most of them do not last even five years.

Why is it that some businesses succeed – even thrive – while others fail?

I have a friend who started a business about fifteen years ago and has built it into a very successful enterprise with over $100 million in sales per year. Did she attain this level of success because she has an MBA (she does not), or because she spends her whole life at the office (she spends a lot of time with grand children)?

No, her success is the result of paying attention to several principles that she intuitively applied. She started out, and continues to this day, with a clear vision for the business which she shares with employees, vendors, and customers. She has a written business plan which she updates annually to ensure that she meets the needs of a changing market. She clearly sees the future and is achieving it through clear and attainable goals.

But they say the devil is in the details. She is almost obsesive about details. She carefully measures how she spends her time and financial resources. She is constantly examining customer buying habits, competition, costs, and market trends. She is fanatical about employee selection and training, and customer satisfaction.

She hires good people, gives them clear direction, and holds them accountable. She even allows them to fail!

I truly admire this woman and the success she has created. She is truly a model for anyone starting or running a business.

Anyone can start a business. Those who are obsessive about all aspects of the business are destined to succeed.

Will Limkemann
Limkemann Business Advisors
440-871-0976
www.neobizadvisor.com