A Time for Obama

September was the best month in my client’s three year history. They went into October with a large backlog and October has been promising to be a good month. The client sells designer products into specialty retail stores. In my meeting yesterday I learned that, due to the economy, orders are being cancelled, in spite of the fact that stores are beginning to stock up for holiday sales.

The client is a home based business which needs to move into commercial space. We reviewed a three year lease contract for a selected property, and I suggested some changes that should be made to the lease. The realtor is pressuring the client into signing the lease, but I recommended that we delay any action for at least a month to determine what direction the economy might turn.

While still optimistic about the direction of her business, the client said that the direction of the economy will be much more positive if Obama wins the election, and if that happens she would move forward with the lease. I have to agree with her. I think America is in a deep funk, and that electing Obama is going to inject a new sense of energy and optimism in all of us.

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

Daily Planning

In his wonderful book “The Ultimate Sales Machine”, Chet Holmes starts with a chapter called “Time Management Secrets of Billionaires”. How refreshing to start a sales tome on the important art of manging the scarecest resource of all – time. Other experts have suggested making lists of how you spend your time. Of course, this is a look at history. Chet recommends that you look forward planning each day, prioritizing the tasks to be performed during the day, and then not only alloting a specific amount of time for each task, but listing a start and ending time.

Too often I see business owners who operate in total chaos. They move from one crisis to another, and are never on time for anything. Because of the example they set, their employees operate in the same culture of chaos. If businesses that operate in this mode are profitable, it is purely by chance. Poductivity can be significantly improved by following the six steps of time management outlined by Chet:

1. Touch it once – take action on each e-mail or letter when you first read it and dispose of it. If you have a meeting, make sure it results in meaningful action.

2. Make lists. People who don’t keep lists are reactive – those who do are organized.

3. Plan how much time you will spend on each task.

4. Plan the day. Be specific and have a time slot for everything.

5. Prioritize. Focus on difficult projects first. Many people drown in buwywork that produces few results. Tip for sales people and one-person businesses: devote 2.5 hours per day in new business development activities.

6. “Will it hurt me to throw this away?”. 80% of all filed or stored information in never referred to again. So why save it?

Time management requires learning new habits – but is a process that can yield great rewards to a business owner.

Will Limkemann
Limkemann Business Advisors
440-871-0976

Voice Mail

How do people perceive us by the message and tone on our voice mail? Is our voice mail consistent with the professional image or “brand” we are trying to portray?

A typical message like “This is Bob Jones. I’m sorry I could not take your call. Please leave a brief message and I will get back to you as soon as possible.” prompts a response. But does not instill in a stranger or a prospect any sense about who you are or build any anticipation about hearing back from you.

A voice mail message like “This is John Adams of Adams Photography where we make everyone look great. I really would like to talk with you, so leave a message and I will return your call before the end of day” conveys who you are and leaves the caller with a sense of excitement. The caller also knows that the call will be returned in a timely manner. (Of course, John needs to make sure he calls back by the end of day).

You may want to have several voice mail messages scripted, each of which will tell something different about you but will project the image that you want. Have associates and friends critique, so that once the message is on your voice mail you will be assured of always “being in brand”.

People – a Company’s Greatest Asset

My friend Roxanne Kaufman included me on a recipient list for a wonderful article she authored on the high value of people to any organization. She has kindly allowed me to use the article in today’s post. Roxanne is, among other things, a success coach. Her company is Prolaureate. For more information see www.prolaureate.com. Thank you Roxanne.’

Henry Ford said “You can take my factories, burn my buildings, but give me my people and I will build the business right back again.”

Henry Ford’s belief in the vital importance of people in the orvall success or an organization is more significant today than ever before.

These are turbulent and challenging times – and a perfect opportunity to re-establish and re-define your corporation’s wealth base, not just in your financial and physical assets, but in your only source for long-term stability and competitiveness.. your people.

Successful leaders know…

People are a company’s greatest asset.

People create a company’s greatest competitive advantage.

People bring economic value to every company.

The knowledge, resourcefulness, and creativity of the people within an organization translate directly into earnings and profitability. The investment of a corporation needs to be as much in people as in its financial portfolio, bricks, and mortar.

Now is the time to step forward and focus on developing your most important asset and your greatest source of ROI; and sharpen your competitive edge.

Are you investing in, communicating with, developing, and growing your people and your leadership for sustainable success?

Are you building upon and strengthening the foundation and strategy of your business for ongoing competitiveness?

Are you aligning the strengths of your people to your vision, core values, and principles to create a solid, collaborative, and results-oriented culture?

Henry got it. So should you.

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

Part Time Specialists

Many small businesses need specialty help – possibly in marketing, accounting, information technology, or other areas. Business owners, particularly in this economy, may be unwilling or unable to add additional full-time staff.

For some businesses it makes sense to hire one or more part time or contract workers. Part time employees might also be easier to recruit than full time staff, and you will pay fewer benefits, and pay for only the hours that you need them. There are plenty of folks who have either been laid off, or who have temporarily left the full time work force for child rearing, or who have retired and have time on their hands.

If you can deal with part time help, have flexibility in the hours they work, and might even be willing for them to work from home, you may attract some very talented people. Networking or an ad in your local weekly newspaper may garner you just the right help you seek.

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

Utility Savings

I recently met with Linda Winick, of Cost Control Consultants, who claims that about 80% of utility and communications bills have errors. Her company makes its money through savings garnered by their scrutinizing such bills.

Some common errors: wrong rates applied, double billing for the same service, unbundled services that should be bundled, unused e-mail boxes, and so forth.

Other, non-utility, billing that is often fraught with errors is for freight. Freight is a major expense for many businesses, and the tarrifs are often complex. There are firms that can offer savings through a) verifying that freight bills are correct, b) helping companies route freight at the lowest costs.

When every dollar counts, it is prudent for companies to bring in outside consultants to assure that bills are accurate and fair.

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

Aligning Personnel

One of the key success factors, especially during this time of financial turmoil, is getting the most value from the wages you are paying your staff. Are employees effectively aligned to the work they are doing, or would they be better used in other positions? Too often, employees are not productive because they are in the wrong jobs.

Let me be clear – I am not referring to the employees who are trouble makers or who do not fit into the organization. These employees should be terminated. Keeping them on erodes the morale of the employees who do care about their jobs and the organization. Keeping them on the payroll is a waste of money. There should be a financial benefit to the company for every employee on the payroll.

No, I am referring to employees who are good people but whose productivity is low due to lack of training or native ability to do the job they are in.

First, there should be a job description for every job that is, or needs to be, performed within the company. For each job description there should also be a list of qualifications and personal traits to perform the job.

Second, each employee should be evaluated against the job description and qualifications for the job they are currently assigned. Is there good alignment? If not, is there another job description for which they would be better qualified?

If there are interpersonal issues, it might be prudent to have personality profile tests, such as Myers Briggs, administered to all employees. The administrator will follow-up by explaining the personality types and help employees understand how to relate with other personality types.

It may be beneficial to have tests that relate to specific job performance to be independently administered to indicate the type of work each employee is best suited to.

Sometimes an employee will have the interest and aptitude for a job, but lacks the training. If specific training is needed, find a way of helping the employee get educated.

Whatever process is used, there should be excellent communication with the employees, explaining that steps are being taken to improve everyone’s productivity thus ensuring company and job survival with better likelyhood for future raises.

Assignment of personnel into the right jobs can do wonders for productivity and morale, not to mention the profitability of the company.

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

Budgeting

Few businesses I have consulted with have either budgets or cash flow forecasts. Without a budget, businesses operate from day to day, week to week, and month to month without a plan. The owner figures that if there is sufficient cash coming in to pay the bills, or if there is a line of credit to be tapped, things are good.

But are they? Often owners do not really know how much dept they have accumulated against either a line of credit or credit cards. They get behind in payments to their suppliers. These patterns will only worsen in a tightening economy.

The smart business owner creates an annual budget and keeps a running cash flow forecast to ascertain both profitability and cash requirements. Operating from a plan, the owner is much better equipped to put into play needed marketing and sales initiatives to assure that sufficient cash will be coming in. Operating from a plan, the owner is much better equipped to determine when to hire a new employee (or when a layoff might be needed) and when the time will be right for acquisition of new equipment.

Most importantly, a budget and other planning tools will help the business owner understand how he or she can expand the business in tight economic times. History has shown that businesses that smartly expand during a down economy have a much greater chance for survival and success.

Will Limkemann

Finding Cash

The single issue that many small businesses have in common is cash flow. Somehow cash inflow just never seems to match cash needs – even when the company is showing a profit. Because the issue is so pervasive and of such concern to business owners, it often amazes me when I see cash lying around.

OK, it is not the cash that is scattered throughout the warehouse, but stuff that can and should be converted into cash.

Last week during a meeting with a client, I took a stroll around his plant while he was on a phone call. I came across a large lathe that, judging from the dust and the fact that it was not connected to power, was not being used and had not been used in some time. I suggested to the owner that he consider selling the lathe. He admitted that it is no longer needed and that he could get several thousand dollars for it. Hmmm. Several thousand dollars could make a dent in substantial debt that he is carrying.

During a tour through the warehouse of another client, I was shown a substantial amount of outdated inventory. Not only was there “cash” on the shelves, but the inventory was taking up badly needed space. A brief conversation revealed that the material could readily be sold in a warehouse sale, and might net up to $10,000 – money that could be used for funding the inventory for a new line.

With prospects that current economic conditions will result in even worse cash flow, business owners need to look critically at every piece of equipment and excess or outdated inventory. If it is not needed and can be converted to cash, then it should be sold.

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

Stress

The current economic uncertainties combined with a very prolonged presidential campaign is proving stressful for almost all Americans – perhaps for many people throughout the world. I think that business owners are feeling the stress even more than most folks.

Yesterday a client expressed concern over her business line of credit with a major bank. She has had the line for some time. It is almost maxed out, but she is making regular and timely payments to the bank. She asked me if I thought the bank might call the loan. I gave her as much assurance as I could, but had to tell her that banks today are doing “strange things”. To add to her concerns, she produces a line of high end luxury merchandise. The question in her mind is whether the market for non-essentials will just dry up until the economy recovers. I tentatively suggested that there are still plenty of folks with disposable income – that it would be an ever increasing challenge to find and market to those people.

The good news for many business owners is that their fortunes are not tied to the stock market, but to the investments that they have made in their own companies. So, if they keep doing the right things, they may fare better than people who have invested heavily in stocks.

We are in for some interesting times.

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