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Asking Questions – Key to Business Success

2012-01-21T14:24:00.000-08:00

“We never stop investigating. We are never satisfied that we know enough to get by. Every question we answer leads on to another question. This has become the greatest survival trick of our species.” - Desmond Morris (b. 1928), British anthropologist.

Ask and you shall receive says the Bible. Ask, and every human being has been conditioned to do what they are asked to do, say the psychologists. Ask, and according to the law of averages, you'll get enough "yes’s" to guarantee your success, say the sales managers.

Ask people any sensible, relevant question, for their opinion, advice, for a favor or anything that will enable you to meet them; then make sure they know who you are, and maintain your contact so they remember you. Ask "How can we do this better?" Ask "How can we do more?" Ask "How can we serve our clients better?" If you don't have answers to these questions, find someone who does and ask them.

Asking is the quickest, easiest and surest ways to get people to do what you want them to do.
Why does this work? Why do people tend to do what you ask them to do? Why is it that people who have no interest in you use their time and energy to furnish you with information just because you asked them for it? Because people are conditioned from childhood to respond to polite questions. If you ask intelligent questions with impact, almost everyone will answer you.

The other significant reason to ask good questions is to help the person you are asking. Asking well-crafted, intelligent questions causes people to think profoundly. When someone thinks more deeply than before, new ideas, new answers and new possibilities emerge.

Asking appropriate questions of people is like holding up a mirror to theiractions and decisions so they can see for themselves whether it is the right thing to do.

How to Beat Business Burnout

2012-01-19T03:24:00.000-08:00

Earlier this week we talked about reducing stress in your business. Easier said than done, you may say. Well, the reality is stress, strain, and the all consuming energy placed in to your business can lead to burn out. When your life's work is tied up in your business though, it pays to work through it.. So how do you avoid it?
Burnout -- and the boredom that results -- constitutes the No. 1 reason small business owners pack it in and either sell out or shut down.
According to market research published in Family Business, burnout is the primary motivator in 50 percent of all business divestitures.

It makes sense. Successful business owners don't just commit themselves to their companies...they become consumed by the quest. Many put in long hours. They neglect their health, families and outside activities; then end up physically ill, emotionally depressed, even divorced.

Ironically, a major cause of burnout is success, achieving a single goal long sought. That's why many owners get restless, discontented, bored.

Fortunately, it doesn't have to be that way. To beat burnout:

1. Separate work and play...and be sure to take time to play. Make it a household rule not to discuss business after 7:00 P.M. Or make the kitchen or family room and, most definitely, the bedroom a "No Business" zone.

2. Get adequate sleep...no less than six hours a night. Long-term sleep deprivation can distort thinking and reduce productivity. But adequate sleep can enhance stamina and clear-headedness.

3. Devote time to mental regeneration every day. Some business owners meditate, others read the Bible or review inspirational books.

4. Exercise daily, even if its only half an hour of walking while working out a business problem.

5. Have a mission...a sense of purpose. This goes beyond mere objectives. A mission describes (1) what you want to achieve and (2) why you want to achieve it.

6. Believe in what you're doing. There's nothing more exciting or challenging than being a business owner. What you do benefits your customers, your employees and, most of all, your family. Don't lose sight of that.

7. Be organized. Maintain clear objectives and activity plans for the year, quarter, month, week and day.

8. Work smarter...not just harder. An hour of planning can save ten times that in increased productivity. Follow the carpenters rule: Measure twice, cut once.

9. Don't settle into success. Repetition of a successful process or activity can lead to mind-numbing boredom. Take at least one calculated risk each year.

10. Maintain your priorities. Business is important...but not at the expense of health and happiness. Also, remember that it is relationships that give true meaning to what you do.

More great New Year tips to reenergize your business (and yourself), check out the OED Community!

Managing Stress Begins with Knowing Its Source

2012-01-17T03:30:00.000-08:00

Did you vow to tackle stress this year? Stress has long been known as a common curse of the entrepreneur. While there is no easy prescription for this problem, a helpful remedy is for entrepreneurs to get together and share their problems and frustrations.

When entrepreneurs get together, here are some of the factors they identify that increase stress.

When the initial vision of success gives way to disappointing sales. As one example, a business venture began based upon a single product that the owner really believed in -- a product that often drew praise when demonstrated ... but wouldn't sell. The owner heard over and over from prospective customers that the product was "a clever idea but I can't use it in my business." Stress was the by-product as this entrepreneur had to tear himself away from this single product, look at the facts, and begin again -- this time producing for the market, not for himself. A new product was the solution.

Partnership conflicts and coordination. When you start a business, friendships as well as investments are on the line. The backgrounds and talents of partners can make a difference. For instance, one partnership's co-entrepreneurs had very similar backgrounds, making the division of labor problematic.

Abandonment of reliable careers. The pressure to succeed is multiplied when new entrepreneurs find themselves taking a severe cut in their personal incomes in order to pursue their own business.

Overcoming bureaucratic barriers to small business marketing efforts. The difficulty a small company often has in dealing with layers of big-business bureaucracies can cause a great deal of strain. Reaching the CEO of a larger corporation may require a level of aggressiveness unnatural and, therefore, stressful to a small business owner. This frustration had been so great for one owner that he decided to direct his marketing efforts exclusively at other small companies.

Being too dependent on one company. Another business mentioned that his company had to swallow a very large loss on a major project when the single large firm his company had depended upon for its market suddenly ended the relationship.

Check out more great tips for success AND fulfillment in your business in the OED Community!

The Family Retreat

2012-01-16T13:39:00.000-08:00

Trying to plan a business strategy during normal office hours is almost impossible. Plan a family business retreat to discuss the goals of the individual family members and the goals of the business.

The first retreat should focus on reviewing the firm's history, defining family and business values and missions, creating a statement about the future of the business and reviewing areas that need more attention.

The purpose of the retreat is to provide a forum for introspection, problem solving and policy making. For some participants this will be their first opportunity to talk about their concerns in a non-confrontational atmosphere. It is also a time to celebrate the family and enhance its inner strength.

A retreat usually lasts two days and is held far enough away so you won't be disturbed or tempted to go to the office. Every member of the family, including in-laws, should be invited. Begin plans for your retreat about six weeks in advance. Note: If you have a trusted business advisor have them work with you on your agenda and planning

Once you have picked a time and place, establish a tentative agenda. Your actual agenda will be tailored to meet the unique needs of your family and business. Usually families will identify some of the following issues for discussion at their first retreat:
A family creed or mission statement.
Management succession.
Estate planning.
Strategic business planning.
The reward system.
Performance evaluation.
Communication within the family.
Preparing adult children to enter the business.
Transition timing.
Exit and entry policies.

You may consider using a retreat facilitator, a professional experienced in helping family-owned businesses. The facilitator helps identify issues for discussion before the retreat and keeps the atmosphere non-confrontational during the retreat. The facilitator does not solve the family's problems but guides the family in doing so.

The retreat is the beginning of a process. When a consensus is reached by the participants, policies should be set, courses of action planned and responsibility for implementation assigned. When agreement cannot be reached, further discussions should be planned, possibly with the continued assistance of the facilitator.

One important outcome of the retreat should be plans for periodic family meetings and retreats in the future, so the dialogue will continue. Open communications will enable the family to come to grips with problems and issues while they are fairly easy to solve. Once family members have reached a consensus on the continuity of the firm and their roles in it, you can begin planning for succession.

Are you working hard or smart?

2012-01-13T13:33:00.000-08:00

Average business people feel comfortable working about 2500 hours per year (50 hours per week for 50 weeks, everyone needs two weeks vacation!). This number represents the total number of hours worked including all tasks. Yet, in a small business, most have difficulty “selling” 5 hours a day out of the 10 hours at work. The reason is a seemingly endless supply of non-”selling” distractions with which business people in large companies don't have to deal. Among these are:

Relentless customer calls (no associate to insulate the businessperson)
Clerical duties handled directly by the businessperson (insufficient clerical help)
Preparing bills (no accounts receivable clerk)
Screening potential customers (insufficient clerical help)
Accounting (no accounting department)
Paying bills (no accounts payable clerk)
Landlord/tenant issues (no managing partner)
Computer and office equipment maintenance (no office manager)

And you can take it from here!

By the end of the day, you know you have been working hard, but you have no idea why you only worked on revenue generating items for three hours out of the ten you were there. This is a common problem faced by businesspeople in small businesses who are working hard but not smart.

Setting Priorities – Key Skill

With so many tasks, the natural thing to do is to try to handle them in the order in which they come. Then, as tasks begin to back up, most people do the tasks they find least aversive first, and keep working in least aversive priority until an urgent (but not necessarily important) distraction presents itself.

This "squeaky wheel gets the grease" method begins to produce crises since the matters that demand the most attention are not necessarily the most important things the businessperson has to do. The longer important matters are crowded out by urgent distractions, the more likely there is to be a crisis. After a while, so many important matters get neglected that the businessperson is forced to shift into "fire-fighter" mode. Customer inquiries about their work are added to the distractions that keep the businessperson from getting the work done. Before long, staccato interruptions riddle his/her office like machine gun fire and the businessperson doesn't know whether to stand and fight or run screaming from the room. Sound familiar?

The key to getting control of your day is to set clear priorities:

Make a list of common activities in which you engage daily (including all the non revenue distractions) and prioritize that list according to importance (revenue generators and marketing your business will be at the top of this list).

This is not a specific "to-do" list, but rather a general list of daily tasks.

Going Into Business

2012-01-12T05:27:00.000-08:00

You are thinking of going into business. This can have advantages and disadvantages.
As one frustrated entrepreneur (who had still kept their sense of humor in tact) was heard to quip – “The only thing more over-rated the natural childbirth is owning your own business.”

Running a business of your own will bring a sense of independence, and a sense of accomplishment. You will be the boss, and you can't be fired, though there may be days when you would welcome it. You will experience a pride in ownership - such as you experience if you own your own home. You can derive great satisfaction from offering a product or service that is valued in the market place. By being boss you can adopt new ideas quickly. Since your endeavor undoubtedly will be a small business - at least in the beginning - you will have no large, unwieldy organization to re-direct if a change is needed. This opportunity for flexibility is one of small businesses greatest assets.

These are some of the advantages and pleasures of operating your own business. Now take a look at the other side. As one small business owner attending a conference put it: "When I came here, my business lost the services of its chief executive, sales manager, controller, advertising department, personnel director, head bookkeeper, and janitor."

If you have employees, you must meet a payroll week after week. You must always have money to pay creditors - the man who sells you goods or materials, the dealer who furnishes fixtures and equipment, the landlord if you rent, the mortgage holder if you are buying your place of business, the publisher running your advertisements, the tax collector, and many others. All of these must be paid before you can pay yourself.

You must accept sole responsibility for all final decisions. A wrong judgment on your part can result in losses not only to yourself but, possibly, to your employees, creditors, and customers as well. Moreover, you must withstand, alone, adverse situations caused by circumstances frequently beyond your control, To overcome these business setbacks and keep your business profitable means long hours of hard work. It could very well not be the work you want to do. As someone else's employee you developed a skill. Now, starting a business of your own, you may expect to use that skill 40 or more hours a week. Instead, you must perform the management tasks as well. You must keep the books, analyze accounting records, sit back and do long range planning, jump and handle the expediting and, when everyone has gone home and you finally have caught up with the paper work, you may even have to sweep the floor.

As your business grows and you become more successful, you may not do some of these activities. As an owner-manager, however, you must - at least at first - give up the technical aspects you know and enjoy doing, and focus on the management aspects. To get your business off to a successful start, you must be a manager not an operator. As one small business owner attending a conference put it: "When I came here, my business lost the services of its chief executive, sales manager, controller, advertising department, personnel director, head bookkeeper, and janitor."

You will never be entirely your own boss.

No matter what you choose - manufacturing, wholesaling, retailing or service business - you must always satisfy your customers. If you don't give the customers what they want, they'll go somewhere else and you'll be out of business. So every customer, or even potential customer, is your boss. Your creditors will also dictate to you, and your competitors' actions may force you to make decisions you don't want to make. National and local government agencies will insist that you meet certain standards and follow certain regulations. The one thing you can decide yourself is how you will satisfy all of these bosses.

All these things considered more and more people are starting their own businesses everyday – many of these businesses will be the Microsoft’s of tomorrow!

Why do people start a small business?

2012-01-10T05:24:00.000-08:00

“A journey of a thousand miles must begin with a single step.” – Chinese proverb

Most times, for one of the following four reasons:

Independence
They are tired of working for someone else.

Challenge
Small business ownership requires a great deal of responsibility. Some people thrive on that.

Prestige
Small business ownership offers community recognition. First as a successful
business operator, and later as a contributor to the economic and social welfare
of the entire community.

No Restrictions
There are no restrictions and few prerequisites for small business ownership.

Race is not a factor in small business. Neither is gender. As a matter of fact, women are starting small businesses at 6 times the rate of men.

Leadership

2012-01-09T07:45:00.000-08:00

Leadership is the ability of a person to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members and/or to achieve certain goals.

Leadership is the ability of an individual to set an example for others and lead from the front. It is an attitude that influences the environment around us.

Leadership does not involve changing the mindset of a group, but the cultivation of an environment that brings out the best (inspires) the individuals in that group.

The Major Traits of Leadership
- Unwavering Courage
- Self Control
- Optimism - very few pessimists become leaders
- A Keen Sense of Justice
- Definiteness of Decision
- Definiteness of Plans and Purpose
- The Habit of Doing More Than Expected
- A Pleasing Personality
- Sympathy and Understanding
- Mastery of Detail
- Willingness to Assume Full Responsibility
- Cooperation

ONE IN 14 U.S. HOMES INCUBATING AN ENTREPRENEUR

2012-01-07T14:15:00.000-08:00

In close to 7 million U.S. households, someone is trying to launch a new business. That means approximately 7.2% of Americans are hoping to get into business for themselves.

According to the Entrepreneurial Research Consortium that trend dovetails with another: more MBA's as well as college graduates are starting business ventures after graduating from school.

You Will Never Reach Financial Independence Working For Someone Else

2012-01-05T14:10:00.000-08:00

“It is more admirable to be in business for yourself then to work for someone else.” – HL Mencken – American editor

It is a fact of life that it is becoming increasingly difficult for families to make ends meet. Most Americans are working harder, even taking on two jobs, and have less to show for it then previous generations. Americans are living in debt and almost every household has two adults working outside the home.

Surveys have shown that the average person will work 900,000 hours in their lives (1,800,000 hours in a two-job household) and when they retire will live on an income only 1/3 of what they were earning prior to retirement. In reality, many people may work all their lives and never be able to retire.

Adding insult to injury, during their working careers most people must endure having their boss control their income, their daily schedule and even when they can take vacation. They will also risk layoffs, downsizing and termination… regardless of performance.

How can (and do) people break this scenario? By owning their own businesses… and thousands of people are entering the world of entrepreneurship every day.

People who never thought they had an option are learning that they can own their own businesses (and their futures) and working part-time or full-time can earn substantial secondary or primary income to their families as well as realizing the meaningful tax benefits that accompany business ownership.

Profile of a Successful Entrepreneur

2011-12-28T11:09:00.000-08:00

“An businessman is a hybrid of a dancer and a calculator.” – Paul Valery – French philosopher

What follows are the five MAIN traits found in successful entrepreneurs.

They are Problem Solvers: Entrepreneurs have an uncanny ability to find solutions for difficult problems.

They are Calculated Risk Takers: A successful entrepreneur is a good judge of acceptable risk levels. They always research a topic before trying to make decisions and leave no stone unturned. They tend to be an adventurous group but always minimize their risk with alternate plans should something unexpected arise.

They are Innovators: During their lifetime most entrepreneurs will start several businesses. This is due to the fact that they always have great new business ideas flowing through their head. An entrepreneur will start a company and then move on to the next big project. It is rare for an entrepreneur to stick around and actually "run" a company past the start up phase. The idea of running an established company does not appeal to them so they are likely to sell the business or hire someone to run the daily operations for them.

They Delegate Tasks: One of the keys to becoming an excellent entrepreneur is their ability to delegate tasks to others. They delegate tasks they are not good at to others and run the parts of the business that they excel in.

Handle Rejection Well: Dealing with rejection is part of being an entrepreneur.

What is an ENTREPRENEUR?

2011-12-26T09:26:00.000-08:00

“Much of our American progress has been the product of the individual who had an idea; pursued it; fashioned it; tenaciously clung to it against all odds; and then produced it, sold it, and profited from it.” Hubert H. Humphrey (1911–78), U.S. Democratic politician, vice president.

“We are told that talent creates its own opportunities. But it sometimes seems that intense passion creates not only its own opportunities, but its own talents.” Eric Hoffer (1902–83), U.S. philosopher.

An entrepreneur is a person with a passion… A passion for their idea (and their dreams for that idea) that drives them to risk their finances and invest every waking hour in pursuit of these passions.

Their goal is never JUST money. Their goal is to build something. To create something. Sounds like an artist doesn’t it? Well I think entrepreneurs ARE artists… and so did Andy Warhol when he said, “Being good in business is the most fascinating kind of art. . . . Making money is art and working is art and good business is the best art.”

Entrepreneurs are the backbone of any society, they are the Edison’s, the Franklin’s, the Ford’s, and the Gate’s of this world. They are people who leave their world better for their passion and, while they take success and thrive on it, they give back to their communities, their associates, and their families more than can be expressed within the context of a dollar sign.

To be called an ENTREPRENEUR is truly the greatest compliment that can be given to a business person.

Things Change - Business Plans Must be Up-Dated

2011-12-23T03:21:00.000-08:00

It's important to remember a fundamental fact about business plans: business plans become outdated very rapidly and, if not updated, lose whatever value they may have to a company.
In other words, business planning is an ongoing process and the written plan must be regularly revised if it is going to have continuing value. It is essential to review the plan on at least a quarterly basis and measure results against the plan.

The reality of today's world is that the pace of change is accelerating. What that means is that executives must be constantly making adjustments to their plans. As the pace of change speeds up, it is easy to lose sight of the business plan and simply make the necessary adjustments to the plan on a day-to-day basis.

One way to accomplish this task without being under the pressure of completely rewriting the plan each quarter is to establish priorities and implementation steps as part of the planning and quarterly review process

Another way to help the review and measurement process is to set target dates for completing various components of the plan.

The priorities and dates can be included at the end of each section of the plan or in a separate section at the end of the completed plan. In either case, they should be taken very seriously if they are to have the intended effect of helping in the plan review process. Deadlines have a way of slipping in many companies; simply pushing the dates back a few months at each quarterly review quickly renders the whole process meaningless.

Executives and other employees must be judged on their ability to meet the plan's deadlines. If adjustments or delays are necessary for valid operational or planning reasons, these must be discussed and analyzed.

Dust off your plan and make sure 2012 is ready to rock as soon as the calendar flips! See more business planning tips in Bolts of Lightening in The OED Community!

What are the traits of all great entrepreneurs?

2011-12-22T09:07:00.000-08:00

“That which we acquire with the most difficulty we retain the longest; as those who have earned a fortune are usually more careful of it then those who have inherited one.” – Charles C. Colton

1. They have an idea they believe in… that creates a passion that keeps them moving forward.
2. They sincerely love people and because of this can lead them.
3. They take responsibility for all they do.
4. They are logical thinkers and persuasive because of this.
5. They work HARD.
6. They work smart.
7. They are good organizers and on the top of their “time management” game.
8. They make decisions but are not afraid to say they were wrong.
9. They solve problems and add value to all they do.
10.THEY ARE HONEST!

"Many of life's failures are people who did not realizehow close they were to success when they gave up." - Thomas Edison

Can Family Members Continue as Employees Post-Sale?

2011-12-21T03:30:00.000-08:00

Family businesses form a large segment of the small business sector. Transitions can often be difficult when new ownership takes over. OED Certified Advisor Laurie Russelberg provides great insight into the concern of the transition on family members who seek to remain with a company.

Q. Our nephews each work for us, along with our kids. Is it true they’ll be looked at as “old wood” by new ownership? How do we ensure buyers know they are critical, not just family pulling paychecks?

A. This is central concern for family businesses considering a sale. Depending upon the situation and buyer, some or all positions may be in jeopardy. Is the potential buyer an existing business that has its own workforce? Or is the potential buyer an individual who will need to depend upon the current workforce?

Each situation is unique, but the best protection for future employment is to ensure the new buyer sees the family members as vital, contributing members of the company. A few suggestions to consider:

Ensure that each family member has a detailed job description. Can business performance be linked back to each employee and their respective job descriptions?

Can this be effectively communicated to the potential buyer? Don’t be shy about promoting the family members as vital to the wellbeing of the company.

After a sale, will the family members be able to adjust to the new ownership and a changed work environment?

Laurie Russelburg is an OED Certified Advisor and founder of Bridge Business Consultants, Orlando, FL. Contact Laurie via LinkedIn to help your business grow, prosper and transition.

Cash Flow - The Business Lifeline

2011-12-20T03:16:00.000-08:00

All business owners know what cash flow is-if not technically, then emotionally. Nevertheless, it's worthwhile to approach this subject from the very beginning because it is key to business success. Some business school professors have even begun to impart to their students the latest thinking about cash flow: "Cash flow is more important than your mother."
A useful way to think about cash flow is to view the business as a living organism. Cash is the nutrient that runs through its arteries and veins. The brain might be viewed as the product or service, the heart as the marketing, and the stomach as the finances, at which point it all begins to get a little messy. If you don't have enough cash flow, though, rest assured that the living organism turns into a skeleton.

The essential point about cash flow that is often overlooked is that it is different from profit and, for a growing business, much more important. It's possible to run out of cash and go broke even if you have a lot of purchase orders because you aren't being paid in a timely way.

This is a problem that has afflicted more than one Inc. 500 company. One such company that sold a big-ticket item (a computer software product for $50,000 and up) was caught in that bind as its sales climbed from $2 million to $5 million. The orders were there, but the cash came in as late as six months after a salesperson received a commitment to buy. That's because the corporate purchase orders might take another two or three months to be executed and the bills another one to three months to be paid after that. This company's executives had to skip a few paydays, negotiate with suppliers to keep essential products and services coming, and otherwise struggle to stay afloat until the cash came in. Things were so tight that the company's treasurer found himself monitoring cash flow on a daily basis.

Cash flow can also be used as a planning tool. By monitoring cash flow on a regular basis as cash comes in and goes out, you'll see a pattern that enables you to plan for the future.

This becomes very important, especially if you want to expand or go after new markets. You can quickly calculate the effect of such actions on cash flow and determine whether you'll need to seek a bank loan or other financing or whether you can support the new activity from internally generated funds.Calculating cash flow. Quite simply, cash flow is a record of cash available at different points in times. It's usually monitored on a monthly basis. A cash flow statement seems complicated at first glance, but it's really very simple, and it's extremely important as a planning tool.You begin with the cash on hand at the beginning of the month. Then you add the receipts during the month-from customers, royalties, commissions, interest, and so forth.From that, you subtract the actual disbursements-the cash going out each month in the form of fixed and variable expenses. Fixed expenses are such things as rent, debt, salaries-items you're committed to for the long term and can't easily change. Variable expenses include advertising, office supplies, promotion, consulting, and other such expenses that can be easily increased or decreased from month to month.

The result is the amount of cash available at the end of the month. The cash flow is the difference between what you started with and ended with.

Check out more cashflow tips and financial tactics inthe Bolts of Lightening section of The OED Community!

Are You Your Own Worst Enemy?

2011-12-19T03:30:00.000-08:00

In a recent study done by Communispond, a New York based sales firm, more than 100 salesmen were asked why "the number one reason customers switched vendors." Over half admitted that "being out of touch" was the primary reason. Not that the customer found a better deal or a better product. The reality was this: they sold the customer the product and left him. Period.

Even in a very lean economy, clients will not necessarily jump ship just to chase a better deal. Are there long standing clients with whom you've lost touch? Do you reach out them to say hello or see how business is? Do you reach out to let them know you are at least aware you haven't spoken recently? This is an ideal time of year to contact clients (and vendors) with whom you have been out of touch. Let them know you value the length of your connection, and kick off a more connected 2012.

More sales and connection tips can be found in the resource documents in The OED Community.

Signs of Optimism as We Approach 2012?

2011-12-16T03:32:00.000-08:00

The following article appears on Forbes.com by Mary Ellen Biery:

Are things getting better for small business?
After months of understandable pessimism, small business owners have caught a bit of holiday-time cheer.

Two recent surveys show improvement in the small-business outlook even as some economists are reportedly saying U.S. economic growth in the fourth quarter will be stronger than previously expected.

Meanwhile, data from Sageworks’ financial statement analysis of privately held companies shows that small businesses are seeing stronger sales growth and higher profits than last year. And a “Small Business Saturday” promotion during Thanksgiving weekend spurred an estimated 103 million shoppers at independently owned small merchants – more than the 89 million expected by promoter American Express OPEN.
Small business optimism rose for a third consecutive month, the National Federation of Independent Business said this week. The group found small but widespread improvement in forward-looking components of its Small Business Optimism Index, even though the index remains weak and below the January index reading. “After so many months of pessimism, November’s modest gain made it feel like spring, again,” said NFIB Chief Economist Bill Dunkelberg. “We have good reason to be optimistic about last month’s report and hopeful about what it means for the future. Still, our current reality is still very much the ongoing economic winter.

Read the complete article on Forbes!

Networking Master

2011-12-15T06:04:00.000-08:00

by OED Trustee ERIC W. LEAMAN
Why Network? Study after study has been released showing that owners of small businesses consider networking as THE number one way for new business development.

INTRODUCTION TO NETWORKING

The word conjures up all sorts of interesting pictures. Men in recliners smoking cigars and making deals in back rooms. MLM distributors cheering at training sessions and trying to recruit everyone who comes within 3 feet of them when they're done. Even computer wizards doing arcane things behind the scenes to make your Internet connection work.

Networking is about connections. For your purposes in business, it's making connections that bring you customers.

WHAT IS NETWORKING? Networking is cultivating mutually beneficial, give-and-take, win-win relationships.

Networking is the process of developing and nurturing professional contacts to obtain:

1. Referrals

2. Advice

3. Information

4. Support Networking is the ability to relate to and talk to anyone ... anytime ... anywhere, with honesty.

Those who know how to use a network realize:

We are not dependent on each other; nor are we independent of each other ... we are interdependent with each other! The strength ... excitement of networking/networks is that all the people who are part of your network are parts of other networks and their own! Remember ... the "Law of 250" ... Each of us has a sphere of influence of 250 people. (The people who would attend our wedding or funeral). The more people you meet (network) the larger your sphere ... they all have 250 also! A couple of basic working definitions are in order.

Contact A person with whom you have developed, or are developing, an ongoing relationship of trust and mutual respect, SPECIFICALLY REGARDING BUSINESS MATTERS.

To read this complete article & download the complete resource document, visit the OED Community!

What Do Effective Leaders Have in Common?

2011-12-14T05:47:00.000-08:00

"The best executive is one who has the sense to pick good people to do what they want done, and self-restraint enough to keep from meddling with them while they do it.” – Teddy Roosevelt – US President

What characteristics do all leaders possess? Here are four to consider:
1. Commitment to a vision
2. A means to communicate that vision
3. Ability to build trust among associates
4. A positive self-image--leaders believe in themselves.

In addition to these four traits, a good leader also possess two vital people skills: communicating with and motivating employees.

Communication. To be a leader, a manager can't believe he or she is on a pedestal. One company limited the dividing walls in its building so there is easy access to every employee with no knocking required. This company also holds formal meetings weekly for a group of managers who try to identify problems in each department.

A telecommunications company holds a meeting of the entire company every six months and once a year holds a series of roundtables. This company also conducts employee attitude surveys in which employees anonymously ask questions of upper-level management.

Motivation. Can a leader best provide a sense of direction for his or her company by quantifying goals? There is mixed opinion on this.

One theory is that goals need to be specific for each individual. Target bonuses are seen as helpful.

The opposing view considers the adverse consequences of not meeting goals--if employees fall short of the goals, it can act as negative reinforcement. People have built-in insecurities, so goals must convince employees that they are incredible.

Some systems make everybody a winner. A goal system at IBM was mentioned as one illustration of positive reinforcement. IBM emphasizes respect for the individual by tilting the review system to the affirmative--70% of employees make the goals.

Ten Ways to Be A Leader

2011-12-13T05:44:00.000-08:00

1. Begin with praise and honest appreciation.
2. Call attention to people's mistakes indirectly.
3. Talk about your own mistakes before criticizing the other person.
4. Ask questions instead of giving direct orders.
5. Let the other person save face.
6. Praise the slightest improvement and praise every improvement.
7. Give the other person a fine reputation to live up to.
8. Use encouragement.
9. Make the fault easy to correct.
10. Make the other person happy about doing the thing you suggest.
Dale Carnegie (1888-1955) American writer and speaker

Leadership Characteristics

2011-12-12T05:40:00.000-08:00

"A good leader takes a little more than his share of the blame, a little less than his share of the credit.”

Leaders have the authority of knowledge. Leaders have demonstrated ability/talent that colleagues and subordinates admire. To be a leader you cannot just be a talker ... you must bring something special to the situation.

Leaders are visionaries. Leaders see things, that others see as ordinary, in a way as to make them extraordinary. Leaders can make the complex seem simple. Leaders look beyond today.

Leaders produce positive change. Change is seen by leaders as an opportunity and a challenge. Leaders always question why things work, or are done, the way they are.

Leaders give their all. Leaders do not hold back. They do not allow themselves to be sidetracked and always exhibit a high degree of energy and ability.

Leaders are good listeners. They are able to really hear what people are saying and empower people to follow their vision.

Leaders are good communicators. They are clear and concise, complete and consistent. They create enthusiasm and excitement

Leaders are students. They never stop learning and growing. They are willing, and able, to learn from their mistakes. Leaders read ... read ... and read!

Leaders take risks. They create change which requires risk because they visualize how things can be done better.

Leaders are ethical. People will not follow someone who cannot be trusted, consistently.

Leaders are optimistic. Trust and hope are the basis on which leaders empower other people. They believe (and have proven) they are winners

Who needs a Plan?

2011-12-09T05:51:00.000-08:00

Anyone who starts or runs a business. It’s as simple as that … no ifs, ands, or buts.

Don’t think that you or you business are any different. Successful companies all have plans … unsuccessful companies don’t.

Why do you need a business plan?

The main reason is you!

A good business plan will help you:
Writing a business plan is difficult or daunting as you might think and even if it were... it is something you must do!

There are a few things that you can do right now to get started.
1) Think about the background and history of your company. Write a general description of your business, how long you have been in operation, and some basic financial details.
2) Write a few paragraphs about the nature of the products or services you offer. Use language that a non-expert will understand. What do you sell? How is the product used? What need does it serve?
3) Think about your competitive position in the market. Write out answers these few basic questions: What are the advantages of your product (cheaper, better quality, unique features, etc.)? Are there any disadvantages? (be honest!) Who is your competition? Describe their products, advantages and disadvantages.
4) Next think about your customers. Write a description of your typical customer. Who are they? Where are they? Why do they buy? When do they buy? Who makes the decision to buy?
5) Write a clear statement of your business objectives. What are your goals, in terms of sales, profits, traffic to your website, etc.? Set some objectives for 3 months, 6 months, one year, and two years. Start by thinking about your one year goals, and then work backwards to formulate the benchmarks you need to reach at 6 months, and 3 months from now.

These are just a few of the considerations that need to go into a powerful business plan, but even these five points will get you started. Spend some time on your business plan; you owe it to yourself and your business.

Business Plans and Planning

2011-12-08T05:41:00.000-08:00

"You've got to be very careful if you don't know where you're going, because you might not get there." - Yogi Berra

“Nothing great was ever achieved without enthusiasm.” Ralph Waldo Emerson (1803–82), U.S. essayist, poet, philosopher.

A successful business plan is one that focuses your thinking, helps you establish a realistic business strategy, improves your operations, and wins for your company the financing and other support it needs.

Written business plans, broadly speaking, are usually put together for either of two purposes: to prepare for a significant event, such as obtaining financing, or to guide the company’s operations for a particular period, usually a year.

Keep in mind, in writing the plan, you’ll invariably take two steps forward and one step back. It’s an uneven path, fraught with unforeseen frustrations and difficulties. Thrashing out those difficulties is a key part of the planning process.

Being in business is a journey, not a destination -- with NO made roads or freeways, despite what some franchisers would have you believe. Every business travels into the uncharted territory of the future. But, no matter how good a driver you may be, how well you know the route, or how quickly you can load and unload the vehicle, if you fail to put fuel in the tank, air in the tires, oil in the engine, water in the radiator, or otherwise adequately maintain and service the vehicle, it will soon grind to a halt.

You'll go nowhere. Sadly, this is the case with most small business owners. They're good drivers -- plumbers, hairdressers, retailers, lawyers, accountants, printers or whatever their trade or profession may be -- but they haven't a clue what's required to maintain and manage their vehicles. So they rarely make it to their chosen destinations.

To complete the journey to your chosen destination you need a suitable business vehicle.

Make Profit Everyone’s Responsibility

2011-12-07T05:40:00.000-08:00

To many entrepreneurs do not talk to their employees about PROFIT. They often feel one of two ways:
It’s no ones business but their own.
Their people wouldn’t understand it anyway.

Both are disastrous attitudes.

It is the employees business because without it they won’t have a job for long.

If they don’t understand what profit is then the boss must explain it to them!

Without a firm commitment to the profitability of the company people do not see it as part of their jobs and will see no relationship between the businesses profitability and their jobs. This causes waste and inefficiency.

Profit MUST be part of everyone’s job description!

Hire A Great Bank

2011-12-06T05:35:00.000-08:00

Bankers are NOT villains – they can be the biggest allies an entrepreneur has because it is very much to their benefit to see the entrepreneur become successful.

Make a list of what services you need form a bank: checking and savings accounts; credit card processing; lines of credit; wire transfers etc. Take some time and make a complete “wish list”.

When your list is complete look for a small community bank that is close to your business and active in the area. Choose one that advertises for local business and has a customer list that includes business like yours.

Also, make sure to ask your mentor, friends and other business people for recommendations.
Once you have a list of possible banks make an appointment with the bank president or the VP in charge of the branch nearest you and interview then completely.

In the final analysis you must have a bank that can service all your needs and “personal” banker who you can deal with to be successful.

Made In America- For Christmas

2011-12-01T03:30:00.000-08:00

We love this ongoing series by ABC News. Kudos to the American Broadcasting Company for bringing the spotlight to the most effective way to jump start job growth: Buy American. It sounds... what? Simple? Costly? Everyone has their own take. Is it a simple but quaint idea that will cost more than buying readily available goods in a big box store? Is it impractical due to the huge percentage of goods produced overseas? Yes. And No. To jump start your creativity thought process and give Santa a little help too on holiday tips, the Made in America Series is now running The Great Made In America Christmas.

The premise is simple yet astounding. If every American spent just $64 (just 1-2 gifts on your list) on products made in America, the result would be 200,000 jobs. Read that again. Now think of all the merchants in your area, mail/web order businesses you know, restauranteurs with gift cards, holiday cheer... you name it, choices abound.

There is an ever-growing list of merchants and items on ABC's website. Check them out, do some holiday shopping, and let's support these fellow American entrepreneurs and their employees!

Small Businesses Create 55,000 Jobs in November

2011-11-30T07:42:00.000-08:00

(Reuters) - U.S. small businesses created 55,000 jobs in November but employees worked fewer hours and earned less money, according to a survey on Tuesday that highlighted the still weak labor market conditions.
Intuit, a payrolls processing company, said the increase in small business employment compared to October's upwardly revised 60,000 count, previously reported as a 30,000 gain.

The survey is based on responses from about 71,000 small businesses with fewer than 20 employees that use the Intuit Online Payroll system.

It covered the period from October 24 to November 23.

The average work week for small business employees fell 0.3 percent to 24.9 hours, while the average monthly salary slipped 0.18 percent to $2,637.

"Total compensation is down, part-time workers aren't getting as many hours, and there are fewer hourly employees who are working full time," said Susan Woodward, the economist who helped to develop the survey.

"Overall, this data is the best we could hope for given the uncertainty of the situation in Europe."
The government will release its closely watched employment report for November on Friday. Nonfarm payrolls likely increased 122,000, according to a Reuters survey, after rising 80,000 in October.

post published Nov 30 2011- Reuters News Agency

Creating a Strategic (Emergency) Contingency Plan

2011-11-28T07:22:00.000-08:00

None of us likes to think of the worst case scenario, but if the bizarre weather the East Coast has faced haven't taught us the need to plan, nothing will. Hurricane and floods affecting the ENTIRE state of NJ? Pre-Halloween blizzards taking out power? The following is a cross-post from Bolts of Lightening in OED's Community site. Read on and prepare BEFORE winter settles in with its snow, winds, ice, HVAC system chaos, and inevitable electrical issues that often ensue.

It's the kind of situation that none of us like to think about--a fire burns the headquarters or a flood damages inventory and closes Main Street. But it's the kind of situation every small business needs to be prepared for. We only need turn on the evening news on television to be reminded of the devastating consequences of fires, tornadoes, floods, and hurricanes.

The best way to prepare is to create a strategic contingency plan that will keep the business operating, even if only on a reduced basis, until the damage can be repaired or the business otherwise restored. Such a contingency plan need not be very complicated or involved. But it should answer certain key questions, among them the following:

· What are the most important elements to keeping this business operating?
For some businesses, like food or hardware stores, it is a matter of having inventory available as quickly as possible. For other businesses, like professional service firms, it is a matter of being able to get the professionals together to service clients. Whatever the most important elements are for your business, figure out what you would do if a natural disaster interrupted operations. Talk to your suppliers about what they would do, and with your key employees for their car phone numbers or addresses of close relatives.

· Where would we operate?
If your store or office were damaged, you need another place to set up operations. This might be in the owner's house, or it could be in a warehouse the company owns. The important thing here is to consider the options, and prioritize them if you have more than one choice.

·How would we communicate with each other?
In a flood or hurricane, especially, electricity and even telephone communication can be knocked out. Make sure you know everyone's home phone number and all employees' current addresses. Involve several people in the company in drawing up the contingency plan so that they are alert to the importance of communicating information about new location and hours of operation during an emergency.

· Do we have backup copies of important records?
In order for the business to be able to carry on in an alternative location, it should have access to its records. Consider what would happen if the records were destroyed or damaged by fire or flood. In today's age of computers, it is reasonably easy to have backup records of customer and supplier lists, provided someone is charged with regularly updating files. Old paper records should be regularly moved to an offsite location; this increases the odds they will be available in an emergency.

· Do we have all the insurance we require?
As just one example, you may want to be sure you have insurance covering you for loss of business time. This could provide critical cash to enable you to re-start operations.

The key issue in putting together such a strategic plan is anticipation. The key questions raised boil down to this: What do you need to continue operations, and how would you ensure that what you need is readily available?

Are you an Asset or Liability to your client?

2011-11-25T03:30:00.000-08:00

We operate by the credo that benefits sell consultancy. If the benefits are not there, then the consultant should not be there. But who defines the term 'benefits'? Rather than engage in a theoretical debate about benefits and who defines them, let's take a practical approach to client benefits by examining the Balance Sheet of the client, shall we?

The development of a business relationship goes through 5 stages. Your ability as a consultant to become a fixture in your client's asset column in each of these 5 stages will determine the benefits you are providing and whether or not you have earned the right to remain as the consultant for that client. If you reside in the liability column in ANY of these 5 stages, you run the risk of creating a very short-lived relationship. Are you ready to take the test? Great! Score yourself in each of the 5 stages; A for asset and L for liability. Be honest and good luck!

5 Stages of a Successful Business Relationship

Stage 1: Initiating the Business Relationship. When initiating the relationship, you need to create a personal relationship and build rapport. In order to build trust, our client needs to feel that you are there to serve them and their needs. Are you effective in building rapport and trust? If Yes, score A for Asset. If you feel you need to improve in this area, score yourself an L for Liability.

Stage 2: Developing the Business Relationship.

Stage 2 is about creating a strategic plan or vision for the long term. In your strategic plan, you set long-term priorities, list specific and time-targeted outcomes. Finally, you make a total commitment to the achievement of those specified outcomes. Your ability to convey your vision for yourself, the client AND the client company builds confidence and respect within the client that you can handle the engagement for the long term. Are you effective in conveying this long-term vision to your client? If Yes, score A for Asset. If you feel you need to improve in this area, score yourself an L for Liability.

Stage 3: Testing the Business Relationship.

This stage confirms and validates in the client's mind if the engagement is in fact a viable and beneficial relationship. How quickly are you making a noticeable impact on your client? Do you routinely ask the tough questions and probe the points of pain with your clients? Are you delivering measurable results within the first 30 days of the engagement? If Yes, score A for Asset. If you feel you need to improve in this area, score yourself an L for Liability.

Stage 4: Rolling Out the Relationship.
So, you've picked the low hanging fruit and created some short-term results. You have gotten your client out of their short-term pain. Now what? Your ability to create ongoing, incremental, positive improvement at your client company will determine your ability to remain in the asset column. Are you delivering consistent results to your client month in and month out? Be honest! If Yes, score A for Asset. If you feel you need to improve in this area, score yourself an L for Liability.

Stage 5: Feedback and Review of the Relationship.
How often do you hold a mirror up to yourself and honestly assess your own performance? Do you hold regular performance evaluation meetings with your client to ensure that your client is feeling supported? When performing this outcome review, does your client give you the feedback that you are making positive, measurable impact? If Yes, score A for Asset. If you feel you need to improve in this area, score yourself an L for Liability.

So, how did you fare? Here is what your scores mean:

If you scored an L in Stages 1 and/or 2:

You may be having difficulty signing new clients because you are not effectively conveying your true value and the benefits to your prospects. Ask and answer this question, "How will engaging in the client and engaging with you specifically positively transform this business? Also,"Why should this prospect engage with you over ALL else?"

If you scored A's in Stages 1 and 2 but you scored L's in Stages 3 and/or 4:

Well done! You are signing new clients and creating short-term impact, but you may be experiencing short-term client engagements. Now what? You need to dig deeper. Dig deeper into your commitment to this client and deeper into the challenges that your client company faces. What consistent daily actions does this company need to take in order to achieve the long-term specified outcomes?

If you scored A's in Stages 1 through 4, but an L in Stage 5:

Excellent! Short-term impact combined with consistent results has yielded a happy client. To take this relationship to the next level, you must solicit feedback from your client. "Are you happy with the direction of the engagement thus far? How can I support you best going forward? What specifically needs to happen in order to make this a level 10 (on a scale from 1-10) experience for you and your enterprise?" The answers to those two questions transition you from Stage 5 back around to Stage 1 as if in a clockwise rotation. By asking those feedback questions, you have placed yourself in the Asset column of Stage 5 and just initiated the next level of the relationship. Nice work!

If you scored A's in all 5 Stages:

Congratulations, you are providing ongoing positive benefits to the client company! According to your client, you are residing in the Asset column by building rapport, creating an environment of trust and respect, and holding your client AND yourself accountable to a higher standard by asking the tough questions necessary when growing a business.

Fellow colleagues, remaining a fixture in the Asset Column of your client's balance sheet is an ongoing process and a key to the long-term profitability to both your and your client's businesses. I wish you the best of luck in your quest to score all A's on the balance sheets of your clients!

This article and excellent client service tips like it may be found in the OED Community. The access is complimentary. The knowledge base is invaluable.

Assessing Personnel Needs - Tips

2011-11-22T07:30:00.000-08:00

As payrolls have been trimmed and companies have been forced to run lean, many have tried to increase productivity to nearly unrealistic levels. As things start to emerge in what may be a "new normal" rather than lightening-quick recovery, we look at this cross-post from Bolts of Lightening in OED's Community site.

The small business owner should base the firm's personnel policies on explicit, well-proven principles. Small businesses that follow these principles have higher performance and growth rates than those that do not follow them. The most important of these principles are

All positions should be filled with people who are both willing and able to do the job.
The more accurate and realistic the specifications of and skill requirements for each job, the more likely it is that workers will be matched to the right job and, therefore, be more competent in that job.
A written job description and definition are the keys to communicating job expectations to people. Do the best job you can! is terrible job guidance.
Employees chosen on the basis of the best person available are more effective than those chosen on the basis of friendship or expediency.
If specific job expectations are clearly spelled out, and if performance appraisals are based on these expectations, performance is higher. Also, employee training results in higher performance if it is based on measurable learning objectives.

The first step in assessing personnel needs for the small business is to conduct an audit of future personnel needs. Ask yourself:

Can the workload you visualize be accomplished by the present work force?
Will more or fewer employees be needed? Consider seasonal patterns of demand and probable turnover rates.
Can any jobs be eliminated to free people for other work?
What balance of full-time or part-time, temporary or permanent, hourly or salaried personnel do you need?
What does the labor supply look like in the future?
Will you be able to fill some of the jobs you've identified? How easily?
What qualifications are needed in your personnel?

Develop a method to forecast labor demand based on your answers to these questions. Once your needs are estimated, determine strategies to meet them. Be wary of tightening payroll to the point you eliminate any chance for growth.

Your Client Service Skills - A Quickie Quiz

2011-11-22T03:15:00.000-08:00

How "wise" are you willing to be with yourself? And how honest?

Feeling brave? Then take this quiz....

Rate yourself on your New Client Presentation on a scale from 1-10 (1=lowest and 10=highest).

Be brutally honest with yourself to get maximum value from this exercise.

If you score less than 10 on any of the points, then I invite you to answer the question that immediately follows your score.

Here we go...

1) The Opening

~Building Rapport (Icebreaker).......................Score_____