As more and more business owners of the Baby Boom generation beginning thinking about "what's next," we at OED are seeing an increasing interest in issues like business turnover and generational planning.
In realty, many active business owners often put off thinking about how to pass their business on to a child, or other family or non-family successor, because they don't want to think about retirement--just like they don't want to consider the possibility of premature death.
Yet this failure to carefully plan for their succession, both as regards management control of the business as well as business ownership assets, is cited as the main reason why only 30% of family-owned businesses continue into the second generation and only 10% make it as far as the grandchildren.
One major dilemma owners face is determining how to pass along operational control to the successor they've been grooming while still maintaining the ultimate ownership control of the business. For estate planning and other reasons, family business owners know that there are important tax reasons for gifting ownership interests to those offspring who ultimately, will own the business when they are gone. Yet they also want to be sure that they and their spouses will have financial security when they retire.
In some cases, the owner may not be sure whether offspring have the interest, or competence, to run the business--and may want to maintain control until that issue has been settled.
Strategies For Building a Secure Future
• By creating two classes of stock--a class of preferred stock with voting rights and a fixed dividend and a class of common stock without voting rights--the owners can retain the voting stock even as they pass along the non-voting common stock shares to offspring chosen to succeed them in the business.
In effect, they pass along equity ownership but without surrendering control or the right to a guaranteed annual income stream as long as the business is health.
• Non-successor offspring can be provided for equitably by gifts of non-business assets, or through the use of insurance trusts that will allow those remaining in the business to eventually buy out siblings and other relatives.
• However, parents who want all their offspring to benefit from the growth of the business may decide to gift non-successor children stock equally with those who they are grooming to succeed them. Buy-sell agreements that allow the successor heirs to buy out their siblings' or cousins' interest after the parents are gone is a workable strategy for achieving this.
• Detaching real estate assets from other business assets, with the parents retaining ownership of the real estate and negotiating a long-term lease with the business is another way to ensure a stable income stream.
• By retaining control of the Board of Directors, while leaving day-to-day management of the business to offspring, the owner is able to intervene in the most important strategic decisions and will also be in a position to approve all major investment decisions.
• Also, the owner can continue to serve in a consulting capacity to the business, perhaps with a long-term contract providing fee income--after retiring from board involvement as Chairman. This will allow the owner to continue to keep an eye on the business, while also keeping active in ways satisfying to himself and helpful to children.
• Asset diversification should also be part of the strategy. If the owner has built up sizeable non-business assets through retirement plans, real estate investments and the like, there's apt to be less financial concern over passing control of the business on to offspring.
(Of course, there may also be other concerns, including the ownership interests of other children or an emotional commitment to making sure the business continues as part of the family legacy.)
Active owners in good health often want to stay involved in business. Yet if they don't provide offspring with the opportunity to take charge of the family business, and make the inevitable mistakes, they limit the successor's ability to grow in the business.
• With a sound estate and business succession plan, owners can protect the business' assets while still allow offspring in management enough control to learn how to run the business.
• For example, if they chose not to remain involved because of other post-retirement interests, or if they worry that their involvement would be resented, they might consider bringing in an interim CEO, while also adding outside specialists to the board, to mentor the family successor during the transition period.
Letting go of the business in a manner that will secure the financial and other interests of the owner--while also satisfying the needs of other family members and offspring wanting to take over the business--will require very thorough and skillful review of a number of estate planning options. Considerations include the pros and cons of different kinds of trust arrangements, insurance plans along with the estate and business tax consequences of the various planning options.
Fostering the entrepreneurial spirit!
Showing posts with label consultants. Show all posts
Showing posts with label consultants. Show all posts
Friday, January 17, 2014
Friday, November 8, 2013
Using a Business Consultant
How can a small business achieve big-business results without spending a fortune on expensive employees? In many cases, the answer is to engage the services of outside consultants. As a business owner, you don’t need full-time staff to cover every operation and function. But you do need to know how to tap into additional resources when necessary. That’s where consultants can be of assistance and value.
Reaching for a consultant when problems arise has become a natural exercise for American business. When you're not feeling well, you call for the services of a doctor. If your car isn't running right, you take it to a mechanic. When businesses encounter a problem, whether in advertising, accounting, computer use, sales, or customer relations, wise business owners are seeking the advice of those with a background in the field. To be successful, a business must keep abreast of the ever-changing world in which it operates. The consultant helps businesses of all sizes make the transition between their present level of operation and the more successful level needed to maintain and grow their share of the market.
Using the right consultants can be a cost-effective way of addressing a wide-range of business issues and operating problems, or the means to elevate a business to the next level. But what should you look for when selecting a business consultant? Here are some suggestions:
1. Experience – Your consultant should be a seasoned business person, who has experienced the difficulties of running a business and can successfully find hidden opportunities.
2. Resources – Your consultant should have access to a wide range of resources and be able bring together the expertise needed to improve the business.
3. Ethics – Your consultant should adhere to a professional code of business practices.
4. Value – Your consultant must provide value, such that the business receives greater benefit than the cost of the services.
5. Real-world – Your consultant should help the business achieve its goals using practical and pragmatic methods.
6. Tailored – Your consultant should provide advice that is customized to the business’ unique issues, opportunities, and specific circumstances.
7. Long-term – Your consultant should be able to step away from the daily flurry of activity to think both strategically and tactically about the goals of the business.
8. Client-focus – Your consultant will provide useful assistance if he/she listens to and cares about the people running the business.
Reaching for a consultant when problems arise has become a natural exercise for American business. When you're not feeling well, you call for the services of a doctor. If your car isn't running right, you take it to a mechanic. When businesses encounter a problem, whether in advertising, accounting, computer use, sales, or customer relations, wise business owners are seeking the advice of those with a background in the field. To be successful, a business must keep abreast of the ever-changing world in which it operates. The consultant helps businesses of all sizes make the transition between their present level of operation and the more successful level needed to maintain and grow their share of the market.
Using the right consultants can be a cost-effective way of addressing a wide-range of business issues and operating problems, or the means to elevate a business to the next level. But what should you look for when selecting a business consultant? Here are some suggestions:
1. Experience – Your consultant should be a seasoned business person, who has experienced the difficulties of running a business and can successfully find hidden opportunities.
2. Resources – Your consultant should have access to a wide range of resources and be able bring together the expertise needed to improve the business.
3. Ethics – Your consultant should adhere to a professional code of business practices.
4. Value – Your consultant must provide value, such that the business receives greater benefit than the cost of the services.
5. Real-world – Your consultant should help the business achieve its goals using practical and pragmatic methods.
6. Tailored – Your consultant should provide advice that is customized to the business’ unique issues, opportunities, and specific circumstances.
7. Long-term – Your consultant should be able to step away from the daily flurry of activity to think both strategically and tactically about the goals of the business.
8. Client-focus – Your consultant will provide useful assistance if he/she listens to and cares about the people running the business.
Friday, October 25, 2013
Leadership Characteristics
“A good leader takes a little more than his share of the blame, a little less than his share of the credit.” - Arnold Glasow
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.
“A good listener is not only popular everywhere, but after a while he knows something.” - Wilson Mizner
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!
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.
“A good listener is not only popular everywhere, but after a while he knows something.” - Wilson Mizner
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!
Friday, September 27, 2013
Managing Stress Begins with Knowing Its Source
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.
eleaman@oedglobal.org
http://twitter.com/oed4smallbiz
Organization for Entrepreneurial Development
Unleashing the entrepreneurial spirit.
Change your mind ... and EVERYTHING changes
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.
Eric W. Leaman
Trustee eleaman@oedglobal.org
http://twitter.com/oed4smallbiz
Organization for Entrepreneurial Development
Unleashing the entrepreneurial spirit.
Change your mind ... and EVERYTHING changes
Wednesday, September 4, 2013
The Ten Commandments of Small Business Ownership
I. Establish the Strategic Direction of the Company ... Mission Statement!
II. Build Loyal Employees
III. Hold Employees Accountable
IV. Continue Upgrading Management
V. Build Strong Relationships ... vendors, customers, and advisors.
VI. Keep Margins and Markups as Low as Possible
VI. Always Produce and Provide Quality
VII. Strive to be the "Low Cost" Producer
VIII. Grow ... but do so prudently and profitably.
IX. Create Excellence in Operations and Execution
X. Control the NUMBERS!
XI. THOU SHALT MAKE A PROFIT!!!
II. Build Loyal Employees
III. Hold Employees Accountable
IV. Continue Upgrading Management
V. Build Strong Relationships ... vendors, customers, and advisors.
VI. Keep Margins and Markups as Low as Possible
VI. Always Produce and Provide Quality
VII. Strive to be the "Low Cost" Producer
VIII. Grow ... but do so prudently and profitably.
IX. Create Excellence in Operations and Execution
X. Control the NUMBERS!
XI. THOU SHALT MAKE A PROFIT!!!
Thursday, June 13, 2013
How You View Life is How Your Life Will Be
If you want to be miserable, then get yourself
around other people who are miserable. If you wish to be joyful, successful and
fulfilled, put yourself around those who live with positive purpose.
The more energy you put into complaining about how
bad things are, the more things you'll have to complain about. The more
intensely you visualize how good things can be, the better they will become.
You are naturally drawn to whatever you focus upon.
You will see precisely the opportunities and possibilities that you prepare
yourself to see.
Each day is filled with so many choices and
directions that you cannot possibly connect to them all. The ones you do
connect with are the ones that most closely resonate with your view of life.
Fortunately, you can choose to view life in
whatever way you wish. Those who find the best in life are those who
continually remind themselves that all the good and valuable things are most
certainly there.
“See your
life as a grand opportunity for love and joy, achievement and fulfillment. And
that's exactly what it will be.” - Ralph Marston
Trustee
Organization for Entrepreneurial Development
Unleashing the entrepreneurial spirit.
Change your mind ... and EVERYTHING changes
Thursday, June 6, 2013
Balancing Family and Business
Goals
When conflict occurs in the family business, it can be traced to a
disparity in the goals of the individuals, the family or the business.
Perhaps a family member
works in the business out of economic necessity, not because he or she wants
to. Or perhaps the potential successor has plans for the business that differ
from current management plans--different generations usually have different
goals. Whatever the cause, the conflict must be addressed and resolved to avoid
and prevent more serious problems later.
One way to define and
align family and business goals is through business
and family strategic planning. In these plans, you will create a mission
statement for the business and for the family that allows each element to
complement the other. Once you have completed this task, set goals for the
family business that will allow the family and business to prosper. Next,
develop a strategy to accomplish these goals and, finally, formulate policies
and procedures that control the family's involvement in the business.
Business Strategic Planning
Strategic planning for
family-owned businesses requires that you integrate family issues, such as:
q
What are the long-term personal and professional goals
of family members?
q
What is the family mission?
q
Why are you committed to establishing and operating the
business?
q
How do you envision the firm in the future?
q
Will family members be active in management or will they
be passive members?
q
How will issues such as compensation, benefits and
performance evaluation be handled?
The answers to these
questions will affect the business strategy and should be resolved before
strategic planning begins.
Strategic planning involves
analyzing the business in its environment and devising a process for guiding
its development and success in the future. This process involves assessing the
internal operations and the current external environment (i.e., economic,
technological, social and political forces) that affect the business. To begin
this process, identify internal strengths and weaknesses that may constrain or
support a strategy. Components of this assessment include (1) the
organizational structure, (2) the culture and (3) the resources. Make a list of
the opportunities available (growth, new markets, a change in regulations) and
the threats (increased competition, shortage of raw materials, price-cutting)
to your business. This should give you some insight into the current situation
and provide a strategic direction.
Next, list the objectives
of you and your family, identifying personal needs and risk orientation. Many
of these objectives and goals (See Appendix for Forms) will be addressed in your family strategic plan. Also,
you will find that your personal objectives will affect the strategy you
choose. For example, if there is a great opportunity for growth in your market
but you have a low risk orientation and a high personal need for security, you
probably should not pursue high growth. It would be not only risky but also
expensive. Growth consumes cash, and cash must be generated internally or
financed externally. Your personal objectives should mesh with your strategy.
Once you have identified
opportunities in the industry, assessed the strengths and weaknesses of the
firm and listed your personal objectives, you can proceed with the strategic
plan. This will involve:
ü developing a mission
statement,
ü setting objectives,
ü developing strategies to
meet objectives, and
ü developing action steps to
implement the strategy.
Mission Statement
(See Appendix for Form)
The mission statement answers
the question "What business are you in?" It defines your customers
and explains why you are in business. The mission statement embodies the heart
of the business and gives direction to every facet of the business. Effective
mission statements
q
include specifications that allow measurement,
q
establish the individuality of the firm,
q
define the business in which the firm wants to be
involved,
q
are relevant to all with a stake in the firm, and
q
are exciting and inspiring.
Objectives and Goals
(See Appendix for Form)
You should set reasonable
objectives for the firm, based on the mission statement, to ensure
accomplishment of the firm's mission. Objectives should be clearly stated,
realistic, measurable, time specific and challenging. Objectives can be created
for:
q
revenue growth,
q
earnings growth,
q
sales and market share growth,
q
new plants or stores, and
q
product/service quality or corporate image.
Strategies
Strategies are determined
by your answer to the earlier question: "What will the firm be like in the
future?" Your strategic options include the following:
1. Stability--success is derived from little change
(rare).
2. Profit strategy--sacrifice future growth for profits today.
3. Growth strategy--growth may be achieved through vertical
integration (expansion from within), horizontal integration (buy a competitor),
diversification, merger or retrenchment (turnaround or divestment).
Action Steps
Once the strategy is
selected, action steps should be specified that will guide the firm's daily
activities. An example of an action step is creating a budget to project the
costs of a strategy. This process also is known as tactical planning. The steps
in tactical planning should be practical and easy to implement and account for;
their purpose is to convert goals into manageable, realistic steps that can be
individually implemented.
Eric
Eric W. Leaman
Trustee
Organization for Entrepreneurial Development
Unleashing the entrepreneurial spirit.
Change your mind ... and EVERYTHING changes
Wednesday, June 5, 2013
7 Ways to Build Wealth Personally or In Your Business
Money is a valuable tool for all of us
to have and use in our lives. It is there to be accumulated and used… but we
must learn how to do both or we will never have wealth and what money we do
have we will most likely not keep.
In 1926 George S Clason published The Richest Man in Babylon. In this
systematic and entertaining book Clason presents and details the ways to
accumulate and keep wealth that are when applied as certain as the law of
gravity.
“Money is plentiful for those who understand the
simple laws which govern its acquisition.” – George S Clason
In the book Clason introduces Arkad,
the richest man in Babylon. Early in the
book Arkad is asked by the King to teach 100 men the secret to wealth. Here is
a summary of what he taught them.
- Begin paying yourself
first.
- Budget and control what
you spend. Discipline yourself to live on far less then you earn.
- Make your money work for
you. Invest in safe enterprises or the highest rates of compound interest
available.
- Keep your savings safe. Do
not speculate.
- Buy a home for yourself
and your family.
- Insure you future income
for your retirement and the estate you will leave your loved ones.
- Increase your ability to
earn. Be the best at what you do and learn to do more.
Eric
Eric W. Leaman
Trustee
Organization for Entrepreneurial Development
Unleashing the entrepreneurial spirit.
Change your mind ... and EVERYTHING changes
Wednesday, December 12, 2012
Expert Business Advisors Will Help You Grow Your Business
Expert Business Advisors Will Help You Grow Your Business
Many otherwise talented business owners, especially those who are inexperienced at running a business (they don’t know what they don’t know), call on outside experts only when they have already lost control of their sales, cash flow, profitability… and their dreams..
It is unfortunate that there are still business owners who make the mistake of thinking that the use of a professional business advisor is a troubleshooting exercise that a company undertakes only to manage crisis. This can be a fatal mistake for the business because by the time a company is in crisis it may well be too late for even the best and most qualified of advisors to help.
The fact is professional business advisors should be used when a business is successful because they are third party experts who can insure a business makes the right decisions that lead to continued and heightened profitability.
Professional business advisors should be used to look at issues related to business in a broad perspective. Helped by their expertise and business acumen, as well as by being from outside the company, professional advisors can see things from a point of view which the owner may fail to see them because of the owners deep and passionate involvement in the business. Professional business advisors can often identify fresh ideas and approaches to issues and opportunities and help ownership weigh the pros and cons of each strategy and the situation, again with a fresh perspective.
Professional business advisors should be used to supply resources (and time) which the clients may not be in a position to provide for themselves because they do not have the staff or personal expertise to do so. Usually, the key resource needed is expertise… experience, knowledge, creativity and special skills. Time and people are other resources, which the client might not be able to spare, which can be provided by professional business advisors.
A key aspect of what the professional advisors also bring to their clients is their team of experts, technical advisors with expertise in specific areas. The professional business advisors main personal strength is that they have broad skills in multitude of areas such as marketing; sales; finance; corporate strategy; and human resources but when needed have specialized expert sources they can call on for items like e-commerce; manufacturing processes; IT; and other non-management activities, including compliance with various safety and health regulations, technology application to name a few.
Our point?
Small and medium sized businesses benefit from professional business advisors and there are many advisors who specialize in small to medium sized entrepreneurial businesses who know the challenges business owners face and recognize the cost-value relationships that needs to be created and leveraged. These small business orient advisors become trusted and valued resources because they have only the owner and the business in mind and focus on items that directly improve the bottom line of the company.
So, instead of shying away from hiring professional business advisors, what is required is to identify the right advisor so that the owner and the company can focus on their core activities that will ensure smooth operations and which will ultimately reflect on the profits as well as the overall growth of the company.
Prepared by the Organization for Entrepreneurial Development Editorial Staff
OED is a 501(c)(3) public charity that, through its Local Business Assistance Program, assists business owners identify qualified and Certified experts to assist them with their business needs. Visit OED at www.oedglobal.org
Many otherwise talented business owners, especially those who are inexperienced at running a business (they don’t know what they don’t know), call on outside experts only when they have already lost control of their sales, cash flow, profitability… and their dreams..
It is unfortunate that there are still business owners who make the mistake of thinking that the use of a professional business advisor is a troubleshooting exercise that a company undertakes only to manage crisis. This can be a fatal mistake for the business because by the time a company is in crisis it may well be too late for even the best and most qualified of advisors to help.
The fact is professional business advisors should be used when a business is successful because they are third party experts who can insure a business makes the right decisions that lead to continued and heightened profitability.
Professional business advisors should be used to look at issues related to business in a broad perspective. Helped by their expertise and business acumen, as well as by being from outside the company, professional advisors can see things from a point of view which the owner may fail to see them because of the owners deep and passionate involvement in the business. Professional business advisors can often identify fresh ideas and approaches to issues and opportunities and help ownership weigh the pros and cons of each strategy and the situation, again with a fresh perspective.
Professional business advisors should be used to supply resources (and time) which the clients may not be in a position to provide for themselves because they do not have the staff or personal expertise to do so. Usually, the key resource needed is expertise… experience, knowledge, creativity and special skills. Time and people are other resources, which the client might not be able to spare, which can be provided by professional business advisors.
A key aspect of what the professional advisors also bring to their clients is their team of experts, technical advisors with expertise in specific areas. The professional business advisors main personal strength is that they have broad skills in multitude of areas such as marketing; sales; finance; corporate strategy; and human resources but when needed have specialized expert sources they can call on for items like e-commerce; manufacturing processes; IT; and other non-management activities, including compliance with various safety and health regulations, technology application to name a few.
Our point?
Small and medium sized businesses benefit from professional business advisors and there are many advisors who specialize in small to medium sized entrepreneurial businesses who know the challenges business owners face and recognize the cost-value relationships that needs to be created and leveraged. These small business orient advisors become trusted and valued resources because they have only the owner and the business in mind and focus on items that directly improve the bottom line of the company.
So, instead of shying away from hiring professional business advisors, what is required is to identify the right advisor so that the owner and the company can focus on their core activities that will ensure smooth operations and which will ultimately reflect on the profits as well as the overall growth of the company.
Prepared by the Organization for Entrepreneurial Development Editorial Staff
OED is a 501(c)(3) public charity that, through its Local Business Assistance Program, assists business owners identify qualified and Certified experts to assist them with their business needs. Visit OED at www.oedglobal.org
Friday, October 19, 2012
The High Cost of Telephone Interruptions
One of the most difficult aspects of a small business is that customers call [OR STOP IN] constantly and expect you to be instantly accessible. Once they reach you, they expect you to drop everything to deal with their matters. Most business people, feeling they are obliged to respond to their customers, divert themselves from the tasks at hand and acquiesce to the customers' wishes. By the end of the day, you may have had 10 customer calls and have been diverted 10 times from the important matter on which you intended to work. You now have 10 files open on your desk, on each of which you have spent about 15 minutes. It is difficult to create any continuity of thought working this way.
It is estimated that for each interruption you have you lose 2 to 3 minutes of productivity on the matter from which you were diverted. Each time you return from an interruption you must take some time to reintegrate your mind with the original task. You have to answer the question, "Now, where was I?" If you have 10 interruptions a day, you spend 20-30 minutes a day answering that question. This translates to 80 to 120 hours a year in lost time and revenues just trying to find your place.
There is also the issue of your work product. Every business requires analysis, assimilation, problem solving and creativity. The more continuity you have in your thought processes, the better your work product will be. The more pushed you are for time, the more shortcuts you will be forced to take. Therefore, constant interruptions not only cost you time, but quality.
The key to producing more productive work is to understand the difference between accessibility and responsiveness.
Accessibility means the businessperson can be reached whenever the customer wants him/her. Though this is a great comfort and convenience to the customer, it is disruptive for the businessperson. Ultimately it is detrimental to the customer because it will cause the customer's work to take longer and the sum total of the interruptions will erode the integrity of the work product.
Responsiveness means the customer can depend on having a conversation with you in a reasonable period from the time from their call. It means you return calls promptly. Ironically, businesspeople that are highly accessible are often not very responsive. The result of being accessible is that they get so far behind, they don't have time to return calls. This exacerbates the problem because customers learn that the only way to get through to you is to call relentlessly, leading to more interruptions, more delays, etc.
To increase your productivity, you should limit your accessibility and be fastidious in your responsiveness. Contrary to popular belief, though customers want you to be instantly accessible, most do not expect that you will be. They do expect you will respond within a reasonable period of time. That period is within 24 hours (or the same day if possible).
If you have a pager or cell phone, NEVER give the numbers to customers. Your staff are the only people who should have the numbers. If you give the numbers to a customer, that customer will take it as a license to contact you any time he/she pleases (including 4:00 am on a Saturday morning) and will be indignant if you don't answer or return the call within 3 minutes. From the customer's perspective, if you don't answer or call immediately, you are obviously ignoring them, which is a brazen insult. Though it seems like the ultimate in attentive service, giving customers your pager or cell phone number is almost guaranteed to inflame customer relations and cost you your sanity. You may as well just reserve your room at the asylum now.
It is estimated that for each interruption you have you lose 2 to 3 minutes of productivity on the matter from which you were diverted. Each time you return from an interruption you must take some time to reintegrate your mind with the original task. You have to answer the question, "Now, where was I?" If you have 10 interruptions a day, you spend 20-30 minutes a day answering that question. This translates to 80 to 120 hours a year in lost time and revenues just trying to find your place.
There is also the issue of your work product. Every business requires analysis, assimilation, problem solving and creativity. The more continuity you have in your thought processes, the better your work product will be. The more pushed you are for time, the more shortcuts you will be forced to take. Therefore, constant interruptions not only cost you time, but quality.
The key to producing more productive work is to understand the difference between accessibility and responsiveness.
Accessibility means the businessperson can be reached whenever the customer wants him/her. Though this is a great comfort and convenience to the customer, it is disruptive for the businessperson. Ultimately it is detrimental to the customer because it will cause the customer's work to take longer and the sum total of the interruptions will erode the integrity of the work product.
Responsiveness means the customer can depend on having a conversation with you in a reasonable period from the time from their call. It means you return calls promptly. Ironically, businesspeople that are highly accessible are often not very responsive. The result of being accessible is that they get so far behind, they don't have time to return calls. This exacerbates the problem because customers learn that the only way to get through to you is to call relentlessly, leading to more interruptions, more delays, etc.
To increase your productivity, you should limit your accessibility and be fastidious in your responsiveness. Contrary to popular belief, though customers want you to be instantly accessible, most do not expect that you will be. They do expect you will respond within a reasonable period of time. That period is within 24 hours (or the same day if possible).
If you have a pager or cell phone, NEVER give the numbers to customers. Your staff are the only people who should have the numbers. If you give the numbers to a customer, that customer will take it as a license to contact you any time he/she pleases (including 4:00 am on a Saturday morning) and will be indignant if you don't answer or return the call within 3 minutes. From the customer's perspective, if you don't answer or call immediately, you are obviously ignoring them, which is a brazen insult. Though it seems like the ultimate in attentive service, giving customers your pager or cell phone number is almost guaranteed to inflame customer relations and cost you your sanity. You may as well just reserve your room at the asylum now.
Wednesday, October 3, 2012
Be a Leader People Want to Follow
There is a real need for leaders to lose the pretense and posturing that is so common today in people with power. From government to industry, congressmen with ethics issues and heads of major corporations mishandling their roles, leaders seem to hold themselves to different standards then they hold those who they lead and represent. They foolishly live by… “do as I say, not as I do.”
Some of the greatest and most loved leaders of all times have been ‘just plain folks’ who were approachable, genuine, real, and down to earth. People want leaders that they can believe, relate to and who they know relate and care about them. It’s all about the people.
Sadly, the higher up in the leadership of anything the easier it becomes to become isolated and lose touch with the people who you are responsible for…. The people who depend on you and who you, in the end, depend on also.
By remaining humble and authentic anyone can face the challenges of leading effectively.
Prepared by the OED Content Committee
Some of the greatest and most loved leaders of all times have been ‘just plain folks’ who were approachable, genuine, real, and down to earth. People want leaders that they can believe, relate to and who they know relate and care about them. It’s all about the people.
Sadly, the higher up in the leadership of anything the easier it becomes to become isolated and lose touch with the people who you are responsible for…. The people who depend on you and who you, in the end, depend on also.
By remaining humble and authentic anyone can face the challenges of leading effectively.
Prepared by the OED Content Committee
Friday, July 6, 2012
Building (Business) Relationships Takes TIME
A major skill often requiring some fine-tuning with most entrepreneurs is the process of building relationships with prospective clients and future business associates BEFORE asking for the sale or discussing business participation specifics.
Most entrepreneurs are taught to talk to anyone and everyone they know and meet as soon as they can, about their new business BEFORE someone else gets to them first. This goes against all good business logic.
People do business with those they know, like and trust. New prospects need more than a first meeting to know, like and trust you. In all businesses, it takes time to build relationships that are mutually beneficial.
Be professional, focus on your goals and create a reason for people to do business with you – PERSONALLY!
Most entrepreneurs are taught to talk to anyone and everyone they know and meet as soon as they can, about their new business BEFORE someone else gets to them first. This goes against all good business logic.
People do business with those they know, like and trust. New prospects need more than a first meeting to know, like and trust you. In all businesses, it takes time to build relationships that are mutually beneficial.
Be professional, focus on your goals and create a reason for people to do business with you – PERSONALLY!
Tuesday, May 22, 2012
Why Small to Medium Sized Businesses Can Benefit From an Outside Perspective
Most business owners are really GREAT at their ‘business’ but find the ‘business of business’ tedious.
Using an outside business expert can:
Using an outside business expert can:
1. Free the owner to do what they love, do what they do best, and work ON the company!
2. Bring a fresh view and perspective to a business. Fresh eyes can often see better than those focused on the trees rather than the forest.
3. Supply expert advice and assistance for far less than then cost of an employee OR the owners time. Better known as the ‘economy of knowledge’ because the client gets the benefit of using an advisor for a fraction of the cost of any employee.
4. Accomplish the correction of issues and the capture of opportunities quicker than using inside resources. Outside experts are: experienced, objective, accountable and results oriented.
5. Finally have someone other than themselves who has the owners and the businesses best interests at heart.
Thursday, May 3, 2012
The customer is always right?
You've heard it said, "The customer is always right."
Well, that is not necessarily true.
Customers are the lifeline of your business. Without them, your business will simply dry up and die. Without them you don’t have a business. It's important for you to take good care of them.
But know that…. if you own a business, just as sure as the sun will rise, there will be problems. Not necessarily many, but some. And… they will not always be your fault or be in your control!
The first time most business owners receive a complaint, they are devastated and take it personally. It is important not to do that.
If you work with people, there are going to be problems. Be professional in dealing with them, do everything you can (even if the problem was out of your control) to correct the problem.
Once you have done everything you can to take care of any problem, then consider it closed and let it go!
Well, that is not necessarily true.
Customers are the lifeline of your business. Without them, your business will simply dry up and die. Without them you don’t have a business. It's important for you to take good care of them.
But know that…. if you own a business, just as sure as the sun will rise, there will be problems. Not necessarily many, but some. And… they will not always be your fault or be in your control!
The first time most business owners receive a complaint, they are devastated and take it personally. It is important not to do that.
If you work with people, there are going to be problems. Be professional in dealing with them, do everything you can (even if the problem was out of your control) to correct the problem.
Once you have done everything you can to take care of any problem, then consider it closed and let it go!
Sunday, April 29, 2012
The Four Components of Every Marketing Effort
There are four components to every marketing effort. All four of these key components must be given careful consideration—for each can cause the failure or success of your marketing.
The Product
The Message
The Prospect
The Media
Consistently successful marketing requires knowledge and mastery of these four factors that, together, can produce the desired results.
Rating the Four Marketing Components
PRODUCT – You have to do your research.
Is the product or service you're offering going to meet an existing need or demand?
Who needs or demands it?
You must know the exact demand or need you are trying to fill.
Can the product be priced profitably and competitively?
Does the product offer value?
How about quality?
Do the best you can to objectively evaluate your product—from the prospect's point of view.
MESSAGE – This includes the offer you're making (FREE booklet, bill me, FREE gift w/order, etc.), how you say it (the words), and how you present it (design elements).
Have you made an enticing offer?
Does your headline grab the attention of your hottest prospects?
Have you made your promotion look uncluttered, easy to read, professional?
Once again, you must put yourself in your prospect's shoes. How will your message be perceived by them?
PROSPECT – Who are the best candidates for your product or service?
Will apartment dwellers be interested in your lawn tractors? Not a chance.
Will the small business owner who spends only $2,000 per year on
marketing be interested in my consulting services? Probably not.
Sending the right message about the right product to the wrong prospect can be a total waste.
MEDIA – How will you get your message in front of your hottest prospects?
Direct mail?
TV? Radio?
Print ads?
This element of your marketing is just as important as the other four. Spending the money for a professionally written and designed ad will do you no good if you place it in the wrong publication.
How sure are you of the media you've selected?
Have you had success with them in the past, or are they untested for you?
Are detailed demographics available?
Do the best you can to rate your overall confidence in the media you plan to use.
In general, people want to spend money, be affluent and feel good.
People do not want to budget or be austere. They do not want to be involved with things that require work, cause risk to what they already have, or that are time consuming.
Use this knowledge to rate the four components of all your marketing efforts, then make needed adjustments as are indicated by the formula. You'll be amazed what happens to your response rate!
The Product
The Message
The Prospect
The Media
Consistently successful marketing requires knowledge and mastery of these four factors that, together, can produce the desired results.
Rating the Four Marketing Components
PRODUCT – You have to do your research.
Is the product or service you're offering going to meet an existing need or demand?
Who needs or demands it?
You must know the exact demand or need you are trying to fill.
Can the product be priced profitably and competitively?
Does the product offer value?
How about quality?
Do the best you can to objectively evaluate your product—from the prospect's point of view.
MESSAGE – This includes the offer you're making (FREE booklet, bill me, FREE gift w/order, etc.), how you say it (the words), and how you present it (design elements).
Have you made an enticing offer?
Does your headline grab the attention of your hottest prospects?
Have you made your promotion look uncluttered, easy to read, professional?
Once again, you must put yourself in your prospect's shoes. How will your message be perceived by them?
PROSPECT – Who are the best candidates for your product or service?
Will apartment dwellers be interested in your lawn tractors? Not a chance.
Will the small business owner who spends only $2,000 per year on
marketing be interested in my consulting services? Probably not.
Sending the right message about the right product to the wrong prospect can be a total waste.
MEDIA – How will you get your message in front of your hottest prospects?
Direct mail?
TV? Radio?
Print ads?
This element of your marketing is just as important as the other four. Spending the money for a professionally written and designed ad will do you no good if you place it in the wrong publication.
How sure are you of the media you've selected?
Have you had success with them in the past, or are they untested for you?
Are detailed demographics available?
Do the best you can to rate your overall confidence in the media you plan to use.
In general, people want to spend money, be affluent and feel good.
People do not want to budget or be austere. They do not want to be involved with things that require work, cause risk to what they already have, or that are time consuming.
Use this knowledge to rate the four components of all your marketing efforts, then make needed adjustments as are indicated by the formula. You'll be amazed what happens to your response rate!
Sunday, April 22, 2012
What is Marketing Research?
"The secret to success is - find out where the people are going and get there first." - Mark Twain
Basically, marketing research is just what the merchant did with the peanuts. Find out what catches customers' attention by observing their actions and drawing conclusions from what you see. To put it more formally, in the words of the American Marketing Association, marketing research is "the systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services."
Marketing research is an organized way of finding objective answers to questions every business must answer to succeed. Every business owner-manager must ask:
Who are my customers and potential customers?
What kind of people are they?
Can and will they buy?
Am I offering the kinds of goods or services they want - at the best place, at the best time, and in the right amounts?
Are my prices consistent with what buyers view as the products' values?
Are my promotional programs working?
What do customers think of my business?
How does my business compare with my competitors?
Marketing research is not a perfect science; it deals with people and their constantly changing likes and dislikes which can be affected by hundreds of influences, many of which simply can't be identified. Marketing research does, however, try to learn about markets scientifically. That simply, is to gather facts in an orderly, objective way; to find out how things are, not how you think they are or would like them to be; what people want to buy, not just what you want to sell them.
Why Do It?
It's tough - impossible - to sell people what they don't want. (Remember the Nehru jacket?) That's pretty obvious. Just as obvious is the fact that nothing could be simpler than selling people what they do want. Big business has to do market research to find that out. The same reason holds for small business.
Business owners often have a "feel" for their customers - their markets - that comes from years of experience. Experience can be a two-edged sword, though, since it comprises a tremendous mass of facts acquired at random over a number of years.
Information about markets gained from long experience may no longer be timely enough to base selling decisions on. In addition, some "facts" may be vague, misleading impressions or folk tales of the "everybody knows that..." variety.
Marketing research focuses and organized marketing information. It ensures that such information is timely. It provides what you need to:
Reduce business risks,
Spot problems and potential problems in your current market,
Identify and profit from sales opportunities,
Get basic facts about your market to help you make better decisions and set up plans of action.
Basically, marketing research is just what the merchant did with the peanuts. Find out what catches customers' attention by observing their actions and drawing conclusions from what you see. To put it more formally, in the words of the American Marketing Association, marketing research is "the systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services."
Marketing research is an organized way of finding objective answers to questions every business must answer to succeed. Every business owner-manager must ask:
Who are my customers and potential customers?
What kind of people are they?
Can and will they buy?
Am I offering the kinds of goods or services they want - at the best place, at the best time, and in the right amounts?
Are my prices consistent with what buyers view as the products' values?
Are my promotional programs working?
What do customers think of my business?
How does my business compare with my competitors?
Marketing research is not a perfect science; it deals with people and their constantly changing likes and dislikes which can be affected by hundreds of influences, many of which simply can't be identified. Marketing research does, however, try to learn about markets scientifically. That simply, is to gather facts in an orderly, objective way; to find out how things are, not how you think they are or would like them to be; what people want to buy, not just what you want to sell them.
Why Do It?
It's tough - impossible - to sell people what they don't want. (Remember the Nehru jacket?) That's pretty obvious. Just as obvious is the fact that nothing could be simpler than selling people what they do want. Big business has to do market research to find that out. The same reason holds for small business.
Business owners often have a "feel" for their customers - their markets - that comes from years of experience. Experience can be a two-edged sword, though, since it comprises a tremendous mass of facts acquired at random over a number of years.
Information about markets gained from long experience may no longer be timely enough to base selling decisions on. In addition, some "facts" may be vague, misleading impressions or folk tales of the "everybody knows that..." variety.
Marketing research focuses and organized marketing information. It ensures that such information is timely. It provides what you need to:
Reduce business risks,
Spot problems and potential problems in your current market,
Identify and profit from sales opportunities,
Get basic facts about your market to help you make better decisions and set up plans of action.
Saturday, March 17, 2012
Why Do a Marketing Plan?
A marketing plan outlines everything you will do to market your business, in what order, and when. The time and effort spent developing your marketing plan is a good investment.
An effective marketing plan does the following:
Identifies and explores the strengths and weaknesses of your company, its products, or services
Examines, based on these strengths and weaknesses, the opportunities and threats that exist in the marketplace
Forces you to focus on the needs of your customers and potential customers
Allows you to anticipate and plan for changing market trends, consumer demands, and changes of your competitors
Helps you reach company goals within your budget
Forms an essential part of your business plan
An effective marketing plan does the following:
Identifies and explores the strengths and weaknesses of your company, its products, or services
Examines, based on these strengths and weaknesses, the opportunities and threats that exist in the marketplace
Forces you to focus on the needs of your customers and potential customers
Allows you to anticipate and plan for changing market trends, consumer demands, and changes of your competitors
Helps you reach company goals within your budget
Forms an essential part of your business plan
Wednesday, February 16, 2011
What makes a great ad?
The answer is almost too simple.
A good ad is one that works. Your phone rings. Buyers walk through your store door. Your salespeople have prospects to see. Your e-mail order forms are full.
On the other hand, bad advertising is one of the most disappointing experiences a small business can have. You spend your hard-earned ad dollars with high hopes, only your hopes and expectations dashed with a complete lack of response.
Here are three critical items to keep in mind to make your ads draw customers and sales:
1. Figure out what means the most to your best prospects. What do you offer that they'll value most? State that best benefit clearly and prominently in your ad. If you've got lots of space or radio time, repeat your benefit at least three times.
2. Tell your prospect to buy. Ads that don't come right out and ask for the sale usually fall short. Tell your prospect to buy, why they should buy, how they should buy, and when to buy. Take a look at pricey ads designed for big companies. They almost always tell you exactly who they think needs their product or service, which store or web site you can buy it from, how to get to that location, what kind of cards or financing they take, and when the offer will begin and end.
3.Finally, pick your advertising media carefully. Don't advertise a specialty service for a particular industry in your daily newspaper unless your town is dominated by that particular industry. Instead, chose a trade publication that specifically targets that one industry.
4.Simple? Yes it is, as long as you make the whole advertising process a real PROCESS!
Do a features, advantages and benefits work-up and determine your key benefits.
Talk to you customers and find out why THEY buy.
Use professionals where you can – they can save you hours and dollars by helping you develop a process that works and once it’s developed – you have it forever.
A good ad is one that works. Your phone rings. Buyers walk through your store door. Your salespeople have prospects to see. Your e-mail order forms are full.
On the other hand, bad advertising is one of the most disappointing experiences a small business can have. You spend your hard-earned ad dollars with high hopes, only your hopes and expectations dashed with a complete lack of response.
Here are three critical items to keep in mind to make your ads draw customers and sales:
1. Figure out what means the most to your best prospects. What do you offer that they'll value most? State that best benefit clearly and prominently in your ad. If you've got lots of space or radio time, repeat your benefit at least three times.
2. Tell your prospect to buy. Ads that don't come right out and ask for the sale usually fall short. Tell your prospect to buy, why they should buy, how they should buy, and when to buy. Take a look at pricey ads designed for big companies. They almost always tell you exactly who they think needs their product or service, which store or web site you can buy it from, how to get to that location, what kind of cards or financing they take, and when the offer will begin and end.
3.Finally, pick your advertising media carefully. Don't advertise a specialty service for a particular industry in your daily newspaper unless your town is dominated by that particular industry. Instead, chose a trade publication that specifically targets that one industry.
4.Simple? Yes it is, as long as you make the whole advertising process a real PROCESS!
Do a features, advantages and benefits work-up and determine your key benefits.
Talk to you customers and find out why THEY buy.
Use professionals where you can – they can save you hours and dollars by helping you develop a process that works and once it’s developed – you have it forever.
Saturday, February 12, 2011
Success
"Change your thoughts and you change your world." - Norman Vincent Peale
"When I was young, I observed that nine out of ten things I did were failures. So I did ten times more work." - George Bernard Shaw
“The person who chooses to try something and fails is a far greater person than the person who chooses to try nothing and succeeds!”
“The difference between the successful person and the unsuccessful person is that the successful person is willing to do that which the unsuccessful person is not!”
"When I was young, I observed that nine out of ten things I did were failures. So I did ten times more work." - George Bernard Shaw
“The person who chooses to try something and fails is a far greater person than the person who chooses to try nothing and succeeds!”
“The difference between the successful person and the unsuccessful person is that the successful person is willing to do that which the unsuccessful person is not!”
Wednesday, February 9, 2011
Time Management and the Business Owner - The 13 Month Year
Time! It can be your worst enemy or your best friend...depending on how well you manage it. The successful business owner recognizes it as his or her most precious asset.
Time in perspective: We all get the same allotment of 24 hours each day. For the disorganized who squander their time, letting it slip through their fingers, it is an enemy. But for those who know how to marshal time to their advantage, it is a good friend. It allows them a comfortable pace all week, to take weekends off, to enjoy their families, and still accomplish twice as much as the rest of the world.
Time offers a special challenge for the business owner. That's because the job appears never to be done. The lucky ones get burnout; others get heart attacks. It's no way to live. And it's certainly no way to run a business.
For a business owner, time management is not just a nice idea. It's the cornerstone for building better, stronger, faster and more profitable business.
To improve both the quality and the quantity of the time available to you each working day, follow these simple guidelines:
1. Do a "time audit." Using 15-minute intervals, record how you make use of your time during a typical work day. A common complaint of many business owners is that they don't have enough time to get everything done. However, simply conducting a time audit from time to time will generally show a number of easy-to-correct time wasters.
2. Establish priorities and measurable goals. If you don't know what you want to achieve, then it doesn't matter what you do to achieve it. Without priorities and goals, every action is a time waster.
3. Eliminate busy work, tasks you simply don't need to do...all things that do not lead either directly or indirectly to your business's growth and profitability. Look for ways to cut unnecessary steps out of work routines. If it isn't important, don't do it. Every action during work time should be goal-directed -- whether it's a phone call to a supplier, business meeting or a golf game. If it's not, stop doing it.
4. Invest in daily planning. Taking just ten minutes each day to map out projects and tasks on a "To Do" list can save hours of wasted time. Planning empowers you to move systematically through the important tasks of the day without wondering what to do next. Caution: Don't make the common mistake of planning out every minute. Leave a little open time to handle the unexpected. Otherwise, you'll end up playing a frantic game of catch-up day after day.
5. Delegate! Delegate! Delegate! If you're like most business owners, you have a difficult time letting things out of your grasp. But that's exactly what you must train yourself to do. Delegate everything you can...not simply what you must. Not only will you have more time for things that only you can handle, but your business will profit, as well.
6. Make a pledge to never work weekends or evenings. This forces you to structure your time more efficiently...and allows you to enjoy some of the benefits of the life you are working to build.
7. Live in two distinct worlds. When you work, focus all your attention on the business of business and maintain a strong, demanding pace. But when you break from work, break completely. This means no briefcases home on weekends or even thinking about work when you should be relaxing. Instead, make your free time really free. This will improve the quality of work time and family time.
8. Add time to your day by coming in a bit earlier each morning or by cutting out such time wasters as television in the evening. You'll be amazed how it can pay off. Try building what's called the 13-month year.
The 13-month year: There's only so much you can do to make your time usage more efficient. Once you crank up the quality, add some quantity, as well. Say you are currently working eight hours a day...from eight to five, with an hour break for lunch.
Add a single extra hour each day. There are plenty of places to find the time without impacting your personal time. Start an hour earlier, stay an hour later, divide up two half hours at the start and end of the day, or cut your lunch hour in half. Just make sure you don't slice into family time or weekends... which are crucial for recharging your batteries.
The results can be incredible. Adding just one hour a day means five extra hours a week or an average of 22 hours more a month. If you normally take four weeks vacation, this single hour each day can generate an extra month of business productivity...plus an additional two weeks vacation.
The bottom line: You don't have to become a time management expert to capitalize on the benefits of more effective use of your time. But keep in mind that the better you become at organizing yourself and your time, the more you will improve the odds that you will achieve your goals and keep your business both productive and profitable. Because time is more than money. Time -- specifically, how well you use it -- is a key element of long-term business success...and personal satisfaction.
Time in perspective: We all get the same allotment of 24 hours each day. For the disorganized who squander their time, letting it slip through their fingers, it is an enemy. But for those who know how to marshal time to their advantage, it is a good friend. It allows them a comfortable pace all week, to take weekends off, to enjoy their families, and still accomplish twice as much as the rest of the world.
Time offers a special challenge for the business owner. That's because the job appears never to be done. The lucky ones get burnout; others get heart attacks. It's no way to live. And it's certainly no way to run a business.
For a business owner, time management is not just a nice idea. It's the cornerstone for building better, stronger, faster and more profitable business.
To improve both the quality and the quantity of the time available to you each working day, follow these simple guidelines:
1. Do a "time audit." Using 15-minute intervals, record how you make use of your time during a typical work day. A common complaint of many business owners is that they don't have enough time to get everything done. However, simply conducting a time audit from time to time will generally show a number of easy-to-correct time wasters.
2. Establish priorities and measurable goals. If you don't know what you want to achieve, then it doesn't matter what you do to achieve it. Without priorities and goals, every action is a time waster.
3. Eliminate busy work, tasks you simply don't need to do...all things that do not lead either directly or indirectly to your business's growth and profitability. Look for ways to cut unnecessary steps out of work routines. If it isn't important, don't do it. Every action during work time should be goal-directed -- whether it's a phone call to a supplier, business meeting or a golf game. If it's not, stop doing it.
4. Invest in daily planning. Taking just ten minutes each day to map out projects and tasks on a "To Do" list can save hours of wasted time. Planning empowers you to move systematically through the important tasks of the day without wondering what to do next. Caution: Don't make the common mistake of planning out every minute. Leave a little open time to handle the unexpected. Otherwise, you'll end up playing a frantic game of catch-up day after day.
5. Delegate! Delegate! Delegate! If you're like most business owners, you have a difficult time letting things out of your grasp. But that's exactly what you must train yourself to do. Delegate everything you can...not simply what you must. Not only will you have more time for things that only you can handle, but your business will profit, as well.
6. Make a pledge to never work weekends or evenings. This forces you to structure your time more efficiently...and allows you to enjoy some of the benefits of the life you are working to build.
7. Live in two distinct worlds. When you work, focus all your attention on the business of business and maintain a strong, demanding pace. But when you break from work, break completely. This means no briefcases home on weekends or even thinking about work when you should be relaxing. Instead, make your free time really free. This will improve the quality of work time and family time.
8. Add time to your day by coming in a bit earlier each morning or by cutting out such time wasters as television in the evening. You'll be amazed how it can pay off. Try building what's called the 13-month year.
The 13-month year: There's only so much you can do to make your time usage more efficient. Once you crank up the quality, add some quantity, as well. Say you are currently working eight hours a day...from eight to five, with an hour break for lunch.
Add a single extra hour each day. There are plenty of places to find the time without impacting your personal time. Start an hour earlier, stay an hour later, divide up two half hours at the start and end of the day, or cut your lunch hour in half. Just make sure you don't slice into family time or weekends... which are crucial for recharging your batteries.
The results can be incredible. Adding just one hour a day means five extra hours a week or an average of 22 hours more a month. If you normally take four weeks vacation, this single hour each day can generate an extra month of business productivity...plus an additional two weeks vacation.
The bottom line: You don't have to become a time management expert to capitalize on the benefits of more effective use of your time. But keep in mind that the better you become at organizing yourself and your time, the more you will improve the odds that you will achieve your goals and keep your business both productive and profitable. Because time is more than money. Time -- specifically, how well you use it -- is a key element of long-term business success...and personal satisfaction.
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