Thoughtful Thursdays - A process to consider when looking to avoid wasting time

In recent posts the subject of time has been discussed from the point of view of being in control of your time and potential cost implications to a prospect for a delaying decision.

Time is arguably one of your most valuable resources and today's thought focuses on how you might go about saving some.

When was the last time you took a good look at your sales process? Mapping it out is the first step to discovering how and where your time is spent. The goal is not to produce a detailed map as soon as possible, but to improve your understanding, identify opportunities for improvement and solve problems.

You have suppliers and inputs. Add work and you produce outputs that must meet customer requirements. The work is the process you want to map out. You may want to start keeping a log of your time and activities to be sure no steps are left out or taken for granted. Review of previous experiences is another source for this information.

Once you have a list of steps, add major decision points and any loops and support activities that may be part of the process. Take a look at the map as it is developed and walk through it to validate it and make any changes that are appropriate. At this point begin looking for things in your process that are done again.

HINT: LOOK FOR THE THE PREFIX "RE"

• Repeat
• Recheck
• Reenter
• Redesign
• Retest
• Rewrite
• Redo
• Return

These are the steps you want to examine in detail and potentially eliminate.

You can quantify your potential time savings by applying a timeline to the steps in your process. Some of the "re" steps e more worthwhile working on than others. When you do not have a definitive time for a particular step, take a best case and worse case approach. Use the best case as your target. The difference between the best and worst case is your opportunity for improvement.

Accurately mapping out your processes and follow up analysis can yield tremendous savings in time.

Good selling,
Richard

Thoughtful Thursdays - Is time your friend or foe?

In recent weeks I have experienced a common point of discussion in meetings with my clients.  I would like to share it with you today.

It is the age old issue of running out of time. A colleague says, and I agree, that it is endemic to new business owners.  I would also take it a step further and add that at some point everyone experiences the feeling of having too much to do and not enough time to do it. Time becomes the foe rather than friend.

Some seem to be able to achieve an incredible volume of productive activity in a given time and others are overwhelmed and become paralyzed.

It may be that your expectations of what can be accomplished in a certain amount of time are unreasonable. This can lead to over booking yourself and the result will be that you are not able to cross every task of your list. You might benefit from reviewing your processes and re-mapping them to determine total effort and duration required.

You may be allowing more than enough time, but distractions cause delays. It is worthwhile to analyze the source of the distractions and put helpful routines in place. As an example, you may want to block off parts of your day for uninterrupted work. During that time you do not answer the phone or take other meetings. Stopping and re-starting can be a real time eater. This time is dedicated to a particular task. If you do this, you want to schedule times when you check voicemail and return calls. Working from a home office requires added discipline to minimize the effect of the numerous distractions that inevitably surface on a daily basis.

Events not in your control are more difficult to address as they often cause a well timed process to be compressed. Depending on the root cause, you may be able to negotiate for additional time and it is worth having that discusssion.

By adopting routines that work to put you in control of your time it can turn it into a best friend. Time does not have to be your foe if used wisely like any other valuable resource.

Good selling,
Richard

Thoughtful Thursdays - It's that time of year again

As the calendar year draws to an end, there is no better time for many businesses to review performance versus plan for the previous 12 months and confirm objectives and strategies for the next 12 months. Enjoy your successes and set the plans for continued growth.

For owner/operated or micro businesses it means exchanging the tactical mindset of day to day operations to strategic thinking of a business owner. Using the information gained from the field during the past year and developing insights to create plans and objectives for the next.

Block off an adequate amount of time and do not let anything change that schedule. To avoid being distracted you may want to do this outside of your office, especially if you are home based. I believe it is also a good practice to ask peers for objective feedback.

Respect the exercise, each part of your business, marketing, operations and finance, are depending on you to set the course for sustainable growth.

Maintain sight of the vision you have for your business and ensure that your objectives, strategies and tactics are working in tandem to achieve that vision.

Good selling,
Richard

Thoughtful Thursdays - Get it in writing

Today's thought stems from working with business owners who are also new to business and one of the avoidable issues that arises with more regularity than one might think - getting paid on time

A business infrastructure detail that is often left on the back burner by small and micro business owners is Terms and Conditions of Sale. In the excitement of getting orders followed by operational demands required to fulfill those orders, the finance manger's hat is often left alone on the rack, and does not get dusted off until suppliers begin demanding payment and you find yourself having trouble collecting receivables.

It can be difficult even when all the documentation is in place, but without signed sales agreements or contracts the task of collecting what is owed can take months or even years.

Before you go through the list of convenient reasons for not using agreements or contracts such as:

• We don't need a contract, I know them
• I don't want to risk losing the customer with extra paper work
• Legal fees to draw up documents are too high
• A handshake is good enough for me
• We understand each other
• I trust them

Think about how much it might cost you if you do not have documentation in place. Is it worth the risk?

Good selling,
Richard

Thoughtful Thursdays - How's the bottom line?

Over the years I have witnessed apparently successful businesses exit the market place. Many reasons are given, but in the end, if it was not a planned exit, it came down to insufficient cash resources to run the business.

Today's thought is about maintaining margins as costs continue to rise.

Continued non-response to increasing costs will put the profitability of your business at risk. Small business owners often absorb increases for fear of loosing their customers if they raise prices. If the market is unwilling to accept a price increase, then the business must find a way to reduce their costs.

A thorough examination of operations including mapping of all processes will provide a good indication of where improvements might be implemented, the result being in cost reduction. This should be done on an ongoing basis to keep costs under control. Owner operated businesses are often so busy managing day to day activities, this type of exercise pushed aside.

Do not use the excuse of "We might loose the customer if we raise our prices" to avoid taking the time to accurately nail down your costs, do your homework. Recall how hard you worked to get your customers. Reinforce the value of doing business with you and if a price increase is justified the chances of successfully implementing it will be greatly increased.

Reduced profit margins are every business owner's concern.

Good selling,

Richard

Thoughtful Thursdays - Damage control

Once in a while best laid plans go off the rails. In a worst case scenario the reputation of your business can be damaged and image re-building is the order of the day.

A recent group discussion based on an Moneyville article brought to light a situation where a business appears to be experiencing a loss of customer confidence.

Without knowing all the details, it looks like a promotion may not have considered the possibility of success beyond expectations, and as a result there are unhappy customers.

Today's thought focuses on how one might initiate damage control when something like this happens.

Although it may seem to be a good time to panic, don't. Many companies have experienced similar consequences of actions and survived to talk about it. In several cases they have come out of these situations with stronger customer confidence.

Being honest with your customer is the common theme in turning bad into good. Do your homework, assess the situation and tell them how you plan to fix it. Clearly communicate the action plan to your employees and then tell your customers. Don't keep anyone guessing. The success of repairing any damage will rest on the precise execution of the plan, so be involved and measure the results. Talk to your customers, be prepared to listen and show that you care.

Next week - how to avoid getting into this kind of situation.

Good selling,
Richard

Thoughtful Thursdays - Are you an 'X', or the in the business of 'X'?

A simple enough question, I had two meetings this week where the subject came up. The objection my clients were faced with was the perception that they were the business and therefore limited in what could be delivered.

In order to change that perception these business owners must clearly articulate to their customers that they are in business. I have seen this happen before and have the following suggestion to address the objection.

Focus on your business, the services that can be provided and the value in dealing with you. Increase the customers comfort level in choosing your business as the provider of choice. You represent the business, not the other way around.

Larger businesses have employees and many use sub-contractors on a routine basis. Your business is no different. You can not be an expert in every area, that is why you use outside support.

If freelancing is not where you want to be, put your business owner's hat on and be in business.

Good selling,
Richard

Thoughtful Thursdays - Look before you leap

Sales are excellent and thoughts of opening a second location begin to creep into your thoughts more frequently. Your customers are encouraging you to expand. To top it off there is a space available in an area that appeals to you and preliminary research indicates this could be a great spot to be located.

Before you make any commitments to expanding your business, ask yourself one important question.

Can the original location run successfully if you are not there?

If you are not able to leave location number one to run on its own, the business is not likely ready to expand successfully to a second location. Have all the bugs worked out before venturing forward, you can not afford to be distracted while getting a second location on its feet.

Think back to when you first opened for business. How much time did you spend starting up and getting to where you are today? Many businesses struggle after expanding because they were not ready and the owner ends up with two under performing locations that split time commitments.

Don't let your vision be clouded by unrealistic expectations and false visions of grandeur. Take the time and be sure your processes and procedures are well documented and working. Talk to other business owners who have successfully grown to multiple locations and seek their advice on the subject.

Don't take anything for granted and increase your chances of a successful expansion.

Good selling,
Richard

Thoughtful Thursdays - Managing Sales Growth

Congratulations for exceeding company sales projections again for third quarter in a row! Even better news is that the growth trend is expected to continue.

 

So what will you do with this increase in cash flow - or is your cash flowing better? When was the last time you checked? Too busy to do it, assuming that it must be good because the top line is growing?

 

Assume nothing, especially when it comes to cash. There are questions that require answers:

• Do you know how the increase in sales activity has affected your variable costs?
• Operationally, are efficiencies what they need to be?
• When was the last time you reviewed business operations?
• Has fast growth created "hidden factories"? These are wasteful inefficient activities that may develop as a result of unchecked growth, in the name of getting product out the door to satisfy customer demand?
• Are your accounts receivable current?
• Are they increasing faster than sales? This is not good.
• Are your accounts payable current?
• Do you know why your business is growing so fast?
• If your growth is due to your customer's growth, have you run a credit check lately
• Do you know why they are growing?
• Is your customer list growing faster or slower than sales might indicate?
• How is your sales force dealing with the increase in business?
• Are they reaching capacity?
• Do they need help?

It requires more than good sales numbers to have a sustainable and profitable business. Each of the pillars of your business; Marketing, Operations and Finance, need sound management.

Block off time to review and analyze each part of your business on a regular basis. It will pay off in the long run.

Good selling,

Richard