Do You Have A Business Strategy in Place?

64521313There are some small business owners that started their business out of necessity; they got laid off, they got fired, or they did not agree with the ideology of the new management.Whatever the reasons they had to start their own business, they believe that the road to success was possible through this venue. There are probably many entrepreneurs that made it, but some are still wondering what went wrong. Being a small business owner requires you to do many “jobs” daily. The task is not easy, and the time you seem to require to accomplish those tasks seem to grow bigger every day. Time management is an important factor for every entrepreneur, planning and executing tasks on time are of the utmost importance for the success of your company. Are you having trouble finishing your tasks daily? Is your strategy for your business not even in place? Read the following articles below for more information about this topic.


Stop Thinking Long Term. Execute Strategy 90 Days at a Time.

Most savvy executives fully understand the value and necessity of doing strategic thinking and planning. After all, the saying goes, “Without a map every direction looks good.”

There are many well-known planning tools for businesses to use as guides, such as Jim Collins and Jerry Porras’ Big Hairy Audacious Goal, a blueprint for helping enterprises hone in on an objectiveor Michael Porter’s Five Factor Analysis.

But while planning tools are very appropriate for defining the current state of a company as well as its desired future state, they rarely include a process for getting there.

Envisioning where your company will be in the future is important but the companies that are really great at executing their long-term vision do it 90 days at a time, focusing on bite-size pieces of progress that everyone in the company can understand and work toward collectively.


10 secrets of success for small business

What do you want to achieve in 2015 for your small business? The beginning of January is the time for New Year’s resolutions, so here are my top 10 resolutions for small-business owners and entrepreneurs.

  • Focus on recurring revenue.You may be thrilled to find any source of income, but some types of customers contribute more significantly to your long-term financial well-being. Focus foremost on customers who have the need and capacity to buy from you repeatedly rather than one-off purchasers.
  • Limit your time on social media.Social media can eat up your day even when it’s for a business purpose. Establish a time limit (I’d say 30 minutes maximum), schedule it for a specific time each day and then click off and get back to work. To limit your time on social media, schedule your social media posts in advance using a social media management tool. We use Hootsuite (www.hootsuite.com). Others are Buffer (www.bufferapp.com) and TweetDeck (www.tweetdeck.com)

Dodge The Unknowns In Your Business

The New Year is a great time to challenge our assumptions concerning what we know about our businesses. A fresh look includes questioning whether business givens are all that accurate. You may be aware of Donald Rumsfeld’s famous comment about the dangers of the unknown:

But there are also unknown unknowns…the ones we don’t know we don’t know…it is the latter category that tend to be the difficult ones.

In the business world, the point of this idea is that we need to keep an eye out for those things we don’t know – but think we do. Bad assumptions lead to bad business judgments.

5 assumptions that can lead to bad outcomes

Paraphrasing to protect the innocent, these comments I heard in 2014 demonstrate the business risk of bad assumptions you can avoid in 2015.


Now is a Good Time to Reflect and Direct

business (10) The company party was a success, clients were feted, venders gave you more liquor than you will drink in all of 2015, vacations are over and people are settling back into their work routines.  If you have not already done so, now is an excellent time to think about and set your company goals for the coming year.  In addition, this is a good point in time to get input and by-in from your advisors, key people and employees.

This time of year is a window of opportunity, because, it is human nature to use milestones (i.e. the New Year, birthdays, anniversaries, holidays) as an occasion for people to look at themselves.  They reflect on where they have been and set goals for where they want to go.  They see these recognized, fixed points in time as a place to start anew, wipe the slate clean or correct past mistakes.

An effective manager will utilize this knowledge of their employee’s behavior and mindset.  He will use this insight to create focal points and manage the employees towards the company’s goals.  He takes advantage of people’s natural inclination to use a milestone as a starting place and rallying point.

Concerned that you missed the 1st?   Don’t be, it doesn’t matter; there are other milestones to use instead.  While the focus is usually on the New Year it does not have to be then – people can and do reflect, start fresh and commit to a goal at any time.  What matters is that it has a defining starting point.

Therefore, launching a new set of goals can be at the beginning of the fiscal year, the company’s anniversary, the July 4th picnic or Labor Day.  Monday is the most popular day of the week for people starting new goals and is shown to be the best day for kick-off, and benchmarking, meetings.

A successful manger will learn about and use his knowledge of human nature to reflect and direct.  He will use people’s natural proclivities for milestones (and benchmarks) to set and meet goals for the business.  As Warren Bennis (a pioneer in the field of leadership) once said, “Leadership is the capacity to translate vision into reality”.


Workplace Stress – Now is a Good Time to Pay Attention

business (1) The holidays are here and most likely your employee’s stress levels, which were high to begin with, have increased to ultimate, super high.  So why, as their manager, should you care?  Stress is a part of life and isn’t it the employees private concern on how they take care of it? The answer to that question is a resounding “no”.  An effective manager is aware of workplace stress and takes steps to deal with it.

People’s jobs typically require 40 to 50 hours a week – both at a worksite and, with the advent of personal electronic devises, at home during unofficial work time.  Their employment is a big part of most people’s lives, as is the stress which comes from it.  Personal stress and professional stress are linked and they influence each other more than ever.

A successful boss is aware of how workplace stress is an important part of an employee’s life and takes steps to relieve it.  Because, not only is it good stewardship, it’s important for the company’s bottom line.  A conservative estimate is that job stress costs businesses more than $300 billion a year (American Psychological Association, 2013).  Stress leads to absenteeism, diminished productivity, higher health care costs, and theft of property, time and money.

It also causes employees to quit their jobs; turnover is directly affected by stress.  Almost 1 in 4 people (24%) gave “too much stress” as a reason they would quit their job (Randstad, 2014).  Inadequate pay and limited opportunity for advancement were the only reasons that scored higher.  Unfortunately, pay and advancement are often something a supervisor can’t do anything about, particularly in a small business.

But, stress on the job is something she has power over, it can be controlled in many ways.  There are some fundamental time tested techniques, and some innovative ones which are geared to a particular worksite or type of employee.  Skilled mangers will learn and apply these ideas, because healthy stress reduction starts at the top and works its way down.

A supervisor’s negative viewpoint filters down and impacts the whole team.  Workers often identify their boss’s behaviors and attitudes as the primary stressors.  Now is a good time for managers to take an inventory of their own attitudes, as well as the employees.  Going into next year with the idea to increase the company’s bottom line through reducing workplace stress is a worthy personal and professional goal that everybody benefits from.


Does your Business Need Mentoring?

business (3)The value of mentoring for entrepreneurs has invaluable benefits to them according to research. Many businesses and young entrepreneurs have acquired insights through mentorship, and have learned from their mentors’ mistakes business acumen that will help them with their business and endeavors.  Business people coming out of an MBA program can benefit the greatest and make fewer mistakes by having a mentor that can guide them and direct them to the right path.


Ohio River Bridges Project means big business for local contractors

LOUISVILLE, Ky. (WDRB) — The Ohio River Bridges Project means big business for some local companies.

Major progress on the Ohio River Bridges Project and the reconfiguration of Spaghetti Junction is taking place. Cranes are up and cement is mixing. Four major components of the bridge project are: ready mix concrete, structural steel, aggregates and asphalt paving.
Advance Ready Mix is working on both the Downtown and East End Bridges. Business has been so good with this project, the company says it’s hiring more truck drivers.
“What percentage of your business is the Bridges Project?” WDRB’s Valerie Chinn asked.
“I’d say right now it’s 10-20 percent of ours,” said Chad Deters, sales manager for Advance Ready Mix. “We still have a lot of other work.”
“It came at a really good time when the economy was down,” Deters added. “It really kick-started our year last year and kept on rolling.”
The company was not working on the Bridges Project when a woman was killed in the crosswalk on the Louisville side of the Clark Memorial Bridge at Second and Main by an Advance Ready Mix truck.


Business mentoring franchise expands to serve Springfield, northwest Ohio

A business mentoring concept has opened a second location to serve northwest Ohio and the Springfield area.

The Alternative Board — a concept of business advisory and executive business coaching boards — is forming another franchise based in Russia (Shelby County), which will serve the northwest of the state. Ed Miller, a longtime consultant, is the owner of The Alternative Board of Northwest Ohio.

“The fact you’re dealing with decision makers and CEOs in this concept, it appeals to the intellectual and academic side, this type of concept,” Miller said.

The board will likely attract businesses in the manufacturing and professional services industries, but its goal is to bring in business leaders from multiple industries to provide many perspectives similar to a board of directors for smaller companies in the $1 million to $8 million revenue range that might not have an established group of mentors.


Support for minority businesses costing Ohio taxpayers

Consumers know you pay more when you buy a product through a middleman who must mark up the price to make a profit.

State government, by its own design, is spending hundreds of thousands of additional taxpayers’ dollars with middlemen as part of its quest to support minority businesses.For many years, when state purchasing officials needed software from Microsoft, they placed orders with two of the company’s authorized resellers.

Now, state agencies buy software through three middlemen created by a contract through which they resell the resellers’ software to the state, an investigation by The Dispatch finds. The minority-business enterprises (MBEs) relay orders to the resellers while tacking on fees of 3 to 4.75 percent of the cost, increasing the expense to the state.


Women In Business

business (10)There are more than 9 million companies that are owned by women.  They employee close to 8 million people, and together they accomplished sales close to 1.5 trillion dollars as of this year. With those statistics one wonders why it is still hard for a business woman to get a loan from a bank or get the same benefits than their male counterparts get. To read more about this topic and to read more about Ohio’s economy outlook, follow the links below.


Ranking state economies: See where Ohio falls

Ohio’s economy is something of a mixed bag, at least according to Business Insider, which has ranked all 50 states.

The Buckeye State ranks No. 25.

Here’s what Business Insider has to say about Ohio:

“Ohio has a disproportionate number of manufacturing and health services jobs. However, Ohio’s scores on our measures were very much a mixed bag:

On the bright side, Ohio’s unemployment rate dropped sharply over the past year, from 7.4% in June 2013 to 5.5% in June 2014.

The housing market in Ohio, on the other hand, is not recovering as quickly as it is in many other states. Ohio saw a small 0.1% drop in housing prices between Q1 2013 and Q2 2014.

Similarly, Ohio faces demographic challenges, with the working age population shrinking by a marginal 0.1% between 2012 and 2013, one of only 13 states to show a decline in this population.


Women small business owners struggle to get loans

NEW YORK (AP) — Women are a growing force in the business world, but if they own a company, they may still struggle to get a loan from a bank.

Carrie Charlick and Marcia Cubitt have $4 million in sales but have been rejected for $500,000 credit lines since 2012. Their 11-year-old company, Essential Body Wear, sells women’s underwear at parties at customers’ homes. That’s a problem for bankers, Charlick says. Because the Detroit-based business doesn’t have a traditional structure and sells directly to the public rather than retailers, banks keep saying no.

“We don’t have receivables and we don’t own a building,” she says. “We don’t have collateral.”

Male loan officers have also made inappropriate comments about the fact the company sells lingerie. Charlick is convinced that they have a problem with women-owned businesses.

Women owners have long been at a disadvantage getting loans. Some states required husbands or other male relatives to co-sign business loans until the practice was outlawed by the Women’s Business Ownership Act of 1988. But women’s business loan approval rates are between 15 percent and 20 percent below men’s, according to the online lending marketplace Biz2Credit.com.

Several factors contribute to the problem. Banks historically have been gun-shy about small businesses, and that caution increased due to stricter government regulations after the 2008 credit crisis. Often, women-owned businesses are young, making them look risky to lenders.


Greg Abbott celebrates growth in women-owned businesses in Texas, overlooks meaningful details

In an email blast, Greg Abbott’s campaign said Texas businesses owned by women flourished with Barack Obama in the White House.

Abbott, the attorney general and Republican gubernatorial nominee, wasn’t saluting the Democratic president. In the July 10, 2014, email message, Kim Snyder, Abbott’s deputy campaign manager, called Texas the “land of opportunity – especially for women.” Texas does better than other states, Snyder wrote, adding: “Let’s compare: the growth rate of women-owned businesses in Texas has nearly doubled that of the nation since President Obama has taken office.”

A reader, bringing the email to our attention, wondered about the described growth rates.

To our inquiry, Abbott spokesman Avdiel Huerta said by email Abbott’s near-doubling reference was based on reports by American Express OPEN, which American Express describes as the leading payment-card issuer for small U.S. businesses.

According to the 2013 State of Women-Owned Businesses report, Huerta said, there were 8,617,200 woman-owned U.S. firms, including 737,300 in Texas, in 2013. In 2007, AMEX said there were 7,793,139 woman-owned firms nationally and 610,007 in Texas, Huerta said.


Ohio’s Year End Surplus

business (3)With a surplus of $475 million the Ohio government is finishing the year better than expected.  And although the recommendation is to be cautious with this surplus, lawmakers are still unsure what they will do with it. It could mean tax cuts or debt payments for the state of Ohio or they can tap into the funds for additional spending for the next years.

To read more about this and other topics follow the links below.


Main Street Ohio Retailer Needs Congress to Pass E-Fairness Legislation

For nearly 40 years, I’ve held the reins at Baker and Baker Jewelers in downtown Marietta, Ohio. Spanning nearly a century, Baker and Baker has grown and evolved along with our community. Over the years, I’ve had to contend with a lot, but the current disparity between how our nation’s tax laws treat brick-and-mortar businesses like mine compared with our online competitors is perhaps one of the most insurmountable obstacles we’ve ever had to face. For the sake of Main Street businesses and communities nationwide, it’s time for Congress to do something to fix this problem once and for all.

Currently, most if not all of my online competitors are exempt from collecting and remitting state sales taxes. Meanwhile, brick-and-mortar businesses like mine must collect and remit these taxes every day on every purchase, putting me at an immediate 7.25 percent disadvantage here in Marietta. As any small-business owner will tell you, this is enough to make or break a business. I can generally match or beat a price — I have no issue competing against a nearby retailer or an online competitor — but I can’t tell a customer that I won’t bother charging them sales tax. The government would probably throw me in jail if I did that, yet my online competitors are invited to do that every day.  How is this a free market?


Ohio’s projected year-end surplus grows despite tax cuts 

Even as projected revenue is reduced because of new income-tax cuts, the state budget office now estimates the state will finish the fiscal year with nearly $632 million more than it will spend.

Once the mandatory carry-over is subtracted, the early estimate is the state will end June 2015 with a surplus of about $475 million. That’s money lawmakers could seek to tap into via tax cuts, debt payments or additional spending when they return in November, or next year.

The estimated surplus is unusually high — 2.1 percent of the general revenue fund compared with the 0.5 percent that budget officials often target. Tim Keen, the state budget director, said continued Medicaid underspending — there are roughly 200,000 fewer Ohioans on Medicaid than anticipated — is driving the surplus higher.

Ohio’s rainy-day fund is at its legal capacity — around $1.5 billion — so the question is what Gov. John Kasich and lawmakers will choose to do with the surplus money, should it actually materialize. Keen, as he often does, is urging caution.

“We’ve worked very hard to regain the fiscal stability of the state, and we ought to be very conservative and cautious with what commitments we make, particularly because much of this is from underspending,” he said.


Dayton given an ‘A’ from small businesses

The city of Dayton is rated the top business friendly metro city in Ohio, according to a survey of small business owners.

Small business owners gave Dayton an A- for its overall friendliness and tax code, according to the survey of 12,000 U.S. small businesses done by Thumbtack.com in partnership with the Ewing Marion Kauffman Foundation.

“It’s a good environment for our firm, and we’ve had a lot of support from the community through the years,” Tom Thickel, president of architecture firm Levin Partners Associates, said about Dayton.

Nearly 80 percent of businesses in Dayton are considered small businesses, meaning they have fewer than 50 employees, according to Dayton Chamber of Commerce vice president Chris Kershner.

Downtown Dayton Partnership president Sandy Gudorf said small businesses help add to the job creation needed in Dayton.

“We’ve seen significant activity in small business growth in downtown. This is a great community for a small business,” Gudorf said.

Gina Jones, owner of Green Baby, an organic baby specialty store, said Dayton has opportunities she wouldn’t have gotten otherwise.


Effective Meetings – Be Quick on Your Feet

business (10)There are many trends and fads in business.  Some of them take hold and become part of the status quo and others fade away.  One of the current fads, which may develop into a standard operating procedure, is the concept of stand up meetings.  The idea is developing legs (pun intended) and becoming more common.

While it may be seen as innovative in the sit down meeting business culture it’s not a new concept.  Julius Caesar didn’t allow his commanders, or anyone else, to sit during battle planning strategy sessions in the field.  During World War I some military leaders only had stand up meetings.

The current stand up meeting idea may be traced to a group of software developers.  In 2001 they published the Agile approach to software development.  This method divides projects into smaller and more manageable components.  In daily stand up meetings participants quickly update their peers using 3 criteria: what they’ve done since yesterday’s meeting; what they’re doing today; and what obstacles stand in the way of getting the work done.

One of the objectives of this approach was to drastically reduce or eliminate the long-winded, self serving, CYAing and dishonest reports which are presented in many meetings.  Another goal was to get people to participate, collaborate and be more creative – to stop shopping and playing Candy Crush on their devices.

The preliminary field reports, as well as a small group of research studies, show that stand up meetings meet these goals.  In 1998 Allen Bluedorn, a business professor at the University of Missouri, found that standing meetings were about a third shorter than sitting meetings, while the quality of the decision making was about the same.

A 2014 study by Markus Baer and Andrew Knight, Washington University St. Louis, found that people who stand up in a meeting are more creative, collaborative, pay better attention and less likely to be bored.  They open up and contribute to the discussion more than seated people.  Also, participants were less territorial with their own ideas, while being less critical and hostile towards others suggestions.
(Side bar – In addition to the idea of stand up meetings, managers might consider adopting an overall non sedentary workplace strategy.  Research is showing a correlation between sitting too much and poor emotional, physical and mental health.  The sale of standing up desks has increased dramatically as people become more aware of the benefits of standing vs. sitting during the work day.)

Standing up during meetings, and during the work day, makes good sense and is shown to be an effective business practice on a variety of levels.  Optimistically, it’s a fad that’s on its way to being a standard practice.  After all, the idea worked pretty well for Caesar while he was conquering most of Europe.


It Doesn’t Stop at Adolescence – Negative Peer Pressure in the Workplace

business (1)Peer pressure.  Everyone knows what peer pressure is, they’ve seen the afterschool specials, heard the lectures in 9th grade health class and had multiple adults in their life say, “If _____ jumped off a cliff would you do it too?”  When people talk about it they’re often talking about it in terms of children and teens. But, peer pressure is an issue which never goes away.  This is especially true in the workplace.

Millions of people have been known to say, “This job is just like being in high school again”.  Peer pressure is one of the reasons they say this, yet it’s not addressed with adults in the workplace nearly as well as it is with children and teens in school.  There’s an erroneous assumption that people grow out of their susceptibility to it as they age or mature.

Unfortunately, many people struggle with it throughout their lives, particularly in their employment.  Countless have identified it as their reason for quitting or getting fired from a job.  Almost 80% of people report having been negatively influenced by – or doing the influencing themselves – their co-workers into doing something they didn’t want to do.

There are 2 main categories which employees identify as having been negatively affected by peer pressure.  First, is drinking on the job and/or drinking too much at a company function, which resulted in personal and professional consequences.  The second category is being influenced to steal company resources: time, money, property or services.

Peer pressure, both negative and positive, is important for a company to be aware of and address.  It’s the way corporate culture is formed and maintained.  Employees develop shared ideas, assumptions and ways of behaving, which determine how they perceive and perform their jobs.  It’s how people think and act on a daily basis that most affects the bottom line.   As Nathaniel Banks said, “We have more to fear from the opinions of our friends than the bayonets of our enemies.”


 

Are you Ready for Retirement?

business (9)There are many compelling reasons why business owners should pay more attention to their retirement plans.  Often times the responsibility to fund a pension plan for them and for their employees fall on the shoulders of the business owner and more times than not it is relegated for a later date that never comes. Here are three compelling reasons why you should talk to an accountant and financial advisor to help you plan for your future.

  1. It is a financial responsibility you have to your employees and yourself to secure a future that will provide financial stability later on.
  2. Talk to an accountant or financial advisor for potential tax benefits for your business when setting up a retirement plan.
  3. Having a retirement plan can secure your top performers or attract new ones that can benefit your business.

Read more about this and other news by following the links below.


Preparing Small-Business Owners for Retirement

Advisers also can help clients figure out what to do with their time after they retire.

Small-business owners often are so busy working that they don’t take time to plan for their retirements.But that is clearly a mistake, financial advisers say.In turn, advisers are helping these entrepreneurs more accurately value their businesses as well as their personal expenses, and figure out how to spend their time once they…


Small business hiring cools off in July

Not quite the blistering pace reported in June.

Hiring by small businesses cooled off this past month, mirroring a similarly modest slowdown across the broader economy, according to a new report.

Small employers added 84,000 workers in July, down from a two-year high of 126,000 new positions added the month before, according to payroll processing firm ADP. Initially, the company had reported that small businesses (fewer than 50 employees) had added 117,000 jobs in June.

Overall, the economy added 218,000 positions in July. While that’s down from 281,000 last month, it’s otherwise the highest monthly total since November.


Workers are finally getting raises again

One more sign that life is improving for American workers: paychecks are finally growing faster.

The Labor Department reported Thursday that workers’ wages and salaries grew by a seasonally adjusted 0.6 percent during the second quarter, the fastest pace since the third quarter of 2008.

Wages and salaries only make up 70 percent of total compensation, including benefits. Total compensation costs as a whole also grew by a seasonally adjusted 0.7 percent during the second quarter.

Though it’s true that wage growth was much faster before the Great Recession, the news is still a sign that the labor market is tightening, as increased demand for labor helps boost paychecks.

 

Complacency is Not a Successful Management Style

business (10)“I don’t want to rock the boat”  “If it ain’t broke don’t fix it.” “This is the way we have always done it.”  “It’s not that bad, let’s just wait and see.”  In today’s tentative business climate who hasn’t heard these statements from their managers.  You’ve probably said some of them yourself.

Over the last several years the workplace has been in transition, managers have hunkered down to wait it out or for it to blow over.  Unfortunately, while waiting, many managers have turned reasonable caution into unproductive complacency.  They’ve become complacent about their current jobs and future careers, no longer innovating for their company or themselves.

Complacency is defined (Merriam-Webster) as: 1. self-satisfaction, especially with one’s merits, advantages, or situation, often without awareness of potential or actual dangers or deficiencies 2. A feeling of unaware or uninformed satisfaction with how things are and not wanting to try to make them better.  It’s an unsatisfying, self-sabotaging, unproductive and potentially destructive way to think and behave.  Here are 6 ways to tell if you’ve become complacent.

You’ve lost your excitement – Have you begun to lose passion for your work?  Or have you already lost it and are no longer excited about your job or career?  Your passion may have disappeared or just gone astray, but either way it’s important to find it again.  Passion fuels excellence, gives you something to strive toward and helps sustain high performance, which makes it worth getting up in morning.

You look for shortcuts – Are you as thorough or detailed as you once were?  Many complacent mangers count on their past successes and good reputations to cover for their current laziness.  They become a liability to themselves and the company.

You no longer invest in yourself – Are you focused on success in your current job and long term career?  Complacent people stop investing time, money and energy to meet their goals and objectives; they no longer strive to improve.  They don’t maintain relationships with in-house and outside colleagues, network or attend trainings.

You’ve stopped learning – Do you think you’ve learned everything you need to know?  Managers who are “know it alls” are particularly dangerous to an organization.  They’re disruptive, negative, poor team players and routinely disliked by their co-workers.

You’ve stopped thinking and disengaged – Have you stopped asking questions and challenging yourself or others?  Complacent supervisors go along to get along.  They specialize in doing only what they’re told to do and bring little value to the company or to their careers. They’re seldom collaborative and do little to move company objectives forward.

You don’t take risks – Are you looking for the next calculated risk that will move you and your company forward?  Risk is healthy and essential in work and in life.  Complacency makes people poor judges of constructive risk vs. destructive risk.

We all have supervised, worked with or for people who are complacent mangers and have been frustrated by this management style.  It’s unsuccessful at its best and destructive at its worst.  It’s highly probably that George Patton was talking about just such a person when he said, “We herd sheep, we drive cattle, we lead people.  Lead me, follow me, or get out of my way.”