TMCnet News
Loose ends? Tie 'em up!(Las Vegas Review-Journal (KRT) Via Thomson Dialog NewsEdge) Dec. 11--If you're already compiling a list of New Year's resolutions for your company, put down your pen and listen up. A Pittsburgh small-business consultant says there's still time in 2006 to make small improvements that will free you to focus on the big objectives -- boosting sales, expanding staff, buying your own office -- in 2007. Ty Freyvogel, owner of The Entrepreneur's Lab, has developed a to-do list that could help you streamline your functions before the calendar turns. "Typically, small-business owners are so customer-oriented that they really don't think about the things that make their company work," Freyvogel said. "We all get so bogged down in delivering a product that we don't step back and reflect on whether we're doing the best we can. But there's something psychologically cleansing about updating every operational aspect of your business." Here are some of Freyvogel's top recommendations for cleaning house at year's end, along with a FEW TIPS FROM LOCAL BUSINESSPEOPLE ON THEIR FAVORITE DECEMBER RITUALS: --Touch base with your best customers: Freyvogel sends end-of-the-year letters to his clients to tell them he cares about their needs and to ask them for their thoughts on how effectively he's serving them. December is an ideal time to let vendors know you appreciate their business and to elicit suggestions from them on service or delivery improvements that could help your company grow. Marianne Castello, president of Castello Excavation & Grading in Henderson, said the gift baskets and jackets she sends her biggest customers express her gratitude for their business. "We want to let them know we appreciate them using our company as a contractor on their projects, and that we want to keep the relationship going," Castello said. Castello also makes a point of calling and sending notes to her clients' office managers, and she delivers her holiday gifts in person. "Office workers see us face-to-face. If we have a problem or a question, they know who we are when we call them," she said. Such interface serves a valuable practical purpose, Freyvogel said. Vendors who know you well are more likely to give you a little cash-flow boost by letting you delay payments a month or two if your business takes a downturn. --Start spring cleaning early: Eliminating clutter can boost productivity, because most employees prefer working in a tidy office, Freyvogel said. Shred and toss files you don't need anymore, and get rid of outdated electronics that no longer work. And look outside: A few potted plants or a new coat of paint could enliven your office's front entrance and make the area more welcoming to customers who visit. At Unique Party Planning & Catering in Las Vegas, mother-daughter team April Gray and Florozeen Gray run through inventories of party accessories, dumping outmoded items and compiling lists of new products they'll need. "It's just like clothes -- catering and party-planning styles change with time," April Gray said. The owners combine community service and efficiency when they're looking to unload leftovers from parties at their Skyview Terrace banquet hall on Spencer Street. "The mayor (Oscar Goodman of Las Vegas) is going to come and get me for this one, but I take food to the homeless," Gray said. "We used to distribute it on the streets, but now we take it to (shelters). They get leftover cakes, breads, even roast beef, shrimp and lobster. It's important that the community knows who you are and what you're about, and it's also important that the community knows you care about people." --Review all your systems: Give every facet of your operation, from computer systems to bookkeeping, a top-to-bottom examination with an eye to determining what's working. "Don't assume that just because you have had a certain system in place from Day One that it is adding value to your business or your customers," Freyvogel said. "A system review can be an eye-opening experience for business owners. They are usually surprised to find that their business has fallen into habits that are hindering them from being successful." Pinpoint problems in your systems and decide whether you need outside help. A computer consultant could guide you toward more efficient use of your office technologies, or a financial whiz could improve how you keep your books. --Consider technology upgrades: You could make a major difference in the daily lives of your workers if you start 2007 with improved technology. New phone systems or computers could mean employees will spend less time attending to equipment crashes or lost voice mails, Freyvogel said. Shari Farkas, president of local information-technology firm Acuity Solutions, said all businesses need spyware- and virus-busting software. If it takes you longer to connect to the Internet these days, you could also require an increase in bandwidth. Internet content has multiplied exponentially in the last few years, Farkas said, and that speedy T1 access line that delivered you onto the World Wide Web at warp speed in 2002 could prove sluggish today. And if you're hosting your company's e-mail system, think about saving money by switching to a hosted e-mail network. The cost difference is substantial: Hosting your own e-mail system will cost $10,000 to $20,000 depending on the size of your company. Using a service that another provider hosts can cost less than $100 per worker per year, Farkas said. Farkas also urges her clients to ditch their spreadsheets and use the accounting programs they already have. "Spreadsheets aren't very efficient if you can create reports with accounting software," she said. --Review your insurance policies: Too many companies set up insurance policies and put them on the back burner until catastrophe strikes. That's when business owners find out they're undercovered. If you've added new lines of business, increased your employee counts or taken other measures that might have changed your liabilities in recent years, it's time to determine whether your operation has outgrown your insurance coverage. "Insurance is not the most exciting subject in the world," Freyvogel said. "But new people come, and other people leave. I see a lot of companies that don't have the proper key-man insurance. A partner suffers an untimely death, and the company is dissolved because they didn't have a key-man buyout policy." --Hold annual performance reviews: Larger businesses often conduct yearly reviews on employees' anniversaries. But only half of all smaller companies hold regular employee assessments, Freyvogel said. For companies who don't offer periodic appraisals, the year's end is an ideal time to start, he said. "It's not a correctional interview. It's sitting down and asking them what they like about their job and what you both can do to make their job better," Freyvogel said. At Consultants in Marketing, a Las Vegas advertising and public relations agency, Chief Executive Officer Darcy Neighbors has asked each of her 16 employees to give her a list of their goals for 2007. By December's end, Neighbors will have met with her staff members one-on-one to refine their proposed roster of objectives. "When we enter January, we'll all be on the same page and they'll know exactly what their goals are for 2007," she said. The year-end face time also clues Neighbors in on some of her workers' deeper needs. "I find out about not just professional goals, but personal goals," she said. "That helps me intertwine the personal and professional sides to make sure our employees have the quality of life they're looking for." An end-of-the-year forum with all your workers can also encourage them to share their ideas on how to improve the company, Freyvogel suggested. --Meet with your accountant: Sure, your taxes aren't due until April 15. But combing over your financials before the year is out could alert you to some last-minute deductions you'd otherwise have missed, and your accountant could have some bright ideas on handling excess cash, Freyvogel said. Both Consultants in Marketing and Acuity Solutions meet with accountants before the calendar turns so they can pinpoint their profits. That enables each company to distribute Christmas bonuses or profit-sharing. "It's wonderful as a business owner to be able to share with the team when you have a good year," Neighbors said. --Assess your marketing campaign: If you've bought advertising in 2006, some of those contracts will automatically roll over into 2007. Before that happens, it's time to assess whether your ads are improving the bottom line. "If you have an ad that you don't think is helping your business, you will want to make a change before you're committed to another year," Freyvogel said. Neighbors advises her clients to hold a daylong "strategic marketing summit" during which public-information campaigns are the only item on the agenda. Consider the ads you bought and what kind of return on investment they brought your company. "A lot of times, marketing is a stepchild. Very few companies spend time on creating a formal written marketing plan or diversified marketing portfolio," Neighbors said. "They'll decide to spend $200,000 or $400,000 in a year, but there's no formal approach to where they'll buy ads. You need to talk about action steps and specific goals for what you want your marketing to accomplish." --Don't forget the small stuff: Freyvogel has additional nuggets of advice for small-business owners looking for a clean start to 2007. The year's end is also ripe for redesigning your business cards. Make sure all your contact information is current, and assess whether the layout and color schemes match your stationery and your Web site. Consistency will help you begin developing a brand. About that Web site: Give it a thorough going-over and make a few changes to give your clients new reasons to keep visiting. Post recent articles that cited your company or profiled your work, and set your Web site as your browser's home page so you'll keep updates and improvements top-of-mind. Consider reviewing subscriptions to trade journals and professional magazines. Cancel subscriptions to publications that you set aside and rarely read. They're costing you money, and the little piles they create could hobble efforts to stay clutter-free. If you keep minutes of board meetings, make sure all minute logs are updated. If you're ever in legal trouble, your attorney will want to examine your minutes. Having them ready will let your lawyer focus on the important details of any case involving your company. "If you go through this list and involve your employees in the company, you've touched every aspect of your business," Freyvogel said. "Small businesses make small mistakes that become big problems because they're naive or inexperienced. They find themselves being reactive rather than proactive. If you cleanse your business once a year, you can spend more time satisfying your customers." To see more of the Las Vegas Review-Journal, or to subscribe to the newspaper, go to http://www.lvrj.com. Copyright (c) 2006, Las Vegas Review-Journal Distributed by McClatchy-Tribune Business News. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |