Archive for Business Management

Make Room For More Customers

October 1, 2013 / / 14,171 comments

Are you looking for new customers, but they just aren’t coming in the door… try using what we call in the business coaching world “The Law of a Vacuum!!”, and see what happens.

The Law of a Vacuum: Have you ever moved into a bigger house with a bigger garage, bigger basement, more cupboard space, more storage space… what happens? Those new spaces that you didn’t have enough ‘stuff’ to fill when you first moved in somehow fill up.

Have you ever cleaned out your closet only to find 6 months later that your closet is full again?

Those empty spaces you created with the new house, or cleaned out spaces are a Vacuum. In nature, everything grows to fill the available space.

Do you want new customers?

If you want new customers, what do you think you should do? Ask yourself this, “Do I have room in my business for new customers?” If the answer is, “No” …

Make room for new customers…

  • Go out today and buy new files and a new filing cabinet.
  • Create more files & folders in your computer systems to accommodate new customers.
  • Block out portions of time in your calendar for your new customers’ appointments.
  • Get rid of some customers you no longer want.
  • Make room for new customers wherever possible.

What if you wanted to expand your team…

  • New desk(s), phone(s), etc.
  • New computer(s), office supplies
  • New company uniform(s), company t-shirts, nametags, etc.

So, create the Vacuum in your business, and watch nature fill it.

 

 

 

Category: Business Coaching, Business Management / Tags: , , , , ,

Sticky Notes… An Effective Business Tool

June 4, 2013 / / 2,367 comments

In any business, it is critical that tasks are performed in a consistent and timely manor. To accomplish this, work processes should be put in place to be followed for each area of your business.

A work process is made up of a series of steps/tasks/activities and has a beginning and an end. In business, everything is a process – hiring process, order taking process, product/service delivery process, etc. They start with input (materials or information), and by a series of steps/tasks, you produce a product or service.

As your business evolves, it is necessary to update and improve processes to meet the growing demands of your current situation.

First understand, before you change

If you want to improve your processes, it is best to get a complete understanding of what you are currently doing. Start by documenting or mapping your processes. Bring together the people who know exactly what the steps of each process are, and document them in detail. One effective way to do this is to use sticky notes on the wall or a board. On each sticky note, write out each individual task required for each process. Place the sticky notes on the wall or board and move them around until you are satisfied that you have documented each of the current steps. The advantage of using sticky notes is that you can move them around until you are satisfied that you have the correct steps in the correct order. Then draw it up… type out the process into a document, create a process chart in PowerPoint… you could even go so far as to use software programs like Visio.

Improving the Process

Now that you have a complete understanding of the “As Is,” you can work on the “Should Be.” Brainstorm with your group. This is where you want to utilize the experience of your team to determine what can be changed and improved. Remember to document who will be responsible for executing each step of the process and the time frame each step is to be completed in. This is a great opportunity for you, as the business owner, to look at each task and determine if it is something you still need to perform or if some (or all) tasks could be delegated to others. Once you have agreed on the best changes and improvements, record them and be sure to communicate the new processes to everyone on your team.

With your new streamlined processes, the improved productivity will show up in your bottom line.

 

 

Category: Business Coaching, Business Management, Systems / Tags: , , , , , ,

Slow Moving Receivables: Can Help You Get Better

April 17, 2013 / / 2,246 comments

Every challenge in business is a chance to examine and get better. If you have customers that are not paying invoices on time, your first reaction is to get on the phone and chase down the slow payers. In fact, many organizations have people and departments dedicated to credit collections. But… what if you took the opportunity this challenge affords, and dig a little deeper… Now, I am not saying you shouldn’t take action to obtain payment for overdue accounts; however, putting a little time into some analysis can reveal vital information about your business. Often slow or none payment of accounts has a lot to do with the service you have delivered to the customer. To find the root cause of any problem, the exercise of asking “Why” is a great place to start digging. Keep on asking “Why,” and then “Why” again until you get to the root issue(s).

You may find many issues including…

  • A flawed sales process – you did not capture what the customer needed
  • A flawed order taking process  – you may have sent the wrong quantity
  • There may have been a misunderstanding of price
  • The delivery may have been too late for the customer
  • A failure in the production process indicated by product quality issues
  • A flawed packaging process – the product arrived broken
  • A flawed shipping process – you packed the wrong product
  • Decide if you really want to do business with this customer… are they costing time and money? Fire them. You choose who you do business with.

Examining your slow paying accounts can provide a wealth of information to be used to find weakness in your business. It may have little to do with the finances of your customers, or you may have chosen to do business with weak customers.

Your customer maybe using your problems as an excuse, get better and do not give them any excuse.

 

 

Category: Business Coaching, Business Finance, Business Management, Systems / Tags: , , , , , ,

Test & Measure to Make Informed Business Decisions

March 20, 2013 / / 16,040 comments

It’s a basic business principle that the more you know, the easier it is to make decisions about what’s working and what’s not. If you are not Testing & Measuring the critical areas of your company’s performance, it is likely you are allowing money to escape from your company and therefore your wallet.

For example, lead generation is a key driver in every company, but few businesses know how many leads they get each week. Even fewer know where those leads came from. Information such as lead source, dollars spent, revenue generated, etc. is invaluable when making decisions regarding marketing and advertising.

The most effective method of tracking lead generation strategies is to develop a database that includes details such as lead source (networking event, Strategic Alliance, referral, marketing campaign(s), etc.), first contact date and last communication details, sales stage, revenue generated, and next steps. These details, and more, are vital in making informed decisions regarding marketing campaigns. Through this Test & Measure system, if you see more revenue generating leads coming in from a particular marketing campaign, you know you will want to continue with it. If a marketing campaign isn’t generating leads, you need to rethink your campaign. The point is, you’ll never know unless you are continuously measuring the number and source of the leads you get. So…Keep meticulous records of where all leads are coming from and how much they spend once you’ve converted them to customers.

Testing & Measuring doesn’t stop with lead generation. There are many other areas within every business where well tracked and documented data is invaluable, even critical, for making good, sound, profitable business decisions.

The areas we should be Testing & Measuring:

  • Conversion Rates – converting leads to customers
  • Quality Control – delivery of service or product
  • Customer Satisfaction
  • Referrals
  • Communication within the company
  • Adherence to the Rules of the Game (company culture)
  • Collection Process
  • On-time delivery/shipping
  • Invoicing accuracy
  • Etc…

Identify the key drivers in your company and ensure that you take the time and effort to put Test & Measure systems in place for the long-term. The information you gather will be vital to making good business decisions and growing both your business and especially your profits.

 

 

Category: Business Coaching, Business Management, Leadership, Systems / Tags: , , , , , ,
 
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