Weekly Business Idea

August 18, 2017 – What’s on Your To-Do List?

Posted on | August 18, 2017 | No Comments

Main Idea:

Are you overwhelmed right now?  Do you feel like the hamster in the wheel, running around and staying in the same place?  Does your to-do list depress you?  When you get home are you completely drained?  Does your team avoid you because they know you can’t handle one more problem?

Expansion of the Idea:

Last weekend I was cleaning up some things at home.  I came across a notebook from a meeting in Chicago from 3 years ago. It was one of those notebooks that hotels lay out in meeting rooms.  I opened it up and I had written 47 items on a to-do list.  I read through them and all 47 items were important.  I think I put the list together on the plane ride home.  (The reason it was only 47 items was that the flight was a quick 45 minute trip.)  I am guessing this notebook was stuck in a drawer at home because I probably didn’t want to think about all I had to do at the time.  It was too depressing.

All of us have been in that situation at different times in our lives.  Running a business can be all consuming and eat up all of your spare time.  You have new ideas that you want to implement and you add them to the list.  There are things that only you know how to do.  There is always something that doesn’t work.  Sales might not be predictable.  A good customer suddenly develops cash flow problems and you aren’t paid promptly.  A key employee suddenly leaves.   There are an infinite number of ways that your to-do list gets overburdened and you feel overwhelmed.

What should you do?

There are times when you just have to gut it out and work through the problems.  However, there are a couple tricks that can help.  I heard Juliet Funt speak at the Global Leadership Summit last week.  She talked about having whitespace at work.  Basically, it is a strategic pause to gather yourself.  This might be a short walk a couple of times a day to clear your head so you can refocus on the next project.  Of course, while you take a quick walk, five more things are added to your to-do list.  The key is that you take a moment and clear your head so you can focus.

Another trick is to create a special version of a to-do list.  This one has four columns.

  1. Your actual to-do list that needs to be done in the next 4-6 weeks.
  2. A list of good ideas that you want to do but not now.
  3. A list of things that you need to delegate.  You may need to train someone on how to do them but you don’t need to do them.
  4. A list of things that you need to stop doing.

Doing these two tricks will help create some breathing room for you.  By creating a little bit of space, you start making better decisions.  This leads to more effective use of your time and less emergencies.  As I am looking back on my list from 3 years ago, I realize that I have come a long way.  There are a couple of activities that I eliminated and saved me huge amounts of time and didn’t cost much, if any, revenue.  Part of this was getting clarity on what customers I wanted to serve and how I wanted to serve them.  There were some systems and policies that were unnecessary and created work.  You can only spot these problems when you do take the strategic pause.

Even with the savings and business improvement, I look at my current to-do list and I realize I still need a lot of improvement.  For me the biggest area is to keep future ideas separate.  I need to segregate those ideas so that I am not thinking about them right now.  This will allow me to focus on what is really critical.  This is a continual process that constantly needs to be reviewed.

Improvement starts when we come up for air and breathe.  You deserve it and so does your business.  The key is to start.

Places to Start:

  1. Take a moment and go for a walk
  2. Ask yourself if you are overwhelmed.
  3. Ask your team if they are overwhelmed.
  4. Put together the 4-column to-do list.
  5. Discuss it with your team.

August 10, 2017 – What is Your Best Return on Investment?

Posted on | August 9, 2017 | No Comments

Main Idea:

Where do you make investments?  What do you look for when you make investments?  What do you expect to earn on the investments?  What is your best investment?  Do you avoid some investments because the return on investment is hard to evaluate?  Do you focus on short term results or long-term investments

Expansion of the Idea:

Thursday and Friday of this week are my two favorite days of the year.  For those of you who know me well, you know that I am referring to the Global Leadership Summit which is simulcast throughout the US to over 450 sites.  I have gone to the Summit for the last 15 years and I hope I will continue to go for the next 15.  These two days are nonnegotiable days in my schedule.  I will be at the Summit unless I physically could not go.  The Summit has benefited me personally and professionally.  It has energized me.  It has helped me spiritually.  I could not tell you the exact dollar benefit of the Summit, but I could start listing a number of specific items that I use with team members, clients, family, and personally.  I am a better person, husband, father, business owner, consultant, etc.  Because I believe in it so much I have volunteered to help promote it.  I am totally invested in it. It may be my most important investment.

When most people think of investments, they think of the stock market, real estate, major equipment or similar types of assets.  However, some of the most valuable investments are not physical assets.  They are things like:

  • Yourself
  • Your people
  • Your customers
  • Computer and other systems
  • Research and development
  • Education
  • Ideas
  • Time
  • Relationships

There are a number of other intangible assets.  The problem is that we don’t focus on the intangibles like we may focus on how the stock market is doing.  The stock market is easy to evaluate.  We made money or we didn’t.  We can compare it to how the Dow Jones Index is doing.

With intangible assets, it is harder to evaluate.  We tend to discount intangible assets because we cannot see the direct relationship between the investment in education and new sales.  Or we can’t see how improved teamwork helps your gross margin.  When you invest in something like the Global Leadership Summit, you don’t know exactly how that will benefit your business or organization.  As a result, some people don’t make the investment.  And that is to their loss.  These intangible investments are actually what differentiate us from our competitors.  If you are focused on learning new things and your competitor is focused on America’s Got Talent, who do you think will be in a better place to serve your customers?

Places to Start:

  1. Are you making investments in the intangibles?
  2. Do you know how much you are investing in people?
  3. What are you spending in education?
  4. Are there items in the list above that need investment?
  5. Discuss this with your team.
  6. See you at the Summit.

August 4, 2017 – Do You Know Where You Are?

Posted on | August 4, 2017 | No Comments

Main Idea:

Does your phone know where you are at all times?  Or do you turn off the GPS signal because you are tired of getting the messages from Facebook or Google asking you to rate the restaurant you just came out of?  Do you have your kids phone tracker turned on, so you know where they are and where they have been?

Expansion of the Idea:

In the past few weeks I have seen several situations where small business owners had small and large surprises because their systems were not giving them reliable information.  There were multiple causes for the problems.  They may have outgrown their systems, had poorly designed systems, selected the wrong advisors or just didn’t pay enough attention to the systems.  Frequently it is a combination of reasons.  The problem is that if a business doesn’t know where it is, it is extremely difficult to achieve your goals.  This would be similar to being dropped off in the middle of the Amazon rain forest and you were going to rely on your cell phone for the way out.  You look at your phone to get your coordinates.  You see that it can’t determine which way is north, you are lost and you are almost out of battery.  You might have a tendency to give up hope.

Accounting and information systems can be one of the most useful tools in your possession to achieve your goals.  In an ideal world, the accounting system is working well and you know exactly where you are and how you got there.  You can plot that against the path to achieve your goals.  When you go off course, you can evaluate how to get back on course. It is extremely simple in theory and much more difficult in practice.  Systems require the following to work:

  • Planning
  • Communication
  • Clarity
  • Documentation
  • Testing
  • Maintenance
  • Revisions
  • Inspection
  • Management
  • Escape Valves (When to depart from the system)

There are probably a few more pieces that you could use to describe what is critical to systems.  The point is that you can’t just pull Quickbooks off the retail store shelf, give it to a bookkeeper and say go do it.  The accounting system has to interact with all of the other systems in the business.  The real power of the accounting system is to give you information on your path to achieving your goals.  It can either be a cost or a money maker.  The choice is yours.

Places to Start:

  1. Do you know where you stand financially?
  2. Are you getting key performance indicators that help you manage your business?
  3. Is your accounting system working well?
  4. Are you using the information to making decisions?
  5. Do you have short and long-term goals?
  6. Do you plot where you are and the path to achieving the goals?
  7. This also applies equally to your personal situation.

July 28, 2017 – Is Your Culture Important?

Posted on | July 28, 2017 | No Comments

Main Idea:

When growing up did you play well with others?  Were you able to play with someone else in the 3×3 sandbox?  Do people work together well at your business?  Have you ever walked into your business and people were fighting with each other?  Or worse, what happens when there is a silent sabotage campaign going on?  Did you want to just shut the doors and walk away?

Expansion of the Idea:

This morning, I was reminded of the need for businesses and organizations to create the right culture to grow.  On page 1 of the Wall Street Journal, there is a link to a story about the fight between two senior White House aides.  As I was reading the story, I knew that nothing good is going to come out of Washington, DC until a large number of people figure out how to play in the same sandbox.  It has been that way for a long time and it might be that way for a long time in the future.  It doesn’t matter if you are Democrat or Republican.  It is good to disagree and debate ideas.  But until the culture is restored to one of mutual respect, it is pretty likely that very little will be accomplished.  (At least until they reach rock bottom.)

The same is true of our businesses.  Businesses that struggle frequently don’t have alignment between the owners or leaders and the employees.  There might be distrust.  Or, everyone might have their own agenda.  Employees aren’t sure of what they are supposed to do.  They don’t know where the business is going.  They may not know why the business exists.  They just know their little slice of the business.

On the other hand, some businesses have a clear purpose and goals.  These are communicated and communicated and communicated to the whole team.  They work together.  These businesses might struggle but they do so as a team.  When there is clarity and alignment, the odds for success go up significantly.  Team members are looking to improve their performance as well as that of the team.  They are focused on the big picture and are not as worried about their own future.  Alignment is a result of communication which then further aligns the business because the communication becomes two-way.

Creating the right culture is extremely hard.  It requires a significant investment of time in people.  It might mean that you have the wrong people.  Your systems might have to change.  You might have to be more open and vulnerable.  However, the benefits are worth it.

As Patrick Lencioni says in his book, The Advantage – Why Organizational Health Trumps Everything Else in Business:

“Organizational health will one day surpass all other disciplines in business as the greatest opportunity for improvement and competitive advantage.”

Places to Start:

  1. What is your culture?
  2. Does the team work well together?
  3. Are you achieving your goals?
  4. Does everyone know what your goals are?
  5. Is communication open or do people hold things back?
  6. Discuss this with your team.  Even great teams focus on continual improvement.

July 21, 2017 – What’s Wrong with What You Know?

Posted on | July 21, 2017 | No Comments

Main Idea:

Have you ever been real sure of something and then find out that you were completely wrong?  Has a system changed in your business and you are not aware of it?  Do you read all of the amendments to contracts?  Could something significant change and you not be aware of it?

Expansion of the Idea:

Yesterday I was finishing the trust return for a client who died a year ago.  I called the trustee to discuss the return.  During the course of the call, I realized that he had made distributions to some heirs that he shouldn’t have.  The problem was that the deceased had explained what was supposed to happen when she died but then she amended the trust.  She didn’t explain the full impact of the change in the trust.  As a result, he had the wrong understanding of her wishes.

I completely understand how it happened.  This type of thing happens all the time with estates.  It seems like there are almost always surprises in the administration of a deceased family member’s estate.  The same is true with our businesses.  It is frequently worse because we know them so well.  When we know something, we don’t double check it.  What we think we know can get us in a lot of trouble.

How does this show up in our businesses?

  • A customer calls with a problem.  We tell them that they could not have had that problem because of our procedures.  Then we find out that the system changed because of some event or an employee just didn’t understand why we were doing something.
  • A line of credit that normally renews every year was changed to 6 months and you didn’t realize it.
  • A long-time employee all of a sudden quits because they are bored.
  • A long-term customer decides to go to a competitor because they have stayed in touch with them.
  • You discover that a trusted employee just stole $100,000 from your firm and did not pay the insurance premium for employee dishonesty.
  • You think you have insurance for cyber liability but you dropped that rider because of rates.
  • A large customer has always paid until they get hit with employee embezzlement.
  • Your computer data is backed up daily until there was an update and the backup has been paused for 6 months.

We can come up with a lot of different scenarios where we can have problems.  To minimize the damages, we must set up systems to periodically check all significant issues that could threaten our survival.  We need to read contracts.  We need to take time to talk to our employees.  We should visit customers and make sure that we are providing value.  We should make sure that we have systems to maximize our business and minimize risk.  We also should inspect those systems.  We should make sure we are getting the right reports and key metrics to make sure something is not going off course.

All of this starts with us admitting that we don’t always know what we think we know.  A perpetual state of curiosity is a good thing to have.

Places to Start:

  1. Do you do an annual risk evaluation assessment?
  2. Do you have a calendar for management duties that only need to be done 2 or 3 times a year?
  3. Have you taken a hard look at your systems to make sure that they are operating the way they were supposed to?
  4. Have you intentionally spent some time with employees to make sure that you are serving them well?
  5. Have you intentionally spent some time with customers to make sure that you are serving them well?

July 14, 2017 – Is Price Controlling Your Business?

Posted on | July 14, 2017 | No Comments

Main Idea:

Do you get calls asking what your price is for a particular service or product?  Do they ask anything else besides the price?  When you sell, do you lead with a proposal to save your prospective customer money?  Does everything revolve around the price of your product?

Expansion of the Idea:

I received a call yesterday from a broker selling professional liability insurance.  She asked if I would like a quote.   I told her no and she thanked me and hung up.  She did not ask why I wouldn’t like to explore her company.  It might have been better than what I have.  The part she didn’t understand is that my current professional liability insurance company doesn’t just sell insurance.  They help me handle the risk of being a CPA.  They provide proactive resources and help if I have a hard to solve problem.  I am not going to switch to any company that doesn’t provide those services, even if they can save me a few hundred dollars a year.

This brought up the role of pricing in sales.  Pricing is critical for all of our businesses.  However, we first have to decide what our business model is.  Very few of us set up our businesses to be the lowest cost on the market.  The problem with being the lowest cost is that you do need to be profitable at that level and you need to be able to maintain the lowest cost.  Walmart had occupied the lowest cost portion of the local market until Amazon Prime came along.  Even though Amazon doesn’t have a store in Walmart’s local market, Amazon might be cheaper and as a result Walmart has a strong competitor.

If you are not going to be the low cost, then you have to decide how your business will operate and what price is appropriate for the market as well as what you need to be profitable.  Pricing is an important part of positioning your product or service.  Do you want to be a high price/high service business?  Who is your target customer?  Are you selling to businesses?  Do you want to serve families?  What price are they willing to pay?  There are a lot of different aspects of pricing that you need to go through.  Our prices need to be in a range that our customers will accept.  Beyond that, we need to make sure that we provide value for what we do.  Pricing is a critical component of our overall value proposition.

At the same time, we need to make sure that, to the extent possible, our sales offerings are not decided by price.  If your customers are buying from you just for the price, then you are one phone call away from losing that customer.  The problem with this is that most businesses sell by using price.  They open with it and then try to steer the sale away from it.  We need to make sure that sales calls are scripted to get as much information as possible so that we can decide how best to service the prospective customer.  At that point pricing can be used to cement the relationship.

Unless you are intentional, price starts to dictate how your business operates.  When that happens, margins start declining and owners feel like they have no control over the situation.  That isn’t a good place to be.

Places to Start:

  1. Do you focus on price when you are selling to your customers?
  2. Evaluate your pricing position and value compared to your competitors
  3. Do you need to raise prices or value or both?
  4. Does your current pricing model position you where you want to be in the market?
  5. Read Confessions of the Pricing Man by Hermann Simon

June 30, 2017 – Declare Your Independence

Posted on | June 30, 2017 | No Comments

Main Idea:

Do you freely go to work every day with a smile on your face?  Do you love what you do?  Or, do you feel constrained by your situation?  Do you feel like you are a prisoner?

Expansion of the Idea:

I have been recently doing a lot of work on cash flow planning.  I am using a piece of software that is really great and helps me do this efficiently for business planning.  I was planning on using the software for some individual planning.  The problem arose when the software was giving me a false error message for a particular fact pattern.  I have gone back and forth with the software support people and we are still trying to resolve this.  The real issue is that I was trying to finalize a cash flow and tax plan for a client.  I was starting to feel stuck, as if I had no options.  I needed to finish the project but, based on my current systems, I really couldn’t.  This isn’t a good place to be.

I finally decided that I could not be in a place where I had no options.  Even though it was going to take time, I created my own planning file for individuals and their personal planning.  As I started doing it, I realized that I could customize it and create a better outcome than what I was previously going to have.  It was a lot of hard work but I feel much better and I can deliver the project.

Small business owners typically go into business to create more freedom in their lives.  They are energized by getting control of the business.  However, it quickly turns into something completely different.  Most small business owners feel stuck at some point in our careers.  In fact, most of us feel stuck quite frequently.  Our success at identifying the problem early normally determines our long-term success in our business.  Areas that we can feel stuck are:

  • Finances
  • Team members
  • Vendors
  • Customers
  • Systems
  • Economy
  • Advisors
  • Personal situation, including personal finances

When we start to feel a prisoner of our situation, our passion for our work goes away.  We tend to retreat and just accept life as it happens.  We don’t ask others for help because we don’t think the situation can be helped.  We can lose the ability to think creatively and plan for the future.  This can spiral into a real problem if you let it.

As we are approaching July 4, give some thought about what you need to obtain independence from.  If a customer is holding you hostage in a bad situation, brainstorm how to fix the problem, including firing the customer.  If your finances are a problem, take more control and develop a plan for improving them.  There normally aren’t any easy answers.  However, getting the right mindset can make all the difference.  If you can make decisions with a mindset that you are in control of your life, your decisions are completely different than if you are a prisoner in your situation.  When you really address issues in your business and life, you will find more alternatives than you thought possible.  The result will be an improved business and a renewed passion.

I hope you have a great and safe 4th of July.

Places to Start:

  1. Make a list of any problem areas in your business.
  2. Rank the list in order of severity.
  3. Have your team make a list and ranking also.
  4. Discuss the list with your team to see if there are common links and causes.
  5. Decide on one thing to work on that will improve your business.
  6. Go do it.

June 23, 2017 – What is Valuable to My Customers?

Posted on | June 23, 2017 | No Comments

Main Idea:

Do your customers love dealing with you?  Do you get a lot of griping about the cost of your product or service?  Do your customers refer other friends to your business?  Do you know why they buy from you versus your competitor down the street?  If you purchased an item that originally lists for $150 and you are able to purchase it for $75, are you buying a $150 item or a $75 item?

Expansion of the Idea:

I just finished reading a business analysis of Ford’s disastrous launch of the Edsel.  Based on the article’s analysis, I think Ford did a tremendous job of marketing the car.  They spent a large amount of money doing some very creative marketing.  The problem was that between when they originally designed the car and when it went to market, people’s taste changed and Ford didn’t know what was valuable to its potential customers.  They could not add any value because there was no way to change the fundamental offering.

Our customer’s perception of value is a critical item to understand.  Our products and services are worth different things to different people.  If you doubt this, think about a $100 bill.  What would you have done when you were a teenager to earn $100?  What would you do now?  Is there a big difference in the number of hours you would work to earn $100?  Compare your answer to what someone like Warren Buffett might do to earn that same amount of money.  Who would work harder to earn that money?  There is a big difference in hours worked for something that is objectively worth the same amount.

The only way to begin to understand what your product or service is worth to your customers is to start thinking like them.  Maybe you can go to their offices or where they spend a lot of time.  You can ask them questions and try to get inside their heads.  Below are some questions that might help if you think about them from the customers point of view:

  • Why are they buying my product?
  • What are they trying to solve?
  • What are their frustrations?
  • What are their desires?
  • How does your product enhance their life?
  • What is important to your customers?
  • How is your customer going to use your product?
  • What is driving their decisions?
  • Are they in a short-term mode of thinking or long-term mode?
  • Who is making the decision or is it a group?
  • Why do customers buy from your competitor?
  • Put another way, why aren’t customers buying from you?

By systematically doing this, you start to build a framework of what is valuable to your customers.  Of course, each customer is different but there are some similarities.  Ideally you sell to one main type of individual or business and it would be easy to go through these questions with that A client in mind.  However, if you have two or three different types of clients, then you need to go through these questions separately for each of your main types of clients.

Only by identifying what is valuable can you then identify ways to increase or market that value.  When you increase what is valuable to your customers, you increase your loyalty from those customers.  And that translates to improved profitability.

Places to Start:

  1. Make a list of 10 things that are valuable to your customers.
  2. Have your team do the same.
  3. Ask your customers what is valuable to them.
  4. Compare the answers.
  5. Put together a composite of what is valuable to your customers.

June 16, 2017 – What Story Am I Telling?

Posted on | June 16, 2017 | No Comments

Main Idea:

What are your priorities?  Can you clearly articulate them?  Does your team know what they are?  Does your spouse?  Do you live them?

Expansion of the Idea:

This past week I ran a financial planning workshop that was designed to help clients understand the basics of financial planning.  I felt that I needed to run this because I see a lot of situations where people are woefully unprepared for retirement.  I was discussing this with a friend who is also a CPA.  He asked me if I was moving my firm more into financial planning because he knew that my focus was on helping the small business owner improve their businesses.  I told him that my focus is still on the small business owner and this is a part of what I can do to help the small business owner.  There are benefits to non-owners as well, but the focus is on the small business owner.

However, this led me to think about what my true priorities are.  I am pretty clear on what they are.  I think my team knows them.  The question is whether I am living them.  I think I am because my time and money are focused on helping small business owners with their businesses.  I am investing time and money on improving my skills and those of my team.  I hope that my clients would see the same thing.

Yet I do know that I drift.  We all do.  Life gets in the way.  Emergencies pop up and you aren’t in control for a day, a week or a month.  You get away from the habits and practices that made you successful.  You are focused on playing whack a mole as opposed to fixing the bigger problems.  Your financial statements tell a story about your business and your strategy.  How you spend your time fills in the rest of the gaps.  It tells a complete story.

The question to ask is:

Is my time usage telling the story that I want it to?

If not, then you need to figure out how to get back on track.  There are three questions to ask:

  1. How are you spending your time?
  2. What are my priorities?
  3. What do I need to do differently?

This exercise should be done a couple of times a year to insure you will achieve all of your goals.  You are in a unique position to help your business.  Your business can grow only by doing the things that you are uniquely prepared to do.

Places to Start:

  1. Brainstorm with your team on the goals for the business.
  2. Then do the same for your goals, both personally and professionally.
  3. Keep a log of your time for a few weeks.
  4. Evaluate what you can get rid of completely, or delegate to someone else.
  5. Discuss with your team if there is something you should add to your schedule.

June 9, 2017 – What Can I Control?

Posted on | June 9, 2017 | No Comments

Main Idea:

How likely is it that you will hit your long-term goals for the business?  What are the levers that you can adjust?  How often do you adjust them?  What is the impact when you do adjust a critical piece?

Expansion of the Idea:

Over the last few months I have had a number of clients talk to me about their financial situation.  They were concerned they weren’t going to be able to retire well.  I decided to do a couple of workshops on simplifying the financial planning process because non-financial planners do not understand the words or the process.  The problem with not understanding is that people tend to put things off if they don’t understand them.   As I was doing this I decided to develop a simple spreadsheet that demonstrated the essence of what people need to do to retire well.  I ended up with three controllables that people can use.  These will have the most impact on whether they can retire in the manner they would like.  They are:

  • the age you are going to retire,
  • your annual spending, and
  • how much you are saving between now and retirement.

Everything else is fixed or is pretty much outside of your control.  The key takeaway is that the earlier someone addresses this planning the more they can impact it.

The same is true in our businesses.  We have certain things that we can control that will impact our businesses.  Here are my top five things that I think will impact small businesses:

  1. Our time
  2. Our mindsets
  3. Our investment in our people
  4. Our marketing and our messaging
  5. Our planning

Most small business owners focus on one thing, sales.  Most of us can’t go out and just sell one more item without extraordinary effort.  It is hard to find potential customers that are ready to buy our products or services, convert them to actual customers, deliver the product or service and make sure that they are ecstatic with our customer service.  It doesn’t matter what we are selling.  All of our people, systems, branding, marketing need to be working in sync to generate new business and then to keep those customers coming back and referring new customers.  And we need to be doing it in a way that is profitable for us and for our team.   When we have good sales months, it can mask whether our business is operating well.  When that happens, we don’t do the hard things to make sure we are successful in the long term.

I will go into more detail on these in the next few weeks.  I would encourage you to think about these items that might impact your future.  Just like our personal retirement planning, these controllables won’t automatically guarantee the desired results.  However, inattention to these controllables will almost always guarantee unwanted results.

Points to consider:

  1. What are the top 3-5 controllables in your business?
  2. Of those, what will have the most immediate impact if you focused on it?
  3. Which would have the greatest impact?
  4. Discuss this with your team.
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  • About

    These weekly ideas are brought to you by FitzGerald & FitzGerald P.C. For more information about how to use these ideas with your small business contact Tim FitzGerald at trfitz@fitz-net.com.