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Last week was a great week of our THRIVEal classes!
These classes are part of our THRIVEal Business Success Series. We offer free classes to our clients every May and November on various topics from Marketing and Branding to the proper tax structures to operate their businesses in.
Here’s a recap…
Monday- Running Your Business on QuickBooks: An Introduction - We touched on the “need-to-know” stuff. We don’t hit every participant with the whole program. That tends to overwhelm. We focused on letting our clients know what they had to do in order to be successful with the program.
Tuesday- Tax Class 101 - We laid out the various tax structures an entrepreneur can operate within, and explained what they were for. We got a little “techy” and had to use some tax-related language, but overall the group learned a lot. We went through a very eye-opening example of switching a client from a sole proprietor structure to an S Corp. We were marveled at the tax dough that can be saved by doing this.
Wednesday- Strategies for Success in Your Business - Clearly the best class of the week! It’s a topic I love and one that our participants responded to. We passed on a heavy theoretical dose of management theory to our clients, why they do business, and how we consult with our clients toward growth. We focused on technical people going into business to do business work, and how entrepreneurs have faulty mentalities when starting new businesses. With examples from a great book, The E Myth: Why Most Small Businesses Don’t Work and What to Do About It, we helped our clients transition their thinking from one of faulty thinking to one of successful thinking.
Thursday- Efficient Use of Business Technology - We brought in a guest lecturer for this one. He went through all of the various areas of technology that may help a startup or entrepreneur so that they might leave with one or two ideas of how to improve the efficiency of their office/business.
Friday - Future-Oriented Strategies: How to Budget for Your Business - We spoke of the value of looking ahead in every aspect of life (we all use future-oriented strategies in many aspects of planning for life). Budgeting for your business should be no different. We went through some of our high-end software that does regression analysis (statistics are so much fun!) on historical data and projects that data out into the future. Fun stuff!
Overall the classes were a great success, and I believe they were of great benefit to our clients. Thanks to all who participated. E-mail me at thriveal@gmail.com for a pdf of any of the outlines. Looking forward to November…
Peace out.
Thanks, Jason M. Blumer
We business owners typically operate day to day with no thought of what’s coming 5, 10 or even 20 years down the road. We fail to strategize about our future due to the busyness of the “Now”.
This can be a big mistake. For business owners, big changes are coming, and are currently happening, that can make or break your business.
I’m speaking of the relationship between the boomer generation (currently running the USA), the Gen X generation after them, and the Gen Y generation after them (also called millennials). How these different generations manage people, are managed by other people and want to work can carry huge ramifications to what you do or don’t do right now.
Our firm is highly focused on the generation that will be taking over leadership from the Boomers. They are in the Gen X demographic born approximately between 1963 and 1981. I’m smack in the middle of that generation, and love to serve my clients and prospective clients in the way that I love to be served. Our Thriveal Theory of operation in our firm summarizes the four main ways we see these clients behaving. These four points are:
1 Business owners and individuals with an eye to the future of business, noting trends and acting on those trends today
2 Business owners and individuals who take on the responsibility of financial management, proper operations and right strategies to succeed
3 Business owners and individuals who embrace excellent training and learning to succeed and accomplish their business and individual goals
4 Business owners and individuals who are poised to accept change in a global marketplace and benefit from its lessons and blessings
We see our Gen X clients embracing these values, and we want to be there for them when they call. We want to be strategic business consultants, helping our clients look forward, learn, accept change and prosper in their world of ownership.
If you are a client, then let us know how we may serve you in this way so that we can both grow together into the future… strategically.
Thanks, Jason M. Blumer
I just heard (on a podcast) the head of marketing at jumpup.com, a great site from Intuit, talk about the 65/25/10 rule. This rule was to offer some type of guidance on how to bill for your time once you make the jump to becoming self-employed. It was originally suggested by one of the members at jumpup.com.
Basically, the member was struggling with how to bill for her services after starting her own venture. After some time, she figured it out, and offered this model: of your total hours to be worked in your new venture, 65% of your time should be spent on billable client work, 25% should be spent on business development, and 10% should be spent on the administration in your company.
She used this model to create her new hourly billable rate. Here is an example: Before making the move to self-employment, you made $65,000 in your last job (including salary and all benefits). And now, you assume you will be working 50 weeks during the year for 40 hours per week, or 2,000 hours per year. This will equate to 1,300 hours being spent on billable client work (2,000 hours x 65%). Divide your last compensation package ($65k) by the hours to be billed (1,300), and you arrive at how much you can bill for your time - which comes to a whopping $50.00 per hour.
At least it’s a model, but a few cautions:
-this calculation only gives you what you were paid last year. But bill-for-time service industries typically have some type of mark up on the rate they are paying themselves in salary. This is because their hourly billable rate now has to cover their wage AND their overhead costs to run the business. Should the $50.00/hour be marked up 2.5 times to arrive at $125.00 per hour as a billable rate? Maybe so, but it may depend on the industry…
-the industry you are working in has a lot to do with how you calculate your hourly rate. Some industries allow for a certain amount to be billed depending on the market. For example, an attorney may bill out at $200/hour in a certain city, while a graphic designer may only be able to get $100/hour at the most in the same city. It depends on the market rate in that industry.
-niche work can sometimes bring higher rates, if marketed properly. An attorney billing out at $200/hour for general practice work may be able to charge $300/hour for high end health care work. Likewise, the graphic designer in our example may be able to bump her rate up to $150/hour if specializing in 3D renderings for engineers and architectural firms.
-what if you work more hours than 2,000 hours per year (which you most certainly will if you are self-employed), and don’t get 65% of your time billed out (which is hard to do - administration is so freakin’ huge)? Let’s say you work 60 hours per week for 51 weeks, or 3,060 hours per year. And let’s say you only get 55% of your time billed out. Now use the $65k you got paid from your last job and divide it by 1,683 billable hours during the year (3,060 x .55). Now you get a whopping $38/hour. You don’t want this calculation to lead you into charging $38/hour, when you should charge $75/hour.
Just some things to think about when using “scientific” methods to calculate your rates - sometimes it’s more of an art!
Thanks, Jason M. Blumer
This is #5 in a 10 part series on your Company’s Systems (see the original Systems Post here)
This fifth post references how to operate your company on a “flow of information”framework. That is, you want to set up your Company’s Systems to line up with the way in which information flows through your company.
There is a way in which information flows intuitively through your company, depending on your industry, your management style, your geography, your targeted niche and so many more. It may not always seem intuitive (what, with all the chaos going on at the office), but there is probably some kind of recognizable process that information takes on as it enters and exits your organization. Figure out what that process is… and manipulate the crap out of it!
You want to bend this “flow of information” process to your needs… your management tool needs, your reporting needs, your profitability measurement needs, etc. If you can manage this flow, then you can know stuff you’ve never known, and you can serve your client/customer in a whole new way (which to me, typically means more “Benjamins” coming your way).
Here’s how to do it:
1. Study the entry point of information into your Company. All types of info enter into your Company in many different ways. Sales leads may come into your organization through your website. Customer complaints may come into your company through the sales staff. New business ideas may come through regular attendance at trade shows. However it enters the company, and for whatever purpose, you want to know that process in and out. You may want to sit down with some decision-makers in your company and chart this ”flow of information” on a wipe board to become more intimate with it. Then…
2. Grab the information from “the flow” - never let valuable data slip through your company without being captured. ”Many people know many different things that many people don’t know.” In other words, there are a lot of people on the forefront of a company (where info initially enters the entity), and they know a lot of little things that could change the way a company operates. But though these people know many things they aren’t telling other people because they don’t know how these “many” things fit into the “flow of information” model for your Company (whew!). Create new forms to capture that info, get it into sales lead software, require sales staff (or whomever) to assist in capturing the data for future use, etc. Don’t just do it sometimes, announce the new policies and procedures to the whole company to capture this information, then you will be accountable to follow through and commit to capturing it. Explain to everyone why you are accumulating this new information and how it will make you a better company. New databases will be created, problems will arise that you’ve never seen before and new ideas will be generated just by studying the process of how info enters your company.
3. Manipulate this new fat mound of information with a vengeance. I’m never an advocate of implementing procedures and policies unless they have some benefit. Studying your “flow of information” only has benefit when you use the data. Implement new monthly meetings to analyze this new found data, make decisions with it and change your company from the inside out! I teach this simple step with QuickBooks when training so many of our clients. This software has such high-end capabilities to capture financial information, but it all depends on how my clients know their information flow (study it!) and how they grab that information. Otherwise, I can’t help them manipulate it AND CHANGE! And our firm can make QuickBooks do so much more than track financial info - we can make that software a management tool in so many ways, tracking referral sources, client account numbers sorted by state, regional customers, types of customers (ethnicity, age, marital status, etc.), effective branding, and so many more.
The “flow of information” framework in your company is so important to implementing your Systems. You must know it and operate your company around it. If you commit to this, you will know success, or you will at least know why you are not successful. Here’s to the flow…
Thanks, Jason M. Blumer
I subscribe to Marshall Goldsmith’s Ask The Coach blog from Harvard Business Review, and I recently listened to a podcast regarding his thoughts on his latest book, What Got You Here, Won’t Get You There. Fascinating stuff on the changing role of leaders in our world. It reminded me of our firm’s Thriveal Theory, why it was developed, and how we operate within that theory’s parameters.
There were five points he made on that particular blog post. Here’s a recap of a few:
1. In the future (which is now!) leaders will have to start thinking globally (he copied this from my Thriveal Theory… just kidding). Not even the small business can resign itself to the local geography anymore. Our world is global, and competition will be gained and lost at this level. The fact that business is global will impact how new leaders think, act, hire, buy, sell and win! I have no doubt that even our tax preparation and consulting engagements could start crossing the US borders in a few years (while we remain in our offices).
2. Businesses will begin developing alliances and partnerships in order to survive. And I feel this will directly impact and enhance the small businesses’ ability to compete in this global marketplace. As larger businesses fail to make quick decisions, respond to market trends (which are becoming faster and faster), and meet the needs of younger more demanding employees, small businesses can step into strategic alliances with larger entities to provide services they can not provide themselves. And expanding on Marshall’s thoughts here, I believe niche markets and “nano-focused” operations will be the place where the upcoming small business thrives! The fact that the world is global (even for small businesses), and that large companies can’t respond to economic change the way they need to, small business will provide the needed lightning-quick support, management, technology, manufacturing, staffing, etc. that is needed for the larger entity. The next 5 to 10 years will truly be the era of the small business. I’m thankful for Marshall highlighting this fact.
3. Marshall shared a great quote from Peter Drucker (the man who invented management) on the changes in new leadership models: “…the leader of the past knew how to tell. The leader of the future will know how to ask.” More and more workers are becoming what is know as knowledge workers. They know more about their tasks than the boss does. They know the information that is needed to run organizations. And leaders in the future will not be able to manage these individuals as they did in the past - “you go here, and do this,” “you do this task at this speed with this result.” Leaders may not know the stuff their employees know - therefore, they have to ask for guidance, how to do certain technological tasks, when to perform specific routines, and how best to perform them. Can you believe the impact this how on you and me as leaders? It’s amazing! If we continue operating under the traditional model of management (tell people what to do), then we are destined to fail in this new trend.
These thoughts impact me in huge ways. I feel like I have to hurry and tell my clients that are practicing the wrong models of management - before their businesses implode. And these models hit home with me in so many ways. I own a media, motion design and high-end videography and cinematography business with some other partners. I have no skills in these areas. I only possess the ability to manage tasks, people, a complicated business model, and obtaining the end product (satisfied clients and cash). Someone asked me, as a consulting CPA, why I own this type of company? I could only answer with the thoughts reflected in this post. You have to know how to manage now, not necessarily how to do what other people in the organization do (I can’t design one freakin’ lick).
The implications to these new management techniques are far-reaching. Don’t just read over them and shrug. Make changes now… and win!
I’m interested in knowing what you think…
Thanks, Jason M. Blumer
Wow! What a plethora of good material I had to read through during this January 8th Edition of The Carnival of Small Business Issues, maintained by the elusive CA. I feel like I just got a freakin’ MBA (maybe I did - hey, where’s my diploma?).
Anyway, on to the good stuff. Here is what I learned…
Operations
Are You Copying Genius? Or Creating Mediocrity? by Debra Moorhead was an awesome post on receiving good business advice. She so eloquently encourages us to hang out with the exemplary (and ditch the mediocre). Surround yourself with good people, copy genius, and so many other points I can’t recount here. Don’t miss this inspiring and accurate article by Debra!
Are You Exploiting Your Strengths? by David B. Bohl offers an interesting view on working on your strengths. That’s right. David points out that we normally tend to work on our weaknesses, but exploiting our strengths makes a lot of sense after reading David’s well-thought out article. It’s definitely worth a read.
Business Performance And Profit by Jim Sansi had a great post on actually calculating and measuring the implementation of business processes (instead of just wingin’ it). Using a simple example (that you should expand on), Jim explained how to measure profitability in order to help you know what type of systems you can and should implement into your company. Great stuff.
Five Things Racquetball Taught Me About Succeeding in Business by Change Your Tree was very informative (and made me want to get on the racquetball court again). Business does mirror so many other aspects of life… this was a great comparison. This game teaches us to be patient, know the competition, know the angles, etc.
An Independent Consultant’s New Year’s Resolution, and How to Keep It, in 7 Steps by Tim King makes some confessions and commitments to improve in the new year. How? With his seven ethereal steps, of course (including): visualizing yourself completing the steps, list the mental challenges and see yourself doing it anyhow, etc. A wonderful New Year’s article (and he got in a few days of his “write 500 words per day” resolution too!).
Starting the Year off Right by Robert D Flach offers good reminders for all you self-employed people - start NOW tracking your income and expenses for 2008. Tax time (in 2009) is no time to get organized. He reminds us of the possibility of IRS audits for the nano business owner, and that you want to be prepared should the IRS chose to show YOU a little extra love this year (i.e. auditing you, that is). Great advice worth heeding.
Marketing
Re-Evaluate and Measure Your Marketing Strategy in 10 Steps by Jay M helps us with the “science” of marketing. With 10 ways to expand your marketing campaign, Jay spells out in clear and easy language how to review what you have done, what you should be doing in the future and analyzing how you did financially. Wonderful material.
Marketing Tip - Train Your Team on Promotions by Ingrid Cliff makes such an important, often over-looked point to train your team on the new promotions offered to your customers/clients. We all get so excited about our new stuff that we fail to brief the team on how to best sell it to the public. Great reminder from Ingrid!
A Subtle Conversion Rate & Response Booster From 3 Masters by James Alenteal gives some straight forward advice on conversion at your site or blog (i.e. turning visitors into readers and/or buyers). He gives examples (here, here and here) of three different people (actually four - see here) who have implemented some interesting conversion pyschology on their visitors. It’s great stuff and takes just a minute to read (watch out - prepare to be converted!).
Bring the Love Back by Edith Yeung offers some quick advice on what your customers need (and the reminder that you might not be providing it). With a funny video reminder, Edith tells us it’s time to give some love back to those customers… after all, they may not feel like you love them anymore.
The Power of Multivariant Testing by Jim Logan speaks to the need for testing of any marketing campaign launch. But testing the success of a campaign can be daunting (how do you test direct mailers, their use and impact in an inexpensive way? You have to change things and send them again). Enter the world of multivariant testing online. This is seemingly a powerful tool that lets you test multiple variables online all at the same time. Jim knows what he’s talking about in this well-written article.
Blogging and PR: Six Principles to Live By by Laura Spencer offers six basic ways to get your business blog rolling. They are straight and to the point, and come from experienced bloggers. This is an article for all of us…
Mortgage Issues
When Should You Refinance? by Ryan from CareOne Credit Counseling offers some very practical advice on the decision to refinance your home, and for what reasons. Use some of CareOne Credit’s handy dandy calculators or budget planner to help you make the right decisions. There’s a lot of useful info on their site for those interested in repairing or enhancing their credit standing.
The Mortgage Loan Process by Ryan from CareOne Credit Counseling urges us to know the mortgage loan process before the surprises arise. Walking you through the three basic steps of acquiring a mortgage (1 Applying for a loan, 2 the processing of your loan, and 3 the loan closing), this article provides very practical advice for the new homeowner, as well as those buying again for the second or third time.
The Power of Pre-Approval by Ryan from CareOne Credit Counseling provides yet another awesome and well-written article concerning a different aspect of the mortgage process: pre-approval. The power of pre-approval during the loan process offers some very basic benefits to the future homeowner, that being ultimate speed of the loan approval, gaining bargaining power while house-hunting and offering comfort to the seller during the process.
Taking Advantage Of The Equity In Your Home by Ryan from CareOne Credit Counseling offers a great example of how much equity you can pull out of your home. Explaining the difference between a line and a loan, Ryan details various terms, rates and costs to the homeowner during the equity-pull-out process. Again, well-written content from this involved and detailed website.
General Business
Evaluating A Business Opportunity by John Crickett offers so many great tips on evaluating your move into business ownership. There are tips on avoiding scams, making sure you’re the right fit for the business opportunity and making sure the move is profitable. John’s blog is chocked full of so much more too. It’s worth a visit (again, again, again and again).
Does Bad Personal Credit = Bad Business Money Management by Scott Allen explores whether the method by which you manage your personal finances spills over into how you manage your business finances (for better or worse). No concrete answers here (except that Scott feels he is better at managing his business finances over his own personal finances), just good exploration into the possibilities. Well written and insightful.
Top Ten Opportunities in 2008 for Personal Businesses (article provided by Dawn as a guest blogger on Small Business Trends) by Dawn Rivers Baker gives a rundown of some upcoming opportunities (along with some convincing statistics on SMBs) for nano-businesses. And Dawn has the experience to backup her predictions. Ready to start your new business in 2008? Why not start with Dawn’s suggestions.
Is the Sky Falling? by Mike Buckleygives us a candid rebuttle to the latest US recession scares in the news. He reminds us that even in a recession, there are still many opportunities for the small business. You may have to work a little harder, but you can do it.
Learn the Proven Money Making Keys to Success E-commerce by Dan-O gives some enlightening information of doing e-commerce well. With a very interesting and brief history of e-commerce, Dan-O explains how personalization and online communities (among other ideas) make e-commerce sites enjoyable. And enjoyable experiences online tend to bring customers back again and again. Good reading from an experienced author.
Social Security by Marc Blumer (is the name familiar… he’s my dad) offers some guidance on whether to take social security earlier or later, depending on your situation. Interesting stuff for those in retirement mode…
Miscellaneous
Finding Your Special Talent by Christine (all the way from France) shows us quite poignantly how trials can be avenues into embracing needed change. And maybe this needed change can be a door to a new money-making venture, a new job, new fields of opportunity, a new life… you never know what’s around the next corner. Go ahead… go look and see what you find.
5 Questions You Need to Ask Yourself Before It’s Too Late by Liz Fuller offers her regular straight forward advice on reviewing what went right this past holiday season, and how to perpetuate that behavior. How? Write it down! With 5 simple questions, Liz encourages you to make a note of the past, and apply it to the future. Good stuff.
Can You Really Achieve Total Success? by Dr. Joe Capista highlights the often-forgotten parts of what Total Success truly is. It’s not only defined by dollars. Where do you stand on his primary four areas of Total Success? They are Family (Relationships), Physical (External), Spiritual, (Internal) and Work (Business). Many decades of wisdom on his blog, and in his books.
Total Success is Determined by Your Thoughts, Beliefs and Actions by Dr. Joe Capista talks about the ingredients to Total Success. They are found in setting goals and being determined to seeing those goals through to the desired outcome. Truly a well-rounded definition to success.
Be A Balanced Mom by Iamawahm gives Moms who work at home 8 helpful tips to make work happen… and stay balanced. From knowing when to ask for help to fighting the guilt that often plagues the work-at-home Mom, this Mother of three speaks from heavy experience.
A Few of My Own Posts
Creating Customer Trust and Loyalty… with Consistency
Selling Yourself… to Your Employees
Excellent Networking… by Playing to Your Weaknesses
Whew! I’m worn out (plum tuckered out, as they say it down here in SC). This material was very enlightening. I hope you enjoy the recaps as much as I enjoyed the reading (I got the best end of the stick). If you are interested in hosting the Carnival of Small Business Issues, feel free to visit here to sign up.
Here’s to another great edition! Take care now, ya hear!
Thanks, Jason M. Blumer
Are Your Resources Stretched? (This is the #4 post in the Systems Series)
A lot of small businesses stretch their resources to the point they may snap! Hey… resources are valuable things when you’re trying to make a living. Quit fiddling with them like they grow on trees. You know, resources like your employees, your money, your line of credit, your computer system, your knowledge, the 24/7 we all have, your amount of sleep, etc.
Implementing Systems (those magic little engines that invisibly run your business like clockwork) in your company will take a lot of resources (mentioned above), so BUDGET those resources. When it comes time to implement systems, you want some resources left to throw at the implementation of your Company’s Systems. You will be glad!
Among others, here are some overarching resources you’ll need to implement those valuable Systems:
1. Money. Moolah. Cash. This stuff really does spend well, doesn’t it? And it helps when you are about to start implementing Systems in your company. Some major assistance you may need when implementing Systems may be professional assistance. We are hiring a PR firm to send our firm soaring in 2008, and it will cost money. This firm will be key to continuing the marketing/branding Systems during this year and in the near term. I hope my clients see the value in my services (and they cost money). My clients’ Systems of tax planning, cash management, business operations can be greatly enhanced with my services. Cash is obviously one of the greatest resources you will commit to the implementation of your Company’s Systems. Make sure you got some when it’s time.
2. People are also a huge resource (I hope that was obvious to you). People cost money, and good people cost more money. Payroll is the biggest expense on a service-based businesses’ P&L. But the resource expense is worth it. You can’t implement good Systems in your company without good people to uphold, carry and better those Systems. It takes people to put “legs” to the Systems. And remember, you get what you pay for. Low pay means low experience and education, which means less effectual Systems. And that hurts EVERYONE in the company. It’s all about the folks…
3. Time. Whoa. That is something nobody has enough of. Time is a valuable resource, and can certainly be wasted. Thankfully, it can be enhanced too… with the right Systems. But you need time to make the right Systems which in turn give you more time (ahhhh… its all so confusing!). Be careful with your day. Each minute wasted is a minute not devoted to the right priorities in your Company… one of those being to implement good Systems to help your company run smoothly, more profitability, and with joy. Take time AWAY from those unprofitable things that are stealing your time and GIVE it to those tasks that enhance your business and relationships.
These resources are huge. There are many other, more specific resources I could touch on, but I felt these overarching ones were the biggest and most important.
Let me know how you manage these three resources…
Thanks, Jason M. Blumer
We are still covering the 10 issues/reasons behind installing Systems in your Company (What are Systems? ) - this being #3 in the Series
Reviewing the Systems in your Company is a serious investment. Installing them is even more serious (because you followed through). These magic little engines that run your company like clockwork (while you, as the owner, may be away) eliminate inefficiencies in your operations. And eliminated inefficiencies typically mean
(1) more profit - eliminating inefficiencies equals eliminating unnecessary expenses, thus creating more bottom line
(2) happier employees - when employees know what to do and what is expected of them, they tend to be happier
(3) customers/clients who are happy - likewise, when your customers know what to expect from you (consistency), they feel more secure and tend to trust you more (which should lead to more sales), and
(4) more time for the owner - a growing company needs less of the owner, if possible. Managing that growth is a full time job for the owner. She does not need to be managing inefficiencies
I need more time in our company. I’ll be hiring some new employees in the new year so I can devote more time to branding our firm, networking with big wigs, and bringing in more business. The systems installed in our company are going to really help me in the new year when I’ll be busy OUT of the office bringing in new business. I anticipate my company running with lesser inefficiencies than before simply because the systems have been installed. Now, everything doesn’t always run smoothly. But you have to have systems in place before you even know if they are working or not. In fact, installed systems bring even more inefficiencies to light (…that you can further eliminate). They will probably be the smaller inefficiencies that you never would have noticed had you not installed systems in the first place. Pretty freakin’ cool. Another Thriveal Mantra: “When you do things right, it helps you continue to do things better.” Pretty freakin’ cool.
Thanks, Jason M. Blumer
As mentioned in my original Systems post, Implementing Systems into a Company’s karma requires initial time investments from the owner.
A good marriage doesn’t just happen. It takes time investments from the “owners.” Its the same way with installing Systems into your company (what are Systems?). And, particularly, it takes the owners’ time. The owner has to be the one to develop the systems, sell the value of the Systems and to INSTALL them. Probably the biggest initial time investment required of the owner is found in designing the Systems. They must be designed properly. And, frankly, that takes a lot of time.
Remember, these Systems will be the underpinning and foundations for how your company operates into the future. Properly laid foundations ensure a stronger building. So, when considering the Systems needs of your company, consider the following:
-Design systems that will produce the greatest amount of outcome for the smallest amount of input. Make sure your people don’t have to do a lot to make the processes happen. Spend time thinking through the beginning and ending outcome of each designed system. Think through how an initial need in your Systems will come about (e.g. a customer calls with a complaint), and design a system in your company to address this issue (e.g. receptionist takes down the complaint on a Customer Complaint Form and forwards the document to the Sales Manager for further follow up). Make sure the form that drives this part of your system produces a great amount of information that can be analyzed later when addressing your downturn in sales.
-Spend time making sure the Systems, and forms that often go along with the Systems, are not overly complicated. Ensure that enough information is captured inside of the System, but don’t capture more than you need at any one point in the Systems process. Highly complicated and structured Systems don’t typically get installed very well (even the owner ignores them sometimes). Again, spend time going through the newly created processes and make sure all levels of your company can understand the instructions and what is to be done and when. Having a second set of eyes on this part of the installation can make sure your overly complicated Systems are boiled down to simple necessities.
As owners, it is important to remember that the initial time investments will reap huge benefits later in your company’s future. Time spent now is time well spent. You will have to think through these processes outside of the office to eliminate business interruptions. But the rewards your company may reap will be a true blessing to you, your company and your employees.
Thanks, Jason M. Blumer
This is the first installment in the Systems Series - Your Company’s Systems Must Be Installed.
In my original Systems post (found here), we talked about 10 reasons/issues behind the importance of your company’s systems. The first topic involves installing your company’s systems. In other words, you can’t just design a system in your office - you have to install it. Here are a few ways you can formally install the systems:
1. Perform a re-hire. If your structure is struggling, then start a new year with a re-hire. Re-hire everyone to the same position, but this time do it with systems in place for everyone to follow. Interview them again and let them know of the systems in your company, how they operate, why they were set up in this particular manner, and ask for buy-in. They’ll feel like they’ve been re-hired into a new company.
2. Hire a consultant to install them for you. Obviously, I like this one. I do this for my clients through my consulting CPA firm. But seriously, if you can’t enact the change then you may need a professional to do it for you. You may be too busy, or you may just need some guidance; either way, a good consultant can be seen by your employees as having some expertise in this subject area and may effect more buy-in with your staff.
3. Install the Systems with your annual performance review process. I’m assuming you do an annual performance review with all of your employees. Part of the process should be some one-on-one time talking about the company’s systems, what you expect regarding the performance of these systems, that employee’s role concerning the systems, and how to perform them properly.
4. Make sure you “sell” the systems. Tell your employees why the systems were created, why they are good to follow them, how they make your company better than all other companies, how they will make everyone in your organization successful, etc. If they see your enthusiasm about the systems, then they will be more apt to follow them.
Thanks, Jason M. Blumer
<—– Beginning of the Systems Series #2 in the Systems Series —–>
The lack of Systems, those magical little engines that run your company like clockwork, may be the downfall of your company’s growth!
My basic post on your Company’s Systems (found here) showed us ten (10) very important aspects to a Company’s Systems, and how they make your company successful. And successful here can be defined in many different ways. Because this concept may be a little confusing and some what misunderstood, I want to address each of those 10 aspects in a 10 part series. But, before we embark on this enlightening journey, let’s address the last two questions I posed at the end of my original Systems post.
1. Why Don’t Company’s Implement Systems?
and
2. When Is It Time To Formally Implement Systems?
Take the first one first. Put simply, there is one reason why company’s don’t implement systems: Management doesn’t KNOW they need to implement Systems. What the heck are “Systems” anyway? Real quick, your company’s systems are those magical little engines that run your company like clockwork while you go do other important stuff. Maybe you, as the owner, need to go start another company, or play golf, or go on vacation. Your systems, or predefined and implemented structures by which your company operates, can make sure your employees, vendors, customers, etc. do what they are supposed to do while you are away.
But management doesn’t know they need such engines. They don’t know they exist. They don’t know of their value. They don’t know how to design them. And that’s Why they don’t implement them.
The “When” of the implementation can be tricky. You implement systems before you need them. You anticipate the need for systems. This is almost the same thing as anticipating growth in your company. When growth occurs, do your systems help your company run smoothly, or do you enter into the “chaos zone”? If you have decided to run a company, then you need to go ahead and orchestrate the use and design of systems (before you start work!!).
This is all a franchise has to offer… a system. They know how to print, or change oil in 15 minutes, or pick up your junk. But they also know what Systems are for, when to implement them and why. And guess what? They are selling their system to you. Pretty cool, huh? And for most people, it’s a pretty good idea to go into a business that already has a system set up. If you follow their “system”, then you can have a somewhat safe guarantee of your income and future.
So, work on your company’s systems and prosper (and then sell your company system as a franchise).
This series will go into further detail as to the implementation of systems… why and when.
Thanks, Jason M. Blumer
You don’t think you have to sell yourself to your employees… just because you’re the boss?
You can try that approach, but effectiveness and followers are awarded to those who sell themselves to their employees. This can also be thought of as “passing on the vision.” Visionary people are awarded followers… followers that assist you in achieving your goals. And they become faithful followers because they know you believe in your vision. Then they eventually catch on to the vision as well. But its not just to use them to get what you want - its about giving them the vision they want to latch on to anyway. Why not go ahead and give them your vision?
But don’t try to sell a cheap or “adhoc” version of the vision - one created on the spot. It’s got to be your REAL vision. My firm is changing, and that means we’ll be adding new staff at the turn of the year. I owe it to my staff to let them know why they work there, why we are the best and what we offer our clients. To do this, we’ll have a “visionary” meeting the first day we are all together in the new year. I have big dreams for our firm, and I want my dreams to be their dreams too. The best way to get them on board is to sell myself to them. Then they can believe in the person who has the dream!
And once are employees are on the street, and someone asks them what its like to work at our firm, they’ll begin selling the vision. And selling the vision ultimately produces clients who believe in the vision as well. And clients then refer new clients… and so on… and so on… all because we were committed to passing on the vision of our firm.
Let this upcoming year be the year you start selling yourself to your employees… for their joy at work, and the furtherance of your business!
Thanks, Jason M. Blumer
Did you know you have to change your mind if you are a business owner or entrepreneur?
Inevitably, there comes a point in a business owner’s mind, when there needs to be a change. The change I’m referring to will allow for (1) future growth in your business, (2) an enhanced ability to manage employees, (3) a more rewarding sense of business success, and (4) a means to take you out of the details of your company while you look to the future (one of the hallmarks of Thriveal theory), and so many more!
A business owner or entrepreneur must change their mindset from a worker to an owner. Many of my clients continue to harbor a worker mentality, while their businesses struggle. They want their business to grow, but they are often the hindrance to the growth. The landscaper has to eventually give up digging holes; the plumber has to go to a chamber of commerce event eventually; the graphic/web designer has to allow someone else to think a new thought and design; the contractor has to put his hammer down and sit in front a computer sometime; the professional (lawyer, dentist, chiropractor, CPA, engineer, etc.) has to go out and network with other professionals, etc. That is, if you want to stand out among the crowd… the crowd that is always going to be destined to working for the man.
And where do these business owners need to start to make their business successful? In their minds! Making the mental shift is sooooooooo hard for so many that love what they do (landscaping, accounting, designing, etc.) - but the mental shift from a worker to an ownerMUST happen to ensure your business’s success.
So, is your company growing? Are you hiring employees to do what you used to do? Then go ahead and make the mental shift. Change Your Mind from a worker to an owner. You’ll be glad you did.
Thanks, Jason
1 Entrepreneurs are rich. When we assist new clients with the purchase of a business, we tell them that you are buying a job. And hopefully you’ll get a paycheck. Everything else is considered gravy. Does that discourage them? Sometimes, but frankly, that is what they need (come back down to earth!). The rich entrepreneurs you read about are the ones in the headline news, but it is not the norm. But don’t despair, working for yourself is one of the most fulfilling experiences you will ever go through. Being the boss is the bomb!
2 Entrepreneurs are reckless with risk. Maybe broke entrepreneurs are risk-reckless, but successful entrepreneurs weigh their risk heavily. And they do it over time. I tell my clients to give their ideas six months to let the idea bake, do some analysis (to see if the door-to-door air filter sales idea will work) and know your market.
3 Entrepreneurs don’t have to work long hours and get to control their day. Wow. That’s funny. I wish someone had told me that when I had to go get a paperroute to cover my income while building my business. At least I didn’t have to clean the toilets (my Mom did that because I worked out of my parent’s home for a while). Four and a half years later, and exponential growth, I still have to work three or four nights at home.
It’s hard on the family - but we still say the benefits are better than “working for the man.” We’re happier too. And I always tell my kids that I have to obey people just like they do - my customers! They control my time.
Thanks, Jason
In consulting, I see many businesses fail to make investments in their Systems. What are Systems?
Your systems are little engines that invisibly run your business like clockwork. Once installed properly, the Company’s Systems don’t require heavy input from the owner or top management. The System almost runs without you doing anything to make it work - eventually.
The antithesis to Your Systems is chaos. Is your business in chaos? If I interviewed your employees, would they be able to tell me what they do, or what is expected of them? Do you know what area or division your employees fit into and the purpose behind that division? Your Systems help define these key management elements behind your company.
Your Company’s Systems:
1 Must be installed
2 Take initial time investments from the owner to implement properly
3 Eliminate inefficiency
4 Must have resources commited to them to operate properly
5 Operate on the foundation of a “flow of information” framework in the company
6 Must be trusted, tested and monitored
7 Must be designed effectively to take on new and explosive growth
8 Require initial visionary thinking from top management
9 Must be flexible enough to be changed
10 Should be created at the most opportune time in your company’s history to eliminate future failure
More on these Systems topics later, and “Why Don’t Company’s Implement Systems?” and “How Do You Know When It’s Time To Formally Implement Systems?”
Thanks, Jason
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