February 2011
4 posts
Accrual Accounts
One of my early mentors taught me the value of a accrual accounts. When you own or run a small business the last thing that you want is for a surprise to destroy your earnings for a month or quarter. The more for which you accrue, the less your earnings volatility. Banks especially like to see steady, not volatile. earnings.
I suggest you set up accrual accounts for most, if not all of the...
January 2011
8 posts
Associate Recognition... on a Budget
In these times of belt tightening, how do you give recognition to your associates without it busting your budget? Everyone likes to feel appreciated, especially when they are doing more for less. When I was in business school we reviewed a study that showed the number one thing that employees wanted was recognition for a job well done. This was followed by opportunities for advancement, being with...
Developing Talent
I, and many business consultants such as the renowned Peter Drucker, feel that the most important job of a CEO is developing people. In my company I probably spend more time on finding, interviewing, hiring, managing, and in some cases terminating, people than anything else. As mentioned in a prior post, we send out a net promoter survey each quarter and our customers consistently rank us much...
Weasel Words
“Weasel words” are words people use to weasel out of a commitment or to avoid responsibility for something. I first heard this phrase from an attorney we worked with at one of my prior companies. I think it is a very fitting term. Whenever I hear someone use one of the below phrases I think of that name. Some of the weasel words that bug me the most are:
“To be perfectly honest with you”. I have...
Participating in Trade Associations
No matter business you are in, there is one or more trade association representing your interests. Are you active in any of the trade associations for your industry? I’m not asking if you belong to a trade association, I’m asking if you are active in it. There is a big difference between being a member of an association and being active in it. Why should you be active in one or more trade...
Turn Dead Stock into Cash
Any business with inventory has a certain percentage of that inventory that is dead stock or obsolete. However, most businesses let the dead stock sit on the shelves gathering dust for years. I prefer to turn dead stock into cash even though that means taking a P&L hit when you do it. I would rather take a loss on the P&L and turn dead stock into cash than hope someone will come in and buy...
Effective Complaining
Most of us don’t like to do it, but from time to time anyone involved in business needs to complain to a supplier or vendor about a problem. (Or you need to complain about a personal problem.) How you complain determines how quickly your complaint gets resolved, or if it gets resolved at all. As I mentioned in my previous post, I had a serious problem with my furnace in my home recently and I had...
Complaint Handling
All companies make mistakes, but how you handle them is what separates the men from the boys. Recently I had an experience with the company that services my home HVAC system that is prompting me to do this posting. This company has been to our home six times in the last two weeks and still hasn’t fixed the furnace that heats the addition to our house. Luckily, the main part of the house has heat...
