|
Evaluate in the dog days
|
 |
August 23, 1999: 1:49 p.m. ET
August is the perfect time to take a look at your business and at your life
By Jane Applegate
|
NEW YORK - August is the perfect time to take a close look at your business and your life. At this point, there's still time to get away before Labor Day and make some substantial changes before New Year's Eve.
Here are six things to consider as part of your summer review:
1. Take the financial pulse of your business. Carefully review your accounts receivables and make a list of the slow payers and the no payers.
Contact everyone on the list via phone, mail, fax or e-mail. Be very clear that the account is past due and you expect to be paid immediately.
If you are financing deadbeat customers, it's time to revise your credit policy. Ask people for a deposit before you start the work or place an order. Deposits immediately boost your cash flow.
Review when you are being paid. Despite a robust economy, many companies are holding on to their cash by stretching out payments to vendors.
(Example: Although our contract with a company calls for payments to be net 30, we are paid net 45 or worse. When my bookkeeper called and politely pointed out the late payments violated our written contract, the accounts payable person laughed and asked, "So, what do you plan to do about it?")
As part of your summer financial review, speak to your business banker to make sure you are getting the best rates and services. If you maintain large balances, you shouldn't be paying any fees for basic services, safe deposit boxes, travelers' checks and so on. Inquire about:
- increasing your credit line.
- getting better interest rates on loans.
Take a few minutes to review those annoying statement stuffers. Big companies are offering small business owners all sorts of great discounts on shipping, car rentals, long-distance calls, hotel rooms and so on. These discounts are easy to sign up for and can really add up. Brokerages, like Merrill Lynch, are also aggressively pursuing small-business customers with a variety of great financial products and services.
2. If you haven't hosted a company picnic or mini-retreat this year, there's still time this summer. Rent a space in a local hotel, club or conference center. Arrange to bring in soft drinks and snacks, in addition to a full lunch or dinner. Hire an outside facilitator so you can participate in the discussions. Write a clear agenda requiring key managers to report on what's going on in their departments.
Focus the discussion on what's gone right and wrong since January. Don't point fingers, but do hold people accountable for their decisions. Once you have reviewed what's working and what's not, outline changes and set some realistic goals to achieve by Christmas. (End the meeting by establishing your holiday work schedule. Thousands of businesses close down the week between Christmas and New Year's Eve, which makes a lot of sense and boosts morale.)
3. Think about how to provide incentives and rewards for your best employees. This is critical, since the tight labor market makes finding and keeping good workers a top concern for business owners. Invest in training at all levels. Bring in outside trainers or send your employees to adult education or community college classes. Ask your staff what kind of high- and low-tech equipment would boost their productivity and morale. Smart business owners give people the tools and equipment they need to be successful. (The pending congressional tax package would give you an added incentive to spend money by increasing the annual business equipment expense deduction from $19,000 to $30,000 in 2000.)
4. Look closely at your marketing materials, from your business cards to letterhead. You can have the best product or service in the world, but if people don't know about it, you'll go out of business. If your image needs updating, hire a graphic artist and spend a few thousand dollars to give your company a fresh look. (We recently incorporated our sole proprietorship, which gave us a good excuse to design a new logo and print new letterhead, envelopes and business cards. The new look and printing cost less than $3,500.)
If you don't have a Web site, consider launching one. Even a simple site with product and pricing information will increase your ability to serve customers around the world.
Revise your company brochure or catalog and send it out to all your customers. Update and expand your mailing list. Look into sharing lists with a compatible business rather than buying lists from a broker. Try some low-cost marketing promotions. My favorite are two-sided, color postcards (you can buy 5,000 for under $300) and decals. We promote our Web site with thousands of decals, sticking them on everything we send out and on the covers of my books.
5. Think about how you can raise your profile in your industry and community. Since you are the best spokesperson for your business, you should be out there speaking at industry meetings and conferences. Find out who sets up the programs for your industry meetings and volunteer to speak on or moderate a panel. Approach the reporters who cover your industry and offer to be a source or provide background information. Reporters and editors are always looking for new, credible sources of information and solid story ideas.
Consider writing an article or commentary on a topic you feel strongly about. Look into mentoring a young entrepreneur in your field.
6. Finally, take a look at what you are doing to take care of yourself. Since so many people depend on your leadership for their livelihood, you can't afford to lose your health or stamina. This is the time to keep that New Year's resolution to quit smoking, get on that weekly exercise program or have that physical exam you've been putting off. Take some time off, at least a long weekend. Sign up for a non-work related seminar or class. Read a book that's been sitting on your nightstand for weeks. Take your spouse or partner out for a lavish meal and celebrate your good fortune. Take a day off to just think about your business and where it's heading into the next century.
(Jane Applegate is a syndicated columnist and author of 201 Great Ideas for Your Small Business. For more small-business resources, visit janeapplegate.com.)
|
|
|
|
|
|
JaneApplegate.com
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
