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Focus on Solutions
6
Activities Small Businesses can Do NOW to Survive and Thrive
 The other day it felt as if I was stopped by
all of the red lights in the world! And, of course, I sat at
each of the red lights for an eternity. My psyche only saw the red,
but reality was much different. In reality, I counted the number of
red lights compared to the total number of lights and I only
caught 1 out of 3 lights. Why was I so sensitive to the red lights?
Also, I thought about how much I could not control the red lights or
green lights. What could I control? I could control my route
selection and the time I left. Perhaps I should try a different way
with less lights or leave five or ten minutes earlier? We can apply
the scenario to small businesses.
The current red lights to small businesses are the
European Debt Crisis; US banking system weaknesses; financial
institutions continued change to loan regulations (which has resulted
in not lending to small businesses); long-term unemployment risk of
customer payment; and the US Deficit concerns just to mention a
few. Small businesses cannot control these red lights. So what are
the items small business can control?
Here is a list of "green lights" which small
businesses can control:
Focus on profit margins instead
of growth
- Review
pricing from vendors, perhaps more quantity leads to lower price
per item (i.e. buy in bulk when it leads to better value)
- Discuss
terms with vendors, don't just by at regular price without
discussion or negotiation
Focus on smart cost-cutting
- Reduce
expenses without destroying value
- Review
merchant service fees
- Reduce
bank charges
- Find
a financial institutions which best meets your needs with the
fewest fees
- Request
refunds of bank charges
- Review
payroll service fees
- Find
the best value (not necessary lowest fees) for payroll service
- Request
lower interest rates from credit cards
Focus on debt reduction instead
of increase risk
- Use
after-tax profits to reduce debt
- The
sacrifice today will help alleviate cash flow pressure in the
future
Focus on specific customer
relationships and payment terms instead of doing business with
everyone
- Identify
and target specific customers
Focus on specific product and
service lines instead of a Jack-of-All Trades approach
- Be
known for excellence in very specific areas, not average for
everything
- Which
products and services have higher volumes and gross profit
margins?
Focus on enviroment and replace
bad attitude employees with great attitude team members
- One
bad apple can spoil the entire bunch!
- Use
the high unemployment to your advantage
- Find
new team members which are better long-term fits for your
business, environment and philosophies
Focus on Motivating Team Members
- Give
incentives and surprises for good jobs and to motivate your team
members to continue to improve
- Instead
of bonus, try giving an items which they would enjoy or use on
a daily basis
- One
Dentist provided her team iPads 4 months ago instead of a
bonus. The result, the moral is high, the team bonds at
lunch when sitting around the table all with iPads in hand, and
the team members brag to their clients how wonderful the boss
is!
- Money
is not always a good incentive because individuals usually
believe they are underpaid. A bonus is not always
appreciated because they team member believes "they deserve
more".
The economy for small businesses is likely to stay
volatile. These changes to your business operations and financial
positions are critical to survive and thrive. Please call me should
you have any questions or would like to discuss these topics in lore
specific terms for your business.
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