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Keep Your Projections Realistic: How Small Business Owners Can Realistically Prepare Their Finances

Whether you are a seasoned small business owner or the founder of a startup company, you have a lot of decisions to make. Choosing how to fund your company is one of the first decisions to make. To fund your company and stabilize your financial health, business owners need a realistic financial projection. With a few tips from ITB Partners, you can learn how to create your projections.

Why Emphasize the Importance of Financial Projection

Without a financial projection, you may feel the burden of financial uncertainty. You are more likely to feel overwhelmed by unexpected costs. Accurate projections allow you to make strategic decisions. For example, a realistic idea of your financial situation allows you to know whether you can afford to hire or fire employees or invest in new products.

If you do not create a financial projection, you may not know your expected business income and cannot calculate your business’s taxes for the year. Many states require you to file an annual report every year. The annual report informs interested individuals about the financial successes and failures of public entities, non-profit organizations, and private corporations. The majority of states require you to file a report and pay taxes to remain compliant with local laws and to remain in good standing. In some instances, you could face penalties in the form of fees or business revocation if you do not follow the rules, so it’s best to get expert help when filing your annual report.

How to Create a Realistic Projection

To create a realistic projection, you may want to create a template. Your template should include the following documents:

    • Sales forecast
    • Payroll costs
    • Cash flow
    • Operating expenses
    • Income statements
    • Break-even analysis
    • Cost of goods
    • Balance sheet
    • Depreciation for your business

Instead of falling into the trap of being too optimistic or too cautious, create two scenarios. One scenario can be optimistic, while the other stays cautious. Give yourself the freedom to create multiple different scenarios. Do not guess the top-line number for your sales channel. Instead, outline each step of your process. Identify the market, estimate the percentage of the market you aim to meet through marketing and estimate how many will visit your business and make a purchase. Next, make an estimate of how much individuals may spend on average.

Your financial plan should not be static. Constant Contact suggests reviewing your plan at least once per year. You cannot always prepare for every situation, but you should reassess and take most events into consideration. If you plan to make a large purchase in the future, you may also want to reassess.

How to Simplify Your Financial Projection

A simplified projection includes a balance sheet. This is an overview of your company’s financial health. Include your assets, owner’s equity, and liabilities. You should split the balance sheet to have assets on one side and owner’s equity and liabilities on the other.

To make it simple, work with a professional who understands the industry. For instance, working with an accountant will help you realistically predict your expenses, profits, and sales. Utilize premade templates and software that allow you to input numbers and finish the projection seamlessly.

Using Accounting Software for More Accurate Projections

Creating projections can be a time-consuming and complicated process, especially if you don't have experience with bookkeeping or accounting. This is where accounting software can be a big help. Share on X For example, if you run a construction business, construction accounting software can automate many of the tasks involved in creating financial projections, saving you a lot of time and hassle. And because it can help you track your actual results against your projections, you can quickly identify any discrepancies and make necessary adjustments. This software also allows you to manage job costs and contractors.

When it comes to making financial decisions for your company, a realistic financial projection is critical. Make sure to understand its importance, think realistically, utilize accounting software, and simplify the process as much as possible.

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Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

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What do CEO’s Need? Velocity via Intelligent Business Processes

Brightwater Consulting

At Bright Water Consulting, LLC (Bright Water), we have worked with many CEOs over the years, and, in our experience, we have identified three key needs:

    1. Operational Excellence,
    2. Innovate with data, and
    3. Run and operate processes.

Bright Water helps companies achieve Operational Excellence by streamlining and automating processes.  The result of these efforts is increased business velocity while reducing cost.

The Bright Water Team helps businesses innovate with data.  The results of our efforts allow companies to glean deep insights from data so they can ask the right questions and get better results.

Bright Water has a deep expertise needed to help companies run and operate processes.  Our process efforts allow companies to focus on delivering the promise of their brand to their customers.

At Bright Water we know that: CEOs and senior leaders need three things: 1) business velocity and agility, 2) continuous cost reductions, and 3) business resilience.  In today’s fast-paced world, it is clear that all companies need to be technology companies and all CEOs need to be technology leaders. Companies that do not wisely drive their business processes with analytics and technology will suffer market losses at the hands of competitors who do.  At Bright Water, we have observed that companies who wisely leverage the application of analytics and technology understand those are the key differences between winning and losing.  We view the perspective of the Chief Information Analytics Officer as never more relevant for enabling the strategy and operation of the enterprise than it is today.

Velocity Matters.  Businesses are nothing more than an aggregation of business processes.  Processes take inputs and produce outputs.  If the output of a business is purchased at a profit, the business can continue its operations.  Otherwise, the business fails.  Anything that a business produces repetitively is the product of the process.  Sound processes allow output to be produced cost-effectively with quality and minimal variation from specifications.  Process matters.

In order to understand why Velocity matters, consider the steps in a typical decision process. A typical decision process can be characterized by the OODA loop. First, the decision-maker “O”bserves the environment.  Next, the decision-maker “O”rients to issues of concern in the environment.  The “D”ecision is made and, finally, an “A”ction is taken.  When action is taken the environment is changed as a result and this change impacts all actors in the environment (they must react to it).  The cycle then starts over again.  It is an endless OODA loop.

In order to demonstrate the value of the OODA loop, let’s imagine a business that completes a single cycle through the OODA loop in 12 units of time.  Let’s say 3 units of time are spent at each stage of the OODA loop.  Now compare this business to a competitor that completes a single cycle through the OODA loop in 6 units of time, spending 1.5 units of time at each stage.  After 6 units of time elapsed, the competitor is beginning to “O”bserve the new competitive environment, having just finished acting on their initial observations.  Meanwhile, the business that needs 3 units of time for each stage is “D”eciding what action to take.  The slower competitor will be basing their decision on an environment that no longer exists, since the faster competitor has already “A”cted, impacting, shaping, and changing the environment.  As the slower business starts to act (9 units of time have elapsed), the competitor is deciding what “A”ction to take, having just finished “O”rienting to the new environment and a particular issues area of concern.  The faster competitor will decide what action to take and actually complete the action.  The faster competitor has now completed the loop for a second time as the slower competitor completes the loop for the first time.  The slower business requiring 12 units of time to complete the loop will always be basing its action on an environment that no longer exists, so its actions will always be suboptimal.  It will never catch the faster competitor.  This is how the fast eat the slow.  This is why velocity matters.

CEOs need to increase the velocity and agility of their business because, if they do not, faster companies will adapt to the competitive environment and evolve more quickly, which puts the slower competitor at a competitive disadvantage that they cannot recover from.  In order to increase the velocity of their business, CEOs must increase the velocity of their business processes.  It is business processes that shape, determine, and produce the outputs that clients pay for.  If business processes are lethargic, the business will be too.

CEOs must ask: How do I increase the velocity of a business process?  There is only one way.  CEOs must automate and improve their business processes.  By doing so costs will reduce as labor is withdrawn and better business outcomes will result as processes execute at great velocity with more certainty and consistency.  Bright Water has the knowledge, experience, and skill sets needed to help companies achieve Velocity through intelligent business processes.

Similar to the OODA loop, Business Process Management (BPM) efforts are dynamic rather than static.  As companies cycle through the OODA loop they change the environment which forces the competition to be more efficient, remove friction and constantly improve business processes.

Business processes do not operate in a vacuum.  Therefore, it is helpful to think about business processes as a set of discrete, but connected, activities often involving a range of related stakeholders such as the business and the IT group.  Therefore, business processes must be specific to the stakeholder mission, tied to the larger organizational context, and current.  To effectively achieve this within an organization, BPM efforts will vary in size, scope, and complexity.

At Bright Water we typically engage with clients leveraging the following basic phases:

    1. MODEL: Identity, define, and create a representation of the complete process so it can be easily understood and communicated.
    2. EXECUTE: Based on the model, develop, and implement the process so that it can be repeatably performed. Apply automation when it makes sense and delivers good value to the organization.
    3. CONTROL: To ensure the process is consistently followed we help the client to set up proper control systems.
    4. MONITOR: Collect meaningful and measurable data to determine the effectiveness of the process in delivering the expected value and benefits.
    5. OPTIMIZE: Use the data collected through monitoring, and feedback into the modeling, to determine if further process improvements can be made.

Contact us directly at Bright Water for a discussion regarding improving your business velocity and agility, continuous improvement, and business resilience – info@brightwaterconsulting.com.

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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Innovative Employee Benefits

Employers are in the business of attracting and retaining top talent. That’s why it is important for them to offer benefits that make their employees feel valued. However, many employers don’t realize that they have to work at keeping their employees happy by offering additional benefits, as well.

If you’re looking for some innovative ideas to do just that, you’ve come to the right place. In the article below, New Century Dynamics shares some excellent ways to offer appealing benefits to your team members.

Coaching Programs

Training Industry explains that a coaching program, such as the programs offered by New Century Dynamics, is an excellent way to offer support and resources to your employees. These programs are a good option for employers to give their employees the tools they need in order to be successful.

Coaching programs can be done in person or through a digital medium like Zoom, depending on the needs of the employee. If you’re having trouble getting your employees engaged in your efforts, try a business gamification platform to help get your team on board.

Continuing Education

Also, consider paying for employees’ education if the program is related to their job. For example, with a degree in business, employees can learn skills such as accounting and administration, which they can apply to their job. An online program gives employees the flexibility to balance work, family, and school.

Yoga Classes

When it comes to finding a way to keep your employees happy, consider offering them classes or sessions in yoga. Yoga is beneficial for many reasons:

    • It helps create a sense of community among employees.
    • It can be an outlet for stress relief because yoga encourages you to “let go” and just breathe.
    • Yoga can help improve physical strength, flexibility, and balance.
    • Yoga can help with depression, anxiety, and other mental health issues.
    • Yoga can help reduce chronic pain from arthritis, fibromyalgia, migraines, etc.
    • Poses in yoga have been found to help with things like high blood pressure and cholesterol levels.

Wouldn’t you like to reap the benefits of more productive, happier team members? Yoga classes are a great place to start to make these things happen in your workplace. You can even create a relaxing, positive space in your office for people who wish to take a yoga break. Just be sure to keep this area clean and decluttered.

Employee Satisfaction Survey

Employee satisfaction surveys are a way to learn more about the issues your employees care about and make positive changes to accommodate them.

Qualtrics notes that conducting an employee satisfaction survey each year will help you get a better idea of how your staff feels about their work environment, company culture, benefits, etc. It can also give you a sense of what incentives your employees need to feel fulfilled.

You can also use these surveys as a way to motivate your team by giving them the chance to voice their opinions. This can lead to increased engagement and productivity.

By conducting an annual employee satisfaction survey, you will get important feedback that will help you improve your company culture and create a better work environment for your employees.

Nutrition Videos for Employees

In recent years, many companies have been offering their employees wellness programs to help them live healthier lives and feel more fulfilled. This can be as simple as providing a few healthy snacks in the break room or as involved as offering health coaching sessions and exercise classes for employees.

One of the most effective ways to improve your employees’ wellness is by providing them with nutrition videos that they can watch at their convenience. These videos address some of the most common eating issues people face, like craving sugar and food addiction, so it’s easier for them to make healthier choices throughout the day.

Daycare Services

Many employees struggle to cover daycare expenses, let alone find a reputable place to take their children every workday. You could give your team members more reason to grow with your company by lending a helping hand with daycare expenses and services.

Not only does offering benefits help retain the employees you already have, but doing so can help draw top-tier talent to your company. Share on X So, see what your employees need and try to accommodate their requests — your business may blossom as a result!

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Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

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The Psychology of Goal Setting

I’m not going to bore you with scientific and psychological mumbo jumbo, but I think you should understand the importance of creating SMART goals using the process I will outline in this chapter.  Understanding why something is important makes you more likely to follow the process diligently.  Remember, people don’t buy what you do or how you do it.  They buy why you do it.  The same principle follows here.

First, as logical human beings, we all understand that having something to aim for increases the chances of hitting it.  Jordan Peterson, a professor of psychology at the University of Toronto, says, “One of the things you can be virtually certain of in life is that you don’t hit something you don’t aim at.”[1] Seems pretty logical to me.  Robin Hood would never have split that arrow if he didn’t aim at it.

When you aim at a target and hit it, your brain releases a chemical called dopamine, which gives you a feeling of pleasure.  Dopamine is your body’s reward system.  Dopamine makes you feel good, and the fact that it is released immediately upon achieving a goal creates a solid behavioral association.  That makes you want to set and accomplish another goal to get that good feeling again.  It is also why setting short-term goals, as you will see later, is much more effective than only setting long-term goals.  The longer the wait between dopamine releases, the less effective it is as a reward.  Dopamine is the habit-forming chemical in your brain.   IT rewards you for completing tasks regularly at short intervals, motivating you to accomplish more.

Another vital tool for goal achievement is visualization, which has physiological and psychological elements.  By visualizing yourself succeeding, you fool your brain into thinking you’ve achieved your goal already, and it releases some dopamine.  Yes, it is tricky.

The psychological aspect works a bit differently.  Have you ever bought a new car and suddenly noticed the same make and model everywhere as you drive down the road?  Have you ever said to yourself after purchasing a Ford Taurus, for example, Wow, I never realized there were so many Taurus’ on the road?

Your reticular activating system or RAS is now focused on your new Taurus, and you notice every Taurus on the road.  Your RAS is a series of neurons in your brain that filter out unnecessary stuff, which allows you to focus only on what’s important.  When you buy a new car, you’re excited and think a lot about it as you drive down the road.  Your RAS filters out, unconsciously, of course, the cars around you and zeros in on the ones like yours.

Coaches teach athletes to visualize desired outcomes because it trains their RAS to filter out failure and focus on success.  Professional basketball players visualize their shot going in the basket.  Visualization increases the odds of making the point because it filters out all the noise and distractions created by the fans and other players designed to make them miss.  Golfers also visualize their shots going down the middle of the fairway or in the hole because it filters out everything else like water, sand, and the rough.

When I teach people how to set and achieve goals, one of the things I do is have them create goals boards.  As part of the preparation process, I have my boxes of old magazines and tell the attendees to bring as many magazines as they can find.  It doesn’t matter what it is.  Any magazine will do.  In this way, we always end up with an excellent assortment.  Everyone in the class gets a poster board, pair of scissors, and a glue stick.  As you’ll see later, this is a crucial step near the end of the goal-setting process.  Participants find pictures representing their goals in the magazines, cut them out, and paste them onto the poster board.  Each one, in turn, presents their board to the group to make a verbal commitment and increase their accountability.  The board then receives a prominent place in the office or home where it will often be seen, reinforcing that filter in the RAS.

Visualization is a powerful tool in the setting and achieving of goals. Share on X Jack Niklaus, arguably the greatest golfer who ever lived, has been quoted as saying, “I never hit a shot, even in practice, without having a very sharp in-focus picture of it in my head.” Here is what I know:

    1. Writing down my goals and having visual reminders that I see often have helped me achieve goals
    2. I have worked with clients who previously never set goals and have used visualization and the process I teach to achieve things they had never thought possible.

Whether or not there are statistics to support these facts is irrelevant.  I have seen the process work over and over with individuals and teams.  If you and your team want to begin reaching new heights of achievement and have fun in the process, this is how you do it.

[1] J. Peterson.  2018.  “How to Set Goals the Smart Way  .”www.youtube.com/watch?v=5WX9UEYZsR8&t=3s

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

 

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The Importance of Choosing the Right Consultant

As businesses innovate and expand, they often find themselves implementing unfamiliar tactics. Personnel who are available at the start of a project can lack required skills, and challenges further down the line are bound to stump those without relevant experience. Hiring a consultant such as ITB Partners can broaden a team’s skillset temporarily without the expense of bringing on a new permanent member. Though initially costly, their services save money due to added efficiency.

When To Use a Consultant

Sometimes a project only needs an expert’s assistance in its early stages. Hiring a new employee with the necessary skillset runs the risk of the role falling outside the scope of their expertise or far below their pay grade after the specialized work is done.

Consultants tend to be experts in their fields, focusing on a specific aspect of an industry with far more depth than the layman. Share on XWhile some advisors maintain lasting relationships with clients, companies also utilize consulting firms to solve a specific challenge before moving on.

Why Specialization Matters

Consultants are only hired for as long as needed, and the duration of the consultancy period can be determined in advance. They bring an “outsider’s perspective” to a given project. They may see common pitfalls someone less versed in a given industry may miss and can recommend the best solutions from experience.

Consultants cover a variety of specializations, so it’s crucial to select the right one for the job. There is no one-size-fits-all consulting practice that will work across the board. When deciding which consultant’s services to enlist, it’s critical to consider their areas of expertise.

What Types of Consultants Businesses Can Hire

PR agencies are instrumental, as a public relations consultant can help a company establish its online presence and advertise to target demographics. Operations consultants are available to streamline every step of a supply chain, from management practices to daily operations. A fledgling business with a solid product idea but no economic knowledge among its team may enlist a financial advisory consultant to get started.

Workplaces with limited use of computers and networking can opt to bring in a technology consultant when needed, rather than hiring a full-time IT person. There are even lean staffing consultants who help their clients work toward achieving the greatest productivity with the smallest workforce.

How To Find Qualified Consultants

After identifying what type of consultant is needed, it’s time to start searching. Besides the direct approach of researching and contacting consulting firms directly, colleagues from team members’ previous places of employment may have dealt with similar challenges in the past. These connections can point in the direction of consultants they’ve worked with previously. Job recruiting sites are also a useful resource for finding and filtering candidates. When looking for a PR company, for example, it’s possible to check out the ratings and rates of various agencies on a job board before reaching out.

Industry insiders agree that the right person for the job is not necessarily the least costly. Careful consideration should be taken to make sure all needs can be met, without paying more than the industry standard. After this cost-benefit analysis, a fair and specific contract needs to be created to protect the interests of both sides of the transaction.

When facing new challenges in the working world, utilizing whatever methods will produce the best results is crucial. Consultants make it their business to study the unique intricacies of their field to provide their clients with the tools to succeed. Though their services may seem cost-prohibitive at first, they eventually pay for themselves through the contributions to a business’s future.

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

 

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Make a Counter-Offer!

Mark, a friend and colleague, called Monday, asking for advice on behalf of his daughter,  Julie.  She had just received a job offer.  It included a generous benefits package and a performance bonus.  However, the base salary was 10% lower than her expectation.  It occurred to me that the initial offer was a bit light.  The market value for that position is greater than the initial offer.  Mark’s question was, should Julie make a counteroffer, and how much?

Before answering his question, I probed a little to determine if this opportunity was, in fact, a good fit for Julie.  Also, I wanted to learn the extent of her interest in this company.  Was it something she sincerely wanted?  Mark explained that it aligned with her college degree and will give her direct experience in her chosen field.  She likes the product and the people.  They are optimistic about this opportunity.  Mark’s insight made it clear that this job had great potential for his daughter.  I was ready to answer his question.

I told Mark that an initial offer of employment is seldom the employer’s final offer.  Furthermore, savvy employers expect a counteroffer.  They want to hire the best talent at the lowest possible salary.  They have flexibility in the budget to pay more.  But they don’t know the candidate’s bottom line compensation requirements.  Why should their initial offer be the most they can afford?  The only way to resolve the question is to negotiate.  Mark was concerned that a counteroffer would cause the client to withdraw the offer.  I said that I had never seen that happen.  On the other hand, I have seen job offers rescinded if the candidate demonstrated inappropriate behavior during the negotiation process.  I told Mark that if Julie showed a lack of good faith or presented irrational demands, she could lose the job.

My answer was Yes, she should make a counter. Share on X

Mark was pleased to hear my perspective.  We then turned to how much she should request and how to deliver the counter.  I suggested that she ask the employer for the additional ten percent as I believe that to the market value for the position, given his daughter’s experience.  “The worst that can happen is that they will say no,” I said.  He asked me if I had a template they could use to draft her counteroffer.  I told him that he could find numerous examples on the internet and that I would be happy to review their response before they sent it to the hiring manager, which I did.

From my perspective, negotiating the starting salary and benefits package is the final part of the interview process.  These negotiations give the hiring manager a clearer sense of the candidate’s potential.  It reveals her problem-solving skills and ability to make her case and defend her position.  Negotiating the starting salary will be Julie’s first experience working for this company.  It will confirm her interest in working for this employer or not.  Negotiating the terms of a Job Offer is the final step in the interview process.

Key Attributes for Successful Negotiations

    • Confidence
    • Ability to state a position and make a case
    • Exhibits rational behavior
    • Performance under stress
    • Orientation toward win-win solutions
    • The Ability to Understand the Other’s Position

The ability to negotiate a better deal is fundamental to every business.  It is an essential skill that can be very useful to the employer.  Even though the negotiation abilities of a recent college grad may not be fully developed, the prospective employer will gain insight into the potential for further development.

I am often called on to engage in a search assignment for a newly created position.   Sometimes, the prospective client does not have a good feel for the market value of that position.  They rely on my expertise to determine a competitive compensation package.  However, I will not take on the assignment until we have established a competitive salary range that I can present to my candidates.  Otherwise, it would be a complete waste of time.  The new hire’s actual starting salary will require negotiation.  Employers expect you to make a counteroffer.  But remember, the prospective employer is still evaluating you throughout the salary negotiation process.

Upon reviewing Julie’s counteroffer letter, I found that it was a good product.  Still, I offered a few suggestions to make it better.  The employer accepted her counteroffer.  Julie started her new job on Wednesday.  Success!  Never hesitate to make a counteroffer.

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

 

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Success is a Habit

There’s been much interest in developing productive habits and having a set of principles for success in life during the past few years. Jordan Peterson and James Clear have written extensively on these issues. Their books have been widely read, especially among younger males. Our institutions have failed in this regard. Schools, for example, do not reinforce our cultural values and lack emphasis on character building for our youth. Or possibly because the old established institutions are not relevant to the younger generation. Regardless, it seems that many are adrift.

We learned our guiding principles from our parents, primary school, and church. I remember my mother telling me to stand straight with my shoulders back. She drilled into me that slouching does not make a good impression. We also learned about maintaining good habits by playing with others—things like sharing, respect, and fairness. We learned about the Ten Commandments, not all of which are particularly religious. They speak about honesty, respect for our elders (authority), avoiding envy, and lying. Stealing and murder were prohibited as well. Many of us participated in team sports, like Little League baseball. We learned sportsmanship, working together as a team, supporting one another, being on time, and honoring our commitments. We learned proper etiquette and table manners from our parents, and some were enrolled in formal classes to learn those rules. We learned how to behave in conformance with the norms of a healthy society.

Today, we can see the difference between successful folks and those who struggle. It is evident in their approach to life and the habits they embrace, wittingly or not. Much of my work is about helping people identify and correct bad habits. I help my clients develop productive routines and fix issues not being addressed. Usually, I help create systems and processes to improve performance.

Success is a habit, or more to the point, a collection of practices.

    • Be on time.
    • Be Proactive
    • Be Prepared-analytical
    • Take good notes
    • Follow up
    • Be organized
    • Honor you commitments
    • Be Ethical: honesty and integrity
    • Follow the rules of Reciprocity
    • Build relationships slowly
    • Attract like-minded people
    • Maintain your physical health

From my experience, successful people share a collection of attributes. I have observed that they are focused on what they want and have the discipline to realize their goals. Furthermore, they attract and surround themselves with like-minded people. You may have heard that you are the average of your friends and associates. I believe this to be true. Stated another way, successful people are forward-thinking and develop systems to achieve their goals. Share on X Without a system, goals are just wishful thinking and daydreams. Another way to think of a system is a collection of habits. Let’s consider practices successful people share.

At the forefront, successful people are trustworthy. They are honest and ethical people who honor their commitments. The importance of trust should not be a surprise to anyone. Would you willingly associate with someone you did not trust? Of course not. If you are trustworthy and dependable, you will attract ethical associates. Ethical behavior is the foundation for success.

Successful people exude confidence. They have a positive, can-do attitude that people will naturally follow. I am reminded of the saying, “if you can conceive it and believe it, you will achieve it.” They are high-energy people who energize and motivate others. Compare these attributes to low-energy complainers who drain you of your energy. Avoid these people!

Maintaining a healthy lifestyle is another critical attribute for success. A healthy body is required to generate the energy and drive needed to achieve one’s goals. It is challenging to develop confidence if you are not physically fit or do not feel well. A proper diet and exercise are part of their daily routine. They get the appropriate amount of sleep to be alert and focused during working hours. They see their doctor annually to check their vital statistics and catch potential ailments early.

To summarize, successful people are in control of their lives. They determine how they want to live and create that environment. Their lives are not perfect as they suffer unpleasant circumstances like everyone else. However, they experience fewer adverse events and cope with them better because of the systems they have created. Their grand system is a set of beliefs, attributes, and behaviors (read habits) they employ to create their lifestyle. For those of you looking for success or that want to mentor others, I suggest that you further explore the points made in this article.

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

 

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Employ Data Analytics to Build Your Business

Data analytics is a suite of tools to support and improve your business planning and operations. They inform and optimize daily and strategic business operations, marketing, and risk and product management by providing insights into customer trends and existing business practices and products.

Data analytics help you uncover or highlight subtly expressed or hidden future trends and patterns in data describing your customers, inventory, products, and services. Today, ITB Partners reviews several ways in which your business benefits from advances in data analytics for accurate customer description and growth predictions.

Measuring Marketing Campaign Effectiveness

Describing customer demographics and purchasing behavior is a key strategy to improve your business and marketing plans. A good place to start is to analyze sales data sets, including customer responses to surveys, website statistics such as clicks and browsing information, and social media data.

Data visualization and spatial analysis tools, including pie charts, histograms, and mapping, make complex customer and purchasing data consistent and easier to understand. Seasonal patterns of customer purchases, among many other factors, strongly influence marketing plans. Practical business concerns, such as inventory, distribution, and actual customer in-store and even online experiences, are also affected by daily weather. Data analytics is a way to clearly show these seasonal and daily weather patterns in relation to sales figures, demographics, and feedback from customers about your products and their experience.

During the slow season, why not build your knowledge of prescriptive data analytics to predict products you should market next? Enroll in an online technology degree program or catch up on the latest trends with a short course tailored to your interests and needs. For example, customizable logo design services are increasingly available online to facilitate creative logo development and graphic design searches. Experiment with your own logo design by choosing a style and icon, adding desirable text, and combining colors, fonts, and styling in iterative and unique ways.

Understanding Product Development and Operations

Leading product managers use data analytics in creative ways to understand product viability and development. Product management often builds on successful marketing data analytics, using the same data regarding customer preferences and behaviors, and adding new data on competitors, customer service, and market penetration. Other analytical tools incorporate data on product improvement and product innovation.

Operations data analytics introduce data on product flows and processes to streamline and increase the efficiency of company activities. Mapping and optimization of process flows can benefit your business in countless ways. For example, a business could learn that multiple employees are involved unnecessarily in approving an invoice or inventory acquisition, resulting in lost time and effort. Decision-making is more efficient if individual employee responsibilities are carefully delineated, and fewer transactions require multiple approvals.

Another essential business operation to consider is customer relations and service. Graphics and analytics reveal ways to retain current customers and recruit new customers by mapping sales patterns and customer feedback and better understanding customer satisfaction.

You can also give yourself the inside track in an ever-changing technological race by pursuing a degree in Information Technology – and thanks to the flexibility of online programs, you can learn at your own pace and keep working while you study!

Data Analytics Provide a Competitive Edge

A suite of data analytics tools provides insight and understanding in improving and streamlining your company strategies, product development, and operations. Share on XTailor specific analytics and visualizations to increase acumen and information in risk management, marketing, customer recruitment, inventory and distribution, and many other aspects of your business.

ITB Partners is a Consortium of independent management consultants providing high value-added solutions to your problems. We look forward to meeting you!

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

 

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Stop Procrastinating and Accomplish More!

I put this article off for too long! No kidding! Procrastination is not one of my worst habits, but I am prone to succumb to it from time to time.

Why write about the subject now? Maybe because it is time to file our state and federal taxes. It is on my mind because people I know waited until the filing deadline to complete their taxes. I am confident they are not alone. I have known many who were last-minute tax filers. Fortunately, that is not an issue for me as I have an accountant who does our personal and business taxes. He has complete access to my QuickBooks Online account, which is always current. I have almost eliminated my tax preparation requirements. Procrastination is no longer necessary.

I have never been much of a procrastinator. I am a planner by nature and by training. I try to be proactive. The thought of putting myself through the stress and anxiety of meeting a deadline at the last minute is too painful to bear. That does not mean that I don’t procrastinate from time to time. Sometimes, I procrastinate to avoid irritating or mundane tasks. Getting my annual automobile inspection is a good example. While in college, I did not engage in last-minute, pre-exam cram sessions. Instead, I believed that I would perform better with a good night’s sleep. It was the same during my corporate career. I made a point to complete my assignments early, especially if they involved a presentation. I used the extra time to hone my subject matter knowledge and focus on the presentation. I never wanted to present work that was less than my best effort.

To some extent, everyone engages in procrastination. I have known many who wait until the last minute to complete assignments. I spend much of my time coaching my clients to overcome procrastination. Watching them race through the process of completing an important task at the last minute is painful. Helping them defeat the urge to procrastinate improves their performance, moving them closer to their goals. Share on X

Ways to Approach and Correct Procrastination

Do not punish yourself for procrastinating
Commit to completing the task
Promise yourself a reward upon completion
Find someone to hold you accountable
Change your attitude toward the task
Focus on the issue
Eat an elephant, one bite at a time

To minimize procrastination, I’ve adopted a few helpful habits that may interest you. My most powerful technique is to put the task right in front of me to be in my way. I create a situation where I cannot get around the job, so I must dispatch it. A good example is putting my dry-cleaning in the passenger seat of my car. Once that is done, I cannot ignore it. I must take it to the cleaners and retrieve my clean laundry. I know that is a small, inconsequential example. Even so, the concept works with more essential matters.

No one likes paying bills, but the avoidance cost is steep. We must pay them eventually. To get this task behind me, I will put a stack of bills in the center of my desk. They are right there in front of me, screaming for attention. Furthermore, I have adopted electronic bill pay methods, including the authorization for automatic withdrawals. Now, I have one less activity to avoid.

To continue making progress in a health-related area, I set concrete milestones and plan rewards for goal attainment. For example, I will plan to purchase an article of clothing as I achieve specific points in a weight loss program. Creating a reward keeps me motivated to stay on track to achieve my objective. I find it helpful to start with a plan that segments the overall scope of larger projects into smaller components. Completing small activities generates momentum that leads to successful completion.

In conclusion, procrastination is a bad habit that inhibits your productivity and goal achievement. It is a common affliction. It is natural to avoid complex, tedious, unpleasant, aversive, and stressful tasks. Instead, we prefer to engage in the fun stuff! To defeat procrastination, consider changing your attitude toward the job. Make it a priority you cannot avoid. Break larger projects into smaller parts to be tackled sequentially. Reward yourself for completing a dreaded task. Finally, you might look for ways to eliminate routine tasks through automation. Begin practicing some of these tips, and let me know if they work for you

For more information about procrastination and how to overcome your avoidance issues, you may find it helpful to check out these links.

https://www.businessinsider.com/main-types-of-procrastinators-how-to-avoid-accountability-coaches

https://www.washingtonpost.com/lifestyle/wellness/procrastinate-why-stop-advice/2021/07/09/13b7dc2c-e00e-11eb-9f54-7eee10b5fcd2_story.html

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

 

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First, Build Trust!

Building Relationships

Recently I had the unfortunate experience of watching a client suffer through the effects of failed relationships with two of his vendors.  It was painful to watch, but it cost my client far more.  The impact of these failures was delayed project completion, an additional cost of labor and materials, and an erosion of trust with his customers.  The most painful realization was that these situations were self-inflicted wounds, easily preventable if my client had followed the proper procedures.

The fundamental issue was that my client failed to properly qualify either vendor to ensure that they could deliver on their promises.  I remember Ronald Reagan’s motto during his presidency; trust but verify.  In this case, my client invested his trust without verification.  Regrettably, the results were predictable.  These vendors were not competent to do the work my client required of them, and one was impossible to work with, continually trying to rewrite the terms of the agreement.

The long lead time for materials resulting from the Covid pandemic created a difficult situation for my client.  As a result, he looked for an alternate solution using a local vendor.  He found someone and immediately gave him four significant projects.  Admittedly, this vendor had good references, and his finished product was acceptable.  As an executive recruiter, I understand the limitations of a reference check.  Extracting useful information from them takes a certain degree of skill.  Unfortunately, I was not a part of the vetting process.  The result was unfortunate.  Although the vendor was a good craftsman, he was not a good businessman.  He could not determine appropriate priorities for his work.  He had little regard for his customer.  He did not finish the required onsite work and held my client hostage for payment he did not earn.  My client should not have trusted this vendor with the scope of work needed.  Likely, he will soon be an employee working for someone else.

The other subcontractor had done good work for my client on many routine projects.  However, he professed to be competent in one area my client had not witnessed.  That turned out to be a big mistake.  This vendor hired an incompetent subcontractor who made a mess of the project.  My client was required to find another subcontractor to demo the original work and start the project over.  We later learned that the subcontractor had hired a relative to complete his job.  My client refused to pay him for the shoddy work.  Even so, the vendor continued to demand payment for his work.  My client could not finish his work on time, which strained his relationship with the customer.

Both situations created significant angst for my client.   He gave his vendors his complete trust without adequately vetting their capabilities.  I explained how he could have used me to check the references on one vendor and how we might have further vetted the competency of the other.  My client was operating in blind faith.  That is not my preferred way to conduct business.

I use a well-defined process to build trust.  I begin by giving someone small projects to evaluate their competency.  If the first project is successful, I gradually increase the scope and complexity of further tasks assigned to that person.  The last thing I would ever do is give a significant assignment to an unproven person.  This process works for almost any relationship.

I believe that respect is given, but trust is earned.   Everyone deserves respect; it’s just a good practice among human beings.  However, one must earn trust.  It is a precious commodity to be carefully guarded.  Gaining someone’s trust requires an investment in time.  You know what you have to do to gain the confidence of your clients, customers, friends, and especially your spouse. We must be vigilant to guard against situations that put our relationships at risk. That includes developing confidence in the capabilities of our employees and vendors to help us serve our customers. Share on X

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.