Tag: Jim Weber

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Why Newsletters Are the New Cover Letters for Growing Your Customer Base

Newsletters are an effective way of keeping your customers up-to-date with what’s happening in your business. Moreover, newsletters can not only help you maintain your current customer base, but they can also help you grow your customer base too. So without further ado, ITB Partners reveals how to create a memorable newsletter or newsletter sequences to captivate your audience’s attention.

Tips for growing your email newsletter

Thanks to modern technology, there are many ways to grow your email database, from gated content to opt-ins to pop-ups to giveaways. There are many ways to grab and hold your audience’s attention – until the next newsletter, that is.

How to create a buzz with the newsletter the first time around

Perhaps you’re at the beginning of creating your newsletter sequence, and you’re wondering how to create an impactful newsletter that your audience will really take notice of. In essence, the most successful newsletters will comprise any of the following elements, which include:

Create an entertaining subject line

Your subject line will need to stand out at first glance, so it best must be entertaining and speak to the needs of your audience by addressing a certain pain point, for example. 

Storytelling

No one has the time these days to read long-drawn-out, boring newsletters that don’t really serve a purpose. Rather, when you incorporate storytelling into your newsletters, you can create a personable story that people can relate to. This is made even better when you are able to add any other relevant information that people might not know about your brand to make your newsletter that much juicier. 

Make it irresistible

One of the main points of creating a newsletter is to show customers that you appreciate them taking time out of their day to read your newsletter, which is why you should usually offer them something in return for doing so. Share on X

It should be brief

Brevity is key here if you want to hold the attention of your audience. Again, the times we are living in are busy, so we should be doing our best to accommodate the limited time that most people do have by making sure newsletters are as short and succinct as possible. 

Remember a Call to Action

Your call-to-action will drive customer sales, so don’t forget to include it in your pitch, whether it’s to sign up for your next exclusive offer, take advantage of a coupon offer, or ask them outright to sign up for exclusive discounts, benefits, and more. 

Designing your newsletter from scratch

Of course, you want your newsletter to be able to read nicely in terms of its flow and readability. An email marketing platform can help provide you with a basic template. But then you’ll need to add in something special of your own so that your newsletter doesn’t seem so standardized. For example, suppose you want to add a few images to your newsletter, but the backgrounds aren’t to your liking, then you can try an image background remover to remove them from your chosen images swiftly and easily. All you need to do is upload the image and edit it as needed, then insert it on your email template where you want it. 

If you want to improve your marketing strategy, then newsletters should be an important component of this. You’ll surely boost your brand’s online presence and gain a loyal following.

Image via Pexels

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.

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Employ Digital Upgrades for Innovation!

We live in a highly-competitive digital world. Today’s businesses require constant innovation in order to maintain a competitive advantage and remain relevant. Thankfully, the latest tech innovations are not reserved for the world’s biggest brands. Small and mid-sized businesses can also benefit from digital advancements, many of which are entirely affordable on a small business budget. In this article from New Century Dynamics Executive Search, we’ll explore some digital improvements to consider and how they can enhance your business.

Learn About Business Process Management

Business process management (BPM) is the practice of analyzing existing business processes and identifying areas for improvement. The right BPM strategies will improve efficiencies and optimize regular business processes to save time and money while reducing errors. If that’s not enough, streamlining your laborious business operations can help you get employee buy-in on new tech upgrades, making it easier to introduce advancements in the future. Be sure to monitor the effectiveness of your BPM upgrades so you can make continuous improvements and optimize your results.

Invest in Time-Saving Tools

If there’s one thing most small and mid-sized businesses struggle with, it’s time. There’s just never enough time in the day to do everything that needs to be done. How do you ever find the time to focus on growth-related projects when you’re spending all of your energy on business maintenance tasks? Spending all of your time keeping your business afloat will only work for so long. Eventually, you need to focus on bigger projects so you can take your business to the next level.

Investing in time-management tools will help you and your team work more efficiently. Some great options include a calendar app to track meetings and deadlines, project management software for easy delegation, and instant chat tools to minimize delays and speed up information sharing.

Embrace Unfamiliar Technology

Many small business owners are hesitant to adopt new technology. After all, there is always a bit of a learning curve when it comes to implementing unfamiliar software. Don’t let this hold you back! You can find all kinds of resources online that teach you the basics of almost any digital tool. Many resources will also help you learn how to get the most out of business software, like how to integrate new tools into your existing suite of technology so that everything works together seamlessly.

Ask for Feedback from Customers

If you’re not sure how your business can better meet the needs of your customers, ask them! Seeking suggestions from customers is easy with the help of digital feedback collection tools. For example, you can place a survey after your cart checkout process asking customers to let you know what they liked and disliked about the shopping experience. Beyond asking your customers for direct feedback, you can also analyze website analytics and customer behavior trends to uncover opportunities for improvement.

Give Your Employees More Freedom

Your employees can drive innovation at your company, but only if you give them a chance. Identify people who show promise when it comes to creative and innovative thinking, and give them the freedom to explore new ways of doing things. Welcome fresh perspectives, encourage people to share their opinions and make sure all of your employees see the big picture. Employees in specialized roles can have a hard time envisioning beyond their position, so consider rotating employees so they can experience different challenges and perspectives.

Encouraging new ideas is all about creating a culture of innovation at your company. According to TalentCulture, business leaders can do this by trusting, mentoring, and empowering their teams. Give your employees the autonomy to find new ways to solve problems. Most importantly, avoid criticizing employees for ideas that fail. Failure is inevitable on the path to innovation!

Adopt Artificial Intelligence

You don’t need to be a tech company to benefit from artificial intelligence. AI can enhance your business in countless ways! PCMag explains that AI has many practical applications for business, including customer relationship management (CRM) improvements that can speed up your customer support process and boost customer satisfaction. Start by identifying problems you think AI could solve so that you can search for effective tools. For example, AI can help you predict customers’ preferences and anticipate what they will buy. Using this information, you can show personalized content to different customers, boosting your conversion rates and customer lifetime value.

All successful businesses prioritize innovation. If you’re not innovating your business, you’re falling behind. It’s important that today’s businesses are constantly looking for new ways – such as utilizing BPM, embracing unfamiliar technology, and adopting AI – to save time, cut costs, and get ahead of their competitors. So don’t be afraid to experiment with new technology and see what it can do for you!

 

Image via Pexels

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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Leadership and Building a Great Team

Dave Roemer

Once you find that “right fit” franchise and sign on the dotted line, that’s when the work begins. One of the most important tasks you take on as a franchisee is building your team. What follows is an excerpt from chapter 3 of my book So, you bought a franchise, NOW WHAT?

Unless you bought yourself a job, you will never grow your business without surrounding yourself with great people and building a team.  I like to use sports analogies because I think they have great relevance in business, so here is the first of many you will see in this book. If you think about it, no successful person in any sport has done it alone. Even athletes in individual sports such as tennis, golf, swimming, or track have a team around them. They have a coach, a trainer, nutritionists, and family and friends to support them. Golfers have a caddy who does much more than just carry the clubs. In short, to be successful at anything, you need a team of people who believe in you and your cause.

Some might argue that building a great team is the most essential aspect of a successful business. While their argument certainly has merit, I would ask them how they plan to attract the type of people they need without being able to explain where they are going, why they are going there, and what success looks like. The people you want around you are people who want to be a part of something and are not just in it for the paycheck.

When I was a young manager running a 24/7 business, I thought hiring people with specific skills and experience was the way to go. I had a lot on my plate, and training new people took time and effort. I learned that my approach led to high turnover, which took more time than if I hired people who cared about customers and had the right attitude and trained them well. Those people stayed a lot longer and were instrumental in growing the business.

You have likely heard the phrase “attitude is everything,” and you probably think it’s true. My experience has taught me that it is. To illustrate and communicate this belief to my teams over the years, I have used this example. Take the letters in the word attitude and write down its corresponding number in the alphabet like this:

A           T             T          I           T            U         D          E

1          20        20       9         20        21       4         5

 

When you add up the numbers, the total is 100. Attitude is everything

As a leader, it is your responsibility to learn about what drives people in general and your people in specific. Then it is your job to provide them what they need to be successful as part of your team. If you want to create a successful company that will allow you to achieve your WHY, it is completely on your shoulders to set the vision that attracts great people and give those people

the tools to succeed, which includes creating the environment in which their needs are met, and they feel part of something larger than themselves. Think of it this way; your team members are your customers. To you, they must be your number one priority. Take care of them and they will take care of the paying customers who in turn will fuel the success of your business helping you achieve your WHY. It is the business life cycle depicted in Figure 3.1.

 

Another way I like to describe this diagram is this:

The experience of your customers will never exceed the experience of your team. Share on X

Giving people the tools and setting them up for success is essential to you and them. Customers don’t understand when someone is poorly trained and cannot execute their job. They just think the person is stupid or incompetent, and the team member feels that way. When I encounter this, I always ask if the team member is new and tell them it’s OK. I don’t blame them; I blame the leader for not properly protecting his or her team member with proper training.

Don’t just take it from me, though. Here is what Lynn Given, a ComForCare franchisee in Orlando, FL, had to say about training her team:

“Training is the key to the success of the business. Without well-trained staff, we have unhappy customers, which then becomes a cycle of uncertainty. We start with four days of training in the field and then ongoing training each week in the office with reminders of our policies and techniques. We find that repetition is key. We coach and train on the go, daily. Then reward the team and share the joys.”

I have told many leaders and business owners over the years that if
they are not willing to spend at least 25 percent of each day in some form
of training, put the “for sale” sign on the door today because the value of
your business will only go down from here. I believe that statement with
my entire being. A leader’s number one responsibility is to train, coach,
and give feedback to his or her team. Everything else comes second.

Providing feedback is the key to developing your team but that topic will require another article so stay tuned.

Dave Roemer is a consultant at The Franchise Consulting company and an almost 40-year veteran of the franchise industry. Dave’s book So, you bought a franchise, NOW WHAT? Is a collection of stories, best practices, and tools collected over the years. It includes quotes from several successful franchisees interviewed for the project. It is available online at amazon.com and barnesandnoble.com.

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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How HR Can Proactively Prevent and Prepare for Cyberattacks

Jim Cichanski – CEO FlexHR

Since Russia invaded Ukraine in early 2022, cyber-attacks have become more of a threat than ever before. Any countries that had ties to Ukraine were made vulnerable to Russian cyber-attacks. To keep ahead of these, HR departments stay apprised of the latest cyber threats from Russia and can advise companies about how to best protect themselves.

Some of the most harmful attacks are those on payroll, where funds are rerouted to untraceable debit cards. These cyber-threats can be costly and must be prevented.

Yet, those aren’t the only cyber threats companies should be worried about. We need to look no further than the LinkedIn data breach in 2021 to see that cyber security threats come in all shapes and sizes.

The LinkedIn data breach exposed 700 of the 756 million LinkedIn users to being hacked, as their personal information was scraped. Armed with email addresses, phone numbers, usernames, and other personal information, the hackers had the potential to target millions more easily.

How Employers Can Prepare

Many employers are aware of the devastating effects of cyber-attacks, but not all of them know how to prevent and plan for them.

As Jim Cichanski, the CHRO and Founder of Flex HR, states, ” Many companies have put extensive policies and procedures in place to protect cyberattacks,” but “stop short on the employee preparation on how to get critical tasks done. If they lose internet or power, what would they do?”

So, what should employers do to protect their employee’s data? How do you prevent and prepare for a cyber-attack?

First, every company should have policies and procedures that safeguard information, just in case. Companies need to prevent important information from being stolen and create plans to keep the business operating if there is a cyber-attack.

One of the most important pieces of information that needs protecting is payroll. One of the latest cyber threats is someone hacking into the system and rerouting the money. To protect against cyber-attacks, always check that the information for direct deposit is correct before pressing payroll.

Similarly, if you receive an email request to change or set up a new direct deposit, never do so automatically. Always call the person who sent it and verify the request. Additionally, you may want to send a new email instead of replying to the thread so that you can check the source of the email you received.

Cyber-attacks usually happen in grids, and therefore each company should have a backup grid if one is shut down. At Flex HR, our payroll partners have a 3-loop backup. If up to two of the grids get hacked and shut down, there is still a third available.

IT supports should also have backup internet and files. If a grid is shut down, all the important files should be backed up so they can be accessed elsewhere.

How HR Helps to Prevent and Plan

HR can help companies create plans to prevent and deal with cyber threats. If the power grid has to be shut down, HR can devise a strategy to communicate to employees what they need to do.

Employees will need to be prepared to move to a different grid if necessary, which would require them to have enough gas, emergency food and water, and internet backup such as a cell phone.

Employees would need to be able to continue operating as normal, which means that they should have phone internet cards and be able to use their office, home, or a family member’s home as backups. Similarly, employees can prepare to operate when the power is down by having solar-powered devices and chargers.

Additionally, the company will need to have their clients’ numbers on hand to let them know what is happening.

HR can help companies create a tiered protocol plan in the case of a cyber-attack. Using payroll management as an example, the first backup plan would be to do payroll in the office, then in the employee’s home, and thirdly in a family member’s home. If none were possible, employees could use an air card with internet access that does not require a cable to be hooked up.

It Could Happen to You

We all want to believe cyber-attacks won’t happen to us, but they are increasingly common. Human Resources can be a great asset in preventing and planning for cyber-attacks. Contact Flex HR to increase your cyber security and peace of mind.

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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The Breakthrough

Sometimes when you least expect it, you may become part of a breakthrough. This past week I experienced a breakthrough. It was fantastic to behold. I think breakthroughs are lovely. I relish the thought of making and being a part of one. What follows is an update to my post of June 27, 2022; “Make Better Decisions.”

As you will recall, in my post of June 27, I talked about a prospective client whose decision had an unfortunate outcome. He chose not to hire a driver to use an idled vehicle to transport workers to another job site. His decision sidelined workers, reducing overall productivity. Having had time to sleep on his decision, he realized he could have done better. Also, I believe he heard an earful from his employees and others.

When he made his ill-fated decision, he was overly concerned about the cost of gasoline and a dedicated driver. He faced a timing and scheduling issue, not a long-term increase in demand—a classic problem. After I had my say, I detached myself from this prospect and his situation. I considered it unlikely that I would ever sign him as a client. So, I backed off and focused on other opportunities. He made time to process his decision and its outcome alongside the alternatives. Eventually, the downside effects of his decision made it into his conscious mind.

After thinking it over, he recognized that an idled vehicle and several workers resulted in lost productivity and revenue. This cost was far greater than that of a driver, fuel, and wear and tear on a vehicle. It also created a negative impact on the morale of his organization. Having to fix the flat tire on the idled truck was not lost on him either. He crafted a policy statement and updated the company operations manual.

I must give him credit for conducting a critical review of his decision. He is an intelligent person, motivated to improve his company’s performance. The point is that he made good use of his time by reflecting on the outcome. He recognized the opportunity to improve his decision-making skills and hence the profitability of his enterprise. And, he hired me!

His self-assessment led to a more productive situation. Now, he authorizes rental vehicles and drivers to support peak demand without the need for capital to expand his fleet. This policy is a better use of his financial resources. Additionally, other opportunities have surfaced to resolve peak demand issues.

Now, I have a new client. The issue for me is to find the best way to build on his breakthrough. My first objective is to provide positive reinforcement for his change of heart without demonstrating “I Told You So” arrogance. This recognition should encourage his professional growth.

My second goal is to help him avoid ‘knee-jerk’ decision-making, the genesis of this recent situation. This goal may be a significant challenge as my new client has a self-assured, take-charge personality. I believe he should reduce his involvement in routine operational matters. Supporting this goal, I will encourage more delegation of authority.

Frankly, that is my focus. Help my new client determine how to optimize his time. He must focus on more important matters. He should make decisions that offer the most significant payback and the greatest risk reduction. Toward this end, I will encourage him to follow the decision-making model I presented in my June 27 article, an excellent way to begin this engagement. Eventually, when I am successful, I will introduce benefit/cost analysis and probability analysis to aid his decision-making.

It isn’t often that one can see a breakthrough as it happens. I am pleased to have been a small part of this one. You might say that this breakthrough was a breakthrough for me. I was able to nudge this potential client towards a different mindset. So, I can take some gratification in his change of heart. Breakthroughs are fun to experience. I love the exhilaration they create. One breakthrough makes me want to find another one, and then another.

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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Still No Plan to Sell Your Company? Do you Even Know What It’s Worth?

 

David Shavzin

When do I start my exit planning and how much is my company worth? We have gotten these questions for decades, especially from Baby Boomers. Sometimes it comes across casually: “So what do you think, should I start my exit plan 2 years ahead, maybe 3 years ahead?”

 

 

They often ask knowing the answer. They are trying to make themselves feel better because they haven’t created an exit plan and they know they should have started it long ago. They don’t know what their company is worth, but often get some outsized value stuck in their mind. If I respond that waiting until 24 months ahead of the sale is ok, they can let themselves off the hook for not having an exit plan or succession plan in place.

We talk to hundreds of business owners.

    • Some say they are tired and would like to get out. They do not want to put in much more time or invest in building the value of the company. Yet, they are not satisfied with what it is worth today.
    • Some family businesses have put off building a succession plan for a generation-to-generation transfer. They may feel they have time, or they may feel that their children (children often in their 30’s and 40’s) are “not ready yet”. They may fear losing an income stream as they transition out of the business.
    • Some are simply working the business, taking no time to develop an exit plan that could dramatically increase the value of the business when it comes time to sell.

 If any of these ring true for you, there are many potential solutions to address your concerns and situation. Take the first step and have a conversation with all involved. A good advisory team can help guide those exit plan discussions and provide an objective, experienced perspective. There are so many business exit options.

If you do have just a few years, there are a number of things you can do to optimize your exit and get everyone on the same page. But “2 – 3 years” is NOW, especially if you are a business owner in your 50s, 60s, 70s, or older. You have heard when talking about stocks that you can’t time the market. It’s the same thing for your business. And remember, the sale process itself can take 6 or 9 months to a year or more from start to finish.

With all of what’s going on out there in the world, a plan is critical to monetizing your life’s work! A sudden downturn could keep you captive in your business for another few years as you try to rebuild.

 Questions to ask yourself:

    • Do you know the value of your business? Don’t rely on a value that is some industry multiple or that sounds reasonable or what you’d like. Get professional assistance. This is your life, livelihood, and retirement.
    • When do you want to be completely or mostly out of the business?
    • Can you wait out the next downturn? If you are thinking of a 2- to 3-year timeframe, what if the economy slows down? Can you wait another few years to rebuild the value of your business? What do you really need out of the sale?
    • Do you have a solid plan for what you will do after your exit?

 By the Way, It’s NOT all about YOU!

Without an exit plan, you are not just risking your own retirement or next phase of life. You are putting in jeopardy your spouse, children, their families, your employees, their families, and more. Share on X

The message is simple: work with your advisors now to get a good understanding of your situation. The more informed you are, the better positioned you will be to create an exit plan that works for you, maximize value and minimize risk. You will leave the legacy that you want, not what others want. You will create your future!

Need to Get an Idea of Where You Stand on Business Value and Your Options?

David Shavzin, CMC
Founder, The Value Track
M&A Advisory, Exit Planning, Building Value
770-329-5224
david@GetOnTheValueTrack.com
Atlanta, Georgia
Our BLOG  // LinkedIn // www.GetOnTheValueTrack.com

Thank you for visiting our blog.

 

Jim Weber – President
New Century Dynamics Executive Search

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 Better Decisions!

Josh Sweeney Presentation on Culture First Hiring

Recently I observed a prospective client make a poor decision with far-reaching consequences.  Even now, having experienced the repercussions of this decision, he still defends his position.  The fundamental issue was about the deployment of his fleet.  The result was idled employees due to a lack of transportation.   His justification was the cost of gasoline and a driver to move workers to different job sites.  I could not have been more shocked having witnessed this situation.  Productivity and cash flow were lost or delayed.  More importantly, he created angst and resentment among his team members.  Not a good thing.

He decided to allow a vehicle to remain idle at a job site.  Its only purpose was to move people and their tools.  This truck was not available to transport other workers to active job sites.  The ultimate irony was that the vehicle in question had a flat tire.  It was out of service, creating additional problems at the end of the workday.  I can’t help but think that it was poetic justice.

Wrong decisions can take on a life of their own. They seem to spawn other unnecessary problems diverting management’s attention and in sub-optimal use of time and resources. Share on X

We all know people perpetually fighting problems big and small.  Personal and professional.  One person I know is always misplacing car keys and cell phones, among other things.  It would be an easy fix if she followed the “a place for everything and everything in its place maxim.” This weakness is a minor issue, but it’s only the beginning of more significant problems she creates for herself.  Yes, she is a victim of bad habits and more.  Her bad habits bleed over into her decision-making process, creating even more significant issues, which steal precious time and resources.  Poor decision-making habits result in lost productivity, profitability, and morale.

You should view this post as a wake-up call!  It is easy to fall into a pattern of casual decision-making, leading to suboptimal, or worse, disastrous results.  I do not mean to offer specific processes or tools, as ample information is available on how to make decisions for a wide range of situations.  I want to remind you to create a habit of using a structured decision-making process to achieve better outcomes.

Basic decision-making process

    1. Describe the situation
    2. List factors to consider
    3. Determine key constituents to be affected
    4. List and evaluate alternatives
    5. Select the best outcome
    6. Develop a plan of action, including a communications plan
    7. Execute
    8. Assess and evaluate results

Making good decisions is a habit!  Find a process that works for you and employ it consistently.  The above eight steps present a basic decision-making framework.  However, it does not list a “gut-check” as a part of the process.    I do not recommend making decisions based on “gut feel” alone; however, before making a call, check your gut.  This step has never let me down!  I like to include a gut check toward the end of my process.  It has forced me to review my process and reassess my assumptions.  Finally, always review to determine how you can improve the quality of your decisions.  For more on this subject, I suggest you refer to other articles I have written about developing helpful and productive habits.

One of the most enjoyable aspects of my work is helping clients and colleagues improve their decision-making.  It stimulates my intellectual and creative abilities.  My interest in making better decisions is born from my early career as a financial analyst and strategic planning executive.  Today, my clients are eager to learn new techniques to improve their decision-making abilities.  They enjoy the satisfaction of better results from the successful execution of their decisions.  Create a decision-making habit for better results and a happier life.

For more information on making better decisions refer to the articles linked below.

https://www.betterup.com/blog/how-to-make-better-decisions

https://www.verywellmind.com/habits-for-better-decision-making-4153045?print

https://www.mindtools.com/pages/article/newTED_00.htm

 

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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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

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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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Jim Weber Lands New Golf Apparel Startup as a Client

Jim Weber has been hired by The Golf Cap Company to help introduce its new line of Golf Caps.

Bulmaro Vasquez,  CEO, and the founder of the Golf Cap Company is proud to offer his creation to individual golfers and to golf course Pro Shops.  Mr. Vasquez formed the Golf Cap Company in 2021 in the state of Georgia.  The Golf Cap offers a unique style made of cotton fabric to keep the player comfortable in all seasons.  It has a second brim on the rear which provides additional protection from the sun.  Additionally, this cap makes a unique and elegant fashion statement.

If you are interested in more information about our fine golf cap, email us at GolfCap1234@gmail.com

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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

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.