Solomon Bruce Consulting: Blog

Do You Know What Your Employees Want? Need?

2012-02-09T07:27:00.000-08:00

     A large oil service company brought their CEO and several Vice Presidents to the Baaken region of North Dakota this week to ascertain how to attract and retain good employees. This company has a philosophy, often forgotten in today's times, of retaining good employees for life. What that means is if you start your career at the company, they expect you to retire from the company. This is not common in today's world, however, there are still some companies that believe in that philosophy.
     Well, what did they find? Now, I don't know-- that is a trade secret. However, what I do know is that the CEO and the Vice Presidents did a good job of getting out into the field and talking to the employees on what they want/need in order to enjoy working for the company.
       Now, oil field drilling and service work is hard, dirty, lonely, tough work. Away from home, weeks at a time, living in a "man camp" with many other individuals, normally men, away from wives, kids and other loved ones is tough on anyone! However, the money is normally very, very good, the working hours are long and you can make good money, especially if there are no jobs at home, where ever that might be.
       Do you know what motivates and inspires your employees? Money is normally NOT the main factor, in fact, money is usually about item 6 or 7 on the list. Verbal praise and recognition is normally at the top of the list. Being told that one has done a good job when in fact that is the case is paramount. Simple contests where the prize can be as simple as a free meal at the restaurant to as fancy as a cruise for a week on the Riviera are all ideas that help motivate people to do a good job.
       We have a client that awards a full paid 5 day cruise to any employee which has 12 or more years of service with the firm. This client, in health care industry, is a good employer and recognizes the value of hard working, long term employees.
        The next time that you are experiencing a turnover in staff-- do some real hard analysis of why your employees are leaving. You may find that some simple changes in appreciation and recognition will go a long way to retaining key staff members.

Welcome-- We Are Glad You are Back!

2012-01-27T07:03:00.000-08:00

I have been on travel the past week with clients in the Southern United States. Because our firm is global in nature, we have clients all over the world. This past week, I have been in Texas.

Depending upon the client needs and requirements determines where I stay when out of town. In one city, I stay at a small botique hotel located in the downtown area. I have stayed at this hotel for the past 12 years-- very convenient to our client locations, good food and a wonderful bed.

When I checked in this week, the front desk staff seemed genuinely happy to see me back! The Bellman remembered who I was and he too seemed genuinely happy to have me back on the property. The manager came out and we talked-- he remembered that our Northern Rocky Mountain office was in Billings, Montana and asked how the weather was in Billings.

Why is this important? Well, the whole staff of the hotel remembered a returning guest, they seemed genuinely interested in my staying at the hotel and they wanted to do anything to make a long, exhausing trip more pleasant.

What do you do for your long time customers? Do you remember them when they come back? Do you greet them by name? Do you know what exactly it is that they need/want/desire from you in the business transaction?

This particular hotel has figured out how to make me feel important! We try to do that with our many customers. You should do that as well with your customers. This is not hard or complicated, however, this is a skill that can be easily taught or learned. Make sure that your customers know, really know, that you are indeed thankful that they are your customers. Remember them when they return to your business-- you may be amazed at the return business and the referral business that this generates for your firm. After all, the customer has only one dollar to spend, you want to do everything possible to insure that he/she spends it at your firm.

She Lost her Lease; No, the Business was Sold to Folks in Iowa; Business was Slow, She Closed Down!

2012-01-18T05:25:00.000-08:00

     I was in a business meeting the other day and someone mentioned a business that is located in the town that I was in. Of the several different business people at the meeting, everyone had a different idea of what happened to a local business that had recently closed. Interestingly, the more folks that became involved in the discussion, the more stories about what had happened to the business under discussion.
     Bad news is not like wine-- it does not get better with time. If something is going to happen to your business, you might as well be the one who controls what happens and how the knowledge is portrayed.
     In the particular instance here, many business owners each had "heard" or "were told" what happened! Interestingly, no two stories were similar. If you are going to move, close the store, take on a partner, join a franchise, add a new line, you as the business owner are best suited to explain what is happening.
      Be proactive and positive, no matter what the news is! Loosing a lease may be the best thing that ever happened to you. You may be able to get more space, less space, more parking, better lighting, etc. Closing or moving the business may be what you need at this particular point in time. Always find the positive spin on news-- no matter how bad it may appear, there is always something good. Don't let your customers, neighbors or competition guess what happened. Tell them proudly what is going on-- you will be happier that you did.

We are Short on Staff--Again!

2012-01-16T05:12:00.000-08:00

    A business owner was telling me the other day that he is again short on staff, however, because he is working longer and harder, he has elected to try and get through February before he hires another individual. Now, this business owner has been one of our clients for many years. As we discussed the challenges of working without adequate staff, he insured me that finding staff was one issue, working without adequate staff is another.
     It is important for any business owner to have adequate staff to fulfill the needs of the business. However, when you are working 80-90 hours a week just to stay up, then, perhaps, additional staff is one of the challenges that needs addressing.
     We recommend that you don't hire staff just to hire staff, however, we also suggest that there is little, if any, sense if putting off a hiring decision if indeed the business is suffering from lack of staff. Often times, our clients have found that once they have added the requisite staff, that they become more profitable and productive because they are able to do more of the strategic tasks that were not being accomplished when the business owner was performing a staff function.
     Job descriptions and clear duty expectations are important when hiring new staff. Don't assume anything with a new employee. He/She will, most likely, do an outstanding job once you explain what you wish to have accomplished and completed. Just because they did not do what you expected is probably because you did not explain your ideas and expectations clearly. Most employees, >98%, want to do an outstanding job for you. Give them the chance, you will be surprised with the results!
      Hiring staff is always a challenge, however, having the additional help normally results in increased profitability and sales. Think about that when you are faced with the hiring staff question in the future!

We Are Having Our Best January on Record!

2012-01-14T14:06:00.000-08:00

     I was visiting with a client the other day and he shared that with just 14 days into the new year, his firm has had their best January on record-- and the firm has been open for many, many years.
     Well, how did that happen? Was it blind luck, guesswork, or are folks ready to spend money? Well, what the business owner told me was that folks are spending more money now then they did before Christmas.
      OK, how is this happening? The business owner told me that he has been following the trends in his industry, buying product that mirrors those trends and having outstanding customer service. Using market research is something that many business owners fail to employ during a new selling season. What is going on in the industry? Just because you are in Ogden, Utah, Enid, Oklahoma or Billings, Montana really makes no difference. What makes a difference is that you have "read the research" and have identified where your particular industry is moving. This is not hard, however, you have to be diligent in following market trends. By following these market trends, you are able to have the products and merchandise that your customers are seeking and buying. If you see a trend in another part of the country, it may be worthwhile to see why it is a trend there and not where you are located. Could be that you are missing out on something and you need to investigate if this is a product or idea that would be beneficial in your area as well.
      The business owner that told me that his January is so good watches his expenses very carefully. He insures that his accounts receivable are very manageable and is always insuring that customer service is unsurpassed.
      Think about your January. Are you having the best January ever? If not, perhaps some market research will help focus your store better in the marketplace.

2012 is HERE-- Are You Ready?

2011-12-27T16:39:00.000-08:00

   Well, 2012 is here! Are you ready? We are! OK, you say, how are you ready? Well, we have reviewed our strategic plan, made some adjustments, have completed our market analysis and projections and are ready to get started!
    What about you? Have you begun? Now is the time to spend some reflection and analysis time reviewing what has transpired in 2011 and making whatever field adjustments needed and necessary in order to insure a profitable and successful 2012.
     Here are some ideas to consider---

What product lines were most profitable this past year?
Why were those product lines profitable?
What product lines were least profitable? Why? What could you have changed, if anything to insure that you achieved greater profitability?
If you had to do it over again, what changes, if any, would you make?

These questions are simple, basic questions-- however, with some exploratory analysis, will reveal some deep beliefs and ideas that you may not have considered. More importantly, you may find some ideas that you can apply to your business goals in 2012.

Don't wait to begin this analysis! Now is the right time to start! The answers that you derive may be very insightful for 2012.

Sending Your Ducks to Eagles School

2011-12-06T05:52:00.000-08:00

     The title of today's blog came from a discussion I was in with some business owners. The key point to the discussion was that there is real value in taking individual contributors who may need some additional skill training and sending them to schooling focused on higher level individual contributors. OK, what does this all mean?
      Remember the duck-- it is slow, waddles and barely flies off the ground. Contrast that to the Eagle-- Graceful, flies high, can swoop down low, gather a fish or other prey and fly back high again. Now, can the duck do that? Well, probably not! The duck is built much differently than the Eagle-- the duck has different feet than the Eagle, HOWEVER, there is bound to be something that the Duck can learn from the Eagle.
     The same is said about all of your team members-- each team member (individual contributor) has a unique skill and ability-- that is why he/she is on your team. However, you can enhance and enrich each individual contributor's skill and team contribution by allowing them to be pushed-- try things that are difficult and hard. Although they may struggle and have difficulty at first, they will probably pick up some skills that they did not think they were able of achieving. Additionally, each Duck is bound to teach the Eagle's something as well. Think about it-- pushing everyone on your team, even those that are sure they can not do a task will yield wonderful results! Try it!

I could have bought it cheaper on the internet!

2011-12-05T06:15:00.000-08:00

The title to this post is one that many business owners hear constantly. It is always cheaper on the Internet. Interestingly, we are a real fan of the small business owner. After all, the small business owner is the one who has created more jobs, provided more community benefits and sponsorships than anyone else. After all, the small business owner lives in the small town and depends upon the residents of the small town to support his/her business.

We bought some products the other day from the small business owner. When I was at the business owner's store, I told him what I wanted. He told me that he could have it here in a few days and what the price was going to be. I said OK and we had a deal. Now, just for grins, I decided to "Go check the Internet" and see if I could find it cheaper. Well, what do you think? Yes, I found my products cheaper on the Internet!!! Now, this required more exploration as well.

After I burned probably 20 minutes of time, I discovered that after shipping and minimum order size, I would have saved about $10 if I had ordered on the Internet. Was that worth it? Well, I did not think so, otherwise I would have used the Internet and not the small business owner. The real question that has to be answered is "Why was the additional $10 worth spending with the small business owner?" The real answer is that I had a professional that insured that I got the right product, the right size, fit, shape, color that I needed for the task at hand. Now, remember, I wasted 20 minutes of my time doing the research. OK, the time for this exercise was academic because it was related to research for this article, however, I was happy to pay the business owner the additional $10. If there is a problem with the product, I know that I have someone to go back to help me "make it right!" That normally does not happen on the Internet.

Again, there is rarely anything that one cannot find cheaper, someplace! The real question is what is the cost in time and energy to do it? The real answer is that it costs more and is less effective than going to the small business owner in town and have he/she either sell or order what you need. Yes, it may appear to cost more, but does it really? In the end, I say that the answer is NO, it is cheaper to use the small business owner than spend more time trying to find the cheapest price.

Its Lemons and Apples-- There is no comparison!

2011-12-03T16:15:00.000-08:00

I met with a business owner the other day. We were talking about a wide variety of matters-- however, I mentioned to him that a mutual acquaintance of ours had told me that he had bought a product at the mall instead of from the small business owner. As we were talking, the business owner told me that actually, there was no comparison--what we were talking about was Lemons and Apples!

UMMM-- I had to explore that. OK, here is what I discovered. The small business owner had the same type of products that the mutual acquaintance bought at the mall. The real difference is in the quality of the product. Both products LOOK the same, however, that is where the similarities stop-- they LOOK the same. Further exploration reveals that the key components of the product are different, one is made much more robustly (the one sold by the small business owner) as compared to the one sold by the mall store. Additionally, the components of the product LOOK the same, but, are indeed, much different upon close inspection.

Now, the real question is, "Does LOOK really tell you the value of the product?" Well, of course not, anyone knows that the answer is NO to that question! When you are comparing a product, one has to be sure that all of the components are the same-- in size, weight, shape, quality, finish, etc. If you cannot say with 100% certainty that both are the same, then indeed, you are comparing apples and lemons.

The small business owner is usually better suited to provide the better quality product. Why? Well, he/she has been in business for a long time, normally knows the product that they carry and can identify the strengths and weaknesses of each product. Price is one facet of a product that needs to be discussed. If the price at the mall is cheaper, the obvious question that one has to ask is "Is it the same product?" Normally, the answer is NO, however, you need to do some exploratory work to be able to answer that question with complete certainty.

If you are interested in buying something, the small business owner probably has the best product. Yes, it may be cheaper at the mall or other big box store, however, the real question that you have to ask is "Is it the same product?" In most cases, the products LOOK alike, however, that is where the similarity ends! Make sure that you are buying the identical product at the mall before you dismiss the small business owner. Our experience is that the small business owner normally has the best product and best service, even if it costs more!

I Think They Have a Lot of Money!

2011-11-16T10:21:00.000-08:00

     While visiting with a business owner the other day, we were discussing a variety of matters. As we talked about some folks who lived in a certain neighborhood, he mentioned that he "Thought That They Had A Lot of Money." Now, not knowing anything about the neighborhood, I had to explore that idea more thoroughly.
     My first idea was how one can think that "They Have a Lot More Money?" Is it the car they drive, the neighborhood they live in, the watch,clothes and shoes they wear? Having been a student of human nature for many years, I have come to the conclusion that "You Cannot Judge a Book By Its Cover." The same is true for human beings. What you see externally may have no bearing or relevance to anything.
      I met with an insurance broker the other day and he talked about "Faking It Till You Make It." We were talking about new cars-- the insurance broker said that he was going to buy an expensive foreign import car to show how successful he has become. I mentioned that was a great idea, however, I would stay with my domestic made car, because if some mechanical breakdown occurred, I could probably get it fixed easier than owning a fancy foreign import car. The truth of the matter is that the foreign car would be nice, but, if broke down out in the middle of Montana, it makes no difference-- you are not going anywhere fast! A domestic car at least has some chance of repair in the middle of state.
     Car salesmen are taught never to judge anyone who comes to look at a car. An individual who wears a pair of old overalls with a gimme hat may be a multi gazillionaire, while a well dressed, flashy dresser may be one paycheck away from the poor house.
      The key point here is that appearances can be very deceiving. As a business owner, if someone wants to buy your product or service, don't make any judgements about anything. Identify how much the product is going to cost and how your payment terms work. If someone is seriously interested in purchasing, they will continue the discussion. If an individual does not have the fiscal resources to continue the transaction, they will walk away. If someone walks away, you know that either you did not have the right product or they could not afford it at this time. Either way, you did not waste any more time on a client that could not purchase today.

I Love it HERE!

2011-11-14T06:44:00.000-08:00

   I went to the Dentist the other day and the dental hygienist told me that "She Loved it HERE" as she was cleaning my teeth! Today, you don't find very many people that are open and honest about why they like their jobs or their boss. I had to know more.
   So, I asked her why she liked working for this particular dentist. Here is what she said--- We work as a team, She was a respected team member, she enjoyed her other team members and the doctors in the practice actively sought and respected her opinions about various dental cases as the patients were been seen by the doctor.
    The hygienist also told me that she had worked for another doctor who always screamed and yelled every day. She said his work was very, very good, however, the working environment for staff members was real difficult-- to the point where she decided to leave and find another opportunity-- which she did!
    How is your work environment? Can you honestly say that your staff/team members would say, "I Love it it Here?" That is a question that needs some heavy duty thinking--- but as the business owner, you are the one who needs to do the thinking! Our experience with many businesses, both large and small is that I seriously doubt that most folks can say, "I Love it Here." If that is the case in your business, you need to find out why. In some cases, you can never please everyone. However, in other cases, some changes may be all that is required to increase the satisfaction and joy that staff members feel about working in your firm.
    Think about this carefully-- there are probably some things that you could change that will aid and assist your firm in ways that you may never have considered. Ask the staff-- they will tell you what is eating at them and how it can be fixed. In most cases, small changes will result in large returns in increased staff satisfaction and increased profitability.

Look What We Found In the Storage Closet!!

2011-11-13T18:43:00.000-08:00

   A business owner told me that the other day when I was in his store! The product, small, but quite expensive, read over $4000, was a product that his store carries. The product was in new condition, the original wrapping still on it, never having been opened or touched. The store owner put it on the shelf for sale, hoping that the product will sell.
    Now, as I listened to the story, my first thought was how did this product get lost? What about the inventory records? Did not the inventory records get reconciled each year when inventory was taken? Or, Was Inventory taken each year? How could a store owner "loose" a $4000 value product?
    The questions continue to come as I sit and think about this matter. Here is what is important--- you always need to reconcile your inventory records with the product on the floor. In this case, this product must have gotten "lost" in the storage closet and never found. Now, I don't know what happened, I doubt that the store owner does either. What I do know is that the inventory records must not have been very thorough or this "discovery" would have been found at the end of the first year that it was identified as not on the shelf.
    The key point here is to make sure that your inventory records and product on the shelf match. If they don't, find and figure out why!! Yes, the product could have been lost, stolen or misplaced. However, someone needs to identify what happened. In this particular case, it appears that nobody in management paid close attention to what the store actually owned. How this could have been done when inventory was taken or the financial records reconciled is beyond me!
    Know what is in inventory, what you have marked on the inventory records and what is marked on the financial records. If all of the records do not match, figure out why! Record reconciliation is tough stuff, however, this is the only way you know what you have in inventory, what the product costs and how much capital you have tied up. With working capital always a challenge, this is a matter that cannot be overlooked. Attention to detail is the key to matters such as these.

We are GOOFED UP!

2011-10-18T15:43:00.000-07:00

A business owner told me the title to today's blog yesterday when I was in to see him. He was frustrated because he was about to have a conversation with an acquaintance that bought an item he sells from an on line vendor, purportedly at 40% less cost than the business owner sells the same product.

Here are the business owner's frustration points:

His acquaintance never talked to him about his purchase before he bought it on-line
The acquaintance said that "he heard" that the business owner was "expensive"
The acquaintance listened to "several other folks" who had heard the same thing

The business owner asked how he might handle this matter. Here is what we discussed---

A. There is no reason to go "viral" or negative with the acquaintance. He bought the product on line and now has to live with his actions. I suggested that he compliment him on his purchase, point out that his store carried similar products and say no more.

B. We talked about discussing basic "market research" to find out the real reason why the acquaintance shopped on line as opposed to the local business owner. Obviously, the acquaintance had some "buyer's remorse" because he talked to the local business owner about his on-line purchase. It is always good to do market research and find out what the real reason is to shop on-line, or at another competitor, when you have the same product available in your store. Here, my key point was to find out what was going on.

C. The argument that "several other folks" had heard that the business owner was expensive is truly a red herring. Why a red herring? Well, were the products identical in shape, size, fit, function, form, construction, etc? Just because it looks the same does not mean that it is the same. You can always go to Wal Mart and find something cheaper than you can at the local hardware store-- always. What is different is that although the products look identical, the material, construction and composition may be very, very different. The real answer is are you comparing Apples to Apples? In most cases, the answer is NO, you are comparing Apples to Kumquats-- which as any fruit farmer knows, is no comparison at all!
Customer education is the key to repeat business. As sad as this story is, I look forward to hearing what the business owner learns from his conversation with his acquaintance. As a business owner, keep market research in the forefront of your mind. Always bear in mind what the customer perception is of your business. How do you find this out? Ask!! Not only your customers, but folks on the street. You might be amazed at what you learn.

Are You Through with the Honey?

2011-10-16T14:06:00.000-07:00

I went to dinner with some friends from church today. The little greasy spoon cafe where we go is close to the church, has good food and is reasonably priced.

My friend asked for some honey. The server brought the honey. After about 10 minutes, she came back and asked if my friend was done with the honey-- another guest wanted it!!! I asked if they only had one bottle of honey. The server said, "Yes, there was only bottle of honey" at the cafe!

Now, as I reflected on this, I was impressed with the inventory control of the cafe. The manager must have recognized that they don't use much honey and needed only bottle to fulfill most diner needs. In fact, I asked that question and that is what the server said--"We don't have many people who use honey."

The key point here is two fold. One, is inventory control. There is no reason to tie up capital in inventory if you are not going to sell it. You only need to have as much inventory as you are going to use. In manufacturing terms, this is called Just in Time (JIT). Now, if the honey runs out before somebody goes to the store, the cafe is out of honey. However, probably not a deal breaker-- if you are hungry, you are probably going to eat, even if there is no honey!

The second key point is obligation of excess capital. Capital is the lifeline of any business. The more capital that you have, the easier it is to run the operation. In this case, there was only one bottle of honey--there we no others. Hence, there was no excess capital tied up in inventory.

Look at your business. Do you have excess capital tied up in inventory? If you do, you should strongly consider selling the excess inventory to recover additional operating capital. Excess inventory allows for spoilage, shrinkage and obsolescence. Buy only what you need and can use-- that is the best way to operate! The little cafe figured that out with the honey!

Square Peg-- Round Hole-- It Does Not Fit!

2011-10-14T16:25:00.000-07:00

     We met with a business owner the other day. She was expanding her business and turning it over to her sons plus one hired man. The business is in the construction industry. Both of her sons and the hired man were all craftsmen in the industry, had minimal, if any business experience, but were now being thrust into the role of a business owner.
      As we talked about this new endeavor, the business owner was clear that she wanted to retire and have the sons and hired man run the business. Her first question was how fast could we teach the employees basic business accounting, business terminology and the popular business accounting program, "Quick Books?"
       Our team was taken back by this request and pointed out that although the concepts she wanted taught were easy to teach, the learning part is often times more difficult, especially if the employees did not have a business background. For about 15 minutes, our team tried to hammer this point hard. At the end of the time, we identified some training courses that Adult Education at the School District offers and suggested that may be a good place to begin. Our team knew that this was a disaster, however, try as we might, we did not talk her out of her idea.
       This indeed was the classic square peg/round hold dilemma. Granted, the employees COULD learn how to do basic bookkeeping and accounting, however, we identified that it may be much cheaper to outsource that part of the business to a trained bookkeeper than try and teach the employees.
        Interestingly, everyone has certain skills that they excel at. We identified that her employees were excellent craftsmen (her own admission!), so it made more sense to us to have them performing the craft skills and outsource the bookkeeping to someone who was skilled in that trait.
        How will it go? I don't know! I hope well, however, expect that there will be large bumps in the road ahead. My point is that there is no reason to force fit someone into doing something that either they don't want to do or don't have the skill set to do a good job. It is much more efficient and effective to insure that you have the right employee doing the right task all the time. This is also much cheaper as well. We'll see how it goes-- I hope well.

Is It The Truth?

2011-10-10T14:53:00.000-07:00

Our title today is first rule of the 4 way Rotary International Test. We recite the Four Way test each and every week at Rotary.

A business owner was telling me the other day that his business has increased significantly because his competitor fails to follow the first rule of the Rotary Four Way Test! This business owner told me that he has had customer's of his competitor come and buy a similar product from his store because after having bought from the competitor, they review the product, the manufacturer's documentation and decide that what they were told they were buying and what they actually were sold were different!

Now, with business and competition as strong as it is today, I think that you have to be careful about what you tell a prospective customer. There is nothing wrong in pointing out all of the strength's of the product, the benefits of the product, but to not tell the truth is something that is not only unethical, but is also not honest.

Interestingly, some people will believe what they are told and will not do any follow up work to be sure to verify and be certain what they bought was indeed what they thought the product was as described. However, many people will read carefully all of the manufacturer's paperwork, review the specifications carefully and return the product if what they thought they bought and what was actually was delivered are materially different.

As a business owner, you have a duty and obligation to tell the truth. There is nothing wrong in telling the truth. If the product is of inferior quality, then so be it. If you cannot honestly say that the product is not as superior as other products, perhaps finding a new job is the best solution for you.

Many business owners today are willing not to tell the truth to make the sale. Albeit, this is normally a "one time" sale. Many business owners are very willing to fore go a sale today, in hopes that the customer will return and buy something later, hopefully establishing a long term customer relationship.

We always recommend a long term customer relationship. Always tell the truth about the product. Many times you are able to address what appears to be a negative point in a positive manner. For example, if your product is indeed of lesser quality than another product, you can cite that your product does not have all of the features that a bigger, more expensive product possesses, but will fulfill the intended need in the same way, probably at lower cost.

Always tell the truth. If you tell the truth, you never have to remember what was told. In the end, it is well worth hearing the truth every time. After all, is that not what you want, a long term customer that repeats his/her business many times over? I know that we do!

See You at the Flag Pole

2011-10-03T09:06:00.000-07:00

Our team was in Georgia last week working with clients. My good friend, Coach Alfred Hiers, asked me to join him and many of his teaching colleagues at a ceremony named, "See You at the Flag Pole."

This ceremony was held on Wednesday, September 28, 2011 at Valwood School, Hahira, Georgia. This is a national event, sponsored by the Fellowship of Christian Athletes (FCA).

There were over 50 parents, students from grade 3 to high school, along with teachers, administrators and community members such as I that participated. Two short Bible verses were read, then Coach Hiers and the Middle School Huddle Leader, had all participants join hands and pray out loud. If one did not wish to pray, he/she just squeezed the hand of the next individual.
I was very appreciative that I was asked, as a retired senior military officer, to participate in the prayer and the lead the group in the Pledge of Allegiance to the flag of our country. This was chilling!

Here is what I found most fascinating-- there were many different people attending. Everyone was positive and respectful of each other, their school, their community and most of all, what the future held for many of the students. Each student manifested a strong degree of trust, hope, drive, dedication, desire, honor, pride and privilege in their faith experience, their school, city, county, state and our country.

Even more interesting was the fact that I saw real executive coaching in action! Each teacher and coach that I watched was very encouraging to the many students that participated--giving each student the direction and counsel they so eagerly sought in today's turbulent world.

OK, we were in the Heart of the Bible Belt and participating at a private school. I get that--- however, what was exciting for me was the fact that the kids, parents, school staff were excited to be supporting each other, their school, their community and their nation.

Often times in life in general, we sometimes think that nobody cares. That sure was not what I saw on Wednesday! I was very, very impressed with Coach Hiers and his colleagues. Don't loose faith in the upcoming generation-- we have some wonderful human beings that are preparing and planning to take our places. We have done well.

Where is the Money Going?

2011-09-23T12:02:00.000-07:00

Are you watching all of your income (business revenue)? Where are the expenses? Why do you incur each expense? Are there areas for reduction in each expense category?

Many business owners are contacting us AFTER it is too late to be of any real benefit. The business has failed-- the owner owes more in debt than he/she can ever hope to recover. Now, we may not have been able to save them-- after all, we are management consultants, not miracle workers, however, we can perform some miracles if given enough lead time and some resources!

We have mentioned this previously, however, let's hit it again. It is always better to seek advice and assistance before you end up in trouble. Now, this is often times difficult for folks to hear and accept. However, there is nothing wrong with having a "check-up" to see how you are doing. The medical doctor does the same thing-- you go in for an annual "check-up" to see that everything is functioning normally. The same can be said about your business. Our clients that schedule and execute either semi-annual or annual business check ups continue to be more successful than those clients who never get a check up until there is some major problem!

If cash flow is a recurring and constant worry, schedule a business check-up with our firm. We may be able to identify some actions that will help you retain more of your capital. We work with many different businesses in various industry and business segments. However, good money management is the same in each vertical!

Know where you money is going at all times. Don't be hesitant to seek professional consultation with one of our consultants. The consulting fee is small compared to the benefits received! You always need to know where your money is going!

Think About a Franchise Before You Invest!

2011-09-23T11:51:00.000-07:00

I have been in meetings the past several weeks where franchise businesses have been discussed. Interestingly enough, many franchise owners do not seem to do the required amount of due diligence work BEFORE they commit to becoming a franchise owner. In two cases that I have reviewed, the franchise owner did not seem to have the specific industry knowledge before they spent their money and became a franchise owner.

Now, I am aware that one of the benefits of owning a franchise is that you do not need to have any industry knowledge-- the franchise will help you learn everything about what it is that you will do with your new business. If I was going to become a franchise plumbing company, I think that I would want to know at least something about hand tools, plumbing techniques, etc. Perhaps I need to know SOMETHING, maybe not a lot, but at least something. In the instances that I am familiar with, that does not seem to the be case--- the owners received some franchise training, but after training, were kind of left on their own to figure out day to day management and operations.

A franchise business is a wonderful way in which to become a business owner. The right franchise provides outstanding training, national and international marketing support, a suite of tools with which to do the task and a procedures manual to handle any task that the franchise claims they can do. However, there are many franchises that provide, little, if any training, "back office support" marketing material or support. You pay a fee and "fly on your own."

If you think that owning a franchise is something that you want to pursue, it may be very instructive to spend a hour or two with a business consultant and explore many of the factors that are associated with owning a business. The small two hour fee of the consultant will address a variety of factors that you may not have carefully considered-- at least at this point. Even if you pay the 2 hour consultant fee, you will be money ahead in due diligence research if you elect to pursue some franchise opportunity.

We cannot overemphasize the value of strong due diligence before you do anything-- let alone become a franchise owner. If you follow the franchise handbook and procedures manual, you should become a very successful business. Knowing what support is available from the franchiser is very important. Go slow, be careful and ask lots of questions before you spring into action in becoming a franchise owner.

A Professional Always Saves Time, Money and Frustration

2011-09-13T13:33:00.000-07:00

     A business owner told me a story the other day. He and his wife had used Expedia to on-line book an airline trip to a National Conference. Interestingly, the online travel site had scheduled their departure from their second airport 45 minutes before they were to originally arrive from their departure point. Well, you can guess what happened-- they arrived 45 minutes after their connecting flight had departed.
     What happened next was unconscionable. Once they recognized the mistake, they called Expedia for assistance. The assistance they received was that they were told that each traveller is responsible for insuring that the reservations and connections were correct before they begin the trip-- in other words, Expedia took no responsibility for any mistake. The bottom line was that my friend and his wife had to pay another $1700 to continue on to the national conference.
     Now, when I was told of this story, I told hm that I always use a local travel agent, Travel Cafe for all of our personal and corporate travel arrangements. Yes, I pay a fee for their service, however, if we have any challenges, I have a professional travel advocate working for me, not me or one of our professional staff trying to resolve some snag with a grumpy airline employee.
     Using a professional is priceless! At the end of the day, does it really cost anymore? In my mind, the answer is NO, using a professional actually costs less. The Internet has proven to be the great equalizer in many varied matters, however, there are some things that are not worth the hassle and inconvenience. In my mind, travel is one of those areas. Our professional travel agency always knows what is going on, what the challenges are at the distant end and always has a solution or idea for our team to use.
     Did my friend get his money back? No, not yet! His wife was going to contact somebody on TV and try and get some consumer help. However, if they had used a professional, they would not have had the problem in the first place!
     Remember, you always get what you pay for! Can you get some good deals on the Internet? Sure you can! However, when you do have a snag, trying to resolve the snag is normally more painful and costly than the cost of the professional in the first place. A professional always saves time, money and frustration. In today's world, I need more time, more money and much less frustration.

Do I get a FREE Drink? NO-- NO FREE DRINK!

2011-09-13T13:18:00.000-07:00

A friend and I decided to have pizza for lunch the other day. We walked over to the pizza place and the clerk said that there were 13 pizza's ahead of ours, however, we could order, wait and then take it out-- our original plan. I asked if we got a free drink for waiting? The answer was a loud and emphatic NO-- NO free drink!

OK, no free drink-- we did order the pizza, waited for the other 13 pizza's to be made and cooked and finally, after 35 minutes, received our pizza. We took it back to the place where we were staying and had lunch!

Now, as we analyzed our pizza encounter, several key points came to the surface! A soda fountain drink costs all of about 7 cents wholesale. The key price is the cup, the syrup is about 2 cents a serving and the ice cubes, 1 cent! For 7 cents, this pizza place could have had a great reputation for a 35 minute inconvenience! What was interesting, at least to my friend and I was the fact that we really did not care what size the drink cup was--it could have been a kiddie cup, for all we cared. The key point is that the pizza place recognized our inconvenience and tried to make a simple amend.

What was even more interesting was the fact that we had to have something to drink with our pizza. A little forethought on the part of the clerk would have revealed that we probably would have paid $2 each for drinks, $4 total (2 drinks @$2/ea). What happened was that we did not buy any drinks at the pizza place, ended up going and buying ice tea at a coffee shop and saved $2 dollars.

The key point here is that when a customer is inconvenienced, try and make a simple amend. The amend is usually very inexpensive, however, the client value is normally priceless. It makes no difference what the customer challenge is, everyone, including me, likes to "perceive" getting something for free!!!!! After all, we are all human beings!

Now, will I go back to the pizza place? Yes, I will. The pizza is great, outstanding, in fact. However, this is a customer retention trait that staff fell flat on-- and the incremental cost of providing a drink would have been minimal in the overall scheme of the operation. Think like the client, what would you want? Just do that-- whatever action you choose will turn out to be right!

Fair is Fair-- The Tale of a Marketing Firm Getting Fired!

2011-08-30T12:34:00.000-07:00

I visited with a business owner the other day who told me a story about a marketing firm that his company had engaged with. The business owner knew he needed some marketing assistance and this firm offered their services. However, what happens next is nothing less than incredible!

The business owner told me that the firm held a 6 hour focus group with part of his staff. The end result of the focus group was a new "slogan" that was something like "The Sun Shines Every Day". When asked if any customers or suppliers were involved in the focus group, the answer was no, if the staff believed in the slogan, their enthusiasm would be communicated to other stakeholders. Well, you can guess what the business owner thought-- BS! After all, he was charged almost $20,000 for this work product.

Now, I don't know if a plan of work was developed before the engagement or not. I suspect not. Of course, the business owner should have insisted on such a document, as well as the marketing firm should offered the same.

The straw that broke the proverbial Camel's back was the fact that the business owner was charged for the flowers and research time that the firm expended in sending flowers to the funeral home for the business owner's mother's funeral. Now, in our way of seeing the world, we would have sent the flowers to the funeral home, but would never have explicitly charged the client for such an action. Yes, this is business development and those costs would come from the business development budget. However, to explicitly charge a client for funeral flowers for his own loved one at a time of sorrow and grief shows a real lack of sensitivity and consideration.

Fair is Fair-- that is the axiom that remained with me as this business owner told me this story. Sadly, the marketing firm lost a client, received negative press and our business owner wasted money that he probably did not have to spend on a product that was poorly defined initially.

Remember, if the deal is not WIN/WIN, then probably you should reconsider how to make this deal a WIN/WIN for all parties involved.

I am Too Busy for any Help!

2011-08-19T19:13:00.000-07:00

    I was attending a conference last week and met a business owner who had been in business for many years. As we were sitting and discussing world affairs, he told me that he was so busy that he could not service his existing clients, he depended upon 3-4 key clients and had not developed any system or process where he could enhance his business.
    As we talked, I asked about getting some assistance, perhaps a part time employee who could help do some of the mundane work, if that was what was needed. No, that would never work-- our business owner was the only one who knew what to do. Well, what about using a firm such as ours, to help identify areas where improvements could be made. Again, no value. Interestingly, no matter what suggestions I made, there was no value!
    Now, as I left and thought about this answer, I realized that this particular business owner failed to see the "big picture" of business operations. He failed to see the big picture because he was solely focused on the micro parts of the picture that he understood, not realizing that help, other perspectives or professional consultation would be most valuable to him.
     No matter where you business is in the maturation phase of operation, i.e., start up, initial growth, full growth, mature, declining, always obtaining an other perspective will provide you with ideas and perspectives that you may not have previously studied or understood. None of us is as smart as all of us! When you engage the services of a professional consultant who has special training in identifying those problems that many business owners face, you are able to realize that you are not alone in teh challenges of operating a business.
     Will this particular business owner seek external assistance. I doubt it. Will he continue to be successful? I don't know. What I do know is that with his current mode of operation, it is only a matter of time before he will need some assistance. The question becomes will he too far gone to benefit from any outside assistance?

No, We Don't Have That---

2011-08-14T08:50:00.000-07:00

    I was in Dallas last week visiting/working with clients. I had a few minutes to kill, so I went to the mall, near where the client meeting was to take place.
    As I was walking in a big department store, someone asked a clerk if the store carried a certain type of product. Without hesitation or doubt, the clerk rudely said, "No, we don't carry that!" The customer looked at her, somewhat incredulously and was startled. The clerk told another clerk, "Go look, however, we don't carry that!" Well, the customer followed the younger clerk to the department where the product was located and WALLAH--- there was the product that the customer was trying to buy!
     As I watched this event unfold, I could not help but think how this near fatal event could have been precluded? Why would the clerk be so rude when all the customer was trying to do was find if the product was available?
      Remarkably, this event was salvaged, as much as it could be when the younger clerk indeed did find the product that the customer was shopping for, offered to find the exact style of product and said that it would have to be ordered on the inter net, the store did not carry extra pieces of product. The customer was happy with that-- what the customer was unhappy with was how the original clerk handled the original inquiry.
      As business owners, it is imperative to insure that when a customer comes to the store, you take the time to at least hear the customer and SEE if you don't have exactly what the customer is seeking, that you find something that is equally as good, satisfies the need and hopefully makes the sale! After all, that is why you are in business, to make green dollar bills!
     In this case, the original clerk should have at least tried to satisfy the customer's basic inquiry. Don't let a customer leave the store without at least trying to solve his/her problem. After all, that is why they came to your store-- to try and solve a challenge they had! Every time that you fail to help solve a customer problem, you increase the probability of losing a sale, losing money and losing a client.

This is Not Working--- I Cannot Sleep, Let Alone Eat or Work!

2011-08-04T15:24:00.000-07:00

     A client called the other day seeking counsel on an employee relations matter. The client hired a new employee who had been tested and shown to have a real aptitude for the line of work that the client had the employee performing. Unfortunately, the employee had worked for the firm for almost 5 months, but had not yet become a profitable employee--i.e., the employee was generating more revenue than the employees compensation package.
      Our client held a employee progress counselling session with the new employee, identified what steps the firm expected and what the employee was supposed to be doing. The employee acknowledged understanding and indicated that employee performance would meet company expectations. Unfortunately, the employee failed to meet corporate expectations, even after more encouragement and performance counselling.
       Our first question that was asked regarded the development of a job description for the task of the employee. No such job description was available. The second question asked was the availability of an employee procedures manual, commonly known as an employee handbook. Unfortunately, the client did not have an employee handbook either.
        In today's employment environment, a job description and employee handbook are paramount even if you have one employee and he/she is a family member. OK, you say, we don't need that stuff for a family member. Well, I am going to say that you do, however, I'll pass on one employee, however, you definitely need both job descriptions and employee handbooks if you have more than 1 employee.
         In the state where this client is located, state law allows for employee termination within the first 6 months of employment if there is no job description or employee handbook. Fortunately for our client, the employee was beginning month 5. Interestingly, the employee figured out that the corporate expectations were more than the employee could perform and submitted his resignation in lieu of termination.
         Our client stated that we would have an engagement to help develop an employee handbook and job descriptions for all corporate staff. I told our client that this experience turned into a very good teaching lesson. The client agreed, however, was not enthused to have to go through this, even once.
            Making hard human resource decisions is difficult for many individuals, especially if you have a friend or family relationship with the employee. However, employee's must be profit centers, not cost centers. Careful, strategic planning coupled with a clear set of expectations for each employee will negate many human resource problems.
              Job descriptions and employee handbooks are tantamount to better human resource management. Even if your firm only has one employee, the time to develop and write job descriptions and employee handbooks is time well spent.