If you are a leader in an SMB (small or mid-sized business), you have probably spent the past 12-18 months feeling like the last contestant in a bad reality show: Survivor in the Real Jungle Economy. Now, green shoots are springing up here and there. It’s time to take 5 – in this case our five tips on making tomorrow better for your business and for you.
1. Follow the Money
Take a good look at your DSO – the time it takes for your company to collect on a sale. Companies that employ best practices strategies to improve their DSO can increase cash flow by as much as 30%. Track billing errors, the most common reason for delayed payments from customers. If you can improve billing processes to increase accuracy, you will have more cash on hand to invest in your business. There is an old saying, "You get what you inspect" and this certainly holds true for DSO.
2. Take Stock of your Image Chances are that you and your employees have been carrying a greater workload than in the past. Positions may have been blended to maximize efficiency and save costs. Maybe your bookkeeper has been doubling as a receptionist? It is time to take a look at economizing choices from a different perspective, particularly those that affect the image you project to customers.
For example, cosmetic office improvements have definitely not been a priority for those of us who never had $1400 to spend on a trash can in the first place – but maybe get those carpets cleaned before the next big prospect presentation. Other simple and inexpensive ideas to improve the image of your business:
· Invest in a new logo – Design and production of a new logo for your business costs much less than you might think.
· Update your website – When was the last time you upgraded your website? Does it accurately reflect where your business is today? Do the images and graphics have a "dated" look? Take a minute to check out your competitors and see how your site compares to theirs.
In the mid 1990’s Canon ran an advertising campaign with tennis great Andre Agassi. The tagline was “image is everything”. That may be a little over the top. However, studies clearly show, if you are a small or mid sized business, creating a strong image is critical to your growth.
3. Be a Blue Ribbon Boss
It’s hard to focus on leadership skills when you are worried about making payroll, but now is the time to get back to the basics of leadership. Remind employees of your company’s mission, take time for coaching and be a mentor. Here are some other tips:
· Keep people informed and be clear about your priorities.
· Be approachable and open to new ideas. You may be surprised by how much you can learn by listening to your employees.
· Provide positive feedback and constructive criticism when appropriate.
4. Leave No Stone Unturned
Owners and executives of SMBs have spent the past 18 months examining every facet of operational expenses. You may think you have no more room for savings, but think again. Employee related expenses account for 40% of all operational costs for most organizations. Unemployment insurance and workers compensation are good examples of areas in which a business can utilize strategies to lower costs. Here are some other tips:
· Quantify the value of all overtime costs. Overtime should indicate better business conditions (more revenue). Make sure you are receiving this benefit.
· Take a look at turnover. Are you turning over the right people (non-producers)?
· Explore every available option for your benefits. Don’t leave it up to your broker. Do your own research.
5. Look Out for #1
This has been a particularly difficult business cycle. But for most businesses, it is a marathon, not a sprint. You survived but probably have a few battle scars. Take some actions to take care of you. Exercise, spend time with your family, and make time for the relaxation activities you have been putting off forever.
Taking some time for yourself will help clear your head and make it easier to focus and get Back To Business.
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