Archive for the ‘The Black and White World’ Category

Part Two – The Conversational Wizard…

Happy Thursday everyone…ONLY ONE DAY LEFT!!!  Last week we started off our three part series about communication and we discussed how important communication was to your business.  We also discussed how important it is to understand the person or people you are talking to and asking basic clarifying questions.  We are going to expand a little more on those today as well as the nuts and bolts of your conversation and turning you into the conversational wizard that you want to be.   

To become that conversational wizard you first have to be able to assess your communication style and understand your strengths and weaknesses.  Be honest with yourself!  First, how do you communicate?  Are you bold and outgoing?  Are you okay speaking to anyone at anytime and are very self assured.  Or, are you soft in your communication and a little intraverted?  Are you reserved about speaking to people one-on-one or infront of groups? 

Both of these communication styles have their sweaknesses.  If you are the bold and self-assured you can often be perceived as being pushy, straight to the point, not caring about other peoples emotions as much as getting the job done.  You can also be perceived as putting people down and coming on too hard.  If you are soft in your communication you may be perceived as uneasy, that you do not have confidence in the information, that you are holdng up progress or that you are not taking the task at hand seriously.  This may sound harsh but remember, you need to be honest with yourself.  The biggest point that I want to make in this blog is that PERCEPTION IS EVERYTHING.  I can not stress that point enough.

Understanding what your particular weaknesses are will help you break down the communication barriers that currently hampers your communication.  You also need to understand the weaknesses of the person you are communicating with so that you can take over the communication wheel at that point in time to keep the communication going.  When you are communicating ensure that you listen to how you are communicating, listen to the tone of your voice, look at the reactions of the people you are communicating with and remember, be honest with yourself.

Next week we will discuss the strengths of each communication type.  You have some more homework this week…I know you are excited!  I would like you to figure out which type of communicator you are…and remember…be HONEST with yourself.  Neither communication type is better or worse than the other…just different.  However, for you to be successful you need to know which type you are.   

Remember that you have a great asset with Patrice Say.  She is a trained mediator and our very own Conversational Wizard.  She can help in any communication situations that are needed.  As always, if you have any questions or comments, please feel free to send us an email at info@aspirepartner.com. 

Thanks – Team AP

Part One – “They” always say………

That communication is the key.  Well, we are here to tell you that “they” are correct.  We will get into a little more detail below but in a nutshell…communication is everything in your workplace and it is what will make or break your business as well as personal relationships.  We are going to do a short three part series on this very important topic that is vital to your success. Now that you have had forewarning that I have on my psychologist pants today, we will proceed.

You can obviously tell that our resident financial and tax expert is not the one writing this today or he would tell you that MONEY is the key to your business!  And you may very well be sitting there thinking, MONEY, CASH FLOW and YOUR BOTTOM LINE are key (and they are so don’t take this the wrong way) but I have one simple question for you; how do you make your money?  If you are not able to communicate that with your people, your customers or potential investors, how are you going to make any of this…what was it again…oh yes, MONEY?!

So lets start with basic communication 101.  The definition of Communication, according to Merriam-Webster is; a process by which information is exchanged between individuals through a common system of symbols, signs or behaviors.  Sounds simple right?  The SBA says that small business have a 50/50 chance at staying alive after five years and Business Know-How suggests that the top seven reasons businesses fail are; 1 – starting a business for the wrong reason, 2- poor management, 3 – insufficient capital, 4 – location, 5 – lack of planning, 6 – over expansion and 7 – no website.  I think that all of you reading this would agree with me that in everyone of these categories, communication is involved in making decisions.

So how do you go about properly communicating?  There are different people out there that will tell you many different things, break it down psychologically, give you a class, teach you how to talk and I could go on for days.  I, however, think it is simple. The one thing to always understand is who you are talking to.  It does not matter how good you can sell, talk or BS, if you do not understand how the person or people across from you communicate then there will be no communication.  So before you start talking, LISTEN.  Get to know the other person as a communicator, do they like to do the talking or are they uncomfortable and need a little bit of a helping hand to get things going.  Look for little signs such as these and cater to the other persons weakness.  Also, basic clarifying during communication can be a large part of your success.  Ask the other person: “What do you think?” “How do you feel about what just happened?” “Does that make sense to you?” “Do you have any other ideas?” Too often people start heading down the path of problem solving before they understand what the other person wants to achieve. Understanding the other person is the key to your communication being a success or a failure.

I know you got a lot of information for your first session so we will cut it off there.  Your homework assignment this week is to get to know one person before engaging in a conversation with them and watch how much farther is gets you.  Remember to listen and engage them in the conversation and play off them.

ASPIRE has some great resources under our Human Resources and People segment that is headed by Patrice Say.  Patrice has many years of experience with issues of this nature and would love to help you and your team out.  She is a trained mediator and as mediator and a natural facilitator, she helps with those emotionally charged and sensitive communication issues that can disrupt the positive value of business communication.  Contact us when you need a partner for  straight forward communication and better results.

Have a great week and if you have any questions in the mean time, please feel free to contact via email at info@aspirepartner.com.  You can also check out the corresponding video blog that will be up on 02/22.

Thanks,

Team AP

Small business optimism is at a three year high!!!

Happy Sunday all!  We wanted to give you a good note to start your week off.

According to the National Federation of Independent Business, small business optimism hit a three year high since the beginning of the recession.  Slowly but surely people have a better outlook that their business is improving.

Even though hiring is not growing as rapidly as some would like, sales forecasts are looking much better this year than they have the past few.  With business owners feeling better about sales the hiring will start to come back as well.  Another part of the hiring piece is that a lot of businesses realized they were a little “fat” when it came to staffing.  There is a fine line to walk between being properly staffed and inefficient.  When the recession hit, many businesses had to lay off staff.  In some ways this allowed businesses to streamline operations by using less people to get the tasks completed.  There is also the lurking question of another dip in the economy.  Business owners will be less likely to hire until they actually see the business come on board. Because of this feeling, ASPIRE is able to help in a number of ways including be staff for interm hire until your are positive that you need the extra person.  We also provide recruiting services to help you find the right person to fill the position.

With all of this being said, it is great to see a positive outlook for 2011 in the small business segment.  We have gone through some very tough times over the last three years and we have all learned a lot from the recession.  We all know that it can be hard to see the positive some days but as leaders, we need to constantly be focused on the future.  The challenges that we face are stepping stones to a long and prosperous future if we handle them correctly.

We will have a corresponding video blog at www.youtube.com/ASPIREpartners tomorrow afternoon.

If you have any questions or comments please feel free to email us at info@aspirepartner.com or leave a comment on the video.

Thanks and have a great week!

Team AP

Making SMART decisions with SMART phones.

Happy Tuesday all!  I hope you all enjoyed a great weekend with your family and loved ones.

Our topic today is an issue that has been on the rise for a little while now; smart phones.

BlackBerry’s, iPhone, Droids, Windows Mobile, they all have one thing in common; making it easier to work away from the office and with the technology improving daily, making it easier to do a lot more away from the office.

First of all, with this being said, it is extremely important to set policies and procedures that clearly outline what the devices are to be used for and when they will be used, especially when it comes to hourly or non-exempt employees.

For instance, there is a lawsuit right now against the Chicago Police Department because an officer who was issued a BlackBerry was requesting to be paid overtime because he was answering emails after work hours.

You could make the argument that the laws are not up with the current times but at the end of the day, they are laws that we as business owners need to abide by.

If you are going to issue your employees smart phones, ensure to implement policies and procedures that clearly outline what they are used for and when they are to be used.

For more information on this subject, check out our corresponding vlog at www.youtube.com/aspirepartners later today.  You can also reach us at info@aspirepartner.com if you have any questions.

Team AP

You know you can’t ignore the financial statements, but you probably need some guidance in reading and making sense of them.

If you are like most business owners and those in management, you know your “widget” or your core product or service like no one (or few) else.  You also know that the financial reports you run or have prepared for you are very important.  But do you know what exactly they are saying and showing?  Maybe you have a few key numbers that you hone in on.  Are they the right ones for you to be focusing on?

Chances are you are like most business owners, executives and managers that know little about the financial reports that you receive.  We consistently meet owners and execs that are embarrassed to admit that they do not fully understand these reports.  They clearly understand their sales and maybe their operational reports and have the misconception that just because they own or run a business or department that they should now know and understand their financial reports, I guess by osmosis!

Don’t Beat Yourself Up!

Us CPA’s and other financial professionals have been formally trained, have continued our education and have years of experience analyzing and studying financial statements from all kinds of companies in all kinds of industries.  I  certainly don’t know your core business like you do.  My core business just happens to be the stuff that mystifies and is so confusing to you!

Please, don’t be like 90+% of business owners and execs who feel inferior or worse yet, pretend that they do fully understand their reports. There’s valuable information in those reports, you just need help interpreting. Financial statements and other reports and data are important because they can help to both uncover problems and identify corrective action.

It’s in the past…

The core financial statements are historical reports, meaning that the information has already happened.  They are the balance sheet, the profit and loss (income) statement, and the cash-flow statement. The balance sheet is simply a list of the assets and liabilities of the business. The difference between the two is the equity or net worth of the business. The balance sheet answers the questions, “What do we have and what do we owe?” while the P&L answers, “How did we do?” and the cash-flow statement answers, “Where was the cash used?”

And now for the future…

Understanding your financial reports is crucial, but probably even more important from a management perspective is what’s going to happen in the future. Developing both a strategic and reasonable forecast for profit and cash-flow is essential and makes the historical data more meaningful and valuable. With a “living and breathing” forecasting system in place, you’ll be able to figure out what worked, what went wrong and how to correct any problems to maximize your financial performance.

Cash is King!

We all know this saying. Especially now, in today’s new economy, cash is the one item to focus on in your business.  Credit ranges from non-existent to extremely limited. Credit lines, even fully secured ones are being pulled or at best are being reduced to the current outstanding balance.  Remember the old Smith Barney commercial, “We Earn It!”? That is exactly how expansion, new products, R&D and other new and expanding needs are being financed; through internal funding from operations.

Profitability is of course the first focus when analyzing your business or department, but cash profitability and the cash flow statement analysis is more critical now that at most any other point in time in the post-WWII business era. Do you know how to determine your cash needs for the current, short and long term periods or are you like so many who are simply hoping and praying that your A/R comes in so you can pay next week’s payroll or next month’s expenses?

How can I plan and forecast when I can’t predict the future?

Worrying about cash is exhausting, all encompassing and takes your focus away from what you do and know best, your core business. The future, even in the near term, is uncertain.  Some so-called experts say the economy is starting to turn around.  Others say we are years away. And I’m saying to forecast your financial future?  Absolutely!

One thing I can tell you about any forecast that you do (even one where you use ASPIRE partners’ help) is that it is going to be wrong! Predicting the future, exactly what a forecast is, is an art that is based in science. We can help prepare you a reasonable and reasonably accurate forecast but of course it won’t be perfect. Going through the exercise and documenting your goals, also what a forecast is, is the valuable asset that you will receive.

The power of forecasting (aka goal setting)…

A Harvard Business School study found that 83% of the population do not have any clearly defined goals.  14% have goals but not written down.  3% of the population have goals that are written down. The study concluded that the 3 percent that did have written goals were earning an astounding 10 times that of the 83 percent group.  In addition, similar studies have shown that individuals with written goals also tend to have better health and happier marriages than those without goals.

Pretty powerful stuff!  The same holds true for companies that have an established forecasting or budgeting process in place.  If the actual results are compared with the forecast and studied, now we are truly leveraging our information and data to maximize our financial performance, an in turn improving the lives of ownership, management and staff as we are now creating a growing and financially stable company.

Get started for free!

There are lots of free and inexpensive resources available. A good webpage for beginning the journey through financial management is the SEC’s page on Beginning Financial Management Guide.  SCORE’s website is another great resource for basic information.  We have FREE tools and templates and also some inexpensive interactive and customizable ones at www.ASPIREpartner.com.

We are also providing a FREE webinar series and also some live seminars in the Tampa Bay area to help businesses with a variety of issues including this topic of Demystifying Your Financials, Social Media and Implementing in Your Business and 5 Proven Methods to Improve Morale and Profitability.  Visit TeamGearShift.com for more information.

Economic Recovery

The economy IS beginning to rebound.  Is it where we all want it to be?  Not yet.  Will it be back to where it was in the “good old days”?  Yes and probably better!  History has proven that.

This is not the first downturn we have faced and it won’t be the last.  But what has been affected and what needs to change are unique this time around.

Are you confused and nervous about all changes that you must implement to remain successful and take you company to the next level in the new economy?

“Business as usual” doesn’t work

Business as usual, using the same processes and the same business models probably don’t and won’t work in the new economy.  Information (and life!) now change and evolve more rapidly than ever before.

Knowing what to do, how to implement the necessary change and what exactly to target and analyze and having the talents and skills on your team to tackle these challenges is critical.  “On your team” also doesn’t need to mean on your payroll!

The cost saving and value of outsourcing

Outsourcing, or more accurately described as only paying for talent and services when and where you need it, is a powerful tool that more and more businesses are turning to.  The days of measuring your business by the number of employees that you have is now as relevant as “weighing the mail.”  (See P’s Performance Pearls…)

Profitability, EBITDA and cash flow should be the ultimate focus of your business.  Doesn’t it make sense then to have the best talent that you can have for a fraction of the cost of a full-time employee?

Unless you are a very large company you don’t need to have a CFO, a SPHR Human Resources executive or a Logistics Expert on your team as an employee (and at a Huge investment)!  Having access to that expertise from professionals that you can trust when you need itis a powerful tool.

Do-it-yourself help

For those of you who are “do it yourselfers” you can find many helpful tools online to enhance your business.  We even have some available on our website, including FREE versions!

There are many seminars and online trainings that are available as well.  Our upcoming Team Gear Shift is an example of some of the help that is available at a low cost to business owners, team leaders and those in leadership roles that will help you meet the changes that your organization needs to thrive in the new economy.

And of course consultative advise, guidance and help implementing the changes and new methodologies and business practices is key to your success.

Isn’t it time to accelerate performance, profits & persuasion in your business or department and make sure you are poised to capture market share and take your business to your ultimate goals as the economy rebounds?

The Need for Strategy

Was at a great lunch meeting today and the speaker, David Johnson of Epiphany Marketing (epiphanymarketing.com) made the statement that “Strategy is more important to businesses today than ever before.”  I couldn’t agree more!

The days of gold falling from the sky and an endless supply of referrals are gone for most.  We have to work hard now to cultivate our prospects and potential clients.  One way that this is now done in today’s new paradigm is through the Social Media Marketing approach.  David is a great resource to help strategize and actually implement a Social Media Marketing system.  Epiphany delivers measureable marketing results that we at ASPIRE partners can personally attest to!

The approach that Epiphany takes is a strategic and targeted one, not one where stuff is thrown against the wall and we’ll see what sticks.  Most businesses take this approach with not only there marketing but their financial performance as well.  A strategy where reasonable and measurable financial goals are set is a key ingredient to most successful companies and organizations.  Prior to the economic woes of the past couple of years, companies could be quite profitable relying on inefficient and unfocused processes and practices.  This is not the case in 2010.

The economic climate as shifted (Shift Happens as “they” say) and companies need to change and adapt their practices and processes to the new economy.  It’s also overwhelming and confusing on what to do.  What do I need to focus on?  What are the key metrics that I need to monitor?  How do I train my staff on what they need to do?  How do I implement what now needs to be done.  That’s why David and Epiphany and ASPIRE partners are here.  We simplify and take the confusion and stress out of the new economic models that you need to thrive and survive the Shift.

Both epiphanymarketing.com and aspirepartner.com have free tools and information to help you take advantage of the opportunities that the Shift has created.  We just need to constantly be strategic and focused in our thoughts and actions as we embrace the new paradigm.  Remember, change isn’t a four letter word (it’s a five letter one!) and shouldn’t be feared but instead should be acknowledged as necessary and celebrated.  After all, life is pretty boring if not for change!

CFO vs. Controller (vs. Accountant, vs. …)

Often the terms CFO and Controller are used interchangeably.  In most small businesses, the terms get even more clouded as the title is given to whomever is performing the basic accounting functions.  Let’s explore in brief detail what the real differences are.

In many small businesses, there is often a void in real financial leadership.  There is probably a bookkeeper, office manager or accountant who handles paying the bills and maybe the payroll, billing customers and keeping some sort of financial records.  There may be an external CPA who helps with tax work, providing financials for the bank or a loan and who provides limited guidance and expertise.  What is often missing is true financial help and guidance for all of the above plus:  cash flow; boosting profitability; setting realistic and achievable financial and sales goals; negotiating with customers, vendors, banks and insurance providers; and a multitude of other financial and non-financial topics.

The role described above is that of a CFO and the items listed above are a mere sampling of how a CFO can help the typical small and mid-sized business.  “But I’m too small and can’t afford to hire a CFO” is the common thought and comment of the owner(s).  Often the guidance and expertise is not needed on a full-time basis and it doesn’t make sense to hire a full-time resource.  The outsourced CFO is a perfect solution for most small and mid-sized businesses.

“I have a great bookkeeper and my outside CPA handles my tax work and any questions that I have” is another common thought and comment.  That’s great and in some cases that’s all that is needed.  All businesses need someone to handle the bookkeeping and accounting function.  Sometimes it’s the owner, sometimes it’s an accounting team.  An outside CPA is often needed as well, but many times the external CPA is limited as to the amount of help they can provide.  Independence and/or lack of focus on consultative advice are but a couple of the factors that limits the outside CPA’s help.  What’s still missing is the value that an experienced CFO (and better yet one that’s a CPA too!) can bring on a limited part-time basis.  The CFO has the ability to get intimately more involved in the business and thus provide truly customized and value added and driven results.

The Controller function is more focused on overseeing all of the technical accounting issues and activities.  In a nutshell, the Controller function is more focused on day-to-day activities while the CFO function is more “big picture” focused helping with performance goal setting (including budgeting, forecasting and long-range planning), strategic initiatives such as mergers and acquisitions or restructuring, helping with financing, loans and/or investors and negotiations with external (and maybe internal) parties.

Many times in small and mid-sized companies, the CFO and Controller functions can be combined and outsourced as one.  This usually makes the most sense.  Why “buy” a high priced asset that’s really only needed some of the time when you can “rent” one on an as needed basis?  Be sure and make sure that your outsource partner is also a CPA for this role.  The required continuing education and expertise of a CPA can be of vital importance for the client.

Visit www.aspirepartner.com for more information and to see what other ways we can help your business or organization!

HWADI?!?!

Most every organization suffers from the dreaded HWADI.  What’s HWADI you ask?  How We’ve Always Done It!  That’s often the answer we get when we ask Why? of our new and prospective clients.  True, using tried, tested and proven methods and methodologies is good business practice.  But often stepping out of our comfort zones and/or having a set of expert outside eyes look at how we analyze, track and verify our financial processes and results can yield great dividends.

So just how do we hunt the financial HWADI?  Like in most every journey in life, we need some idea of where we want to go.  Even on our spur of the moment, no planned destination trips and adventures (some of the most fun!) we still have some idea of how we will go (plane, car, etc.) and have some ultimate destination (probably home) at some point in time.  So even when we have a completely spontaneous trip, we still have an ultimate destination and time frame.

Many businesses find it hard to forecast and project financial results (note I didn’t use the dreaded B word – Budget) because of the many variables, particularly in today’s economic climate.  “It’s impossible for me to forecast 3 months from now, let alone 3-5 years!” is a common theme we hear.  There’s a HWADI!  It is possible and by setting realistic goals and outcomes and tracking the progress, often the results are attained or surpassed.

Another HWADI we hunt is cost and expense reduction.  “We’ve already cut all costs that we possibly can!” is another common theme today.  While it’s quite possible that that is the case and that a business or organization has reinvented itself and its processes, usually that is not the case and the HWADI is still running wild!  Here’s another instance where an outside expert may be able to reduce your expenses while increasing your revenue.

What’s the HWADI in your business or organization?  Happy Hunting!