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?

Proper Packaging – Step Three

Now that we have discussed how to properly protect your shipment from a damage standpoint, lets talk about the ways to help protect your shipment from being lost.  The best way to combat your shipment being lost is proper labeling.  The labels on the package need to clearly state the following: Shipper, Consignee and the addresses of both parties.  It is also helpful if the label has your phone number on it incase your shipment is lost it will be easier to get the shipment back on track. 

You also need to ensure that there is more than one label on the outer packaging.  If your shipment does happen to get lost or misrouted in the transportation company’s system it will be much faster to get it back on track if the company knows where it is from and who it is going to. 

This is a short lesson but one that is vital to the success of your shipment reaching your customer one time.  If you have any question or would like help in any area please contact us via email at logistics@aspirepartner.com or by phone at 888-689-7772.

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!

Proper Packaging – Step Two

Here is the second packaging step in our five part series and also one of the most important.  Now that you have the correct cardboard and outer packaging for your shipments it is time to look inside the box.  What do you see?  Is your product protected by something other than the outer cardboard?  What would happen to your product if it was dropped or some picked up the box and started shaking it.

Now, I am not saying that this is what happens to your freight once it leaves your center but you also need your packaging to be durable enough to withstand having some damage to the outer packaging.  The type of inner packaging that is needed will be determined by what you are shipping.  Let’s take for instance you are shipping a car hood.  If you just place the car hood in a carton and ship it, will it make it to your customer without damage?  More than likely it will not because there is room inside the carton for the hood to bounce around.  Now, if you did something as simple as putting Styrofoam blocks on all four corners of the hood, it will increase the durability of your packaging it two ways.  First, it will keep the hood from bouncing around inside the cardboard but it will also reinforce the outer packaging by keeping the corners from collapsing if the shipment is dropped.

As discussed in another ASPIRE partners blog, don’t follow the HWADI of the past.  Look towards the future and for ways to better serve your customers.  Something as simple as placing four blocks of foam on your shipments will cost you little in expense but can gain you multiple customers in the long run, thus, adding to your company’s bottom line.

If you have any questions, comments or just want to chat, please feel free to email us at logistics@aspirepartner.com or give us a call at 888-689-7772 ext. 3.  You can also email your suggestions for one of our weekly blog topics.

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!

Proper Packaging – Step One

We are proud to announce active blogging on ASPIRE partners new site, www.aspirepartnersblog.com!   ASPIRE logistics will be blogging weekly with a new post every Monday.  In the ASPIRE logistics weekly blog we will cover current events in the transportation/logistics industry that pertain to you as a customer of this industry.  This will include everything from current rates to packaging tips and anything that will help add to your company’s bottom line.  If there are any specific topics that you would like to see covered one week you can email your suggestions to logistics@aspirepartner.com.  You can also email us if you need help or support in any area of your business.

In case you have not come up with one yet, let’s start our New Year’s resolution: Properly Packaging our shipments.  This is one area that may cost a little more money up front but will save you time, money and customers in the long run, thus, adding to your bottom line.  This is the first in a five step series to ensure that your packaging will outlast your competitors and the rigorous ride until it reaches your customer.

As an owner or manager of a manufacturing company you may not fully understand the extent of the movement of your shipment once it leaves your dock.  Depending on the carrier, the type of carrier and the type of freight, your shipment could be handled multiple times once in enters the company’s network.  Every time your shipment is handled the odds that the freight will get damaged increase and as the shipper, it is our responsibility to our customers to ensure the product is packaged as best as possible before it leaves our building.

One of the biggest areas of opportunity that I have seen with LTL freight and small package freight is using the correct cardboard cartons.  A lot of companies have gone to using recycled cardboard for two reasons: The first being the “green” movement and the second being cost.  Some of your customers make purchasing decisions based on the company’s efforts to making the environment better and if they are working on “green” projects such as using recycled cardboard, solar power, etc.  The other area that is looked at by you, the manufacturer, is the cost of the cartons.  Using recycled cardboard can greatly reduce the cost as opposed to buying new which is always a good thing until you start losing customers due to all of their shipments arriving damaged no matter what carrier it is on.  The best way to combat both of these issues is to use a mix of recycled cardboard.  Speak with your sales representative that your purchase from and ask them what your options are.  You may currently be using 95% recycled and you may have the option to move to a 75% or 80% recycled that will be more durable.  You may also look at not using any recycled cardboard for your more expensive commodities or for specific customers to ensure that those customers or products are better protected.

What I’m seeing in today’s business climate is that leaders tend to go for what they perceive as the quick fix solution vs. use of more “performance results”, bigger picture, and strategic level thinking. For example, redesign of the employees’ jobs to include aspects that drive revenue, and use of incentives to reward top performance. Implementing these types of change is comparable to getting 10-20+ more miles per gallon from the existing “clunkers” – with a lot less collateral damage ending up at the scrap yard. Peace, – P

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