Know Your Business from Top to Bottom

All businesses possess special techniques for survival in their daily operation. Any business owner will tell you they must know every little thing about their it in order to make it successful.

In today’s competitive marketplace, a business operating solely by a staff of managers have tough decisions to make. Their high profile recommendations to invest in research and development plays an important role towards profitability.

These important decisions are usually submitted to the owner(s) before final approval is made. As a business owner in the current economic climate, it pays to know every key element for operating a successful business.

Many long hours of planning makes sure that nothing is missed. A knowledgeable owner must be able to answer any question on demand to properly solve any problem with a solution. Most owners choose to consult with their managers, staff, or employees to seek advice before making a final decision.

This is a good thing, because ideas or suggestions are hardly ignored. Some owners even hold weekly meetings to capture business revenues and to build better quality products or services for continued growth.

One common mistake owners try to improve on, but many fail to implement, is updating management procedures. These are always changing due to fluctuations in the economy. A more efficient way to remain profitable is to set a standard of operating procedures and implement key elements with a company policy.

Regardless what type of business it is, an employee, or even a customer often will raise a question or problem for the business to solve. This is when decision making at its best comes into play. The solution always comes from the top – the owner! If a different solution is given by someone other than the owner, and it turns out to be wrong, nobody is to blame but the one in charge for this mistake.

These key strategies must be in place to manage a successful business:

- Take control of Your business.
- Know how to dramatically improve profits.
- Provide the critical elements required by investors, leaders and buyers.
- Develop your own unique selling advantage.
- Operate a profitable enterprise with powerful management tools.
- Stay ahead of your competition – always.
- Make your business plan the heart and soul of your operation.

In order to eliminate the frustration of not knowing everything about your business, you must establish your inner instincts. Never give up and always diversify your knowledge. The easiest way to do this is to think back when you first started your business, and remembering those times of failure. If you want your business to succeed, you have no other choice. Always know where you’re going and remember where you’ve been should be your theme.

To look is one thing. To see what you look at is another. To understand what you see is a third. To learn from what you understand is still something else. But, to act on what you learn is all that really matters.

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Time Management Tips for the Unemployed

For the millions of US workers who lost their job, planning a daily routine around basic survival is a greater challenge. The desire to seek another job, or start some extra income producing project may be difficult to fit into your daily time schedules. There is a solution that will make it less painful than you think.

Today’s current economic climate tells us that people are very busy trying to find money to pay the bills. There’s no time to waste! If you discover that you simply can’t give up or change a few of your favorite past-times, plan to write out your daily schedule regardless of your income status. If you try this, you will have all the time you’ve ever wanted for doing whatever you want to do.

To begin, list your current daily schedule. You will need this to compare with your new list. Start by listing what time you wake up. Followed by everything you do during the day. Typically, you’ll have about 3-4 hours each day that can be used for more constructive and efficient things to do. Planning your daily schedule around job hunting will require basic time management practices without back-tracking.

Next, make another list of the things you want to do tomorrow. Do this every evening (or whenever) before you go to sleep. This is the key to managing your daily schedule. Write out your plans to go wherever to coincide with other things you have to do. Organize your trips to take care of as many things as possible while you’re out. Take notice of the time you spend standing around doing nothing, especially the time you spend on the phone, or the Internet, and eliminate non-productive things.

Make sure to list all your household chores. Set aside a specific time to do them. For example; you need to mow the lawn, paint a section of your house, fix your vehicle, repair a leaking faucet. Spending an hour each day on one particular task becomes more productive so you can accomplish other things. Don’t attempt your “to do” list in a week and try to hurry it along. Instead, do each task on your list and check off each one. You will be
amazed at your progress.

The bottom line here is to arrange your priorities. When you receive your mail, try not to let bills or letters pile up. If you’re unable to pay a bill immediately, file it in a special place that’s visible and note on the envelope the date you intend to pay it. Answer your letters the same day you get them. If this disrupts your list, simply make sure to include an hour each day to accommodate your mail chores. The same applies to any top priority on your list.

Always think of your time as your most valuable asset. Plan what you must do and what you want to do on a daily basis. Once you start listing and planning what you want to do, you will find extra time to relax. If you take a moment and think about the time you waste each day, imagine what it will be like when you reorganize your daily activities. It’s a matter of managing your time in everything you do. When you find that you can accomplish a lot more, you will become much more satisfied and happier with yourself.

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A major investment objective that investors aim for is always capital growth. With the current state of the economy, this is the most popular, but also the most difficult goal among investors today. A capital gain is achieved whenever the original item is resold above its purchase price. Profit is always the purpose of a growth investment where regular income is a secondary consideration from growth stocks, commodities, or raw land.

With a growth stock or raw land, the investor receives low or no yield, but the possibility of an increase in value. One such example could be a company show definite signs that its earnings are on the upswing, but management has decided to reinvest most of them in new equipment instead of paying increased dividends to shareholders. The results are good growth prospects and very low yield. Sound familiar?

Another example you could look at, let’s say you buy some undeveloped land on the out-skirts of a fast expanding metropolitan area. The yield will be zero, because you’re collecting no rent, but the prospects for growth will soon be promising. The only thing is when you sell the land for a profit or develop it as income property you will receive a capital gain, but at a lower value due to the current economic downturn.

If you are willing to forgo present income for the sake of possible increase in the value of your funds in the years to come, then I strongly suggest a growth investment. The difference between income and capital gain is very obvious during a recession or depression. Income is normally received regularly, while capital gains are much more uncertain and can be realized only when you sell. The difference in time pattern of return is critical to your objectives as an investor. If you rely on a definite amount of return, you will need this for your present consumption. Capital gains, however, are for acquiring wealth for future consumption.

The safety/income/growth (capital gain) choice is not a 1 out of 3 decision. Selection is a matter of emphasis. Many securities offer you a combination of two needs, playing down the third. It may be necessary for you to choose a mixture of investments.

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Our political system is screwed at every angle and cannot be defended by American people at any angle. Too many bad habits have turned into rotten decision making. If America wants to reverse the recession, then leave government out of it.

If America wants to regain making money a wonderful habit, there’s certain rules everyone must follow before that habit takes root. Good investment decisions and superior money management practices must be ingrained into your daily living!

Everyone must take control of their personal finances and learn various money management concepts. Each U.S. citizen must learn negative spending habits and quickly discover how to reverse them. All Americans must form a systematic plan of action that can produce important financial benefits in a relatively short period of time.

Financial security and wealth do NOT result from luck!

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Most management principals that are practiced by a company each day directly reflects how much they believe in being firm. fair, and consistent. A company with a foundation built on Honesty and Integrity in all that they do will win the hearts and minds, of both, employees and customers.

The key to any organization earning respect is to mean what you say and doing things right. Although, some businesses make a business decision not to participate in professional organizations with high fees and annual social gatherings so that added value can be delivered to its clients through reduced fees.

While it is nice to receive recognition from your peers, that should not be the driving force of your business or the corporate objective. The corporate objective should value what the client receives on a daily basis, because what is important to them is the only thing that really matters.

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There are a variety of reasons and excuses behind poor sales lead management because the $10 to $2000 companies spend to generate each business to business inquiry largely go to waste. I call them Barriers To Sales success. Here are six of the most common which plague businesses today.

1. SENIOR MANAGEMENT DOES NOT CARE

Paid to lead the organization in the big picture issues of market strategy, quality and customer satisfaction, senior managers are tempted to dismiss operational fundamentals and assume all is well. They are not aware of the tactical need for complete lead follow up, rapid inquiry fulfillment, accurate qualification practices or actual measurement of communications and sales performance.

2. SALES PEOPLE REMAIN UNINFORMED

Unless they understand the potential value of qualified leads, salespeople (an independent minded breed) think they do not need help. Sales managers who fail to insist on follow up imply that leads are at best an option for slow days. Marketing departments that fail to qualify leads in advance will most likely contribute to the problem, giving leads a poor reputation.

3. POOR COORDINATION HOBBLES MARKETING AND SALES

Marketing and marketing communications people frequently have little idea of the quotas salespeople must meet, the timing of their sales contests, their need for seasonal boosts in lead volume, the products needing extra lead support and the geographical balance need to apportion leads sensibly among sales territories. Meanwhile, the sales force does not understand why lead follow up reports are essential if marketing is to fine tune its advertising, mail and other promotion tools.

4. THE COMPANY MISMANAGES ITS PROSPECT LIST

Inquiries become orphans in a netherworld between marketing and sales. As a result, the company sends wrong information to inquirers, sends it late and does not tailor it to inquirers’ specific interests. Marketing collects limited and uninformative data and updates them frequently. Marketing rarely compares separate databases – one for orders and one for inquiries, for example – and even more rarely merges them into a marketing information system.

5. MANAGEMENT DOES NOT HOLD SALESPEOPLE ACCOUNTABLE

Sales management does not insist on follow up and new prospect status reporting, even though it fusses and gripes over detailed expenses and call reporting.

6. MANAGEMENT DOES NOT HOLD MARKETING PEOPLE ACCOUNTABLE

Chief marketing officers do not hold subordinates accountable for lead handling performance. They do not insist on program return on investment reports, for example, evidence that inquiry generation ties in with company sales goals or analyses of inquiry source productivity.

All six barriers are the product of poor communications, inattention, lack of knowledge, human frailties and the sublime dysfunctionalities that lurk within all organizations. None is the result of weak strategies, poorly designed products, sloppy manufacturing, competitive pressures, government regulations or inadequate capital the classic management issues that pre-occupy most companies in the world today.

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In the litigated world of today’s HVAC construction, owners and corporate executives are faced with many challenges and options in regards to management of construction projects.

With a basic understanding of several of the options, owners and executives can select what is best for their project; achieve a level of protection, and most importantly, assurance of a successful project.

One of the most overlooked items that must be understood, is a construction project is not a painless undertaking. All projects create disruptions, inconveniences, and can pull key personnel away from their normal duties. Not to mention dealing with utility interruptions, design issues requiring correction, project decisions to make, and resolving contractor issues.

The Architect and Engineer must also be monitored for clarifications, design issues that are being resolved in a timely manner, and to ensure full compliance of all contractual obligations.

From project conception, internal meetings, project design, and through completion of the last punch list item, an owner or executive must have complete written documentation kept in an organized manner for the project.

On large projects with long durations, good project documentation is very crucial as anyone involved in the project could have personnel changes prior to the completion date. Another key item is the project must be kept moving forward at all costs, because an owner must not allow the project to sit idle, due to delayed owner decisions, or awaiting design correction of design issues.

Even if an owner change needs to be implemented immediately, but impacts the critical path of the project schedule, it may be less costly to implement the change at a later date, even though the change would require some demolition of installed HVAC work.

Negotiated projects run smoother and have fewer issues to deal with, but one of the more costly routes can increase 15% to 30% more than a bid project. Negotiated projects are only second to design build in contractor preference of performing work. The additional cost is due to the contractor?s reputation is at risk, and will utilize top subcontractors on the project. This generally does not bid to more than two subs in each trade.

The contractor is also assured of a guaranteed profit margin of 11% to 15% (depends on market area), which is in most cases at least double of their bid margins. However, with this type of project, the contractor must justify its cost to the owner and can only bill the final cost of completion amount.

Bid Projects tend to be the less costly approach, but require a tremendous more amount of time to manage, as contractors will push issues to their limits and request clarifications on minor details. Contractors also open the bidding to most subcontractors, and will utilize the lowest numbers to win the bid award.

Contractors will bid this type of a project as low as a 3% profit margin and will beat down a subcontractor whom will have numerous exclusions attached to the bids. This is where the problems begin, as contractors will only look at the numbers on bid day, then realize the exposure.

On the first day, the contractor will begin submitting design alternatives and recommend substitute materials to reduce project costs. The next thing that occurs is design deficiencies will not be submitted by the contractor until the time of critical path impact with a delay claim included in the change order.

At risk construction management seems to be the construction raze at this time, and many of the large general contracting firms are offering this service. At risk construction management means the owner is assured the project will not exceed the estimated cost, and if so, is picked up by the contractor or construction management firm. Should any monies be left over, these are returned to the owner excluding any bonuses that may be included.

Utilizing a contractor for this type of service does not offer any owner protection or provides owner documentation of the project. Generally, what occurs is contractors have a bid rate and a sale rate for their labor, and will submit the cost of the sale rate labor on pay applications to reach the estimated cost of the project, so there is no project savings to the owner.

At risk construction management firms will document a project for the owner, however, will also be limiting their exposure should the project develop major issues.

Construction management firms offer the owner, the highest level of protection and planning on a construction project along with having the most accurate documentation of the project, because when contracted, they are an extension of the owner as a Professional Consultant.

CM Firms are also dependent on their reputation and will manage a project in the best interest of the owner, because they are not at risk financially, and do not have a vested interest in the project due to set fees and/or hourly rates. CM Firms will keep the owner informed of all project issues and assist the owner with determining the best resolution.

CM  Firms will be out ahead of the contractor, clearing the path for subsequent installations and evaluating for potential issues that could arise. The contract documents are also implemented to the fullest extent along with ensuring contractual obligations are met by all parties, including A&E Firms. CM Firms also offer the highest level of owner protection should a litigation issue arise.

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All Construction projects will have conflicts develop, while most are minor and easily resolved there will be the occasional major issue that redirects the attention of everyone involved and creates animosity. However, through the development of owner specifications, review of details which have a history of being deficient, schedule monitoring, and project documentation, these situations can minimized.

Some construction management firms claim all construction conflicts can be eliminated and avoided during the pre-design phase. However, even if all the details are correct, and specifications are absolutely clear, the contractor still has to build the project per plans and specifications.

In today?s construction market, most project managers and superintendents are on a bonus program and will attempt to install inferior materials and cut corners on details to expedite the project and reduce cost. In these situations, the owner must be prepared with complete project documentation to reduce its exposure. Architectural firms can only offer the owner a limited amount of protection due to the AIA guidelines and their liability associated with the design.

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In order to survive in today’s economic climate, it is essential to surround yourself with smart people, and practice sound business management at all times.

The most important, is to know the direction in which you’re heading and document your progress on a daily basis in that very direction. Be aware of what your competitors are doing and practice good money management at all times. All this will prepare you to recognize potential problems before they arise.

Amother very good business practice, but few business owners do, is to methodically build a credit rating with your local bank. Particularly, when you have a good cash flow, you should borrow $100 to $1,000 from your bank every 90 days or so.

Simply borrow the money, and place it in an interest bearing account, and then pay it all back at least a month before it’s due. By doing this, you will increase the borrowing power of your signature, and strengthen your ability to obtain needed financing on short notice. This is a kind of business leverage that will be of great value to you if or whenever your cash position becomes less favorable during a recession period.

Whatever business you’re in, by now you have found that most of your customers have the money to pay at least some of what they owe you immediately. To keep your cash flow current and the number of accounts receivable in your files to a minimum, you should implement all types of communication (phone, fax, email, direct mail letter) and ask for some kind of explanation why they’re falling behind.

If you develop such a habit as part of your operating procedure, you’ll find your invoices will magically be drawn to the front of their piles of bills to pay. While maintaining a courteous attitude, don’t be hesitant, or too lenient when it comes to collecting money.

Your business documents should reflect your way of thinking, and should be maintained to generate information according to your policies. It will be wise to hire an outside accounting firm to figure your return on your investment, as well as the turnover on your accounts receivable and inventory.

Such an audit or survey should focus in depth on any or every item within your financial statement that merits special attention. This way, you’ll probably uncover any potential financial problems before they become readily apparent, and certainly before they could get out of hand.

In conclusion, if you can manage the money first, the rest will follow! While you may think you cannot afford it, be sure that you don’t short change your self on professional services. This would apply especially during a time of emergency.

Anytime you commit yourself and move ahead without completely investigating all the angles, and preparing yourself for all the contingencies that may arise, you’re skating on thin ice. Regardless of the costs involved, it always pays off in the long run to seek out the advice of experienced professionals before embarking on a plan that could ruin you and your business – forever.

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Any person that accepts a management position must understand that acceptance of the position also requires tough choices must be made from time to time and are accountable for both tangibles and intangibles. A good manager understands this a coaching position which requires giving both, positive and negative feedback to build a strong team. A management position is not a popularity contest. However, it is a position where you must earn trust and respect from your subordinates. Earning and building trust involves being firm, fair, and consistent. A well respected manager will treat everyone the same way without showing favoritism and by being firm will establish with the subordinates that protocols, company policies, and directives will be followed and enforced without question including zero tolerance for failure to meet deadlines.

Most people know how good managers are suppose to perform and have great respect for those that know how to lead and coach a team. A good manager understands that you do not have to belittle, yell, or threaten during counseling sessions, in most cases, the point can be made in an firm, even tone voice. A manager understands you cannot force a person to think the way they do or even make them do something they do not want to do. However, a good manager will give someone options and communicate the repercussions for failure to comply or modify behavior. A manager has to be aware he/she is outnumbered and failure to earn respect of the team members will result in his/her own failure as in your career you climb the ladder. You do not go back down ladder, you go out the door for failing.

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A typo is not a mistake in a resume, but does make it more difficult to get an interview which is the primary objective of a resume. If you are applying for a specific rare skilled position and your qualifications and experience are stellar, the position may not require writing skills making it easier to be overcome. However, for the  majority of applicants a typo, in most cases, is a mistake that cannot be overcome especially for front line management positions and above.

A resume is suppose to be a carefully planned and well laid out document that is showcasing your best. Thus, having a document showcasing your best with a typo is an indication of failure to proof read material prior to sending out as well as an indication of producing sloppy or unfinished work.

Most positions today have very stringent time constraints for meeting deadlines, and if a typo is present on a document that was produced on your own time with no deadline pressures and contains mistakes, indicates to a potential employer that under pressure most documents will have mistakes. Typo on a resume will also indicate to an employer that communication by email with subordinates, peers, and up-line management will also be riddled with mistakes because of failure to proof read and take the time to conduct a spell check.
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