As we enter the new year, we all make resolutions about change we
intend to make in our lives. So why not give some thought to
those resolutions we need to make for change we need to make
in our business. Here are some I think many small business
owners will benefit from.
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As we enter the new year, we all make resolutions about change we
intend to make in our lives. So why not give some thought to those
resolutions we need to make for change we need to make in our
business. Here are some I think many small business owners will
benefit from:
Cash is king, so why don't we resolve to
implement a comprehensive cash planning process. Large companies do
this, but most small business owners fly by the seat of their pants,
and too often get caught with them around their ankles. Using data
from their own accounting system, it is a really simple process to
define who can be paid and when, but most importantly to also signal
when problems are on the horizon.
Organization makes the business work smoothly, so lets resolve to
check that every employee has a current job description that sets
out not only what his tasks are but also what his authority is, what
measurements will be applied and what satisfactory performance is.
Doing this lays the groundwork for creating an accountable
workforce. While we are about it lets review the organization chart
and make sure everyone has a clear idea of who their boss is, and
that they are assigned a job only because they are the best person
in the company for that position,
We all want to maximize profit, so a resolution to ensure that our
accounting system is working smoothly and providing us with the
information we need to run the business, not just the information
the CPA needs to file the corporate tax return. We must make sure we
have a costing process that tells us which parts of our business is
doing well, and which is not, what gross margin we need and when we
are achieving it and when we are not.
A final thought may be a resolution to ensure that we are providing
our employees with the feedback they need. A formal evaluation
process sometimes seems cumbersome for small businesses but the
benefits are enormous. But don't let it stop there, make sure
you and all your senior staff recognize good
performance when it happens, and of course do not
shy away from criticism when performance falls
short.
This is not an exhaustive list of resolutions you could make this New
Year, but I promise you, make and keep these and you and your
business will have a better year! Return to Article Index
If you want to start getting your life back, call Mike Anderson
at
The Author
After 25 years consulting to small and medium sized companies,
Mike Anderson, principal of Train Me To Be a CEO
realized that the most important part of his work was training the CEO,
and the reason he was such a good consultant was that he did that very
well.
Trained as an engineer, he became a CEO of
a midsize corporation at the age of 35. After a spell at Harvard
Business School he entered the world of consulting.
3. Ongoing mentorship. Begins with a minimum two
day one on one, but continues with monthly or quarterly follow up
sessions. (Smart and probably Best!) .
References
A New England Contractor
"Mike Anderson has been working diligently
with the upper management team at (our firm). Mike is extremely
knowledgeable and has an exceptional way of dealing with many different
personalities. He has worked very closely with the Sales Team to
impress upon them the importance of using a consistent method of
estimating. He was instrumental in restructuring our accounting
procedures."
