Money Mastery

This is the most important concept for any business owner. Taking the steps to manage the money flow in a business allows the owner to invest in additional areas of the business that will stimulate success. The concept is simple. There are 5 areas of a business that directly affect revenues and profits.

The first task to begin implementation is to identify the current values for each of the 5 steps. This can be eye-opening for some owners, particularly when looking at the effectiveness of their marketing and sales efforts. Once the baselines are established it is time to set new target values and the associated strategies that will be used to get there.

      • Marketing
      • Closing the Sale
      • Sale Size
      • Buyer Frequency
      • Profit Margin

The goal is to optimize each of the 5 steps to create consistent and predictable cash flow. Depending on the size of the business these can be worked on separately, or if the business is larger, all 5 can be tackled at once.  

The first task to begin implementation is to identify the current values for each of the 5 steps. This can be eye-opening for some owners, particularly when looking at the effectiveness of their marketing and sales efforts. Once the baselines are established it is time to set new target values and the associated strategies that will be used to get there.

Time Management

Time is the one thing that you can’t make more of.  The key is to use the time you have wisely. I use a variety of exercises to concentrate on the tasks that are important for the owner to accomplish and which tasks are better done by vendors or employees. 

It is often hard for owners to relinquish control of tasks. This is typically due to the way that the tasks are assigned to someone else. One aspect of time management is to learn the art of delegation. It sounds easy, but it takes having the entire team on board. Knowing each team member’s responsibilities and how and when they will get the tasks done.  This ultimately minimizes the habit of micro-management – replacing it with an efficient and integrated method where everything gets done on time.

Business Operations and Systemization

Have you ever heard of an SOP? It stands for Standard Operating Procedures.  More simply this is the recipe for running the business.  Quite often business owners think that they have SOPs, but they have never taken the time to write them down. As my clients have come to know – this means that they don’t really exist. This exercise sounds daunting – but it doesn’t have to be done all at once.  The key is to identify what tasks or processes are essential to the business functioning – then write down the process and have the person who is responsible take it for a test drive. By capturing the processes one by one they become manageable and employee training becomes very efficient and new employees are productive faster.

Vision, Mission and Core Value Development   

Clarifying the vision and mission of a business leads to better marketing, team management, and business success. Visions should be inspiring and truly define why the business is in business in the first place. When a vision meets this definition, a business will begin to attract the customers they want. Additionally, it can be easier to find the right team member – because they see and are impacted by the vision and want to be a part of it. 

Linked to the vision is the mission – a blueprint that describes what the company does to attain the vision. This provides the team with clarity on the roles and responsibilities that they need to follow, and clients see how the business is run.

The final component is the creation of core values. If an owner doesn’t set these, the employees will develop their own (which may not agree with the owner’s concepts). I work with the owner and the team to identify the rules of the business, from honesty to accountability and beyond. The team helps to create the definition of each of the core values the business owner has identified as essential. This way everyone has ownership and accountability of their actions and the way that business get done. The positive impact on team morale is immeasurable.

Marketing

The first undertaking in developing an effective marketing plan is to identify the type of customer the business wants. This customer will value the product or service that the business is offering. It is essential to understand the key demographics that this customer has – then effective marketing communication can be created.  I know that this sounds limiting, because the impression is that you are missing potential customers – but when you have a clearly defined target market, and marketing communications that are directed to them, they are more likely to buy your product or service.

Another exercise that I work on with my clients is the concept of a Unique Selling Proposition (USP).  In other words what differentiates your business from competitors. This exercise focuses on what your customers are saying about you, why they bought from you in the first place, and how you stack up to your competitors and what they are saying about themselves. A strong USP reduces price competition, because customers see the business differently and are more likely to buy.

One final component of effective marketing is creating a guarantee. Business owners often fear this by assuming that customers will take advantage of them. However, by carefully expressing a guarantee, it addresses customers’ concerns when buying your product or service. In other words, it helps to reduce, if not eliminate buyer’s remorse. But it is not as easy as it sounds. The Guarantee must address customer concerns while minimizing financial impact on a business.

Hiring and Team Management

A critical phase for any business is hiring employees. A mis-hire not only will cost the business financially, but it may affect key customer relationships and office morale. So how can you do it better?  It takes a hiring plan that finds the best candidates quickly and effectively, without taking too much time away from other key tasks. I have helped clients establish their own process, or I have managed the process for them. The key components to any hiring process are the following

1) Resume review – do they have the right skills and education and are they located where you need them

2)Phone screening – Using behavioral questions, this gives a snapshot of what type of employee the candidate could be and how they deal with problems should they arise.

3)Face to face interviews – Again, using behavioral questions this allows a more comprehensive assessment of the candidate and can be linked with skill-based testing if the job requires.

4)Comprehensive Assessment Testing – Using established assessment testing as part of a hiring decision process can add another dimension to hiring the best employee for the job.

Vendor Assessment

No matter what type of business you own, you will need to work with select vendors. However, selecting the best vendors can be crucial to business success.  I work with my clients to teach them how to compare and access the vendors they need, based on developing vendor interview criteria. If done well, these relationships can became strategic partnerships that actually benefit both companies.

Next Steps Business Planning 

A business changes over time and the owner’s expectations may change as well. They may want to expand into additional locations, license the product or service, or prepare to sell the business or perform a generational shift. This takes planning to make sure that the change occurs on the business owner’s terms.  Another point to keep in mind is that this type of planning takes time to ensure that the owner’s expectations are met. Working with someone who has additional connections in these areas can be essential as well.  

Contact

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(111)-222-3333

Email

info@abc.com

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100 Overlook center, Princeton – 08540 NJ