The cereal box proclaims “Gluten Free”. Curious, I read the back for more information and learned “Gluten Free” means the cereal “contains no gluten”. Not a startling message to me, but then the message is aimed at the school age set, certainly not me. Have you looked at your communication material to see if it is in sync with your intended audience?

While visiting my ophthalmologist, I looked at his business card. The phone number print is so small to be a challenge to good eyesight. I’m curious as to how useful it is for people with eyesight problems. Is the purpose to attract clients? Have you looked at your communication material to see if it is in sync with your intended audience?

Reserving a limo to the airport. After getting my departure info, the reservationist wished me a pleasant flight. “Do you meet customers on the return flight?” “We can if you want.” Again, my curiosity shifted into high gear. I wondered how many return fares were lost by not asking about the return flight. Are your employees selling the company in everything they do?

Many times double speak is used to gloss over unfavorable news. One of the US automakers (long before TARP) used the term “Career Alternative Enhancement Program” when it laid off 5,000 workers. Are you a straight shooter when dealing with your employees and customers?

During an introductory discussion with a client, I was trying to understand the company’s cash flow issue. I was surprised to find that the company owner had signed an office lease that left the company paying rent even though the space was not going to be ready for a few months. Are you using available resources to protect the company from mistakes?

Jim Whelan’s experience working with top management speans over 30 years. Previously bank CEO, insurance COO and entrepreneur, JIm is a recognized leader in business management - strategic and business planning for businesses and the community.

ProActive won the coveted Smalll Business of the Year competition in 2002 and Jim was recognized with the President’s Award for leadership by the Arlington Chamber of Commerce.

Since 2005 Jim has served on the Board of Arlington Food Assistance Center (AFAC). As Chair he led negotiations and purchase of AFAC’s $ 1 million dollar building.

Jim recived an AB from Holy Cross, a MBA from Boston College, and Executive Management certificate from Columbia University.

Boards of Directors Background:
●    Arlington Food Assistance Center,  Chair, Executive Committee, Finance Committee. As Chair, negotiated and purchased of AFAC’s  $1 million building
●    Arlington Chamber of Commerce, Board, Executive Committee, Treasurer
●    Federal City National Bank, President, CEO, Board
●    National Capital Speakers Association, Treasurer, Board
●    Chain Bridge Forest Home Owners Association, President, Board
●    Cathcart Springs HOA, Treasure, Board
●    Boston College MBA Alumni Association, President, Board
●    Boston College, Board of Trustees

Executive Background:
●    Federal City National Bank, President, CEO
●    Union Labor Life Insurance Company, Executive VP, Chief Operating Officer
●    Union Labor Life Insurance Company, Senior VP, Chief Financial Officer
●    CIT Financial Corporation, Treasurer, Chief Investment Officer of insurance        subsidiary
●    John Hancock Life Insurance Company, VP

Education:
●    College of the Holy Cross, AB
●    Boston College, MBA
●    Columbia University, Executive Management Program
●    CLU

Other Business Background:
●    ProActive is the 2002 winner of the Arlington County Small Business of the Year competition
●    Jim was awarded the Arlington Chamber’s 2006 President’s Award for Leadership
●    Member Leadership Arlington
●    President, Arlington Business Council
●    Facilitates Arlington Chamber’s monthly Small Business Roundtable
●    Member Finance Committee, St. Thomas More Cathedral
●    Arlington Red Cross, Co-Chair Speakers Bureau

The Small Business Roundtable, an open forum discussion, is a program of the Arlington Chamber of Commerce. The Roundtable, facilitated by Jim Whelan of ProActive Corporation of America, is designed to discuss topics that are key to the success of small businesses. It is held the last Wednesday of the month in the Chamber’s Board Room. On September 26th, the Arlington Business Roundtable turned to the topic of Pricing – What is your method of setting a price on your product or service?

For most small businesses, having the lowest price is not a good policy. It robs you of needed profit margin; customers may not care as much about price as you think; and large competitors can under-price you anyway. How important is price as a competitive factor? Do your customers really make their purchase decisions mostly on low price? And if they do, do you want them? Highlights of the discussion included:

• Joe Mann of More Web Leads started the discussion citing his experience over the last five years as he started and grew his business of web search engine optimization. As he developed more experience in the marketplace, his rates changed. If his prices for the coming year were to increase, he advised his clients in December
• The advisability of posting prices on the web received a thorough review and the consensus is to refrain. At most, use case histories to provide an overview of the cost of the service
• Many formulas were cited as a basis to setting fees. In practice, business owners used them as an initial guide that they adjusted based on the real world
• It’s important to have a clear picture of the client you want and the cost, then devote your efforts to reach those who fit the picture
• Your fees must reflect the value you bring to your client
• Clients request for services lead us into new areas and grow the business by providing the service that is wanted/needed

Jim Whelan of ProActive Corporation facilitates Arlington Chamber’s Small Business Roundtable. He invited Ley Mills from the Internal Revenue Service to discuss common questions raised by small businesses.

The question on most minds is: Independent Contractor or Employee?

So much of the answer to this question lies in the detail of the facts, the “off the top of the head answer” is that “it depends”. There are guidelines that will aim your decision in the right direction.

* If an individual receives extensive instructions on how the work is to be done, this suggests that the individual is an employee

* If the individual receives less extensive instructions about what should be done, but not how it should be done, the individual may be an independent contractor

* If the business provides an individual with training about required procedures and methods, this indicates that the business wants the work done in a certain way and suggests that the individual may be an employee

* If the individual has a significant investment in the work, they may be an independent contractor

* If an individual is not reimbursed for some or all business expenses then that individual may be an independent contractor

* If an individual can realize a profit or incur a loss this suggests that the individual is a business owner and maybe an independent contractor

* If an individual receives benefits such as insurance, pension, or paid leave that individual may be an employee

A contract may only signify what is agreed upon by the two parties, but not necessarily determine whether an individual is an independent contractor or an employee

The Bottom Line from this Roundtable? Consult the IRS publication 15-A An Employer’s Supplemental Tax Guide, which will provide additional information on independent contractor status.

On July 26, the Arlington Business Roundtable turned to the topic of  Changing Direction - There are times in the life of many (most) businesses when a mid-course correction is necessary. Be it new services or products or completely moving on to a new venture, the savvy entrepreneur constantly analyzes the marketplace to detect trends and decides on a course of action.

To lead off the discussion, Rich Doud and Jim Whelan outlined significant changes they had made. Rich by analyzing the trends and taking action and Jim by experiencing the collapse of the market and explosion of competitors started ProActive.

Highlights of the discussion included:

•    Look at the world around you to eliminate surprises
•    Cannot control outside influences so figure out your next step
•    Trust your gut instinct
•    When making a change capitalize on your training., background, and experience
•    If you’re getting bored in your present job you should be surveying the field for opportunities
•    Always have an exit strategy

The Bottom line from this roundtable? Be alert to the outside world. Look for trends – the underlying business, increase in competition, change in customer base, business and economic conditions.  Revisit your SWOT ( Strengths, Weaknesses, Opportunities, Threats) analysis to update your plan(s) if you anticipate change.

CUSTOMERS: YOU CAN’T LIVE WITHOUT ‘EM

On July 27, discussion at the Arlington Business Roundtable turned to the topic of customers and how businesses “can’t live without ‘em,” but that sometimes they may want to! The Roundtable is an open discussion forum held on the fourth Wednesday of each month at the Chamber and facilitated by Jim Whelan, of ProActive Corporation of America.

The twelve roundtable participants revealed their best practices for maintaining, building or phasing out relationships with customers.

•    Telephone is the preferred method of staying in touch with customers, with reasons ranging from finding out how customers are doing, to announcing new offerings, or ensuring that customers were satisfied with a recent purchase or service;
•    Some businesses said they used newsletters to stay in touch with customers on a quarterly or semi-annual basis; and
•    One business reminded the group that acknowledging the anniversary of a contract with a customer is a good way to say “we’re thinking of you, enjoy working with you, and appreciate your trust and your business.”

The group was unanimous in deciding the level and frequency of customer communication based on the value of the contract or the promise of future business. Active clients and those with growth potential remain the apple of everyone’s eye. But those 80 percent of customers who produce only 20 percent of revenue receive less frequent and more generic attention, such as the quarterly newsletter or a semi-annual telephone visit.

And then, “some clients just have to be fired,” was an admission made by several participants. Their methods included:

•    Reducing the level of service commensurate with the customer’s value;
•    Referring problem customers to competitors;
•    Easing problem customers out of the picture by not renewing contracts; or
•    Avoiding confusion from the start by clearly defining service expectations in writing.

Bottom line from this Roundtable – the customer is still king! The current customer is still the best source of additional business. And staying in touch with current customers on a consistent basis is still the best source of referrals.

On April 30th, 18 Arlington Chamber members and guest at the  Small Business Roundtable explored avenues Marketing Mavens take to make meaningful inroads to enhance their business. This was a creative thinking session of marketing ideas in which they shared marketing moves that worked for them.

Joey Tackett of Clear Sky Creative fully explored the benefits and pitfalls of Linkedin for businesses. Joey also discussed the need to cement the marketing strategy in using blogs and Craig’s List. These can end up consuming time with low (or no) payoff if not part of an overall marketing plan.

Dan Frix of Valcourt Building Services shared an imaginative technique that includes the tools of their trade Valcourt uses to attract prospects and current customers alike at trade shows.

Emily Summers of Markettorque led off the discussion of books that have contributed to marketing ideas by introducing “The 4 Hour Workweek”. Other books mentioned were “Selling the Invisible”, “Marketing Warfare”, “Positioning: The Battle for Your Mind”, and “Self Promotion for the Creative Person”.

Elizabeth Scott of Elizabeth Scott Consulting pointed out that some industries could teach a class as part of an adult continuing education program to promote name recognition as well as potentially obtain clients.

The Bottom Line? There any number of ways business owners can utilize to get creative juices flowing. Take every opportunity to enhance your business through innovative marketing techniques.

The Small Business Roundtable, an open forum discussion, is a program of the Arlington Chamber of Commerce. The Roundtable, facilitated by Jim Whelan of ProActive Corporation of America, is designed to discuss topics that are key to the success of small businesses. It is held the last Wednesday of the month in the Chamber’s Board Room.

How Are You Doing?

On March 26th, the Arlington Business Roundtable turned to the topic: How Are You Doing? Sixteen attendees discussed the many challenges facing a small business keeping on top of producing a profit as the business grows. The objective of a business is to make a profit. How do you know you’re winning unless you keep score? Develop a financial scorecard and use it?

Attendees agreed they shouldn’t wait until tax time to be surprised. A monthly profit checkup is necessary to catch potential problems before they grow to be the 800 pound gorilla. Use a scorecard to provide meaningful information.

Four checklists that should be on your scorecard
1.    Net Profit  -  Sales less operating expenses shows if the company is profitable (although it may not have enough cash on hand)
2.    Operating Cash Flow  -  Cash from operations less cash out shows how much cash is being generated by operations and in the bank to pay bills
3.    Return on Assets – Net Profit divided by Average Assets  shows if the business is doing a good job managing sales and expenses plus managing receivables, inventory and fixed assets
4.    Quick check on Owner Profitability – Compile Sales , Revenue in terms of bank deposits, and Total owner compensation. Develop a trend analysis. Also, divide compensation by deposits monthly to catch any downward drift in compensation.

Lauren Marley of Northshoredesign uses Simple Straw from Quick Books as an easy way to start the process of tracking profits. While Kathleen Manley of Asset Funding Solutions turns over the financial record keeping and reporting to professionals and works with them to stay on top of profits.

The Bottom Line from this roundtable? Use a scorecard that provides meaningful information on the business’ profits. Check the profit trend monthly and take any needed corrective action.

The Un-Mystery of Marketing – Buyers don’t buy from sellers they don’t know!

The December Arlington Business Roundtable started with the premise – People tend to do business with companies they know. But how do they hear about you? Getting the word out is key to letting people know you’re in business. But at what price? How about free? The Chamber sponsored Roundtable is an open discussion forum held on the fourth Wednesday of each month at the Chamber, facilitated by Jim Whelan of ProActive Corporation of America.

Roundtable participants investigated all the possible avenues:

•    Get mentioned in the press – Pick out the press outlet that covers your field. Who is the reporter writing the articles? What’s your attention grabber – new trends, seasonal, break-through in service or product?
•    Write articles for newsletters or magazines – Who are you trying to reach? What do you have to say that will interest them? What are the industry leaders reading? Do their professional association communications outlets accept outside contributions? If they do, must it industry specific? Do you need an editor to spice up your text?
•    Speak every chance you get. Public speaking places you in front of many on an eyeball-to-eyeball footing, one or two in the audience may be potential buyers. Certainly, everyone will have seen and heard you and your company. Service organizations are always looking for speakers with an appropriate message – no selling allowed. White knuckled speaker? Go to Toastmasters and improve your public speaking skills.
•    Use the Chamber. Become active in the Chamber: join a committee, volunteer, attend Business After Business, speak at the monthly Breakfast.
•    Visit a number of networking groups and pick one that fits.

Bottom line from this roundtable? Woody Allen said 80% of success is showing up. Become known to a wide range of audiences and zero in on those that will put you in front of potential buyers. Use every means available. Get whatever help you need to make a good impression. Just show up.

Planning: A Race Against Time and Human Nature

On October 26, discussion at the Arlington Business Roundtable turned to the topic of planning—one of the least favorite chores businesses face each year. The Roundtable is an open discussion forum held on the fourth Wednesday of each month at the Chamber and facilitated by Jim Whelan, of ProActive Corporation of America.

Roundtable participants revealed their level of business planning ranged from completing a full corporate plan, to just being happy to complete a to-do list. There was an occasional “I don’t have anything in writing” confession.

Highlights of the discussion included:
•    A plan that works for many includes at least identifying the business objective for the coming year, and then identifying two or three goals that must be met in order to achieve that objective.
•    Banish the thought that a plan—any plan—has to be perfect, detailed, and cast-in-stone. Many people start to plan but then quit, thinking their plan must be perfect in all respects. A plan is a living document!
•    The ultimate objective rarely changes during the year; however, mid-course adjustments are made when experience proves a tactic isn’t working.
•    To be effective, the plan must be in writing and revisited frequently in order to keep everyone’s efforts focused on the objective.

Bottom line from this roundtable? Planning is the process of answering three questions: 1) Where are you now?; 2) Where do you want to be?; and 3) What are you going to do to get there?. Answering those questions provides the track on which your business plan can move forward.

Roundtable participants without formal plans unanimously decided the time had come to turn their informal efforts into plans with purpose. Time will tell if their good intentions result in a real commitment to work in goals-driven manner that aims for success.