Here’s a checklist that will help grow a profitable business

1.     Understand how finance affects your business - Assuming you are in business to make money, develop an understanding of finances that affect the business.

a.    Cash Is King. Understand the difference between profits and cash. Profit is an accounting concept while cash pays the bills.

b.    Rely on a cash flow spread sheet that identifies the timing of income and outflow. It can be used as an early warning system to highlight problems.

c.    To keep close tabs on positive cash flow, pay close attention to an account receivable report that identifies how long invoices are outstanding . A receivable not paid for 90 days is a loan to your customer.

2.    Use technology in innovative ways - Look at the way you do business and identify changes that could make a major impact on the way you operate.

3.    Control expenses - Search for businesses that are using effective models and emulate their operations.
a.    Seek out advice from your networking business groups.
b.    Keep head count low - Hire only when you absolutely must. Consider interns, part timers or outsourcing.

Extra Credit - Mentally prepare yourself for success. As counter-intuitive as it seems, the possibility of success keeps some business owners awake at night. Create a plan that projects a successful business.

The Small Business Roundtable, a member benefit of the Arlington Chamber of Commerce, is an open forum discussion sponsored by The Business Bank. The roundtable, facilitated by Jim Whelan, ProActive Corporation, discusses topics essential to the success of small businesses. It is held the last Wednesday of the month in the Chamber’s Board Room.

On July 28th 16 Roundtable attendees discussed the pros and cons of a Mastermind group.  The mastermind is outlined in Napoleon Hill’s book Think and Grow Rich. Hill studied the richest men of the early 1900’s and wrote the book detailing his observations. One of the common practices of those wealthy men was that they all took part in a mastermind, helping each other solve problems and move forward in their goals.

Small business owners and entrepreneurs frequently are alone and should investigate this model because it connects them with like-minded people. Otherwise, it’s easy to get isolated.

The following are three elements of a mastermind group. Providing an idea of how they work and whether or not they might be for you.

1 – A Mastermind is about helping each other solve problems and move forward in their goals.

A mastermind group is not a networking group, a support group, or an advisor board.  A mastermind is about helping each other solve problems and move forward in their goals. To sustain progress, all members have to hold a high energy level.

2 – A Mastermind generates ideas and resources.
A Mastermind uses the education, experience, and influence of the others in the group. When a committed group of business owners give their full attention to one person and her goals, all kinds of ideas are generated. Resources and connections are often discovered in the process.

3 – Masterminds are effective because they hold you accountable and require you to expand beyond your old limits.
When you join a Mastermind group, you know it’s not going to be about staying in your comfort zone. In fact, this is one of the biggest reasons people want to take part in a Mastermind! They know that success rarely comes from inside their comfort zones.

The Bottom line from this roundtable?
A mastermind alliance takes effort, commitment, and leadership. As in every endeavor, the results are proportionate to the involvement expended. It is only for those who see the possibilities.

Another tale of deception by someone who knew better than the rest of us how to become rich.

SEC CHARGES DELL AND SENIOR EXECUTIVES WITH DISCLOSURE AND ACCOUNTING FRAUD

Company to Pay $100 Million Penalty, Michael Dell to Pay $4 Million Penalty

Washington, D.C., July 22, 2010 – The Securities and Exchange Commission today charged Dell Inc. with failing to disclose material information to investors and using fraudulent accounting to make it falsely appear that the company was consistently meeting Wall Street earnings targets and reducing its operating expenses.

The SEC alleges that Dell did not disclose to investors large exclusivity payments the company received from Intel Corporation to not use central processing units (CPUs) manufactured by Intel’s main rival.  It was these payments rather than the company’s management and operations that allowed Dell to meet its earnings targets.  After Intel cut these payments, Dell again misled investors by not disclosing the true reason behind the company’s decreased profitability.

The SEC charged Dell Chairman and CEO Michael Dell, former CEO Kevin Rollins, and former CFO James Schneider for their roles in the disclosure violations.  The SEC charged Schneider, former regional Vice President of Finance Nicholas Dunning, and former Assistant Controller Leslie Jackson for their roles in the improper accounting.

Dell Inc. agreed to pay a $100 million penalty to settle the SEC’s charges.  Michael Dell and Rollins each agreed to pay a $4 million penalty, and Schneider agreed to pay $3 million, to settle the SEC’s charges against them.  Dunning and Jackson also agreed to settle the SEC’s charges.

How to Build a Strong Unique Selling Proposition

WHAT IS A UNIQUE SELLING PROPOSITION

Your Unique Selling Proposition’s (USP) purpose is to make your marketing efforts generate more results. It positions you as standing out from your competition because you offer something (or some way) that your competition does not – you’re unique.

Your USP is a selling tool that draws prospects to your offering and persuades them to purchase your product or service. Your USP is a proposition that offers benefits by buying from you.

The classic example is Domino’s Pizza, “Pizza in 30 minutes or it’s free”. Dominos proposition positioned itself as unique since none of its competitors made that claim, and (as we know) made the sale to millions.

HOW TO DEVELOP YOUR USP

Since your USP is a sales proposition, you are making an offer. Put yourself in the customer’s chair. What are the pains in your industry that you guaranty to solve?  It’s not what you do; it’s what benefits your customer receives from your efforts.

Identify three of the benefits (relieving “pain”) you customer receives?  What is the “pain” (irritation, frustration, disappointment) your customer experiences when working with your industry - the endless wait for pizza.

The key is to be unique. Since you are promising to alleviate the “pain” something no one else has, or does, make a guarantee – in 30 minutes or it’s free. It sets you apart from your competition and it makes you more visible in the market.

The Bottom line about USPs?

Your USP drives your business and success because it differentiates you from your competition, it persuades someone to buy, it makes an offer to the prospective buyer.  It can also be used as a branding tool for your marketing efforts. This allows you to build a lasting reputation while you are making the sale.

“When the gods wish to punish us, they answer our prayers.”

Oscar Wilde

Dealing With Success

Most businesses fail because the founders are specialists who start a business without knowledge of how successful businesses run. People who are expert regarding technical details of a product or service are seldom expert at running that sort of business. Many small business owners eventually realize that just as they had to learn their technical skills, they have to learn business growth and management skills.

What are some of the ways that you can handle success and stay in business for the long run?
·       Understanding how finance affects a business - Financial experience tends to be a weak link in many small businesses. Assuming you are in business to make money, develop an understanding of finances that affect the business.  Cash Is King. Understand the difference between profits and cash. Profit is an accounting concept while bills are paid with cash. Rely on a cash flow spread sheet and an account receivable report to keep close tabs on positive cash flow.

·      Make changes in operations to accommodate growth - Look at the way you do business and identify changes that could make a major impact on the way you operate.

·      Use technology in innovative ways - Look for ways to integrate technology to improve your business.

·      Control operations expenses - Search for businesses that are using effective models and emulate their operations. Seek out advice from your networking business groups.

·      Keep head count low - Hire only when you absolutely must.

·      Mentally prepare yourself for success  - As counter-intuitive as it seems, the possibility of success keeps some business owners awake at night. Create a plan that projects a successful business.

The Bottom line of dealing with success?
You can only manage what you can control. Develop an overall system of controlling the various aspects of your business to maintain a successful business.

Scott McCaffrey, Managing Editor, Sun Gazette, discussed the most effective way of communicating with the media to promote business with 20 attendees at the April Arlington Chamber Small Business Roundtable.

Most media want to help spread your positive message. However, keep the following in mind:
Fact #1  The print media has been losing market share
Fact #2  Newspapers have fewer pages
Fact #3  The result is less space available for a business news item

Therefore, in order to include an article that you (the business person) want published some other item must be dropped. Also, there are fewer reporters and staff while the effort required to publish a newspaper remains the same. All this puts more work and pressure on the business that wants an article included.

Some guidelines:
·      The more you help the media the more likely you are to have your news item in the paper.
·      When it comes to submitting news to the media you have a number of “clients”. First, select the outlet that focuses on the industry and thrust you are trying to reach.
·      Define your market. Identify your audience and contact the outlet that caters to your audience
·      Investigate each outlet to determine its preferences. Each outlet does things differently. Read the publications and go on the web site then give them the information on time and in the format they prefer.
·      No information overload! A suggested story should be brief and “tight “– the golden rule - Who What When Where Why in 3 or 4 paragraphs.
·      Consider Letters to the Editor or the Op-Ed sections. Many people read these first.
·      Don’t overlook newsletters such as the Chamber’s The Arlingtonian.
·      Whatever you submit, there is the likely hood of it being edited. Make it as clear and tight as you can so it will retain your message.
·      Use clippings to stay in touch with your clients and prospects.

The Bottom line from this roundtable? Determine your audience and find the outlet best suited to carry your message to them then do your homework to get the best possible coverage.

(All I know about Toyota’s current problems is what I read in the newspapers. Any resemblance to this and reality may be close. The following is based on my imagination.)

SETTING: TOYOTA HEADQUARTERS

Act I (Late 1930s)

(Toyota started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder’s son. Toyota Motor Co. was established as an independent company in 1937)

Toyota Vision

We have a vision that the Toyota automobile will be renowned for precision, quality, and economy.

Toyota Mission

To achieve our vision, our mission is to design and build a high quality auto that is inexpensive to purchase and operate.

Act II (1970s)

(1957 is the first year Toyotas were exported to the United States. Due to the 1973 oil embargo, consumers in the lucrative US market began turning to small cars with better fuel economy. Toyota started building cars in the US by the early 1980s)

Toyota Vision

We have a vision that the Toyota automobile will be renowned for precision, quality, and economy.

Toyota Mission

Our mission is to take advantage of customer demand by building Toyotas worldwide.

Act III (1990s)

(The Toyota Motor Company received its first Japanese Quality Control Award at the start of the 1980s)

Toyota Vision

We have a vision that the Toyota automobile will be renowned for precision, quality, and economy.

Toyota Mission

Toyota is to be the largest automotive manufacturer in the world and overtake General Motors

Bottom Line – It appears the competitive juices flowing in the Toyota veins diverted the company from concentrating on its vision of what the company is about. For any organizations there are two “anchors to windward” that must be on the top of every decision to keep from veering off-course during the heat of competition.

·      Vision is the lifeline of every organization because it provides balance that overcomes the challenges of growth and the marketplace.

·      Values because they are the core of every organization. All policies and strategies that spell out how it will conduct itself emanate from its values.

Of course, there is the age-old question “How Would We Look If It Were In Tomorrows Headlines”

When the client calls and says, “We have a problem,” each business should have a strategy prepared in advance to reduce stress and guide your way to a resolution.

While there is apt to be confusion surrounding a transaction caused by miscommunication or a genuine misunderstanding, a problem can arise. When the client calls and says, “We have a problem,” there are some basic guidelines that you should follow:

·      Apologize for the misunderstanding right up front to calm the client.

·      Have a clear understanding of the actual problem. Frequently, the initial assessment of the issue is not the real problem.

·      Both parties should understand that playing the blame game doesn’t solve anything. Maintain a civil attitude. Confrontation muddies the waters of a reasonable resolution.

·      Don’t get defensive. Remember that no one intended to create the problem.

·      Make sure you’re both in agreement on the facts. Frequently, the facts of the issue will point to the resolution.

·      What steps need to be taken to prevent future problems.

·      Use it as an opportunity to strengthen the relationship.

The success of your service or product depends on the personal interaction with your clients. Using this strategy, you should be able to meet and settle any problem clients bring up.

Here the teakettle sits on the stovetop polished to a gleaming reflection. But it’s lonely. No one pays any attention to it. It sits unused as a relic from the past.

In current day life when hot water is required the microwave (right above the kettle) heats whatever is needed in less time and using less energy. Yet the kettle remains more out of habit than necessity, perhaps reminiscent of earlier more relaxed days when life was slower.

But now there is little need for the kettle. Yet it occupies valuable space and in fact is put aside many times as the need for more usable utensils are pressed into service. It would be more efficient if the kettle were stored in the attic or garage rather than cluttering up the workspace.

As I survey my surroundings I wonder how many teakettles I have:

·      There is that paper calendar that I print out faithfully every Friday to plan the next week’s work and never thought of again while I consult the calendar on my laptop or iPhone.
·      ·Of course there is the desk clock that I check daily to ensure it is maintaining the same time as the computer.
·      ·How about that software long forgotten and unused
·      Then there’s the old PC that’s creaky and only used because it houses historical Quick Books info
·      Side by side with the PC is the printer that only works with the old PC

Some day I’ll put that teakettle in the attic. . .

The Small Business Roundtable, a member benefit of the Arlington Chamber of Commerce is an open forum discussion sponsored by The Business Bank. The Roundtable, facilitated by Jim Whelan, ProActive Corporation, discusses topics essential to the success of small businesses. It is held the last Wednesday of the month in the Chamber’s Board Room.

On January 27th, Tara Miles, Director of BizLaunch of Arlington Economic Development, led the discussion of marketing your business to local, state and federal governments.

Arlington Purchasing Office
The Purchasing Office manages all aspects of buying goods and services for Arlington County Government. The office acts as a “Central Purchasing Office,”. If you are interested in providing goods and services to the government of Arlington County register for free to become a bidder.

Commonwealth of Virginia
If you are interested in doing business with Virginia, and many local Virginia municipalities, you must be registered on the eVA system (Virginia’s Total e-Procurement System).

Central Contractors Registry (CCR)
A primary source for US government agencies to learn about prospective vendors is a government-maintained database (CCR/PRO-Net) of companies wanting to do business with the government. This database is a marketing tool for businesses and a searchable list of prospective vendors for the government.
The database provides agencies with the ability to search for companies based on their abilities, size, location, experience, ownership, etc. The CCR contains a PRO-Net supplement which collects and maintains specific information about and pertaining to small businesses. Register as a vendor on CCR.

FedBizOpps
FedBizOpps.gov is the single government point-of-entry (GPE) for Federal government procurement opportunities over $25,000 and under $100,000. Government buyers are able to publicize their business opportunities by posting information directly to FedBizOpps via the Internet. Through one portal - FedBizOpps (FBO) - commercial vendors seeking Federal markets for their products and services can search, monitor and retrieve opportunities solicited by the entire Federal contracting community.

Procurement Technical Assistance Program (PTAP)
The Procurement Technical Assistance Program is a not-for-profit organization funded by the Defense Logistics Agency and George Mason University. PTAP exists to increase contracting activity between small businesses, prime government contractors and the government.
With an office in Fairfax PTAP offers marketing, technical consulting and educational services to businesses in the Northern Virginia and Washington, D.C. metropolitan area.

The Bottom Line from this roundtable— It is important to understand the fundamentals, the process and to utilize current resources to help you win bids.