Seeing things from the customers’ perspective may be the most important thing you do. Sometimes we are so busy managing our business that we may overlook the customer. We think of them in terms of buying our products or services but may forget to really consider things from our customers’ point of view. When planning anything that involves customers, it’s important to find out what specific needs and expectations they have.

What should you do to accomplish this customer orientation?
First, you can consider your own expectations as a customer. What are the most important factors in your own decision making? Make sure others outside and inside the company do the same exercise. Also, continually solicit feedback from your customers. Thank your customers for their input, follow up on suggestions and keep track of the information in some sort of database.

Networking remains an important key to business success. Five networking ideas are:

Strategic alliances are a way for businesses to work together toward a common goal. Strategic alliances can extend the company’s reach without expensive internal expansion. Alliances can be between vendors or between a vendor and the customer. When looking for a strategic alliance:

There’s a big difference between managing and leading and a business owner needs the ability to lead through understanding and inspiring people. Managers are crucial; management skills provide systems, rules, and operating procedures for successful growth. Leadership skills provide direction and the ability to communicate it. Most successful business owners need to have both management and leadership skills. Unless a business owner has the wherewithal to hire managers, management will remain an important task for that owner. But leadership is more important because only the chief executive of the company can set the vision and the direction. So, establish a vision and mission statement that supports the company’s values and culture. Then communicate those elements to your clients, vendors, and staff. Keep hold of the big picture and reinforce your company’s values and culture every day.

As businesspeople we often find ourselves multi-tasking and rushing to meet deadlines and we may forget to express our thanks for a job well done. An expression of appreciation increases the likelihood the behavior and attitude of the recipient will be reinforced and repeated. Consistent hard work, a good attitude and positive results should be recognized. Too little of a response might seem ungrateful or perhaps even insulting. The right amount will almost guarantee that the good behavior will continue. Never forget the impact of the word “Good Job” will have on someone who truly is deserving. It is a positive remark to both the sender and the receiver.

If you are struggling with the profitability of your organization, consider looking at such things as the product mix, pricing, overhead, debt and cash flow.

One big key to profitability is offering quality products that fill a need of high demand by your target market customer. When you have a product, you should:

Every aspect of your company can have an impact on your image. Some ways to improve a company’s image include:

Financial planning is a big key to prosperity for your business. You should evaluate your current financial situation, and then look at ways to improve upon what you have. Set specific financial goals such as revenue growth and profitability. Forecast your sales, expenses and new income and the resources necessary to implement the plan. Finally, revise and rework because planning is a continuous process.

Record keeping is important and can provide timeliness and reliability of information. Recording of transactions, receipts, disbursements, sales, purchases, and multi-financial reports on income, cash flow, receivables and payables and balance sheets is required. Most business owners have bank accounts and ledgers that track transactions and information on customers and employees. However, the tough thing for most businesses is managing the number of records. A method that works is a master calendar with critical deadlines that affect the business. Another important piece is the well-organized online filing system. Store only what you need and make the files as accessible as you can, so they are useful when you need them.

There are technologies in banking that can mean significant cost savings for business. First State Bank and Trust’s remote deposit allows clients to electronically deposit checks to their FSBT accounts via online or mobile banking without leaving their place of business. Some features include:

Working capital is a key indicator of financial health. Therefore, managing working capital is essential. You must constantly be alert to changes in your working capital position to ensure it remains strong. Make adjustments, as follows, when needed:

Every business can benefit from an Advisory Board. Board members from different disciplines can complement and enhance the expertise and talents of the business owner and other managers in the company. They can help create and maintain your company’s business plan while providing guidance, direction, and honest feedback through good times and bad. A strong board helps protect and enhance a business’ long-term value by bringing their unique perspective and valuable, unbiased insights. They can also have a positive impact on your business’ bottom line by sharing their network of experts, referral sources and potential customers. Share the challenges of leadership with a dynamic and qualified Board and you will enjoy many tangible benefits.

Though conventional wisdom has its place, an unknown author wrote “If all you ever do is all you’ve ever done, then all you’ll ever get is all you ever got.” In an economy where so many organizations chase after too few dollars, it is also time to challenge conventional wisdom regarding how to operate your organization and to innovate and adapt in an era that presents new types of difficulties and obstacles.

To remain viable, you must be a driving force that moves your organization forward. So, test conventional wisdom and institute conventional best practices that help your organization, but also become an agent of change in areas that separate your organization from the competition and build competitive advantages.

The goal of internal controls is to provide checks and balances that help produce or eliminate errors and fraud in financial reporting. In large companies, financial reporting is divided among several departments and many people. With businesses, it’s very common to find one person in charge of making deposits and completing financial records. This amount of control by one person can increase the risk of a problem occurring.

To be safe, don’t let one person control an entire process, whether it’s accounts payable, purchasing, receiving or check signings. Secondly, owners should frequently review major areas of risk. Some suggestions are:

Operating a business has its share of challenges, but it should also be fun. Infusing fun into the operation should be a key part of the business. It’s been shown that having fun at work increases productivity. Happy people are going to bring a better attitude to their interactions with customers and co-workers and that’s always good for the bottom line.

How can you go about having fun at work?

If a disaster strikes, businesses without the right resources or knowledge are vulnerable. Businesses need to assess disaster risks and develop a comprehensive risk reduction recovery plan.

To be prepared, your first line of defense is to define your risks. Determine what emergencies could affect your business. Next, determine what operations and facilities needs are essential, both internal and external for your company. Then, design a disaster plan with your staff and assign areas of responsibility. Be sure to review the plan annually to make sure it evolves with your needs. Practicing will help you prepare if a disaster strikes.

Cash is the lifeblood of business, and collecting receivables quickly is important to its health. A soft “collection” call five days after invoicing can reduce payment delays. More of a customer service than a collection call, this is the time to ask, “Have you received the product?”; “Were you happy with the service?”; “Have you received the invoice?” Problems (or excuses) surface immediately with these questions versus later, when the invoice may already be past due. If there are legitimate issues, this is your opportunity to address them and get payment back on track. A customer’s use of these issues as excuses is circumvented and you’ve gently put the customer on notice that you expect payment in a timely manner. This is a simple strategy that can improve cash flow and show your customers you care about their experience with your company. The best collection call is one you don’t have to make.

Collecting overdue accounts is important to the health of your business and to a steady cash flow. There are techniques to help with collection efforts.

There is not a simple answer to the size of reserve you may need. The size of reserve needed is often a function of external events such as economic cycles, industry cycles and consumer demand. Your business cycle, inventories, cash flow, insurance coverage, and access to capital and credit also come into play.

Your banker may be able to help you with this question. One of the positive aspects of a relationship with your bank is that your bank has a stake in the success of your business and wants you to succeed. Therefore, your banker is your ally and should know almost as much about your business as you do, enabling them to offer you valuable ideas and insights.

There are many financial institutions to choose from. Selecting the right one for your business can seem daunting. While it is tempting to base your decision solely on the interest rate you receive, interest rate alone could land you in a bank that offers little else. Therefore, it is important to use other criteria based on your needs, objectives, and preferences.

Other possible considerations you could use include looking for a bank that:

After selecting the right bank, choose the right banker from the organization. Look for a banker who:

One of the positive, almost hidden, aspects of credit is that your bank has a stake in the success of your business and wants you to succeed. Therefore, your banker is your ally and should know almost as much as you do about your business to offer you valuable ideas, insights, and solutions to problems, as well as help create possible business development opportunities for you.

Providing your banker with your business’ financial information frequently, as well as having regular, open communication is very important to building trust and credibility. Particularly if your business is encountering problems. No one likes surprises. So don’t wait until your company has encountered a tough issue (e.g. difficulty making payroll, loss of sales, bankruptcy of a key client, etc.) to let your banker know about problems. Especially if you need additional financing. Notifying the bank early builds trust and gives your banker the flexibility to possibly make concessions that might not be available down the road.

To negotiate with your bank from a position of strength and enhance your creditability, it is essential that you identify the problem you are having and propose a reasonable solution. You can also ask your banker for ideas on how to resolve an issue you are grappling with. Many bankers have the in-depth knowledge and experience to provide helpful solutions. Taking this approach will impress your banker and help build the trust necessary for your bank to consider modifying the terms of your banking arrangement to give your business some breathing room when needed.

Crimes are not only conducted by professional thieves, but by dishonest customers and employees as well. And the impact to your bottom line can be very costly.

There are ways to protect your business from crime. But first you must identify and understand your vulnerabilities. Local law enforcement and your Chamber of Commerce can assist with this and can often provide techniques to help mitigate your exposure.

After you have identified where your business may be at risk, consider developing a thorough crime prevention plan. Executing this plan could protect you from substantial loss. Here are some commonsense action steps that can be a part of this plan: