Check out this article "Tips for Creating an Advisory Board" from the FOX Small Business Center. http://tiny.cc/l0mp5
I agree entirely with the author on Boards of Advisors with one exception; I do not agree that members of the board should be expected to work for free. I think that there should be a board fee paid for each meeting and any extra work that they do. It may not be much, perhaps $500.00 per meeting. Without a fee being paid, you frequently just get what you pay for.
Jeffrey Ross, Glenoe Associates
Friday, January 21, 2011
Tuesday, January 11, 2011
Top 10 Resolutions for a Family/Privately Owned Business
Making New Year's resolutions are always a good idea. However, most of the time breaking them is just as easy as making them. I have read where up to 90% of all resolutions fail. However, there is no reason for this to happen. What it requires is discipline, commitment and resolve.
I will attempt to list the resolutions in categories with a short commentary as to the importance of each:
1.) Finance:
Do you create annual budgets? If not, you are missing a great opportunity to look at your business. The list of advantages is just too long. If you don't do it your competitor(s) probably do!
2.) Review your financial results:
You can see lots of trends and give yourself the opportunity to make adjustments and changes.
3.) Inventory:
When was the last time you really checked your inventory for obsolescence? There is lots of money on those shelves that I am sure could be put to better use than just sitting there in the form of unsaleable product.
4.) Your Banker:
In my opinion it is a very good idea to be proactive with your banker. Invite him/her for lunch and give an update as to what is happening in your business/industry. This goes a long way in a relationship especially if you run into a rough patch.
5.) Strategic Planning:
Do you do Strategic Planning now? If so, great! If you don't you should give it serious consideration. It really helps in looking at your business into the future. It requires looking at your competitors and what they are doing. What your product lines/services are offering your customers, or not. When was the last time you asked a customer what he/she wants, and how are we doing in providing it? It gives you a road map into the future. It requires including your managers so that they take ownership to it. Strategic Planning is essential to make you a better competitor on today's marketplace.
6.) Management by Objective:
This is a great tool to get all of your employees on the same page. Each individual, each unit and the company as a whole will all be working in the same direction to reach the stated goals. If the goals are reached everyone shares in the success. If the goals are not attained everyone shares in the failure. Great way to create an atmosphere of TEAMWORK!
7.) Social Media:
This is the hottest marketing tool in the new decade. If you don't have a website get one now! If you haven't updated your website lately do it! Are you on Facebook? You Tube? Twitter? LinkedIn? If not, you had better learn about it before your competitors do. It will put you at a distinctive disadvantage of you don't.
8.) Board of Advisers:
For many family or privately held businesses the thought of having outsiders look at your confidential information is just not an option. Wrong! It could be the best thing you have ever done. I didn't do it and I still regret it 20 years later. Outsiders look at your business differently. They would give a fresh perspective and make you look at your business differently as well.
9.) Management Meetings:
Commit to monthly management meetings. Schedule the same time every month so everyone knows where they will be at a certain date and time. Have an agenda and give everyone a little homework. Works great.
10.) Communicate:
Maintain two way communications with your employees and your employees to you. This will create an atmosphere of working together and giving your employees an opportunity to let you know how they feel, make constructive suggestions, etc.
And here is a BONUS resolution:
11.) Visit Your Customers
The best way to learn about what customers want is to ask them. When I would do store visits, I always introduced myself to customers and asked what they liked and didn't liked; what merchandise they would like to see in the store; and ask about any service improvements we need to make. Whenever a customer took the time to call the office to complain, my policy was that all those calls were put through directly to me. The customer always appreciated this - and I made sure that the problems or issues were addressed immediately. You need an unfiltered link with the customer - so you have a direct view of a customer's needs, wants and desires. This can be applied to any type of business.
That's it! Simple isn't it? I am sure you may be doing many of these things already. Try doing them all. It can only make your company better and more competitive.
Have a Happy, Healthy and Prosperous New Year.
I will attempt to list the resolutions in categories with a short commentary as to the importance of each:
1.) Finance:
Do you create annual budgets? If not, you are missing a great opportunity to look at your business. The list of advantages is just too long. If you don't do it your competitor(s) probably do!
2.) Review your financial results:
You can see lots of trends and give yourself the opportunity to make adjustments and changes.
3.) Inventory:
When was the last time you really checked your inventory for obsolescence? There is lots of money on those shelves that I am sure could be put to better use than just sitting there in the form of unsaleable product.
4.) Your Banker:
In my opinion it is a very good idea to be proactive with your banker. Invite him/her for lunch and give an update as to what is happening in your business/industry. This goes a long way in a relationship especially if you run into a rough patch.
5.) Strategic Planning:
Do you do Strategic Planning now? If so, great! If you don't you should give it serious consideration. It really helps in looking at your business into the future. It requires looking at your competitors and what they are doing. What your product lines/services are offering your customers, or not. When was the last time you asked a customer what he/she wants, and how are we doing in providing it? It gives you a road map into the future. It requires including your managers so that they take ownership to it. Strategic Planning is essential to make you a better competitor on today's marketplace.
6.) Management by Objective:
This is a great tool to get all of your employees on the same page. Each individual, each unit and the company as a whole will all be working in the same direction to reach the stated goals. If the goals are reached everyone shares in the success. If the goals are not attained everyone shares in the failure. Great way to create an atmosphere of TEAMWORK!
7.) Social Media:
This is the hottest marketing tool in the new decade. If you don't have a website get one now! If you haven't updated your website lately do it! Are you on Facebook? You Tube? Twitter? LinkedIn? If not, you had better learn about it before your competitors do. It will put you at a distinctive disadvantage of you don't.
8.) Board of Advisers:
For many family or privately held businesses the thought of having outsiders look at your confidential information is just not an option. Wrong! It could be the best thing you have ever done. I didn't do it and I still regret it 20 years later. Outsiders look at your business differently. They would give a fresh perspective and make you look at your business differently as well.
9.) Management Meetings:
Commit to monthly management meetings. Schedule the same time every month so everyone knows where they will be at a certain date and time. Have an agenda and give everyone a little homework. Works great.
10.) Communicate:
Maintain two way communications with your employees and your employees to you. This will create an atmosphere of working together and giving your employees an opportunity to let you know how they feel, make constructive suggestions, etc.
And here is a BONUS resolution:
11.) Visit Your Customers
The best way to learn about what customers want is to ask them. When I would do store visits, I always introduced myself to customers and asked what they liked and didn't liked; what merchandise they would like to see in the store; and ask about any service improvements we need to make. Whenever a customer took the time to call the office to complain, my policy was that all those calls were put through directly to me. The customer always appreciated this - and I made sure that the problems or issues were addressed immediately. You need an unfiltered link with the customer - so you have a direct view of a customer's needs, wants and desires. This can be applied to any type of business.
That's it! Simple isn't it? I am sure you may be doing many of these things already. Try doing them all. It can only make your company better and more competitive.
Have a Happy, Healthy and Prosperous New Year.
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