Gerald Bose, SCORE counselor and past vice president, shares his expertise in the area of Process Improvement.
Many organizations are seeking ways to reduce waste and become more efficient. The automotive and financial industries in the U.S., in particular, have realized significant process improvements throughout the 1990s. However, they grew complacent in the 21st Century and curtailed their improvement efforts. Today, companies like GM, Chrysler and Citibank face acquisition by competitors or bankruptcy.
Now, a variety of small businesses are successfully improving their processes and becoming more productive, agile and competitive.
A process is simply a series of steps and decisions performed in a way to accomplish a work product. Virtually everything we do in life involves processes. Examples of processes that can be found anywhere are: producing invoices, taking an order, preparing a lunch order or confirming customer appointments.
Process improvement is a series of actions taken to identify, analyze and improve existing processes within an organization to meet goals and objectives. This means setting aside past practices of assigning blame or being reticent to change because “we’ve always done it this way”. Sometimes the biggest change is to stop fighting fires or managing crises and learn to find ways to do your work better.
We need to find the root causes of problems in order to fix what is broken. Occasionally, Murphy’s Law will rear its ugly head and our process improvement efforts may actually make things worse. Don’t despair because Rome wasn’t built in a day. Sometimes, we have to take a step back before we can take two steps forward.
The basic process improvement model follows the proven Plan-Do-Check-Act (PDCA) Cycle. First, identify the root causes of problems with the selected process. Plan how and what to do to improve the process. Often diagramming the steps and decisions involved can help visualize the problem better and pose viable solutions. Next, implement or Do the changes you planned in a pilot or on a smaller scale. Check to see that fixes are working and effective. Act to make the fixes standard and part of the revised work policy or repeat the previous steps to discover alternate solutions.
So, whether your business is in the start-up phase or has been an on-going entity for years, it can benefit from process improvement. Apply the key process improvement steps to a business function you believe needs tweaking to see what you learn. By continually improving your internal business processes your company will not only survive but it will thrive.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Tuesday, June 16, 2009
Tuesday, June 9, 2009
How can I revitalize my business?
Have those good ideas stopping coming? Do your employees appear to be doing little more than going through the motions? Are your competitors making splashes in the media that you can’t answer?
If so, a makeover could be just the thing to re-energize your business. It need not be a major overhaul; some minor tweaks may be enough. What’s important is that you recognize the need for action, and learn all you can to make informed decisions.
In order to identify where changes are most needed, you’ll have to dig for details about various aspects of your business. Remember to focus not just on the individual elements, but also how they all fit together.
For example, has your customer base changed since you first started? Is it broader or narrower? Older or younger? More upscale or less? You may need a new image, revved-up branding or perhaps just a rewrite of your marketing materials to address the needs of this changing customer base.
Take a hard look at whether your products or services are performing to customer expectations. Remember that your goal should be to exceed expectations, not simply meet them. Perhaps competitors are doing a better job, or maybe they’ve created add-on products and services that you haven’t. Your own customers can help with your makeover if you ask them for feedback.
If your marketing message has never changed, perhaps it’s time to reevaluate and devise a new one. Try revisiting your original business plan. You might be able to recapture some of the insight and enthusiasm you originally had from that document. Think back to your most successful promotions, presentations or sales efforts. Rather than reinventing the wheel, you might be able to update and expand an approach that has already worked for your business.
Don’t be afraid to seek out other perspectives. After all, you may be “too close” to the issues to understand the sources and solutions. Meet and brainstorm with your trusted advisors, mentors, friends, partners, employees, and outside consultants. Ask customers to give you a frank assessment of what you’re doing, how you’re doing it, and what you can do to better serve their needs. The more ideas you receive, the more options you’ll have for getting your business back on the fast-track.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
If so, a makeover could be just the thing to re-energize your business. It need not be a major overhaul; some minor tweaks may be enough. What’s important is that you recognize the need for action, and learn all you can to make informed decisions.
In order to identify where changes are most needed, you’ll have to dig for details about various aspects of your business. Remember to focus not just on the individual elements, but also how they all fit together.
For example, has your customer base changed since you first started? Is it broader or narrower? Older or younger? More upscale or less? You may need a new image, revved-up branding or perhaps just a rewrite of your marketing materials to address the needs of this changing customer base.
Take a hard look at whether your products or services are performing to customer expectations. Remember that your goal should be to exceed expectations, not simply meet them. Perhaps competitors are doing a better job, or maybe they’ve created add-on products and services that you haven’t. Your own customers can help with your makeover if you ask them for feedback.
If your marketing message has never changed, perhaps it’s time to reevaluate and devise a new one. Try revisiting your original business plan. You might be able to recapture some of the insight and enthusiasm you originally had from that document. Think back to your most successful promotions, presentations or sales efforts. Rather than reinventing the wheel, you might be able to update and expand an approach that has already worked for your business.
Don’t be afraid to seek out other perspectives. After all, you may be “too close” to the issues to understand the sources and solutions. Meet and brainstorm with your trusted advisors, mentors, friends, partners, employees, and outside consultants. Ask customers to give you a frank assessment of what you’re doing, how you’re doing it, and what you can do to better serve their needs. The more ideas you receive, the more options you’ll have for getting your business back on the fast-track.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Tuesday, June 2, 2009
Where can I find training for small business startups?
On Thursday, May 14, I had the privilege of attending the 1st Annual Awards & Entrepreneur Showcase Event of The Intersect Fund, an organization founded by Rutger’s seniors Rohan Mathews and Joe Shure. The Organization provides an opportunity for local communities new and existing small businesses to better educate themselves before entering the business world.
In the current economic downturn, many Americans who thought their jobs were secure now find themselves looking for work. The comfort of depending on one’s employer to provide stability and long-term financial success may be a thing of the past. Thousands are finding opportunity in the midst of crisis by striking out on their own to start small businesses in their communities.
The Intersect Fund, a non-profit organization based in New Brunswick, can help. The group offers seed capital, consulting services, and comprehensive training, all at affordable prices.
Entrepreneurs who wish to participate are invited to take a course that meets once a week for six weeks and covers the fundamentals of business that one should know before embarking on a new business venture. Topics include budgeting, managing cash flow, marketing, registering one’s business, and a host of other useful skills. When entrepreneurs complete the course, they have the tools necessary to create a viable business plan, a must for every new and existing business to succeed. They also become eligible to apply for a loan that helps them buy working capital or cover the cost of expansion. Courses are available in Spanish.
In addition to receiving quality business services at a reasonable price, The Intersect Fund entrepreneurs’ have available to them a myriad of networking opportunities and continued support from an attentive, competent staff. The Fund also provides low-cost logo creation and graphic design services, and can also help set up a web site.
Starting or expanding a business can seem like a daunting task. And, let’s face it: it is. With the right support system and training, the steps to business success become far easier to handle.
To learn more about The Intersect Fund, and to find out how to take advantage of the services the Group offers, send an e-mail to info@intersectfund.org.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
In the current economic downturn, many Americans who thought their jobs were secure now find themselves looking for work. The comfort of depending on one’s employer to provide stability and long-term financial success may be a thing of the past. Thousands are finding opportunity in the midst of crisis by striking out on their own to start small businesses in their communities.
The Intersect Fund, a non-profit organization based in New Brunswick, can help. The group offers seed capital, consulting services, and comprehensive training, all at affordable prices.
Entrepreneurs who wish to participate are invited to take a course that meets once a week for six weeks and covers the fundamentals of business that one should know before embarking on a new business venture. Topics include budgeting, managing cash flow, marketing, registering one’s business, and a host of other useful skills. When entrepreneurs complete the course, they have the tools necessary to create a viable business plan, a must for every new and existing business to succeed. They also become eligible to apply for a loan that helps them buy working capital or cover the cost of expansion. Courses are available in Spanish.
In addition to receiving quality business services at a reasonable price, The Intersect Fund entrepreneurs’ have available to them a myriad of networking opportunities and continued support from an attentive, competent staff. The Fund also provides low-cost logo creation and graphic design services, and can also help set up a web site.
Starting or expanding a business can seem like a daunting task. And, let’s face it: it is. With the right support system and training, the steps to business success become far easier to handle.
To learn more about The Intersect Fund, and to find out how to take advantage of the services the Group offers, send an e-mail to info@intersectfund.org.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Wednesday, May 27, 2009
Would QuickBooks help me manage my business?
SCORE counselor, Oria Gonzales, has practiced accounting for more than 40 years as Controller and Senior Accountant for numerous businesses, and in private practice as co-owner of an accounting and tax service. As a Certified QuickBooks ProAdvisor, she shares with you her thoughts on QuickBooks.
QuickBooks is accounting software that helps small business owners record what is bought, sold, owed, owned, what money comes in, what goes out, and what is left, all in one place. It's so easy to use, almost 70% of users report saving 3 hours or more a week. This allows you to spend more time growing your business and generating revenue not recording it.
Whether you’re just starting out or your business is growing, there is a QuickBooks that fits your needs:
· Simple Start – instantly create invoices, track payments and manage expenses, start using it in minutes. Free download.
· QuickBooks Online – access your finances from anywhere, anytime, keep your data backed-up and secure - automatically.
· QuickBooks Pro – track inventory, set reorder points, create purchase orders, import data from Excel, Quicken, Microsoft Office Accounting and prior QuickBooks versions, track international sales and expenses in multiple currencies, download bank and credit card transactions.
· QuickBooks for Mac – it’s built for Mac users by Mac users, with the same basic features found in QuickBooks Pro.
· QuickBooks Premier – chart of accounts and reports tailored to your specific industry (Contractor, Nonprofit, Manufacturing & Wholesale, Professional Services, and Retail), easily generate sales forecasts and business plans, create sales orders and track back orders.
· QuickBooks Enterprise – for mid-market, track inventory in multiple warehouses, do serial/lot tracking and bar coding. Up to 30 simultaneous users.
Common features in all QuickBooks editions:
· Easily print checks, pay bills & track expenses
· Track sales, sales taxes & customer payments
· Create & email invoices
· Create & email estimates
· One-click business reports
Intuit, the maker of QuickBooks, invites you to visit its website at www.smallbusiness.inuit.com for free products and marketing tools, to help your small business survive and thrive.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
QuickBooks is accounting software that helps small business owners record what is bought, sold, owed, owned, what money comes in, what goes out, and what is left, all in one place. It's so easy to use, almost 70% of users report saving 3 hours or more a week. This allows you to spend more time growing your business and generating revenue not recording it.
Whether you’re just starting out or your business is growing, there is a QuickBooks that fits your needs:
· Simple Start – instantly create invoices, track payments and manage expenses, start using it in minutes. Free download.
· QuickBooks Online – access your finances from anywhere, anytime, keep your data backed-up and secure - automatically.
· QuickBooks Pro – track inventory, set reorder points, create purchase orders, import data from Excel, Quicken, Microsoft Office Accounting and prior QuickBooks versions, track international sales and expenses in multiple currencies, download bank and credit card transactions.
· QuickBooks for Mac – it’s built for Mac users by Mac users, with the same basic features found in QuickBooks Pro.
· QuickBooks Premier – chart of accounts and reports tailored to your specific industry (Contractor, Nonprofit, Manufacturing & Wholesale, Professional Services, and Retail), easily generate sales forecasts and business plans, create sales orders and track back orders.
· QuickBooks Enterprise – for mid-market, track inventory in multiple warehouses, do serial/lot tracking and bar coding. Up to 30 simultaneous users.
Common features in all QuickBooks editions:
· Easily print checks, pay bills & track expenses
· Track sales, sales taxes & customer payments
· Create & email invoices
· Create & email estimates
· One-click business reports
Intuit, the maker of QuickBooks, invites you to visit its website at www.smallbusiness.inuit.com for free products and marketing tools, to help your small business survive and thrive.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Tuesday, May 19, 2009
What business information is most crucial for my sales staff?
High overhead costs are nothing new to large department stores and retail chains. But the results of a sluggish economy typically are new cost-cutting measures, including deep cuts in customer service personnel. The result is largely a self-service shopping environment that customers may tolerate or even prefer for certain types of purchases, but a nightmare for the customer who has questions or needs help locating an item.
Small retailers must keep tabs on overhead costs too. But they are in a better position to provide the level of service that today’s demanding consumers expect. Knowledge of your customers’ interests and preferences will enable you to provide a better shopping experience that will be repaid with sales, repeat business and that all-important positive word-of-mouth advertising.
Your sales force should be knowledgeable about the products, trained in the art of customer relations and motivated to do their best through appropriate compensation ─ particularly if personalized service and specialized products are part of your marketing and sales strategy. A wise investment in hiring, training and incentives will likely result in a top-notch sales staff that will go out of their way to keep customers happy and your business growing.
These goals are easy to achieve and do not require a formal, structured training program. Routine sales meetings and informal training sessions can enhance employee performance of day-to-day activities. Encourage discussions to keep up with product innovations, adapting ideas of other retailers (including those outside your market and service area), and changes that can help anticipate customer needs. Role-playing is also a good way to help your staff handle problems on the floor, including those hard-to-please customers and the question of where to draw the line between being helpful and being pushy.
Remember, all customers want to feel valued even if they say they are “just looking.” You should be ready to offer the best solution to meet their needs, even if that means a referral to a competitor. By being attentive, knowledgeable and sincerely interested in your customers, you and your staff will go a long way in building their loyalty and a successful business.
Small retailers must keep tabs on overhead costs too. But they are in a better position to provide the level of service that today’s demanding consumers expect. Knowledge of your customers’ interests and preferences will enable you to provide a better shopping experience that will be repaid with sales, repeat business and that all-important positive word-of-mouth advertising.
Your sales force should be knowledgeable about the products, trained in the art of customer relations and motivated to do their best through appropriate compensation ─ particularly if personalized service and specialized products are part of your marketing and sales strategy. A wise investment in hiring, training and incentives will likely result in a top-notch sales staff that will go out of their way to keep customers happy and your business growing.
These goals are easy to achieve and do not require a formal, structured training program. Routine sales meetings and informal training sessions can enhance employee performance of day-to-day activities. Encourage discussions to keep up with product innovations, adapting ideas of other retailers (including those outside your market and service area), and changes that can help anticipate customer needs. Role-playing is also a good way to help your staff handle problems on the floor, including those hard-to-please customers and the question of where to draw the line between being helpful and being pushy.
Remember, all customers want to feel valued even if they say they are “just looking.” You should be ready to offer the best solution to meet their needs, even if that means a referral to a competitor. By being attentive, knowledgeable and sincerely interested in your customers, you and your staff will go a long way in building their loyalty and a successful business.
Tuesday, May 12, 2009
What insurance do I need for my business?
Like home insurance, business insurance protects the contents of your business against fire, theft and other loses. It is prudent for any business to purchase a number of basic types of insurance. Some types of coverage are required by law, other simply make good business sense. The types of insurance listed below are among the most commonly used and are merely a starting point for evaluating the needs of your business.
Liability Insurance – Businesses may incur various forms of liability in conducting their normal activities. One of the most common types is product liability, which may be incurred when a customer suffers harm from using the business product. There are many other types of liability, which are frequently related to specific industries. Liability law is constantly changing. An analysis of your liability insurance needs by a competent professional is vital in determining an adequate and appropriate level of protection for your business.
Property – There are many different types of property insurance and levels of coverage available. It is important to determine the property you need to insure for the continuation of your business and the level of insurance you need to replace or rebuild. You must also understand the terms of the insurance, including any limitations or waivers of coverage.
Business Interruption – While property insurance may pay enough to replace damaged or destroyed equipment or buildings, how will pay costs such as taxes, utilities, and other continuing expenses during the period between when the damage occurs and when the property is replaced? Business Interruption (or “business income”) insurance can provide sufficient funds to pay your fixed expenses during a period of time when your business is not operational.
“Key Person” – If you (and/or any other individual) are so critical to the operation of your business that it cannot continue in the event of your illness or death, you should consider “key person” insurance. This type of policy is frequently required by banks or government loan programs. It also can be used to provide continuity in operations during a period of ownership transition caused by the death or incapacitation of an owner or other “key” employee.
Automobile – It is obvious that a vehicle owned by your business should be insured for both liability and replacement purposes. What is less obvious is that you may need special insurance (called “non-owned automobile coverage”) if you use your personal vehicle on company business. This policy covers the business’ liability for any damage which may result from such usage.
Officer and Director – Under most state laws, officers and directors of a corporation may become personally liable for their actions on behalf of the company. This type of policy covers this liability.
Home Office – If you are establishing an office in your home, it is a good idea to contact your homeowners’ insurance company to update your policy to include coverage for office equipment. This coverage is not automatically included in a standard homeowner’s policy.
Contact your insurance agent or broker to make sure you have the proper coverage for your business.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Liability Insurance – Businesses may incur various forms of liability in conducting their normal activities. One of the most common types is product liability, which may be incurred when a customer suffers harm from using the business product. There are many other types of liability, which are frequently related to specific industries. Liability law is constantly changing. An analysis of your liability insurance needs by a competent professional is vital in determining an adequate and appropriate level of protection for your business.
Property – There are many different types of property insurance and levels of coverage available. It is important to determine the property you need to insure for the continuation of your business and the level of insurance you need to replace or rebuild. You must also understand the terms of the insurance, including any limitations or waivers of coverage.
Business Interruption – While property insurance may pay enough to replace damaged or destroyed equipment or buildings, how will pay costs such as taxes, utilities, and other continuing expenses during the period between when the damage occurs and when the property is replaced? Business Interruption (or “business income”) insurance can provide sufficient funds to pay your fixed expenses during a period of time when your business is not operational.
“Key Person” – If you (and/or any other individual) are so critical to the operation of your business that it cannot continue in the event of your illness or death, you should consider “key person” insurance. This type of policy is frequently required by banks or government loan programs. It also can be used to provide continuity in operations during a period of ownership transition caused by the death or incapacitation of an owner or other “key” employee.
Automobile – It is obvious that a vehicle owned by your business should be insured for both liability and replacement purposes. What is less obvious is that you may need special insurance (called “non-owned automobile coverage”) if you use your personal vehicle on company business. This policy covers the business’ liability for any damage which may result from such usage.
Officer and Director – Under most state laws, officers and directors of a corporation may become personally liable for their actions on behalf of the company. This type of policy covers this liability.
Home Office – If you are establishing an office in your home, it is a good idea to contact your homeowners’ insurance company to update your policy to include coverage for office equipment. This coverage is not automatically included in a standard homeowner’s policy.
Contact your insurance agent or broker to make sure you have the proper coverage for your business.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Tuesday, May 5, 2009
How do I make my website work for me?
Our chapter’s resident expert on advertising and marketing, Alan Yarnoff, shares his thoughts on today’s fastest growing business segment.
The first thing you must do is to look at your site with critical eyes by addressing the key elements that lead to a successful and profitable presentation.
Have you set business goals, do you have a realistic target market and do you have quantifiable objectives and budgets?
Did you take the lead in the direction your site will take, or did the developer make the vital decisions? Remember, you know your business and what it takes to be successful; they know how to create the look.
Is your site search engine friendly? There is nothing worse than getting a potential client come to the site and then leave empty handed.
Have you been up-dating your site? It’s extremely important to keep the site fresh and newsworthy. Web consumers are always looking for new information and are prone to move off the site quickly if they feel are getting the same story over and over.
Does the site have a call to action? The site is your dialogue with your customer so you need to communicate clearly what you want them to do, such as, “buy now” - “save” - “free” or “don’t wait, act now. “
Does your site include testimonials from satisfied customers? This adds a point of trust to what you are selling and a real human element to the presentation. And if you don’t have a “tell a friend” link, don’t hesitate to add one. Like testimonials, word of mouth is an important marketing tool and the “tell a friend” link is a good way to accomplish this goal.
And lastly, you must know what the site is delivering. It’s absolutely imperative that you keep a close eye on the sites performance and to act accordingly if the goals you set are not met.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
The first thing you must do is to look at your site with critical eyes by addressing the key elements that lead to a successful and profitable presentation.
Have you set business goals, do you have a realistic target market and do you have quantifiable objectives and budgets?
Did you take the lead in the direction your site will take, or did the developer make the vital decisions? Remember, you know your business and what it takes to be successful; they know how to create the look.
Is your site search engine friendly? There is nothing worse than getting a potential client come to the site and then leave empty handed.
Have you been up-dating your site? It’s extremely important to keep the site fresh and newsworthy. Web consumers are always looking for new information and are prone to move off the site quickly if they feel are getting the same story over and over.
Does the site have a call to action? The site is your dialogue with your customer so you need to communicate clearly what you want them to do, such as, “buy now” - “save” - “free” or “don’t wait, act now. “
Does your site include testimonials from satisfied customers? This adds a point of trust to what you are selling and a real human element to the presentation. And if you don’t have a “tell a friend” link, don’t hesitate to add one. Like testimonials, word of mouth is an important marketing tool and the “tell a friend” link is a good way to accomplish this goal.
And lastly, you must know what the site is delivering. It’s absolutely imperative that you keep a close eye on the sites performance and to act accordingly if the goals you set are not met.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
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