Portland is known for their street friendliness. Whether on a bike or on foot, the pedestrian can be confident that motorists are watching out for them.  While traveling recently, I was almost surprised that this isn’t always the case in other places throughout the country.  In other places the pedestrian must have confidence to take charge of the moment and just use the crosswalk, trusting the vehicles will stop.  If they don’t take their confidence seriously, vehicles just won’t stop.  They don’t wait for you, you have to make them wait.

This lesson reminds me that the same often applies to businesses and business owners. Whether buying, selling, or networking, businesspeople must take the reigns and take the steps to further their business efforts.  Be aggressive.  Be confident.  Create a goal, go after it and be unyielding to any obstacles. Don’t let others or circumstances determine your destiny, but rather, take solid action towards your future and the future of your business.

Jamie Teasdale – www.jjtsolutions.com

Being a business owner is rewarding, but not always easy.  Demands on time are often the first reason entrepreneurs wonder “what have I gotten myself into”.  Late nights, early mornings, work production, follow up, administrative tasks, finances, networking and marketing are only a few of the responsibilities we face and they all add up.  When you feel your grip beginning to slip and important areas aren’t getting the attention they need, that is the best time to evaluate where you are spending your time and to come up with a new time management plan.

1. Decide what activities are required to make your business run properly and smoothly.

In order to stay in business, you will need to schedule accounting tasks such as billing, receiving, balancing, budgeting, etc.  In order to stay organized and keep careful business records, there are administrative tasks like paperwork, ordering, filing, follow up, etc.  Marketing projects, networking opportunities, customer service and follow up are the backbone of any growth plan.  And then there is the actual work.  Make a list of the tasks you need to accomplish  and separate the tasks into two columns, one for monthly tasks, one for weekly.

2. Determine what tasks yield the best return on your time investment.

Do you have more success emailing your clients, or calling them?  This may be best determined by generation.  Younger generations are easy to find on social media sites or via text or email.  Older generations may not have computer knowledge or email abilities and they may be expecting a phone call.  We all know that producing quotes or estimates and invoicing are vital tasks.  Perhaps the paperwork and filing can be set aside and handled once a week on your admin day.  If you’re a small business, you may even opt to enter your receipts and balance your bank account bi-weekly or only once a month.

3. Decide which days of the week are best used on which tasks.

It is typical for phone business to have the best response when handled on Monday’s when businesses return from the weekend and are in-office, while Friday’s tend to be the opposite.  Maybe Friday is a good day for networking, catching up on weekly tasks or deadlines and getting your office organized for next week (admin).  If you attend a networking group, perhaps that day is a good day for meetings, follow up, or customer service activities.

4. Set your schedule and stick to it. Allow yourself enough time to get tasks done.  If you guess you’ll only need an hour, give yourself an hour and a half.  There is no sense in trying to kill yourself to accomplish tasks within an unreasonable time frame and most times you’ll just get behind and the schedule will be forgotten.  Batch like tasks and activities together.  Admin, follow up, accounting are all office-bound tasks, so it might make sense to schedule these on the same day.  Remember that each task has a prep time and a down time associated with it.  In order to use your time most efficiently, try not to “switch gears” too often in one day.

Your priority is your business, so once you have set up a working schedule give yourself permission to stick to your priorities.  There might be the occasional meeting that conflicts with your admin day, or you may need to place a followup call on a non-followup day, but don’t let that discourage you from sticking to the plan.  Learning how to manage the few hours you have in a day to accomplish all you have to do will keep you on top of the game and ready for more.

Jamie Teasdale - www.JJTSolutions.com

Micro Management is necessary when dealing with unskilled workers and young children; but it can become insulting and de-motivating to skilled workers. At first it is extremely helpful to have someone checking on your progress and answering questions. But soon, your management skills will come into question once tasks and procedures are accomplished.

Micro Managers are seldom respected by their employees or upper management, which presents a new set of issues to be overcome. It is as if you are announcing to the world that you are fearful and uneasy with your ability to manage. Micro Managers also feel overworked, because they are devoting so much energy into supervising every move of their employees. It is as if you are in charge of ten energetic toddlers. By the end of the day you are exhausted and feel that you have accomplished very little.

To change, you must do the following:

• Honestly evaluate the skill level of your staff and determine who can be left on their own, with MINOR supervision.
• Apologize to your staff and tell them you are trying to give them more freedom. This can be empowering to your employees.
• Ask skilled workers to assist those with less talent. Again you are recognizing a worker’s accomplishments.
• Take a deep breath and relax. Your job is to encourage rather then question and challenge the competency of your staff. You will soon discover that you are enjoying life again.

Ken Bear Cole

A Second Look Business Consulting LLC

In business today, most of the attention is paid to the sales staff. They win bonuses and are awarded trips because, Nothing Happens Until Something Is Sold. Ignored are the Blue Collar workers transforming the sales into profits. The route worker who services your customer or the service person who interacts with your customer and makes them satisfied. These are also heroes of your company. Like linemen on a football team, they don’t score the points; they make it possible to score. ALL of your employees have the ability to create or diminish company profits. You also need to motivate and show appreciation to those in the trenches. Appreciation and acknowledgement will work wonders and it does not need to add to your company expenses.

In 1968 I was part of history. I was a lineman for a high school football team who only allowed 19 points to be scored against us ALL SEASON. No one scored on the ground. If you were going to score points you needed to pass the ball and hope you could complete the pass before we sacked your quarterback. We averaged eleven sacks per game.

Most of our games were low scoring because we did not have an accurate passing quarterback. We had one of the fastest running backs in the state, but he only weighed about 110 pounds, so he was down at the first hit.

Our Line Coach convinced us that we could only win if we, the linemen, could keep the other team from scoring. It wasn’t going to be the flashy running that brought us a victory. It would be our ability as linemen. The victory would come from the trenches.

Ken Bear Cole

A Second Look Business Consulting LLC

Employee Theft
Is it Happening to You?

Ron Willingham the founder of Integrity Systems advises “don’t be afraid to ask the hard questions.” So I ask you, are your employees stealing from you? How do you know? It never ceases to astound people that a trusted employee could steal from you. It angers you and makes you sad, but it is happening every day. Large amounts are stolen from businesses and the most vulnerable companies are sustaining the biggest losses.

In its 2008 Report to the Nation on Occupational Fraud and Abuse, Association for Certified Fraud Examiners (ACFE) cites that small businesses are especially vulnerable to theft. The median loss suffered by companies with fewer than 100 employees was $200,000. This was the highest of any category. Unfortunately, small businesses have consistently suffered the largest losses of any category in their annual studies. Check tampering and fraudulent billings were the most common small business schemes. In fact, it was a check tampering scheme that cost Portland area business Paul Schatz Furniture over $500,000 in theft losses.

Are you a victim?

Most of us would immediately say “No, all my employees are completely trustworthy.” In fact, I have never had a business owner answer otherwise! But, what about new employee you recently hired? What about the long-term employee who has had an unexpected life change (divorce, death, or other experience) that has affected his/her financial stability? What about that employee that continually lives beyond his means? The trusted bookkeeper at Paul Schatz Furniture who was previously considered “family” blamed her embezzlement on a gambling addiction. The company was somewhat fortunate because the theft was discovered after only two years. Check fraud schemes generally continue much longer. The bookkeeper admitted in court that if she hadn’t been caught she would still be stealing.

Considering the potential losses

Could your company sustain a loss of this magnitude? It behooves small business owners to make the prevention of fraud a priority in their businesses. The first step in preventing employee fraud is letting employees know you’re watching for it. “Perception of detection is a very powerful deterrent,” says John Gill, a certified fraud examiner and general counsel and director of self-study publications for the ACFE.

7 Steps to Take Right Now

In his book “How to Prevent Small Business Fraud” Gill shares some of the most useful approaches that help fortify a business against fraudulent activity.
1. Hire the right employees. Conduct background checks for people handling inventory and money. Check past employment, criminal convictions, references, and education and certifications. Also, conduct drug screening since often, according to Gill, employees will steal from a business to support an addiction. Remember, however, to always get the written consent of candidates before doing research since many federal and state laws govern the gathering of such information.
2. Maintain strong internal controls. Have checks and balances in place, suggests Gill. “For example, you don’t want a signatory on the bank account balancing the check book,” he says. “If I can write checks on the account and I reconcile the bank book, I’m free to manipulate the check register.”
3. Make sure expenditures are approved. For every expense, have a manager and someone in accounting approve it. The supervisor will ensure that the expenses are valid, while accounting will run the math.
4. Monitor cash situations. In a retail situation, Gill suggests having security cameras monitor activity at registers and storage areas where inventory is kept. “People are less likely to do it if someone is watching them,” he says.
5. Conduct surprise audits. Catching an employee off guard could be your best bet in discovering fraud. “The key is that an employee generally doesn’t know what’s coming and won’t have the time to change the records to hide the fraud,” says Gill. “We’ve seen cases where somebody creates a phony company, submits invoices to accounting and accounting sends payment to a P.O. Box,” says Gill. In one case, Gill recalls, an employee who set up a fraudulent business through which he submitted preprinted, consecutive numbered invoices to his employer every few months. When outside financial professionals examined the invoices, particularly the invoice numbers, it seemed funny to them that the business submitting the invoices didn’t have other clients or was having an extremely slow year since each consecutive invoice was sent to the company. A surprise audit also can uncover duplicate invoice amounts and duplicate invoice numbers, both of which can be red flags for possible wrongdoing.
6. Create a fraud policy. “Don’t create anything complicated,” says Gill. Simply inform employees during employee orientation, training programs, memorandums, or other communications that fraud is not tolerated and let employees know what to do if they suspect fraud. Also, be sure to inform employees of the actions the company will take if it suspects or determines fraud has been committed.
7. Enforce mandatory vacations. “Our research has shown that if employees don’t take vacation, it can be a red flag,” says Gill. “They’re afraid to go on vacation because someone is going to find out that something is not right.” Requiring employees to take time off can aid in the prevention of some frauds.

Steal from My Own Company?

In his book, “The Danger Zone, Lost in Growth Transition”, Jerry Mills founder of B2B CFO® discusses the dangers of owners taking cash out of the till, bringing inventory home, and other like activities. These actions can set up negative perceptions with employees and create an atmosphere that taking from the company is tolerated. Remember, we want to set the right example and be the leaders that people can look up to and respect at all times.

There are many ways an employee can steal from their employer. There are also many ways an employer can prevent this activity. Being aware is the first step.

My partners and I at B2B CFO® (www.b2bcfo.com/partners/scotts) have over 4,000 years of cumulative experience assist businesses in developing internal controls to prevent and detect employee theft and fraud.

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There are numerous ways to motivate your employees, but one of the most common is Fear. Fear of the unknown. Fear of loosing your job. Fear of harm. Fear is actually a poor motivator because of what happens neurologically.

In the book Wet Mind by Stephen M. Kosslyn and Oliver Koenig, they explain how your brain makes an uncontrolled shift when encountering fear and stress.

• There is a limited ability for problem solving.
• The person becomes hyper alert with a constricted focus.
• The brain frantically searches for response information, relying on past experiences.
• For some, the person can become overwhelmed and dissociate.

Dissociation is common during times of high stress. Have you found yourself daydreaming, while driving and not sure of where you are? Then you have dissociated.  If your goal is to improve importance, you need to avoid fear.

Triggers for Fear and Stress:

• Loud noises cause an immediate response and are very useful in life safety situations.
• Closed door meetings heighten fear and anxiety because of the unknown. People seldom function well when kept in a vacuum
• Unexpected activities like laying someone off, will cause most of the staff to become stressed. This is especially true if they did not see it coming.

To diminish fear, simply apply a compliment or word of encouragement.

Ken Bear Cole

A Second Look Business Consulting LLC

When we started our businesses, we did so with an idea of delivering a great service or product (and making money).  How much time did we spend planning the direction or the bases by which future decisions are made?  If it feels at times like you don’t have a grip on daily tasks or if you always feel like you are behind the eight ball, then the answer is probably NO.

Answer the following questions:

1)  What do you do?

Be specific.  Avoid general statements like, “provide excellent service” or “sell insurance”.  Spell out all the details.

2)  For whom do you do it?

Be specific.  See a repeating pattern?  Strategic planning involves tending to the details.  Before you can provide an excellent service or product, you need to know exactly who will be your customer.  Why?  Because every personality trait you will be dealing with will require a different approach.  No ONE marketing presentation will work for everyone.

3)  How do you excel?

Once you know what you do and who you do it for, then is the time to bring YOU to the equation.  What sets you a part from your competition?  Try this little exercise.  Make a list of five things you do better than your competition.  Next, for each of the five things, make a list of those things your competition could do to improve their operation in that particular area.

Looking at your competition from the perspective of your customers can help you further define your unique selling proposition.

Always date your strategic plan and schedule time next year to review and alter your plan.

Ed Bejarana
Zenith Exhibits, Inc

Anyone who has taken a business management in college has heard of  Abraham Maslow and his hiarchy of needs. Even though his paper, “A Theory Of Human Motivation“, was written in 1943 it is still very relevant today. But it seems that in the midst of all the stress of downsizing and reorganization, too many managers have forgotten it’s principals.

While the lines of communication breakdown with more and more closed door meetings at the office; employees are left to imagine what is really happening. Are jobs in jeopardy? Who’s name is on the list? All of this additional stress causes a uncontrolled neurological shift in the brain. Employees revert to “Fight or Flight” mode. You can feel the hard drive spinning in your head as it searches for information on what to do. Creativity is beyond the reach of your brain during these times. All you can access are past experiences. Sound familiar?

To relieve stress in the organization, management needs to be forthright and honest. If cuts are coming, announce the news with the assurance that the company will do all it can to help those laid off. Yes this may cost additional dollars, but you will help prevent sabotage. Employees need to know that you care about them. This will go a long ways to easing conflicts and help prevent angry outbursts.

Once cuts have been made the remainder of the staff needs reassurance of their value to the company. All of these things will free up creativity in the organization.

Ken Cole

A Second Look Business Consulting

With the economy in a slump and staff reductions, there is much more stress at work these days. Employees are asked to do much more with little or no help. Everyone needs to pick up the slack caused by missing co-workers. Tempers can get short and recent studies from The Seamless Workforce, CNN Money and The Workforce Institute @ Kronos, indicate that most employees plan to change jobs when the market improves. Most employees feel over worked and under appreciated.

Since money is tight, what can a supervisor or owner do to improve this situation and retain key employees? An honest THANK YOU will go a long ways to improve morale. When employees are required to operate in a silent vacuum, they tend to think the worst. They believe that their employer doesn’t care if they live or die, that is as long as they do not die on the job, which might trigger a formal complaint and lawsuit.

I discovered the power of THANK YOU while working as a foreman for an electrical contractor. I thanked my workers each day for giving me a good days work. I found that my crew increased productivity, paid more attention to the taskes at hand and enjoyed comming to work each day. They also policed themselves. Slackers were not allowed on the crew. I did not enforce this policy, my crew inforced it. I overheard one of my crew telling a new member that, “everyone works on Bear’s crew. He treats us well and we work hard for him. If you want to goof off, go work for someone else.” I would not have put it so harshly, but then I didn’t need to. His fellow worker made it clear.

So thank your employees for sticking it out and working hard. You will find them happier to simply be acknowledged.

Ken Bear Cole

Fishing with Bear LLC

Contracts should be a vital part of any thriving business. They dictate the terms and conditions of the transaction. A good contract should clearly indicate who does what, when and where. It will also define payment for goods and services.

Sales trainers advise using terms like, “agreement” or “paper work” rather then contract. They say the alternate terms are more acceptable and not as hard sounding.

When working in the construction trades, I learned to love contracts. We dealt with lengthy contracts, which included supporting documents such as drawings and specifications. It was not uncommon to have 100-250 pages of contractual documentation.

This may seem excessive for something simple like cleaning carpets, but what happens when things go oh so wrong? If you have not protected yourself with a clear agreement, you may be spending more time and money with your attorney and the court system.

Here is an example of a poorly written contract. My neighbor asked me to review an agreement from a local window replacement company. Here are some of the problems I found:

1. The salesperson said there was a lifetime replacement warrantee on all of their windows. The contract said no additional warrantees, written or verbal, would be honored other then that, which is supplied by the manufacture. (5 years parts/defect free, 1 year labor). When asked, the salesperson said that was an error, but we were not allowed to alter the contract.
2. If the buyer is unable to complete the transaction for any reason, they could be subject to a 20% service charge. Quite a costly charge on a $10,000 window replacement contract.
3. The homeowner would be responsible to obtain any required approvals and/or building permits. This is not an easy task if you are not familiar with building department requirements.

I am sure the contract has been approved by an attorney at some point. That is why some of the language is so specific, but it seems to no longer comply with the current sales presentation. Is it time to review your sales agreements?

If you read and understand all the verbiage in any given contract, it can be your friend and ally, especially if the other party fails to comply. But it can be a nightmare if you simply sign it and rely on the statements of the salesperson.

See You at the dock.

Ken Bear Cole

Fishing with Bear LLC