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Published in: GLVCC Connections – December, 2008
Small business requires focus and attention in 2009
“May you live in interesting times” goes the Chinese proverb. I think that it’s safe to say we are entering interesting times as a nation and as a business community. Uncertainty has become the new normal, and I’m sure that we will experience our share of excitement and worry as the months go on. Regardless of how one views the election of Barack Obama as our next President, those of us who run small businesses know that the personal decisions we make have the most direct impact on our future. And during economic downturns, our day-to-day decisions become more important to the health and survival of our businesses.
How much of my time should be spent selling? Should I focus on preserving cash flow, or growing revenue? Do I hire that new employee – buy a new computer – or move to a smaller office? These types of questions and the hundreds of smaller decisions that come across our desks every month have the potential to sap our energy and diminish our effectiveness. So allow me to offer some guidance that comes from observing how hundreds of small companies run their businesses. Our firm has weathered three boom & bust cycles over the past 22 years, and we work hard to apply our institutional memory to our daily decision-making.
Distinguish the urgent from the important. In small business, every request from an employee or customer can seem critical. As a result, an owner spends much of her time reacting to the crisis of the minute. Understand that you can’t focus on everything. So use this 3-question checklist to help quickly determine the urgency of an issue that is brought to your attention: Does the customer expect an immediate answer? Does this affect my ability to collect money – book a sale – or reduce my cost? Will anything bad happen if I put this off for a week? If the answer is negative to all three questions, make a note to follow up at a later time off normal business hours. This exercise will help you to separate the issues that have real significance to the business from the minor problems that can be put off without causing disruption.
Focus on core functions – outsource everything else. The most common limitation that small businesses share is a lack of resources. This is why employees in small companies tend to wear many hats, performing more than one job in order to get everything done. How many Chamber members have a bookkeeper who also answers the phone…or a salesperson who has the dual responsibility of customer service? When the economy tightens and competition becomes intense, your resources are spread even more thinly.
The two activities that are guaranteed to earn money are delivering your product (or service) and acquiring more customers. Everything else is secondary. Find less expensive alternatives for as many non-core functions as possible: payroll processing; invoicing & collections; data entry. There are even creative alternatives to answering incoming phone calls. Don’t waste time and energy working on things that don’t generate profit for your business.
Lastly, take the time to breathe and remember why you’re in business. I’ll bet that you’re pretty good at what you do and that you offer a valuable service to your customers. Don’t allow the day-to-day stress to interfere with your ability to convey confidence, calmness, and competence to the market. We’re all responsible for our own success.
I wish you a Merry Christmas and Happy New Year.
By: Kevin Flemming, President
INTEGRITY Personnel, Inc.
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