I’ve seen it time and time again, business owners, whether they own an accounting, engineering firm, marketing agency or IT company, are left feeling vulnerable due to the feast and famine of income streams.
When I meet with business owners they share with me their concerns about their struggle for consistent revenues; one month the financials look great, but next month, they are not on target and they begin to stress about making enough income to cover their expenses. Sometimes this cycle is endless and it can take a toll on the many business owners striving for income predictability and growth.
When a business experiences the feast or famine scenario, things like hiring staff for a project today in hopes that there is work for them tomorrow can result in more stress and pressure on the owner to bring in more business.
Owning a business can be one of the most rewarding experiences, but so often business owners are conflicted with decisions about hiring the right staff, committing to paying rent for the appropriate space, investing in office equipment and technology, not to mention marketing. Without consistent and predictable revenue it is hard to make long term plans that will allow owners of professional services businesses to accomplish their goals.
If you are interested in learning about a professional business that will put an end to this feast or famine scenario but still give you the freedom to own a business, check out this website or simply contact me to discuss your situation.
With the New Year now well underway, many business owners are just putting the final touches on their business plans. That doesn’t mean, however, that adjustments can’t be made to ensure your goals can be reached in 2017.
As a business advisor for many years, when it comes to planning, I tend to come across two types of approaches: the visionary and the executor. Both approaches have their pros and cons, but as I’ll explain, a combination is what you, as a business owner, should strive for, especially throughout the business planning process.
A visionary knows where they want to go. They have a “big picture” vision and are often concerned with growing the company by setting goals. However, they lack tactical deployment and detailed plan as to how to attain this vision. They tend to not pay much attention to the processes in which their goals are met.
On the other hand, an executor’s primary concern is detail-related. They set high performance standards but fail to align those tactics to the “big picture” of growing the business because they’re so focused on processes.
As a business owner, do these two approaches sound familiar? Whether you’re a visionary or executor, I recommend the following steps as a way to bring both visionary and executor together when developing your plan.
- Have a Vision
Think “big picture.” Have a solid idea of your current state of affairs, determine what changes you would like to make, and consider how much you want to grow and in what areas of the business. Some examples of this might be that you want to increase revenue in your X division by 10% , perhaps you want to acquire a smaller business this year to expand your national reach, or you want to offer an automated solution to your XX customers.
- Dig into the Details
Now that you know what goal you want to achieve, create a plan outlining in detail how you are going to get there. If your goal is to acquire a smaller company this year, then it makes sense that part of your plan will involve searching for available companies. The devil is in the details as they say, so capture as much detail here so the plan can be easily executed on.
At this point you’ll also need to allocate budgets accordingly and introduce the means or tactics in which the budget will apply to.
- Review your progress
As with anything in business, monitor your results. Regular progress meetings should be conducted to get an accurate picture of how your business is progressing. Most importantly, ensure you are consistently making modifications to ensure success.
A carefully thought-out plan that contains both a big picture vision and accompanying details required for implementation is crucial for success. Ensure you share the plan with your employees so they are aware of the role they play in its execution.
While your business plan is somewhat of a blueprint, having a vision of where you want to go and how you are going to get there will position your business for success.
Congratulations! You’ve landed a new client, now what? The first few months of your new business relationship will determine the level of satisfaction your client has with you and will ultimately factor into whether or not you have a solid working relationship from which to grow. In order to maximize your level of service during this new and exciting time, I highly recommend following a carefully crafted onboarding process.
An onboarding process acts as somewhat of a blueprint for the next few months of the new relationship by clearly outlining expectations for both parties involved. Moreover, it protects both parties by mitigating any form of miscommunication or false expectations.
I’ve outlined below the steps involved in creating an effective onboarding process:
1) Send a welcome email
With most things in life, first impressions matter. This is no different in business, and sending your client a personalized welcome email from a C-level individual at your company not only shows your commitment to working with them, but it’s also a nice gesture that opens a line of communication.
2) Learn their resources
Since every company is different and operates in their own way, knowing what resources they have available is important to accomplishing your goals. For example, and depending on the type of services you’ll be providing, you’ll need to establish what platforms each company uses, what internal staff will be directly working with you, and whom you can go to with questions.
3) Establish mutual goals
A new business relationship is a two way street, and success is dependent upon clear communication and support offered by each party. Simply because a working agreement has been established, it doesn’t automatically mean both parties are on the same page. It is through the onboarding process that the details of the contract can fully be planned for effective execution.
4) Have a kick-off meeting
Whether over the phone or in person, hosting a kick-off meeting with key members involved in the launch of a service is an important step for setting expectations and weeding out any kinks that may have been overlooked during the original planning phase.
5) Obtain feedback
Once your business relationship has begun, checking in with your client to provide updates and ensure their satisfaction is key to demonstrating your willingness to foster a successful relationship. Not only will this show them your commitment to providing excellent customer service, but it will allow for any concerns or necessary changes to come to light. Having a 30, 60 or 90-day feedback session is recommended, but you can customize this plan based on your client’s preferences.
As you’ve probably realized in your business ventures, every client is different. Making tweaks to your onboarding process may be required depending on what each client’s expectations of you are and vice versa. Ultimately, an onboarding process is created to help you achieve success and maintain a mutual understanding with your client, so putting in the time to carefully craft one is in your best interest.
Do you have an onboarding process in place for new clients?
Forbes published an article on the importance of peer advisory boards, “10 Reasons To Join A Peer Group.” While I thoroughly enjoyed the read, I noticed the author overlooked a few key benefits that I’ve been lucky to witness firsthand as a facilitator. As a business advisor, I take pride in facilitating a peer advisory board that has proven results for my members. The peer boards help business owners reach new heights and succeed in ways they never imagined.
Peer advisory boards led by trained facilitators embody the power of collaboration, accountability, and perspective. A deep bond can be created and a business asset is formed that business owners crave and are hard pressed to find in any other forum. I’d like to share with you my list of top 7 reasons many business owners join a peer advisory board:
One of the greatest benefits of joining a peer advisory board is the exposure you’ll receive to other small business owners much like yourself. Entrepreneurship is unlike any other job, which means the challenges you face on a daily basis are just as unique. As a member of a peer advisory board, you’re able to share ideas with people in similar situations. As a result, the business ideas you’ll be provided with won’t just be erroneous but tried and true.
As the owner of a business, there aren’t many people you have to report to other than perhaps a Board of Directors or other shareholders. When you’re part of a peer advisory board, however, your fellow business owners will often hold you accountable for the executive decisions you’ve elected to make. Many peer groups meet once a month and they often expect some form of progress each month.
We’ve all had ideas that we considered to be foolproof, but as we’ve come to know in business, not every idea is feasible. In becoming a member of a peer advisory board, you’ll receive constructive criticism from the board regarding your potential business decisions. This allows you to fill in any gaps that you may have overlooked.
With competition at an all time high, it’s difficult to know whom you can share your ideas with. With peer advisory boards, anything that is discussed is confidential among members, so you’ll receive reassurance in knowing that you can freely discuss your business decisions without compromising trade secrets.
As previously mentioned, you’ll surround yourself with like-minded entrepreneurs as a member of a peer advisory board. What this means is that you’ll witness them experience successes and/or setbacks, just as they’ll witness the same for you. Either way, you’ll challenge one another to learn from your mistakes, grow, and ultimately succeed.
A common benefit I hear from board members is that a peer advisory board allows them to focus on developing their business rather than working in the business. Don’t get me wrong, one of the best qualities of a business owner is someone who knows the ins and outs of their product or service, but when it boils down to growth, strategic decision-making is a necessity.
As the saying goes, “it’s lonely at the top.” But it doesn’t have to be. Your fellow board members are there to support you through your journey, and many if not all are experiencing, have experienced, or will experience the trials and tribulations you are facing as a business owner. They are as much of a support group as they are anything else.
Have you ever considered joining a peer advisory board? What would be your top reason for joining?
Fourteen years ago, Charles Benayon embarked on a journey to create a company that would support mental health issues for employers and students. Fast-forward to today and his company, Aspiria Corp., has helped tens of thousands of people and their families.
As the Founder and CEO, Charles and his team provide Employee and Student Assistance Programs to medium- and large-sized businesses and schools. Reflecting on his successes, he credits much of his recent progress to the advice he has received from The Alternative Board ® (TAB).
“Prior to joining TAB, I was doing a ton of things on my own that, perhaps, I shouldn’t have been doing,” he recalls. “I was working too much “in” the business and not working enough “on” the business.”
For Charles, however, it wasn’t an instant decision to seek business advice from an advisor. “I couldn’t see how an advisor who knew nothing about my industry could help me grow my revenue base,” he said.
But it was roughly four years ago that he felt as though he was at a standstill with his business.
“We were at a level in my company where I was making all sorts of decisions and I really didn’t have someone at my level that I could bounce these decisions by. I thought it would be helpful to try to find an advisor who could provide support for me, who could help me with some decision-making, and who could help me develop a strategy for the company.”
It took about a year, but Charles decided to make a phone call to Phil Spensieri that would forever transform his business – for the better.
“Prior to meeting Phil, I didn’t have a strategic plan for the company,” he admits, “but he helped my management team and I develop a five-year strategic plan which has now become our blueprint for everything that we do.”
Providing structure is something in particular that Charles attributes to Phil’s expertise
The strategic plan isn’t the only thing keeping Charles and his team focused. As he mentions, The TAB Advisory Board is quick to keep him on his toes.
“I feel as though this team of advisors, including Phil, hold me accountable for my actions. If I say I’m going to do something and the next month I attend the group meeting and I haven’t done it, they’re going to call me on it.”
There’s much to gain from peer discussions, according to Charles. “The TAB Advisory Board can help any small business leader reach their business goals by providing a supportive, structured environment to help you get there.” Problem solving and like-minded support, as he mentions, are two of the biggest takeaways from a TAB Board meeting.
Joining TAB was pivotal for Charles, who recommends the dual-model approach to business coaching as a recipe for success: “If you don’t have one-on-one and group support to assist in reaching your goals, then your business will not be successful.”
Do you belong to a peer advisory board? How has it helped your business? Do you see how joining one can help you grow your business?
It’s hard to believe, but we will soon be entering the final quarter of the year. It’s an important time to ensure your business is on track with achieving its goals, in addition to setting your goals for the year to come. But depending on what your anticipated goals are, you may want to set something a little more specific – key performance indicators. While similar, the two can greatly differ so knowing what these differences are can surely help move your business in the right direction.
What Are Key Performance Indicators (KPI)?
A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. While goal setting illustrates a set of objectives you’d like to achieve, implementing a KPI will actually measure the success in achieving these targets. More importantly, however, is to know what type of KPI to implement, and this all depends on your type of business and what part of the business you’d like to track.
For example, if you’d like to see how your marketing efforts are assisting your sales objectives, setting an Incremental Sales KPI would prove highly beneficial. This specific KPI analyzes how your marketing efforts have increased your sales revenue during a specific campaign. The end result of a KPI will show you if the resources and budget you’ve allocated to a specific campaign, resource or individual have proven effective.
KPIs can fall under the following categories:
- Financial Metrics
- Customer Metrics
- Process Metrics
- People Metrics
How Do I Know The Right KPIs For My Business?
While setting KPIs are beneficial to your business, they can be just as detrimental to your time management if you do not set the correct ones. There are thousands of KPIs to choose from, and it can be overwhelming not knowing where to start. Here’s a tip – not only do you want to select KPIs that suit your industry, but ensure they also match your strategy. Additionally, ensure the targets or goals you are evaluating performance against are SMART (Specific, Measurable, Attainable, Relevant and Time-bound). By using this key formula you are ensuring both your goals and KPIs are achievable.
Where Do I Start?
Are you interested in incorporating KPIs into next year’s strategy? Start with these simple steps:
- Define what areas of the business you’d like to measure.
- Identify what questions the decision-makers, managers or external stakeholders need answers to.
- Select your KPIs. Consult your peers and business coach/advisor for input.
- Measure, measure, measure, don’t stop measuring when results are unsatisfactory.
Never hesitate to change or add KPIs throughout the year. After all, the main purpose of a KPI is to inform decision-making!
Regardless of whether a business is seeking to satisfy a major increase in demand, or strengthen its competitive position, growth is a vital step in the development of any business. From hiring employees and increasing office space to increasing production, expanding services or extending product lines there is a lot to consider. Growing your business requires you to take a bit of a leap. Look for these signs before you look to grow your business:
1. You are being approached by potential clients
When you find that you are receiving request and inquires from customers and clients, this is usually a sign that you are in a position where growth is possible. Your brand has now gained just the right amount of exposure to for growth to take place.
2. Your team is strong and ready to grow
It is vital to know if your company has the right staff in place for growth to be possible. Valuable leaders are important however, having a strong team of employees who are experts at what they do and are committed to your business, is crucial in the growth phase.
3. You have the necessary funds for growth
Knowing your sales cycle and what income you can expect on a regular basis will ensure that you do not experience a shortage in cash flow during growth. It is important to know this as you will not be able to successfully grow if your sales do not match with your income. Measure this before you grow.
4. You are personally ready to grow
Are you ready for the commitment that comes with growing a business? If you are not prepared, business growth can have affect your personal well being as well as your family and daily life.Your business may be ready for growth but it can only be successful if you are ready for it. Experts say business owners should assume a 12 month adjustment period to achieve normal balance in the business after a growth spurt.
5. You have realistic expectations
Know what your business can handle. It may be difficult to not get carried away if you’ve mastered a particular market or excelled in a specific area. You may think you have everything you need to do exactly this all over again but be realistic in what you hope to achieve and what you can handle. Consider the economic benefits, your existing infrastructure and current resources to evaluate if you will be trying to take on too much at once.
6. You have met and continue to meet set goals
Stop making excuses for failed goals and instead find alternate ways to meet them. Doing this will encourage confidence throughout all levels of your business and help overall growth in the long run.
If your business is growing, you’re doing something right. It’s also important to understand that growth is a disruptive force. A period of substantial growth will influence every single aspect of your company, which is why you need to adopt a strategic mindset.