The Alternative Board - East Valley

WHAT'S YOUR ROI (Return on Investment)?

After many coaching sessions with business owners, one recurring theme which I am always asking them is "What's Your Return on Investment on every activity that is done in your company?"  Even prioritizing daily activities should be thought of in this way.  Everyone must consider every expense and investment for what the ROI will be. 

For example, don't cut out that marketing plan, until you can determine what your ROI has been and what you can expect.

Make your sales people separate profit and loss centers by accounting for their salaries, commissions, and expenses.  See if they are giving you a return on investment.

Before hiring that new employee think about how much revenue is needed to make up that $30,000 employee.  Realize that if you are making a 10% bottom line, that in order to justify that employee you need to generate $300,000.  Perhaps you are satisfied to get your ROI in 2-3 years.  That is okay, just make sure that you think about it, before you hire.  

In conclusion, in this difficult economy think ROI.  If you would like to discuss this further, please do not hesitate to contact me or comment on this post.   

KEYS TO BEING A SUCCESSFUL BUSINESS OWNER

I was just reading a post from the Business Owners Blog written in December from one of my collegues Ray Brun called SIXTEEN MIND FRAMES OF SUCCESSFUL BUSINESS OWNERS.  Even though this was written in 2006, the mind frames are even more important today.  He refers to Successful Owners of Businesses as SOB's.  Affectionately, of course.  One does not have to perform every mind frame to be successful.  However, if you are not doing at least 50% you may want to consider taking action.  Can you add more to the list?    These are also great discussion points at your Alternative Board meetings or with your particular peer advisory group.  I hope everyone has one.  Here is the short version of the Mind Frames. 

1.  There is always a Better Way to Do it.

2.  Being a Marketer Turmps Being a Master Every Time (my particular favorite).

3.  Risk is alway Manageable.

4.  The Answer is Somewhere - Don't ever be afraid to ask for help.

5.  Delay is Costly and is Unacceptable - Take Action NOW.

6.  I can Always find Self Confidence When I need it Most

7.  Where There is a Problem There is a System to Solve It

8.  There is no such thing as a problem only opportunity.

9.  Mistakes are a Requirement for Success - See my previous blogs.  Embrace them and learn from them.

10.  They Set high standards.

11.  Creeping Excellence Trumps Perfection - There is no perfect company.  If you know one tell me, so I can work there.

12.  Focus equals power -  Who doesn't have difficulty with this one? 

13.  It is About the Goal Not the Plan -

14.  They empower others.

15.  They Break Overwhelming Projects into Small Steps

16.  Having Your own Business is a Joy.

WE ARE ALL IN THIS TOGETHER

As business owners in the East Valley, we are all in this economic crisis together.  As a community of business owners what benefits one benefits all especially in these challenging times.  The Alternative Board (TAB) has benefited over 3000 businesses both locally and nationally.  The Alternative Board is where business owners help other business owners in a confidential “think tank” environment.  They work on various business concerns such as sales, marketing, cash management and personnel.  They hold each other accountable, in a way in which only peers can do.  I recognize that it may not be for you.  Believe me, I am okay with that.  At the same time, I talk to dozens and dozens of business owners every month.  Some maybe possible prospects for what you are doing.  I am passionate about helping, and if your service can benefit the local business community or one of my contacts, I will be happy to pass it along.  Regardless what you decide to do regarding TAB, each of us will have a resource if the need arrives.  Can we meet so we can discuss some of your business concerns, the Alternative Board, and get a better understanding of your business, so I can refer you when the need arises? 

WHERE IS YOUR BUSINESS NOW AND WHERE IT IS GOING?

Difficult economic times call for ACTION.  One of the unseen challenges of small business owners is to know exactly where they stand with their customer, their employees, and consequently their business.  I do not know how many times I have asked business owner why they sell, and then ask one of their customers and get a completely different answer.  Honestly ask yourself the following questions: 

1. Is your management team in alignment with your Vision and Goals of the Company?
2. Is your organization aware of the factors which are critical to your success? 
3. What does your staff REALLY think about the direction of the company?
4. Do you really understand your companies Strengths and Weaknesses? 
5. Do your customers really KNOW what you do better than all your competitors, and do they pay for it? 

At The Alternative Board® we offer an on-line business assessment tool which will evaluate the company performance utilizing the input of yourself and key company employees.  We can also compare your results to those of companies with similar SIC codes.  It will give you an in-depth 360 degree snapshot of your business and will help you brainstorm ideas, create goals and strategies, and prioritize those areas most important in developing your business.  The key functional categories include:

Sales                                                                Operations

Marketing                                                          Corporate Finance

Planning                                                            Computer Technology

Customer Service                                               HR Procedures

Internal Communications                                    Employee Development

There are special sections for different company situations such as

Overseas Markets                                              Not for Profits

Time Management                                             Retail

Manufacturing                                                    Distribution

Planning to sell

 

Call to Action: If you are in the metropolitan Phoenix area and would like a complimentary TAB Business Vantage assessment plus a one hour face to face debriefing of the report please give me a call at 480-656-3565 or e-mail me at allanh@tab-scottsdalenorth.com .