Common mistake.

In fact, after you have been in business for a few years chances are good that you get into a fairly predictable routine each week. Unfortunately, even though you see similar challenges week after week, you devise a new way of dealing with them each and every time.

Consider the following scenario: A customer has just called and complained that there is a defect in your product or service. The staff member who answers the phone deals with the problem but never communicates the solution to anyone else. Next week, a different customer calls with the same defect and the phone call is taken by a different staff member.

Guess what happens? That’s right, another member of your staff takes time dealing with a problem that had been solved a week earlier.

Now, keep in mind that this sort of scenario takes place in every single facet of your business – sales, marketing, operations, customer service, accounting, shipping, etc. In other words, you and your staff spend a significant amount of time and effort trying to reinvent the wheel each and every week.

This loss of productivity (in addition to a fairly high level of frustration) is taking a significant toll on the bottom line.

So, how do you stop?

Like most issues facing small business owners, the answer is intellectually simple, yet most owners struggle to implement the solution.

Here goes (drum roll please…) — Buy a 3-ring binder and write the word “Operations Binder” down the spine. Next, create a table of contents that mirrors your business. Typical headings include Marketing, Sales, Operations, Finance, Customer Service and HR.

After you have decided on the main headings, you then carefully consider each of the tasks that need to take place in each of these categories and then document the steps necessary to complete each task. It really is that simple.

If it’s that simple why do we struggle to make it happen?

There are 2 main reasons. First, most business owners don’t make the time to write down these systems and procedures. They will argue that they are too busy taking care of issues and problems to figure out the best way to deal with issues and problems.

Second, for those owners who do document these critical systems, their “operation binders” just get put on a shelf and are rarely referred to in the future.

The key, like most everything for the small business owner, is discipline. If you want to increase the bottom line, you need to have the discipline to execute the simple basics
that will make a difference.

Do you reinvent the wheel every day in your business?

How much time and effort does this waste?

What would you do with the time and effort you free up by systematizing your regular procedures?

C.J. McClanahan
Reachmore Strategies
317-576-8492
cjm@reachmore.com

• Do you spend your time on the most profitable activities each week?

• What if you did?

Hiring the Wrong Person

When was the last time that you had to add a new team member to your staff?
Did you view it as a strategic opportunity to improve your business?
Unfortunately, most business owners don’t understand the importance of hiring the right person. They treat this task like buying a new copy machine – it’s a pain in the butt, but it’s got to be done.
Numerous studies have shown that making the wrong hire can be disastrous. In fact, conservative estimates of turnover show that making a mistake can cost anywhere from 2 to 3 times their annual salary. Even if you are just looking for a $30,000 receptionist, that’s $60,000 – $90,000. Can your business afford a $90,000 error?
So how do you avoid these mistakes? There is no magic formula, but here is a look at the results of typical hiring methods. This study analyzed the likelihood (in percentage) that a new hire would be successful based upon the hiring method.
• Interviewing only – 14%
• Reference checking – 26%
• Personality Test – 38%
• Abilities Test – 54%
• Interest/Motivators Test 66%
• Job Matching (all of the above combined) 75%
• The message is clear – take the time to make sure that you get the right person the first time. There are a handful of useful (and relatively inexpensive) tools to help you make the right decision.How much time have you spent in the last year agonizing over a bad hire?
• How much productivity has that caused you and your staff?

• Will you hire differently next time?

C.J. McClanahan
Reachmore Strategies
317-576-8492
cjm@reachmore.com

C.J. McClanahan

Take a quick minute to answer the following 2 questions:
How many leads did you generate in the last 90 days and where did these leads come from?

How many of these leads did you turn into customers?
The answers to these questions will provide you with 2 of the most important indicators of the health of a business. Unfortunately, most business owners struggle to find answers to either of these questions.

Why?  Typically, I hear that it takes too much time to track this information. But, after a quick demonstration of how easy it is to collect this data, I discover that the real answer is
most owners don’t understand how important this information is to their business.

Consider the following:
Studies show that if you begin to consistently track this information you should automatically see at least a 5%  increase in the numbers – even if you make no improvements.

Once you understand your current performance, it is less difficult to identify and implement the right solution(s).  As you bring on new salespeople and other staff members, you will find it much easier to train them and measure their performance. So, before you spend a bunch of time and money on a new marketing campaign, start tracking your investment.

Do you track your leads?
How much does it cost your company to generate a lead?
Is that money being spent effectively?

Neglecting to Set Clear Expectations
How would the members of your staff respond to the following question?
“What does the owner expect of you on a daily, weekly and annual basis? In addition, how do you know if you have met his/her expectations?”

If you are like most owners, you probably think that your staff will struggle to answer this question. In fact, most of you will admit that you’re not even sure HOW your staff should respond to these questions.  Your employees are your most important asset and just like any other asset it is absolutely critical that you get maximize their production. How can you maximize their production if you are not even sure what it should be?  Before you spend another minute criticizing the performance of your staff, make sure that you have CLEARLY laid out the ground rules. Getting everyone on the same page takes time, but it will provide an enormous return in the long run.

Does your staff know what you expect from them?
How much unproductive time results from this problem?
What does this do to your bottom line?

C.J. McClanahan
ReachMore Strategies
317-576-8492
cjm@reachmore.com