Business Management

Issues Facing Small Business Today

2019 is in the history books and in spite of an improving economy there are many continuing issues facing business today.
Here are a few that as owners you may wish to address as you strive to grow your business.







1. Cash
Cash is hard to get and there is never enough. If you are a fast growth company you can rapidly outgrow your available sources, if you are an underperforming company you can’t get it. Many companies don’t manage it well.
Businesses often experience some problems getting paid on time by their customers and with debt recovery. Good credit control helps to prevent this becoming a serious problem.

2. Lack of a Clear Plan
Most businesses don’t know how to plan. Lack of a plan worsens the cash problem by wasting cash chasing tempting diversions, and throwing money at problems. Equally important is revising your plan according to changing economic and business conditions and to ensure your survival in weaker economies.

3. Technology
The pace of technological improvement is running at an exponentially increasing rate. This pace makes capital investment in technology as much an asset as a handicap because a competitor may wait for the next-generation technology, and then use it to achieve an advantage. The ability for even the best of technologists to stay informed about emerging technology is in conflict with the need to master a company’s current technology. The problem to be solved is to develop a long-term technology strategy while remaining flexible enough to take advantage of unforeseen technology developments.

4. High Overhead
Overheads are one of the biggest small business challenges, and excessive overheads have driven many otherwise good companies to the wall. Resolving them involves paying close attention to what customers actually want and providing products or services sharply tailored to suit. And don’t forget to ask yourself hard questions, such as whether you need that new car or printer, or whether it’s just for show…

5. Ineffective Leadership 
This issue takes many forms and is frequently in the form of depth of leadership. The founder of the company is too much hands-on and a) does not concentrate enough on his primary role as a leader rather than a manager; and b) fails to enlist support of competent managers and staff either through recruitment or by outsourcing. This eventually causes the company to stop growing and even leads to failure.

I trust these ideas provide thoughts to resolving some issues faced daily by many businesses as they strive to develop and grow.
Please share your thoughts. gerry@polarisgroupmc.com

Benefits of Mentoring

As a business grows owners may be in a position of managing more and more areas of the business that they are less familiar with. The owner’s original background may be manufacturing but now oversees finance, sales and HR issues.

An experienced business advisor may help develop these skills and improve decision making as the business grows.





Here are a few examples of the benefits of mentoring:

1. Expert Advice
 Above all, business mentors have “been there, done that.” They can offer you expert advice and guidance based on actual experiences — successes and failures included.
The insight that business mentors can provide because of what they’ve been through with their business ventures, and over time, is tremendously valuable from a practical standpoint.

2. A Different Perspective
Consulting with a business mentor can be a great way to gain a different, fresh perspective. It’s easy to get caught up with your ideas to the point of questioning, confusion or second guessing – and having a sounding board in a business mentor is a great way to work through some of those kinks and broaden your own outlook.

3. Improving Key Skills
Mentors are not consultants who focus only on key business results. A mentor can help develop an owner’s business management skills, improve communication skills and facilitate further growth in the business.

4. Networking
With all that experience likely comes a vast network of industry connections. Your mentor can help open doors so you can meet people – potential partners, customers and decision-makers in your target market.

There are many other benefits, and if you’re just getting started down the path to business ownership – or have been there for some time – and are looking for some guidance, consider reaching out to a business mentor to help you along the way.
You’ve got nothing to lose – and a world of business insight to gain. I hope you find these ideas have merit. Please let me know. Gerry@polarisgrpoumc.com

Business Management

Improve Time Management

Time is one of the resources business managers have that is scarce, cannot be replaced once spent, and it cannot be borrowed or purchased. Here are a few tips to help manage it.






1. Prioritize Activity
To help you determine what needs to be done immediately and what can be tackled later, ask yourself: "How much time do I have to make this decision, contact this person, or complete this assignment?"

2. Delegate Tasks
It is common for all of us to take more tasks than our desired potential. This can often result in stress and burnout. Delegation is not running away from your responsibilities but is an important function of management. Learn the art of delegating work to your subordinates and get more achieved.

3. Calls and email
 Try not answering the phone every time it rings or reading an email just because it shows up. Few issues in business require an instant answer and you will be more efficient if you schedule time to return calls and email inquiries.

4. Overcome Procrastination
Procrastination is one of the things that badly affect productivity. It can result in wasting essential time and energy. It could be a major problem in both your career and your personal life. Avoid procrastination at all cost.

5. Plan the unexpected 
It is inevitable that the unexpected will occur so leave open time in the morning and afternoon schedule to deal with “fires”.

6. Plan Strategic time 
Plan ahead for weekly, monthly, and quarterly business reviews. It is important to continuously review and understand the business issues and if you fail to block off time some emergency may pre-empt the time and your plan will be postponed or eliminated.
 
7. Downtime 
Casual time over lunch can be useful for strengthening relations with employees, customers and suppliers. Use that time judiciously.


Remember that it is difficult to get everything done and best results are achieved from those priority activities that are the focus of the business and future growth.
Thanks for allowing me to share your time with these tips. Gerry@polarisgroupmc.com

Business Management

Make Better Business Decisions

Every business owner has to make tough decisions with uncertain outcomes. That is the nature of the job. Making a decision is one of the most powerful acts for inspiring confidence in leaders and managers. Yet many bosses are sometimes squeamish about it. Some decide not to decide, while others simply procrastinate. Either way, it's a cop-out -- and doesn't exactly encourage inspiration in the ranks.

Learn how to make better decisions. You'll be viewed as a better leader and get better results overall. Here are some tips for making quicker, more calculated decisions:

1. Stop seeking perfection. 
Many great leaders would prefer a project or report be delivered only 80% complete a few hours early than 100% complete five minutes late. Moral of the story: Don't wait for everything to be perfect. Instead of seeking the impossible, efficient decision makers tend to act without all the answers.

2. Create a constructive environment. 
For successful decision making, make sure you establish an objective, involve  stakeholders, hear others opinions, and ask the right questions.

3. Expect the Unexpected
No matter how much analysis and planning you do, you cannot predict the future. Things happen so your plans should be flexible enough that you can adapt to the unexpected, without throwing everything off course.

4. Seek out help when you get in over your head.
If you think you know everything, you are doomed to fail. If you don’t have the time or resources to delve into a particular issue, or don’t have the technical background, or just want a second opinion, then by all means bring in outside experts to help you.

5. Don't problem solve, decide. 
A decision can solve a problem, but not every problem can be solved by making a decision. Instead, decision making often relies more on intuition than analysis. Deciding between vendors, for instance, requires examining historical data, references and prices. But the tipping point often rests with your gut. Which feels like the right choice?



6. Communicate Your Decision, and Move to Action. 
Once you've made your decision, it's important to explain it to those affected by it, and involved in implementing it. Talk about why you chose the alternative you did. The more information you provide about risks and projected benefits, the more likely people are to support the decision.


An organized and systematic decision-making process usually leads to better decisions. Without a well-defined process, you risk making decisions that are based on insufficient information and analysis. Many variables affect the final impact of your decision.
I hope these few ideas help improve your approach to decision making in your business. Please let me know your thoughts. gerry@polarisgroupmc.com

Conserve cash – Improve profits

As an entrepreneur, one of the key factors that keep a business running is liquid cash or operating capital. When a business has cash flow it will always be in a position to pay suppliers, meet payroll and pay for other expenses.

However, many owners go without cash inflow into the business. The main reason why businesses get into this position is due to a lack of ways to conserve cash.

Conserving cash is not always easy. If you think so, then tell us why many entrepreneurs fail? Can a business increase cash flow and maximize profits at the same time? Yes, here are key steps for doing so.

1. Spend wisely
Make sure that purchases are made for need to have not nice to have items. Items should have  a good use in the business producing revenue where possible.

2. Hire only when necessary
Employee salaries are a significant cash drain so efforts to maximize productivity from current employees are paramount.

3. Lease equipment or buy used
Leasing vs buying can be an important option since equipment purchasing can be a serious cash drain. If an option exists to buy gently used equipment it may be a profitable option.

4. Plan ahead
Make sure you forecast financial activity. A plan outlining expected revenues and expenditures is vital to understanding cash needs. You certainly want no surprises on cash flow activity.

5. Renegotiate leases
Rent is often a sizeable fixed cost that can be negotiated. Speak with your landlord; there may be an opportunity to downsize or even temporarily obtain rent reductions. Landlords often prefer to accept lower income than losing tenants.

6. Go to the clouds
If your business is large enough to have in-house servers you are aware of the maintenance costs. If business is increasing this may be a cost effective way to create additional capacity without buying expensive new servers.

7. Exchange Goods and Services
Look for vendors who are also in need of certain products and supply the products to them in exchange of products that you lack to run your business smoothly. By exchanging products for other products( barter trade), it means that you will be able to conserve cash in the business.
Business owners should share their cash flow objectives with other key managers to ensure every opportunity to maximize cash savings is realized.
I hope there few ideas provide new thoughts on ways to improve profits for your business. Let me know what you think. Gerry@polarisgroupmc.com

Business Management

Business Ethics

One of the more important attributes for small business success is managing with carefully developed principles of high ethical standards. When practiced throughout the organization it becomes part of the image of the company and can be an important factor in overall success and how the community views the business.




The following principles incorporate the characteristics and values that most people associate with ethical behavior.

1. HONESTY. 
Ethical executives are honest and truthful in all their dealings and they do not deliberately mislead or deceive others by misrepresentations, overstatements, partial truths, or any other means.

2.  INTEGRITY. 
Ethical executives demonstrate personal integrity and the courage of their convictions by doing what they think is right even when there is great pressure to do otherwise.

3. LOYALTY. 
Ethical executives are worthy of trust, demonstrate loyalty to persons and institutions by friendship in adversity, support and devotion to duty; they do not use or disclose information learned in confidence for personal advantage.

4. FAIRNESS. 
Ethical executives and fair and just in all dealings; they do not exercise power arbitrarily, and do not use overreaching nor indecent means to gain any advantage nor take advantage of another’s mistakes or difficulties.

5. LEADERSHIP. 
Ethical executives are conscious of the responsibilities of their position of leadership and seek to be positive ethical role models by their own conduct and by helping to create an environment in which principled reasoning and ethical decision making are highly valued.

Certainly there are many other attributes that may be considered. I hope these few examples serve as suggestions for how your business might be governed.
Please let me know your thoughts: gerry@polarisgroupmc.com

Business Management

Do you communicate well in business?

Communication is at the core of all our relationships, both business and personal. Business communication needs to keep pace with the warp speed digital communication that bombards us with messages we often did not ask for and are irrelevant to our business activity.

Effective communication is a vital tool for any business owner. Your success at getting your point across can be the difference between sealing a deal and missing out on a potential opportunity.

Communication is also important within the business. Effective communication can help to foster a good working relationship between you and your staff, which can in turn improve morale and efficiency.

Here are some suggestions for consideration:

1. Listen
It's one thing to ask good questions - it's another to really take on board the answers. Active listening means paying attention to the speaker – both to verbal and non-verbal cues. It is vital to make sure you don't let your attention wander. Important pieces of information can be missed if you are not alert and engaged. This can lead to misunderstandings later on, or possibly embarrassing situations where you appear to have forgotten something you have been told.

2. Non-verbal Communication
Body language can back up the words you use and how you say those words, but can also betray your true feelings if you are uncomfortable in a conversation. Looking people in the eye when talking to them is a good way to let them know you are listening to them and interested in what they have to say. Eye contact can also convey sincerity and confidence, which is often important in business situations.

3. Respect Cultural differences
The world is shrinking. Companies not only hire foreign employees, but they also work with more colleagues abroad. As a result, management needs to be culturally sensitive and aware of the subtle differences in the way people of different nationalities interpret words and gestures.

4. Trust your staff
When employees feel as though they have control over their job, they feel a sense of purpose and are more invested in the entire process. Autonomy breeds innovation and job satisfaction. Babysitting, on the other hand, makes employees feel as though the company doesn't consider them competent enough to do their job. They feel insecure and unmotivated. Provide your workers with the tools they need to get their job done, and then give them the freedom to do it.

Communication effectiveness can have dramatic effects on employee morale and productivity. Always work towards maintaining high standards and rewards will be there.

Please let me know your thoughts. gerry@polarisgroupmc.com

Business Management

When to Exit – Some thoughts

One of the more interesting and challenging questions as a business owner is “when should I be thinking about exiting this business? There are many factors to be considered but here are a few thoughts.

1. Business Health
Is the business operated from strong principles of strategy with a clear vision? Can that vision be expressed and understood by those who manage the business or potential buyers? If you the owner cannot clearly state the purpose or reasons that you exist don’t expect new owners to invent it for you.

2. Maximize return
In cases where management/ownership is dominated by a single individual it is important to maintain a high degree of confidentiality so that employees do not become insecure and unsure of the stability of the company or their jobs. This instability can easily be communicated to a potential new buyer and create a poor impression.

3. Need change?
Factors that may support your decision to leave can grow out of many conditions. The most common is an age derivative. A long career leading to a desire for more personal time; reap the rewards of your career. Age may not be the prime driver but longevity at the job could be creating burn out. Time to move on.
Another good time chosen is driven by a need for change. You may feel you have achieved all that can be achieved and you wish to quit while on top of the game. This may also provide a high rate of return if the business is at a high level of performance. Selling now may produce the equity needed to finance a new opportunity.

4. Exit from strength
Look for opportunities to exit from positions of strength. A well trained and competent management group may provide the opportunity to offer management buyout.  Managers may be able to pool resources to fund the buyout, you as owner may offer to finance all or part of the buyout or there may be an option to use company assets to finance the loans needed for the buyout. This is often referred to as a LMBO – Leveraged Management Buy Out. It also provides good opportunities for maintaining stability in the organization.

5. The market
The marketplace may facilitate determining the right time to exit. Poor economic conditions or competitive activity can have a huge impact on if or when you should exit. Positive conditions too might bring a competitor to the door with a buyout offer.

So the options are many but not always easy to sort through. Timing is critical, business life changes, choose wisely. These are my thoughts, care to share yours? gerry@polarisgroupmc.com

Business Management

Common Cash Flow Problems Faced by Small Business

Cash Flow is an essential ingredient to the survival of your small business. It is the flow of money in and out of your business, and the quantity as well as timing of that flow is critical to the continued operation of your business.

Cash helps your business purchase material it needs for production and services thereby helping your business to generate more cash for its operation. If customers are slow to pay or your pricing structure does not adequately cover the cost of production, your business will not have enough cash to continue operation. Even if your business is turning in a profit, you can still be forced to close if your business runs out of cash.

Here are a few common problems to watch for:

1. Manage your receivables
Try to turn your receivables quickly without antagonizing customers. Advise key customers what you’re up against, and arrange more favorable terms if it will expedite payment. This will create cash that can be reinvested in the business.

2. Weakening Sales
Sales are the heart of your cash flow. The persistent lack of sales can affect how your cash is       coming in to your business and weaken liquidity.

3. Excess Inventories
Inventory greatly impacts cash flow, too much inventory is as dangerous as not enough, since money tied up in inventory can severely hamper a small company’s cash flow.

4. Manage Staffing
Ensure new employee hiring is necessary. Employee salaries are a significant cash drain so efforts to maximize productivity from current employees are paramount.

5. Protect working capital.
If cash is tight don’t pay for long term investments in equipment. It is better to use debt to finance these projects. Debt can be used to re-finance fixed assets to free up capital.

These are just a few suggestions to improve that most vital business tool – cash flow.
I hope you agree, please let me have your comments. gerry@polarisgroupmc.com

Business Management

Are you stuck in a pressure cooker?

In need of tips to reduce the stress you are under? 

You may want to consider some of the following options in order to lessen the impact or negative effects on your business operations:
- Know your body signals: excessive heart rates, headaches, anxiety may be signals and suggest a need to find time to wind down.

- Don’t procrastinate and postpone decision making. Difficult decisions are not made easier because you postpone them. At times conditions may worsen if issues are not resolved.

- Take 10: Without really ducking a decision, stress can be relieved if you just take a short break or switch tasks for change of perspective.

- Stay fit. A program of regular exercise can help your body and mind deal with difficult situations that may arise from time to time. Try to maintain a healthy diet to support your overall health.

- Achieve balance between work and other family and personal activities. Enjoy time away from the job to let you recharge your batteries. Plan periodic vacations or days off. The organization is unlikely to collapse because the boss is away for a short time.

- Delegate:  No one has a monopoly on all of the good ideas and ways to resolve problems. Let staff participate as part of team that enjoys successes and faces difficulties on the job as well.

- Network: within and outside of the business to share ideas and issues with. Trust people to help with business issues. Working in isolation is rarely a good idea.

- Manage fairly: It’s nice to want and demand high standards but an obsession with perfection can destroy a business and the people that surround you.

- Monitor: Make sure key support people including those managing the finances keep you up to date. Since cash flow is a key marker make sure expenses are kept under control and systems to improve productivity are reviewed often. A well run business with good information flow is a key to stress reduction. Eliminate surprises.

These suggestions won’t eliminate all of the stress in your business but I find they help keep stress at a manageable level. Please let me have your comments.

Gerry@polarisgroupmc.com

Increase the Value of your business

Most businesses with under $1 million in revenue (which is most businesses) sell at a very small multiple of earnings when their owners decide it's time. Typically they get two or three times their pre-tax profit, if they're lucky. How can you get more juice out the company you've spent years developing?



Here are a few ideas that may help grow that important valuation.

1. Recurring revenue: 
Demonstrate that your customers come back to purchase regularly and you'll drive up the value of your business because buyers will have confidence your sales will continue long into the future.

2. Revenue growth rate: 
Acquirers will look at your top line revenue growth and project how large your business will grow in the future. Revenue growth rate may be even more important than profit growth for driving value. Buyers know how to squeeze margin to increase profitability but it is difficult to replicate the formula you have that makes someone want to buy your product.

3. Positive cash flow: 
If your company takes in money before it has to spend it, buyers will pay more for your business. Acquirers look at opportunities by measuring the return they'll get on the money they need to invest. If your company generates cash, they will not have to put much of their own into funding your day-to-day operations. The less cash they inject, the better the potential return on their investment.

4. Succession: 
You may want to consider firming up plans for a successor to your leadership position. Having a second-in-command will help you show the business can continue on successfully without you. If you can't afford an entire management team, at least find and groom your right hand person.

5. Differentiate:
You'll get a higher multiple for your business if your product or service is truly unique in the market. Acquirers will graft your product onto their distribution channels and estimate just how big your company could be in their hands. That only works if you have a truly different product or service.

I hope these few tips provide some insight into steps you may take to present a positive opportunity as you reach a stage where you may want to move on to newer challenges. Please let me know your thoughts:Gerry@polarisgroupmc.com

Business Planning

Business Planning for Success

Any road will get you there if you don’t know where you are going. Perhaps an updated business plan will help improve your opportunity for choosing the right options when you hit that fork in the road and help you achieve success.



Here are a few reasons to update your plan.

1. Cash Flow sensitivity.
Most business owners seem to focus on profits instead of cash. The reality is that businesses spend cash to operate, not profits. Understanding cash flow is critical. If you only get one report to manage the business make sure it is a cash flow chart.

2. To support growth and secure funding
Most businesses face investment decisions during the course of their lifetime. Often, these opportunities cannot be funded by free cash flows alone, and the business must seek external funding. However all prospective lenders will require access to the company’s recent Income Statements/Profit and Loss Statements, along with an up-to-date business plan. In essence the former helps investors understand the past, whereas the business plan helps give them a window on the future.

3. Operational focus
Successful business leaders know that a well-written business plan can provide day-to-day operational assistance. Organizations that stay focused on their business plan have a higher chance of success; when used as a road map, it can help business leaders stay focused on business growth, mission and goals.


4. To support a strategic exit
Finally, at some point, the owners of the firm may decide it is time to exit. Considering the likely exit strategy in advance can help inform and direct present day decisions. The aim is to liquidate the investment, so the owner/current investors have the option of cashing out when they want.
Common exit strategies include;
• Initial Public Offering of stock (IPO’s)
• Acquisition by competitors
• Mergers
• Family succession
• Management buy-outs

Investment decisions can be taken in the present with one eye on the future via a well-thought-out business plan. Given that valuing firms is notoriously difficult and subjective, a well-written plan will clearly highlight the opportunity for the incoming investors, the value of it and increase the likelihood of a successful exit by the current owner.



I hope these thoughts help as you drive your business forward to success. Let me know your thoughts. gerry@polarisgroupmc.com

Business Management

Why not Hire the Best?

In many businesses the most important asset is the employees going through the doors every day. These individuals impact your business in many ways with their actions and decisions. As leader the owner controls one of the most important decisions for the organization and the hiring process can be critical to the overall success achieved.






Here are a few pointers to consider when hiring:

1. Develop a precise plan
Identify the key skills a candidate must have to succeed. Also define the important attitudes that enable the candidate to excel at the job. Stick to the plan.

2. Be diligent in selecting a candidate
A thorough interview process is important in choosing top candidates. This is particularly important with senior management positions. Take the time to test for qualifications; a vague, wandering conversation of informal questioning will at best be a hit and miss approach. Results will be equally inconsistent.

3. Share the Process
To improve results, involve others to gain a different perspective. Choose peers that the candidate would work with and perhaps even involve key customers if you enjoy their confidence. These contacts will bring additional insights into the personality and style of the candidate and add a point of view of the person’s ability to integrate into the organization.


The more perspectives you bring to the process the greater the chance of success in hiring great people in the organization.

I hope these few tips are of value as you grow your organization. Please let me know your thoughts. Gerry@polarisgroupmc.com

Business Management

Managing Change In Your Business

Managing change in an organization is crucial if the business is to move forward with adapting any new structure or shift in business focus needed to realize its goals of growth and profit improvement.


Here are a few thoughts on areas management needs to focus on to implement and manage change in the organization.



1. Responsibility. 
Clearly management and communication of change rests at the senior levels of the organization. Employees have the responsibility to try and accept and help implement changes.

2. Involvement. 
Management should involve employees in the changes – it is never a good idea to just impose change from the top. Employees want to understand how they are impacted.

3. Understand.
Knowing where the organization is and understanding where you want to be at a specific time, why, and what steps are needed to achieve the goal are all critical steps.

4. Plan.
The organization must develop a plan that is achievable if management is going to be credible. The plan should set out stages for implementing change in phases that are not only achievable but measureable.

5. Communicate
This stage cannot be overly stressed. Clear communication of objectives, involvement of staff at the early stages, and empowering them will facilitate involvement and buy in for the company.

It is obvious to most business owners that people matter. Sometimes however the organization gets lost in plans and processes rather than facing the difficult and more important people issues. Making the initial steps to involve the entire organization starting at the top will help achieve success.

I’m always happy to hear your thoughts.
Gerry@polarisgroupmc.com

Business Management

Critical Steps to Crisis Management

Unplanned events can have a devastating effect on small businesses. Crises such as fire, damage to stock, illness of key staff or IT system failure could all make it difficult or even impossible to carry out your normal day-to-day activities.
At worst, this could see you losing important customers - and even going out of business altogether.
But with good planning you can take steps to minimize the potential impact of a disaster - and ideally prevent it happening in the first place.

Here are a few ideas to consider:


1. Plan
It's essential to plan thoroughly to protect yourself from the impact of potential crises since you may lack the resources to cope easily in a crisis.
Failure to plan could be disastrous. At best you risk losing customers while you're getting your business back on its feet. At worst your business may never recover.


2.  Identify a spokesperson
If the crisis could potentially impact the health or well-being of customers, the general public or employees, it may attract media attention. To ensure your company speaks with one voice and delivers a clear consistent message, a spokesperson must be identified as well as prepared to answer media questions and participate in interviews.


3. Collaborate
While there is nothing more important than forming a strong bond with your employees and clients, don’t overlook others with whom you should forge a relationship. This includes the local police department, community centers, and educational institutions among others.


4. Continuity
You should draw up a business continuity plan setting out how you will cope if a crisis does occur.
 It should detail:
- the key business functions you need to get operating as quickly as possible and the resources you'll need to do so
- the roles of individuals in the emergency
Making the most of the first hour after an emergency occurs is essential in containing the impact. As a result, your plan needs to explain the immediate actions to be taken.

5. Communicate with customers and suppliers
You do not want customers and suppliers to learn about your crisis through the media. Information on any crisis pertaining to your organization should come from you first. Part of the crisis communications plan must include customers and suppliers and how they will be regularly updated during the event.


No matter what has happened in the past, you never know what the future holds. At some point, you are likely to face a crisis. How and when you deal with this will determine what direction your company takes. I hope these suggestions help. Please let me know your thoughts: Gerry@polarisgroupmc.com

Business Management

Leadership Principles for your Business Success

Effective business leadership demands a captain of the ship, not just someone who's standing by the helm. Leadership is active, not passive.

Cool-headed, farseeing, visionary, courageous - whichever adjectives you choose, leadership is a winning combination of personal traits and the ability to think and act as a leader, a person who directs the activities of others for the good of all. 

But you can't be a leader just by saying you are. Business leadership, like leadership of any kind, needs to be worked at. 

Here are a few principles that merit consideration:

1. Create a Vision

Vision is essential to good leadership. Vision provides direction and without direction, there’s not much point to all that planning; your small business will still flail about. Create a Vision Statement for your business. You may wish to become the “Preferred” supplier in your field. To become the Preferred supplier in addition to offering high-quality, reliable products and services, you must provide a great customer experience. Preferred suppliers create a competitive advantage by servicing their customers better than their competition.

2. Plan proactively

The core of business leadership is being proactive rather than reactive. Sure, leaders are good in crises - but that doesn't mean they sit around letting crises develop. Leadership involves identifying potential problems and solving them before they reach crisis proportions. Good leaders analyze and plan and adapt their plans to new circumstances and opportunities.

3. Embrace a culture of continuous improvement

Share with your employees that your expectation is for them to continuously improve their part of the business. Ensure they have the needed resources to do their jobs and don’t micromanage them.

If your company doesn’t continually improve, it will fall behind its competition. Even though continuous improvement is led by the CEO and other senior leaders, it is driven by employees at every level within the company. 

4. Staffing

Businesses are as successful as the people working in it. Great leaders who created successful companies have one thing in common: they surround themselves with talented, courageous, loyal people. Hire people with good critical judgements who are unafraid of making decisions. Once you have recruited them, invest in their development through training, coaching and fair compensation.

Learning to be a leader isn't easy because it takes a conscious commitment and consistent effort to develop one's business leadership skills. The advantage for the business however can be immeasurable.

Please let me know your thoughts: gerry@polarisgroupmc.com

Business Growth

Keys to growing your Business

It is known that only half of new start-ups survive more that 5 years and only one third make it to 10 years.
In order to not only survive but grow, here are a few ideas you may consider.





1. Establish a value proposition
For your business to sustain long-term growth, you must understand what sets it apart from the competition. Identify why customers come to you for a product or service. What makes you relevant, differentiated and credible?

2. Define your target market with laser accuracy. 
Many businesses have drifted along and survived on low hanging fruit; perhaps it is time to refocus. Take a step back and define your market strategy. Where is your best bang for the buck? Are you headed for where the market is going? Imagine where you want to be in 3 to 5 years and what the business can become. Without this, you’re shooting blind hoping to hit the target.

3. Define your key indicators.
Changes must be measurable. If you’re unable to measure a change, you have no way of knowing whether it’s effective. Identify which key indicators affect the growth of your business, then dedicate time and money to those areas.

4. Focus on your strengths.
Sometimes, focusing on your strengths rather than trying to improve your weaknesses can help you establish growth strategies. Reorient the playing field to suit your strengths, and build upon them to grow your business.

5. Engage your employees and listen. 
Your employees can be a goldmine of ideas. They know your customers, your market, and your operations. Actively encourage them to come up with ideas to improve revenue generating operations, product innovation, cost cutting measures, etc., and listen to them. You’d be surprised at the level of ideas you’ll generate simply by asking. This also gives your employees a great sense of inclusion.

There are many other principles that could be added to this summary. I hope these have provided some suggestions that you find of interest. Please let me have your thoughts. gerry@polarisgroupmc.com

Business Start-up Management

Keys to Launching for Success

Business owners don’t often think about basic operating principles when launching a new business but here are a few thought starters to ponder on what fundamentals might help drive the business successfully.

1    1.  Plan for success.

A good plan increases your chance of success by defining objectives, framing costs, forecasting revenue and defining risks.

2    2. Measure risk

In early stages you can have an appetite for greater risk as there is lots of time to recover if you misstep. As the business and ownership matures perhaps a more prudent approach to risk taking is appropriate.

3    3. Management strength

A strong management group is critical. Entrepreneurs should have the confidence to surround themselves with strong people; this will pay dividends in productivity and growth of the business. Those owners who seek individuals who will follow and not lead will be constrained by their own failings.

4.   Communicate, Communicate, Communicate

Whether it is with investors, customers, co-workers, or business partners, you have to over communicate.

Listen carefully, communicate regularly, and try to be clear and concise.

    5. Be Respectful

        Treat others with the utmost of respect. Regardless of differences, positions, titles, ages, or other     types of distinctions, always treat others with professional respect and courtesy. Value every     individual for their unique skills and contributions.

6   6. Build a network

The activity of building a network of contacts within the industry and the local business community will be invaluable in the long term. Attending networking events and community activities can expand awareness of the business and expose potential future consumers to your products or services.

There are many other principles that could be added to the list; these should provide some input to how you operate your business. Please let me know your thoughts. Gerry@polarisgroupmc.com

Business Management

Key Leadership Traits for Business Owners

Are you a leader just because you own and operate a small business? No. Effective business leadership demands a captain of the ship not someone just standing at the helm. Leadership is active, not passive. Leadership is a combination of traits and the ability to think and act like a leader. Leading and directing the activity of others for the overall benefit of the organization.


Here are a few traits of strong leadership:

1. Plan
The core of business leadership is being proactive rather than reactive. Leaders are good in crises - but that doesn't mean they sit around letting crises develop. Leadership involves identifying potential problems and solving them before they reach crisis proportions. Good leaders analyze and plan and adapt their plans to new circumstances and opportunities.

2. Vision
Vision provides direction and without direction, there’s not much point to all that planning; your small business will still flail about. So if you don’t have one already, take your first step towards business leadership by creating a Vision Statement for your business.
     
3. Communicate
One of the best ways to avoid disgruntled employees and a dysfunctional team is to communicate clearly with everyone. Always let your workers know what’s going on and what you expect out of them. Also, give them insight into the bigger picture so they know your company’s overall goals and vision.

4. Don’t be afraid to make mistakes 
 You aren’t perfect. Nobody is. It’s impossible to run a business without making mistakes, but great leaders understand that mistakes will be made. That’s just part of being an entrepreneur. It’s how you rebound from those mistakes that really count.

5. Surround yourself with smart, talented people 
As a business leader, it’s important that you build a well-rounded team. You should understand your own abilities—your strengths, your weaknesses—and surround yourself with talented individuals who possess the skills you lack.

Learning to be a leader isn't easy because it takes a conscious commitment and consistent effort to develop one's business leadership skills. I hope these tips help develop that skill and contribute to greater business success. Let me know your thoughts. Gerry@polarisgroupmc.com

Business Management

Do's and Don’ts in Managing your Business

It has often been said that employees rarely quit companies. Instead, employees quit their managers or supervisors by leaving the company. Increasing positive and reducing negative managerial behavior will go a long way towards improving employee engagement.
When your talented employees are engaged, they are able to perform better and improve your business.
Here are some Do’s and Don’t’s to consider in order to get managers and supervisors started in focusing on ways to and improve manager’s performance.

1. Do Innovate – don’t rest on your laurels
             The most successful businesses are more innovative in a variety of ways.
            They offered new products and services more often.
            They adopted new technology more quickly.

2. DO what you say you are going to do when you say you are going to do it.
There is no better way to communicate the message that you are accountable for your promises and that everyone in your company should be accountable as well.

3. DO admit your mistakes…… 
...and take the blame for failures.

4. DO recognize your team.
You can never underestimate the power of simple recognition for a job well done.

5. DO smile and laugh.
Have some fun. But, be genuine; programmed fun and faked laughter is worse than doing nothing.

6. When appropriate, laugh at yourself; it will humanize you.

At the same time………

1. DON'T get angry.
   Getting angry is easy. Anyone can do that. Anger does not belong in your managerial kit bag.

2. DON'T be cold, distant, rude or unfriendly.
    Especially in difficult times, employees take cues from their managers and need to hear from        them. The team will judge managers by their action, moods, and behaviors, not by their intent.

3. Don’t rely on too few customers—diversify
    Many companies run into trouble at times when they lose a single major customer.

4. DON'T BS your team.
    This includes saying things that you don't believe in. This includes hiding information and            just plain lying. By the time each of us is in our early 20′s, we have all developed very well-tuned BS detectors.

5. DON'T avoid taking responsibility for your actions.
   You are the boss. As such, you are accountable and the buck stops with the boss. You are trying to develop accountability throughout your company. So, lead by example.

These are just a few ideas to help structure a positive working environment. I hope you share these with your team. Let me know what you think. gerry@polarisgroupmc.com

Business Management

Know your Competition

In order to compete effectively and outperform competition you need to know their strengths and weaknesses. Your product or service has to be unique or stand out against prime competitors.







To test your competitive intelligence; ask yourself:

1. Product mix
What products do you offer that competitors don’t offer? Is there a market void you can fill? A good competitive analysis will help determine best options.

2. Training
Are your employees as well trained to service customers as your competitor? Can your employees answer questions about your competitor’s products? Can you identify competitive weaknesses? Are you vulnerable in any way?

3. Promotion
Are you familiar with competitive messages? Check their websites, brochures and promotion material to understand their positioning and how it affects you. Does your competition spend more advertising and promotion that you do? How does that affect how you compete?

4. Supply lines
Do you know your competitors customers, suppliers and distributors? You need to know how strong their relationships are to know how you can compete most effectively.

Understanding your competition not only allows you to understand where you compete best but may offer the opportunity to collaborate in areas in which you do not directly compete. A competitor may be willing to refer customers to you if you offer a particularly unique product or service. This can only happen if you know your competition and develop a relationship of trust between you.

In the end use this knowledge to strengthen your own position and build your strategy and a place in the market.

Please let me know your thoughts. Gerry@polarisgroupmc.com

Business Planning

You Can Reap Benefits of Strategic Planning 

Strategic Planning is a process to produce innovative and creative ideas which serve as the core framework for the company and designing its’ future. It provides a road to follow for success.

Strategic planning can have an immediate impact on the business; here a few benefits than can occur.


1. Make your future happen.
It is the difference between being proactive or reactive. Not every situation can be foreseen but you can make decisions and react to changing market conditions with the end in mind.

2. Establish direction.
Clearly define the purpose of the organization and establish realistic goals and objectives which can be clearly communicated to employees.  Provides a base from which progress can be measured, employees compensated and boundaries established for effective decision making.
 
3. Make wise business decisions
How do you distinguish between a good idea and a great idea?  Without a clear vision of what you want to achieve, and a mission or purpose for doing it, everything seems like a good idea.  What project do you invest in?  How should you prioritize?  Having clarity about what you want to do, who you need and how to get there will focus limited financial and people resources.

4. Increased profitability and market share
Focused planning and strategic thinking will uncover the customer segments, market conditions, and product and service offerings that are in the best interest of your business.  A targeted approach to markets and opportunities will guide your sales and marketing efforts, distribution and other business decisions which ultimately may mean more profit to the bottom line and a stronger market position.

5. Unique differentiation:  avoid “me too”
Companies often get used to looking at their competitors and their best practices and then trying to duplicate them that it becomes harder to tell the companies apart.  They all start to look the same with less distinction in unique value.  Strategy means having a unique differentiation that sets you apart from your competitors.

6. Increased job satisfaction. 
Consistently one of the top reason for leaving a firm is the lack of job satisfaction.  People need to have a motivation to come to work and feel like part of the team.  Employees are often the greatest source for innovative ideas.  The purpose and meaning of work gives a new focus and reason to show up each day if they participate in developing the Strategic Plan.

I hope these ideas provide some clarity on the benefits of developing an overall plan.

Please let me know your thoughts. Gerry@polarisgroupmc.com

Business Management

Do You Have Time Management Issues?

Business owners and managers often struggle with managing time efficiently. There are many root causes for time waste that can be addressed to improve effectiveness of the business.





Here are a few thought starters:

1. Project assignments. 
Have you assigned the right person to the right job? An employee may appear to have a problem managing time but they may be in a role or doing a job they are not suited for.

2. Delegation. 
As owner/manager do you have poor delegation skills or do you not delegate in order to maintain control? The need to do everything yourself can dramatically impact your time management. Delegating is not abdicating.

3. Meetings. 
How many meetings held are really effective? A lot of time can be wasted in unnecessary or poorly organized meetings. Make sure agendas are prepared and followed.

4. Training. 
Do staff members need training to perform better? What appears to be a time management issue may be a training need.

5. Planning. 
Are the business’ plans well defined? If direction is unclear staff may struggle to know how to prioritize work activity. Make sure time is used to critique time used and avoid time wasters like email, calls, breaks and other non-productive activity.

These are samples of business issues that may mask what appear to be time management issues. There can be many others; examination of each may uncover root causes of poor productivity.

If you have thoughts to share please let me know.

Gerry@polarisgroupmc.com

Business Management

Start-up Challenges in Business

Starting a business is a big achievement for many entrepreneurs, but maintaining one is the larger challenge. There are many standard challenges every business faces whether they are large or small.






Here are a few challenges that face many new business ventures.


1. The Market
There is not a compelling enough value proposition to cause a buyer to actually commit to purchasing. Is this product/service “nice to have” or “need to have”.
The market timing is wrong. You could be ahead of your market by a few years, and they are not ready for your particular solution at this stage.
The market size of people that have interest and funds may simply by too small to support a viable business.

2. Starting without a plan:
Enthusiasm over a good idea is over-rated. An idea is only an idea and without a well-developed business plan chances of success are minimal. It is also very difficult if not impossible to raise financing without a plan.

3. Money Problems
The majority of small businesses that fail do so because of lack of cash. Often, this is because owners borrow based on their ideas of a successful business, instead of borrowing for a worst-case scenario. A start-up business owner needs to be optimistic, but often is too optimistic about seeing profits. Without adequate cash flow, slow sales or a downturn in the market can end the business before it has a chance to gain momentum.

4. Fatigue 
The hours, the work and the constant pressure to perform wears on even the most passionate individuals. Many business owners, even successful ones, get stuck working much longer hours than their employees. Moreover, they fear their business will stall in their absence, so they avoid taking any time away from work to recharge. Fatigue can lead to rash decisions about the business, including the desire to abandon it completely. Finding a pace that keeps the business humming without grinding down the owner is a challenge that comes early (and often) in the evolution of a small business.


5.  Trying to Do It Alone
A common problem for most entrepreneurs is the belief that they can handle all of the start-up’s operations by themselves. It may be a cost-effective way to run the business, but operating the entire business on your own may not be a wise decision or the best use of your time. Many small-business start-ups may not require full-time employees. But it's a good idea to have at least two teammates, a lawyer and an accountant, ready to help. With experienced, reliable assistance, you can avoid common business mistakes. When it is time to hire staff, be careful in your choices. Employees are a crucial component in the success of your business.

I hope these thoughts help you plan for a successful venture. Entrepreneurship is not for everyone. Please let me know your thoughts. gerry@polarisgroupmc.com

Business Management

Let’s Maximize Profits

Profits are the lifeline of small businesses. As your profits increase and become more predictable, your small business has a greater chance of surviving—and most businesses don't.
Most of the time, small business owners can't afford to wait for the results of long-term, large-scale changes to their business model.
As much as possible, if you want to turn a bigger profit as a small business owner, the quicker you can do it, the better.
The following simple changes can help you maximize your profitability right away.

1. Convert One-Time Clients Into Recurring Clients
There are many reasons why converting your customers into repeat clients can quickly   improve your profitability. Recurring customers tend to spend more and purchase more frequently than new customers.

2. Examine key performance measures 
    Falling sales, shrinking working capital, and rising costs are key indicators to monitor.

3. Manage your costs
    More effective purchasing can improve margins. Eliminate waste of materials and time.

4. Encourage Referrals
    If there's one marketing channel that can maximize your profits, referrals would be it.

5. Review sales to long term customers
   You may find out some customers are not as profitable as you thought.

In most cases, a combination of these measures will give a boost to profitability. Incorporate these measures into your business plan and review frequently.

Be diligent and execute, execute, execute.

I hope these suggestions help you focus on improving results. Please let me have your thoughts: Gerry@polarisgroupmc.com

Business Management

Want to be Quantum – Safe with Your Cyber security?

Cora Cybersecurity Inc is a company developed by our guest blogger, Joe Latouf.

Here is an interesting brief outline that should attract your interest.


Cora Cyber Security Inc. has pioneered Quantum Safe Cryptography. Current standards of encryption can and have been broken and when Quantum Computers become more commonplace a new standard of security will be needed.

Cora Cyber Security can provide QUANTUM SAFE CRYPTOGRAPHY TODAY. And it is UNBREAKABLE.

Cyber criminals cost the global community  over $700 billion annually.

CORAcsi has developed Quantum Safe Encryption that is:

• Fast – cyber hygene is an important consideration. When users do not have to wait for files/data, the temptation to “bypass encryption” is removed.

• Central Control – unlike decentralized peer to peer networking technology like “blockchains” Cora is centrally controlled. Ownership of the data/solution is well defined.

• Secure – both today and tomorrow. Let potential adversaries spend the time, energy and money to record your transmissions. Even quantum computers, when they mature, will not unCORAFY (decrypt) your information.

These are but a few insights into how you can strengthen your organization’s protection against cyber theft.

For a demonstration on how to secure your business, don’t procrastinate.

Call Joe Latouf, President, Cora Cyber Security Inc. today for a demonstration on this exciting leading edge technology.
Cell: 519-968-1338
Email: jlatouf@coracsi.com