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