Five Common Business Challenges
Posted by vianova in Business Operations, Corporate, Corporate Social Responsibility, Finance, Process Optimization, Small Business on February 5, 2010
In working with small and middle market companies, I have discovered several common financial related issues with which they struggle. When I first start working with these businesses, most if not all of these issues exist. All of them are critical to their success in managing and growing their businesses. The good news is that with time and focus they can be rectified. In no particular order, here are five that I see most:
1. Lack of Timely and Accurate Financial Statements
In today’s business environment, decisions are made at a fast pace. Information is readily available via the Internet, yet internal financial information to improve the decision-making process is sadly deficient. Most business decisions have financial implications, and without this basic financial information, it may be a shot in the dark. Many times the financial statements are put in a drawer and never reviewed because the information is too old (not timely), the business owner doesn’t believe the information is correct (not accurate) or the financial statements support the preparation of the income tax return, not running the business (not operational). They usually only become important when the business owner needs to meet with the bank.
2. No Cash Management
As we all know from operating a business, cash is king! It is the common denominator for all businesses NO CASH = NO BUSINESS. Other than the current cash balance (most of the time determined by looking at the bank’s balance) most small businesses don’t manage their cash. Cash management includes understanding your business’s “operating cycle” (i.e. cash to cash cycle). To improve your “operating cycle” it is imperative you understand what it means, how to calculate it, and what influences it before you can improve it. Many times I will ask “what do you expect your cash balance to be in 6 months?” Most of the time they are fighting cash flow problems today and can’t think about the future past this week. Managing cash flow will provide a real sense of control over the business.
3. Poor Pricing Management
Setting the price of our products or services will drive revenues and just as importantly the “gross margin” for the business. Unfortunately, not enough time and attention is provided to this aspect of business. In working with small business owners, I find many have not revised their “pricing formulas” for some time, while others don’t really know their underlying costs to derive a sales price that provides profit. Many products are market driven because of competition, so it is imperative to know not only the direct costs but all costs necessary to produce a profit. Gross margin analysis by product line, products or customer is critical for small businesses.
4. Lack of Systems & Processes
Processes, whether documented or not, exist in all businesses. It is the way we perform the work necessary to produce our products or services. In most small businesses, the underlying processes to accomplish the work are rarely documented or reviewed as a whole (i.e. system). Developing efficient and effective systems and processes generally reduce costs and/or improve productivity. In businesses where there is a high turnover of people, documented processes are critical for training to ensure employees achieve higher productivity quicker.
5. Minding and Grinding Not Finding
Jerry Mills, founder and CEO of B2B CFO®, developed a simplistic organizational model for small businesses. He identified the 3 roles in small business as Finders, Minders and Grinders. Grinders represent the employees whose focus is about today. They generally work in the production side of the business. Most Finders start as Grinders. The Minders live in the past; their work is in the administrative, accounting, customer service or warranty departments. Minders are just as critical as Grinders to the success of the company and must be led. All Finders live in the future. They are the visionaries, innovators, and relationship builders. They are the passion and the drive for the business to grow and succeed.
The entrepreneur is the Finder and must stay in the Finding role. Unfortunately, as businesses grow the Finder gets pulled into the company and works in Minding and Grinding activities. Without a change back to the Finding role, the entrepreneur/small business owner severely limits the business’s ability to grow. In working with small business clients, they almost always identify with this organizational model.
As I mentioned at the beginning of this piece, these challenges for the small business owner can be corrected. Most of them are fundamental changes. As with most challenges and the related changes, awareness is the first step.
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Vianova guest blogger Grant Brisacher, CPA, is a Partner a B2B CFO®. B2B CFO® has grown to be the nation’s largest Chief Financial Officer firm serving small and middle market companies.
10 Lessons Learned In 2009
Posted by vianova in Human Resources, Leadership, Values-based Business, Workplace on January 12, 2010
Wow, what a year!
2009 has come and gone, and many of us are taking a huge sigh of relief. Going through one of the worst recessions in U.S. history will certainly take the wind out of your sails. But we appear to have weathered the worst of the storm. And while the economy might not rebound with the speed and vigor we would like, it at least appears to be heading in the right direction again.
So what did we learn from the trials and tribulations of the past year? And how can we apply those lessons going forward? Here are 10 things I believe that leaders need to do differently to position their businesses for success in 2010.
1. Get used to the likelihood there will be no normal anymore. The old business world that most of us knew and loved went away with the recession, and it’s not coming back. To adapt to today’s business realities, question all your beliefs and assumptions, get comfortable with uncertainty and adjust your expectations.F or most, the new ‘normal’ will be slow and sustained growth rather than a hockey-stick curve and it will continue to surprise us.
2. Break the rules. If you’re not breaking rules on a regular basis, your customers and markets have probably already left you behind. The new rule for today’s chaotic markets is to constantly challenge the status quo. Don’t automatically assume that what made you successful in the past will continue to make you successful in the future.
3. Recognize and minimize your “MSUs.” We all constantly MSU (make stuff up) about our company, industry and markets. During the strategic planning process, put everyone’s beliefs and assumptions out on the table and ask, “What do we think we know to be absolutely true about our customers, competitors and markets? Is it still true? If not, what has changed and how do we need to respond to that change?” Get data and question your long standing beliefs constantly.
4. Embrace social media. Embracing social media can be a real competitive advantage. In addition to instantly connecting you with customers, social media enables you to “mindshare” with industry peers, demonstrate thought leadership, recruit talent and more. Study the social media habits of your customers, and use the appropriate tools to make them part of your community.
5. Expect more transparency. With the advent of social media, you can no longer control public perception by limiting information about your company and products. When you withhold information, today’s bloggers, twitterers and forum posters will make it up for you. The next generation of market leaders will excel at using social media to create transparency and build trust with their key stakeholders.
6. Communicate to fill the void. Today’s employees are beset with doubts, uncertainties and fears about their jobs. If you don’t tell them what is going on, they will fill the void with rumors and misinformation, usually negative.Constantly let employees know where the organization is going and what your plan for winning is. In today’s world, you can’t over-communicate.
7. Encourage strategic thinking. Strategic planning involves a formal process whereby senior management peers into the future and charts a course of action for the organization. Strategic thinking occurs when the entire organization begins to act in concert with the strategic plan. Teach your people to anticipate opportunities and threats while managing the day-to-day tasks that fall within their scope of responsibilities.
8. Make innovation a way of life. Innovation needs to become an integral part of the way you do business, not just a one-time event. Constantly challenge the way you do things, even when they have always worked well.Strive to create new products, services and ideas that have real value for stakeholders. Look for different and novel ways to deal with ongoing challenges. Constantly seek to implement new and better ways of achieving results.
9. Slow down to go fast. In times of uncertainty, prepare to pause, focus and plan. Learn to anticipate the unanticipated by making scenario planning part of your daily routine rather than an afterthought when plans don’t pan out.Take the time to consider multiple perspectives and engage others who have diverse views. This may feel like slowing down, but will actually help you get where you want to go much faster.
10. Get back to basics. When everything around you diverts you into complexity, get back to basics.Make strategic planning a way of life in your organization. Use a strategic planning framework to drive what you do and where you focus your energies. Constantly check for internal and external forces that may impact where you’re going, what you need to do and how you need to do it. Organize your day around achieving your destination, and focus on informing, inspiring and engaging others in getting there.
Those are my top 10 tips for success in 2010. I’d love to hear what you plan to do differently going forward.
Here’s wishing you clarity, focus, and great success in the New Year!
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Vianova guest blogger Holly Green is the CEO of THE HUMAN FACTOR, Inc. and is a highly sought after and acclaimed speaker, business consultant, and author.
What would it take to make your company one of the top small or mid-size companies to work for?
Posted by vianova in Corporate Social Responsibility, Employee Engagement, Employee Volunteerism, Values-based Business, Workplace on October 4, 2009
For a little inspiration, check out the 2009 Top Small and Medium Company To Work For In America list. The Great Place to Work® Institute and the Society for Human Resource Management (SHRM) has released their list of the top small and medium size companies in the US to work for. Congratulations to Badger Mining of Berlin, Wisconsin for earning the # 1 spot in the Small Company (50 – 250 employees) category. Congratulations to Ultimate Software of Weston, Florida for earning the #1 spot, again, in the Medium Company (250 – 999 employees) category.
For a complete list: 2009 Best Small and Medium Company To Work For in America
Getting Creative: Start Small
Posted by sday in Corporate Social Responsibility, Employee Development, Employee Engagement, Workplace on July 14, 2009
As the economic stress continues to take its toll, businesses should stray from playing it safe. Settling into a comfortable routine puts a halt to any form of innovative thinking, and prevents surviving businesses from thriving.
Acceptance of new or “unconventional” ideas takes time. So before your company can fully embrace into its office culture creative thinking on a grand scale, consider integrating a few simple yet practical exercises that can be implemented immediately.
For the workplace
- Take a cue from the most basic and important Feng Shui* principle, and first clear the physical clutter in the office to create mental space for new business ideas. Store away, archive or get rid of idle or irrelevant paperwork, office supplies, equipment or electronic data (emails, folders, pictures, etc.) that tend to bog down production flow.
- Rearrange work areas to better suit the functionalities of work flow, contribute to energy-saving efforts, and improve the general aesthetics of your work environment.
For the employee
- Challenge your staff to write individual mission statements. It’ll be interesting to learn if their perspective aligns with yours or the business. Do some roles need to be redefined or reassigned?
- Allow employees to personalize their work stations where they can embellish with their own reading lamps, plants, artwork, floor rugs, or kitschy collections. Provide corporate guidelines on what’s appropriate.
For the staff
- Conduct quick, on-the-spot brainstorm sessions with your team to solicit ideas for product, service and production improvements. Limit the session to 30 minutes. The freshest ideas emerge when there are time constraints.
- Hold training sessions, conferences or meetings outside, if weather permits. Your staff will welcome the occasional change in scenery.
*Feng Shui is a Chinese philosophy that governs spatial arrangement and orientation in relation to patterns of yin and yang and the flow of energy.
Vianova guest blogger Shirley Day is a training and communications professional with a combined experience of 25 years in corporate and consulting environments.
Motivating Each Generation
Posted by vianova in Corporate Social Responsibility, Employee Engagement, Workplace on July 5, 2009
Create more respectful workplaces and make connections with customers of each generation by committing to understand where each generation is coming from. We have clues from generational research that tell us what is important and what motivates them.
What do we know about Traditionalists (ages 64-84)?
Traditionalists are frugal, known for purchasing national brands and choosing inexpensive options. They believe loyalty is earned. Motivated by safety, security and stability, they like conservative images and longevity. Known for communicating face-to-face, they appreciate direct conversation inside a company and word of mouth as a marketing tactic. Their handshake on a deal is as good as law. To optimize profits, maximize credibility and relationships.
How do you connect with Baby Boomers (ages 45-63)?
Boomers have mellowed with age and yet still continue to transform whatever they touch. Bouyed by power, prestige and process as motivators, they are concerned about image and keeping up with the Jones. They also appreciate the back-story.
They are becoming more holistic, spiritual, and are into living more simply after a wild ride of consumerism. They still value choice. The 60s have been reawakened, working into their love of a cause and being of service. They are ambivalent about change so do not introduce it too fast. To maximize profits, emphasize relationships and status.
What’s with Gen X (ages 29-44)?
Gen X is the don’t pussyfoot around generation. They appreciate direct communication and results. No need to warm them up. Just get to it. Gen X is a bit cynical and appreciates humor. They listen intently, get the point quickly and make their own decisions. They intensely dislike hype and are skeptical. They embrace and value technology as a lifestyle need.
Gen X works smarter and has better work/life balance than Boomers. They can say no . They want down time and will take it for themselves and their families. They like to create hybrid products and services that match what they need. To maximize profits, emphasize results and efficiencies.
How do you work with Gen Y (under 28 years old)?
Gen Y is all about cause, community and creativity. Using the newest and greatest technology is the way to their hearts. They will choose socially conscious products and services over those that are not.
Gen Y also values fun, freedom, friends and family. They want a say whether that be input or feedback. Unlike other generations who might have hoped for happiness, they expect it. They desire different experiences, stimulation and authenticity. They embrace diversity and see through race, religion and sexual orientation as a barrier. Isn’t that beautiful? To optimize profits, maximize relationships and uniqueness.
Vianova guest blogger is Sherri Petro, co-founder of Workplace Evolution. Sherri has been educating executives and managers on how to leverage what we know about the motivation of each generation to make more productive and profitable workplaces.
Transforming Ideas Into Impact: New Vianova Webinars
Posted by vianova in Event Management, Project Management on May 27, 2009
Vianova is pleased to announce the first in a series of webinars designed to help organizations improve performance while leveraging best practices in social responsibility. We begin with two project planning webinars. Click on the links below for details.
July 14, 2009, 10:00am - 11:30am PT
Project Planning Basics for Nonprofit Organizations
July 15, 2009, 10:00am – 11:30am PT
Small Business Project Planning Basics
For a list of upcoming complimentary webinars, visit Vianova’s Webinar & Training Calendar.
Deliver the Right Results – On Time and Within Budget
Posted by vianova in Employee Engagement, Event Management, Project Management on May 7, 2009
As a forward thinking leader, you know that your success depends on your ability to adapt to change while delivering the right results – on time and within budget. Not an easy task in today’s fast-paced, competitive business environment, with evolving customer demands, new competitors, and pressure to do more with less.
Do any of these experiences sound familiar?
You spent time and money on what you thought was a great idea, only to realize it’s not what your customers wanted.
You spend too much of your time putting out fires rather than preventing them.
Your competitor comes up with a brilliant idea – one you have been contemplating for a while. Ouch!
You spend all your time “in” your business rather than “on” your business.
If so, you are not alone. These are a few examples of common frustrations community service project leaders experience at one time or another. So, the question is: How can you eliminate these frustrations and keep up with all the demands?
Even if you can’t afford to hire a professional project manager, you can learn project management tools and integrate them into the way you run your business. Don’t make the mistake of assuming that project management is cumbersome, time consuming, and irrelevant. On the contrary, principles of project management include valuable and effective tools that yield exceptional results that are simple and easy to use.
The first important tool of project management is the simple “Project Plan.” Before you take another step, you must have a Project Plan that includes the following elements:
Goals: Define the opportunity to be seized or problem to be solved. Write your goals using the SMART method. (Are your goals specific, measurable, achievable, realistic, and time-bound?) Be sure to clearly identify all your stakeholders’ needs and expectations (i.e. customers, employees, etc.)
Deliverables: Create a list of things (items, features, services, etc.) the project needs to deliver to meet these goals. Specify how and when each deliverable must be achieved. Assess whether each deliverable is absolutely necessary to achieve your project goals.
Tasks and Schedule: Identify the specific tasks required, estimate the time required to complete, and who will carry out each task. Be sure to include your project team in estimating the work effort required to complete each task.
Resources: Define the roles and responsibilities of the individuals on your team.
Reporting: Define how you will report and track your progress and establish a mechanism to ensure your team is aware of all key milestones and work planned.
Risks: Identify the risks that may impact your project and how you plan to deal with them.
Your Project Plan is just one of the many simple project management tools and techniques available.

Targets experience distress, humiliation, anger, anxiety, discouragement, hopelessness, depression, burnout, reduced quality and quantity of work, lower levels of job satisfaction, increased absenteeism and turnover and in some cases even Post-Traumatic Stress Disorder (PTSD).