How to Respond When Things Go Wrong – Part Two

Every company should be prepared to face problems. The important thing is to not expect them to happen and then react. The ideal thing is to think ahead and make plans that contribute to fixing the damage before it happens so that the damage to your business is minimal, even after a serious incident.

Here is the second part of a two-part series with tips on how you can respond when things go wrong in your company.

·  Be Ready To Respond: You should already have your emergency action plan (EAP) written by now, so at this point you want to make sure that your staff know about it. It is important that each one knows what is expected of one another when an emergency pops up. It doesn’t matter how big or how small the emergency is. In fact, it is vital that you do “test runs” every month to keep them fresh on emergency procedures. You should keep in mind that no plan is ever perfect until you put it to the test.

o   Here are some areas of training you should focus on:

§  Basic first aid

§  Use of fire extinguisher

§  Emergency equipment shutdown

§  Building evacuation procedures

§  Emergency notification procedures

§  CPR

·  Recovery Procedures: Once the first the steps are in the books, it is vital that you get back in the swing of things and get your business up and running again. Make sure you have a plan for how you will recover after a disaster happens. Think about these questions:

o   Will you need another location?

o   Are you able to obtain replacement equipment?

o   Do you have someone to clean up the business?

o   Is it possible to recover any lost data on time clocks or other instruments?

o   Can your staff get to work?

o   Will your workers be able to reach you?

o   Can your suppliers still get you the goods on a regular basis?

How to Respond When Things Go Wrong – Part One

No business is ever safe, especially a small business. In today’s economy, a business can go under in a heartbeat and not always because of financial woes. For instance, employees could be injured, important information may be lost due to computer errors, or even a natural disaster can destroy your factory, office, or working space.

While it’s impossible to be prepared for every disaster, thinking ahead and having contingency plans is always a good idea. Being ready for the unexpected can help you keep your cool as well as your business. Here are some tips for planning for the worst:

1.     Figure out everything that could go wrong. This is important because it tests the vulnerability of your business. This goes well past simple things like time clock software being broken and encompasses things like mass computer failure or integral machine break-down. When looking at the risk assessment you should keep these things in mind:

·       List all the risks or threats your business can face.

·       Determine how vulnerable your business is to these threats.

·       Start prioritizing the threats.

2.     Develop a strong business plan. This will be known as an “EAP”, or Emergency Action Plan, which will help deal with everything you listed in step one. Sometimes these plans will be set by law and, at other times, you will be responsible for setting up the procedures. Here are some tips to help you through this step:

·       Write a clear written policy of your company’s chain of command.

·       List the people who are responsible for assessing risks to property and people.

·       Include instructions on how to shut down any equipment you may have.

·       Record facility evacuation procedures.

·       Include forms needed or procedures required to report any emergency.

With some forethought, you and your business can be ready for any number of incidents or accidents. While it is impossible to prepare for anything, having emergency protocol set can help deal with the unplanned incidents as well.

How to Cut Costs and Be Efficient

As a business owner, you are probably constantly looking for ways to increase profits and increase business. At one point in time, you have most likely thought of cutting expenses to help boost profitability. Technically, it doesn’t matter if you’re having the best quarter in history because when it comes down to it, costs that are out-of-control will quickly eat up any profits that you gain.

Avoid going under by keeping a close eye on your expenses (you can use a business accounting tool). While cutting expenses can help greatly, be smart about what you cut. You don’t want to sacrifice efficiency for cost.

Here are some tips to being cost effective when making budget cuts:

• Try out a new telecom system. This can range from Internet to landlines to wireless providers.
• Enforce the “no splurge” business travel rule. This technically means that your staff cannot spend whatever they want when they travel. Make them accountable for what they spend.
•  Move your IT network to the “Cloud”. Whenever you have the chance to move digital files and other software off your computer to another place- do it.
• Cut back on overtime. Switching from a time clock that uses paper to a computerized time clock is a great move. It saves you money on multiple fronts.
• Earning vendor discounts using credit is smart. Early payment discounts offer by a selection of vendors can save you thousands of dollars a year.

Cutting your expenses should only mean one thing: you gain more profit. By viewing these areas, you will hopefully be able to maximize your profits without losing efficiency.

How to Decide on a Business Venture

There are many questions you need to ask yourself before making the leap into small business ownership. Whether you’re doing it to follow a dream or a passion, or simply because you’re done with punching the time clock, here are a few pointers on how to choose a business venture:

Know where your expertise lies. Once you know, it’s easier to decide the goods or services to offer, as well as who your target consumer group is. You will need to know where and how to reach these customers so that you can build a successful marketing plan to build and propel your business up and forward.

One way to succeed as a business owner is do something you love. Don’t just jump on the bandwagon of what is popular and in unless you honestly enjoy providing that good or service. If you see a product or service on the market and believe you have a way to make it better, jump on that idea and offer your new and improved spin on it.

Take your business seriously. Half-hearted efforts will get you nowhere and will cost you money in the long run. You will make money back if your business takes off, but without passion or interest in what you’re doing, you won’t have the motivation to register your business, pay taxes, and file as a business entity; all necessities for a small business to succeed.

Join networking groups and try to find a mentor. A mentor will be able to offer you advice and strategies to help your business thrive, while networking opens you up to business professionals who may be interesting in purchasing the goods you sell or utilizing the services you provide. Investors can also be found at networking events and through mentors, so don’t underestimate the power of getting connected!

Finally, be a time management guru. Starting your business while you’re still working a punching the time clock elsewhere means you will need to be frugal with your time and use it wisely to make every moment you are devoting to your new endeavor count. Additionally, you will still want to perform at full capacity at your current position until your new business takes off.

Tips for Making a Better Business Plan

As every entrepreneur knows, a business plan is crucial to success. Even if you've been in business for a while, if you haven't formulated a business plan there is no reason you can't start one now. A business plan is essentially a road map to your success. Think of it as a time clock to track the minutes you're spending to grow and market your business and the minutes you spend taking care of your current clients.

Your business plan doesn't have to be overly elaborate, but it should encompass the following points to make it viable and workable. Here are some items to incorporate into your business plan:

1. An executive summary. This should be your "elevator pitch" for your business. If you had to sum up in a few sentences or less the hows and whats of your business it would be what your executive summary sounds like. Use this section to offer investors, or to remind yourself, of why you believe your business concept is a compelling one and how it will propel you toward success. 
2. What is your business model? This is where you explain how your concept will generate money. 
3. What is your sales model? In this section detail where your customer base will come from to support your growth. What is your customer demographic? How will you find potential customers? How will you market your business? What kind of pitch will you use to spread the word? What medium will you use to market your business? What is your budget for marketing? Do you have an idea in mind of how large your market is? 
4. Analyze how many clients you will reach on a monthly basis and how much revenue they will generate for you. 
5. Income and expense projections. How much will you need to bring in compared to what your expenses are to remain viable? 
6. Will you need to hire employees that are able to perform tasks for which you are not experienced i.e., marketing, accounting, etc.

Regardless of whether you're looking for investor capital or to secure a bank loan, a business plan is a necessary part of a successful venture. Your business plan should also be a living document - one that you refer to frequently and update as needed.

Your business plan can help you not only retain current clients but can help you find new customers. Use your business plan to find new ways to build your business. If the information contained in your business plan has failed to meet the expectations and growth you originally hoped for take some time from your day-to-day business operation and revamp your plan to meet the needs of a growing and ever-changing market.