Archives 2010

Protecting Your Products From Copycats

A friend sent us the attached article which was posted in USA Today on Monday September 20th. The main concept of the article is focused on protecting your products from copycats. While this topic is directly relevant to those of you who develop, invent and create new products, the article has some very good “take-aways” for every type of business leader. At its core, the article identifies that the awareness of our competitors’ position in the market, as well as always staying connected to the wants and needs of our customers, is critically important to maintaining successful growth. We hope you enjoy the article and look forward to hearing your feedback.

Click Here for Article- http://tinyurl.com/26zr3oe

Maybe you need a Business Divorce

By Lori J. Frank

We are taught that all that matters is the sales to your customer. If you Start searching for customers and sell your product or services then you will be rolling in the dollars. This is true, IF and only if, the customer is paying you! If not, all you are doing is laying out cash to your employees and your suppliers. Most business is conducted by a handshake (either actual or electronic) and rarely is there a written contract. We mostly trust that we will get paid for our product or services.

Let’s say you and your customer have done business together for a period of time after you graduated from business colleges. At first you were getting paid as agreed, and maybe a little early. As time went on, you started to notice that the customer is not paying you as in days past. You call and ask the owner why it is taking longer to get paid than it had been. You are told, “Well we are in Michigan and my customers are taking longer to pay me”.  Is that the truth or is my customer using the bad economy as an excuse? It doesn’t matter. In either case, you should start by asking your customer for Cash On Delivery and talk to the customer about an arrangement to pay the past due invoices. Most good customers will be embarrassed but will talk to you about making good on the debt. If your customer won’t discuss a concrete plan to pay the past due invoices, then it may be time to get the divorce and cut that customer loose. Furthermore, if the checks from your customer start to resemble a basketball and bounce, then time is running out on getting paid.  This is a red flag and all deliveries should stop unless payment is guaranteed either by bank check or by a credit card.

Lori J. Frank is a contributing member to the Talan education blog series. LJ Frank PC was formed in 1996 and the firm specializes in the collection of debt. They can be found at www.collectionlaw-firm.com. LJ Frank PC is located in Southfield but covers the entire State of Michigan. LJ Frank PC is a member of:

Michigan Bar Association

Oakland County Bar Association

Michigan Creditors Bar Association

Commercial Law League of America

If your business is in a situation where your cash flow is being negatively affected by clients who are not paying as they should, contact Talan today to discuss your options for reducing your exposure to this unnecessary risk.

Does Your Business Need a Retrofit?

Reading through an article today on entrepreneur.com, we were reminded of how important it is as small businesses to always stay connected to the changing needs of our customers. The article stated, “Small business owners who have worked long and hard to create their businesses and offer customer what they want are often the most resistant to change.” Interestingly enough, the ability to quickly change and adapt to the needs of customers if one of the most important competitive advantages that small business has over large and even medium sized companies. Unfortunately, so many small companies ignore this fact and choose to stay in the comfort zone, rather than seek ways to use their agility to gain advantage in the marketplace. If you are looking for ways to capitalize on your natural competitive advantage, TALAN is here to help. Contact us today for your FREE BIZstrength Profile and find out how you can stand out! Enjoy the article… http://tinyurl.com/yfaxhdv

Plan Beyond Today

“I think there is a world market for about five computers” Thomas J. Watson, Chairman IBM 1943.

As a small business leader it is essential to not limit your company because of where the organization may be today. Any company that has ever become great started as a vision in an entrepreneurs mind.  That leader knew if the company were to be successful and realize its full potential, they had to think strategically and long term. Successful leadership requires developing a strategic vision, creating a realistic plan for realizing that vision, exciting the team to implement the vision, and overseeing its proper execution. Having a long term vision is essential for small business growth and sustainability. Participating in regular strategic planning sessions with key leadership within your company is the critical path for getting everyone in the organization moving the same direction towards the goal. Planning beyond today allows you to think big and to think beyond where you are, allowing you to plan for what you have the potential to become.

If you want to have a successful strategic planning session with your leadership team, contact Talan SBS today to find out more.

Demote Yourself

It happens far too frequently when we look at a small business; the owner is doing everything. The owner is often the person attempting to drive the company forward, yet is more often than not the same person who is holding the company back. Let’s look at a classic case. No names have been changed to protect the innocent because everyone in business is guilty of this situation. Bobs Widgets has annual gross revenues of about $525,000. They are growing and their target for 2010 is $750,000; an aggressive plan but completely within reason based on past performance. They have 3 full time staff members including the owner Bob himself. Bob has a vision for this year and is truly motivated to achieve his goal. However, when you talk to Bob about what his role is specifically within the organization you get the following answer- “well I wear many hats.” Bob continues “I answer the phones, make sales calls, design the new products, try to manage the other two staff people I have, and manage the books.” Bobs answer is a classic response and is the foundation of what we call The Hero Trap. Little does Bob know that unless he demotes himself from the “guy who does everything” that $750,000 goal is never going to happen. You see, to have healthy and sustainable growth within a company the owner/president cannot do everything and neither can any individual staff member. You cannot be the person who is driving sales while attempting to handle customer relations management as well as the person who is doing all the invoicing, working with vendors, managing payroll for which we recommend this blog post about how to outsource the payroll, etc. This type of environment will create dysfunction and will not allow the company to grow in a healthy and sustainable way. If you are in this situation you may want to know how to get out of it? If you are not in this situation, you may be asking how to avoid it? Warren Buffett had the right idea when he said “The most important thing to do if you find yourself in a hole is to stop digging.” It only takes you deeper. The best thing to do is assess your strengths, admit your weaknesses and demote yourself. Stop doing the things that distract you from that which does not move the company forward with the greatest value. Bring in people who have strengths where you are weak, this does not mean hire staff, and get a plan. Developing a plan is required to focus the company in the right direction and get it on the path towards managed growth.

To find out more on this and other principles to manage your business with greater effectiveness, contact Talan today for your FREE BIZstrength Profile.