Archive for the ‘Difficult Economy’ Category

Health Care Reform – How to Sift Through It and Understand the Rhetoric

Thursday, February 11th, 2010

This is a long one, but it should provide you with brain food for the current health care reform debate.

Those of you who know me know that I am direct, straight-forward and try to cut through the fluff and get to the point.  That’s why I have moved on from corporate America where the politics and bureaucracy stifles momentum.  When I read about health care “reform” and see the maneuvering, it makes my blood boil.

A few weeks ago, I was reading Newsweek and came across an article about health care reform.  The graphic introduction summarized what to expect:

▪      You will be required to buy health insurance
▪      Exchanges will provide affordable plans
▪      You cannot be denied coverage based on a pre-existing condition
▪      “Cadillac” plans may be eliminated
▪      Your kids can stay on your insurance longer
▪      Costs will be capped
▪      The government may help you pay your premiums
▪      Medical drug benefits will improve
▪      Riskier customers cannot be charged astronomical premiums
▪      Medicaid will service more people

Well, it sure sounds like a little something for everyone. It’s a program all right.  There is what I will call a “consumers bill of health care rights” but, there is nothing really about reform.  And, reform in my books includes accountability.  Accountability by the vendors, providers AND patients.                                healthcare reform

I spent some time in the benefits area of health care and still get Employee Benefits News, a publication that does a good job of presenting various issues and a range of views.  I found the following article in the December 2009 edition.  Health care reform in six steps – well, not maybe steps, but definitely what needs to be fixed and the stakeholders of accountability.

What does this have to do with SMART business?  Hmmmm….you tell me.

A fix in six – Six steps to achieve cost-effective health care reform

By Christy Yaccarino
From the December 2, 2009 issue of Employee Benefit News  located at

Much has been said about how best to reform the U.S. health care system. Yet, for all the opinions and proposals, I haven’t seen one that truly makes sense.

There are pieces of each proposal that are great ideas, but we have to take those pieces and put them together to formulate a plan that makes sense. Most politicians don’t fully understand the health care system and the staggering costs that employers face year after year as they cover their employees.

Yet most employees, and most Americans overall, are happy with their health care – they just want it to cost less. It’s possible to control costs while keeping the employer based health insurance model in place by following my six steps to health care reform – six steps that don’t total anywhere near the $1 trillion pricetag of current proposals….


Tags: , , , ,
Posted in Difficult Economy, SMART Business, Staff Development | Comments Off

When Was the Last Time You Tapped “The Rolodex”?

Friday, November 20th, 2009

Start with your Rolodex AND Call on Others

It costs more money to acquire a new customer than it does to retain an existing customer; if you want to increase sales, start with your address book. Are there more services or goods you could be selling to current customers, or have you come up with any ideas on how to offer them creative solutions to reach their business goals? Can they refer you to any other businesses or individuals who may need your services? Set aside a half-hour a day to check in with lapsed customers. Are there new products or services you can offer them? Are you now in a better position to offer better prices, services, or quality than your competitors?

And, when you reach the end of your Rolodex, try tapping a good client. When was the last time you called a good (reference-able) client and said: “Mark, this is Kathy. Will you do me a favor? Can you go through your Rolodex and give me 10 names and numbers of people you recommend that I call to introduce my services?” How can they say “no”? You will find that most people want to help.

When SMART Business Matters, all you need to do is: Just Ask

Tags: , ,
Posted in Difficult Economy, SMART Business | Comments Off

Steering The Ship For SMART Business

Monday, August 10th, 2009

KMA Photo by Image Craft of Chicago 006On the field, courts, or in the office, successful “coaches” are getting more notice and may very well be their institutions’ “most valuable players.”

In the small to mid-size business, that means the entrepreneur or general manager takes the role of coach.  And, it is the most important role you have within the organization. You lead the charge by setting the example.

Winning Ways

As a manager or owner, it is important that you coach your team to success. Coaches may take different approaches to assembling, motivating, and running a team, but they also share certain habits. They have the ability to create a strategy and set short- and long-term goals and energize the team to strive to accomplish them. Coaches assess, communicate with, and recognize their employees. A successful coach can be the edge a team needs and the difference between winning and losing—whether in sports or in business. To infuse winning ways in your team, put on your coach’s hat, and fire them up to help them make the most of their skills.

Strategize for Success

A good coach has a solid game plan—one that has been well thought out and detailed but not so rigid that it is never altered to meet unexpected problems and changes in the marketplace. The competition is always shifting, and—to a degree—your plan should track the shifts. As coach of your team, it is vital that you share with your employees your vision for your business and your action plan. Be sure everyone understands the goal and that you and your team remain focused on it.

Assess Individual Strengths

Assess the strengths of each of your employees and give them roles they can accomplish and that will also provide professional growth. Consider each employee’s demonstrated and transferable skills as well as skills requiring improvement. Don’t discount an employee’s enthusiasm and willingness to take on a new challenge. Also, learn the individual goals of each employee. The more you know about your employees, the better you will be able to fit them into your game plan.

Encourage Professional Development

Providing employees with proper training to learn new skills and improve on their abilities is important. For entry-level employees, that may mean showing them how you want them to perform crucial tasks. For management, focus on expected results and negotiable and non-negotiable actions. Cross-training employees for various roles can be a win-win: a well-rounded employee becomes more of an asset to your business, and new experiences allow an experienced employee to stretch her comfort level, cultivate new proficiencies, and feel better about her work.

Recognize Positive Behaviors and Actions

Managers are often so focused on catching the negative that they forget to reinforce the positive. As coach of your team, it is important that you recognize achievements and efforts when an employee exhibits positive behaviors or performs a task well. This encourages those actions to continue in the future and provides a blueprint for further success.

Communicate, Communicate, Communicate

Good coaches communicate well on a number of levels. Their expectations and directions are clear and tailored to each individual. They often alter their coaching style to get the best out of each employee. Their ability to individualize communications often fosters a greater rapport and understanding between coach and player. Effective communication should not be limited to meeting time. To begin to build that rapport, provide immediate feedback regarding problems or successes, pass along your knowledge where appropriate, and solicit ideas and opinions. Be sincere in your actions and encouraging in your words.

In these days of challenging business dynamics, your team needs to be on top of their game.  It takes a good coach to get the best out of each individual and to assimilate their talents so that the strength of the team is unparalleled.

How are you measuring up, coach?

Posted in Difficult Economy, Leadership, Small Business, SMART Business | Comments Off

Stop reading the bad news newspapers – There IS Business to be conducted!

Monday, August 3rd, 2009

Yes, it’s a tough economy.  Yes, the news is still gloom and doom.  Yes, the unemployment rate is high.  Yes, consumer and businesses alike are spending less.

But guess what?

Yes, over 85% of the population IS employed.  Yes, the stock market is starting to rebound.  Yes, people are spending money on items that they perceive of VALUE.

AND, THERE ARE BUSINESSES THAT ARE HAVING THE BEST YEAR OF THEIR EXISTENCE!

Amist all of this negativity, there are SMART, practical business people who are doing well.  While they aren’t shouting this from the rooftops for fear of being labeled among other things, a braggart, the fact is that SMART business people have protected their businesses by budgeting wisely, keeping a close eye on expenses, identifying new target markets, holding employees accountable for their areas of responsibility, focusing the entire organization on taking care of their customers, and adapting to market change.

The SMART ones are investing.  Yes, investing.  They are investing in marketing.  How on earth can you expect people to buy from you, if you don’t communicate with them?

For the B-to-C companies, it’s relatively easy.  Identify your existing and target markets, develop a plan AND a message, and move forward.

While it’s a little trickier for the B-to-B crowd and requires more planning, it can and IS being done.

It’s not just about having a sales guy or gal beating the streets.

It’s about keeping your company top of mind and front of wallet.

You do that through marketing :

Exposure → recognition → leads = $ales

Advertise. Advertise. Advertise. Your first reaction in a slow economy might be to cut back on advertising, but can you really afford to go unnoticed? Don’t abandon your marketing efforts. Instead, look for ways to get more bang for your buck. Your printer can offer cost-saving approaches for marketing pieces and direct mail and might match competitors’ rates. Radio, print, and TV sales representatives may be more willing to negotiate prices for frequency. Try alternative online marketing channels such as email marketing, blogs, and mobile advertising. Deliver presentations to community business or social groups, or arrange to offer an adult education class at a secondary school or local college for free or a small fee. Speaking can be a great way to build business recognition, establish credibility, and show your community how much you know.

Review your budget. Keep on top of your expenses. If money is tight, it’s time to cut non-essential expenses from your budget in order to ensure you have the funds necessary to pay the utility bills, make smart inventory purchases, or buy that necessary software update. If you need to expand your advertising to woo more customers, look for other areas in which to make budget cuts to free up the necessary funds. If you do have extra capital available, this may be a great time to expand your business and divert extra funds into new endeavors or a new niche to gain a competitive edge. Since other businesses may be offering deeper discounts to increase sales, it may be the right time to make a major expenditure that will help you to pull ahead of your competition in the long run. And make sure your staff with spending authority know the plan and your priorities.

Keep on top of accounts receivable and payable. Losing track of invoices? Make sure your 30-day terms are not being stretched out to 45 days or longer. Set limits on the amount of credit (if any) you are willing to extend a non-paying or new customer. Pay your bills within the proper time frame to avoid incurring extra charges, but don’t pay so early that you limit your cash flow.

Take a look at your bottom line. If your customer base is feeling the pinch and your sales are declining, raising prices can be a difficult step to take. However, if your expenses are skyrocketing, you will need to make changes in your purchases and/or look for ways to pass part of those costs on to your customer. Another tactic may be to market to a more affluent customer base or to focus more efforts on a particular niche of your business that brings you the best return. Consider charging extra for your extras, similar to the way hospitals charge separately for the tissues, water pitcher, etc.

Consider taking out a loan. Whatever you do, avoid racking up high interest credit card debt. If you’ve got a solid bottom line but are hitting a bit of a dry spell, talk to your local bank or government-sponsored loan agency about taking out a business loan. Although it is more difficult to secure a loan in a tough economy and loan applications will be scrutinized more carefully, it may be the right thing for your particular situation. As always, ask your accountant, local government small business agency, or other knowledgeable financial professional for advice and help in putting together, or revising, your business plan.

It’s Up to You. You can choose to sit on your hands and mope, or worse, talk about how bad things are.  I have chosen to do a thorough assessment of my business.  We are expanding services to meet the ever-changing needs of our customers.  And, we are taking our own advice and marketing to prospective customers.  (A giant leap for an advisor who has always worked through referrals.)  As I see it, tomorrow is a new day. I can choose to be part of it by spending it wisely, or I can chose to hide under the covers.  I relish the challenges of each day.  What about you?

Posted in Difficult Economy, Marketing, Small Business, SMART Business | Comments Off