![](images/top1.gif) |
|
|
The
One Piece of Paper That Drives Your Business |
|
|
|
![](images/2004-JanFeb/yellow_cfo.jpg)
|
Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax
Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
|
Website |
: |
www.cfoplus.net
|
|
|
![](images/top-end.gif) |
|
![](images/arrow-up.gif)
![](images/arrow-down.gif) |
Imagine lying on the beach, soaking up the rays
knowing that when you get back to the hotel there
will be one sheet faxed to you that will enable
you to know – at a glance – how your company is
performing while you are away on vacation. If
you are like many busy entrepreneurs who know
all too well the reams of paper that fly through
your office at any given time, take heart. This
could be your reality.
When you step behind the wheel of your car, all
the vital information is right in front of you.
Indicators of speed, fuel consumption, oil level,
temperature gauge and RPMs allow you to avoid
unnecessary disasters such as running out of fuel,
overheating the engine or stripping out the gears.
Other information allows you to plan for the short-
or long-term future. You check the odometer to
plan for buying your next car and rely on your
maintenance records to ensure you maximize the
care of your investment.
Your business is much like your car. And, like
a car, all the information you need to keep it
humming like a top race car can be condensed down
to one sheet of paper. As the driver of your business,
what information do you rely on a daily basis
to drive your business?
For decades, business owners have accepted that
the mountains of paper that stream into their
offices are required to stay on top of their businesses’
performance. Now, we know that this is simply
not true. Success leaves clues and those clues
are found in your company’s Key Performance Indicators
(KPIs).
These indicators allow you to know how well your
business is doing – at a glance. This means, that
one sheet of paper can help you drive your business
more profitably and efficiently than actually
wading through every figure in your financials.
In essence, these indicators and performance drivers
allow you to know which areas need attention,
which areas are running at top performance and
what you can do to maximize your resources to
attend to both. Of course, like the odometer on
your car, the historical documentation you currently
are managing still offers you valuable information
for other decisions you may make, including selling
or planning for succession.
Each business, regardless of the industry, has
a unique set of key performance indicators (KPIs)
that allow business owners and executives to strategically
manage the company’s operations. In today’s fast-paced
business world, it’s critical to leverage your
time whenever possible. If you could look at one
sheet of paper each day and know – without a question
of doubt – what needed to be tweaked to improve
performance, would you?
In short, this one sheet of paper – also called
a “Performance Dashboard” (much like the dashboard
on your car) – allows you to put the power of
performance to work for you. You can easily pinpoint
trends, evaluate available options, determine
solutions and maximize your opportunities. You
will quickly become proactive and, with strategic
action, you can realize vast improvements in performance.
An effective dashboard condenses information into
an easy-to-use format. It offers information in
a way that is meaningful to you, the business
owner, and connects to other information that
can be used for short- and long-term planning.
Some other items that may be on a typical dashboard,
include:
• |
Revenue
& Gross Profit for the last three years
and rate of change for each. |
• |
Revenue
& Gross Profit to date and current month. |
• |
Projected
revenue for the remainder of the year. |
• |
Revenue
per employee and corresponding headcount. |
• |
Average
$ sale (historical versus current). |
• |
#
of active customers, # of new customers &
# of lost customers. |
• |
#
of customer leads and conversion rates (historical
versus current). |
• |
Net
working capital (historical versus current
period). |
By developing a customized dashboard, you can rev
your engine only in the areas where it will be most
beneficial. To learn more about building your one-page
dashboard, give us a call today. We can put you
on the road to increased performance!
|
|
|
|
|
|
Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax
Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
|
Website |
: |
www.cfoplus.net
|
|
|
![](images/top-purp-end.gif) |
|
![](images/arrow-purp-up.gif)
![](images/arrow-purp-down.gif) |
As
any successful entrepreneur or professional
understands, it’s not only what you know,
but who you know that drives your success.
Gaining referrals is a logical step for many
people who want to move their businesses to
the next level. Referrals are often a critical
component of most companies’ sales and marketing
programs.
Recently,
I talked to a new sales professional that
played everything by the book. From greeting
the prospect with warmth and heart to asking
each one for at least three names of individuals
he or she thought might be interested in learning
about the services she offers. While the prospect
she met with did not buy her services, one
of the three individuals that prospect gave
her did. This Sales 101 tactic paid off handsomely
with a one million dollar deal in less than
a week.
While
we are not here to say you will earn a million
dollar deal inside of seven days, it’s important
to keep referral basics in mind when you want
to add to the bottom line.
Follow
the Golden Rule. Do unto others as
you would have them do unto you. When it comes
to referrals, it is important to reciprocate
the gesture, but keep in mind that quality
is just as important as quantity. Just as
you would not like to waste time with a poor
prospect for your business, don’t fall into
the trap of referring for referral’s sake.
Take your time and learn what a good prospect
is and then be diligent about referring those
people to your contacts.
Get
creative. Each person is motivated
by different things. While a “finder’s fee”
is motivating for one person, a sincere “thank
you” may be just as motivating for another.
Think of creative ways to encourage colleagues
to refer business to you. From posting a list
of referrals in the lobby of your office to
printing them in your newsletter, creative
ways to encourage referrals are abound. These
types of tactics work because they remind
others that you welcome referrals and that
you reward their actions by publicly thanking
them.
Be
sincere and appreciative. A handwritten
note or a personalized email can be just as
sincere as a thoughtful phone call. Sincerity
shines through in the smallest of gestures.
When thanking others for their referrals,
be sure to ask what you can do for them in
return. More often than not, the person asks
for nothing in return, but generally will
not forget that you asked.
Ask
and ye shall receive. Sometimes people
have no idea you are looking for more business.
As crazy as this sounds, it is true. Most
business owners who actively ask for referrals,
receive them. One way to keep referrals front
and center is to put a referral plea on the
back of your business card. Another way is
to thank people for referrals by printing
it on your letters. A simple statement such
as, “We appreciate your referrals” is all
it takes to convey your message.
Deliver
value. The best time to ask for a
referral is when you are delivering value
to your client. Ask the client if they are
happy with the service or product you have
provided, and then follow up by asking if
they know two or three people who like them,
would appreciate the way you’ve delivered
on your service promise.
Make
an offer. Some companies send thank
you gifts such as wine baskets or company
clothing. Others offer free services, free
product or other extended services for referrals.
Do what fits your company and referral sources
best.
Referrals
are one of the easiest ways to tap into your
loyal customer base. Put your creative thinking
cap on to garner the referrals you deserve!
|
|
|
|
![](images/top1-blue.gif) |
|
|
Plan
Now to Take Advantage of 2004 Tax Breaks |
|
|
![](images/2004-JanFeb/blue_cfo.jpg)
|
Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
|
Website |
: |
www.cfoplus.net
|
|
|
![](images/top-blue-end.gif) |
|
![](images/arrow-blue-up.gif)
![](images/arrow-blue-down.gif) |
Ever since the May 2003 tax
legislation hit the airwaves, it seems that
most business owners have been obsessed about
whether or not to buy a heavy vehicle (to
take advantage of the full tax break, the
vehicle must weigh more than 6,000 pounds).
With the new tax laws, it is more important
than ever to plan to take advantage of tax
breaks. Some of the changes in the law bear
a Cinderella-like quality in that they revert
back to previous limits.
Here, we cover some of the more general time
guidelines on tax planning issues, but there
are many more to consider, so be sure to call
your accounting advisor to discuss your plan
of action. Use this list to begin implementing
tax-saving strategies that will contribute
to minimizing your tax bill.
• |
Put
appropriate retirement vehicles in place.
For sole proprietors, a fairly new retirement
vehicle called a sole 401(k) offers a
place to build a nest egg while also offering
a soft place to land should you need to
borrow against the funds. Different than
a Simplified Employee Pension, the sole
401(k) allows owners to divert much more
than a SEP. There are distinct limitations
on who qualifies for a sole 401(k), but
for those who qualify, this can be a beneficial
way to save for retirement.
|
• |
Selecting
the best entity for your business.
Create your multiple-member LLC or corporation
prior to the beginning of your business's
tax year in order to take advantage of
your selected form of business organization
for the entire tax year. If you wish for
your business corporation to be taxed
as an S corporation, make that election
anytime during the tax year prior to the
year the S election is to begin, or by
the 15th day of the third month of the
tax year to which the election is to apply.
Note: There are extension rules, but they
are not automatic, so make your election
on time!
|
• |
Put
capital equipment into service for maximum
tax savings. In order for capital
equipment to be eligible as a tax deduction
(either using depreciation and/or Section
179 tax laws), you must purchase and place
the equipment into service in your business
prior to the end of the tax year. So,
to take advantage of saving on your 2004
taxes, purchase equipment by December
31, 2004.
|
• |
Put
your kids to work. Many business
owners realize they can pay their children
to work for the business, but many try
to pay their kids a lump sum at tax year
end. The best way to hire children is
to hire and pay them throughout the year,
as money is earned. Pay your children
when they perform legitimate work in your
business. If you planned on giving them
money anyway, this is a great way to give
them wages that are tax-deductible to
your business, tax-free to them (up to
the $4,750 standard deduction), and you
still get to claim your children as dependents
on your personal income tax return.
|
• |
Take
advantage of funding options for retirement
plans. In some instances, you
can gain another nine months to fund your
prior year’s retirement plan. For instance,
if you want to put $8,000 in a SEP, you
have until the individual tax return filing
deadline to fund this. That means you
could designate the $8,000 for the prior
year’s tax return and not pay the $8,000
until October 15 of the current year,
which is the same time you would file
your individual tax return. This does
not mean that you can avoid paying Uncle
Sam on April 15 if you have a tax liability.
Keep in mind that if you have a tax refund
due, you will not receive it until you
file your tax return.
|
• |
Make required
business estimated tax payments on time.
Despite minimizing your overall tax
burden, you still need to ensure that
you make quarterly estimated tax payments
on time. It doesn’t make sense to spend
time saving money only to pay more in
the form of penalties.
|
In
addition to business tax planning, company
owners also have a myriad of individual tax
breaks to consider as well. If you aren’t
sure where to start for 2004, call us today
and we will put you in touch with a tax planning
consultant that can help minimize this year’s
tax liability.
|
|
|
|
|
![](images/2004-JanFeb/green_cfo.jpg)
|
Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax
Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
|
Website |
: |
www.cfoplus.net
|
|
|
![](images/top-green-end.gif) |
|
![](images/arrow-green-up.gif)
![](images/arrow-green-down.gif) |
Every person from every walk
of life has 24 hours in a day to accomplish
all that he or she can. As any successful entrepreneur
or executive will attest, the art of delegation
can dramatically increase productivity at the
most critical level.
While most business owners and executives know
they should spend time in areas that will deliver
maximum return on invested time to business
operations, many of the most well-intentioned
people wind up focusing on what is priority
– not what actually improves profits or productivity.
This syndrome of working “in” your business
rather than working “on” your business is common,
yet there are many ways to proactively take
charge of your time. One is learning to systematically
delegate tasks that can be performed by someone
other than the chief decision maker.
The art of delegation follows these eight steps:
1. |
Eliminate
before you delegate. Some tasks
are not necessary. Before making your
list of tasks to delegate, make a list
of those you can eliminate entirely. For
instance, if you are filing paper documents
that you have electronically filed elsewhere,
and these paper documents are not required
for legal reasons, you may be better off
eliminating this task.
|
2. |
Plan
your delegation. Make a list
of routine tasks that do not gain value
by you performing it. Easy tasks often
stay on busy owner and executive desks
because they are quick and easy to perform.
Systematically delegate to-do items with
your overall schedule in mind. Do not
haphazardly give out tasks without knowing
what you hope to achieve from delegating
these duties.
|
3. |
Set
realistic standards. Not everything
has to be performed 100 percent perfectly.
While your standard may be very high,
consider a lower, yet acceptable standard
for tasks that can be performed by others.
For instance, if you can perform a task
in 15 minutes, but it takes another person
20 minutes to do the same task and the
result is the same, is your time better
spent elsewhere?
|
4. |
Assume
others enjoy responsibility.
Many high-achievers assume that others
do not enjoy taking on added responsibility
or that others simply will not take the
job seriously. In many instances, this
thinking is not true. Look for others
who perform their duties with a similar
work ethic and begin delegating appropriate
tasks.
|
5. |
Set
clear expectations. Once you’ve
identified a person you trust with task(s),
be sure to be clear in your communication
of what your desired outcome is. People
often want to succeed, yet when left to
their own judgment can fall short of your
vision.
|
6. |
Let
freedom ring. While you may have
been doing a task for many years, a fresh
perspective may offer a faster solution
or a new insight on an old issue. Give
those that you delegate to the freedom
to offer solutions that may save your
company time and/or money.
|
7. |
Pay
the price. Invest short-term
time in training to gain a long-term increase
in productivity. While there are associated
opportunity costs related to delegation,
the long-term payoff can significantly
pay you back.
|
8. |
Know
your role. Delegation means that
others will take duties from you to perform,
but it doesn’t mean that they assume full
responsibility without some type of follow-up.
Continue to manage the process at arm’s
length and allow all parties to do their
share of the work. |
When it comes to delegation,
keep your eye on the real prize. The ultimate
goal of delegation is to free up more time for
you to spend on higher level activities that
will, ultimately, add to your bottom line. If
delegation means improving processes to make
it easier for all involved, consider the big
picture before making your final decision. As
performance management professionals, we can
help streamline processes for improved productivity
and profits. Give us a call today to make 2004
your best year yet.
|
|
|
|
![](images/top1-grey.gif) |
|
|
Economy
Not Treating You Well?
|
|
|
|
![](images/2004-JanFeb/grey_cfo.jpg)
|
Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax
Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
|
Website |
: |
www.cfoplus.net
|
|
|
![](images/top-grey-end.gif) |
10
Recession-Defying Tactics to Put You Back on Top
By Michael E. Gerber |
![](images/arrow-grey-up.gif)
![](images/arrow-grey-down.gif) |
Define
Your Strategic Objective
Define your vision of the business as it must
be in order to achieve your Primary Aim--your
vision of what the purpose of your life is.
Your business should serve this vision. Your
Strategic Objective is a statement of what
the business will look like when it's done.
It is this vision that will keep you focused
Define the Results You Want
A good economy offers some slack. In a shrinking
economy, the fundamental questions don't change,
but your intensity of focus must increase.
You must have clearly defined results to keep
you on track.
Engage in Strategic Work
Getting the results you want through other
people is key. Strategic Work is most critical
during times of recession because your business
must operate at peak efficiency.
Systems, Systems, Systems
Establish and implement systems for every
aspect of your business. Especially important
in times of recession are systems for comprehensive
financial reporting. These will enable you
to make wise decisions regarding cash flow,
and to avoid reckless spending.
Quantify Everything
You must thoroughly understand the exact,
quantified impact every system, process, initiative
and innovation will have on your business.
How many new clients do you need to cover
losses? What can you do to trim variable expenses?
Is every product a viable income-producer?
Evaluate every aspect of your business in
terms of the contribution to the income and
value of your company.
Client Acquisition
Make sure you know exactly who your customers
are. Find the answers to the following questions
too, and act upon that information: What is
your product in the eyes of your customers?
Are your Client Acquisition (Marketing) methods
consistently effective on a daily basis? How
can you more efficiently communicate your
message to more of your Target Market? Where
can you strengthen your follow-through with
your aftermarket and referral programs?
Client Fulfillment
Remove or find ways around any barriers preventing
your customers from getting what they need.
Always keep your promises to your customers
in the most cost-effective manner possible.
Leadership
As the owner, your leadership is pivotal.
Think about what you can do as the leader
of your company to foster and enhance an awareness
of your vision in your employees. Consider
well-structured, regularly-scheduled company
meetings as a means for creating a stable
and cohesive work environment.
Seek the Truth
Diligently dig down to the truth about your
business. Now more than ever, you must think
with clarity and purpose, and make the necessary
adjustments to survive--even thrive--in a
challenging business environment.
Listen, Learn, and Innovate Whenever Possible
Keep your eyes and ears open. You never know
where the next great idea is going to come
from. It is important that you don't let the
bleak economic environment prevent you from
innovating. Innovation may very well be more
crucial now than ever before!
Michael Gerber is chairman and founder
of E-Myth Worldwide. He reminds you that the
opportunity is to go to work ON your life
not IN it, and in the process to experience
the sweet, radiant, extraordinary joy of the
fully-lived moment. His Web site is www.emyth.com.
|
|
|
|
|