Sunday, December 18, 2011

Experts Weigh-in on Secrets to A Successful Small Busniess

All entrepreneurs face challenges in their business. But not all realize that information and communications technology offers affordable tools for better managing everything from inventory control and operations to accounting, human resources, communications and customer relationships.

Chris O’Donohue didn’t want to be like those other landscapers, driving around eyeballing sites and coming up with job estimates that might—or might not —make his company any money.

It wasn’t as big an issue when he started Great Canadian Landscaping back in 2000 with a single pickup truck and a few small contracts. However, when a contract is for a $200,000 backyard makeover, finding out that you’ve mistakenly underbid an estimate can cost you thousands of dollars.

“At first, I didn’t realize that technology could provide the solution,” says O’Donohue, who has built Great Canadian into a bustling year-round business in North Vancouver, B.C., with 30 employees and eight trucks running in the high season. “It has taken the guesswork out of estimating and made our operations more efficient and productive.”

All entrepreneurs face challenges in their business. But not all realize that information and communications technology (ICT) provides a range of user-friendly tools for better managing everything from inventory control and operations to accounting, human resources, communications and customer relationships.

Hunches can now be replaced with accurate information delivered in real time, equipping managers to make better decisions and improve their company’s performance.

Entrepreneurs understand the need to invest strategically. A 2010 survey by the Business Development Bank of Canada (BDC) found that most business owners plan to invest in new equipment, including ICT, as a way to improve productivity and remain competitive.

“ICT brings efficiency and speed to an organization,” says Jean-RenĂ© Halde, President and CEO of BDC. “It provides tools to better manage and analyze information about your clients, your finances and your operation. For most, highly functional websites have also become a critical sales channel.”

For Great Canadian, it was a bottom-line decision. Its estimating software takes into account overhead costs, the price of goods and other hidden expenses, ensuring that every job is profitable.

The company purchased a second software package to improve productivity and better manage its crews. Instead of clocking in at the office, O’Donohue’s crews are now clocked in at the work site by their foreman, who is equipped with a smart phone. They are also clocked in and out at lunchtime. Savings on unproductive time and overtime are huge.

“We were paying people for a lot of travel time that wasn’t necessary,” he says. “This software will save us about $130,000 annually in salaries. As an investment, it was a no-brainer.”

Great Canadian also uses GPS capabilities on each truck and smart phone to track crews in real time. If a customer calls to ask whether a job has been done, O’Donohue can tell him or her the exact minute that workers arrived at or left the site.

Despite the benefits, too many entrepreneurs put off ICT investments, fearing ICT is too complicated, too expensive or not what they need. Cost is usually the biggest deterrent until entrepreneurs realize that most solutions are now software driven and affordable for even the smallest companies. Some are even free.

“ICT and Internet-based solutions can be scaled for any size of company,” says Todd Madgett, Director, Small Business, for Cisco Canada. “With the advantages of new network and cloud-based services, and hosted and managed services, the cost of equipment that small entrepreneurs need to invest in is limited.”

Many entrepreneurs also worry about making a bad investment. Halde says companies can reduce this risk by first clearly defining their needs, and then taking the time to thoroughly investigate and evaluate the different ICT options.

“Talk to more than one vendor and other companies that have done this before. It also may be worthwhile to invest in some professional advice,” he says. “And be careful about buying the latest gadget. Cutting-edge technology usually is not for companies with limited resources.”

O’Donohue acknowledges it takes time and money to set up and implement ICT solutions, but says it’s not as expensive or complicated as entrepreneurs fear, and the returns can be significant.

“You will usually recoup this investment in a year or two. Even before then, you’ll see how it is reducing costs and making your operations more efficient,” he says. “It’s been a big factor in our company’s growth.”

BDC is the Business Development Bank of Canada. From over 100 offices across the country, BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs.

saverio manzo

Car insurance Ontario

Ontario car insurance

Toronto car insurance

Ontario car insurance
car insurance quotes ontario

Friday, September 30, 2011

Experts share secrets for managing a profitable, fast-growing business

All entrepreneurs face challenges in their business. But not all realize that information and communications technology offers affordable tools for better managing everything from inventory control and operations to accounting, human resources, communications and customer relationships.

Chris O’Donohue didn’t want to be like those other landscapers, driving around eyeballing sites and coming up with job estimates that might—or might not —make his company any money.

It wasn’t as big an issue when he started Great Canadian Landscaping back in 2000 with a single pickup truck and a few small contracts. However, when a contract is for a $200,000 backyard makeover, finding out that you’ve mistakenly underbid an estimate can cost you thousands of dollars.

“At first, I didn’t realize that technology could provide the solution,” says O’Donohue, who has built Great Canadian into a bustling year-round business in North Vancouver, B.C., with 30 employees and eight trucks running in the high season. “It has taken the guesswork out of estimating and made our operations more efficient and productive.”

All entrepreneurs face challenges in their business. But not all realize that information and communications technology (ICT) provides a range of user-friendly tools for better managing everything from inventory control and operations to accounting, human resources, communications and customer relationships.

Hunches can now be replaced with accurate information delivered in real time, equipping managers to make better decisions and improve their company’s performance.

Entrepreneurs understand the need to invest strategically. A 2010 survey by the Business Development Bank of Canada (BDC) found that most business owners plan to invest in new equipment, including ICT, as a way to improve productivity and remain competitive.

“ICT brings efficiency and speed to an organization,” says Jean-RenĂ© Halde, President and CEO of BDC. “It provides tools to better manage and analyze information about your clients, your finances and your operation. For most, highly functional websites have also become a critical sales channel.”

For Great Canadian, it was a bottom-line decision. Its estimating software takes into account overhead costs, the price of goods and other hidden expenses, ensuring that every job is profitable.

The company purchased a second software package to improve productivity and better manage its crews. Instead of clocking in at the office, O’Donohue’s crews are now clocked in at the work site by their foreman, who is equipped with a smart phone. They are also clocked in and out at lunchtime. Savings on unproductive time and overtime are huge.

“We were paying people for a lot of travel time that wasn’t necessary,” he says. “This software will save us about $130,000 annually in salaries. As an investment, it was a no-brainer.”

Great Canadian also uses GPS capabilities on each truck and smart phone to track crews in real time. If a customer calls to ask whether a job has been done, O’Donohue can tell him or her the exact minute that workers arrived at or left the site.

Despite the benefits, too many entrepreneurs put off ICT investments, fearing ICT is too complicated, too expensive or not what they need. Cost is usually the biggest deterrent until entrepreneurs realize that most solutions are now software driven and affordable for even the smallest companies. Some are even free.

“ICT and Internet-based solutions can be scaled for any size of company,” says Todd Madgett, Director, Small Business, for Cisco Canada. “With the advantages of new network and cloud-based services, and hosted and managed services, the cost of equipment that small entrepreneurs need to invest in is limited.”

Many entrepreneurs also worry about making a bad investment. Halde says companies can reduce this risk by first clearly defining their needs, and then taking the time to thoroughly investigate and evaluate the different ICT options.

“Talk to more than one vendor and other companies that have done this before. It also may be worthwhile to invest in some professional advice,” he says. “And be careful about buying the latest gadget. Cutting-edge technology usually is not for companies with limited resources.”

O’Donohue acknowledges it takes time and money to set up and implement ICT solutions, but says it’s not as expensive or complicated as entrepreneurs fear, and the returns can be significant.

“You will usually recoup this investment in a year or two. Even before then, you’ll see how it is reducing costs and making your operations more efficient,” he says. “It’s been a big factor in our company’s growth.”

BDC is the Business Development Bank of Canada. From over 100 offices across the country, BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs.

saverio manzo

Car insurance Ontario

Ontario car insurance

Toronto car insurance

Sunday, April 17, 2011

SME Focus: The top 5 questions to ask employees in a performance review

I took over a large organization where we had several divisions that had been under performing and suffered from morale problems. While there was a formal review process in place people felt isolated and under appreciated.

As I started I went and met the teams and had a quick review with each employee to gain some perspective on their thoughts and insight.

I asked five questions, which were:

1 - Rate your job satisfaction and describe the things that you feel were the biggest contributing factors to that rating.

2 - Rate your own job performance and again highlight the achievements and accomplishments that attributed to that rating

3 - If you were to pick the teams MVP, who would it be and why?

4 - If you were King or Queen for a day what would you change to make the company a better place to work?

5 - What do you think we could do better that would make our customers view us as either a better partner or a better supplier?

The interesting things was that the initial ratings were very low but we adopted a policy for the Executives to get closer to the employees and solicite their feedback.

Every year we maintained that opportunity for employees to give Executives direct feedback and ratings continuously improved with employees talking to each othr and their managers about how they felt that they now had a voice to improve the company and their environment.
I think that regardless of the questions asked providing a forum to give and get feedback is important and so too is the opportunity for employees to be heard.

Use all discussions as opportunities to improve the organization and provide a deeper pool of people to asks questions and solicit feedback. Investing in your people always pays dividends.

Source: K. Watson, President & CEO, Pinnacle IP Solutions

saverio manzo


About me: I give Economic, Social and Global trend briefings from some of the world's brightest minds at my blog http://saveriomanzo.com/ and http://saveriomanzo.blogspot.com/. I also provide true and tested financial planning and wealth advice. Most recently, over the past few years, I have become socially conscious and have been attempting to practise ways in which I can live my life more environmentally friendly.   Along with some truly exceptional friends, we provide consulting and business development for small-medium sized businesses.  In addition, I truly believe in being philanthropic, giving and doing unto other as we would have them do unto us. Some of my fondest resources are from Barry Ritholtz of The Big Picture, David Rosenberg and what Warren Buffett of Berkshire Hathaway is up to behind the scenes, as an example. saverio manzo



http://www.thinkinsure.ca/

Thursday, April 14, 2011

How to Close a Deal Like Warren Buffett

Warren Buffett might be catching a lot of flack these days, but I think if you want to know about closing big deals, he’s still the guy to watch. Why? The man knows how to talk about money when he’s dealmaking.

Buffett is famous for doing ginormous deals with as little information as a few pages of business plans and the standard financials a company would submit to a bank to qualify for a loan. What he has when he goes into any conversation is an encyclopedic knowledge of how businesses work financially. He knows “their money,” “their wallet,” and how investments and outcomes should work. Follow his lead and you will close more business.

Here are seven things I’ve learned as I’ve watched Buffett from afar:

  1. Know the other guy’s money - How they make it, how they count it, how they spend it. This is obviously much easier to do for publicly traded companies. For privately held companies, the numbers are fairly easy to estimate, at least the cost of goods sold and probably the cost of sale. These numbers are critical to discussing the possibilities of working together. Too often the discussion stops at budget. When you don’t know, ask. Not the trade secrets, but at least the industry averages. This provides a basic framework for the discussion.

2. Know the other guy’s wallet - How does this sale impact any of these critical numbers? The terms of the deal should be looked at from their side of the table first, then yours.

3. Start discussing the money early - You know you are going to discuss the money later. Early in the conversation, you do not have enough information for precision. Instead, you have an understanding of the economics of the prospect’s industry, so you have enough to determine if a deal makes any sense at all. Use that economic information and industry knowledge to frame a shared understanding of the reality of the money for this opportunity.

4. Use ranges to qualify and disqualify - Understand early (and throughout the discussion) whether you and your prospect are in the same arena. By using ranges of prices, cost structures, yields, and performance you can both be sure that you are dealing in a shared reality rather than getting to the end and finding yourselves so far apart that there is permanent damage done to the relationship.

5. Speak the language of investment and outcomes - Every large sale is an investment on both parts in an outcome. When you move the conversation from price to investment and cost to outcomes you are focusing on the business impact rather than budget impact. This is the language of large sales.

6. Don’t discount early - I regularly hear fearful “deal makers” use language like, “Let’s not let money get in the way of working together.” There’s a word for this that is not used in polite company. This is the language of discounting before the scope has been clearly defined. The sales person believes that he is being clever by taking money off the table. What he has really done is to take margin off the table, his and his company’s margin. If qualifying investment and impact has been made up front, then this point does not need to be made again.

7. Don’t negotiate until it’s time - Work on the deal points one at a time. Work through the investment and outcome ideas clearly, then negotiate. True, all of these points require negotiation. However, too often the conversation turns to negotiations too early before real scope and deliverables have been defined. Which means that the whole is reduced to the little parts before the shared picture of the whole has been established.

Side Note: I watched a deal unravel recently because the players did not observe these guidelines. The sale involved the installation of a point-of-sale system into a retail chain. The details are complicated as many large deals are, but the numbers were simple:
If you calculated the investment necessary for the system, the transaction cost was going to be >5% of the transaction revenue value. That’s more than the cost of the charge card processing fee! Never going to work regardless of the reporting bells and whistles, speed to data consolidation and so on.

This violates rules 1-5. The selling team did not understand the fundamental money issues of their prospect. They had not asked, done their research or even estimated. They were focused on the features of their system and what they had heard the IT people say would be the selection criteria without working through the money issues. That always leads to disaster.

saverio manzo


About me: I give Economic, Social and Global trend briefings from some of the world's brightest minds at my blog http://saveriomanzo.com/ and http://saveriomanzo.blogspot.com/. I also provide true and tested financial planning and wealth advice. Most recently, over the past few years, I have become socially conscious and have been attempting to practise ways in which I can live my life more environmentally friendly.   Along with some truly exceptional friends, we provide consulting and business development for small-medium sized businesses.  In addition, I truly believe in being philanthropic, giving and doing unto other as we would have them do unto us. Some of my fondest resources are from Barry Ritholtz of The Big Picture, David Rosenberg and what Warren Buffett of Berkshire Hathaway is up to behind the scenes, as an example. saverio manzo

http://www.thinkinsure.ca/index.php

http://www.thinkinsure.ca

Wednesday, January 12, 2011

Rules of Business Success

The success of any business is no longer dependent on the inventor or professional contractor turned company owner - running a profitable and efficient business may be an entirely new craft. By applying these rules of success – and a little bit of hard work and determination – business owners can master the craft of business management.
Over the next while Biz-Advisor will bring you the EIGHT Rules of Business Success.  Let’s start with the first rule:
Rule One: Produce profitable sales

Profitable sales begin with strategic bidding. The person who performs this task must be knowledgeable about the financial side of the business and understand the difference between variable and fixed costs. Variable costs such as materials, subcontractors and equipment rental will change on a regular basis. Fixed costs like rent, insurance and wages remain the same. Armed with this information, one can develop quotes with built-in, predetermined profits, and salespeople can be confident the business they bring to the company makes sound business sense.
Having valuable employees is another factor that contributes to sales profitability. With stable personnel in key positions, construction company owners only need to subcontract that which is necessary. This ensures quality, guarantees required workers are available and lowers costs–all of which impact profit.
Saverio Manzo

About me: I give Economic, Social and Global trend briefings from some of the world's brightest minds at my blog http://saveriomanzo.com/ and http://saveriomanzo.blogspot.com/. I also provide true and tested financial planning and wealth advice. Most recently, over the past few years, I have become socially conscious and have been attempting to practise ways in which I can live my life more environmentally friendly.   Along with some truly exceptional friends, we provide consulting and business development for small-medium sized businesses.  In addition, I truly believe in being philanthropic, giving and doing unto other as we would have them do unto us. Some of my fondest resources are from Barry Ritholtz of The Big Picture, David Rosenberg and what Warren Buffett of Berkshire Hathaway is up to behind the scenes, as an example. saverio manzo

http://www.everyoneweb.com/saveriomanzo/     http://saverio-manzo.jimdo.com/   http://saverio-manzo.yolasite.com/   http://saverio-manzo.webs.com/  http://saverio-manzo.weebly.com/   http://saveriomanzo.terapad.com  http://www.shareowners.org/profile/SaverioManzo  http://www.linkedin.com/pub/saverio-manzo/b/995/63  http://twitter.com/saveriomanzo   http://www.facebook.com/people/Saverio-Manzo/854720596?ref=search




.