Guident Newsletter – September 2018 – Issue 29

Ten Good Old Rules! In my office, I have a small piece of paper with “Ten Good Old Rules” on it.  Back in 2001, I found these ten rules in the fall issue of a business magazine named, Business Edge.  I have been carrying these rules around for going on sixteen years so I thought it would be a good topic for this newsletter.  Here they are in the order they appeared in the 2001 issue; Control expenses Emphasize cash flow over growth Conserve cash reserves Eliminate or reduce unprofitable product or service lines Maximize efficiencies in the usage of energy, materials, and labor Reduce inventories Reduce or eliminate the number of free services Take advantage of lower prices for essential goods and services Watch for opportunities to acquire a competitors’ business if offered at a bargain rate Don’t get emotional; it’s just business Let’s break them down by the numbers.  #1 Control expenses by creating an annual operating budget and analyzing each month using the actual versus budget function from your accounting software you will be able to see what expenses are on target and which ones need attention.  #2 Emphasize cash flow overgrowth; often I see businesses with […]

Guident Newsletter – August 2018 – Issue 28

Change is hard for this old guy, so what did I do?”  I did my research.  Recently, I hired a marketing firm to work with my company, Guident Business Solution, LLC, because I thought I needed a “subject matter expert” to help me evaluate how I communicate the benefits of my company in today’s dynamic business environment.  Even though I was the one who initiated the relationship with a very well-known professional company I had resisted making some of the changes they suggested.  One such change was the re-design of my company logo which I have had since 2009 when I started the company and by the way, I designed the logo myself.  I don’t know why I resisted, maybe because I designed it or because I invested significantly in promoting the logo in the market.  So, what did I do?  I went on a quest to prove that my logo was the better design of course.  After all, I am the business owner and I launched this company many years ago and just to be sure, we are doing very well helping businesses succeed and grow.  Why change something that is not broken I thought!  So, I began to […]

Guident Newsletter – July 2018 – Issue 27

Think of your business as a spider web Are you considering writing a strategic plan for your business?  When you do, think of your strategic plan using a spider web model, begin with these key areas in mind; management, production, marketing, human resources, finance, sales, and purchasing.  Each of these seven areas acts as anchor points of the spider web. When one of these areas is doing poorly, the others are affected, like pinging one side of a spider web and watching the opposite side vibrate.  To demonstrate I explain when sales are low, financials in the form of cash flow are affected. When HR has to lower the staff count due to cash flow issues, then production is affected. When purchasing is out of sync with the rest of the company, then production and financials can be affected.  You get the picture. If this seems familiar and is happening to your organization, then changes are in order.  Begin your process by evaluating each of these seven areas to determine which area is strong and which area is a weak link within your business.  Most often the financials are a weak link and your first target for change. I cannot […]

Guident Newsletter – June 2018 – Issue 26

Release that stranglehold you have on your company. Most often when I am contracted to come into a business it is because The Boss has asked me to help solve a problem that has The Boss stumped. During one of my first conversations with The Boss, I usually state that the solutions are often found within the organization. I am most often told, “Not in my business, I have looked everywhere for the cause of the problem and I can’t find it.” It has been my experience that it doesn’t take long for someone from outside the organization with a fresh set of eyes to identify the issue(s). In a recent client call, I had to confront The Boss and say, “That stranglehold you have around the throat of your business is the issue!” The Boss looks at me with a bewildered look and then says, “What the heck are you talking about?” I am talking about the stranglehold The Boss has on the talent in the business, the smart knowledgeable people who know the issues and know some of the solutions but are not able to act because The Boss wants to control everything. The Boss has a stranglehold, […]

Guident Newsletter – May 2018 – Issue 25

If it’s not wrong, it must be right, right? As a business consultant, I’ve been privileged to work with business owners who wanted to improve their operations and increase their bottom line results.   During this process, I get to know their businesses intimately, and in doing so, we often uncover inefficiencies and sometimes errors in tasks performed by employees who are doing what they feel is “the right thing.” Once these errors are uncovered, “The Boss” often wants to react quickly with disciplinary actions or other penalties which they feel are appropriate for the mistake.  I caution them to first “look in the mirror” with regards to their own miss-steps. When I talk with the employee(s), who have been doing these tasks they often explain that they didn’t fully understand their job because of a poor onboarding process and/or poor training practices.   They told me they really were not sure if what they were doing was correct and “The Boss” was often not around to ask. This will happen in smaller companies where “The Boss” wears several hats and is often “on the move” to get things done. The employee will say they did what they felt was best and […]

Guident Newsletter – April 2018 – Issue 24

So you want to start a business, throw out the Jokers! When I was a child, my sisters and I would like to play a card game called Rummy 500.  Those of you who know this game understand the goal is to reach 500 points before anyone else.  In Rummy all cards are counted as their face value except the Jokers.  They were considered “wild cards,” and we could make them equal to any card in the deck. When I was in college, my buddies and I would like to play Poker.  When I played with them, we were serious and played for money.  Because we were playing for money, we didn’t have “wild cards,” and we didn’t use the Jokers. I often advise people who are considering starting a new business to throw out the Jokers, eliminating them from the deck.  When starting a new business, the Jokers were not “wild cards” but “failure cards.”  The thought of failure is not an option when starting a new business.  You cannot even have the “Failure Card” in the deck because when the going gets tough, and it will, you don’t want to be tempted to throw that “Failure Card” onto […]

Guident Newsletter – March 2018 – Issue 23

Does Your Company Have A Solid Foundation? I have the privilege of helping many business owners set-up their management teams.  A company’s management team is the foundation from which The Boss builds the business.  I have found that three positions are essential for success in an organization, they are; a good controller, an excellent operations manager, and a good sales manager.  I like to describe these three positions as the legs that hold up the company as depicted in the drawing of this stool. Imagine your company as this stool, if the legs are weak and wobbly, your company is in danger of collapsing.  Let’s look at each of these key positions and in what order of importance I place on each.  In most of the organizations I work with, The Boss is experiencing stress and anxiety over various cash flow issues.   I see cash flow issues as “referred pain”, there is a pain in your wallet but it is coming from somewhere else in your organization.  Most of the time the root cause of cash flow problems are a combination of; inconsistent sales, overstock inventories, or just plain poor money management by The Boss.  How do you fix this? […]

Guident Newsletter – February 2018 – Issue 22

Does it matter how the towels are folded? Once in awhile, I get a chance to ride along with a project manager or foremen to visit a job site.  This gets me out of the client’s office and onto a job site, but more importantly, it allows me time to talk with employees in a neutral environment, usually a pickup truck.  On my last ride-a-long, I heard about a business owner who was a micromanager.  He set the policies and procedures for all areas of his company.  Now he has every right to do so, but at times it could be counterproductive. In this situation, I asked the employee how he would change a procedure to improve a problem area we were discussing.  He gave me a comprehensive outline that seemed to have a lot of merits and could improve efficiencies.  I asked if he suggested it to The Boss.  He just smiled at me and said, “When was the last time you remember ‘The Boss’ changing his mind?”  Well, I thought about it, and he did have a point.  The Boss didn’t change his mind often, ok seldom if ever.  I thought about this ride and the lessons the […]

Guident Newsletter – January 2018 – Issue 21

Understanding financials, as easy as riding a bicycle? Imagine being introduced to a bicycle for the first time as an adult. You are told all you have to do is hop on and start peddling, it’s easy! You think about it and you have your doubts. After all, you have had classes on Newton’s Law of Gravity and you understand that the force which caused the apple’s acceleration (gravity) must be dependent upon the mass of the apple. Common sense tells you that with your mass, you will hit the ground hard when you tip either to the left or the right. Yet, you see small children enjoying riding their bicycles without falling. How does this work, the rider should tip and fall, this riding a bicycle just doesn’t make sense. It won’t make sense until you are taught how to ride the bicycle and more importantly until you believe you can balance the bicycle and NOT fall to either side. I am suggesting you think of financials like riding a bicycle, they will not make sense until you are taught how they work and more importantly until you believe you can understand them. I have worked with several artists […]