The Art of Attracting Outstanding Employees

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We’ve all had those absolutely outstanding employees:  well-qualified, quick to learn company operations and culture, exhibit great attitudes. They do what they say they will do, on time and with high quality.

Sometimes it can feel like we just fall into this type of employee. But there are ways to make the “fall” more likely. And since a company is only as good as its employees, attracting outstanding prospective employees is worth the effort.

There are many ways to attract and find great employees. The following are some I have found effective.  Try them out to create an ideal applicant pool.

  1. Go where the best go. Use events – even online – to observe and identify qualified people. Join relevant associations, talk with your customers, look on LinkedIn or other social media sites. Approach potential candidates with appreciation and ideas.
  2. Align your hiring process with your company’s culture and vision. This may seem obvious, however, the saying goes “hire for attitude, train for skills” is important. If the person does not have the traits that align with your culture and the norms you expect of all employees, then no amount of skill can make up the difference.
  3. Hire a good recruiter or staffing agency. Recruiters often follow people through their careers and will know when people are thinking about changing companies – giving you early access to the best candidates.
  4. Participate in the community. Sponsor a nonprofit or charity event. Offer scholarships or internships to local students.
  5. Write a realistic and detailed job description. Include job title, salary range based on seniority, and responsibilities. Try to tell a story about the company so people will get an idea of the work environment and company goals.
  6. Establish relationships with trade schools, colleges, and universities. It’s a win/win for companies who want access to the best candidates entering the workforce and schools who want outstanding career services programs.
  7. Foster a positive, modern, environmentally-responsible, and attractive workspace – wherever it might be. During these days when many desk employees are working from home, that might mean investing in fresh collaboration software, encouraging a daily stretch break, or offering perks like a small home office stipend or shipping an oxygen-releasing houseplant to each employee. For employees going into the office, give some thought to amenities like access to healthy, free snacks and coffee, relaxation areas, and ergonomically correct furniture.
  8. Offer the best benefits you can afford. Many companies use their benefit offering to attract and retain their employees. This could include paid vacation and sick time, mental health days, flexible work times, job-sharing, work-from-home, 401k, profit sharing, casual days, health, life, disability, dental and vision insurance, and tax-free health spending accounts to name a few. Paid gym memberships, parental leave, and student loan and tuition assistance are also gaining popularity.
  9. Ask your highest-performing employees for referrals – because like attracts like. They have first-hand knowledge of your business, plus networks of similarly-talented friends and business contacts. Hiring employee referrals can help build morale and be an opportunity to offer a referral bonus.

This list may seem overwhelming, but there’s no need to tackle them all at once. Test one or two at a time to see which resonate with your business, industry, and the roles you hire. I expect you’ll discover happier, more effective employees – and outstanding candidates.

Updating Your Organization’s Employee Experience

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The nature of work has evolved dramatically over the years, from what we deliver to how we create it. It wasn’t long ago when scores of people sat in rows of desks performing the same repetitive activity. Today, we don’t even need to be in an office, and can still accomplish so much more.

Each generation has fresh expectations for how their work environment operates and feels – and for most companies, the COVID-19 pandemic monkey wrench forced abrupt new changes. While our work environments, wherever they are, may not be “Dunder Mifflin” fun, it’s important to continue evolving your work environment.

Here are 6 recommendations for encouraging your workforce:

  1. Create opportunities for employees to grow their relationships. It’s difficult to make a positive connection with someone you know only by name and title. Consider planning a casual activity at lunchtime, creating interest-based groups, or finding opportunities for people to work outside of their normal teams.
  2. Provide ongoing feedback.  The years of annual reviews have passed. Much of today’s workforce prefer frequent feedback. Discuss goals and expectations more frequently to allow employees to attack incremental goals and have a say in creating expectations that seem fair and challenging.
  3. Offer flexible work locations. No more cubicles, but also no more wide-open workspaces. Promote creativity and collaboration with quiet rooms and lounges filled with comfy seating. Consider flexible furniture, like desks that enable a person to work while sitting or standing. We all know it’s unhealthy for people to sit in a chair like a slug all day. And don’t forget small and large enclosed places for phone calls and meetings.  Even after the pandemic passes, options like remote working, working irregular hours, and job-sharing will be huge bonuses to employees trying to balance their work and personal lives.
  4. Offer benefit packages that include mental health coverage and financial and mental wellness checkups. Some employers encourage taking “mental health” days to recharge. Some are insisting that employees working from home take time for a walk or non-screen-time during their workday. At the office, some employers are even providing meditation rooms.  How can you support your employees’ mental health?
  5. Focus on purpose. Identifying one’s purpose is important to today’s work force.  Help employees understand how their work contributes to the success of the company as a whole. Inquire as to how and why they do their work, what they feel their strengths are, what energizes them and what impact they feel they are making.  This may encourage some employees to create their own purpose statement.
  6. Finally, ask for feedback. A suggestion box is still a good way to do this. Make it easy for employees to give praise and criticism. Ask for ideas. Some of the most positively impactful changes come from employees on the front line.

Numbers Coach Eases the Pain of Financial Management for Medical Practice

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The Company

Pain Care, LLC (formerly Georgia Pain and Spine Care) is a leading pain management medical services firm that provides comprehensive solutions to help restore each patient to their original lifestyle. The company uses progressive approaches to pain management with education, counseling, and minimally invasive procedures. Their mission is to relieve pain, increase productivity, and improve the quality of life for its patients using technologically advanced treatment regimens through its various metro Atlanta offices.

Situation

In 2020, the Pain Care team wanted to enhance their financial management and reporting capabilities. They wanted to create a platform to communicate the company’s key performance indicators (“KPI”) and help educate its key team members on what drives its company’s financial results. In addition, the Pain Care team wanted a “road map” that could guide them as they made financial decisions impacting strategies for growth.

Solution:  Numbers Coach Leadership and Numbers Navigator™ Services

The Numbers Coach (“NC”) financial leadership services were an ideal fit for developing Pain Care’s performance metrics. NC developed a financial scorecard to focus on the financial measurements that drive company profits and cash flow critical to sustained profitable growth. The scorecard offers an “at a glance” view of results. NC developed a financial model from its proprietary software, the Numbers Navigator™ . The software provides a road map for the Pain Care team to see where they are headed with profits and cash flow. The software’s rolling financial forecast provides the Pain Care team with a tool to make critical decisions “on the go” to achieve their desired results.

Results

NC pulled together financial and non-financial data to complete a scorecard and financial model. Each month NC meets with the Pain Care team to methodically review results and provide the input and analysis from NC’s Numbers Navigator™ financial software. From the monthly financial coaching meetings, the Pain Care team can take actions on activities that improve the company’s bottom line results.

For more information on Pain Care, LLC visit www.georgiapaincare.com

To learn more about the Numbers Coach financial leadership services, click here

“Mike has become an important part of our team.  His understanding of financial processes, cash flow, and approach to educating us on our results gives our team the right tools to help us understand how to navigate our finances successfully and stay focused on our financial goals.”  

Dr. Charles Brownlow, Founder / Medical Director

An Environmental Services Firm Uses The Numbers Coach to Achieve Financial Results

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The Company

Sustainable Investment Group (“SIG”), founded by Charlie Cichetti and Jason Kiefer, provides sustainability services to commercial property owners.  SIG provides high quality services for LEED certification with commercial buildings.  A LEED certified building ensures the property uses sustainable activities to help protect our environment.  SIG offers LEED training, consulting, and engineering services domestically and internationally.  SIG has become an industry leader and expert in LEED practices.

Situation

In 2020 the SIG team wanted to enhance their financial management and reporting.  They were looking to create a platform to communicate the company’s key performance indicators (“KPI”) that drive its financial results.  In addition, the SIG team wanted a “road map” that could guide them as they made financial decisions impacting strategies for growth.

Solution: The Numbers Coach Leadership Service

The Numbers Coach (“NC”) financial leadership services were an ideal fit for developing SIG’s performance metrics.  NC developed a financial scorecard focusing financial drivers that give the team visibility into the profits and cash flow critical to sustained profitable growth.  The scorecard offers an “at a glance” view of results.  NC developed a financial model from its proprietary software the Numbers NavigatorTM that provides the road map for the SIG team to see where they were headed with profits and cash flow.  The model provides a rolling forecast during the year so that SIG team could make financial and operational decisions “on the go” to achieve their goals.

Results

NC pulled together financial and non-financial data to complete a customized scorecard and financial model.  Each month NC meets with the SIG team to methodically review results and provide the input and analysis from the Numbers NavigatorTM financial software.  Each monthly financial coaching meeting, the SIG team can take actions on activities that improve the company’s bottom line results.

For more information on Sustainable Investment Group visit www.sigearth.com

To learn more about the Numbers Coach financial leadership services, click here

“Mike has been an important part of our team.  His understanding of financial processes, cash flow, and how to explain our results gives our team the right tools to navigate our finances successfully and stay focused on our financial goals.”  

– Charlie Cichetti

Numbers Coach Helps Medical Firm Stay Financially Focused

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The Company

 Georgia Pain and Spine Care (“GPSC”), founded by Dr. Charles Brownlow in 2010, is a leading pain management medical services firm that provides comprehensive solutions to help restore each patient to their original lifestyle.  The company uses progressive approaches to pain management with education, counseling, and minimally invasive procedures.  Their mission is to relieve pain, increase productivity, and improve the quality of life for its patients using technologically advanced treatment regimens through is various metro Atlanta offices.

Situation

 In 2020 the GPSC team wanted to enhance their financial management and reporting capabilities.  They wanted to create a platform to communicate the company’s key performance indicators (“KPI”) and help educate its key team members on what drives its company’s financial results.  In addition, the GPSC team wanted a “road map” that could guide them as they made financial decisions impacting strategies for growth.

Solution: The Numbers Coach Financial Leadership Services

 The Numbers Coach (“NC”) financial leadership services were an ideal fit for developing GPSC’s performance metrics.  NC developed a financial scorecard to focus on the financial measurements that drive company profits and cash flow critical to sustained profitable growth.  The scorecard offers an “at a glance” view of results.  NC developed a financial model from its proprietary software the Numbers NavigatorTM .  The software provides a road map for the GPSC team to see where they are headed with profits and cash flow.  The software’s rolling financial forecast provides the GPSC team with a tool to make critical decisions “on the go” to achieve their desired results.

Results

NC pulled together financial and non-financial data to complete a scorecard and financial model.  Each month NC meets with the GPSC team to methodically review results and provide the input and analysis from the Numbers NavigatorTM financial software.  From the monthly financial coaching meetings, the GPSC team can take actions on activities that improve the company’s bottom line results.

For more information on Georgia Pain and Spine Care visit www.gapaincare.com

To learn more about the Numbers Coach financial leadership services, click here

“Mike has become an important part of our team.  His understanding of financial processes, cash flow, and approach to educating us on our results gives our team the right tools to help us understand how to navigate our finances successfully and stay focused on our financial goals.”  

Dr. Charles Brownlow, Founder / Medical Director
 

Do You Need to Check Your Vision This Year?

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I often get confused on what makes up a good vision.  My finance background does not exactly lend itself to visionary thinking—we are trained to look at the present and history.  I know one underlying trait of a good vision is that it should be timeless.

One of the great examples of this notion is the vision that Walt Disney wrote himself over a half century ago and still remains true today for the Disney company:

“Physically, Disneyland is to be a small world in itself.  Encompassing the things that were good and true in American life…. dedicated to the ideals, the dreams, and the hard facts that have created America.  I don’t want the public to see or think about the world they live in when they are inside our world created for them.  Beyond the physical places, we want to bring people along into an entirely different world, with our philosophies and idea, our characters, our stories, our past, present, and future, so they are part of it and never want to leave it.  At age 12 or at age 62, we want them to feel curiosity, wonder, awe, fascination, joy, and attachment.  Within this world, we want them to experience discovery and adventure, fun and entertainment, education, participation, and recognition. They will not just come to visit our places or to the theater to see our films. They will bring us into their homes and into their hearts.  We will never settle for having customers or fans – they will be Disney people.  This world will never be completed, it will always be under construction; expanding, diversifying, playing more and more roles in peoples’ lives.”

 

When I read this vision statement and think about the time I visited Disney World with my young kids, I am awestruck with how this so closely aligns with my family’s experience.  Walt Disney built his visionary idea in such a manner that it strikes emotion into many who have experienced Disney films, theme parks, and books.  I did leave my world behind and entered the world of Disney when we visited…it was truly magical.So, what can we do to create a vision that can elicit a similar type of feeling and experience?  Start with asking yourself these questions:

  • Is your vision written in a manner that evokes emotion, or does it just feel like cold facts?
  • Is it about your customers’ experience with your products or services….an external focus?
  • Is it written with the intensity that you want your customers to feel, regardless of length?  (Obviously, Walt Disney’s vision statement was not written with the notion “It’s got to be short or people won’t remember it”)
  • Is it timeless?
  • Is it one that will be incomplete?
Simon Sinek did a TED talk with the theme of “Start with the Why”:  Why do people buy your product or service?  If you can answer that, it gives you a way to think more clearly on what your vision should be.
Cheers to your clear vision that will remain true throughout time,
Mike

Every Business Needs a Plan. . . But it Doesn’t Need to Be Long

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When a business owner wants to attract a business partner or hopes to raise investment capital, he or she needs a way to show where the company is headed. A business plan is the right tool for the job.

Many entrepreneurs don’t have business plans because they are unsure about how to begin, and the process seems terribly time-intensive. But, a business plan doesn’t have to be elaborate. In fact, the trend is toward something simple.

Have you heard of a one-page business plan? It is certainly a far cry from a traditional business plan that often runs 15 to 50 pages. A one-page plan is specifically requested by some investors, because they find it difficult to read all of the investment proposals that come to them.

The One-Page Business Plan

Proponents of a one-page plan believe there’s a great deal to be said for brevity. Most investors have neither the time nor the inclination to read more than the absolute essentials.

For instance, a one-page business plan is likely to describe:

  • The customer needs that your business addresses
  • Your products or services
  • Your principal customers
  • Your chief competitors
  • Your competitive edge
  • How you make money
  • Your management team
  • A financial summary
  • Your funding request

If you provide all the information on the list above, it’s likely enough for the typical investor. So, let’s focus on how to get all of the facts onto a single page.

For starters, don’t worry about writing complete sentences, and don’t spend time trying to make your plan look stylish. Commit to simplicity. Waste neither words nor space. For example:

Customer Need that the Business Addresses: LED lighting solutions for a variety of manufacturing applications

Products Sold: LED assemblies customized to a manufacturer’s specifications

Principal Customers: Warning Lights of North Georgia — 13% of annual sales; no other customer is > 5% of sales

Once you have compiled all of the information, consider hiring a professional to improve the presentation. A talented graphic designer can turn your information into a much more attractive page in a couple of hours by using business-appropriate spacing, fonts and icons that provide some visual interest.

As an alternative, software packages are available that provide templates for one-page business plans. Just answer the questions at the interactive prompts. It’s an easy, albeit more expensive, way to get started.

With a 20-year record of success, The One Page Business Plan Company is a testament to the power of the single-page approach. Its software solutions are cloud-based. If your business is ready for something more than the bare essentials approach, its one-page templates can help you develop:

  • A vision for your business success
  • A mission statement
  • Objectives
  • Strategies
  • Action plans

If you would like to get an example of a one page business plan that Trillium has used for clients feel free to send us an email request and we will send it out to you in a Word template form.

Is an Angel Investor Right for Your Business?

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As an entrepreneur, you are inherently a risk-taker. Starting and running a business is not for those who only play it safe. But like almost everything in life, risk is on a continuum. There is lots of distance between carefully weighed risk and recklessness. “Carefully weighed” risks are optimal.

Many small business owners consider taking on funding as a necessary risk to grow at their desired rate, since they need more cash than they can invest personally.  Before enough revenue starts rolling in to cover costs and produce a healthy margin, businesses need to invest in expenses like research and development, materials, staff, marketing, or operations – and most likely, a combination of those factors.

Traditional options for funding are commercial (bank) loans and government-backed loans, such as Small Business Administration (SBA) loans.  Another option is to come to an agreement with one or more angel investors.  These are private, high net worth individuals who are willing to take risks on businesses they believe will succeed.  Make no mistake though: Angel investors are in it to earn money at a higher rate than traditional investments, and they typically require equity ownership in the company and expect returns via company profits of 25% or more (such as what you see on the aptly-named TV show, Shark Tank).

Here are a few pros and cons of acquiring capital through angel investment:

Pros:

  • Debt financing has to be paid back (with interest), but if the business fails, angel investments typically do not have to be repaid.
  • Angel investors are willing to take risks on companies in which they see potential.
  • Most angel investors are experienced and successful business owners who offer their expertise in addition to funds, as well as other bonuses like investor networks and supplier and distributor contacts.

Cons:

  • Because angel investors typically require equity ownership, they can expect to play more of an active role in the business.
  • As part owners, angel investors are entitled to a share of profits.  Handing over equity in a company is basically handing over part of your future net earnings.
  • Relationships with angel investors are typically more personal than with venture capitalists.  Business challenges can have a negative impact on those relationships.
  • It can be difficult to find angel investors.  They can be friends or family, but many are found by word of mouth and through business associations or networking, such as the local chamber of commerce.
  • Angel investors are usually looking for a higher rate of return than traditional debt financing from a bank, although not as high as venture capitalists.

Many angel investors and business owners develop mutually satisfying, long-term relationships.  Success depends on detailed business planning, extensive upfront communication and documentation, formalized legal agreements, and then ongoing communication and relationship management.  With solid planning and communication, using angel investment to fund your business can be an effective risk that accelerates your business growth.

Contact us if you would like us to help you determine if angel investment is right for your business.

Reassess Your Customer Credit Practices for Stronger Financials

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by Anne Moore Odell

Every time you send out an invoice, it is like you are granting a loan to your clients. Business is built on trust with products and services moving around the world on the foundation that invoices are going to be paid in a timely manner.

However, extending credit can’t happen in a vacuum. It is up to you to create credit policies that keep your cash flow and business healthy. And while having good credit practices in place is always important, it is especially important to make wise credit decisions in today’s difficult economic times.

Here are 5 tips to help you create sound credit policies:

 1. Take the Time to Research

Now is the time to revisit your credit application process. Make sure that your application is thorough. Make the effort to call all supplied references and banks. Although clients are only going to supply positive references, you can still learn a lot about how potential clients work.

Do your homework on prospects by going to the library where free information from publicly traded companies can be found. Consider using a professional credit report service like Dun & Bradstreet , TransUnion or Equifax. For a small fee they can provide credit histories, records of liens against companies, and current financial obligations on larger clients.

“Don’t forget to use your contacts with the various business associations you belong to – they can help gain information about credit decisions,” suggests Mike Iverson, CEO of Trillium Financial. “Through these relationships and through relationships with other vendors, you can learn about potential clients. You might also require information from clients’ accountants, and tax returns,” says Iverson.

2. Consider using a Z-Score 

A Z-Score is a calculation that allows you to figure out the financial health of a company by using ratio values for a “score” that can indicate potential future bankruptcy. A Z-Score calculator can be located at either The Accounts Receivable Network (membership site: www.tarn.com) or at JaxWorks (http://www.jaxworks.com/calc2a.htm )

3. Be Selective

Keep your customers’ credit files up to date. With businesses going bankrupt and changing hands, it is important to update your credit information on existing clients, increasing or decreasing credit limits as needed.
“In this market you need to be discerning regarding who you are offering your services and products to,” says Marc D. Smith, Vice President, Magnolia Financial, Inc, based in Spartanburg, SC. “Fire customers if they don’t meet your credit requirements.”

Because of the reduction in sales that many businesses are seeing across sectors and industries, businesses are facing increased pressures when it comes to extending credit. However, just because a client is interested in your product or service it doesn’t mean that you need to accept every application.

“In my experience, people are lowering some of their credit limits,” says Iverson. “You should consider your accounts receivables to be much like an investment portfolio—you have invested in your customers and you want your portfolio to be profitable.”

Working with customers before problems and outstanding invoices occur is the best approach. In some cases, you can work out new payment schedules. It is also important to include your entire team so that salespeople know clients’ credit and payment histories.

4. Follow Up

“In good or bad times, one of the keys to collecting from customers is timely and accurate billing,” explains Mike Iverson, CEO of Trillium Financial. “That sounds like a no brainer, but sometimes that doesn’t happen. An invoice might have to be approved or reviewed by several different people, which can cause you to lose two, three, or four days in collecting your invoice.”

One effective practice for larger bills is calling to follow up on an invoice two or three days after it is sent to see if everything is in order. This practice not only puts you top of mind with your client but acts as a customer service call that could generate more sales. If the client does have an issue with the bill, then you can quickly solve the problem, generate another invoice and get paid on time.
Another proactive practice is to send monthly statements or even bi-weekly statements, again reminding clients before bills become overdue.

5. Good Relationships are Important

All levels of management are becoming more involved in credit decisions as businesses look to keep the cash coming in. These days CFOs and CEOs are participating in credit decisions with their teams.

One of the main points to remember, however, is that while economic downturns will end, the relationships you form today will continue. Working to preserve the business relationships you have now and creating new working relationships not only generates good will, but also builds a strong foundation to catapult your business when the economy rebounds.

Your Best Tool for Understanding Short-Term Cash Flow

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In a recent article, I shared ideas on how to positively position your company’s financials, even during a slowing economy.  The key is to ensure you have strong cash stores and credit availability.

Today, I will explain a management tool that helps you anticipate your near-future cash flow and identify any areas of weakness: Presenting the 13-Week Cash Flow Analysis. 

You may already use software that allows you to run regular cash flow analyses. These give a more accurate picture than net profit or bank statements.

Initiate your 13-week cash flow analysis by gathering the data needed to build an accurate report:

  • Current bank account and credit card balances
  • Upcoming mortgage or lease payments
  • Estimated cash receipts
  • Estimated payroll and taxes
  • Estimated operating expenses
  • Any other upcoming transactions that will impact cash flow.

The integrity of the report is dependent on the accuracy of the data as well as it being correctly entered or integrated into a spreadsheet or software. For the variable revenue and expenses you estimate, be sure to keep seasonal influences in mind. And remember, you only need to record and predict 13 weeks out – it’s a short-term tool.

A report with solid data and estimates is a good indication of your cash situation over the next 3 months (or, one full quarter). But check the output against your gut:  If the balance seems overly positive in any or all of the 13 weeks, review your estimates, especially sales and accounts receivable forecasts. Being overly optimistic won’t serve you well – if anything, conservative estimates will give you the padding needed to accommodate unpredictable changes.  If you have the time, run worst-, best- and average-case scenarios.

If the report indicates that your company will be cash poor at points during the next 13 weeks, it’s time to review your options:

  • Do you have unneeded equipment or inventory that can be sold to improve fluidity?
  • Are there expenses that can be eliminated, contracts that can be renegotiated or even dissolved, or payments negotiated or delayed?
  • Is it time to implement a collections push?
  • Is your billing and collections process quick and accurate?
  • Are there any loans available to the business?

Once it is set up, maintaining cash flow history and projections is easy. Monitor and update the report weekly, and review your historical projections against actuals to improve your modeling accuracy.

Cash and cash flow are critical to successful operations, and utilizing 13-week cash flow analyses will help you identify gaps and become better at anticipating your future cash needs to keep your business steady. So make proactive cash flow analysis one part of your flexible, resilient business, whether the economy and your customer demand are swinging up, down, or somewhere in between.

It’s Decision Time

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The average adult makes about 35,000 decisions a day. Sounds like a lot, doesn’t it?

According to Psychology Today it’s not. And if you think about it, it makes sense: people make many decisions without thinking of them as decisions. (Which pen do I take out of the pen holder? Do I have time to review the report before the meeting?) With all of these opportunities to change the course of our day, our career, our life, it’s a good idea to explore ways to improve decision-making.

The results of a study published in the journal Cognition indicate that not all times of day are created equal when it comes to making decisions. The study tracked 184 chess players who made about 40 “complex human thinking decisions” during a 3- to 15-minute chess game. The results are interesting.

To summarize, study subjects made the decisions most favorable to their game when they were playing between the hours of 8 a.m. and 1 p.m. After 1 p.m., players made decisions more quickly (presumably they were in a post-lunch slump or tiring as the day was progressing), and their decisions were less favorable to their game.

Bottom line: make important decisions in the morning. Sort of. When you sleep and when you get up matters too. If you are a morning person—you know, the early to bed, early to rise type—then your best decision-making time is the morning. But if you’re a night person, then your “morning” is during the five hours after you rise for the day. So, relax: if you don’t get out of bed until 9 or 10 a.m. , then you haven’t missed your prime decision-making hours.

A lifehacker.com article by Adam Dachis also supports the morning person/night owl concept, recommending that people identify when they’re most able to make good decisions and then resolve to make important decisions during that span only. Creativity coach Mark McGuinness advises people not to worry too much about little decisions, because they generally don’t have a long-term impact on your life.  For example, what clothes you wear on a particular day or what you eat for dinner doesn’t change the direction of your life. (Although, should you wear neon orange cowboy boots with your suit and purple fedora to the office, the boss may question your judgment.)

McGuinness also recommends weighing the pros and cons before making big decisions. And don’t ignore your gut. He says it’s best to take more time (if possible) to land on a decision when your logical side disagrees with your instincts. In other words, intuition matters.

Should you follow this advice? Determine the best time, and then think it over. It’s your decision.

Why a Slow Economy Doesn’t Have to Mean Dire Straits for Your Business

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Is the slowing economy adversely affecting Atlanta’s businesses, or is it a great time to be in business?

Well that depends mostly on your recent revenues. But even if those are in reverse, a slowing economy can be a great time to take advantage of some opportunities and position your business to come out of the gate at full speed when the economy takes an upswing.

We wanted to hear what local professionals in finance and business had to say about the current state of affairs. CFO service provider Mike Iverson and Vistage Chair Tim Fulton had some good tips for bad times.

Cash is King

The first step to understanding how to make sure your glass is half full is to assess your financial situation and understand exactly how much cash and credit you have. Even if cash flow is good, “Now would be a good time to go the bank,” says Mike Iverson, CPA and Principal of Trillium Financial, “before the economy gets worse or your company financials get worse. Go to the bank and make clear why you want a line of credit and what you will use it for.” It’s important to be proactive when it comes to having the cash stores ready. If you wait until you need it, your statements probably won’t look as good, and the bank may decline a loan or line of credit. Planning ahead is always a good thing. “The key to survival in an economic downturn is to out perform the market, and accumulate cash”, says Tim Fulton, a Vistage International Group Chair which works with over 14,000 chief executives in 16 countries.

Another aspect of understanding your capital position is modeling. How long can your business last with a certain amount of decline? What will you do to make sure you can weather the storm and start growing again? Imagine the various scenarios – even the truly ugly ones – and devise solutions before they come to fruition. You’ll be able to think more clearly in the face of adversity if you have a battle plan and, again, a line of credit to back you up. This doesn’t mean that you have to focus on the worst case scenario, just plan for it, then focus on your everyday business.

Modeling the tough situations is especially important if you are in a cyclical business; for example, the automotive industry. When the economy hits the skids, the average car dealership will probably see sales decline rapidly. Managers must have enough cash reserves to ride out the storm, and to pay for overhead and inventory so they can still be in business a year from now.

If you are a manufacturer, or a company that manages a lot of inventory, be mindful of your production capacity. You don’t want to continue to run at full capacity and end up with an overstock. Go to your clients and continually measure what they anticipate ordering from you in the next two to three months. For production purposes, you might have to scale back so the inventory on hand can be used, and not end up obsolete. On the positive side, manufacturers are usually the first to see orders are picking up. They’re not necessarily the canary in the mine shaft, but these businesses tend to provide a leading indicator.

The Positives of Slower Times

Once your cash situation is well-positioned, the glass is definitely half full. Now is the perfect time to expand your business through capital investments such as acquiring a struggling competitor. You can often take advantage of businesses being sold at fire-sale prices.

“When the economy bottoms out, there will be an abundance of great investment opportunities,” says Fulton. “The business owner with cash will be in a strong position to take advantage of these opportunities.”

Companies with cash can also get the upper hand over competitors by investing in the introduction of new products and in new technology that other business can’t afford. “If you can do any of these things”, says Iverson, “you’ll be in a different place than your competitors because you will be nine to twelve months ahead of them.  You will have something to offer customers that your competitors cannot.”

Companies who differentiate themselves in this way will be growing when everyone else is declining. Constantly look at opportunities to grow with products and services that will serve others struggling with hard economic times and continue to help them through good economic times,” says Iverson.

Another way to grow through a slowing economy is to ramp up marketing. While other companies cut their marketing budgets, Fulton recommends against this instinct. “Be very, very focused in your marketing strategies. This is not a time to be spending a lot of money on broad branding efforts. It is a time to be laser-focused on acquiring new clients and retaining profitable existing clients,” he says.

Iverson agrees. “Marketing is the last place you should cut back,” he says. “Marketing initiatives are priming the pump to create your sales engine. If you cut back on that, you cut back on future sales and opportunities. If everyone else cuts back on marketing, you will stand out even more, possibly turning that half-full cup to overflowing.”