Numbers Coach Helps Medical Company Acquire a Healthier Bottom Line

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What are the best ways to grow a company?  You could increase transactions, raise prices, or launch a new marketing campaign.  Sometimes, however, a merger or acquisition is the best strategy a company may adopt for rapid growth.
Choice Care began looking for companies that they could purchase to accelerate its growth plans. However, they knew they would need the voice of experience to help guide their decision, so they turned to the Numbers Coach (“NC”) for help. 

The Company

Choice Care Occupational Medicine and Orthopaedics(“CCI”) was founded by Dr. Ish Khan to develop a 21st Century model which blends the two specialties of occupational medicine and orthopaedics. His unique program is the only program of its kind in Georgia and has proven to greatly enhance the quality of patients’ medical care while generating dramatic cost savings.  CCI grew to five locations in the metro Atlanta area .

The Situation

In 2013, Dr. Khan and his team were approached by a company that wanted to expand its presence in the Southeast.  They were looking for a strategic acquisition that would make it a major player in CCI’s market.  A letter of intent with an offer price was provided to Dr. Khan, who accepted the offer.

The Solution: Trillium Financial’s M&A Support Services

NC’s, Mike Iverson, had been providing financial leadership services to CCI since 2012.  For the due diligence process that CCI was about to embark upon, Mike served in a key role facilitating and coordinating financial due diligence activities.  In addition, the ongoing financial management tools implemented by NC as part of it’s financial leadership services helped the organization focus on bottom line results during the due diligence and negotiation phase of the transaction.

The Results

NC was able to efficiently and effectively pull together the required financial and non-financial information to meet the due diligence deadlines.  NC’s comprehensive and methodical approach to measuring and reporting financial results helped ensure the information was provided for all phases of the transaction.

According to Dr. Khan, “Mike has been an integral part of our team over the years.  His solid understanding of our business and its needs for financial reporting, combined with his disciplined approach were important factors in positioning CCI for a successful exit.  I cannot imagine having to go through the acquisition process without Mike.  He was instrumental in pulling mountains of data in a timely fashion.”

How can the Numbers Coach help your business acquire a healthier bottom line?  Contact us to discuss.  

Want to Lead the Pack? Create a New Category for Your Product

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by Michael Iverson

Every so often, I am surprised by a company that dramatically changes its industry. And, I wonder to myself: How did they do it?

My business reading list this year took me to a business classic called The 22 Immutable Laws of Marketing.  The authors, Al Ries and Jack Trout, provided an answer to my question.  They wrote about creating a new category for a type of product or service that’s already being sold.

How It’s Done

As an example, Ries cited the introduction of the Michelob brand of beer years ago.  For a number of years, American brewers envied the success of Heineken as a premium import brand commanding top dollar.  The marketers at Anheuser-Busch decided to develop a premium domestic brand category in hopes of replicating Heineken’s success.  Michelob became the premier domestic brand, and it transformed the way beer was marketed in the U.S.

Law 22 of The 22 Immutable Laws of Marketing is the “Law of Category.”  It suggests that if you can’t be first in your category, you ought to create a new category for which you can be first.  It sounds crazy, I know, but it works—and here’s why.  Marketing consultants will tell you that surprisingly few people are interested in a product that supposedly improves upon the established leading product in a category.  On the other hand, everyone is interested in what is new.

By creating a premium domestic category, Anheuser-Busch used its talented marketers to define the category and portray the lifestyle that went with it. They succeeded in a big way, achieving an upscale pricing structure that far exceeded the dreams of most domestic brewers.

A more recent example with which I am familiar is the Under Armour brand of athletic wear.  For years, I had used the products of a company called Pro Player, which made underwear and socks for athletic use.  Its products were used by football players and other athletes, but Pro Player never really became a household name with the general public.

Under Armour created a new category in the same market space by incorporating “wick and dry” properties into its products.  A challenge for athletes is to remove substantial amount of perspiration so it doesn’t hinder a competitor’s performance.  Cotton garments tend to trap that moisture. Under Armour developed a means of dissipating the moisture.  In doing so, the company became the leader in a new category: athletic wear that stays fresh and dry.

Its marketers made the most of the products’ functional advantages, but also began to describe the company’s apparel as “attitude clothing.”  Can wearing athletic gear really change a person’s attitude?  Yes, if the wearer believes it can.  Under Amour played up the idea of its customers being underdogs and fierce competitors.  It captured the company’s place in the broader sports apparel market, as well as the aspirations of its customers.

Can It Work Locally?

Okay, so there is evidence that creating a new category works at the national level. Do the same principles apply to a local or regional business? I believe they do.  In metro Atlanta, a dental practice created its own category years ago by re-branding as “The Gentle Dentist.”  It definitely captured the attention of people who were afraid of dentists.

Here’s another example:  After years of hearing about $30,000 kitchen renovation projects, along came Frugal Kitchens & Cabinets to meet the needs of homeowners who didn’t have big money but still needed to update their kitchens. The business reached a whole new group of buyers by focusing on the less affluent market sector.

The opportunity exists for any business to create its own category and improve its fortunes. If top-line revenue growth is your challenge, ask Trillium Financial how to re-position the business to attract new customers.

The Hidden Cost of Doing Nothing to Market Your Business

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by Tara Lamboley, CEO of REV Demand

Oftentimes I am asked “Who is your biggest competitor?”  And I always answer:  “Indecision.”

It’s quite true that the biggest hurdle we at REV (and I suspect many of you) must overcome in converting a prospect to a customer is to get that prospect to decide to do something, to make a change.   It’s often not the case that the prospect decides to business with another company—it’s that they don’t decide to do anything at all.

In his article “The Cost of Doing Nothing,” Michael Lippig of IDCON, Inc. asserts that:

“The cost of maintaining the status quo for professional services business owners is enormous. The status quo affects each and every one of us every hour of every day, at work and at home. We have come to accept doing nothing as a safe and acceptable alternative. We even make it the default solution.”

So why do business owners who want to grow their businesses default to doing nothing?  There are many reasons we can recite, including lack of money, lack of time, lack of desire, unsure of what to do, etc.  If we do nothing, it seems like a safe choice that protects our valuable time and resources.

However, there is a hidden cost, as Lippig writes:  “Doing nothing is the management equivalent of a baby’s pacifier. It makes us feel safe and comfortable. But there is a cost to doing nothing. Economists and accountants frequently refer to it as ‘opportunity cost;’ what you could do yourself with your resources if you were not doing what you are doing right now.”

By doing nothing different this quarter than last quarter with your marketing, you can be sure you will cost your business the following:

  • Your e-newsletter, direct mail, social media updates, prospecting emails, etc. will not go out, and so your prospects will get colder
  • Your customers—past, present, and future—will not hear from you enough to make repeat, expanded, and new business a consistent reality
  • You won’t build your reputation online and offline as an expert in your field that prospects must seek for solutions
  • You won’t invest in that training to make yourself that much more knowledgeable in your field of expertise
  • You won’t connect with strategic partners that can expand your sales capabilities
  • You won’t get off the unending roller coaster of project work and cyclical sales

Make no mistake:  When you decide to do nothing about marketing your business, you are still making a decision.   You are deciding to stay where you are and not grow your business.  You are saying you are comfortable with your current income, profitability, and lifestyle.

Of course, sometimes doing nothing may be the best decision for you at this time.  If you have other life priorities that need to take precedence right now over growing your business, it makes sense to maintain the status quo.

However, if you are ready to grow your business, then you have to start doing something to push your business forward (i.e., marketing) and/or stop doing the things that hold you back (i.e., not marketing).

Need help?  REV Demand offers a free, 1-hour, no-obligation assessment of your business development capabilities (including current marketing strategy and tactics as well as sales goals and processes).  We’ll help you build a plan of action to grow your business.  Contact us for more information.

What are the Benefits of a Diversified Revenue Stream?

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by Michael Iverson, Principal of Trillium Financial

When you think about the way America’s small businesses get started, it should come as no surprise that a relative few have revenue streams that could be considered diversified. A great many startups are the result of the entrepreneurial recognition of a market need.  In many instances, the market need is that of a single, sizeable customer.

For instance, I once made the acquaintance of a woman who helped manage the investments of a state pension fund.  One of the challenges of her position was keeping abreast of corporate governance matters for a universe of nearly 2,000 stocks owned by the pension fund.  Her team had a fiduciary duty to vote the shares in the best interests of the pensioners.  Yet, keeping tabs on executive compensation plans, auditor changes and corporate acquisition proposals for 2,000 different stocks was nearly impossible, given the small staff of the pension fund.  Why wasn’t there a service that could provide advisories on the stocks owned by her fund and other pension funds?

To make a long story short, she left the pension fund to become an entrepreneur and start the business that would address the very need she had identified.  She started a fiduciary advisory service to track corporate governance issues of stocks held by pension funds.  Her former employer became her first customer.

Starting Out

In the early years of a startup, it’s not uncommon for a business to be strongly dependent on its first customer. For some startups, it is 100 percent of first-year revenues and more than 50 percent of second-year revenues.

No matter how solid that first customer may be, it is prudent to become less dependent on the customer by diversifying the revenue stream.  Keep the original customer happy by providing outstanding service, but develop new customers as quickly as you can.

Diversification of revenues provides financial stability for your company, reduces business risk and makes your business infinitely more marketable when it comes time to sell.   Diversification can be number of customers, geography of customers, and product offering.  One of the metaphors that I have heard over the years is a three-legged stool offers more stability then a two-legged stool.

Shoot for 15%

As a goal, try to diversify your business to the point that no single customer is responsible for more than 15 percent of revenues.  Until you achieve that goal, the possible loss of your largest customer (due to reasons as varied as a change of ownership or a sudden downturn in the customer’s industry) carries significant financial risk to your business.

I have met any number of business owners who have lost a customer responsible for 30 percent or more of their revenues.  The results can be devastating.  Imagine having taken on debt to expand the business, only to lose a customer of that size.  Some businesses can’t survive that kind of a hit; others survive, but with great difficulty and sacrifice in the way of layoffs and contract renegotiations.

As many of my clients know, it’s not easy to achieve the 15 percent target. It’s not uncommon for talented service providers to be approached by a large customer who wants more of their time, not less. I advise clients to be disciplined and politely dismiss opportunities that would make them more reliant on a large customer.

Even though the initial financial rewards may be tempting, there is an important trade-off in terms of autonomy.  A business owner who hitches his wagon to a single customer often feels more like an employee than a business owner.

Is your business in need of a more diverse base of revenues?  We have ideas about acquiring new revenue streams. Give Trillium a call at (404) 353-2148 or send us an email.

What is the One Best Yardstick to Measure your Business Success?

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Mike Iverson’s client had it all figured out. He knew exactly how well his business was doing every month, without researching complicated data or paying an expensive consultant. He just looked at his phone bill. If the number of outbound calls was up, he could bet that his revenues for that month would be up, too.

A reckless, haphazard guess? Just the opposite. Iverson’s client had found a simple metric that he could track every month and immediately gauge the health of his business.

The concept of a simple metric as a forecaster of financial health belongs to Norm Brodsky, a successful serial entrepreneur and writer for Inc. magazine. The idea is for every company to find that one magic metric – the connection between a routine business function and the positive growth of a company.

“I think every business has it,” says Mike Iverson, Numbers Coach. “Every small business can put a finger on a certain key number that can tell you how you will end up that month.”

The trick, of course, is uncovering exactly which numbers have that relationship in your business. For example, if call volume goes up and sales go down, you’ve got the wrong metric. It is important to track as many numbers as possible in the beginning, because it may take two years (or more) to find the leading indicator. Also, recommends Iverson, track the numbers by hand. The process of writing the numbers down with a pencil and paper will help you realize the connections.

Here are seven important metrics for any business. Track them for 3 months and see which one gives the greatest transparency to the rest of your business:

  1. The Trailing 12-Month Sales Average: By monitoring – and graphing – sales from the 12 months prior, you’ll get a visual of the progress of sales, while taking seasonal issues out. If it’s July 2025, look at July 2024 through June 2025. Graph each month’s sales and see where the highs and lows were, and what the average was. If that 12 month average is trending up, it’s good. If the graph line is flat or declining something is causing sales not to perform.“If you look at just sales numbers month to month, you won’t see it,” says Iverson. “This is a visual metric: you want to see that 12-month trailing graph trending up.”
  2. Operating Profit Percentage: This shows the extent to which a company is making a profit on standard operations. When looking for indicating factors, ask, ‘Is this percent holding steady, increasing or decreasing?’  You can also examine this on a trailing 12-month average.
  3. Accounts Receivables Cash Conversion Cycle: If you extend credit to customers, track how long it takes to collect cash from the time the bill is sent. What is your cash conversion cycle (or DSO – Days Sales Outstanding)? Be careful about the terms extended to your customers; you have set them for a specific reason. If customers go beyond those time limits, you’ll feel the pinch.
  4. Days Inventory Outstanding (DIO): In theory, you should keep the least amount of inventory on hand as possible. In a perfect scenario, you would get the order in just in time to have it manufactured and sent out; the longer inventory sits unsold the more of a drain it is on your cash.
  5. Disbursement Cycle: These are the terms you get from your vendors. The longer you can hold on to your money and the faster you get it from your customers, the better.
  6. Working Capital as a Percent of Your Revenue: This is an important financial set of measures to look at because it is often overlooked by business owners, says Iverson. “They know to look at the income statement. But if all that operating profit is getting absorbed into working capital, then there won’t be enough cash flow to grow the business,” he says.Receivables and inventory are investments.  (And in the same way vendors have an investment in you.) You’ll want to invest as little as possible of your revenue in working capital. Turn your receivables to cash, your inventory into billing, and hold on as long as you can to your money. Look at the number of days net working capital is invested every month (or cents on the dollar of what’s invested). If you don’t have enough cash flow to cover what you’ve got invested, you’ve got a problem.
  7. Return on Capital Employed (ROCE ) Percent: According to FinanceScholar.com, ROCE measures the efficiency and profitability of a company’s capital investments. For example, capital assets such as trucks and computers should help make the business more efficient, cut down on costs and realize greater profits.  The ROCE percentage also indicates whether the company is earning sufficient revenues and profits in order to make the best use of its capital assets. The higher the percentage the better.

Tracking the numbers involved with these seven metrics over a period of time will give you an idea of which is the leading indicator for your business.

“It seems like the concept would be complex, something more to it. But really there’s not. If you break it down and keep it simple, the metric can give a business owner an easier way to digest information and act,” says Iverson.

Start measuring today so you can figure out what actions to take in order to achieve your financial goals.   The Numbers Coach can help; just contact us at (404) 353-2148 or mike@numberscoach.net.

Numbers Coach Crafts Financial Models for Brewing Company

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COMPANY
In 1993, Red Brick Brewing (RBB) started as one of the first craft brewers in Atlanta.  The Red Brick team is dedicated to providing the consumer with world class Southern beers and ales.  The consumer gets a consistently great-tasting beer from unique blends of hops and other ingredients.  The RBB team of dedicated people are passionate about brewing the best-tasting Southern beer.  (Red Brick Brewing rebranded back to their original name of Atlanta Brewing Company in 2018.)

SITUATION
In 2012, the Red Brick team was transitioning its financial management and reporting with the goal of creating a financial model that would communicate the company’s key performance indicators (KPI) and drivers of its financial results to management and investors.  However, the team quickly found that it was challenging to accomplish this goal on their own.

SOLUTION: The Numbers Coach Financial Leadership Services
The Numbers Coach (“NC”) financial leadership services were an ideal fit for developing RBB’s customized financial model and metrics.  NC’s,Mike Iverson, created the model and also reviewed the company’s financial results each month to help the team identify areas of concern or improvement.

RESULTS
NC effectively pulled together the required financial and non-financial data to complete a customized financial model, providing insights for the team to do product and cash flow planning.  The model was developed with “what if” scenario planning capability.   This allows the team to see how changes to key metrics drive the financial results of the business.  The model also has the option to provide a rolling forecast for the team to get visibility on how they might finish the year given actual results to date.

According to RBB investor (and founder of North Highland Global Consulting) Dave Peterson:  “Mike at the Numbers Coach jumped in and set up a customized financial model that matched Red Brick’s business and key metrics.  His solid understanding of financial reporting and analysis provided our company with the right tools for financial planning.  We would highly recommend the Numbers Coach financial leadership services.”

For more information on Red Brick Brewing Company/Atlanta Brewing Company, visit https://atlantabrewing.com.

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

“Mike jumped in and set up a customized financial model that matched our business and key metrics.  His solid understanding of financial reporting and analysis provided our company with the right tool for financial planning.”  

Dave Peterson, Red Brick investor & founder of North Highland Global Consulting

The Numbers Coach Positions Nutrition Company to Evaluate Prospective Acquisitions

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SITUATION

Acquisition is one of many growth strategies a company may adopt, but it can also be a risky proposition.  BodyBlocks Nutrition Systems, Inc. began looking for companies that they could purchase to accelerate their growth plans.  In order to take advantage of these opportunities BodyBlocks needed to retain an experienced financial professional to evaluate the prospective purchase.

SOLUTION: The Numbers Coach M&A Support Services

BodyBlocks engaged the Numbers Coach (“NC”) to evaluate the financial structure and investment return of acquisition opportunities, including:

  • Developing financial models to understand the potential return on investment and operational characteristics;
  • Creating discounted cash flow models to understand the basic financial value of the prospective acquisition;
  • Financial due diligence support and analysis.

RESULTS

NC provided BodyBlocks with comprehensive financial reports and analysis to assess acquisition targets.  The BodyBlocks’ investor group was able to understand the risks and potential rewards of the acquisition, and the financial drivers of each opportunity.

The Numbers Coach Helps Secure Interim Financing for Practice Expansion

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SITUATION

In 2004, Pain Consultants of Atlanta, LLC (“PCA”), a leading pain management medical services firm, was in the process of negotiating a buy-out from their parent company. PCA saw an opportunity to grow by opening a new clinic in Atlanta, Georgia, but was unsure about expanding prior to the completion of their buy-out.  The management team determined that they needed to secure interim financing in order to move forward with the expansion.

SOLUTION: The Numbers Coach Leadership Services

PCA engaged the Numbers Coach (“NC”) to assist them in securing interim financing that would allow the company to continue on their growth path without requiring a large capital infusion.  They also needed to structure the financing in a manner that conserved cash flow during a crucial buy-out transition period.

RESULTS

NC helped PCA to obtain approximately $300,000 of short-term lease/purchase financing from several different financial partners.  This enabled PCA to continue its expansion during the interim period before the actual buy-out occurred.

Numbers Coach Establishes Financial Infrastructure for Start-Up

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SITUATION

BodyBlocks Nutrition Systems began their business launch in 2003.  The Founders were excited about their plans and the products that they would offer.  The Company received seed capital from friends and family to take the business from an idea on paper to a proof-of-concept.  The idea passed the feasibility study, and they were ready to raise the necessary capital to launch the business.

Body Blocks realized they needed a financial consultant who could take them from an idea to launch, and on to the next level as an emerging growth business. What did they need?

  • A comprehensive financial model designed to match their business strategy
  • Capital
  • Basic Financial Reporting
  • Administrative Infrastructure (financial, risk management, and human resource functions)

SOLUTION: Numbers Coach Financial Services

At the end of 2003, BodyBlocks hired the Numbers Coach “NC”) to help them in their financial leadership.  They did not have a need for a full-time CFO, but did need the financial expertise.  NC immediately designed a financial model so the company could begin the process of telling its “story” to potential investors, and raise the necessary capital to launch its products.  Within a few weeks the model was complete and ready for investor meetings.

At the same time NC began establishing infrastructure for the company finance and accounting functions.  A foundation was created so that costs were variable and fit the specific needs of an emerging growth company in the early stages of its evolution.  NC also advised Body Blocks on how to secure the right level of business insurance to protect company assets.

NC managed and designed the human resource functions, bringing together key HR resources to develop critical documents, formal personnel files, and policies.  Payroll solutions were implemented to ensure all taxes were reported in a timely manner.

Numbers Coach Advises & Establishes Financial Infrastructure for Pain Management Company Spun-Off from Parent Company

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SITUATION

Pain Consultants of Atlanta, LLC (“PCA”) is one of the leading pain management medical services firms in Georgia. In 2004 a decision was made by the owners to spin off PCA from its parent company.  PCA’s management team recognized the need for financial leadership during this time to help them navigate through the spin off and become a successful stand-alone company.

SOLUTION: Numbers Coach Financial Leadership Services

PCA engaged the Numbers Coach (“NC”) to provide recurring financial leadership services that would assist in the transition to an independent company.  NC developed a detailed plan with specific deliverables to meet the transition deadlines.

RESULTS

PCA has successfully established several key self-sustaining business components:

  • Established a billing department and acquired financing for the billing system and computer hardware necessary for successful in-house financial operations.  An internal billing and collections department allows for greater control and is designed for increased reimbursements.
  • Outsourced accounting functions to a bookkeeping firm, allowing the company to remain focused on their core business, instead of adding fixed operational overhead.  Outsourcing also provided a scalable accounting system that PCA can use during its growth phases.
  • Created and implemented a detailed transition plan to migrate PCA’s employee benefit plans from the parent company in a manner that protected the employee’s current level of benefits.

Health Check: Is Your Overhead Growing Faster than Your Revenue?

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As a Numbers Coach, we consult with many growing companies.  One unhealthy trend we often encounter is a company whose revenue growth is not keeping pace with the growth of its fixed overhead. This situation is manageable in the short term, but problematic in the long run.

In today’s economic climate, many businesses find it difficult to increase prices or find new sources of revenue. For those businesses, revenues are stagnant or perhaps even declining. At the same time, employee salaries and benefits, rent and utilities are all trending higher. So, what do do if you find your business facing this predicament?

Let’s take a look at two possible solutions for this challenge.

Possible solution #1: Lowering prices

Given stagnant or declining revenues, lowering prices to grab market share is one possible strategy. To increase revenues under this strategy, you need to increase the volume of products/services sold. This may be feasible, especially in mature industries where a fairly uniform set of product/service features makes differentiation difficult to achieve. In these circumstances, price can be an important differentiator.

  • Possible pitfalls:The tricky part is assuring that a price decrease results in more volume and, therefore, increased revenues. By offering lower prices, you bet that a reduced profit margin per sale will be more than offset by a volume increase. If you can’t accomplish that with certainty, you may cause a potential disaster – by lowering your gross profit to the point where it still doesn’t cover your overhead!

  • Our advice: Carefully analyze the financial ramifications of a proposed price change before implementing it.

Possible solution #2: Lowering Salaries and Benefits as a Fixed Expense

For many businesses, particularly those in service-oriented industries, employee-related expenses are the biggest part of overhead.   There are instances where cuts to employee expenses make a great deal of sense.

For example, consider a local plumbing contractor who has significantly less work than he had three years ago. Prospects for next year aren’t good, because construction starts here in the Atlanta area are still suffering. The contractor has to consider how to reduce his overhead, since revenue growth will be marginal at best.

  • Possible pitfalls: In theory, employee-related expenses are a logical place to look when overhead needs to be reduced. However, most business owners are very reluctant to make cutbacks in this area – with good reason. Cutting salaries produces immediate financial benefits, but those benefits may be offset by a loss of employee trust and loyalty. By following the advice below, it is possible to reduce overhead while retaining loyal employees.

  • Our advice: When there isn’t enough work to keep existing staff busy on a full-time basis, an employer has several options. First, he may choose to cut back the hours of all employees. Our plumbing contractor put his non-administrative staff on 30-hour work weeks. All the employees share the pain equally, but they still have jobs and they seem grateful for that. Another option is to identify employees who are under-performing and make necessary cuts. Every business has high achievers that need to be retained and rewarded. That is difficult to do in a poor economic environment, especially when other employees aren’t achieving nearly as much. For our contractor, eliminating a single position meant keeping five high achievers happy and motivated. From a long-term perspective, it was the right business move.

So when your fixed overhead expense growth outpaces your revenue growth, look to alternative pricing strategies or reducing selected overhead expenses to set you back on track. But remember: rational analysis trumps emotion when it comes to financial decision-making.

If you need an objective opinion about your options, just give us a call at (404) 370-6147 or send us an email, and we are happy to advise.

One Crazy Idea Can Revolutionize Your Business

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by David Shavzin

“We are too busy mopping the floor to turn off the faucet.”
Anonymous

Trying new things is always a good idea. We get stuck in ruts as individuals and as companies. “We have always done it this way, so why change?”   It can be hard to get out from under the day-to-day fires and step back to THINK.

Even in the best of times, we need to keep reinventing how we do things. But certainly during these challenging times! Even if the years since 2009 have been an economic anomaly, they have clearly changed the business environment, including every industry and every aspect of the economy.

You’ve likely heard the definition of insanity (attributed to various people, including Albert Einstein): “Insanity is doing the same thing over and over, expecting different results.” If you have not been hitting the sales targets you had set, are you going to keep doing what you have been doing? What are you going to do to ensure a successful year? What are your customers doing differently? How can that impact you? How can you adjust to take their new habits into account?

You cannot – and do not want to – change everything. But, how about one thing? Just one “crazy” idea.

Here is an example: Sales at The Home Depot were down due to housing market problems and lower consumer spending. Sound familiar? So, they decided to sell off parcels of their parking lots. They are taking pieces of those giant parking lots and selling them to retail outlets such as fast-food, pet stores and auto parts. Imagine being in the boardroom when that idea was suggested!!

Here is my advice: Get together with your partners, your management team, your employees or a couple of friends or colleagues. Brainstorm and come up with your “parking lot” idea.

Get in a room with a white board, a flipchart or paper and pen. Ask everyone to help you brainstorm new ideas…laughing is allowed, criticizing is not, everything gets Written Down, as reasonable or wacky as they sound. If you can, have someone facilitate to keep you on track – they should not participate but keep you focused. Alignment and agreement among the owners or the management team is critical.

The ideas may be slight twists on something you are doing today, or they may be the most ridiculous-sounding ideas you have ever heard – at first! They may have something to do with operations, finance, human resources, production, marketing, sales, customer service or any other part of your business. New markets, new products, new staff member, an improvement to your production or sales process.

How can you make at least one of these ideas fit your business this year? It may or may not work. If not, go back to that list and try something else!

David Shavzin is President of Shavzin & Associates, Inc., a Certified Management Consultant, and a master of crazy ideas. He can be reached at (678) 795-1750 or dshavzin@shavzinassociates.com