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Entrepreneurial business owners, is it time to consider a new approach to setting goals in the New Year? We’ve all been there. January 1 rolls around, and we set resolutions with the best intentions. “This will be the year I double my business,” we say. An article in Forbes 1 states by mid-February, 80% of people have made their resolutions a distant memory. Why? Because we have high ambitions hinging on mostly unrealistic and unsustainable methods, setting broad, lofty goals without a roadmap is like trying to sail a ship without a compass—directionless and daunting. There is a simple fix for this problem. Start the road map with some pre-work. The root issue? New Year’s goals should always start with who you are, how you want to serve, and what you want to enjoy. If you start a New Year’s Resolution with what is trending in the world, in business, or in society, you will leave some or all your resolutions behind as you realize there is a misalignment between who you are and what is trending. It’s all one path! As business owners, we are bombarded with tasks that can be exhausting and lack enjoyment. Goals should be derived from envisioning a picture of your personal world: God, business, family, your unique personal desire to share creatively, and the core of who you are, so your business and your world are synced within a set of goals. What should your world look like in the New Year? Don’t compartmentalize! Your business cannot be separated from all the rest; successful business owners know who they are and how they intend to serve. Get reacquainted with who you are, your personal talents to serve (clients, friends, family), and how you can get back to enjoying your life. Now we can talk about Business Resolutions You know what you want to achieve for your business. Now, make it a team effort. Go beyond your own efforts to engage your team in goals that are well aligned with their strengths and do it in a doable fashion that engages the spirit of growth together. The Problem with Most Resolutions Resolutions lack specificity, accountability, and, most importantly, our teams’ collective firepower. Transformative change doesn’t come from wishful thinking but from actionable, measurable steps involving everyone on deck. So, what’s the game plan? Shift from solo resolutions to team-powered actions. Set Specific Goals: Break down that big vision into smaller, achievable milestones. “Increase sales by 10% in Q1” beats “Double my business” for clear targets. Harness Team Strengths: Every member has unique skills. Use them to your advantage by assigning roles that match their strengths and watch motivation soar. Perform Regular Check-Ins: Make accountability a team effort. Frequent updates keep everyone on the same page and moving forward together. Celebrate Wins: Whether you hit a small target or make significant progress, celebrate as a team. This will help you feel more united and keep the momentum going. Making Sustainable Resolutions Remember, a sustainable resolution starts with the core of who you are as an owner, how you want to serve, and what is enjoyable to you. Once you know what you want to achieve for your business your team can help you get there. With some pre-work, a New Year resolution might spark the fire, and then your team’s day-to-day actions will keep it blazing.
Listen to this post as a podcast: www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services. The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor. The views expressed in this commentary are subject to change based on the market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability, or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. Bloomwood is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Bloomwood and its representatives are properly licensed or exempt from licensure. 730 Starlight Lane, Atlanta, GA 30342.
Handed-down recipes are part of the time-honored processes and traditions we cling to. But just like in cooking, sticking too rigidly to “grandma’s secret recipe” could mean missing out on discovering a version of the next culinary masterpiece! Give your team the freedom to experiment, adapt, and sometimes throw out the recipe book altogether. Let’s stir things up and talk about the “kitchen” of innovation—your business. Your team’s collective creativity and unique blend of skills are the secret ingredients that can transform a good dish or idea into an exceptional one. You must trust the innovation process, encourage culinary rebellion, and watch your team cook something truly extraordinary. Stepping Outside the Recipe Box Inspires Innovation In business, as in life, the well-trodden path can feel comfortable and safe. Established practices are like cozy blankets, offering the warmth of familiarity. However, by stepping outside our comfort zones and embracing the unfamiliar, businesses and individuals could unlock a world of creative possibilities that can lead to groundbreaking solutions. Comfort Zone vs Creativity The familiar “that’s how we’ve always done it” approach kills creativity. While some routines can breed efficiency, they rarely foster the deep, lateral thinking required to solve complex problems in unique ways. Creative solutions are born from questioning the status quo and daring to believe there might be a better pathway forward. A Dash of Chaos, a Sprinkle of the Unexpected Chaos isn’t always the enemy of progress; sometimes, a little disorder is needed to stir the pot of creativity. Consider mixing departments for brainstorming sessions that could lead to unexpected, innovative solutions, bringing together different areas of expertise because they don’t typically work closely! The insights gained from experiences outside their regular roles can spark brilliant ideas that may never have surfaced otherwise. Cross-Disciplinary Thinking One of the most exciting aspects of venturing beyond your comfort zone is the potential for cross-disciplinary ideas. Innovators like Steve Jobs were renowned for drawing inspiration from diverse fields, such as calligraphy 1, to inform computer design. So, jot down those “unconventional” ideas in meetings. Roll them around, play with them, and see where they take you. They might become disruptive innovations that differentiate your business in a crowded marketplace. Learning from the Outliers History is peppered with examples of businesses, such as Amazon, American Express, and Netflix, that chose the path less followed and, as a result, redefined their entire industry 2. These outliers didn’t achieve such feats by closely following the recipe laid out by predecessors. Instead, they carved their own paths, sometimes through fields entirely unrelated to their primary goal. Outside the Box Potential Stepping outside the box is an invitation to spark new ideas, tap into unexplored abilities, and produce creative solutions that reframe the possibilities of what can be achieved. When we step outside our normal routine or method, we open the floodgates to fresh ideas and perspectives that propel the business forward. Conclusion Remember, innovation isn’t just about the end result but also the journey. To fuel your people power, you should take a step outside the box — the future is bright with the ingredients of innovation. The
A Rollovers as Business Start-ups (ROBS) strategy for starting or buying a business has numerous benefits, including ready access to cash flow and
As small business owners and leaders, we’re no strangers to the daily grind of comparison and competition. It’s easy to look at the success of others and wonder if we measure up. But this Thanksgiving, we’re taking a page out of Heather Holleman’s novel1, “Seated with Christ: Living Freely in a Culture of Comparison,” and the transformative words of Ephesians 2:6: “God raised us up with Christ and seated us with Him in the heavenly places in Christ Jesus.” In the hustle to prove our worth and carve out a place in the market, realizing that your seat at the table is already secured is revolutionary. This isn’t about your turnover, your team size, or the number of followers on social media. It’s about recognizing the value you bring to the table just by being you, backed by the firepower of your determination, creativity, and the unique vision only you possess for your business. The Overlooked Seats Comparison is the thief of joy in business, and it’s also the thief of innovation and growth. The environment of inauthentic seats fuels comparison, the moment you and your team stop eyeing the lane beside you is the moment you turbocharge your path forward. Your business isn’t like anyone else’s—for a reason. The individual strengths and talents within your team are your biggest asset, waiting to be unleashed. Recognize and harness the power of these unique capabilities to drive people-powered change. A Secure Seat on The Team Your team—the one you’ve built, trained, and grown—holds untapped potential. Just as we are seated with Christ in a place of honor and security, so too should our team members feel valued and vital to our mission. This Thanksgiving, let’s take a moment to express genuine gratitude for the diverse skill set each member brings to the table. When people feel valued, they’re more engaged, productive, and innovative. And that’s how a small business not only survives but thrives. The Power of People-Powered Change FIREPOWER Teams is founded on the belief that the power of a small business lies in its people. “Fuel your people power” isn’t just a motto; it’s a mission statement and a call to action. Reflect on how you can empower each team member to contribute their best this holiday season, fully aware that their seat at the table is as non-negotiable as yours. Thanksgiving is a time of gratitude, reflection, and community. As business owners, it’s a prime opportunity to reassess what we’re thankful for and how we express that gratitude through our actions and leadership. Let’s enter this season with a renewed commitment to value ourselves, our team, and all our unique contributions. Let’s reject the ceaseless comparison and instead focus on fostering an environment where everyone feels seated at the table—secure, valued, and ready to make a difference. The entrepreneurship journey is rarely easy, but with a team that genuinely feels like their efforts matter, there’s untold strength to be garnered. Your business, team, and vision have a secured seat at the table. Let’s give thanks for that incredible opportunity and the journey ahead. Conclusion Remember, the most sustainable growth comes from within. Thanksgiving is a time to rekindle our appreciation for the value we each bring to the table, reminding us that when we work together, there’s nothing we can’t achieve.
Halloween isn’t just a time for ghosts and goblins; it’s also a perfect moment to explore those spine-chilling hiring stories that haunt every small business owner’s dreams. At FIREPOWER Teams, we’re all about turning fears into cheers by empowering actionable strategies and strengthening teams. Let’s face the horrors—a bad hire can lurk in the shadows, embodying the kind of nightmares that disrupt teamwork and stifle growth. But fear not! As you learn about these ghastly characters, remember that each horror story comes with a silver lining: a powerful lesson to enhance your hiring process and bolster your team dynamics. The Vampire – The Energy Drainer Traits: This hire sucks the positivity and energy out of your team, often leaving colleagues drained. Impact: Reduced team morale and productivity. Prevention: During interviews, ask behavioral questions that help you gauge a candidate’s influence on team dynamics. Consider including team members in the hiring process to assess chemistry. The Zombie – The Disengaged Traits: Goes through the motions but lacks initiative and passion. Impact: Minimal contribution to team goals and lack of contribution to goals. Prevention: Look for candidates who ask questions about company culture and show enthusiasm for the role because the job description accurately reflects the role’s responsibilities and opportunities for growth. The Mummy – Stuck in the Past Traits: Resistant to change and new ideas, insisting on doing things “how they’ve always been done.” Impact: Hinders adaptation and progress. Prevention: Look for candidates willing to learn new things. Ask them about situations where they had to adapt quickly or change their approach to succeed. Hiring Doesn’t Have To Be A Nightmare Each of these eerie archetypes teaches us that hiring is not just about filling a vacancy but about enriching our teams and aligning with our core values. Hiring should be strategic, and at FIREPOWER Teams, we understand that the right people are the lifeblood of any thriving business. Each new hire should contribute positively to the team’s dynamics and the company’s mission. Remember, hiring doesn’t have to be a nightmare. With the right tools and insights, you can spot red flags early and attract talent that fits the role and elevates your entire team. Let’s turn these horrors into opportunities. Happy Halloween, and here’s to making every hire a treat, not a trick! Maria Forbes and
In recent years, workplace discussions around diversity and inclusion have gained unprecedented momentum. Unfortunately, one facet of this multifaceted issue often gets overlooked: ageism. By dispelling negative ageist cliches, we not only uphold the dignity of older workers, a fundamental aspect of respect, but also unleash the full potential of an experienced workforce. This shift in perspective can lead to a more inclusive, dynamic, and productive work environment where the wealth of knowledge that older employees bring is embraced and celebrated. The Reality of an Aging Workforce The statistics are clear 1. By 2031, workers aged 55 and older will make up over 25% of the U.S. workforce. Additionally, 41% of American workers plan to work beyond 65. These figures underscore the urgent need for a shift in perspective, as many companies overlook the wealth of experience and knowledge this demographic can bring to their team. The Impact of Negative Ageist Cliches Ageism, stereotyping, prejudice, and discrimination against individuals or groups based on their age are particularly pernicious in the workplace. Older workers often battle stereotypes that paint them as being out of touch, slow to adapt to new technologies, or less productive than their younger counterparts. These misconceptions can have profound effects for an individual and lead to an imbalance of problem-solving wisdom. Bias of any kind will hurt the organizational bottom line. Without a diverse workforce, an organization has too much of a good thing. Leaders must be cognizant of the potential loss of valuable institutional knowledge, a crucial factor in organizational continuity. 1. Detriment to Team Member Morale and Motivation Persistent undervaluation of older workers can significantly impact their motivation and engagement. When employees feel dismissed or underestimated because of their age, morale, productivity, and ability to connect with their teams, decrease. This is harmful to both the individual and the organization. Age discrimination is real 2. Two out of three workers between ages 45 and 74 say they have seen or experienced age discrimination at work, and job seekers over age 35 cite age discrimination as a top obstacle to getting hired. If you happen to work in the high-tech industry, your chances of experiencing age discrimination are even higher. 2. Lost Opportunities for Knowledge Sharing One of the most significant losses when older workers are sidelined is the missed opportunity for cross-generational knowledge transfer. Seasoned employees possess a wealth of experience, insights, and skills honed over years of service. This depth of knowledge is invaluable, particularly when paired with the fresh perspectives and tech-savviness of younger employees, creating a powerhouse of innovation and problem-solving capabilities. 3. Diminished Diversity and Inclusivity True diversity and inclusivity extend beyond ethnicity, gender, or sexual orientation and should encompass age. A workforce that appreciates and leverages the strengths of employees across the age spectrum is more representative of society and is better positioned to respond to the needs of a diverse customer base. Older Workers: A Valuable Resource 1. Rich Experience and Expertise Older workers bring an unparalleled level of expertise and experience. Their years in the workforce equip them with a nuanced understanding of their industry, a comprehensive knowledge of company history, and a network of connections that can be leveraged for strategic advantages. 2. Stability and Reliability Older employees can often be depended on to present greater stability and reliability than their younger counterparts. They tend to have lower turnover rates, which translates to reduced hiring and training costs. Their dedication and loyalty to their roles contribute to a stable workforce, which is critical for long-term planning and growth. 3. Mentorship and Leadership Older workers are invaluable resources for mentorship and leadership within organizations. Their insight and guidance can help nurture the next generation of professionals, ensuring a legacy of knowledge and skills that support the company’s future success. In Conclusion, Embracing an Age-Diverse Workforce is a Competitive Advantage As the American workforce continues to work later into life, employers must make a concerted effort to create a workplace that values and promotes age diversity. Debunking negative ageist cliches and recognizing the invaluable contributions of older workers are essential steps toward building more inclusive, innovative, and successful organizations. By tapping into unique strengths and perspectives across the employee age spectrum, companies can enhance their competencies and competitiveness and foster a culture of respect and appreciation for a workforce rich in diversity of knowledge. Citations Article by Growthspace: The hidden potential of older workers: A strategic advantage
ROBS – or use funds from their existing personal 401(k) or other retirement accounts as capital for buying a business. In addition to creating cash flow and minimizing the use of debt, ROBS are an attractive source of funds unlocking value from an individual’s retirement savings to fund a business, what are the tax advantages that make considering a ROBS strategy worthwhile? First, there is the aspect of tax deferral. Financing through ROBS avoids the early withdrawal penalty normally incurred when funds are withdrawn from retirement savings prior to retirement. When you use the capital from your 401(k) to fund a new income taxes or penalties, more money is available to go into the business, thus maximizing your available capital. In addition to increasing capital efficiency, you avoid loan obligations because ROBS is not a debt product. It’s simply accessing the equity you already have built up in your retirement plan, so there’s no monthly repayments or interest like you would incur with a loan. Accessing Business Capital Through ROBS Here are some points to remember about how the flow of money works when using a ROBS strategy: The new business entity to be funded must specifically be established as a C-Corp. After a new 401(k) or profit-sharing plan is the business advisory space and how to implement a ROBS strategy. For a consultation on your business plans and objectives, please contact us at 770.740.0797 or email info2@SJGorowitz.com.
As a small business owner, your instinct might tell you to seize every opportunity that knocks on your door. Let’s face it: saying yes can be a thrilling ride into new ventures. Sometimes, you need to remind yourself of your organizational Sweet Spot. Does your team have the bandwidth, the people power, and the infrastructure to take it on? Sometimes, saying no is not just the better option; it’s a powerhouse move that aligns your business with your growth goal. Here’s the lowdown on when, how, and why flexing your “no” muscle is your smartest play. The Unmanageable Yes When you’re overcommitted and under-resourced, every additional yes is like adding more weight to an already overstretched team. If saying yes means sacrificing the quality of your work, spreading your resources thin, or burning out your team, then it’s time for a firm, resolute “no.” Remember, quality over quantity isn’t just a great saying – it’s the golden rule for sustainable growth. The Misaligned Opportunity Some opportunities seem golden on the surface, but they won’t help you achieve your business mission, vision, or values. Listen up: Your business is your compass; every decision should steer you to your true north. If it doesn’t fit, say no. It’s not just about avoiding the wrong turn; it’s about staying true to your course and your team’s potential. The Power of Prioritization Here’s a reality check—you can’t do it all. When you say no to less important things, you say yes to more focus, energy, and time for what truly matters. Embrace the art of prioritization because knowing what to decline is as vital as knowing what to pursue. Make your yes count! Cultivating Respect Saying no isn’t just about protecting your time and energy; it’s about setting boundaries. Assertiveness isn’t rude; it’s a sign of respect – for yourself, your team, and your business’s vision. When you respect your limits, others will follow suit. It signals to the world that your time, team, and resources are valuable. Conclusion Saying no is a tough decision. It’s not a negative judgment; it’s a selective choice. Think of the word no as a complete sentence and a powerful tool to guide your business to where it truly belongs. So, the next time you’re faced with a request that doesn’t feel right, plant your feet, take a deep breath, and remember that saying no is not just okay—it’s essential for your business’s health and ongoing success. Do you need to get in your Owner Sweet Spot?
There’s a huge demographic shift happening in the United States, as Rollovers as Business Start-ups. ROBS are rollovers that utilize your existing 401(k) retirement funds to finance a new or existing business without incurring early withdrawal penalties or buy a business, and you may not want to take on debt. The ROBS mechanism is a way to utilize your 401(k) savings to access the capital you need without incurring early withdrawal penalties. Advantages of ROBS Advantages of the ROBS financing method include: Debt-free financing. With ROBS, you’re not borrowing money to put as a payment, a down payment or principal payment on a business. ROBS funds are equity you already have that ordinarily can’t be accessed because of the distribution rules of retirement plans. Preserved cash flow. Using saved capital eliminates concerns about high interest rates that can hinder business growth. Improved business success rates. ROBS may contribute to a business’s success compared with traditional methods of financing. Owners using ROBS are fully vested and perhaps more incentivized to make the business work. In addition, there’s no impact on personal credit. Steps to Using ROBS to Fund a Business Here’s how ROBS work and how to start the process. The first step is establishing a retirement plan like a 401(k) or profit sharing plan for the acquired C-Corp business. The third step is rolling over funds from your personal 401(k) into the new corporate 401(k). The new retirement plan purchases stock in the corporation, which provides it with the capital needed. You can continue to make ongoing retirement contributions to the tax-advantaged retirement account as the business grows. Points to Know about ROBS Whenever money goes back to the 401(k), there’s a sale of the business, or the business declares dividends, that money will pass back directly to the shareholder’s 401(k) plan. There’s the potential for a total loss. If the business fails, your stock in your C-Corp could go to zero, providing a loss to your 401(k). There’s a cash flow and business financing options can help you set up your C-Corp and determine how to make the ROBS strategy work for you. Having a professional help you navigate ROBS’ complexities ensures compliance and
Qualified Small Business Stock is a type of stock that includes immense tax relief for investors. Those benefits serve to stimulate investment in small businesses by mitigating the tax consequences that attach to their returns. Below is an article that discusses the definition of QSBS, the relevant IRC section at play, the tax benefits flowing from QSBS, the standards for obtaining QSBS, and the costs and importance involved in gaining a QSBS certification. What is Qualified Small Business Stock? Qualified Small Business Stock is that class of stock issued by a small C corporation that meets specific qualifications specified in the Internal Revenue Code. It enables the investor in QSBS to exclude from federal income taxation up to 100% of the capital gain realized upon the sale of such stock, provided certain requirements are met. The provision is meant to incentivize investment in startups and small businesses as a means of promoting innovation and driving economic growth. Governing Section of the Internal Revenue Code Treatment of QSBS is given under Section 1202 of the Internal Revenue Code. This section was enacted as part of the Revenue Reconciliation Act of 1993 and has undergone several amendments to expand the benefits available to investors. Section 1202 outlines those requirements that must be satisfied for stock to qualify as QSBS, along with particular tax benefits available to the investors. Examples of Qualified Small Business Stock Tax Benefits Investing in QSBS offers substantial benefits in terms of tax. Example: Exclusion of Capital Gains: Depending on when the QSBS was acquired, up to 100% of the capital gains from the sale of QSBS can be excluded from federal income tax. The exclusion percentages are as follows: 50% of the stock acquired from August 11, 1993 to February 17, 2009. 75% for stock acquired between February 18, 2009 and September 27, 2010. 100% for stock acquired after September 27, 2010. Limitation on Gain: The amount of gain to be excluded is limited to the greater of $10 million or ten times the adjusted basis in the stock. The generous cap allows for significant tax savings by investors. The Alternative Minimum Tax (AMT) stipulates that gains exempted under Section 1202 do not qualify as preference items for the purposes of AMT, potentially offering supplementary tax relief. State Tax Benefits: Some states follow federal QSBS exclusion rules, giving additional state tax benefits. Investors should check the particular rules of the state pertaining to QSBS. How to Meet the QSBS Requirements To qualify for QSBS treatment, certain requirements must be met: Qualified Small Business: The issuing corporation must be a domestic C-corporation and it must meet the definition of a “qualified small business.” A qualified small business is one in which the corporation’s aggregate gross assets do not exceed $50 million at any time before and immediately after the issuance of the stock. Active Business Requirement: During at least 80% of the period the investment is held, assets of the corporation must be used in the active conduct of one or more qualified trades or businesses. The following types of businesses specifically do not qualify:. The stock must be obtained directly from the corporation when the stock is originally issued, in exchange for money, other property but not stock, or as compensation for services. Holding Period: The investor must hold the QSBS for more than five years to qualify under the capital gains exclusion. These requirements are often complex to navigate, and guidance is usually sought from a tax specialist to ensure compliance with the law. What is a Qualified Small Business Stock Attestation? A Qualified Small Business Stock Attestation is the declaration of a corporation; a formal statement that the stock of the particular corporation meets all the qualifications necessary for the classification to be deemed a QSBS under Section 1202 of the Internal Revenue Code. This certification gives assurance of qualification both to investors and the tax authorities, confirming the eligibility for the tax advantages to the owners. Importance and Cost of a Qualified Small Business Stock Attestation Investor Confidence: It enhances investor confidence because the attestation is basically a documented proof that the stock is qualified for favorable tax treatment; thus, making it more attractive to prospective investors. Tax Compliance: An attestation plays a crucial role in confirming adherence to tax regulations and can promote more efficient engagement with tax authorities. It functions as proof that the corporation satisfies the QSBS requirements, which may streamline the tax reporting procedure. Risk Mitigation: The attestation works by giving a risk mitigation of disputes or challenges in the future that may develop in the mind of the IRS about the stock’s QSBS status. Cost The costs for obtaining a QSBS certification will depend on many factors, such as the extent of complexity of the company’s organizational structure and how much any given professional services company charges for providing the certification. In most cases, the costs range between several thousand to tens of thousands of dollars. Regardless of the monetary investment, the tax advantages likely to be gained for the backers, coupled with increased certainty of conformity, could make the expense a wise investment. Conclusion Qualified Small Business Stock provides substantial tax advantages to investors in the interest of enabling small businesses to energize the economy. Controlled by Section 1202 of the Internal Revenue Code, QSBS enables considerable exclusions from federal income taxation of capital gains. However, fulfilling these requirements can be tricky, and the ability to get a QSBS attestation may provide much value through assurance with compliance and qualification for huge tax benefits. Although obtaining such certification does involve some costs, the potential tax incentives and reduced liabilities make it an important consideration for companies and investors alike.
Today we are highlighting the FIREPOWER Owner Sweet Spot Sessions! We’re about to embark on a game-changing conversation that will revolutionize the way you approach your business. It’s time to shift gears and start envisioning the future of your company in a new personal role. The Small Business Universe: Common Concerns of Owners Similar concerns echo throughout the small business universe. Maybe you feel like you’re lacking the right leadership, or worse, you don’t have any leadership at all. Perhaps your workforce has hit a plateau, or you’re dealing with the frustrating challenge of high turnover. And let’s not even get started on the never-ending cycle of decision-making, where it feels like you’re carrying the entire load on your own. What is the Work that Only You Can Do? We’re here to share a secret to successfully moving your business into the future. It all starts with a simple question: What is the work that only you can do? It’s time to tap into your natural talents and abilities that have fueled your business success from its inception and then refocus your efforts in a new way. Now, brace yourself for a little revelation that’ll bring a smile to your face. The answer to that question is much less than what you’re currently doing. Yes, you heard it right. You’re probably sporting way too many hats, it’s time to bid farewell to those unnecessary responsibilities and rediscover your true sweet spot. Enter the FIREPOWER Owner Sweet Spot sessions. These sessions are crafted to help you pinpoint those burdensome responsibilities that are holding you back from doing the work your company desperately needs from you. We’re here to lift that heavy weight off your shoulders and set you free to focus on what truly matters in achieving your future goals. Deciphering the best use of your time is the key to solving both short-term challenges and long-term business goals. It allows you to stay fully engaged in the work that only you should do, helps your teams to know your true superpowers, and ultimately unleashes your full potential to lead your company into the future. At FIREPOWER, we truly get the challenge, we live it every day. We understand the struggles you face as an owner. Juggling numerous roles and tasks can be incredibly overwhelming and downright draining. But here’s some fantastic news – it doesn’t have to be that way. By identifying your unique strengths, you can reclaim your valuable time, restore your energy reserves, and reignite your enthusiasm for your business. So, are you ready to unlock your Owner Sweet Spot? Then it’s time to bid farewell to all the hats you’ve been wearing, delegate those unnecessary responsibilities, and rediscover the true value you bring to your company. Our owner-focused approach led by Maria Forbes, will expertly guide you through the process, empower your team, and take your business to unprecedented heights. Conclusion Remember, sustainable growth flourishes when you harness the potential of your team and become laser-focused on the work that only you can do. The number of hats you wear will shrink, while the quality of your life expands. It’s time to embrace the FIREPOWER within you and achieve the success you’ve always dreamed about. Together, we can make it happen! Fuel your people power, Maria Forbes with FIREPOWER Teams
What is the cornerstone in the strategy for scaling and preparing your business for the future, to grow, to thrive, and to build a legacy that lasts? That’s right – Regular Progress Check Meetings! Think of them as your business’s GPS, helping you navigate the winding roads of growth and strategy. These are not the same conversations as the old water cooler chats. These are checkpoints along the journey to ensure your highly regarded employees and associates are engaging purposefully and meeting the expectations of their roles. Why are these meetings essential? Here’s the breakdown: Tracking Growth: Stay updated and informed about your Team’s collective journey to success. Ensuring Alignment: Everyone must know not only the what but the how and why behind their goals, ensuring harmony as you move forward collectively. Unify Direction: This is where your team member’s hard work shines. Each team member’s contribution is crucial and should enable the entire team to move in sync towards a common goal. When every team member is crystal clear about their role, that’s when the magic happens. That’s when a small business is not just a player, but a force to be reckoned with. Use a Progress Check Meeting to fuel team participation and guide your business growth. Team participation means understanding each role and its impact, assuring that every step takes us closer to our goals. Remember, in your team every voice is influential, and your team’s ideas, feedback, and perspectives are the answer to the next level of greatness and success in your business. With the guidance of Maria Forbes and FIREPOWER Teams, you can empower your team to drive sustainable growth. Let’s Connect!
Can you Offer Too Many SKUs to Your Customers? The short answer is YES! A SKU, or Stock Keeping Unit, defines each different product version that you sell and keep inventory of. There may be different SKUs of the same overall item based on size, color, capacity (think computer or cellphone memory), features, and many other parameters. For build to forecast businesses, that number of variations can quickly explode and become difficult to manage. Your customers are busy and want ordering simplified. Of course, they may need (or want) more than one variation of a product. That is reasonable and a common aspect of business – one size does not fit all! But there is a point where too offering too many SKUs is not value added either for your customer or your business. In his April 30, 2013 article “Successful Retailers Learn That Fewer Choices Trigger More Sales” in Forbes, Carmine Gallo discusses his experience and a study about “choice overload” by other authors. He writes about a retailer that “has discovered that giving a customer more than three choices at one time actually overwhelms customers and makes them frustrated…when the customer is faced with too many choices at once, it leaves the customer confused and less likely to buy from any of the choices!” Choice overload is well-documented in consumer studies but can apply in B2B as well. While customer satisfaction is important, another key concern is the often-hidden costs associated with a business offering and managing a large number of SKUs for a given product type. These costs include holding inventory, S&OP (Sales and Operations Planning) team time, small production runs, and scrapping inventory. Holding inventory takes up space, which may come with a cost or utilize racks that could be used for other products. Scheduled inventory counts take up employee time and may result in blackout periods when the warehouse is not shipping product. The more SKUs there are, including extra SKUS, the greater the potential impact. The Sales team’s forecasting and the Operations team’s purchasing reviews that are part of the S&OP process can occupy more of their valuable time if they need to consider these times. If small orders or forecasts require a new production run, this could be costly and create excess inventory. Whether from this new production or past builds, eventually it will make sense to write off and scrap old inventory, another cost impact to the company. How do you know which SKUs to focus on if you wish to look at reducing your total number of SKUs? Start by examining SKUs that have: Low historic sales over a period of time Small variations between SKUs that customers do not value Older technology or model when newer option SKUs are available This requires a true partnership between Sales and Operations. It starts with educating both teams on the costs involved – neither group may be aware of the money and time impact to the company. Periodic (such as quarterly) reviews of SKUs that meet the above descriptions should become a fixed part of the calendar. A review of the data and other available for sale options should result in the identification of SKUs which may not be needed. At that point, it is helpful to have a customer friendly EOL (End of Life) Notice process by which you inform customers of last time buy requirements for this SKU and alternates available. It is usually best to provide some time for the last time buy in the interest of customer satisfaction, although that may not always be necessary. At a company that designed and sold electronics, a robust SKU rationalization process was implemented to help address these issues. A representative from the Operations team analyzed SKUs that met a version of the above criteria and suggested candidates for the EOL process. Next, a member of the Sales team reviewed them and, where appropriate, issued product change or EOL notices to customers, providing them time for last time buy orders when needed. These steps helped reduce the work involved in maintaining these SKUs while not leading to any customer complaints. A final note – sometimes it makes sense to continue offering low selling SKUs – to support customers buying other items (hopefully in larger quantities). It may be worthwhile to encourage them to keep coming back to you for all of their product needs and this may be a way to accomplish that. But it helps to understand that this is truly the case and not assume that this customer would not be equally happy with another, more popular, SKU. Steven Lustig is founder and CEO of Lustig Global Consulting and an experienced Supply Chain Executive. He is a recognized thought leader in supply chain and risk mitigation, and serves on the Boards of Directors for Loh Medical and Atlanta Technology Angels.
I wrote earlier about the value a closed loop employee suggestion program can provide. These do provide significant benefits, but there is no need to limit continuous improvement suggestions to those inside the company. Customer and supplier surveys can provide great insights into such opportunities while also enabling the company to collaborate better with key partners. However, like employee initiatives, if they are not managed well, they can leave you worse off than if you never asked your suppliers and customers for their help. Designing the survey is important – this is not the time to ask leading questions or pressure the recipients to provide high numerical scores because somebody’s annual performance review or bonus depends on it. If you want to obtain honest answers, understand what the customer or supplier values, and receive useful responses on what is working well and what is not, objective survey questions are needed. It is great to ask about their level of satisfaction with relationship-specific functions. For a customer survey, this could include asking about responsiveness, on-time delivery, quality, etc. For suppliers, this may involve questions about purchase order and other documentation accuracy, on-time payment and more. You may also wish to ask some higher-level questions, such as: What is one thing that we are doing that we should keep doing the same way? What is one thing that we are doing that we should improve? What is one thing that we are not doing that we should do? What is one thing that we are doing that we should not do at all? The quickest way to turn this into a negative experience is to ask customers (especially) and suppliers to spend time completing these surveys and then nothing is done with the results. They will have an expectation that their time and opinions are being valued. Failure to respond will create frustration – I have seen this firsthand. Similar to the best practice for employee suggestion programs, before you send out surveys to customers or suppliers, it is critical to commit the resources to: reading, evaluating, and consolidating the responses developing and executing improvement initiatives based on those comments promptly responding to the survey respondents on what actions are being taken based on their survey participation Depending on the actual responses, it may be necessary to also diplomatically explain why certain requests are not being acted on – we can easily imagine a customer utilizing the survey answers to ask for unrealistic price decreases or other concessions. Surveys can be periodic (quarterly or annual) independent events or incorporated into Quarterly Business Reviews or other meetings. Some suppliers may be unfamiliar or uncomfortable with customers requesting their honest feedback. Their past experience with other customers (and even with your own company) may be limited to customers telling them what to do better and never asking for their insights. They may be afraid that if they provide honest continuous improvement feedback it will not be well-received and may even be held against them. It may take assurances and several iterations before they trust the process. It is essential that your company receive these suggestions as they would acknowledge ideas from the customer, demonstrate that they appreciate them, and act on them as appropriate. Once that level of trust is established, suppliers can be key partners in improving how you enable them to support you. I have had to work with suppliers to help them get comfortable with what to them was a novel request so don’t accept the response that everything your company is doing is great. I recall one occasion when I was responsible for combining the best New Product Introduction processes between two different divisions of the same firm. Aside from taking the time to understand each group’s steps, I found it valuable to ask the shared external manufacturing partner for their input on which of those differing steps best assist their ability to support our needs. Of course, showing where their advice was used to implement new standard processes or explaining why certain suggestions were not utilized was important to this closed-loop process. Your key customers and suppliers can be some of your strongest allies in your quest for continuous improvement. A robust closed-loop survey process can be an effective tool in this effort while simultaneously creating a stronger, more collaborative relationship with those external partners most critical to your company’s success. Steven Lustig is founder and CEO of Lustig Global Consulting and an experienced Supply Chain Executive. He is a recognized thought leader in supply chain, manufacturing, and risk mitigation, and serves on the Boards of Directors for Loh Medical and Atlanta Technology Angels.
During my first visit to one factory, I quickly noticed on a wall in the lobby a collection of cards with employee suggestions – normally a good sign of a facility’s commitment to continuous improvement and employee engagement. A closer look revealed the opposite – improvement ideas that were months and even quarters old without any response or follow up. While creating that program was a good idea, the lack of follow through likely discourages employees from contributing further suggestions. Unfortunately, that company is not alone. This all-too-common practice is highlighted in the article “Companies Often Solicit Employee Feedback but Seldom Act on It” (in the May-June 2024 issue of Harvard Business Review) which discusses a 2023 Gartner white paper “Employee Engagement: Close the Action Gap to Drive Business Outcomes” by Jen Priem. Employees want to help. In fact, “40% of survey respondents said they would rather have difficult processes fixed than receive more career development opportunities”. That interest is not always matched by a company’s efforts. Aside from the missed opportunities in quality, cost, efficiency, and safety improvements, this also negatively impacts employee engagement: “only 34% said they thought their companies would act on feedback they provide” so why would they take the time and effort to participate? Setting up an effective employee suggestion program is more than placing a box for suggestions or creating an internal software tool. To be successful, the company needs to dedicate management effort and commit to a timely, closed-loop initiative. A cross-functional management level team should be established to review the qualifying ideas. This does not need to be top management but should be leaders high enough such that they can approve and implement many ideas themselves and have ready access to higher level managers to discuss larger improvement suggestions. A coordinator, perhaps someone from the quality department or in an administrative role, can be designated to facilitate the program – helping create the methods for employee suggestions, collecting the inputs, and maybe conducting a first level sort of ideas (the entire review team does not need to spend time on the suggestion to paint the bathroom a different color!) This team should meet frequently (perhaps monthly) to evaluate and prioritize the employee suggestions that were submitted since the last meeting. Plans to implement or investigate the most valuable ideas should be developed. Someone on the team should be designated as a sponsor of each such idea to obtain updates and ensure progress even if the responsibility for investigation or execution is handed over to a functional area leader. Often, a team of employees from the impacted area(s) will be created – this helps make use of their more detailed knowledge and improves buy-in to the solution. Whenever possible, the employee who suggested the improvement should be included on this implementation team. There are different ways to celebrate the improvement ideas that were selected for implementation – monetary and non-monetary awards, inclusion in the employee’s performance review, public recognition, plant competitions, etc. The choice will depend on the company’s and location’s culture. Communication is key to a successful employee suggestion program. Leadership should consistently share its enthusiasm for the improvement idea program and what type of ideas are desired (not that bathroom color suggestion!). Leaders can also show their support by attending events associated with this program. Regardless of whether a valid improvement suggestion was approved for further action or not, it is important that a member of the team (for example, the facilitator) always provides prompt feedback to the employee on the decision and why that was the determination. This closed loop aspect is essential if the firm wants to continue receiving, and benefit from, employee ideas. Are there other sources for great ideas beyond your employees? Stay tuned…. Steven Lustig is founder and CEO of Lustig Global Consulting and an experienced Supply Chain Executive. He is a recognized thought leader in supply chain and risk mitigation, and serves on the Boards of Directors for Loh Medical and Atlanta Technology Angels.
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