Dealing with Change

The country and its business environment is going through transformation. How should Entrepreneurs deal with this change?

A simple saying –  “Complain not about the wind. Adjust your sails.” – offers great business advice for Entrepreneurs in these times.

It is very easy to complain about all the things that are preventing Entrepreneurs from succeeding. Some of the issues faced by Entrepreneurs including cash shortages, employee layoffs and poor morale, unsustainable overhead and fixed expenses, misaligned ratios of variable expenses to revenues, customer and product/service issues, high debt levels, government regulations, high tax rates and so on are ripe topics for complaining.

Losers will take this opportunity to complain and find excuses to rationalize their failure, just as a poor sailor frets about the winds.

Winning Entrepreneurs and leaders, instead, adjust their sails to move forward on a steady course. Finding ways to increase cash flow; having employee work-sharing programs and non-monetary motivational programs to boost morale; reducing overhead and fixed expenses; realigning ratios of variable expenses to revenues, customer partnerships and product/service improvement initiatives; and restructuring high debt loads are all positive ways to adjust the sails.

What would you rather do? Complain about the winds or adjust your sails. Do the Right Things!

Ravi Patel

http://www.patelCFOservices.com

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Published in: on January 31, 2017 at 4:29 am  Leave a Comment  
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Enhancing Customer Service

Customer service differentiates good Entrepreneurs from competition. Are you doing anything to win that war?

A few companies go out of their way to provide excellent service by promoting a phone number to call for live conversations. Others do everything online and make it difficult to really interact with a human person even if it is a live chat.

Most Entrepreneurs realize the value of excellent customer service and attempt to emphasize that in their website and brochures, and employees are instructed to treat customers right.

But, how many Entrepreneurs have adopted providing excellent customer service as one of their strategic objectives? In order to enhance customer service in your organization it has to be treated as a key goal of the company.

Like all other strategic objectives, there should be a specific SMART goal(s) related to customer service with measurable benchmarks and periodic tracking of progress. The management team should come up with ongoing programs to improve customer service and implement them throughout the company.

Entrepreneurs can enhance customer service and beat competition only if they treat it as a strategic goal.

Ravi Patel

www.patelCFOservices.com

Growing Pains

Almost all those in business would welcome growth. However, not managing it could cause growing pains. In reality, managing growth successfully requires thought and is really hard work.

Hiring employees rapidly might indicate that a business is growing. However, if the infrastructure to support the integration of these new employees in the company has not increased simultaneously, it could cause a painful situation for both management and the new employees. Unaccounted or unforeseen indirect costs, such as payroll taxes, benefits and insurance, could adversely impact cash flow. Rapid employment growth might also attract government scrutiny for compliance of labor regulations.

Rapid growth in sales orders is a great thing. Do you have the ability to deliver those orders on time and maintain quality? Do you have an adequate customer service function to handle potential issues?

Fast growth in revenues creates an increase in receivables (unless you are fortunate to have a cash-only business). Do you have sufficient working capital or access to funds to accommodate such an increase or even delays in collections?

While growth is desirable, Entrepreneurs need to manage it carefully to avoid or significantly mitigate the accompanying pains.

Ravi Patel

www.patefCFOservices.com

Change Proactively When Neccessary

Entrepreneurs take risks, chart their own course, and have a single-minded focus.

But, are they dogmatic about their ideas and vision? Sometimes there is a tendency to do so. There is resistance to change if it involves a different course of action than one originally charted by the Entrepreneur.

Not changing when circumstances sometimes demand it could be problematic for Entrepreneurs.

Entrepreneurs must alter, when necessary, their course themselves rather than due to pressure from others. Staying ahead of the game rather than being reactive is a wiser approach.

Entrepreneurs could control the situation by being proactive. If they have to react to external pressure to change course, it is more difficult to accept and might even cause friction.

Do the Right Things and stay ahead by making necessary changes before they are forced upon you.

Ravi Patel

www.patelCFOservicesc.om

Published in: on January 10, 2017 at 4:19 am  Leave a Comment  
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Starting with Realistic Expectations

As you start 2017, be realistic in your expectations.

As they start to work on their 2017 Plan, they have certain expectations of how the year will fare with revenues and income that the business would generate.

Entrepreneurs have an existing team and have expectations regarding their performance. Similarly they expect clients or customers, vendors, other stakeholders will work with them in certain ways in 2017.

Entrepreneurs need to be careful about not having false expectations or hopeful wishes when they embark on 2017. All expectations need to be realistic, rational, and take into consideration factors beyond the Entrepreneur’s control.

Having false expectations leads to unachievable dreams and disappointment. Moderate your expectations to be realistic, so that when your expectations are exceeded one has a reason to be jubilant.

Ravi Patel

http://www.patelCFOservices.com

Published in: on January 4, 2017 at 4:32 am  Leave a Comment  
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