The Law of Profitability
By Linda Fayerweather

Like the law of gravity, the Law of Profitability does not change over time. Everyone knows that a business must make enough money to pay all its bills but often employees and customers forget that businesses are in business to make a profit. Knowing what your profit does for your business needs to be clear. Profit is key to fueling growth, capital improvements, employee bonuses, corporate sponsorships, having "rainy day funds", and rewarding the risk takers.

If you wonder what people think your business does with your profit - ask. You'd be surprised! Here is what I've heard in the trenches over time to the question "what does this company do with profit?" :

• "Bonuses are paid to key employees"
• "New computers were purchased"
• "This company is profitable?"
• "At the end of the year, management always buys stuff that we really don't need but the accountant says to do it."
• "We always have losses so we don't pay taxes"
• "Owner(s) buy toys or pay themselves bonuses"

All kidding aside, minimizing taxes is something that good business owners do, but profit and cash flow are hugely important to the survival of a business. Sharing information about what your profit is doing, helps employees follow your aspirations and provide better understanding of their long term commitment to your company.

Profit is a good thing and without it, businesses will not thrive - that is the unwritten law of profitability. Thriving in business is a great goal and knowing where your business will be in 5 or 10 years is something that will help you keep great employees and customers. Get a quick scorecard on how your business is moving to Thrive --> Scorecard

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Linda L. Fayerweather, MBA EA
Changing Lanes LLC
www.ChangingLanes.biz
Helping businesses build the asset of their dreams since 1986
419.897.0528

What to Expect When Your Business is Expecting
By Tiffiny Fayerweather

Your business is growing and the next step in the commitment process is that crying, stress-filled little bundle of wages, taxes and insurance payments. It’s time to talk about salaries.

Adding on a new staff member is expensive and there is no guarantee you will get your monies worth on the first try. Before you put that help wanted ad in the newspaper, do yourself a favor and research what to expect when negotiating salaries.

Here are a few tips to consider when the “how much do I pay” questions arise.

• First and foremost figure out if you can actually afford additional staff. Look ahead and remember that they will need raises from time to time. Discuss the financials with an adviser.
• Make a job description and research THAT. Just because you call it a receptionist, doesn’t mean the pay matches up. If you have the position doing more than reception duties, you better be prepared to pay for it.
• Do your due diligence for the position and research what other companies in your field are paying for the same services.
• Set your salary range. Use your research to set a high and a low end for the position. Setting a range will give you room for negotiations later.
• Offer a salary with flexible time and other life enriching benefits. Potential candidates want to know that you will understand when it comes to their home life and will often choose a job that allows for more time spent at home.

Paying too little can maintain a high turnover while paying too much can hurt your bottom line. Doing a little research can keep you and your business on the right track to success.

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Tiffiny Fayerweather
Changing Lanes LLC
www.ChangingLanes.biz
Helping businesses build the asset of their dreams since 1986
419.897.0528

Don't be an Anchor, be the Captain.
By Jeff Mendelsohn

I helped a business friend work on a web site for one of his clients. We were making changes to their membership service site, a small dynamic site. Something that would take six to eight months. At first the experience was a huge mess. There was a VP of a department, named Jack, who inserted himself into every piece of the new website. At first we thought he was in charge in some way or had the power to call the shots. He ended up derailing the project for two months. Here is why.

They had a list of over 300 changes that needed to be done to the site. They were changes that came from Support, Sales, and Management. They were all changes that would make the user experience better or add a new feature. Changes to keep their service relevant.

Jack didn't see the need to create a better user experience if there was already a way around it. He didn't want us to redesign features to make them easier to understand if they already worked. He would say "Look, all you have to do is this." He would then go through several screens and a pile of clicks. "See, easy. It's all in the documentation. If Sales and Support would just do their job, this wouldn't be a problem."

So for every step forward Jack would throw a temper tantrum and we would take two steps back. He fought every change and every improvement. He would constantly complain that everyone was trying to make all these crazy changes to the website that were unnecessary. He would say he needed to be the Anchor to keep everyone grounded. The more the company tried to move forward the more he dug in to keep everyone from moving.

Finally after a nasty email from that VP, my business friend forwarded it to the owner. A few days later we were informed that that VP was no longer part of the web site project and all emails from him should be forwarded and ignored. They appointed someone else to head up the project.

Jack saw updating the web site as a was of time and resources. The company was losing subscribers because the service was dated and not very user friendly. Jack blamed Sales and Support for the lose of subscribers. He wanted Sales to work harder and sell more. To learn the product. He wanted Support to do a better job of educating and training the subscribers. Which wasn't wrong of him to want that. Sales should know the product inside and out. Support should do everything they can to train and educate the subscribers. But Jack didn't see that the company was trying to sell a dated product. It was like trying to sell a brand new computer built in 2004 for the same price as the latest model.

Jack resisted change. He saw that the system worked at one point, so it should still work. We actually found out later that Jack designed the service and had a big hand in developing it. It was his baby. He didn't think there was any thing wrong with the service. How could there be? He designed it. It was perfect. [/end sarcasm].

If you are having issues moving forward, ask yourself (and others) a few questions.

• Am I afraid of change because I don't want to give up what I created?
• If we did it a different way will it help our customers use our product better?
• Will making this change help the company save money in the long run?
• Am I resisting change because I'm afraid I will fail?
• Am I against the change because it wasn't my idea or its better than my idea?

If the answer is "yes" to any of the questions, its time to stop making excuses, set your ego aside and move forward. If not you will be left behind.

Don't be the Anchor and try to hold your company in place. Be the Captain and lead your company to a better place!

--
Jeff Mendelsohn
Changing Lanes LLC
www.ChangingLanes.biz
Helping businesses build the asset of their dreams since 1986
419.897.0528

Upcoming Events WEN Business Trade Show Date: Thursday, September 27, 2012 @ 3:00 PM Details: The Women's Entrepreneurial Network (WEN) annual Business Trade Show and Social is just around the corner. Take this great opportunity to showcase your business and meet other businesses at the WEN Business Trade Show and Social on Thursday, September 27, 2012 3:00 - 7:00 pm at the beautiful WW Knight Nature Preserve, 29530 White Road, Perrysburg, Ohio. Not only will your guests have an opportunity to shop at your booth, they are also invited to a wine tasting, with appetizers provided. We encourage you to invite your clients to this event to ensure that it will be a successful afternoon. Table Registration & Sponsorship A limited number of tables are available and registration is now available online or by calling 419-536-6732. Deadline for registration is September 20th. Cost: No Charge to View the Vendors - Booths start at $60! Details and registration at: WEN Trade Show

Contact Details Changing Lanes, LLC 422 W Broadway Maumee, Oh 43537 419.897.0528 By Email