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Cover Stories
June/July 2010
Business Communication Resolution Preparedness Techniques
Managing and Maintaining Inventory
Managing Your Business Costs Through Leasing
Is it Time to Give Your Website a "Marketing Makeover"?
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Business
Communication
Resolution Preparedness Techniques
By Barton Goldsmith
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Perhaps the most difficult part of having a deep conversation with someone you work with on a daily basis is getting the process started. Most people open these conversations with little preparation because they can no longer contain their emotions. When this happens, sometimes things are said that the speaker may regret afterward. It is wise to think before you speak, especially about issues that may have an emotional charge, so a little internal processing beforehand may be your most valuable tool.
The techniques below are specifically designed to help facilitate the necessary thinking required before you talk with your teammates about something that is bothering you. You don’t need to use them all; try the ones that are easiest for you and see how they work.
Sleep on it, forget about it for awhile, watch some TV, cook, go fishing—but don’t use any of these as an avoidance technique. This will allow your feelings to settle a little and you’ll have a different perspective.
Make sure that the issue is real and you’re not just complaining. It’s easy to blame someone else for your hurt feelings, so check yourself out before you point a finger.
Before you share it, think about who you’re talking to and how they receive your input. If your co-worker is visual, perhaps they would respond more favorably to something in writing to get the conversation started.
If appropriate, talk with someone else to get a read on your feelings before you talk to the person you’re having the issue with, but don’t allow yourself to be overly influenced by someone else’s opinion.
Write down what you want to say. A pro and con list may be the simplest way of deciding what needs to be discussed or even if it’s appropriate to have the conversation at all.
Don’t generalize and be prepared with examples. Putting your issues into categories may help you with this.
If you think a conversation is going to be painful, remember that you usually feel better after it’s over.
Make an appointment with the person to talk. This can give you the opportunity to get away from your normal routine and have some quiet time to discuss things in an appropriate fashion. Also, be prepared for him or her to say that right now is the best time to talk.
Remember, be kind. It’s hard to put the toothpaste back in the tube. Venting your anger will only make the gap wider and the issue more clouded. If you are physically or emotionally unbalanced, your ability to behave appropriately will be diminished.
Imagine or visualize the conversation going the way you want it to go before you have it and allow yourself to feel good about how you’ll handle the issue.
Processing your feelings before you lay them on your teammate will help you deliver them in the most appropriate manner, and will help your issue resolution discussion go much easier. Once you experience having a positive conversation about a difficult subject, the next ones will not seem as daunting.
For more than two decades Fortune 500 companies, educational institutions, and government organizations worldwide have relied on Dr. Barton Goldsmith to help them develop creative and balanced leadership. He is a highly sought-after keynote speaker, business consultant and author. He may be contacted through his Web site at Barton Goldsmith.com or at (818) 879-9996.
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Managing and Maintaining Inventory:
FOCUS ON FLEXIBILITY, FUNCTIONALITY AND COSTS
By Lisa Kopochinski, Services Editor
Keeping track of the inventory it takes to support a successful business is no easy task. But today’s progressive technology can make the job easier by providing automated ways to track the different products used and sold in your business.
With inventory such a large cost in doing business, it can eat into your margins quickly if it’s not monitored correctly. An automated software tool can be invaluable in helping track all items used and sold. Not only does an inventory management system eliminate much paper and manual work, it provides powerful reporting and insight into your profitability at each account.
You time is valuable and having software that provides you with the ability to see what is in stock, know how much has been used, how long it has been on the shelf, and even send a request for more supplies, is vital in running an efficient operation.
At TEAM Financial Management System in Omaha, Neb., Jill Davie, vice president of marketing and sales, says its WinTeam’s inventory module includes a complete item master file where pricing from each vendor can be tracked, items can be grouped together in packages based on the needs of the service location, quantities on hand and reorder levels are monitored, resale pricing is stored and multiple warehouses are supported.
“WinTeam’s inventory module supports all of the functions surrounding inventory management, from drop shipments to the job site to integration with billing and job costing. Because WinTeam’s inventory module is tightly integrated with WinTeam’s accounting modules, it is a very flexible and complete system, eliminating the need for manual, paper-based systems.”
At Provo, Utah-based CleanTelligent, President Michael Jenkins says one way for automating inventory is through implementing a barcode system.
“CleanTelligent has Windows mobile professional-based PDA software that supports barcode scanners that are keyboard-wedge compliant. Once you have properly configured your device to work with a Bluetooth, compact flash, SD card, or integrated barcode scanner, CleanTelligent allows you to use this digital automation with your supply/asset management.”
The company even has barcode reports available that can print off labels to be attached in discreet locations throughout your buildings, on supplies, equipment and even on employee badges.
Additionally, CleanTelligent software offers BSCs the ability to scan supplies in and out of locations; perform inventory audits and make adjustments; track inventory usage by building and by employee; create multiple levels of supply usage (i.e. case/roll); get notified when a supply is low and needs to be ordered; create an online supply catalog; order supplies from multiple vendors within CleanTelligent; and view supply usage reports that will help monitor expenses.
Adds Jenkins, “Companies can use CleanTelligent for their asset management to monitor where each piece of equipment is located, easily scan equipment in and out of locations, document reasons why equipment is moved, and easily document repairs and equipment available for use.”
Small vs. Large Companies
It doesn’t matter whether you have a large or small cleaning company when it comes to managing and maintaining inventory. Although larger companies may benefit more from automating their inventory, small companies face the same challenges that large companies do.
TEAM has seen many smaller companies realize big success by utilizing technology and getting their processes in place early while they are growing. “By solidifying their best practices along the way, they are poised to address issues more efficiently and have the tools in place to compete with any company in the marketplace,” says Davie.
Smaller companies also have the ability to save in labor costs by automating their business processes.
At BearCom Building Services in Midvale, Utah, President Joseph Jenkins decided to automate its business processes and says, “With CleanTelligent, we were able to reduce our staff by two full-time positions, providing a savings of $48,000 per year.”
What to Look For
When considering an inventory software product, BSCs need to focus on flexibility, functionality and cost. With the numerous changes BSCs are regularly faced with, it’s necessary to find a product/software and that can help them adjust and keep up with those changes.
“Each organization has its own needs and processes of how they want to monitor and manage their inventory,” explains CleanTelligent’s Jenkins. “Finding a product/software that can function in a way that doesn’t change the way a BSC does everything will increase efficiency. Any time a company invests in something, they need to consider the cost. It’s not always about the price of the product/software as much as the return on investment they will get from it. The more your clients feel you understand their needs, and are on top of things, the happier they will be.”
Adds TEAM’s Davie, “When looking at an inventory management system, make sure it addresses and supports all of your needs. Make a list of your inventory processes and then check that list against the system’s features.”
Another huge consideration is the system’s integration to your accounting processes. Ask how you can be sure that items that are resold are actually billed back to the client. And, is that process automated and easy, or is it manual?
Finally, one last item to look at is the inventory management program’s ability to provide job-costing information.
The ability to closely monitor profitability at each account is key to the success of any BSC,” says Davie. “Because inventory is such a large expense, it’s very important that transactional details carry over to the job costing program for a clear picture of account performance.”
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Managing Your Business Costs Through Leasing
Provided by WINDSOR INDUSTRIES.
Today, leasing is used by 88 percent of businesses to manage their capital purchases and finances. Historically, the cleaning industry has not used leasing, opting to pay cash for equipment instead.
However, due to changes in today’s economic climate, cleaning professionals must become familiar with financial tools like leasing.
Leasing offers the flexibility of handling possible budget constraints through monthly payments. Instead of allocating a large portion of a company’s budget up front, the company (large or small) can lease the equipment to fulfill immediate needs while earmarking the rest of the budget towards other income-producing areas.
Through leasing, you also have the flexibility to acquire more equipment. For example, instead of allotting your entire budget towards purchasing one piece of equipment, leasing allows you the opportunity to purchase more equipment that better services your current needs without the large initial capital outlay.
Additionally, lease programs and payments can be specialized to your business needs. Standard purchase options can adjust your monthly lease payment amount and offer a variety of “end of lease” options including purchasing the leased equipment. While there are a wide variety of lease options available, some of the most popular include Fair Market Value (FMV), 10 Percent Purchase, Zero Down, Deferred Payments, Step or Skip Payments, Seasonal or even 90 Days same as cash.
The most common purchase option would be the $1.00 Buyout Lease. This allows a company to acquire the leased equipment for $1.00 when the lease term is finished. An easy way to look at it is that a $1.00 Buyout Lease is in essence a loan. It has a higher monthly payment; however the option to own at the end of the lease is the cheapest. Much like buying a car and financing it through a bank or finance company, you have a set payment for a set term, and when you have made all the payments you own the car. A $1.00 Buyout Lease works the same way with one exception: you owe $1.00 at the end to purchase the equipment, hence the name.
Furthermore, since you have agreed to purchase this equipment it is listed as an asset in a company’s financial record during the lease.
Since a $1.00 Buyout Lease is essentially a purchase, the equipment is typically depreciated for tax purposes over five years, which simply means you take the purchase price of the equipment, divide by five, and that is the amount that can be deducted from net earnings for the next five years. Interest is also deducted, which generally amounts to about 10 percent of the payment.
- $1.00 Buyout Payment Example:
- $12,000.00 equipment price (which may include extended warranties, installation, shipping, etc.)
- 36-month term
- $408.72 per month excluding sales tax, or more importantly $102.18 per week.
For additional flexibility, if you are working on a cleaning contract with a set number of years to the term, why not choose an FMV lease with a term that matches the contract? For example, a FMV lease would allow you to have a three-year lease, lower than a $1.00 Buyout monthly payment and a matched term to the contract that you hold with your current customer. At the end of the contract term you can turn in the equipment—which means that you are not stuck with outdated machines—and re-lease new equipment for new contracts.
An important note about turning in equipment is that it must be clean and maintained. Again, back to the car analogy, if you go mud-bogging everyday with your 2007 Honda Accord and expect to turn it in with no penalties at the end of your lease you may be in for a surprise. The leasing company allows for wear on machines, not abuse. Always remember, a clean machine is a happy machine!
Which lease program is right for your needs and tax incentives? The simplest word of advice is to consult with your tax professionals and get their input since they should know the inner workings of your business. There are tax benefits that are unique to each plan.
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Richard “Bo” Bodo is the director of training at Windsor Industries and an IICRC master textile cleaner. An internationally published writer, Bo has more than 11 years of industry experience with a background in both chemicals and equipment. He can be reached at
Richard.Bodo@windsorind.com. |
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Is It Time to Give Your Website a “Marketing Makeover”?
By Jean Hanson
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In recent years there has been a huge movement in businesses extending their marketing and advertising strategies onto the Internet. Given the instant communication and ease of accessibility afforded by the World Wide Web, this comes as no surprise. However, businesses frequently make huge mistakes in their approach to building and maintaining their websites. The main purpose of a website is to help a business sell its products or services to a much larger audience of consumers. If your website is not achieving this, then this is a very costly mistake, even if you are only spending a few dollars a month on hosting. If your website is doing its job in attracting targeted prospects, it should be making you money instead of being an expense to your company.
Many companies settle on a brochure website, which effectively offers a snapshot of their business, its origins, its philosophies and what it sells. Nice to look at, but with the huge amount of competition on the Internet, brochure websites are no longer cutting it. With literally thousands of commercial cleaning businesses offering similar, if not the same services, it becomes necessary to make the individual stand out amongst the crowd and this can only be achieved by creating a far more interactive website for your business—one that compels visitors to become customers by offering attractive deals, employing marketing strategies and creating and maintaining a dynamic, constantly changing web space.
Website Makeover
So take a look at your business’ website. Is it time for a marketing makeover?
In 2007, 73 percent of Internet searches were made with the intent of finding a local service provider of some sort. Of this percentage, 82 percent of viewers followed up their Internet search offline through a direct visit or phone call to the company that attracted their attention. This equates to a huge amount of business garnered by effective Internet marketing. It also means that if you are not maintaining a dynamic and interactive website, not only are you costing your business a huge chunk of income and profits, but you are directly benefiting your competitors!
More than half of the American population has completely replaced the Yellow Pages with the Internet when trying to locate services and products they require that are offered by locally-based companies. This business is practically knocking at your door; you just need to find a way to unlock it and let the customers come streaming in.
How to Build a Marketing Website
A website should benefit your company in the form of web-traffic and money. This, more often than not, has become the defining point between a brochure website and a marketing website. Take a look at your business’ website: under which category does it fall? Does it offer interaction with its viewers in the form of special reports, promotions, newsletters, service request forms and referral programs? Do you update it regularly with monthly specials and weekly news articles regarding products and services? Does your business’ website actively collect contact information from viewers so that you will be able to contact those in the future offering discounts, promotions and informative newsletters? Do you update your website with engaging material like compelling content, customer testimonials, blog posts, videos and newsletter archives?
If not, then your website is not interactive and chances are, it’s perceived as being stagnant and is likely sitting idly at the bottom of the search engine list. A business website should actively engage with its viewers as well as its existing customers and if yours doesn’t, then your competitions’ will!
Get Found in Local Searches
There are three ways you can make your business sing out amongst the rest on the Internet:
Pay Per Click (PPC): This advertising tool essentially allows your business to put a link to its website on other people’s websites (perhaps with related content, but not in direct competition). It also places your ad at or near the top of the page when people search for specific keywords phrases. Then, you pay each time a viewer uses this link to visit your website, hence the title ‘pay-per-click’. This marketing strategy is highly effective for getting word of your business out there, but limitations must be set to stay within your budget.
Search Engine Optimization (SEO): In order for search engines like Google, Yahoo and Bing to recognize your website as relevant to the keywords or phrases typed into them by viewers, you need to place carefully chosen keywords phrases into each page of your website. Use these keywords phrases in the title tags, description tags, and content for each page. And don’t forget to include your service areas (cities and states), in your keyword phrases. If implemented properly, it can make sure your business pops up at the top of the organic search results in your locality.
Local Search Results
The important thing to remember when using the Internet to market your business is that there is no one way to do it. The Internet is not called the World Wide Web for nothing; it is a complex network; a giant puzzle if you will. Getting your website to feature strongly in the search results yielded by Google Local, for example, takes care of just one puzzle piece.
If you want your website to be a bustling highway of web traffic, then you need to submit your site to all the other local search sites, such as Bing Local, Yahoo Local, Info USA, Merchant Circle, CitySearch, Yelp, YellowPages.com, etc. Google will search all these sites to see if your business’ website is featured there and if it does, it will rank higher on the search results page that will be viewed by potential customers.
Effective Internet marketing is a surefire way to make your business sell to a targeted audience, and if conducted correctly, will yield greater and continued customer interest. And in the business world, a targeted lead equates to profits.
Jean Hanson is co-founder of TheJanitorialStore.com and CleaningBizWebsites.com. She can be reached at jean@thejanitorialstore.com or (866) 862-8608.
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