Want Results? Consistency and Effort are a Must

My name is consistency, I am related to success. We should hang out more than every once in a while.

If things are to change, you will need to implement a process. What exactly does this mean? It means you must necessitate a series of actions that need to happen in order to make something work.

For instance, have you ever witnessed someone who looks like they are running around with their heads chopped off, but by the end of the day but nothing was really accomplished? Do they appear to be focused and making clearheaded decisions? No, and in fact, they are running around aimlessly and go about their tasks with no direct course.

This, unfortunately, happens often with small business owners because they do not understand how to ‘own’ a business. Money may be flowing in and everything appears to be great, but the truth of the matter is the business owner is lost. Working 65-70 hours may make an owner feel as though they are putting in all of the efforts that they possibly can, but a lack of a consistent plan to recognize when something is wrong will only make a business lose more money.

This may seem like a given, but plans are absolutely essential. Have a goal, set a plan and follow through with it. That’s a strong formula for success (if not, THE formula for success).

Here are 5 tips that will ensure that your consistent effort ensures your business is a success:

1. Have a written plan. Without a plan, you are merely dreaming. It needs to outline specific objectives, strategies, finances, sales and marketing, and a determination to know what your business needs as far as a cash flow to get things done. Ideally, a business owner sets up a financial business plan that lets them take action on any given day to adjust to any negative factors. A financial plan is not accounting. Accounting looks back in time, starting today and taking a historical view. Business planning or forecasting is a forward-looking view, starting today and going forward into the future.
2. Leave your ego at the door and listen to others. Advisors and consultants are crucial because you need people to inspect what you are doing, bounce your ideas off of, and push you to greater accomplishments by holding you accountable for what you are committing to do. Check for a common understanding of topics, whether you agree or not. Understand and value all styles of respectful communication.
3. Track everything, and manage by the numbers. Numbers don’t lie. When you create written systems, you will without a doubt reap benefits from them in due time. This is a great tool to train employees and retain consistency. Know your numbers and check them daily. This allows you to make decisions based on what the numbers tell you rather than through emotion. Determine what it takes to ‘open the doors’ in the morning and the amount of cash you need to do business. This is also called pro forma cash flow. The insight from this is extremely valuable to a business and keeps an owner from wasting time and effort.
4. Do NOT micromanage employees and learn to delegate to them. An owner’s job is to delegate to managers who then delegate the employees and then inspect the process. The worst thing an owner can do is be a control freak. Delegating effectively will get you more than you expect. Have a written training and orientation plan so employees know what is required of them. Keeping employees trained and involved in the business can reap huge rewards. Use an incentive-based rewards system, and maintain a ‘no problem’ attitude about issues that crop up.
5. Reap the benefits. If you are consistent in your effort, you will see results. Make sure that a system is in place to track and measure your progress. The great thing about using a business analysis is that you get to see a reduction in the overall costs. Discovering more cost-effective solutions, learning to focus your energy on the proper priorities, and being able to see a Return on Investment (ROI) help a business owner make sound decisions that impact the business in a positive way.

We all want to gain as much as possible from our efforts. It’s only natural to want to make sure that our investment of time and energy is not wasted. Being consistent, creating the tools, and developing the habits to be successful is the key to success in any business. Learning to understand the mechanics of how to consistently put steps into action will make it less likely to quit before reaching your goals.

Timothy S. Blomstrom is a Business Specialist for Legacy Alpha in Raleigh-Durham, NC. For more information about the Legacy Alpha Business DNA Profile please email at timblomstrom@legacyalpha.com or call 919-656-0592.

5 Stages of Every Business

Every company is similar when it comes to the stages of growth. Whether it is an apple chip maker or a moving and storage business, they face common problems that happen at parallel stages in their growth.

Learning to understand the stages of small business growth and natural problems can help you assess where in the growth pattern you are, and help you be alert to what’s going to be needed to succeed. In the beginning, owners will have to spend an overwhelming amount of time during the initial start-up phase, but then have to teach themselves to begin delegating work and authority as the company grows.

1) Existence Stage

This is a very challenging stage since the owner is doing the majority of the work. They are the chief source of capital and energy. The only goal here is to exist and survive. Most formal planning is rarely a part of the process. In order to remain alive, a new business must seek customers.

2) Survival Stage

Once you have a product that people can and will buy, then survival becomes the primary concern. A business in this stage is now a more efficient working entity with some profit. It is not uncommon for companies to “shut the doors” at this stage. Cash forecasting becomes job one. Now is the time for an owner to start thinking of hiring someone who knows how to manage a business, not start one.

3) Success Stage

Once systems are established and profits are consistent, the small business is now successful. Here, the choice becomes to grow or maintain the success created up to this point. Having systems in place is a big difference between the Survival and Success stages. At this stage, the owner is not doing the bulk of the work. Everyone deserves a vacation every once in a while!

4) Take-Off (Growth)

Competent management is vital at this stage being that financing and delegations will be your key issues. The proper people must be put into place to handle growth, a more complex business, and an evolving business environment. This is a crucial time for an owner. They need to decide whether they want to become a big business or sell the company at a significant profit. If mismanaged the small business could fail as a direct result of poor cost management of expenses over revenue.

5) Maturity Stage

The company is now big and runs at a slower pace, and has “arrived”. It has the advantages of size, financial resources, and managerial talent. At this stage, a company may have difficulty in retaining its entrepreneurial spirit. If it can, it will be an impressive force in the market. If not, it may enter a stage of ossification. This is characterized by a lack of innovative decision making and the avoidance of risks. The unfortunate part of this, it is usually their rapidly growing competitors that notice the environmental change first.

There are times when a company can benefit from a third-party, unbiased opinion. That may be because your profits are going down, growth has stalled, having internal financial issues you can’t work out on your own, or you want to know how to improve. Working with a business consultant can provide a cost-effective injection of knowledge and expertise when it is needed most. A skilled consultant –whether it be in management, marketing, technology, financial planning, etc.- can provide a knowledge transfer that helps your company become more efficient and successful.

 Timothy S. Blomstrom is a Business Specialist for Legacy Alpha in Raleigh-Durham, NC. For more information about the Legacy Alpha Business DNA Profile please email at timblomstrom@legacyalpha.com or call 919-656-0592.

What Every Business Owner Should Know

“It’s hard to see the forest for the trees.”

Simply put, you have focused on the many details and have failed to see the overall picture or key point. Often times as a small business owner it is difficult to see the forest for the trees. Especially when the situation(s) has to do with lost revenue, low cash flow, poor net income, or negative gross margin. Day to day operations can fill an owner’s time up with an endless number of tasks. After fulfilling all of these duties and feeling exhausted, one usually does not want to pour over financial statements. This is a big, big, mistake.

No doubt this is something many do not consider to be a favorite post-work activity, but it is crucial to keep a close eye on the critical numbers that can help predict the success of your business. Every business owner wants to stay in the black, but without knowing what to do to stay there is flying blind.

Below are 5 financial numbers every business owner should know:

1. Cash flow. When your operating cash inflow exceeds your cash outflow, this is a sign that you’re operating in the black. If the reverse is true, take a closer look at your income and expenses.
2. Profit and Loss (P&L). Knowing and understanding your company’s profit and loss over time allows you to project earnings and make realistic short term and long term plans for the future.
3. Sales. It’s a given, but must be said. Watching your sales closely can help understand why there is a dip and take corrective action. It also allows a business owner to react quickly to an increase in sales, which helps determine what is needed to keep going to sustain that growth.
4. Price Point. A small business owner must know exactly how much it costs them to purchase their goods and then how much they’ll need to sell those goods or services in order to make a profit. For restaurants and retailers, this is especially critical. When determining price point, always take into account overhead expenses –such as utilities, payroll, and sales tax.
5. Gross margin. Sometimes called gross profit -and closely related to price point- this figure reflects how much money remains after the actual cost of your merchandise is subtracted from the selling price. If this figure is low and not sufficient to cover operating costs such as salaries, rent, marketing, and utilities, then you’re likely not charging enough for your products and services.

Don’t be afraid to seek an objective third-person viewpoint when analyzing these financial numbers. A consultant can come into a business and address the obvious truth that is either being ignored or unaddressed (i.e. the white elephant in the room). While methodology will differ, a good consultant comes in to listen, has no agenda, becomes a worthy partner in the financial aspects of the company and always understands that it is about your company and not the consulting firms.

Finally, always seek a consultant that is truly interested in your business and seeing it succeed.

Pizza and Business Get Together

Pizza and Business in the Triangle!

Join us on 01/29 at zPizza in Cary and network with other local business people wanting to build their business legacy. Dan Kurth, President/CEO of Human Performance, LLC, will be the guest speaker for the evening. Dan is the creator of the Legacy Alpha program and has worked with over 1,100 small businesses of every type of industry in 43 states and four provinces of Canada since 1993.


Where: z-Pizza in Cary (Stone Creek Village) 96 Cornerstone Drive, Cay, NC 27519 Directions

When: Thursday, January 29, 2015. 5:30-6:00 check-in with meal and presentation to follow

Cost: Your time, which we greatly value!

Guest Speaker: Dan Kurth, President/CEO of Human Performance, LLC

Sponsored by: Timothy Blomstrom, Legacy Alpha Specialist in the Triangle Area. Please RSVP with Tim accepting at Evite by the morning of January 29th. You may also reserve by contacting Tim at timblomstrom@legacyalpha.com or call at 919.656.0592

Space is limited. Please reserve a spot to ensure that we can accommodate you.

Small Business Trends for 2015

Legαcy Alpha  Small Business Trends for 2015 A recent survey completed by CAN Capital found that fifty-eight percent of small business owners expect growth in 2015. Because of this, performing an analysis will become more prevalent as businesses look to make their operations more effective. Following the shiny object of the week will be dropped in favor of more credible metrics that will result in measurable results. Below are some of the Top Line results from the CAN Capital survey: Piloting Through the Challenges 35% of small business owners view the ability to offer competitive prices as their biggest challenge when competing with big businesses. Offering competitive benefits for employees coming in second at 21%. The Affordable Care Act was named as one regulation small business owners said had/will have an effect on their businesses; followed by minimum wage increase and new overtime change laws. This trend also impacts hiring, with 33% of small business owners saying that the greatest hiring obstacle is the ability to offer an attractive health insurance/benefits package, followed by being able to offer a competitive salary (30%). When it comes to potential threats, 34% of small business owners shared that the biggest threat to small businesses today is rising employment costs.  Capital Access 43% of small business owners foresee needing external capital to run their small business in the next year. 61% of small business owners say that gaining access to working capital is quite or extremely challenging. Interestingly, nearly half (49%) of small business owners have actually been more successful in securing funding/working capital from friends and/or family than from a bank (27%). Consumer/Mobile Trends Mobile and/or online business reviews are the number one (41%) consumer trend that small business owners say will have an impact on their business. Online shopping came in second (34%) as the other top consumer trend that small business owners believe will have an impact on their business. A full 39% of small businesses have not optimized their business website for all mobile devices.  Having such a competitive market, in today’s business industry, business owners cannot go without understanding their customers as well as the facets of their company. The significance of the Legαcy Alpha Business DNA Profile is that it ensures that decisions that are made are beneficial for the business and diminish unrealistic expectations and the effect of surprises which could later result in frustrations and even loss in valuable revenue.  We also help you make your business the most attractive place to work for your employees and for future hires.