Poor Business Information Management - What Is It Costing Your Business?

Is your business drowning in information?

Are you buried under tons of paperwork and just don't know where to start? Are you spending more time doing the paperwork than running the business?

Does you current business data management system provide ready access to your business data and perform the analysis necessary to make informed business decisions?

These may seem like simple, basic questions but in many small and medium-sized businesses they go unasked. What does this mean to the bottom line of your business?

Business data management is paramount to making your business profitable and successful. Making your information and data work as hard as you do, and turning it in to an asset rather than a liability, will give you the edge over your competitors. Effective business data management could be the key to the business success that you have been looking for.

The HOW TO of Business Data Management

All businesses today generate and need access to significant amounts of information and data, much of which is critical to the efficient and profitable operation of the business. Information like customer contact details and sales data, appointment scheduling, stock control or managing production flow and financial records is the life-blood of any business. It needs to be managed effectively to get the most out of it.

Just the process of collecting and recording business information can take a great deal of your staff's time, and therefore your money. Just as important as collecting business data is HOW it is managed and used. Many hours can go into recording business data, and just as many of those hours can be wasted if the information is not stored in a way that provides ready access or analysis of the information it contains. Obviously, recording business information on random notes or even in structured text documents such as Word is better than nothing. But information stored this way is difficult to track and even more difficult to search. Performing any meaningful analysis on large amounts of data stored in this fashion is virtually impossible.

Using spreadsheets, such as Microsoft's Excel program, will provide access to structured information as well as the ability to perform some effective business analysis over small subsets of data. However filling out spreadsheets and keeping them up-to-date can be a time consuming task. And what do you do when you have voluminous amounts of data that you want to analyse for trends, or business opportunities. Unlike databases, spreadsheets are limited in the number of records they can manipulate and rarely provided the correlation between disparate data holdings that is required to perform meaningful analysis.

Making the Most of your Business Information

I think we all can agree that proper business information management is an important aspect of effective business management and should be a core consideration in ensuring the success of your business.

As you have probably realised by now, using hand written notes, document files and even spreadsheets may not be the most efficient way for you to manage and make the most of your business information. In fact, when you take in to account the time and effort necessary to collect and store the information, collate it, and then try to make sense of what it all means, you have likely come to the conclusion that unstructured business data is costing your business not only tens of thousands of dollars in time and resources handling the information, but also many thousands of dollars in missed opportunities that proper analysis of that data could have identified.

For the efficient and effective management of business information you really need a database. Databases provide significant advantages over other forms of information capture, storage, retrieval and analysis. More importantly a database enables rapid access to any data held within the database through sophisticated, and yet in most cases easy to use, search functionality. Most database systems today handle virtually any size data-set, be it large or small, and have the ability to perform tasks as simple as 'Customer Relationship', 'Inventory Management' or 'Asset Management', right through to the more complex sales and/or trend analysis, across ten or even hundreds of thousands of individual records.

Perhaps equally as important is the ability of relational databases, such as the Microsoft Access database, to vastly decrease the time and effort required to collect the data. With functionality such as data import, default field values, lookup tables, drop-down lists and the ability to enter common data (which may be used often across 1000s of records) only once, they can significantly reduce the time and effort required to collect and store information.

Over time there have been many database applications available. Whilst all these database systems have provided the basic data storage and retrieve capability, more modern-day database applications such as Microsoft Access Database provide a graphical user interface, simplified querying and comprehensive internal reporting functionality which is capable of analysing and charting vast amounts of data in very short periods of time, often only seconds. Microsoft has gone to great lengths to incorporate all the modern features required by any business to effectively handle their information management and analysis needs. Microsoft Access Database comes packaged with the 'Office' (professional) suite of software tools, and its integration with those tools makes passing information and data between documents, spreadsheets and databases a simply process which greatly enhances and simplifies its data collection, analysis and reporting capabilities. Existing users of MS Access Database will also be aware that several of the sample databases that ship with the Access Database, whilst basic in design, already provide some good business information management tools.

Whilst Microsoft's Access database is easy to use, allowing basic databases to be easily built by the novice, it also contains advanced functionality and features that can be used to build more powerful, integrated business information management systems. Consequently, a number of 'business to business' companies specialising in the development of custom, business specific, Access Database applications have emerged. Where you have a need to build a database to meet a specific requirement within your business, but just don't have the time or someone with the advanced training and knowledge required to build the database in-house, then using a specialist Access Database developer may be the answer. As there are many such companies offering this service the development rates are usually very affordable, and you will find that the time required to have a functioning, customized database, up and running will be significantly reduced.

Want To Make Your Small Business More Profitable

What business are you in?

Actually, I already know. And in just a minute, I'll reveal my secret on how I know along with 3 simple steps you can follow that will help you improve your business profitability.

But to begin, let me explain two things. First, is that small business success is not a card game. There is no trick. You must do the right things consistently all the time to guarantee your survival, success and profitability. I don't just say this. Decades and centuries of time-tested entrepreneurial history and background proves this.

Second, above all the many hats a small business owner must wear in order to launch, grow and climb into the clouds of profitability, there is absolutely one area of focus that matters the most. In just a moment I will divulge to you what that is and give you three specific action items you can implement to optimize your marketing and profitability results. Let me explain by adding a little context.

I have been a small business marketing / management consultant for many years and have consulted with literally hundreds of companies in all types industries, from start-up to sizeable, operating local, national and international in scope. These client companies operate in both the service and product distribution sectors and represent a broad range of diversity in experience, education, management, and leadership skills.

Whenever I begin a new consulting relationship, I always ask a few pointed questions to quickly dig into the heart of what the health and success opportunities are of the business at hand. You see what I've discovered over the years of looking on the insides of all kinds of businesses, is that there is a common thread of success among the very profitable companies and their owners.

Conversely, there is also a common thread of failure in the companies that are struggling and who are living in the land of mediocrity.

The fact is, that businesses that succeed have figured out and mastered this number one skill set necessary to flourish while failing or faltering businesses have not completely grasped just how important this essential responsibility is.

What's unfortunate is that many times small business owners wait until their business is sputtering and running out of gas before they reach out for help which often times is already too late. Depending upon the client and their character to focus on, develop and follow this number one skill set will depend upon whether they open the door to their future survival and success.

Let's get right to the heart of the matter. So after a brief question and analysis of their business, I ask one very pointed question.

What business are you in?

Predictably they will tell me that they are an Internet Marketer, Accountant, Dry Cleaner, Mortgage Broker, Real Estate Agent, Medical Supplies, Insurance Agent etc.

At that point, I make very direct eye-to-eye contact. I disagree with them and instead express to them that they are in the "Sales Business" first and foremost. Always and forever.

You see what I have found over and over again with small business owners is that they are usually very expert at being an expert in their specific type of business. But what they've never mastered is the single most critical skill that will keep their business alive and give it the greatest chance for growth, profitability and success.

That skill set is to study, practice and execute effective sales skills. The bottom line is that no matter how great you are at operating your business, it will never succeed without more than enough of the right type of ideal customers constantly being introduced into your buying stream.

That means prospecting and selling... continually.

All the time.

Everyday.

Dedicating a portion of your time to sales whether it is online, offline or a combination of both.

Now this seems hugely fundamental doesn't it? Yes, it does. But let me ask you a question and be honest with yourself... do you really do it?

Do you put enough of your time and effort into:

Thinking through a well thought out sales plan, of how to find your ideal customer target/s?

Designing the sales scripts and collateral marketing materials full of features, benefits and competitive advantages that will persuade a target to be a prospect and a prospect to be a customer or client?

Practicing (yes, I said practicing) your sales speak at such a level that you increase your conversion percentage?

And finally, do you spend a significant amount of your time prospecting and closing sales as a matter of the highest priority to have more than enough profitable customers?

You need to understand that the Small Business Administration will tell you from historical research that the number one reason for such incredibly high small business failure statistics, is because of under capitalization or not having enough money to last long enough for the business to take hold and carve out its place in the competitive market.

And they would be right. But from my experience, the real world honest brutal glaring truth is a lack of skill and emphasis by the owner on prospecting for and closing new customer sales.

This is the one single thing that any business needs most.

There are many reasons why this happens but often it has to do with being afraid or hesitant. Afraid to be rejected, to have someone say they don't like your product or service, or your pricing etc. Or, it may be your too busy being busy to zero in on the first most basic duty of any successful entrepreneur.

But the basic truth of small business marketing is that you must see yourself as a "Sales Business" first and foremost above all else and act like it or see yourself struggle and likely march to the front line of becoming a business failure statistic.

So now let me repeat with emphasis the answer to my original question of what business you are in. YOU ARE IN THE SALES BUSINESS first and foremost and without enough sales you will go out of business.

This... is the single most important skill you must engage in daily if you want to make your small business more profitable.

As promised, here are 3 simple steps to follow that will give you greater sales focus and actionable results:

1) Set Goals, Key Action Steps, Activities and Milestones: Each small business owner should have a specific monthly sales goal written down together with an action plan on how to achieve those goals. It works best when you break them down into weekly and even daily tasks. This makes it easier to measure and manage your results at key milestone intervals and helps you be more accountable. Nothing will happen if you don't hold yourself accountable.

2) Role Play Practice: Do you really want to practice your sales skills on your ideal customer prospects? Well you do get better when you are live and in action with real potential customers but my experience is that you will achieve your best results if you do role-play practicing ahead of time. This allows you the opportunity to work the bugs out and understand how to overcome objections. Better to flub up in a practice environment than with a great potential customer.

3) Milestone Progress Evaluations: Periodically at pre-determined intervals take time to stop, process your progress and evaluate your successes and setbacks. Then make adjustments, improvements and recalculate your goals as appropriate. Also, use this time to energize your enthusiasm for the importance of sales as the vehicle that fuels your success and profitability.

As a final note, remember there are a number of marketing strategies you can use to introduce new customers into your buying stream. I encourage you to test all of them that make sense to you and your type of business and find and implement the most effective that works for you. My favorites are low or no cost strategies. But that's a different article.

Grow Your Business With a Growth Business Plan

Are you at a point with your business where you just don't know what to do next?

Do you have a business plan?

How about a growth business plan?

Have you looked at a lot of different ways to grow your business and nothing seems to work?

The right growth business plan could be your answer. If a growth business plan is done the right way it may open up some opportunities you have never thought about before. A growth business plan can be developed many different ways but I would like to discuss a growth business plan that you may have never thought about.

Here is the way I would encourage you to set up a growth business plan:

• Do some dreaming about what you would like your lifestyle to be

• By dreaming decide on an average income you would like to have over the next few years

• Decide how many years out you would like your plan to cover

• Decide how much profit you would like for your business to generate above the income you want for yourself.

• Set up a profit and loss statement of your existing business or your proposed business

• With the right business knowledge and a profit and loss statement you can actually use that data to see what your business would need to do for you to give you that income and profit

• Even better you can determine what size market you would need and even determine whether your market would support your business presently and in the future.

To me a small business is one of the best things you can have if you enjoy operating a business; however, it does require a lot more than just enjoying ownership and running a business. Especially if you are starting a small business and even if you have had a business for many years, you should know what you want for your future. Never guess about your business. You see, without a plan, you are just guessing. We business people work hard and we always continue to hope for the best but when we guess, we're taking a lot of risks. You've probably heard the old saying from an unknown author that says, "If you fail to plan, then plan to fail."

As a matter of fact, did you know that the Small Business Administration says that 50% of small business owners will fail sometime during their first 5 years? There are lots of reasons but one big one is that owners don't have a plan. Another is they have picked a product or service that doesn't have a big enough market to sustain their business and sometime during their future they will run out of customers.

Now as I said, there are many other reasons too.

After graduating from college, I started out in manufacturing as an engineer in a pretty large company and now, 45 years later, retiring as a of Director of Manufacturing, I have discovered an awful lot about business. Not only did I learn and teach a lot about business, I worked with small business owners as well. I've learned that it comes down to this. Too many owners work hard in their business but less on their business.

Do you work on your business as much as you work in your business? Do you ever dream about having a good lifestyle but just haven't quite figured out what to do about it. Have you ever thought about seeing what your business would need to do to give you those dreams? Developing a growth business plan could be the answer.

So, why should you make a growth business plan? Well in simple terms you need to know where you're going and how and when you're going to get there.

Some of the questions a growth business plan might ask you are:

- Are you comfortable that the market wants and is willing to buy your product or service?

- Is your product or service priced so it is competitive in your market?

- What's different about your product or service? Why would a customer purchase it over someone else's?

- Is your market big enough to support your business? What about 15 years into the future?

- If you wanted a better lifestyle, what would your business need to do to give you that lifestyle?

- How much sales would your business need to generate to give you that income?

- How much sales would your business need to generate to give you the income you want 15 years into the future?

- What will be the cost of your labor and material?

- What will your expenses run?

- How much will it cost to overcome the capacity constraints that will occur as your business grows to meet your income requirements?

- Will your profit give you the income you want in the future and at the same time maintain a healthy business for you as well?

If you develop a good Profit & Loss Statement for your existing business for the current year or for the first year of your proposed business, you can use this data to actually project how much sales you would need to yield the income you want and the profit margin you want. You can plan ahead as far as you want. Sound impossible? It's actually pretty simple and can be pretty accurate plan.

A plan like this would show you how much sales your business would need to do, what your fixed and variable expenses would be, what your material cost, labor cost and profit would need to be to provide the income and profit margin you want. You can see pretty quickly if it's possible for you to get your business to that level. I don't know of any better way than to have your business give you the income and profit you want. What's neat is you can determine what you want your income to be and your profit to be over the next few years and develop a plan that can show you exactly what your business would need to do to give you that income and profit.

And with just a little more data you can actually determine how many customers you would need for each year you plan for and how many leads you would need. From that you can actually determine what size market you would need and whether your market is big enough to supply those leads that could be converted into customers.