Best Business Practices Kathryn Crosby C 2 Consulting, Inc

What Do You Want To Talk About? What were your expectations when you came this morning? What were your expectations when you came this morning? What do YOU want to talk about? What do YOU want to talk about?

What It Means Best: better than anybody or anything else, better than all others, most likely to succeed, to highest standard Best: better than anybody or anything else, better than all others, most likely to succeed, to highest standard Business: a company or other organization that buys and sells goods, makes products, or provides services Business: a company or other organization that buys and sells goods, makes products, or provides services Practice: to repeat something to get better, do something as custom Practice: to repeat something to get better, do something as custom

Best Business Practices To summarize To summarize A company that repeats activities as a custom better than anyone else and as a result is most likely to succeed

Who Would NOT Want That? Knowing what you want is one thing…getting there can be a little more difficult Knowing what you want is one thing…getting there can be a little more difficult

How To Get There No matter the type of business, there are 4 things that will help you “get there” No matter the type of business, there are 4 things that will help you “get there” Managing cash Managing cash Watching costs Watching costs Planning Planning Great people in your corner Great people in your corner

Getting There Be diligent about these 4 things and you will be more likely to succeed Be diligent about these 4 things and you will be more likely to succeed

Sounds Easy Sounds easy doesn’t it? Sounds easy doesn’t it? Well then why don’t we? Well then why don’t we? Because we get caught up in the other stuff and that stuff dilutes our attention Because we get caught up in the other stuff and that stuff dilutes our attention What distracts you? What distracts you? Problems on the job Problems on the job Can’t get a job Can’t get a job Can’t get paid Can’t get paid People People Life Life And on and on….. And on and on…..

The Hardest Part The hardest part about developing a practice or habit is The hardest part about developing a practice or habit is Starting it and Starting it and Keeping the momentum Keeping the momentum Making sure everyone is doing it Making sure everyone is doing it Because if the company owners and managers are not talking about “it” and doing “it”, no one else will Because if the company owners and managers are not talking about “it” and doing “it”, no one else will

Where to Start?

Managing Cash Without cash, your company will crash Without cash, your company will crash In our business, it is tough to manage In our business, it is tough to manage Where are the pitfalls? Where are the pitfalls? No work No work Can’t get paid Can’t get paid Sloppy cash management Sloppy cash management Late or wrong billings? Late or wrong billings? Others? Others?

Managing Cash You must have work and get paid to have cash to manage You must have work and get paid to have cash to manage It starts with making sure jobs you look at are jobs you want It starts with making sure jobs you look at are jobs you want Baseball or golf? Baseball or golf? Is it a client with good credit? Is it a client with good credit? How is the project financed? How is the project financed? Remember, you are usually last Remember, you are usually last

Managing Cash Is the contract you will have to sign a stinker? Is the contract you will have to sign a stinker? What recourse will you have if you don’t get paid? What recourse will you have if you don’t get paid? Is there a bond? Is there a bond? Have you filed preliminary notices? Have you filed preliminary notices? Filing prelims is like registering to vote, it just allows you to vote, but you don’t have to vote Filing prelims is like registering to vote, it just allows you to vote, but you don’t have to vote Can you ask for a down payment? Can you ask for a down payment? Can you negotiate extended terms with suppliers? Can you negotiate extended terms with suppliers?

Costs—Where Evil May Lurk Every great business watches costs like a hawk, even in good times Every great business watches costs like a hawk, even in good times Remember, that every dollar you save goes to the bottom line, or can make you more competitive Remember, that every dollar you save goes to the bottom line, or can make you more competitive Watch hard costs like labor, supplies and equipment Watch hard costs like labor, supplies and equipment Enroll your people to help you watch costs Enroll your people to help you watch costs

Costs—Where Evil May Lurk Monitor job costs vs. estimate Monitor job costs vs. estimate You want bad news early and often You want bad news early and often Especially labor, which is the most volatile Especially labor, which is the most volatile Don’t ignore other costs, like overhead Don’t ignore other costs, like overhead Copiers, software, cell phones, etc Copiers, software, cell phones, etc If your plan for the year was to have 5% net profit, and your costs went over by $5000, you would have to do $100,000 in volume to make it up If your plan for the year was to have 5% net profit, and your costs went over by $5000, you would have to do $100,000 in volume to make it up

Planning=Key To Success Every successful team or business has a plan Every successful team or business has a plan It is just a roadmap It is just a roadmap Exponentially increases chances of success Exponentially increases chances of success What is planned? What is planned? The business The business Your projects Your projects

Drafting the Map Business plans or budgets Business plans or budgets These both require planning and dialogue These both require planning and dialogue Overhead budgets Overhead budgets Forces thought about costs and lays the foundation for monitoring Forces thought about costs and lays the foundation for monitoring

Project Planning Project plans Project plans Productivity experts say that the payback for planning is at least 2:1 Productivity experts say that the payback for planning is at least 2:1 Plan how your projects will be executed before they start Plan how your projects will be executed before they start Forces discussion about “what if” Forces discussion about “what if” What would other advantages be? What would other advantages be?

People Assure you have great people in your corner Assure you have great people in your corner Your employees Your employees You can have pick of the litter right now You can have pick of the litter right now Professional advisors are a superb resource Professional advisors are a superb resource Attorney Attorney CPA CPA Banker Banker Insurance/Bonding Agent Insurance/Bonding Agent

People Leverage the knowledge and expertise of all of your “peeps” Leverage the knowledge and expertise of all of your “peeps” They want you to succeed, let them help you do so They want you to succeed, let them help you do so You just have to ask You just have to ask

In Closing Implement a new practice Implement a new practice Consistently do it Consistently do it Improve upon it Improve upon it Do it again Do it again

Fix the bike while you are riding it