» By: Edward McMahon

It's spring time, the time to rethink some of the things so essential to running a business or planning to start one. Here are a few thoughts that can make you and your business more successful.

1. Business is the process of taking raw materials, goods or services from a beginning point and adding value along the way to the final user. You must understand how your company adds value and how you differentiate yourself, because that is how and why you earn profits.

2. Plan,it is how you add value. Just like building a house, your floor plans are the basic outline and the cash flow statement adds dimensions to your plan. You canât build a house without a plan, and you cannot build a business without a plan.

3. When you âre out of cash, you âre out of business. It is the lifeblood of your business. Establish budgets, constantly watch and monitor your cash. No asset is more important to your success or survival.

4. Know your inventory. Slow moving or old inventory is like cash sitting on the shelf but you canât spend it. Convert that inventory into cash where it can once again become of value to your company.

5. The customer is not always right, but always has choices. Understand there is competition out there and the cost of gaining a new customer are far more expensive than keeping an old one. Customers buy on value, not cost alone and it is the value you must sell.

6. Understand your market and your target audience. Differentiate yourself. Find a niche in order to dominate your market. Remember much of your revenue comes from a small segment of your total customers.

7. Sell always. Identify your target audience. Know who your buyer is and develop your sales message, selling the benefits and then the features. And always ask for the sale, knowing when you do, so youâve earned it.

8. Your employees are a valuable asset. Treat them fairly, keep them employed. Let them know they represent you· and get rid of those who donât measure up.

9. Maintain good records. It is the record of your past, the basis for your tax and performance data and the premises for your future. Without good records there is much about your company that you do not know.

10. You don't know what you don't know. Continually research your market, your business, your competitors. The market is constantly changing. Not knowing can be costly because you are expected to know.

11. Don't fall in love with your ideas. You need the best ideas·sometimes they're yours and sometimes they're not. Be open to all good and constructive advice and do not block ideas because you didnât think of them.

12. Advertise your business. Create the desire to buy·now. Describe your message, simple and repetitive. Select your media carefully. Utilize a web-site. Focus on your target audience; insist on your agency or media representative showing you how the advertising benefits your company.

13. Use technology. Utilize computer systems to track inventory, customers, and cash flow. Use it to manage your bookkeeping, accounting and to help in maintaining good records. Used correctly technology is a great time saver.

14. Recognize the value of your vendors and suppliers. They are a helpful asset, a source of market research and competitive information. They can provide some short term financing. And always look for new suppliers to replace those who no longer serve you well.

15. Finally, time is a disposable commodity. Once spent it is lost forever. Use technology and planning to optimize your time because it is limited and can never be recovered. Your business is totally consuming, donât let anyone waste your time.

Think about these ideas. Simple as they sound, all too often we sometimes forget. Are you comfortable that you are doing all you should? Identify those areas that need attention and then move forward in 2002.

About the author

"Ed" McMahon's career includes both the small business and the corporate world. He graduated from Villanova Univ., has an MBA from CUNY and has completed postgraduate work at the Stanford University GSB. Ed has extensive small business experience as an owner, investor and counselor. He and his family owned several mall retail stores. He has dealt with many small retailers, distributors and manufacturers and has counseled several hundred small business prospects in understanding small business. He drafted the FTC disclosure statement for a convenience store chain operating in the Northeast U.S. He has held positions as executive vice president of a mid-size refining and marketing company, headed up the polymer division of a major chemical company and was employed as an officer of a major consulting company. He has taught "UNDERSTANDING SMALL BUSINESS" workshops for 11 years and writes for a regional business Journal. Reach him at USB@houston.rr.com