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We see and talk to a lot of people at this time of year. We’ve heard a lot of different perspectives on the current year and the road ahead. New questions have come up and new requirements are being imposed by people at different points in the supply chain. All in all, most people are expressing a sense of quiet optimism.
Here are some of the things we’ve heard over the past couple of months:
“2010 income is up from 2009 levels.”
“Good news: Wages were down in 2010 which meant that worker’s compensation costs were down. But wait, MY wages were down too.”
“What do I owe and why?”
“I need to reduce my retirement contribution.”
“What are my rights as an employer?”
“Thank you for taking a personal interest in what we do in our company.”
“We’re optimistic about the future.”
“People are being so conservative. Do you see the economy picking up?”
From borrowers, “What is up with lenders?”
“Bankers are requiring more information for loans.” We can help you understand the impact of changing different financial measures. Ask us about putting your numbers in Mentor Plus® $cope IT!™ Software.
From bankers, “We have plenty of money to loan.”
From borrowers, “The bank wants a cash flow projection. Can you help us?” Yes we can.
Heard multiple times, “I’m looking for a new banking relationship.”
“I’m beginning to feel better about the business.”
“Business is up. Profits are starting to grow. How can we save taxes? “
“I see lots of smiling people as they are leaving (the Grimbleby Coleman office.)”
“When will I get my refund?”
“My margins are lower, health insurance is up, and cash flow is down.”
“What are you seeing with other clients?”
“I am hearing a lot about insurance captives for worker’s compensation, liability insurance, and health care.”
“Why do I have to make EFT payments a day before the tax deposit deadline?” Learn more about EFT deposit guidelines .
“Something is wrong with my payroll taxes. The Employee Social Security amounts used to be the same as the Employer Social Security – now they are different amounts.” Read about changes to 2011 Social Security withholding here.
“When will I get my refund?”
“Do I have to pay the IRS now because of e-filing?”
“What is e-filing?” It is a way of electronically filing your tax return.
“It is hard to find renters with good credit.”
“We need to schedule our tax appointment. We’re running late this year.”
“One health care provider is working out terms to better accommodate clients in this economy. “
“Profits will be up this year. “
“I plan to hire 1-2 new employees. “
“We need to focus on profit and not just top line revenue.”
“Why is my taxable income so high when I did not make any money?” Ask us about seeing your numbers in an interactive format.
“We are positive about the economy in 2011.”
“The IRS was willing to negotiate on penalties if payment was made sooner than planned.”
“Contractors are requiring stricter reporting and are holding our payments longer.” You might want to review your system and reporting tools.
“We have been so busy this week!” (There is lots of customer activity).
“I am still trying to make my monthly budget work. “
We like questions. Even better – we like to help you develop solutions.
In just two weeks from today, the World Ag Expo in Tulare, CA will be opening for its annual 3 day run from February 8th through the 10th. Touted as the world’s largest annual ag expo, the event covers 2.6 million square feet of show grounds and attracts around 100,000 visitors each day. The 1,600 exhibitors will be bringing lots of new equipment to see, and information to absorb from all sectors of the industry.
I’m excited about all of this because several of us from Grimbleby Coleman will be visiting the Ag Expo on Feb. the 8th. We’re looking forward to learning about new developments in the industry and visiting with our clients. If you plan to be there, let us know by an email or leave a comment below – we would love to stop by and see your exhibit and hear how things are going for you.
More info on the event is available online at www.worldagexpo.com. Hope to see you there!
Two weeks ago, in full Administrative Assistant mode, I made a phone call to an insurance company with one goal in mind; to get a copy of my fiancé’s business liability insurance certificate. He is a landscaping contractor and liability insurance is a necessity for him.
After changing insurance companies because of poor customer service, he immediately started having problems with the new company when he needed a copy of his insurance certificate. Although the payment had cleared the bank, he still had a problem getting his hands on the paperwork. Repeated phone calls and e-mails over a week’s time were never returned.
By this time, he had a job that required a copy of his certificate. Except, as he couldn’t reach a live person, he couldn’t get a copy. After another week, he finally managed to get the rep on the phone and was promised a copy. Except, you guessed it, it never happened. Needless to say, he was a little upset (understatement) and frustrated (understandably).
At this point I offered to help by making a call for him. But, he tried one more time, got voice mail again, and finally gave in and let me help. I’d had enough myself and got the contact name and number.
I already knew that leaving voice messages wasn’t working, so my plan was to find a way around the voice mail. This was going to be tricky, though, since it seemed that the insurance company’s goal was to be unavailable to their customers.
My first call that morning hit the voice-mail wall and I hung up. How was I going to get a person on the phone? Their phone system was automated from the get-go which made it almost impossible to talk to a living, breathing human being. “Almost” is the key word here, though, so when I redialed I pushed the one button I knew would connect me…
“Press ‘1’ if you would like a quote for new insurance.”
Bingo!! Just as I thought, a live person came on right away. I nicely explained the problem and, before I could say thank you, I was transferred to someone right there in the room who could help me.
The story ended well, with no less than seven apologies, and a higher-level contact person (with e-mail address and direct phone line). And, the company followed through with both the needed documents and more apologies to my landscaper.
After going through all that, I couldn’t help but think to myself, “Just how clever do your customers have to be to get what should be the most important thing of all, the service or product for the money that they’ve paid for?”
As a consumer myself, I think only one thing… “Was what I just paid for worth it?”
If spending just one minute on the phone with your customers will not only care for their needs, but ensure that they keep returning, wouldn’t that be worth the minute? In times of economic abundance, perhaps this isn’t as much of a priority for some. But these days…??
Take a look at your processes, policies, and procedures, and then ask yourself…
“How clever do my clients have to be?”
It was a perfect day to get out of the sweltering valley heat. On a somewhat “typical for July” 102-degree day at home and the Sierras only an hour-and-a-half away, my wife and I decided to drive up to Pinecrest Lake for the day. At about 11:00, we decided to take the 4-mile hike around the lake. The weather was perfect, the lake was filled to the brim, and the river was rushing into the inlet. There were also several hundred other people who had the same idea as we did, so the trail was crowded with weekend warriors.
Note the consumer information and the "free water for your dog".
At about the 3-mile mark for us, we came across an oasis… Lakeside Lemonade. Oh, we had hiked past a lemonade stand earlier on our hike, but we weren’t compelled to stop. This stand was different, though, as three energetic entrepreneurs (Cal, Beth, and Carter) had set up, not just a lemonade stand, but a business. We pulled up a seat in the cushioned chairs they provided and soaked in the things that made this stand different.
These kids had put together a customer experience for the weary mountain trekker, so much so that they had created their own marketing buzz. As one family walked up, the father blurted out, “We’ve heard about you!” What entrepreneur doesn’t cherish hearing those words?
I took note of the business principles that had been employed in this operation. Of course, they had a desirable product in a great location. But, they had also employed creative pricing practices, customer care services, and consumer information. They had even “gone green” with their “Recycling” and “Compost” waste baskets.
Yet, even with all of these practices in place, one thing stood out that made their business very difficult to copy.
PASSION!
These entrepreneurs had an engaging energy that was fueled by their desire to make this business work, as evidenced by the tremendous pride they took in what they had accomplished. They told us how they had added cookies to their product offering as a response to customers’ suggestions last year. Their faces beamed when they showed us the cash box they had invested in with part of their profits.
To all business owners…!!!
Remember the passion you had for your business when you first started it? The pride you felt in your product or services to your customers? The enthusiasm you had when you went to work each day, if you could even call it work?
Do you still have it? If not, take a hike… around Pinecrest Lake, and get reenergized. Your business will thank you.
To Cal, Beth, and Carter… With your parents’ permission, I would love to add your picture to this article. They can email me at mfox@gccpas.net and we’ll work it out. I wish you all the best and congratulate you on a successful venture. I look forward to seeing what you have in store next year. Who knows, maybe a franchise on the other side of the lake?
As I was reading the latest blog on our website, I got to thinking about my recent road trip and the thought that crossed my mind as we drove home that last day…
We started out on Highway 99, worrying only about watching the other drivers and paying attention to our own driving to make sure we were safe. It didn’t take but a few hours, though, before we not only had to pay attention to other drivers and ourselves, but also make sure we were paying enough attention to the surroundings because there were now “jumping deer” added to the mix. Jumping deer! Jeez..I’m trying to learn to drive a new vehicle (big truck), I’m used to driving a little bitty car, so jumping animals weren’t welcome at this point. However, my opinion wasn’t asked so I dealt with what I was given.
Not long after that, we added “jumping elk” to the mix. (Jumping elk! ”Really, jumping elk?!? Oh man, kiss the vacation goodbye if that were to happen” was the thought that flashed at the first elk sign. At 65-70 miles an hour, a Chevy Sierra + jumping elk = I’m going to be hurting when it’s all said and done.)
(Needless to say, I was thankful and simply smiled when I saw the “cow crossing” signs. No big threat there, right? At least you can see a cow coming at you.)
At this point, and we’re still only day one into our trip mind you, I’m wondering how I was going to manage:
a) watching ‘the other guy’,
b) paying close attention to my own driving in an unfamiliar vehicle (thank goodness for cruise control),
c) anticipating the moment that a deer was going to jump out at me, and finally
d) anticipating the same for the even larger jumping animal – but, still not worried about the cows
Day seven is here and it’s our last day on the road. We had had a wonderful road trip so far - seen beautiful and awesome sites, and managed not to hit or be hit by a deer, elk or cow. Driving through the Sierras, through storm clouds and rain, surrounded by majestic snow-covered mountains, we came upon a sign that scared the day-lights out of me and made me realize that jumping wildlife was a cake walk.
DO NOT STOP
AVALANCHE AREA
Yeah, sure, o.k. Not a problem – NO stopping here – go faster! I got it!!
When I finally managed to get over my fear (well past the last DO NOT STOP sign as I’m a tad bit claustrophobic and ‘buried in snow’ wasn’t a look I was going for), I realized that all those signs along our journey had been reminding me of the messages that we send out in our blogs.
After all the miles (almost 2,000), we had continually been reminded to watch closely to what was going on around us at all times. We were reminded that life, like business, tends to throw those “little” things at you that you must always watch out for to make it home safely. From slow-moving cows that are easy to see and avoid, to an avalanche getting ready to drop and possibly bury you. You may not always get lucky and get the cow, but you can be prepared to move, and move pretty quickly, should it be the other!
With but the thinnest layer of protection, opposition set on maiming you swarms in at a pace that gives you only the briefest moment to make a decision. Your window of opportunity closes quickly as you must hit a target no more than one square foot while on the run.
No, you’re not Jack Bauer… You’re an NFL quarterback.
Somewhere along the line, I read about the progression a quarterback must make in transitioning from high school to college and, finally, to the NFL. In order to succeed, the quarterback must deal with changes in these four factors.
- The increased size of the players (and, it so happens, the level of injury threat),
- The speed of the game (imagine a 300-lb lineman who can close faster than a used-car salesman),
- The complexity of the offensive and defensive plans (who knew Stephen Hawking designed game plans), and finally
- The shrinking size of the target the quarterback must hit to complete a pass (high school – 5 feet, college – 3 feet, pros – 1 foot).
In recent discussions with business owners, these same factors have come to mind when talking about how business has changed with our shifting economy.
- The risk of being in business has definitely increased. Our local unemployment rate hovers near 20% and we are smack in the middle of the foreclosure capital of the country. Failed businesses line our main business districts.
- The rate of change is faster than ever. Technology advances open new opportunities (for both the business and its competitors), new products and services are constantly introduced, and banks have tightened their qualifications for small business financing. Owners must pay more attention to what’s going on around them if they want to succeed.
- The business and regulatory environment has become much more complex. Owners must wade through complex health insurance regulations, labor laws, safety and environmental standards, municipal codes and regulations.
- The margin of error continues to shrink. Owners who succeeded “in spite of themselves” must now know exactly where to look for increases in efficiencies, new market opportunities, cash management strategies, etc. They must pay attention to the details.
Over the past several months, we have had many opportunities to work with local business owners who have successfully weathered the toughest times and are now seeing opportunities open in front of them. From our position, we have noticed that successful business owners…
- stay informed.
- use their advisors wisely.
- pay attention to details.
- know which things are critically important and closely monitor that information.
- anticipate changes and plan for the future (both short-term and long-term).
- stay fiscally fit so they are healthy enough to weather the tough times and take advantage of opportunities that arise.
In short, they act like a pro.
“It’s designed to break your heart. The game begins in the spring, when everything is new again, and it blossoms in the summer, filling the afternoons and evenings, and then as soon as the chill rains comes, it stops, and leaves you to face the fall alone.”
A. Bartlett Giamatti, Former Commisioner of Major League Baseball
Ahhh, baseball. Every year about this time I have a brand new love affair with the game. They say, “Hope springs eternal,” and there couldn’t be a better case for that than the beginning of baseball season. Whether you’re a New York Yankees fan, jaded by the expectation of pennants year after year, or a long-time Chicago Cubs fan, still waiting to see your team in the Fall Classic, April brings the promise of hope that “This could be the year!”
As a San Francisco Giants fan for nearly 50 years, I have endured my share of heartaches over the decades.
The sixties, with a tremendous roster, but a string of 2nd place finishes. How could a team of Mays, McCovey, Cepeda, and Marichal not win one pennant?
The seventies… orange softball shirts and orange bills on the caps. ‘Nuf said.
The eighties… I’ll never get rid of the image of right-fielder Candy Maldonado sliding on his rump, successfully turning an out into a game winning triple for the Cardinals. Two years later, God personally stamped his seal on the Giants’ fate with a 6.9 earthquake in the middle of a four-game World Series sweep at the hands of the Oakland A’s.
In the nineties, things got interesting. They couldn’t win the pennant with 103 wins, they were swept in the playoffs by a wild-card team, and they lost a one-game playoff to the even-more-snake-bitten Chicago Cubs.
A new decade, a new millennium, even a new ballpark was needed. Alas, a 3-2 game lead in the World Series and a 5-0 lead in the 7th inning of Game 6 turned around 
quickly as the Giants lost to a stupid Rally Monkey! Two years after that, yet another playoff loss to the Marlins.
Yet, here we are in 2010 and again I say, “This could be the year!” Even though 52 years have gone by since the Giants moved to San Francisco and they still haven’t won a World Series crown, I am excited about the prospect. I am re-energized by the fresh start, by the young new prospect who lit up AA in some town I only know as a Giants farm team, by the veteran whose glory days are behind him, but who will undoubtedly resurrect his career this year.
So, what is the connection to business or accounting? Is it that we have an opportunity to put the dismal year of 2009 behind us, throw off the bad news of the recession, and start 2010 feeling inspired that we have a chance to make a fresh start, that “This could be the year?”
No. I just love baseball.
Success in business lies in understanding the needs of our clients and customers and then providing something of value in response. Sounds simple, right? Our customers will tell us what they want, we take care of it and everyone is happy. Let me use my recent trip to Lowe’s as a quick case study of how this just might not be so simple in real life.
I stopped by Lowe’s one evening after work with a fairly simple mission: get the part I need to fix a broken plug on our vacuum cleaner’s electrical cord. Being the power-tool-inhibited accountant that I am, I knew there was a chance that things could get a little dicey once inside the store… but I was able to find the electrical aisle successfully on my own. I noticed a Lowe’s employee in the aisle and headed over to him with my simple request.
Me: “I’m looking for something to fix the end of a power cord.”
Employee: Blank look.
Me [realizing that this isn’t coming out quite as smoothly as I intended]: “Uh, you know, like where you plug a cord into a wall. I need something to fix that.”
Employee: Blank look, with hint of nervousness.
Me [wondering if I should talk louder, slower, or both]: “You know where the prongs are that go into a wall, and one of the prongs came out so I need to fix it…”
Employee: “Uh, this really isn’t my main area. I’ll get someone else to come over here.” [Exits rather quickly]
Ok, I’ll admit that while I could picture what I needed, I didn’t have a clue how to describe it. Actually, I should have been using the phrase “replacement plug” (which, for the record, I discovered on my own in the next aisle).
So maybe that communication thing isn’t always as easy as it sounds. Think about your customers. How can you help them communicate their needs and questions? Is industry jargon too often a barrier to your customer’s understanding? Sometimes it helps to look past the question to the motivation behind it. What are the unasked questions under the surface? While you may not have all the answers, your customers will appreciate your attempt to speak and understand their language.
They give up pleasure, endure pain, practice at ungodly times of the day, all so they can be a little bit better than they were yesterday. There is no financial payoff, no medal, no crowd of followers. What is it, then, that keeps the non-elite Olympic athletes going, dedicating their lives to pursuing excellence in their particular sport, knowing they will never have a realistic chance to compete for a medal?
More at http://bit.ly/dtEKtC
My 5th grade daughter is raising a puppy for Guide Dogs for the Blind. Zoria has been living with us for about a year and has taken up residence in our hearts. Since being involved with this organization, I have come to see visually impaired people in a whole new light.
Hoping to see what we could expect from our efforts, we attended a graduation ceremony at the Guide Dogs for the Blind campus before we agreed to raise Zoria. It opened my eyes not only to the puppy raising program, but to my perception of blind people as well. I was characterizing the recipient of a guide dog as “blind.” These graduates were so much more than that. They were forest service workers, musicians, college students, fathers, grandmothers and many other things. In addition, they happened to be visually impaired. This guide dog was going to help them navigate through the world they lived in – not be their lasting impact on the world.
Business is a lot like this. Sometimes we need a “guide dog” to help us navigate through a narrow area of our business. We may be experts in business, but that one area of “blindness” or “near-sightedness” is holding us back. Find yourself a trained guide dog and open up the opportunities around you.
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