Welcome to the February 2007 edition of Business
Success, dedicated to helping business owners to
build a better business.
I hope you are ready to Spring Forward in more ways
than one! See our call to action on the right and also
check out how Daylight Savings Time can affect your
business in our final article.
Also, don't miss our our schedule of Teleclasses and
Webinars. Our monthly Businesses Getting Results
series is open to the public as well as Advisors On
Target clients.
Upcoming Teleclasses & Webinars |
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Hire the Right People and Get Them Productive
Fast!
Thursday, March 8, 2007
1:00 PM Eastern (12:00 PM Central, 11:00 AM
Mountain, 10:00 AM Pacific)
Managing the Customer Relationship
Thursday, April 12, 2007
4:00 PM Eastern (3:00 PM Central, 2:00 PM
Mountain, 1:00 PM Pacific)
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Get Specific When You Advertise |
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How many advertisements do you see that just
scream out: We give you the best prices or
Our service
is better? The simple answer is, too many. It’s
easy to
make a promise like this in an advertisement and
every newspaper is full of them, but they can be a real
turnoff to an aware public who are interested in finding
value and need proof that you can offer it.
Consumer research has consistently shown that
people perceive most businesses as having similar
relationships between their pricing and service. They
know that there are top of the line suppliers that excel
in service and charge higher prices, just as they know
that there are cut rate suppliers with lower prices and
lower standards of service.
But they also perceive that the difference in pricing
between the two levels isn’t all that great, and that no
business will stay around long if its service isn’t at
least acceptable. That leaves the important question
of how you can stand out from the competition while
still trying to communicate your own value
proposition.
Tell them what you’re going to give
them
If somebody’s never been a customer of yours
previously, your advertising has to be very specific in
painting a picture of what they’ll find if they buy from
you. It’s essential to convey your uniqueness rather
than just trying to say We’ve got good prices and
service.
What is it about your business that will interest a
prospect? What will you do for them that nobody else
can do? Or, that nobody else is saying they’ll do?
It begins by finding out what your customers and
prospects really want, then telling the world that you’ve
got it. What’s really important to them that will induce
them to purchase from you?
The biggest thing to keep in mind is that your
advertising has to be about them and not about you.
Be specific about what you’ll do for them – is it better
fitting clothes or a smoother running engine? That’s
what they really want, and not just bland statements of
price and service.
Customize your benefit
Once you’ve identified the basic benefit that they want
and you can provide, augment this with an offer that’s
specific to your business. Take a hypothetical
situation where a person’s refrigerator has broken
down and a replacement is urgently needed.
That person looks in their telephone directory and
sees two advertisements for refrigerators. The first
says:
Award-winning electrical appliances. Great service
and the best price.
The second advertisement says:
Electrical appliances delivered free. Same-day
service to most areas.
It’s obvious that winning awards and vague promises
about service and price aren’t nearly as important to
somebody without a refrigerator as having it delivered
quickly and especially if it’s free. There’s no question
about which advertisement is going to be the most
appealing.
The best way to stand out from the competition is to
base your advertising on what your customers really
want and how you’ll provide it to them. Think about this
the next time you prepare an advertisement and you’ll
be using words your customers want to hear.
Information in this article is sourced from RAN ONE,
Inc.
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QuickBooks Tip - Undeposited Funds Account – What is it for and why use it? |
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By Teri Milligan, QuickBooks Consulting and
Implementation
When you load QuickBooksTM Accounting Software
and set up your company data file, one of the accounts
that QuickBooks creates automatically is
the “Undeposited Funds” account.
A lot of my clients really don’t understand the purpose
of the Undeposited Funds account and often this can
cause a problem in their accounting records. The
purpose of the Undeposited Funds account is to
group payments from your customers based on when
you deposit them in the bank. Using this account
correctly can greatly reduce the amount of time it takes
to reconcile your bank accounts in QuickBooksTM.
Often my clients will have a large balance in their
Undeposited Funds account because they accept
payments through the “Receive Payments” window,
but do not go the next step to group those payments in
the “Make Deposits” window and deposit them in to a
QuickBooksTM bank account.
If in your business you only collect a few larger checks
and tend to deposit those checks when you receive
them, then you might want to change how QuickBooks
automatically sets this auto preference to allow you to
deposit your client payments directly in to your
QuickBooksTM bank account.
Changing this preference can give you the flexibility to
choose where you want to deposit your customer
payments, either the Undeposited Funds account or a
QuickBooksTM bank account. A note of caution, if you
do change this preference you will have to be more
aware of where you are depositing your payments.
To change this preference, click on the “Edit
Menu”, “Preferences”, then choose “ Sales and
Customers” on the left hand side. At the bottom of
the “Company Preferences” tab, is a check box
called “Use Undeposited Funds as a default deposit
to account”. If you uncheck this box, then you will have
an new option that says “Deposit to” with a drop down
menu on your sales receipts and in your “Receive
Payments” window as to where you want to deposit
the payment, either your Undeposited Funds account
or a QuickBooks bank account.
To learn how to use QuickBooksTM more efficiently in
your business you can contact Teri at 619-463-6851
or by e-mail at teri@terimilligan.com.
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Company Liability for Employee Errands |
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By Christopher W. Olmsted, Attorney
Businesses routinely send employees on company
errands in their personal vehicles. In many
companies, it would be hard to find a day when one
employee or another does not jump in the car before
or after work, or during lunch, to make a bank deposit,
swing by the post office, pick up lunch for the staff, or
run some other simple errand. What kind of legal
risks does a company face if someone gets hurt in an
accident caused by such an employee?
General Rule: Employers Liable for Acts of
Employees -
It is a general principle of law in California that
employers are liable for injury caused by employees
who are acting “within the course and scope of their
employment.” Attorneys refer to this principle of liability
with the Latin phrase “respondeat superior.”
For example, a pizzeria is liable when its delivery
driver causes an accident while delivering pizza. A
home improvement store will be liable when its
stocker topples
merchandise off a high shelf onto a customer.
“Going and Coming Rule” -
Employers are not ordinarily liable for injury caused by
an employee during his or her normal commute to or
from work because commuting is not part of the
course and scope of employment.
Special Errand Exception -
Not all personal driving activities fall outside the
course and scope of employment. An employee
running a special business errand is deemed to be
within the course and scope of employment. The
errand can be done either as a part of regular duties
or at the specific request or order of the employer.
Importantly, the entire trip counts as part of the course
and scope of employment, from the start of the errand
until the employee returns to the work place or departs
from the errand for personal reasons.
Courts have been fairly strict about when the errand
becomes personal, requiring a “substantial
departure” for personal business before respondeat
superior liability ends.
In many cases, running a business errand on the way
to work or on the way home will cause the entire trip to
fall within the course and scope of employment.
For example, an employer may be liable for injuries
caused an employee who is asked to make a bank
deposit on the way home from work, and who after
making the deposit causes an accident on the way
home.
Minimizing the Risk -
The right kind of insurance coverage is a must. Every
business ought to purchase “nonowned” automobile
insurance coverage. This insurance covers accidents
caused by employees driving their own cars (i.e., cars
not owned by the company).
Even with suitable insurance, litigation will be an
unwelcome distraction, and quite possibly harm
business in broader ways. Consider the possibility of
respondeat superior liability any time that an
employee is asked to run an errand or drive on
company business. Implement company policies
regarding the use of personal vehicles for company
business. Limit the number of company errands and
the employees who run them. Restrict errands to
business matters when feasible. A company-wide
awareness of the potential for respondeat superior
liability, along with appropriate risk management
measures, will go a long way keeping the company
out of legal tangles.
Christopher Olmsted is a member of the law firm
Barker Koumas & Olmsted, practicing in the areas of
employment law and business litigation. He can be
reached at (619) 682-4040 or Email
The article presented herein is intended as a brief
overview of the law and is not intended to substitute
as legal advice. Any questions or concerns regarding
any statute or case law should be addressed to a
licensed attorney.
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Daylight Savings Time May Affect Your Business |
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by Jim Muglia, Computer Consulting and
Maintenance
If you were not aware, this year Daylight Saving Time
(DST) extends by approximately four weeks.
In compliance with this provision in the Energy Policy
Act of 2005, DST dates in the United States and
Canada will start three weeks earlier (2:00 A.M. on the
second Sunday in March) and will end one week later
(2:00 A.M. on the first Sunday in November).
In some instances, some effort will be required to
accommodate the new DST legislation. For example,
your computer systems and applications may need to
be updated directly, while in other circumstances the
application may inherit the date and time information
from the underlying operating system.
Details of the updates for Microsoft Windows and
affected Microsoft applications, how customers can
acquire them and when they will be available can be
found on the Microsoft website at
http://www.m
icrosoft.com/dst2007. Corresponding
technical Knowledge Base (KB) articles are linked
from this website as well.
Windows Mobile will have more KBs relating to the
time changes, I hear and Microsoft recommends you
keep an eye on their DST time rules change page for
any new developments.
Note: To date Microsoft is not making any patches
available for Win9X, ME or NT, as these are
unsupported systems. And, for you techies, if you
have any old app servers or legacy workstations, take
note!
In addition, FAX machines (along with PBX/Voice
Mail/Alarms/Security Cams) will also be affected by
this change and potentially each will need to be
adjusted four times per year, as a manual
adjustment. At home you might also have
VCR/VDR/DVRs to think about.
It’s not that ANY device will die, but there is a very real
possibility that you won’t be able to log in or, in the
case of an application with a calendar function, you
may miss an appointment by an hour.
This article was brought to you by Microsoft, Roger
Otterson and Jim Muglia.
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Memorable Quotation |
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Fear melts when you take action towards a goal you
really want.
~ Robert G Allen
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Spring Forward! |
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Spring is just around the corner, even if it doesn’t feel
that way in your part of the country! What does that
mean for you as a business owner?
If you have been in a winter “slow” season, I hope you
have been working ON your business, fine-tuning your
2007 profit plan and marketing strategies, and getting
ready to move forward with “all systems go” for your
busier months just around the corner!
Make sure that you are ready to move with your
marketing and hiring systems in place now – don’t
wait until business starts to pick up – you may have
already lost the jump on really making your plan work
if you are not ready to roll forward.
Need a business coach to help you get moving?
Give
us a call at 858.320.8996
and let us help you get moving towards a successful
2007!
Advisors On Target has options that work for you:
- Business Performance Review
- Business Coaching
- Individual Consulting
- On Target Group Program
Find out more....
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