bercpa blogs

Unique Business Value Proposition

2010-06-14T06:24:00.001-07:00

Existing customers and prospects make decisions everyday about how to invest their resources. These decisions are based upon what they feel benefits them. They make trade offs with each purchasing decision. A well defined Unique Business Value Proposition will help you retain your existing customers and direct new customers to your business.

Recently, I wrote a white paper article for Santa Barbara bookkeepers about the importance of having a Unique Business Value Proposition for their business. While this article was directed to bookkeepers, the concept of a Unique Business Value Proposition is universal to all businesses.

Remembering John Wooden

2010-06-05T13:34:00.000-07:00

"Winning is a by-product... The score will take care of itself when you take care of the effort that precedes the score."

John Wooden, 1910 - 2010

Head Coach UCLA Basketball

No doubt the success of any organization will always be dependent on its leadership.

John Wooden was an excellent leader, and this is reflected in his success as coach of the UCLA bruins. While he was known as the wizard of Westwood, wizardry had nothing to do with his and the team's achievements. Coach Wooden lived his life by some very basic principles, and he used these principles to lead others.

Read more about Coach Wooden, and study his Pyramid of Success at The Official Site of John Wooden.

Focus

2010-05-06T07:21:00.000-07:00

"Obstacles are those frightful things you see when you take your eyes off your goals." - Unknown

I'm wondering: How many business owners are seeing current economic conditions as an obstacle?

Just The Facts

2010-04-05T12:49:00.000-07:00

“All we want are the facts, ma’am.”. That was the request Sergeant Joe Friday
made on a regular basis to keep the witness focused on the task at hand and lend clarity to the situation.

As a business owner, you are constantly being bombarded with excess
information, when all you want are “Just The Facts.”

With that in mind, the firm is offering a special on a “Just The Facts” financial report for your business. For an investment of $750, you will receive a financial analysis of your business information with a one hour debriefing designed to help you focus on the relevant issues and give you clarity for future business planning.

Also available, a complete financial analysis and profit improvement potential calculations with a two hour debriefing and viewing of the First Steps video for an investment of $1,500.

Please share this information with others who might be interested.

Click Here For Flyer

Make the Most of Your Resources

2010-03-25T07:30:00.000-07:00

My Friend Ric Payne, CA shared the following information on Facebook this morning:

I read that the source of competitive advantage had shifted from access to natural resources, financial strength & market access to: technology, human capital & organizational capacity to manage change. Little wonder intangibles have gone from being 38% of market cap in 1982 to 85% in 2000! Where will it end? Will tangibles even be relevant in the future?

With this in mind, many small businesses may think they are at a disadvantage due to the limited resources (technology, human capital and organizational capacity) that they have internally. But, this does not have to be the case. Many small businesses over come the lack of internal resources by making the most of the opportunities available through external resources. Such resources include CPAs who are members of the Principa Alliance, their bankers, their attorneys, industry organizations, and fellow business owners (through the Business Boot Camp).

Brenda Richter, CPA is a member of the Principa Alliance.

Customer & Team Loyalty

2010-03-23T09:13:00.000-07:00

Robin Sharma’s VLog on customer service reminds me of the work I do with my customers – reminding them that the goal isn’t to satisfy their customers but to dazzle them. We must exceed our customers’ expectations.

The March topic for Business Boot Campers was Team & Customer Loyalty. We went through a case study of a small business just like theirs that incorporated Frederick Reichheld’s Six Common Principles of Team and Customer Loyalty. These principles apply to any business and it starts and finishes with the individual business person, not with complicated software packages, expensive databases or highly energized committees.

Boot Campers had a truly extraordinary experience, and left with the tools they needed to create similar experiences in their business.

Fearless - The True Entrepreneurial Spirit

2010-03-18T11:00:00.000-07:00

Rebecca Tervo, CPA shares her entrepreneurial experience.

http://tervofinancialfitness.com/blog/2010/03/fearless-and-in-pursuit-of-my-business-dreams/

If you are looking for a CPA like Rebecca in central and southern California, please contact Brenda Richter, CPA.

One Page Financial Report

2010-03-12T09:31:00.000-08:00

Check out a sample of the best one page financial report in the universe.

http://www.keepandshare.com/doc/view.php?id=1800190&da=y

Measure What Matters

2010-03-01T10:00:00.000-08:00

The Institute for Management Accountants (IMA) and the Santa Barbara Networking Group are holding a joint meeting in March. Brenda Richter, CPA will be leading a dicsussion called: Measure What Matters - Accounting Outside of QuickBooks.

For more information:
http://www.keepandshare.com/doc/1767844/march-2010-mtg-pdf-february-23-2010-3-57-pm-30k?da=y

Good Question

2010-02-24T09:06:00.000-08:00

Kevin Liebl asks businesses an interesting question this week:

Has Your Company or Product 'Jumped the Shark'?

Liebl goes on to explain that "jumping the shark" refers to a company's last ditch effort to save a dying product or service.

I wonder how many business owners are blaming the economy for their lack luster performance, when in fact their main product or service has reached the end of its life cycle.

Do You Believe In Miracles?

2010-02-22T06:16:00.000-08:00

Congratulations to the 2010 US Olympic Hockey Team on their 5-3 victory over the Canadian team. This allows the team to advance to the quarterfinals. Just one day shy of the 30th anniversary of the historic USA win over the Soviet team in 1980, some are calling this win a second Miracle On Ice.

Today marks the 30the anniversary of the original Miracle On Ice. This has always been my number one favorite sports moment.

In the book Finish Strong, (published by Simple Truths) the author Dan Green recounts the events that led to the 1980 US Olympic Hockey Team's gold medal. The story demonstrates the winning effects of combining strong leadership with a strong team. And, of course, how "belief" contributes to one's ability to Finish Strong.

As I've suggested earlier, I would like to recommend that businesses hold a special session with their team and watch the movie version of this story as an inspiration on how the business can Finish Strong.

Brenda Richter, CPA and other members of the Principa Alliance can enhance your team building activities with Team Advisory Boards (TAB) and Towards Awesome Service (TAS) training.

Who Are You Putting First?

2010-02-16T08:05:00.001-08:00

Congratulations to Alexandre Bilodeau for winning the Olympic gold medal in men’s moguls. This was not only a great honor for Bilodeau personally, but also for Canada. By winning the moguls gold medal, he ended what some have called an Olympic curse. No Canadian has won a gold medal in the two previous Olympics hosted in Canada.

Bilodeau started his athletic career as a young boy on the ice. And while he showed much promise, he changed to skiing since it provided greater access for his older brother Frederic who has cerebral palsy. This single unselfish decision has led to success for Bilodeau that most would only dream of or consider unimaginable.

Truly awesome.

What about your business? What type of success could you achieve if you put someone else first?

Your customer.

With a single unselfish decision to make your customer the primary focus of your business, you too can have an awesome business and achieve unimaginable success. Think about your product/service mix, the design of your products/services, the delivery process, your pricing structure, your guarantees, and any other customer service issue for your business.

CPAs who are members of the Principa Alliance are not your average advisory firms. Far from it. They do so much more than just “keep the score.” These firms will work with businesses to identify areas in the business that are not realizing their full potential and help improve them to build a stronger and more profitable future. A firm’s membership in the Principa Alliance means that customers have access to the collective knowledge and expertise of an international network made up of hundreds of professionals who specialize in consulting to small and medium-sized businesses by providing services such as the Team Advisory Board (TAB). Everyday team members are on the front line of customer service. The TAB workshop is a facilitated interactive session designed to tap into a team’s collective experience and develop a business strategy to put the customer first. Other services include Customer Advisory Boards (CAB). This is a facilitated meeting of your top customers to discover what they truly value about doing business with you.

Congratulations

2010-02-10T06:55:00.000-08:00

Congratulations to Brenda Richter, CPA who was featured as a guest blogger on America's Best Business Practices.

http://bestbizpractices.org/2010/02/08/tips-for-small-business-2009-income-tax/

Drew Brees and The Saints Finish Strong

2010-02-08T06:53:00.001-08:00

The Team at Simple Truths is thrilled about the Super Bowl. Back in the Spring of 2009, Drew Brees, quarterback of the New Orleans Saints, picked up a copy of their book
Finish Strong. He felt so motivated by it that he got copies for his entire team to use as their season theme.

When I first saw the Finish Strong book and video featured on the Simple Truths web site, I was awe struck. I immediately saw that this should be the theme for business in 2009. My New Year message to my customers and business associates was to FINISH STRONG! And, like Drew, I purchased copies of the Finish Strong book for my customers and some of my associates. Through out the year, I sent on going messages to these same people to remind them of the commitment to Finish Strong!

In approximately six months, Drew Brees used Finish Strong to take the Saints to a winning season, to the NFL play-offs, to the Super Bowl, and won the Super Bowl. Most of you have had the Finish Strong message for over a year now. What did you do with it?

Brenda Richter, CPA continues to be available to help your business with these concepts. The firms can work with you to identify areas in your business that are not realizing their full potential and help you improve them to build a stronger, more profitable future. This is a step-by-step process that includes creating a strategic plan, plan implementation, systems development, customer service and team training, and ongoing monitoring and management advice.

How to Ensure Your Entrepreneurial Venture Will Fail

2010-02-05T11:46:00.000-08:00

"How good could your business plan be if it doesn't even contemplate the cost of having to keep records and prepare income tax? Can you really say that you have adequately identified your capital needs if professional fees for accounting and income taxes haven't been included in your cash flow projections?"

Read more from Alex Vuchnich.

Three Little Entrepreneurial Pigs

2010-02-03T08:07:00.000-08:00

For well over a year now, we have been experiencing an economy that includes an enhanced feeling of financial uncertainty that is having an impact on business and consumer activity.

This does not have to be bad news. Uncertain economic times create opportunities.

Traditionally slow economic times are when the weak get sorted out and the complacent get pushed aside. They are therefore times of great opportunity for companies that see and seek the opportunity to break away and experience unprecedented growth. When times are good, virtually anybody can make a profit. But, in tough times true strengths and weaknesses are revealed.

Join us to learn about three businesses that took three different approaches to dealing with uncertain times in business.

The Santa Barbara Networking Group presents The Three Little Entrepreneurial Pigs - A Story of Doing Business in Good Times and Bad. Thursday, February 18, 2010 7:30 am at Marmalade Cafe.

To register: Flyer & Registration Form

2010- Get Ready Message # 1

2010-01-28T09:18:00.000-08:00

The third quarter of 2008 marked a total upheaval of our economy that included large decreases in the stock market, the failure of many businesses, several quarters of economic decline, and an increase in unemployment rates. Yet just one year later the third quarter of 2009 showed economic growth of 2.8% and a gains of 40% - 50% in major stock markets from their March 2009 lows. All indications are that when results are published later this month that the fourth quarter of 2009 will have growth greater than the previous quarter. In December when announcing no change in interest rates “the fed” indicated that while our current economy is still quite fragile, growth was expected to into 2010 and beyond.

Assuming no major catastrophes, 2010 stands to be poised as one of the most opportune times for businesses in quite some time. Is your business ready for the opportunities ahead?

GET READY!

This is the perfect time to commit to getting ready. You can start by joining a Business Boot Camp and setting your 2010 goals.

Call me, and let’s talk about how your business can Get Ready.

Recommended reading for goal setting: GOALS—The 10 Rules for Achieving Success by Gary Ryan Blair, published by Simple Truths.

Also, let me know if you know anyone who could use help Getting Ready in their business. I will be happy to send them more information or meet with them to get them started.

Remembering Glen Bell

2010-01-20T05:39:00.001-08:00

Glen Bell Jr. studied McDonald's before opening his Bell's Drive-In in San Bernardino, Calif., in 1948. Three years later he added 19-cent tacos to the menu, but it took another decade before he opened his first Taco Bell using $4,000 scraped together from family and friends. Bell, who died Sunday at age 86, sold his company for $130 million after introducing millions of Americans to their first taco.

Veiw: Taco Bell's Message

Calling All Hands On Deck

2010-01-19T08:34:00.001-08:00

In the old sailing ship days, the captain’s cry of “all hands on deck” spurred every man on board into action, whether or not it was his watch. The welfare of the ship and all who sailed on her depended on it. The command is still used on naval ships and as a general call to action.

Mike Cough, serial entrepreneur and SCORE business consultant, recently issued the command “Calling all hands on deck” to the American small business owner. His opinion is that the needed economic turn around is dependent on small business. He then asks business owners to issue the “all hands” command to their team.

Clough goes on to point out that change will only happen when people take action.

I would like to take Clough’s idea one step further. Not only should business owners call on their team, they should also issue the command to their fellow business owners.

I have created the Business Boot Camps to bring business owners together and give them the opportunity and place to develop their “all hands on deck” strategy.

Read: Clough’s All Hands On Deck Blog

The Impossible Dream

2010-01-13T15:28:00.001-08:00

“The annals of American business are filled with ‘impossible dreams’ that have come true. I believe in those dreams, and most importantly, I believed in my dream.”

Mary Kay Ash, The Mary Kay Way

Every business owner has a dream for their business.

When was the last time you thought about the dream you have for your business.

This is why I created the Business Boot Camps. The Business Boot Camps are designed to give small business owners the opportunity and place to think about their dreams and do the learning and strategic planning necessary to make those dreams come true.

Get together with a group of fellow entrepreneurs to enhance your CEO skills and become a more effective business owner. Start to think about your dreams, believe in your dreams, and make your dreams come true.

Get Ready To Be Exceptional

2010-01-06T07:37:00.000-08:00

"Nobody can prevent you from

choosing to be exceptional."

Mark Sanborn

The Fred Factor

Studies have shown that the most successful entrepreneurs are those who are in a constant state of learning, and will take chances on attempting the impossible. Read about the Stanford Graduate School of Business research.

The results of studies like these are exactly why I created the Business Boot Camps. The Business Boot Camps are designed to give small business owners the opportunity and place to do the learning and strategic planning to do the impossible.

It's Always Nice to Get Feedback

2010-01-03T10:39:00.000-08:00

I received the following note from one of my students:

I would like to thank you for a wonderful class. I truly enjoyed learning because of your enthusiasm and sense of humor. I also appreciated your patience with each of us. I have never taken a college class where the instructor has involved everyone in the class. It was very refreshing and made the class interesting. I will definitely recommend your class to anyone wanting to take an accounting course.

Happy New Year

2010-01-02T15:07:00.000-08:00

GET READY

HOW DID YOU FINISH?

2009-12-31T13:51:00.000-08:00

As the year ends, it’s time to look back and assess our accomplishments for the year.

At the beginning of 2009, I introduced business owners to the book, Finish Strong by Dan Green (published by Simple Truths). And, I challenged business owners to do like the book says: Finish Strong.

Through out the year, I have provided additional inspirations and resources to business owners based on the book, so that they could Finish Strong.

So how did you finish 2009?

Please share your Finish Strong story.

Movies as Inspiration

2009-12-13T05:09:00.000-08:00

Recently, I was on a business discussion forum, and the moderator asked, "What movies have inspired you?"

Here's my response:

Miracle (by Disney) that tells the story of the 1980 USA Olympic hockey team and their gold medal win.

I was particularly inspired by coach Herbie Brooks and the way he brought together the best people to create a winning team. He worked with each player to bring out the best in them. The greatest example of this is reflected in one game where the team score 7 points by 5 different players. I aspire to be like that when I work with my customers. Recently, I sent a copy of the DVD to my customers and some business associates to inspire them in much the same way.

WOW – how many CPAs do something like that!

Please share the movies that have inspired you.

Kick Start Your New Year

2009-12-06T07:22:00.000-08:00

Recently, SUCCESS magazine published 44 Ways to Kick-Start Your New Year.

What would you add to the list?

Business Boot Camp Groups

2009-12-03T06:08:00.000-08:00

Every so often something NEW comes along.

Of course, it’s even better when that something new also happensto be something that adds terrific value to your business.

With those two things in mind (new and adding value) I would like to tell you more about the Business Boot Camp™. It is exactly the sort of program small business owners have been asking for.

Research from lthe 2007 Good to Great event indicates that business owners want to be educated about the following:

Understand their business

Understand their financials

Understand problems and solutions

Enhance business ownership skills

In addition, business owners also mentioned that they enjoyed the opportunity to meet with other business owners to talk and learn about business processes. The Business Boot Camp™ is an opportunity for small business owners to come together and develop their CEO skills, and in turn create extraordinary businesses and extraordinary lives. Business Boot Camp™ groups are now forming.

Contact Brenda Richter, CPA for information on how you can get involved in a Business Boot Camp group.

Also, if you know any other business owners who might be interested, please share this information with them.

Life

2009-12-02T15:44:00.000-08:00

Life is not measured by the number of breaths we take, but by the number of moments that take our breath away.

Your business is the means for creating those moments.

What to do About Non Performing Team Members

2009-11-30T09:09:00.000-08:00

Peter Drucker once said:

“Executives owe it to the organization and to their fellow workers not to
tolerate nonperforming individuals in important jobs."

My friend Scott Heintzelman, CPA has written an excellent blog expanding on this concept. I encourage you to read it.

Scott's blog: Help, I Want to Fire a Family Member From the Business

HAPPY THANKSGIVING!

2009-11-25T07:32:00.000-08:00

Happy Thanksgiving!

Ronald Reagan once said,

“There are no great limits to growth because there are no limits to human
intelligence, imagination and wonder.”

Earlier this year, I sent business owners the book Finish Strong by Dan Green and inspired them to dedicate 2009 as the year to Finish Strong! As we search for way to Finish Strong this Thanksgiving, in addition to being thankful for friends, family and good health, we can be thankful for our intelligence, imagination and wonder. For these are the things that will bring our businesses growth and prosperity during the next year.

Does a Small Business Need Leadership or Management?

2009-11-18T13:17:00.000-08:00

The answer is both. Have you ever heard the expression “Too many generals and not enough soldiers?” Well it works both ways. Too many soldiers without a strong general will surely find themselves fighting the wrong battles.

Businesses with too many leaders fail from their inability to manage and implement day-to-day business issues. Likewise companies with excellent managers fail because they did not innovate, motivate, change nor watch for strategic threats.

It’s important to develop managers who can lead and leaders who can manage. So what is the difference?

For example great managers manage costs, inventory, cash flow, processes, information systems, facilities and operations. When it comes to leadership, great businesses lead their people, drive the company vision, guide their team and customer perceptions, and ultimately generate a positive and productive corporate mindset and culture.

As the business owner, you are responsible for leading your business to success and getting your people excited about your vision for the business.

Too often leadership is seen as defining a step-by-step business strategy and expecting people to follow the steps or suffer the consequences. Coming up with a strategy and relying on your position as business owner is not enough.

That model fails you, your team and your business. People will learn to do just what they have to so that they can meet expectations and not lose their job. True leadership is the art of understanding and rewarding your team so that they are motivated to make your business a success. It’s important to recruit competent people who can manage the day-to-day tasks and operations so that you can lead your organization forward.

The final test of your success as a leader is the financial statements. Financial statements are the final result of the accounting process, and accounting can be simply defined as the quantification of business activities. Perhaps business owners should give consideration to changing the name of their income statement from “Results of Operations” to Results of Leadership”.

Measure What Matters

2009-11-17T14:00:00.000-08:00

Do your business's internal measurements give you a competitive advantage in the marketplace? Do they judge the success of your company the same way your customers do? Are they leading indicators that have predictive ability, and correlate with value as defined by your customers? If you get what you measure, what exactly, do your internal metrics get you?

Yesterday I attended a progressive CPA course and walked away with a deeper perspective on the different ways to measure an organization’s success.

If you would like to discuss these matters, please contact me. I am ready to have a meaningful conversation on how to implement Key predictive Indicators that matter.

Back to the Book

2009-11-06T08:22:00.000-08:00

“In the middle of every difficulty lies opportunity.” - Albert Einstein

For many companies and individuals 2009 has been a difficult year. In anticipation of this I started the years out with the message of “Finish Strong!” from the book with the same title by Dan Green and published by Simple Truths.

The difference in success or failure is not chance, but choice. When adversity strikes, it’s not what happens that will determine your destiny; it’s how you react to what happens. That’s what Finish Strong is all about. With just a few weeks left in the year, please take some time to re-read your Finish Strong book, and once again resolve to “Finish Strong!”

With the resolve to Finish Strong, and to enhance my existing Delta4 advisory services and skill base, I will be making a substantial investment in highly specialized training. The program involves a very intensive program that includes:

A feature presentation by Steve Wilkinghoff renowned author of “Found Money – Simple Strategies to Uncover the Hidden Profit and Cash Flow in Your Business”

Enhancing outsourced CFO services – going beyond the basics
10 Stage Business Improvement Program for economically challenging times
Creating recession proof strategies
Business succession planning
Using social networking tools for business
Working with an association with a global network of CPAs and CAs dedicated to playing an increasingly important role as an advisor to small and medium size businesses to guide them through the process of making strategic business decisions

I am making this investment because as a Delta4 business advisor, my role is not just a tax preparer. But, my role is primary business advisor to help you achieve your vision of success.

If you are aware of any other business owners who could also benefit from looking at their business information in a whole new way and resolving to Finish Strong, please give consideration to referring them to me.

If you have any question regarding this program, please feel free to call me. I consider it a pleasure and a privilege to serve you. I appreciate your cooperation. I look forward to talking with you and exploring all the possibilities with you when I return.

In the mean time, take the time to consider the strengths your business has to get through these times.

BONUS FOR MY BUSINESS PLUS CUSTOMERS – Watch your mail box! In a couple of weeks you should receive valuable tools to help you “Finish Strong!”

Give Your Best

2009-11-02T11:57:00.001-08:00

" Nobody who ever gave his best regretted it!"

George Halas

Does your business give its best everyday? Does your business have a strategy in place to continue to give your best and to make your best even better? Are your team members motivated to give their best?

As a business owner, you have the opportunity to work with CPAs who are a members of the Principa Alliance. These CPAs are specially trained and have tools and resources to help you develop a business strategy that you won't regret. And, the offer solutions such as The Team Advisory Board and Towards Awesome Service to get your team motivated to do their best.

TEAM ADVISORY BOARD

Every day your team members are on the front line of customer service. Do your customers experience positive, motivated people who are empowered to help them get what they need, or are they meeting roadblocks at every turn?
If you're thinking of ways to build your business's success, it makes sense to start where the action is—by asking your team!
The Team Advisory Board workshop is a facilitated interactive session designed to help you tap in to your team's collective experience and get a sense of how they feel they can make a contribution, and where they see opportunities for improving your business.
Getting your team's feedback and buy-in is as important getting the same thing from your customers. After all, it's your team who deliver on your business promise to your customers every day. It’s important for your team to be as committed to your business’s success as you are.
By providing a forum for your team to express their thoughts and ideas, you're creating a work environment that gives them a say—and a stake—in your business's success.
The Team Advisory Board guides your team through key areas of your business, such as:

How they see the business, and their place in it.
How your team interacts with your customers, and ideas for how to serve them better.
The business's current systems and process—do they work? And how can they be improved?
How your business can and does differentiate itself from your competition.
Your business’s structure—what level of decision making powers do your team members have?

Used in conjunction with the results from a session like the Customer Advisory Board, your team will be committed—and accountable—like never before to deliver a standard of service that will truly delight your customers.
A team that works well together is a fantastic asset for any business, and your customers will really notice the difference.
The Team Advisory Board will help you create an environment that's positive and productive—for you, your team, and your customers.

TOWARDS AWESOME SERVICE

Just some of the ideas and concepts you'll take away from the Towards Awesome Service workshop:

Create a business your customers love coming back to!
Create a business your team love to be a part of every day.
Dramatically increase your customer retention, your team's performance, AND your profits.
Learn how to move beyond 'customer satisfaction' and into the realms of 'customer delight'.

So if you're ready to take your business to the next level of customer experience—into the realms of delight—then Towards Awesome Service is quite simply a MUST attend workshop.
There's no doubt that businesses that distinguish themselves through service excellence also distinguish themselves with far higher levels of sales and profits.
Towards Awesome Service aims to help you create this distinction in your business so it's more profitable, and more enjoyable—for you, your team, and most importantly, for your customers!
Towards Awesome Service is a facilitated training session that uses a case study approach to teach a unique combination of customer service and business development strategies. Strategies you can apply immediately to achieve real and measurable results for your business.
You'll learn how to easily deliver service that's thoroughly AWESOME!, enhancing the experience your customers have when they do business with you.
So, not only will they be coming back for more—they'll even be referring people to you!At Towards Awesome Service, you'll learn how to generate countless ideas that will make your business really stand out, so it not only becomes more productive and profitable, it becomes a more valuable asset for you!

Brenda Richter, CPA is a member of the Principa Alliance, and is available to provide these and other business advisory services designed to help you to create a business that gives its best.

Have no regrets when it comes to your business.

Free Cup of Coffee

2009-07-31T09:58:00.000-07:00

Brenda Richter, CPA is currently offering a free cup of coffee to Santa Barbara area business owners.

Click here for details.

Entrepreneurs Will Lead The Way

2009-07-29T13:37:00.000-07:00

In a recent commercial, American Express asserts that it is the small business entrepreneurs that will be the powerful force in our economy that will spark the changes needed for a positive turn around. It is these entrepreneurs that will lead the way.

And, American Express offers to help. American Express knows that the entrepreneurs can’t go it alone. They need help from their financial institutions (credit cards and banks), from their team members, from their vendors, and from their outside advisors. CPAs who are members of the Principa Alliance, have positioned themselves to be advisors to the entrepreneurs that are ready to lead the way. These CPAs do more than just “keep the score” and file a tax return. They work with businesses to identify areas that are not realizing their full potential and help improve the business to build a more rewarding, more enjoyable and more profitable businesses. To build a business that leads the way.

Brenda Richter, CPA is a member of the Principa Alliance.

To learn more about Principa CPAs, visit: Principa.biz

To watch the American Express commercial, visit: You Tube

On A Mission To Stay In Business

2009-07-28T09:29:00.000-07:00

Experience shows that companies with a clear and ever-present mission statement surpass their competition and last in the marketplace. Mission statements define, preserve and strengthen a company’s unique competitive advantages.

You want to create a statement that you and your team can look to every day and ask “Am I fulfilling the company’s mission?” For example, one mission statement could be “to be the leading game software developer for teens.” A more actionable mission statement would be “Surpass XYZ games developer in sales, customer experience and speed to market.” The second mission statement has clear goals and direction, while the more abstract version would be more appropriate for a vision statement than a mission statement. The second statement clearly supports the vision statement.

A mission statement has several defining and distinguishing characteristics:

It motivates your team
It translates into what your employees do every day
It states a goal that can be measured and identified easily
It reflects and is rooted in the competitive environment in which your company functions

A Principa CPA has the tools to help you create, build, modify, refine or enhance your vision and mission statements with en emphasis towards Sstaying in business".

Brenda Richter, CPA is a member of the Principa Alliance of CPAs.

CHOICES

2009-07-22T16:52:00.000-07:00

You are always one choice away from

changing your business and changing your life.

Adaptive Capacity

2009-07-19T15:08:00.000-07:00

Every business can be thought of as a plane such as the Boeing 777. When an airline adds a new plane to their fleet, they add capacity. The airlines then go one step further by dividing that marginal capacity into 5 segments. First Class, Business Class, Full-fare Coach, Coach & Discount/Priceline. Other businesses that work with similar adaptive capacity models include hotels, golf courses, movie theaters, and car rentals. Your CPA should also have an adaptive capacity model in his/her business. So the next time you are working with your CPA, think about your budget and what level of service you want from your CPA. Ask yourself the questions associated with these pictures.

Where do you want to sit on your CPA's plane?

Or, would you prefer a private jet?

Business Retreat

2009-06-25T09:25:00.000-07:00

My current project is coordinating a Sole Proprietors Retreat for CPAs and other professional service providers.

Many larger hold their own internal retreats where they focus on the key issues within their business and plan for the next year. Sole proprietors and two partner firms tend not to this. That is why I am offering this unique opportunity.

Something for the small business owner to think about - Does your CPA firm participate in an annual retreat?

CPA firms that participate in annual retreats care about their business. If your CPA cares about his/her business this reflects the type of attention they will give to your business as well.

If your CPA is a sole practitioner or two partner firm, encourage them to give consideration to attend the Sole Practitioners Retreat.

For more information about the retreat, visit: Sole Practitioners Retreat

Have You Built a Business or Created a Job?

2009-06-22T06:19:00.000-07:00

Many small business owners fall into the trap of building a business so entirely dependent on them it would not survive if they were unable to work. They have not built a business rather, they’ve created themselves a job.

Think about it.

What’s the sole purpose of a business?
More importantly, what is the purpose of YOUR business?

It’s to give you more life. That’s the only thing most of us want from our businesses—more life!
And unless your business is built to do that, it will consume your life.

Look at the majority of small business owners. They toil seven days a week, many times 12-14 or more hours a day. Doing it, doing, it doing it. Hoping one day to finally see a light at the end of the tunnel. Most business owners are actually enslaved by their businesses. They’re anything but free. It’s little wonder the majority of small businesses fail. And those that do survive fail to reach their true potential.

Here are five ways you can determine if you have built a business or created a job.

If you fell ill and could not work for a period of time, the business and the people who work in the business could carry on with minimal interruption.
The business can be sold and will run successfully without you in it.
You have a clear picture in your mind of what the business will look like and how it will act when it is finally done. You’ve shared that vision with your employees.
You have a 3-5 year plan and are working on implementing your marketing, product, and financial strategies.
You are able to take extended vacations and can decide not to come into the office on the spur of the moment with no negative impact on business performance.

A Principa CPA can help you build a business that works without you. Brenda Richter, CPA is a member of the Principa Alliance.

Contact a Principa CPA, and ask us how to get started today.

Progressive

2009-06-11T13:18:00.000-07:00

In one of the more recent Progressive Insurance commercials sales person Flo touts the newest feature available from Progressive - Name Your Price (SM). It's simple. You tell Progressive what you want to pay for insurance, and they build a policy around your budget.

What a GREAT concept.

Shouldn't your CPA be able to do the same thing for you?

I think so.

Completing the Networking Cycle

2009-06-08T12:02:00.000-07:00

After you attend a networking event and pass out dozens of business cards, someone is bound to call. Are you ready for that call?

Peter Drucker once said:

“Marketing is not only much broader than selling; it is not a specialized
activity at all. It encompasses the entire business. It is the whole business
seen from the point of view of the final result, that is, from the customer's
point of view. Concern and responsibility for marketing must therefore permeate
all areas of the enterprise.”

In other words, marketing is everything a business does in order to acquire and retain a customer.

Marketing is part of corporate culture, and as such needs to be addressed in every activity the business carries out.

This means developing performance standards for the day-to-day activities of the business.

For example, every day we talk with each other on the phone.

Every one of us recognizes that each contact represents a tremendous opportunity for us to do an unbelievable job of providing our customers with fantastic customer service.

When we do that consistently, we become known as an organization that’s “switched on” and one that’s great to deal with. Clearly, that helps our image enormously.

The Phone Right program is a combination of live and DVD based training that is specially designed to give businesses ideas and performance standards for dealing with people on the phone. The program makes sure you are ready for the calls that are likely to result from networking activities.

A Principa CPA can lead the Phone Right program for your business.

Brenda Richter, CPA is a member of the Principa Alliance.

REMEMBER ME?

2009-06-03T09:42:00.000-07:00

Remember me?
I’m the person who calls you and holds on forever while you eventually decide to answer the
phone.
I’m the person who waits patiently for you to arrive when you’re late for our meeting.
I’m the person who doesn’t complain when the promised information never arrives.

Many would say I’m a very nice person.

But that’s not all I am ...
I’m also the person who never comes back to your business.
And I’m the person who laughs out loud when you spend hundreds of dollars every year
trying to win my business when you had it in the first place.

Has this ever happened to you? Could it have happened to your customers?

A Principa CPA can help you develop a customer service strategy that make sure it does not.

Brenda Richter, CPA is a member of the Principa Alliance.

Jesusita Fire

2009-05-10T10:08:00.000-07:00

Thank you to all the firefighters who have battled the Jesusita Fire this week, and to those who are contining the fight.

A special thank you goes out to the team who put a stop to the fire at Stevens Park.

Lastly, a thank you to Ethan who created and monitored the best fire information map. It was great to have such a resource while in Burbank on evacuation.

Sincerely,

Brenda Richter, CPA

Develop Your Hedgehog

2009-02-23T14:49:00.000-08:00

Good to Great by Jim Collins is one of my favorite business books.

However, whenever I bring up the Good to Great concepts with my small business customers I am often met with a lot of resistance. The major objection is that they are a small business, and the companies cited in Good to Great are all big companies. Well, the fact of the matter is that the concepts in Good to Great are universal concepts that apply to any organization no matter what size it is.

Take for instance, Trinity College. Trinity College is a small college of just over 2,200 students located in Hartford, Connecticut. Given their location, they would of course be in direct competition with Ivy League schools. Yet they didn’t let size stop them. They applied the Hedgehog concept from chapter five. They asked the three simple questions:

What are we passionate about?

What can we be the best in the world at?

What drives our operational engine?

And they succeeded.

Congratulations to Trinity College Men’s Squash Team for achieving a 202 game winning streak. The longest active winning streak in any intercollegiate varsity sport. And, congratulations on their 11th straight national title. Trinity won the title on Sunday with a 5-4 victory over Princeton.

Read more about Trinity College and their amazing record at: http://www.trincoll.edu/

So what’s your “hedgehog”? Get started with The Hedgehog Concept by working in the Hedgehog Laboratory at: http://www.jimcollins.com/

If you need additional help with your hedgehog and the related budgets and strategy, consider working with a Principa CPA. These CPAs are a global consortium of consulting CPAs who are dedicated to working with small businesses. Business owners that work with Principa CPAs have access to tools and resources to help them grow their business, gain a better understanding of their business, develop greater management control, increase profitability, and, perhaps, most important – achieve peace of mind when it comes to their business. Learn more about Principa CPAs at: http://www.principa.biz/

Brenda Richter, CPA is a member of the Principa Alliance.

HAPPY THANKSGIVING

2008-11-26T13:13:00.000-08:00

Happy Thanksgiving!

Ronald Reagan once said, “There are no great limits to growth because there are no limits to human intelligence, imagination and wonder.”

As we continue to experience times of financial uncertainty, this Thanksgiving in addition to being thankful for friends, family and good health, we can be thankful for our intelligence, imagination and wonder. For these are the things that will bring our businesses growth and prosperity during the next year.

Keeping Strong

2008-11-24T14:04:00.000-08:00

The last few months have certainly been certainly been volatile financial times, leaving business owners and managers with a heightened sense of uncertainty.

This does not have to be bad news. Uncertain economic times create opportunities.

Traditionally recessions are times when the weak get sorted out and the complacent get pushed aside. They are therefore times of great opportunity for companies that see and seek the opportunity to break away and experience unprecedented growth. When times are good, virtually anybody can make a profit. But, in tough times true strengths and weaknesses are revealed.

Strong companies will continue to do what strong companies have always done. They will stick to their mission and vision.

In order to be strong, stick to my mission and vision, and to enhance my existing Delta4 advisory services and skill base, I recently attended the Principa Alliance Annual 2020 Conference. The conference was great, and provided me with new tools to help my customers in the uncertain financial times ahead. My firm is stronger as a result of attending the conference.

Strong companies continually ask themselves these crucial burning questions about their business:

How can I offer better service than anyone else?
How do I build better systems & controls?
How can I make my team more productive?
How can I compete on something other than price?
How can I make my business stand out?
How can I keep track of everything without burning out?
How can I improve my profits, my lifestyle and realize the value of my business as an asset?

A Principa CPA can help you identify the answers to those questions.

Who's In Your Pool?

2008-08-27T17:39:00.000-07:00

The Olympics ended on Sunday. It’s nice to get back to a full night’s sleep. The one event from this Olympics that will most likely be talked about for years to come is Michael Phelps’ eight gold medals. Phelps now holds the record for the most gold medals won at a single Olympics, and in doing so broke seven world records. Phelps is now among one of the most decorated Olympic athletes of all time.

How did Phelps do this? Well, first of all he got the right people “on the bus”, or in his case “in the pool”. First he had mom. She recognized something special in her son, and she recognized the need for him to have a venue to channel his energy and develop focusing skills. She took him to swimming lessons, and had him join a swim club. There, Phelps met up with two types of coaches. The first taught him how to swim. They provided him with technical know how. The second group of coaches saw Phelps’ natural talent. They taught him how to win. They helped provide him with goals and a plan and a strategy to reach those goals. The final group of people in the pool were Phelps’ team mates who helped him win two gold medals in the relays. With preparation in place, Phelps had created a goal worth believing in and a plan to achieve it. He was able to inspire his team mates to swim beyond themselves and achieve what some had said would be impossible.

Jim Collins author of Good to Great found that companies that achieved greatness first got the right people “on the bus”. (see chapter 3) Your business already has some people “on your bus” or as with Phelps “in your pool”. Your business has a “mom”. That would be you. The one person who recognizes what’s special about your business and what it can become. Your business has the first type of coaches. They were the ones who helped you in the past as teachers to teach you your technical skills. Currently, your business has an attorney to help you’re the legal technical issues of being in business. And, your CPA help you other technical matter by preparing your tax returns. However, who’s in your pool helping you set your goals and design a strategy to achieve those goals? Who’s helping you create a vision that your team members can believe in? Who’s giving you the support you need to inspire your team to achieve what some would say is impossible?

A CPA who is a member of the Principa Alliance can be the coach that helps provide your business with goals and a strategy to achieve them. In addition, these CPAs have the financial knowledge to assist with establishing the budget that aligns with those goals. They also work with you and your team to provide systems to measure and monitor your progress.

Brenda Richter, CPA is a member of the Principa Alliance.

Write It Down

2008-08-24T08:28:00.001-07:00

Congratulations to Team USA in winning the Olympic gold medal in women's basketball.

Congratulations to Lisa Leslie for her record fourth Olympic gold medal in women's basketball.

In a post game interview, Ms. Leslie said:

"I always say to all those kids out there, Just write down your goals. You
can do what ever you want to achieve."

The same is true for business. Studies have shown that those with clear, written goals, accomplish far more in a shorter period of time than those wothout them could ever imagine.

So, write down your goals.

A business needs more than just goal alone. Businesses need a strategy for achieving their goals and a process for measuring and monitoring their progress. Business owners can get a jump start on defining their goals, creating a strategy and establishing a monitoring system by holding a strategic planning session with a Principa CPA.

Brenda Richter, CPA is a member of the Principa Alliance.

2008-08-16T23:28:00.000-07:00

Congratulations Michael Phelps.

DID YOU BRING YOUR "A" GAME TODAY?

2008-08-10T14:22:00.000-07:00

Friday marked the start of the 29th modern Olympic Games with a spectacular opening ceremony in Beijing. No doubt that over the next couple of weeks blogs around the world will reference the events, stories, victories and defeats of these games. Since I am an avid fan of the Olympics, my blog site will be no different.

One of the first events I sat down to watch was Men’s Beach Volleyball. Gold medal favorites Rogers/Dalhausser of Team USA were matched against bottom seeds Samoilovs/Plavins of Latvia. I would be cheering Team USA on to certain victory. Yet within in the first few points of the first game, I found myself drawn to rooting for the Latvians. There was something about the look in their eyes and the way they played together. And, as the game went on, there was the look on the face of the Latvian coach. Clearly he was satisfied that his team was playing the strategy that they spent countless hours practicing at the Baltic Sea. After two sets, my choice to root for the Latvians proved a good choice as the Latvians advanced from first round play undefeated. The game analysts described the Latvian victory as the biggest upset in Beach Volleyball history.

With results final, Team USA was interviewed as to the reasons for their unexpected loss. Rogers responded by saying that the team played its “D” game when their “B” game was all that was needed. Why would one ever consider bringing their “B” game as suggested by Rogers? Team USA had become complacent. They failed to develop a winning strategy. They failed to develop an attitude to bring their “A” game everyday no matter what the circumstance.

Jim Collins author of Good to Great sums up this with the Phrase: “Good is the enemy of great.” In other words, businesses become satisfied with being good that do not strive to go to the next level and achieve greatness. Does your business have a strategy (“A” game) to succeed? Do you and your team members show up everyday ready to play your “A” game?

Collins’ Good to Great found that businesses that ignited the transformation from “good to great” first got the right people “on the bus”. (see chapter 3) Small businesses find that once they get their team on the bus, that there are still several empty seats. One seat that can often get neglected by small businesses is the CFO. Usually these businesses are too small to require a full time CFO. Such companies now tap into the skills of top accounting and finance professionals through outsourcing arrangements.

A CPA who is a member of the Principa Alliance can help you with outsourced CFO services. In addition, such a CPA can assist you in developing your strategic plan (“A” game) and the fusion of strategy, operations and budgets. Principa CPAs also have a program (Towards Awesome Service) designed to inspire your team to come to work everyday with their “A” game.

Brenda Richter, CPA is a member of the Principa Alliance.

When Was Your Last HSD?

2008-08-02T13:36:00.000-07:00

An HSD is a High Satisfaction Day. In business, HSDs are the days when mission, vision and strategy come together. They are the days when business owners and/or team members are high fiving with a sense of accomplishment. They are the days you say to yourself, “This is why I do what I do.”

Things that trigger an HSD include signing up a new customer, the creation of a new innovative product or service, the completion of a major project, or receiving a heartfelt thank-you from a customer. Michelle Golden shares an example of the latter in a recent blog.

My friend, Ron Baker, was introduced to HSDs by the New Level Group in Napa, California. Ron writes about HSDs in his book Measure What Matters, and suggests that companies should log their HSDs on a community calendar. This makes perfect sense, since as the title of the book suggests, we should measure what matters. And don’t HSDs matter?

If you or a business you know would like assistance in creating a strategy and the related budget that will help you and your team achieve more HSDs please contact a Principa CPA.

If you have an HSD that you would like to share with others, please do so by adding a comment to this post.

In Memorial

2008-07-25T10:51:00.000-07:00

Thoughts and prayers are with the Pausch family today.

Randy Pausch, subject of a previous post, passed away today. His Last Lecture video and book can be an inspiration to us all.

You Are What You Read

2008-07-24T16:54:00.000-07:00

How many a man has dated a new era in his life from the reading of a
book.
Henry David Thoreau

You are what you read. Who is your CPA? Find out what they’re reading by visiting their Shelfari site. Shelfari is an internet resource that allows participants to share, discuss, rate, tag and organize books on their own virtual bookshelf.

See the link to the right to visit my Shelfari site.

DOING BUSINESS IN UNCERTAIN TIMES

2008-07-17T18:35:00.000-07:00

News reports currently suggest a broad range of terminology to describe current economic conditions. We hear that there is a simple slow down with expectations of recovery before the end of the year to a full blown recession bordering in depression lasting as long a five years. No matter what your beliefs, one thing is for sure, we are experiencing an economy that includes an enhanced feeling of financial uncertainty that is having an impact on business and consumer activity.

This does not have to be bad news. Uncertain economic times create opportunities.

Traditionally recessions are times when the weak get sorted out and the complacent get pushed aside. They are therefore times of great opportunity for companies that see and seek the opportunity to break away and experience unprecedented growth. When times are good, virtually anybody can make a profit. But, in tough times true strengths and weaknesses are revealed.

Strong companies will continue to do what strong companies have always done. They will stick to their mission and vision. They create a strategic plan and related budget. They focus on their core values, customer service and they run their business for continual improvement and innovation.

If your business needs assistance with being a strong company during our current economic times, call a Principa CPA so that you can start a focused discussion.

Are You Working With A World Class CPA?

2008-06-26T12:02:00.000-07:00

Recently Michael Gerber, author of The E-Myth, held a teleconference for CPAs titled “Learn the Secrets of Creating a World Class Accounting Firm”.

At one point in the teleconference Gerber describes what business owners want from their CPAs. He sums it up in one word – RELIEF. Gerber says that clients want their CPAs to provide relief from:

The unknowns of operating a business
The frustrations of day-to-day business activities
Mis-understandings relating to arcane financial reports
The billable hour

Are you a business owner looking for relief? Working with a CPA, like Brenda Richter, who is a member of the Principa Alliance will provide you with relief. Principa CPAs do the following:

Reduce your concerns about the unknowns in your business by helping you create a strategic plan complete with alternate courses of action for different scenarios
Minimize your frustrations with your business by assisting with the creation and documentation of your business systems and related KPIs
Present you with your financial information in an easy to understand format with full color graphs and plain English commentary
Provide you with a fixed price agreement with every project

So, the question is: “How do you spell relief?”

Listen to a snippet of Michael Gerber’s teleconference.

Are We Buying & Selling "Time"?

2008-06-22T09:50:00.000-07:00

What’s Time Really Worth?

Jamey Johnson’s song The Dollar (lyrics video) can give us pause to ask some hard questions:

1) Why do professionals charge by the hour?
2) Why do their clients pay by the hour?
3) How much is our “time” really worth?

Peter Not So Perfect

2008-05-25T10:25:00.000-07:00

Recently a new show launched on the Style network – Peter Perfect.

Peter Perfect features stylist Peter Ishkhans as a business make over guru. In 3 days, he “helps a business go from sluggish to spectacular”. He does this by remodeling the shop and giving new hair cuts to the business owners and associates. In between Peter’s rants, the general fluff of the show and the somewhat phony drama, a small business can pick up some valuable lessons.

With just 4 episodes aired so far, the Peter Perfect message board is wrought with small businesses requesting a “me too” help for their business. This reflects a genuine need among small businesses to work with an outside advisor to provide assistance in working through the day-to-day activities as well as going to the next level.

What the show fails to demonstrate is that there is more to running a successful business than a new hair style. Even with a good hair cut, you can still have a bad hair day. Successful businesses have a solid set of core values and a well thought out and written strategic plan that includes a back up plan for bad hair days. They have systems in place to help them achieve their goals, and they measure and monitor their progress on an on going basis.

Apparently, the businesses asking for help through a TV show message board are unaware of where to turn in their business community. If your business is in need of an outside advisor to actively work with you to achieve your business goals, then look for a CPA in your area who is a member of the Principa Alliance. These CPAs are a global consortium of consulting CPAs who are dedicated to working with small businesses. Business owners that work with Principa CPAs have access to tools and resources to help them grow their business, gain a better understanding of their business, develop greater management control, increase profitability, and, perhaps, most important – achieve peace of mind when it comes to their business. Learn more about Principa CPAs at: The Principa Alliance

Brenda Richter, CPA is a member of the Principa Alliance.

Achieving Your Dreams

2008-05-06T07:20:00.000-07:00

If you haven't received a link and taken the time to watch Randy Pausch's "Last Lecture", please give consideration to taking the time to watch it now. The lecture lasts about 76 minutes.

This lecture is the perfect inspiration for taking the time to evaluate your current business goals, and ask your self: "What do I want from my business?"

If you need assistance aligning your personal goals with your business strategies, contact your local Principa CPA to arrange for an all day planning session.

Have You Met WOFIE?

2008-05-01T11:41:00.000-07:00

Have You Met WOFIE?

WOFIE
Watching Out For Ideas of Excellence

WOFIE is the fictional character used by my firm to present business ideas and wisdom to my business customers.

WOFIE is not a canned news letter. Rather, random emails arrive with great ideas as they happen.

To date, my customers have received information on the following topics:

The Power of a Guarantee plus a 4 page white paper on the subject
Marketing with blogs
Author Keith McFarland featured at a local luncheon
Introduction to KPIs

Currently the “WOFIE Pack” is participating in a virtual jelly bean guess.

Contact your local Principa CPA, and ask to receive ideas of excellence for your business.

More on Guarantees

2008-04-29T09:38:00.000-07:00

In my last post, I wrote about the power of creating guarantees for your business.

Thank you to Dr. Joe Hwang for his comments and excellent question.

Dr. Joe, a dentists, was wondering how professionals who must operate under the restrictions of a governing body can offer guarantees.

As a CPA, I too have restrictions on the guarantees that I can offer. For example, CPAs cannot not guarantee a tax refund when they prepare a tax return. Nor can CPAs guarantees that a business will receive a bank loan as a result of financial statements that they prepare. However, CPAs can provide service guarantees. They can guarantee that phone calls and emails will be responded to within one business day. They can guarantee that work will be completed within a certain time frame. And, they can guarantee up front pricing.

Professionals can create strong guarantees by looking at a combination of their unique value proposition and the key frustrations of their customers.

Professionals who are still uncomfortable with using guarantees can implement something similar through the use of service commitments, performance standards or a customer’s bill of rights.

The VeraSage Institute recommends The Consultant Customer’s Bill of Rights.

Other professionals offering guarantees in some form include:
Biggs Kofferd, CPAs

Fitchitt & Benedict, CPAs

Michael Anderson & Company, CPAs & Business Advisors

RFCO Services, LLC

Contact your local Principa CPA for tools on preparing your unique value proposition and developing the appropriate guarantee for your business.

THE HEDGEHOG CONCEPT

2008-04-16T14:17:00.000-07:00

Chapter 5 of Jim Collins’ Good to Great introduces the Hedgehog Concept.

Put simply, the Good to Great companies had developed a deep understanding about the intersection of the following 3 circles within their organization.

What you can be the best at?
What drives your economic engine?
What are you deeply passionate about?

Once a business has their Hedgehog Concept in place, they can plan a strategy and a set of systems all around achieving that goal. One of the strategies a business will want to consider is a guarantee.

In 1993, Christopher Hart wrote a book called Extraordinary Guarantees. In the book he outlines the extraordinary power that guarantees have to help businesses build market share. The book details his research into guarantees and their power to also create extraordinary organizations.

Guarantees give your customers a reason to believe your stated benefits. Customers respond well when a business is willing to stand behind its product or service. Consider this additional fundamental point – Whenever a customer makes a purchase, they take a risk as to whether or not the product or service will meet their needs. When you think about it logically, then the fact that they’re taking a risk can hamper the decision making process. A proper guarantee can reduce or remove the risk.

Consider this guarantee from the Valorem Law Group of Chicago:

“If you’re interested in seeing whether we are right for you and your team, try
us on a manner. What separates us from our competitors is that you have
our value promise on every invoice. If you don’t think we’re worth the
amount you agreed to pay, you make whatever adjustment you think is
necessary. If your other firms don’t walk that talk, it’s time to try
Valorem.”

Business Performance Measures

2008-04-13T16:37:00.000-07:00

Our current system of accounting and financial reporting is based on a model created by an Italian monk over 500 years ago, and the modernized version was created over 100 years ago during the industrial revolution. These financial reports are lagging indicators of how the business is doing, and put an emphasis on cost of goods sold, return on assets, and other historical cost measures. This type of reporting often leads business owners and mangers to focus on the wrong aspects of the business.

Business Performance Measures represent the evolution of the accounting process to create meaningful and predictive measures for today’s modern business structures that tend to rely on human capital rather than hard assets and inventory.

Business owners and managers that incorporate performance measures into their business create organizations that are aligned for achievement. They have a set of Key Performance Indicators that are a collection of financial and non-financial measure that measure results against stated goals. And, they have a set of Key Predictive Indicators that are a collection of financial and non-financial measures that provide information regarding where the business is headed.

Last week, the Santa Barbara Chapter of the Institute of Management Accountants invited C.S. “Bud” Kulesza to speak at their monthly meeting. Mr. Kulesza is recognized across the country as an expert on Business Performance Measures. He provided information on the successful criteria for performance measures, proper goal setting techniques and different types of performance measure reports including benchmarking and the Balanced Scorecard.

I was the only CPA in public accounting in attendance.

Hmmmmmm…

When your CPA has the opportunity to learn more about leading edge accounting models – where is he/she? At the event, or back at the office working on the past?

Walk the Talk

2008-04-03T09:46:00.000-07:00

Earlier this week, a fellow CPA sent me and several of our colleagues a link to a Simple Truths video. Since I am an avid fan of Simple Truths, I was interested to see which link he sent. He sent Walk the Talk.

Two of the statements from the video struck me.

Integrity –
Choose rightness over ease and convenience.

I immediately thought about how CPAs bill their customers.

I wonder, where is the integrity in hourly billing. Is it really “right” to take a customer’s information, rack up some hours, and send out a bill. In this scenario, the customer has no say as to the price until after the fact.

Would it not be more “right” to provide customers with up front pricing and payment terms regarding the services to be rendered?

Courage –
Follow your conscience instead of “following the crowd”.

Currently in the CPA industry, “the crowd” is billing by the hour. Yet, there are CPAs and Chartered Accountants around the world who are following their conscience and providing up front pricing.

Ask your CPA about their core values. Are they “just words”, or does your CPA “Walk the Talk”?

Is Your CPA Right for Your Bus?

2008-03-24T14:48:00.000-07:00

First Who…Then What
That is the title of Chapter 3 of Good to Great by Jim Collins. The main point of this chapter is not just about assembling the right team—that’s nothing new. The main point is to first get the right people on the bus (and the wrong people off the bus) before you figure out where to drive it. The second key point is the degree of sheer rigor needed with regard to people decisions in order to take a company from good to great.

The problem for small businesses is that when they look at their bus, there are still many empty seats. In order to fill all the seats, as a small business owner, this means that you must expand your concept of “The Bus” to include not just your Team but also your professional advisors and service providers such as their CPA, lawyer and IT consultant.

Core Competencies
When you think of your CPA as one of the “right” people to be on your bus, what core competencies would you like him/her to bring along? For each business, the answer will be a different combination of skills. However, most will include such things as tax knowledge, GAAP knowledge, financial savvy, and the like.

When you invite your CPA to be on your bus, be sure to ask about their core competencies and how they will meet your needs. Verify their core competencies by asking about the systems they have in place to control, improve and enhance their core competencies. Also, ask them what KPIs they use to measure the effectiveness of their core competencies.

The Disconnect
Recently, I was having a conversation with my friend Catherine. Catherine works at a local CPA firm in Seattle. Her firm started a “Good to Great” journey about a year ago. At first Catherine was quite excited. Each team member received their own copy of Jim Collins’ book Good to Great. Leadership roles in the firm were reassigned. And even though it was difficult, the firm took steps to get the wrong people off the bus. A committee was formed to discover and articulate the firm’s core values and the annual performance review form was redesigned to match those values.

However, Catherine has started to notice a disconnect between the firms stated core values and desire to add value to their customer’s businesses and lives and the systems the firm has in place for managing the day-to-day activities.

Catherine sent me the following interoffice memo that was sent to every team member of her firm:

Weekly Time Summary Report to be delivered starting Monday,
3/17

As another step along our journey from Good to Great, all team members and mentors will receive, via an automated email, a weekly Time Summary with both
summarized billable stats, including budgeted, and a detailed listing of non-billable time. It is my hope that by providing this information regularly, each team member can better monitor their progress toward their budget and in turn, toward the firm’s goals.
A couple things to keep in mind regarding this report: It will only report on time entered and/or released, so while we are required to enter time daily anyway, please make double-certain that your time is in by the end of the week. Also, when entering non-billable time, if you don’t enter a description, the report will ‘red-line’ the time entry with a reference of “Description Required for NonChargeable Time “, so please make sure to include references when entering non-billable time.
I expect that this report will lead to questions about time entry standards, especially with respect to non-billable time. After tax season, I expect to hold sessions for mentors and all team members aimed at consistency among time-keepers. In the meantime, continue to refer to the ‘XYZ Non-Chargeable Codes’ memo from the billing clerk, and forward time-keeping questions directly to me, as it will help me compile a list I make sure to address.
As a final comment, I hope this doesn’t seem like a ‘big brother’ thing. This information has always been available, and I believe that making it more visible and regular will help the ‘disciplined people’, ‘disciplined thought’, and ‘disciplined action’ of the Good to Great journey be just that much easier to implement.

Catherine feels that the onerous time keeping system and hourly billing techniques used by the firm distracts team members from the firm’s core values and provides no value to the customer.

I couldn’t agree more with Catherine. A firm this focused on time keeping can only bring one core competency to the table, and that is the ability to track every activity in their lives in six minute intervals.

So ask yourself: “Is the inordinate amount of resources that your CPA is putting into time based billing really making them the “right” person for your bus?”

Business Boot Camp

2008-01-22T16:28:00.000-08:00

Every so often something NEW comes along.

Of course, it’s even better when that something new also happens
to be something that adds terrific value to your business.

With those two things in mind (new and adding value) I would like to tell you more about the Business Boot Camp™.

It is exactly the sort of program small business owners have been asking for.

Research from last year’s Good to Great event indicates that business owners want to be educated about the following:
Understand their business
Understand their financials
Understand problems and solutions
Enhance business ownership skills

In addition, business owners also mentioned that they enjoyed the opportunity to meet with other business owners to talk and learn about business processes.

The Business Boot Camp™ is an opportunity for small business owners to come together and develop their CEO skills, and in turn create extraordinary businesses and extraordinary lives.

Business Boot Camp™ groups are now forming.

If you would like to learn more about the Business Boot Camp™, please attend one of the following complementary meetings:

Friday February 1, 2008
5:30 pm – 8:00 pm (includes light dinner)
Location: 801 Garden Street, Santa Barbara

Also, if you know any other business owners who might be interested, please invite them to join you. If you would like, I can send this information to them.

RSVP to: Brenda Richter, CPA
Brenda@BrendaRichterCPA.com

If you are unable to attend either of these meetings, and would like more information, please contact me and arrange for a separate meeting.

I look forward to meeting with you. Please let me know if you have any questions.

Development of The Arc of Greatness

2007-11-02T10:29:00.000-07:00

Earlier this year I was the event coordinator for an extraordinary business seminar that took place on September 17, 2007, in Santa Barbara.

Legendary business documentary film maker, Sam Tyler, gave the presentation combining clips from 20 years of film making with what he’s learned along the way.

Sam’s first film was based on Tom Peter’s In Search of Excellence. His most recent completed film, Good to Great based on the book by Jim Collins, began airing on public television in January 2007.

At this point in his career, Sam has decided to move out from behind the camera. His thought was that he would present his Good to Great film to the management team or entire team of a single company and follow the filming with a group discussion on how that company could apply the Good to Great concepts to their company.

Then I came along with another idea – that businesses shouldn’t limit their potential for greatness because of their size. Or as Jim Collins so aptly put it, “Big does not equal great, and great does not equal big.”

When I sat down with Sam to discuss the possibility of having him do his Good to Great presentation for a group of small business owners and their service providers, I indicated that the emphasis of the event was going to be “Who’s on Your Bus?”.

First Who…Then What
That is the title of Chapter 3 of Good to Great. The main point of this chapter is not just about assembling the right team—that’s nothing new. The main point is to first get the right people on the bus (and the wrong people off the bus) before you figure out where to drive it. The second key point is the degree of sheer rigor needed with regard to people decisions in order to take a company from good to great.

The problem for small businesses is that when they look at their bus, there are still many empty seats. In order to fill all the seats, a small business must expand its concept of “The Bus” to include not just their Team but also their professional advisors and service providers.

The second request I made of Sam is that when he discussed the concepts after showing the movie that he frame the discussion and commentary towards small business. As we discussed this approach, Sam’s eyes started to light up. He realized that some of his previous work would do a better job of explaining Good to Great to small businesses. He suggested that rather than watch Good to Great in its entirety, he could discuss a concept and follow it up with a small business film clip.

Our event was a “Great” success. Sam could see that this format was perfect for a mixed group audience of business owners, CPAs, attorneys, bankers, and the like. He also noticed that this type of event was put together only through the hard work of volunteers.

So Sam has developed a new program called The Arc of Greatness.

The Arc of Greatness is a turn key event solution that local business communities can use to bring together small businesses and professional service providers to be inspired and motivated to work together to create truly GREAT businesses.

The turn key portion will provide the event organizers with tools, templates, suggestions, hand outs, follow up material, and on going support to streamline the event planning process.

The presentation itself covers the management revolution that started with Tom Peters’ In Search of Excellence and concludes with Jim Collins’ Good to Great. The presentation is a combination of film clips, case studies, discussions, and Sam’s personal insights. All-in-all, the presentation is like having Tom Peters, Stephen Covey, Walt Disney, Jack Stack and Jim Collins in the room at the same time.

In addition to being an event that can enhance your business community, it can be organized to serve as a fund raiser.

For more information on The Arc of Greatness, please contact:
Brenda Richter, CPA
Brenda@BrendaRichterCPA.com

For more information on Sam Tyler, visit: http://tylertalks.com/

CPA & Attorney Leadership Skills

2007-09-23T13:59:00.000-07:00

How well does your CPA/attorney tend to and nurture his/her own business?

The care and attention your CPA/attorney gives to his/her own business is a direct reflection of the care and attention that your CPA/attorney is willing and able to give to your business.

The next time you are visiting your CPA/attorney, take a look around. Look for positive signs that your CPA/attorney is giving attention to on-going and future operations of his/her business. Such signs include:

Office environment and décor – Does your CPA/attorney maintain a neat and tidy work environment? Is the décor kept fresh and well maintained?

Technology - Is your CPA/attorney aware of the latest technology available to increase efficiency in business? Does your CPA/attorney have a technology plan for his/her business? Has your CPA/attorney implemented paperless technology? Has your CPA/attorney established a Virtual Office, in order to make working with him/her easier?

Continuing Education – What is your CPA’s/attorney’s attitude toward continuing education? Does he/she take the minimum required hours each year, and limit his/her choices to tax and accounting? Or, does his/her annual CPE/MCLE hours far exceed the minimum requirement and include management, technology, leadership, and personal development classes?

Corporate Culture – Does your CPA/attorney and his/her Team keep a professional appearance and dress style? Does your CPA/attorney and his/her Team appear to enjoy their work, the company they work for, and the customers they work with? Does your CPA/attorney have a vision and mission statement? Are these statements reflected in everything your CPA/attorney does?

Leadership – Does your CPA/attorney have a succession plan? Does your CPA/attorney develop leadership skills among Team members? Is work properly delegated among Team members?

With this last concept in mind, the VeraSage Institute has created The CPE/CLE of the Century conference. The conference is designed for CPAs, attorneys and their team members. It is being touted as THE event young professionals have been crying out for. Current and future leaders of the CPA profession will be asked to challenge their thinking and experience professional growth at the conference. Speakers will be sharing their experiences in creating a new type of CPA firm and a new type of law firm – Firms of the Future.

Forward thinking CPA and law firms with an eye towards enhancing their business and developing a strong successful firm for the future will be attending this conference as well as sending their young professionals. Is your CPA/attorney attending this conference as well as sending his/her young Team members to the conference?

To learn more about The CPE/CLE of the Century conference, visit: The VeraSage Institute

Another way to think about it…

Earlier this year, Mega Millions reached an all time high of over $390 million. The winning couple from New Jersey were quoted as saying: “We are retired, effective immediately.”

If your CPA were to retire, effectively immediately, would you be left in good hands?

And on the flip side, what has your CPA done for you to ensure that if you were to retire effective immediately, would your customers be left in good hands?

Register Today

2007-08-26T13:30:00.000-07:00

GOOD TO GREAT FOR PROFESSIONALS & SMALL BUSINESS

“Greatness is not a function of circumstance. Greatness, it turns
out, is largely a matter of conscious choice, and discipline."
Jim Collins author of Good to Great

The Santa Barbara Women’s CPA Lunch Group and The CPA♦Law Society of Santa Barbara county are co-hosting a premier event for the small businesses and professionals in our community on September 17, 2007.
Based on the book Good to Great by Jim Collins, the event will feature a presentation by documentary film maker Sam Tyler that includes case studies, film clips and his personal insight.

For more information and a registration form, contact: Brenda@BrendaRichterCPA.com
Or, visit: www.sbwcpalg.com

Please forward this information to anyone you
think might be interested.

SAVE THE DATE

2007-05-09T14:43:00.000-07:00

The Santa Barbara Women's CPA Lunch Group and The CPA/Law Society of Santa Barbara County are co-hosting as special event for small businesses.

Topic: Good to Great for Professionals and Small Business
Date: September 17, 2007

Based on the book Good to Great by Jim Collins, documentary film maker Sam Tyler will provide a customized presentation using several case studies and parts of his various films (including Good to Great) to show professionals and small businesses how they can create truly great businesses here in Santa Barbara.

Thank you to:
Our Platinum Sponsor - Business First Bank
Gold Sponsors - TBA
Supporting Organizations - Santa Barbara Chapter of ASWA & Others TBA

Watch blog posts for more information.

It's What You Stand For

2007-05-06T14:07:00.000-07:00

“It’s not what you make. It’s what you stand
for.”

Jim Collins

With that in mind, many businesses will create a mission statement and establish a set of core values.

The first step is to create a mission statement and establish a set of core values. The second step, which many businesses fail to do, is to incorporate the mission statement and core values into everything the business does.

Take, for example, a CPA firm. Let’s say that they establish Integrity as one of their core values. If you call that firm and ask for a price for various service, more likely than not, you will get a response similar to this: “Our fees are based on the time required by the individuals assigned to the engagement, plus direct expenses. Individual hourly rates vary according to the degree of responsibility involved and the skill required.”

How does that response answer your question? It doesn’t. And, where’s the integrity in that?

In order to stand for something, a business needs to have a mission statement and a set of core values. And, these must be incorporated into everything the business does, including pricing policies, sales process, product/service offerings, customer selection criteria, etc.

Does your CPA stand for something? Do they have a mission statement and a set of core values? Have they incorporated these into everything they do, including pricing? Or is there a disconnect between what they say and do?

On a final note, is you need to create a mission statement, establish a set of core values, and incorporate these into everything your business does, talk to a Principa CPA. He/she has the tools and special worksheets to get you started and complete the process.

2007-04-26T07:57:00.000-07:00

Read this first....then go to the link

The Honda Commercial

And you thought those people that set up roomfuls of dominos to knock over were amazing. There are no computer graphics or digital tricks in this film. Everything you see really happened in real time exactly as you see it.

The film took 606 takes. On the first 605 takes, something, usually very minor, didn't work. They would then have to set the whole thing up again. The crew spent weeks shooting night and day. By the time it was over, they were ready to change professions.

The film cost six million dollars and took three months to complete including full engineering of the sequence. In addition, it's two minutes long so every time Honda airs the film on television, they're spending enough money to keep any one of us comfortable for a lifetime.

However, it is fast becoming the most downloaded advertisement in Internet history. Honda executives figure the ad will soon pay for itself simply in "free viewing" (Honda isn't paying a dime to have you watch this commercial!).

When the ad was pitched to senior executives, they signed off on it immediately without any hesitation - including the costs.

There are six and only six hand-made Honda Accords in the world. To the horror of Honda engineers, the filmmakers disassembled two of them to make the film.

Everything you see in the film (aside from the walls, floor, ramp, and complete Honda Accord) is parts from those two cars.

The voice over is Garrison Keillor. When the ad was shown to Honda executives, they liked it and commented on how amazing computer graphics have gotten.

They fell off their chairs when they found out it was for real. Oh, and about those funky windshield wipers. On the new Accords, the windshield wipers have water sensors and are designed to start doing their thing automatically as soon as they become wet.

The commercial is truly a tribute to innovation and perserverance.

As Ronald Reagan once said,

"There are no great limits to growth because
there are no limits to human
intelligence, imagination, and
wonder."

The commercial is available for viewing at either of the following sites:

http://www.albinoblacksheep.com/flash/honda.php

http://www.steelcitysfinest.com/HondaAccordAd.htm

Change

2007-04-18T14:23:00.000-07:00

My friend Ric Payne, founder of the Principa Alliance, says this about change:

If you're willing to change only if:

It carries no risk
Produces quick results
Is inexpensive
Will not offend
Does not consume your personal time
Does not require a change in your behavior

DON'T BOTHER!

GREAT SERVICE TAKES TWO

2007-04-12T09:11:00.000-07:00

Recently, MSN City Guides featured an article reminding customers that they too play an important role in securing quality service when dining out.

The author, Zane Schmalzer, presents readers with six simple ways to ensure great service.

Communicate your goals for the evening to your server.
Make sure your server is aware of your food likes and dislikes, as well as any food allergies.
Expect the best, and trust the restaurant to provide you with a positive and enjoyable dining experience. Leave your memories of bad dining experiences at home.
Don’t be afraid to make special requests or to get clarification of menu items.
Be pleasant, and don’t for get to smile.
If something does go wrong, speak up immediately. Give your server and the restaurant a chance to make things right.

As I read the article, I couldn’t help but think; what if we substitute CPA and financial terms for server or restaurant and related restaurant terms?

As a customer, you need to let your CPA know what your service expectations are and whether or not they are being met.

As a service provider, your CPA has a responsibility to meet or exceed your service expectations.

Also, consider how to apply these same principles to your business when working with your customers.

To read the complete article, visit: http://cityguides.msn.com/restaurants/article.aspx?cp-documentid=3795099&page=1

And, why not send a copy to your CPA as well.

If the article is no longer available on MSN, please let me know. I will be happy to forward you a copy.

Taking Care of the Future

2007-04-06T08:30:00.000-07:00

How well does your CPA tend to and nurture his/her own business?

The care and attention your CPA gives to his/her own business is a direct reflection of the care and attention that your CPA is willing and able to give to your business.

The next time you are visiting your CPA, take a look around. Look for positive signs that your CPA is giving attention to on-going and future operations of his/her business. Such signs include:

Office environment and décor – Does your CPA maintain a neat and tidy work environment? Is the décor kept fresh and well maintained?
Technology - Is your CPA aware of the latest technology available to increase efficiency in business? Does your CPA have a technology plan for his/her business? Has your CPA implemented paperless technology? Has your CPA established a Virtual Office, in order to make working with him/her easier?
Continuing Education – What is your CPA’s attitude toward continuing education? Does he/she take the minimum required hours each year, and limit his/her choices to tax and accounting? Or, does his/her annual CPE hours far exceed the minimum requirement and include management, technology, leadership, and personal development classes?
Corporate Culture – Does your CPA and his/her Team keep a professional appearance and dress style? Does your CPA and his/her Team appear to enjoy their work, the company they work for, and the customers they work with? Does your CPA have a vision and mission statement? Are these statements reflected in everything your CPA does?
Leadership – Does your CPA have a succession plan? Does your CPA develop leadership skills among Team members? Is work properly delegated among Team members?

With this last concept in mind, the California CPA Society has created the Young and Emerging Professionals Conference (YEP). The conference is designed for CPAs licensed for 0 – 5 years, CPA candidates, accounting students and mentors. Future leaders of the CPA profession will be asked to challenge their thinking and experience professional growth at the conference. Speakers will be sharing their expertise in career development, networking, negotiating, and leadership. In order to make it easy for CPA firms to send their young professionals to the conference, the conference will be held one day in northern California and another day in southern California.

Forward thinking CPA firms with an eye towards enhancing their business and developing a strong successful firm for the future will be sending their young professionals to the YEP conference. Is your CPA sending his/her young Team members to the YEP conference?

To learn more about the YEP conference, visit: http://www.calcpa.org/yep.htm

To register for the conference, visit: http://www.educationfoundation.org/courses/courses_display.asp?Par_EventId=57123001&Par_EventYr=07

Another way to think about it…

Recently, Mega Millions reached an all time high of over $390 million. The winning couple from New Jersey were quoted as saying: “We are retired, effective immediately.”

If your CPA were to retire, effectively immediately, would you be left in good hands?

And on the flip side, what has your CPA done for you to ensure that if you were to retire effective immediately, your customers would be left in good hands?

Another Accountant Counts The Ways

2007-03-27T13:20:00.000-07:00

Earlier this week, an accountant from Texes sent a letter to Dear Abby suggesting ways that clients can "help out" during tax season.

I couldn't disagree with this accountant more.

Here's my response:

Dear Abby,

As a CPA, I was horrified when I read the letter from Sleepless in Texas (03/26/07), the accountant who listed ways to help out during tax time.

I encourage your readers who recognize their CPA in that letter to change CPAs at once. There are plenty of CPAs who enjoy their work, enjoy their customers and organize their accounting business so that they are well rested and alert to provide the best service.

I propose the following ways to help out during tax time:

Do feel free to drop by anytime. You are always welcome in our office. We hope you feel it is a place where you can get things done, solve your problems and gain peace of mind. If your primary CPA is not available, you can meet with one of our other highly qualified Team members.
Tell us about your children, family, business, hobbies, etc. The more we know about you the better we can serve you and provide you with appropriate advice and solutions. Arrange to come in more than once a year. The most valuable service we offer is proactive planning.
Be honest with us up front regarding your budget for professional services. That way, we can design a fixed price agreement to suit your needs before work starts.
Encourage your family, friends and colleagues to call us if they need help. Referrals are the best way you can thank us for a job well done.
If you have a question regarding the financial consequences of a decision you are trying to make, call us. After all, your fixed price agreement includes an annual consulting agreement to discuss such matters. Of course, if your questions require additional research and analysis, we will issue a change order and provide you with up front pricing for the additional work.

Sincerely,

Well Rested in California

To read the original letter from Sleepless in Texas, visit:

http://www.uexpress.com/dearabby/?uc_full_date=20070326

If this link is no longer available, I can send you a copy of the letter from Sleepless in Texas.

WHAT IS AN FPA?

2007-03-21T12:36:00.000-07:00

In last week’s blog, I mentioned that business owners might want to consider including unlimited assistance in hiring bookkeepers and consultants as one of the services in the annual FPA you have with your CPA.

At this point, you may be asking yourself, “Just what is an FPA?”

I discussed FPAs as part of my November 29, 2006 blog on year end planning. I think it’s time to re-visit the topic.

An FPA is a Fixed Price Agreement between a customer and his/her CPA.

Through the use of an FPA, you can set the price and payment terms of your accounting services for the year. Further, the FPA will define the scope of services to be provided by the CPA and include any responsibilities of the business owner. In addition, the FPA should include the CPAs service guarantee.The advantages of an FPA are numerous.

The business owner is relieved of any uncertainty regarding the amount of his/her accounting bill.
The business owner can manage cash flow according to the payment terms of the FPA.
FPAs break down the barriers of communication between the business owner and the CPA.
The service guarantee provides the business owner the comfort that he/she will receive the quality of service he/she deserves.
The business owner is free to attend to other aspects of his/her business.
Payments to the CPA can be set up as memorized transactions in the accounting system.
The FPA typically includes ongoing access to the accounting, tax, and business advice the business owner needs on a fixed-price basis. The business owner is not inhibited from seeking timely advice by the fear of a clock running endlessly. This offers the business owner access to the accumulated wisdom of the firm through CPAs with substantial experience who can help enhance the company's future and achieve its business goals.

So the next time you need professional services from your CPA, sit down and negotiate the service and pricing terms ahead of time, and have them documented in an FPA.
Your CPA has sample FPAs on the Cd that came with his/her copy of the Professional’s Guide to Value Pricing. Samples if simple FPAs are available in the Resource section of the Verasage web site. www.VeraSage.com

SELECTING A BOOKKEEPER

2007-03-14T11:01:00.000-07:00

A company needs its own bookkeeper to keep track of the day-to-day transactions of the business, complete monthly, quarterly and annual reconciliation procedures and assemble the financial package for the CPA. Competent bookkeepers can be hard to find. According to Stephen Sahlein, co-president of the American Institute of Professional Bookkeepers (AIPB), most bookkeepers lack the knowledge needed to fulfill their function. Consequently, your business may be at risk.

You cannot always ascertain a bookkeeper’s ability and skill level from a resume or interview. There is a way to make sure that the prospective bookkeeper knows basic bookkeeping – Administer the FREE hiring test available from the AIPB. The test consists of 10 questions on key everyday bookkeeping skills. Applicants cannot obtain the test beforehand, because each 10-question test is drawn from a databank of 250 items.

If your prospective bookkeeper is competent or holds a Certified Bookkeeper (CB) designation from the AIBP, she/he will have little trouble successfully completing the test.

For more information about the AIPB, visit: http://www.aipb.org/index.php

For more information about the FREE hiring test, visit: http://www.aipb.org/testrequest.php

You may also want to consider having your CPA include the following line in your annual FPA:
“Unlimited assistance in hiring bookkeepers and consultants.”

SELECTING A CONSULTANT

2007-03-08T20:43:00.000-08:00

Small businesses often lack the internal resources needed to complete major business projects, and look for an outside consultant for assistance.

Such projects include:

Preparing budgets, business plans and cash flow projections
Creating a marketing plan and conducting the related campaign
Making major IT improvements or even just monthly IT maintenance
Tax returns
Developing an employee manual
Employee benefits packages
Customer Advisory Boards
Team Advisory Boards
Towards Awesome Service Training
KPI monitoring
Phone Right
Strategic Planning

Small business owners and managers can get the best results from their consultants by asking themselves 10 simple questions. See The Consultant Customer’s Bill of Rights at:
http://www.verasage.com/index.php/resources/the_consultant_customers_bill_of_rights/

HANDY LITTLE ADD ON

2007-02-28T09:27:00.001-08:00

Studies have shown that businesses can increase productivity from 10% - 70% by implementing dual monitors and paperless technology.

The Microsoft study on dual monitors can be viewed at: http://research.microsoft.com/displayArticle.aspx?id=433

An IT professional shares his personal experiences with dual monitors at:
http://www.windowsitpro.com/Windows/Article/ArticleID/47573/47573.html

To hit the higher end of the productivity scale, consider adding on the UltraMon utility from Realtime Soft. This extremely affordable handy little add on adds two new buttons to your open windows. The first button allows you to move an open window from one monitor to the next with just a single mouse click. The other button allows you to stretch an open window across both monitors with just a single mouse click.

For more information about UltraMon and its other features, visit: http://www.realtimesoft.com/ultramon/

Sometimes Someone Else Says It Better

2007-02-21T15:52:00.000-08:00

I believe that Knowledge Worker based businesses (CPAs, lawyers, technology consultants, marketing consultants, etc.) should Value Price their services, and provide customers with a Fixed Price Agreement up front.

Many others believe the same way. Some of them started The VeraSage Institute. The VeraSage Institute is the most revolutionary think tank for professional service firms. They challenge the professions to break free of practice methods that hurt the profession, undermine their purposes, and fail their customers.

Among their quests: Burying the Billable Hour.

This means eliminating hourly billing and the timesheets that go with it. Professional service firms are encouraged to run their firms by “pricing on purpose” and making customer service and customer value number one priorities in their practice. Such firms need to re-align their corporate culture, and also recognize that their team of professionals are knowledge workers, not machines.

In order to assist professional service firms with these goals, they have developed the VeraSage web site. For more information, visit: www.verasage.com

As a result of their quest, the founders and followers of VeraSage, spend much of their time dealing with the technical issues of “how to” make the necessary changes. Ron Baker, CPA (the original value pricing guru), recently took time to reflect on this, and remind professionals, the real reason for value pricing – to better serve our customers. To read Ron’s blog, visit: http://www.verasage.com/index.php/community/comments/its_the_quality_of_life_stupid/

More importantly, read Chris Marston’s blog he links to at the end of his blog. Chris is one of the founders of the Exemplar law firm, a law firm in Boston dedicated to the principles of Value Pricing. I could not have said it better myself.

Happy 212 Day!

2007-02-14T09:38:00.000-08:00

Earlier this week it was 212 day. (February 12 is 212 day.)

Remember my Happy New Year post?

I challenged business owners to read the 212° book from Simple Truths, and implement the 212° strategy in their business and in their lives.

This week (the week of 212 day) seemed like a good time to write this reminder to take it up an extra degree in all you do.

Remember, as the book points out...

It's your life.
YOU are
responsible for your results.
It's time to turn up the heat.

From this day forwards, commit to operating at 212 degrees in
everything you do. Etch
it into your thinking - into your
being. Apply it to your actions. It
guarantees to increase
your results positively and, in so many cases,
increase
your results exponentially.

If you need help in applying the 212° concepts to your business, please think of using a Principa accountant to be your business coach. me. A member of the Principa Alliance can work with you to identify areas in your business that are not realizing their full potential and help you improve them to build a stronger, more profitable future. This is a step-by-step process that includes creating a strategic plan, plan implementation, systems development, customer service and team training, and ongoing monitoring and management advice.

For more information about the 212° book and to view the video, visit: www.SimpleTruths.com

2007-02-07T09:53:00.000-08:00

“If you keep doing what you’re doing,
you’ll keep getting what you’re getting!
One definition of insanity is to keep doing
the same things and expecting different results.”
Stephen Covey

Recently, I had a meeting with a prospective customer.

It seems that he is disappointed with his current CPA, and is looking to make a change. Last year when his income tax returns were completed, he had a sizable balance due. This forced him to borrow money to pay his taxes. He felt that there should have been a more proactive approach towards planning on the part of the CPA, and that his CPA should have warned him well before his returns were due that a large payment would be needed.

For years he had been paying his CPA by the hour. The final bill usually came within the $500 range. Although, one year he was not pleased when the bill was $850.

This scenario point to one of three situation:

The CPA routinely charges less than $1,000 for a tax return. In order to make enough money, this means that the CPA must prepare 500 – 1000 returns each year. That’s a lot of returns! When a CPA takes on that much work, she is unable to provide quality service and has little time to be proactive when it comes to tax planning.
The client assumed it was the CPAs responsibility to take the lead in tax planning matters. The CPA assumed that if the client was interested in tax planning, then the client would ask. Hmmm… what is it they say about assuming? (Note: In this paragraph I used the term “client”. That is because in these situations, CPA call their customers “clients”, and customers act like “clients”. More about that in another blog.)
Somewhere in the relationship, the client identified himself as a $500 client. The CPA treated him accordingly.

The prospective customer came to me hoping to find a CPA who was more interested in his business and more interested in providing proactive planning services. What’s interesting, though, is that when I asked his budget, he said: “I’d like to stay in the $500 range.”

LESSONS TO LEARN

To paraphrase Steven Covey:
If you keep paying $500 for accounting services, and expect better service – You’re crazy!

Communicate with your CPA. Let her/him know what level of services you want, and what your budget is. Be willing to pay for quality work and service. What is it they say about paying for advice? “Good advice never costs, it pays.”

Be sure you have properly identified yourself with your CPA. Every CPA firm should have a definition for being an A, B or C customer. And, they should be willing to share the criteria with you.

Be willing to change.

Never be surprised by your CPAs services or their bill. Get a fixed price agreement in advance.

Remember – You’re the customer.

HOW I HANDLED THE SITUATION

I provided the prospective customer with a proposal. The proposal had six different service levels, and each level was priced accordingly.

MAGIC NUMBERS FOR BUSINESS

2007-01-31T15:40:00.000-08:00

Did you know…?

A change of just 5% in customer retention can produce a staggering 125% change in profits.
68% of customers leave because of perceived indifference.
Most businesses spend 6 times more to attract new customers than they do to keep the ones they've got.
Each unhappy customer tells at least 9 others about their bad experience.

Sobering stuff.

While you're in business to make a profit, managing a business only for profit is like playing tennis with your eye on the scoreboard. The 4 purposes of your business are to:

Create new customers
Keep them coming back
Turn them into advocates for you, and
Have fun!

Don't aim to satisfy your customers. Aim to delight them!

When businesses work with a Principa Alliance member to improve their business, they gain access to a global knowledge base and a wealth of consulting experience that is so much more powerful than any one firm could offer.

In short, a Principa Alliance member can, and will, do so much more for a business than just 'keep the score.'

Benchmarking - why do we do it?

2007-01-25T16:01:00.000-08:00

Benchmarking is a careful search for excellence - taking the absolute best standard and trying to surpass it - and not many businesses are likely to succeed in the new millennium unless they are willing to do just that.

The experience of all businesses who’ve tried it shows that you can enormously improve quality in service and efficiency if you:

Find examples of people or businesses anywhere in the world who do a truly excellent job in performing each of the jobs involved in their business.
Study those examples with an open mind and a teachable spirit.
Never assume that you’ve either found the best or become the best yourself.

Keep searching constantly for better ways.

Remember to ask yourself: “CAN I?” - Constant and Never-ending Improvement.

It’s a simple recipe. And a recipe for enormous power.

To find examples of businesses with excellent business practices, look for:

Businesses that have won the Malcom Baldridge Award
Businesses recognized by JD Power & Associates
Businesses with higher than average earnings
Businesses that are established leaders in their industry
Businesses that are known for innovation and creativity

As a member of the Principa Alliance, an international network of business consultants, my goal is to help business owners and managers build a stronger, more profitable business - a business that is looking to constantly improve. In turn, these owners and managers enjoy a higher quality of life as a result.

When businesses work with a Principa Alliance member to improve their business, they gain access to a global knowledge base and a wealth of consulting experience that is so much more powerful than any one firm could offer.

In short, a Principa Alliance member can, and will, do so much more for a business than just keep the score.

Club V

2007-01-17T18:55:00.000-08:00

Working with your CPA just got easier.

The power of the Internet is making relationships with your CPA more successful.
Collaboration suites are easy to use, and make great customer portals.

Forward thinking CPA firms are discovering many unique and creative ways uses for customer portal technology to solve real business problems and are turning their portals into opportunities to provide better service to their customers. CPAs and their customers work together in entirely new ways. They have the ability to share documents, back-up files and draft returns and financial statements.

Wherever and whenever you and your CPA need to work – in the office, on the road, even around the world, the portal keeps everyone in touch. Everything you and your CPA need is accessible from anywhere. Even remote workers will stay connected – just like they’re in the same office.

Leading edge CPAs are taking the customer portal to the next level by creating Virtual Firms. They bundle access to the portal with other traditional and non-traditional services. They enhance the customer portal experience with:

Newsletters
Alerts
Personalized messages
Articles
Profit boosting ideas
Videos
Conducting opinion polls
Discussion forums
Scheduling meetings
Creating shared business information databases
Posting web links
Making announcements
And even web meetings and seminars

At a time when their customers are demanding service flexibility and 24/7 access, CPAs who are members of the Principa Alliance are using Virtual Firm to provide a new “on-demand” way of doing business.

Delivering WOW Service

2007-01-10T10:12:00.000-08:00

Tom Peters said it best in his book In Search of Excellence: “The best kept secret in the global economy is this: When your service is awesome, you get so stinking rich that you have to keep buying new bags to carry all the money home.”

Notice he didn’t say that your service should be good, or great, or mediocre. Or that your customers should be satisfied. He said, “When your service is AWESOME.” The kind of service that makes people sit up and take notice. The kind of service that makes people talk about you.

Look at the businesses and companies that have achieved truly great things. Businesses like Disneyland, McDonald’s and Virgin have made big names for themselves by delivering the type of service that qualifies as awesome.

That’s easy for them, you say? Well, it’s easy for you too.

Many small businesses have carved a niche for themselves by delivering more than expected to their customers and delighting them in the process.

Notice again I didn’t say “satisfy them” - I said “delight”. Why? Because delighted customers talk. Oftentimes about your business.

If you doubt the value of delivering awesome service, think about how much business is obtained through word of mouth. Many business owners, when asked where their business comes from, answer with “word of mouth.” If that’s the case, how can you capitalize on that to get more people referring business to you?

The easiest way, by far, is to impress your customers so much that they become advocates for you.

The way to do this? Give them WOW service!

Service that gets your business talked about. It’s a way to create absolutely free publicity for you—and the good news is that it doesn’t cost you a penny more to give ‘WOW’ service than it costs to give ‘satisfactory’ service.

CPAs whi are members of the Principa Alliance are not your average advisory firms. Far from it. They do so much more than just “keep the score.” These firms will work with businesses to identify areas in the business that are not realizing their full potential and help improve them to build a stronger and more profitable future. A firm’s membership in the Principa Alliance means that customers have access to the collective knowledge and expertise of an international network made up of hundreds of professionals who specialize in consulting to small and medium-sized businesses by providing services such as the Team Advisory Board (TAB). Everyday team members are on the front line of customer service. The TAB workshop is a facilitated interactive session designed to tap into a team’s collective experience and develop a business strategy to create WOW service.

Happy New Year

2007-01-06T09:00:00.000-08:00

HAPPY NEW YEAR!

The new year has always been a time for looking forward to the coming year. It’s a time to reflect on the changes we want (or need) to make, and resolve to follow through on those changes.

Several weeks ago, a book came across my desk. 212° The Extra Degree captures the essence of excellence in an unforgettable way… At 211° water is hot. At 212°, it boils. And with boiling water, comes steam. And steam can power a locomotive. The one extra degree makes the difference.

I think you will agree that this simple analogy reflects the ultimate definition of excellence. Because it’s the one extra degree of effort, in business and life, that can separate the good from the great.

This book can help you create a truly excellent 2007.

This is the perfect time to commit to doing one thing everyday to improve your business. You can start by having GamePlan™ calculate the substantial results made possible by making just small (one degree) changes in your business.

If you need help in applying the 212° concepts to your business, please think of using a Principa accountant to be your business coach. me. A member of the Principa Alliance can work with you to identify areas in your business that are not realizing their full potential and help you improve them to build a stronger, more profitable future. This is a step-by-step process that includes creating a strategic plan, plan implementation, systems development, customer service and team training, and ongoing monitoring and management advice.

For more information about the 212° book and to view the video, visit: www.SimpleTruths.com

LEADERSHIP TIPS

2006-12-13T22:07:00.000-08:00

“The task of a leader is to get his people from where
they are to where they have not been.”
Henry Kissneger

With that in mind, the task of being a leader can be daunting.

Here are some tips to help with the task:

In football, as the game nears the end, there is a two minute warning. Consider adopting your own form of the “two-minute rule” in your organization. When your team is on a deadline, agree that when someone gets stuck on a problem, he/she shouldn’t spend more than two minutes trying to solve it before asking for help. Of course, you may need to adjust the time to something more appropriate to the situation. Start with a 30 minute rule, and as the deadline approaches lessen the time to 10 minutes

Avoid vague terminology when setting up performance rules for your team. This can be especially important for new team members who are often struggling to fit in. For instance, don’t just tell a team member that you expect them to be dependable or reliable. Let them know that one of the core values of the team is dependability. Then define dependability in clear easy to understand terms. Such as, a dependable team member works a full day from 8 to 5, a dependable team member shows up to meetings on time and prepared to discuss items on the agenda and make scheduled presentations, a dependable team member is proactive when it comes to helping out other team members, and a dependable team member consistently completes projects on time and in a satisfactory manner. Of course, each project should have a clear definition as to completion dates and criteria for satisfactory performance.

Setting goals is important. As Brian Tracy says, “People with clear, written goals, accomplish far more in a shorter period of time than people without them could ever imagine.” Most leaders recognize that they should set goals that are specific, measurable, achievable, relative to the core values and strategic plan of the organization, and marked with timelines and milestones. However, sometimes leaders forget to use strong language as well. Be sure to state goals positively. Say: “When we complete the XYZ project by (date), we will be considered the top division in our company.” Avoid phrases like “I wish”, “If we could” or “I hope”. These phrases sound as if you lack confidence in your team’s ability to achieve the goal or that you are leaving the outcome to chance.

Everyday, CPAs and CAs who are members of the Principa Alliance specialize in advising small and medium sized businesses by providing strategic planning services including Towards Awesome Service and Team Advisory Boards. Both of these services can assist team leaders and business owners in working with their teams, setting goals, monitoring progress, maintaining momentum, and ultimately achieving success.

Phone Right

2006-12-06T06:47:00.000-08:00

Around 90% of all first time enquiries begin on the telephone, so it's the perfect opportunity to project an image of friendliness, efficiency and professionalism. It's also the opportunity to significantly increase your conversion rate of telephone enquiries into sales and achieve a better return on your advertising and marketing investment.

To get the full benefits from your phone, it's important all your team members consistently use good telephone technique.

Develop phone answering protocols
Develop scripts for common phone situations
Hang up last

Voicemail: Friend or Foe?

When used effectively voicemail can be a great help. It's important though, not to use it as a means of avoiding talking with your customers.

When recording your voicemail messages remember these 3 things:

Be as brief as possible.
Be totally customer focused.
Give a human option early.

Good telephone technique can create a delightful experience for your callers such that they'll want to keep coming back.

Your company's phone pocedures need to be in line with company strategy.

CPAs and CAs who are members of the Principa Alliance specialize in advising small and medium sized businesses by providing strategic planning services including Phone Right. Strategic planning can help you build a clear vision for your business so you can plan - and achieve - the success you deserve.

The Phone Right workshop gives you and yor Team the skills you need to create a powerful first impression that is in line with your strategic plan. What's more, it also gives you key tips and techniques for dramatically increasing the effectiveness of your sales and customer service efforts.

Year End Planning

2006-11-29T15:34:00.000-08:00

Successful businesses, small and large, plan for profit. One of the primary tools used for profit planning is the preparation of an annual budget. The problem with preparing budgets is predicting the unknown.

One way to solve for the "unknowns" in your budget is to get guaranteed pricing from your vendors and service providers. This may not be possible with most of your vendors and service providers, but one place to start is with your CPA.

In progressive forward thinking CPA firms where an emphasis is put on providing total quality service and on the value of the services to the customer, the billable hour is not used. Rather, Fixed Price Agreements (FPA) are used.

As a customer, you do not buy hours from your CPA. Thus, your CPA should not sell time.

Instead, you and your CPA should sit down and decide together what services you value, and how much you should pay for these services. During the meeting, you should also discuss payment terms and any relevant mutual commitments. Then an FPA is prepared that states what you agreed to in the meeting.

With the creation of an FPA between you and your CPA, you have one less budget item to worry about.

THINGS WERE HEATING UP IN DENVER

2006-11-22T11:38:00.000-08:00

November 5 – 8, 2006, temperatures at the Cherry Creek Holiday Inn Select in Denver ran from the high 60s to the mid 70s. A far cry from the snowstorm that had dropped over two feet of snow in Denver and the surrounding areas just ten days earlier.

Things were heating up inside the hotel as well, where the Principa Alliance Practice 2020 Annual North American Conference and Accountants’ Boot Camp took place.

CPAs and Chartered Accountants from across North America gathered for three pretty intense and stimulating days. At this program, they explored some incredibly powerful business development technologies. And I was there.
There is no other program like this in the world.
The entire program is devoted to the application of this simple business philosophy:

“We are rewarded only to the extent by which we add value to those we’re privileged to serve.”

I learned so much—really powerful business-building philosophies that give businesses a competitive edge. I’m still stunned that so few businesses take the necessary steps to access to these ideas. Some of the topics included:

Analyzing financial information
Developing alternative financial presentations
Developing business dashboards
Outsourced financial management teams
Emerging technologies
Using virtual environments
Leadership training
Applying the Delta4 Consulting System
Working with an association with a global network of CPAs and CAs dedicated to playing an increasingly important role as an advisor to small and medium size businesses to guide them through the process of making strategic business decision

Everything really started heating up as we headed for the kitchen. On Tuesday night we participated in a Culinary Team Building Exercise. By working in small groups, we had they opportunity to see how our recipe became integrated into a complete dining experience, thereby understanding how a single contribution is imperative to the whole. Best of all, when the meal preparations were complete we were able to relax and enjoy a great meal with our fellow Principa Alliance members.

The last burst of heat came on the final day, when we learned about implementing the 212° philosophy within our practices and with our customers.

AT 211 DEGREES,
WATER IS HOT.

AT 212 DEGREES, IT BOILS.

AND WITH BOILING WATER,
COMES STEAM.

AND STEAM CAN POWER A LOCOMOTIVE