"From the Trenches" Our Employee Blog

A Successful Growth And Development Plan You Can All Learn From... And Do!Here we are, deeply entrenched in the most severe recession we have ever experienced. That’s a fact, it’s undeniable. Revenues are down and overhead is up. Debt is choking the lifeblood out of your business. Businesses are closing everywhere.

What a terrific time to plan and implement a growth plan.

Look around… some of your competitors have gone out of business. Most, if not all, of those remaining are responding in the same knee-jerk manner they’ve used in the past when revenues dip—they reduce advertising and marketing. The market is down, they observe. People aren’t buying, they think, so they advertise less, telling themselves this will save money. Since the market is soft it will not work anyway so why waste the cash? Their plan is to “wait it out” and when everything returns to normal, resume their regular marketing.

What a classic mistake.

I recently spoke to a small business owner who operates a general printing company. He bought the company a few years ago just as the recession began. Revenues were $450,000 when he acquired it. Despite the recession, he correctly figured he could gain a larger share of the market by  reinventing his mission and aggressively advertising and marketing his services, taking business away from his competitors who were hiding out.

He created an expansive strategy, marketing his capabilities to increase businesses revenue through direct mail campaigns and by utilizing other printed marketing tools. He stopped selling printing and began selling the promise of success, revenue, and additional profit to business owners all over his region. He invested significantly in printing, mailing and promoting his new direction and it paid off. The business came to him. He drove his revenue up to over one million dollars in two years and made a profit the entire time. He grew his business in a down market by taking business away from his competitors, aggressively reinventing his business and marketing his message successfully. His investment paid off.

Follow the leader, it works. Learn and act. Indecision, inaction and doubt kills the warrior.

Downsize, reinvent yourself, do your debt workouts and promote your new business. This is the path to take. Call us for help. We will gladly show you the way. Call 413-584-2581 and Norm will arrange a no-obligation teleconference for us to discuss your options.

About Don Todrin

Don Todrin is the CEO and Founder of Second Wind Consultants, Inc.. Don and his company specialize in SBA Loan Workouts, Offer in Compromise, business debt forgiveness and solving difficult business problems in general. Follow me on Twitter or become a fan of Second Wind Consultants on Facebook.

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The CEO/Owner Must Be Involved In Sales Activities.The CEO, owner or whomever is “in charge” must be involved in sales activities.

The old saying remains…”Nothing happens until something is sold.” Unfortunately, this is not altogether true as much happens whether or not anything is sold and it all costs money. Payroll, fixed overhead, work-in-process, advertising, marketing, debt service, etc. What is really meant by this saying is that nothing productive occurs until something is sold, or, in even more basic terms, no sales = no revenue. No revenue = no business.

That is the basic lesson: No sales = no revenue = no business.

There is nothing more important than the sales effort and yet I see many small business owners delegate the sales responsibility to another, preferring not to be involved in this aspect of the business, rather choosing to allocate it elsewhere. Here’s a simple rule: If you are destined to be a business owner, then you are destined to be a salesperson. This where the true action is. The success or failure of your business, while dependent upon many aspects, is certainly significantly determined by the success of your sales effort.

So much valuable information and feedback is gleaned from the sales process that it is fundamentally necessary for an owner (or CEO) to be actively involved in the process. There should be no better salesperson than the owner. After all, he should know more about his product or service than anyone, thus leading the way in both selling and training the sales force. The buying public wants to know who stands behind the business, whose guarantee is on the line, whose commitment to quality the product is bound to, whose word is behind this venture. The answer is always the owner, thus the owner must, and should, be on the front lines selling his product, putting his name on the deal and standing behind what he offers and delivers.

There is no better place for the owner to learn what the response is from the market firsthand. To be successful, this is mandatory and can only be accomplished by putting oneself in the front line. Reports from the front line are not adequate; firsthand experience is the best teacher of all. Having information filtered through sales people is unreliable. Firsthand experience works. If you engage in the sales process, you will learn more about what the customers want, what the barriers are, how pricing is working, how you stack up against competition and on and on it goes. Additionally, you will be better able to gauge what your sales force should be accomplishing and which excuses for lack of sales are valid and which are not.

There are many excuses given for not doing this and all of them spell disaster. If you are not willing to engage in the sales effort, do not open a business—it is highly unlikely you will succeed. There is no way an executive can be effective if he is not involved in the sales effort firsthand and significantly. But beware, you must also be training others as once the sales process is better understood, the sales effort then should be offloaded to trained sales people capable of delivering success using the information and tools you have learned.

I suggest that the CEO, manager and/or owner always remain in a sales capacity, but possibly be reduced to occasional involvement when appropriate once the sales effort has been debugged and launched once the CEO/manager has established an understanding of it from firsthand involvement. In addition, understand that personal goodwill with your most important customers is an effective and valuable strategy for protecting your business if/when your sales manager leaves to go elsewhere, presumably with your accounts in tow. This won’t be much of an issue if you have significant contact with your major accounts. In other words, you’ll be protecting your business through firsthand involvement.

Simply stated, among your many duties, sales is most important for an owner of a small business. Do it—it is not as hard as it may seem. Let your passion and knowledge carry you.

About Don Todrin

Don Todrin is the CEO and Founder of Second Wind Consultants, Inc.. Don and his company specialize in SBA Loan Workouts, Offer in Compromise, business debt forgiveness and solving difficult business problems in general. Follow me on Twitter or become a fan of Second Wind Consultants on Facebook.

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Limited Availability: A Tried And True Marketing Strategy. Consumers do not want to miss out on a great deal, an opportunity that may not recur, a chance for a real bargain or an opportunity to get something they really want that has a limited availability.

I stood in line in at the Apple store in Manhattan when the iPad was first released, and purchased mine at 2:00 am. I was among hundreds of others wanting to get this item, hoping not to be shut out because none were left. “Limited inventory” got me to act.

My wife loves to shop on the day after Thanksgiving, a.k.a “Black Friday” because she will get bargains unavailable any other time, or so she believes. Thus, she will get up early and stand in lines to reap the benefits.

We all know how fast-food chains like McDonald’s, Burger King and Wendy’s bring back previously successful sandwich specials for a limited period of time which excites the market and spikes the sales. Customers are inspired to purchase a favorite because it will be available for a limited time only.

Only 100 available.

…for a limited time only.

…until the end of the month.

…the first one hundred customers.

This works. People do not want to miss out on a deal or an opportunity and when confronted with the possibility of missing out, desire to get in on the action and attain the goal item is increased.

One caveat: make it real. You can create any rules you want but if it is unbelievable, too incredible, it will be viewed as a scam and will alienate the public rather than attract them. So, be real when you do this. Follow the game plan and demonstrate integrity and the plan will work.

Scarcity inspires action. Try it.

About Don Todrin

Don Todrin is the CEO and Founder of Second Wind Consultants, Inc.. Don and his company specialize in SBA Loan Workouts, Offer in Compromise, business debt forgiveness and solving difficult business problems in general. Follow me on Twitter or become a fan of Second Wind Consultants on Facebook.

Apple iPad: The Best Thing That's Happened To My Business!Yes, I’ve read the reviews saying an iPad is an iPhone on steroids, a supersized iPhone, another unnecessary electronic gadget, etc. But, I bet these “reviews” come from people not yet using one on a daily basis or not yet addicted to the iPad’s incredible capabilities.

I bought mine the first night it was available. I stood in a long line in Manhattan at 1:00 am in the morning… and left with the most effective and functional device I have ever owned. In short, it has changed my business life for the better and has made my life easier in general.

I am in the business of debt workouts, i.e. removing debt from businesses. Many of my clients have occasional emergencies requiring quick response and action to protect their assets. I must be available and ready to communicate with others effectively at all times. Yes, I could do this with my cell phone, but it’s oh-so-much-better with my iPad due to the mere fact that it is both 3G and internet capable. It allows me to have instant access to email, the internet, my blog and all the contracts, forms and other tools I use in my business every day, wherever I may be. With this incredible tool, I can not only receive and send emails and blog at will, but I have various forms and contracts stored in it and can utilize its capabilities in many meaningful situations that I was previously unprepared for.

Some argue that their laptop does this and more, which is true (other than the 3G part, which is huge). However, I seldom carry my laptop everywhere I go, and am not likely to whip it out in cars, cabs, bus stops, the beach, etc., as it is too cumbersome, too much of a project to boot up and use on the run, too big to carry everywhere I go…  I never have my laptop with me when I want it as I do not make it a habit to carry it everywhere I go.

However, my life has changed; I can carry my iPad with me anywhere I go. It is always on and available like a cell phone and because of its size and its touch keyboard, it is always ready to give me the business tools I want or need. Obviously, I blog, and what a delight to be able to blog anywhere I am, whenever the inspiration strikes, whether it be when I am shopping with my wife or waiting in the car to pick someone up at the airport. Anywhere I am, it is ready and available for instant action.

Sure, you can do this with your Blackberry or iPhone—I have the new Droid, which is very powerful, but I do not use it for all its capabilities because, frankly, it is too small and thus impractical. I do, however, use my iPad… it really works. Now, I go nowhere without my iPad.

If it IS only a supersized iPhone, well, then it’s the best gimmick around and has totally won me over.

About Don Todrin

Don Todrin is the CEO and Founder of Second Wind Consultants, Inc.. Don and his company specialize in SBA Loan Workouts, Offer in Compromise, business debt forgiveness and solving difficult business problems in general. Follow me on Twitter or become a fan of Second Wind Consultants on Facebook.

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Not Prepared For Victory... And No Wonder.Recently, I have noticed a phenomenon: Small business owners are not prepared for victory.

Small business owners have been turned into fist-fighting warriors, battling for survival. Reduced revenues, high overhead and, especially, unaffordable debt service have forced you to become cash flow experts, accounts payable jugglers and downsize experts. You’re taking blow after blow, suffering from unimaginable pain and frustration yet maintaining the vigil and battling daily to stay afloat. Nothing new here, this you all know and understand. This is your plight. What choice do you have?

The real issue is, those who are doing the debt workouts and experiencing loan forgiveness are, in some instances, stuck in fight mode or a defensive posture, still fighting a battle which is now over as they have eliminated the major cause of destruction of their small business: overburdening debt. The small business owner must make a huge adjustment from times of war to peace and many trip up in the transition, forgetting that peace requires different skills. Successful emergence requires surrendering to victory. It seems like a heavenly prospect, yet it’s very hard to do when you’ve been engaged in fierce battle for the past few years.

So what is the problem?

The problem is the inability of small business owners to make the transition from warrior to peacetime leader, once again taking the team to victory, instead of fighting impossible battles. When the battle is over we have no need for the warrior. When you successfully remove the debt and reduce your personal guaranty—in other words, when the battle is over—you need to be a builder, a developer, a thinker, a planner, a marketer… not a fighter or a warrior. The small business owner must wear many hats. For the past few years, for many, it has been a warrior’s helmet as you enter into battle, tenaciously holding on to your business. Do the debt workout and your hat becomes that of a leader, a builder, a marketer, a manager…

Let us not trip over the finish line. Leave the battle behind. Be the leader you can be and lead your business to victory. Once you have completed the workout, engage in the turnaround and be a peacetime leader, ready to carry your company to the promised land of security and safety. It is not easy. It requires different skills, but you can do this.

This is a huge challenge for the small business owner, one that is resulting in many failures. It is a difficult and dangerous transition from war to peace, but it can be done. Be careful and call us for help: 413-584-2581.

About Don Todrin

Don Todrin is the CEO and Founder of Second Wind Consultants, Inc.. Don and his company specialize in SBA Loan Workouts, Offer in Compromise, business debt forgiveness and solving difficult business problems in general. Follow me on Twitter or become a fan of Second Wind Consultants on Facebook.

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E-Verify: Check Or Suffer The Consequences, It Is Your Responsibility!The business world is changing every day. There are always new laws, new requirements, additional responsibilities, added administrative duties, more insurance, more taxation, greater licensing requirements… and on it goes.

The latest road block in your way is the issue of illegal immigrants working in this country without proper papers. It has become, by law, your responsibility to make certain your workforce is legal. Yes, now you are the sheriff  in town and you must uphold the law or suffer the consequences of fines and business interruption.

Some of you look the other way and hire illegal immigrants because it is cheaper, but it’s not a good idea. The consequences for violating these employment statutes could cost you your business. You must check; it is the responsible thing to do and is the only way to protect your business. Consider how you would overcome the effect of having half of your workforce being sent home in the middle of your peak season because they do not possess the correct entry paperwork.

Below is a link to the US Citizenship and Immigration Services (USCIS) site that can help you to easily, inexpensively and quickly clear your employees so you can rest assured that your business is built on a solid foundation.

http://www.uscis.gov/portal/site/uscis/

To jump directly to the e-verify page:

http://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=75bce2e261405110VgnVCM1000004718190aRCRD&vgnextchannel=75bce2e261405110VgnVCM1000004718190aRCRD

Check your employees. Find out who is legal and who is not; replace the illegals and figure out how to make a profit without using cheap, but illegal, labor.

About Don Todrin

Don Todrin is the CEO and Founder of Second Wind Consultants, Inc.. Don and his company specialize in SBA Loan Workouts, Offer in Compromise, business debt forgiveness and solving difficult business problems in general. Follow me on Twitter or become a fan of Second Wind Consultants on Facebook.

Good Marketing Beats A Great Product.So many small business owners/entrepreneurs have believed that they could make a terrific product and the market would beat a path to their door. For the most part, they are now history. Unfortunately, over time we have learned that good marketing is critical to a successful sales program no matter how terrific the product may be. It must be sold. In fact, we have also learned that great marketing can successfully sell a mediocre product.

Palo Alto Software founder and president, Tim Berry, has learned a few things about marketing his product. First and foremost, Berry says that “great marketing for a mediocre product will almost always beat mediocre marketing of a great product.” As he explains, it isn’t always fair but the truth is that, “…the best product doesn’t usually win the race.” Among the other lessons Berry shares is that a mediocre marketing plan applied consistently is more effective than a brilliant but sporadic marketing plan.

Therefore, the real question is, what makes a successful marketing plan? This, of course, depends upon so many variables that it would be impossible to itemize exactly what components are required to yield a great marketing plan. Suffice it to say, the point to be reckoned with is that too many small business owners have no marketing plan at all, or have a grossly inadequate one. Creating a great marketing plan takes effort, skill, and money, and even those do not always work. However, one thing is certain: not having a marketing plan at all—good or bad—is definitely a problem in the making.

Create great products and provide terrific services. Remember, the surest road to success, no matter how great the product or service may be, is an effective marketing plan.

About Don Todrin

Don Todrin is the CEO and Founder of Second Wind Consultants, Inc.. Don and his company specialize in SBA Loan Workouts, Offer in Compromise, business debt forgiveness and solving difficult business problems in general. Follow me on Twitter or become a fan of Second Wind Consultants on Facebook.

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Firing An Unproductive Employee Is Easy, But Is It The Best Route To Take?Here is a concept many will disagree with: Any failure of a subordinate is really the failure of a manager. How did the manager fail? Why would I claim it was the manager’s responsibility?

Simple. It is the manager’s job to train, support and to not quit on an employee who is not performing as well as desired. As long as the employee is doing what was asked, following the guidelines and performing to the required standards of your company, the quality (or lack thereof) of their performance is a training issue… most of the time.

Yes, it is easy enough to say the employee flunked or did not perform well enough so you should fire him and get a new one. There are, however, a few things to consider. First, the time delay and costs associated with this decision since you now have to let the person go, advertise and hire a new employee and then train them, not really knowing how the new employee will work out until you see their performance. This is very time-consuming and wasteful, extremely expensive in terms of lost opportunity, downtime, training efforts, etc. It will probably also cost you far less to train more effectively than to fire, rehire and train again. And how do you know that the same training program previously utilized (and likely a failure in and of itself) will work any better this time?

Additionally, what message does this send to the rest of your employee base? Perhaps it is the wrong message, as such actions demonstrate lack of care and lack of effective training and lack of any loyalty from the employer. The message it sends is that anyone could be axed next, and that’s not a good morale booster. Leadership is achieved by fear or respect. I believe the latter works better.

Alternatively, with a demonstration of support, better training, extra effort and focus on bringing the employee’s skill set up to higher standards, you have shown you will not easily quit on a person. You care for your employees and will fight for their success which, in the end, is really a fight for the company’s success. This breeds employee loyalty, commitment and overall success.

This also creates an employee who will return the support by doing his best to improve his skills. Demonstration of support leading to an improved employee equals a better company, a happier workforce, more dedicated and loyal employees, higher standards for the company and a recognition that success is the product of everyone in the company as a team, not individual accomplishments with the weaker employees being weeded out and new ones hired.

Yes, it is easy to say “You failed, now leave.” It is harder to say “You are not meeting our goals; let’s see how we can support your success.” It is, however, a better and more efficient path to take. This does not mean you should just ignore low performance and wait for the employee to get better. It does mean doing something proactive to support growth and development. If you continue to do the thing that caused your employee to fail, you will only get more failure.

Now, it should be noted that if an employee does not show up for work, or is not doing the work, or is somehow violating the basic rules of the company, then the employer has a right and obligation to terminate. However, if the failure is performance-based, then retrain, train better, find the way to support success, as it pays dividends.

About Don Todrin

Don Todrin is the CEO and Founder of Second Wind Consultants, Inc.. Don and his company specialize in SBA Loan Workouts, Offer in Compromise, business debt forgiveness and solving difficult business problems in general. Follow me on Twitter or become a fan of Second Wind Consultants on Facebook.

Test, Test, Test Or Fail, Fail, Fail In Today's Tougher Market.In today’s new business environment you must test everything you do to determine if it is the best strategy and to know where to put your effort and resources. Business is far too competitive; profits are slimmer, revenues are down and consumers are more demanding and critical. You must become better to win in this environment. It is time to find out what works and what doesn’t work without simply relying on your gut feeling or intuition, without relying on the way business has always been done, or on the way your competitors or “the industry” does it.

With the advent of Google analytical tools and other programs offering means of measuring and quantifying information, unlimited options can be tried and success can be measured and compared without making major investments and/or expensive mistakes. For example, wouldn’t it be nice to know what your likely percent of success will be after your third sales attempt? Or what happens after any number of variables are considered, tried and measured and then compared with other efforts?

You can—and should—measure the success of everything you are doing and then, with empirical evidence, decide where to best invest your efforts and resources. This is how to do business in this recession. If you are still making decisions based on your unproven opinions and feelings, you are playing Russian Roulette with your business.

About Don Todrin

Don Todrin is the CEO and Founder of Second Wind Consultants, Inc.. Don and his company specialize in SBA Loan Workouts, Offer in Compromise, business debt forgiveness and solving difficult business problems in general. Follow me on Twitter or become a fan of Second Wind Consultants on Facebook.

Why Is It So Uncomfortable For Many to Collect Past Due Receivables?I have felt this pain myself and have considered its source and reasons and have come to the following conclusion:

It is all about NOT being emotionally self-sufficient, meaning, we frequently allow the emotions of others to dictate how we act. We do not want people to dislike us (or, better stated, we want people to like us) and if we sense that collecting a receivable may be uncomfortable for the person we are collecting from, and if we allow this to interfere with our business process, we are allowing this emotion to interfere with our success. This causes our businesses to experience real pain—cash flow pain—but we are all more concerned about whether or not people like us and therefore, rather than risk alienating we accept late payments. This does not work at all.

It is important to get over this hurdle; if it is controlling you in this situation it is going to control you in other situations and it is an issue you must get in front of if you are to be successful. There is no room for emotional dependence in the business arena. We can, and will, care about the other person but we cannot let it control us.We must make decisions based on legitimate business principles not emotional needs. It’s worth noting, hiring and firing is another area where emotional self-sufficiency must be developed and practiced to avoid costly mistakes.

Furthermore, if there is risk in losing a client because you asked him to pay an invoice for goods or services he received, then this is not a client or customer you should value and the sooner you remove them the better you are. Payment occurs if a client is satisfied with the goods and services. If they are not satisfied, they should not pay and you should deal with this problem. If the bill is not paid because the customer is simply taking advantage of you and you are letting him by not holding him to his commitment, then what is the point of valuing this relationship as it is built on disrespect? Why ship if you are not going to be paid as agreed? Business must be a two-way street, not all for one and none for the other.

In short, you’ve built and delivered the item, or you’ve provided the service; for a client to not pay you is the same as stealing your time, effort, expertise and product. You still had to pay the overhead and then for the product or service. Why would you condone this and continue to work for a person who treats you in this manner?  Beats me. There is no respect there.

You need to stop this bad practice, even if it means losing “good” clients who pay very late; they are not good clients. Collect your receivables on time or cease to do business with these abusers. Otherwise you’ll soon find yourself out of business.

About Don Todrin

Don Todrin is the CEO and Founder of Second Wind Consultants, Inc.. Don and his company specialize in SBA Loan Workouts, Offer in Compromise, business debt forgiveness and solving difficult business problems in general. Follow me on Twitter or become a fan of Second Wind Consultants on Facebook.

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