Budgeting and Goal Setting

Three times in the last week I've talked with people that have told me "I don't set goals" or "I don't believe in goals". When I talked with them further, they said things like: "Goals don't work for me" "I don't believe in running a business like the "unethical slugs" [edited for PG audience] on Wall Street" "Goals are unrealistic, I find them deflating and provide me with negative energy" "Goals, that is old school".    My personal guess is that even if you say "I don't believe in goals" you are doing some planning in the back of your head. My personal challenge to anyone is: "if you have gotten to where you are today without a plan, or goals or a budget, what would the next 12 months look like with just one of those?"    This week: How to start thinking about a budget. Decide to do it - important first step because you have to know why you are doing it. This is where a desired outcome (another phrase for 'goal') comes to play. Maybe you just want to go on a vacation. Maybe you want a new piece of equipment for the business. Maybe you just want to sleep better at night. Find a visual of your goal and create a quantity (how many $, sales or hours to achieve it). Get someone else involved. If this is a business budget, maybe your accountant or controller can be of help. If you are working on a personal budget, your spouse or partner will be a likely choice. Get some historical data. With online banking, it is relatively easy to get the details of past spending and where it went. Don't forget, credit card statements can help identify where the money went, too. Watch your money like your life depends on it. Think like you are the godfather of your money - protect it from the vultures of waste and whining. Budget for the unexpected. If you budget a surplus each month for "emergency spending", unless you have an emergency every month, this may need to land in a savings account. If you have an emergency every month, we might want to call that a "monthly expense". Be reasonable. If gasoline goes up, you will still need to go to work. Budget expenses that vary with seasons and political shenanigans accordingly. Next week: Tips to make a budget work without feeling like you are on restriction!    --Linda Fayeweather Changing Lanes LLC Like us on Facebook Follow us on Twitter

Running a Small Business - The Seven Fatal Mistakes

There is no such thing as guaranteed success in any business. But there are things that you can do that will guarantee failure. Here are the seven of them. 1. Inexplicitness. Success in business and life has never been achieved through vagueness. Explicit objectives are the drivers of achievement. Setting out clear goals for your business allows you to develop strategies to achieve your goals and to create plans which will ultimately drive your business to success. Without goals, strategies and plans, you are just depending on luck- and how has that worked for you so far? 2. Apathy. Few human activities require a greater commitment than operating a business. Success without commitment just doesn't happen. And apathy for your business will mean commitment is impossible. Commitment requires passion. 3. Pride. Pride in your business is a good thing, but being so proud that you don't ask for advice or help will seriously limit your ability to grow. Successful business owners surround themselves with smart people. 4. Inactivity. Business is generated through taking action. And the best idea in the world just remains an idea until someone takes action on it. There is no return from inactivity. 5. Non-perseverance. Giving up at the first hurdle will never result in success. The chances of success without some disappointments are low. Thomas Edison tried 10,000 different filaments before he invented the light bulb. Perseverance is essential for success. 6. Guessing. If you do not measure the response of each action and tactic of your business, from marketing to service delivery, you are just guessing about what is working and what is not. This means that you will be making bad decisions on what you should stop doing, what you try, and what you should change to improve. 7. Disorganization. If there is no organization in your business, you will have no control over your expenses, you will lose efficiency, and your clients will go to someone who can provide reliable service. Systems ensure that your services are provided consistently following your best practice, no matter who is providing your service. They eliminate the cost of non-compliance, and ultimately create a saleable asset of your business. Without systems, your business will always depend on you being there and you will forever be reacting to events and fighting fires. Such a business has no long term future. While running a successful business is not easy, there are rules that you can follow that will almost certainly increase your chances of success. And there are also sins that will guarantee your failure. Copyright 2011 Dr Greg Chapman, editor of the Australian Small Business Blog. Visit http://www.gregchapman.biz

Labor Day - Poems and Haikus for Business & Laughs

"A hundred times every day I remind myself that my inner and outer life are based on the labors of others." --Albert Einstein

"Thank you to all those people who labor and get very little recognition. This is your day! If you are working today, thank you again!" --David Bodner
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Labor Day is here and fall is in the air. Thoughts drift to education as yellow buses began showing up on corners everywhere. Looking to improve your business sometimes means improving you and your employees' outlook and education is often the key. Check out your local schools, community college and YES, the bottom of this e-zine for education ideas that will propel your business to new levels. Enjoy the poem and humor below as we remember that the fruits of all labors need to be recognized and praised today.
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Purpose
by Edgar Guest (1881-1959) Michigan Poet Laureate and worked for the Detroit Free Press until his death. He was my Grandfather's and mother's favorite poet and many of his great poems were read to me.

Not for the sake of the gold,
Not for the sake of the fame,
Not for the prize would I hold
Any ambition or aim:
I would be brave and be true
Just for the good I can do.


I would be useful on earth,
Serving some purpose or cause,
Doing some labor of worth,
Giving no thought to applause.
Thinking less of the gold or the fame
Than the joy and the thrill of the game.


Medals their brightness may lose,
Fame be forgotten or fade,
Any reward we may choose
Leaves the account still unpaid.
But little real happiness lies
In fighting alone for a prize.


Give me the thrill of the task,
The joy of the battle and strife,
Of being of use, and I'll ask
No greater reward from this life.
Better than fame or applause
Is striving to further a cause.
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Computer Haikus
Everything is gone;
Your life's work has been destroyed.
Squeeze trigger (yes/no)? -- David Dixon

I'm sorry, there's -- um --
insufficient -- what's-it-called?
The term eludes me ... -- David Carlson

The code was willing,
It considered your request,
But the chips were weak. -- Chris Walsh

Printer not ready.
Could be a fatal error.
Have a pen handy? -- Barry L. Brumitt

Chaos reigns within.
Reflect, repent, and reboot.
Order shall return. -- Rik Jespersen

Login incorrect.
Only perfect spellers may
enter this system. -- Suzie Wagner

With searching comes loss
and the presence of absence:
"My Novel" not found. -- Simon Firth

Yesterday it worked
Today it is not working
Windows is like that -- Rahul Sonnad

To have no errors
Would be life without meaning
No struggle, no joy -- Margaret Segall

No keyboard present
Hit F1 to continue
Zen engineering? -- Cass Whittington

Your file was so big.
It might be very useful. But now it is gone. -- David J. Liszewski
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Upcoming Workshops
Linda Fayerweather MBA, EA, of Changing Lanes LLC will teach an IRS promoted workshop, Saturday, November 12; 9:30AM to Noon; Toledo Lucas County Public Library Main Branch. The topic will be Small Business and Taxes and include updates on some of the most recent tax changes. There is no charge for this workshop although registration is required. Call Barb Stein, Business Librarian, to register: 419/259/5244. Linda studied to be an Enrolled Agent, a federally-authorized tax practitioner, who has technical expertise in the field of taxation to further help the small business clients Changing Lanes coaches.

Details and Updates on classes and workshops available at: Changing Lanes Classes
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Download a TIM WOODS Poster for Your Office
Available for you - an 8.5X11 poster about the 8 Wastes.

Click here for your own poster -- MUDA
this is a PDF
Have a profitable week.
Monday Morning Motivators is a short burst of business tips you can use through out the week. Our reporters, authors and correspondents strive to present insights to make your business shine.

Linda Lucas Fayerweather EA, MBA
Owner of Changing Lanes LLC, a productivity coaching firm since 1998
Like us at www.facebook.com/Changinglanesllc for updates and tips.
Copyright 2011

5S + 1 = 6S

Last week we talked about TIM WOODS and the 8 Wastes inherent in most businesses. Now that you are thinking about waste, the 5S+1 of lean may help keep some of that waste from resurfacing. Over the last 3 years I've talked about the 5S many times so this is a review plus an important addition. If you ask yourself "How can I improve efficiency, work organization, quality, safety and housekeeping and protect my investment at the same time?" then 6S may help you simply be better at keeping "it all together". Based on Japanese words that begin with 'S', the 5S Philosophy focuses on effective work place organization and standardized work procedures. 6S adds Safety to the mix. 6S simplifies your work environment, reduces waste and non-value activity while improving quality, efficiency and safety. We know that goals never happen without plans and the first plan may be to implement the 6S's in your office which are: Seiri = Sort or Tidiness. Examine everything on your desk and sort by use: daily or weekly. If it isn't used weekly, it needs a new location. Being able to find anything in 5 seconds will save time and satisfy customers. What's leftover. . . when in doubt - throw it out! Seiton = Simplify. Keeping everything in its place and organized in a useful manner. Misplaced items waste time and drain energy. Seiso = Sweep or Cleanliness. Cleaning includes getting things cleaned and keeping them clean, first and foremost, but also preventing messes. An uncovered coffee mug is often a disaster just waiting to happen. Seiketsu = Standardization or Sustain. Developing standards and procedures to maintain the appearance is always good and often reduces stress. Standards can also help everyone recognize when "stuff" is out of place. Shitsuke = Self-Discipline. Developing the habit and reviewing what works is part of self-discipline and sustaining change. When things change, sometimes habits have to change, too. Safety = Always arrange work with safety in mind. Maintaining a safe work place and striving for zero accidents and injuries means eliminating hazards. This is respect for individuals and assets - it is that simple.

Download a TIM WOODS Poster for Your Office Available for you - an 8.5X11 poster about the 8 Wastes. Click here for your own poster --> MUDA this is a PDF

Evict Waste and Invite TIM WOOD to Your Culture

Join Monday Morning Motivators

With our economy still lagging in the Midwest and many small business owners asking "When will customers start buying again?", if a business owner wants to increase profit without raising prices while keeping existing customers, it is time to invite Tim Wood to the party.

Before we go any further, as a student and teacher of Lean for over 10 years, I know the Seven Muda - 7 Wastes. My son, Carl, who is a Research Scientist at Owens-Illinois told me about TIMWOOD, the mnemonic for remembering these 7 wastes - someone was clever.

Transportation - Any unnecessary movement of material, documents, or people.
Think multiple trips = wasted time = wasted transportation.

Inventory - Work in process, incomplete work and work no longer in demand by customers are all suspect. Years ago an HVAC business owner showed me a storage garage filled with furnaces purchased on discount volume. The inventory value of these 2 year old furnaces equaled a Rolls Royce! I'd rather have a Rolls in the my garage.

Motion - Are you switching between computers, moving people around the office for different tasks? What movements in your office aren't adding value that customers care about?

Waiting - Queues, bottlenecks and traffic jams are all signs of waiting. Knowing where and WHY a bottleneck occurs is the first step, changing habits and patterns to ease customers' waiting or eliminating wait is second. And what about those employees standing around talking amongst themselves. . .what are they waiting for?

Over-processing - Is adding more value than the customer requested or expects. Examples are:
1) Sending a paper copy of document emailed via PDF.
2) Music CD packaging.
3) Mail order blue jeans with packing peanuts.
Where is the value? Do they have cost?

Over-production - Production of product or service before demand. Auto manufacturers are famous for Labor Day Sales to move old inventory before new models arrive. In offices, printing forms before the customer needs often leads to waste when forms are revised.

Defects - Mistakes, errors, or products/services that don't conform to the customers' expectations. Yes, mistakes will happen and they should always be a learning opportunity. Too many mistakes will almost surely lead to too few customers.

If you believe you have NO waste, before you start the celebration do two things.
1. Call a dozen past customers.
2. Examine what is in your dumpster.

You may be surprised! Take a walk around your business and look for Timmy hiding in the corners.

Linda Lucas Fayerweather EA, MBA
Owner of Changing Lanes LLC a productivity coaching firm since 1998
Like us at www.facebook.com/Changinglanesllc   for updates and tips.