Okay, we can all agree that times are tough. Everyone feels the pinch. Businesses are all scrambling to hold on to their customers and to reduce their costs so that they will be around when things get better. What else can we do? How can we use this slow-down to take advantage of this extra time we have on our hands?

The first suggestion is to use this valuable gift of time to increase your skills and knowledge in areas that will benefit your long-term business viability. Time is one of your most valuable commodities. Use it to learn something new.

• Take that course on marketing, or graphics, or computer design you’ve been thinking about
• Upgrade your professional certification by taking a continuing education course
• Join a local professional organization and begin networking with other community businesses who are facing the same tough times
• Take time to analyze your profit and loss statement so that you really understand where your income comes from and where it is being spent
• Review your accounts receivable or payable, and come up with a better management process that will improve your financial position

Secondly, take time to know your customers and their needs.

• Review your customers so that you know which of them are assets and which may be costing you time and money
• Survey your customers to find out if they are satisfied with the services they receive from you
• Ask them if there are services they need which you are not currently providing

Thirdly, take time to know your employees and enlist their support and energy to provide outstanding customer service.

• Implement an employee evaluation process that helps them set individual goals that will advance their skills and career opportunities
• Survey your employees to find out if they are satisfied with their working environment
• Ask them is they see any way in which services to customers could be improved or made more efficient

Lastly, use the information you have gained to make your business better—for you, for your customers and for your employees. Focus in on one or two things that you think will have the greatest impact and implement your new ideas. Make sure that you take the time to identify some tangible way to measure the effectiveness of this change. Monitor how the new idea works and modify your process as necessary to achieve your objectives. When the economy begins to rejuvenate you will know more about your business and be in a better position to take advantage of the new growth. Most of all you will have used your time effectively and saved yourself from hours of brooding.

Tim Sanders Makes the Point that Good Deeds and Social Responsibility Can Go Hand-in-Hand with Good Business

Saving the World at Work, What Companies and Individuals Can Do to Go Beyond Making a Profit to Making a Difference, a book by Tim Sanders

I know that many of us who operate small businesses are focused on how to increase our efficiency and productivity in order to stay in business at a time when we are being challenged from all directions. Our customers are feeling the economic pinch of hard times and don’t want us to raise our prices. The cost of all of the supplies and services we use are increasing due to higher fuel costs and a reduction in volume. Perhaps the last thing we want to discuss is “how we can make a difference.” Okay, so take a deep breath and relax. Making a profit and making a difference are not mutually exclusive. In many cases, they go hand in hand.

Saving the World at Work is an easy read with lots of examples of companies that have turned themselves around by pursuing strategies that were good for their customers, their employees, their communities, their suppliers, and yes, good for planet Earth. One of the most striking things about the “Responsibility Revolution” is that the changes we can make often lead to cost savings that we might not have expected. When we change how we think about the various aspects of our businesses, new possibilities emerge. When times are difficult a change in perspective can often help.

If anything, the current downturn in the economy, should have reminded us that our economic fates are inter-related. If my business is doing poorly, then I will be purchasing fewer goods and services from my suppliers. If the school system in my community is failing, I will have a more difficult time finding qualified employees. If the unemployment rate in my community is high, then there will be fewer potential customers for my services or products. Use the current economic difficulties as an excuse to explore different aspects of your business. Tim Sanders offers many practical suggestions for employees and owners to evaluate their businesses. This book is highly recommended for business owners who want to keep their businesses vital in the newly emerging economy.

This article may be reprinted with this inclusion: Mary Hinkley is the owner of Small Business Concerns, a business designed to help small business owners address bookkeeping and accounting requirements with the resources they have available to them. The emphasis is on creative use of resources to maximize their efficiency and reduce costs. Small Business Concerns is located in Tallahassee, Leon County, Florida. http://www.smallbusinessconcerns.com.

Abstract:

Once again Tim Sanders draws our attention to the social components of business. Saving the World at Work provides incentives for employees to become more engaged in the success of their businesses and reasons for the savvy business owner to explore ways in which his or her business can “make a difference.” Good deeds go hand-in-hand with good business in the “responsibility revolution.”

Robert P. Miles Examines the Investment Methods Used by Warren Buffett to Create and Manage His Wealth

Warren Buffett Wealth, Principles and Practical Methods Used by the World’s Greatest Investor, a book by Robert P. Miles

In the chaos of the current market, investors are running for cover. Average people with money invested in the stock market are watching their savings not so slowly dwindle away. It’s time to take a few deep breaths and attempt to push the fear away. Warren Buffett would remind us that we make decisions about our investments, with our heads, not our emotions.

Robert P. Miles takes a look at Warren Buffett, the person, and his amazing success building Berkshire Hathaway from a worn out textile business into a capital generating machine that earns about $6 billion in annual earnings. These earnings are used to invest in new businesses that will add to the value and earnings of the company. According to Miles, Warren Buffett’s value based investment method, his integrity, his frugal lifestyle and his work ethic all contribute to this success. The message of the book is not that we can all be Warren Buffett, but that we can all benefit from examining his investment principles, if we are inclined to do the work.

The book details the principles of value investing. Basically this method of investing changes the focus on a company from the growth in its stock price, to the underlying value of the business itself. Do the company’s assets outweigh their liabilities? Does the company have honest and competent management? Does the company produce products or services that have staying power? Is this a business you would want to own and keep? Warren Buffett tries to identify a small number of companies that he wants to buy and own for a lifetime. His focus is on the business as a whole. It is not focused on trying to make money by buying and selling the shares of stock as they fluctuate in price. That works for Warren Buffett who can afford to buy whole companies, but not very practical for the rest of us, right? Miles argues that the principles of investing remain the same even if we are only purchasing a small part of a business.

There are many insights and tips on how to improve your investment quotient even if you are the kind of investor that feels better letting a professional handle your investments. It helps you understand how the market works and how companies build wealth. At a time when many investors have lost their faith in the integrity of large corporations, this book reinforces the idea that there are still companies that operate to the benefit of their shareholders. You do not have to be Warren Buffett to identify some of these companies, if you are willing to read and do the research. Much of what you need to know is in the public domain if you take the time to track it down. Warren Buffett would encourage you to make a few good quality investments in businesses that you have taken the time to research and understand.

Finally, Robert Miles, emphasizes that it is possible to build wealth without compromising your principles. This book demonstrates that creation of wealth by hard work can benefit management, workers, stockholders and the society at large in what Miles describes as the “circle of wealth.” Read as much as you can about businesses you understand, discover what kind of an investor you want to be and develop your own investment philosophy. This book can help you do that.

Abstract:

Warren Buffett does not create and run businesses, but he has an uncanny ability to identify excellent businesses with great management. He buys these existing businesses, with their management intact, and encourages them to keep up the good work. This book examines his history, his methods and his investment philosophy.

Malcolm Gladwell Explores Little Things That Can Determine How Well Your Message is Heard.

The Tipping Point, How Little Things Can Make a Big Difference, a book by Malcolm Gladwell.

Sociology studies can make for slow reading. Malcolm Gladwell has taken care of that problem by setting the stage with stories. The Tipping Point is a book of stories, illustrating the influences that cause an idea, an illness, or a product to spread in an epidemic-like fashion across the population. The focus of the studies is to identify the specific things happening at that moment when the change occurs. One moment there are just a few people engaged in this idea, illness or product. The next moment, it is speeding across the social landscape and seems to have developed a life of its own. There are epidemics of influenza. There are epidemics of fashion. We have all witnessed the blazing speed with which a single product can catch everyone’s imagination. There are also epidemics of social change, when ideas and information that have been around for a long time finally hit the “tipping point” and people seem to hear the message for the first time.

The applications of Gladwell’s ideas are broader than the business community. The author suggests that there are certain inborn characteristics of people that must be addressed when you want an idea to take hold, or when you want to contain and limit a specific epidemic like teenage smoking. So whether your interest is in marketing a new widget or encouraging people to support new green technologies for energy production, there is something for you in this book.

The Tipping Point considers three basic rules of epidemics:

1. The Law of the Few: The emphasis here is on the messenger. There are a few very special messengers who can connect with and influence the many. Three different types of people with special gifts can affect the swiftness with which the message spreads and the creditability of the message. These three messenger groups are Connectors, Mavens and Salesman. The Connectors and Mavens provide access to people and information. The Salesmen are those individuals who have a unique ability to get others to see their point of view.
2. The Stickiness Factor: This factor relates to the message itself. The quality of the message may affect how well the message is received. Simple changes in the wording and presentation of the message can determine if it is memorable.
3. The Power of Context: The situation in which the message is delivered may dramatically change people’s behavior. These changes are often not easy to predict based on what we might think would be logical responses.

The stories told by Gladwell describe specific epidemics and then provide studies that explain what is going on in each situation. It is the stories that catch and hold the readers attention. They illustrate the argument that small changes in a message or its presentation can determine whether it connects with people. One of the most compelling ideas presented is that our logic about causation is often misguided. If you want to successfully connect with a specific group of people you need to test your perceptions to make sure you have judged the situation correctly.

Whether you are interested in marketing or just a student of human nature, you will find this book worth reading. It is an optimistic view of the world in which a few individuals and a new idea can change the world.

This article may be reprinted with this inclusion: Mary Hinkley is the owner of Small Business Concerns, a business designed to help small business owners address bookkeeping and accounting requirements with the resources they have available to them. The emphasis is on creative use of resources to maximize their efficiency and reduce costs. Small Business Concerns is located in Tallahassee, Leon County, Florida. http://www.smallbusinessconcerns.com.

Abstract:

Malcolm Gladwell has written a fascinating account of the small things that can shape the way we respond to new ideas or products. The power of small changes in a message or its presentation can determine if others really hear what we have to say. From business marketing to social or educational endeavors, The Tipping Point is relevant.

John C. Bogle Finds that Value is a Important in Life, But Also in Business and Successful Investing

Enough, True Measures of Money, Business, and Life, a book by John C. Bogle.

John C. Bogle, the founder and former CEO of the Vanguard Mutual Fund Group, writes a soulful analysis of our current financial situation, including his thoughts about the historical origins of our financial systems, his role in the development of the investment fund market, and a little philosophical advice about sound investing and the meaning of life. This book probably went to press months before the stock market melt down in the fall of 2008, but its content could not be timelier. What is enough? How much does it take in money, in business or in life to satisfy our aspirations? How do we establish a balance between fulfilling our personal dreams for success and the building of a society that fosters a culture of growth that benefits us all?

Bogle tackles his subject in three chunks—Money, Business and Life. The first section on money provides a good review of investment options and practical investment advice for the average investor. His basic rules for successful investing include:

1. Have a good balance between stocks and bonds

2. Diversify your investments

3. Focus on the long term

His attitudes about business and investing are similar to what you might expect to find in the writings of Warren Buffet. In his eyes, investment is about the long term ownership of a business. Stockholders are owners of businesses and should understand something about the businesses they own. A related idea is that you as an investor should not buy stock in a company, or invest in any commodity that you do not understand. If you can’t understand it, leave it alone.

The section on business is a more detailed consideration of those things Bogle believes have lead to the deterioration of our financial system. He describes the evolution of a system that counts everything, but has lost track of the purpose of that activity. He describes a world in which the ideas of professionalism, stewardship and leadership have been lost. Many companies have ceased to be operated for the benefit of their stockholders and seem to exist mostly for the benefit of their corporate managers. CEO compensation compared to worker compensation has soared in the last quarter-century. Companies used to be considered successful if they had a solid balance sheet and earned money for their investors. Now company shares are bought and sold to earn money based on changes in the share price. Trading stocks has become an occupation almost distinct from the intrinsic value of the company whose shares are traded. Turnover in company stock can be 100% in a years time. Excessive trading increases the cost to the investor and creates a very volatile environment. Trust is the cornerstone of a healthy and successful financial system and that has been lost.

Bogle moves on to discuss life and eighteenth century values versus twenty-first century values. This, for me, was the weakest part of the book. It expresses a sincere regret for the loss of values that he feels were responsible for the growth of this nation. While he recognizes that times have been changed by rapidly advancing technology and tremendous growth, his discussions stop short of offering solutions to our current dilemma. Despite this, he makes an eloquent argument that business leaders must accept responsibility for restoring trust to the system, and must recognize that they owe a debt to society that should be repaid by giving back. Investors, business leaders and companies have to be committed to the re-building of a financial system that makes sense and can be trusted with our future.

Abstract: John C. Bogle, founder and former CEO of the Vanguard Mutual Fund Group was a pioneer in the development of index funds. In this book, he looks back at the history of our financial system and the evolution of investing. He provides basic information to help the novice investor understand investment vehicles and how the current system does and doesn’t work to the advantage of the individual investor, and to the growth of our society as a whole.