fbpx

The Square Orange Blog

Stop Micro-managing!

I had a meeting with a client yesterday. Amongst other issues we discussed the fact that even as her company grew, she had to continually look over people's shoulders, tell them not only what to do, but also how to do it in a satisfactory way. When I asked her what was a "satisfactory way" she explained that it was the way she would have done it, the way her customers had come to expect how her company would do it. She gave me an example where her version of "satisfactory" included a hand-written note to the customer the next day to see if the product met his needs and if she needed to explain any aspect of it to him. In other words quality was not a fixed value but a set of behaviours that had come to represent what the customer wanted. Only, she seemed to be the only one in the growing company who seemed to understand that, despite her experienced (and expensive) new hires. Readers will tell me this is not uncommon. When you start a small business, often you and your key team members know exactly what to do, and how to "do it satisfactorily" because you...
Read more

Change your business model with great care!

Businesses who decide to change the way they do business need to be careful of unintended consequences. They need to think of the effects to the customer first, but also to the not so obvious stakeholder groups.
For example businesses that generate significant business through referral networks need to be careful how any changes affect their referral base and not just their customers.
In some imagined country, the leading provider of accounting software to SME's is a company called Record Your Amazing Business or Ryab. Knowing that SME's made purchasing decisions about accounting software based on their accountants' opinions, Ryab provided their software free to all public accounting firms. These firms could use multiple copies of the software on a single free license as long as they used it on their own entities - clients would have to buy their own licenses, and accountants even received commissions on these sales to clients.
This was an extremely successful referral strategy to get the product in front of the ultimate customer. In short time, accountants played with the software, found it easy to use, used it in their own companies and personal business affairs and in doing so got to understand how to use it...
Read more

Client service starts in the car park

My Post Office box is at the back of the Post Office, and I need to drive around the back to their car park to access the box. Directly next to the Post Office car park are the car bays of an architectural practice, leading to their back door.
One morning, as I was parked in the Post Office car park, opening mail I had justĀ retrievedĀ from my Post Office box, I witnessed an incident that showed me that client service starts, not only at the back door, but out in the car park.
As I sat in my car opening mail, I noticed a well-dressed middle aged man smoking just outside the back door of the architectural practice. It was clearly a professional and well-branded practice as the corporate colours and logo were not only at the front, but also splashed all over the back walls and above the back door.
A car drove up and parked in one of their bays. There are about 16 bays and at 8 am half of them were empty. As the driver got out and locked his car, the smoking man walked up to him and said "No parking here".
Clearly surprised, the driver asked if there...
Read more

Financial Understanding starts with the Chart of Accounts

We are about to discuss accounting matters.
Hey, don't click past, it really is important!
Well yes, a little boring too, but sometimes you need to get into the detail of the boring to get the information you need in order to do all the glamorous stuff like building a vibrant business. In fact often you need to get into details to make sure your product or service delivers its promise. Think of a mechanic - no point creating a culture of caring for the customer if your mechanics fail to bleed the brake valves every time. Or a lawyer who's innovative and really digs deep for the client - not proofreading and the typos will get him every time.
So, one of the crucial (boring) details in any business is the accounting. You can hire a tax accountant at the end of the year; you can hire a once a week book-keeper; you can even employ a full time accounts-person and buy an expensive accounting software system; but the decision about some detail must lie with you and while you should take some of their advice, you need to decide on some key elements of your books.
The one particular aspect I want...
Read more

OTS Management