Strengthening your business in 2023

We’ve all heard the “experts” and others who tell us we are in, or entering, an economic recession. Whether we are or aren’t, the best time to strengthen our business was yesterday; and the second-best time is today!

Most business owners have a strong desire to improve their business. A strong business is one that can withstand the ups and downs of an economic cycle; it can replenish itself through profits; it’s agile, flexible, and communicates well; and it can support the owner’s lifestyle.

A strong business is based on a true business opportunity and a sound business model. While a business opportunity is shaped by the market environment, a business model is shaped by the owner. An enlightened way of looking at and defining your business model can be found at https://canvanizer.com/new/ business-model-canvas

There are at least five keys to building a strong business:

• The owner’s ability to lead AND manage

• A focus on customer needs and wants

• Systematized processes and procedures

• Hiring and investing in the right people

• Managing cash well!

Lead And Manage

Whether your business consists of one person or many, a clear vision and mission is imperative. These drive goals and objectives that are timely, measurable, and accountable. Amid many distractions, it keeps the owner focused. If the owner can effectively engage employees to embrace the vision and achieve company goals, the probability of success is high. In fact, the most important things an owner can do is stay focused on what the company does well and help employees do their best work. These concepts are driven home in books like “Good to Great” by Jim Collins and “The E-Myth Revisited” by Michael Gerber. One adage that is worth minding as a business owner:

We manage things and we lead people.

Maintain A Customer Focus

A customer-driven business is one that is synchronized with what customers really want and need. Most important is what customers and prospective customers value. These can be many things: a fair price, convenience, fast turnaround, high quality, etc. The reward for meeting their needs is predictable sales and growth. However, “customers” include more than the buying public. They may include shareholders, suppliers, bankers, employees, and others who rely on an owner’s ability to keep his or her promises. A strong business balances the needs of all these “customers.”

One of my recent reads, “The Bezos Blueprint” by Carmine Gallo emphasized the obsession for serving the customer that is behind every decision – well worth the time to consider.

Use Systematic Processes And Procedures

Customers don’t really care how it’s done; they just want their needs met. However, to meet the needs of everyone – especially shareholders – production and delivery of goods and services must be efficient. The process of creating value to customers is based on a total management system originally used by Toyota and described in “The Machine that Changed the World” by James Womack, Daniel Jones, and Daniel Roos.

A useful tool for those looking to reinvigorate their business is the book by Eric Ries, “The Lean Start-up”. This work describes approaches to innovation and time-to-market such as “minimum viable solution” and “opportunistic adaptation”. This is a good read for sparking your thought processes and encouraging you to think differently.

Hire Well

An owner soon realizes that building a strong business is tough to do alone. At a minimum, an external team including a business adviser, banker, insurance agent, certified public accountant, and attorney may be required. At some point, though, employees will be needed to manage day-to-day functions as the business grows. An owner needs to assemble and lead people to apply principles and practices systematically and coherently. The key to assembling the right people is hiring well. This means selecting people for their talents and building on their strengths. Once people have joined your team the next order of business includes investing in their talents, listening to their thoughts, assisting them in their jobs, and rewarding them for work well done. In the book, “First, Break All the Rules”, authors Marcus Buckingham and Curt Coffman share the results of in-depth interviews revealing how the world’s greatest managers use these techniques.

Manage Your Cash

Every strong business depends on a predictable, consistent cash flow. A profit plan measures true profitability and is the best measure of efficiency. However, a cash budget that predicts

For more Petrick, see page 17 and monitors cash flowing into and out of a business is a good measure of sustainability. If an owner can predict and budget cash flow, then he or she can make better decisions on how and when to use cash. When businesses extend credit to buyers, incoming cash lags sales. When sales are made, assets (like inventory or labor) are required to complete the transaction and these assets require cash. Therefore, a lot of cash is going out and not a lot of cash is coming in throughout seasonal or cyclical fluctuations. Since the business owner can’t pay bills with negative cash, he or she must either borrow cash or inject it. Managing cash with a budget helps the owner predict cash shortages so funds can be arranged (often with a bank loan or line of credit) to fill the gaps. When collections create excess cash, the short-term loans can be paid back. Even profitable businesses can go bankrupt if they haven’t balanced their cash flow cycle.

While many factors contribute to building a strong business, these five deserve special attention. Strong businesses support their local communities and are the foundation upon which the economy grows.

These and other strategies will help you re-examine your business in 2023 and make your business prospects better than ever!

This article was prepared by Jerry Petrick, senior certified business adviser for the Washington State University Small Business Development Center (SBDC). The SBDC provides confidential, no-cost, business advisory services by appointment. Jerry can be contacted at jerry.petrick@wsbdc.org

February

1 Education Foundation, 8:30am, Zoom Your Chamber Connection radio show, 6pm, KEDO 1270 AM or 99.9 FM

2 Chamber Ambassadors, 7:30am, Canterbury Park Ribbon Cutting, 11am, Shinju Dojo Aikido

8 Your Chamber Connection radio show, 6pm, KEDO 1270 AM or 99.9 FM

9 Ribbon Cutting, 11am, Canopy Mortgage Lower Columbia Professionals, 4pm, TBD

10 Ribbon Cutting, 11:30am, Bunn and Done Up, Up and Away, 6:30pm, Grant's-Monticello Hotel

14 Ribbon Cutting, 11am, Discovery Coast Media Chamber Executive Board, Noon, Mill City Grill

15 Your Chamber Connection radio show, 6pm, KEDO 1270 AM or 99.9 FM

16 Ribbon Cutting, 11am, Emerald Haven

21 Business After Hours and Ribbon Cutting, 5:30pm, Three Rivers Law Center Chamber Board, Noon, Mill City Grill 22 Your Chamber Connection radio show, 6pm, KEDO 1270 AM or 99.9 FM 28 Bill Marcum's last day

1 Education Foundation, 8:30am, Zoom

Your Chamber Connection radio show, 6pm, KEDO 1270 AM or 99.9 FM

2 Chamber Ambassadors, 7:30am, Canterbury Park

3

Small Business Boot Camp Boardmanship Series, 7:30am, American Workforce Group

8 Your Chamber Connection radio show, 6pm, KEDO 1270 AM or 99.9 FM

9 Ribbon Cutting, 11am, A to Z Options Lower Columbia Professionals, 4pm, TBD

10 Small Business Boot Camp Boardmanship Series, 7:30am, American Workforce Group

14 Chamber Executive Board, Noon, Mill City Grill

15 Your Chamber Connection radio show, 6pm, KEDO 1270 AM or 99.9 FM

17 Small Business Boot Camp Boardmanship Series, 7:30am, American Workforce Group

21 Chamber Board, Noon, Mill City Grill

22 Your Chamber Connection radio show, 6pm, KEDO 1270 AM or 99.9 FM

24 Small Business Boot Camp Boardmanship Series, 7:30am, American Workforce Group Quarterly Membership Luncheon, Speaker: LCC President Chris Bailey, 11:45am-1:15pm, TBA

29 Your Chamber Connection radio show, 6pm, KEDO 1270 AM or 99.9 FM

Building Bridges Business and Tourism Expo, 3pm, followed by Business After Hours, 5:30pm, Cowlitz County Event Center

31

Small Business Boot Camp Boardmanship Series, 7:30am, American Workforce Group

New Members

Add your business to our growing membership. Call 360-423-8400 Today!

Membership packages to fit your needs Business Association with opportunities to promote trade through Chamber socials, special events and committee participation.

• Annual Meeting and Banquet

• Networking Events

• Committee Participation

• Business Contacts

• Quarterly Membership Meetings

• Civic Representation

• Monthly Business After Hours

Business Services include marketing for your business, referrals and access to Chamber publications and research data.

• Mailing Labels

• Membership Window Decals

• Member Referrals

• Ribbon Cutting

• Website Links

• Member to Member Discounts

• Membership Directory

• Tax Deduction

• Newsletter

• Business Card Display

• Use of Chamber Logo

Representation through action committees, candidate forums and up-to-date action alerts.

• Legislative Representation

• Issues Tracking and Information

• Task Forces

• Candidate Forums

• Legislative Update Breakfast

• Demographics Publication

Membership Packages

Basic • $275 or $26 per month

Bronze • $500 or $46.66 per month

Silver • $1,000 or $86.33 per month

Gold • $2,500 or $211.33 per month

Platinum • $5,000 or $416.66 per month

Diamond Club • $10,000 or $834 per month

Nonprofit • $180 or $18 per month

Look Who Joined in January

Canopy Mortgage

Nathan Douglas

1339 Commerce Avenue. Suite 209

Longview, WA 98632

971-212-2800 natedouglas@hotmail.com

Emerald Haven

Amy Covey

780 Ocean Beach Highway, Suite B

Longview, WA 98632

360-353-5746 emeraldhavengames@gmail.com

Bunn and Done LLC

Aaron Bunn

Kelso, WA 98626

360-560-2006 bunnanddone@gmail.com

Grant’s Restaurant

Grant Hadler

1401 17th Avenue

Longview, WA 98632

360-442-1011 granthadler@yahoo.com

Alex Brehm LLC Instructor and Speech and Debate Coach