Kentucky Business Quarterly Volume2 Issue 1

KBQ

KENTUCKY

VOL 2 ISSUE 1 SECOND QUARTER • 2016

K E N T U C K Y B U S I N E S S Q U A R T E R LY. C O M

Turning Your Personal Passion Into Your Business Purpose

HEALTHY BUSINESS NEEDS HEALTHY PEOPLE

5

Essentials of a LinkedIn Profile for Business Pros

QUARTERLY

™

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Vol. 2 No. 1 Kentucky Business Quarterlyâ„¢ | 3

Staying Connected

Every issue, Kentucky Business Quarterly Magazine® will include RECENT AND RELEVANT NEWS AND INFORMATION on events and matters of importance and interest within the local business community.

All submissions free of charge!

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KENTUCKY QUARTERLY

™

CONTENTS FEATURE

14

Trainer Joe Healthy Business Needs Healthy People

6

Looking Good and Saving Money

18

Staying Connected

Turning Your Personal Passion Into Your Business Purpose

20

Buyer Due Diligence Small Business Sales

BY DEREK D. HUMFLEET 8

BY TONYA HOWE 12

NEWS • ANNOUNCEMENTS CURRENT EVENTS • TRENDS

BY MARK SIEVERS

OSHA’s New Recordkeeping Rule A massive change for many employers

BY TODD C. MYERS

22

The Five Essentials of a LinkedIn Profile for Business Pros

26

The Era of HR

28

Advertising you can Afford

30

ActionCOACH for Better Business

BY BRIAN SIMMONS

BY BRIAN WRIGHT

BY ANDREW VAN HORN

BY BOB WOODS

Brian Lord, PUBLISHER

859-368-0778 brian72676@gmail.com v

Kentucky Business Quarterly™ is Published by Rock Point Sales Marketing & Consulting LLC

Vol. 2 No. 1 Kentucky Business Quarterly™ | 5

Looking Good and Saving Money

BY DEREK D. HUMFLEET

Everybody wants to look good. And everybody wants to save money. What’s wrong with looking good and saving money? It depends (I’m a lawyer, how’s that for an answer).

You’ve all see or heard the advertisements from legal document presentation websites. Create your own will or trust for $69.99. Form your own limited liability company for $49.99. Do your own divorce for as low as $99.99. Don’t pay a greedy lawyer hundreds or thousands of dollars to draft simple legal documents.

You think “Hey, I’m smart. I can fill in a form. Is that all I have to do? Why should I pay a lawyer hundreds of dollars to draft a simple document? I can draft it and have a lawyer review it for a tenth of the normal price.”

Next time you have these thoughts good the name of the DIY legal from website and the word “complaints.” Keep in mind those people complaining probably had to go to an attorney and pay him or her a lot more money to hopefully “fix” what they created. If they had called the lawyer first, they would have saved money. Now it will cost hundreds, if not thousands of dollars instead of a couple of hundred dollars to do it right the first time.

And oh, by the way, it’s not the drafting of a document that takes so long. It’s the review, thought and revision process that

takes time. This process includes talking to the client, identifying and thinking through problems, verifying information and making sure you give the client what they need. Keep in mind, you may not know what you don’t know. A good lawyer with experience in litigation and business can help you identify what you don’t know and fix it before it becomes an issue. Trust me, it gets much more expenses to “fix” a problem once there is an issue. So while saving money is a laudable goal, make sure you are spending money wisely. While saving a few hundred dollars up front may make you look good for a while, you may not look so good when you have to spent thousands of dollars to fix the problem.

Speaking of looking good, does your lawyer want to look good? Of course he or she does. However, looking good becomes a problem when you favor it above everything else. Numerically speaking, most legal questions are in black and white.

Don’t steal from your customers or your company. Don’t murder your spouse. Don’t lie to your customer in order to make a sale. But a significant number of cases do not have a straightforward legal answer.

That’s where lawyers come in. If the answer was clear you wouldn’t need me. Then there is also the whole gathering evidence process called discovery. What does any of this have to do with your lawyer looking good, I’m glad you asked.

If the parties cannot come to an agreement, cases are decided by a judge or a jury. While a judge or jury may be qualified to make a decision, it is impossible to predict exactly how they

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will rule in a case contested enough to get to them. All lawyers have had cases they thought were sure winners, turn out to be a loser (If they haven’t they are a very young lawyer or they are not being truthful with you, either way proceed with caution).

This means sometime you lawyer needs to take a chance. If they take a chance and they are wrong, they may not look good.

In fact, they may look downright silly. But so long as your lawyer is acting ethically, sometimes its ok to swing and miss. If your lawyer only makes arguments they know will win, maybe they aren’t being aggressive enough.

Think of it this way, every time one lawyer has an easy argument, a lawyer on the other side has to make do with what he or she has. Face it, the facts and law are not always going to fall in your favor. Is your lawyer willing to take a chance on losing? If not, you may want to find another lawyer.

Relatedly can your lawyer get answers from someone who doesn’t want to give you an answer. Consider this colloquy: Q: When you saw the police car go through the red light it did not have its emergency lights on did it?

A: There was so much going on, I just, I don’t really . . .

Q: Well, you were at the intersection, right?

A: I mean, we were in the car, I’m not sure what anyone else saw.

Q: Sir, you were at the intersection, right?

A: I don’t, um, yes.

Q: So you were at the intersection, right?

A: Yes. Q: You saw the red light, right?

A: I was in the car, that’s correct.

Q: You at the intersection and saw the red light, right?

A: Um, yes, I was in the driver’s seat, yes.

Q: And you were at the intersection and saw the right light, right?

A: Yes, uh, yes.

Q: And you saw a police car speed through the intersection, right?

A: Yes. Q: And the light was red, right?

A: I, well, I’m not sure what anyone else saw.

Q: I’m talking about you, sir – you were in your car at the intersection and saw a police car speed through the red light, right?

A: I did see, yes, I could see.

Q: And the police car did not have his lights on, right?

A: Uh, yes.

Sometimes your lawyer needs to take risks in order to pin down a reluctant witness. These conversations can be uncomfortable. Sometimes you need to have uncomfortable conversations in order to win a case.

Does your lawyer want to look good above all else?

You may need to find a new lawyer.

ABOUT THE AUTHOR Derek D. Humfleet is a partner with Braden Humfleet & Devine, PLC and typically represents individuals, entrepreneurs, start-ups and small businesses with legal problems ranging from business and construction disputes to unfair business practices to issues with governmental regulatory agencies. He also helps creative professionals make wise choices in complex legal environments.

ON THE WEB: www.bhdlaw.net

It’s not the drafting of a document that takes so long. It’s the review, thought and revision process that takes time.

— Derek D. Humfleet

Vol. 2 No. 1 Kentucky Business Quarterly™ | 7

Turning Your Personal Passion Into Your Business Purpose

BY TONYA HOWE

Many people have a passion in life whether it be in their personal lives or in their business. Some businesses are created around this passion because it’s something they love to do. For me, my passion was always to help others. In the past, I have worked with seniors in helping to aid in placement in a senior community such as, independent living, assisted living or nursing level of care or helped them to stay in their home by facilitating all of the things they would need to have in place that would be necessary to do so safely.

This included caregivers, transportation, home modifications, etc.

In my work over the years I met my current business partner and we shared the same feelings about helping others.

When we went into business together, we had long talks about our goals, dreams and what really moved us in the business world. It was through those conversations that our purpose for our business was born. We wanted to take what our passion was and turn it into our purpose for

our business. This enabled us to create something that was meaningful to both of us and allows us to work on it every day.

This fulfills our need in life to help others by bringing awareness to the community of a terrible culture that has always been a part of society but is getting worse each day: Bullying.

So how do you turn your passion into your purpose? There are many ways to discover this and I have found a simple yet efficient way of doing just that. One of my colleagues, Ranan Lachman, wrote a book called Purpose – How Small Things Can Create A Meaningful Life. His approach to finding your purpose in life is broken down into very simple, detailed steps that helped us find our business purpose. Make a list of things that you want to do. Narrow that list down to things that you think you can accomplish and then create a plan to carry it out. I realized in reading his book that you don’t have to solve world hunger to be successful in helping to change the world. The smallest things that we do each day can be beneficial to others.

My business partner and I took what our passions were and found a common ground that we both were excited to combine with our business practices. Our company deals with conflict resolution

and corporate training. We both had experiences with bullying while growing up and how that feels never goes away no matter how old you are. We then figured out a way that we could do something good for the community by using what we do on a daily basis and created the Initiative.

What does this do for you as a company?

This brings your passion into your daily work. It keeps your excitement level high and your work doesn’t become mundane.

You strive harder to make things happen because you know that you are helping someone who really needs it. It also bring awareness to both your purpose and your business. Many companies donate money to charity and that is a wonderful thing, but if you feel in your heart you truly want to do something that makes a difference not only within yourself but also for someone in need, then think about either aligning your business with a charity and becoming an integral part of what they do or create something that your business can get behind 100% by making it your business purpose.

I think most everyone will agree with me when I say your goal in business is to be successful. Finding ways to advertise your business that are effective is a hurdle

We all want to be happy, at peace and have a meaningful life.

What does that mean for you and your business?

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Make a list of things that you want to do. Narrow that list down to things that you think you can accomplish and then create a plan to carry it out.

that most of us are trying to overcome daily. But what if we looked at it from a different angle. What if we approached it from a perspective of helping others, not necessarily helping ourselves. When I was in sales years ago, and worrying about meeting my sales goals, my director told me, “Don’t think about the goals or money, concentrate on helping others and the money will follow.” He was right. When I focused on helping others and not on me, the goals were met and the money came at the end of the month along with top sales honors. We all want to be happy, at peace and have a meaningful life. What does that mean for you and your business? That is something you have to figure out for yourself and no one can tell you, but I hope by sharing how we accomplished this, it will help you find your business purpose.

ABOUT THE AUTHOR Tonya Howe is the Chief Operations Officer with Summit Conflict Resolutions & Trainings located in Nicholasville, Kentucky. She brings her expertise as an Eldercare Specialist to Summit to create and teach programs that focus on the care and well-being of the elderly, the forgotten generation. She has also created The Bluegrass Anti-Bullying Initiative with her business partner Dr. Dani Vandiviere to bring awareness and raise funding to offer free programs to Kentucky schools to help stop bullying and to teach our children that both the bully and victim can re-write their future. You can learn more about Summit and the Initiative at www.summitcrt.com and www. antibullying-ky.com.

Vol. 2 No. 1 Kentucky Business Quarterly™ | 9

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Vol. 2 No. 1 Kentucky Business Quarterly™ | 11

OSHA’s New Recordkeeping Rule A massive change for many employers

BY TODD C. MYERS

The Occupational Safety and Health Administration (OSHA) is sharpening its enforcement tools with the aim of becoming more proactive in enforcement. This generally means more inspections and penalties. Although OSHA has historically taken a more collaborative with employers on compliance than its sister agency, the Mine Safety and Health Administration, times are changing.

Kentucky operates under an OSHA approved Occupational Safety and Health Plan that is implemented and overseen by the state Labor Cabinet. Kentucky occupational safety laws are required to be “substantially identical” and OSHA gives Kentucky six (6) months to adopt identical new rules. Therefore, shifts in focus and regulatory changes at OSHA impact Kentucky businesses as well.

On May 12, 2016, OSHA published its final rule revising its Recording and Reporting Occupational Injuries and Illnesses regulation. The final rule requires many employers to electronically submit some or all of their injury and illness logs to OSHA. This new rule requires employers to set up “reasonable” procedures to encourage employees to report work-related injuries and illnesses and mandates severe penalties for failure to comply. The new rule takes effect in January 1, 2017.

The new rule represents a dramatic change from the current regulatory requirements. Before this rule, employers had no general obligation to submit these records to OSHA. Typically, OSHA only obtained this information if it opened an investigation or requested that an employer participate in an annual injury data survey.

Otherwise, this data remained in-house with the employer to be used internally.

Now employers are required to submit these previously private records to the government. In addition, OSHA intends to publish every employers’ data online for public scrutiny.

This submission rule applies to employers with 250 or more employees.

These “large” employers must submit their 300A, 300 and 301 logs annually.

For employers with 20-249 employees in certain “high hazard industries” – such as construction, manufacturing, warehousing, grocery stores, hospitals and laundry services, to name a few – the 300A must be submitted. The recordkeeping requirements for all other employers will remain the same. All of the submissions under this rule will be made electronically on a “secured website.”

Although the new rule does not impact all employers, it swells the number of large employers, who submit data to OSHA, from 35,000 to approximately 130,000.

For small employers, the number grows to a whopping 500,000 from 150,000. It is further estimated that large employers alone will have to submit 1.3 million incident reports per year.

Employers should be aware of the

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“Scarlet Letter” effect intended with this new rule. For example, the public information could negatively impact businesses by discouraging consumers from doing business with employers with larger histories, discourage lending, and encourage union organization. This is the exact effect OSHA is seeking.

In addition to the strict submission requirements, OSHA has added additional requirements to the rule to encourage injury reporting by employees and employers. First, employers must inform employees of their right to report workrelated injuries and illnesses free from retaliation. Second, the rule explicitly requires that employers set up “reasonable” procedures to encourage employees to report work-related injuries. Third, it creates punitive penalties for noncompliance with the new rule, despite the fact that penalties can be issued under other provisions of the law.

Although OSHA claims industry will have little expense in complying, this won’t likely be the case. For example, the rule requires electronic recordkeeping that will interface with OSHA’s systems.

The costs associated with the upkeep of programs and likely manual data entry will create compliance expense. Next, OSHA has not provided industry with much information on what it intends to do with the information except to publicize the data. This rule seems to be an attempt at high tech public shaming in a way that could be misleading as the data in a vacuum does not always paint an accurate picture. Finally, the rule could have the

opposite of the intended effect if employees fear reporting due to the mandatory publication.

There are a few steps employers should take to ready themselves to comply. First, begin a transition to electronic recordkeeping – and one that interfaces with OSHA. Second, provide refresher training to individuals responsible for recordkeeping. Finally, engage counsel to conduct privileged audits of forms to be submitted. Finally, evaluate and update injury reporting policies and conduct training with employees. Greater OSHA enforcement is clearly on the horizon and employers must be ready to protect themselves.

ABOUT THE AUTHOR Todd C. Myers is a member of Rajkovich, Williams, Kilpatrick & True, PLLC and practices extensively in the areas of litigation, employment law and workplace safety. In particular, Todd’s practice includes advising employers in compliance, training and enforcement matters related to workplace safety issues. Todd can be reached at Myers@rwktlaw.com

Vol. 2 No. 1 Kentucky Business Quarterly™ | 13

Healthy Business Needs Healthy People ‘GETTING HEALTHY IS WHAT IT’S ALL ABOUT’

By Tanya J. Tyler

An integral part of any successful business is its employees. Healthy, productive employees who use few sick days can make a big difference in the workforce.

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M

any businesses take advantage of health and wellness programs, which strive to help employees set goals for their well being and encourage them to monitor health-related factors such as blood pressure, cholesterol and weight.

Joe Olliges, owner and operator of Trainer Joe’s, offers a unique approach to the health and wellness programs businesses typically use.

After a successful 20plus years in the insurance

business, Olliges was ready to try something new. In 2011, he made a career change from insurance to personal training.

He soon discovered the thing he had the most passion for was working with businesses to help their employees lose weight, gain optimal health and in some cases conquer their food addictions.

“The people that I worked with one-on-one were pleased, but what they were getting most out of it was when we would talk about their eating habits and losing weight,”

Olliges said. “Some of these people had businesses and they would ask me, ‘Would you come and speak to my employees?’”

One of the first business owners he collaborated with was Gwen Riley of Green Box Heating and Air. Another early client was Scotty Haynes of Haynes Trucking Company.

“We scheduled the sessions – and I didn’t have a program,” Olliges said

Vol. 2 No. 1 Kentucky Business Quarterly™ | 15

Businesses are cheated out of better performance.

I go in and rebuild the truth that

YOU CAN DO THIS.

with a laugh. But he was determined to make the opportunity work. “I had to develop eight sessions. It just was very organic, and as a believer, there is the faith element here for me. I went to God and I said, ‘Hey, here’s people that need help and I’m willing to be that guy.’”

Now Olliges exclusively works with groups. He is a certified Lifestyle and Weight Management Specialist. His aim is to help employees gain better health, which in turn will help businesses because workers will have fewer medical concerns and develop better focus and more energy for their jobs.

“Businesses are cheated out of better performance,” he said. “This [unhealthiness] is stealing from us. We’re getting ripped off because people believe things that aren’t true.”

At his seminars, he talks about how people have the wrong ideas about food and eating.

“It’s a mind set,” said Olliges, who was on the track team at the University of Kentucky, where he earned a degree in business administration and marketing. “People are going to continue to struggle with their weight until they think differently. The mindset we have now is, it’s normal to be 30 pounds overweight. We get into this rut of just believing lies: ‘I need a lot of food to be OK; I need to eat at night to feel all right; I should be able to eat whatever I want.’”

These beliefs need to be revamped so people can change their lives for the better, Olliges says. “We believe things that really aren’t true, and as long as we’re believing things that are not true, we’re never going to have enough willpower to change.”

Olliges says the major obstacles to people making necessary and vital changes in their lives are their own beliefs. “As long as people believe there’s nothing they can do about their weight gain, how are they ever going to have enough willpower to change? It’s not about willpower; it’s about belief,” he said. This is where his work begins. “I go in and rebuild the truth that you can do this.”

One of Olliges’ most popular packages is the 21-Day Transformation program. It addresses the causes of dysfunctional eating and leads clients, one day at a time, through proven, achievable steps. Through Olliges’ teaching, coaching and motivation and an accountability component, participants start down the path to lifelong freedom from overeating and dieting. The groups meet twice a week for an hour for a total of eight sessions.

“In the 21-Day Transformation program, the average weight loss is 11 pounds,” Olliges said. “It’s simple, but it’s not easy. It’s just a little different.”

At the first session, clients receive a guidebook, a water bottle, a charge to walk 20 minutes a day and a list of foods they can eat. From the beginning, food issues are addressed.

“If you’re trying to satisfy physical hunger, it doesn’t take very much food, but if you’re trying to satisfy an emotional need with food, back up the truck,” Olliges said. “We’re obviously not just eating for sustenance. It’s dealing with other things. My challenge to my clients is to ‘embrace the hunger.’

AFTER TRAINER JOE’S

Most people can think of few things more frightening than getting hungry. We learn we need to deal with getting hungry in a different way than we have in the past. That’s where we learn something new. That’s the least pleasant part, but that’s when we learn something. It becomes easier when we start believing, ‘I don’t need as much food as I thought.’”

The program is very short, and anyone can do it. In 21 days, you find you have been “rebooted.” You are now prepared to handle the struggles that used to defeat you.

The food list, which you are expected to adhere to for 21 days, includes all kinds of vegetables, fruits, various meats (mainly chicken, turkey and lamb), nuts, coffee and different kinds of beverages. “The idea is, if it’s not on the list, you can’t eat it,” Olliges said. “It’s mostly what people would consider clean eating.”

I can come into your business, meet with your employees – all of them or whichever ones want to do it – and help them make a paradigm shift.

—Joe Olliges

OWNER AND OPERATOR OF TRAINER JOE’S

BEFORE While some people balk at giving up foods they love, Olliges says this sacrifice is an important aspect of the entire program. “It’s changing our perspective to being thankful for all the things we have,” he said. “We need to become a little more appreciative of and enjoy all the wonderful things we have.”

People confront their long-held ideas about food and eating during the program and uncover astonishing revelations.

“We want food to answer all these questions for us and solve all these problems for us, and it’s not meant to do that,” Olliges said. “It’s more what’s eating you, not what you’re eating. We need to eat to live rather than live to eat.”

Clients who stick to the program are amazed at the results.

“By the end of the program, 80 to 90 percent of them are going, ‘Wow, this is working. I’m losing weight better than I ever had before, I’m feeling good and good things are happening,’” Olliges said. “They realize this is doable. Everybody can do this program and if you do it, it works every time.”

Olliges’ clients include Lexmark and many different real estate offices, such as Keller Williams, Milestone Realty and ReMax. UK Healthcare, Lynn Imaging, The Jockey Club and MD Consulting in Winchester have also benefited from Olliges’ program. Centenary Methodist Church, Church of the Savior, Versailles Baptist Church, Southside Church of Christ and Southland Christian Church have participated as well. Staff at Beaumont Middle School and Picadome Elementary School took part in the program, and Olliges got a chance to speak to some students about health and fitness.

“I’d love to get into more schools,” he said.

For local or out-of-town businesses that can’t commit to the usual three weeks for the 21-Day Transformation, Olliges also offers weekend retreats and one-day weight-loss “igniters.”

“I can come into your business, meet with your employees – all of them or whichever ones want to do it – and help them make a paradigm shift,” Olliges said.

“What we’re really after is a lifestyle change,” he added.

“Are you willing to do something different to get great results?

My only agenda is to help somebody that hasn’t been winning to start winning. When somebody’s ready, they come in and they start doing it and it makes sense because it’s true. They get excited and everything changes. Getting healthy is what it’s all about.”

For more information, contact Joe Olliges at (859) 333-4052 or visit Trainer Joe’s Web site, http://trainerjoes.com, or Facebook page: Trainer Joe’s Health and Weight Loss.

Vol. 2 No. 1 Kentucky Business Quarterly™ | 17

Staying Connected

NEWS • ANNOUNCEMENTS CURRENT EVENTS • TRENDS Bank of the Bluegrass & Trust Co.

Chris French with Bank of the Bluegrass & Trust Co., has been promoted to V.P., Relationship Manager and Commercial Lender.

Born in Louisville, Ky., Chris moved to Lexington in 2002 to attend the University of Kentucky.

Courtney Barker has joined Bank of the Bluegrass & Trust Co. as Relationship ManagerDeposit Production/ Treasury Management Champion. A Kentucky native, Courtney Graduated from the University of Kentucky and the KBA General Banking School. She brings 10 years of banking experience with her.

Community Trust Bank Announces Ricky Peterson Promoted To Vice President, Commercial Loan Officer

David Maynard, Danville Market President of Community Trust Bank, is pleased to announce that Ricky Peterson has been promoted to Vice President, Commercial Loan Officer.

Mr. Peterson’s responsibilities include providing commercial lending options to new and existing clients by offering

financial solutions to individuals and businesses in the Danville Market. Mr. Peterson has been with Community Trust Bank for more than eleven years. He was previously the Branch Manager at Community Trust’s Pasadena office in Lexington, as well as the Branch Manager at the Danville Main and Danville Manor branches. His office is located at the Community Trust Bank Danville Main branch office at 462 West Main Street.

Mr. Peterson has a Bachelor of Business Administration degree from the University of Kentucky located in Lexington, Kentucky. He graduated from Mason County High School in Mason County, Kentucky. He is also a graduate of the Kentucky Bankers Association General School of Banking.

Mr. Peterson is active in the March of Dimes, United Way, Susan G. Komen for the Cure, American Cancer Society, Big Brother/Big Sisters, Humane Society, the Chamber of Commerce, and is a Board Member of the Danville Rotary Club.

Mr. Peterson resides in Danville, Kentucky with his wife Jacquie and daughter, Katelyn.

Community Trust Bank is a wholly owned subsidiary of Community Trust Bancorp, Inc. Community Trust Bancorp, Inc., with assets of $3.9 billion, is headquartered in Pikeville, Kentucky and has 70 banking locations across eastern, northeastern, central, and south

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central Kentucky, six banking locations in southern West Virginia, four banking locations in Tennessee, four trust offices across Kentucky, and one trust office in Tennessee.

Lexington Clinic Announces New Physicians in Richmond Lexington Clinic is pleased to announce the addition of two new physicians, John R. Simmons, D.O. and Matthew T. Eaton, D.O., both of whom will be practicing in Richmond.

Dr. Simmons, boardcertified in radiation oncology, will practice at the Richmond Regional Oncology Center, specializing in radiation oncology. Dr. Simmons completed a fellowship in prostate brachytherapy offered by the American Brachytherapy Society at the Seattle Prostate Institute and completed his residency in radiation oncology at Eastern Virginia Medical School as well as an internship in Charleston, WV at West Virginia University/WVSOM. He received his doctorate of osteopathic medicine from the West Virginia School of Osteopathic Medicine. Dr. Simmons specializes in all types of radiation therapy for cancer patients including IGRT, VMAT, IMRT, 3D conformal radiation therapy, unsealed sources for patients with thyroid cancer and

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painful bone metastasis, and treatments combined with chemotherapy.

Dr. Eaton, boardcertified in family medicine, will join Lexington Clinic Richmond as the newest family medicine physician. Dr. Eaton completed a residency in family medicine at Mountain View Regional Medical Center and received his doctorate of osteopathic medicine from the Kentucky College of Osteopathic Medicine. His professional interests include evidencebased medicine, health prevention and medical education.

For more information about either of these physicians and their services, or to schedule an appointment, contact Lexington Clinic at 859.258.4DOC (4362), or visit LexingtonClinic.com.

About Lexington Clinic: Lexington Clinic, accredited by the Accreditation Association for Ambulatory Health Care (AAAHC) is Central Kentucky’s oldest and largest group practice, with more than 225 providers offering primary and specialty care services. Founded in 1920, Lexington Clinic offers more than 30 specialties and operates offices in more than 30 locations throughout Central and Eastern Kentucky. For more information about Lexington Clinic, visit LexingtonClinic. com. To follow Lexington Clinic on

Facebook, visit www.facebook.com/ LexingtonClinicky.

DelCotto Law Group PLLC opens office in Louisville

The fourth office is in addition to offices in Somerset, Danville, and its primary location in the historic Barton House near Gratz Park in downtown Lexington.

The boutique law firm handles individual and business debtor/creditor matters including financial disputes, restructurings and bankruptcies in all chapters. It also focuses on commercial litigation, mediation, and asset protection planning.

“We receive referrals for cases in the Western District courts, and we wanted to have a location more convenient to our clients. One of our attorneys lives in Shelbyville, so it is a natural fit to expanding our services,” said Founding Member Laura Day DelCotto

about the expansion. “Many of the larger firms have conflicts when it comes to handling chapter 11 debtor cases and we are often brought in to work with the long-time corporate counsel to assist in dealings with lenders, both inside and outside of court.”

The Louisville DelCotto Law Group office will be led by member Jamie L. Harris, a Centre College and Brandeis School of Law graduate.

Vol. 2 No. 1 Kentucky Business Quarterly™ | 19

Buyer Due Diligence SMALL BUSINESS SALES

BY MARK SIEVERS

One of the most important aspects of a business sale is the due diligence process that the buyer and perhaps her/his advisors undertake. The buyer due diligence process serves to verify information represented by the seller and to also gain a more complete understanding of the business. It’s a critical part of the process and can take a little as few days or much longer depending on the size and complexity of the business. Typically some due diligence takes place after the buyer signs a confidentiality agreement. Once a buyer gets comfortable enough to make an offer, that offer usually has contingencies that include the satisfactory completion of a more extensive due diligence process prior to an actual closing.

From a sellers perspective its important to understand the reality and importance of such due diligence. It’s not about not trusting the seller but it is about reasonable and appropriate investigation into various aspects of the business that not only will justify completing the business sale but will give the buyer the knowledge base that will help them hit the ground running after the sale and increase the chances of succeeding and optimizing business performance.

Therefore, its in the sellers interest to have information organized to facility that process.

Additionally, it’s important to note that in a due diligence process surprises can and will happen. It’s normal. No business is perfect, and everyone should try to just work through them. Following are some general categories of due diligence:

Financial

At the very least a buyer should review the last three full years profit and loss statements, year end balance sheets and

tax returns. A review of the current year results on a recent year to date basis is also prudent. Things to look for and develop an understanding of include: fixed and variable expenses, unusual or non recurring income and expense items and which items are discretionary. On the balance sheet developing an understanding of the age of the accounts receivables and accounts payable helps to understand the cash flow cycle. Its also important to understand the composition of inventory in order to ascertain the age and marketability of the inventory and identify obsolete inventory.

Physical Assets

A buyer should review the list of all furniture, fixtures, equipment and vehicles in order to get a sense of their age and condition. This helps the buyer in understanding the potential capital expenditure cycle of the business. Its also important to get a list of all equipment leases.

Real estate

Buyer should review information on owned and leased real estate including zoning, use permits, etc.

Human Resources

For many businesses the human resource component is a critical part of the functioning of a business and its inherent value. Therefore gaining an understanding of the employees and especially key employees is critical. Further review items could (depending on the business) include employee agreements (non compete, consulting, etc.), employee benefit structure, workers compensation claim history, and the employee handbook.

Intellectual Property

This is an area that can be very simple or very complex. Items to review and gain an understanding of include trade names, trademarks, copyrights, trade secrets (recipes, formulas, “know how”), patents

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and patent applications, and licenses/ assignments to or from the business. It is also important to know all social media sites the business controls or is tied into.

If the business conducts or outsources research and development it may be important to understand the status of that activity especially if it impacts the new product development pipeline .

Permits and licenses

The buyer should review the list of governmental licenses or permits. A good example of this would be liquor licenses and the transfer process since that can vary greatly by locality. If the business is in health care then Medicare and other licenses are critical.

Contracts

Basically this part of the process is to understand all contracts to which the business is a party. This may be a simple list or can be extensive. One category is reviewing contracts used in the ordinary course of business such purchase orders, quote forms, and invoicing. Another area is supply, distribution, marketing, confidentiality and non-disclosure agreements.

Customer Information

One area of potential importance is the level of customer concentration. For example, if a material amount of the company’s business (say greater than 50%) is with just four or five customers then it’s important to understand those and that business relationship. A review of any available market research regarding current customers or the targeted customer base may be important.

Environmental Issues

The importance of this can range from minimal to huge depending on the type of business. The key review items include environmental licenses, permits, list of any hazardous substances or materials used in

the company operations, and company files regarding the EPA and state and federal regulatory agencies.

Insurance

Review of the company’s general liability, product liability, real and personal property, workers compensation, errors and omissions, key man and other insurance polices. Also its prudent to review the trailing three years claim history.

Litigation

Is there any active, pending or threatened litigation? Are there any unsatisfied judgements?

Taxes

Is the company current with all sales tax, employment tax, excise taxes, etc.?

Additionally are they current with federal, state and local taxes? While most small businesses are asset sale (vs. a stock sale) it’s still important to understand the status of these items.

Organizational Stuff

The extent of this may depend on whether the transaction is contemplated as an asset sale or stock sale. However, checklist items may include a Certificate of Good Standing from the Secretary of State where the business is located, a list of states or countries where the company is authorized to do business, and a list of the Company’s assumed names and the attendant registrations.

Public Relations, etc.

It is also prudent to do an internet search to look for articles and press releases regarding the company in the last three years.

Regulatory Environment

For certain businesses it may be important to understand the regulatory environment of the industry the business operates in. An example of this is the health care industry and if legislation will impact how business is conducted and if it impacts the cost structure or other aspects of the business model. These impacts can significant (both positive and negative).

The aforementioned categories are not an all inclusive list but should serve as a useful guideline. The checklist will be different for each business. It’s also important for both sides of the transaction to understand that this is a necessary part of the business sale process.

focusing on the human in human resources Recruiting Sourcing Assessing Interviewing Training Developing Coaching Empowering Motivating Strengthening

859.296.2800 www.cmiconsulting.com

History. Reputation. Trust. Future.

Vol. 2 No. 1 Kentucky Business Quarterly™ | 21

BY BOB WOODS

The Five Essentials of a LinkedIn Profile for Business Pros

For a vast majority of people on LinkedIn, a good Profile page reflects their resume.

This includes uploading some kind of photo of them, having a Headline that is reflective of their current title, listing all of their jobs, and so on.

I’m guessing, though, that you aren’t the typical LinkedIn user. You’re likely a salesperson who has heard of Social Selling but aren’t sure of where to begin with this new process. Or you’re a business professional who wants to go beyond that simple “resume profile” to start making quality connections and even generating business. After all, you are reading this article.

In either case, the first step to take is to think differently about your Profile.

Instead of a resume, think of your Profile as the foundation for a house. A good builder makes sure the foundation is sound before moving on to building on

top of it, with the eventual goal of selling the home to a buyer. Without a proper foundation, the house will fall down.

So any true sales or business-building activities you take on LinkedIn will depend on a strong Profile.

LinkedIn Profile = Your Brand

We all know by now that the LinkedIn Profile communicates our brand. It’s the first step in shaping how other professionals view us. If you are in sales, it is also what attracts, teaches and engages our buyers to want to have a conversation with us.

Even nowadays, most of the Profiles I see are still resume-based. While that’s fine for most LinkedIn members, the resume-based Profile isn’t what’s going to sell you as the expert in your field; it’s not going to make you the “go-to gal/guy” in your industry.

A crucial starting point on your path to increased sales success depends on having a Social Selling best practices-based LinkedIn Profile. There are five significant areas that all sales professionals should

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be focused on to leverage their LinkedIn profile for business development:

Background banner.

LinkedIn gives everyone the ability to brand themselves in a big way. The background banner is the first element that people see when they click into your Profile. Yet this valuable real estate is criminally underused. So spend some time getting this right. You can create one yourself in PowerPoint or Canva. If you’d rather have a graphics professional develop a “wow factor” banner for you, hire someone from Fiverr or LinkedIn’s new ProFnder.

A Profile photograph.

There are two schools of thought here.

One is to have a professional photograph taken of you in a studio environment. A quick Google search of local professional photographers will go a long way in helping you here. The other is to have a photo taken of you in a “natural” setting; a snap of you giving a presentation is a good example of this. Just make sure that you look professional, and that you can

Think of your Profile as the foundation for a house. A good builder makes sure the foundation is sound before moving on to building on top of it.

see your face in the photo. A professional photographer can be a huge asset here, too.

No matter which route you take, though, ensure that you have a great, professional Profile photo. Make sure your photo reflects how you are seen every day by your clients, colleagues and future customers, and presents you as someone with whom they want to do business.

Adding a professional photo to your Profile makes you 14 times more likely to be found and clicked on in LinkedIn.

photo. You need to build that “what’s in it for me” (WIIFM) factor; in other words, what’s in it for a viewer of your Headline.

An effective, “what’s in it for me” Headline.

Your Projects and/or Publications.

You want to “attract” people to your Profile by phrasing your Headline to provide your value proposition, or what you bring to your customers or clients when you sell your product or service to them. Few things scare a LinkedIn user away from connecting with someone else than seeing the phrase “sales rep,” “sales manager,” etc., in someone’s headline.

Instead, write a Headline that piques curiosity, creates immediate engagement and gets them to click on your name or

A values-based Summary.

Your Summary is huge. Think of it as more of a marketing and educational section than what a typical summary looks like on a resume. Consider offering insights and advice in your industry right away. Bring value to your target audience in your Profile, they will get excited to have a conversation, when you ask.

Buyers love to be educated, especially nowadays. These sections allow you to showcase articles, blogs, press releases and case studies that both build and reinforce your credibility and status as a thought leader in your industry. Don’t neglect these areas, as they bring immeasurable value to your Profile readers.

By leveraging all of these elements in a value-added, WIIFM way, you’ll be well on your way to fulfilling one of the huge goals in Social Selling: to take online

conversations offline. For the purposes of your Profile, this means getting more of the right decision makers at your target companies on a call or in a meeting.

The best way to think of the Profile is a lead generator. So take a look at your Profile right now, and put yourself in the mindset of a prospect. After viewing your Profile, would you want to talk to you?

ABOUT THE AUTHOR Bob Woods is executive vice president at Social Sales Link LLC, the missing link between traditional sales training and social media. We are a business training, coaching and consulting firm that helps salespeople, sales teams and entire companies generate better leads and close more business through the use of Social Selling. You can contact Bob at 888.775.5262 ext. 705, or email him at bob.woods@socialsaleslink.com.

Vol. 2 No. 1 Kentucky Business Quarterly™ | 23

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SMALL BUSINESS PROFILE – ENTREPRENEUR SPOTLIGHT – BUSINESS LEADER PROFILE

KENTUCKY QUARTERLY

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Spotlight Do you know of a business or leaders we should consider for a feature story? Would you or your business like the spotlight in KBQ? IF SO, PLEASE LET US KNOW.

Submit information to: brian72676@gmail.com

Vol. 2 No. 1 Kentucky Business Quarterly™ | 25

The Era of HR

BY BRIAN SIMMONS

Many events in American history stand out in our minds because of the significant impact to individuals, businesses and society as a whole.

Just mentioning “The Great Depression” immediately takes our minds back to 1929. Although economic conditions that led to the Great Depression began in the early 1920s, most people think of the stock market crash of 1929 as the start of the Great Depression. This era in time is often referred to as the period of the worst and most severe worldwide economic downturn. Research reveals some rather interesting and startling facts about this period of history.

On “Black Tuesday,” October 29, 1929, the stock market lost $14 billion, making the loss for that week an astounding $30 billion. The average income of the American family dropped by 40

percent from 1929 to 1932. Because the circulation of money was so low, the U.S. didn’t mint nickels in 1932 or 1933.

During the worst years of the Depression (1933-1934), the overall jobless rate was 25% (1 out of 4 people) with another 25% taking wage cuts or working part time.

These are just a few of the statistics that catch one’s attention when analyzing data in reference to the domino effect caused by this crisis.

During this Depression period, major changes in the laws regarding employment practices were initiated and implemented. One such change was enactment of the Fair Labor Standards Act (FLSA) in June 1938. As a way to solve some of the issues facing industrial workers, such as in the steel and coal industries, this Act was brought to life.

The Act`s objective was summarized as the “elimination of labor conditions detrimental to the maintenance of the minimum standards of living necessary for health, efficiency and well-being of workers.” President Franklin D. Roosevelt characterized the Fair Labor Standards Act of 1938 as “the most far-reaching,

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far-sighted program for the benefit of workers ever adopted in this or any other country.” This was, in fact, the foundation that established an eventual 40 hours workweek, a minimum wage for employees, and child labor prohibitions.

Just as significant as the enactment of the FLSA, the Civil Rights Act of 1964 and the Americans with Disabilities Act of 1990 both provided sweeping changes to the employment process and placed greater compliance responsibilities on employers. The Civil Rights Act made discrimination based on race, religion, sex, national origin, and other characteristics illegal. In addition, the Americans with Disabilities Act required covered employers to provide reasonable accommodations to employees with disabilities, and imposed accessibility requirements on public accommodations.

Employers nationwide had to plan, design and implement the needed changes.

Most often, businesses and organizations looked to their Personnel Managers and representatives (that’s what they were called before the phrase “human resources” replaced “personnel”) to lead way through

the interpretation of new legislation and significant workplace changes.

During the pay period that incorporates Dec. 1, 2016, the landscape of employment in organizations nationwide will drastically change again.

Many warnings are being given via media reports, seminar events, webinars, emails and white papers. Unlike the Chicken Little storybook tale, though, the sky will really be falling on businesses as they adjust to the Department of Labor’s Final Rule on overtime exemptions. It is both surprising and concerning that many businesses remain in the dark or have chosen to minimize the impact that the Final Rule will have on employees, employers, customers and clients.

The recent changes to the overtime exemption rules have precipitated what can best be described as the Y2K of employment practices. Instead of manipulating binary numbers at the turn of the millennium, however, we are talking about long term and significant changes to the way employees’ time will be managed, how budgets are compiled and allocated, and how employees are paid. This Final Rule will stretch companies beyond the obvious “magic math” that will be needed for full compliance on the Dec. 1st date.

There are and will be many practical considerations that need to be addressed now rather than later. Once again, there is a much greater need now than ever before for strong and knowledgeable human resources professionals to lead our businesses through this historical business change.

Look around your business. Who is taking the lead on educating the workforce and implementing the changes that will be needed? If you are struggling to figure out who that is or you happen to be the one responsible by default, take action now. Partner with a certified human resources professional for assistance whether internal or a third party consultant. Remember, seasoned and certified HR professionals are well trained in the process of classifying employees as exempt or non-exempt according to the rules outlined within the FLSA. Some might think that the

first logical step to plan for the FLSA changes to the overtime exemption rules is to break out the calculator and start crunching numbers. While that will be required in several cases along the way, your HR leader will be able to guide you through the practical aspects of the changes and the employee relations issues that are inevitable.

Lack of compliance can be costly.

These costs are not just relegated to stiff monetary fines. Damage to

Look around your business. Who is taking the lead on educating the workforce and implementing the changes that will be needed? your brand as an employer, employee grievances, productivity decreases, increased turnover, along with increased recruitment costs all factor in to this equation. Consider what happened in 2004 after a similar change to overtime exemption rules under the FLSA. On August 23, 2004, the minimum salary threshold level for exempt employees was increased from $8060 to the current $23,660 level that is due to increase in December of this year. That was a 194% increase in 2004. One of the most startling statistics during that period of change, though, was the 515.4% increase in Wage and Hour Division Enforcement violations. There are already some indications that businesses will see a repeat of increased enforcement activities as this calendar year ends and the new one begins. According to a report in Business Management Daily, the DOL’s Fiscal Year 2017 budget, which begins Oct. 1st - proposes spending $277 million on Wage and Hour Division enforcement activities. That’s $50 million more than Congress granted in 2016. Once again,

this is yet another reason to make sure that you have human resources leadership and support preparing your organization for the impending compliance challenges.

In addition to navigating this course of upcoming changes, there will still be many daily tasks competing for time and attention of all human resources professionals. Regulations related to retirement programs, leave of absence administration, annually required trainings and hiring guidelines are changing daily. With so many changes directly affecting employees and their families, there can be no doubt that we are living in a time in which legally compliant and sound human resources practices are imperative. This truly is the Era of HR! Interested in speaking with a certified human resources professional about your organizations’ specific challenges?

CMI Consulting would be happy to help with these impending changes and other human resources support services.

ABOUT THE AUTHOR Brian Simmons, SHRM-CP, PHR, has more than 25 years’ experience in generalist and specialty areas of Human Resources at all organizational levels. He has gained a wealth of beneficial experiences as a senior level executive in several fields - themed entertainment, travel, education, banking, retail, landscaping, hospitality, and healthcare.

His subject matter expertise areas include wage and hour compliance, workplace violence awareness and prevention, change management strategies, training facilitation, associate and customer relations, employment law application and presentation delivery. Brian also provides professional narration, voice over and acting services for workplace instructional videos, audiobooks and e-learning modules.

Brian attended Murray State University and is a veteran of the United States Air Force. He is a Certified Professional of Human Resources through the Society for Human Resources Management (SHRM) and the Human Resources Certification Institute (HRCI). Mr. Simmons is active in supporting various nonprofit organizations and community relations activities by hosting an Emmy nominated television series that focuses on the impact of non-profit organizations in our communities.

Vol. 2 No. 1 Kentucky Business Quarterly™ | 27

Advertising you can Afford

BY BRIAN WRIGHT

The good old days of inexpensive advertising is a distant memory. Its death may have coincided with the airing of the first million-dollar commercial during the Super Bowl. To make matters worse, most people can’t even remember the name of the product. Production and creativity are the most important aspect now. The old rule of saying the name of your business at least five times in 60 seconds has been shoved aside for funnier, cuter and sexier commercials.

Watching half-naked men and women dance around on dark pools of water may be pleasing to the eye, but I still can’t remember which tire they’re selling.

Large corporations use television as a major source of advertising, but that’s probably not something you can do. That’s where the Internet comes in. Search Engine Optimization or SEO is vital to success. The process can get your company or organization near the top of the page in any Google search. Key words are vital. Let’s use a non-profit organization that focuses on historic preservation as an example.

Key words should include historic, preservation, landmarks, property, condemned, eminent domain and other words that would be used by a surfer. Those words should be peppered

throughout every part of your online presence including your website and social media.

Two of the most popular reasons people surf the Web are to make a purchase or get the latest news. A report from the Pew Research Center for the People and the Press, found that 31 percent of Americans regularly get their news online. That’s a 29 percent jump from just a decade ago and the numbers continue to rise. Seventy-six percent of Internet users surveyed by Pew said they “bumped into” the news when online. That’s up 20 percent from 10 years ago.

So what does that mean to the small business or non-profit that uses a web site for outreach? Let’s look at one simple advertising tool that can bring today’s surfer to your site at no cost. A news release was something sent out to the media to alert reporters of an upcoming news conference, event or some interesting information related to your company. But the Internet has given it a more important role. The news release now comes together with those “key words” from SEO. Key words in a release that’s on your website can bring even more people to your door.

It becomes a backdoor entrance. The viewer is directed to the news release within your website navigation. But it’s not just limited to news releases. You can add articles, editorials, blogs and white papers to your website.

But there can be a downside to attracting surfers to your website or

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social media. If you don’t regularly update your sites, you’re out of luck.

There’s nothing that turns off a surfer more than finding outdated information. If your latest Facebook post is from a year ago or your website is promoting an event from 2014 then you’re in bad shape.

So the next time you get a little depressed about the high cost of advertising, remember that the next person knocking at your door could be a news hounds with a mouse in one hand.

ABOUT THE AUTHOR Brian Wright is the owner of Brian Wright Consulting in Lexington, Kentucky. He provides corporations, small businesses, nonprofits and individuals with public relations and marketing expertise. Brian is a national award winning writer, editor and consultant.

He has received awards from the National Society of Professional Journalists, The Public Relations Society of America, The American Society of Political Consultants and 27 Associated Press Awards.

ON THE WEB: www.brianwrightconsulting.com

There’s nothing that turns off a surfer more than finding outdated information. If your latest Facebook post is from a year ago or your website is promoting an event from 2014 then you’re in bad shape.

Vol. 2 No. 1 Kentucky Business Quarterly™ | 29

BY ANDREW VAN HORN

ActionCOACH for Better Business

If you are reading this, then you obviously want a better business. You are interested in doing what it takes to grow both personally and professionally so that you can achieve the results you want in your life and business. ActionCOACH has helped hundreds of thousands of business owners all over the world achieve not only greater profits, but a better life through our proven system of business growth. What I am going to do is give you every bit of our system, just to reward your time in reading this magazine.

ActionCOACH trains you on several different formulas, all of which create the life and business that you want. We have The 6 Steps, The 5 Ways, The 4 Ways and BE, DO, HAVE. Within these four formulas are the keys to unlocking your potential as a business owner and achieving the life that you’ve always wanted. So here’s how it all works.

The left side of this chart (figure 1) represents the path of every business owner as an entrepreneur through her or his life and whom you need to be to progress. We

start out being employed by someone else.

We then get struck by an entrepreneurial feeling, moving us into the self-employed category. As your business grows, you start to hire people, and you become a manager.

You start leaving the manager stage when your business starts to run without your daily input. When that happens you truly become a business owner.

The next stage is to become an investor.

You start to invest the profits from your business in other ventures, which could be stocks, real estate, or other businesses.

You become a true entrepreneur when you start adopting the thoughts and ideas of others, as well as your own, and you create industries or innovate industries to become a key player. All of these steps require you to become a better person, your BE. Your business will never outgrow you, you must keep learning and growing to achieve the next level.

The bottom axis represents the steps of your business along the entrepreneurial lifetime. This axis highlights everything that you must DO to achieve a better business. Where you are on this axis is a direct reflection of the actions you take every day.

The primary step every business must achieve mastery, or control over money, product/service delivery, destination, and

BE

HAVE

Entrepreneur

Investor

Owner Manager Self-Employed Employee

Mastery

Niche

Leverage

FIGURE 1 30 | www.kentuckybusinessquarterlymagazine.com

Team

Synergy

Results

DO

time. When those four areas are solid, you move onto the Niche part of your business.

This “niche” part is where you start to look at how you are better and different than all of your competitors and differentiate yourself in the marketplace.

You accomplish differentiation through Unique Selling Propositions and Guarantees, both of which typically fall into the marketing and sales portion of your business. The best (and big!) way to know you have achieved this is when you are no longer competing by price. In other words, the cost of your good or service has become a very small part of why people purchase from you.

The next stage of a business life cycle is that of Leverage. This step is all about putting systems in place for your business that allow it to run smoothly without owner input. Systems are the key for every business to become self-sufficient because they help the owner to leverage her or his time. Simply put: Do the work once; get paid from it over the long term. Sounds great, doesn’t it?

Once the business has systems in place, it is about getting the right team members are in place to keep it running smoothly. With the right team in place, it is time to hire a general manager. Your business is running smoothly, growing consistently and is creating the cash flow that you will need in the investor stage.

As an investor, you are now all about gaining your large monthly profit-based income to work for you by creating more money. You start to purchase other businesses, rental properties, stocks and other investments that put your money to work. Investing is about using your money to create more money.

The results stage is where you start to enjoy the fruits of all your labor. You ensure a huge financial legacy for your family. You can take those dream trips you’ve always wanted. Most important, you have the freedom to do what you want to do. At the results stage, money is abundant, and you will always have enough.

Now that you understand the basics of the business and investor life cycle let’s look

at how it plays out for the owner. What do they want to have and how much money will they make?

Between Niche and Leverage is where you start to get exponential profit increases.

Around that time frame is when your business is running efficiently, and most of the work you’ve done starts to pay off.

Now that you’ve seen how the life cycle and steps work, and the return that you’ve achieved along the journey, you are probably wondering how to achieve the next step in your business. A proven process exists for doing just that, and it is used successfully in businesses all around the world.

I am talking about The 5 Ways and The 4 Ways. The 5 Ways is a formula that allows you to achieve a 61.7% increase in your profits, and The 4 Ways are about systematizing your business to run without you.

The 5 Ways

IN A NUTSHELL, HERE IS THE FORMULA:

Leads x Conversion Rate = Customers Customers x # of Transactions x Avg. $ Sale = Revenue Revenue x Net Margins = Profits

If you want to see a dramatic increase in your profits, start tracking your 5 Ways today. Get a solid count on the number of leads your business receives during an average day, and then figure out how many of them bought from you. Those two numbers give you your conversion rate.

Then you can determine your number of Customers for the formula. To get more customers, you must focus your energy on Lead Generation, or marketing, and on your Conversion Rate or sales process.

The next step is to track how many transactions they have with your business, and what they spend on average per transaction. If you want to increase your revenues, focus on getting your customers to buy more each time they show up, and convincing them to come back more often.

These two areas also fall into your sales and marketing parts of your business.

The fifth area is your Net Margins, or how much is left after you’ve covered all

your expenses. Most business owners make a mistake here by not including a salary for themselves. You are time as the owner has a cost and needs to be considered when looking at your Net Margins.

There are three categories to improve for better margins. They are efficiency, budgeting, and costs per unit sold, which are functions of management.

I’ve seen all of The 5 Ways work in businesses in which I’ve worked and even in my own business. Your focus on each of these five areas will exponentially increase both your profits, and the amount of cash available to your business.

The 4 Ways

There are only four categories to look at when it is time to systemize your business and leverage your time as the owner. They are People and Education; Systems and Technology; Delivery and Distribution; and Accounting, Testing, and Measuring.

People and Education allow you to develop training programs and hiring processes that attract, retain, and train your employees to be the best. Employees are a must if you want to leverage your time and ability to make money. Once you have employees, it is your job to ensure that they are growing and achieving more each day improving turnover and helping your company grow.

Systems and Technology address what sort of technology and systems are already out there that can allow you to leverage your time and money. It could be more cloud-based systems or communication systems. It could be in developing a mobile app, or creating a better work system. All sorts of possibilities exist in this category.

Delivery and Distribution involves how you are delivering your products and service out to your clients and customers.

One area that I’ve worked on to improve in my own business is getting my client to meet on the phone, instead of in-person gatherings. Phone meetings save both of us huge amounts of travel time and increase my capacity to take on even more clients.

Another example of improving product delivery is Amazon. The e-commerce giant is now offering same-day delivery in certain markets and wants to deliver goods via drones. Be inventive when it comes

to improving your product and service delivery.

The fourth area is in Accounting, Testing and Measuring; basically, how are you receiving and understanding the numbers in your business. By testing and measuring everything you do, you can assess if it has positive or negative impact on your business. With that data, you can make decisions faster on what to get rid of in your company, and what to keep doing.

Look at how you can automatically track and account for things. Tracking could involve getting some additional phone numbers to track different parts of your advertising, or creating different offers to see where leads originate. Again, it is all about automating the accounting and tracking in your business, and then having that information flow through to you in usable formats.

As the owner of your business, your job now is to look at each of these areas, so you can start to see the potential and growth of your business. You are probably also wondering how long this process takes. As with many things in life, the answer to that question depends entirely on how much time and energy you put into achieving the next steps. I do know, based on client results, that if you commit 4 hours to 6 hours of work on this per month, you’ll have reached the Results stage in 4 years to 6 years.

Think of that: Just 50 hours to 60 hours of work on your business each year, and you can dramatically change your lifestyle and the results you see. That is the power of working within this proven system for growth. Be encouraged! Get to work on your business and achieve all the untapped potential within your business.

ABOUT THE AUTHOR Andrew Van Horn is best summed up in one word: Abundance. Abundance simply means having enough time and money to do the things that you want to do. As an ActionCOACH Business Coach Andrew helps owners all over the area in building a business that creates abundance for the owner that can be passed down for generations.

He loves helping businesses grow into their full potential because a growing business creates jobs and money that can bring about positive change in the area. His goal is to help 1,000 businesses in the next five years achieve abundance.