Tag Archive for 'December Cleaning'

Spring cleaning for small business—in December

At this time every year I like to remind small business owners to do what grandma used to do after a long winter. She called it “spring cleaning.” So let’s do the same thing, but let’s do it now, in December.

December Cleaning will give your business the maximum opportunity to start 2014 with as little 2013 baggage as possible. Here are a few ideas to get you started.

Throw stuff away
Even if you’re not a pack rat like me, you’ve accumulated stuff you don’t use anymore. If you can’t sell it, give it away or throw it away, because it’s in your way.

Lose the graveyard
Every business has a digital graveyard. Unused or broken computers, monitors, etc., may have some value. Call a tech recycler and convert it into cash. Even if you donate it or throw it away, it’s out of your way.

Retool the team
The only thing worse than firing someone is letting an unproductive employee hold your team’s performance hostage for another year. You owe productive people the most effective organization possible, which often means you have to let the unproductive ones pursue their careers elsewhere. There is never a good time to fire an employee. But if you’re squeamish about letting someone go during the holidays, give them extra severance.

Clean out customers
Reevaluate the profitability of customers and put them into four groups, from the most profitable As to the least profitable Ds. Worship the As, cater to the Bs, encourage the Cs and teach the Ds about self-service. When the cost of a customer’s expectations exceeds their profitability with you, they should be allowed to join your unproductive employees – elsewhere.

Purge products
As with customers, take a new look at inventory by identifying the most profitable As to the least profitable Ds. Stock all the As, a few of the Bs and maybe a couple of Cs, but never let a D spend one night under your roof unless it’s paid for. Remember, profitable inventory management means just-in-time, not just-in-case.

A/R reality
Take the hit and write off uncollectable accounts receivable now, so you can start January with a clean list. A/R write-offs are tax deductions this year, but become gravy if you collect them next year.

Each new year deserves to have the maximum opportunity to be successful, so don’t saddle it with this year’s obsolescence and bad decisions. By taking these steps you’ll prove to yourself – and your banker – that you have the discipline to make critical decisions for which successful managers are known

Smart managers spring clean their businesses in December.

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Be sure to check out my latest segment from The Small Business Advocate Show®. I reveal my “December cleaning” ideas for helping your business start the new year without the baggage and bad decisions of the previous year. Click the link below to listen!

December cleaning for small business

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Spring clean your business in December

One of the best ways to give your future the maximum opportunity to be successful is to make sure each new year begins with as little baggage from the past as possible. So, what grandmother used to do after a long winter, businesses need to do in December. Instead of spring cleaning, let’s do some December baggage elimination. Here are a few places to start.

Eliminate stuff: Even if you’re not a pack rat like me, you’ve accumulated stuff you don’t use anymore. If you’re not using it, sell it, give it away, or throw it away.

Digital graveyard: Don’t say you don’t have one. Whether it’s an old PC, monitor or printer – even if it isn’t broken – if it hasn’t been used recently it’s occupying valuable space. Sell it or call a computer recycling company.

Retool the team: The only thing worse than firing someone is letting an unproductive employee hold your team back for another year. The timing may seem insensitive, but it’s just an unfortunate coincidence that the holiday season coincides with December cleaning. You owe your productive people the most effective organization possible, which often means you have to let the unproductive ones do that elsewhere.

ABCDs of customers: Segregate customers into four groups, from the most profitable As to the least profitable Ds. Worship the As, cater to the Bs, encourage the Cs and teach the Ds about self-service. Customers who demand more commitment from you than they’re willing to reciprocate should be allowed to join your unproductive employees elsewhere.

ABCDs of inventory: As with customers, categorize inventory from the most profitable As to the least profitable Ds. Stock lots of As, some of the Bs, maybe a couple of the Cs, but never let a D spend one night under your roof unless it’s paid for. Remember, profitable inventory management means just-in-time, not just-in-case.

Scrub accounts receivable: Take the hit, and write off uncollectable A/R this year so you can start January with a clean list. A/R write-offs that are later collected become gravy for the new year, otherwise they’re tax deductions this year.

Each new year deserves to have the maximum opportunity to be successful, which means it shouldn’t be saddled with the baggage of last year’s obsolescence and bad decisions. By taking these steps you’ll be proving to yourself – and your banker – that you have the discipline to make critical decisions for which successful managers are known.

Don’t wait for spring. Start December cleaning today.

Recently on The Small Business Advocate Show, I talked with Patricia Sigmon, founder of LPS Consulting and author of Six Steps to Creating Profit, about how to wrap up this year and give the new year the maximum opportunity to be successful. Click here to download or listen.

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