The Importance of Strategic Alliances for Growing Enterprises and Their Owners

By Patty DeDominic

Is the entrepreneurs’ journey really a solo trip to riches based on their own brilliance?  Or is it still pretty “lonely at the Top?”  Let’s face it, many a small business owner feels the whole weight of their future is on their shoulders.   They think the whole reason their business is successful is on them…and they are probably right if they have not built a team.

But how to build a team when the business is small and finances are tight?   Reinvesting for growth is one way and I recommend that all businesses reinvest in their people, in training and in systems. Another way to grow, and be bigger and less lonely than a “solo- preneur,”   is to partner with others for mutual benefit. I love Strategic Alliances and limited join ventures for growth oriented businesses. Mary Ohara Devereaux tells us to “learn to drink at dangerous waters” during chaotic economic times. Our competitor could be our partner tomorrow and competition can come from all over the world so we better find others who share some of our values, our vision and a reason to partner with us for mutual benefit.

It does not have to be expensive to add to your credentials. You can bring on millions of dollars’ worth of talent with the right Strategic Alliances. With creative licensing arrangements you can also “borrow” others halo with branded merchandise, white labeled products and services too. 

As founder and entrepreneur, you are probably the whole reason for your business existence. And if you are over a few million dollars in gross revenues now, you are most likely the reason for your small business staying small or being stuck in a rut now too.    YOU, the owner are THE GOOD NEWS but you can also be your own bad news too if you don’t keep on growing.  It’s time for you to reach out and connect with some “business partners” to expand your team. Too many small enterprises run without the benefit of outside advisors. Now I don’t expect you to all run out and get an advisory board or even a coach, although it might be a great idea for you to do both. Give some thought to adding some strategic alliances this quarter to help you provide added expertise to your team and deeper resources for your customers too.  

Over the years and again this year, I have added some great experts as part of the team at DeDominic & Associates. I brought on people with shared values yet difference skills and varied points of view. Adding strategic partners can help you reach out and connect with advisors and others outside the business who can give you another set of eyes and ears.   Strategic Alliances can also help you expand your service offerings without adding overhead. We at DeDominic & Associates have just added special advisors and experts in the Marketing and Social media, sales training, a business plan system and financial services arenas. We did this by finding other business owners who share our values and who also love helping small business owners grow.

Try it….  You can only grow as a result of every new business “adventure” you engage in. I would love to hear your success stories. Please write to coach@dedominic.com and let us hear from you about your own Strategic Alliances and joint ventures.   

How to Create Stronger Accountability to Meet Your Business Goals

By Patty DeDominic

Business people are empowered when they know which targets they are aiming for in their company. That has a lot to do with accountability in the workplace.

Many business managers these days are seeing the effects related to a lack of accountability. Leaders must immediate corrections to align their goals and push for better performance with a strategic accountability system.

The best employees often depart because they seek accountability. They become upset when they are not recognized and less productive performers are not held accountable. These businesses find it more difficult to bring in talent because those workers want to perform in a setting that makes accountability a high priority.

A company without accountability won’t reach its potential. If standards are low, the company’s goals won’t be accomplished. If the business isn’t performing as planned, morale will drop as well.

Employees in the wrong jobs will bring down the company culture. Mediocrity and complacency will become accepted. Because of this, more responsibilities will fall upon the company’s top manager who must tackle more responsibilities, including recruiting more workers. He or she could become overwhelmed because accountability has not been maintained down the line.

However, a business with strong accountability will perform much differently. A leader who uses accountability will create ownership for the company’s workers. This is important because building a sense of ownership will help accomplish the firm’s goals. The job will be done. The company’s pace will be set with accountability.

What is and what is not working for the company will be uncovered with greater accountability. Leaders will discover if they’re on the right track, if there are square pegs in round holes and if their goals are being met. This information can be used to make any necessary changes.

How to Increase Your Cash Flow

By Patty DeDominic

Cash-flow problems arise often when clients get behind on fee payments. The best way to avoid this problem is to get paid up front or have a more enforceable agreement about when fees will be paid.

Good quality control is important so that clients can be sure they are getting the service for which payment is due. Cash may be king, however, finding options is queen

It may be time to consider increasing prices to maintain a consistent revenue stream. Or, it may be a good idea to start trimming operating costs as well.

Look into ways to lower the cost of fulfillment by automating business systems. Avoid wasted labor expenses for things that can be automated. Create check lists and protocols to provide staff or substitute workers with written or automated documentations, macros and automatic responders to save time and money.

Don’t reinvent the wheel for every new vendor or hire. Provide a video orientation for them. Provide self-serve and frequently asked questions on the company website. Also add phone systems that will keep hiring to a minimum. (For example: “Press 2 for hours and directions to our location.”)

Here’s another idea that might help cut spending: Perhaps a business can use a barter system or receive in-kind services in lieu of a fee or partial fee.

It’s a good idea for businesses to keep close watch on their cash-flow shortage as opposed to operating losses.

While some small businesses use credit card companies, it may be a better idea to get a line of credit from your existing bank before a cash-flow crisis occurs. Your bank usually will listen to your needs at no extra cost instead of sending bill like an attorney or accountant.

 Businesses should project their spending, plan and budget accordingly. Watch for recurring expenses. Prune clients. Businesses should ask themselves, “Are we just spending or investing?”

 In the long term, strategic planning will pay off.

Building Your Management Team

By Patty DeDominic

All champions have a coach. So, it’s a good idea to take some advice from an entrepreneur who has built some management teams.

Here are some tips about team building

n  Appreciation pays big dividends. Showing appreciation in any form for team members will help keep the team together. Like a well-oiled machine, an appreciated team works well together.

n  Turnover costs a lot. After the right hire is made, retain your team member as long as possible because it’s costly to recruit and start all over again.

n  Lack of turnover also costs a lot. If the new team member isn't working out, it’s best to evaluate the hire, assess the situation and take corrective action. That could mean changing assignments.

n  Seek diverse skills. To multi-task, which is so much required these days, a manager must have multiple skills. Training is needed is something is lacking in his or her skill set. It’s not a good idea to hire someone who is not willing to learn new skills.

n  Seek unified actions not uniformity. A team works together as a unit, but not every member is the same. Some members may be stronger at some positions than others, but everyone should have a well-defined role that fits into the company’s strategic plan.