USA Today Business Editor Steven Strauss once wrote, “Cash flow is your business oxygen.” Indeed, business owners need ready access to liquid cash to make payroll for their employees, pay bills, and keep their companies alive. However, many people underestimate how much money is needed to operate their businesses and suffer problems when the bank account registers empty. The best course of action is to seek more money and credit than you think you need before you need it.

For those entrepreneurs who failed to secure adequate credit lines before the recession hit or were stricken with unexpected expenses, it’s been a difficult few years. Despite being the source of 65% of all new jobs in the past 17 years (as reported by the U.S. Small Business Administration), small businesses have found it harder to borrow capital from banks. Stricter lending rules from the federal government have made bankers wary; according to a June 2011 report, 61% who responded to a Pepperdine University poll said they had rejected loans they may have otherwise approved due to pressure from federal regulators. In fact, bankers we interviewed had even declined loans to millionaires because of fierce regulations and applicants’ lack of liquid assets!

The good news is that business loans are finally becoming easier to get. In February 2012, the Wall Street Journal reported that, according to FDIC statistics, “US banks posted their biggest quarterly increase in lending in four years.” This is a positive sign for entrepreneurs and the economy as a whole.

Bankers are still feeling the pressure to “get it right” nearly all the time, though, so obtaining a loan is certainly not guaranteed. Business owners who are seeking loans must be prepared to make a strong case for why they will be able to repay any money they are given. You almost have to prove you don’t need a loan in order to get it!

To promote success when applying for a loan, we suggest taking the following steps:

Improve your credit score: You are entitled to one free credit report each year through AnnualCreditReport.com. Your credit score is the starting point in the banker’s analysis of your financial stability, so make sure that you have a good one or are making efforts to improve.

Develop a banking history: Bankers prefer to lend money to existing customers. First Community Bank president Mike Crapps said, “I encourage business owners to invest in building relationships with bankers in advance of potential borrowing needs. This creates a history of information that will enable bankers to understand the context for loans quicker.”

Bring a business plan: South Carolina BB&T president Mike Brenan suggested that loan-seekers “approach bankers with a detailed, clear strategic plan describing where you want to take your business and steps to get there.” The plan should show lenders that you are taking all necessary steps to make your business profitable (and thus, will be able to repay any money you are lent).

Plans should include a narrative with: personal experience and skills; business history; barriers and problems you will likely face and the solutions to them; competitor analyses; marketing plans; personal and company balance sheets; detailed budget; cash flow projections; SWOT (strengths, weaknesses, opportunities, and threats) analysis; management and ownership structures; and company/personal tax returns and financial statements. Include any attachments necessary to prove the plan’s points, number the pages, and organize the entire document neatly in a three-ring binder. Before you give a copy to the banker, have a technical writer proof all of the materials to ensure that they are clearly written and contain no typos.

Arrange a meeting: When your proposal is ready, call the bank, explain your situation, and ask to schedule an appointment with the best person to speak to for your needs. At larger banks, you may go through a corporate business loan banker instead of the branch officer.

Prepare to meet: Having made nine business loan presentations over the years, we advise you to plan on being grilled! The banker will ask hard questions, but don’t take it personally—his or her job depends on it. Try to anticipate difficult questions that may be posed to you and prepare for them as best you can. A good tactic is to ask others who have gone through this process to coach you and review your materials prior to your presentation. 

Rehearse until you feel comfortable. You want to appear poised, relaxed, knowledgeable, competent, and professional. Make notes to ensure that you remember to address all points. Your job is to make bankers feel confident and secure about extending credit to you. State your requested terms during the presentation (e.g., “My business will require a $200,000 loan to be repaid over five years at prime interest.”).

Wrap up the meeting: After bankers have examined your proposal, inquire about the next step in the process. Never rush decisions or act desperate! Small banks have less bureaucracy and will make lending decisions more quickly, but you should still plan on waiting 2-3 weeks for an answer.
Carefully read all offers and contracts to ensure that they accurately reflect whatever agreement you have made. Ideally, you should try to get a line of credit to use when you need cash and pay it down when things are going well. If you must borrow, repay loans promptly. Debt and interest can rob businesses of much-needed profits.

Don’t get discouraged: Even if you feel that you have made a great case, be prepared for rejection. In 2002, to our surprise, a major bank denied us a loan for our Columbia Conference Center. Our family had a 35-year history with the bank, we maintained spotless credit histories, and we were prepared to commit 30% of the building costs in cash. (We obtained funding from a different bank and have paid off that loan.)

Why are some loans denied? According to Crapps and Brenan, the main reasons that banks do not approve business loans are the applicant’s bad credit history; lack of equity and personal assets; limited or no money to contribute toward company operations; poor cash flow projections; overambitious or unrealistic income projections; and expense estimates that are too conservative. “The lack of a secondary source of repayment is a common problem,” noted Crapps. Remember: bankers look for partners in business ventures, not to be the sole funding source. If you are refused a loan, however, all hope is not lost. Brennan suggested, “Brush yourself off, polish your presentation, and try again!”

The bottom line: When seeking a loan, be prepared!

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Blake DuBose graduated from Newberry College School of Business and is president of DuBose Web Group. View our published articles at www.duboseweb.com. You can reach him at blake@duboseweb.com

Mike DuBose has been in business since 1981 and is the author of The Art of Building a Great Business. He is the servant owner of three debt-free corporations, including Columbia Conference Center, Research Associates, and The Evaluation Group. Visit his nonprofit website at www.mikedubose.com.

Katie Beck is Director of Communications for the DuBose family of companies. She graduated from the USC School of Journalism and Honors College.

If there’s one thing Disney is known for, it’s creating magic for customers young and old alike. Walt Disney World employs nearly 60,000 “Cast Members,” the organization’s term for its employees, and entertains more than 16 million “Guests,” or customers, annually. Every cast member, from those donning Goofy suits to those cleaning the bathrooms, is expected to provide exemplary service to every guest.

Cast members are inspired to make this kind of customer service magic by the way Disney treats them. In his book Creating Magic, former Disney vice president of operations Lee Cockrell sheds light on this unique culture: “The formula is simple: Committed, responsible, inspiring leaders create a culture of care, which leads to quality service, which leads to Guest satisfaction, which leads to measurable business results and a strong competitive advantage.”

What are some of the main components of Disney’s culture? In our companies, we’ve isolated some key Disney ideas that can be applied to businesses of all types and sizes:

• Share respect: Regardless of their specific jobs, Disney treats all Cast Members as important, resulting in increased happiness and productivity. When people feel respected, they’re also more likely to stay in their jobs, reducing turnover and the associated costs (new employee training, etc.). We apply this principle in our family of companies by allowing everyone a say in how the companies are run. Everyone’s opinions are important, and as with Disney, all of our employees are encouraged to act as leaders.

• Shun bureaucracy: Cockrell notes that “it is almost always a good idea to minimize the numbers of layers in your organization.” When Cockrell had to consolidate two Walt Disney world divisions into one shortly after coming to Orlando, he faced some resistance. However, once the merge was complete, ideas were shared more effectively and operations were more efficient. Like Disney, we have flattened our hierarchy to better allow our employees to do their jobs. As long as leadership clearly defines and communicates everyone’s responsibilities, employees don’t need to be micromanaged. This also shows them that we trust them to produce outstanding work.

• Hire only those who fit: To your customers, your employees are the face of your company. Their experiences with your staff can make or break their opinions of you, regardless of how high-quality or innovative your product. Thus, it’s important to select talented, self-motivated, smart employees who fit into your organization’s culture (or “team chemistry,” as Cockrell calls it). When hiring, clearly define the attributes and skills you are looking for, then interview applicants thoroughly. Involve your other staff in the interviews—after all, they’ll be working with the new people, and they know better than anyone what type of person is needed for the position. If you don’t find the perfect fit the first time, keep looking until you do.

• Teach and train: Leaders should act as mentors, not dictators. Teach your staff everything you know to improve their performance and also protect the company in case you are suddenly removed from the picture. Whether you notice it or not, employees are watching your actions, so always lead by example. In the past, our companies have conducted book studies with groups of employees and leaders from different companies to expose staff to new concepts and facilitate open discussion. Feedback is also an important tool, as Cockrell notes. He recommends immediate, constructive informal feedback (in addition to more structured reviews) to help employees learn what they are doing well and what they can improve upon.

• Head off problems early: It’s much easier to fix issues when they are in their first stages than to wait until they have blown up. One of the best ways to do this is to listen to your employees and customers. Staff members can usually give you helpful information on where problems may arise and how to fix them. Cockrell also recommends calling dissatisfied customers to hear their complaints firsthand. However, when failures do occur, discuss them openly. At our family of companies, we encourage everyone to admit to mistakes, talk about them, and use them to learn what to do differently next time. But don’t just wait until problems occur—try to anticipate new problems before they have a chance to blossom.

• Give pats on the back: Although respecting your employees is vital, it’s not the end of your duties as leader. You need to clearly demonstrate that you care about and are grateful for what your employees contribute to your organization. “Appreciation, recognition, encouragement: ARE,” Cockrell writes. “Together they make up a cost-free, fully sustainable fuel, one that builds self-confidence and self-esteem, boosts individual and team performance, and keeps an organization running cleanly and smoothly.” This doesn’t mean you have to spend a lot of money; in fact, some of the best ways to show you appreciate your staff are free. Spend time talking with your employees. Learn all of their names and some of their interests. This costs nothing, yet builds a bond that will inspire your people to work harder for you. At our companies, we use a mix of free gestures (e-mails celebrating staff birthdays and anniversaries) and low-cost goodies (distributed randomly by members of our employee liaison committee to everyone) to recognize and encourage our staff.

• Seek constant improvement: “Good is the enemy of great.” Jim Collins’ statement rings true for all companies, ours and Disney included. No matter how good a company’s culture, structure, or customer service is, there is always room for improvement. Great leaders never become complacent, and they keep the flexibility to change course if needed. They are constantly seeking out new strategies and technologies that can help them stay one step in front of the competition. For example, Disney hotel guests receive luggage tags in advance by mail, and after check-in at the airport, Disney makes sure the guests’ bags get to their hotel rooms. In this way, Disney applies technology to provide above-and-beyond customer service. Ideas such as this can be gleaned by keeping up with business literature, what works and does not work for competitors, and customer surveys and research.

The Disney brand is recognized the world over for its determination to make the Disney experience pleasant, memorable, and personalized for every customer. All companies, including ours, can benefit from studying and applying many of the principles practiced by Disney.

The bottom line: it is everyone’s duty within an organization to develop and maintain a Disney-esque culture. To achieve this goal, everyone must work together and row as one in the same direction.

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Blake DuBose graduated from Newberry College School of Business and is president of DuBose Web Group. You can view our published articles at www.duboseweb.com. Write to him at blake@duboseweb.com.

 Mike DuBose has been in business since 1981 and authored The Art of Building a Great Business. He is the servant owner of three debt-free corporations, including Columbia Conference Center, Research Associates, and The Evaluation Group. For more articles, visit his nonprofit website www.mikedubose.com.

Katie Beck is Director of Communications for the DuBose family of companies. She graduated from the USC School of Journalism and Honors College.
 

It’s all over the news: almost a half-million dollars is missing from the South Carolina Hospitality Association, most likely due to embezzlement. The scandal has raised many questions, like “How could that amount have disappeared without being noticed? How often do things like this happen?” The answer: more easily and more often than you’d think! According to FBI statistics, there are 726 pending fraud investigations from 2011, and the rate of such crimes has increased steadily since 2003.

South Carolina is no exception to this disturbing national trend. A former Allendale County Bank employee recently pled guilty to stealing $323,000 from the bank. She faces 30 years in prison for the embezzlement, and up to another 20 years for setting fire to the building in an attempt to hide her crime.

Despite these incidents, few business leaders realize the danger embezzlement poses to them. Many simply can’t believe that their employees would ever betray their trust. However, it can happen to you! Case in point: a colleague recently shared a true story about a well-paid bookkeeper who had worked many years for a local company. The bookkeeper was very spiritual, a good friend, a trusted counselor to many…and also a thief, covertly taking large amounts of money from the business to cover personal credit card bills. When the news broke, other employees were in a state of disbelief. However, when speaking about the incident with other business owners, we were amazed at the number of similar horror stories they shared. In most cases, the thefts went unreported and the embezzlers were simply fired or allowed to repay the money.

There are many motivations behind theft. People do it to pay debts, feed gambling or drug problems, satisfy greed, fund lifestyles of excess, or cover unexpected expenses. Some tell themselves that it is just a temporary loan or that the company deserves it for mistreating them. Others just love the thrill of getting away with something. To make matters worse, many embezzlers avoid suspicion because they hold positions of responsibility in their organizations.

In a 2010 global fraud study, the Association of Certified Fraud Examiners (ACFE) determined that a typical organization loses 5% of its annual revenue to fraud and theft. Most fraud went undiscovered for around 18 months, and the median amount loss was $160,000—a hefty amount, particularly for small businesses, who were disproportionately likely to suffer (30% of companies in the study had 100 or fewer employees).

As a defensive maneuver, consider insuring your business against embezzlement. Scott Moseley of Irmo Insurance Agency recommends liability and comprehensive insurance policies covering fraud, embezzlement, and theft (note: there is often a limit of $10,000 per incident). Financial officers can also be insured against fraud. According to Moseley, a $100,000 employee dishonesty bond will cost a business about $300 per year.

Of course, as the saying goes, “An ounce of prevention is worth a pound of cure.” Based on research and conversations with our CPA, Frank Thomas, we recommend the following strategies:

• Conduct thorough pre-employment background checks. This can reveal felons who might be tempted to repeat their crimes (although the ACFE study found that 85% of people who committed fraud had never been charged with it before).

• Use QuickBooks or another electronic financial tracking system. Discrepancies are harder to hide in computerized programs.

• Divide financial duties amongst multiple employees. For example, one person should deposit checks, another should submit invoices to customers, and another should pay the bills.

• Open and review monthly bank statements yourself. Business owners should also regularly scan checking accounts for any odd charges, suspicious checks, unusual payments, or out-of-the-ordinary deposits.

• Ensure that the payments the business receives match its billings. Differences may indicate that someone has opened another account with your company’s information and is using it to make deposits for personal use.

• Charge most business expenses to credit cards. Statements are easy to review for irregularities, and many cards offer hotel and airline reward points.

• Use backup. Two individuals should count and track petty cash, which is often the easiest and most tempting to steal. Also, require two signatures on checks above certain amounts.

• Solicit objective help. Periodically contract with independent external consultants to audit the business’ financial records.

• Foster open communication. Tips (especially from other employees) are the most common way that embezzlement is uncovered, according to the ACFE study.

• Know your employees. Show care for all staff and keep up with what is going on in their lives. Pay extra attention to those who are unhappy or in financial trouble.

• Accept that you can never completely trust anyone. Desperation drives people to do crazy things.

If, despite these precautions, embezzlement still occurs in your organization, you have several options:

• Report the crime to the authorities: Only do this if you are certain of the person’s guilt. Ideally, any criminal charges should be bolstered by a written confession (or one that was made in front of two witnesses). If you choose this route, a former prosecutor we spoke to recommended contacting the solicitor’s office directly. This option does have some drawbacks, including litigation hassles and negative repercussions on the embezzler’s family.

• Let the person make restitution: If the thief can repay you quickly, hire an attorney to draw up a formal loan note. (The solicitor counseled against long-term payments because they weaken your case if you must prosecute later.) You will need to acquire personal guarantees from the perpetrator and his or her spouse, like liens placed on their home. This option allows you to recoup your losses and for the perpetrator to avoid embarrassment; however, the chances of you ever seeing your money again are slim!

• File a claim with your insurance company: They will ask you for proof and will cover the amount paid out to you by prosecuting or making an agreement with the thief. Be aware that even if the money is recovered, your insurance premiums may rise.

Choose your path carefully, being sure to speak to a variety of spiritual leaders, lawyers, financial experts, law enforcement officers, and others who may be able to offer helpful advice.

The bottom line: Embezzlement is one of the most financially and emotionally devastating threats a business may face in its lifetime. Although there is no foolproof way to avoid everyone who may try to steal from you, proactively protecting your business can make it harder for them!

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Blake DuBose graduated from Newberry College School of Business and is president of DuBose Web Group. View our published articles at www.duboseweb.com or e-mail him at blake@duboseweb.com.

Mike DuBose has been in business since 1981 and is the author of The Art of Building a Great Business. He is the servant owner of three debt-free corporations, including Columbia Conference Center, Research Associates, and The Evaluation Group. Visit his nonprofit website at www.mikedubose.com.

Katie Beck serves as Director of Communications to the DuBose family of companies. She graduated from the USC School of Journalism and Honors College.

Most of us would say that ethical behavior means doing the right thing and being honest. Many think of a famous C.S. Lewis quote: “Integrity is doing the right thing, even when no one is watching.”

Even in dire times, ethical people retain their morals. Recently, Addie Mack at Columbia Classic Lincoln called to tell us that we had overpaid a car lease by $1,000! He could have easily neglected to say anything, hidden the overpayment, and kept the money, but instead, he chose to do the right thing. Needless to say, we were impressed!

How can you, as a leader, build a company culture full of honest, ethical people like Addie?

Practice being ethical: One cannot simply say one day, “Our company is going to be ethical!” and expect everyone to comply. It takes a lot of effort, time, modeling from leaders (and each other), and consistent behavior to create such a work culture. Leaders must also make it clear that unethical behavior by anyone within the organization is unacceptable.  

Establish your values: We debated what ethical behavior should look like as a company and incorporated these ideas into our strategic plan. We have posted our values on our walls and frequently refer to them while making decisions. Encourage all leaders to put any choices they make through your organization’s value screens first.

Create an open, candid environment: Leaders and staff should be able express their concerns about anything—including unethical behavior—without fear. Everyone should face the facts, even those that are brutal. Leaders should encourage staff to confront them (tactfully) if they feel that the company is doing something wrong.

Employ outstanding, ethical people: Screen out the bad eggs through tough hiring practices. With help from a committee, take all candidates through several interviews and psychological profile tests. Probe deeply to identify character weaknesses, and examine their backgrounds very carefully, looking beyond just the references they provide.

Imagine it in print: Visualize what you are about to do splashed on the front page of the newspaper. Would you like for God, your minister, friends, spouse, children, relatives, employees, and others to read that article? If not, don’t do it.

Don’t cause stress: Our team leaders are keenly aware that we have to make a profit to pay the bills, but we don’t run people into the ground trying to keep the money rolling in. We believe that this results in happier employees who work smarter, not harder.

Take only what you need: To ensure that our staff has the resources to do their jobs effectively and with reasonable stress levels, we take out only modest company profits and reinvest the rest into the business. Taking care of your staff pays healthy dividends!

Teach others to value happiness: Help your staff to understand both who they are and how to appreciate others without trying to place them into boxes. Everyone is different and we must exhibit patience and love for those who do not think like we do.

Solicit solid advice: Have a few trusted advisers who will give you candid feedback about potential choices and the resulting problems and issues. Don’t solicit advice from those who will tell you what you want to hear; rather, ask those who will look at the situation from different angles and tell it like it is. Then, LISTEN!

Terminate employees who are unethical, immoral, or do not fit into your culture: You simply do not want the wrong staff in your company because they can start problems and spread negativity. To make things worse, your best employees may get fed up and leave!

Make commitments with caution: Think carefully about the decisions and promises you make to ensure that what you say is what you do. Always “underpromise and overdeliver.”

Create a company and culture that are about more than just making money: Our companies’ purpose is to create opportunities to improve the lives of our staff, customers, and the less fortunate. Thus, we organize volunteer opportunities for staff during work hours and give away large donations to deserving charities.

Be humble and teach teamwork: Emphasize the value of humility and discourage selfish people who seek attention by bragging. Stress “we,” not “I” and share credit and rewards when possible. Ensure that everyone gets kudos and a serious pat on the back regularly. Look for things employees do right, especially ethical behavior, and reward them. 

When your folks make mistakes, don’t zap them: You want to be a patient teacher and model of good ethics. Holier-than-thou leaders do not usually inspire ethical behavior in others—they just turn people off. Guide and coach staff in a caring way to make good, fair decisions, with the ultimate goal of it coming naturally to them.

If you don’t feel good about something, reconsider! If you feel knots in your stomach, wake up in the middle of the night, or find yourself feeling worried or guilty about a decision, be careful! Reevaluate the choice and ask yourself if it is truly the ethical way.

Ask for God’s help: If you are spiritual, seek a higher power to help you overcome your human nature and desire to do evil.

Admit wrongs: When you slip or fail, admit it and ask for forgiveness. We all make mistakes, but only great leaders reveal them, use them as learning opportunities, and build on them.

Employ the Golden Rule: Simply put, treat people like you want to be treated. Do what you know is right rather than catering to a lust for power, greed, or money. As John Maxwell wrote, “You can go for the gold, or you can go for the Golden Rule.”

The bottom line: Great companies are filled with ethical people and steered by leadership that is not solely profit-focused. Emphasize high quality standards, but be satisfied with a little less of the green stuff and a lot more humility.

In his book Street-Smart Ethics, Clinton W. McLemore says, “Ethics, like laws, exist to bring out the best in us and, in the process, to assist society and perhaps even to advance civilizations.” Personally, we find that inner peace and contentment pay much richer dividends than a whopping cash flow. It is an investment that will benefit you, your staff, your family, and your company more than you know!

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Blake DuBose graduated from Newberry College School of Business and is president of DuBose Web Group. You can view our published articles at www.duboseweb.com.

Mike DuBose has been in business since 1981 and is the author of The Art of Building a Great Business. He is the servant owner of three debt-free corporations, including Columbia Conference Center, Research Associates, and The Evaluation Group. For more articles, visit his nonprofit website www.mikedubose.com.

Katie Beck serves as senior technical writer to the DuBose family of companies. She is a graduate of the USC School of Journalism and Honors College.

© Copyright 2008-2011 by Mike DuBose. All Rights Reserved. You have permission to forward this article to a friend or colleague and to distribute it as part of personal or professional use during the year 2008 in its full content with all credits to the author. However, no part of this article may be altered or published in any other manner without the written consent of the author. If you would like written approval to post this information on an appropriate web site or to publish this information, please contact Katie Beck at Katie@grantexperts.com and explain how the article will be used. We appreciate you honoring our hard work and we try to accommodate any requests in a timely fashion. Shorter versions of some articles are available upon request.

Apple may be the most admired company in the world. Valued at $170 billion, much of the company’s success is owed to its late founder, Steve Jobs, who is often called one of the most influential business leaders of the early 21^st century.

Many people have sought to understand Jobs, a complicated but brilliant man whose flaws and idiosyncrasies played out alongside his genius and foresight. Walter Isaacson’s new biography (authorized by Jobs before his death), sheds some light on his thought processes, visions, insight, and philosophy.

Steve Jobs’ behavior was often eccentric, even off-putting. A control freak, so driven by perfectionism that he couldn’t choose home furnishings, he also had poor hygiene and thought that his vegan diet meant he could go days without bathing. Although a billionaire, Jobs rarely shared Apple’s profits or participated in philanthropy like his peer Bill Gates. In the end, he put off surgery to remove a tumor for nine months, which may have allowed his cancer to spread and ultimately contributed to his death in October 2001 at 56 years old.

The man who helped make Apple a household name could also be tactless in interpersonal relationships. Job’s inability to hide his opinions or soften their delivery manifested itself in “a conscious readiness, even a perverse eagerness, to put people down, humiliate them, and show he was smarter,” according to Isaacson, who says that Jobs was “rough on people.” This did not exclude family, friends, or employees, which led to strained relationships with Jobs’ children and staff alike. His perfectionism struck fear into the heart of Apple’s employees, who tried desperately to please him, and he raged against competitors who he thought had stolen his ideas. Isaacson’s book notes, “Driven by demons, Jobs could drive many around him to fury and despair.”

Yet despite considerable personal flaws, Jobs was an undeniably successful inventor, visionary, and business leader who raised three struggling companies (including Pixar) to Fortune 500 status. At the time of his death, Apple had more cash than the federal government. What about Jobs, and the way he ran his company, contributed to this astronomical success? The following are some ways that Steve Jobs’ Apple became the industry leader that it is today.

(Strategic) Differences: In a crowded marketplace, successful businesses stand out. They don’t predict the future—like Apple, they invent it. Jobs and his staff met weekly to brainstorm, and his vision inspired and galvanized his staff. This created an atmosphere where, as Jobs toldTime, Apple could “do things that the other guys can’t do.” Apple’s “Think Different” motto also sums up this philosophy.

Execution: Jobs valued creativity, but knew Apple also had to “get things done!” He made decisions quickly and decisively.

Inspired Staff: Jobs believed that he could do anything, and he convinced his staff that they could too. Employees genuinely liked working for Apple and using its cutting-edge products, which helped keep turnover low. Most were more than willing to go the proverbial “extra mile” for the company. Jobs himself always said that it was a rewarding, magical journey.

Staying Hungry: Success can be your enemy.Don’t ever believe that you’ve arrived and can sit back and relax. Take a cute from Apple and always be thinking about the next step.

Clear Branding: Customers should know who you are, what you stand for, and where your talents lie. Apple products are easily distinguishable by their slick marketing and design.

Understanding the Customer: Apple employees served as the first focus group for the company’s products. Jobs and other leaders pushed products that their staff desired and met frequently to anticipate which products and services would be appealing to their customers. Apple’s customer loyalty helped the company rebound quickly if it fell behind in the marketplace.

Focus: Job’s passionate, laser-like dedication to a few things at a time is reminiscent of Jim Collins’ teachings in Good to Great. Jobs learned to turn down opportunities that didn’t fit within Apple’s unique skills and goals. Isaacson notes, “He emphasized that you should never start a company with the goal of getting rich. Your goal should be making something you believe in and making a company that will last.”

Simplicity: When developing products, the Apple culture emphasized ease-of-use. Jobs knew that people often judge a book by its cover, so even product packaging was designed to be minimalist and easily recognizable.

High Expectations: For Apple,excellence was the norm. Jobs said of the staff, “By expecting them to do great things, you can get them to do great things.”

Artistic Thinking: Jobs and his staff took time to perfect their products, even if it meant redoing them over and over. Likewise, our employees and leaders take pride in perfecting our work and client relationships like artists working on a masterpiece.  

Curiosity: Entrepreneurs are always dreaming. We see things others don’t and do things others think impossible. Like Jobs, entrepreneurs never give up on their vision, even when facing considerable obstacles.

Innovation: In 2007, a profitable division of one of our companies dwindled to nothing and we had to quickly reconsider the products and services we offered. If we had been constantly reinventing our business (likeJobs and his team), we would not have been caught off guard by the changes in customer demands.

Collaboration: Jobs demanded that all divisions work together as one on Apple products. Cooperation and good communications were ingrained in the corporate culture.

Effective Marketing: Jobs knew that a company could have the best products in the world, but without good marketing, they would go unnoticed. Thus, Apple spent huge amounts on marketing and subsequently obtained a cult following.

Smart Risk-taking: Jobs carefully assessed each risk and then took bold moves. However, he was not afraid to pull the plug on or seriously delay projects that he felt were unready for the marketplace.

Continuous Learning: Jobs developed Apple University, where executives taught classes so the “Apple style of decision making would be imbedded in the culture.”

Focus on the Future: Jobs hired only outstanding, talented people and integrated his philosophy deeply into Apple’s genes. These factors ensure that Apple will survive beyond his death, and his spirit lives on in the company and its employees.

Adam Beam of The State newspaper summed it up: “Being Steve Jobs may create a great company. But it may not be the best way to lead a life.” Jobs made a lasting contribution to the business world, although at the cost of many personal relationships. However, the business tactics he applied at Apple are valuable to leaders worldwide.

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Blake DuBose graduated from Newberry College School of Business and is president of DuBose Web Group. You can view our published articles at www.duboseweb.com.

Mike DuBose has been in business since 1981 and is the author of The Art of Building a Great Business. He is the servant owner of three debt-free corporations, including Columbia Conference Center, Research Associates, and The Evaluation Group. For more articles, visit his nonprofit website www.mikedubose.com.

Katie Beck serves as senior technical writer to the DuBose family of companies. She is a graduate of the USC School of Journalism and Honors College.

© Copyright 2008-2011 by Mike DuBose. All Rights Reserved. You have permission to forward this article to a friend or colleague and to distribute it as part of personal or professional use during the year 2008 in its full content with all credits to the author. However, no part of this article may be altered or published in any other manner without the written consent of the author. If you would like written approval to post this information on an appropriate web site or to publish this information, please contact Katie Beck at Katie@grantexperts.com and explain how the article will be used. We appreciate you honoring our hard work and we try to accommodate any requests in a timely fashion. Shorter versions of some articles are available upon request.

If burnout goes unaddressed, entire companies can lose their zeal for building great products and services and keeping customers happy. We have taken steps to prevent employee burnout as part of our goal of creating great businesses with happy, customer-driven employees and satisfied clients. Our employees look forward to coming to work most days because we apply the following ideas:

Understand how your companies are REALLY doing: Conduct confidential online surveys, employee interviews, and small group discussions where employees can fearlessly voice their concerns and the brutal truths to senior leaders. Share findings and openly admit problems to your staff. Then, make changes!

Show care and respect for staff: Solicit their opinions, be compassionate, inquire about their personal lives, and don’t treat them like objects. Instead, make them feel like company owners, the #1 workplace value desired by employees, according to an October 2011 Wall Street Journal article by Laura Petrecca. A work/life balance came in second.

Never make promises you cannot keep: Be careful not only what you say, but what people perceive you as having promised.

Recognize and reward people: Actively look for things people do well and thank them. When you criticize people, coach rather than berate them.

Hire outstanding people: Employ great, positive staff members with strong work ethics and high quality standards. Organizations are energized by can-do people who “get things done.”

Fire the wrong people with dignity and compassion: Your staff will observe how you handle terminations, so do it respectfully and kindly. If you must lay people off, do it at all at once, not in waves, and provide caring post-employment assistance.

Develop strategic plans and promote teamwork: Establish a clear purpose beyond simply making money, along with a mission, vision, and a plan to achieve them all. Teams in strategic workplaces handle stress better and are more productive. Keep everyone involved in challenging work and in rowing together toward common goals.

Communicate: Keep staff informed of important events, which negates misinformation and gossip.

Set boundaries on work: People who don’t set rules for how they spend their time can find work eating up lunch hours, early mornings, and late nights. A 2006 University of California study found that working more than 51 hours per week over an extended time period can triple the risk of hypertension. Thus, working overtime can really hurt your business—and employees themselves. Of course, you may occasionally need to work longer-than-normal days to “get the job done,” but it shouldn’t be a regular occurrence. If, like ours, your folks are passionate about what they do, have purpose, feel appreciated, help steer the ship, and enjoy their colleagues, they will be willing to work hard to make the business succeed.

Successful businesspeople who have achieved true satisfaction with their lives know how to set limits and leave work at the office. Those who don’t often end up hating what they used to love!

Take care of yourself: Some people refuse to take breaks from work, eventually resulting in serious health issues. Back pain, insomnia, anxiety, and depression are potential outcomes of workplace stress and burnout. If you want to dig out of the “burnout hole,” exercise is the cheapest medicine. There exists “a wealth of knowledge that shows that exercise and recreational activities reduce stress, increase productive moods, and build social supports and vitality, the lifeblood of enterprises,” according to an Entrepreneur Magazine article by Joe Robinson. Thirty minutes of brisk exercise five days a week will bolster emotional and physical health.

Lack of rest caused by excessive work hours or stress can also lead to sleep problems, depression, and anxiety, as well as reduced productivity in the long run. Circadian, a workforce consulting firm, found that 60-hour work weeks led to a 25-percent reduction in productivity. Likewise, the Bible says, “Six days you shall work, but on the seventh day, you shall rest”—even God acknowledges that we cannot burn the candle at both ends all week long! Try calming activities like yoga, prayer, or meditation to reduce stress and make it easier to rest and relax.

 Dr. Donna DeCarolis of Drexel University School of Strategic Initiatives notes, “If we want ourselves and our employees to be innovative, we need time to do things other than work. Entrepreneurs need to have periods of intense activity, but if it isn’t balanced with reflection, relaxation, and doing something to take your mind off work, you won’t be able to be innovative, creative, or find solutions to problems.” When it comes to avoiding burnout, mental, emotional, and physical rest are all important to protect employees’ happiness.

Eliminate distractions: Particularly when working under tight deadlines or in stressful conditions, business leaders and staff should turn off e-mail notifications, cell phones, and telephones, only checking them periodically. This allows them to focus instead on their top priorities. Otherwise, the endless beeps and rings can contribute greatly to stress, burnout, and decreased productivity. You may have to close your office door to avoid in-person interruptions as well!

Have fun! If your idea of “fun” is making money, think again! Everyone needs something in their lives beyond work. Mike’s passions include his 57’ Chevy, 64’ Corvette, and 66’ GTO convertibles, as well as traveling to Hawaii and Europe, and Blake has been traveling with him since he was six years old. There is nothing better to us than boarding an airplane destined for Maui, partying on the way, sitting by the pool, eating great food, and listening to Hawaiian waves and music. When we return, we’re ready to innovate. Such regular, periodic breaks are necessary to recharge your batteries and boost creativity! For some, it can be as simple as taking walks and reading books. Whatever your stress outlet, as Nike says: “Just do it!”

The bottom line: Burnout affects not only the person directly suffering from it, but the whole organization as well. Creating great businesses with positive cultures takes time and effort, but your staff, customers, and business—not to mention your back—will appreciate the benefits!

Embezzlement rarely registers as a concern for most business leaders. Few talk about it or realize that it can happen to them, yet it is more common that most people think!

A business colleague recently shared a depressing story about a highly-paid bookkeeper with a long tenure at his company. The person was a strong spiritual model, friend, church leader, and a very nice person. She had also stolen large amounts of money from the business, paying her personal American Express bill directly from its bank account. Because of her position as bookkeeper, as well as the fact that the company’s seven credit card accounts made it plausible for a credit card bill to show up on the bank statement, she was able to do this undetected for two years.

Employees were stunned. For some, she had been the go-to person for counseling and prayer. Many equated their feelings after news of the theft broke to those after a death in the family.

We viewed this incident as an opportunity to assess our companies’ risks and tighten up financial controls. We contacted other business leaders, nearly all of whom had similar experiences or knew others who did. Most of these cases were handled quietly and never reported in the media.

A 2010 global fraud study conducted by the Association of Certified Fraud Examiners found that a typical organization loses 5% of its annual revenue to fraud and theft, with a median loss of $160,000. That amount could bankrupt many small businesses!

Detecting fraud is often difficult; in fact, the study reported a median of 18 months before fraud was discovered. Forty percent of the time, tips from customers, vendors, anonymous informants, or other employees led to the discovery. Other methods included:

• Management review - 15%
• Internal audit - 14%
• Accidental discovery - 8%
• Account reconciliation - 6%
• Document examination - 5%
• External audit - 5%

Many steal because of financial debts, greed, or unexpected expenses. They may live above their means, see the theft as a loan to be repaid, or justify it because of perceived mistreatment by the company. Attempting to get away with fraud can even be a game to some. Business consultant Dr. Rhonda Savage notes, “Managers are the usual culprits for the worst cases of fraud. It’s typically not the new-kid-on-the-block, but the long-term and trusted employee who ends up being the company crook.”

The possibility of theft is decreased if employees know that they may get caught; however, as Steve Sahlein, co-president of the American Institute of Professional Bookkeepers, reports, “Small businesses don’t always have the needed internal controls “to prevent fraud.

Frank Thomas, CPA, and other accountants recommended that business owners do the following to prevent fraud and theft:

1. Conduct background, criminal, and credit checks on all potential employees.
2. Use computerized financial tracking systems such as QuickBooks.
3. Review monthly ledger printouts of all business checks that have been written, to whom, and in what amount.
4. Distribute financial duties (reconciling bank statements, writing checks, making deposits, invoicing customers, etc.) amongst multiple people.
5. Consider having an independent external audit conducted. Audits can ensure the books are balanced (not cooked!), proper controls are in place, and expenses are correctly documented.
6. Business owners should open and review bank statements themselves, searching for any unusual expenses, checks out of order, suspicious payments, or missing deposits.
7. Another employee should stamp any checks with “DEPOSIT ONLY” and make the deposits.
8. Require checks above a determined amount to be signed by two individuals.
9. Be aware of disgruntled or stressed employees who may be having financial difficulties
10. Establish a positive work environment with open communication, making it easy for employees to report problems such as theft.
11. Charge most of your expenses to credit cards. American Express provides statements that are easy to review for unusual expenses (and, as a bonus, offers hotel and airline reward points).
12. Compare client billings to the payments your company has received. Employees could possibly open secret accounts at other banks with your company’s Federal Identification Number, make deposits, and write checks from the account for personal use.
13. If you have petty cash, maintain a close watch on it and document it well.
14. Don’t trust anyone completely!

Another way to protect yourself is to insure your business against theft-related losses. Independent insurance agent Scott Moseley recommends that businesses carry liability and comprehensive business insurance policies that include fraud, embezzlement, and theft coverage. Most policies are limited to $10,000 for each incident.

Financial officers can also be insured or bonded against fraud. A $100,000 Employee Dishonesty bond costs about $300 per year, depending on factors like the number of employees and officers in your company, Moseley said.

If you uncover embezzlement in your organization, you have several options:

File criminal charges: First, you should be 100% certain that the employee is guilty of stealing (obtain a written confession if possible). A law enforcement officer recommended going directly to the solicitor’s office to report the theft. Individuals who are charged with a felony will have fewer chances to repeat their crime because many businesses conduct pre-employment background checks. The drawbacks of this option include the stress of going through a court case and the fallout that reporting the crime will have on the embezzler’s family members.

Allow the employee to avoid prosecution by paying back the money: A solicitor we spoke to recommended against long-term payments unless the thief can repay you quickly because it will weaken your case if you have to prosecute later. If you do seek restitution, have an attorney draw up the loan note. It should be secured with personal guarantees from the perpetrator and his or her spouse, with liens placed on their home and other assets.

Report thefts to your insurance company: Your insurance premiums may be impacted even if you recover your losses. Insurance companies will ask for proof of theft for any claims and will seek to regain any money paid out to you by collecting it from the individual who stole the money, either through repayment or prosecution.

Whatever course of action you choose should come after careful thought. You should seek advice from spiritual leaders, attorneys, accountants, law enforcement, and company leaders before making a final decision.

The bottom line: Running a business is not easy. Just when you think you have seen it all, there comes another nightmare like embezzlement. There is no foolproof way to stop people from stealing, but you can make it more difficult for them to take your money!

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Blake DuBose graduated from Newberry College School of Business and is president of DuBose Web Group. View our published articles at www.duboseweb.com. 

Mike DuBose has been in business since 1981 and is the author of The Art of Building a Great Business. He is the servant owner of three debt-free corporations, including Columbia Conference Center, Research Associates, and The Evaluation Group. Visit his nonprofit website at www.mikedubose.com.

Katie Beck serves as senior writer to the DuBose family of companies. She graduated from the USC School of Journalism and Honors College.

“How did I ever get myself into this mess?”Who in the private or public sector has not had that painful thought? We sometimes develop partnerships based on first impressions and early conversations, only to face costly nightmares later!

Of all the horror stories we have heard since starting our family of companies in 1981, many complaints (and regrets) surround technology, especially Web design. The following comments were made by angry readers and customers who partnered with unethical, unprofessional Web companies:

• “My Web designer never calls me back. I feel like I work for them!”
• “I need to make small edits to my site, but it takes weeks of pleading for my Web business to make changes.”
• “When I wanted to change Web designers, I learned I don’t own my Website or domain address – they do! I’m trapped!”
• “My Website looks great, but no one can find it on the Internet.”
• “My Website is down and I get a recording when I call for help!”
• “I got a good deal, but my Website is useless!”

The technology field is similar to other professions in that customers can easily be pressured into paying for overpriced, ineffective Web services. Because there is no licensing authority to certify Web professionals, many consumers who rush to select a Web designer without conducting a thorough investigation end up with the wrong one.

How should I begin the search for good Web designers? Perform all of the following cautiously: inquire with friends, colleagues, business owners, and non-profit staff; contact Web designers listed at the bottom of appealing Websites; consult the Yellow Pages; and search the Internet (for example, Google “Columbia SC Web Design”). As in any field, Web companies’ philosophies, ethics, work quality, knowledge, experience, financial security, pricing, and customer service vary significantly. Solicit proposals from several Web businesses to find the best fit for your needs. Before making a final selection, check with your local business bureau to see if there have been complaints filed against the business.

What should I look for?Competent Web companies that create great Websites will often have these characteristics:

1. Employs customer-driven, friendly staff — Selecting the right Web design company is like choosing a partner for marriage—don’t rush into it! First impressions are important, but be aware of companies that “over-promise and under-deliver.” Jack Welch in Winning and Malcolm Gladwell in Blink both suggest that if you don’t feel good about something, don’t do it. Base your decision on facts and impressions.
2. Develops professional Websites — Customers are less likely to do business with companies that have poorly-constructed, unprofessional-looking Websites. Your Website must have the “WOW!” factor, be easy to navigate, contain helpful content, and include clear contact information. Quality Web design companies will carefully assess these factors during your Website development stage. Be sure to study a Web design company’s portfolio—if their clients’ Websites look mediocre, assume that yours will be similar. Contact their customers to learn firsthand about their professionalism and quality of their work. Look beyond provided references.
3. Offers a content management system (CMS) — This is the ability to make text and picture changes in-house, instead of waiting for (and paying for) your Web design company to make them. Designers must still make major structural changes, but having CMS allows you to easily update your Website’s content, offering customers up-to-date information without costly delays.
4. Provides a plan to increase your Web traffic through Search Engine Optimization (SEO)— This unique process allows your Website to be found quickly when potential customers type your services into search engines like Google. As technology advances, Internet searches are becoming more common than traditional information sources like the Yellow Pages, radio, and print media. Therefore, your company should be easily found on the Internet when consumers search for your services. If searches do not find you on the first page of results (usually, in the top 10 listings), potential customers are going elsewhere! Competent Web professionals will guide you in maximizing your Website’s marketing potential.
5. Helps you stay in front of your customers—Once your Website is operational, it is important to keep in touch with your clients. Since 350 million people frequently use social networks like Facebook and Twitter, consult with your Web designer to determine effective ways to utilize these sites. E-newsletter and e-mail campaigns are other economical ways to provide your customers with updates, specials, and important information. Quality Web companies can provide a custom program with an e-mail address database for you.

Also, look for a company whose staff members:

• Are customer-driven, friendly, and interested in learning how your organization works.
• Listen to your needs, answer questions, and provide suggestions.
• Are college-educated in business, marketing, and/or technology areas.
• Focus primarily on Web design and not a host of other services—or else your Website development may be subcontracted to another company whose staff you have never met.
• Speak to you in understandable terms (not techno-babble).
• Are quality-driven and honest about what they can do.
• Have proven graphic design, coding, business, and marketing experience.
• Educate you on the Web process.
• Develop realistic, understandable action plans with timelines.
• Maintain a philosophy of doing fewer projects really well versus serving many customers fairly well. You should be treated as if you are the only client the Web design company has.
• Provide Web services and ongoing support at reasonable prices. Don’t go too cheap—remember that it takes money to make money! However, don’t pay for expensive services you won’t need.
• Give you Website rights and ownership.
• Work for an established, financially-strong business that maintains high-quality offices (no fly-by-nights!).
• Provide copywriting services and catch grammatical errors. Ask if they have technical writers on staff with degrees in English or journalism.
• Offer monthly traffic reports to assess how visitors interact with each page of your Website.

Your project is a substantial investment, so read written bids and contracts carefully. Agreements should be mutual and must be more concrete than a simple handshake.

Expect to wait in line for quality companies that focus on a few customers at a time. It is best to select a turnkey company to provide all Web services so there aren’t “too many cooks in the kitchen.” Your Website reflects your organization, so don’t rush the process. Depending on your objectives, a realistic timeline to field test and put your Website into operation is 60 days. Updates take less time.

The bottom line:The more work you conduct up front to select a great Web design company, the less frustration and loss you will experience down the road. You want a professional Website that works, draws clients, and generates profits; a customer-driven Web company whose staff exceeds your expectations; and competent Web professionals who will support you and your Website well into the future.

Remember: you get what you pay for!

© Copyright 2010 by Blake DuBose and Mike DuBose. All Rights Reserved. You have permission to forward this article to a friend or colleague and to distribute it as part of personal or professional use during the year 2010 in its full content with all credits to the author. However, no part of this article may be altered or published in any other manner without the written consent of the author. If you would like written approval to post this information on an appropriate web site or to publish this information, please contact Katie Beck at Katie@grantexperts.comand explain how the article will be used. We appreciate you honoring our hard work and we try to accommodate any requests in a timely fashion. Shorter versions of some articles are available upon request.

Blake DuBose is a graduate of the Newberry College School of Business and is president of DuBose Web Group.

Mike DuBose has been in business since 1981 and is an instructor with the University of South Carolina graduate school. He is the servant leader and owner of three debt-free corporations, including Columbia Conference Center, Research Associates, and The Evaluation Group. Mike has completed his book The Art of Building a Great Business. For more helpful articles, visit his non-profit Website www.mikedubose.com.

In Good to Great, Jim Collins determined that great organizations hire self-directed, competent staff who have positive outlooks and are team-focused. If you make greatness your goal, as we did in 2007, staff who don’t fit into your vision will have to leave.

There are ways to avoid hiring the wrong people in the first place. The tougher you screen applicants upfront, the less likely you’ll have to fire problematic employees later. All new hires should go through a provisional period of at least six months so you may assess them and correct any hiring mistakes.

If you are thinking of terminating an employee, you should be able to say honestly (and document thoroughly) that you tried your best to promote his or her success. First, provide all employees with job descriptions that clearly explain expectations, duties, and how performance will be measured. Ongoing feedback is crucial to providing new and existing employees with confidence-boosting compliments, as well as specific examples of areas in which they must improve.

When employees require counseling or discipline, take notes. Work with them to create action plans for improving their problem areas, and have them sign letters specifically detailing any violations if they fail to improve.

Some transgressions simply cannot be excused, including: unethical, illegal, or dishonest acts; discriminatory or harassing behaviors; incompetence or inability to perform job duties;  mismatch with work culture; poor-quality work; customer and employee complaints; inability to work with teams; rude, arrogant, and resistant-to-counseling personalities; making similar mistakes repeatedly; not following policies; poor or inappropriate customer service; requiring constant micromanagement; missing deadlines; hostile or threatening behaviors; and using alcohol and illegal drugs during work, to name a few.

Employers in at-will states, like South Carolina, tend to have more rights than others. Still, detailed, comprehensive employment contracts (ours is seven pages) go a long way toward protecting from misbehavior or attacks by former employees. Employee handbooks can also provide evidence in your favor by clearly defining company rules; however, they do not mean you will not face a lawsuit or EEOC complaint (been there, done that)! If one is filed, you will need clear, documented evidence of previous attempts to help the employee improve.

Before firing someone, consider these points:

Ask yourself, “Do I really want to terminate this person?” Seek advice from human resource professionals and other unbiased parties.

Never fire based on emotion: While it may feel good to give them a swift kick, consider cooling off for 2-3 weeks. If you terminate incorrectly, you may spend hundreds of hours defending yourself in court or EEOC hearings, even if HR professionals gave you the green light. (We’ve been there, too!)

Seek alternatives: If you are unsure that the person must be fired, try other avenues first. Consider allowing the employee to work under a different manager, and make sure that the problems are not being caused by a toxic work culture. If the employee is new, has he or she been given enough time and training to learn the job? If not, consider extending the provisional employment period. (However, if they’re not cutting the mustard within six months, we believe it’s time to go, especially because employers have more rights during the provisional period.)

Other options include demoting the person, trying them in other positions or departments, or eliminating their position but offering them contractual work.

Look for hidden causes: If employees who excelled in the past begin exhibiting performance issues, they may be having personal problems and should be gently confronted, given time off, or encouraged to seek professional help. Be careful, however, to keep your distance from their crises, since this area can be legally dangerous, emotionally draining, and distracting. Though you should be understanding of people who are experiencing difficulties, make sure to treat all employees consistently and fairly.

Beware of guilt: There is no foolproof hiring process, and even the best of us make mistakes. When someone must be terminated, both parties share responsibility for having chosen each other. Upon realizing they have made a hiring mistake, some leaders try to situate problematic employees into other jobs, change their responsibilities, or “make them fit” the business to ease their own guilt. However, stalling on necessary firings wastes valuable time and can make leaders drained and distracted.

All good leaders care about their employees, but for the sake of the company, you must judge performance primarily on job descriptions, professional behavior, and value within the company. Firings become more difficult when the people in question are friends or relatives, likeable people, or simply cannot do better, despite how hard they try. However, if leaders allow incompetent or inappropriate staff to stay too long, other employees and customers may become frustrated with their inaction.

Design termination plans carefully: When you fire employees, you change not only their lives, but the organization itself. Christine Davis of the New Hampshire Department of Public Development reports that, even in an at-will employment state, “You have to be concerned about the legal ramifications of firing someone.” As she explains, many people are members of a protected class (due to age, race, gender, disability, etc.), and might sue for discrimination.

Our philosophy is to “hope for the best, plan for the worst.” Think in advance about what will happen if a person leaves. If they have been with the company for a long time, their exit may cause disruptions. Therefore, you should plan accordingly. Who will absorb their responsibilities? Will things be better or worse? How will customers and staff react? When and how will the termination occur? How will you respect the needs of the employee and help him or her transition to other employment? Will you provide severance pay and/or allow unemployment benefits? Have a human resources professional review your plans once they are made.

Fire with dignity: No matter what employees have done, they’re human, so follow the Golden Rule and treat them like you’d like to be treated. Terminated employees can go through feelings of shame, anger, low self-esteem, and rejection; in fact, losing one’s job is ranked almost as traumatic as a death in the family on many stress tests! Your job as a leader is to transition the wrong employees “off the bus” with the least amount of conflict possible. As a litigation lawyer once warned us, “Wounded people with damaged egos do desperate things!” You don’t want to create “assassins” who will tell everyone (including customers and staff) how you mistreated them.

Bottom line: Be careful, deliberate, and sensitive. Then, if you are certain the person needs to go, pull the termination trigger (carefully)!

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Blake DuBose graduated from Newberry College School of Business and is president of DuBose Web Group. View our published articles at www.duboseweb.com.

Mike DuBose has been in business since 1981 and is the author of The Art of Building a Great Business. He is the servant owner of three debt-free corporations, including Columbia Conference Center, Research Associates, and The Evaluation Group. Visit his nonprofit website at www.mikedubose.com.

Katie Beck serves as senior writer to the DuBose family of companies. She graduated from the USC School of Journalism and Honors College.

Our research and experience have shown that business is like travel: the smoother the customers’ ride, the greater the chance that they will patronize businesses, come back for more, and, ultimately, tell others about their positive experiences. Unfortunately, many clients today are stuck saying, in the words of the Rolling Stones, “I can’t get no satisfaction!”

As noted by Jim Collins in Good to Great, great businesses promote customer-driven philosophies that are embraced and practiced by their employees. Likewise, our studies have shown that maintaining client happiness is an art, and to achieve it, staff at all levels must be trained in delivering high-quality customer service.

Let’s examine how to build prosperous client bases:

1. Employees are your first clients: A happy staff means delighted customers.
2. Build the right product and they will come: Businesses should primarily focus on their profitable core services, but should also create new products to adapt to changing markets.
3. Be different: You can stand out in today’s crowded marketplaces by offering unique products and niches to attract customers.
4. Be strategy-minded: If you don’t know where you’re going, chasing dollars can easily become your mission. Be the best in a few areas, rather than stretching yourself thin on too many lower-quality endeavors.
5. Market effectively: A strong Internet presence is critical in these high-tech times (through a website, Twitter, Facebook, etc).You can have the best product in the world, but if you don’t market it correctly and track which advertising methods work, you will fail!
6. Provide a human touch: Technology is killing many businesses. Aggravating computers control customer service, asking too many questions, and live humans (if ever reached) repeat those questions again. At our Columbia Conference Center and DuBose Web Group, real people answer the telephones 90% of the time.
7. Return calls the same day: Many customers go down lists of potential service providers, so the first human to answer their calls often secures the sale.
8. Make excellent first impressions: When clients call, they should hear an attentive voice and be able to visualize a smiling face on the other end of the telephone. Make them feel like they are your only customer.
9. Be punctual: When you visit clients, arrive five minutes early. If running late is unavoidable, call to let them know.
10. Be truthful: Clients don’t like surprises. One vendor charged us $50 for an estimate on a backup generator. We weren’t happy!
11. Look professional: Be sure that employees’ clothes are appropriate, neat, and clean.
12. LISTEN: First, let the customer describe their needs, and then provide input as their guide. Too often, “experts” tell clients what they “need,” forgetting to listen to what they “want!” Arrogance is a major sale-killer. Write down and repeat all client desires to ensure accuracy.
13. Respond promptly: When clients ask for estimates, reply within 72 business hours. It’s amazing how many contractors we have had to call multiple times to receive an estimate! Avoid pressuring clients, but you should follow up with them to ensure they received your proposal. A second set of eyes reviewing your proposal can catch errors before you send it to the customer, thus making your company appear more professional.
14. Underpromise and overdeliver: Too often, aggressive salespeople promise the world for short-term commissions, leaving their companies unable to deliver. When working with clients, remember Murphy’s Law: Anything that can go wrong will go wrong! Customers don’t care about anything other than you following through on what was agreed upon in a timely manner. Too many contractors take forever to complete a job, then wonder why they are unprofitable. It’s simple: if you tell a customer you’re going to do something, JUST DO IT!
15. Provide consistent service: In the past, we have been impressed by companies that executed perfectly (on the big sale) enough to list them in our Quality Vendors Guide. Then, when their products needed minor repairs, our calls to them went unreturned. This kind of runaround sends a clear signal to the customer: you are important when the big bucks are flowing, but after we have made our money, forget it!
16. Bill correctly: Submit accurate, timely bills to the right person. If necessary, send friendly reminder notices, avoiding irritating computer-generated hate-mail or using aggressive collection agencies until you have exhausted all internal efforts. Sometimes, a simple telephone call can make headway in retrieving overdue payments.
17. Don’t aggravate customers: When we tell doctor’s office staff, “Nothing has changed since our last visit,” we often hear the infamous words “It’s policy,” followed by a request to fill out the exact same ten-page forms we completed before! Then, we wait hours to be seen. Your customers will appreciate it if you don’t act like it’s an honor for them to do business with you.
18. Stay in touch: Maintain regular communication with clients via e-mail, regular mail, telephone calls, and e-newsletters. Remember: out-of-sight, out-of-mind! Our newsletters provide useful personal and professional information, humor, and thought-provoking quotes, keeping us in front of customers without waving the “sales flag.” However, don’t swamp clients with too many communications. Based on a recent customer study we conducted, every 4-6 weeks will suffice.

Our philosophy is that our customers “sign our checks.” We employ the Golden Rule, treating them (and staff) like family and good friends. If you keep your promises and deliver outstanding services, customers will come back for more—and better yet, they will become your marketing advocates, telling others how well they were treated.

On the other hand, if you treat clients poorly, they will become “assassins,” so named by a Harvard University School of Business article. “Assassins” make it their mission to inform many people about their mistreatment. Recently, a friend’s debit card information was stolen (unbeknownst to her). Without alerting her, the bank froze her card and assets, causing her embarrassment when the card was declined at a restaurant. When she met with bank employees, however, they made her feel like it was her fault. She is now telling everyone about her traumatic experience, the bank’s name, and her plans to close her account!

The bottom line: You can spend years cultivating client relationships and lose them in days. Building successful, long-term client relationships is like growing a garden. There is no single ingredient that causes plants to flourish; rather, many strategies are implemented simultaneously over a long period of time. When you grow your garden right, it’s fun for you and clients…not to mention your bank account!

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Blake DuBose graduated from Newberry College School of Business and is president of DuBose Web Group. View our published articles at www.duboseweb.com.

Mike DuBose has been in business since 1981 and is the author of The Art of Building a Great Business. He is the servant owner of three debt-free corporations, including Columbia Conference Center, Research Associates, and The Evaluation Group. Visit his nonprofit website at www.mikedubose.com.

Katie Beck serves as senior writer to the DuBose family of companies. She graduated from the USC School of Journalism and Honors College.