Appendix C

Best Practices

The following have been suggested by members of the committee as practices to consider when looking for ways to improve your business. Some may not work in your type of business or operation, but many may be worth your consideration.

A. In Professionalism:

Cultivate entrepreneurial spirit, for example:

• be emotionally committed
• be willing to do whatever is necessary
• have enthusiastic commitment to your vision
• be willing to sacrifice time, money and energy
• network with colleagues.

Partner with other operators or companies in virtual corporations:

• associate and/or free-lance, offering special skills in a particular area.
• join a team to complete a specific project; team disbands when the project is finished.
• contract services, e.g. graphics, accounting, training.

Evaluate your strengths and weaknesses:

• ask others for feedback.
• use knowledge about other cultures to your company’s advantage.

Distribute work fairly, according to:

• nature of tasks
• past performance of employees
• number of employees.

Use technology to improve communications:

• if a thermocoated fax needs to be saved, recopy it onto better paper; it will last longer.
• set up voice mail so that a client speaks with a live person first.
  Give client the option of leaving a message with the receptionist or with voice mail.
  
• when using voice mail, the message should commence with: ‘Please don’t hang up.’
• announce outside calls to everyone in office, so the caller has a better chance of contacting the desired party immediately. Use voice mail only after business hours.
• use 1-800 numbers; they are inexpensive and popular with clients.
• when answering the phone, identify the caller before transferring the call.
  Be aware that callers may be offended if you choose not to take their calls.
  

Produce a newsletter; it can present an organized, professional, up-to-date image:

• send to existing and potential clients and suppliers.
• include, for example, new products or services, client profiles, tips, frequently asked questions, news, regulatory updates, consumer information, industry issues, upcoming events.

General:

• when listening to people, make notes so you remember to address their key points.
• when negotiating, agree at the start to achieve a viable outcome. This shows that you are serious.
• conduct a brainstorming session with partners and/or employees at the beginning of each week. This provides an opportunity to produce creative ideas and share information.

B. In Business Planning:

Business planning and market research are very important. Practice these on an ongoing basis:

• reserve and schedule one week per year for business planning. It should be done at the same time every year.
• keep key points of your business plan readily accessible so you can refer to them often, e.g. mission statement.

Use the services of competent professionals, especially a lawyer, banker and technology consultant:

• establish a relationship and build confidence with lenders and investors. This will establish a corporate history; lenders and investors may be more supportive in the future.
• bankers are often a good source of free advice.

General:

• when considering a new product line, ensure that clients intend to buy from you. Get a firm commitment before ordering.
• use formal, recognized research methodology.
• before a project is completed, schedule the next one.

C. In Finance:

Match term of financing to the life expectancy of the asset, e.g. if a computer will be obsolete in three years, do not finance it over five years.

Use computer accounting programs.

If you own several companies, group them together for GST filing purposes.

Prepare financial summaries to present information in a concise manner.

Show budget to staff. This can create an understanding of what is required for the business to survive on a daily, monthly and annual basis.

D. In Marketing:

Follow the 80/20 rule: 20% of your product generates 80% of your business. Allocate your attention and activities accordingly.

Choose goals that are realistic and appropriate for your business.

Marketing:

• the overall marketing budget should be based on a percentage of gross sales.
• develop a very basic, concise marketing plan which can be revised easily when necessary.
• capitalize on the marketing weaknesses of your competition.
• obtain a different viewpoint. Have another person analyze your marketing plan and identify its weaknesses.
• have a banker evaluate your marketing plan.
• use marketing activities and ideas that have been successful for competitors.
  Modify them to fit your business and try to improve on them.
  
• use strategies to attract clients to your business, e.g. two for one specials.
• when sponsoring an event, consider the demographics of those attending.
• take advantage of any opportunity to network, e.g. attend meetings, offer workshops.
• inform staff of company activities that are beneficial to the community, e.g. donations.

Advertising:

• emphasize product quality and fair prices when advertising.
• ensure print literature has a personal touch, e.g. if your public image is big and impersonal, put an employee’s face on the literature.
• hand out business cards to happy customers. Ask them to give the card to other potential customers.
• spend no more than 6-8% of your gross income on advertising.

• donate time to work on boards and committees.
• find out what causes your staff are involved in and donate to match their involvement.
• when donating time and resources, consider the long-term implications. You could be asked to donate to many other causes.
• save demonstration products for donations.

During an industry show:

• use appropriate signs; create a professional image.
• establish a positive rapport with other booth operators at the show.
  This enhances the image of the industry.
  
• when interacting with potential clients at an industry show, use questions to determine who makes the buying decisions. Concentrate your sales efforts on that person.

Involve clients in public relations activities. They:

• provide word-of-mouth advertising
• share in the activities and therefore, costs
• share in the success.

E. In Human Resource Management:

• devote a lot of time to the hiring process. It will save time and problems down the road.
• obtain employment application forms from the Internet, office supply stores or software packages. Review your existing software; sometimes there are programs for business forms, etc. that are included.
• encourage job applications via e-mail. Discourage walk-in traffic.
• consider asking for a videotape to accompany the job application, e.g. someone teaching a class.
• do initial screening of job applicants by telephone. Get a feeling for people and their attitudes by letting them talk.
• supervisory staff should be recruited from outside the environment that their future employees work in, e.g. from another department or company.
• circulate job postings in-house and ask employees for suggestions.
  Reward staff internally for finding the right person for the job.

• prior to interviews, research types of questions that will elicit the types of responses you are looking for, e.g. ask for examples to prove the points provided, examples of problems applicant has overcome.
• during the interview, spend about five minutes in casual conversation before you get into the résumé. This will help you determine attitudes and long- and short-term plans.
• use experience and ‘gut feeling’ to evaluate candidates.
• consider the applicant’s desired location, e.g. a big city person may not like a small town.
• gauge the level of commitment of job applicants who are over-qualified. Devise questions that will help you determine this.
• look for a job applicant who is familiar with your business. Determine if applicant has researched your company or visited the premises. Ask how he/she learned about the job.
• ask how much notice the job applicant would give to the current employer. This may indicate how much notice you might get.
• encourage job applicants to disclose any employer that they would prefer you not contact, and the reasons for this.
• the second interview, if required, should take place in an environment that is different from the first.
• give the job applicants a sample project and have them discuss how they would complete it.
• when the offered salary is less than the applicant wants, ask whether the salary offered would be accepted on a trial basis. Discuss with the applicant conditions for reassessing the salary.
• job applicants may be your future customers. Treat them well so that they view your business in a positive manner.

Supervising and Training:

• post employee schedules well in advance so that employees will know when they are expected to work and can make plans.
• create a list of dos and don’ts to remind staff of your business protocol.
• establish a buddy system for new employees, if appropriate. Pair the new employee with a veteran employee who will act as a mentor.
• develop entrepreneurial skills in staff.
• when selecting employees to do in-house training, ensure they are good at training, as well as at their jobs.
• provide training in basic supervision to employees who need it.
• encourage staff to take responsibility for professional development.
• cross-train employees. This ensures that work doesn’t stop when the person who usually does the job is too busy, on vacation or leaves the company.
• rotate the chair at staff meetings among staff members. This is a good professional development activity that boosts morale.
• encourage staff members to take courses that will enhance their self-esteem.

Offer performance incentives for individual employees and/or employee teams.

• a day off with pay
• taking employee out to lunch
• a fun day for staff
• casual dress days
• the opportunity to do most desired tasks
• Friday afternoon socials.

General:

• notify clients when employees have obtained new specialized training or upgrading in technical areas.
• be aware of cultural differences between employees.
• use workplace management teams in which employees discuss potential improvements.
• make each employee feel like an important part of the business.
• schedule staff meetings for a time that is before or after the hour, e.g. 8:50 a.m. rather than 9:00 a.m. This reminds staff that it is an exact time, thereby promoting punctuality.
• encourage employees to be positive, so they can give their best efforts.
• require employees to be pleasant with clients always. Make it part of the job description.
• an employee’s bad mood should never show.
• when a colleague or staff member is more skilled than you are at a task, have him/her do the task for you, with your supervision, e.g. writing.
• in order to retain good employees who work too slowly, consider a performance contract, e.g. piece work.

F. In Operations:

Use non-billing accounts.

Buy the best equipment you can afford.

Use an uncomplicated records system.

When circulating reading materials for staff, attach a distribution list and have staff members initial or sign it.

Post a checklist of procedures for staff to use during emergencies.

To reduce costs, consider using suppliers who have toll-free numbers.

Use purchase orders for security and prevention of mail fraud.

Ensure staff members know company credit policies.

Notify clients with outstanding accounts before assigning the account to a collection agency.

Write out post-dated cheques on the 15th and 30th of each month so that supplier accounts are paid on a regular basis. This helps to keep business records current and accurate.

Employ a bookkeeper to organize books, rather than an accountant. This will save money.

If the person who completes the cheques is not bonded, ensure that he/she does not reconcile the bank statements.

Give account customers a yearly cash bonus based on:

• sales volume
• method of payment
• number of payments received on time
• assistance provided during product delivery
• facilities provided to help you deliver your product, e.g. fitting a loading ramp for your delivery vehicle.

G. In Sales and Service:

Ensure that aisles are clear in public areas.

Ask for feedback from employees and customers.

Provide complementary items with purchases, e.g. bookmarks with books.

Offer product or service on a trial basis at no cost to the customer.

Develop a system that allows clients to communicate complaints or concerns, for example:

• mail-in forms
• comment cards packaged with product
• suggestion box
• guest book.