Eight resolutions for a new and more profitable year
By Peter J. Lamont, Esq.
January 20, 2010
Amazingly, another year has flown by and, for many in the kitchen and bath industry, not a moment too soon. Last year was a very difficult year for many kitchen and bath companies, both large and small. Because of the horrific economy, fewer consumers were willing to put their cash into kitchen and bath renovation projects. On a larger scale, many construction projects lost their financial backing, leaving cabinet companies with hundreds of thousands of dollars in uncollectable receivables.
The good news is that things are looking up for 2010. Many economists are predicting that the economy will continue to pick up while more and more consumers will complete old renovations or begin new home improvement projects. Now is the time to re-evaluate your company's business plan and corporate procedures and to create focused News Year's resolutions, or better yet, goals to set your company up for a profitable and litigation-free year. The following are some suggested resolutions to get you started.
RESOLUTION 1: Review what worked for your company last year.
If your company is still conducting business, you must have done some things right. Perhaps you employed a new marketing or sales strategy that ended up being successful. Just because a new year is upon us does not mean that you should abandon all of last year's practices. You should only abandon those that did not work. You must be willing to spend the necessary time to analyze what you did right last year and work those practices into your new resolutions and goals.
RESOLUTION 2: Create manageable and attainable goals and be willing to adapt to market trends.
One of the biggest mistakes businesses make when setting goals is failing to set small, manageable and attainable goals. While the ultimate goal may be for your company to net $400,000 this year, you need to have daily, weekly and monthly goals to keep you on track. For example, in striving to reach your $400,000 goal, you should set monthly sales goals and review your sales procedures regularly. You must also be willing to acknowledge those strategies that are not working and be flexible enough to change them to meet customers' current needs and desires.
RESOLUTION 3: Revise contracts and sales agreements.
The beginning of the new year is the perfect time to revisit current sales contracts, vendor contracts and employment agreements. One of the biggest mistakes businesses make is that they hire an attorney to create form contracts and agreements when they start up their business, yet fail to update and revise them. This can be problematic because consumer protection and employment laws are constantly changing. Make sure that your contracts are up to date, comply with current laws and serve and protect your interests.
RESOLUTION 4: Review your business structure and compliance with state laws.
Make sure that your business is properly registered with state and local government agencies, many of which may require annual filings. For example, consumer protection laws are constantly changing and may require kitchen and bath companies to obtain new certifications and licenses. Make sure also to prepare and submit your annual filings in a timely manner. Far too many companies fail to keep up with their governmental filings, which can result in heavy fines.
RESOLUTION 5: Reconnect with old leads.
Most kitchen and bath companies keep contact information for customers who may have expressed an interest in their products but did not end up making a purchase. January is the perfect time to go through that information and make cold calls to those potential customers and invite them to come back to the showroom to see new products or explore new designs. You will be surprised at how many may still have an interest in your products and services.
RESOLUTION 6: Meet new successful entrepreneurs for business, mentoring and networking purposes.
Join a business-networking group, find or become a mentor, join the Chamber of Commerce or utilize online business networking services such as Linkedin.com.
RESOLUTION 7: Make business planning and lead development a daily task.
Make a monthly calendar containing daily business and lead development projects. For example, dedicate 30 minutes on Monday to reviewing customers who expressed interest in your products but never made a purchase. On Tuesday, call 10 of those potential customers. On Wednesday, search NKBA events and training seminars. On Thursday, run an advertisement in a local paper, and so on. If you plan out a month at a time and dedicate small amounts of daily time to business and lead development, your business will grow and so will your revenue.
RESOLUTION 8: Seek legal counsel when necessary.
Far too many people shy away from lawyers because they fear high hourly rates. While some law firms do charge exorbitant rates, you will be surprised to find that far more attorneys are easily affordable and are willing to work with clients to make their services affordable. Lawyers can provide a number of important services that can save your company time and money. For example, lawyers can: prepare contracts and agreements and negotiate on your company's behalf; ensure compliance with local and state laws; handle lawsuits and other claims; provide business guidance; set up employment policies and much more.
Take the time now to create you company's own resolutions and goals and stick to them throughout the year. Remember, sow now, reap later.
—Peter J. Lamont, Esq., is a commercial litigation attorney with offices in Hawthorne, NJ, as well as Massapequa, NY. His practice focuses on the representation of small- to large-size companies in the building and design industry, as well as individual designers and architects. To contact him with questions and suggestions on topics for future articles, please email him at plamont@peterlamontesq.com or call him at (973) 949-3770.
The good news is that things are looking up for 2010. Many economists are predicting that the economy will continue to pick up while more and more consumers will complete old renovations or begin new home improvement projects. Now is the time to re-evaluate your company's business plan and corporate procedures and to create focused News Year's resolutions, or better yet, goals to set your company up for a profitable and litigation-free year. The following are some suggested resolutions to get you started.
RESOLUTION 1: Review what worked for your company last year.
If your company is still conducting business, you must have done some things right. Perhaps you employed a new marketing or sales strategy that ended up being successful. Just because a new year is upon us does not mean that you should abandon all of last year's practices. You should only abandon those that did not work. You must be willing to spend the necessary time to analyze what you did right last year and work those practices into your new resolutions and goals.
RESOLUTION 2: Create manageable and attainable goals and be willing to adapt to market trends.
One of the biggest mistakes businesses make when setting goals is failing to set small, manageable and attainable goals. While the ultimate goal may be for your company to net $400,000 this year, you need to have daily, weekly and monthly goals to keep you on track. For example, in striving to reach your $400,000 goal, you should set monthly sales goals and review your sales procedures regularly. You must also be willing to acknowledge those strategies that are not working and be flexible enough to change them to meet customers' current needs and desires.
RESOLUTION 3: Revise contracts and sales agreements.
The beginning of the new year is the perfect time to revisit current sales contracts, vendor contracts and employment agreements. One of the biggest mistakes businesses make is that they hire an attorney to create form contracts and agreements when they start up their business, yet fail to update and revise them. This can be problematic because consumer protection and employment laws are constantly changing. Make sure that your contracts are up to date, comply with current laws and serve and protect your interests.
RESOLUTION 4: Review your business structure and compliance with state laws.
Make sure that your business is properly registered with state and local government agencies, many of which may require annual filings. For example, consumer protection laws are constantly changing and may require kitchen and bath companies to obtain new certifications and licenses. Make sure also to prepare and submit your annual filings in a timely manner. Far too many companies fail to keep up with their governmental filings, which can result in heavy fines.
RESOLUTION 5: Reconnect with old leads.
Most kitchen and bath companies keep contact information for customers who may have expressed an interest in their products but did not end up making a purchase. January is the perfect time to go through that information and make cold calls to those potential customers and invite them to come back to the showroom to see new products or explore new designs. You will be surprised at how many may still have an interest in your products and services.
RESOLUTION 6: Meet new successful entrepreneurs for business, mentoring and networking purposes.
Join a business-networking group, find or become a mentor, join the Chamber of Commerce or utilize online business networking services such as Linkedin.com.
RESOLUTION 7: Make business planning and lead development a daily task.
Make a monthly calendar containing daily business and lead development projects. For example, dedicate 30 minutes on Monday to reviewing customers who expressed interest in your products but never made a purchase. On Tuesday, call 10 of those potential customers. On Wednesday, search NKBA events and training seminars. On Thursday, run an advertisement in a local paper, and so on. If you plan out a month at a time and dedicate small amounts of daily time to business and lead development, your business will grow and so will your revenue.
RESOLUTION 8: Seek legal counsel when necessary.
Far too many people shy away from lawyers because they fear high hourly rates. While some law firms do charge exorbitant rates, you will be surprised to find that far more attorneys are easily affordable and are willing to work with clients to make their services affordable. Lawyers can provide a number of important services that can save your company time and money. For example, lawyers can: prepare contracts and agreements and negotiate on your company's behalf; ensure compliance with local and state laws; handle lawsuits and other claims; provide business guidance; set up employment policies and much more.
Take the time now to create you company's own resolutions and goals and stick to them throughout the year. Remember, sow now, reap later.
—Peter J. Lamont, Esq., is a commercial litigation attorney with offices in Hawthorne, NJ, as well as Massapequa, NY. His practice focuses on the representation of small- to large-size companies in the building and design industry, as well as individual designers and architects. To contact him with questions and suggestions on topics for future articles, please email him at plamont@peterlamontesq.com or call him at (973) 949-3770.
