Newsletter, June 2003

It was great to see so many of you at last month's meeting! Susan Rodriguez, the speaker from MFC&V Insurance was one of the best insurance speakers we have ever had; I found her to be knowledgeable and well spoken. Susan's presentation gave out valuable information that will assist us in helping our clients to understand increases in insurance and other valuable insurance tips.

This month's meeting will feature "Table Topics" on Reciprocal Agreements. It would be wonderful to have another big turnout - Hope to see July 17th.

The SBBA met for its general meeting at 11:30 a.m. on Tuesday, May 20, 2003 at Mulligan’s Café. There were 35-members in attendance.

Maureen opened the meeting with job announcements obtained from our Web site and members in attendance.

Susan M. Rodriguez, V.P. of MFCV Insurance Services was our speaker. She discussed various types of business insurance.

Susan stated that due to benefits paid to outside providers, workman’s comp insurance rates have dramatically increased and rates are NOT going to get better. There is no legislature currently before the House to remedy this situation.

With regard to general liability insurance increases, Susan said that due to the drop in the stock market, investment earnings are way below par and reinsurance is way off.

Susan also stated that retroactive policy dates must not change upon policy renewal. Susan then went on to answer numerous questions from our group. Susan’s knowledge and vast insurance experience was greatly appreciated by our group.

Jennifer Loren made the suggestion that since the year is already one half over, we should all consider doing a file maintenance for our accounts to make sure our 1099 information is in order and loan information and payroll information is in balance, saving precious time at the end of the year.

Get Ahead of the Pack by Systemizing Your Business
submitted by Brenda Richter, CPA
A Member of the Principa Alliance

All businesses have systems. They make the wheels of your business machine turn. Some systems are formal and many are informal. Systems that are informal can keep your wheels from turning smoothly when it comes to day-to-day operations, closing sales and ultimately selling or passing down your business when you are ready to retire. You can avoid major accidents and breakdowns by creating and maintaining formal, written systems that will grow and distinguish your business.

Too many small businesses are too busy running the business and fending off daily emergencies, that systems go completely ignored and chaos often prevails. A system is nothing but a series of processes. These processes are comprised of one or more activities that will involve one or more of the following inputs:

Labor
Equipment/machines
Materials (including energy)
Facility space
Vendors

The business that will take the lead in the race for customers is the business that has all its systems integrated and working smoothly together. A business that has an infallible billing system, acceptable customer service but has too much inventory is not going to win the race. Ideally your systems create an experience for the customer that makes him or her want to come back for more. And your team should be well informed and easily adept at implementing the processes you have identified.

Think of it like this:

Managers set the company’s vision and keep their eyes toward what will best serve customer needs and how to get there.

Team members energize customer-sensitive systems that grease daily operations.

Customers race for your products and services at a rate that grows your business.

Imagine if you were in the market to buy a business. Would you buy a business that can run on its own or would you buy one that could not run without the owner? When a business can virtually operate on its own because its systems are so clearly documented and thought out, it is more likely to weather changes in business climate, transition to new ownership, maintain its value and sell off at a much higher price.

Here are some tips to make sure your systems are up and running at a winning pace:

Make sure you have a schedule for reviewing your systems and processes. Consider reviewing them annually or monthly. Make note of any bumps in the road and identify ways to smooth them out.

Lead the pack. Do not follow. Just because a system worked for one company does not mean it will work for yours. Always consider your business’s and your customers’ needs first when looking at other businesses for model systems.

Take care that your systems have a back up and do not rely on one person to make them work. People get sick, make mistakes and have emergencies. Whether it is sending the mail, ordering inventory or packaging your products, make sure that all systems have back up plans for day-to-day operations, technical failures and unexpected crises.

Think about and hear your team. Your team members may have more insight into your customers than you think. After all they are the ones most likely working with them day in and day out. Their judgment, insight and input into system development can be an invaluable resource. And it motivates them.

For more assistance developing and documenting your systems, contact your Principa Alliance member. We would be happy to help.

College, summer session begins Tuesday June 17, 3PM in room BC 302. Class meets Tuesdays and Thursdays 3-6PM , for 6 weeks, June 17 through July 24. This is a 2 unit class held in state of art computer lab. Guaranteed – you will become proficient in QuickBooks. We also review Accounting principles – A/R, A/P, Bank reconciliation, month end adjusting journal entries, and much more. Excellent textbook! Instructor – Sandra O’Meara call 965-9907 if you have any questions.

QuickBooks Pro for Contractors – Cost Plus/T&M Tracking
Submitted By Monica Dittrich, QuickBooks Professional Advisor, Consultant & Seminar Leader specializing in the Building Industry.

As many of you know, QuickBooks Pro is an excellent program for tracking job expenses, labor expenses per job, invoicing, as well as many other features.

A particularly important feature for those not already using it, is “Time/Cost” found on the Invoice window.

When Checks, Bills, Timesheets, or Credit Card Charges are coded with a “Job Name”, these expenses are “behind the scenes” waiting to be invoiced within “Time/Cost”. If you have any expenses currently Job Coded, bring up a blank Invoice, select a job that has expenses coded to it, click the “Time/Cost” button. Select any of the 3 tabs shown for Items, Expenses or Time. Click “Select All”, then click “Ok”. All the selected expenses will go to your blank invoice, ready to bill out. This feature is the fool proof method for invoicing Cost Plus/T&M jobs.

For many more contractor features, current or existing set up specifics and troubleshooting issues, I will be leading a “QuickBooks for Contractors” Seminar, Thursday July 24, 2003 , 9AM - Noon at the Goleta Valley Community Center . Cost $69 Reg/$59 for SBBA members.

For seminar details and reservation go to: monicadittrichconsulting.com or call 560-1384.

June’s editor is Jo Rogers. July’s editor will be Nancy Gomez. Thank you everyone who submitted articles and information for this newsletter.