B2B CFO^®    (877) 4-B2B CFO

Over my career I have experienced demoralization from certain bosses, and have worked in environments where complete teams and even entire companies felt shamed. For those so inclined, I lay out the top 6 techiques for creating a thoroughly demoralized team.  These techniques will ensure that your company never reaches its goals, that staff turnover will be in double digits, and company value is squandered.  Use them carefully...

1. Mistakes - when an employee makes a mistake, make sure they're punished well, point a finger at them, scold them, and get really angry with them for what they did or did not do. Do this in front of other employees, so they will realize they must do a good job all the time in order to avoid punishment. Results: anxiety, depression, risk-avoidance, lack of initiative, more involvement for boss in minding activities.
   
2. Demoralize. Change your mind constantly on what needs to be done. You're the boss, so you can adjust your instructions regularly, tell your people how to do their jobs, establish and maintain an environment where your staff know who's the boss and will always come to you on very decision. Results: confusion, distrust, paranoia, risk avoidance, lack of initiative, more involvement for boss in minding.
   
3. Delegation. Give your people precise instructions on the how and why and when it must be done, and do not allow any negotiation. Let your people be clear that someone superior to them knows best and that questioning authority will limit their career and promotability. Make sure they know that if they work here, they do as they are told, and that they are simply a replaceable set of hands to get the work done. Results: anxiety, depression, anger, bitterness yada, yada, yada...
   
4. Instruct. Give your team brief instructions and an impossible deadline. Tell them it needs to be done in six weeks no matter what, and you'll want an update tomorrow. Results: Anger, depression, confusion, hopelessness, low morale, minding...
   
5. Fire at will. One of your employees is not doing her job, being distracted and casting a black cloud upon the other employees. Don't listen to excuses, or waste time in counseling a previously good employee. Fire her. Don't explain to your employees what happened - they'll just know that you do not tolerate poor work and bad-mouthing and they'll never do it because they fear getting fired. Results: Need you ask...
   
6. Conspiciously Consume. Have the repair bill for your Ferrari faxed to the office fax. Charge the cigarette boat mooring fees to the company for entertainment. Have your book-keeper take care of the Monte Carlo condo bookings. Results: Why do you need to ask...?

It's hard to be a boss, but even harder to be an encouraging leader. Many studies prove a positive correlation between great business results, increasing company value and high employee morale. What's your choice, boss?

To discuss your corporate value, talk to David Kirkup, Partner with B2B CFO.  Call me on 770 845 6897 or dkirkup@b2bcfo.com.

 "A boss creates fear, a leader confidence. A boss fixes blame, a leader corrects mistakes. A boss knows all, a leader asks questions. A boss makes work drudgery, a leader makes it interesting."

Right now, cash is your most important asset.  It's a good time to tighten up your accounts receivable policies to generate more cash.  There are several good reasons for this. 

For one Accounts Receivable are probably your single largest source and use of cash.  They are a source when your customer pays, but they tie up precious cash until that happy moment - which is why rapidly increasing sales can sometimes deal a corporate deathblow.  Sound policies ensure your cash cycle - the time for your sales to generate cash to pay your vendors - is minimized.

Cleaning up your AR process also pays other dividends.  Your company is only as strong and valuable as your financial infrastructure.  If the structure is weak, then you have serious business risks, and the value that outsiders will place on your company is impaired.  In addition, when you need to raise additional financing - your AR are likely a key source of collateral.  Having well documented and efficient AR procedures will expedite the process of selling individual receivables, or negotiating a collateralized bank loan.  Here's a checklist:

1. Establish written credit policies - state expected days for collection, and what actions need to be taken when a customer is late.  Don't wait.
   
2. Identify a "Credit Manager" who will make credit and collection decisions and take prompt action on delinquent customers. 
   
3. Print regular Aging reports and use them.  Make notes on follow up.  Be aggressive. Have weekly meetings with your Credit Manager and review the status of open accounts.
   
4. Have all customers complete a Credit Application.  Company fortunes are changing fast, so stay on top of this.  Get personal guarantees.  
   
5. Use Dunn & Bradstreet to get current customer info before shipping.  Have D&B flag material changes in customer fortunes.
   
6. Mail invoices on service date and specify the due date, or customers will pay from receipt.
   
7. Use email billing and payment by credit card to minimize outstandings.
   
8. Mail statements monthly - its shows how much is owed, and helps keep AR correct.   It's also good for developing internal control for your business.
   
9. Have a Collection Agency on speed dial.   Don't wait to use them.
   
10. Make AR management a priority, and be a squeaky wheel.   Many companies are juggling cash flow right now, make sure you stay at the top of their list. Many times, Customers will delay payments to other Vendors or Suppliers, if they are low on cash, to avert receiving a collection call from you.  A well run Company knows the importance of their Accounts Receivable in good times and bad. 
    

B2B CFO® offers seasoned, highly experienced part-time CFOs, so there's no excuse to run your company with blinders on. 

In a sea of economic red ink, many of B2B CFO®'s clients continue to add employees and grow sales, while having access to lines of credit, and developing company value.  Call David Kirkup, your B2B CFO®,  for more information and a free company evaluation on 770 845 6897.

A recent Fortune Magazine profile of TV pitchman Billy Mays (OxiClean, Kaboom et al), describes the success of Mays and partner Anthony Sullivan - an Englishman who honed his technique in the London street markets - who are megastars of the $300 billion industry known as direct-response advertising.

The article explains that once they find a product they believe in, they move the merchandise with a three-step process that harks back to the carny tradition: "bally the tip," "nod them in," and "chill 'em down."  That got me thinking about how I might apply their sales technique to the marketing of my professional services.

The hardest part of making a sale is stopping people and catching their attention. In carny lingo, "ballying the tip" means drawing a crowd - and once one begins to gather, it feeds on itself. The use of volume, energy, hand gestures, and faux authority are all tactics to bally the tip.  I am looking for successful business owners with $1 million to $75 million in sales, and I would YELL:

"EVERY COMPANY NEEDS A CFO , NOW YOU CAN AFFORD ONE WITH B2B CFO^® ."  

To keep the crowd you use humor and make the presentation interactive.  I would now demonstrate the B2B CFO^® Wheel of Services and invite prospects to take the Business Check Up test.  Should I also tell my joke at this point?

The next step is convincing potential customers that buying your product is totally reasonable.

"WOULD'NT YOU LIKE TO FIND MORE TIME TO RUN YOUR BUSINESS AND SPEND TIME WITH FAMILY, WHILE INCREASING PROFITS, CASH AND COMPANY VALUE?"

Yes, of course you would. A good pitchman will literally nod in answer to his own question to get the crowd nodding along.

"IF YOU COULD HIRE {at this point I am hoarse} a professional that made this easy, provided more value than their cost, and I could sell it to you for less than 10 - 20% of the cost of a full time seasoned CFO, wouldn't you want to buy it?"    

Yes, yes, and YES! Next, Billy Mays will demonstrate the product, typically in a wind-tunnel, or by attaching his Crazy Glue to a giant weight.  I would validate my product by talking about my personal bio and track record, my happy clients,  our 20 year history, our presence in 43 states with over 120 seasoned partners; our four hundred successful clients with over $3 billion in revenue, our nationally recognized publications. 

But the trickiest part of any sale is being able to transform good will into cold, hard cash - the chill-down. Rather than politely ask if anyone would like to buy something, the pitchman often starts the process for potential buyers by counting it off. "Who are going to be my first ten customers? You, sir, you're No. 1!" 

.....I'm not exactly sure this would work for me. In contrast, I would offer to provide my prospects with a complimentary half day, in-depth analysis of their business, a benchmark study and a simple proposal for achieving their desired results.  Like Billy Mays, I do business on a hand-shake.

So...maybe this needs a bit more work, but I think I might be on to something...

If you would like to "FIND MORE TIME AND INCREASE COMPANY VALUE", then give David Kirkup, Partner at B2B CFO^® a call on 404 348 0326 or email at dkirkup@b2bcfo.com.  "OPERATORS ARE STANDING BY!"

Share this article on LinkedIn

Owners need to PLAN THEIR EXITS in order to get the most value when selling their companies.  Just as they need to plan on the legal side for estate purposes and an orderly exit, introducing them to the tools of a good CFO can greatly increase their company value prior to exit.

Business owners with companies less than $30 million or so in sales often do not understand the benefits a strong CFO can bring them in areas ranging from profitability improvement to increasing cash and sales.  These owners have bookkeepers and controllers, but their primary role is processing financial transactions and they don't have a CFO's skills in improving profitability, growth and company value.  CPA firms offer good basic business and financial advice, but do not offer the tools of a CFO.  Many owners don't need full time CFO's but they can benefit from a part-time B2B CFO^®.

With company sale price normally tied to EBITDA, a $100,000 increase in EBITDA can lead to increased sale price of $400,000 to $600,000!  If your owners have not employed a seasoned CFO, there is good chance they can improve profitability and company value and receive much more at time of sale.

Few business owners or consultants have thought this through - they just decide to sell and get what they can.  We have developed a formal process called "Planning the Exit: Maximizing Value and your Company's Future".  I believe if you read it carefully, you will agree that we can help your clients improve their profitability and give them a nice extra bonus at sales time. 

For more information on "Finding the Exit" contact David Kirkup, Partner with B2B CFO^® on 404 348 0326 or dkirkup@b2bcfo.com. 

You now have enough information to use LinkedIn effectively.  In the last few posts we have discussed Profiles, Building a Reputation, using LinkedIn for Job Hunting, Using Groups and Conductiong Better Searches.  Going forward there a number of ways you can continue to push the boundaries:

• Take a Webinar - find a webinar online, read a book, keep developing your knowledge of LinkedIn. One of my best sources for ideas and material is http://www.linkedin.com, which is a blog on LinkedIn. It's full of new advice and continuously updated.
• Work on your Profile: continue to refine, add keywords, post articles, white papers, Powerpoints on your site.
• Find contacts in The FENG and invite them offline and online to connect.
• Send periodic emails to contacts: stay in touch, have coffee or lunch - keep the contact alive.
• Help others connect: Introduce people to each other, pay it forward, create your reputation as a LinkedIn hub, someone who knows people.
• Hold events for people with common interests: Create a group, go offline and host a meeting, give a seminar and publicize it through your groups.
• Form a group: Post articles, news, discussions
• Share your knowledge: Write a blog, post it through LinkedIn, post articles, answer questions, forward interesting articles to contacts.
• LinkedIn Events - check regularly to find networking events in your area.
• Explain value of LinkedIn: knowledge is power, become an expert and help others understand LinkedIn while building your network.

B2B CFO^®, is a national CFO Services firm focused on emerging and mid market companies, that has grown from a handful of partners in 2004, to nearly 120 partners today.  During that time the partners have built their individual client bases, and today we have total client revenue of over $3 billion.  We have done all his through effective networking - and that is how you will land your next position.  Good Luck..

David Kirkup is a Partner with B2B CFO^®, and an active networker on LinkedIn.  He writes a weekly Blog on financial issues with a British humor slant.

Many small businesses are still using paper checks sent through the mail to settle their accounts. But online banking can save time and effort, and improve cash flow.

How do you pay your household bills? Chances are, via your bank's online interface, or, even easier, through automatic deduction. How do you pay your company's bills? Chances are the process involves paper checks and the U.S. mail.

Online banking has gained wide acceptance among consumers, and large corporations with sophisticated funds transfer programs are accustomed to banking electronically. Until recently, though, most small businesses were stuck doing their banking the old-fashioned, paper-intensive way. Reasons range from poor integration with QuickBooks to the difficulty of having more than one person sign off on an expense, to resistance to learning how to use new technology.

But online business banking options are growing, and can save both effort and money......

More at Inc.com - David Kirkup quoted in recent article by Minda Zetlin

I have had various periods of unemployment during my career as a CFO.  At different times the process of finding a new position has seemed daunting.  In the old days you sent out a lot of resumes, contacted recruiters and hoped for the best.  If you were lucky enough to be introduced to the Financial Executive Networking Group, you were schooled in the Matt Bud way.  Networking became the mantra - reaching out to FENG members and continuing the other approaches.  But I always felt like I was exploring the tip of the ice berg, while a vast world was unavailable to me because of my lack of contacts, experiences, exposures to many people.

Today, with LinkedIn, your ability to "map" the submerged iceberg is dramatically enhanced. In 2001 I lost a position as CFO and was forced to job hunt.  I entered outplacement where I futilely sent our letters, scoured job ads, devoured my nightly Matt Bud message and attempted to network.  Eventually, I found a position through networking - a friend of a friend suggested I contact a company...

If I was in the same situation today, it would be a different story. First, my network would be up to date  and constantly expanding through LinkedIn.  I would have started by seeking connections to people in my network that were located in Atlanta and in my industry. I would have joined as many Atlanta based Groups as I could find. 

I would have also started searching available jobs to see how I was connected to it, and then work my way in by linking to board members, officers, former employees, vendors and customers.  

What else can you do today if you are Job hunting?  Here are some ideas:

1. Get that Profile Done! Work on your profile...do you have a photo, do you list your previous employment history, do you have a summary that sells you, do you have at least ten recommendations, have you entered key words?  See my profile.

2. Build your connections...find relevant connections, connect to others in your industry, connect to some LIONs (who will link to all comers).

3. Join relevant groups...when posting a job discussion use it creatively. Try "Anyone have any connections to (specific company) or (in industry)" - as opposed to "Gimme a job".  In the top part of the discussion ask your question. In the details section explain why you're asking. Direct people back to your newly updated profile for more information on you. Finally be careful how often you post to avoid an annoying/ spam type appearance.

4. Ask questions to help research companies or industries, find and solve industry problems by showcasng your expertise.

5. Search the Jobs section and see how you are connected into opportunities.  Ask connections about a position and whether it is part of a corporate growth iniative - maybe other positions to discover.

6. Download the LinkedIn jobs toolbar...search for jobs at these sites as well: Monster, CareerBuilder, HotJobs, Craigslist, SimplyHired, Dice, or Vault

7. Contact with Job Posters - you may be able to provide helpful info to a job poster that will come back later.  This can work with lower level jobs e.g. Controller - help the HR person with key factors, regulatory knowledge, interview Questions to ask, salary indicators, even suggest candidates etc.

8. Use the "What are you doing now" feature to let your network know that you are job searching. Update this every Tuesday and Friday. 

Lots of ideas, but you do need to work this actively.   In future articles we will discuss Using Groups and Searches, and the science of LinkedIn Domination. 

David Kirkup is a Partner with B2B CFO^®, and an active networker on LinkedIn.  He writes a weekly Blog on financial issues with a British humor slant. 

Groups are a comparatively little known way to dramatically enhance your networking.   

Within your personal network, making contact with 2nd and 3rd degree connections can be time-consuming and slow, unless you have a paying account and have access to InMail.  With groups, the barriers to communicating with anyone are removed.

For example, I have about 261 direct connections and over 5 million people in my complete network.  So, when I update my profile the 261 direct connections are notified of my action, but that's it.  In contrast, with my groups, when I participate in a discussion question or post a news article I can potentially reach many hundreds or thousands of people.  I have seen Blog articles go from 100s of views to 1000s of views overnight using this approach.

I can easily market to a specific target audience: VCs, Start Ups, International Entrepreneurs or others.  You can even create your own group to develop a captive target group.  

You can be a member of up to 50 groups and you should focus on finding groups that are filled with your target contacts, employers and job referral partners. Here's some features of groups you should know about:

1. Find groups using relevant search terms e.g. Atlanta and Insurance should get me some local industry related contacts.
   
2. Find groups via interesting people e.g. if Joe Smith is a key contact, I can look at his groups and then consider joining them.  I have discovered lots of new Groups this way.  Tall CFOs Group..anyone?
   
3. Research your Group and invite interesting contacts to Link because you have the group in common.  This has a high percentage of success, since you have a bond already.
   
4. Post Updates, News, or other messages and all Group members will be notified.  Great way to passively inform people in your desired network.  But...don't spam or blow your credibility with a naked spam - "Give me a JOB, please!"
   

Finding Contacts through Search

There are various ways of searching and new features continue to be added.  You can search by company, by person, for jobs and by answers.   Searching by company is an interesting way to find out new people you don't yet know.

Searching by company allows you to use search terms to focus on an industry.  Once there, you can limit the search with size terms.  So you could search for all law firms in Atlanta with more than 20 partners.  Once you have this list, you can drill down to individuals and start to cross-reference with your existing contacts.

Another interesting concept is to look at "Viewers of this Profile also Viewed..." - found on the right hand bar lower down.  This is a list of contacts that may be similar to the contact you have targeted, or may have similar connections.  Either way it is like taking advantage of ripples in the networking vortex to discover other valuable contacts.

I like to find people on web sites e.g. attendees at conferences, speakers at seminars and then find ways to connect with them.  Unfortunately, Barack Obama is not taking my calls.

Use your imagination to find ways to uncover hidden gems...

But remember, if you don't make the next step and meet in real life then you will have little impact on your ultimate goals...either finding a job or building a business.

In a final article we will discuss the science of LinkedIn Domination. 

David Kirkup is a Partner with B2B CFO^®, and an active networker on LinkedIn.  He writes a weekly Blog on financial issues with a British humor slant. 

On LinkedIn you can list a summary resume, details of your past work history, your current employment or situation, and other pieces of information.  All of this can present a picture of you but doesn't neccesarily convey your reputation or credibility, nor does it separate you from the pack.  Hate to say it, but there are many potential competing CFO's with your general background and experience.

But LinkedIn has a number of features that help you establish credibility and build your reputation. 

1. Profile Completed?: Your goal on LinkedIn is to be found and once found to be seen as interesting/ different/ relevant. The more information you present, themore likely you are to be found. What if someone is searching for a CFO and they have five on their list. Who's more likely to catch the reviewer's attention? The person with a slim LinkedIn profile who does not "seem" interested, or the person who has taken the time to build a killer profile? Go back to Article 1 in this series if you have not built a killer profile.
   
2. Q & A: With the Answers section you have the ability to both ask and to answer questions. Both can have a positive impact on your reputation. The questions you ask will say something about who you are and the level of experience you possess. But, don't ask pointless, self-serving spam-like questions. You want to focus on asking questions that will generate thoughtful responses. "Are companies finding ERP system implementation to be disappointing?" Answer your own question if no-one takes the bait. In the Answers you can share your knowledge and display expertise and experience. Link to White Papers hosted on your web site - buy a cheap site and just use it to store documents, or now post PDF files on your LinkedIn Profile.
   
3. Recommendations: Another opportunity to pay it forward. This is a great way to build a reputation bank, by discovering old colleagues and making contact. This is not the place to give a recommendation in return just because you received one. Many times a reciprocal recommendation will be obvious in the Status update - it just looks fake. As a job hunter you should look for client, colleague and even employee recommendations.
   

The three areas discussed will start to build credibility, and separate you from the pack.  A further benefit from answering questions and getting recommendations is that all your contacts will see this information in their Status Update.  Thus you give your network multiple, credible touches and people will visit your profile based on these links.  Another benefit to providing a recommendation is that you create a link on the recommended person's profile page to your profile.  People will often look to see who provided the recommendation.  This is just another way to draw traffic to your profile.

Linkedin is poised for even more dramatic growth and will likely become a "go to" site for employers.  Just as you are Googled before the interview, you may be "LinkedIn" to see if you are worthy of consideration.  Don't wait to join the parade.

In future articles we will discuss Linkedin for Job Hunting, Using Groups and Searches, and the science of LinkedIn Domination. 

Linkedin is a remarkable tool for building "The Brand that is You."  It is free to create an account, but don't let that fool you, or lull you into creating a half-assed profile.  As an active user, I constantly review potential contacts.  When I see the half-hearted effort with some basic data, no picture and three contacts, I often form an immediate impression - and it's not good.  I might..., just might,  contact that person to help improve their profile, but only if I view them as a strong potential contact.  Be aware, people will be checking your LinkedIn profile more and more, and if you don't measure up they will skip to the next contact.  It's like the difference between Black & White and Color...please don't be grey!

So, how do we build a profile?  Just like resume advice, there is plenty of it - sometimes conflicting, so I'm not going to dive too deep.  Instead I will share some of my thoughts, you can find many guides, webinars and articles on line.

1. Photo - If you are going to post a photo - and I think you should, since it's a human connection and a way for people to separate you from the crowd - post a professional shot, not a crop from last summer's beach photo, or a self-portrait in the mirror with flash accompaniment, or the glamour shot you had for match-making but never used.
   
2. Resume - you can post your resume summary here.  Most important are company names, titles, college.  Understand that LinkedIn is highly searchable, so your objective is to be found.  Company names will automatically tie you to and help you find others, and help others find you.
   
3. Links - you can be liberal with links.  There are several canned web site links and you can build links with a bit of HTML knowledge.  Link to your resume, to your prior companies, to associations etc.
   
4. Accomplishments - typical resume advice is to list accomplishments with numbers and %s.  In LinkedIn you are going for key words in the profiles section.  You can list your software experience, specializations, credentials, hobbies (someone may be looking for a sailing buddy/ CFO!).
   
5. Why am I here - Consider a section specifying what you are looking for.  Soar beyond the usual "Challenging financial position, yada, yada", and get specific.  Get creative too.  See mine at http://www.linkedin.com/in/davidkirkup
   
6. Specialties - Just in case you missed anything you can pile on with keywords here.  Cities worked, associations, skills, famous people, seminars... anything that will help people find you.

Other sections of the profile we will cover in future articles:

• Groups - join many as you can - I have 50!
• Recommendations - like Ebay - would you buy from someone with no recommendations?
• Q & A - Answer questions, and ask them to create discussions that showcase your credibility.
• Applications - Blogs, PPTs all add to your rep.

In future articles we will discuss Linkedin for Job Hunting, Using Groups and Searches, and the science of LinkedIn Domination.