Trusting data over instinct
Dear Karen: I’d like to get better at using facts and research in running my business. How can I get away from operating on “gut feelings”?
Answer: To rely on data in your business planning, you have to first establish a solid routine of gathering and reviewing facts and figures about your company.
All decisions involve some element of personal experience and intuition, but if you’re making a lot of impulsive decisions, that probably means you need to put more emphasis on keeping records and using them as a management tool, said Gene Fairbrother, a small-business consultant with MBA Consulting Inc. in Dallas.
“If you have not been religious about producing and evaluating monthly financial statements, you will not be able to make good business decisions. If you are not tracking the needs of your clients, you won’t know what products or services are the most desirable or sellable to them,” Fairbrother said.
Every business decision you make should be based on how it will affect your bottom line. To figure that out, you’ll need to look at the bottom line on a weekly basis. If you’re unable to generate regular financial reports, hire an accountant.
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How to get a good website name
Dear Karen: How do I find a good Internet domain name for my new company?
Answer: It’s getting tougher to find a catchy website name, but it’s not impossible.
“Make sure the domain you purchase is short, memorable, not easily mistaken and hard to misspell,” said Truman Hedding, vice president of Internet marketing at Boulevards New Media.
A “domain-name generator,” such as Bustaname.com or Nameboy.com, allows you to enter keywords in various combinations to see whether they are taken. You can also search for established domains that might be for sale.
“After digging a few pages, you might find a domain you could pick up for a few thousand dollars by contacting the owner directly,” Hedding said.
Find current domains by doing an online search, Hedding said. For example, if you want a domain name with “Los Angeles” in it, enter “allinurl: losangeles” at Google to get results with “Los Angeles” in the domain name.
You can perform the same search at search.yahoo.com using “inurl: losangeles.”
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Disaster planning is important
Dear Karen: Does my company need a disaster plan?
Answer: Disaster plans, or “business continuity plans,” set down how you will ensure your employees’ safety and how your business will continue to function after a fire, earthquake or other disaster.
Because regular communication is often thwarted after an emergency, make sure your plan includes extensive, regularly updated contact information for all your core employees. It should also include plans for communicating with customers, vendors and other external contacts.
Be prepared to use alternative vendors and locate companies that rent temporary work space. Include an up-to-date inventory of your assets and copies of your insurance policies, as well as duplicates of personnel, payroll, payables and receivables and other essential records.
Keep a copy of the plan at an off-site location and make sure you are making and storing regular backups of your important computer files.
For more information, check the Better Business Bureau’s site at www.bbb.org or Office Depot’s disaster preparedness site at www.officedepot.com/promo .do?file=/promo/disaster/main .jsp.
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