Boom_Ups by Tom Y. Sawyer
Boom Ups
A Boom_Up is a Boomer owned business that is in revolution or evolution from its original form … in response to today’s perilous economic environment and in preparation for moving ahead into growth and prosperity.

Is Your Head in the Clouds? – You Betcha!

Posted on January 3, 2012 by Boomups

 

I spoke last post about a new trend …. the Consumerization of technology … the incessant encroachment of consumer devices like iPads, Ipods and mobile phones etc. into the business computing environment. From the standpoint of a veteran technology professional like myself … this is a sea change.

Like all shifts of this magnitude there is usually something much larger behind it …. and there is ….

CLOUD COMPUTING

Online gamers, software engineers in India, your Grandma on Facebook, a lot of what you bought for Christmas …. all use Cloud Computing.

From the most technical of business applications to the most trivial of entertainment …. we are all hooked into the Cloud.

You utilize the Cloud every day … did you know that?

What is the Cloud?

For our answer lets’ start with  Wikipedia which … by the way … is provided to us via the Cloud.

Wikipedia says, “The term “cloud” is used as a metaphor for the Internet …. The underlying concept of cloud computing dates back to the 1960s, when John McCarthy opined that “computation may someday be organised as a public utility.”

Another way of saying it is that the Cloud is the entirety of the Internet and all of its functionality and services and capabilities.

The term “Cloud” comes from a bunch of little pictures of clouds that we computer geeks have drawn years to represent the Internet and all the infrastructure and functionality implied therein. I think I stated drawing little Cloud pictures about 1994. The phone companies had been drawing them for years before that.

Cloud computing is any form of computing that uses the Cloud like your phone, Ipad, Ipod, Droid, car GPS, computer, security system …. and your email and Facebook and …  and … and … need I say more?

The term Cloud computing is widely used to describe businesses sharing Cloud based resources like offline storage backup or disaster recovery services or SAS (software as a service), the ability to ‘rent’ and utilize software via the Cloud versus purchasing it and running it on you local computer.

So why is the Cloud  important to you?

Because the Cloud, like the roads and highways we drive on everyday… has become a vital part of or lives. We communicate, learn, find our way, stay informed, play, and are connected via the Cloud.

Anything that restricts the Cloud, like taxation, censorship, or access criteria should be of vital interest to you.

If one day you found out that you could only drive on the Interstate if you drive a certain type of car, during certain times of day, and are required to display a certain type of bumper sticker telling exactly who you are …. and …  of course, pay a toll …. would that concern you?

THINK ABOUT IT

 

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The Consumerization of Information Technology

Posted on December 26, 2011 by Boomups

 

I have lately been providing information technology consulting for a large compliance driven medical organization  … and have encountered a new trend

…. the Consumerization of information technology

Consumer technologies like mobile phones, tablets and the use of social media are showing up everywhere in this traditional organization …. encroaching on and leveraging the traditional information technologies that the organization uses to run its business.

Is this a good thing?

I think …. YES

My opinion is that consumerized technologies are HERE TO STAY, and as they are released into the market place … (which will be often) … they WILL show up at the office.

I can’t imagine my young staff at RSW Partners without their iPhones and Droids connected to our more traditional email and calendaring systems.

Do they check Facebook a few times a day and text their friends? Yes.

Do they get their job done? Yes.

Are they connected to the office 24×7? Yes.

Security is the first big concern related to these consumerized technologies but here are some of the benefits:

• Consumer technology can make it more productive to work remotely.

• Consumer tools like blogs or newswires can make it easier to find and share information.

• Consumer technology can help you build collaborative communities.

• Consumer tools like podcasts and remote meeting services can help you deliver more cost-effective training and communicate better with clients.

The day of the strapped down, conservative (somewhat dull) workstation is gone. Mobile, sexy, media-rich consumer technologies actually help more than they hurt … if you manage it correctly.

Get used to it  ….  and figure out how your company can profit from the Consumerization of information technology.

Next week – Cloud Computing and Software as Service

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RE-OCCUPY! … this blog

Posted on December 13, 2011 by Boomups

 

OK … I admit that I have been SLACKING IT

Sometimes a guy just needs a break from at least part of what he is doing (this blog) … so I am back, UN-tanned, UN-rested, and NOT quite ready …. but definitely WILLING to RE-OCCUPY this blog.

I have been putting a lot of energy into running the IT department (temporarily) of a large clinical organization.

Being  back in the world of high-tech  started me thinking about TECHNOLOGY and BUSINESS SUCCESS …. and how this subject applies to Boomer business and the new generation of leaders that WILL take over and lead these businesses.

The optimized use of technology in all aspects of business is crucial to YOUR BOTTOM LINE ….  AND there is more to this OBVIOUS statement than meets the eye.

This is what I will be blogging about weekly for the next few months….

Stay tuned …. :-)

 

 

 

 

 

Posted in Business Analysis in Tough Times, Business Critical Path, Technology and Business | Tagged , | 1 Comment

Mayan Business Calendar 2012

Posted on November 1, 2011 by Boomups

 

It appears that the Mayan Calendar which projects the end of the world in 2012 is nothing more than a thousand-year forecast of Treasury Yields.

Go figure. I was preparing for Armageddon and all along I had nothing to fear but the fact that I can’t earn anything on my investments. Those Mayans were savvy dudes.

Seriously, taking a week off from this blog as I travel to Florida with a client on a quest for deeper understanding of a massive Electronic Medical Records system.

 

 

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Net Profit – The Tax Man Cometh

Posted on October 25, 2011 by Boomups

 

Toward the end of the year I and my partner begin a kabuki dance that we call ‘year end tax planning’. We take a look at our P&L and God forbid if it looks like we are going to make a profit …  then begins the infamous snipe hunt for operational ideas to mitigate tax impacts.

How much of our business strategies are driven by our complex tax system and how freeing would it be if we business owners knew more about (a) what to expect in terms of future tax rates and (b) how best to navigate the labyrinth of the tax code?

I am not opposed to taxes per se, but it’s hard enough running a business without constantly looking over the proverbial shoulder to make sure that you are operating in a tax prudent fashion.

The current uncertainty regarding future tax rates is a very real consideration in my decisions regarding investment and hiring in the future.

How bout you …. business owners?

 

 

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Operating Expenses – Nickel and Dime’n the Universe

Posted on October 18, 2011 by Boomups

 

Rent, utilities, phone … you know the drill.

If are doing business on this planet  you are probably in cost cutting mode.  Before you spend a lot of time and brain damage here, REMEMBER the greatest opportunity is probably (and unfortunately) in personnel costs.

If you find yourself going to a key employee and asking them to cut back on their use of office supplies … you are in deep DOO-DOO.

Be at your BEST when you are cutting back. People and lives and lifestyles are at stake. Make sure that you are making wise business decisions and compassionate people decisions.

One of my teachers once told me … “Don’t nickel and dime the Universe.”

 

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Salaries and Wages – BENEFITS on the table

Posted on October 11, 2011 by Boomups

 

Somewhere along the line we all got the idea that the CONTRACT between employer and employee included MORE than an employee’s agreement to sell  their time, skills and labor in return for payment by the employer. The MORE is EMPLOYEE BENEFITS.  The history of that evolution is a book unto itself.

These days, as business owners face excruciating decisions to keep people working, benefit packages are under intense scrutiny.

CONVENTIONAL WISDOM …. that benefit packages are a natural part of employment engagement …. and that benefit packages bring clear marginal VALUE to the productivity equation are IN QUESTION.

Business owners are asking  … “What actual relationship is there between the benefit package we offer and my company’s ability to get the work done that is required?”

TRUTH BE TOLD …. the current employer buyer’s market brings this question into very bold relief.

I have a client (and only one) who is NOT in a buyers market. They are competing for scarce technical resources ….  and are SCRAMBLING  to beef up their benefit packages but they are the EXCEPTION … not the rule.

Warning: Politically incorrect statement follows:

Shifts in supply and demand first strike business transactions at the margins …  and employee benefits are at the margin of the employer/employee relationship.

So … as business owners make the tough decisions required to keep as many people working as possible  AND keep quality as high as ever …

BENEFITS MUST BE ON THE TABLE

Posted in Business Analysis in Tough Times, Business Models, Leadership, Motivation | Tagged | 2 Comments

Salaries and Wages – Making the TOUGH CALLS

Posted on October 4, 2011 by Boomups

 

The reality is that we business owners have all been cutting back.

We owners know that after cutting back on every thing possible we eventually have to look at people.

Laying people off is the most excruciating thing a business owner has to do.

Firing is easy.

Layoffs impact good, hard-working, loyal employees.

It hurts.

It’s hard for those laid off to realize it, but  we lay off in an attempt to keep as many working as possible.

A HUGE part of my pride in owning a business is providing jobs. All things being equal, I would rather make less money and provide more jobs.

So …  when times get a little tough, what is the criteria I apply when making these decisions?

I think of my CLIENTS and the QUALITY AND VALUE I bring to them through my business and I ask myself  … “What can I get by with and STILL PROVIDE THE QUALITY OF SERVICE that my clients deserve?”

Then I make the TOUGH CALLS.

 

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Cost of Marketing and Sales – are you ready to get RADICAL?

Posted on September 27, 2011 by Boomups

 

Continuing our excursion down the Profit and Loss Statement …..

Cost of sales and marketing  can include everything from salaries to media costs for internet marketing. These categories of expense are easily measured and spoken of in common business parlance … like “We budget 10% of gross revenue for marketing and sales expense” or “Our cost of selling is 9% of sales.”

This data rolls off the tongue of most execs like water off a duck’s back.

The problem is that most executives have very LITTLE understanding of the DIRECT RELATIONSHIP between what they spend on sales and marketing and the actual results that they get.

WORSE … they don’t understand that most of the CONVENTIONAL WISDOM about the selling of products and services WENT OUT THE DOOR five years ago and has been FURTHER CHANGED by the unusual economic conditions of today.

ALL BETS ARE OFF …  when it comes to investment in MARKETING AND SALES!

Consider this premise …

“The customer/client relationship AND the methods of communicating with the customer/client have CHANGED SO DRAMATICALLY that it is time to RADICALLY examine WHAT WORKS AND DOES NOT WORK regarding the sales and marketing of your products and services.”

All business owners SHOULD deeply examine their sales and marketing strategies from TOP TO BOTTOM …. ASAP!

Don’t make the mistake of assuming that what worked in the past is working now… EVEN if it appears so … Take the time to apply BOTTOM LINE THINKING to this question.

Posted in Branding, Business Analysis in Tough Times, Business Critical Path, Business Models, Business Process, Process Improvement | Tagged , , | 2 Comments

Gross Revenue – do you get it?

Posted on September 20, 2011 by Boomups

 

Disclaimer for all you ACCOUNTING GEEKS out there: In this Blog I am moving between accrual accounting and cash accounting concepts at will … and yes… I do understand the difference.

Gross revenue (also called Gross Margin) is a source of working capital (cash) generated from operations. It is normally computed as Revenue minus Cost of Goods Sold.

Hints from the Field: If you understand the makeup of your gross revenue and its impact on cash flow…you have gone a long way in understanding WHERE YOU SHOULD PLACE THE ATTENTION OF YOUR BUSINESS. 

DO YOU HAVE THIS KNOWLEDGE? HAVE YOU DONE THIS ANALYSIS?

Most small businesses live and die on the cash derived from their gross revenue. Surprisingly, many of my small business clients don’t carefully assess and understand what MAKES UP this vital stream of cash nor understand its implications on their operations in tough times.

When I access my Gross Revenue at our company, RSW Partners, I  examine it in (4 ) dimensions:

1  Gross Margin percentage – What is the gross margin percentage (gross margin/gross revenue) for each category of revenue generated? What categories of revenue generate the highest percentage margins?

2 Contribution to margin – What percentage of total gross margin is generated by each category of revenue?

3 Cash Turn – What is the cash turn (speed at which cash is actually received and speed at which cash must go out the door)  related to each category of revenue?

4 Terms – What are the impacts of discounts and terms given on cash flow?

You can run the numbers on 1 through 3, but 4 is more subjective … My partner and I call it “leaving cash on the table” and we are painfully aware of our own tendency to over discount and over ‘term’ deals in these tough times.

Hints from the field: CASH IS KING!  City Market will NOT accept my Accounts Receivable report  as payment for groceries. (tried it several times) In tough times, if you MUST cut back on resources… first carefully study WHERE your cash is coming from and how QUICKLY it is coming in. I am continually surprised by the number of small businesses that CUT first and ask these questions LATER.

A thorough analysis of your Gross Margin will assist you greatly in understanding WHERE you should be applying your resources and WHAT  do expect in terms of cash from each revenue source. Do this analysis BEFORE you throw the baby out with the bath water!  :-)

 

 

 

 

 

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