Spring cleaning for small business—in December

Jim Blasingame

At this time every year I like to remind small business owners to do what grandma used to do after a long winter. She called it “spring cleaning.” So let’s do the same thing, but let’s do it now, in December.

December Cleaning will give your business the maximum opportunity to start 2014 with as little 2013 baggage as possible. Here are a few ideas to get you started.

Throw stuff away
Even if you’re not a pack rat like me, you’ve accumulated stuff you don’t use anymore. If you can’t sell it, give it away or throw it away, because it’s in your way.

Lose the graveyard
Every business has a digital graveyard. Unused or broken computers, monitors, etc., may have some value. Call a tech recycler and convert it into cash. Even if you donate it or throw it away, it’s out of your way.

Retool the team
The only thing worse than firing someone is letting an unproductive employee hold your team’s performance hostage for another year. You owe productive people the most effective organization possible, which often means you have to let the unproductive ones pursue their careers elsewhere. There is never a good time to fire an employee. But if you’re squeamish about letting someone go during the holidays, give them extra severance.

Clean out customers
Reevaluate the profitability of customers and put them into four groups, from the most profitable As to the least profitable Ds. Worship the As, cater to the Bs, encourage the Cs and teach the Ds about self-service. When the cost of a customer’s expectations exceeds their profitability with you, they should be allowed to join your unproductive employees – elsewhere.

Purge products
As with customers, take a new look at inventory by identifying the most profitable As to the least profitable Ds. Stock all the As, a few of the Bs and maybe a couple of Cs, but never let a D spend one night under your roof unless it’s paid for. Remember, profitable inventory management means just-in-time, not just-in-case.

A/R reality
Take the hit and write off uncollectable accounts receivable now, so you can start January with a clean list. A/R write-offs are tax deductions this year, but become gravy if you collect them next year.

Each new year deserves to have the maximum opportunity to be successful, so don’t saddle it with this year’s obsolescence and bad decisions. By taking these steps you’ll prove to yourself – and your banker – that you have the discipline to make critical decisions for which successful managers are known

Write this on a rock ...Smart managers spring clean their businesses in December.

For a short video from Jim on this topic, click here.


Jim Blasingame is creator and host of the Small Business Advocate Show. Copyright 2013, author retains ownership. All Rights Reserved.

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