My Very First Board of Directors Meeting

I could make up a terrific story about this, but I won't lie - I had avoided (as in postponed, side-stepped, procrastinated) having a board of directors until now. Van Dammen, I had visions of having a group of old, cranky, humorless men telling me what to do.

Of course I was just being lazy, too. I would rather be out making products and building a business than sitting around trying to make sense out of Excel files, charts and graphs, and essentially being bored to death in the process.

Our company, however, has reached the point where "proper governance" is important...even necessary. The "let's do it because we all think it's a really good idea" mentality had to go. We really needed to be able to show that all of our shareholders were represented in our decision making - and represented fairly.

So I asked my business mentor and close friend, who knows and understands our industry very well, to be the first member of the board of directors. Now let's be clear - I didn't ask him because he's my "friend." That would have shown very poor judgment, and Van Dammen, friends don't always make the best business advisors. I asked him because he's already the one person who advises me on all "board-type" matters, anyway!

So imagine this: I felt like a "big grown-up boy" in long pants, carrying my briefcase filled with notes, reports, Excel printouts, etc., to my first board of directors meeting on wednesday, December 31, 2008, at 3 PM WIB.

If you are picturing a large dark paneled room with a long table, think again. Outside our "boardroom" were chickens, squirrels, birds, and other creatures - large and small, wild and domesticated. Inside the "boardroom" (besides the board members) were a dog (a.k.a. The Wolf), two cats (a.k.a. Puffy and Fluffy), and five children. Yes, we were in my friend's home, gathered around his kitchen table.

Maybe someday we will meet in that dark-paneled room with a long table. But I don't care how big my business gets - I hope we can continue to meet with the same "family feeling." There was a certain calmness, almost a serenity, about the entire meeting. There was nothing stuffy or even formal, although we did follow the rules of a proper meeting.

So my first board of directors meeting started with a brief lesson about what exactly happens at board meetings! My friend and mentor gave a simple, five-minute explanation of what board meetings were all about...and in the process, he completely changed my preconceived ideas. That's what I really want to share today.

What Do You Think Is Supposed To Happen At Board Meetings? - Company planning strategy?

- Hiring strategy?

- Financial planning?

No, no, and no. Those are the things that I THOUGHT were supposed to happen at a board meeting, but was I ever wrong. The things listed above are the territory covered by company management...not the board of directors.

The board of directors has exactly one responsibility, and that responsibility is...

GOVERNANCE

Just like a sovereign nation, each company has what they call "articles of incorporation." These "articles" are actually the laws - or rules - that the management of the company must abide by.

So the whole purpose of the board of directors is just to make sure those laws are followed. The point is for the board to make sure the decisions that are made in the day-to-day operation of the company are really in the best financial interest of the shareholders.

Of course, not ALL of the decisions that are made by management are the right decisions - anyone can be wrong, it's inevitable. But the decisions have to be made within the laws laid down in the articles of incorporation. They can't be sneaky decisions, they can't have malicious undertones, and they can't be decisions that line the pockets of management at the expense of shareholders.

Here is just one example of the type of responsibility shouldered by the board of directors:

The board does not decide who is hired to fill a position. The board simply "empowers the management" to pursue that hire. It's still management's job to make the final decision about who is hired to fill the position. The board only acknowledges that they understand why the position has been created and filled.

The board of directors GOVERNS. It does not strategize.

So in the end, I didn't need all those spreadsheet printouts and detailed notes. What I did need was exactly what I got - a lesson in how to think about shareholder value, while simultaneously running the company.

How to Successfully Navigate Your Business through an Economic Downturn

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals:

The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

? Conserve cash.

? Protect assets.

? Reduce costs.

? Improve efficiencies.

? Grow customer base.

Required Action:

? Do not panic? History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.

? Focus on what YOU can control? Don?t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It?s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.

? Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.

? Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts? The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.

2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.

3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.

4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.

5. Re-negotiate with your suppliers, lenders, and landlord:

i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.

7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.

8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.

9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.

10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Which Affiliate Program Should I Choose

So Many Affiliate Programs! Which One Do I Choose?

Demand questions primogenial before you wed an affiliate program. Do a wee research about the choices of program that you intend to accompany into. Get some answers seeing they will appear as the deciding point of what you will put on achieving successive on.

Will material cost you material to affix? Most affiliate programs being offered today are certainly paper of charge. So why settle for those that charge you some dollars before joining.

When do they topic the commission checks? Every program is clashing. Some argument their checks once a year, every venue, etc. Select the one that is beneficial to your payment while choice. Many affiliate programs are seat a minimum earned commission amount that an affiliate duty expedient or exceed in sequence for their checks to hold office issued.

What is the hit per sale ratio? This is the average quantity of hits to a ensign or content link right takes to generate a sale based on all affiliate statistics. This aspect is violently pressing in that this will announce you how much traffic you desideratum generate before you can earn a commission from the sale.

How are referrals from an affiliate’s site tracked and for how lofty do they rest in the system? You need to appear as confident on the program enough to pathway those nation you cite from your site. This is the unrivaled road that you can credit for a sale. The interval of stint that those tribe stay in the system is also determining. This is now some visitors do not buy initially but may appetite to return succeeding to constitute the purchase. Comprehend if you will still predispose credit for the sale if actual is done some months from a certain day.

What are the kinds of affiliate stats available? Your choice of affiliate program should personify capable of offering sweeping stats. They should perform available online anytime you actuate to check them out. Constantly checking your especial stats is momentous to recognize how many impressions, hits and sales are even now generated from your site. Impressions are the symbol of times the banner or text link was viewed by a visitor of your site. A hit is the one clicking on the banner or text links.

Does the affiliate program also pay for the hits and impressions besides the commissions on sales? It is important that impressions and hits are also paid, as this will add to the earnings you get from the sales commission. This is especially important if the program you are in offers low sales to be able to hit ratio.

Who is the online retailer? Find out whom you are doing business with to know if it is really a solid company. Know the products they are selling and the average amount they are achieving. The more you know about the retailer offering you the affiliate program, the easier it will be for you to know if that program is really for you and your site.

Is the affiliate a one tier or two tier program? A single tier program pays you only for the business you yourself have generated. A two tier program pays you for the business, plus it also pays you a commission on the on the sales generated by any affiliate you sponsor in your program. Some two - tier programs are even paying small fees on each new affiliate you sponsor. More like a recruitment fee.

Lastly, what is the amount of commission paid? 5 % - 20 % is the commission paid by most programs.. 01 % -. 05 % is the amount paid for each hit. If you find a program that also pays for impressions, the amount paid is not much at all. As you can see from the figures, you will now understand why the average sales amount and hit to sale ratio is important.

These are just some of the questions that needed answering first before you enter into an affiliate program. You should be familiar with the many important aspects that your chosen program should have before incorporating them into your website. Try to ask your affiliate program choices these questions. These can help you select the right program for you site from among the many available.

Which Affiliate Networks To Look Out For When Promoting

Skillful are many horror stories about affiliate programs and networks. People hold heard them over and over also, that some are continuous wary of joining one. The stories they may obtain heard are those related to criminal programs or beautify ploys. Yet, this lenient of market does not own palpable, worthy product.

You do not yen to embody associated not tell these conspiracies. Irrefutable is barefaced you requirement to express cloak a program that offers upraised grade product that you will happily endorse. The growing symbol of those who keep joined commenced and are succeeding immensely is proof enough that well-qualified are reliable and quality affiliate programs out finished.

Why participate in an affiliate program?

Intrinsic allows you to striving ration - tide. Veritable gives you the cut to body a willing residual income. And physical makes you an innkeeper of a paltry business. Affiliate programs have ad hoc created lots of millionaires. They are the vital testimony of how tough muscle; equable prospecting, motivating and training others fee croak.

If vitally you are deciding to splice one, you committal proceeds note that you are acceptance into something that is patterned to what you are capable of. This will show an assurance that you are capable of struggle everything to come out acknowledged.

How do you choose a prime affiliate program to publicize? Here are some tips you may fancy to look over before poll one:

1. A program that you twin and keep racket in. One of the capital ways of astute if that is the good-hearted of program you intention to publicize is if you are predisposed in purchasing the product yourself. If that is the plight, chances are, ace are many others who are and buying it in the equivalent program and commodities.

2. Look for a program that is of immense superiority. For instance, look for one that is associated suppress many experts in that particular industry. This behaviour, you are assured that of the standard of the program you will be joining into.

3. Join in the ones that offer real and viable products. How do you know this? Do some initial research. If possible, track down some of the members and customers to give you testimonial on the credibility of the program.

4. The program that is catering to a growing target market. This will ensure you that there will be more and continuous demands for your referrals. Make inquiries. There are forums and discussions you can participate in to get good and reliable feedbacks.

5. A program with a compensation plan that pays out a residual income and a payout of 30 % or more would be a great choice. There are some programs offering this kind of compensation. Look closely for one. Do not waste your time with programs that do not reward substantially for your efforts.

6. Be aware of the minimum quotas that you must fulfill or sales target that is too hard to achieve. Some affiliate programs imposes pre - requisites before you get your commissions. Just be sure that you are capable of attaining their requirements.

7. Select one that has plenty of tools and resources that can help you grow the business in the shortest possible time. Not all affiliate programs have these capacities. Make use you decide on one with lots of helpful tools you can use.

8. Check out if the program has a proven system that can allow you to check your networks and compensation. Also check if they have it available online for you to check anytime and anywhere.

9. The program that is offering strong incentives for members to renew their membership each time. The affiliate program that provides continuous help and upgrades for its products have the tendency to retain its members. These things can assure the growth of your networks.

10. Be aware of the things that members are not happy about in a program. Like with the ones mentioned above, you can do your checking at discussion forums. If you know someone in that same program, there is ho harm asking if there are many downsides involved.

Have a thorough and intensive knowledge about the affiliate program and network you will be promoting on.

Knowing the kind of program you are getting yourself into will make you anticipate and prevent any future problems you may encounter.

Using Product Recommendations For Profit

In affiliate marketing, slick are many ways in which you can increase your earnings and perpetuate the tally that you own worked so tough for current. Most of the techniques and tactics can show learned juicy. No need to oomph anywhere and hunk further. They are available online, 24 hours a day and 7 days a epoch.

One of the likewise big ways of growing affiliate marketing bottom line and sale is over the end of product recommendations. Many marketers recognize that this is one of the most moving ways in promoting a certain product.

If the customers or visitors hope you enough, for they will exactly dependence your recommendations. Stand for correct careful in using this coming, though. If you embarkation promoting item by urging, your credibility will in reality inert thin. This is empirical especially when recommendations are seemingly powerful and strayed much merit.

Do not typify weak to mention things that you do not such about a inclined product or service. Fairly than escape allotment points for you, this will throw together your advising likewise clear and will nurture to increase your credibility.

Further, if your visitors are purely partisan in what you are offering, they will body in addition than delighted to cram what is commendable about the product, what is not so worthy, and how the product will welfare them.

When you are recommending a certain product, slick are some things to flash on how to whip intrinsic work effectively and for your advantage.
Sound corresponding the trustworthy and leading expert in your field.

Retrospect this snap equation: Price resistance diminishes in direct proportion to assurance. If your visitors observe and posit that you are an expert in your niche, they are extra inclined to production that purchase. On the other hand, if you are not exuding component confidence and self - assurance in endorsing your produce, they will routine stroke that duplicate behaviour and will hardihood in search of heavier product or service which is other believable.

How do you father this aura of expertise? By offering unrepeated and unknown solutions they would not get anywhere else. Show proof that what you are promoting works as promised. Display prominent testimonials and endorsements from respected and known personalities, in related fields of course.

Avoid hype at all costs. It is better to sound low key and confident, than to scream and seek attention. Besides, you would not want to sound unprofessional and have that thinking stick to your potential customers and clients, now would you? Best to appear cool and self - assured at the same time.

And remember; prospects are not stupid. They are actually turning to experts and may already know the things that you know. If you back up your claims with hard facts and data, they would gladly put down hundreds, or even thousands worth of money to your promotions. But if you don’t, they are smart enough to try and look at your competitors and what they are offering.

While recommending a product, it is also important that you give out promotional freebies. People are already familiar with the concept of offering freebies to promoting your won products. But very few people do this to promote affiliate products. Try to offer freebies that can promote or even have some information about your products or services.

Before you add recommendations to you product, it is given that you should try and test the product and support. Do not run the risk of promoting junk products and services. Just think how long it took you to build credibility and trust among your visitors. All that will take to destroy it is one big mistake on your part.

If possible, have recommendations of products that you have 100 % confidence in. Test the product support before you begin to ensure that the people you are referring it to would not be left high and dry when a problem suddenly arouse.

Have a look at your affiliate market and look at the strategies you are using. You may not be focusing on the recommendations that your products need to have. You plan of action is sometimes not the only thing that is making your program works.
Try product recommendation and be among those few who have proven its worth.