Scalability

Is your company scalable?  If it isn't, you will have a difficult time adjusting to the crazy economic swings we have been experiencing. The most costly part of your company is probably human capital (people). Do you need an IT person, or can you source this work?

If you have seasonal fluctuations do you hire and fire or do you use a temporary agency?  These are the questions you need to ask yourself.  On the surface - the up-charges are more costly than having these people full time.  The real cost is having a full time IT person sitting in a cube with no real projects to work on, Or carrying seasonal people till the "busy" time returns.

Partnering with temporary firms or IT service firms will save money in the long run, and best of all, when it comes time for the seasonal layoffs, your partner does the dirty deed.

Realtors - grow some nads

Now that I have stepped down from Bubba Burger, I thought maybe sell the house and downsize - there are so many deals out there. So my wife and I do some research and on the surface it looks like we can sell our house for "x" and buy smaller for "y." The math worked until we met the realtor.  They have become experts in reducing expectations.  They stay quiet then show comps in less desirable areas and say this is what your house needs to be priced at to sell before the next millennium.

It is ridiculous.  I have built five houses.  Basically the number suggested was less than the lumber to build new and what the heck - let's throw the land in for free.

Anyone that knows me personally knows I am a conservative democrat who on occasion votes for the elephant.Ronald Reagan was one of those times.  We were in "stagflation" a new economic anomaly. I was in business school at the time and learned in ECO101 that peoples expectations was part of the mathematical equation. Huh. So Ronnie's staff knew this.  They conjured up trickle down Reaganomics and sold it to the nation and said things will get better.  The "expectation" was stagflation and 18% mortgage interest would go away. Huh.

Guess what folks - it freakin' worked!

Reaganomics was a bunch of crap and years later David Stockman, the guy that conjured it up like a potion for the American people it would admit that, but what did work was expectations.

So listen up realtors, raise prices, set expectations that the housing crises is over and guess what it will be. For us - we will stay in our wonderful house.

Change Management

Although some people love constant changes, the bulk of office type workers hate change with a passion.  Whether it is a new software, different manager, cube change, team member change, whatever the new parameter or paradigm, people will resist. Over my career I have been responsible to make changes to improve business intelligence, streamline process, enhance ERP applications, whatever the change dujour might be.

The first step in making changes is to keep people informed at the right time, and include them in the process.  Afterall the tactical people in the organization understand the details.  The strategic staff(management) do not typically know the details.  Change is a team effort let your team be a part of it - and the level of success increases.  If you need help with a change management project, call or text me at 904-219-7777 or email c@clarkschaffer.com.

Tax Tip - Home Office

You would think that the tax code is black and white, but it is very much gray. Just because a deduction may seem black and white, sometimes steer clear. Home office is one of those items. There are so many rules to take a home office and for some reason IRS agents have a knack for picking on this item.  At the end of the day the deduction is not that large anyway.  In fact there is a box to mark if you took home office.  Nothing like telling on yourself and asking for trouble.

If you feel you are due the deduction take it - or just augment other deductible items that are less susceptible to evidential scrutiny.  Need some ideas, call or text me 904-219-7777 or send me an email c@clarkschaffer.com

Sustainability

Is your business sustainable or a flash in the pan. GM, Citi, Arthur Andersen, Enron. Remember these household names?  Some have sustained thanks to our tax dollars.  Do you think Betty's Cupcake's will get a government bailout when the cupcake fad ends? Or closer to home, will ZenCog (a business I have with Garf and Shaun) sustain if the fixie fad ends?

The answer to sustainability is based one one simple word - AGILITY.

Unless you are a shoe cobbler or barber, you better be ready to change with the fads and styles. You must always be a fortune teller, seeing the future before it arrives.  Stay nimble, stay open minded, re-invent your business periodically.  Were you aware that Burger King franchisees are required to tear down and rebuild their restaurants every twenty years?

I challenge you to add a fund and account in your books called AGILITY.  Accrue for it, save for it, and in three years replace your carpet.  Keep it fresh, it will help you to remain sustainable. Nobody wants to walk on dirty, smelly carpet. Need more sustainable ideas? call or fax me at 904-219-7777 - Clark

Conscious Capitalism

I went to a CFO conference last week.  Jeff Klein jumps up to the stage. A fit fiftyish man takes off his sport coat, no tie and he animatedly starts his talk. You could almost hear the attendees wonder why he took his jacket off. Yours truly was in jeans - no jacket. Times are clearly changing.

Anyway Jeff starts his talk about conscious capitalism. The world is about people.  And the X-Y generations have no interested in the yuppie greed.  They want flex time, commute working, the ability to take time off for charitable events.

This excitable speaker kept us awake - no coffee needed. The point is this - work is more than the bottom line - its about your people. If your people are happy and fulfilled you will get ten times the productivity, and a much happier work force.  When I was at Bubba Burger my mantra was always your life trumps your job.  If there was an assembly for your kids or, ballgame or whatever - that is important.  There was one caveat.  Get your work done - before or after hours or remotely.

Yesterday I went to meet with my successor. We met about an hour or so. My former staff knew everything that had to be done.  The questions for me were rather mundane.  That was because my ship ran without me.  My team was trained, cross trained, and they new what needed to be done on their own.  Sure the CFO was needed to make decisions, but not for daily tasks.  My successor will have a smooth transition, which meant I did my job, and my team could work without babysitting.

As always - Its about people. Happy people. Respected people. Period!

Check out http://www.consciouscapitalism.org/ and http://www.workingforgood.com/

Servant Management

I believe in the school of "servant management."  It is a reverse paradigm of "boss management." Boss management also referred as "BM" is when the boss is king and employees do whatever the boss decrees.  This is the typical management style.  Herd those employees, whip them into shape, model them into what you envision your subordinates should look, act, and sound like because after all they work "for" the boss.

Servant management is where the team leader's role is to provide his/her staff with the tools, time, encouragement, and responsibility to perform at their highest capability.   You are not the boss, but the leader of the team. Your team will work hard to please you because you have treated them with dignity, honor, respect, and autonomy. If your business wants to "do more with less" this is one approach.  Do you need some coaching, just call or text me 904.219.7777. - Clark

Cloud Computing

The "cloud" is the newest buzzword in technology.  Actually I have been using the cloud for ten years in the form of a private cloud using Citrix and Microsoft Terminal Services. These are functions reserved for middle market to large companies.

Today however the application is public and resides in the cloud where the software company maintains the application, backups, upgrades, etc.  The client pays for the use, but never installs it locally "your computer."  The two main applications I use in my practice are Intuit Quickbooks and Taxes Online.

These applications allow me and my clients to work on their books from anywhere.  The data is always backed up securely by Intuit, and it is available from home, work, or even on an airplane. I have been dreaming of such a solution since the nineties (when I had an accounting practice with hundreds of clients and a full staff.). This chapter of my career will be a self run practice using the best of breed software and no staff.  My clients will deal directly with me and I am available by cell or text at 904-219-7777.  As long as I can get to a PC I can answer questions about your books.

You'll know where to find me.....I am in the cloud.

Next Level

Last night I ran into Topher, a riding buddy at Lowes.  I was getting wood and sawhorses to make my desk, not appropriate for the C-Suite, but very appropriate for my start-up practice. I wasn't really sure what Topher was getting but with hand reached out he greeted me and congratulated me on my new career chapter.  He read it on Facebook.

We discussed my model for fixed fee CFO service and he was wondering what made me different from an outsourced bookkeeper who would candidly charge less. He challenged me to create a concise spiel that he and my other friends could use to tell the difference and refer people my way.

This got me to thinking, I need an "elevator pitch."  Why spend $750 a month when other accountants may charge half that and other CFO consultancies thousands more. I thought about the fact that I have completed years of public audits with no change. I built intranets for the companies I worked for. I had real experience for leading companies to break the $100,000,000 sales level, I implemented $1,000,000 software applications, I raised $18,000,000 in revenue bonds, I have downsized companies and accounting departments. I have built financial models to help sales and operations to be more profitable.And so on, and so forth.

Topher asked what my target client was, and I replied "$750,000-$5,000,000." He thought I was spot on.  These companies are much smaller than the companies I was CFO of like Balfour Beatty and Bubba Burger. I also ran the sub accounting department of the Jaguars to raise $18,000,000 in profits to build the Terrace Suites for SB39. I am a huge believer in simplicity,  The thrill of improving process and culture of small businesses is why I made the jump, and stepped down as CFO for Bubba Burger last Friday.

Every business is different and has different needs.  I am adaptive and have successfully impacted these businesses in many ways.  Click on my resume for the details.

Anyway I could never finish this spiel on the Empire State Building elevator. So here is my talk and it can be done between two floors on an elevator.  " I will take your business to the next level."  That's it. That's simple.  That is the essence of who I am.  It is also ambiguous enough to craft a solution to each unique business.

On top of it we can speed date.  The first month of service is free.  You like it we shake hands and partner to take your business "to the next level." If you don't like my service, we shake hands and part.  It's that simple.

Autonomy

Autonomy in the workplace provides freedom to employees to control their daily routines. Some call it the empowerment zone. All people need a sense of empowerment to be their best and own up to responsibilities. If one is not given autonomy and is micro managed they can never be held responsible for, or learn from their mistakes.

This does not only hold true for employees, but for kids, and teammates as well. If a person feels a sense that they are not in control of their destiny, daily life becomes burdensome and they simply go through the paces to get to the next day. This may ultimately lead to depression because of a feeling of helplessness. Eventually deviant behavior may ensue such as taking drugs or alcoholism because that is something they perceive they can control. They control the substance entering their body, but then that substance controls them as well as the boss at work or overbearing parent or coach.

Autonomy requires an individual to perform at their best because they have the freedom to make choices, some good, and some bad. It is the obligation of their supervisor to seize the opportunity to teach from the mistakes they make. Supervisors become mentors and teachers, not micro managers and bosses barking orders.

Allow your employees and children autonomy, but then do not neglect your job to watch over. It is not your responsibility to control others, but help them be a more productive member of your family, company, or team.

Golden Thumb

I am sure you have heard of people having a Green Thumb. These folks can make any plant grow in any condition. For those like myself that either over water, under water, over fertilize, under fertilize, give too much sun, or too much shade will know, those people with that thumb are rare and gifted. I should know, I am married to one.

I have extended this term to people who grow businesses - successful entrepreneurs. Only, I replace "green" with "golden". The gold of course is to represent financial fortune. Most people that start businesses do so with passion about something they know well. Restaurateurs, plumbers, contractors, doctors, dentists, lawyers - you get the picture.

Anyway, these people start the first business and after many years of hard work, sacrifice, and turmoil, hit it big. This is the two percent I wrote about in a previous post. The other ninety eight percent get by with a modest living, but this two percent makes millions. The trick is keeping the millions. Their ego steps in "I have a golden thumb. I can buy any other business, open a second restaurant, become a developer, and my thumb will turn it into gold. I have the bank account to prove it!"

Be careful. Many of my clients in the past that expanded into markets they new little about, or businesses that they had not pursued before often end up losing big, and recoiling to the first business they had - if it is still there. You see there is no such thing as a golden thumb, it is a fairy tale like the Goose That Laid the Golden Egg. There was no such luck. It was the hard work, determination, and constant monitoring that built the first nest egg. There is a secret however to repeating such good luck and fortune, and I will write about that in the future.

KISS

I am not talking about lips to lips. I am referring to former president Clinton. Nope not discussing Lewinsky, rather the signs he had everywhere during the campaign. KISS "keep it simple stupid." Whether a financial statement or chart of accounts, complex does not mean better.

The more accounts, the more risk of transactions being misclassified. Simple is not only efficient but comforting.  If the process, even if complex is made simple, it is more understandable and useful.

I challenge you to look at 10 percent of the least used accounts and remap to other accounts. KISS it.

Break Out

It appears that my career has come full circle. CPA practice, Controller, CFO, Systems Implementor, Consultant, CFO, and back to a CPA practice - CFO Consultant. I have learned a great deal over my thirty year career. On the eve of a CFO conference and two days after resigning my position at Bubba Burger, I realize there are sacrifices to make in order to have an autonamous and interesting career.

The average tenure of a CFO with any given company is 3-5 years. I am not sure what happens at that point.  Maybe it is boredom once all challenges at the company are resolved.  Possibly the "fixing" is the thrill of the job, then it is time for the next opportunity.  A full time CFO runs its circle after 5 years.  This is no way to have a stable career.  On the other hand a CFO consultant always has new opportunities to "fix" a new client.

In any event - here I go at age 54 to start a CFO consultancy that includes typical CPA services "tax and accouting."  This blog is my calling card and will be filled with tips as time passes.  Thanks for taking the time to follow me.