January Newsletter

Thoughts from the Nest

Creating Your Team

You've heard the old sayings, "Behind every good man is a great woman" (or the other way around if you prefer) and "A coach's success is proportional to the talent of his team". Just recently up here in Seattle, first year head football coach Jim Mora, was fired after only 1 year at the helm of a 5-11 Seahawks team. The President of Football Operations, Tim Ruskell, also "resigned" (see non-renewed contract) his position in early December. Now, I'm not sure if the record was caused by the coaching, players or a combination of both, but I can tell you is that the results did not live up to the expectations and the staff paid the price. However, I'm sure it wasn't a coincidence that the poor showing of the Seahawks coincided with the absence of Future Hall of Famer, left tackle, Walter Jones (out for the season), All Pro middle linebacker Lofa Tatupu (missed most of the season), and All Pro corner back Marcus Trufant (missed most of the season).

So what does this have to do with our industry? I have a long held belief that the success of your team (or business) is directly related to the quality of your team, your "players" and "front office". I am sure everyone would agree with the simplicity of that statement. I have witnessed firsthand that the most successful companies in our industry have a foundation of great players and fantastic "front office teams". I particularly want to speak to the quality of the front office teams.

Every December customers call us for new equipment to be delivered before the end of the year to take advantage of the Section 179 deduction. (In retrospect, I probably should have written this article three months ago). And not surprisingly these calls come from the best companies. And invariably we hear during the conversation, "I spoke to my accountant or financial advisor and he recommended ....". Owners of the most profitable companies don't meet together only on April 14th with their accountants they see once a year, hand them a stack of receipts, and ask "How much did I make?" But rather, they include these individuals in their monthly budget discussions and monthly close outs to discuss the progression of the company, and look for ways to improve. They meet with their insurance agents regularly to receive recommendations on policy and procedure improvement to reduce premiums and decrease their exposure. They have relationships with bankers that understand their business's capital requirements. They have trusted people (I call them bounce-back guys), both in and out of the industry, they can brainstorm and discuss ideas with. We try to be one of these guys and provide information to you, so that you can make the most appropriate decision for your company. We are fortunate to have "bounce-back guys" that give feedback on operating Nite-Hawk more effectively or improving our product.

Now the quality of your team can vary and it takes real relationship building to find the best people with whom to advise and confer with. To maximize the value of your team, focus on finding that competent accountant, insurance broker, banker or bounce-back guy that has a passion for your small business. Demand that they get involved and become creative, like you, to look proactively at the future. As entrepreneurs we are accustomed to figuring things out on our own, so it may take a bit of humility to ask for help. You may be good, but with some help; you can take advantage of opportunities to increase profitability. Develop relationships with qualified people and let them have an emotional attachment to your business. Let them share in your successes and in time, the effort and money spent in this pursuit will pay off.

Tracy Day, President

Tax Season is Upon Us

Taxes are one of the most important issues facing small and growing businesses. And like a company's profitability, its annual tax bill will reflect the owner's aptitude and knowledge. Business owners need to be sure that they are meeting all of their responsibilities and seize every opportunity available to reduce their taxes. For the latest in tax laws, tips, deductions, and credits available, refer to www.irs.gov.

Maintenance Minute - Tire Rotation

Tire rotation is an aspect of tire service that is often ignored. Tire rotation can help equalize tread wear and greatly extend tire life. This is usually performed at 5,000 miles depending on the type of tire and vehicle. Check your owner's manual for recommended mileages. Tire rotation can often be done in conjunction with an oil change to minimize down time. This is also a good time to have your tires rebalanced to avoid vibration issues. Inspect the tires for any damage, remove stones or debris from the tire treads, check for uneven wear, and tire pressure.