Today we will declare our New Years Resolutions for 2018. We usually do this after the New Year, but because the Holidays land on Mondays this year we will be taking a well needed break to enjoy the hustle and bustle of the Holiday season with Friends and Family.

 

2018 New Year Resolutions.

Over the life of our newsletter we avoid politics and we will continue to do that but the new Tax bill that Congress will vote on this week will be beyond politics and will be law. Our government has been telling us how small business will be helped and we will focus on that point because the large share of my readership is small businesses (a business with fewer than 500 full-time equivalent employees).

  1. Invest in plant equipment to save money and modernize. If the new tax laws are passed the Feds will increase the Section 179 provision that will allow for write offs of $1,000,000 for the next tax year. Many of my readers are having good years and fully expect that to continue through 2018. For those organizations that are Sub Chapter S corps this can be a great way to protect yourself legally from taxes and improve your company with the tax break.

    Software and computer hardware are part of these investments and don’t forget borrowing money to pay for these investments does not exclude these write offs. Not taking advantage of these incentives while times are good would be a strategic error. Remember processors should invest 3.5% of revenue to gain an advantage and distributors should invest 1% in technology. Measure your investments against this standard.

  2. Leverage the Cloud. Cloud computing is the fastest growing segment of my industry and it is the fasted growing segment of my business. According to Adobe they predict $107B in online retail sales this year, dominated by Amazon. For the Food Industry we have developed a Software as a Service (SaaS) system a type of Cloud computing. According to ZD Net market worldwide for SaaS in the 1st half of 2017 is over $43 Billion. There are many reasons to use SaaS

    Over 70% of smaller companies use QuickBooks. This simple accounting software can be extended to the food world using Cloud computing. As a last message for 2018 look at what we do on the Cloud by looking at Food Connex Cloud.

  3. Implement Best Business Practices.  We have discussed many times before the implementation of best business practices and I know from personal experience how difficult change can be not only for individuals but for companies. In companies it is even more of a struggle because you aren’t in your employee’s minds. Change Management is a huge challenge.

    I took a “Leading with Impact” Executive course at Penn State 20 years ago and the focus was how do you get people to change, the net is people must be incented to change and being creative as a manager in creating these incentives is critical. In relation to #1 above you can make a large investment but getting your people to move out of their comfort zones to change is the only way to implement best practices. The day of “do it or else” is an idle threat especially with good workers we don’t want to lose.

    One of my large distribution customers in Philadelphia wants to implement automation to increase his capacity.  His order accuracy is well over 99% which is great, but he wants to reduce the triple checking effort of his key guy. Developing a change strategy will be difficult, but must be done to make sure the business continues to prosper as new generations are brought into the business.

 
TOP RESOLUTION FOR 2018
IMPLEMENTING BEST BUISINESS PRACTICES
WILL GUARENTEE YOUR SUCCESS




Issue 608 - Avoid Expensive Business Software Mistakes

I've seen thousands of food businesses make decisions on business software over the last twenty-five years.  I've won a lot of deals, I've lost a lot of deals, but the losses that hurt most are when a potential client makes a mistake and buys 'the wrong' software.  I'll see these companies shopping again a year later, and tens of thousands of dollars poorer with no improvement to their business.  Today we'll talk about how to avoid that situation.

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