Part-Time Controller

Email has come quite a long way. It is a vital component of our everyday business dealings and often, the lifeline of communication between either our clients or our customers. Some would call email, the most essential business tool we have in both terms of strategy and tactics.

While email used to be what the email marketing industry terms as 'one-to-one' communication, it has blossomed into 'one-to-many' or 'one-and-back'. Those marketers who understand the transformation of email as a communication tactic that can gain new customers, keep other loyal and lure old ones back - also understand it is now a tool of conversation and must be seen as such.

iMedia Connection recently detailed ten ways that email marketing has changed since it was first identified as part of any savvy marketer's arsenal. The article then highlights ways in which businesses can adapt to the changes and utilize public perception of the communication medium, connecting with them in a way that respects their preferences and ultimately leads to profitability.

Some of the fundamental changes are detailed below.

1. Acquisition is important, but retention is where the money is
The article asserts that people view their email inboxes as different from their actual mailboxes. It's more personal and companies need to ask for permission to be there. People should have the power of choice in subscribing to be a part of your communications. And if you can get them to buy in, you have to spend the time and resources in making them stay. Developing loyal customers is what will ultimately lead to increased business.

2. Email is all about the conversation again
If you're tuned into any social media sites or are keyed into the scene at all, you're aware that to truly engage clients or customers you must first 'join a conversation' before expecting something in return for your activity. This means providing information of value or commenting on things other industry experts are saying. Soon, you will develop loyal 'listeners' who appreciate your participation and are more proned to buy from you, or at least become familiar with who you are.

3. A marketer can't claim success until it's measured the right way
A good marketer will also measure the success of any email marketing efforts you may be invested in. But they should also be mining that data for other reasons, not just to determine if people are opening or reading the email. There is simply so much data available now, a lot of conclusions can be drawn from subscriptions, click through rates, opens, conversions and unsubscribes. And these conclusions should be incorporated as future tactics in any marketing strategy plan or marketing plan process.

The article contains many beneficial insights -- all of which should be analyzed as a way to incorporate email marketing into your business plan in an intelligent and proactive way that will allow true connection to those who matter most to your company.

The basic concepts that lie behind being an entrepreneur.

You're creating something out of nothing, you should build a team around you that will support your goals and vision who also have the capabilities to help you expand. They should be creative, smart innovators, like you and have some diverse backgrounds to bring skills to the table you may not have.

Hiring a team for a startup is different than hiring for an older business. For the latter situation, you should be looking for organized, experienced people who are also comfortable with being leaders. They need to reliable and have high ethical standards. And don't forget, good communicators!

What about when you are expanding beyond an initial or leadership team? You should have some protocol in place that touches on expectations for employees, meetings and compensation practices. This will make it easier to bring new people into the mix. The other consideration, anticipating a change in communication. More people means more diversity regarding personality type and communication preferences. Getting a system in place that will make sure you're facilitating positive communication will be essential.

Let's talk about some common mistakes entrepreneurs make formulating a company, product and culture. Often times, these can occur in the hiring process, it's easy to hire people who look great on paper but aren't committed to your mission. Unfortunately, their lack of motivation can unravel projects quickly.

Don't hold on to control too tightly. Learn to let go. If you trust the people you've hired, at some point, taking your hand off the back of the tricycle is a must. They should continue moving forward as you stop and watch them go - freeing up your time to think strategically about growing your baby (company). And be understanding of mistakes, they happen to everyone from time to time.

Most important, accept and embrace your identity as an entrepreneur. Take your passion and communicate it clearly to investors and employees. Use these facts about what it means to be a leader and what it takes to succeed to develop an organizational development strategy, marketing communication strategy strategic HR plan that will give your passion a blueprint.

You are completely responsible for building the new world as your company will be part of it.

Why do you have a blog? Is it to garner publicity and brand recognition in a cost-efficient manner? Is it to drive sales and growth? If so, you might be going about achieving those things in the wrong way says Joel Spolsky, founder of Fog Creek Software and management columnist for Inc. Magazine.

In his most recent column, Joel asserts that too many blogs focus simply on the companies themselves, new hires, acquisition announcements and other company events. This type of communication doesn't recruit regular readers or garner interest in actually doing business with your operation.

Joel asks, what's the proper formula to turn a blog into an area that helps generate revenue?

The answer:

"...an entrepreneur's blog has to be about something bigger than his or her company and his or her product. This sounds simple, but it isn't. It takes real discipline to not talk about yourself and your company. Blogging as a medium seems so personal, and often it is. But when you're using a blog to promote a business, that blog can't be about you. It has to be about your readers, who will, it's hoped, become your customers. It has to be about making them awesome." (Advice from well-known game developer and author, Kathy Sierra)

There you have it. Blogging should be about making those you seek to serve or do business with even better.

As you develop a marketing communication strategy that incorporate business blogging, be sure to align your communication with the needs of your audience just as you would in any other marketing activity (new product positioning or development, product launch plan, etc.)

We wish to congratulate ImmuneWorks, Inc., a long-time client of Milestone Advisors, on the announcement of its Development Agreement with Lung Rx, a wholly-owned subsidiary of United Therapeutics Corporation, to pursue development of ImmuneWorks' lead compound (IW001) for the treatment of Idiopathic Pulmonary Fibrosis (IPF). IPF is a progressive, usually fatal disease that afflicts in excess of 100,000 persons in the United States alone.

Founded in 2006, ImmuneWorks, Inc. is a biotechnology company committed to developing safe and effective immune tolerance treatments for patients with serious autoimmune diseases. Milestone Advisors has had the privilege of providing Part-Time CFO and Part-Time Controller services to ImmuneWorks. Congrats!

Click here to see the full story.

The reality is that fraud does exist in today's business environment, with potentially devastating effects. Uncovering and unwinding fraudulent activities in a company's financial accounting department can be very difficult and many times the business owner will not recoup their losses. How can a small business owner prevent and/or detect fraud? How can fraud be prevented in circumstances where one person is responsible for the finances? How can a business owner safeguard the company's assets?

There are a few steps that business owners can take to reduce the risk of fraud:

• Lock your valuables such as check stock, cash, signature stamps, and physical inventory.
• Segregate accounting duties such as check writing and signing, receiving and counting inventory, and depositing checks and reconciling the bank statements. If this isn't possible with your current staff, you might consider a part-time cfo, controller or bookkeeper to segregate the duties.
• Review third party back-up when authorizing transactions, such as reviewing original invoices before signing accounts payable checks.
• Perform background checks and/or check references on all employees and prepare performance reviews to monitor the employees activities.

Unfortunately fraud will always exist in the business world, but with the right business strategy the risk of fraud can be greatly reduced.

I often get asked why a part-time CFO or part-time Controller makes sense for an entrepreneurial company. The answer is simple, you get the expertise you need at a fraction of the cost. Most small businesses have many of the same needs to that of a large business when it comes to the finance and accounting function. The biggest difference is that they don’t need it on a full time basis (with a hefty salary and benefits).  

For many business owners, a clear exit strategy is an integral part of the overall business plan, while for others; the thought of transferring ownership is only a far-off notion.  Regardless of when it happens, ownership transition is a natural part of the business life cycle and should be planned for accordingly.  Preparing for this type of transition is a must so that when the time comes (and it may be the result of an unexpected development) you are more than prepared to come out on the other side of the deal a happy camper. Here are some things that should be addressed:
   
1.  Perform analysis of the owner’s needs, business operations and market factors to develop effective exit alternatives

2.  Prepare the company for future sale – operationally and financially

3.  Prepare company information, financial projections and other materials

4.  Identify and conduct research concerning potential buyers

5.  Develop your preferred deal structure and ideal negotiation terms

6.  Facilitate even further buyer due diligence (this would be farther down the line when a sale or acquisition was inevitable)

7. Coordinate negotiation and closing process (It may be wise to hire an unassociated third party to help facilitate communication during this stage)

I have a rule I'd like to introduce. If you're not familiar with Norm Brodsky, you probably should be.

Norm has been a contributor for Inc. magazine for years. A serial entrepreneur who has started and grown six different companies. Lately, Norm has been writing a column that details the incredibly complex and drawn-out process of selling CitiStorage, one of his six endeavors.

Each column details a new phase or challenge he's encountered during the process and I must say, his musings have been simultaneously intriguing and frustrating to follow. It seems the process of either buying a business or selling one (depending on which side you are on) is fraught with unseen obstacles whether those be morale of current employees, environmental regulations (one of Norm's problems) or adequate financing for the sale.

Even if you aren't currently in a position to either sell or acquire, reading through Norm's experience will open your eyes to the all the potential complexities involved in the process.

At Milestone Advisors, not only are we familiar with these complexities, we've helped many an entrepreneur sell their operations as well as buy other business that will enhance their products or brand.

We believe it an essential part of the process to contact a firm like ours who can objectively analyze the situation pre-sale and anticipate obstacles, thus building a strategic plan to ensure a smooth process. Such plans include organization assessment before a purchase or sale is made, market analysis (how will the sale or acquisition affect your remaining operations in the current economic client?) and much more.

Check out Norm's trials and tribulations throughout his process and if selling or buying is in your future, contact someone who can help you navigate through it.

...who do you guys serve?

We serve the people who drive our economy and job creation. They are thought leaders, innovators, family businesses and people with dreams. In other words, CEOs of entrepreneurial start-ups.

The process of starting a new venture is embodied in the entrepreneurial process, which involves more than just regular problem solving as it is fraught with both fresh and charted challenges. An entrepreneur must identify, evaluate and cultivate opportunity by navigating through all the forces that regularly stand in the way of creating something new and unique.

At Milestone Advisors, we break this process down for you into four clear phases:

1. Identification and thorough evaluation of the opportunity at hand
2. Development of a realistic and actionable business plan
3. Determination and acquisition of required resources
4. Management of the resulting enterprise or business

These four steps can become a highly-involved and sometimes difficult process. We built Milestone Advisors with the idea to help entrepreneurs, small business owners and start ups evaluate themselves, build a realistic and comprehensive business plan or business strategy and secure bank financing that will allow these ideas to come to fruition and experience success.

We believe the small business owner with his/her drive and spirit is what forms America's economic foundation. We exist to serve those who buoy the economy, create jobs and believe in an entrepreneurial country.

I'll trade you this accounting advice if you give me that office remodel. I'll provide you with part-time controller services if you give me IT support.

With the present economic state it’s no surprise to hear that companies are seeking non-traditional means of distributing their own goods and services. Say you’re a consumer electronics retailers with extra inventory – there are now ways to unload stock and you don’t have to chalk up to a complete loss.

You can do so privately of course, in one case I am familiar with, a PR firm offered their publicity services to a Web design and Internet marketing firm in exchange for a new Web site. However, there are now official barter exchanges. Several Web sites, featured in a recent piece by Inc. magazine, promote online barter exchanges to encourage mutually beneficial trades for organizations.

It could be a good option for your small business. Be careful though, the piece warns that the systems that have been set up are far more effective when you are bartering with and for services than they are with actual goods.

It’s an option and trend that’s worth considering.

Here at Milestone Advisors, we recently announced the expansion of our suite of services to encompass business consulting in the additional areas of marketing and technology.

The decision to do so has been made possible by several industry experts joining the Milestone team, one of whom is Doug Allgood.

The addition of Doug to the company will equip Milestone Advisors to provide strategic planning and execution as they relate to technology initiatives. Doug brings with him extensive experience in technology architecture and design, product and portfolio management, acquisition and integration of companies as well as business plan development and implementation.

Doug has held leadership positions at various corporations leaving substantial footprints in terms of positive change. At Ontario Systems LLC, Doug restructured their professional services division, brought 5 new products to market in less than 2 years, improved profit margins by 40 percent and left the organization with a new technology architecture in place to sustain future product development.

While Doug's past achievements are incredibly impressive, we are excited to witness the positive impact and results he will no doubt produce for our clients.

We’re growing by leaps and bounds, adding both staff and offerings to our current suite of services.

We will continue to offer consulting in part-time accounting and corporate finance; however, we can now supply clients with expertise in technology and marketing to continue to improve and enhance their overall business strategies.

Arriving at the decision to expand our services has been a natural progression. Over time, our clients had begun to ask additional questions concerning functional areas of running a business other than accounting and finance. They ranged from such basics as how to draft a marketing plan to more complex issues addressing how technology strategies should be handled or tweaked during time sensitive stages such as early start ups or mergers and acquisitions.

As a result, we have developed a comprehensive list of service offerings that now boasts market research and analysis, management and operation services, human resources and technology strategy. Our goal is to become a ‘one-stop-shop’ for Indianapolis strategic planning. It's our desire to become the premier go-to resource for the small business owner or entrepreneur seeking senior level expertise to help grow their operations and become profitable.

To support these expanded services, we have made valuable additions to our team that include seasoned experts who are veterans in various business disciplines. We couldn’t be more thrilled about the impact they will have on Milestone and the goals they will help our clients achieve.

As we grow our company in terms of both capability and size, we look forward to continuing to nurture and grow entrepreneurial ventures as well family-owned and small businesses throughout the state of Indiana and beyond.

When discussing the start-up of a new restaurant and bar with one of my clients, he said to me, "My biggest challenge is that from the minute I open the doors I have to start figuring out who's stealing from me." We might pass that off as typical for a "cash" business where employees have open access to the company coffers. But what about other non-cash businesses? Do they have the same concerns? What about your business? Are you susceptible to theft or fraud?

The Indianapolis Business Journal recently ran an article highlighting one company's misfortune. It's a story about the Dodson Group whose CFO plead guilty to over $422,000 of fraudulant charges and wire transfers. Here are some excerpts from the article:

The August 24th edition of the Indianapolis Business Journal featured Milestone Advisors' client, My Health Care Manager. The company's CEO, Alan Stanford (pictured here), began working with Milestone three years ago when planning the start-up of the new business.

My Health Care Manager helps older adults achieve better management and control of their total health care, longer independence and greater peace of mind for themselves and their loved ones.

Here's an excerpt of the article about their recent success:

The Indianapolis Business Journal featured a few "Women in Technology" in this week's issue. We have been fortunate enough to work with Ali Sales Roach, the President of Compendium Blogware. Here's a portion of the article about Ali:

What steps are you taking to enhance your skillset? Do you regularly attend networking events? When is the last time you had a performance review, formal or informal?

In today's HBR Tip of the Day, Steven DeMaio points out that many financial plan's in today's economy are being scrutinized for savings opportunities. In these turbulent times it isn't uncommon for training budgets to be reduced/eliminated to conserve cash. While I'm sure that all of us have always felt some responsibility for our own professional development, at times we have been able to rely on a company sponsored training plan that is typically mapped out in conjunction with an annual performance review. If your training plan has been reduced, postponed or eliminated because of lowered financial projections, now would be an excellent time to put additional effort into your broadening your network and skills. Some easy suggestions include meeting with at least two former co-workers a month, one major learning experience a quarter (i.e. volunteering at a not-for-profit), and conducting your own performance review.  

These simple steps can broaden your strategic horizon, keep you in touch with the changing market conditions and allow you to fine tune your exit strategy for retirement!

Daniel Lee, columnist at the Indy Star, featured a story about Runners Forum, highlighting their growth, the challenges that come with growth, and how Milestone has been helpful to them.

Milestone Client Feature
In January 2008, Bright Automotive launched from Colorado-based Rocky Mountain Institute, building on the work of a consortium of organizations, including Alcoa, Google.org, Johnson Controls and the Turner Foundation. In short order, the company has assembled some of the most experienced hybrid-electric vehicle engineers in the industry to help tackle the challenges of our economy, air pollution and diminishing oil supply. With its aggressive development plan, Bright Automotive has created, in less than 12 months, an all-new, plug-in hybrid electric concept vehicle call the IDEA, which operates on efficiencies of 100 miles per gallon. This two-seat delivery vehicle saves fleet customers an average of $3000 per year (per vehicle) to own and operate (based on $2/gallon of gasoline). The IDEA also produces one-third the emissions of a conventional van and is being promoted as a purpose-built solution for commercial and government fleets.

Previewed by fleet leaders and industry experts on April 8th, 2009, the IDEA was then taken to Washington, D.C. on April 21st for a special briefing with lawmakers, corporate leaders, energy industry experts, and Bright Automotive executives. The company and its CEO, John Waters, have made a media splash in 2009 with appearances on CNBC and Fox News, in addition to being featured in the Wall Street Journal, New York Times, Detroit Free Press, Fast Company Magazine, and recently in Forbes. The Anderson, Indiana start-up company has come a very long way in a short amount of time, accomplishing in a year what most companies in its industry can only achieve over several years.

Milestone Advisors’ has been privileged to work with Bright Automotive from the beginning.  As John Waters was forming the company, securing his operating facilities and hiring the first members of his executive team, Milestone managing partner Jeff Good was there to help set up the infrastructure necessary to handle rapid growth. Jeff was able to get things set up for the company very quickly. He made sure the company was ready to process payroll and provide health coverage to new employees, and also helped ensure the banking side was working properly. “The deep experience that Milestone possesses allowed the learning curve to be minimized. Jeff was able to step in as an executive of the company and fill the gap as a part-time CFO with a working model.”

With the company’s phenomenal growth and growing complexity, the company soon hired Jerry Bernier as its full-time CFO, and Milestone continued to supplement Bright’s accounting needs through a part-time controller arrangement with Ann Federwisch, who continues to play a role in the company’s accounting function.  As Jerry puts it, “we really didn’t have a need for a full-time controller, so Milestone was a logical solution.  It’s worked very well for us.”

Last month President Obama announced his goal to have 1 million plug-in hybrid vehicles on the road by 2015. Today, Bright Automotive is on track to begin mass production in 2012 with a goal to produce 50,000 IDEA vehicles annually and employ 5,000 people in the process. John Waters is a former General Motors engineer who believes his company is in an excellent position to succeed because Bright Automotive. He states the company has a “clean sheet approach to business and platform solutions”, giving the company a great advantage without the “bureaucracy associated with the fundamentals of a large corporation”.

Milestone Advisors helps start-up companies with their management accounting needs so entrepreneurs like John Waters can spend their time doing what they do best, growing their businesses.