By David Saint-Onge�This article is a re-printed from the�

December 2010� edition, as approved by the�UP Business Today�

Keep it simple, stupid! This�acronym was first coined by�Kelly Johnson, a lead engi-�neer at Lockheed who�helped create the Lockheed�U-2 and Sr-71 Blackbird,�two key spy planes devel-�oped during the Cold War.�This principle is best exem-�plified by the story of John-�son handing a team of�design engineers a handful�of tools, with the challenge�that the jet aircraft they�were designing must be re-�pairable by an average me-�chanic in the field under�combat conditions with only�these tools. Hence, the�'stupid' refers to the rela-�tionship between the way�things break and the sophis-�tication available to fix�them. I think there is an�eerie similarity of this acro-�nym in today’s business�world.�

From low margins and in-�creased competition, to sky-�rocketing administrative�costs and a great need for�increased efficiency, busi-�ness owners are challenged�on all fronts. There seems�to be overwhelming confu-�sion on the part of business�owners as to what to do�next. What seems almost�incomprehensible to me is�that in today’s business�world many of the fixes be-�ing launched at business�owners would, if implement-�ed, actually take the busi-�ness down the path to less�profitability.�

Take for instance issues like�elaborate marketing efforts�(my pet peeve is business�names on pens), internal�

reporting that is not used by�management to manage the�company, implementation�of information technology�(including social media) that�does not add value to the�business, and broad-based�diversification of business�services into areas that do�not produce quantitative�and measurable results (i.e.�profits). Why do business�owners find themselves in�positions where their busi-�nesses are no longer opera-�tionally efficient and,�consequently, not profit-�able? Because in many in-�stances business owners�operate at one of two ex-�tremes; on one hand they�are stuck doing things the�way they have always done�things or they take desper-�ate measures by imple-�menting tactics that simply�do not work. In today’s�business market, many�business owners simply�need to understand what�their companies have be-�come and refocus their ef-�forts toward profitability.�Yes, it sounds almost too�remedial, but then again it�is.�

Entrepreneurs are risk-tak-�ers; this is the fundamental�nature of leveraging every-�thing you own to go into�business for yourself. As�entrepreneurs make the�transition to successful busi-�ness owner, they tend to�become risk averse. Why�does this happen? Because�now they have money and�

when you have it, you don’t�want to risk it. This result is�further compounded as the�tenure of the business�owner becomes over-ex-�tended. Simply put, some-�times business owners stay�in their businesses too long.�When this happens they in-�herently do not drive their�businesses with purpose�and desire. They uncon-�sciously hinder the ideas�and energies of their key�employees, and their out-�side interests cause a lack of�focus. All of these issues�inevitably lead to an unprof-�itable business operation.�

As we prepare to embark on�2011 and another year of�uncertainty in Lansing and�Washington, maybe it’s time�for business owners to stop�holding their breath and�take charge of the new nor-�mal in today’s economy.�The following tips could help�you gain control of your�business and a positive bot-�tom line.�

1. Reestablish a Pur-�poseful Mindset:�

There are simply too many�distractions at work; too�many meetings, too much�social networking, too much�hierarchy, and too much�negativity. You must cir-�cumvent all practices that�do not result in achieving�measurable and attainable�goals. From the telephone�receptionist and field techni-�cian to the salesman and�your professional staff, sur-�round yourself with col-�leagues who want to be�successful. Set pragmatic�

and reasonable goals, ac-�cept professional advice,�and hold you and your staff�accountable. Regardless of�what your competitors do�(and say), always be the�market leader when it�comes to operational stan-�dards.�

2. Refocus your Business�Vision:�

Sit down and honestly as-�sess your core business val-�ues and gauge them against�what your company actually�does. For companies who�are suffering, you should�quickly see that your stated�corporate values are not in-�sync with your actual busi-�ness practices. Accept the�reality of what your com-�pany is good at and do it; if�you want to change these�abilities do so with the same�conviction as when you�started your company in the�first place. Too many busi-�nesses fail because they�grow for the wrong reasons.�Most importantly, articulate�your vision to your employ-�ees. They cannot help you�row the boat if they do not�know when to row and how�fast to row. And finally,�always challenge your em-�ployees to get better. They�are a business’ greatest as-�sets and you should get out�of them what you get out of�your fixed assets. Educate�them, entrust them, and let�them make reasonable mis-�takes. But most important-�ly, do not try to make an�employee something they�do not have the inherent�talent to do. Put them into�a position to be successful.�

5 Critical Issues to Jump-Start Your Business�

3. Write a New Marketing Plan�and Implement It:�

Too many businesses spend money�on marketing efforts that do not pro-�vide a measurable return on invest-�ment. Lose the logo pens, the fancy�logo-printed note paper, the business�envelopes with full-colored return ad-�dresses, and the plethora of business�flyers, brochures and mailings. Your�marketing tactics should include a�marked increase in direct sales. Stop�hiding behind emails, websites, tradi-�tional correspondence and telephone�calls. People use and retain busi-�nesses they trust. They cannot trust�you if they cannot shake your hand�and see the passion in your eyes.�Marketing is important, but sales pay�the bills.�

4. Cut all Discretionary Spending:�

Although you want to be a good cor-�porate citizen and you want to be�proud of your efforts and the opinion�people have of your company, there�is a limit on the number of civic orga-�nization memberships, donated priz-�es, golf outing sponsorships and�cash/service donations a business can�absorb. Yes, many of these programs�are invaluable to the communities you�serve in business, but what do you�want to be known for: a business�owner of a viable business or a busi-�ness owner who gave away his loyalty�to his family and his employees sim-�ply because his/her ego needed to be�stroked?�

5. Establish True Efficiency in�your Business Operation:�

Inefficiency creep finds its way into all�business operations. Unnecessary�meetings, too much management,�unused data generation, and an undy-�ing loyalty to certain staffers who�simply don’t care anymore or cannot�do the job you need them to do.�Business owners need to climb down�from the big chair and get reac-�quainted with their company’s busi-�ness operations. Chances are you will�find the existence of an operations�process that all but guarantees there�is no chance at many any reasonable�profit. I am a true believer in sys-�tems. Profitability comes from em-�ploying sound procedures that work�even when you are not in the office.�

Leonardo Da Vinci is credited with�having said, “Simplicity is the ulti-�mate sophistication”. Maybe business�owners need to come to the realiza-�tion of what makes their company�successful, and simply stick to it.�

David Saint-Onge is President and�Principal Strategist for Black Ink Assets�(www.blackinkassets.com), a business�consulting company that enhances or-�ganizational performance, guides busi-�ness growth, helps businesses�understand productive sustainability,�and serves business owners with effec-�tive business exit strategy planning and�implementation services.�