Personal Finance

Spring cleaning for small business—in December

At this time every year I like to remind small business owners to do what grandma used to do after a long winter. She called it “spring cleaning.” So let’s do the same thing, but let’s do it now, in December.

December Cleaning will give your business the maximum opportunity to start 2014 with as little 2013 baggage as possible. Here are a few ideas to get you started.

Throw stuff away

Even if you’re not a pack rat like me, you’ve accumulated stuff you don’t use anymore. If you can’t sell it, give it away or throw it away, because it’s in your way.

Lose the graveyard

Every business has a digital graveyard. Unused or broken computers, monitors, etc., may have some value. Call a tech recycler and convert it into cash. Even if you donate it or throw it away, it’s out of your way.

Retool the team

The only thing worse than firing someone is letting an unproductive employee hold your team’s performance hostage for another year. You owe productive people the most effective organization possible, which often means you have to let the unproductive ones pursue their careers elsewhere. There is never a good time to fire an employee. But if you’re squeamish about letting someone go during the holidays, give them extra severance.

Clean out customers

Reevaluate the profitability of customers and put them into four groups, from the most profitable As to the least profitable Ds. Worship the As, cater to the Bs, encourage the Cs and teach the Ds about self-service. When the cost of a customer’s expectations exceeds their profitability with you, they should be allowed to join your unproductive employees – elsewhere.

Purge products

As with customers, take a new look at inventory by identifying the most profitable As to the least profitable Ds. Stock all the As, a few of the Bs and maybe a couple of Cs, but never let a D spend one night under your roof unless it’s paid for. Remember, profitable inventory management means just-in-time, not just-in-case.

A/R reality

Take the hit and write off uncollectable accounts receivable now, so you can start January with a clean list. A/R write-offs are tax deductions this year, but become gravy if you collect them next year.

Each new year deserves to have the maximum opportunity to be successful, so don’t saddle it with this year’s obsolescence and bad decisions. By taking these steps you’ll prove to yourself – and your banker – that you have the discipline to make critical decisions for which successful managers are known

Write this on a rock ...Smart managers spring clean their businesses in December.

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Jim Blasingame is one of the world's leading experts on small business and entrepreneurship. He is the creator and award-winning host of the nationally syndicated radio program, The Small Business Advocate® Show. In addition to his weekly columns, Jim is the author of two books; Small Business is like a Bunch of Bananas and Three Minutes to Success.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Small Business

Jim Blasingame

Jim Blasingame is one of the world’s leading experts on small business and entrepreneurship. He’s the creator and award-winning host of the syndicated radio program, The Small Business Advocate Show, syndicated columnist and author of Small Business Is Like a Bunch of Bananas and Three Minutes to Success. His third book, The Age of the Customer®, released in January 2014. Jim has received awards and recognition for his work and leadership on behalf of small businesses from the U.S. Small Business Administration (SBA), Association of Small Business Development Centers (ASBDC), American Chamber of Commerce Executives (ACCE), New York Enterprise Report, FORTUNE Small Business and TALKERS magazine. Google ranks Jim as the #1 small business expert.

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