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Top 10 Tips on Making a Small Business Great

By Adrian Hinwood, MD of Duticall

In 1990 my business partner and I launched a new cleaning management business in Brisbane. This was after some soul searching and much forward planning. We were somewhat disappointed when the results of the test marketing, carried out in the CBD, indicated that the specialised nature of the business was not in demand. Undeterred we ploughed ahead…later realising (fortunately) that our niche market was largely outside the CBD and away from the "high rise property managers" who were seeking lower prices at the expense of higher quality.

After 17 years and a billing turnover of over $3 million, I still consider Duticall a small business but also one that is well on its way to becoming a great business. From my experience, I have determined that the company's success has been largely achieved by applying the following principles -

1. Establish a strong business concept

Duticall has a unique selling proposition (USP) which is different to most competitors offering commercial office cleaning services and appeals to potential Clients seeking those services. The Duticall system requires Contractors to put their own money behind each cleaning contract they undertake…in return they earn at least 75% of the Client billing. Duticall targets the small and medium sized businesses…its niche market.

2. Provide direction to staff

Most, if not all Duticall's staff are in tune with the company's values and relate to the USP - the message is simple to tell and understand… the "commitment and reward" approach improves performance and reliability. The result is a better Client service.

3. Create the vision

The company has a vision of providing great service to Clients (its aim is to be number 1 in cleaning). This vision stimulates the energy, enthusiasm and self-esteem of management, staff and Contractors. Most recognise the rewards that can be achieved by focusing on this vision. Duticall people care.

4. Target the market

Good Marketing is targeting the right prospects. Duticall has built its own database of strong prospects from the niche SME market. In the early days this took many hours of driving and walking in order to visit likely prospects. This database is now extremely valuable to the company and is continually updated. Prospects are contacted regularly (usually within a 90-day cycle) by either telephone, letter or email. Emails are used to direct prospects to the company web site. 11% of new business is now generated from the internet.

5. Set goals and display results

Management should lead the business to greater heights by setting goals which are understood and agreed to by staff. Positive results achieved should be displayed so that staff can share in the euphoria of success. Duticall maintains an achievement whiteboard in the main office. It is updated daily.

6. Systemise and automate

Duticall has designed and built its own computer software in order to automate the administrative and accounting procedures. Before doing this, procedures were simplified as much as possible whilst maintaining sufficient flexibility for future developments. This has resulted in procedural discipline and business efficiency. Thinking is fast, decisions are fast. Clients expect a fast response.

7. Generate profits and monitor results

Management figures need to be kept up to date so that comparisons can be made with budget. Statistics and profit centres need to be monitored and analysed so that action can be taken quickly. If there is a problem …reinvent. Improvements will follow.

8. Protect cash flow

Positive cash flow is the lifeblood of any business…ignore it and profits alone will not be enough. Duticall has strong controls over Client debts averaging 30-days outstandings. Allowing the Duticall debtors ledger to slip to 60-days would require $250,000 extra cash or bank support.

9. Build a reputation on integrity

Duticall strives to handle Clients and Contractors with integrity at all times.

Integrity is the basing of one's actions on an internally consistent framework of principles. Depth of principles and adherence of each level to the next are key determining factors. One is said to have integrity to the extent that everything he does and believes is based on the same core set of values. While those values may change, it is their consistency with each other and with the person's actions that determine his integrity. (Source: en.wikipedia.org/wiki/Integrity)

As a result of Duticall following these principles:

10. Make the business fun

Duticall management and staff strive to succeed with a passion and have fun whilst they're doing it…when success is achieved, they celebrate it!