Worcester Business Journal

August 1, 2016

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www.wbjournal.com August 1, 2016 • Worcester Business Journal 17 W hile corporate community service is often perceived as an easy way to get involved with local organizations, when rooted in a company's DNA, the results can go well beyond that surface-level impact. In fact, a strong community service program can have a positive effect on employees and customers as well as the nonprofits receiving contributions. Employees and customers are a company's two most vital assets – each taking months to secure. A true commitment to community service supports them both by helping to generate loyalty and a sense of purpose that cannot always be achieved in the office. We've made service an important focus at AAFCPAs through our 10% Back program. We donate 10 percent of our annual net income to nonprofits, delivering in the form of financial contributions, pro bono work or hours devoted to a cause or an event. This kind of engagement in the community helps employees feel connected and enthusiastic. Their efforts have the added benefit of helping to reduce turnover, boost morale and keep brand awareness high. Simply put, it makes work feel like a part of home, and it instills a sense of pride that cannot be easily shaken. It has helped create a family environment – even with 200 people. 1. Community should be a core value. One of the reasons AAFCPAs has been successful with its community programs is the commitment to service has been part of the company since its founding. The leaders of the firm always made a strong case for participating on boards and volunteering in the community. Once embedded in the culture, that spirit was held dear at every level. When management and staff work side by side on behalf of a shared cause, they share a genuine bond. With time and consistency, the practice becomes a regularly celebrated core value. 2. Choose your causes carefully. When choosing which community service initiatives to participate in, remember that not all employees will be moved by every cause, and in some cases they can even be polarizing. Take care in selecting which nonprofits you work with; consider whether the organization is stable, what its strengths are and the impact it makes. You'll want to articulate to your company why a particular nonprofit was selected to receive your valuable time and resources. 3. Act local. While staying in the neighborhood makes sense, remember that local does not mean the same thing today that it did a decade ago. Technology creates connections across vast distances, so you can define your community as you see fit. Geography is not as important as being invested in a cause together. 4. Remind employees why they matter One of the amazing benefits of community service is that it reminds everyone they can have a true impact on others. Younger employees have solidified a reputation for being socially conscious, and often prefer being connected with a company that is proactive. While they might naturally gravitate towards helping others, they still benefit from understanding what their good deeds mean to those around them. Whether young or seasoned, all employees may need training and education around the importance of philanthropy. It is what makes this country great! Nonprofits readily accept that they won't go far without providing a sense of connection around their mission and the surrounding community. For- profits of all sizes routinely deprioritize these elements – but in the battle for better margin, CEOs who better understand how the success of their company connects with a strong community may enjoy a better relationship with employees, customers and the advocates around them. n Carla McCall is the co-managing partner at Westborough accounting firm AAFCPAs. 10 Things I Know About... How to make community service part of your company culture KNOW HOW 10) Banking relationships Business owners should develop a solid relationship with their current bank and get to know the commercial management team of the bank. 9) Forging alliances This mutually benefits all parties and should be an ongoing effort for the business owner/ entrepreneur and management teams of the bank. 8) Ancillary services Review what type services the bank offers, which will benefit the efficacy of your business, such as online banking, remote deposit capture and merchant services. 7) Business banker/loan officer If your bank hasn't assigned you a small business or commercial loan officer, ask why. Upon meeting that individual, evaluate them. 6) Asking the tough questions As a business entrepreneur, take note if the loan officer is asking you the tough questions about your business and your management team. You'll be able to ascertain how seasoned and knowledgeable he or she may be in a short period of time. 5) Looking for capital Get your financial house in order by insuring that your business has the adequate cash flow to pay back the debt of the loan request. 4) Develop a strategic plan. Meet with your accountant and loan officer to discuss where you want to take your business, and ask for their guidance. 3) Review most recent financial statements. Understanding your financial statements will enhance your understanding of your business cycle and how you can improve cash flow. 2) Catch 22 Business owner always want to lower their tax liability by paying the least amount of taxes. A continual habit year after year of this practice will not benefit you or your business. In most cases, your company will not be able to display the adequate cash flow which banks will need to approve your loan. 1) Business value & equity When it comes time to sell your business, buyers want to see how much equity remained in the business and how profitable it is. They always want to see what the ROI will be. What are the seller's discretionary earnings? What have the trends been in the most recent three years? Reporting small losses annually devalues your business and most likely you will not be able to obtain the level that you believe the business is worth. n E fficient listening isn't just polite. It helps managers become better leaders when they allow time and access for employees and clients to communicate with them. That isn't to say that a 24/7 open-door policy is needed. Certainly managers should allow blocks of time to address questions or concerns before or after meetings, for example, and not jam- pack their day too much. Here are three thoughts to consider on active, engaged listening. Target 360 listening. This is when you not only put the phone down and shut off the laptop and act like you're hearing the other person, it's when, as Melissa Daimler at HBR.org, "the magic happens. You're not only listening to what the person is saying, but how they're saying it — and, even better, what they're not saying, like when they get energized about certain topics or when they pause and talk around others." Understand why good listening is good business. Liz Ryan at Forbes. com, reminds senior leadership why it's important to listen. One, actively processing feedback is how great ideas develop in a company. Two, you can cut off problems at the pass when you learn of them early on "when your employees can tell you without fear or hassle that something in your organization is messed up," she said. After all, you can't solve problems you don't know about. By continually requesting feedback, acknowledging it and acting on it, you warm up your company culture, a valuable tool. Hear the message and hear the messenger. Understanding each messenger – or team member – is key to managing effectively. It helps a leader get to the core of that individual's motivations and perspective. "Listening skills … enable a manager to discern the intentions, mindset and feelings of their team members — an invaluable skill for effective team management," writes Cathy Wellings at Business2Community.com. n 101: BETTER LISTENING >> BY SUSAN SHALHOUB Special to the Worcester Business Journal Business lending BY CARLA MCCALL Special to the Worcester Business Journal By Gene Amato Gene Amato is the founder and CEO of Northborough funding assistance provider Capital Biz Solutions. Reach him at Gene@capitalbiz.net.

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