Summer the time to take look at business planning

NEW YORK -- It's summertime, and business slows for many small companies, giving owners a chance to do some planning and catching up on paperwork and chores.

Summer doldrums should also prompt owners to take a look at their companies to be certain all is going well -- for example, being sure that the lull in customer orders or phone calls isn't a sign of trouble.

"If you're seeing a slowdown in your business, it's easy to attribute it to a seasonal contraction," said Ed Paulson, president of Technology and Communications, a Chicago-based consulting firm. "The first thing I suggest to clients is to verify that the slowdown is happening for the reasons you think."

Paulson recommends getting in touch with customers and asking them what their business is like compared to last year. Owners might find that customers are taking their orders elsewhere, and in that case, "You need to find out why," he said.

If it's an industrywide slowdown, it's time to get creative.

"See if you can find new areas of the market to sell to," Paulson said.

Whatever the reason for the summer slowdown, it's a good time to look toward improving your business.

Eric Tyson, author of "Small Business for Dummies," recommends some long-term planning. That might seem obvious, but looking at the bigger picture is something many company owners seldom get to.

"Business owners tend to put out fires and just keep doing the same thing they're been doing every other day. That's why these long-range planning issues are often neglected," Tyson said.

His suggestions: "Sit down and think about your product offerings, your pricing, what your competitors are doing."

If you have partners or your company is big enough to have a senior management team, Tyson recommends meeting outside the office so you're away from daily distractions. Even owners who run a company solo could benefit from going offsite to do a little reassessing.

Slow summer days are also a good time to take a look at the calendar and start planning for special events and busy periods over the next year. Are there any trade shows you should be considering? If the holidays are your big season -- for example, if you're a retailer -- have you placed all your orders?

With the first half of the year over, this is also a good time to look at your company's finances. How does your cash flow look? Are there expenses you can cut?

Meet with your accountant, not just to talk about taxes, but to discuss setting up or changing your company's retirement plan.

Paulson added to the "to do" list: "Look at all those nit-picky legal or administrative things you don't want to do and get them done -- corporate meeting minutes you haven't created, notification to investors in your company of how you're doing, tax filings, legal filings."

Human resources is another area that probably should be re-examined.

"You should review all of your employees," Tyson said. "Ask yourself, 'Do I have the right employees doing the right jobs?"'

If you haven't given your employees performance evaluations, this is a good time to do it. You also might want to think about changes in vacation, sick time and other policies and to record them in an employee handbook, an important document that many companies never get around to creating.

Look around your company's physical plant and see what maintenance is needed. Make all the repairs you've been putting off, like installing weather stripping that will make the place more comfortable and save you money on heating and air conditioning.

Reassessing the business might be a little daunting for some owners. Paulson's suggestion is to get some help.

"Bring in a business consultant to give you a business checkup," he said.