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Universities, colleges eye ways to lower energy usage
SYRACUSE — Whether it’s to help keep costs down or recruit new students, embracing energy efficiency is a hot topic on college campuses these days. Colleges and universities spend an average of $1.95 per square foot on electricity and 15 cents on natural gas, according to a recent study, entitled “The Changing Energy Landscape and […]
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SYRACUSE — Whether it’s to help keep costs down or recruit new students, embracing energy efficiency is a hot topic on college campuses these days.
Colleges and universities spend an average of $1.95 per square foot on electricity and 15 cents on natural gas, according to a recent study, entitled “The Changing Energy Landscape and its Effect on College Campuses in the Northeast, from CHA Consulting, a unit of CHA (Clough Harbour & Associates). CHA is headquartered in Albany and operates an office in Syracuse.
Those energy costs have increased about 77 percent in the past decade, and the average university or college spends about $105,000 annually on energy costs for a 50,000-square-foot building. Multiply that by 15 buildings across a campus, and energy costs are a big concern, says Michael Tsakaloyannis, director of energy and infrastructure at CHA.
“There has been a lot more interest in energy conservation and some of it is for financial reasons,” Tsakaloyannis says. The other component is the changing attitude of students, who are concerned with things like how large a campus’s carbon footprint is or if the university has a climate action plan.
“We’ve seen that both of these factors are motivating colleges to upgrade,” he says. Firms such as CHA can assist universities with that process, he contends, starting with conducting studies to help campuses learn their energy-usage statistics and come up with a plan to implement effective conservation measures.
Those measures can include an array of projects, Tsakaloyannis says, ranging from lighting upgrades to large projects such as the combined heat and power plant that Cornell University installed following the 2009 release of its climate action plan. Cornell has a goal of reducing its carbon emissions to zero and achieving carbon neutrality by 2050, and the 15 megawatt, combined heat and power plant has already reduced greenhouse emissions on campus by 32 percent, according to the CHA study.
“It’s a more efficient way of producing energy,” Tsakaloyannis says of the plant, which produces electricity and captures the “waste” heat generated during that process to utilize for campus heating requirements.
The project is so successful that other schools tour Cornell to learn more about it and see if a similar project would work on their campuses, he says.
Cornell has also taken things a step further and made energy conservation a lifestyle on campus through an online dashboard where anyone can monitor the energy usage in Cornell buildings and by hosting fun contests that promote a “greener” life on campus.
“When you educate and have that information out there, you will drive energy conservation,” Tsakaloyannis says. Typically, such efforts can yield between 2 percent and 5 percent additional reduction in consumption as people adopt conservation-friendly habits.
Whatever approaches a university decides to take, government and utility incentives are available to make projects more feasible, he adds. The New York State Energy Research and Development Authority (NYSERDA) offers incentives to cover up to 50 percent of the cost for energy audits right on through to specific projects. In addition, many power companies offer an array of incentives to help make projects more affordable, Tsakaloyannis notes. “We’re all kind of in this situation of tough times and difficult budgets, so you have to use your resources wisely,” he says.
Headquartered in Albany, CHA (www.chacompanies.com) is an engineering and design firm. The company has offices across the state including Buffalo, Newburgh, New York City, Rochester, and Syracuse. CHA also has offices in Georgia, Massachusetts, Ohio, Texas, Florida, Virginia, Vermont, North Carolina, Illinois, Indiana, New Hampshire, New Jersey, Connecticut, Missouri, Wisconsin, and South Carolina, along with a number of international locations.
Contact The Business Journal at news@cnybj.com
Gillibrand urges USDA not to close 250 offices, including some in New York
U.S. Senator Kirsten Gillibrand (D–N.Y.) today urged the U.S. Department of Agriculture (USDA) not to close 250 offices nationwide, including up to 10 offices in
Some employers start preparing for upcoming health-plan excise tax
More than one-third of the nation’s employers surveyed (36 percent) are already focusing on possible changes to health-care benefits as they anticipate the upcoming excise tax, which takes effect in 2018. That’s according to a survey entitled “Health Care Reform: The Road to Implementation” that Mercer conducted in May 2013. Mercer is a New York
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More than one-third of the nation’s employers surveyed (36 percent) are already focusing on possible changes to health-care benefits as they anticipate the upcoming excise tax, which takes effect in 2018.
That’s according to a survey entitled “Health Care Reform: The Road to Implementation” that Mercer conducted in May 2013. Mercer is a New York City–based human resource and financial-services consulting firm.
Often referred to as the Cadillac tax, the excise tax is a 40 percent levy on the cost of medical coverage above thresholds that the Affordable Care Act (ACA) sets.
Under the terms of the ACA, so-called “Cadillac” health-insurance plans worth more than $10,200 for individuals or $27,500 for families face a 40 percent excise tax starting in 2018.
“It’s 40 percent on the amounts over [those totals], so it would be the excess benefit over that dollar cap,” says Thomas Flynn, principal with Mercer based in its Pittsford office.
The numbers are different for retirees or those in high-risk professions, including $11,850 for single coverage and $30,950 for family coverage, he adds.
The tax will be permanent and apply to both fully insured and self-funded employer plans, according to the website of Minnetonka, Minn.–based UnitedHealthcare, which operates an Upstate office in DeWitt.
The upcoming excise tax on high-cost health plans is proposed to both slow the rate of growth of health costs and finance the expansion of health coverage.
“If they’re [subscribers are] willing to keep the plan, then we’re [the federal government] going to put a penalty that’s really going to make them think not just twice but maybe five times about not changing it,” Flynn says.
The seeks to shift consumers’ belief that if they have to pay more expenses themselves, through higher deductibles and out-of-pocket expenses, they’ll avoid unnecessary or overly costly procedures.
The federal government is saying if the nation wants to start controlling health-care costs, then consumers “have to stop being insulated from costs,” Flynn says
“These high-cost plans are normally the ones where that exists, either totally or with the majority of services rendered,” Flynn says.
Application of the health-care excise tax is based on cost of the premiums, or the premium equivalents under a self-funded plan, he notes.
It’s applied based on what the employee pays, flexible-spending account contributions, and health-reimbursement account and health-savings account dollars that are part of the plan, he says.
“This tax looks at the full complete cost of the plan,” Flynn adds.
The Mercer survey also included statistics about what steps employers are taking to avoid the tax in 2018.
More than half have introduced a consumer-driven health plan (CDHP) or taken steps to increase enrollment in an existing CDHP; 48 percent plan to add or expand health-management programs; and 28 percent indicated they would drop a higher-cost health plan, the survey found.
When employers look at all the costs of health-care reform, they’re starting to ask consultants such as Flynn about what other costs are “out there.”
“The excise tax is certainly one of those ones that people want to get out in front of just for those reasons,” Flynn says.
Contact Reinhardt at ereinhardt@cnybj.com
St. Joseph’s opens North side training center
SYRACUSE — St. Joseph’s Hospital Health Center formally opened a training center at 500 N. Salina St. in Syracuse on Feb. 28. The hospital announced the event in a news release distributed March 7. Crews renovated the site, which was previously home to a branch of HSBC Bank, to create 19 classrooms. St. Joseph’s is
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SYRACUSE — St. Joseph’s Hospital Health Center formally opened a training center at 500 N. Salina St. in Syracuse on Feb. 28.
The hospital announced the event in a news release distributed March 7.
Crews renovated the site, which was previously home to a branch of HSBC Bank, to create 19 classrooms. St. Joseph’s is preparing its employees for the launch of a new electronic health-record system on May 1.
The center, which includes 50 certified trainers, welcomes its first class on March 3, St. Joseph’s said.
“The new training center provides a foundation for growth through employee education and leadership development across the organization, now and in the future,” AnneMarie Czyz, vice president for clinical and educational services and chief nursing officer, said in the news release.
Skorton to leave Cornell for Smithsonian post in 2015
ITHACA — Dr. David Skorton, president of Cornell University, will leave in mid-2015 to become the next secretary of the Smithsonian Institution, the university announced on March 10. Smithsonian Institution, located in Washington, D.C., is the world’s largest museum and research complex, Cornell said in a news release. Cornell is Central New York’s largest employer,
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ITHACA — Dr. David Skorton, president of Cornell University, will leave in mid-2015 to become the next secretary of the Smithsonian Institution, the university announced on March 10.
Smithsonian Institution, located in Washington, D.C., is the world’s largest museum and research complex, Cornell said in a news release. Cornell is Central New York’s largest employer, according to CNYBJ Research.
The Smithsonian board of regents voted to approve Skorton’s appointment on March 9, Cornell said.
Skorton, who is also a board-certified cardiologist, will remain president and continue all the duties and activities of his office at Cornell through June 30, 2015, the university said.
Skorton and his wife, professor Robin Davisson, will relocate to Washington, D.C.
In reaction to the announcement, Skorton said in the Cornell news release that he is “honored to be chosen.”
“The mission of the Smithsonian, ‘The Increase and Diffusion of Knowledge,’ resonates deeply with me and mirrors the collective mission of the remarkably talented community of scholars, students and staff with whom I have had the privilege to collaborate at Cornell these past eight years. While I look forward to beginning my new assignment, I am delighted that the timing will enable me to commemorate Cornell’s sesquicentennial as president,” Skorton said.
Robert Harrison, chairman of the Cornell University board of trustees, in the news release called Skorton’s tenure at the school “stellar.”
“When he departs next year, he will leave Cornell in a historically strong position, having regained its financial stability, elevated its rankings across key disciplines, increased student access, and greatly expanded its presence in New York City and around the world,” Harrison said.
Harrison will soon appoint a committee to lead the search for Cornell’s 13th president, the school said.
Skorton became Cornell’s president on July 1, 2006. He holds faculty appointments as professor in the departments of medicine and pediatrics at Weill Cornell Medical College in New York City and in biomedical engineering in the College of Engineering on Cornell’s Ithaca campus.
In addition to his work as an administrator and a cardiologist, Skorton is also a biomedical researcher, musician, and an advocate for the arts and humanities, Cornell said.
Skorton earned his bachelor’s degree in psychology in 1970 and his medical degree in 1974, both from Northwestern University.
He completed his medical residency and fellowship in cardiology at the University of California, Los Angeles, according to Cornell.
Contact Reinhardt at ereinhardt@cnybj.com
UnitedHealthcare Community Plan adds four Upstate counties to service area
UnitedHealthcare (UHC) Community Plan announced it has added four additional upstate New York counties to its service area for Medicaid Managed Care and Family Health Plus. The addition of Lewis, Seneca, Wayne, and Ontario counties brings the number of New York counties in the service area for UHC Community Plan to 38, the health insurer
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UnitedHealthcare (UHC) Community Plan announced it has added four additional upstate New York counties to its service area for Medicaid Managed Care and Family Health Plus.
The addition of Lewis, Seneca, Wayne, and Ontario counties brings the number of New York counties in the service area for UHC Community Plan to 38, the health insurer said in a news release.
Medicaid Managed Care and Family Health Plus are state-government sponsored health-insurance programs, UHC added.
The programs are available throughout Central and Western New York, along with the Hudson Valley, Long Island, and in New York City, according to UHC.
In addition to Lewis, Seneca, Wayne, and Ontario, the 38 counties also include Broome, Cayuga, Chemung, Chenango, Clinton, Herkimer, Jefferson, Madison, Oneida, Onondaga, Oswego, St. Lawrence, and Tioga in Central New York and the Southern Tier.
Additional counties include Albany, Bronx, Chautauqua, Columbia, Essex, Fulton, Genesee, Kings, Monroe, Nassau, New York, Niagara, Orange, Queens, Rensselaer, Richmond, Rockland, Suffolk, Ulster, Warren and Westchester, UHC said.
UnitedHealthcare Community Plan offers programs for adults and children who may qualify for Medicaid and Child Health Plus. These programs offer “comprehensive” health coverage, including preventive care, primary care, hospitalization, prescriptions and other services, “often with little or no cost,” according to UHC.
UnitedHealthcare continues expanding its service area and wellness programs so more eligible New Yorkers and their families can access “affordable, quality” health-care [coverage], particularly preventive care, Pat Celli, president of UnitedHealthcare Community Plan of New York, said in the news release.
The company last August announced plans to hire more than 60 new employees to support its recent expansion in New York.
In that news release, UHC indicated it employs more than 4,000 people in 18 locations across New York, following “significant” expansion in its Kingston and Tonawanda locations during 2012.
The health insurer hired more than 1,000 employees to support growth at these two locations alone, the company said.
UnitedHealthcare, a business of Minnetonka, Minn.–based UnitedHealth Group, Inc. (NYSE: UNH), serves nearly 4 million New York residents with a care-provider network of 232 hospitals and more than 58,000 physicians and other health-care professionals statewide, the company said.
Contact Reinhardt at ereinhardt@cnybj.com
Attorneys discuss antitrust issues in Utica hospitals’ affiliation
UTICA — The recently consummated affiliation agreement between Faxton St. Luke’s Healthcare (FSLH) and St. Elizabeth Medical Center (SEMC) in Utica was “all about the patient, quality of care, [and] reduced costs.” That’s according to Dale Worrall, an attorney with the Syracuse office of Harris Beach PLLC. Both Worrall and his colleague, attorney Justin Runke,
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UTICA — The recently consummated affiliation agreement between Faxton St. Luke’s Healthcare (FSLH) and St. Elizabeth Medical Center (SEMC) in Utica was “all about the patient, quality of care, [and] reduced costs.”
That’s according to Dale Worrall, an attorney with the Syracuse office of Harris Beach PLLC.
Both Worrall and his colleague, attorney Justin Runke, helped the hospitals in the strategic-planning process and then served as transaction counsel, working with the facilities’ internal general counsels.
“We worked them in order to facilitate getting the deal done,” Runke says. They served as antitrust counsel as well, Worrall added. Their work included plenty of document drafting, according to Runke.
That work culminated in the March 6 formal announcement that FSLH and SEMC have affiliated as the Mohawk Valley Health System (MVHS). It will serve as the parent organization of both hospitals, the institutions said in a news release.
A new board of directors comprised of 18 members, with an equal number of members from the FSLH and SEMC boards, will govern MVHS. Scott Perra, president and CEO of MVHS, will oversee the management team for the system.
Antitrust issues
Before the hospitals reached their destination of a completed, formal affiliation agreement, they had to navigate considerable regulatory hurdles. When two of the primary hospitals in a given market combine, regulators worry that the merged organization would have the ability to dominate the market and increase prices, the Harris Beach attorneys say.
Such an outcome was “not at all” the purpose of this affiliation, says Worrall.
“The purpose of it was to create efficiencies to lower costs, to improve the quality of care for patients in that market,” he adds.
Still, the attorneys had to work with the hospitals to assure the Federal Trade Commission (FTC) and the office of New York Attorney General Eric Schneiderman that market dominance wasn’t the primary motivation, they say.
Schneiderman’s office on Dec. 11 announced a settlement with the Utica hospitals, resolving concerns that their proposed affiliation would adversely affect competition in the health-care market in the Utica–Rome region.
The overhead cost of operating two hospitals independently is “significant” in a service area the size of Utica–Rome, Runke says.
“To cut, consolidate that infrastructure, pull out some of the duplication in services, you can actually drive down the costs and create financial stabilization in that market to ensure that the consumers, the patients, have access to high quality health care,” he adds.
Both attorneys have worked with the hospitals for “about a year-and-a-half,” Runke says, noting that the work focused on both the facilities’ planning and the transaction.
Any time a merger of this nature, which involves consolidating this type of organization, state and federal officials will have concerns, Worrall says.
The transaction was very “transparent” in the marketplace, says Runke, noting the hospitals issued a press release indicating that they were talking and thinking about the transaction.
“That prompted the FTC to actually pick up the phone and call almost immediately,” Runke recalls.
As the process unfolded, Runke and Worrall spoke with the hospitals to learn about the purposes and the reason for the affiliation agreement.
They wanted to impress upon the hospitals that presenting their case to the regulators would be key
“We just have to make sure that the enforcement agencies, the FTC and the [attorney general’s] office, understand the benefits of this proposed transaction, and that’s what we did,” Worrall says.
Those attending the January meeting of the New York State Bar Association in New York City discussed the antitrust issues surrounding this affiliation agreement, according to Worrall.
In the context of health-care reform, Runke called this affiliation agreement “a big deal.”
The ongoing changes in the nation’s health-care system seem “to favor consolidation in health care,” he says. And with the passage of the Affordable Care Act, or Obamacare, in 2010, the anti-trust enforcement agencies “got interested in health care again,” Runke added.
He believes the affiliation of Faxton St. Luke’s Healthcare and St. Elizabeth Medical Center represents a “lesson to be learned.”
“If you’re willing to work with the enforcement agencies, and if you’re willing to demonstrate the true intent of what you’re trying to achieve and convince them that what you’re doing is in the interest of the patients, is in the interest of driving down health-care costs, of assuring access to quality health care in the communities where the patients live, [then] they’re willing to work with you,” Runke says.
Contact Reinhardt at ereinhardt@cnybj.com
Top 10 Things You Should Know About the New Medicare Surcharge Tax
This tax filing season brings a whole new tax to the mix: the Medicare surcharge tax. Since 2013 was the first year that this tax became applicable, taxpayers should pay close attention to its complex and untested rules. This article will highlight 10 areas of the new tax. 1. When does the Medicare surcharge tax
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This tax filing season brings a whole new tax to the mix: the Medicare surcharge tax. Since 2013 was the first year that this tax became applicable, taxpayers should pay close attention to its complex and untested rules. This article will highlight 10 areas of the new tax.
1. When does the Medicare surcharge tax apply and who does it affect? The new tax is effective for tax years beginning after Dec. 31, 2012. It affects all individuals that have modified adjusted gross income (MAGI) of more than $250,000 for joint filers and $200,000 for those filing single. For trusts, the new tax kicks in at the highest tax bracket (only $11,960 for 2013 and $12,150 for 2014).
2. Earned income surcharge tax — the Medicare surcharge tax is actually two separate taxes. The first tax is a tax on earned income. The rate is 0.9 percent and is in addition to the 1.45 percent paid by wage earners or 2.9 percent paid by the self-employed. Earned income includes wages and self-employment income.
3. Net investment income (NII) tax — the second tax is a 3.8 percent tax on net investment income (or unearned income). Investment income is generally income such as interest, dividends, annuities, rent, and other income that is not derived in the ordinary course of a trade or business. It also includes gains from the disposition of property not in the ordinary course of a trade or business, such as gains from the sales of stocks, securities, and mutual funds. These amounts can be reduced by properly allocable deductions such as investment interest, investment expenses, and state and local taxes.
4. How is the Medicare surcharge tax calculated? Even though a taxpayer may be subject to the tax because his or her MAGI is over the threshold amount, it does not necessarily mean that all net investment income will be subject to the tax. The NII surtax is the lesser of: 1) net investment income, or 2) the excess of MAGI over the threshold amount ($200,000 for single taxpayers and $250,000 for married taxpayers). Similarly, the earned income tax (0.9 percent) applies only to earned income over the threshold amounts.
5. How does it affect those involved in renting real estate? For people renting real estate, the rules become very complex. In general, a taxpayer passively renting properties will be subject to the tax. However, for those in the real-estate business, it is possible that the NII tax will not apply. It is highly recommended that you speak to a tax adviser if your involvement in real estate is more than passive.
6. How does the Medicare surcharge tax affect trusts that accumulate income? Trusts that accumulate income and pay tax at the trust level are also subject to the tax. As mentioned earlier, because of the condensed tax brackets for trusts, they are subject to the tax at a much lower level ($11,960 in 2013).
7. What if you sell a pass-through entity? Owners of pass-through entities such as S corporations and partnerships will generally not be subject to the NII tax when they sell their interests in the business. The rules intend to exclude NII taxes from any gain on non-passive trade or business activities.
8. What if you sell your home? For income-tax purposes, there is a gain exclusion from income ($250,000 for single taxpayers and $500,000 for married taxpayers) on the sale of a primary residence in which a taxpayer owned and occupied it for two of the last five years prior to sale. This same exclusion applies to the NII tax. However, any gain above the exclusion is considered NII for this tax.
9. How does it affect your retirement income? There is an exclusion from the NII tax for distributions from retirement accounts. The exclusion applies to qualified retirement plans and annuity plans, tax-sheltered annuities, IRAs and Roth IRAs, and deferred-compensation plans under Code Sec. 457(b).
10. What if you have children subject to the “Kiddie Tax”? If a taxpayer elects to include a child’s unearned income on his or her return, this will expose that individual to the NII tax since the investment income would be treated as income of the parent.
The Medicare surcharge tax is a completely new tax in the Internal Revenue code, which is in addition to the income tax, the alternative minimum tax, and the self-employment tax. Since the rules are new, complex, and untried, complying with them can be difficult. Consulting a tax adviser is highly recommended.
Heather J. Leggiero, CPA, JD, is a partner and tax director of the Albany office of The Bonadio Group, where she oversees the firm’s tax department. Contact her at hleggiero@bonadio.com
Affordable Care Act enrollment climbs to 4.2M in February, HHS reports
Total enrollment in private health-insurance plans through state and federal exchanges rose to more than 4.2 million as of March 1, the U.S. Department of Health & Human Services (HHS) reported on March 11. That’s up by 943,000 since Feb. 1, the agency said. The pace of sign-ups was below the 1.1 million registered in
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Total enrollment in private health-insurance plans through state and federal exchanges rose to more than 4.2 million as of March 1, the U.S. Department of Health & Human Services (HHS) reported on March 11.
That’s up by 943,000 since Feb. 1, the agency said. The pace of sign-ups was below the 1.1 million registered in January and 1.8 million in December.
To meet the HHS’ original target of 7 million people enrolled in health plans under the Affordable Care Act (ACA) by the end of March, 2.8 million people would have to sign up for plans this month alone.
HHS also broke out its data by state. According to the numbers, 244,618 people had selected a private health-insurance plan from NY State of Health, the Empire State’s exchange, as of March 1.
However, the NY State of Health website (https://nystateofhealth.ny.gov) indicates that 590,639 individuals had enrolled in health plans as of March 10. Of those, 299,836 signed up for private insurance and 290,803 were eligible for Medicaid.
National numbers breakdown
Of the 4.2 million signed up for private health insurance as of March 1, 1.6 million were in state-run exchanges like New York and California, while 2.6 million were in the federally run exchange, the HHS said. The demographic breakdown or health-plan enrollees was as follows:
To read the full Department of Health & Human Services report on health-plan enrollment, visit:http://aspe.hhs.gov/health/reports/2014/MarketPlaceEnrollment/Mar2014/ib_2014mar_enrollment.pdf
Common Sense Business Tips for Sales Professionals
You cannot manage timeSo much has been written about time management that you hardly have the time to read about it. There are numerous time management programs, processes, and tools. However, you cannot manage time, no matter how hard you try. There are 24 hours in a day and they are ticking away, second by
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You cannot manage time
So much has been written about time management that you hardly have the time to read about it. There are numerous time management programs, processes, and tools. However, you cannot manage time, no matter how hard you try.
There are 24 hours in a day and they are ticking away, second by second, minute by minute, as you read this. You cannot save the hours or store them up. And when they are gone, they are gone! Never to be recovered. Never to be recycled and reused.
You cannot manage time, but you can manage your activities, what you do in the time you have. To successfully manage your activities, you only need to know two things: What to do first and what to do next.
To identify what to do, create a two-sided daily or weekly to do list. Label one side “Must Do” and the other side “Should Do.” On the must-do side, list all the things that are imperative. Tasks that must be completed. Things that are directly tied to your goals and responsibilities. On the should-do side, list all the tasks that should be done because they are important. Review each list and prioritize the items. Next, plan carefully and assign each task and the amount of time for completion.
Start with the must-do list. Begin with the highest priority item and do it now (today), without exception. When the time for that activity is up, stop, and move on to the next activity. If you continue to work beyond the predetermined time limit, you are stealing valuable time from the next task. If that project suffers because of insufficient time, you’ll soon be in debt to countless hours of time that will never come. When you complete the must do items, you can move on to the should-do items.
As time goes on, some of the things on the past should do list will transfer to the must do list, but you will evaluate them and make that decision, rather than leaving it to chance or the pressure of unorganized time. Ralph Waldo Emerson wrote, “Finish each day and be done with it…. Tomorrow is a new day.”
Get out of the slow lane
Like most sales professionals, you are probably concerned about how the economy will affect your business. You’re wondering how you’ll survive. Your survival instincts may be telling you to look for ways to conserve; to hang on to what you have and weather the storm. It may seem like the correct thing to do. But it’s not. When the economy is slowing down, you need to speed it up!
If the economic pie is getting smaller, you need to get a bigger piece just to maintain your current position. And, that won’t happen unless you pick up the pace, and do more. You need to be more visible, more credible, and more valuable to your clients and prospective clients. What can you do? Here are some suggestions:
Pick up the phone: With a slowing economy, it’s no time to be shy. Make prospecting calls. Beef up your prospecting plan. Contact former clients who have dropped off the radar. People out there need your products and services. Find them before your competitors do.
Be of service: Forget about making “sales calls” to existing clients. Instead, schedule “strategy sessions” to help them explore opportunities to grow their businesses. Being “of service” will not only cement the relationship, but it will also make your client more comfortable and more likely to introduce you to others who would appreciate the same level of service.
Network: Show up at social and business functions ready to talk about your business and how you are helping your clients grow despite the current economic conditions. Adjust your “30-second commercial” to reflect the current economic condition.
Get the message out: Speak at chambers of commerce, professional associations, and service organizations. Talks and presentations have proven to be effective low-cost or no-cost marketing tools. They increase your visibility and credibility.
Have you figured it out yet? What you need to do in a “bad” economy are the very same things you need to do in a “good” economy. But, you need to do them more skillfully and more frequently. Don’t let a slow economy slow you down.
Silence is golden — And it can ruin your business
Here today — gone tomorrow
Have you ever had customers drift away in silence? They did less and less business with you and then, without warning, they stopped doing business altogether. They didn’t complain. They didn’t raise a fuss. They didn’t make demands. They didn’t do anything — they just stopped buying from you.
Customers have a tipping point
There are customers who, experiencing a problem, become very vocal very quickly. They do make a fuss and they do make demands. And, they let you know exactly what it will take to retain their business. Be grateful for them. At least you know there is a problem and you have an opportunity to fix it.
But, there are other customers who become unhappy, bit by bit and over a long time. They appear to put up with problems or inconveniences until suddenly they are no longer buying from you. If they do say anything, it’s at the very last moment and then, if it’s at all possible to hold on to any part of the business, it will take a mammoth effort.
It’s a fact of life
Most companies lose customers over time. And so will you. Accept it. But, you do have some control over how many customers leave and how quickly.
Don’t wait for customers to complain.
Get your customers to complain
Part of your job is to find ways to uncover complaints before your customers reach their tipping point. Conduct quarterly performance reviews with your customers, asking them about your performance. Provide customer-satisfaction surveys. Make sure your customers know whom to contact at your company if they have a problem. When you provide your customers with channels through which to voice their concerns and complaints, you obtain valuable feedback for fixing existing problems and heading off future issues. And, your customers are much less likely to drift away in silence.
Trust is built on three elements: credibility, accessibility, and reliability.
Trust is obviously an essential element for obtaining a client and keeping that customer. When you ignore trust, you will lose a client.
So, what is “trust” and how do you develop it with prospects and preserve it when they become clients?
Credibility, whether we are talking about prospects or clients, refers to conveying a message that is relevant and demonstrates your understanding of the recipient’s situation. Today’s technology — websites, blogs, email, white papers, social media, webcasts, webinars, and online meetings — has made it easier than ever to get your message in front of a targeted audience. Wasting their time with information that doesn’t help them solve problems or further goals will do little to build trust and can erode the trust that has been established.
You must get your credible message in front of prospects, provide information for prospects when requested, and answer questions or resolve problems for clients as they occur. If they cannot “trust” that you’ll be there when they need you, then they won’t trust you. And, they won’t become clients or stay clients of your business.
Reliability, the third element of trust, is an essential ingredient for any relationship. If you make a commitment to a prospect or client, you must keep it. No excuses. Prospects and clients won’t trust you until they can rely on you to follow up and follow through as promised.
Whether we are talking about prospects and clients, or friends, family and colleagues, trust is an essential ingredient. When present, it can cement a relationship and when absent, cause it to crumble.
Sandler Training is a global training organization of more than 500 Sandler trainers located in major cities throughout the United States and more than 29 countries. Sandler Training Syracuse, led by Rick Olszewski, is located at 241 W. Fayette St. Contact him at (315) 451-8797 or email: rick.o@sandler.com
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