STRATEGIC TREND TO FOLLOW...THE THREAT TO FREE SPEECH!

POST UPDATE!!! More clear, troubling evidence, of the threats to free speech in the USA.........

On September 10, 2025, Charlie Kirk, American conservative icon, was fatally shot while addressing an audience on the campus of Utah Valley University (UVU) in Orem, Utah, United States. The alleged shooter, Tyler Robinson--reportedly in a homosexual relationship with another man who believed he was transitioning to be a woman-- reportedly disagreed strongly with Charlie Kirk's conservative views! 

Widespread despicable glee and happiness followed Kirk's assassination. Far-Left, Muslim Congresswoman Ilhan Omarr spewed her typical venomous hatred and was joined by neo-Marxist teachers and professors, as well as radical homosexuals and transgenders like former CNN personality, Don Lemon, and other extreme Leftist purveyors of hate and malice!

PRIOR TO THAT SAD EVENT:

 Jonathan Turley, distinguished Law professor and constitutional attorney, has authored a book, "Indispensable Right, Free Speech In An Age of Rage" that looks to be an intriguing, thought-provoking, and timely read! 

The Wall Street Journal says this about his book:

"Mr. Turley has written a learned and bracing book, rigorously detailed and unfailingly evenhanded.  For all his grim recounting of the assaults on free speech, his is ultimately a buoyant book."

Threats to free speech in Europe and elsewhere are growing, with some current examples:

Again, Turley in another recent X tweet, commented on threats against comedians:

"In the anti-free speech community, the most intolerable form of speech seems to be humor. Comedians have been charged in countries ranging from France to Germany to Brazil to Turkey to Canada for insulting jokes..."

In the United Kingdom, the recent arrest of TV writer Graham Linehan--not even a British citizen per Grok AI--after arriving at Heathrow airport in London, by five armed officers, from Phoenix, AZ, over transgender issues in female-only spaces, is another well-publicized example. (Source: nbcnews.com)

Also, recently in Germany, the conservative AfD (Alternative for Deutschland) Party, which has been monitored by the German government, has had seven candidates die within weeks (Source: Washington Examiner) in a lead-up to local elections. AfD co-leader Alice Wendel prompted reasonable speculation and hinted at foul play when she reposted economist Stefan HOmburg's comment that the number of candidate deaths was "statistically impossible," the BBC reported. (Source: New York Post). To be a bit more provocative and practicing free speech, this sounds like how Hitler dealt with Communists and opposition leaders in 1930s Germany, including the infamous Reichstag fire. Hmmm...who is the true threat to democracy in Germany today?

Meanwhile, back here in the USA, Health & Human Services Secretary, Robert F. Kennedy, Jr., testified this week before a Senate Committee and was blasted by Democrats and even a few Republicans...Again, Jonathan Turley tweeted on X:

"Watching the Senate Finance Committee hearing with Secretary Kennedy borders on the bizarre. Senators are pummeling Kennedy with questions and not allowing him to give answers. There was a time when hearings had the quaint purpose of actually eliciting answers and information..."

Finally, in the wake of the mass shooting in Minneapolis carried out by a transgender person on August 27. 2025, who was born a male and named Robert Westman, it has been revealed that he had a tumultuous personal life (according to a Fox News article dated 9/3/25), significant mental health issues, and a malevolent mindset fixated on the notion of harming children. He also harbored animosity towards Christians, Jews, and President Trump, which may have been intensified by his delusional decision to identify as a woman. The dominant narrative from the mainstream media and Democratic Party leaders appears to focus on attacking gun rights (a constitutional privilege) rather than addressing the malevolent actions of the shooter and/or considering the prohibition of transgender grooming and pressure campaigns against parents in public schools. Westman's mother signed off on the name change to "Robin", with court documents indicating Westman "identifies as female and wishes her (actually his) name to reflect that identity." The whole transgender issue effectively requires society to join in with the lie that someone can "identify" as one sex while they were created by God as another, the ultimate attack on free speech.

These are just a few examples the past few weeks or so that illustrate the threats to free speech around the world are increasing! The source of the threats are groups that are at odds with the truth, like transgenders, homosexuals, Muslims, illegal immigrants, Leftist politicians, and their supporters, who label the truth dishonestly as hate since the truth exposes their evil! 

  

BENEFITS OF STRATEGIC MANAGEMENT

Strategic management offers financial and non-financial benefits. It helps an organization's leadership plan with greater intelligence and wisdom.

The ancient Hebrew king Solomon, famous for his God-given wisdom, noted in Proverbs 24:3-4, "Through wisdom a house is built, and by understanding it is established; and by knowledge the rooms are filled with all precious and pleasant riches." This verse illustrates, to me, that, at its essence, strategy is really wise and intelligent planning!

SWOT ANALYSIS... One of the classic tools illustrating the wisdom of strategic management is the SWOT Analysis, which considers internal organizational strengths and weaknesses in light of the environment's threats and opportunities to develop strategies for success.

The SWOT Analysis helps management discern and choose the most advantageous strategic choices customized for a company's situation.  It may seem a straightforward exercise to some but a SWOT Analysis requires candor, bold integrity, knowledge and awareness, discernment, and proven business experience and savvy to identify key internal and external factors, as well as prioritize them effectively. Call on O'Hara Business Strategies (and check out our website at oharabiz.com for more information).

OTHER BENEFITS... Strategic plan also offers some or all of the following financial and non-financial benefits:

• Clear direction. Strategic management sets a direction for an organization and clarifies its mission, helping to reach goals and prioritize resources wisely!
• Operational improvement and cost savings. Efficiency and effectiveness often result from the focus and optimized use of resources realized from wise planning.
• Increased profits. Various researchers have shown this link which comes from the competitive advantage and differentiation often achieved from strategic management.
• Improved, faster and more effective decision making.
• More motivated and inspired employees.

STRATEGY THROUGH HISTORY...

    In the complex world of the 21st Century, strategy in business is crucial but it has been happening throughout history.

   In 216 B.C., Hannibal led the Carthaginians across the Alps, to victory in battle against a numerically superior Roman army by using the natural forces of the terrain to defeat the Romans, who were packed so densely that they could not use their weapons effectively and having their retreat cut off, were slaughtered.

   And, in another ancient example of strategy, the God-given strength of Samson, further empowered by the "...the Spirit of the Lord came mightily upon him..." and Samson "...killed a thousand men with it", with the jawbone of a donkey he killed a thousand Philistines who were the threat to Israel in that day. 

CONCLUSION... Unlike once-and-done strategic plans, effective strategic management requires continuous planning, monitoring and testing of an organization's processes and resource utilization. The bottom line is, strategic management allows an organization to be pro-active, initiating and influencing rather than reacting and responding to its environment.

SOURCES:

1) "Concepts of Strategic Management", 2nd Edition, pgs. 27, 58-61, and pg.85, by Fred R. David.

2) "Strategic Management, A Competitive Advantage Approach, Concepts & Cases", 16th Edition, pgs. 8, 16-17 and pg. 25, by Fred R. David and Forest R. David.

3) Judges 15:14-17 and Proverbs 24:3-4 from the New King James Bible.

4) Photos used from Pinterest according to the Fair Use Rules of the U.S. Copyright Law in this article and throughout this blog.

WHAT IS CAUSING YOUR BEST TALENT TO QUIT YOUR COMPANY?

In today's competitive business landscape, retaining talent is more crucial than ever. Yet, many companies find themselves grappling with high employee turnover rates, perhaps considering it to be a normal condition. The reasons behind these departures are often complex, but one key factor stands out: management problems! Understanding why employees leave can help executives create a more supportive and engaging work environment.

Imagine Sarah, a talented marketing executive who once thrived in her role. Initially, she felt energized by her work, but over time, the excitement faded. Her manager, overwhelmed with their own responsibilities, frequently overlooked Sarah's contributions. This lack of recognition left her feeling undervalued, ultimately leading her to seek opportunities elsewhere. Sarah's story is not unique; it's a common narrative that echoes in workplaces across various industries.

LACK OF SUPPORT...  One of the most significant reasons employees quit is the absence of support from their managers. Employees need guidance, feedback, and resources to succeed. When managers fail to provide this support, it can lead to frustration and disengagement. Consider John, a software developer who struggled with a challenging project. Instead of receiving the mentorship he needed, he was met with indifference. Feeling isolated and overwhelmed, John decided to leave for a company that prioritized employee development.

UNREALISTIC EXPECTATIONS...  Executives and managers may rationalize that employees were given training during the on-boarding process or that staff should research the answers on their own! However, training is often not complete- not addressing the very real "minefields" that are a part of many positions that are not addressed in formal training programs! Also, unrealistic time pressures on employees may mean research on many issues at one time is not realistic, especially when many issues require judgment calls that are not readily researchable. Consider the corporation that make customer service and empathy to be key Core Values within the company but recognizes there may be times that employees need to be able to disengage from a difficult, abusive, or threatening customer...the question then becomes, "Where do you draw the line?" and will an employee be second-guessed, browbeaten, or disciplined if he doesn't read his manager's mind correctly?

POOR COMMUNICATION... Communication is the lifeblood of any organization. When communication falters, misunderstandings can arise, leading to a toxic work environment. Employees crave transparency and clarity from their leaders. Take the case of Emily, a sales representative who felt blindsided by sudden changes in company policy. Without adequate communication, she felt insecure about her role and ultimately chose to resign.

INADEQUATE RECOGNITION... Recognition is vital for employee morale. When achievements go unnoticed, employees may feel that their hard work is in vain. For instance, consider Mark, a dedicated team member who consistently exceeded his targets. Despite his efforts, his manager rarely acknowledged his contributions. Over time, Mark's motivation waned, and he left for a role where his successes would be celebrated.

FOSTERING A SUPPORTIVE ENVIRONMENT... As company executives, it’s essential to recognize the impact of management style on employee retention. Creating a culture of support, open communication, and recognition can significantly reduce turnover rates. Implementing regular check-ins, providing professional development opportunities, and celebrating team successes can foster a more engaged workforce.

CALL TO ACTION
If you’re a company executive, take a moment to reflect on your management practices. Are you providing the support your employees need? Do you have unrealistic expectations. Are you communicating effectively? Are you recognizing their hard work? It’s time to reassess and take action. By addressing these management problems, you can create a thriving workplace where employees feel valued and motivated to stay.

Let’s build a better workplace together. Contact O'Hara Business Strategies (and check out our website at oharabiz.com ) to learn more about effective management strategies and how to retain your best talent today! 

DDOa  

LLC or S Corporation? Which is best for your business?

Perhaps, the two most popular for legal entities for small businesses today are the Limited Liability Company (LLC) and the S Corporation. They offer liability protection and an increased image of professionalism over a sole proprietorship without the double taxation and extra burdens of a C Corporation. 

The LLC offers liability protection, as well as simplicity, along with professionalism. The S Corporation is simpler than a C Corporation!

The LLC is generally less costly to maintain and doesn't necessarily require outside monthly payroll, tax preparation, and other professional fees that are often lower than for a S Corporation.

However, the S Corporation really shines in one key respect...........it can save substantially on self-employment taxes compared to an LLC. How does this happen?

     Example: Acme Dog Biscuit Company's owner, Stan, takes $100,000 out of his business. He takes a $40,000 salary and the remaining $60,000 as the profit from the business.

       In a proprietorship or a typical, single-member LLC the whole $100,000 would be subject to 15.3% self-employment tax. In the S Corp, Stan would pay Social Security as wages and the S Corporation would pay the other half. However, as long as Stan is paid a reasonable salary ($40,000 in this case), the remaining $60,000 would "pass-through" to Stan as being taxed as ordinary income only, not subject to self-employment tax. 

       Effectively, the savings in self-employment taxes would be over $9000 for an S Corp. This needs to be balanced against possibly higher accounting, legal and tax prep fees for the S Corp over the LLC.

It needs to be emphasized, in the example, that Stan must be paid a reasonable salary since this can be a commonly audited area by the IRS if the S Corporation pays less than a reasonable amount. 

However, it is possible to re-characterize an LLC as a tax entity, taxed as an S Corporation, with some planning and petitioning the IRS to change entities and filing a Form 2553 to elect S Corporation status. It can all come to timing, which the LLC offers! It offers the flexibility to remain taxed as a sole proprietorship or partnership as long as the member's income is relatively low.

There are some capital-raising and other considerations to be considered, as well. The S Corp can work well for a company that may expect to benefit from decreased self-employment taxes in the first years of its operation!

One final caveat is that, if a business does distribute most of its income, as salaries to the owner and has little net income from the business itself, the benefits of reduced self-employment taxes is minimal. Therefore, all other issues remaining equal, the LLC can be a more attractive entity choice.

For small businesses that have a significant portion of their income as net income from the business and less from salaries paid to the owner, the S Corporation can offer significant savings in self-employment taxes! 

DELEGATION 101

Delegation is a key skill for managers and entrepreneurs. Leveraging competent staff, a business can both flourish and allow leaders to focus on leading, building and growing!

One of my favorite illustrations of effective delegation is found in the classic book, "The 7 Habits of Highly Effective People" authored by the late Stephen R. Covey. 

Covey had excellent insights on the topic in "7 Habits". His premise was that leaders, or producers, delegated in one of two ways:

"Gofer Delegation" which means "Go for this, go for that...tell me when it's done." An example: a construction contractor I once knew, quipped, "I just want someone who can hand me tools", when he referred to his staff needs! In the extreme sense, it is a slave. Covey calls it the producer mentality; "...roll up your sleeves and get the job done". The focus is on methods, not results. Very little, if any, investment is required or desired in developing/training people. Ironically, the results are limited because you can't supervise very many people with this approach, so growth is limited. Unless you have an overseer motivate with a whip (not legal, the last time I checked). 
    Unfortunately, leaders who major in, what Covey called, "gofer delegation", seem to share a number of these common traits:

• a disdainful, superior attitude to their employees, 
• high, even unrealistic, expectations that often result in an employee's failure, which justifies their need to do the job themselves, 
• a "production focus" results since such leaders are technicians (carpenters, plumbers, accountants, farmers, etc.) and such folks often find great enjoyment out of doing their work well instead of developing others to do the same,
• employees are often viewed as a hassle--often due to a lack of training and effective delegation-- than as a resource to develop and leverage, benefiting all concerned, and 
• they possess a strong need to control results and avoid hassles, which is ultimately counter-productive, since people can feel used & trust is often destroyed, systems aren't put in place, the business flounders and this micro-managing approach actually further frustrates the leader. 

"Stewardship delegation" which is focused on results, not methods.  It gives subordinates the choice of method but also makes them responsible for results. It takes an investment of time up-front but the return can be enhanced, both in quantity and quality. Covey notes up-front commitment and understanding are required in five areas:

• Desired results - Covey used the example of "green and clean" when he delegated his yard's care to his young son. Clear, mutual understanding is needed!
• Identify parameters, guidelines and pitfalls. Sometimes, a certain method must be honored for safety, regulatory or perhaps liability reasons. Point out the potential minefields in a task!
• Identify resources that can be used, whether financial, technical, human or organizational. An example: time draining technical glitches on a software program might require reaching out to a computer technician inside or outside the company.
• Accountability - Set up standards of performance and the times when evaluation will take place. Obvious examples are the scheduled performance review many employers do or a report card for students..  
• Rewards & consequences - Specify what will happen...good and bad, in terms of financial rewards, psychic rewards, natural or actual consequences. If someone isn't measuring up, coaching can be an excellent way to salvage the investment in that person before an abrupt termination!

As noted previously, Stephen Covey illustrated "stewardship delegation" effectively with an experience involving his young son. His seven-year-old son, Stephen had volunteered to take care of the family's yard during a family meeting designed to spread out the family's workload. Covey explained how sound delegation practices can work with the youngest person or the most mundane, low-skill job. Specifying that he wanted a yard that was "clean and green", and with patient training and a few rough patches, Covey noted that his son, Stephen, "...kept it greener and cleaner than it have ever been " under his own stewardship. 

Covey's bottom line...was that effective delegation is perhaps the best indication of effective management but it takes a commitment to manage, not just produce.



Sources:

*"The 7 Habits of Highly Effective People" authored by the late Stephen R. Covey, pg. 172-179. 

*Photo from Pinterest used in this article and throughout this blog in accordance with the Fair Use Rules of the U.S. Copyright Law.

*Originally posted in June 2016, revised in 2025.

THE BENEFITS OF SYSTEMS, 

"THE E-MYTH WAY" WAY!

Michael E. Gerber, in his classic business book, "The E-Myth" illustrated how Ray Kroc, founder of McDonald's, pioneered the "systems approach" to running a business. Gerber termed it the "Franchise Prototype", which he viewed as the answer to how and why a business owner can "work on a business, not in it." 

Gerber offered six key benefits of using the "systems approach" model to operating a business:

• The "Franchise Prototype", as Gerber termed it, provided "consistent value" to business stakeholders, going "beyond what they expected." A big part of that value is the consistency. For example, a Big Mac at McDonald's can be trusted to look and taste the same at McDonald's restaurants all over the world. The same can be said for the chicken served with Colonel Sander's famous Original Recipe at KFCs globally. 
• The systems approach makes work a streamlined process, which allows the business model to be "operated by people with the lowest possible level of skill." The bottom line: your business won't be held hostage to your best people. Your systems and documentation will be the anecdote to maintaining high quality. As a caveat: it is possible that a manager can sabotage an installed system, if their "tweaks" confuse people or if time pressure renders the system to the dust bin.
• This business model will be a place of "impeccable order." This order adds value by creating trust and peace of mind with customers. It also allows employees to do their job, instead of worrying about which supervisor or manager's method they need to be using, or who to please.
• In the Franchise Prototype model pioneered by Ray Kroc, "all work is documented in a clear Operations Manual."  Gerber notes the operative word is, "clear". Again, in reality, change happens. The system needs to be updated/ revised to address those changes or a business can once again be moved by the "whims" of key staff or managers.  
• Uniformly predictable service will be provided to customers. This is the benefit, as noted previously, that McDonald's provides and other franchise businesses provide that enjoy more sales than many "mom and pop" stores, without such a predictable reputation!
• The systems business model will utilize a uniform color, dress and facilities code. This goes along with predictability and providing a consistent experience for customers. 

Source of Mr. Gerber's quotes and insights are from "The E-Myth Revisited" by Michael E. Gerber, pg. 98-99. Used under the Fair Use Rules of the U.S. Copyright Law.

Originally posted in 2016, updated in 2025.

THE DIFFERENCE BETWEEN A CFO AND A CONTROLLER

If you’re comparing the role of a controller to the role of a CFO, you are not alone. The differences lie in the fact that a controller’s responsibilities are mainly technical and tied to historical data, while a CFO’s responsibilities are mainly functional and related to the company’s future endeavors. A controller’s job is more accounting-related, and he or she deals with overseeing processes while the CFO is the CEO’s right-hand man and makes forecasts and strategic decisions based on data and reports supplied by the finance and accounting functions.

Responsibilities of a Controller

     A controller is in charge of the accounting department and/or outsourced accounting activities depending on the company’s setup. If you have an in-house accounting department, the controller is in charge of hiring and managing the accounting team.

     The controller ensures day-to-day accounting processes are running well such as:

·       cash flow maintenance,

·       payroll,

·       collections,

·       accounts payable & receivable,

·       monthly and yearly closings.

The controller will also:

·       provide data for the budgeting process,

·       implement policies to ensure solvency,

·       works to improve reporting and efficiency,

·       help ensure legal compliance when it comes to the company’s financial activities,

·       compiles and reviews historical data and reports the company's historical performance,

·       will work to improve processes and efficiency where necessary to help meet the company’s financial goals, and

·       he or she then passes on this data to the CFO who uses the data to build financial models that provide visibility into how the company is projected to perform in the future. 

Additional responsibilities of a controller can include:

·       management of information technologies,

·       insurance,

·       sales tax reporting,

·       federal income tax reporting,

·       outside CPA audits, and

·       human resources.

Controllers are in essence responsible for the financial and regulatory compliance of a company.  Think of the controller as the "historian" for your company.

Responsibilities of a CFO
A CFO’s responsibilities primarily involve risk management and strategy, as well as being ultimately responsible for the financials of the company. The CFO:

·       collects and analyzes reports from the controller and answers to the CEO,

·       should have the insight to present new opportunities based on financial data and industry trends to the CEO, executives, and the board,

·       also captures new ideas and strategies from the CEO or other senior managers and builds financial models to advise on the best course of action,

·       develops, improves, and utilizes forecasting tools to provide the CEO and senior staff with the best possible financial insight for corporate initiatives,

·       ensures that important business decisions are taken under financially sound principles,

·       maintains relationships with investors and banks and prepares documents needed to obtain capital from investors.

Other CFO responsibilities include:

·       searching for insurance policies and employee benefits and interacting with vendors to ensure the company is getting the best possible deals and

·       using his or her financial expertise primarily for looking forward strategically to identify risks and opportunities for the company. A CFO should have knowledge of the company’s industry and understand how the company works from a holistic perspective.

     

The BEST Solution for Your Business

In some smaller companies, the role of a CFO and a controller may be undertaken by one person. As a business grows, the need for two high-level finance executives becomes more apparent and necessary to maintain business growth and support the operations of a larger firm.  

However, if your company can't afford a controller and definitely not a CFO, O'Hara Business Strategies can function as a Contract Controller or CFO to provide cost-effective, savvy financial expertise and a strategic approach. 

Or, perhaps you need a temporary controller / CFO while hiring a new one or you're looking for some objective consulting advice about the best option for your company, call O'Hara Business Strategies!  

WHAT EMPLOYEES REALLY WANT!

This post is partially an excerpt from a whitepaper by payscale.com entitled, "Turnover: The Good, The Bad and The Ugly."

         What makes an employee get up in the morning looking forward to the work day
         ahead?

GOOD PAY

How strongly pay contributes to employee satisfaction has been debated time and again in the literature probably because money means so many different things to different people. 

However, two truths are constant:
1) employees need money to live, and 
2) money is used as a measure of value by employers and employees.

So no matter where ranked on the latest employee survey, pay matters. Because every time an employee has to make good on a bill or consider whether he can afford a product or service, he thinks about this pay and the value his employer places on his work.



FLEXIBILITY

SHRM surveyed HR professionals about “Challenges Facing HR Over the Next 10 

Years," 59 percent responded that retaining and rewarding the best employees was their 

main concern. And when asked how they thought this goal could be achieved, 40 percent answered “providing flexible work arrangements.”


A recent article in Time magazine referenced a survey by the American Psychological Association reporting that the top reasons Americans give for not leaving their current jobs are “I enjoy the work I do” and it “fits well with the other areas of my life.” And PayScale’s Generations at Work survey found that telecommuting was the top benefit desired by Generation X (those born between 1960 and 1980).Most all employees are looking for better work/life balance and are willing to display loyalty to those employers who provide it.

RESPECT

Employees want to know what they think matters. They want to be treated as valuable members of the team with something meaningful to contribute. At the very least, employees have no desire to be shouted at, demeaned, or humiliated at work by an abusive manager or coworker. 

Employers who give more than lip service to the notion of workplace respect are way ahead of the curve ball and will experience more worker loyalty as a result.

INTERESTING WORK

Most people would prefer to be intellectually challenged at work than not. When it’s considered that a full-time employee will likely spend more waking hours at work than at home, it’s not hard to understand why she would rather her work doesn’t feel like a waste of time and talent. Pay matters, yes. But even the best pay can’t compensate for boring, mind-numbing work that provides no enjoyment and little mental stimulation.

AUTONOMY

Finally, jobs that offer greater freedom and choice in execution (i.e., empowerment) are associated with higher satisfaction levels. Micro-managing employees can be counter-productive, leading to excessive dependence on supervisors or turnover due to this oppressive management style.  Allowing employees the freedom to do a job the way they prefer, while achieving the desired results, allows them to grow in their job, problem solve, learn faster, and add value to their employer by focusing on results, not petty methods.
 

PREVENTING FRAUD AT YOUR COMPANY!

Small businesses typically have a greater problem with fraud and lost assets than larger corporations!

One of the key reasons is a lack of segregation of duties among employees in many small businesses! According to a July 2010 article in The CPA Journal, smaller companies (less than $75 million market value) were much more likely to have the internal control weakness of lacking segregation of duties in key tasks. The objective of the principle of segregation of duties is to prevent an employee from being in a position to commit and perpetuate errors or irregularities.

For some background on the topic, it is a key basic tenet of internal control that for each transaction cycle, with the cash disbursement cycle being noted as of primary concern, that the following functions should be segregated between different employees:

• Authorization of transactions,
• Custodianship of the asset in question,
• Recording of transactions, and
• Reconciliations of the records.

In reality however, small businesses don't always have the staff or the resources to hire staff to accomplish a true segregation of duties. So, aside from hiring more staff, a few common compensating controls that, at least partially, mitigate the segregation of duties problem are:

• Rotation of duties among existing staff. Variations of this approach include cross-training staff to perform a variety of duties and having a "Mandatory Vacation" policy so an offending employee will be found out at some point.
• Management oversight. Management can review reports of specific transactions, oversee periodic counts of inventory, equipment or other assets like cash and comparing them to accounting records, and/or reviewing reconciliations of account balances or assets or performing them independently. Another technique is to perform surprise checks or exception reports to pro-actively address concerns. An example of exception reports would be to identify financial ratios that may be out of line like gross profit percentages, for example. Implicit in many of these approaches, is that management must have some degree of financial expertise to perform these oversight tasks effectively.
• Third-party involvement. Kind of a corollary to management oversight, is that management could bring in temporary employees, consultants or outside CPAs to offer periodic oversight. 
• A final approach of note is to "beef up" existing procedures like putting them in writing, for example. Another example would be performing a top-down risk-based analysis by identifying threats in the context of the effect on financial integrity and the likelihood of actual violations. 

Segregation of duties is a key principle of internal control! However, adding more staff is not always feasible! Using a compensating control like rotation of duties, management or third-party oversight, "beefing up" existing procedures or performing a risk-based analysis to identify potential internal control threats can provide an effective solution!

USING COMPETITOR RESEARCH AS A STRATEGIC TOOL

Sometimes, strategy is considered to be a highbrow topic for small business. Actually, not so! Businesses that take the time to evaluate their strengths, weaknesses and unique position in the marketplace and then develop a strategy to take advantage of their uniqueness are typically more profitable than competitors.

Competitor research, also called competitive intelligence or competitor mystery shopping, can be a key data gathering tool in the strategic process. Actually, it may be all that is needed externally for many small businesses to develop a satisfactory business strategy!

My capstone college course in college was strategic management, emphasizing that every business is duty-bound to understand not only who its competitors are but also their competitive strengths and weaknesses. Only then can you evaluate your own business’ relative “SWOTs” (strengths, weaknesses, opportunities, threats). Knowing more about your competitors will thus help your business grow and succeed.

Competitor research can hone in one price primarily but it may also address key issues such as customer service, promotional/marketing methods used, warranty policies, location and layout and financing options made available by your competitors.

While traditional market research is a tactical, methods-driven discipline that measures beliefs and perceptions through surveys or focus groups, competitor research uses both primary and secondary research and goes beyond answering existing questions to raising new ones and guiding action.

Contact O'Hara Business Strategies to learn more about how competitor research can be a key, cost-effective tool for developing a winning strategy for your business!