Small Biz Watch: Best practices of manufacturers
By James Pethokoukis
Posted 3/3/06
The National Association of Manufacturers recently put out a study of small and midsize companies. It's full of eye-opening stats and useful advice. For instance, the report outlines some of the leading best practices of top manufacturers. Among them:
- Stay in touch with customers, talk with them about their needs, and look to them for new product ideas.
- Look for a long-term relationship with a banker who is willing to take the time and effort to understand your company.
- Invest at least 3 percent of your payroll in employee training; get involved with workforce investment boards, government-sponsored training programs, and local educational institutions such as community colleges that offer training in manufacturing skills.
- Appoint a majority of outsiders with relevant and diversified business experience to your board of directors or board of advisers; look to those outside directors or advisers for opinions and advice; welcome their challenge.
- Develop a plan for management succession. Start estate planning early, and keep abreast of estate tax laws and regulations.
- Constantly look for opportunities to delegate, to empower your employees at all levels, and to create the corporate culture for a high-performance workplace.