Profit360 - December 2023 by Profit Builder

DEC 2023 | EDITION NO 2

PROFIT360 Success Strategies for Small Business

THE POWER OF AI A GUIDED JOURNEY TO EFFICIENCY, INNOVATION, AND BUSINESS GROWTH

IS YOUR BUSINESS PREPARED TO COMPETE? A CASE STUDY THE LITTLE GUY VS. IBM

Healthcare:

COST STRATEGIES AND COMPLIANCE YOU NEED TO KNOW By Robert Slayton, MSEd

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IN THIS ISSUE Hey there, savvy entrepreneur, How is Q4 coming along? I don't know about you, but this year has been a complete time warp. I just wrapped up the 2024 business planning sessions with my clients, and a common consensus overall was a feeling of "extreme acceleration." It's safe to say 2024 will be another whirlwind year. In this issue, The Power of AI is your guide to efficiency, innovation, business growth, and profitability for 2024. Our contributing author, Robert Slayton, a seasoned expert in healthcare, shares his cost-effective strategies to ensure the best quality plan for your business - it's a must-read. Thank you so much for connecting with PROFIT360. Happy Holidays. Wishing you peace, joy, and continued success.

TABLE OF CONTENTS

01. One Strategy The Power of AI - A guided journey to efficiency, innovation, and business growth. Plus, action steps and KPI details.

02. One Resource A Case Study - The Little Guy vs IBM Company size doesn’t matter when you know how to compete and win!

03.

One Contributing Author This month’s contributing author, Robert Slayton, MSEd offers strategies to reduce healthcare costs and be compliant - what you need to know now!

04.

One Book Review AI For the Next Generation by Open AI CEO, Sam Altman Altman discusses how AI will fuel advances in all major industries and disrupt the global economy.

05.

One Inspiration A moment of Inspiration and motivation.

Hey, I’m calling to tell you about Profit360. you’ve got to read it!

THE POWER OF AI “Artificial Intelligence (AI) has emerged as a transformative force into new realms of efficiency, innovation, and growth.” By Sandra Price In an ever-evolving business landscape, the integration of Artificial Intelligence (AI) has emerged as a transformative force, unlocking many benefits that propel organizations into new realms of efficiency, innovation, and growth. Efficiency One of the most captivating aspects of AI in business is its ability to enhance the decision-making processes. Imagine having a seasoned advisor at your fingertips, capable of processing vast amounts of data at lightning speed to provide actionable insights. Picture a dynamic assistant tirelessly working 24/7, analyzing data, making predictions, and offering it all without breaking a sweat. That's the magic of AI, a resource beyond mere automation, becoming a steadfast ally in the journey toward success. AI algorithms can sift through complex datasets, identifying patterns and trends that might elude even the most astute human minds.

This data accelerates decision-making and ensures that choices are grounded in data-driven intelligence, reducing the margin for error and increasing the likelihood of success. AI boosts overall productivity and empowers employees to focus on tasks that require emotional intelligence, critical thinking, and innovation—areas where humans excel and AI complements. AI changes business dynamics when dealing with the repetitive, timeconsuming tasks that once bogged down teams. It can now be streamlined and automated, freeing human resources for more strategic and creative endeavors. Innovation In any business, adaptability is vital. AI allows organizations to evolve in response to market dynamics. Machine learning algorithms, a subset of AI, continuously learn and adjust to new information, enabling businesses to stay ahead of the curve.

AI's ability to identify inefficiencies and streamline processes can result in substantial savings, making it a wise investment for businesses looking to enhance their bottom line. This adaptability is crucial in business areas where staying relevant means embracing change, such as customer service, technology, operations, and finance. The positive impact of AI extends beyond the confines of individual businesses. The collaborative nature of AI fosters innovation on a broader scale. With shared resources and opensource platforms, businesses can collectively contribute to developing and improving AI technologies. This collaborative ecosystem not only accelerates the pace of innovation but also ensures that even small companies can access cutting-edge AI solutions. Business Growth Businesses can now tap into the goldmine of customer data to understand preferences, behaviors, and expectations on an individual level. AI's contribution to personalized customer experiences is revolutionary. This personalized approach not only fosters stronger customer relationships but also enables businesses to tailor their products and services to meet the specific needs of their target audience, resulting in increased customer engagement, satisfaction, and brand loyalty, paving the way for sustainable growth.

Contrary to the fear that AI will replace human jobs, it has the potential to create new opportunities and redefine job roles. As we embrace the era of AI as a business resource, it's essential to acknowledge the potential for job creation. By automating routine tasks, AI allows employees to focus on highervalue activities that require human ingenuity, emotional intelligence, and creativity. This shift in focus can create new, more fulfilling roles within your organization. Integrating AI as a business resource heralds a new era of possibilities. From super-charging and decision-making processes to customer experiences to driving efficiency and fostering key innovation, AI is not just a tool—it's a strategic ally in pursuing success. As you continue to harness the power of AI in your business, you unlock a future where human potential is magnified, and the synergy between man and machine can propel you into unprecedented realms of achievement and prosperity. Here are five steps to integrate AI into your small business. Identify Specific Uses You can start by identifying areas within your business where AI can make a meaningful impact.

“While AI can automate specific tasks, the need for human oversight and collaboration is still crucial.” Whether it's automating a repetitive task, improving your customer interactions, or optimizing internal processes, clearly understanding your goals will guide the selection of AI applications.

Look for platforms that offer pre-built models and easy customization options, allowing you to tailor AI applications to the specific needs of your business without requiring extensive coding knowledge.

A high-value specific use could involve streamlining inventory management, automating customer support through chatbots, or utilizing predictive analytics for better decision-making.

Invest in Employee Training As you introduce AI into your business, invest in employee training to ensure a smooth transition. While AI can automate specific tasks, human oversight and collaboration are still crucial.

Assess Data Readiness AI thrives on data, so assessing the availability and quality of your existing data is crucial. Ensure your business has a structured and organized dataset relevant to the AI application. If necessary, invest in data-cleaning processes. Remember, the success of any implementation is contingent on the quality and quantity of the data it processes. Explore User-Friendly AI Tools Recognizing that not all businesses have extensive technical expertise, explore user-friendly AI tools and platforms that suit your situation. Many AI solutions are designed with intuitive interfaces, making them accessible to users with varying levels of technical proficiency.

Provide training sessions to familiarize employees with the new AI tools, emphasizing how these technologies can enhance their roles rather than replace them. This proactive approach will foster a positive attitude toward AI adoption and encourage employees to leverage these tools for increased productivity. Start with a Pilot Project Consider starting with a pilot project rather than immediately implementing AI across your entire business. Select a specific department or process to introduce AI gradually, allowing for a controlled testing environment. Monitor the results, gather employee feedback, and assess the impact on efficiency and outcomes to refine and optimize AI applications before scaling up to other areas of your business.

“The power of AI is in your hands. It can be big or small based on the evolving needs of your business and your specific goals.” The goal of AI is not just automation but also the strategic enhancement of your business processes and the fostering of a relationship between AI and human capabilities.

If AI is implemented in customer service through chatbots or personalized recommendations, track customer satisfaction scores, response times, and resolution rates.

Here are critical areas and indicators to ensure that implementing AI in your business becomes a valuable asset.

Employee Productivity & Satisfaction KPIs in this category could include the time employees save in performing routine tasks, the successful integration of AI into daily workflows, and employee feedback regarding the ease of use and effectiveness of AI tools.

Operational Efficiency To measure the impact of AI on operational efficiency, evaluate the time and resources saved through automation. Key performance indicators (KPIs) in this category could include reduced processing time for specific tasks, decreased error rates, and improved workflow efficiency. Data Quality and Utilization Assess the data quality and how effectively AI utilizes it to generate insights. KPIs in this category may involve measuring the accuracy and completeness of data processed by AI algorithms. Additionally, track the utilization of data-driven insights in decision-making processes. Customer Experience Enhancement Gauge the impact of AI on customer experiences by monitoring KPIs related to customer satisfaction, engagement, and loyalty.

A successful AI implementation should contribute to a feeling of empowerment and a positive work environment. Return on Investment (ROI) If AI is implemented to optimize processes, reduce operational costs, or increase sales through personalized recommendations, quantify the financial benefits by assessing KPIs related to cost savings, revenue generation, and overall profitability. The power of AI is in your hands. It can be big or small based on the evolving needs of your business and your specific goals. AI can enhance efficiency, influence innovation, and encourage business growth by facilitating more effective resource data, and fostering customer experiences and employee satisfaction to drive revenue and profitability.

From the Editor

IS YOUR BUSINESS READY FOR HIGH-LEVEL COMPETITION? A case study - The Little Guy vs. IBM The Challenge A client (a small software company) was attempting to sell to a significant international prospect covered by a team of 40 IBM sales reps. The client CEO knew they had better products and could turn the transaction into a lucrative long-term account if they could get to the right people and make an initial sale. The Foundation The client had an account manager with the right talent and mindset to conduct an executive conversation. The client did have better products and a robust implementation process, but there was no name recognition, so it would take some hard work to get in, let alone land a deal.

Next, we identified the people and positions at the prospect's organization where we thought our client could have the most impact. The company took the list to their existing clients and asked if they knew anyone on the list or had a connection outside of the list. If yes, they asked to be introduced - introductions are twenty times more potent than a cold call. The Result It took nine months, but the company was able to land its first deal. Their implementation process included a weekly meeting, where all attendees completed an implementation report card.

But they had good testimonials and some impressive accounts already. Getting the business was very doable if they were willing to be patient and work strategically.

Any time a particular target area fell below a certain mark, the teams pulled together to raise the impact within a week. This strategy caused all the stakeholders and the implementation team to work consistently, moving in the same direction.

The Strategy The first thing we did was a little homework to determine where IBM's weaknesses were and how the client's strengths mapped with those of the international prospect.

The project finished ahead of schedule and was the smoothest project in the international company's history. It went so well that the value expectation was exceeded, and the company was given another deal.

“The ability to tap into and understand a prospect’s value proposition will allow you to meet or exceed their expectations and drive long-term sales.“ Long Term Success After getting the same results three consecutive times, the international firm's leadership invited the client to participate in his company's annual planning meeting. To date, they are the only company ever invited to participate in this meeting.

In Summary Most companies focus on transactions and fail to understand that regardless of the company's size, their ability to tap into and understand a prospect's value proposition will allow them to meet or exceed expectations and drive long-term sales.

It took eighteen months to land and implement the first three deals. For the last three years, the international firm's CIO has allowed my client to handpick the deals they want to engage in each year, resulting in multi-million-dollar revenues annually and more business through referrals.

Only some can achieve what this client did.. Because they had leadership with a clear and concise vision, a strong foundation, a superior product, and a well-defined implementation process, they could compete at the highest level and slay the goliath IBM!

DOWNLOAD YOUR FREE COPY of DESTRESS SUCCESS today!

The strategies in this book changed my business, improving revenue sources and increasing profit. Jarod Lambert, Entrepreneur

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“Most people are healthy and will never reach even a $1000 deductible, so chances are only 10%-30 % would even make a claim.” By Robert Slayton, MSEd, CFO Strategist My favorite time of year is healthcare renewal and open enrollment; why is it my favorite time? Indeed, it is not the 18-hour days but rather the ability to assist small business owners and senior leadership teams in managing their healthcare benefits more effectively. In this article, I offer tips for a cost-effective and compliant healthcare plan. But, before we start, realize that a renewal is ready 60 days before your renewal date. If you have an agent who drops in two weeks before, they are not doing their job, and you may want to seek out another resource. Cost Control Strategies Note that some states may have specific regulations preventing smaller companies from implementing some solutions.

The Gap Plan Alternatively, you could purchase a "GAP" plan. This insurance pays the difference between $1000 and $6000. That way, you are off the hook if you have a terrible year. Estimated savings is around 7%. An example would be a company of 50 employees leveraging the above strategy, saving around $42,000. The Health Based Plan Consider moving from a fully insured plan to one based on your group's health. If your group is generally healthy, you'll save 10% and possibly get even more money at the end of the year if your claims are lower than expected.

Raise the deductible from $1000 to $6000. Put the savings in a Health Reimbursement Arrangement (HRA) to pay the difference between the $1000 and $6000 deductible. Most people are healthy and will never reach even a $1000 deductible, so chances are only 10% -30 % would even make claims. @slaytonins.com

An Insurance Alternative If you have 25 or more employees, you can look at a plan that doesn't use the regular insurance companies (but still includes an entire network). In this case, you can design a plan for your employees, usually giving them better benefits, lowering deductibles/outof-pocket costs, and saving at least 10% to 20%. Even if you save a little, giving your employees better benefits makes this an attractive solution. Using the same example, a 50-employeesized company could save around $60,000. Moving to a plan based on your employee's health will help you obtain better data to manage your plan. For example, if you realize you have a high number of people with diabetes, you can implement a program that pays for medications 100% and coaching to help people better manage the disease. This results in lower claims year over year and savings to you, the employer. Compliance Nobody talks about the number of items an employer needs to do to comply with state and federal regulations. Here are some of the dates you need to be aware of. This is not an exhaustive list and is only for health insurance-related purposes.

Note that the dates change each year slightly based on whether they fall on a weekend or holiday. February 28 (paper) April 1 (electronic) – The deadline for employers to file form 1094-B or C with the IRS. March 1 – The deadline to provide CMS with a disclosure on whether your plan's drug coverage is credible or noncredible. March 2 - is to provide 1095 forms to employees. July 31 – deadline to file Form 5500 for benefits if you have more than 100 employees on some form of insurance (this is not the same 5500 form used for 401k plans). July 31 – Patient-Centered Outcomes Research Institute (PCORI) fees are due. October 14 – Medicare Part D Notice of Creditable Coverage due to Medicareeligible participants/dependents. This is an annual requirement. Annually – Provide notice to employees on the Women's Health and Cancer Rights Act and CHIP Premium Assistance notices (for those residing in states offering premium assistance). There may be other notices required by your state which should be included. If you'd like more information about reducing your cost of benefits while keeping and improving the quality for employees, send a request for Robert's book, "The Healthcare Manifesto," which goes into much more detail on this topic to www.slaytonins.com You can schedule a 30-minute, free, noobligation consultation with Robert at https://go.slaytonins.com/calendar

Would you like to be a featured author? Contact Sandra Price info@profitbuilder.us

BOOK REVIEW “Humanity balances on the precipice of a global AI revolution, but some fear rather than embrace it.” This month’s review is AI For the Next Generation – Open AI CEO, Sam Altman. As artificial intelligence evolves, its ability to work alongside humans in solving complex problems in fields such as medicine, finance, and governance becomes increasingly critical. Examples include OpenAI’s GPT-3 language generator, image creation platform DALL-E, and code generator Copilot. OpenAI CEO Sam Altman predicts AI will fuel an explosion of advances in all major industries within a few years and disrupt the global economy. Altman joined Greylock partner Reid Hoffman during the recent Intelligent Future Summit. In this book, Altman’s answers were prompted by questions from Hoffman and the audience.

Key Take aways: Multiple players can create distinct businesses based on APIs created by large models. People starting an AI business should consider specialized training on existing models. APIs will accelerate scientific research. The evolution of AI is rapid and widespread throughout human endeavors. Technologies like GPT-3 will impact medical and life science research. Users will directly interact with foundation models within five years, viewing AI as coworkers. Societal and creative issues will be addressed as AI influence expands.

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