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Wednesday
Oct072015

WORKPLACE SAFETY AND HEALTH POLICY

This article, by Dennis Kissman, was published in Marina Dock Age - September/October 2014

Safety is an issue in which we all must address.  Not because it’s the law, but since it’s the right thing to do.  Employees are a marina's most valuable asset.  Their health and well-being should be the company’s number one priority. Safety has an influence on the financial strength and the operations of the marina. Think through the consequences if an employee suffers from a workplace injury:  the employee has suffered; the company may lose a valued employee for a period of time; who will replace the employee during their absence?; Workers’ Compensation and/or insurance premiums may increase; depending upon the injury, government regulators may visit the workplace; litigious lawsuits could be brought forth.  Protect your employees and your marina by setting forth a plan in which you can minimize safety issues from occurring.

Assessing Your Marina

To begin with, you need to have a thorough internal or external written assessment completed of your marina.  This assessment should look at and identify all safety and health hazards related to physical assets (utilities, docks, tools, cleaning supplies, etc.) and operational tasks (cleaning the restrooms, replacing a dock board, edging the lawn, etc.) within the marina, in which employees may use or be exposed to.  Additionally, this assessment can be used as a baseline to move forward eliminating hazards or to identify new issues as the marina experiences changes or processes. Use the assessment when creating, maintaining and auditing the marinas workplace safety and health program.  Items and tasks which need to be identified for further evaluation on safety and health issues can be addressed.

A Written Workplace Safety and Health Policy

It begins with management leadership and employee involvement.  A workplace policy is created and communicated to the employees. Detail job descriptions that include safety and health responsibilities. State the marinas current year’s goals and objectives. Evaluate safety and health responsibilities. Inform visiting contractors and customers as needed.

With adequate training, guidance and a nurtured company safety philosophy, an employee will view work related tasks with an eye towards safety.  For example; when cleaning a restroom, they can be made aware that accidently mixing two (2) different products together which can create a harmful vapor.  An employee’s shoes can prevent them from slipping on wet floors or protect them from splinters on the docks or understand that an electrical cord with a ground fault circuit interrupter (GFCI) can protect them from an electrical hazard when working around wet locations. Goggles can protect their eyes from flying debris while edging the lawn. Teach employee’s the hazards of working around water and the importance of wearing a life jacket if they accidently fall in the water.

Training is a high priority to ensure a safe and healthy workplace.  Setting aside time and having knowledgeable employee(s) to do effective training is important.  Following a set training program, a new employee is indoctrinated immediately into the program on their first day of work.  The program progresses as the employee’s duties change, the work environment evolves or the safety and health policy is updated.  Maintain records for the employees on the training they have received. These records should become part of the safety and/or the employees file.

Safety rules and regulations have to be enforced.  A proactive approach is always desired.  If needed, a disciplinary program needs to be in place and followed.  A report on an incident, near miss or accident must be created and investigated.  Safety procedures can be created or adjusted by using these reports as a learning tool.

 Resources

The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) is there to help your marina.  Their website www.osha.gov is a helpful online resource that your marina can use. You can locate workplace health and safety requirements that apply to your marina. Your marina can request an OSHA on-site consultation that is free and provides confidential advice in all states across the country.  Refer to OSHA’s on-site consultation fact sheet for additional details (www.osha.gov/OshDoc/data_General_Facts/factsheet-consultations.pdf) on the program. Find out if your state has specific requirements that are OSHA approved and the standards that state mandates. Take advantage of training courses, educational programs and materials offered by OSHA for employers.

As a marina owner/operator, providing employees with a safe and healthy workplace is critical to the wellbeing of your employees and the success of your business.  Take the time now, educate management, invest as needed and create a positive philosophy for a safe employee and a safe marina environment.  Protect your employees, protect your marina, and set forth a plan in which you can help minimize potential safety issues from occurring at your marina.

Friday
Oct022015

THE IMPORTANCE OF ACCURATE FINANCIAL INFORMATION WHEN OPERATING YOUR MARINA

This article, by Dennis Kissman, was published in Marina Dock Age –  May/June 2015

Over the past 27 years I have had the opportunity to work with a number of marina owners and operators reviewing how their business is performing and advising on improving profitability.  Coming from a financial background, one of the first things I ask to review is the marina’s current and historical financial statements.

Good financial record keeping is the best way to identify what is being done right in a business as well as wrong if the business is ailing.  It can also tell you what steps are necessary to correct the deficiency and how to improve profitability.  The process is similar to that of your family doctor: you go to your doctor with a problem; the doctor diagnoses your problem then takes the necessary measures to correct your problem.  Financial information that is kept for your business should enable you to identify a problem exists, understand the complexity and magnitude of the problem and last come up with a solution.  If your financial record keeping and reporting is not doing this then most likely your business is not performing as well as it should.

When I review a client’s financial information there are three thoughts that I always keep in mind:

  1. Every business decision you make will have both a positive and negative effect on your overall business.
  2. Business decisions should be made based on current and comparable historical financial information.
  3. A financial statement is just a collection of numbers that must be interpreted correctly to make the right decision for your business.

Let’s expand on these three thoughts and see how they can impact a business:

  1. Every business decision you make will have both a positive and negative effect on your overall business. However, often times we make our decision based on the positive impact that decision will have on the business while ignoring the negative.  This is not uncommon because a lot of time the negative effect will not be directly related to the positive effect.  For example, you upgrade your fuel dispensing system and expect to increase sales volume by ten percent.  You can accomplish this without adding any labor cost.  The natural tendency is to look at the gross profit you will make on the additional fuel sales.  You look at your expected increase in gross profit and everything is positive to make the investment.  You calculate your return on the additional investment and it is positive.  Now what are some of the negative impacts? How about the added cost of electricity to pump that fuel or the additional marina operator’s liability and/or general liability insurance cost which is based on sales?  There is going to be more wear on your fuel dispensing equipment requiring more frequent repair cost.  The objective is that the change will have a greater positive effect that equates to a greater financial return to the business than the negative effect.
  2. Business decisions should be made based on current and comparable historical financial information.  Often times what I have found when reviewing a client’s financial information there is no consistency of where various income or expense amounts are being recorded.  Expenditures that should be recorded as cost of sales end up in operating expenses.  The problem is compounded when these expenditures flip back and forth.  When this happens it distorts your ability to compare like expenditures over time to get a trend as to what is really happening in the business.  When business decisions are made on outdated information or inconsistent reporting of information it often leads to making the wrong decision because circumstances continually change.
  3. A financial statement is just a collection of numbers that must be interpreted correctly to make the right decision for your business.  This may be the time for going back to Accounting 101.  When talking about financial statements for the business we often are referring to the income statement.  An income statement can paint any picture you want about a business and although it is a tool used to measure how profitable a business is; it should not be the controlling document.  A balance sheet is the controlling financial document of any business.  The balance sheet is divided into three sections.  First we have the assets.  These include things like cash, accounts receivable, inventory, and the property and equipment the company owns.  Next we have liabilities; as the name applies it is everything the business owes to others, such as accounts and notes payable and customer deposits for future services.  Now the third category is called equity.  Equity represents the value of the company and is the difference between the assets you have and the liabilities you owe.  Why the statement is called a balance sheet is because the total of all assets must equal the total of liabilities and equity.

Notice up until now we have not mentioned the income statement.  The reason is because one line in the equity section of the balance sheet will say current year’s retained earnings.  That number is the income that is reported on your income statement and the income statement has all the details of what makes up that number.

Now we have come full circle, this process is commonly referred as double entry bookkeeping.  It is a fantastic tool to help you manage your marina and stay out of financial trouble. Unfortunately many marina owners and operators do not know how or do not want to use this resource to help manage their business’ finances.  If you are in this latter category there is no need to read any further.  Any marina that has a ship’s store, fuel dock or parts department and does not use the double entry booking is heading for disaster.

I want to use the ship’s store as an example.  Let’s say that you receive a large spring order of merchandise to be sold in your ship’s store throughout the entire boating season.  When it arrives you record it as inventory, an asset on the balance sheet.  Throughout the season you sell this merchandise and record the sales as revenue but you do not transfer the sold merchandise from your inventory (an asset account on the balance sheet) to cost of sales (one component of the retained earnings account in the equity section of the balance sheet).  Another way to say it is if you show someone your income statement the profit will be higher by the amount of the cost of inventory that should have been recognized but was not.  On the other hand, when you take a physical inventory you will have less merchandise on your shelves than the cost that is recorded on your books for inventory.

The above explanation is how income and inventory are related and until you can see that relationship as well as all the other relationships with numbers when you review your financial statements you are just looking at numbers and not how your business is performing.

Do not under estimate the benefits of keeping accurate financial records for your business, interpreting what those records are telling you in the form of financial statements and then taking the proper action to guarantee your success.


Wednesday
Sep302015

Marine industry is facing a crisis, but not without hope 

This article, by Dennis Kissman, was published in Marina Dock Age –  April 2012

 

With the summer season fast approaching, I want to take this opportunity to discuss the role marinas play in the overall marine industry, and how we can promote growth in boating to ensure the future success of marinas. It is safe to say that the marine industry is in crisis mode. Information provided by the National Marine Manufacturers Association (NMMA) reveals some startling statistics about our industry that should have all marinas concerned about our future. Specifically, current research from NMMA reveals adiminishing supply of boats and boaters. There’s no doubt this will have a negative impact on marinas because they must react to what boaters demand and boat manufacturers produce.

The Crisis

According to statistical research and analysis from NMMA, the marine industry, including marinas, is facing an uphill battle against an aging population both in terms of the age of boaters and the age of their boats. NMMA noted that the percentage of boaters over 50 years of age is increasing, while the percentage of boaters between 30 to 50 years of age is decreasing. Moreover, the average age of boats in 1997 was 16 years, whereas the current average age of boats is 21 years and typically, their useful life is about 25 years.

My concern with these statistics is that if the industry doesn’t upgrade its boats and attract a younger demographic to boating, there will be far fewer boats and more boaters leaving the boating lifestyle. All sectors of the marine industry, including marinas, need to join together to grow boating. 

A Solution

The decline in the number of boats and boaters is not new. It has been going on since 1997 and accelerated between 2006 and 2010, according to NMMA.

In 2004, the recreational boating industry decided to do something to stem the tide and implemented the Grow Boating Initiative and the Discover Boating Campaign to promote the boating lifestyle.

The Discover Boating campaign is an effort to attract new people to the boating lifestyle by highlighting the positive aspects of boating as a pastime. The campaign also provides educational tools to assist consumers in selecting the right boat for their needs. The core foundation of this movement is that people have a passion for the water; it is contagious, and this helps people identify with boating.

The public relations campaign has evolved over the years, and the current campaign leverages existing boaters’ experiences to attract new boaters. The idea is to have existing boaters share their boating experiences with their family and friends, in person and on the Web. The campaign sees this awareness and/or seeing actual boating experiences as the first step to helping people discover boating. The goal is to have the new potential boater desire, consider and eventually, purchase a boat.

The campaign has a strong Web presence through the website (www. discoverboating.org) and the use of social media like Facebook (with 220,000 “Likes”) and Twitter. Grow Boating has recently updated its home page (www. growboating.org), implemented new site navigation, redesigned its boat selector tool, implemented a new “Get Started” section and developed a Beginner’s Guides to Boating. 

Useful Resources

By summer 2012, the Discover Boating Facebook page will help bring this concept into reality through the Video Creator template on the Web. This turnkey template allows boaters to upload photos and videos of their boating experiences (which may include your marina), and the Facebook app will allow the user to add personalized text, music and render it into a personalized boating video. The idea is to have boaters share this video with their friends and family to entice them to participate in boating.

Grow Boating will also catalog these videos so that potential customers can view them, if they choose to share with everyone. Boaters can choose to share videos only with family and friends, but the hope is that boaters use the Video Creator to document their boating experiences for everyone. The use of the Internet and social media takes boating directly to the younger generations who are the future of our industry.

One of the most popular tools on the Grow Boating site is the Spousal Conversion Kit, which focuses on letting “the water and wind work its magic” on significant others. The objective is to convince family members to invest discretionary time and money on boating.

Recognizing that there are many other activities people can and do spend their time and money on, the Grow Boating site offers a cost comparison tool that compares the cost of boating to other pastimes, such as RVs, golfing, attending professional sporting events and vacations. This effort helps to challenge the notion that boating is too expensive.

To help boaters in pursuing the “boating lifestyle,” the Grow Boating campaign offers tools to help potential boaters. It includes information on boating basics, such as anchoring, finding boating destinations and understanding the costs of boat ownership, as well as a list of courses consumers can take to learn about boating safety and education.

Grow Boating has created several short Web-based video advertisements for online sports and weather outlets, such as TheWeatherChannel.com and CBSSports.com, because TV advertising has become cost prohibitive. In addition, Grow Boating has produced collateral material and tools to assist in promoting the message and campaign. Marinas can use the materials to help promote the program to their boaters.

Any waterfront facility or marine business has the opportunity to grow a critical component of the initiative, which is getting current boaters involved.

As existing boaters become aware of the campaign, they are empowered to help promote boating to their family and friends.

The Grow Boating committee has made these resources available free of charge to marinas and boat dealers, but the industry needs your help in distributing the message. On the Grow Boating website, marinas will find promotional tools that everyone can use, including online videos that can be embedded into your website, as well as bumper stickers and window decals and DVDs for showroom displays. It’s all there, you just need to visit the site and order your free materials for this season. 

Bridging the Gap

Marinas and boatyards have a real opportunity here to bridge the gap between boat manufacturers, dealers, brokers and the other segments of the marine industry. Remember that marinas are the gateway to the water for recreational boating, and if it were not for marinas, the industry would not be as big as it is today. The objective is to unify the marine industry to create a common voice and promote cooperation between the various sectors. The goal is to increase boating as an activity, attract new people to the pastime and ensure a strong industry for the future. I strongly encourage everyone to participate in this campaign. It is so critical to the future of every segment of the marine industry.

How can marinas do this? One way is for marinas to combine the Discover Boating Campaign “Welcome to the Water” with National Marina Day on June 9. This combination will create a strong message that will help educate boaters and non-boaters alike about marinas, the marine industry and the boating lifestyle. 

I cannot stress the importance of marina involvement in Grow Boating. Be part of the movement or face the consequences. The marine industry can no longer be isolated into individual silos. We must work together to grow participation, focus on the customer, offer innovative and superior experiences for our customers, and welcome more people to the boating lifestyle.

I would like to call your attention to an article written by Ron Stone back in the March/April 2000 issue of Marina Dock Age called “Marinas and Manufacturers are Best Friends.” Stone said, “Clearly, there is a symbiotic relationship between marinas and the recreational marine manufacturing industry. Each needs the other for growth and economic success. It is essential that they work together.” 

His words were as true then, as they are now. I encourage individual marinas to join and work with Grow Boating to actively promote the boating lifestyle to the next generation of boaters. 

 

 

 

 

Wednesday
Feb042015

Reinforcing the Need for Good Customer Service and Training

This article, by Dennis Kissman, was published in Marina Dock Age –  December 2014/ January 2015

 

There have been a number of articles in Marina Dock Age over the years about customer service. In fact, I have had the opportunity to author many of those articles, mostly focused on customer service in broad terms. They outline how marinas are in the service business, how good customer service will retain customers, and how your staff should approach the topic of customer service. I think it may be a good time to revisit the topic, as good customer service can overcome many deficiencies in a facility.

Training First

I believe that employee training goes beyond the basic skills and knowledge required for each individual position. In order to have the competitive edge in the marina industry, employees must have profound training in all aspects of customer service.

Before any training can begin, it is necessary that employees understand their own job functions, and carry out those job functions to the very best of their ability. From pumping fuel at your fuel dock, to helping a customer carry groceries, or providing correct billing, those basic functions are important. Employees should be trained to give each and every customer the feeling that they are the most important person in the marina.

The training begins with the basic tenets learned from an early age, simply to say “Please” and “Thank You,” and to smile. The basic training continues with courtesy and respect to your customers. Train employees not to be belligerent with customers, but to listen, smile and hold friendly conversations where appropriate. Employees at this level understand that when a customer visits a marina, they are visiting the area where that customer feels at home, as a special guest.

In our operations, we urge employees to show a positive attitude, not only in dealing with customers, but also with each other. Ask your employees to be honest, frank and sincere with your customers. Bad attitudes chase customers away.

Sometimes, however, the employee just has to grin and bear it. It is precisely at these times when customer service is at its most useful. For example, at the end of a long July 4th holiday, with the temperature and humidity soaring with the boaters all at their moorings or safely nestled in their slips, you take a well-earned breather waiting for fireworks to start. However, the fireworks are in the marina office as two irate customers bound in complaining that the other has unplugged power and is using their pedestal for their own boat. Here is a chance to excel at customer service. In this situation, we train our employees to: one, defuse the situation; two, acknowledge the problem, if one exists; and three, make sure they are empowered to deal with the situation at hand.

Anticipate Needs

Ask your employees to be aware of what goes on around them, to anticipate the needs of others. For example, one of the biggest fears of most boaters is the fear of docking their boat. A simple gesture by an employee would include asking the boat captain if they would like some help in docking and tying up the boat. Keeping in mind, regardless of the size of the boat, every boat underway has a captain on-board and that person deserves the respect that the position is entitled to.

Ask your employees to be prepared, to know “their” marina and approach the customer that may need help, not to wait to be asked. Ask your employees to answer questions correctly, not give any answer that will “keep the customer happy.” If employees do not know the answer to a specific question, they should say they do not know, but find out the answer and get back to the customer in a timely manner.

Ensure that your employees not only look after their own overall cleanliness, but also the cleanliness of their surroundings. We have a saying with our employees when it comes to litter: if you see it, you own it.

Train your employees to treat your customers as though they were guests in your employees’ homes. Ask them to try and remember them by name and make them feel special.

All the above guidelines should form the foundation for your employee training program in customer service, keeping in mind that customer service starts at the top of your organization. Employees will emulate what management does. Management has to look at the whole picture, from hiring the employee with the right attitude and placing him in the correct position and providing additional training when necessary.

Performance Feedback

Employees should get constant feedback for their service performance from simply a pat on the back for a job well done to awards and recognition. The manager acts as coach for the employees, putting the ‘fun’ in fundamentals, and reinforcing and motivating employees.

When you have your customers spreading the word about the level of customer service you provide at your marina, no amount of money spent on other forms of advertising can compete with the return you will get from good customer service.

The following is a good reminder to all your employees of the importance of customers to your business. Use these freely to get the message to all employees about why good customer service is vital to the success of your marina and their future employment.

The Ten Commandments of Customer Service

• The Customer is the most important person in our business.

• The Customer is not obligated to us – we are obligated to him.

• The Customer is not an intruder on our work – he is the reason for it.

• The Customer does us a favor when he arrives – our service is not a favor to him, but our purpose!

• The Customer is not a slip number, or statistic – but a human being with the same feelings and emotions as ourselves.

• The Customer is not someone with whom you argue or match wits!

• The Customer  brings us his desires, it is our job to fulfill those desires.

• The Customer is deserving of the most courteous and attentive service we can provide!

• The Customer is the person who makes it possible for us to pay our bills, provide salaries and maintain our Marina.

• Without our Customers, there would be no marina.

If you plan to use customer service as a tool to promote your marina, it has to be more than just words. It takes dedication and hard work that has to be in place and acted upon in a consistent manner. Implementing an effective customer service program does not have to be expensive, but the rewards can add tremendous value to your bottom line.

 

Monday
Jan052015

HOW TO ASK FOR A RENT CONCESSION

This article, by Dennis Kissman, was published in Marina Dock Age –  May/June 2013

 

Is your marina governed by a lease or concessionaire agreement from a governmental or quasi-governmental agency or possibly a private entity? If so, be sure you know the financial condition of your own business before you start complaining you cannot make your lease or concessionaire rental payments. Recently, we have been involved in two situations where the marinas had land leases with governmental agencies. Both marina owners used the current economic conditions as the reason why they needed a rent concession on their leases. One of the leases has been resolved with a reduction in rent, while the other is still pending. In our opinion, both clients have justifiable reasons to request rent reductions because of the impact of current economic conditions on their businesses. But how they justify their reasons for the reduction can make the difference in the outcome to their request.

Lowering Your Rent

If you are in a similar situation and considering approaching your “landlord” for a rent concession, whether it is a governmental agency or private sector owner, here are a few tips you may want to consider:

Relying on media hype about the economy, high unemployment or the weather, as a basis for your request, sounds like an excuse and weakens your argument. These are all factors that may contribute to your situation, but if you do decide to use any of them in your argument you must make them specific to your operation and customer base.

Statements or specific claims must be supported with facts. For example, lake levels are down and 30 of my previously occupied slips, which represent 20 percent of my total slips, cannot be occupied because of the low lake levels. Statements based on your opinion or hearsay are only going to weaken your argument.

When you make a broad statement, such as, my business is down because of the economy, be prepared to answer the next question; how specifically has the economy impacted your business? For example, you could address the situation like this: the Fourth of July holiday period represents about 30 percent of the marina’s fuel and store sales for the entire season. For the last two years with the sluggish economy customers have not use their boats, despite the good boating weather. As a result, store and fuel sales, which normally represent 10 percent of the marina’s total profits, have reduced the marina’s annual Net Operating Income (NOI) by $25,000. Making a statement like that gives the landlord or government agency the confidence that you understand what impacts your business.

Records

Make sure that your financial records properly reflect what is happening in your business. Most importantly, maintain consistent records. The quickest way to lose creditability is to have continually changed how you record specific revenues or expenses. For example: one time you code a utility hookup fee as revenue and then another time it is offset against utility expenses. This does not impact your bottom line. If you are making an argument that your utility costs are up, it is difficult to justify, when part of the time you code the reimbursement as revenue and other times as a reduction of expenses.

Where important trends can be established, accurate historical records relating to finances, occupancy, weather information, will help you justify your request. For example, if you can show that there was not a revenue problem before the current issue arose, whether it is the economy, water levels, weather or any number of other issues that are impacting your profitability,  it will increase your creditability. The longer that you can go back, the more creditable your argument will be. It has been my experience that trends are cyclical and we can learn from the past to shorten any downturns that impact your business, Make sure the adjustment you are requesting is the reason for your financial problems. I mentioned earlier that we were involved in two requests for rent adjustments and one was granted and the second is pending. The problem with the pending request is that the record keeping is not the most diligent. Also, a quick review of  the marina’s records showed that if it did not have to pay anything for the lease agreement with the agency, it still would have lost more than $50,000 last year. Granted, the lease terms are a problem and need to be addressed, but before you ask for some concession in your payment terms, make sure that you have a viable business plan that can be supported with facts and data.

Be Prepared

If you expect a rental concession, know the details and history of your business before you ask. The people that will make a decision on your request may not know your marina, but they probably know how businesses are run in general. Whether you are talking about marinas or carpet cleaning, business logic applies universally, in many cases. Show them you understand your business, and they’ll have confidence that you know what it needs to improve.