Free daily tips, information, advice, and ideas
to help you better manage your small business.
Taking a vacation was always difficult for me. Over the years in several businesses, I set them up so that they could run without me. But something else was afoot.
I grew up on a dairy farm. It was 24/7/365. No holidays, no vacation. All those cows had to be milked twice every day.
This early life instilled in me a formidable work ethic. Today, at 78, if I'm not doing something, I feel I'm wasting time. It's the same with most people who operate businesses.
In running my own businesses, I never hesitated taking an afternoon off or disappearing for a long weekend. I didn't call in, but I worried. My employees could always reach me by phone if they ran into a problem they could not handle. They rarely called.
Example: Mike started a small business running a computer repair shop. Gradually, he expanded and offered additional services. He would go to the offices of his clients, install new computers and software, network the setup and train employees. Soon, Mike had three employees and a service van on the road. Then he broke his leg. He was laid up for the better part of a month, running his business from his bed. Constantly on the phone, he directed his employees at every turn. Tired and exasperated, he shouted at an employee one day to handle the problem. It was an eye-opener for Mike. Not only did the employee handle the problem, but he did not call Mike again until the next day. Mike learned a valuable lesson--depend on your employees. They can handle most problems themselves if you will stay out of the way.
Many of you have employees, or you will as you grow. Train them how to handle problems and how to handle customers. Then step back and let them make their own decisions. To get the best out of employees, you must put them on their own. Help them grow.
This doesn't mean that employees run the business. That's your job.
Even if you manage a unit of a larger company, the same applies. Train your people, including someone to do your job. When you get that promotion, someone is ready to take over your position. Company management will be confident that your leaving won't disrupt operations.
Don't wait until you break your leg to take some time off. You need time away from your daily grind to clear your head, let your thoughts roam, and think through some fresh ideas. See how your business operates without your being there all the time.
Taking time off lets you see how well things are handled in your absence. This can give you clues to additional training your employees might need.
Friday, January 30, 2015
Thursday, January 29, 2015
Types of bonuses
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to help you better manage your small business.
Giving out bonuses to employees is a tried and true way to reward superior performance. Bonuses motivate employees. The return to the company is greater than the bonus given.
But in small businesses, there are ways to jiggle the process to improve the effect.
Example: A company with about 30 employees regularly handed out bonuses at the end of each year. A pot of money was set aside, then divided among employees whose performance had been exemplary during the year. The owner decided to try another method--shortening the period. Using the same amount of money, he divided it into four pots. At the end of each quarter, he handed out bonuses to employees showing performance most valuable to the company. By giving out bonuses four times each year instead of once, the effects were better. It put the reward closer to the performance deserving the bonus. Employees got motivated four times each year instead of once.
Example: Still looking at the situation, the same owner decided to try another variation. Using the same pot of bonus money, he divided it up into $100 bonuses. Whenever an employee showed exemplary performance or made a significant suggestion to improve the operations, the owner called everyone together and presented the $100 bonus. This variation caused considerable increase in enthusiasm among employees. It kept the bonus very close to the performance that earned it. At the end of the year, the owner still gave out small bonuses--gift cards in small amounts. Although this experimenting took place over several years, the owner arrived at a bonus system that worked well.
If you give out bonuses to employees in your company, you might want to get creative in structuring the way you do it. What works in one place might--or might not--work in the next.
With bonuses, you are motivating employees to greater interest, motivation, and performance. And you are spurring your employees to focus their attention on a better future for the company.
Your business does not work very well under a cloud of uncertainty. When federal and state regulations come fast and furious, business tends to hunker down. The same is true of employees. So, don't make frequent changes in a bonus system. Employees like certainty, too.
to help you better manage your small business.
Giving out bonuses to employees is a tried and true way to reward superior performance. Bonuses motivate employees. The return to the company is greater than the bonus given.
But in small businesses, there are ways to jiggle the process to improve the effect.
Example: A company with about 30 employees regularly handed out bonuses at the end of each year. A pot of money was set aside, then divided among employees whose performance had been exemplary during the year. The owner decided to try another method--shortening the period. Using the same amount of money, he divided it into four pots. At the end of each quarter, he handed out bonuses to employees showing performance most valuable to the company. By giving out bonuses four times each year instead of once, the effects were better. It put the reward closer to the performance deserving the bonus. Employees got motivated four times each year instead of once.
Example: Still looking at the situation, the same owner decided to try another variation. Using the same pot of bonus money, he divided it up into $100 bonuses. Whenever an employee showed exemplary performance or made a significant suggestion to improve the operations, the owner called everyone together and presented the $100 bonus. This variation caused considerable increase in enthusiasm among employees. It kept the bonus very close to the performance that earned it. At the end of the year, the owner still gave out small bonuses--gift cards in small amounts. Although this experimenting took place over several years, the owner arrived at a bonus system that worked well.
If you give out bonuses to employees in your company, you might want to get creative in structuring the way you do it. What works in one place might--or might not--work in the next.
With bonuses, you are motivating employees to greater interest, motivation, and performance. And you are spurring your employees to focus their attention on a better future for the company.
Your business does not work very well under a cloud of uncertainty. When federal and state regulations come fast and furious, business tends to hunker down. The same is true of employees. So, don't make frequent changes in a bonus system. Employees like certainty, too.
Wednesday, January 28, 2015
Inspire your employees
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to help you better manage your small business.
Every business, large and small, needs to optimize the performance of employees. No whips and chains. Just positive stuff.
People appreciate being appreciated. Deep down, all of us crave acceptance. And recognition. That's why a simple "Thank you" goes a long way in creating renewed enthusiasm and enhancing performance.
Many other ways are effective as well or can be used in combination. Here's a laundry list of possibilities--food for thought.
1. In very small businesses, handing out a $20 bill now and then for extraordinary effort can spur even greater effort and creativity in an employee. Or give a paid day off now and then.
2. Call everyone together and recognize superior performance in front of the group. If you have weekly or monthly gatherings of employees, you might do it then.
3. Set up a bonus system to reward superior performance. You can get creative yourself in how you do this, how you select the person getting the bonus, timing, etc.
4. Set up an employee of the month program. Don't let it become routine--make it a vital part of the business. Use a plaque to which names can be added, inscribed on metal plates.
5. Make up company tee shirts and hand them out at company picnics or other functions. These can be for a stated reason, or they can be part of the way you run your business.
6. Go the extra mile. If your business is incorporated, consider giving out stock certificates to valuable employees. If parking is a problem at your place, consider putting employee names on parking places--yours should be at the end of the line, not closest to the door. If you don't have a company retirement plan, consider setting one up--you'll need professional help with this.
Other options can be effective. Put on your thinking cap and get creative. Little things that show your thoughtfulness and appreciation are often more effective than big splashes.
Whatever you do, do it with a "Thank you" to the employee. It inspires people.
Running your own business can be stressful and frustrating, especially in the early years. I know--I've been there, done that. Keeping your employees happy can help you deal with the acid burn when the cash flow is not flowing.
to help you better manage your small business.
Every business, large and small, needs to optimize the performance of employees. No whips and chains. Just positive stuff.
People appreciate being appreciated. Deep down, all of us crave acceptance. And recognition. That's why a simple "Thank you" goes a long way in creating renewed enthusiasm and enhancing performance.
Many other ways are effective as well or can be used in combination. Here's a laundry list of possibilities--food for thought.
1. In very small businesses, handing out a $20 bill now and then for extraordinary effort can spur even greater effort and creativity in an employee. Or give a paid day off now and then.
2. Call everyone together and recognize superior performance in front of the group. If you have weekly or monthly gatherings of employees, you might do it then.
3. Set up a bonus system to reward superior performance. You can get creative yourself in how you do this, how you select the person getting the bonus, timing, etc.
4. Set up an employee of the month program. Don't let it become routine--make it a vital part of the business. Use a plaque to which names can be added, inscribed on metal plates.
5. Make up company tee shirts and hand them out at company picnics or other functions. These can be for a stated reason, or they can be part of the way you run your business.
6. Go the extra mile. If your business is incorporated, consider giving out stock certificates to valuable employees. If parking is a problem at your place, consider putting employee names on parking places--yours should be at the end of the line, not closest to the door. If you don't have a company retirement plan, consider setting one up--you'll need professional help with this.
Other options can be effective. Put on your thinking cap and get creative. Little things that show your thoughtfulness and appreciation are often more effective than big splashes.
Whatever you do, do it with a "Thank you" to the employee. It inspires people.
Running your own business can be stressful and frustrating, especially in the early years. I know--I've been there, done that. Keeping your employees happy can help you deal with the acid burn when the cash flow is not flowing.
Tuesday, January 27, 2015
Question yourself
Free daily tips, information, advice, and ideas
to help you better manage your small business.
You're running your small operation. Or you're thinking about starting one. It's time to question what you're doing and where you're headed.
Want proof? Throw yourself forward in time a thousand years. Archaeologists are sifting through the remains of our civilization. They are perplexed. What could explain the millions of miles of paved roads and the vehicles that used them?
Gradually, the scientists home in on a theory. These ancient peoples were sun worshipers. They raced out of their homes at sunrise, driving around to welcome the sun. At sundown, they interrupted their activities to drive around again to bid the sun goodnight. The highway cloverleafs were the temples.
Any given set of facts can be explained in very different ways. It's true with scientists, and it's true with you and your business.
Questions: Am I in the right business? Am I trying to move too quickly? Am I on top of the changing marketplace? Is the money for growth being generated quickly enough internally? Do I really know my clients/customers? Do they really know what I do, and can do, for them? Am I heading in the same direction they are? Do I pay enough attention to their needs and concerns? What can I do to better prepare for tomorrow's business world? Should I be changing directions to better address tomorrow's marketplace?
People who run small businesses are fleet of foot. That's their edge over big corporations. Small businesses can change directions very quickly. This is a great asset, but it can lead you into blind alleys. Like future archaeologists, people in small business can come to the wrong conclusions.
Logical thinking is one of the great achievements of the human mind. It has proved itself over and over again. But it is not the only tool you have.
Intuition is a tool that leavens the bread. If it feels wrong, don't do it. Intuition can mean that logic has let you down. Go back over what you're planning, and get logic in sync with intuition.
Now, go back to the top and read this again. Pay close attention to the Questions.
Over my lifetime of starting up, growing, thinking and writing about business--first in corporate America and then in small businesses of my own--I have learned valuable lessons. Logical thinking and intuition are foremost among them.
to help you better manage your small business.
You're running your small operation. Or you're thinking about starting one. It's time to question what you're doing and where you're headed.
Want proof? Throw yourself forward in time a thousand years. Archaeologists are sifting through the remains of our civilization. They are perplexed. What could explain the millions of miles of paved roads and the vehicles that used them?
Gradually, the scientists home in on a theory. These ancient peoples were sun worshipers. They raced out of their homes at sunrise, driving around to welcome the sun. At sundown, they interrupted their activities to drive around again to bid the sun goodnight. The highway cloverleafs were the temples.
Any given set of facts can be explained in very different ways. It's true with scientists, and it's true with you and your business.
Questions: Am I in the right business? Am I trying to move too quickly? Am I on top of the changing marketplace? Is the money for growth being generated quickly enough internally? Do I really know my clients/customers? Do they really know what I do, and can do, for them? Am I heading in the same direction they are? Do I pay enough attention to their needs and concerns? What can I do to better prepare for tomorrow's business world? Should I be changing directions to better address tomorrow's marketplace?
People who run small businesses are fleet of foot. That's their edge over big corporations. Small businesses can change directions very quickly. This is a great asset, but it can lead you into blind alleys. Like future archaeologists, people in small business can come to the wrong conclusions.
Logical thinking is one of the great achievements of the human mind. It has proved itself over and over again. But it is not the only tool you have.
Intuition is a tool that leavens the bread. If it feels wrong, don't do it. Intuition can mean that logic has let you down. Go back over what you're planning, and get logic in sync with intuition.
Now, go back to the top and read this again. Pay close attention to the Questions.
Over my lifetime of starting up, growing, thinking and writing about business--first in corporate America and then in small businesses of my own--I have learned valuable lessons. Logical thinking and intuition are foremost among them.
Monday, January 26, 2015
Educate your clients
Free daily tips, information, advice, and ideas
to help you better manage your small business.
Clients and customers don't always know the best solution to their problem. They look to you for expert help.
This is true in many businesses--dentists and therapists, computing and technology experts, landscaping and home remodeling, gift shops and health food stores, gyms and auto repair shops.
It's up to you to dig beneath the surface, make certain that you identify the real problem, and offer solutions to make clients happy. The returns are real--the current job, future come-backs, and referrals.
Example: A specialist in home re-modeling brings lots of experience and expertise to that first visit with a customer. I know a home re-modeler who provides much more than free estimates. If it's a kitchen, he sketches out some quick possibilities, asking questions about the special needs of the cook--islands for special work, hanging racks for pans, storage for small appliances, etc. If it's an office, he discusses what kinds of work will be done there--placement of lighting and windows, storage cabinets and racks, etc. If children are in the house, he reminds the client that the children will be growing up--when they leave, what will be done with this room? If the client plans to sell the home and move on, what types of improvements will add value?
Educating clients by bringing your knowledge to bear can transform the selling experience. It can turn one job into an on-going relationship. It is the client who will pay the bill, so it's up to the specialist to educate and satisfy the client.
More examples: A dentist concentrates on selling smiles, not crowns and fillings. An expert in hearing problems emphasizes his policy that no client pays until 60 days of satisfactory hearing passes. A landscaper shows his client what the new garden will look like, using all the computer tools in his handy laptop. Lawyers need to educate clients on the applicable law, but they also need to find ways to help clients do what they want to do--lawfully.
And experts in computer technology, networking, social media and all the rest need to educate their small business clients. People in small business frequently do not understand what computer people can do for them. They get it when it comes to QuickBooks and TurboTax because they already understand accounting and taxes. But they have little appreciation for what social media can do. People in large corporations understand and use social media. Not so in small business. People in small business need to be educated in the value of social media, how it can help them, how to use it, and what it can mean in growing their business.
Make educating your clients a part of your business. It will repay you in many ways, not the least of which is a happy client who will call you again and again--and refer others to you.
to help you better manage your small business.
Clients and customers don't always know the best solution to their problem. They look to you for expert help.
This is true in many businesses--dentists and therapists, computing and technology experts, landscaping and home remodeling, gift shops and health food stores, gyms and auto repair shops.
It's up to you to dig beneath the surface, make certain that you identify the real problem, and offer solutions to make clients happy. The returns are real--the current job, future come-backs, and referrals.
Example: A specialist in home re-modeling brings lots of experience and expertise to that first visit with a customer. I know a home re-modeler who provides much more than free estimates. If it's a kitchen, he sketches out some quick possibilities, asking questions about the special needs of the cook--islands for special work, hanging racks for pans, storage for small appliances, etc. If it's an office, he discusses what kinds of work will be done there--placement of lighting and windows, storage cabinets and racks, etc. If children are in the house, he reminds the client that the children will be growing up--when they leave, what will be done with this room? If the client plans to sell the home and move on, what types of improvements will add value?
Educating clients by bringing your knowledge to bear can transform the selling experience. It can turn one job into an on-going relationship. It is the client who will pay the bill, so it's up to the specialist to educate and satisfy the client.
More examples: A dentist concentrates on selling smiles, not crowns and fillings. An expert in hearing problems emphasizes his policy that no client pays until 60 days of satisfactory hearing passes. A landscaper shows his client what the new garden will look like, using all the computer tools in his handy laptop. Lawyers need to educate clients on the applicable law, but they also need to find ways to help clients do what they want to do--lawfully.
And experts in computer technology, networking, social media and all the rest need to educate their small business clients. People in small business frequently do not understand what computer people can do for them. They get it when it comes to QuickBooks and TurboTax because they already understand accounting and taxes. But they have little appreciation for what social media can do. People in large corporations understand and use social media. Not so in small business. People in small business need to be educated in the value of social media, how it can help them, how to use it, and what it can mean in growing their business.
Make educating your clients a part of your business. It will repay you in many ways, not the least of which is a happy client who will call you again and again--and refer others to you.
Friday, January 23, 2015
Farm businesses
Free daily tips, information, advice and ideas
to help you better manage your small business.
Farmers and farmer-wannabes, take note. A small farm is a small business. And every small business can grow into something much bigger.
A small farm can be a successful and profitable operation. See to the market and turn a small operation into a business you can be proud of.
Example: Jill put her large backyard to work. She had a friend build 8 large raised beds, and she installed hoops covered with special plastic. Then she planted 16 different types of lettuce. While the seeds sprouted and the young plants grew, Jill made the rounds of chefs and upscale restaurants and returned with orders in hand. Today, she supplies fresh lettuce to her customers. Business is good and Jill plans to expand with spinach, chard and a variety of herbs. Her farm has grown into a backyard business that is supporting her family.
Example: Robert inherited the family farm. His father had raised corn on the large acreage, but Robert had other ideas. He sold most of the land, reserving about 10 acres. He set aside a couple of acres to plant strawberries. In the spring, he furnished strawberries to area restaurants, caterers, bakers and chocolate businesses. He also offered locals a chance to pick-your-own. His income arrives during late May and early June. Today, Robert has doubled the size of his strawberry plantings. He's now planning planting raspberries and blackberries so that summer and fall will be income producing. His father would be proud.
Times change. People today are interested in farm fresh, healthy foods, farm-to-table produce. Tap into this, and just about anyone can establish a farming business.
More examples: Jack had no space of his own, so he rented a farmer's barn and established a mushroom growing operation. Isabel cleared her mother's greenhouse and raises herbs. Woody lives in the city--he put in a hydroponic operation in an old, unused building where he began raising tomatoes, growing in a solution under lights. Woody's farm laughs at the winter weather.
Today's markets grow out of today's lifestyles. It's all about the market and marketing. A comfortable living can be achieved with small farms. An even better living can be yours if you seize the opportunities and do the job right.
Farming is hard work. I know. I grew up on one. But growing things can be immensely rewarding--personally and monetarily.
An ear to the marketplace can turn up all sorts of possibilities. The market is always changing. You gotta keep up if you are to match your dream to reality.
to help you better manage your small business.
Farmers and farmer-wannabes, take note. A small farm is a small business. And every small business can grow into something much bigger.
A small farm can be a successful and profitable operation. See to the market and turn a small operation into a business you can be proud of.
Example: Jill put her large backyard to work. She had a friend build 8 large raised beds, and she installed hoops covered with special plastic. Then she planted 16 different types of lettuce. While the seeds sprouted and the young plants grew, Jill made the rounds of chefs and upscale restaurants and returned with orders in hand. Today, she supplies fresh lettuce to her customers. Business is good and Jill plans to expand with spinach, chard and a variety of herbs. Her farm has grown into a backyard business that is supporting her family.
Example: Robert inherited the family farm. His father had raised corn on the large acreage, but Robert had other ideas. He sold most of the land, reserving about 10 acres. He set aside a couple of acres to plant strawberries. In the spring, he furnished strawberries to area restaurants, caterers, bakers and chocolate businesses. He also offered locals a chance to pick-your-own. His income arrives during late May and early June. Today, Robert has doubled the size of his strawberry plantings. He's now planning planting raspberries and blackberries so that summer and fall will be income producing. His father would be proud.
Times change. People today are interested in farm fresh, healthy foods, farm-to-table produce. Tap into this, and just about anyone can establish a farming business.
More examples: Jack had no space of his own, so he rented a farmer's barn and established a mushroom growing operation. Isabel cleared her mother's greenhouse and raises herbs. Woody lives in the city--he put in a hydroponic operation in an old, unused building where he began raising tomatoes, growing in a solution under lights. Woody's farm laughs at the winter weather.
Today's markets grow out of today's lifestyles. It's all about the market and marketing. A comfortable living can be achieved with small farms. An even better living can be yours if you seize the opportunities and do the job right.
Farming is hard work. I know. I grew up on one. But growing things can be immensely rewarding--personally and monetarily.
An ear to the marketplace can turn up all sorts of possibilities. The market is always changing. You gotta keep up if you are to match your dream to reality.
Thursday, January 22, 2015
Shipping charges
Free daily tips, information, advice and ideas
to help you better manage your small business
But wait! We'll double the offer! Shipping is free!
We've all heard the pitch on cable for kitchen items and cleaning products. It must work, or these advertisements would not be so plentiful.
There are several clues here for small business. Take the free shipping for example.
People hate it when you low-ball the price of your product on your website, then tack on shipping charges when they go to checkout. That's frequently when they clickout and checkout themselves. How many abandoned shopping carts have you had?
The thing that cable advertisers have learned is simple. Include shipping charges in the price of the product and emphasize that shipping is free.
Think about it. You've attracted customers with your product. Now you've lost them for the sake of a shipping charge.
Sometimes it can be expected and appropriate. Other times not so much. Many don't seem to mind a shipping charge. Others do. But you don't want to lose the sale.
Example: Wendy is an artist who hand-paints silk scarves with colorful designs. She sells at high end gift shops, shows, and through her website. On her website, the scarves are priced at $75 and higher, and she adds a shipping charge to orders. She decided to make changes on her website--all orders gift-wrapped, base price raised to $100 and shipping charge eliminated. She realized more sales.
Example: John repairs computers and other electronic devices in his small local shop. He also sells parts, software, and games through his website. This has attracted customers from distant places. His customers don't seem to mind shipping charges which can vary according to the size of the order and type of shipping preferred by the customer.
When orders are big, bulky and vary by size, customers don't seem to care much about shipping charges. But for small, light weight products, they do.
Over the years, I've learned a lot from watching the ads on television. Some are in-your-face. With others, it's hard to understand what's being promoted. But that shipping charge is on everyone's mind.
to help you better manage your small business
But wait! We'll double the offer! Shipping is free!
We've all heard the pitch on cable for kitchen items and cleaning products. It must work, or these advertisements would not be so plentiful.
There are several clues here for small business. Take the free shipping for example.
People hate it when you low-ball the price of your product on your website, then tack on shipping charges when they go to checkout. That's frequently when they clickout and checkout themselves. How many abandoned shopping carts have you had?
The thing that cable advertisers have learned is simple. Include shipping charges in the price of the product and emphasize that shipping is free.
Think about it. You've attracted customers with your product. Now you've lost them for the sake of a shipping charge.
Sometimes it can be expected and appropriate. Other times not so much. Many don't seem to mind a shipping charge. Others do. But you don't want to lose the sale.
Example: Wendy is an artist who hand-paints silk scarves with colorful designs. She sells at high end gift shops, shows, and through her website. On her website, the scarves are priced at $75 and higher, and she adds a shipping charge to orders. She decided to make changes on her website--all orders gift-wrapped, base price raised to $100 and shipping charge eliminated. She realized more sales.
Example: John repairs computers and other electronic devices in his small local shop. He also sells parts, software, and games through his website. This has attracted customers from distant places. His customers don't seem to mind shipping charges which can vary according to the size of the order and type of shipping preferred by the customer.
When orders are big, bulky and vary by size, customers don't seem to care much about shipping charges. But for small, light weight products, they do.
Over the years, I've learned a lot from watching the ads on television. Some are in-your-face. With others, it's hard to understand what's being promoted. But that shipping charge is on everyone's mind.
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