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to help you better manage your small business
Finding a new employee can turn into a real problem. Most good employees already have jobs. You can hire a new employee away from another business, but it will cost you.
To find a new employee for your business, first define what that new person will contribute. New employees must fit into your overall business plan. Where do you want to go? And how can a new person help you get there?
Many people who apply for a job don't have basic skills. They don't get to work on time, they cannot read or write, they don't know how to answer a business phone, and they don't know how to apply themselves to a problem, solve it, and move on to the next problem.
In my own experience, I have placed an ad in a newspaper. Bad idea, especially in today's world. I dreaded the responses because a wide range of unqualified people showed up.
Good employees have a sparkle in their eyes. They have learned self-discipline. They want to learn new things. They want to be a part of the business. They want to contribute to the success of something bigger than themselves. They want to feel good about what they do.
Through trial and error, I learned to look beyond the experience of the person in front of me. I learned that I could teach them the specific tasks I wanted them to do. I learned to look beyond the resume--in fact, it they arrived resume in hand, I simply laid it aside and began a conversation.
I always wanted to know if the applicant had served in the military. If so, then I knew self-discipline had become a part of the person. Military people have learned the importance of a team effort and they have learned to respect others. With these basics in place, I could teach them everything they needed to know.
Our public schools today are too frequently little more than baby-sitting operations. Students are not taught to engage life. Anything goes--there is little self-discipline. Educators experiment with the lives of our young people, coddling them, and not preparing them for the real life situations they will face later on. It is a huge disservice to the youngsters.
When you go looking for your next new employee, forget the resume. Resumes can be manufactured--and many are. Look instead for fire in the belly and self-discipline. Look for a person who can contribute to the team and help get you where you want to go in your business. Look for someone who has the potential to eventually replace you.
To find that next new employee, have a conversation with the best employee you currently have. Good employees know other good people. Ask them to refer a couple of prospects to you. Take it from there.
Monday, February 8, 2016
Friday, February 5, 2016
Getting paid on time
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to help you better manage your small business
If you run a service business or small manufacturing operation, you do the work and then you wait to be paid. The wait can be long. Meanwhile, your payroll and other bill continue.
It's particularly frustrating if you are dealing with large companies. They have procedures, and your bills can languish in the bowels of their accounts payable departments.
You can do some things to speed up the payments process. Here are three things I have used myself in businesses I've operated.
1. Change your terms. Offer a discount for payment within a short period of time. I've used 2% discount if paid within 10 days. When invoices arrive at a company's accounts payable department, those with discounts get quicker attention. For you, it's a way of using their system to prioritize payment of your invoice. 2%-30 days also works well.
2. Set up progress payments. This method depends on the business. If you are providing significant inputs of labor and materials to accomplish a job that stretches over time, set up contractual milestones that trigger partial payments as the work progresses. As project phases are completed, send appropriate invoices, referencing the negotiated agreement. I've used this in a printing operation where big jobs could stretch out over several weeks. Construction businesses use this all the time, as do consultants in various fields.
3. Develop a close relationship with the contact you deal with in a big company. This is key. The contact might be a low level manager or a senior vice president. But if you're not being paid in a timely manner, a face-to-face conversation with your contact in the big company can put pressure to get your invoice paid. Calls to the accounts payable department will be of little value in resolving a problem--or, in some cases, a friendly call might be of great help.
I once had a serious conversation with a senior vice president of a major corporation about this. His company was three months in arrears and still ordering. He had approval authority and he would sign off on invoices and forward them to the accounts payable people. There, my invoices would linger. In our conversation, I told him that I was continuing to provide services, but it amounted to providing financing to his company. He suddenly understood and corrected the situation.
In a way, my small business was providing financing for his big company. By not paying my invoices, they were in effect getting a loan from me. Big companies do this to small suppliers, the thinking being that they can easily replace small suppliers with others clamoring for the business. Meanwhile, the bottom line of the big company looks better.
Getting paid quickly is crucial to the health of your small business. Never yell, but use quiet pressure to get paid on time.
to help you better manage your small business
If you run a service business or small manufacturing operation, you do the work and then you wait to be paid. The wait can be long. Meanwhile, your payroll and other bill continue.
It's particularly frustrating if you are dealing with large companies. They have procedures, and your bills can languish in the bowels of their accounts payable departments.
You can do some things to speed up the payments process. Here are three things I have used myself in businesses I've operated.
1. Change your terms. Offer a discount for payment within a short period of time. I've used 2% discount if paid within 10 days. When invoices arrive at a company's accounts payable department, those with discounts get quicker attention. For you, it's a way of using their system to prioritize payment of your invoice. 2%-30 days also works well.
2. Set up progress payments. This method depends on the business. If you are providing significant inputs of labor and materials to accomplish a job that stretches over time, set up contractual milestones that trigger partial payments as the work progresses. As project phases are completed, send appropriate invoices, referencing the negotiated agreement. I've used this in a printing operation where big jobs could stretch out over several weeks. Construction businesses use this all the time, as do consultants in various fields.
3. Develop a close relationship with the contact you deal with in a big company. This is key. The contact might be a low level manager or a senior vice president. But if you're not being paid in a timely manner, a face-to-face conversation with your contact in the big company can put pressure to get your invoice paid. Calls to the accounts payable department will be of little value in resolving a problem--or, in some cases, a friendly call might be of great help.
I once had a serious conversation with a senior vice president of a major corporation about this. His company was three months in arrears and still ordering. He had approval authority and he would sign off on invoices and forward them to the accounts payable people. There, my invoices would linger. In our conversation, I told him that I was continuing to provide services, but it amounted to providing financing to his company. He suddenly understood and corrected the situation.
In a way, my small business was providing financing for his big company. By not paying my invoices, they were in effect getting a loan from me. Big companies do this to small suppliers, the thinking being that they can easily replace small suppliers with others clamoring for the business. Meanwhile, the bottom line of the big company looks better.
Getting paid quickly is crucial to the health of your small business. Never yell, but use quiet pressure to get paid on time.
Thursday, February 4, 2016
Holidays for everyone
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to help you better manage your small business
Employees expect paid holidays. But in today's world, it can mean problems for a business. Just which holidays are paid?
Years ago I knew a business owner who solved the problem in a very unique way. As his business grew from 5 to 10 and then from 10 to 20 employees, the people he hired represented different ethnic groups and backgrounds. His business was open 7 days, 365 days a year, and he had everyone working together like a well-oiled machine--except for the holidays.
The company started out in the 1970s with 9 paid holidays--all designated. The business was open on these days and there was always a scramble as to who would be working. The holidays were New Year's Day, President's Day, Easter, Memorial Day, Fourth of July, Labor Day, Veteran's Day, Thanksgiving and Christmas. In addition, the company paid 3 personal days each calendar year. All in all, there were 12 days off with pay each year (not counting sick days or vacation days).
As the years went by, the business grew, and complaints about the holidays began to roll in. A Jewish man wanted to take Jewish holidays. An employee from Egypt wanted Islamic holidays. An African-American wanted to take off on Martin Luther King Day. A Chinese guy wondered why he had to take off any holiday. An atheist refused to take off Easter and Christmas. And a Buddhist wanted to take off on his birthday.
The owner of the business solved the problem in a very unique way. The company dropped all holidays, leaving no official ones. Instead, every employee was entitled to, and paid for, 12 personal days during each calendar year. They could be taken no more than two days together, and at least one week's notice had to be given in writing. The 12 days could be taken or not--if not taken, they were not carried forward into the next year.
The solution tossed the holiday problem squarely into the employee's lap. Interestingly, some of the loudest requests for religious holidays are now spent elsewhere during the calendar year. One employee began taking Groundhog's Day and another opted for Halloween.
You might consider this option in your own business. Whatever you do, however, make certain you are in compliance with all the regulations coming at you these days.
Contrary to popular belief, business owners do not get any time off. You carry your worries with you wherever you go. While the lawyers and busybodies who write the rules relax on Memorial Day, you are hard at work.
to help you better manage your small business
Employees expect paid holidays. But in today's world, it can mean problems for a business. Just which holidays are paid?
Years ago I knew a business owner who solved the problem in a very unique way. As his business grew from 5 to 10 and then from 10 to 20 employees, the people he hired represented different ethnic groups and backgrounds. His business was open 7 days, 365 days a year, and he had everyone working together like a well-oiled machine--except for the holidays.
The company started out in the 1970s with 9 paid holidays--all designated. The business was open on these days and there was always a scramble as to who would be working. The holidays were New Year's Day, President's Day, Easter, Memorial Day, Fourth of July, Labor Day, Veteran's Day, Thanksgiving and Christmas. In addition, the company paid 3 personal days each calendar year. All in all, there were 12 days off with pay each year (not counting sick days or vacation days).
As the years went by, the business grew, and complaints about the holidays began to roll in. A Jewish man wanted to take Jewish holidays. An employee from Egypt wanted Islamic holidays. An African-American wanted to take off on Martin Luther King Day. A Chinese guy wondered why he had to take off any holiday. An atheist refused to take off Easter and Christmas. And a Buddhist wanted to take off on his birthday.
The owner of the business solved the problem in a very unique way. The company dropped all holidays, leaving no official ones. Instead, every employee was entitled to, and paid for, 12 personal days during each calendar year. They could be taken no more than two days together, and at least one week's notice had to be given in writing. The 12 days could be taken or not--if not taken, they were not carried forward into the next year.
The solution tossed the holiday problem squarely into the employee's lap. Interestingly, some of the loudest requests for religious holidays are now spent elsewhere during the calendar year. One employee began taking Groundhog's Day and another opted for Halloween.
You might consider this option in your own business. Whatever you do, however, make certain you are in compliance with all the regulations coming at you these days.
Contrary to popular belief, business owners do not get any time off. You carry your worries with you wherever you go. While the lawyers and busybodies who write the rules relax on Memorial Day, you are hard at work.
Wednesday, February 3, 2016
Listening expands your biz
Free daily tips, information, advice and ideas
to help you better manage your small business
Sometimes an idea to expand your small business comes at you from an unexpected direction. Even after you do careful thought and planning, good expansion ideas are where you find them.
Listen carefully to your current clients and customers. They can point you in a completely new direction. Of course, you always listen to them. But do you listen carefully?
Example: Mary runs a salon and spa. When she noticed that many of her clients were undergoing cancer treatments, she felt badly for them and wanted to help. She decided to add oncology esthetician services. After doing a search, she found an independent certified esthetician and made arrangements to offer the service at her place. Mary had expanded the services she offered, and it attracted additional people. When she posted the service on Facebook, many more arrived.
Example: Alex runs a landscaping business. He did lots of fall cleanup, winter pruning, spring planting, and year-round mulching. Many of his customers had questions about shrubs and perennials that Alex could not answer. He thought that this might be an area for expanding, so he contacted a garden center. They came to a partnership understanding and each began offering the other's services. Alex now has a bigger base of customers and regularly refers people to the garden center. He is now expanding into building gates and fences, laying brick and stone to create walkways and seating areas. The relationship with the garden center has been greatly beneficial to both.
Example: Law school and the bar exam behind her, Sue opened her own law office. She found herself handling traffic tickets, real estate closings, drawing up wills, and doing business partnership agreements. When a client asked about worker's comp, Sue saw an opportunity. She began concentrating on worker's comp cases, and she soon found it necessary to add a partner to her growing firm to handle all the work. Her reputation is growing and referrals regularly show up at her door. She has now become the go-to lawyer for worker's comp cases.
New directions for your business come at you all the time. Pick the good ones, test them out, and select the best.
Before heading off in a new direction, always do the numbers for your business plan. It's that projected bottom line that keeps you focused.
to help you better manage your small business
Sometimes an idea to expand your small business comes at you from an unexpected direction. Even after you do careful thought and planning, good expansion ideas are where you find them.
Listen carefully to your current clients and customers. They can point you in a completely new direction. Of course, you always listen to them. But do you listen carefully?
Example: Mary runs a salon and spa. When she noticed that many of her clients were undergoing cancer treatments, she felt badly for them and wanted to help. She decided to add oncology esthetician services. After doing a search, she found an independent certified esthetician and made arrangements to offer the service at her place. Mary had expanded the services she offered, and it attracted additional people. When she posted the service on Facebook, many more arrived.
Example: Alex runs a landscaping business. He did lots of fall cleanup, winter pruning, spring planting, and year-round mulching. Many of his customers had questions about shrubs and perennials that Alex could not answer. He thought that this might be an area for expanding, so he contacted a garden center. They came to a partnership understanding and each began offering the other's services. Alex now has a bigger base of customers and regularly refers people to the garden center. He is now expanding into building gates and fences, laying brick and stone to create walkways and seating areas. The relationship with the garden center has been greatly beneficial to both.
Example: Law school and the bar exam behind her, Sue opened her own law office. She found herself handling traffic tickets, real estate closings, drawing up wills, and doing business partnership agreements. When a client asked about worker's comp, Sue saw an opportunity. She began concentrating on worker's comp cases, and she soon found it necessary to add a partner to her growing firm to handle all the work. Her reputation is growing and referrals regularly show up at her door. She has now become the go-to lawyer for worker's comp cases.
New directions for your business come at you all the time. Pick the good ones, test them out, and select the best.
Before heading off in a new direction, always do the numbers for your business plan. It's that projected bottom line that keeps you focused.
Tuesday, February 2, 2016
Cause promotions
Free daily tips, information, advice and ideas
to help you better manage your small business
Cause promoting, or cause marketing, is not new. Small businesses have been helping local causes ever since they first supplied uniforms to local ball teams.
Small businesses improve their reputation and sales efforts by supporting local causes. Cause promoting is not only the right thing to do, it's good for business--spreading the word out into the community.
Examples: It's the local veterinarian who sponsors pet adoptions once a month. It's the local restaurant that opens up its party room to local charitable events. It's the local fitness center that sponsors a Walkathon for the benefit of cancer survivors. It's the local health food store that brings the Bloodmobile to its front door once each month. It's the local dentist who pays kids to bring in all the Halloween candy they've received. It's the local bakery that donates food to local food banks.
Big corporations put together big cause marketing campaigns to sell more product and enhance the company's image. Pink campaigns are so prevalent that the word "pink" has become synonymous with breast cancer research. Every time you see the word, you think about the contribution being made to a good cause.
Even small businesses have jumped at the chance to become part of local "pink" campaigns. Funds raised go to cancer research, and the reputation of the small business spreads in the community.
When CVS announced a campaign to remove all tobacco products from their pharmacies, the company's reputation was spread by the media--amounting to free advertising. CVS got widespread free publicity and improved the company's image in this cause marketing effort.
Small businesses are an integral part of the community they serve. It's a natural extension of that idea for businesses to be involved in cause promoting. Help the community and your small business is helped at the same time.
If your business is among the examples, you have a starting point. If not, put on your thinking cap and find a way to promote your business with cause promotions.
Cause promotions must be themselves promoted. Post your cause promotion on social media--it's easy and free. Cause promotions put a positive spin on your business and bring you some new people.
to help you better manage your small business
Cause promoting, or cause marketing, is not new. Small businesses have been helping local causes ever since they first supplied uniforms to local ball teams.
Small businesses improve their reputation and sales efforts by supporting local causes. Cause promoting is not only the right thing to do, it's good for business--spreading the word out into the community.
Examples: It's the local veterinarian who sponsors pet adoptions once a month. It's the local restaurant that opens up its party room to local charitable events. It's the local fitness center that sponsors a Walkathon for the benefit of cancer survivors. It's the local health food store that brings the Bloodmobile to its front door once each month. It's the local dentist who pays kids to bring in all the Halloween candy they've received. It's the local bakery that donates food to local food banks.
Big corporations put together big cause marketing campaigns to sell more product and enhance the company's image. Pink campaigns are so prevalent that the word "pink" has become synonymous with breast cancer research. Every time you see the word, you think about the contribution being made to a good cause.
Even small businesses have jumped at the chance to become part of local "pink" campaigns. Funds raised go to cancer research, and the reputation of the small business spreads in the community.
When CVS announced a campaign to remove all tobacco products from their pharmacies, the company's reputation was spread by the media--amounting to free advertising. CVS got widespread free publicity and improved the company's image in this cause marketing effort.
Small businesses are an integral part of the community they serve. It's a natural extension of that idea for businesses to be involved in cause promoting. Help the community and your small business is helped at the same time.
If your business is among the examples, you have a starting point. If not, put on your thinking cap and find a way to promote your business with cause promotions.
Cause promotions must be themselves promoted. Post your cause promotion on social media--it's easy and free. Cause promotions put a positive spin on your business and bring you some new people.
Monday, February 1, 2016
Easy, cheaper ways to promote
Free daily tips, information, advice and ideas
to help you better manage your small business
Promote inexpensively to grow and expand your business. Gone are the days when it cost an arm and a leg to advertise.
Here are three easy and inexpensive ways to promote. Reduce your advertising budget and use the cash for other things.
Social media: Much of social media is free. You don't have to buy an advertisement in order to take advantage of the power of social media. Facebook is a very good example. Many small businesses have jumped on the Facebook bandwagon to spread the word about their products and services. You'll need pictures, but you're snapping pictures all the time anyway. Pictures posted need not be professional. A closeup of a decorated cake will certainly attract attention, as well as a bouquet of flowers, a piece of jewelry, a trendy new outfit. More than Facebook is waiting for you to explore--Twitter, Instagram, Pinterest, LinkedIn, and more. All of these can direct attention--and new buyers--to your business. You should have a website, and it should be up to date.
Events: People are hungry for information, and you are expert at what you do. Put these two together, and you can promote your business very inexpensively. Hold an open house and give free demos and explain the benefits of acupuncture, massage, yoga, healthy diets, or whatever it is you offer. Hold informational meetings at clubs, senior centers, non-profit group meetings and other gatherings. Computer experts can advise dealing with viruses and how to recover from a crash. Accountants can explain new tax laws. Attorneys can advise what to do when you get sued. Chiropractors explain the benefits of chiropractic and answer all the questions.
Classes: Classes can take the public's hunger for information to the next level. Schedule a series of classes for beginners and another series for advanced students. Bakers teach cake baking and decorating. Potters teach throwing pots and making glazes. Accountants teach people how to simplify record-keeping. Landscapers teach garden design and how to lay pavers for walkways and seating areas. Any business can schedule classes evenings and weekends when people have free time. Attendees will pay you for classes, help spread the word about your business, and bring in referrals.
Promotions can cost next to nothing. Of course, you'll be spending your time and maybe coffee and cookies. But social media, events and classes cost less than print ads. And the argument can be made that these are more effective.
Social media has revolutionized advertising. You might still use print ads, mailers, and other things that still have appeal. But don't neglect the elephant in the room--social media.
to help you better manage your small business
Promote inexpensively to grow and expand your business. Gone are the days when it cost an arm and a leg to advertise.
Here are three easy and inexpensive ways to promote. Reduce your advertising budget and use the cash for other things.
Social media: Much of social media is free. You don't have to buy an advertisement in order to take advantage of the power of social media. Facebook is a very good example. Many small businesses have jumped on the Facebook bandwagon to spread the word about their products and services. You'll need pictures, but you're snapping pictures all the time anyway. Pictures posted need not be professional. A closeup of a decorated cake will certainly attract attention, as well as a bouquet of flowers, a piece of jewelry, a trendy new outfit. More than Facebook is waiting for you to explore--Twitter, Instagram, Pinterest, LinkedIn, and more. All of these can direct attention--and new buyers--to your business. You should have a website, and it should be up to date.
Events: People are hungry for information, and you are expert at what you do. Put these two together, and you can promote your business very inexpensively. Hold an open house and give free demos and explain the benefits of acupuncture, massage, yoga, healthy diets, or whatever it is you offer. Hold informational meetings at clubs, senior centers, non-profit group meetings and other gatherings. Computer experts can advise dealing with viruses and how to recover from a crash. Accountants can explain new tax laws. Attorneys can advise what to do when you get sued. Chiropractors explain the benefits of chiropractic and answer all the questions.
Classes: Classes can take the public's hunger for information to the next level. Schedule a series of classes for beginners and another series for advanced students. Bakers teach cake baking and decorating. Potters teach throwing pots and making glazes. Accountants teach people how to simplify record-keeping. Landscapers teach garden design and how to lay pavers for walkways and seating areas. Any business can schedule classes evenings and weekends when people have free time. Attendees will pay you for classes, help spread the word about your business, and bring in referrals.
Promotions can cost next to nothing. Of course, you'll be spending your time and maybe coffee and cookies. But social media, events and classes cost less than print ads. And the argument can be made that these are more effective.
Social media has revolutionized advertising. You might still use print ads, mailers, and other things that still have appeal. But don't neglect the elephant in the room--social media.
Friday, January 29, 2016
Your Internet future
Free daily tips, information, advice and ideas
to help you better manage your small business
So, how do you exploit the Internet to grow your small business? It depends on what you are doing. And it depends on where you plan to take your business down the road of growth and expansion.
You can do what many business owners do. Put up a website and revise it from time to time. When people visit, they see the same thing--month after month. Soon, nobody bothers to come to your website. If you don't refresh your website every week with new content, the search engines stop directing people to your site.
You can use social media to drive eyeballs to your website. Jump on Facebook at least twice each week and post a picture along with a few words. People are reminded that you are still there for them. They "like" you and perhaps pass your post on to their friends. Circles grow, and your business attracts more people.
There is a third way. It combines all this, and it can change your business into more than you ever dreamed it could be. Get your website active and keep it active with fresh content. Drive more people there with social media.
Example: Sue loved to bake brownies. She experimented with different recipes, she baked for friends and relatives, she gave them away to church functions, she even landed a couple of customers--corporate meeting planners. One of these people suggested that Sue develop a website through which they might place orders. Sue jumped on the Internet with her own website, and she began posting on Facebook with pictures of scrumptious brownies. Suddenly her business exploded. Today, Sue oversees the baking of her brownies in a commercial kitchen and she ships brownies all over the country. Smart use of the Internet has grown her business beyond her wildest dreams.
Example: Justin worked in a major corporation. Then, he inherited his aunt's consignment shop. He decided to make a life-changing career move. He resigned his corporate position, and he devoted full time to building the consignment shop. He concentrated on high-end items and those with a hot market. He invited artists and artisans to consign to his shop. He turned his website into a go-to destination, and promoted heavily on Facebook and other social media. He set up an eBay type store. He concentrated on selling at the store, through his website, and on eBay and other sites. Most of the items arriving at the store, he photographed and posted on social media--every day. Justin turned his aunt's consignment shop into a much more active business.
The Internet holds futures not yet dreamed of. Owners of small businesses need to catch the wave and ride it to success.
Put on your thinking cap. And get on the Internet--in all forms. Social media might be the greatest thing since sliced bread to grow and expand.
to help you better manage your small business
So, how do you exploit the Internet to grow your small business? It depends on what you are doing. And it depends on where you plan to take your business down the road of growth and expansion.
You can do what many business owners do. Put up a website and revise it from time to time. When people visit, they see the same thing--month after month. Soon, nobody bothers to come to your website. If you don't refresh your website every week with new content, the search engines stop directing people to your site.
You can use social media to drive eyeballs to your website. Jump on Facebook at least twice each week and post a picture along with a few words. People are reminded that you are still there for them. They "like" you and perhaps pass your post on to their friends. Circles grow, and your business attracts more people.
There is a third way. It combines all this, and it can change your business into more than you ever dreamed it could be. Get your website active and keep it active with fresh content. Drive more people there with social media.
Example: Sue loved to bake brownies. She experimented with different recipes, she baked for friends and relatives, she gave them away to church functions, she even landed a couple of customers--corporate meeting planners. One of these people suggested that Sue develop a website through which they might place orders. Sue jumped on the Internet with her own website, and she began posting on Facebook with pictures of scrumptious brownies. Suddenly her business exploded. Today, Sue oversees the baking of her brownies in a commercial kitchen and she ships brownies all over the country. Smart use of the Internet has grown her business beyond her wildest dreams.
Example: Justin worked in a major corporation. Then, he inherited his aunt's consignment shop. He decided to make a life-changing career move. He resigned his corporate position, and he devoted full time to building the consignment shop. He concentrated on high-end items and those with a hot market. He invited artists and artisans to consign to his shop. He turned his website into a go-to destination, and promoted heavily on Facebook and other social media. He set up an eBay type store. He concentrated on selling at the store, through his website, and on eBay and other sites. Most of the items arriving at the store, he photographed and posted on social media--every day. Justin turned his aunt's consignment shop into a much more active business.
The Internet holds futures not yet dreamed of. Owners of small businesses need to catch the wave and ride it to success.
Put on your thinking cap. And get on the Internet--in all forms. Social media might be the greatest thing since sliced bread to grow and expand.
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