Posts Tagged ‘management controls’

A Successful Business is a Well-Oiled Machine

January 21st, 2013

 

Since you want more clients or customers, more income, and more time off, you’ll need to make your business run like a well-oiled machine. If you are like most entrepreneurs you’re handling almost everything yourself, and so your business is probably running YOU, instead of you running your business. That means a lot of things are being left undone, opportunities are being lost, and consequently fewer clients and are coming in.

Consistency is crucial and chaos is costly, both financially and time-wise. When things run like a well-oiled machine, when everything’s organized, chaos is reduced. Ideally, you want things run on their own, or by the efforts of someone else, so you can focus on growing your business, while having more time off to enjoy yourself. For this to happen, you’ll need to systemize the processes involved in operating your business.

If you haven’t identified the one best way to perform each repeatable task or process (such as answering the phone in a consistent manner, managing your sales process, etc.) then you’re in big trouble. You need to create some systems and procedures.

Even if you don’t have help from staff, you can still make your business run smoothly.

Begin by documenting everything you do:
Start by tracking your time. Take a note pad and document the time it takes you to do the tasks you do every day. In a week you will have a good picture of where you are spending your time. It also allows you to see what can be removed from your day, and what can be delegated to your team. By keeping an awareness of your time and where you spend it, you will be much more productive. You’ll see a pattern of where you are spending too much or too little time, and which things you are doing that aren’t essential to your business. By keeping track of this, it will help you realize how you can use your time better.

Next, you want to document the process associated with each task:
Write clear instructions on how to complete each task. This will eliminate, or at least improve, chaotic situations. Increased levels of organization will enable a better work ethic and will help keep you on task generating better production throughout the day. It can be eye opening to see what you need to put into place. Once you realize what needs to be done, and fix it, your business will run more smoothly. You may also detect areas of your business that are under, or over staffed. By recognizing this you are attacking an issue before it becomes a bigger problem. You are now also able to better delegate what you need to, so that you can focus on what is the most important use of your own time. Make certain that all task instructions include the locations of all support material so that if you are unavailable your staff can easily find what they need to keep things going smoothly.

The end result should be an instruction manual for your business:
An instruction manual, or operations manual, for your business is a huge asset. It will help you and your staff to keep on track and know where to go to find the information need. It will clearly define the rules and regulations, work ethics and processes clearly. This will help you keep your employees in line, and help employees know their proper role, and what they need to do to fulfill that role. Everyone’s job is easier when the processes and procedures are clearly stated. There won’t be any gray areas when everything is right there in black and white. As you add to your team over time, having your systems documented will allow new people to integrate better, faster and more efficiently with your current team.

Ideally you will want to define your systems and document your processes and procedures before your company grows to full capacity. Then, as you approach full capacity status, you will avoid the breakdowns that cause so many businesses to fail. At the same time, you’ll make more time for marketing and for the ability to service the resulting larger client list.

A prime reason that franchises are so successful is that the operations manual eliminates all the guesswork on how to do things. It tells you “one best way”, and documents everything in a step-by-step manner.

But remember, just because the process is documented, it does not necessarily mean it’s always going to be the “one best way” to perform that task. You should challenge your employees to improve on how things are done to increase productivity and the quality of the results. That said, your operations manual should be a living document.

There are many things in any business that can be systematized. For example, each of your different marketing methods that you use to attract new clients should be well defined and documented, as should your client management, your schedule, your calendar, your email, etc. While you’re at it, your personal life could also benefit from establishing specific procedures. You can systematize your food shopping, your doctor appointments, your personal email, your dry-cleaning, your errands, your banking. You name it, and it can probably be systematized to your benefit.

You’ll be amazed to see how much of a problem-free zone your business becomes. You will have a lot more time to focus on building the business, a lot more room for new clients, and more time to simply enjoy yourself. You’ll have more time for vacations, for self-care, and for spending quality time with friends and family. And that’s what being self-employed is really about.

6 Mistakes to Avoid as You Build a Profitable Business

September 18th, 2012

Where do small business owners go wrong when trying to build a profitable business? Many mistakes can be traced back to such things as not being consistent in preforming some of the most crucial tasks required for a business to function. But there are also mistakes made by not taking a task to completion, trying to take too many tasks to completion, spending time on the wrong tasks, not having procedures in place for the most crucial tasks, and hiring the wrong people for the tasks you expect them to accomplish.

Avoiding these 6 mistakes can save you time, money and a lot of frustration. So as you move your business toward your goals of profit and growth, here are some mistakes you may want to avoid or fix.

1. An Inconsistent Marketing Effort
Marketing may well be the most important task a business must perform. For many, marketing efforts are like a roller coaster ride, up and down based on how busy you are or how sales are doing. If your marketing is sporadic, it’s likely your results will be the same. The key to attracting and retaining customers is consistency. It is better to do 3 or 4 lead generation strategies well and consistently than doing a dozen of them periodically.

2. No Follow Up
Investing resources to generate leads for your company without a proven method to convert them to paying customers is costly. No matter how potential customers come to you, a system for consistent and timely follow up is a key to sales growth. Take the time to develop a procedure for turning prospects into customers. Take advantage of technology, templates and scripts for efficiency and effectiveness. If you are not consistently following up on your marketing, you are not completing the marketing task. Be consistent and watch your sales soar.

3. Doing it all Yourself
Most small business owners became entrepreneurs because they are experts or skilled at something and believed they could do it better than others. But building a successful business requires more than technical know-how. No one is an expert at every task, so supplement yourself with other experts to fill in the gaps. Whether you hire employees, sub-contract work, create joint ventures, work with coaches, consultants or develop strategic alliances, the support you need is available. Don’t try to do it all yourself.

4. Not Identifying Your Customer Profile
The best products or services will go unsold if you are talking to the wrong people, those who will likely never buy. If you invest your time and money promoting your products or services to people who don’t have the resources, authority or need, today or in the near future, you will have spent your time on costly frustration. Who are the ideal customers for YOUR products and services? Do your research, find out who and where they are, how to reach them, and then apply your resources to pull them in.

5. No Procedures
Documented procedures for all your company’s critical tasks and operations is a key to efficiency, consistency, continuous improvement and profitability. Defining the important tasks crucial to a business is often ignored. This mistake becomes obvious when you hire and train new people, only to start losing customers due to poor service or missed deadlines. Don’t expect your employees to have your clarity of vision. They will need to know exactly how to do their work if they are to do that work successfully. Take it one at a time, but make written procedures a priority in your business. The results will surprise you

6. Hiring on the Fly
Are you quick to hire and slow to fire? That phrase describes many small businesses. A strong team of people to support your operations is certainly important, but only if they are the right people. There are proven hiring systems and tools, including a job description and clear goals, to help small businesses attract and retain quality people. Always hire with a purpose, invest in training, commit to developing your team and be willing to let go of those who don’t fit.

Which of these mistakes are impacting your profit and growth? Make it a priority to fix them, one at a time if necessary. The sooner you do, the sooner your sales and profit will grow.

4 Reasons Why Small Businesses Fail

July 16th, 2012

It is no longer news that 99% of all new business ventures fail in the first ten years. Since the dream of every entrepreneur is to build a successful business, here are, tactfully highlighted, 4 major reasons why small businesses fail and how you can bulletproof your business against them. Join me as I expose these business killers:

1. Poor Attention to Generating Sales:
If a business cannot attract customers, then it will fail. Closing sales is the core mission of all for-profit businesses, and yet it is the most common reason for business failures. A company’s business plan must specify the sales process. Will customers be attracted by advertising and promotion alone, or will it require salespeople to obtain business? Is the nature of the business that it will need inside or outside salespeople, or both? Will the owner or partners be the salespeople? Will salespeople need to be hired, or will the sales function be contracted out to a marketing representative company? If this basic need is not addresses and implemented successfully, the business will not be successful and will most likely fail

2. Lack Of Managerial Skill:
When a small business owner lacks the managerial skills required to drive the business to greater heights, the business is bound to fail. An entrepreneur that wants to succeed must be able to effectively handle the employees, cash flow, production line and so on, or the business owner must be able to hire a good manager to run the business.

3. Wrong Business Decisions:
This is common to everyone irrespective of your field. There are many instances where, after carrying out critical analysis on a particular situation, the entrepreneur comes up with a decision considered favorable. But on implementing that decision it backfires, and at the end of the day it results in anything from unwanted tax audits, regulatory agency compliance issues, employee resistance, unexpected customer reactions or even lawsuits.

So whenever you decide on an action to be implemented on your business, consider asking friends, business partners and professionals for advice. It is going to save you the stress of cleaning up the mess resulting from wrong business decision taken.

4. Harsh Government Economic, Fiscal And Monetary Policy:
This is a problem for both large and small businesses. As an entrepreneur, you must be on guard to bulletproof your business against the ever-changing government fiscal and monetary policies.

Since you cannot influence or alter the government’s decisions, you must be prepared to swiftly adjust your small business to align with the government rules. This will help prevent it from being hit by the adverse effect of unfavorable government policies. Instances of such government policies and effects you must keep an eye on are tax reporting and compliance matters, double taxation, duties and levies, exchange rates, policies that effect inflation, and so on.

8 Ways to Reduce the Cost of Your Small Business

July 29th, 2011

 

Cutting costs can be a great way to increase profitability, or to afford the assets essential for growing your business. The problem is, when you’re running a small business things are usually happening so quickly that you can’t take the time to analyze your spending and determine if you are really acting as wisely as you think. However, it’s more likely that a small business will experience a noticeable increase in profit due to a series of small cost-cutting strategies rather than by the acquisition of a new client.

Cost cutting strategies don’t have to be complicated; they just require that you pay attention to some of the more mundane aspects of your business.

1. Make a Budget and Stick to It
Budgeting is an inseparable component of reducing business expenses. When you don’t know exactly where the money is coming from and going to each month, you cannot make smart and effective financial decisions. A proper budget for your business is a powerful tool to reduce business costs.

2. Make Better Use of Technology
Technology can turn out to be a real money saver and can advance your business in many ways. Technologies like teleconferencing services, online payment services, open-source software and remote desktop applications make a great contribution in reducing small business costs.

For example, consider remote applications such as using the fully compatible Google Docs instead of Microsoft Office. It’s a small move that will dramatically improve efficiency. You can access Docs from anywhere and from any device. Sharing documents is much easier, so collaboration becomes even more efficient. Depending on how many employees you have, this can cut thousands of dollars or more out of your annual software expenses.

3. Shipping & Delivery Services
Shop for the best deal on your shipping and delivery services. As the amount of items you dispatch increases, ask for rate reductions from your shipping company. If they won’t reduce your rates, offer your business to other shipping companies. Shipping is very competitive and there are always rate saving deals to be made.

4. Product Stock and Business Supplies
Continually research the prices you pay for the product stock you sell to customers and the supplies you need to operate your business. Don’t compromise on quality, but keep an eye out for similar, or the same, products at lower cost. As the amount of business you do increases, ask your suppliers for discounts. Plus, ask your regular suppliers for other similar products that could satisfy your customer demand but at a lower cost. You may just stumble upon a new fast moving product line.

Whenever possible buy in bulk, not only for your product stock, but also for the items that your business uses on a continuous basis. A good way to do this is to observe which office supplies you always seem to be running out of. Shop around for the most attractive price. When you buy large amounts at once, you will usually get much larger discounts.

5. Embrace the Paperless Office
Businesses often overlook the expense incurred by having hard-copy documents. If you could reduce, even by half, the amount of paper, ink, mailing supplies, postage, etc., that your business consumes, it would surely be a noticeable amount. You don’t have to go completely paperless, and probably can’t as there are always some records and other documents that must exist in the physical world. But most need not. Surely you are already sending all your invoices by email, and the ones you receive probably don’t need to be printed out. Almost all important paperwork can be kept in digital format and stored on a computer rather than in a filing cabinet 

6. Promote Your Business Online
You are probably already marketing your business online, as that has become a crucial component in attracting customers. You’ve been building your brand and establishing your presence on the Internet ever since you set up your company website, but you need to keep going in that direction. Your money is better spent on starting a business blog, leveraging your social media properties and advertising with the appropriate online sites and tools, as opposed to the old print media methods. This will invite quick responses from new and established customers at a lower cost and a higher volume per dollar spent.

7. Premises
Your premises may be one of your most expensive overhead items. If you are just starting out, don’t lease a place of business until it’s absolutely necessary. If you can work from home, continue to do so for as long as possible. You already pay the various utilities at home, so running your business there will only increase these bills by a small percentage. Don’t add rent or mortgage payments to your expenses until it makes proper business sense. Even then, try to find a facility that minimizes your cost exposure by perhaps renting some of the space to another business or looking for a location where you may pick up some passing retail trade.

Business places are often expensive but, in many cases, you can reduce these costs to a great extent. By looking for a co-working arrangement, a sub-lease, a temporary office or temporary storage site for product inventory, or by setting-up a home office, you can reduce the cost of your premises.

8. Get an Accountant
Save money in every way possible but keep in mind that a good accountant will save you the money you pay many times over. Good businesses fail on the back of poor advice. Good businesspeople are cleaned out and demoralized by the unforgiving tax man, also due to the lack of good advice.

Even if you don’t have your accountant doing all your bookkeeping and compliance work, you should still have up-to-date information at all times. So when establishing a business use software from the start, and if you can get into the practice of recording every transaction more or less as it happens, you won’t wind up with a backlog of work to complete. The information your system provides can be used by your accountant to give you the analysis and reporting you need to make good business decisions, and should in-turn reduce your annual expense.

The Bottom Line
It’s impossible to run a business without some overhead. But these costs can be minimized or eliminated in many cases, leaving you with more profit in your pocket. The cost savings process may seem obvious, but even the best organized among us forget, or put off, our cost saving procedures. However, continually analyzing and reducing costs will not only dramatically increase the chances of your business succeeding but, if implemented on an already successful business, they will seriously increase profits.

Cool Product: myWorkTime

June 17th, 2011

myWorkTime

for iPad, iPod & iPhone
by
Tús Nua Designs

 

myWorkTime is a Task Management tool to help log and keep track of time spent on tasks. 

Tasks can be grouped by Client and by Project. The app allows for an unlimited number of Clients, Projects, Tasks and Work Logs. You can have multiple running tasks at one time, and there is even a nice feature to allow you to quickly start and stop a defined default task.

For more information visit the website: http://www.tusnuadesigns.net