How to Run Your Small Business (Instead of Having Your Small Business Run You)
Owning your own business is like going on a new adventure every day, without knowing where it will take you, what dangers you’ll face along the way, or even whether you’ll make it out alive. That last part depends mostly on the business you’re in, but hey, it can certainly feel like your small business is going to kill you, or at least get the better of you on any given day.
A very close friend of mine, who happens to own his own apparel company, came to me recently, shaken, unshaven, and obviously stressed. He began telling me how he was missing meetings, losing track of time, neglecting personal relationships, and generally forming more bad habits than he could keep up with, on account of his business was taking over his life.
I definitely related to his situation, and then started thinking about ways to help him (and other small business owner like him, myself included).
Here’s what I came up with:
Know How (and When) to Say No
Small business owners should have four legs, we scramble so much. And while the world appreciates our hustle, we often agree very hastily to much more than we can actually take on, in the hopes that we can cut a better deal here, or get more funding there.
Much of this hustle is necessary, but much of it is not. Yes, it is important to make contacts, to pitch your product, and to get funding, but missing meetings because you have too much on your plate is much more damaging to your reputation than saying no ahead of time. If you are feeling like your business is running you instead of the other way around, than examine your current commitments to see which are essential, acknowledge to yourself that it is OK to say no, and then, in the future, say no to the things that aren’t.
Plan Every Second of Your Life
No, I’m not exaggerating. What kills many small business owners is ambiguity in their schedules. Don’t allow this to happen. Get a planner, a journal, a piece of notebook paper, or a napkin — whatever it takes — and write down exactly what you have to do that week, and when you will be doing it. Zero in as microscopically as possible, to the point that you include such details as “eating ham sandwich alone at 12:05,” or “meeting with (x) investor at Starbucks on 1234 Main at 1:39pm.” Specificity in activity and time count. Don’t leave any “wiggle room”; free time is time that is unaccounted for, unless, that is, you schedule it in. See how that works? You can’t feel guilty about free time if you knew you were taking it.
This should go without saying, but often we small business owners need to hear what goes without saying, so: DO NOT VARY FROM THE SCHEDULE. Once it is written, DO IT.
Take Free Time
This is extremely important. There’s a reason the normal work week is only Monday to Friday: Neither the human body nor the human mind were designed to work 24 hours a day, 365 days a year. With that in mind, plan some free time, and even some vacation time, into your week. You will be able to focus better, and will feel more in control of your life if you do things outside of running your business, and, best of all, you will be able to run your business better when you are refreshed and thinking clearly.
By the way, after I presented my friend with these strategies, he adopted them, and while I can’t vouch for his business, I can vouch for his health and happiness, and I can say that after following my advice for a few weeks, he looked like a million dollars, and felt like it, too. And you can’t run a business if you feel like anything less.
About the Author: This is a guest post by Eliza Morgan who is a full time blogger. She specializes in writing about business credit cards. You can reach her at: elizamorgan856 at gmail dot com.
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5 Tweaks for Small Business Web Content
Google has once again tweaked its search engine functionality to put renewed stress on quality sites – and one of the criteria for quality is content that has been recently posted. If you’re a small business you aren’t going to out-design larger competitors but you can make your site more compelling with a few personalized steps. You can also bring more immediacy to your product lineup by changing the focus of your front page or your blog section on a regular basis.
1. Make your words count
By now every business professional understands that people read web pages differently than they read printed documents. It’s more accurate to say that the typical web surfer scans rather than reads. That’s why a few sentences or a brief paragraph accompanied by an image of some sort is far more effective than a page of detailed information. Brief statements that cause a site visitor to click over to a more detailed description or illustration are proven tools on a website; but you want your visitors to seek out that sort of detail rather than have no other visual introduction to your site.
2. Make your blog a promotional tool
This is not as easy as it sounds, but the idea is to have your blogger write occasionally about actual cases of product usage where the product was purchased through your site and perhaps the client received some support on putting that product to use. A few elements have to come together here: you need either someone in-house that can write or a blogger that is familiar with your market niche.
3. Put video to work
You can provide video shots of a product on display or in use. A video insert can also feature a satisfied customer, if you have local sales where you can tape customers who are a car ride away. It shouldn’t take your marketing person long to learn how to hold a camera steady and how to edit a piece so that conveys the message you want. You can use video for a knowledgeable presentation on a product as well from you or one of your employees, but stay away from the “talking head” shot. Your presenter should be working with a product or with a graphic aid of some sort.
4. Customer testimonials never hurt
Quotes from a customer who has had a positive experience are even better if they are accompanied by a visual of some sort – photo or video – illustrating your product as it has been installed or put to use. If your customer is a few states away, find one that is supportive and ask for a photo or two. Many people can take decent snapshots today with their phones.
5. Focus on quality and experience
If your business has been open for a while, you can talk about your successful growth and steady expansion of your customer base. If it’s a new business, provide some evidence of related experience so that potential customers understand your depth of knowledge in your particular commercial field.
About the author: Bob Hartzell has been writing for five years about education, business and other life essentials on a variety of websites. Much of his recent work has been about the online master’s degree and its value in career enhancement, for those who are not yet working for themselves. He lives in Maine where many a small business operates out of a converted barn or farmhouse.
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3 No Brainer (But Often Forgotten) Leadership Tips for Small Businesses
Strong leadership is important for all business owners, regardless of the size of business. However, since small business owners often have many responsibilities, effective leadership is especially important. While leadership may come easy for some, many individuals have to work hard to develop into a good leader. Fortunately, leadership can be improved upon with some hard work. Below are some tips to help you are become the best leader possible while growing a successful business.
1. Make Specific Plans
Drop your ego at the door and get to work. Don’t assume that you know everything. Having an organized plan is a smart first move. Unless a plan is in place, how can you truly budget your time effectively? Laying out procedures and identifying specific roles for each person in the business provides clarity and increased productivity for everyone involved. Since small businesses often have their employee’s working on multiple things at a time, it is important to delegate properly.
You should have both short and long-term goals that address daily, monthly and yearly aspects of running the business. Also, remember that as you business grows and changes, so too should your plans. If you’re taking a “one size fits all” approach to your business, you’re doomed to fail.
It should go without saying, but if you’re putting all this work into developing your plans, make sure you follow through with them. Too often, plans get laid out and then filed away, only to be discovered a few years later as a failed business is cleaning out its offices.
2. Keep Your Eyes on the Horizon
Thinking forward is a key characteristic of good leaders. While the day-to-day operations of the business will often consume the majority of your time, you shouldn’t lose sight of the plans you’ve outlined. The future may seem far away, but ignoring it will certainly hinder your growth. Forward-thinking can help small businesses develop longevity.
Consider creating a mission statement for the business. Such a statement is a quick reference and reminder to you and your employees of why you’re working so hard. If employees have a reason to believe in the company they work for, they’ll put out a better product with a focus on good customer relations. And speaking of customers – they’ll continue to value your business as they notice your commitment to the future. Customers want to support businesses that have a passion for what they do. Your passion is directly related to thinking forward.
3. Invest in Your Employees
While a good business starts with a passionate owner, its success depends on talented employees who will represent the business to the masses. Employees are your best resources, not only in the daily operations, but also in the promotion and growth of your company.
A good employee will be able to do his or her job with very little help from anyone. A great employee will do the job while seeking new ways to make it better and more efficient. Training your employees on proper procedures is vital. A customer’s experience will be so much better if the representative of your business appears to be competent.
There may be times when problems arise. Your relationship with your employees will determine how quickly an issue can escalate. Having an open-door policy promotes dialogue between the business owner, managers and employees. If employees are comfortable in speaking to superiors when something happens, they’ll be more likely to work through a problem rather than just blowing up.
Make sure the open door swings both ways. Seek feedback from employees and let them know that their input is valued and considered. Working together to fix problems and grow the company makes everyone invested in the business.
Following these tips will help make you a good leader while helping your small business to become successful. People want to follow good leaders, so improving upon your skills can help build your business.
About the Author: Don’t forget to invest in yourself and education like you should with your business plan. Villanova University’s online programs provide small business owners and professionals the chance to learn without having to miss work. Villanova offers leadership courses, project management courses, and other professional training programs.
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A Sunny Spot for Small Business [INFOGRAPHIC]
There’s good news on the small business front. After several months of less-than-hopeful jobs reports and economic forecasts, small businesses were looking up in September. Employment, compensation, and hours worked have all grown since August.
Employment in small business is up. More than 50,000 jobs were added since August with growth in nearly all regions of the country.
There was good news for employees too as compensation was also up. Average compensation for hourly small business employees has risen since August.
And lastly employee work hours were up in September. This is a welcome sign for the many small business employees who have seen their hours shrink during the recession.
Take a closer look…
Click for larger image
Image by: http://www.intuit.com/
Google’s Social Media For Business Draws Ever Closer But What Will it Look Like?
Facebook has been an important part of many business’ SEO and client outreach for a couple of years now.
Anyone ‘on the inside’ knows that there’s an industry expectation that your business has a Facebook profile, indeed, many TV advertising and marketing campaigns use “visit us on Facebook” rather than using their own website as the platform is ubiquitous, user friendly and the API divulges a great deal of information about the consumer which wouldn’t necessarily be available if they went directly to the web1 address. Read more
Why Your Small Business Should Not Try to Be Something it Isn’t
If you listen to the advice that many experts in small business management and marketing are preaching these days, you would have little choice but to believe that it’s a dog-eat-dog world. Small business owners trying to make a buck in this difficult economy are being encouraged to go guerrilla in their marketing, implement a host of the latest killer apps or strategies, aggressively reign in their expenses, and put up a professional, polished front that will make potential customers think they are working with one of the Big Boys, and not some unknown little pipsqueak.
Reality Lost
While it may be true that the current economic climate has made running a small business more challenging, many of these “essential” strategies, techniques, and technologies designed to beat out the next guy may be missing the mark when it comes to how they are being implemented and what the expected return will be.
But in an effort to save their companies, countless small business owners have jumped in anyway. The result: an army of almost robotic social media business profiles and activity, “professional” websites sporting the latest trends in web design and lathered with prolific professional-speak and equally professional stock photos of good-looking employees who seem a bit too happy to be at work.
Who Are You?
The problem with this is that while the unique flavor of the business ends up getting lost underneath all the “professionalism” and social media “hipness,”potential customers have quickly learned to shut out these cookie-cutter efforts. So what we have here folks is a no-win situation. Businesses aren’t attracting customers, and customers are not being allowed to see what makes a particular company a suitable match for their specific needs.
Let Your True Colors Show
Though there is certainly a time and place for making a small business appear bigger or more established then it is, such as by hiring a virtual receptionist or operating out of a business center, all these strategies should be done carefully and sparingly. Moreover, there is much to be gained by leveraging your true colors and your smallness including:
- You make your company appear more genuine
- You can more easily show off what makes your company unique
- It may be easier to attract specific market segments who will identify with your company’s image or employee makeup
- You will be more at ease since you do not have to worry as much about “slipping up” with customers
In short, though there are times to think big while running a small business, sometimes it just pays to be the small fish in the pond.
Author Bio: Adam Gottlieb is a small business owner, freelance writer, and small business consultant with over ten years experience helping small and home-based businesses improve their image, increase sales and better manage their resources (both the animate and inanimate ones). He is currently the owner and senior editor of the The Frugal Entrepreneur Small Business Blog providing frugal business tips, tools, and resources to small and home-based business owners.
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12 Ways to Determine Costs for Your Startup
If you’re starting a company of your own, what methods would you use to define how much your initial investment should be? Read more
Five Regulations Entrepreneurs and New Business Owners Should Review
With a seemingly infinite number of legal regulations to abide by, starting up a new business for the first time can be daunting for entrepreneurs. Federal, state, and local government agencies set certain requirements so that they can regulate professional industries to protect consumers and prevent fraud. The more you know about the process before you begin, the better prepared you will be to jump through all those legal hoops. A number of these legally enforced regulations require the business owner to pay additional fees that will need to be budgeted into opening expenses.
- Application for Registration of Name
Chances are one of the first things you thought about when planning your new enterprise was what you would call it. You’ll need to reserve and register your name with the state(s) in which you plan to do business so that it can be recognized officially. In some states, such as New Jersey, applicants must list three potential names in case another entity has already registered their top choice. Whoever submits and signs the application will have ownership of the reserved name. These applications are also used to transfer business names to new owners or enterprises. The exact fee varies, but is oftentimes around $25 to $50. - Seller’s Permit
States require any individuals or businesses to obtain a seller’s permit if they intend to sell or lease merchandise, cars, or any other tangible personal property. The permit allows the entity to sell items as retail or wholesale. Those applying for a withstanding business should apply for a regular permit whereas those planning to operate a seasonal business, like a fireworks stand, can apply for a temporary permit that will be valid for 90 days. - Request for Tax Clearance
A tax clearance is a review of financial records to determine if an entity is compliant with all state tax laws. If your enterprise will have employees that require you to withhold taxes, you will have to request a tax clearance to ensure you are trustworthy enough to submit the necessary financial reports accurately. Business owners must meet certain obligations under state law that require them to file tax returns on time and with the correct payment amount, and tax clearances help ensure this in advance. - Surety Bonds
Virtually all industries require new professionals to purchase a surety bond before issuing them a business license to operate within the state. Surety bonds act as a preventative measure to ensure that professionals will follow all licensing and industry regulations applicable to their positions. There are thousands of surety bonds available, and their costs vary based on the state’s regulations for the industry and specific profession. For example, due to the nature of their work, a contractor getting a surety bond in California for a multi-million dollar construction project will pay a much higher fee than used auto dealer in Missouri who doesn’t do high volume sales. - Partnership Registrations
If you’re going into business with a friend or other industry professional, there are a number of steps that you will need to complete in order to operate legally within any given state. Depending on the nature of your partnership, i.e. limited partnership or limited liability partnership, you will need to meet different requirements. Establishing a partnership for your business can be beneficial, but only if you do so in congruence with the law.
This article was written by Kristen Bradley from SuretyBonds.com, an agency that provides surety bonds to professionals across the nation. SuretyBonds.com helps entrepreneurs meet licensing requirements every day. The agency offers advice to new business owners to help them open their business as soon as possible.
Photo Credit: robnguyen01
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Top Ten Teamwork Tips
Whatever the business you run and whatever position you currently occupy, you should always keep in mind that you are working in a team. Teamwork is one of the keys to success in any kind of business and there is a lot to learn. Looking back at my 2,5 year experience of work in Customer Service at one web-hosting company I now clearly realize many things, some of which I would like to share with you.
1. Start With Yourself
When you are being criticized by your management or just see that something is going wrong about the business you are working in – try to think what you can personally do to make the things better. Sure, you should not blame yourself for all the problems, but there is always room for improvement.
2. No “I” or “Me” – Just “We” and “Us”
There is no place for egoism in any team. Overestimated ambitions and selfish approach may ruin everything. Therefore, any time some organizational questions are being discussed, you should first think what profit it might bring to your team, not to you personally – even if it is not going to coincide with your own interests.
3. Your Team is Wider Than You Think
Sometimes people, who work in a big company, forget about other departments. They consider their home department to be their only team and work within it only. This is a mistake, no one should make – the Team is always wider – it involves everyone and makes everyone take as much care as possible of their business. You should communicate and co-operate with other departments members actively, since it is a common responsibility and success you share.
4. Gain Knowledge – Share Knowledge
If the company’s policy gets changed overnight – I’m not sure each team member will learn it at once. If you find out anything new regarding your company, your target market, your competitors – share this knowledge, so that there were no surprises. Such fast propagation of news may very well encourage new ideas – isn’t it what you need?
5. Do Not Hide Your Mistakes
To err is completely human, so you should not be afraid of the mistakes you may make and of course, you should never hide them. Each mistake you make saves everyone else from repeating it – this is the very case, when you should consider team profit higher than yours. Such lessons do improve team knowledgebase and highlight weak points.
6. Impersonalize
Whatever your relationship with colleagues is, you should always take everything impersonal. Being good or not that good person and being good or not that good worker are different things – and you should always keep this difference in mind. When a worker makes a mistake, you shouldn’t think of what a nice guy he is – there was an issue and you have to make sure it will not reoccur… and vice versa – if a person you do not like much deserves appreciation – you should appreciate him or her – because you appreciate the work your colleague did.
7. Go Informal
Schools, colleges, offices… people express themselves only partially in such formal places. If you want to co-operate with your colleagues more tightly and productively, you should understand each other better. This is where corporate parties come in handy – informal atmosphere makes its business – you start feeling more open and see others feeling the same – perfect time for making friends and learning each other closer… Next day is not the hangover, what you are going to feel – you are going to feel trusting others more and being more trusted.
8. Build Your Own Team Within The Team
This may sound funny, but this is exactly what you should do. Many minor tasks require sub-grouping. Do not wait for someone to choose you – be a volunteer and pick your own A Team, you are going to trust most and be proud of. Your leadership will be noticed and who knows… maybe one day you get your promotion.
9. Stay Protective
If you are fine with acknowledging your own mistake, try yourself out in taking the team’s blame on you solely. And it is not acting like a hero – if you a capable of doing it, it means that your conscious is team-oriented, that you will never hide behind the new guy’s back or assign someone else’s achievements.
10. Run a “Turn a Blind Eye” Test
A team is then perfectly built, when each its member can carry out the assigned tasks without delays, being under no control. If you are a manager, a team leader, or just one of the most active workers, you can temporarily step aside to watch the things being done without supervision. If everything is fine and your team does what you expected from each of its member, you will see problems being solved on their own – isn’t it a miracle? No, it is your achievement – the result of your brilliant work, which you should keep up.
About the Author: Arkadij Shkolnik is the current administrator and author of SiteValley.com. SiteValley.com is a reliable Cheap Web Hosting provider that can help you meet your online business challenges. They exist to provide the highest levels of quality and service in the highly specialized area of Internet hosting and deliver value and performance to our customers.
Photo Credit: psd
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5 Ways to Save Money on Your Small Business Website
If you have a website of your own, chance are you are paying fees out every month or year to have the site.
While conducting research recently for reseller hosting company 34SP.com, I discovered that website fees can force site owners to abandon their sites. Often, the burden of paying monthly fees takes a toll on the webmaster. Sometimes the webmaster simply closes down the site rather than sustain the loss of money every month.
If you have a website, and if you pay fees to maintain it – you may want to consider these 5 easy steps to save money on your website right now.
1. Pay less for your domain name – While you definitely need to have a distinctive domain name and brand, you don’t need to pay top dollar for the privilege. Here’s a good example – if you have your domain name registered with Register.com you’ll pay $35.00 per year for a .com domain name. That same domain name if registered at a discount registrar like GoDaddy.com will cost just $10.69. That’s a price reduction and savings of nearly 70 percent. Imagine the savings if you have multiple domain names for your websites.
2. Pay less for your website hosting – You will absolutely need great web hosting as well. However, why pay for what you don’t need? If you run a straightforward WordPress website, then you shouldn’t need a hosting plan that charges $89.95 per month (I found this plan doing a bit of research into pricing). Great web hosting is available for less than $15 per month. Shop around and start saving – especially if your paying anything over $50 per month for a basic hosting setup.
3. Get an advertiser (or two) – No matter what the topic or content on your website, it is very likely that there is an advertiser willing to pay real money to get in front of your audience. If you are sales-minded you can likely figure out which niche you serve and approach a few companies about becoming an advertiser. Don’t be discouraged by hearing the word ”no”. This is simply necessary to get to the ”yes” that the ideal advertiser will say. You could also consider getting paid by a third party to advertise on your website. For example both Pay per post and reviewme will pay anywhere from a few dollars up to hundreds for a site review or blog post on the subject of their paying advertisers. See their websites for details.
4. Put AdSense ads on your website – Another great option to get paid ads on your website is to use Google’s AdSense program for publishers. The system is ubiquitous around the Internet and requires no selling at all by the website owner. If fact, Google will even figure out which ads perform best on your site. You simply sign up for the program and then put some AdSense code on your website. The ads appear automatically. You can find all the details here: http://www.google.com/services/adsense_tour/index.html.
5. Ask for donations – Depending on your audience and site content, it may be appropriate for you to ask for donations to keep your website operating. Large scale sites like Wikipedia operate this way, as do smaller non-profit sites. PayPal has made the process very easy with their pre-configured donation buttons. Similar to AdWords, to get the donate button on your site you simply cut and paste html provided by PayPal into your website. Once set up, you can accept donations made with credit cards, debit cards, or PayPal. There are no set up fees with the donate button – but you will pay a transaction fee for each donation. See the PayPal website for details.
Good luck with your website, and don’t forget that a penny saved on your website is a penny earned.
About the Author:Derek Vaughan is a web hosting industry veteran, marketing consultant and writer. Mr. Vaughan has architected the marketing growth of several prominent web hosting success stories leading to acquisition including Affinity Internet, Inc., Aplus.Net and HostMySite.com. Prior to his entry into the web hosting industry, Mr. Vaughan was responsible for online marketing at The Walt Disney Company where he marketed ecommerce for the ESPN.com and NASCAR.com brands. Mr. Vaughan received his M.B.A. from Vanderbilt University and currently serves on the HostingCon Advisory Board.
Photo Credit:Alan Cleaver
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Never Underestimate the Power of Hype for Your New Business
These days the word ‘hype’ is frequently given negative connotations. It is true that one interpretation of the term is an excessive or exaggerated claim of a product or service’s importance, but originally the term was used to describe more cleverly worked promotion and fostering of positive word-of-mouth.
The TV Teaser
The latter definition can be seen working extremely well in modern television, where yet-to-be-aired TV shows will play very short adverts or give 5 second snippets of a show, just to get people talking about it.
This, often coupled with poster and viral campaigns promoting messages such as “its coming!”, help to get the rumour mill going into overdrive.
Play on Curiosity
Humans are the most curious animals on earth (perhaps second to cats) and not knowing what something means, especially when we seeing clues all over the place, drives us crazy. We start talking to friends about what it all means, start Googling clues that the ads have given us and even start writing blogs about what we think might be “coming”.
Your new business venture might not have the funds or the reach to carry out a ‘hype’ campaign to the same scale, but you can definitely adopt some of the principles to get your new business venture into people’s consciousness before you even launch.
Here is just one way that you can generate hype with a relatively low budget.
Create a mystery website, and then promote it.
Chances are you will at some stage have a full website built for you business that will outline all your products or services, as well as contact details and news etc. Before you set this live however, why not put a very simple, yet intriguing 1-page site live that just hints at what people can expect soon.
You might want to use interesting imagery, a tag line or even some poetry to get visitors wondering what exactly your business is all about. A great idea is to place 2-3 short video clips on the page that don’t give too much away, but just add to the intrigue.
Videos are a rich media that people like to analyse more than copy and are often distributed better. If you’re really clever you can include subtle messages or website addresses in your videos that will encourage people to dig deeper.
Take a look at this video for Derren Brown’s “The Events” which aired last year in the UK on Channel 4.
The program was all about trickery, illusion and subliminal mind control and the advert alone built up so much hype, Derren received record viewing figures for the show when it aired. Here is another video speculating what the advert’s hidden messages where:
Even if you don’t include video on your website, you can still get one produced pretty cheaply that you can use to create something of a viral campaign.
The video doesn’t need to be professional produced, as an amateurish feel often adds to its draw. Promote the video on YouTube, but also get your messages out on platforms such as Twitter, Facebook, Digg, Reddit and as many other social sites as you can.
If you work the whole process correctly you can generate so much buzz surrounding your business that when it comes to launch time you will hit the ground running, and stand the best chance of making it through the most difficult early stages where most new companies struggle.
BIO: Duncan is an internet marketer and business consultant representing a London-based spa days company. He often blogs about top marketing techniques and getting the best ROI from promotional activities.
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Photo Credit: Alex Cameron
Outsourcing and the Small Business
In this guest post Brenda Harris shares her thoughts on the pros and cons of outsourcing for the small business owner.
It’s an issue that is kicking up a storm today because of the high rate of unemployment – President Obama has on his agenda the issue of moving jobs back to the USA from India, China and other countries where they’ve been outsourced to take advantage of low costs and a capable workforce.
It’s the larger corporations that are now in the line of fire – they’re being called tax evaders who have moved much of their operations overseas so that they’re able to make huge profits. But if you take a closer look at this phenomenon called outsourcing, you’ll find that almost all businesses are guilty of it at some time or the other.
Outsourcing is Out There
For example, banks outsource debt collection to private agencies or individuals who buy the loans from them at a slightly lower rate. Telecommunication and other service-oriented companies outsource their customer service and troubleshooting operations to smaller organizations. And even the U.S. Defense Department is guilty of outsourcing auxiliary military duties to contractors in Afghanistan so that US military personnel are free to take care of “core” tasks.
Outsource Something, Not Everything
So even if you’re a small company, there’s no guarantee that you’re never going to outsource any of your operations. In fact, if you’re a small business, it makes sense to outsource, especially those tasks that are routine and not tied explicitly to the operations of your company. Most small organizations outsource their annual audit and tax preparation or their technical programming/coding process. This is because they don’t have customized needs for these operations, so they’re bound to get them cheaper from companies who are dedicated to tax preparation and offering technological solutions for fields like customer service, business intelligence, data mining and so on.
Be Selective
One aspect that most companies forget to take into consideration when they outsource is to check the difficulty of the integrating the result of the task they are delegating to other organizations with the entirety of their own operations. The task itself may not be that hard, but when the finished product is in, it may have compatibility issues with the rest of the operations of the organization.
As a simple example, if you outsource your customer service and later find that the company who takes care of this aspect for you is at the receiving end of a host of negative criticism, it is your organization that loses face and repute, not the one that you outsourced your customer service operations to.
Final Word
In general, it is not wise to outsource critical or sensitive operations – those that are essential to the existence and survival of a company, and those that require the highest level of security. Also, if you don’t manage your outsourced operations and ensure that they are compatible with your in-house operations and that quality is at the highest level, all the cost benefits that you gain through outsourcing tend to be lost in the resultant confusion.
This guest post is contributed by Brenda Harris, who writes on the topic of executive mba programs . She can be reached at her email id: brenda.harris91@gmail.com .
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Photo Credit: foundphotoslj
10 New Year Revolutions
Below is a guest post from author, speaker, and business coach Andy Hanselman, who says forget New Year resolutions and start thinking New Year revolutions in 2010.
January is the time for New Year Resolutions. Well here are 10 ideas for ‘New Year Revolutions’.
Not a list of ‘do’s and don’ts, but some simple and practical things to consider that can help ‘Revolutionise’ your approach in 2010, which the evidence suggests is going to be a tough one for many of us. See it as a menu, not a recipe. Pick the stuff (or variations of it) that appeals and could work for you.
Here they are, in no particular order…
10 ‘Revolutions’ for 2010
1. Get That ‘Vision Thing’
The evidence suggests that in tougher times your people may well be looking to you for focus and drive. As well as the traditional 12 month ‘Vision Thing’, you may also need a short term one too. What are your key business priorities for the coming months? Does everyone know what they are and what they need to do to achieve them? Your job is to let them know, and get them on board.
2. Work On ‘Dialogue’, not Diatribes
Focus on creating ‘conversations’ with your people in 2010. Ask for their opinions, views and ideas. This is not just about memo’s and emails and meetings. Aim to ‘engage’ your people more this year. People are often looking for security and reassurance in tougher times. That means listening, and reacting and having ‘ongoing’ discussions on things they say are important.
3. Stand In Your Own Queues
Regularly spend time in 2010 ‘at the sharp end’. What are you like to do business with? Find out what’s stopping your people delivering what customers want. How can you make it easier?
4. Don’t Just ‘Think’ Out Of The Box – GET Out Of It
It’s easy to get drawn down into the ‘nitty gritty’ of daily business. Try to create time to make visits to companies, conferences, events and seminars (even some that have nothing to do with your industry). Read a magazine or journal, surf websites from sectors you know nothing about. The point? To get a different view and perspective. Who knows what you’ll learn?
5. Think In ‘3D’
That means being ‘Dramatically and Demonstrably Different’. What makes your business stand out? How do you demonstrate it? Remember, it’s not what you say, it’s what you do. Explore ways in 2010 to demonstrate your competitive edge in everything that you do, particularly to your existing customers who will no doubt be getting mailshots, calls and visits from your competitors desperately looking for business.
6. Value Your Values
Evidence suggests that customers are engaging more with businesses they believe in, they trust and respect. What does your business really ‘stand for’? Work on establishing, communicating and demonstrating your values. Not a list of weasly words and phrases, but a set of principles you believe in and that differentiate your business. Why not create a ‘manifesto’ that outlines what your business really is about?
7. Stand Out And Deliver
Actions speak louder than words. Concentrate on consistency. In 2010 focus everyone on creating a ‘great experience’. ‘Champion’ those in your team who ‘go the extra mile’ and deliver the goods. ‘Challenge’ those who don’t. There’s no room for ‘passengers’ in times like these.
8. Maximise Your Customer Relationships
When things slow down, it’s tempting to get out there knocking on doors and chasing ‘new’ business. Obviously, this can be very important, but I see too many businesses doing it at the expense of their existing customer relationships. Now is the time to get closer and focussed. Who are the key people you need to be getting closer to?
9. Be Visible
What are you like as role model when it comes to your key priorities? In 2010, ensure that you live your values, demonstrate your commitment to those key priorities and make sure that your actions reinforce this. That might mean taking ‘symbolic’ actions for emphasis. Not PR stunts, but genuine activities that ensure that your people know what’s high on the agenda. Ensure that in these tougher conditions no one is under any doubt about what you see as important.
10. ‘Just Do It’
When it comes to thriving or surviving, don’t just talk about it, just do it. It’s as simple as that. Commit to making 2010 your year for action, and…..’Do Something’!
Best wishes for this New Year and have a great and successful 2010!
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Andy has developed a reputation for his innovative, inspirational and stimulating approach. This is reflected in his training and motivational seminars, and is in demand as a speaker at team building events, seminars and conferences up and down the country. Having presented to over twenty thousand business leaders and decision makers Andy is recognised for his engaging, humorous, and down to earth approach. He has been recognised by Enterprise Magazine as a Future Top 100 Entrepreneur. You can reach him at AndyHanselman.com
Photo Credit: Sukanto Debnath
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Top 10 Small Business List Posts of 2009
List pots have always been some of our most popular articles here at SmallBizBee.com, so what better way to showcase the the best of the best for 2009 than with a list post? Pure genius right?
The Best of the Best Lists of 2009
So here it is, the ultimate list, list. The list inside a list if you will.
Whatever you call it you’ll find some excellent advice, tips, suggestions and resources to use in your businesses in 2010!
85 Absolutely Free Online Business Classes
Our most read article of all time here at Smallbizbee.com, and for good reason. It’s chock full of business classes you can take online for free – how can you beat that? A big time education that once cost $1,000′s of dollars can now be had for free via the wonders of the Internet.
105 Absolutely Free Online Business Videos and Lectures
For the visual learners who still want to cash in on some free education, this post links to 105 free business related videos and lectures. It’s like taking a class at Harvard without having to wear a cardigan.
10 Ways to Market Your Business When You’re Broke
Short on cash but looking for ways to spread the word about your business? This one is for you.
10 Ways to Advertise Your Business On the Cheap
2009 was a tough year for a lot of us, it’s no wonder you all were looking for even more ways to get the most out of every advertising dollar.
13 Ways to Win Customers for Free
Matt Heinz of Heinz Marketingcontributed this one. Matt shares 13 customer acquisition strategies that won’t cost you a dime.
10 Tools Every Small Business Marketer Should Have on Hand
In this guest post Hannah Watson shared with us her top 10 tools every (busy) small business marketer needs, to help us get more done in less time.
9 Powerful SEO Tips for your Small Business Website
The catch phrase for this extremely popular post became “If you don’t know your CEO from your SEO, this post is for you!” Contributed by David Gurevich.
Over 90 Field Tested Guerrilla Marketing Tactics
Guerrilla Marketing just sounds cool…not only that, it’s effective. Here’s 90 guerrilla marketing tactics to get you started.
5 Things They Don’t Teach You in Business School About Being an Entrepreneur
I went to business school. Later in life I became an entrepreneur. Here’s five things I think they missed.
20 Surefire Ways to Use Twitter for Business
Twitter for business, we talked a lot about it in the last year and this post captivated thousands of readers. Great tips to get you on track to using Twitter for your biz.
Conclusion
So there you have it, our most popular list post of 2009 and some of the most read, linked to, shared, and commented on articles we’ve ever published.
As I look over these posts it’s no wonder they are so popular. They are bite sized pieces of actionable small business tips, right at your finger tips – now that’s a sweet deal! Let’s all take a moment and thank Al Gore for inventing the internet.
Managing Your Cash
Below is the final article in our $150 competition sponsored by BizSugar.com. It’s submitted by Cathy Iconis, who provides Virtual CFO & Consulting services. Good luck to everyone who contributed an article!
We all know that cash is critical to running a business, no matter the size. But as small businesses, we generally have less cash than the big guys, so we need to know how best to manage it. The first step is to better understand how much cash you have and how you are using it.
First, I want you to know that just because you have profit at the end of the day/month/year, that doesn’t mean you have more cash. The Income Statement (or Profit & Loss) is a tricky thing. It shows you how much revenue you have for the period and the costs related to just those revenues. It might not include cash spent on a large investment, money you received from an investor, or even disbursements you’ve made to yourself as the owner.
The best way to understand how much cash you have and how you are using it is to look at your Cash Flow Statement. It is a simple report giving a ton of information in these four parts:
- Operating Activities: How much cash you have at the end of the period from your daily operations
- Investing Activities: Cash outflows from purchasing a new asset or making loans to vendors or customers
- Financing Activities: Includes cash you have received from banks or owners or cash you’ve taken out of the business
- Cash at End of Period: How much money you have at the end of the day, net of the above
The Cash Flow Statement is fairly easy to get your hands on. Even businesses running on QuickBooks can run a quick Cash Flow Statement from their Reports menu. You can also ask your accountant to supply you with one when they review your books.
Now that you know how much cash you have and where it is going, spend some time thinking about the best uses for your cash. If you are eating up all of your cash from daily operations, then you aren’t able to invest in assets that could potentially help grow your business, like an additional server to give you added capacity so you can have more customers. Here are some ways to manage your cash:
- Budgets: Budgets can save you money and time! In a few hours, you can create a simple budget. Just look at what you spent last year and adjust any items that you don’t expect in the future. Enter your budget in your accounting system. Then run a report to see if you are on track. Easy as pie!
- Dashboards: These are just graphs, charts, or some other visual representation of your financial data. We all know it is far easier to “see” your company when you are looking at a picture. You can visually compare your data: you can see how you are doing versus last month, see what you are spending the most on, or even see which customer is giving you the most money.
All in all, it is important for you to manage your cash. This means understanding how much you have, where you are using it, and how to track it. I challenge you to move past going from hand to mouth and start managing your cash so you can grow your business!
If you have any questions or want to learn more about how you can better manage your cash, visit my website, www.CathyIconis.com.
