Goal setting tips for your small business

With a new year now on the horizon, it's timely to reflect on some tips to help your goal setting for 2012 be as effective as possible.

You know that setting goals provides you with a reassuring sense of direction - which is essential during times of uncertainty. With clear goals and priorities you become less vulnerable to impulsive decisions or changing winds. You steer your course through stormy weather with much greater composure and purpose.

1. Review the major achievements, disappointments and lessons for your small business in 2011 - this may influence how you approach 2012. As Churchill said "Those who fail to learn from history are forever doomed to repeat it's failures"
2. Ensure you have established your long term goals and your broader business strategy before defining your 2012 goals
3. Write down and record your goals - this is a display of more commitment
4. Be mindful of the so-called SMART goal setting principles. S for setting some Stretch goals for the business (ie. they pose some challenge for you); M for Measurable, in other words they will have some mile-stomes attached to them which allow you to track your on-going progress; A for Achievable - you see them as within reach and "do-able"; R for Resources - you either currently possess or can obtain the resources necessary to achieve the goal; T for time-frame - you set a deadline to have competed the goal by (so that it's less likely to drag on ...... a deadline helps create a sense of some urgency for goal completion)
5.  Ensure a sense of balance and set goals right across your business - not just focused purely on sales and revenue targets. For example, think about whether you might set goals in areas such as ... Upgrading technology or business systems . Staff training to improve skills in the team, Broadening your mix of customers (if you have too many eggs in one basket), Improving your network of contacts, Considering sponsorships to lift your business profile in your local community, Enrolling in a business management course to polish your own skills, Reductions in staff sick leave or absenteeism, Improve relationships with existing suppliers - or source new ones .......
6. Be willing to re-assess your goals if circumstances change too drastically from when they were first set. Flexibility is just as important a business quality as determination. If your store were the victim of floods for example, then your goal of enrolling in that business course may have to be delayed in the light of the more pressing priority of focusing upon store refurbishment and recovery.

But when all is said and done with goal setting, what will ultimately count is the discipline you have with your follow-through.  Perhaps you can recall times in the past when you've been full of enthusiasm and energy, establishing New Year Resolutions for yourself, vowing to change bad habits or to commence a new diet, or to start jogging in the mornings....... And yet within the space of a few weeks you find yourself back to "same old, same old" and those resolutions are a distant memory.

A great article with some good advice on following-through with goals can be found at Performance Development Australia And if you are considering any type of self-improvement goal for yourself, have a look at Personal Development for more resources and ideas

Recruitment Tips for Small Business

When you run a small business, recruiting new staff can be a real hassle.

Whether you're recruiting because someone has resigned, or because the business is expanding, you know it's going to take precious time. And therefore, all the more reason to make sure you get it right. Here's seven recruitment tips that might take some of the pain from the process ......

1. Recruitment agency. It's tempting to go through a recruitment agency, particularly if there is a local one and you've worked with them before. The advantage is they can save you a lot of time in advertising, going through heaps of applications, and of course in interviewing. They will send you perhaps three different people who you can select from. The disadvantage can be the cost - generally it is negotiable, and between ten and twenty percent of the annual salary of the position. Often, there can be a way of structuring the payment to give you some protection that the person will work out. For example, you might pay the agency half of the fee on appointment of the person to the position, and the remaining half of the payment might be due on successful completion by the employee of the probationary period (ie. after three months)
2. Tap the networks of existing staff. Sometimes, you may find that your current employees may know of friends or family (?) who have the right experience and are looking for a job. People with a good work ethic will often associate with others who share the same values
3. Let your customers and suppliers know you have a vacancy. You obviously can save on advertising if you're able to  source applicants yourself
4. Involve your other staff in the hiring  process. As already mentioned, they may know someone who might be appropriate, but also involve them in the actual interviews. After all, the new employee needs to fit in well with your existing team. There's not a lot of places to hide in a small business, if people don't get along. And if your current staff participate in the selection decision, they'll have more ownership in ensuring the appointment of the new employee works out.
5. Don't hire someone because you like them. Yes, this is important of course - but also ensure they have the right skills, attitude and experience that is needed for the job. Avoid any impulsive decisions - make sure you do thorough background and referee checks. You might want to do a credit check - and also see if they have a Facebook page, and what that might reveal about them
6. Telephone screening interview. Sometimes, there will be applications that you read and it's quite easy to decide that the person is worth interviewing, and other times there are applications you read where it's evident the person does not meet your requirements. However, there will be occasions when reading the application leaves you uncertain, and so you should consider conducting a short phone screening interview. This can help save both you and the applicant time, by clearing up some grey areas on their application - and help you make a more confident decision about whether the applicant should be invited to an in-person interview
7. If in doubt, it's safer not to hire. Keep looking ..... If the problem is that you aren't getting enough applicants to choose from, well either change where you are fishing, or change the bait. In other words, you should perhaps consider whether you need to change the ad you're using so as to better promote the position or your business profile. Or change where you are advertising the vacancy

I hope these recruitment tips help. You will also find some great recruitment and interviewing tips at How To Conduct The Job Interview - in particular good advice on how to prepare . Also, Interview Questions To Ask gives great examples of questions to assess an applicants customer service and organisational skills

Here's a short video clip that explains the potential use of telephone screening to help with recruitment

Problem Solving Tips for Small Business

Things don't always go smoothly in small business, do they?  

For example, perhaps there‘s been an unexpected drop in weekly sales, or over-spending on the monthly budgeted expenses, or you're running late in completing an important job for a customer . Or maybe you/ve heard one of your major accounts is talking with a competitor

Problem solving skills are a crucial capability for the small business owner - and yet problem solving is something that you may do instinctively, rather than using any particular method or structured approach. If you think there are times when you could do this better, then here are some problem solving tips to consider ....

1. Step back and carefully assess the situation. How big a problem is it really? What priority is it, given other issues you might be facing - do you need to address it now?
2. Before acting, investigate the situation. Make sure you have all the facts and information about the issue, so that you have a complete picture, rather than just a few pieces of the jigsaw. This way, you're much less likely to jump to the wrong conclusion - and you're more likely to have identified the caise of the problem.
3. Take time to consider all of your options. The first solution that comes to mind is not necessarily the best one. Be willing to seek advice or counsel from others whom you respect, they may have faced similar problems
4. If you've thought everything through, gathered all the information, weighed up all your options - when you do eventually decide what to do, act with confidence. This is not the time to second-guess or doubt yourself. Sometimes, the solution might not have been perfect - but as long as it moves things forward, then that's an improvement.You can always make some adjustments to your actions along the way.

For more useful advice, visit  Problem Solving Tips

The Small Business Trap

Are you working on your business, or in your business? This was the provocative question that Michael Gerber posed in his classic best-selling book, The E-Myth.

He explained that many people were motivated to start up a small business because they were fed up working for someone else and believed that being good at their craft, they would make more money and have more independence working for themselves.

This is what Gerber termed the Myth of the Entrepreneur ....... because the reality was often very different. Many small business owners would find themselves working long hours - in the pursuit of profits that too often proved elusive.

In the more recent edition of the book, The E-Myth Revisited, Gerber explains that the small business owner must be capable of performing three different roles - the Technician, the Entrepreneur and the Manager.

Usually the owner is naturally a technician, but if he or she is going to grow the business, they need to become an entrepreneur and listen to their customers, assess their competition and recognise where the opportunity gaps in the market may be. In the role of manager, they need to establish efficient systems, procedures and processes that will enable the business to become less reliant upon the owner. This is what working on the business means, but to do so requires working less in the business.

Learning to let go of the technical work, gradually training others to be able to do this work and supporting them with adequate documented procedures - this is one of the keys to growing your business successfully. By systemising your business with documented procedures, Gerber says you help to ensure consistency in the delivery of your service or product. You also establish a framework that potentially lends your small business to a franchising structure - and an expansion of your revenue stream

You might also like to have a look at Common Small Business Pitfalls

Small Business Tips - Managing your cash flow

Managing your cash flow

How to get control of your cash flow

If you're running a small business, then you know how imperative it is to effectively manage cash-flow,, the lifeblood of any healthy enterprise. Cash flow difficulties are identified as one of the most common sources of stress and anxiety among small business owners.

It may be timely to review nine essential disciplines around good cash-flow management ....

1. Understand and plan for your natural business cycles, where there are predictable seasonal ebbs and flows to your business finances. Like a squirrel, have the discipline to store away some of that cash-flow to draw upon during quieter times.
2. Offer as many ways as possible for your customer to pay, making it easy for them to do so quickly (cash on delivery, EFT, various credit cards accepted, cheque with ID)
3. Late payments from your customers have a flow-on effect to your ability to pay your bills. So, either offer an incentive to your customers to pay before the due time (eg 5% discount), or ensure that you politely follow-up at the first instance of an overdue payment (be careful to avoid any heavy-handed approach with this - although with regular late payers you might need to consider charging late payment penalty fees being charged)
4. Offer a discount for cash up-front payment, or at least request a significant deposit when you are receiving payment on a later delivery
5. Try and build a relationship with your bank. Explain your business cycles and talk about setting up a special overdraft facility that can ease your cash flow stresses and carry you through the tough times
6. If your customers do not pay at point of sale, ensure that you send your invoice out on the day of purchase, rather than at the end of the month for example. Also ensure you do a credit check before taking on a new customer making a substantial purchase
7. Seek to take advantage of economies of scale when you purchase. There may be opportunities to purchase some goods in greater volume by forming a purchasing alliance with a business association, or with similar although not competing businesses in your local area. For example, if you needed to purchase new office furniture, .maybe there are some small businesses around you who can join with you to benefit from discounts through greater buying power.
8. And let's not forget the simple and essential rule for small business, avoid spending more than you earn. Yes, there will be times you need to invest in significant equipment or technology upgrades, but make sure such an outlay is carefully evaluated against the cost-saving efficiencies that it will produce, or weighed up against a realistic financial assessment of new revenue streams that the purchase will generate for your business. In the latter case, although you need to generally have an optimistic outlook as an entrepreneur, you are usually better served by adopting a conservative approach with your revenue forward projections. If need be, ask your accountant
9. The only way you increase your profit margin us to increase the volume of your sales, reduce the cost of your sales or increase your prices - whilst obviously keeping a close eye on your competition.

And a fantastic article titled the E-Myth - Why Businesses Fail is fascinating reading to help understand the complete skill set needed by anyone starting up in business. Research into the reasons for small business failure have revealed that quite often the business is initially founded by a person with strong technical skills (a printer, a builder, a mechanic, a baker, a lawyer..) who is highly skilled in their craft, but often do not possess or do not develop the additional skills required to run a business.

The technician must learn to become an entrepreneur (customer and market focused) as well as a manager (process and procedure focused) if they are going to succeed in building a business that can run independently of them.

Small Business - The Chistmas break-up party

There was an interesting article recently in a Small Business blog that offered some useful reminders on holding the annual Christmas Party. The article noted that the Christmas function is a perfect way to show your staff how much you have appreciated their efforts throughout the year.

Thinking about what your staff might actually appreciate in return is important, if the function is going to serve the purpose of helping to strengthen morale and team spirit. The Christmas function for your business should be an event that is personalised, relaxed and enjoyable. Here are some tips on how to plan a great work event: for your small business ....

1. Try not to be a scrooge

We’ve all got at least one horror work Christmas party story, where there was nowhere near enough to eat, nibble or drink. Yes, it's been a tough year for those of us in small business, however try and be as generous as you can afford - or maybe consider choosing something else instead of a Christmas break-up function..

2. Make it personal

Memorable gifts for your employees do not need to cost a fortune; it’s the thought behind it that counts. You must plan well ahead so as to allow extra time to purchase personalized gifts - it might be a subscription to their favourite magazine, or a family movie pass, or tickets to a concert. Reflect on what your staff like to talk about during the year. Make sure they haven’t already gotten it for themselves before holiday time, and if not then you might buy it for their holiday gift.

3. Be responsible with the drinks

Make sure any alcohol at your event is served responsibly. Choose a safe venue with access to public transport, perhaps provide cab vouchers or encourage nominated ‘non-drinking’ drivers. Ensure that serving staff at the function are briefed on limiting or denying alcohol to intoxicated staff and make sure that you yourself set the right example with the consumption of alcohol. Many of us have heard stories of the intoxicated boss who turned into a ridiculous buffoon after a few too many Christmas drinks.

4. Plan for both your staff and your budget

Consider what your staff would enjoy - however,obviously you must plan within your budget and what your business can afford.  From experience, staff tend to be more interested in a family friendly, open and relaxed affair than a more exclusive event.

With the above suggestions in mind, I think you'll find a well-organised Christmas function that helps to reward staff for their efforts and loyalty during the year is a sound business  investment for retaining a motivated workforce for next year. All the very best to you for Christmas - and thanks for visiting our blog.

By the way, if you're after some more ideas that might help in running your business, perhaps visit Business Management

Motivating Your Staff - A little appreciation goes a long way

If you own or manage a small business, and have staff working for you - then this could be an important reminder of a powerful management principle.

You want your staff to be good ambassadors for your business, right? .... Every time they interact with one of your customers, you want your staff to be positive, bright and friendly, so that your customers will gladly return

Well, here's the thing about staff motivation to remember as a manager.

Your staff will do more of what you want, if you recognise and reward it in some way. And that doesn't have to mean a financial reward, but simple and sincere appreciation can go a long way.

Of course, people want to feel they are being paid fairly - but very often a common reason that staff leave a business is because they work for a poor manager, and they feel that their contributions are not being appreciated. So, have a look at the following short video clip, and think about whether you provide enough recognition to your people for good work ....

And by the way, if you're after some more leadership tips that can help to create team morale and a good working environment, have a look at Leadership Qualities

Steve Jobs - Advice for the small business entrepreneur

Steve Jobs became a giant in the world of business, respected for his technical innovation and also his commercial acumen.

In this short video clip he offers some timely advice for the small business entrepreneur - basically saying that that you need to make sure that you are doing what you love, because otherwise you will not be be able to persevere when things get tough

If you're after some other quick tips, you might have a look at Small Business Tips

Your Attitude : Friend or foe to your small business

Do you focus on what you can control?

There are many things you cannot control that impact upon your small business. These include things such as an uncertain economic climate, the inevitability of BAS, government business policies and interest rates to name just a few. 

However, what you can control is the attitude you adopt in dealing with these things. ....... So how would you describe your attitude?

You can put two different people in the same situation and one will see a threat whilst the other sees an opportunity. 

Your attitude determines how you navigate your way through life's challenges.

Your attitude reflects in everything you do - it is sometimes referred to as the Law of Attraction, which essentially says that the thoughts and expectations you have influences what comes back to you.. By recognising the power of your attitude in shaping the destiny of your small business, you take a big step towards building a more prosperous future.

In deciding to make a friend and ally of your attitude, you are committing to adopting a positive approach  to how you face the challenges, pressures and uncertainties of small business. A positive attitude is not just about being optimistic and having self-belief that you will find a way to deal with any problems - your positive attitude will actually start to have an influence on the environment around you.

A cheerful manner reflects a positive attitude 

A positive outlook will usually shine through with a naturally more cheerful and upbeat manner ..... which in turn will help lift the spirits of other people around you, including your family, staff and customers. 

You can see this type of dynamic happen every day - when you smile at someone, most people can't help but smile back. We all prefer to be around happy people, who seem to be able to find things to laugh about and be grateful for

Yes, each day you will have to put some effort into rejuvenating your positive attitude and keeping it an ally. You will need to consciously banish any negative thinking as soon as it starts to creep in ......, However you will find that with this way of looking at the world, you begin to notice small things that you can better appreciate - things that in the past you more than likely have just taken for granted.

6 tips for cultivating a positive outlook

So what can you can do to cultivate and nurture this positive attitude? A few simple things include...

1. Get a hobby that you find fun, or maybe spend more time on the one you have - this helps to keep you fresh and interested in life
2. Think of good times you've had, rather than dwelling on any regrets or disappointments
3. Get in the habit of complimenting other people as much as you can ..... Even small acts of kindness stimulate positive endorphin's in your body - which help you feel good
4. Exercise and keep yourself reasonably fit - mind, body and emotions are all inter-connected
5. Be open to learning and trying new things - regain your child-like curiosity of the world around you.
6. Remember to take regular short breaks during the day - and ensure you take a holiday every year. Do not allow your business to consume you - there is much more to life than your business. 

You might like to also have a look at Self Motivation Tips, which offers a great list of other ways to stay positive

Have no doubt that investing in a positive optimistic mental outlook and a lighter, cheerful mood will eventually deliver a steady stream of dividends for your small business. 

You will become the type of manager that employees will gladly want to do their best work for. And you will be the type of supplier that customers will  be happy to do repeat business with.

So, are you wearing a smile or a frown - it's your choice, right?

Performance management of staff in your small business

If you manage a small business and have staff working for you, then you've probably already found that motivating and managing some people can be a huge challenge - and often quite frustrating.

Performance management cycle

However some of the problems that we might experience with staff performance are through our own making. As small business managers, we sometimes make too many assumptions that our staff understand our expectations and have the training to do what we want them to do.

The performance management cycle is a nice simple reminder of some of the important stages in staff performance management

1. Performance planning is about preparing the employee for the work you want them to do. It includes ensuring that right from the very beginning, a new employee has a clear understanding of the scope of their job and that you have clearly explained what is expected of them. It's also about ensuring that any new staff member receives adequate training necessary for using any systems or complying with procedures that are associated with performance of the duties in their job. Many managers unfortunately often neglect to invest enough time in this stage, because they assume that it's all too obvious ..... They forget it's only obvious because of the greater experience and familiarity they have with the various tasks in the workplace.  But performance planning can also refer to the weekly or even daily outcomes that you might set for your staff. Again, it is essential to ensure that any performance or work plan is reasonable (ie. achievable) - and that the employee has been equipped with the training, tools and resources needed to meet the performance expectations.
2. Performance tracking is about keeping an eye of the progress of the employee - and checking that things are getting done properly. Monitoring and occasionally observing, yet without being intrusive nor seen as too distrusting. With a new employee we will need to be checking on the quality and timeliness of their work more frequently than say an experienced staff member, because we should be able to feel more confident in  our senior employees.
3. Performance feedback is about providing the employee with recognition for good work and showing them that their efforts are being noticed. Sometimes constructive feedback may need to be provided however, if there are job requirements that are not being quite met. This might be a reminder that they need to take care with a particular procedure, or a reminder about what time they need to be back from lunch, or a reminder to take more care when filling out a form....... Sometimes people make mistakes - hey, we're all human. The important thing is that we help the employee learn from it, so that it's not repeated.
4. Formal performance review is sitting down with the employee on a quarterly basis, over a coffee, and having a conversation about their performance - what's been going well and whether there may be areas that could be improved. There are many businesses that incorporate some documentation around this, particularly for the more comprehensive annual review. The annual review will assess employee performance on each of their key responsibilities and identify whether these have been performed to a competent or acceptable standard. The annual review can also include a conversation about the employee's longer term career development aspirations. Although a small business may have some limitations upon progression opportunities for their staff, it is never-the-less useful for their manager to be aware of staff ambitions. This is because there can sometimes be opportunity to enrich the employee's current job and possibly provide them with more of the challenge they may be seeking. But in doing so, you need to also ensure that your employees are being fairly rewarded for good work

In a positive sense, an effective performance management process will help to ensure open lines of communication between a manager and their employees - thereby avoiding confusion and preventing misunderstandings about what is expected.

In the worst case scenario, a formal performance management process maintains an audit trail in the event that an employee is performing unsatisfactorily and may need to be dismissed. There will be some written record that a manager has previously raised performance concerns with the employee and made reasonable attempts to secure performance improvement

Keeping good staff

No doubt you want to keep your good staff ..... They show initiative, they're reliable and they're capable. Right? ...... You've come to rely upon them and trust them. So just be careful that you don't take them for granted. Show them that you appreciate their efforts - and make sure that they are being duly rewarded.

Why do staff resign? ...... Surveys show the most common reasons include a poor relationship with their immediate manager, poor working conditions, conflict within the team, lack of job satisfaction with their actual work (no longer challenging) and finding a similar job that requires less travel or offers much higher wages. Although people say their salary is important, in influencing their levels of job satisfaction, many people say they place higher importance upon the quality of their working relationships, the opportunity for learning and growth - and also whether they find their work "meaningful".

Effective performance management will help you to both retain good staff, as well help you to identify staff that simply might not be a good "fit" for your business.

Also have a look at Management Skills Development for further suggestions and ideas on how to manage and motivate the performance of your staff.

About the author

Brian Carroll is the founder of a corporate training and leadership development company, Performance Development, based in Melbourne, Australia.  He is a qualified psychologist, experienced management coach and an engaging presenter, with a passion for helping people achieve their full potential

Customer Service In Your Small Business

If you're in small business, then you know the importance of good customer service as a strategy to compete against larger companies in your sector.

You may not have the same profile as some of the larger companies, you do not have their advertising and promotion budget. You are probably not able to beat them on price - because they have economies of scale and greater volume in their purchasing power.

However, where you can compete with "big business" effectively is in customer service - building a closer relationship and establishing more of a personal relationship with your customers.

Manage customer expectations

One thing I have learned from more than twenty years in small business is the importance of managing customer expectations - and the principle of promise less, deliver more

There are few things that annoy customers more than their supplier not doing what they said they would when they promised. Your customer may well plan their schedule and other commitments around your delivery promise, so you are better off adding some contingency time onto your time estimate.

In other words, let's say for example that you run a small printing business. And your customer asks when will the job be ready, and you think to yourself that it should be finished by 2.00 pm . You could actually say 2.00 pm and then maybe later you discover that it takes a little longer than anticipated and isn't actually ready til 2.30 pm - and therefore you'll have a disappointed customer on your hands.

Instead by applying the principle of "promise less, deliver more", when you think to yourself 2.00 pm - you say to them "It' should be finished by 3.00 pm - but if we get it dome earlier, I'll call you" - then when you complete the job at 2.30 pm they'll be happy and you'll be less stressed !!

If you're thinking of some customer service skills training for your staff, you might have a look at Customer Service Training Melbourne

Service recovery

OK, so we've explored the importance of managing customer expectations. But what happens when you do get it wrong? Maybe you've provided them with something different to what they asked for. For example, going back to the printing business - let's say the customer ordered a big supply of printing on yellow paper, but you mistakenly printed on white paper.

Often, it is the complaint from the customer himself that will bring the matter to your attention. This is where it's important that you have trained your staff in how to handle complaints. The customer may well be upset, so it's important that you show some empathy in the situation. Once you recognise that you got it wrong then apologise quickly and explain what you will do to fix the problem.

This is not the time to try to find excuses for the mistake, because all the customer wants is a solution to the problem you've created for them . If it is going to take some time to correct the situation, see if there's anything you can do in the interim to alleviate any difficulties your mistake has made for your customer.

For example, imagine you arrive at your hotel to check in and yet your room is not ready when it should be. The receptionist apologises, says it will just be another twenty minutes - and arranges for a couple of complimentary drinks at the bar whilst you wait. Doesn't this gesture help retain goodwill?

Let's go back to the printing example .... imagine you have rectified the situation and deliver the printing on the correct paper, you should think about what you can do retrieve some goodwill. Maybe you give the customer a significant discount on the order, or you throw in something of a complimentary nature to "ease the discomfort" suffered by your customer. After all, research has shown that it costs a lot more to attract a new customer than it does to retain an existing one.

And the final aspect of service recovery involves you and your team reviewing why the problem happened in the first place, and how you can prevent a recurrence of the problem. Is there a procedure that needs tightening up? Does an employee need a bit more training? Remember, if you've recruited good people, then they would not have intended to make a mistake, so try and see what can be learned from the experience and be careful of simply blaming an employee without having got all the facts.

So in summar, effective service recovery when things go wrong can help to retain customer loyalty that otherwise would have been lost to your small business. We all make mistakes some time - the measure of your resilience is how you recover from them

Motivating your staff

High and consistent levels of customer service will only be delivered by motivated staff. As the owner and manager of your small business you have a vested interest in the success of the business. But how do you create a feeling of "ownership" in your staff? How do you get them feeling some enthusiasm for the business and engage them in what you are trying to achieve?

For some great tips and advice on staff motivation, have a look at How To Motivate Employees

Richard Branson on Business Failure

Some two out of every three small business "fail to launch" within their first eighteen months. In other posts we have explored some of the reasons for this - but the following video clip offers some reminders about not being scared of failure. Many successful business people have "failed" but learned from the experience and come back stronger and wiser.

In the interview, Richard Branson shares some great tips for people in small business who may be struggling with some challenges



Another great video clip that can inspire you to persevere. The clip lists many successful people who experienced failure in their life, or were labelled by others as failures, and yet had the courage and determination to continue to move forward and achieve their goals



If you are looking for a boost to your motivation, have a look at Self Motivation Tips