How to start your own small business

So, you’re thinking about starting up your own small business?
 

Excited by the prospect of making money by doing something that you love? Perhaps you’ve been feeling frustrated in your current job, and are convinced that running your own business will provide you with the satisfaction you seek?
 
Or maybe the entrepreneur in you can see an opportunity, a problem that no-one else is offering a solution for?

Well here’s a few of the most essential things you need to know about starting your own business ....
  

• Consider both the upside and the downside  

Yes, running your own business can be very rewarding. It offers you the freedom to be your own boss, the autonomy to make your own decisions and the satisfaction of building something that you are proud of. There are many people who make a lot of money successfully running their own business – they end up making more money than if they were working for someone else. Not only are they doing what they love, but they are able to eventually enjoy a lifestyle that would otherwise not have been possible.

But you can't close your eyes to the potential downside. There are just as many people in small business who do not succeed and end up walking away disillusioned, disheartened and having lost money. Sometimes it’s because they’ve gone into business with strong technical skills (ie. they’re a great plumber, a great chef, or a great mechanic) but completely inadequate commercial skills necessary for running a profitable business.

• Common pitfalls

One of the most common reasons for small business failure is a lack of preparation ….. people suffering from a romanticised view that it will be an easy path to riches. They neglect to undertake proper market research, ignore the risks, over-estimate demand and jump too quickly into over-capitalising their business. They get excited by their idea and can become impetuous in their actions. They spend too much money too quickly – for example over-committing to leasing premises or purchasing equipment, instead of trialling their idea and putting their toe in the water first.

• Be prepared for hard work

Talk to anyone who has been running their own small business for a while, and they will all say that the first 18 months is hard slog. There are long hours and more than a few sleepless nights.  It will draw upon all your reserves of stamina, self-belief and determination to succeed in building a customer base and proving that you can consistently deliver on your promises.

If you find after 18 months that your business is providing you with a reasonable standard of living and that your revenue is comfortably exceeding your costs – then chances are that you have indeed found the ingredients for achieving sustainable business success and business growth

The point here is to make sure that you are seeing the thorns as well as the roses when thinking about going into business for the first time. Recognise that it will take hard work, but if you’re doing what you’re really passionate about then you won’t begrudge it.

• Assess the viability of your idea

Invest some time and thought in preliminary market research. This is a crucial step in helping you determine the viability of your idea. Finding answers to questions such as

-        How do I know there is sufficient demand for my product or service?

-        What is the level of competition ….. is demand greater than existing supply, or is it a crowded market and there are more suppliers than demand?

-        How would I be able to differentiate my business from competitors – by doing it better, doing it cheaper or doing it differently in some way?

-        What would be all of the costs associated with developing and delivering the service / product – and what would I be charging? ….. How many sales would be necessary to cover costs? ….. How long would it likely take before the business was generating that volume of sales? …. Do I have a sufficient reserve of funds to cover any shortfall – or would I need a bank loan?

-        What are the risks? ….. what would be the impact and the likelihood of things going wrong? ……  is there anything I can do that would mitigate these risks

-          Are there any government grants for which my business could be eligible?

Nothing is ever risk-free. What’s important however is that you’re aware of the risks and that you judge you can comfortably live with them if you can’t find a way to manage them.

• You’ve got to feel ready for running your own business

There’s no point taking on a level of stress that will end up damaging your health or undermining your ability to apply yourself positively to building a solid business.

Maybe the time is not yet right for you to go down this path …….. Not for now doesn’t mean never. Timing is crucial and you’ve got to feel ready for the challenge within yourself.

You’ll probably never be completely free of doubts, but you’ve got to have a level of confidence, self-belief and drive that will outweigh the doubts.

 

• Can you test the water first?

Before you leave the security of your current job, you might just want to see if you can first test the water with your idea and try it out on a low-risk, part-time basis. 

Maybe your idea is writing e-books, or selling perfume online, or setting up your own handyman business. See if you can trial it in the evenings or on the weekends, so you can confirm there will be sufficient demand for your service or product, to make it financially viable for you to embark on doing it full-time (However, even if you are trading only on a part time basis you will still need to register a business name and obtain an ABN)

But once you’ve carefully completed your research and assessed the relative risk versus reward, and if you remain confident in the viability of your idea, then now becomes the time for bold action and taking the steps necessary to start your business.

• Choosing a business structure

You may benefit from gaining expert professional advice in selecting the business structure that is best suited to your situation. The options that are most common for a small business structure are as follows, but each structure carries with it potential advantages and disadvantages

i)            Sole trader: an individual trading on their own

ii)           Partnership: an association of people or entities running a business together, but not as a company

iii)          Trust: an entity that holds property or income for the benefit of others

iv)          Company: a legal entity separate from its shareholders

• Choosing a business name

The choice of a name for your business is one that you may be stuck with for a long time, so again it’s worth investing some thought to get it right. Although admittedly you can always later change your business name, this can have quite a disruptive impact on your brand. A name change can also end up incurring significant costs, through things like needing to have stationary reprinted and registrations updated……. So what do you need to consider?

Many business owners will advise you to look for a name that is easy to spell, easy to remember and gives potential customers an indication of what you do. Some small businesses will combine their family name in their business name – for example Thompsons Plumbing, Ashman Accounting, or Taylors Gardening Services ….. Others combine the area or region they service, such as Bayside Motors, Sydney Renovations or Eastside Landscaping

And then you have other businesses that go for short, quirky original names like Apple, Google, Innovate

You’ll probably have a few different ideas for names, so get some feedback from other people and test their reaction to each of the names as part of your decision making process. Your choice of business name will also be connected to how you want to position yourself in the market you are targeting and the type of image you want to project to your target market. For example, do you want to be seen as steady, reliable and safe – or is it more fresh, innovative and vibrant? What will hold appeal for your target audience?

Once you have selected a preferred business name, it can be wise to also check on the availability of the name to register as a domain name for your website. Although your domain name does not have to be the same as your business name, I believe this helps to strengthen your brand in the marketplace.

• Registering your business name in Australia

In Australia, you can check availability and register your business name online with Australian Securities & Investment Commission (ASIC). You will also need to apply for an ABN with the Australian Taxation Office. You will require an ABN if your business will be charging Goods & Services Tax (GST) and the ABN should appear on all of your invoices. An ABN is required before you can complete registration of your business name.

If this all seems a little complicated, get a couple of quotes from local Tax Agents as to what they would charge to complete it for you online. It's a fairly quick process to obtain an ABN for people familiar with navigating their way around the ATO procedures

Note that registering a business name is not the same as registering a company name. If you decide to set up your business as a company structure, the current ASIC fee for registering your company name at time of writing is $433. A company name has Pty. Ltd. at the end of it.

To register as a company, you can either attempt to do it yourself through the ASIC online portal (but it is somewhat complicated) or there are other commercial online services that help to simplify the process and charge less than $100 in addition to the ASIC fee. This compares to some accountants who will charge up to $1,800 to handle your company registration process.

If you do not decide to set up as a company structure, then the initial cost of registering a business name with ASIC at time of writing is $30.

There are subsequent annual renewal fees to maintain registration of your name as well.

And you may want to consider seeking to register the name as a trade mark to protect your business name. However there are strict eligibility requirements for gaining a trade mark and you might want to consult with an IP (intellectual property) lawyer. It is a common misconception that registration of a business name or domain name gives you exclusive use of the name. It doesn’t – only a trade mark registration can offer you protection of your name and logo.

• Your business plan

Developing your business plan will provide you with an important sense of direction. If you would like some guidance in how to prepare one, visit free business plan template.

This is where you establish written goals for each of the major components of your business, and set out some actions, time-lines and strategies for achieving your goals. The level of detail in your plan will be determined by whether you are writing it for yourself, or in support of an application for a government grant or bank loan (these will typically require a greater level of detail).

At its simplest level, your business plan defines the objectives of your business, the target market, your sales and revenue goals and projected major operating costs for the year (this becomes your budget). It incorporates how you will market your business and differentiate yourself from your competition, including any major advertising and promotional strategies. Your business plan answers the basic questions of who will buy from you, why they should buy from you (and not your competitors) and how you will efficiently deliver to your customers what they have bought from you.

Your business plan is something that you should continue to keep in your line of sight, because it will provide you with focus and help you to judge priorities during the year 

• In closing

I started my own small business more than twenty years ago. Although there have been many challenges along the way and with the benefit of hindsight, many things that I would have handled differently, let me say that I have no regrets about going into business.

I’ve found running my own business provided me with a level of satisfaction, freedom and independence that working in the corporate world never equalled. It’s not suited to everyone, and only you can judge whether it will be right for you. Anyhow, hope you've found some useful tips here on how to start your own small business

Related articles include - Setting up an online business and Small business tips

Video : Registering your business name

In the following short video clip, the speaker explains some of the early steps in selecting and registering your business name. By the way, there are many different suppliers for seeking to register a business domain name - as well as the company that they are promoting in the video

 

Copyright 2013. Brian Carroll is the founder of Performance Development - a corporate training company based in Melbourne that delivers management training and leadership development services.

How To Run a Business

Perhaps you’re thinking of starting up a small business? Or maybe you’re already running a business and looking for some tips on how you can run it more effectively?    

Here’s five core lessons that I’ve learned from over 20 years of running a corporate consulting business …….

1.   Before starting up a business, make sure you’ve got the right temperament for it

You’ve got to be able to work independently and be a self-starter. If you are the sort of person who wants to be told what to do, then chances are that small business is not for you. You require persistence and you’ve got to have mental toughness, because there will always be ups and downs in running a business and you need to maintain faith in yourself and your business model.

2.   Don’t lose sight of your bigger picture

It’s all too easy to get side-tracked when you run a business and get caught up in relative trivia without even realising it at the time.  Your business plan provides your business with the overall direction that you need. Every year, you set goals in all of the major areas of your business – sales and marketing, finances, equipment and technology, and training (for yourself and for your employees if you have them).

Setting these bigger picture goals for the business is all well and good. But what determines whether these goals will be accomplished are the actions you take on a daily basis. So set some daily goals for yourself and keep a checklist of tasks you need to accomplish …… And if the list is getting too big, step back and identify the top priorities and ensure that these items get done before doing anything else. Forward thinking and planning, combined with self-discipline and healthy routines are essential to maintaining a sense of control and focus in your business

 

So thinking about how to run a business effectively cannot be considered in isolation from regularly reviewing your own personal efficiency. Wisely manage your own time each day and keep your bigger picture goals in line of sight - so that you ensure how you plan your day will move you closer towards these goals.

3.   Listen to your customers

If you’re running a small business or home based business, then it’s your ability to build close and loyal relationships with your customers that is one of the potential edges you have when competing with the bigger guys.  

Sure, being friendly is part of it ….. But more important is understanding the needs of your customers and how they are using your product or service. Listening to them and learning more about the problems they have and the pressures they experience can give you more ideas for innovating new products and services that provide solutions to their problems. Existing customers are often an untapped pool of additional sales and more business – but you’ve got to listen and ask questions to discover these hidden opportunities

 

4.   Internet marketing lets you compete against the big guys

You may run a small business or a home based business, but on the internet highway you don’t need to have a huge advertising budget to succeed in winning traffic to your website. It is worth investing in a professional looking website that is constructed with search engine optimisation (seo) in mind – there’s no point having a website unless you can get your website found by Google. And this means appearing on the first page of Google results for search enquiries with your keywords.

 

Alternatively, if you’re not competing effectively in the organic, free search results, then consider trialling an Adwords campaign and paying for your website to appear in the advertised section of search results (the column on the right hand side in Google). But monitor carefully the number of enquiries your Adwords campaign generates in order to assess whether it is worth the cost as you move forward.

Another key element in your internet marketing campaign should involve the selected use of social media to help raise the profile of your business.  Whether it is Facebook, Twitter on LinkedIn – try to find ways of engaging potential customers into your business. Again be careful that you don’t invest too much time into social media unless you find it is generating a reasonable return in enquiries from potential customers.

Regardless of whether your business services simply a local market, or whether you target a wider national or even international market, the internet has helped to level the playing field for small businesses and home based businesses so they can more readily compete against much larger organisations. You don't need a huge advertising or marketing budget, but you do need to be willing to invest some time in learning how to get your website found by Google

5.   Increasing your profits

When you’re running a business, you can increase your profits broadly speaking in one of three different ways ……. Either    

i)            Increase your revenue by increasing the volume of your sales. …. This sometimes can be achieved by more effective internet marketing, and improving your search engine ranking. For example, undertaking some SEO to your website might result in lifting your website organic (unpaid) ranking for your keywords from number 9 to appearing number 4 on the search results page – which of itself could increase the volume of enquiries by as much as 20% in some cases. Of course, you still need to work at converting the enquiry into a sale

ii)           Increase the price of your product or service ……. But this needs to be considered carefully, with a close eye on the prices of your competition – there’s no point pricing yourself out of the market (unless you really do own a niche space)

iii)          Reduce operating costs in running your business ….. This doesn’t have to mean becoming a penny-pincher, but simply becoming more prudent with your expenditure. It could be as simple as sometimes questioning whether you need to really purchase that new leather chair for the office. Or maybe scanning the marketplace again to make sure that your suppliers are really providing you with the best deals that they can

Also intrinsic to running a profitable business is managing your cash flow. It’s all too easy to find yourself in a situation where your monthly expenses and the bills that are due outweigh the cash flowing into the business. And this stress is not being caused by inadequate sales revenue, but more because of a problem with late payments from customers.

6.   Before you hire staff …..

There comes a time when some small business owners become confident they’ve found the formula for business success. They see such a steady growth in their business, and they realise they can’t handle it all themselves and so they start looking at hiring staff. But staff recruitment and staff management are a whole new set of skills – so make sure you get some good advice and training to help you before taking this step. Recruiting the wrong employee can do considerable damage to your business brand – and managing them poorly can mean they won’t be as productive as they could be. For some quick and simple recruitment advice, read Hiring Tips for Small Business and for staff management tips be sure to have a look at Management Skills Development

So in closing, if you’re thinking about how to run a business effectively, don’t be afraid to ask for help and guidance from other people who have succeeded in business themselves. Maybe your local community has a Rotary club or some other network of business people that you can join with. And check out the Australian government website for possible eligibility to access government grants and funding to support the launch or expansion of your small business enterprise.

Copyright 2013. Brian Carroll is the founder of Performance Development - a corporate training company based in Melbourne that delivers management training and leadership development programs.

Small Business - What sort of negotiator are you?

Negotiation is an every-day skill     

Negotiation is a skill that you likely apply almost every day throughout the different parts of your life. Whether you do so consciously or effectively is quite another question however.

For example, at home you might negotiate with your spouse, partner or flatmate about the division of chores around the house. Or perhaps you might at times negotiate about which restaurant you will go to for dinner, or which movie you'll go and see together. Or where you might go on your next holiday.

In running your small business, you might negotiate with a customer over when their work will be completed . Or you might seek to negotiate with one of your suppliers over a bigger price discount for a volume order. Or you might be required to negotiate with one of your employees over when they can take their annual leave.

So,what do we mean when we refer to  negotiation? ....... Well, one definition is that "negotiation is a process of communication in which 2 or more parties seek to resolve their differences and come to an agreement"

Are you a combative or collaborative negotiator?

Different people  adopt very different methods in the way they approach negotiation.

There are some people who view negotiation as a competition which they want to win - whatever the cost. They are simply concerned with their own goals and requirements - and show little genuine interest in the needs and concerns of the other party. They will readily apply pressure and threats, and seek to push you into a deal that offers far more advantages to them. You can recognise this type because they often seem to do more talking than listening. The combative negotiator has their focus on achieving their own outcomes, and care very little for the relationship. They often adopt a "take it or leave it" approach when they feel they've got the upper hand.

Most people are reluctant to willingly interact with the combative negotiator. It is an aggressive style that tends to trigger defensiveness in others

And yet there are other people who approach negotiation in a much more co-operative manner. They want to find a solution that is regarded as a fair one by both themselves and the other party. They can be readily recognised by .....

1. the careful way in which they listen to the other person,
2. the insightful questions they ask in an attempt to uncover the interests and underlying motivation of the other party
3. the emphasis they place on the common goals and interests that are shared with the other person
4. their lack of fear and the lateral thinking they apply to generate and explore options

The collaborative negotiator is still seeking an outcome that will meet their needs and priorities - but at the same time have a regard for the future relationship with the other party. They place a value upon the goodwill factor and are open to considering all ideas that offer a win-win opportunity.

Negotiation is about give and takeOne of the keys to effective negotiation is knowing when to be flexible and be willing to move on an issue, rather than maintaining a rigid position. However moving doesn't mean you have to concede and give-in - instead it means seeing if concessions can be reciprocated. In other words, seeking a "quid pro quo" from the other party in exchange for your concession. The language that is used here becomes "I will agree to ...... if you are willing to ...."

So you might say to your spouse that you're prepared to accept their choice of restaurant if they're willing to go later to the movie of your choice.

Or when managing your small business, you might say to your customer who is seeking a discount, that you could agree to it if they increase the volume of their order. Or you offer your supplier better payment terms if they can deliver more quickly. Or you indicate to your employee who is seeking a pay-rise that if they are able to generate a certain sustainable level of increase in sales then you could agree to their request.

An agreement will occur when each party feels they are gaining something that they perceive to be of greater value than what they are being asked to give.

But what if you're not comfortable with negotiation?
If  you view negotiation as "haggling" and not something that you feel particularly comfortable with, then what can you do? Well, for a start look for low-risk opportunities to practice, Opportunities that will allow you to experiment, to try out some different behaviours and to push your comfort zone.

And just as important can be changing the way you view negotiation. A negative perspective to negotiation may be contributing to your unease. It does not need to be an argument, nor does there need to be conflict. Instead, view negotiation as a discussion in which options and possibilities are explored. Both parties can benefit when this is handled in a positive manner.

Really, there is never any harm as a consumer in asking the question, "Can you do any better for cash?" ..... Or to ask another person "What would it take for you to agree to .....?"

• In closing

Improving your negotiating effectiveness can offer many potential benefits to your small business. Better outcomes can be achieved when you are dealing with your customers, suppliers and employees.

Copyright 2013. Brian Carroll is the founder of Performance Development - a corporate training company based in Melbourne that delivers management courses, leadership training and interview coaching

PR Tips for Small Business - How to write good copy

Do you ever worry that you may be spending a lot of time writing something that no one is going to read?
 

When you’re running a business, you appreciate that time is money. Hence any significant business activity needs to offer you a return, to justify its continuity.    

 

It is generally recognised that writing blog posts and submitting newspaper articles has the potential to raise the profile of your business and generate interest in what you have to offer. However this is only true when the content has been well written – and not many of us can claim to understand the essential keys to writing good copy   

 

I recently spoke with Wendy McWilliams from WMC Public Relations about how to write copy that will engage readers and generate a response, if that is the desired outcome. Wendy brings more than twenty years of experience to PR, particularly supporting SMEs with their promotion and publicity. She offered some great tips on content writing relevant to all of us running a small business

 

Q: Wendy, do you need special skills to write articles that people will actually read?

 

Not really, but you need to be mindful of who you are writing for and who will be reading the article. And whether it is a technical article or one that is general in nature, there are some tips that can be used across all types of writing.

 

Q: So if you are writing a blog or a feature article for a trade magazine, you can apply the same principles?

 

Yes, you just need to write in different style. For example a blog can be a lighter style, whereas an article for a magazine would usually be more formal.

 

The first tip is to create a catchy heading and introduction. You want to capture the reader's attention so they actually click on the link or stay on the page and continue reading. If you aren't sure what works, look at the articles that attracted you or emails you received that prompted you to click on them for more information. What worked with you and what didn’t? Also, check the metro daily papers and see how they intro a story. Practice trying to make it as punchy and attention-grabbing as you can.

 

After people have read your intro they want to know more, so it’s important to then include all of the factual information. The who, what, when, where, why and how.

Another tip to good copy-writing is to add a human interest element. Depending upon your subject, you might consider how people have been affected. Be specific, not general when talking about how they have benefited.

 

Q: Any advice for the small business owner who wants to tell their story?

 

For a small business success story it's a good idea to include some background information about how you or your company came to be where they are and what influences or mentors you’ve had in the past. What initially motivated you to start the business and what it is you find most satisfying about the business now.

 

What or whom do you attribute your success to? What ups and downs have you had along the way? Obviously, you must make it real and honest – but try and include something that differentiates your business story to that of others.

 

I would also suggest you try and keep a news angle to the story. This is particularly important if you are pitching a story to the media, for example your local press..

 

Q: What about structuring your content – any tips?

 

You should try and keep the content of the article in a logical order; chronological is usually the best structure so that readers are guided through your story in a seamless way.

 

And I would suggest that you include advice or tips on how others can benefit from your learning and experience. It's like a bonus for them reading the article.

 

Q: Any final words?

There is an art to writing interesting articles and it does take a while before you become competent with it. What you write needs to be succinct and not contain waffle. Just put yourself in the readers' position and from that perspective, it's easier to write what you would like to read.

And one final piece of advice when writing your copy. Don't make spelling, typographical or grammatical mistakes, as this is one of the biggest turn-offs for most readers. It can definitely undermine the impact of your message and detract from your own credibility. So try to get it proof-read by someone else before you publish the blog post or submit your article.

And for some other great advice on PR, take a look at our post PR Tips for Small Business

Copyright 2012. Brian Carroll is the founder of Performance Development - a corporate training company based in Melbourne that delivers management courses, leadership training and interview coaching

Small Business - It's all about building relationships

Relationships with your customers  

If you run a small business, then you're well aware that one of the major advantages you have over your bigger competitors is the quality of the relationship that you can build with your customers.

If it is a business-to-business relationship, then investing some time in learning about the business of your customer and gaining an understanding of their business cycles can of course help you with your forward planning.

Listening and questioning - before you sell
Building a relationship starts by taking an interest in how your customer is wanting to use your product or service ..... So listening and asking questions is essential. Clarifying what they are ultimately wanting to accomplish with your product or service will help you to provide them with the best solution for their needs.

For example, Alan owns a small shoe store in my local area. When I went in a few weeks ago and asked him to show me a pair of size 10 running shoes, instead of just bringing out a few different shoes for me to try on, he first asked me some questions ....... Would I mostly be running on soft or firm ground?..... On even or uneven surfaces? ...... How often did I run? ....... These types of questions to better understand my needs meant that I ended up with the best solution for my needs. Plus, he threw in a free pair of  sports socks after the sale was made (OK, it's only $2 against a $100 pair of running shoes, but I liked the gesture)

And then to top it all off, when we bumped into each other at a local school fete a few days ago, he asked me how the running was going and whether the shoes were working out........ Is it any wonder that when I'm after shoes, I will head to Alan's store.

Customers are all different

Of course, not all of your customers will necessarily want to develop a personal relationship with you. But some will ....... They are glad to have a chat with you on a Friday for example, about what they have planned for the weekend. They are happy to discuss the progress their kids are making at school .... However there are some customers that just want to get in and out as quickly as possible, with no small talk ........ So you've got to be able to read them and adapt, if the relationship is going to work.

Doing what you promise

Another foundation for any enduring relationship is trust.

And for trust to exist, you must be seen as reliable, which means keeping your promises. If you run a small printing business and you promise your customer that their job will be ready by 2.00 pm, then whether or not you deliver on time becomes a measure of trust. Yes, stuff can happen that is unexpected and can get in the way of being able to meet the deadline ....... the printer runs out of ink, or paper gets jammed in the printer creating delays. But that is why you should remember the old saying "Promise less and deliver more"

You would have been better off over-estimating how long the job would take, and allowing some contingency time for the unexpected to possibly happen. Delivering earlier than promised will not lose you trust - and yet delivering later than you promised will seriously damage it.

Relationships with your staff

The quality of the people you employ in your business will be directly proportionate to your subsequent ability to grow and develop your business. And I'm not just talking about the quality of their skills - but also their character.

Good staff are worth paying extra

If there's one thing I've learned after more than 20 years in business - it's this........ It's worth paying more to employ good people. You'll end up getting it back and more - through repeat business from customers impressed with your service.

But an additional benefit is that you are free of the stress and hassle of having to correct poor work and you don't have to solve as many problems. When you have good people working for you, they are happy to use their own initiative. And because you feel you have staff you can trust, you're much more willing to delegate rather than feel like you have to do all of the important jobs yourself

But recruiting good staff is not the end of the story - it's the beginning ...... You have to be able to keep them!

Retaining good staff

And that means showing them that you value their contributions. Everyone likes to feel appreciated - particularly when they have done good work, or done something over and above their normal duties. Often a thank you is enough - but sometimes some extra recognition is warranted ........ Maybe a double movie pass, or a dinner for two for your staff member and their partner at a local restaurant. Or a small bonus on top of their pay at the end of the week.

Building good collaborative working relationships with your employees takes effort.

Are you the sort of manager that you would be happy to work for? Do you usually display a positive and cheerful manner with your staff in the workplace - or is this just something you switch on when you're with customers? ........ Do you know what your staff get up to outside of work? Do you know what parts of their job they most enjoy - and the parts they find to be a chore? Do you know if they have some ideas on how things could be run better?

More than the money

There are surveys that show more employees resign from their jobs because of a poor relationship with their immediate manager, than those that leave because of dissatisfaction with their salary. That's not to say that salary isn't important to people - it certainly is.

But there are other things that can be just as important in motivating your employees - and you have to discover what they are. For some of your employees, it may be about recognition, for others it may be about the opportunity to learn new things. And for others it's about feeling they're helping and making a difference.

The more you uncover and can understand about the underlying interests and motivations of your staff, the more likely you will be able to build a positive and productive working relationship with them.

Relationships with your family

What's this got to do with the growth of your business, you might well ask?

When you're running a small business, it's all too easy to become consumed with the business. Long hours ..... and working on the weekends is not uncommon in the first few years of a start-up. If you're going to be running your own business for the long term, then it's important that you develop a sense of balance in your life.

Being able to spend quality time with family and friends. Having a space where you can unwind and be refreshed by enjoying things that are totally separate from your business is crucial for your well-being. And that also means not thinking about your business when you're at home.

Learn to switch off

If you're not able to switch off from your business, then the relationships you have with family and friends will suffer. You run the risk of becoming isolated over time, and disconnected from the people who care about you the most.

At the end of it all, in the sunset days of your life ....... do you think you will likely be reflecting upon ways you could have expanded your business further - or will you be thinking more about your loved ones and those special times that you shared together?

Copyright 2012. Brian Carroll is the founder of Performance Development, a corporate training company based in Melbourne that delivers management courses, leadership training and interview coaching

PR Tips for Small Business

Whether you are a service-based small business, one that supplies a product or even delivers both, why not plan to kick-start 2013 with some publicity and promotion on your offering? 

I recently met with Wendy McWilliams, who has worked in the field of public relations for more than twenty years. Her company, WMC Public Relations, has won major PR contracts with various local government councils, and also advises a large portfolio of SME's on how they can gain promotional traction for their business in their local press and media. I asked her for some PR tips and advice that would be suitable for small business and this is what she suggested ........

The first thing to note is that if you want other people to talk about you, your company and your products then what you give them has to be newsworthy. Your own social media sites are where you can plug your produc -  but newspapers, magazines/trade journals, blogs, television, radio and online publications/websites want something that will interest their audiences.

Newsworthy Announcements

So what can you talk about? Here are twelve simple ideas that Wendy suggested as potentially suitable for small business ....:

• Milestones: First or 50th anniversary, 1000th customer, 1 millionth widget, 20th franchise sold, etc.
• Moved to new premises, opened branch offices, 6-star green rating, etc.
• Awards won
• Senior appointments
• New equipment and new technology
• Export achievements
• New products
• White papers & technical how-to sheets
• Market analysis that may be controversial or alternative to general consensus.
• Holding a special event
• Case studies where one of your customers has achieved significant results
• A major sponsorship - for example of your local football or cricket club

Which publicity medium should you select?

Once you have worked out what news you want to disseminate, you then need to decide who you will give it to. Is it of major national significance? If not, it may be suitable for an industry magazine or the local newspaper? Check to see what issues the media outlet is covering before you contact them so that you are familiar with their writing style and topics covered.

Now you are ready to write a media release and/or letter to the editor. Make sure you cover the 5 Ws: Who, What, When, Where, Why and How. Keep it punchy and if you want to provide more detailed background information, provide a hyperlink to a website where the material is easily viewed.

Before you send it off, make sure you have (or can provide quickly) a good quality photograph to accompany your story - as they say, a picture is worth a thousand words

Is PR for you?

So, if you're a small business owner who thinks that PR is just for the big corporate business, then think again ...... As Wendy McWilliams says, increasingly short-staffed media want news and human interest stories; and if you can tell a story that has both of these ingredients then why wouldn't they consider yours ......... And if you're still unsure about whether PR is for you, ask yourself what have you got to lose versus what do you stand to gain by giving it a go?

You might also be interested in having a look at Marketing Fundamentals for Small Business

Brian Carroll is the founder of Performance Development, a corporate training company based in Melbourne that specialises in management skills training, leadership development and executive coaching.

Mental toughness and success in small business

Mental toughness - what is it and how is it relevant to starting and running a successful small business?

Well one thing's for sure ..... If you've been running a small business for the past few years and you've been able to survive the GFC and continued uncertainty in the wider economic environment - then you've probably got what it takes mentally.

If you're  thinking of going into small business, mental toughness is a business capability that will be just as important in your commercial success as any other business skill such as planning, basic accounting or sales and marketing.

• Elite athletes have it

It's generally accepted that for any athlete to reach the elite level, they must possess mental toughness.

Over the years perhaps you may have seen as a spectator, certain "gifted" players competing in their selected sport - whether it was football, tennis, cricket, baseball, soccer or basketball for example, who seem to have been blessed with enormous natural talent. And yet some of these gifted sportsmen and women have failed to achieve the heights that their inherent potential had promised.

And you've seen other players with less natural talent go on to achieve victory and win respect for their sporting accomplishments. Why, many of us have asked at some point, did that person with all that natural talent, not win the race or win the tournament?

If we look at tennis by way of example, in 2001 Lleyton Hewitt won the US Open and in 2002 he won Wimbledon. At 20 years old he became one of the youngest players in the history of the sport to become the number one ranked men's tennis player in the world.

And yet as a player, his peers did not perceive him as having any particularly formidable tennis weaponry .... except for his tenacity. He possessed no killer serve, no knock-out forehand and wasn't very strong with his volleys at the net. But his opponents always knew that he would never give up!

Over the past ten years, Australians have admired him as a Davis Cup tennis player who many times has fought back from two sets to love down, to eventually win his matches in five sets. Hewitt was and is a spirited fighter - someone who you could trust would leave nothing on the court.

In many different sports, in contrast to Hewitt, we've seen other players at times that we've suspected of "tanking" ....... Maybe because it was stinking hot playing conditions, or perhaps the game seemed hopeless to them once they had fallen too far behind ...Whatever the reason, it seemed they had lost heart and no longer gave it their all, they would simply go through the motions of appearing to compete ..... But they just wanted to get back to the locker room, have a shower and wait for an easier game. It was not that they were lacking in physical fitness either - it was more they were lacking the mental stamina and the positive attitude necessary to endure the adverse conditions..

• Bad stuff sometimes happens in business

So what about mental toughness in business? ........  As you know, things do not always go as planned in business. Although good forward thinking should help to prevent many difficulties, never-the-less there will be some bad stuff that inevitably will happen. Events beyond your control will seem to come crashing down upon you and bring with them feelings of frustration, disappointment and maybe anxiety about the future.

For example, occasions when you might unexpectedly lose one of your biggest customers, or a new aggressive competitor enters your marketplace, or your computer system crashes and you lose important data, or sales plummet because of a loss of consumer confidence in the economy, or you discover that your business partner has been ripping you off .......

Mental toughness is having the stamina to persevere and the faith in your ability to bounce back. It's about putting your focus on finding a solution, rather than just complaining about the problem. And as Henry Ford said, "Think you can or think you can't - you're usually right"

• What characterises people with mental toughness?

Like Hewitt on the tennis court, people in small business with mental toughness don't give up, in spite of adverse conditions. They are persistent and determined. Like Sylvester Stallone who was knocked back by more than fifty film producers until he found one who was willing to take a risk in making "Rocky"  ....... And like J.K Rowling, the English author who was knocked back by more than one hundred publishers, until she found the one who was willing to take a risk on her book, "Harry Potter"

Mentally tough people are resilient. They bounce back from disappointments and look to the future with a positive mindset. They have a deep belief in the value of what they are doing and keep their eyes on their goal.

They have a strong work ethic and invest the time in relentlessly seeking to improve what they are doing. .

When things go wrong, they focus on what they can control - and quickly adapt to the things they recognise are beyond their control. They avoid distractions and also avoid making excuses - taking responsibility for any mistakes they make.

However they recognise that nothing great will ever be accomplished without periods of so-called "failure" ..... But they are not daunted by temporary set-backs. They look for the learning to be gained from their experience, and then focus on doing things better next time. This type of thinking means they are not constrained by a fear of making a "mistake"

As an entrepreneur and small business owner, you might gain some inspiration from remembering that Walt Disney was millions of dollars in debt before his company became a giant. He said "Although you may not realise it at the time, sometimes a kick in the head can later prove to be the best thing in the world for you"

And let's not forget that Steve Jobs in 1985 was forced to resign from Apple - and yet came back to lead the growth of the company to become one of the most successful organisations of the past decade.

• The long game for success

For most of us in small business, if success is to be achieved it will be accomplished over time and be measured in years rather than months (Although this is not true of all who have succeeded - there are examples of those who have quickly seized an opportunity in the marketplace and through their boldness have made a windfall profit).

However for most of us, the best advice is to recognise that small business success will be the product of a good idea, combined with careful planning, thoughtful execution and regular diligent appraisal of our progress. It is likely to be a success that is borne from taking a long term view of our business, and having the ability to rise above short term set-backs and persevere towards our goals.

In closing, let me share with you some words from the Scottish poet Robert Burns that come to mind when reflecting on the nature  of mental toughness and the challenges of running a successful small business
"Courage does not always roar like a mighty lion ....... Sometimes, it is but a small voice within, and it whispers to you quietly to get up and try again tomorrow"

By the way, if you're interested in reading more on how to cultivate the right attitude for small business success - then have a look at Developing Positive Thinking and some more great advice can be found in Self Motivation Tips

Brian Carroll is the founder of Performance Development, a corporate training company based in Melbourne that specialises in management skills training, leadership development and executive coaching.