Profitology

Category: Small Business

  • Attention Business Owners: Are you Wasting your Time?

    Attention Business Owners: Are you Wasting your Time?

    We’ve all heard the saying everyone has the same 24 hours in a day, choose how you spend your time wisely. Yet we are all guilty of watching the clock tick by, getting to the end of the day and not feeling like we have accomplished as much as we planned to do.

    Worse still, we use our 24 hours ineffectively, convincing ourselves that because we are “busy” we are making the time spent worthwhile.

    One common example of this is being active on social media. Even if we are disciplined enough to not get caught up in chatting with friends, or flicking through our neighbour’s holiday snaps, we often are guilty of spending a vast amount of time contributing in group discussions, liking and commenting on business posts and sharing content on our business page. All worthwhile exercises of course, if there is a strategy behind the activity to further your business results.

    Another example is attending networking events and lunches to make new contacts meet prospects and raise your profile. Many times people attend these events with no planned outcomes or agenda, hoping they will meet the client of their dreams, only to find they are being handed multiple business cards with promises to catch up for coffee, with each party hoping it will further their business.

    These are two common time wasters in business, however, have you thought about how you are creating Time Theft with these ones?

    1.      Doing tasks which do not utilise your best skill sets or expertise, which could be done by someone else

    2.      Repeating yourself when giving directions and delegating tasks to another team member.

    3.      Re-writing letters, emails, quotes, and other correspondence from scratch each time you prepare a document

    4.      Constantly having to look for files, information or resources because it is not stored in sensible, easy to find, places

    5.      Having to chase up where an item of work is up to as there is no formal workflow system in place to collect and report on this information

    There are many more cases where we waste time in business (or our days in general) because we don’t take the time to set up systems and processes to create efficiencies and save time in the long run.

    Systemising processes, focusing attention on those tasks which match our skill set, and outsourcing the ones which don’t not only improves productivity, it makes the day far more enjoyable.

    I challenge you to take note of how you spend your day for a week and look for those tasks which you find yourself repeatedly doing. Then ask yourself two questions.

    1.      Do I need to do this task?

    2.      If so, how can I streamline it so it doesn’t take as much time?

    How much Time Theft are you guilty of?

  • Why I wish I didn’t use a Business Mentor for my business

    Why I wish I didn’t use a Business Mentor for my business

    After I had been operating my business for a few years, I found myself stuck in a rut. Although the business was growing, I was not achieving the results I wanted out of my business, and certainly hadn’t achieved the outcomes I had hoped for and aspired to when I first established the business.

    It was at this time I met and engaged my Business Mentor to assist me in turning the business around. I couldn’t say the experience was smooth sailing and without challenges. Sometimes I wished I hadn’t made the decision to work with a mentor.

    Why did I struggle with the mentor/mentee relationship?

    1.      He challenged me to reconsider the value I was providing to my clients and to have the confidence to set my fees appropriately/accordingly

    2.      He encouraged me to revamp my business model so that I was only working with those clients who were profitable

    3.      He encouraged me to step outside my comfort zone in terms of the way I conducted meetings with clients

    4.      He taught me the importance of “being present” when with family or at work. I often struggled with switching off when I was at home and would find my mind wandering to thoughts about work.

    5.      He provided me with a tool to understand the dynamics of my team, their strengths, and how to best utilise their attributes to prepare those tasks which come naturally to them.

    6.      He made me cry… often… which is a testament in itself of the boundaries he pushed me through.

    Of course, my headline is said in jest. I am extremely grateful for the mentoring I received from my business mentor. He guided me to push the boundaries, create clarity on services I wanted to provide, and those clients I enjoyed working with. Most importantly he was a trusted sounding board, with an unbiased, outside perspective for me to share thoughts, ideas and gain insights.

    It goes without saying, if I wasn’t prepared to make changes, or take actions based on our meetings it would have been a complete waste of my time.

    I’m sure we have all experienced times when a sporting coach, teacher, parent or mentor has urged us to stretch our boundaries, for better or worse. How did you fair?

  • Why Procrastination Exposes Insecurities

    Why Procrastination Exposes Insecurities

    I don’t think I know anyone who hasn’t delayed starting a task at some time in their life. Whether it be putting off an assignment, delaying making a phone call or avoiding that difficult conversation with your boss.

    Wikipedia defines procrastination as the avoidance of doing a task that needs to be accomplished. It could be further stated as a habitual or intentional delay of starting or finishing a task despite its negative consequences.

    Procrastination is often linked to poor time management skills. I have come across many tips on how to implement productivity and/or time management processes to overcome procrastination.

    However, I recently stumbled across a comment by Gary Vaynerchuk that Perfectionism is a disguise for insecurities. This led me to ponder whether Procrastination is actually a display of insecurity.

    Why Insecurity is Hidden by Procrastination

    As I considered this concept, I thought back to all of the times I have procrastinated over the years and I must admit that more often than not the delay of doing a task has been due to a lack of confidence rather than a lack of time.

    I have put off making phone calls to prospective clients due to uncertainty as to what the outcome would be. Rather than facing the possible bad news of a No, I made excuses for myself as to why it was not the right time to pick up the phone.

    I have delayed commencing a task because I have lacked the experience and not wanted to appear incompetent in front of a client. By delaying, I have hoped that some form of inspiration would strike to guide me as to the best way to proceed.

    I have delayed making phone calls, or holding meetings to deliver bad news to a client, fearful of what their reaction would be. Often finding after I took the plunge, the reaction was nowhere as bad as I imagined, and actually caused myself unnecessary worry.

    Another great example of the existence of procrastination to hide an insecurity is when I ran my accounting business and assigned a large task to one of my team members. It was a task which she had not completed before as a whole, however, she had performed various aspects of the task in smaller pieces and I was confident she had the necessary skills and experience to complete it.

    Despite the encroaching deadline, she avoided starting the task as it was daunting for her, and she was afraid of appearing incompetent. The task in its entirety was daunting, and she did not want to make a mistake. A fact she admitted to me when we sat down to discuss her progress and the issues preventing her from making a start.

    Sure enough, when we broke it down in to manageable actions, she was able to complete the task with a little hand holding and guidance. However, the job was rushed in the end, and it was a push to have it completed by the deadline.

    What Procrastination has taught me

    Putting off a task isn’t going to make it any easier. There will be no magic wand or solution which does the task for you.

    Starting a task early gives you time to research and seek help to complete the task. An added bonus is you will then gain the experience and confidence to take on similar tasks in the future.

    Next time you are asked to do something you lack confidence in, bite the bullet, get the job done, and feel the weight lift from your shoulders as you move on to those matters which fall in to your comfort zone.

    Share your thoughts. When you procrastinate is it due to a lack of time, or are you actually covering up an insecurity?

  • How I learnt more about running a business from selling one than I did in 10 years of operation

    How I learnt more about running a business from selling one than I did in 10 years of operation

    They say hindsight is a wonderful thing, and the same can be said about learning (and applying) business principles. I gained a lot of insights about successful business practices after I sold my business than I did from 10 years of operations. Many of the lessons came from reflection after the sale, and others were learnt during the process of transitioning to the new owner.

    The transition process gave me the unusual opportunity of observing the results of business decisions and activities. Although I was still employed in the business, the business was no longer under my control and I benefited from seeing the results of decisions that were made by someone else. (Admittedly, I often struggled with this aspect – it is extremely difficult letting go of something you have built up over a 10-year period.)

    I became aware of how certain actions I had taken when I owned the business had hindered on its overall success. It was the sale of the business which finally hammered home the importance of valuing your product and service. This was an aspect I had always grappled with and the greatest lesson I take away.

    If I am truly honest, I admit the things I learned about running a successful business I already was aware of. The sale process simply exposed the areas which needed improvement and magnified those aspects where I was excelling.

    So, what did I learn and/or reaffirm when I sold my business?

    1.      Relationships are key. Although I have always known that a strong business is founded on good relationships with clients, it wasn’t until after I sold my firm that I truly understood how valuable maintaining a solid relationship is.

    2.      Focus on the Client. Put yourself in your clients’ shoes, how would you like to be treated, how can you wow them, would you be happy with the result you are providing?

    3.      Busy does not Equal Success. If the profit results don’t reflect the level of “busy” you are experiencing there is something wrong with your business. This is a result of your price point being too low, your costs being too excessive, there are inefficiencies within the business, or a combination of all 3.

    4.      Value Yourself. In addition to the point above, you need to be confident with the value you are offering to your clients and customers. If you do not charge an appropriate price to reflect your value you will ultimately go out of business.

    5.      Let Go of Control. If you want to build your business, and continue to prosper, you need to be prepared to delegate to staff, trust them to do their job, and accept that at times they will make mistakes. You can’t micromanage all of the tasks and grow a successful business.

    6.      Your Team is your Greatest Asset. Treat your team as you would like to be treated and their appreciation and loyalty will be evidenced by their commitment to, and performance in, your business.

    7.      Not Everyone is Your Customer. You will not be able to run a successful business by trying to please all people. Find the aspect in which you will excel, your point of difference, or market niche. You only need enough customers who share your vision and are looking for your offerings to fill the capacity you have available within your business. Sing to those customers and you will have an enjoyable, successful business.

    8.      There is nothing wrong with Being Small. Being a small business gives you the advantage to make changes quickly, adopt new processes and technologies giving you an edge over your competition.

    What I learnt most about being in business is that no one has all the answers. Even the most successful business owners make mistakes and have areas in which they can improve. You will benefit immensely from learning from your peers, sharing stories and observing each other’s strengths and shortcomings.

  • 30 harsh realities about being in business

    30 harsh realities about being in business

    Whether you have been in business for a number of years, or are relatively new to business, you have probably come to appreciate the realities of business.

    When you first started out in business you likely had dreams of changing the world, enjoying flexibility and freedom and yet you may have found yourself soon accepting that being in business is not a walk in the park.

    Below is my list of 30 harsh realities of being in business. I encourage you to pause and consider if any of these resonate with you, and if so, ask yourself which changes you will implement, or actions you will take to acknowledge those points.

     

    1. The buck stops with you.
    2. There is always a better way to do something.
    3. Businesses should run on systems and people should run the systems.
    4. Having a consistent profitable pricing system is fundamental to your growth and survival.
    5. Great technology will not correct bad process.
    6. Selling is an exchange of value. If you don’t sell, you can’t add value.
    7. If you discount your prices, or give something away for free, you are telling your customers that you do not value your product or service. How do you expect them to?
    8. If you compete on price you will eventually lose to the bigger companies with deeper pockets.
    9. Your customers do not care about you. Your customers only care about what you can do for them.
    10. Being small doesn’t mean you can’t provide more value than someone who is big. Being small small means you can adapt swiftly and easily to the changing and individualised needs of your customers.
    11. Being new doesn’t mean you can’t provide more value than someone who’s been around a long time. Being new means you can offer a different approach relevant to your customer demands.
    12. You are far better employing someone with a good culture fit and training them, than employing an expert who doesn’t suit your culture.
    13. You only ever have one of two problems, a systems problem or a people problem.
    14. Your staff will be more motivated by their personal goals than by your business goals 15. Just because you’ve always done something that way, is not a good enough reason to keep doing it the same way.
    15. The experience of a poor quality product or service will be remembered long after the delight of a cheap price is forgotten.
    16. If the experience you provide is poor, you will lose to someone’s whose isn’t.
    17. If you’re not using video as a communication channel to prospects and clients, you need to start.
    18. The only 2 questions to ask yourself are: “Will this help me to serve my clients to a higher level and have a greater impact on their business?” And “Will this help us to grow our revenue and our profits?” Everything else is a distraction.
    19. Taking decisive action is the only force that moves a business forward.
    20. Mistakes are opportunities to learn and improve.
    21. Every problem has a solution.
    22. You have limited time and resources to run your business. Make sure you utilise them appropriately. As a guide, 80% of time in the business and 20% of time growing and improving the business.
    23. Persistence and perseverance are key virtues to hold. Nobody created a successful business by quitting.
    24. There is no one true definition of success. Success is in the eye of the beholder and depends upon your own individual goals and aspirations.
    25. Recreating the wheel wastes time, energy and money. Learn from those around you who have already forged the path.
    26. Knowledge isn’t power. Action is.
    27. You can’t continue to do the same thing over and over and expect different results in your business. If something is not working, change it.
    28. Turnover is not a measure of business success. Profit is.
    29. Social Media Likes and Followers is not a measure of business success. Profit is.
    30. Profit is not an event at the end of the year. Profit is something you work consistently towards with each business decision and action.

     

    Have I missed any, or are there some you don’t agree with?

    Share your thoughts below.

     

  • Profit is not an accident

    Profit is not an accident

    All too often, when presenting business owners with their end of year financial reports, I would be asked the question “Where is the profit?” The common consensus appears to be that profits should be cash in the bank.

    The accounting principles, however, dictate that profit is applied on the balance sheet in the form of debt payments, asset purchases, amounts owing from customers and stock holdings.

    I beg the question: if the business doesn’t have the cash does the profit really exist?

    Is there a guarantee the stock holdings will be converted to sales and hence cash? Will the customers pay their accounts? Does paying down debt benefit the business or the business owners in the short term?

    It appears to be commonly accepted that Business Owners have little or no control over their profits and far too many treat it like a surprise at tax time when they learn how much profit they generated for the year. A bit like an excited kid hoping Santa will grant them their wish at Christmas.

    Profit is not an accident.

    A business owner can control the profitability of their business, if they take responsibility for understanding how their business makes a profit, and which actions they need to take to produce a profit.

    These actions involve acknowledging the basic principle of profit; profit equals income minus expenses. It goes without saying that in order to make a profit your income must be greater than your expenses.

    However, it is not uncommon for business owners to incur expenses with the expectation, or rather, hope, that they will generate enough income in the future to cover those expenses. They spend now on the basis they will land a dream contract or a windfall of large sales in the future.

    In reality, there is no guarantee of future income, and a business owner can do little to control it. On the flipside, a business owner has the ability to control and minimise the expenses of the business.

    A business must operate, or live, within its means to be profitable. If income drops, so too must expenses.

    This may mean having to make drastic cuts and look for alternative methods to generate the income for the business.

    When was the last time you sat down and took a good look at your expenditure, with the view of cutting it back?

    It may not be possible to reduce expenses significantly overnight, however a simple review of your profit and loss, or better still, the transactions within your bank statement will identify those costs which you may not require.

    Up for a challenge?

    Once you have culled the “low hanging fruit” of the expenditure items, its time to start thinking more creatively about ways you can significantly cut costs and improve the bottom line.

    The logical step is to look for alternate suppliers or ask existing suppliers for lower rates.

    Even better, would be to consider removing the expense altogether. The process of stepping back and considering how essential the expenditure is may trigger innovative ways to achieve the same results.

    Bringing in an external party will help you achieve this more effectively, as they are not as close to the business and can look at avenues from a different perspective. I recommend you consult with your accountant, business adviser, or trusted colleague to assist with this process.

    Take a chance. You may be surprised at what you come up with.

  • Risky Business: What if you had EVERYTHING to lose?

    Risky Business: What if you had EVERYTHING to lose?

    Walt Disney, Colonel Sanders and Reed Hastings are examples of wildly successful business owners who were either bankrupt or had very little when they launched their business.

    They had nothing to lose from taking a risk and persevering with their vision.

    Early in my career one of my colleagues often said to me “What’s the worst that can happen?” At the time this was very appealing to my single, attachment free life and encouraged my risk taking attitude when making decisions.

    Fast forward 20 years and my circumstances are very different. I’m married with 3 children and a substantial mortgage to boot. Added to this is our less common circumstance of living with and caring for my husband’s disabled mother who depends upon us to provide her with support and a suitable roof which accommodates disabled access and functionality.

    The answer to the question “What’s the worst the can happen?” when considering a risky venture now poses different thoughts and responses.

    What if taking a business risk resulted in not being able to meet the mortgage repayments? Sure, we could sell our house and live elsewhere, but this has complications with catering for accessibility needs for my mother in law.

    I acknowledge I’m not the only one who has circumstances preventing or screaming caution from taking business risks. It is not uncommon when considering business opportunities or ventures to be mindful of the negative impacts the leap may have on your family should the venture not be as prosperous as you hoped.

    We now are faced with the question: “What if you had EVERYTHING to lose?”

    What measures could you take to execute your business idea, or achieve your goal, whilst minimising the potential misfortune of failure?

    You could take intelligent risks by:

    1. Having a Plan A, a Plan B and a Plan Z. Reid Hoffman, founder of LinkedIn and co- author of the Startup of You with Ben Casnocha, discusses the importance of having three plans.

    Plan A is what you are doing right now. Plan B is an overview of the parameters of where you will shift to if you discover Plan A isn’t working. Plan Z is the lifeboat if something goes drastically wrong with Plan A & B. It is designed to give you peace of mind to adopt the risks of Plan A & B.

    2. Researching the market, the potential risks and pitfalls of the idea, and considering the existing options available on the market.

    3. Utilising your existing networks, or a business mentor, to evolve the idea, considering the possibilities and ensuring the idea has merit. It’s very easy to get caught up in the excitement of an idea and not consider it’s feasibility.

    4. Setting a budget for your expenses, asking yourself if you really need to buy that item or incur that expense before spending will encourage creativity and innovative ways of implementing the idea with minimal risk.

    If you are passionate about your business idea, understand the risks and make intelligent decisions to mitigate any negative impacts of those risks you have a greater chance of succeeding with your business idea.

  • Embrace the Naive Expert

    Embrace the Naive Expert

    n my role as Business Advisor, I meet with an average of 15 business owners a week, and of those 15, typically 3 are business owners I haven’t met previously.

    I am truly in my element in this environment. I thrive on meeting new people, learning about their business ideas, gaining insights into industry “quirks” and experiencing the motivation and drive entrepreneurs have for making a difference in their community.

    When faced with industries or business concepts I am not familiar with I have, on occasion, found myself apologising for not being well versed in the particulars of the industry.

    Until recently that is. I was fortunate to sit in the audience of a presentation by Duncan Wardle, Former Head of Innovation and Creativity for The Walt Disney Company. Duncan introduced the concept of including a Naive Expert when holding brainstorming sessions, and making important business decisions.

    He spoke of the benefits of having an unrelated person in the room to ask the “silly questions” and encourage the group to think differently.

    Armed with this insight, my perspective of having limited industry knowledge has changed. I now embrace my naivety of industry quirks, and use it to my clients advantage when working with them to provide insights in to their business operations and strategy.

    It provides me with the avenue to ask the basic questions, to challenge the status quo, to remove the blinkers, and to present out of the box ideas. All the while applying my knowledge of business principles to achieve sustainability and longevity.

    This approach empowers the business owners to consider their options from other angles and to come up with a business model which sets them apart from their competition.

    So when planning your next brainstorming session, or if you’re feeling stuck in your business, reach out to an unrelated party, who DOESN’T know your industry or business. They may be your most valuable contributor.

  • Set the Rules of the Game Before you Start: What to include in a Shareholders’​ Agreement

    Set the Rules of the Game Before you Start: What to include in a Shareholders’​ Agreement

    You’ve come up with an exciting business idea, you’ve formed a relationship with a business partner. You’re looking forward to launching your business.

    Whilst all partners are on favourable terms, all is rosy, now is the time to set the rules of the game.

    A shareholders’ agreement is used to outline the business practices, matters to consider in the event there are disagreements or unfortunate circumstances arise. It is the prenuptial before your wedding vows in the business world.

    What do you include in a Shareholders’ Agreement?

    Below are some matters to consider when drafting a shareholders’ agreement with your business partner(s):

    1.     Those decisions which can be made by one individual partner

    2.     The maximum dollar amount to be spent without consent from the other partner(s).

    3.     Decisions which require a majority vote, or a greater than a certain percentage in favour vote.  75% vote for example

    4.     The roles and responsibilities of each partner

    5.     What happens if one partner wishes to exit the business. Consideration can also be given where ownership is not equal and one party has a controlling vote to ensure he best interest of all parties is taken in to account. This is known as Drag Alongs & Tag Alongs

    6.     What happens if one partner dies or is no longer able to work in the business

    7.     A dividend policy for payment of profits

    8.     The nature of the business and process for changing the overall purpose of the business

    9.     How directors will be appointed and removed

    10.  Requirements for personal fund contributions, eg how much each party will contribute, in which circumstances additional funds can be called upon to inject in to the company. How the funds will be treated. Eg as a loan, equity, or a gift

    11.  The process if there is a deadlock or dispute between the partners

    Once you have this agreement in place you can focus on building your business, with comfort that there are mechanisms in place to manage unforeseen circumstances and that you have agreed upon the expected outcomes and profit share of the business.

  • Why the smaller pie results in larger profits

    Why the smaller pie results in larger profits

    Would you rather have a slither of the large pie, or the entire small pie?

    Are you likely to hit more targets if you rapidly fire a machine gun randomly, or take precise shots with a sniper gun aimed at a target?

    There is a misconception that you will be more successful in business if you service everyone and anyone. The thought process exists that the larger you cast your net, the greater the chance of catching enough fish to meet your needs.

    In reality, it has been shown that the reverse is actually the case. Where you target your product or services to a small segment of your market you are more likely to attract the volume of customers you need to generate a profitable business. When you are fishing for a certain type of fish, you get to know the attributes of that fish, where it swims, what depth of water it prefers, what it eats. As a result, you place your net in those waters where you know those fish swim. You choose the time of day most appropriate for catching the most possible fish, and you use a certain type of bait which is attractive to that type of fish.

    You become an expert in fishing for this type of fish, hence there is far greater success from deliberately fishing to catch the fish you want, with far less effort expended.

    Creating a niche market generally leads to a sense of simplicity within your business which can be achieved by limiting the products or services you sell, targeting a particular customer segment, and/or creating automation and streamlining processes.

    The benefits of achieving simplicity is that it gives you the opportunity to replicate or scale the model, thus enabling you to penetrate other markets or locations.

    An example of a business which has developed a niche business model is The Posy Post.

    The Posy Post is a florist who creates one bouquet, or posy, a day, at the same cost every day. The price includes delivery of the Posy. Order are placed by 11.30am for delivery that day.

    What I like about this business model is the simplicity. Customers are not presented with numerous choices, causing confusion and barriers to the purchase. The price point is the same every day, and there is value for money in the quality of the posy.

    I believe this model appeals to people who are time poor, who want to give a gift of flowers without spending a great deal of time choosing which arrangement. It also appeals to an audience who do not have a great deal of knowledge of flowers.

    How do I choose a specific target?

    1.     Consider which aspects of your work or business you enjoy doing the most. For example, it may be a particular aspect of the service you deliver, or you may gain great satisfaction from working with certain clients.

    2.     Where do you add the most value in your business?

    3.     Which aspect of your business is the most profitable?

    If you have been casting your net too wide, now is the time to hone in on which markets will represent a better catch for your business. Consult with a business advisor, accountant or a colleague to step back from the business and analyse it with a Bird’s Eye Approach.

  • Profit from the Psychology of Pricing

    Profit from the Psychology of Pricing

    It is often said “You get what you pay for” with the perception of quality of product being linked to the price you pay. More often than not, this turns out to be true, cementing the belief that the amount you are willing to pay does reflect the quality of the product or service you receive.

    When setting prices, business owners are often misguided in to setting a price based on what they think their customers are prepared to pay. Generally, this is lower than necessary to deliver sufficient profits resulting in the business owner working long hours with very little, or no reward.

    Adopting a pricing strategy which positions your brand as delivering quality and value-based products presents the product or service as an attractive option, often gaining more customers and sales.

    This is evidenced in the case study from Robert Cialdini’s “Influence”, which discusses how a local jeweller managed to sell out of turquoise jewellery because it was accidentally priced at double its initial price, instead of half (which is the price she had intended).

    The inflated price now made the jewellery irresistible to buyers, who had before ignored the colour over all others (which was the initial reason for the intended price cut).

    Now that the price had been raised, the context of turquoise jewellery had a “high value” in the buyer’s minds, even without an explanation!

    How do you increase your prices without scaring your customers off in droves?

    If you are innovating a new product or service, customers do not have a price point to reference to and are more likely to accept any price you nominate.

    However, if you are competing with others in the marketplace and choose a high price point you need to give them a reason to choose your product over others by standing out from the crowd.

    Apple is an example of a company which has established its brand as a high quality, yet highly priced product with people lined-up to purchase its product.

    Apple has created this image through the use of its high-quality packaging so that the experience of opening the item out of the box is a thrill to the customer. Further, the product launches create scarcity by limiting the number of sales per day.

    How do you amplify your product or service to gain market appeal?

    Quite simply, to position your product or service at the top end of the market is to make it look fabulous.

    You do this by:

    1.      Creating a story about your brand which attracts interest as well as fulfilling a need

    2.      Understanding the desired outcome of your target market, and ensuring the product not only delivers, but is how it delivers is communicated

    3.      Articulating the benefits of the product or service to the customer

    4.      Providing testimonials and case studies from existing customers

    A final point for consideration, buyers are irrational and tend to believe that the most expensive option is the best. Let’s face it, if there is nothing setting off their alarms, why wouldn’t they?

  • Planning for Staff Absences

    Planning for Staff Absences

    I was asked recently for my thoughts on how to plan for unexpected events in business such as when key staff members resign, take annual leave or are injured and unable to work for an extended period of time.

    I share my thoughts here for consideration.

    A business can reduce its reliance on people by concentrating on defining the structure and processes for its operations.

    With structure and processes clearly defined there is consistency in the delivery of your product or service, staff are able to make decisions and take actions confidently. Further, in the event of staff absences, other team members are able to step in and adopt their tasks.

    Once you have defined and implemented your systems the key is to find the right people to follow those systems.

    Finding the right people is a matter of matching their individual values and attributes with the values and culture of the organisation. Where a team member does not share the values of the organisation there will be tensions and frustrations from both management and the individual themselves. The organisation will suffer as a result of constantly needing to monitor the work and performance of the person potentially resulting in poor customer experiences and loss of time in micro management.

    Under these circumstances, a team member who does not share the core values should be encouraged and supported to find a company which aligns with their values.

    Gino Wickman, author of Traction: Get a Grip on your Business, states that for an employee to be a “right person” for a position they must Get it, Want it and have the Capacity to do it.

    In the case where the right team member does not have the capacity I recommend they are either trained and mentored to fill their role, or are transferred to another role within the organisation which best suits their skills and capabilities.

    To recap, a successful business focuses on structure and processes first. Implementing the structure ensures the business is not dependent upon any one person, and no person is irreplaceable.

    Having the right people in the right roles will lead to your long term success.