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  • What Babies Can Teach Us About Business Success

    What Babies Can Teach Us About Business Success

    Lately, I’ve been fascinated watching my daughter, Isabelle, grow from a baby into a toddler.

    On many occasions, I’ve observed her squint her eyes, steady her body, and push her chubby little legs – onward. Gazing toward me, she would stagger forward, fall repeatedly, and get back up again – eager to continue walking until she has mastered the technique.

    I’ve witnessed her struggles and admired her perseverance.

    What are Babies Trying to Tell Us?

    We have no idea what babies are thinking as they develop into toddlers.

    Where do they get such will and eagerness to keep trying despite stumbling and falling so many times?

    All I can imagine is that they must have no concept or fear of failure. Why? They probably see no reason why they should not succeed.

    To add to their chances of success is our constant stream of enthusiastic encouragement and excited cheers as they progress from moving around holding to furniture to taking that tentative first step to finding their balance through continued practice, and finally walking confidently across the room and around the house.

    Like most supportive parents, you were there when your babies tottered and toddled. Whenever they fell down, you stood there smiling, encouraging them to give it another try. If you believe they can do it, then why shouldn’t they?

    How does this relate to business?

    It’s not unusual for a small business owner to suffer setbacks. It’s how you handle those obstacles that sets you apart from your competitors.

    Will you be like Isabelle and get back up to try again? Or will you give up on your dream? More importantly, do you have a cheer squad urging you to go on?

    Be it friends, family, colleagues, or a business mentor, it’s vital to have someone to turn to when times get tough. They help you pick yourself up and take that next step.

    It’s just as important to have them by your side when you have reached a milestone – to share a celebration of your victories.

    Watching Isabelle’s unrelenting determination to walk has reignited my belief that failure is not an option.

    What’s your source of inspiration?

  • 5 Proven Business Growth Ideas You Can Actually Use

    5 Proven Business Growth Ideas You Can Actually Use

    You’ve survived the startup stage of your business. Great work.

    What could be more fascinating and challenging than giving birth to a company? Well, like parenting, the hardest (and most thrilling) part is yet to come.

    Most entrepreneurs think that setting up a business is the most dangerous stage in their entrepreneurial venture. Yet the truth is, growing a business can be far more exciting and perilous.

    Think about it. You are most vulnerable when your business is at the verge of growing.

    As the demand for your promising product and service increases, you are busier than the day you started your company.

    Even the manager you hired is likely preoccupied with daily operations. Your employees also struggle to meet the order deadlines while keeping the quality of work high.

    Five Tested Business Growth Tips

    Many books have been written about ‘growing a business’. The problem with most of them? At best, they are impractical,  filled with inspirational quotes and vague concepts that do not resolve the real issues, frustrations and concerns faced by business owners.

    Instead of looking for quick-fix solutions, you need to examine timeless business principles to succeed when you reach the critical stage of growth:

    1. Refine or redefine your vision for the company. When you started your business, growth was one of your obvious goals. It could be through better sales, larger profits, greater market share, etc. Now,  it is worth asking yourself where you want to take your business in five, 10, or 20 years and  visualise exactly how you would get there.
    2. Identify potential opportunities for business growth. Know as much as you can about your target market and its current players through analysis and forecast. What is the nature of the new market you want to enter? Is it predictable or highly volatile? How would you size up the present players in that market? Can you win against them? If not, find underserved niche or customers and serve them better.
    3. Put in place systems, controls, and processes for growth and expansion. With your current organisational activities, will you be able to handle growth properly? One significant area worth looking into is your financial control. Some tough questions you need to answer are:
    • Have you set up seamless systems for managing your cash flow?
    • Do you know how to timing purchases right?
    • How do you effectively manage your accounts receivable?
    1. Surround yourself with great people who share your vision. Do you have the right people at the right seats? Does everyone in your company understand and work according to the vision, core values, and standards you have developed over the years? Remember that you need a cohesive team in order to move forward. Know when and how to hire, reward, review, fire and retain employees.
    1. Bring in professionals to poise your company for growth. As a business owner, you have so much to do in so little time. No wonder why some entrepreneurs look for professionals to help them manage the financial, marketing, and sales aspects of their operations. These people are business advisors with valuable skills and experience to help you come up with a structure, a system, and a sound strategy to scale up your business.

    Bonus tip: choose only one (tried and tested) entrepreneurial operating system and put it to work. Gino Wickman, author of the book, Traction:Get a Grip on Your Business, believes that there are only six fundamental factors that determine the success (or failure) of your growth attempts:  people, vision, data, issues, process, and traction.

    When all these moving parts work together  toward the same goal, your business can begin to grow successfully just as other companies have been doing for years.

    Over to you: Which areas of your business operations need more work to handle potential growth and expansion? What do you believe are the keys to sustaining business growth?

  • An Insanely Effective Way to Handle Customer Complaints

    An Insanely Effective Way to Handle Customer Complaints

    How would you face an upset customer?

    Or if you’re the business owner or manager and you rely on your staff to resolve customer complaints, how do you know it is done successfully?

    Do you have an effective complaint management system in place in case of problems or breakdowns?

    As a growing business, you will inevitably receive negative feedback or harsh criticisms from customers who are dissatisfied with an aspect of your product or service.

    Complaints are simply statements of frustration, disappointment or dissatisfaction due to unmet expectations or undelivered promises.

    While you are fairly optimistic when running your business, you also know that things could go wrong. Someone in your staff will make a mistake. A lapse in quality control can result in an error that has to be rectified. An accident might cause a delay in delivering your promised goods or services. All of these could lead to circumstances that make customers very unhappy.

    How you handle these operational flaws or breakdowns greatly determines your market position and business direction. Many business owners shy away from this subject but there is no better time to discuss complaint handling process than now.

    As many entrepreneurs join the competitive and crowded marketplace, a prudent business owner can set his company apart through excellent handling of complaints.

    Complaint Handling Strategy – A Primer

    • “Never call a customer a ‘liar’, a ‘scammer’, or any offensive term – even in your mind.”
    • “Don’t take the complaint personally. Defuse the tension (by allowing the customer to vent his or her frustrations or anger) and then gather facts to arrive at an appropriate solution.”
    • “Listen attentively to the customer’s complaint and try to understand the root of the problem.”
    • “Put yourself in your customer’s shoes so you can feel and show real empathy.
    • “Thank the customer for bringing up the issue, quickly fix the problem, and offer assistance for other related concerns.”

    These are just among the most common complaint handling tips you can find online. Master them but don’t limit your knowledge to these wise words.

    Specific complaints call for specific resolutions. If you have diverse customers, you’ll likely receive mixed reviews of your products or services. In the ideal world, all customers are happy with what you have to offer.

    But the real world is far less forgiving of mediocrity or mishap.

    Poor products and substandard services don’t last in a constantly evolving market. Innovation is key to survival and expansion. But how do you keep improving? One way is to effectively use customer feedback.

  • How to Foster  a Positive Company Culture? (It’s Not as Expensive as You Think.)

    How to Foster a Positive Company Culture? (It’s Not as Expensive as You Think.)

    Like most business owners, you’ve probably heard (or learned from experience) that positive workplace culture leads to high performance.

    That’s why you only hire competent, trustworthy, and enthusiastic people who share your values and vision in the first place. You understand that a healthy and strong company culture largely depends on  the right mix of talents.

    Everyone you employ contributes to forming your unique company culture. Culture is a result of the beliefs, values, interaction, and commitment among the people  in a group. It develops as members collaborate and work together to meet their common goals and needs.

    Gym stipend, game consoles at work,  free lunch on Friday, and mobile bills coverage – all these are great perks workers would be overjoyed to have. Many believe these visible aspects of office culture are the most effective way to attract the best talents and ensure their satisfaction and retention.

    But that’s a common misconception many entrepreneurs are led to believe.

    Although perks or rewards as such boost employee morale, engagement, and productivity – fringe benefits are not the same as company culture. Culture means more than these tangible privileges so try to look beyond these external motivations and rewards.

    For instance, look at the top-notch employers locally and globally. What makes their organisation so successful? Why do they have low or zero staff turnover? How do they develop a great workplace atmosphere many aspiring job candidates wish to be part of?

    The answer is simple but the data you need will not be easy to obtain.

    You should know the sharpest skills, the deepest motivations, and the diverse personalities of each of your employees and find out how to align them to your company’s vision.

    Great company culture, therefore, starts with the leader – that may be you or a group of executives making major decisions for the company.

    Not surprisingly, founders and leaders in happy companies pay a great deal of attention to work-life balance. Some of these companies even offer telecommuting privileges to employees who need them most. Other employers discourage their staff from taking overtime work t0 prevent burnout, stress or fatigue.

    Business is not pure science; it’s also an art of managing group dynamics. When your employees take pride in the work that they do and enjoy working with like-minded smart people, you’ve found the perfect mix.

    As you continue to observe the interaction and operation of the team, you’ll notice that some may not be  a good fit to the culture you envision to build. Thus, you have to decide whether to fire or coach (if possible) that person. Perceptive business leaders can manage this tough call.

    When staff at happy companies were surveyed what they love most about their job, the usual answer is ‘fun working environment’. Who wouldn’t want to work in such a place? Many workers have quit their high-paying job to get out of toxic work environment.

    Now, the question is, how do you create and maintain a fun, productive, safe, and caring work environment?

    The Recipe of a Great Company Culture

    There are many ingredients to what constitutes an effective company culture.

    Edgar Papke, author of the book “True Alignment: Linking Company Culture with Customer Needs for Extraordinary Results”, suggested that you can assess your current company culture by looking into these cultural keys:  hiring, role definition, customer interface, teamwork, structure, aligned values, power and influence, planning and goal setting, problem solving, decision-making, conflict management, as well as  incentive and reward. You may expand these keys as you see fit.

    As the leader of your company, your ongoing responsibility is to do everything you can to engage your staff in a collective action to achieve your shared goals and vision. As long as every employee  is on board about working hard and being accountable to each other, a positive company culture will begin to take shape.

  • Why a Complaint can be a Huge Gift

    Why a Complaint can be a Huge Gift

    A complaint is like an expensive piece of diamond jewellery concealed in an old newspaper. If you knew what’s hidden beneath the aged yellowish newspaper, you would be too eager to unwrap it. But seldom do people see beyond the ugly mask most complaints wear.

    Once you see the value that complaints add to your business, you will begin to approach it differently.

    No longer is complaint management a necessary evil. You will start to think of it as an opportunity to improve your service, retain current customers, develop brand ambassadors, and attract more potential customers. You will stop seeing complaint handling as a costly aspect of your business operation.

    Instead, you will see complaint management as a blessing, a learning opportunity, and a necessary ingredient to innovation. It’s your defence against competitors trying to woo your loyal customers with their massive product discounts and better customer service. It’s how you stay relevant to consumers’ ever-changing habits, needs, and demands.

    What’s your attitude about customer complaints? How do you evaluate your current complaint handling procedure? How can it be improved?

  • 5 Tips for Better Time Management

    5 Tips for Better Time Management

    Time management: it sounds easy enough. However, when you own or manage a small business, it’s too easy to get pulled from one crisis to the next and lose sight of all of the things you wanted to accomplish during the day.

    Ways to get more out of your day

    Good time management is a skill, just like sales or being able to creative effective marketing plans. To improve your time management skills, consider the following points:

    1.  Set deadlines. Too often we say that we’ll tackle this project or that one when we have a free minute, but does that time ever really come? Rather than schedule a project for that elusive free moment, give every project a deadline.  That way nothing will end up at the bottom of the pile.
    2. Delegate. There’s no rule that says the boss has to do everything herself. In fact, one of the most important skills of a good manager is the ability to hand off key projects to subordinates rather than feeling that you have to be “hands on” in every aspect of the business.
    3. Turn off distractions. Emails, Facebook, iPads and the like are fascinating and useful ways to communicate. They can also consume a huge slice of your day, if you aren’t careful. Better to designate specific times of the day to check your email messages and limit Facebook time to a set period, like 15 or 20 minutes.
    4.  Break your projects up into more manageable tasks. That huge, complicated project that you’ve been putting off and putting off will look a lot more manageable if you divide it up into smaller chunks, each with its own deadline. Before you know it, you’ll be more than half-way to completing the task.
    5. Prioritise. It’s tempting to do all of the easy tasks on your list first, so you can cross more things off. However, a more efficient way is to rank your day’s (or week’s) tasks in order of importance. By doing the most important things first, you won’t end up feeling so stressed at the end of the day.
  • When First Impressions Count…

    When First Impressions Count…

    I attended a local solicitors’ office this morning and upon arriving was immediately impressed with the appearance of the reception and waiting area. The receptionist greeted me warmly and instructed me to sit and wait for the solicitor to see me.

    Unfortunately, it was from here that it went downhill. Although I was right on time for the appointment, I was left waiting in the reception area for 20 minutes. During this time the staff carried on with their day as if I wasn’t there, and I was left stewing over how long I was sitting waiting, thinking about all of the other things I could be doing in that time.

    On the other hand, when visiting a financial planning office a few weeks ago, the receptionist was chatting to me while I was waiting to be shown into the meeting. I have no recollection of how long I was sitting there as I was involved in conversation and oblivious to the clock ticking.

    These different experiences cause me to ponder what it takes for a business to provide a memorable customer service.

    The actions of the staff (or lack of actions in the case of the solicitor) left an impression on me that I will take away with me. How do you want your clients (or prospective ones) to remember you?

  • 6 Tips for Naming your Business

    6 Tips for Naming your Business

    You’ve decided to take the plunge to start your own business. Now you have the task (fun, difficult or both) of naming your business. Following are some tips to consider when choosing a business name.

    • Define your brand’s attributes before you choose a name. When deciding on a name take these attributes into consideration to ensure the name reflects them.
    • Have a clear understanding of your audience’s age, gender, income and lifestyle, so you can create a name they’ll understand. Don’t use hip-hop terms if your target market is senior citizens.
    • Choose a name that is easy to pronounce. The coolest, slickest, most evocative name in the world means nothing when customers struggle to pronounce it or, even worse, pronounce it in many different ways.
    • Try and pick a name that people will never, ever forget. That means a distinctive, even outrageous name, for example Virgin.
    • Quality Home Furnishings is utterly unmemorable. Kangaroo Kites, however, is unforgettable. If you have any doubt, ask yourself: Who’s the leading global on-line retailer – amazon.com or books.com?
    • Pick an evocative name. One that makes you think of something, see something, hear something. A name that evokes an emotional response or that resonates in some meaningful, memorable way.

    Once you’ve chosen a name you need to ensure that it is available for use. ASIC is the regulatory body which oversees business name registrations.

    You can check whether your business name is available by conducting a search of the National Names Index at www.asic.gov.au.

  • Customer Service

    Customer Service

    Practicing excellent customer service is a very important factor in effectively running a business. It is vital as it is all about the people who help your business to function… your customers! They are the backbone of any organisation as they provide stability and are the main resource the business depends on to be able to operate. Without them your business simply won’t survive.

    Great customer service is very beneficial and rewarding for any business. It can be the one thing that sets your business apart from the rest and the reason why customers come to you over other businesses.

    Basic things to remember to optimise your customer service:

    Answering phone calls: You don’t want to miss out on potential customers and you don’t want to lose existing ones just because you were not able to be contacted. Ensure that someone is always available to answer phone calls and when that’s not possible, record a message so that customers understand why you can’t receive their call.

    Install multiple phone lines so more incoming and outgoing calls can be made, this is especially effective in larger organisations but will also benefit smaller ones if the phone is constantly being used for long conversations.

     Warm greeting: Always greet your customers with a smile and say “how may I help?” or “how are you today?” Ignoring or rudely greeting customers will make them feel unimportant and will immediately give them a reason to dislike your business.

    Train staff to greet customers professionally and personably to make them feel special. Existing clients should be greeted by name and new customers should be greeted by introducing yourself followed by asking their names.

    Keeping promises: If you fail to keep a promise to your customers they will see you as unreliable, which can result in them being frustrated and annoyed with your service and could potentially leave.

    The best thing is to not make promises, be realistic and honest.

  • How well do you know your business?

    How well do you know your business?

    All too often I see the turnover of a business climb only to find the profits remain stagnant or worse dwindle. Consequently, the owners and staff are working harder for little or no gain.

    So what are they doing wrong? There could be a number of reasons, but generally it boils down to one, or a combination, of the following:

    • Prices are too low

    • The product or service actively promoted is not profitable

    Take, for example, an IT company, which sells computer hardware, undertakes computer repairs and services business computer systems and networks. The owner of the business is always busy attending to computer repairs and selling upgrades predominantly for home users. Despite the constant flow of work, the business is struggling to make ends meet and the owner is forced to review the mix of products and services provided.

    Upon review the owner realises that the margins generated on hardware sales, and the fees earned from the computer repairs are insufficient to return desired profits. Home users are not prepared to pay a fee comparable to the value of time and effort contributed to the repair of their PC.

    Consequently, the owner changed the focus of the business and began to actively promote their business services, implementing a monthly maintenance contract. Within six months the profits had dramatically increased and the owner was able to turn away home user repairs and sales.

    If this sounds familiar it might only take an increase in prices, or shift in your business focus to turn the business around to a profitable venture. Where do you spend most of your time, and how much profit does that generate for you?

  • Is your business attractive?

    Is your business attractive?

    You may not have immediate plans to retire or sell your business, but is it on the cards in the next 5 or 10 years? The key to setting any goals is to “begin with the end in mind” and it is no different when planning your exit from the business.

    There are a number of ways to exit your business. Your exit strategy may vary depending on the needs of the owners, the industry type and the potential buyers. Following are the common exit methods or strategies:

    • Close the doors and walk away
    • Hand the business to a family member
    • Sell to a staff member or business partner
    • Sell to the public
    • Merge with a competitor
    • Market to a multi-national

    When planning your exit from the business you need to take into account the following factors:

    • How much you need to retire – ie what sale price do you need to sell your business to retire comfortably?
    • What are your plans when you exit the business?
    • Do you wish to maintain a minor role in the business and ease into retirement?
    • Do the new owners need you for an extended period of time to maintain business relationships & pass on vital knowledge?
    • What are the tax implications of exiting the business?
    • How easy is it for a new owner to operate your business?
    • Are there any potential successors, willing and able to take over the business?

    Unless you plan on exiting your business by closing the doors and walking away, you are most likely trying to maximise the sale proceeds from your exit. This involves undertaking measures to increase the value of your business. Below are methods you can implement to improve the value of your business:

    • Improve the profile of your brand by publishing articles, sponsoring events, running workshops or attending networking functions.
    • Encourage your team of staff to embrace the business policies, the vision and empower them to act on behalf of the business without the need to defer to you to make every decision.
    • Create sources of revenue which are contract based, such as monthly maintenance terms or annual subscription fees, to provide more confidence in the generation of future income as opposed to one-off sales on an ad-hoc basis.
    • Develop a customer database of names and contact details which can be used for marketing campaigns.

    Employing the above strategies will not only assist with improving the value of your business on exit, but will also assist with increasing the performance of your business. In addition, your return on investment will be enhanced during your final years of trading.

  • The Price is Right, or is it?

    The Price is Right, or is it?

    The pricing strategy of a small business often determines the ultimate success or failure of that business.

    Small Business Owners commonly set prices with a view of being the cheapest in the market, with no consideration as to the total costs involved with delivering their product or service.

    The following factors should be considered when setting prices:

    1. The total costs involved in providing the product or service, including cost of goods sold and overhead expenses
    2. Competitors’ prices and the quality of their product or service compared to that of yours
    3. The supply and demand of your product and service. For example, you are only one of limited suppliers of a product you have more control over the price that you set for that product.
    4. The planned position of your business within the market. Is your business placed at the top end of the market with superior quality and value-add features or do you aim to offer cheaper alternatives focusing on a high volume of turnover?

    The following scenario demonstrates how a price increase of just 1% can impact on the bottom line, compared to increasing sales volume by 1%.

    Table 1 – Increase in Sales Prices by 1%

    Initial Turnover

    $100.00

    1% Price Increase

    $101.00

    Less: Cost of Goods Sold

    ($60.00)

    Less: Cost of Goods Sold

    ($60.00)

    Gross Margin

     $40.00

    Gross Margin

     $41.00

    Less: Overheads

    ($32.00)

    Less: Overheads

    ($32.00)

    Net Profit

     $8.00

    Net Profit

     $9.00

    Table 2 – Increase in Sales Volume by 1%

    Initial Turnover

    $100.00

    1% Volume Increase

    $101.00

    Less: Cost of Goods Sold

    ($60.00)

    Less: Cost of Goods Sold

    ($60.60)*

    Gross Margin

     $40.00

    Gross Margin

     $40.40

    Less: Overheads

    ($32.00)

    Less: Overheads

    ($32.00)

    Net Profit

     $8.00

    Net Profit

     $8.40

    * Cost of Goods Sold increases by 1% due to the increase in volume of products being sold.

    A 1% increase in prices results in a 12.5% increase to net profit, whereas a 1% increase in sales volume only increases net profit by 5%. This doesn’t take into account the extra time and effort involved in generating the additional 1% volume of sales.

    Getting the price right is key to the overall performance of your business.