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  • COVID-19 Business Update – 24 June 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Second Round of Cash Flow Boosts

    If you received initial cash flow boosts, you’ll automatically receive additional cash flow boosts when you lodge your activity statements for each monthly or quarterly period from June to September 2020. The amount will be equal to the total amount of initial cash flow boosts you received and will be split in either two or four installments, depending on your reporting period.

    If you lodge:

    • quarterly – you will receive 50% of your total initial cash flow boosts for each activity statement
    • monthly – you will receive 25% of your total initial cash flow boosts for each activity statement

    You can find more information here, or alternatively, you may contact us so we can discuss your concerns.

    Minimum Wage Increase

    The Fair Work Commission has announced a 1.75% increase to minimum wages. This will apply to all award wages and the increase will start on 3 different dates for different groups.

    Group 1 Awards – from 1 July 2020

    • Frontline Heath Care & Social Assistance Workers
    • Teachers and Child Care
    • Other Essential Services

    Group 2 Awards – from 1 November 2020

    • Construction
    • Manufacturing
    • A range of other industries

    Group 3 Awards – from 1 February 2021

    • Accommodation and Food Services
    • Arts and Recreation Services
    • Aviation
    • Retail
    • Tourism

    You can find the complete list of awards in each group here.

    For those not covered by an award, the new national minimum wage will be $753.80 per week or $19.84 per hour. This applies from the first full pay period starting on or after 1 July 2020. If you’re not sure which award applies or if you have any questions, get in touch with us.

    Is now a good time to hire new staff?

    Unfortunately, many companies have had to lay off staff and downsize because of COVID-19. That means there is actually a window of opportunity for businesses looking to hire. There is a wealth of exceptional talent out there now that might normally be snapped up. It might not be this way for long so it could be the perfect time to hire. You need to do what’s best for you and your business and we’re happy to chat to help you make the best choice.

    Here are some ways to make the most of a growing talent pool according to an article by the Harvard Business Review:

    • Ask your top leaders to list three to five great players they would have liked to have hired over the past five years and then check in with those people.
    • Set up a task force to source potential candidates from target sectors and companies who may now be either jobless or open to change.
    • Interview and check references remotely with the same rigour you would in person.
    • Go out of your way to motivate the best candidates.
    • Don’t ignore the sourcing, retaining, and development of in-house talent.

    Instant Asset Write-Off Expansion

    The Instant Asset Write-off has been extended for six months to 31 December 2020, which means Australian businesses with less than $500 million annual turnover will have more time to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.

    You can find more information on which assets can you claim as an immediate deduction here, but feel free to contact us so we can walk you through the different thresholds, exclusions, and limits.

    Company Tax Rate Reduction

    Starting 1 July 2020, the company tax rate will be reduced to 26% for small- and medium-sized businesses, as part of a larger progressive plan to reduce the company tax rate to 25% from 1 July 2021. This applies to all base rate entities (BRE) – companies, corporate unit trusts, and public trading trusts – which have an aggregated turnover of less than $50 million where 80% or less of the entity’s turnover for the year is classified as base rate entity passive income. More details can be found here.

    If you need a registered agent to assist you, drop us a message.

    COVID-19 Relief and Recovery Fund

    The Australian Government has set aside $1 billion to support regions and communities disproportionately affected by the economic impacts of coronavirus. Support is extended to these industries:

    • tourism
    • aviation and transport
    • agriculture and fisheries
    • education
    • the arts

    You can find more details here but feel free to chat to us and we can find the right support for you.

    Free Financial Counselling for regional businesses

    The Government has committed $4.7 million to provide small regional businesses affected by COVID-19 with access to free financial counselling. You can learn more about the assistance for affected regions, communities and industries here. If you need more personalised and focused financial advice, you can also get in touch with us so we can guide you through the current economic downturn.

    COVID-19 Safety Guidelines

    SafeWork Australia has put together useful guidelines for a range of industries. The guidelines provide clarification on WHS laws, workers’ rights, risk assessments, hygiene, emergency plans and more.

    What’s next?

    We’ll keep you updated if anything changes but now we’ll shift to helping you get a plan in place for the future. Please get in touch to discuss what’s next for your business.

  • COVID-19 Business Update – 17 June 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Instant Asset Write-Off Extended

    Last week, it was announced that the Instant Asset Write-off has been extended for six months to 31 December 2020. Australian businesses with less than $500 million annual turnover will be able to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.

    You can find more information on which assets can you claim as an immediate deduction here, or contact us so we can walk you through the different thresholds, exclusions, and limits.

    Grant checker

    The business.gov.au website has a useful tool for finding grants, funding and support programs that you might be eligible for. Check out the tool online.

    COVID-19 Relief and Recovery Fund

    The Australian Government has set aside $1 billion to support regions and communities disproportionately affected by the economic impacts of coronavirus. Support is extended to these industries:

    • tourism
    • aviation and transport
    • agriculture and fisheries
    • education
    • the arts

    You can find more details here but feel free to chat to us and we can find the right support for you.

    Free Financial Counselling for regional businesses

    The Government has committed $4.7 million to provide small regional businesses affected by COVID-19 with access to free financial counselling. You can learn more about the assistance for affected regions, communities and industries here.

    COVID-19 Safety Guidelines

    SafeWork Australia has put together useful guidelines for a range of industries. The guidelines provide clarification on WHS laws, workers’ rights, risk assessments, hygiene, emergency plans and more.

    HomeBuilder Grant

    The Australian Government has recently announced the new HomeBuilder initiative, which is a time-limited, tax-free grant program to support the residential construction industry get through the pandemic. The $25,000 grant is available to eligible owner-occupiers (including first home buyers) to build a new home or substantially renovate an existing home. You will be able to apply for the HomeBuilder when your state or territory government signs the agreement. Further information will be announced in due course.

    Updates on JobKeeper Payments and Declarations

    JobKeeper payments will cease from 20 July for employees of a child care subsidy approved service and for sole traders operating a child care service. You can check the media release here.

    Also, monthly JobKeeper declarations now need to be completed before the 14th of the month, which gives you a little more time to lodge.

    What’s your Break-Even Point?

    Whatever type of business you have, calculating your break-even point is important. It tells you the amount of revenue you need to generate to cover your fixed and variable expenses. If you are not a finance or math person, don’t stress! This FREE Break-even Calculator we created will make your analysis fast and easy.

    If you need expert advice on the financial aspects of your business, especially on how you can become more profitable, please get in touch so we can help you plan your next big steps.

    What’s next?

    Over the last few weeks we’ve brought you updates on various government initiatives and cashflow schemes to help businesses impacted by COVID-19. We’ll keep you updated if anything changes but now we’ll shift to helping you get a plan in place for the future. Please get in touch to discuss what’s next for your business. S & H Tax accountants offer small business advice to business owners around Cranbourne and srounding suburbs.

  • Battling Through COVID-19: Finance Tips for Business Survival

    Battling Through COVID-19: Finance Tips for Business Survival

    We’ve heard this before: the COVID-19 pandemic is an unprecedented global health and financial crisis that has caught many off guard. While the threats to human life are very real, the damage to the health of businesses is really just starting to show.

    The seriousness of the disease and the lack of a vaccine (at the time of writing this) have prompted governments around the world to impose strict measures to contain the virus. These restrictions in people’s movements and the temporary shutting down of non-essential services have definitely taken a toll on businesses.

    While there has been a lot of talk on how to avoid contracting the virus and how businesses can operate safely to adapt to the current conditions, this article will focus on helping you manage the financial aspects of your business to survive COVID-19. Read on for our tips on cushioning the impact on your business.

    Update your financial records.

    The first step in planning your course of action in such a difficult environment is getting a crystal clear understanding of the financial position of your business– this means updating your financial records and keeping them in order. Knowing things such as your cash position and assets that can be sold quickly will go a long way in helping you make informed business decisions. Good records build a solid foundation for a successful business. They’re also really important when applying for government grants.

    Examine the financial health of your business.

    Following on from the first item, it is important to get a good grasp of your business’ current financial health through a careful analysis of your books and statements. By looking at key financial figures, you will get an idea of how your business is doing. You can see fundamental factors such as the liquidity and solvency of your business which will help you decide on the best steps forward as you deal with the crisis and the aftermath. Chat to us for help with these financial pieces.

    Improve your cash flow.

    A lot of businesses across the world are facing cash flow problems at the moment. You are certainly not alone. However, the key here is not letting the problem worsen.

    Preparing a cash flow forecast should give you some forewarning before issues even arise and will allow you to address them early on. By quantifying your forward bookings, forward orders, and work in progress, you will get to identify future cash flow and plan accordingly.

    You can also take the following measures to boost your cash flow:

    • Identifying the demand for your products or services, so you’ll know where to focus on and where you can reduce stock orders
    • Cutting back on unnecessary expenses
    • Urging your debtors to pay you, negotiating on a payment scheme that will work for both of you
    • Seeking payment extensions or debt re-structuring
    • Invoicing as soon as you deliver the product or service
    • Seeking external investors or lenders
    • Taking advantage of financial support from your government

    Increase online sales where possible.

    With the government implementing stricter restrictions to prevent the further spread of the virus, you should find ways to move your products and services online – if you can – and continue to serve existing and new clients. The situation that we are in is forcing business owners to re-imagine their business and re-evaluate their business models. You’ve got to adapt and be resilient. It’s those businesses that will survive.

    Manage Your Financials

    It’s safe to say not many of us factored a global pandemic into our 2020 business plans. Although there is no foolproof strategy to get through what’s proving to be a turbulent 2020, the finance tips shared here should be able to give you some guidance on minimising the risks on your small business.

    Want some more help? Our team of advisors love to help businesses. We’ll help you develop a plan to weather the headwinds of the coming months, while saving you time and money along the way. Contact us today and we’ll work through it together.

  • Instant Asset Write-Off Extended

    Good news!

    This week the government announced that the Instant Asset Write-off has been extended for six months, taking the initiative to 31 December 2020. Australian businesses with less than $500 million annual turnover will be able to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.

    The instant asset write-off can be used for:

    • multiple assets as long as the cost of each individual asset is less than the relevant threshold
    • new and second-hand assets.

    Changes this year

    From 12 March 2020 now through to 31 December 2020 the instant asset write-off details are below.

    • threshold amount for each asset is $150,000 (up from $30,000)
    • eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).

    Eligibility

    Your eligibility for the write-off depends on:

    • your aggregated turnover
    • the date you purchased the asset
    • when it was first used or installed ready for use
    • the cost of the asset being less than the threshold ($150,000)

    You can find more information on which assets can you claim as an immediate deduction here. Feel free to contact us so we can walk you through the different thresholds, exclusions, and limits.

    Got a question?

    Please don’t hesitate to get in touch. S & H Tax accountants serve small business in Melbourne. Call us for free consultation now on 1300 724 829

  • How cash flow forecasts can help you

    Cash, Flow

    Managing cash flow is a vital part of running a successful business. Some business owners think managing cash flow simply means keeping track of how much money enters and leaves their business, but there’s actually more that goes into it.

    Cash flow forecasting, for example, is an incredibly valuable tool that helps you anticipate cash flow issues, plan for days when your cash flow is limited, and show the bank that you are prepared.

    It’s an important process that you shouldn’t ignore. Here are some ways cash flow forecasts help entrepreneurs.

    They help identify cash flow issues before they happen

    Most businesses go through slow periods. Sometimes, those periods are obvious. A seasonal business, for example, will have decreased income during the off-season than during the on-season. There can be less obvious peaks and valleys in your income, though, that you have to prepare for.

    Your cash flow forecast can help you monitor your day-to-day cash flow and anticipate when times will be slow before they hit. By anticipating when cash coming into your business might be light—or when you might have to spend more than you’re accustomed to—you can avoid a cash crisis.

    By examining your cash flow over the previous years and forecasting your future cash flow, you can better anticipate financial cycles and how they affect your bottom line.

    They help plan for tougher times

    It’s tempting to spend money when you have a lot coming in. Your business may need new equipment or maybe you want to give all your employees a raise or a bonus.
    That’s a great thing to do, but it’s only helpful if it doesn’t put your business in jeopardy financially.

    Cash flow forecasting is a great reminder about how your bank accounts will look during tougher times, so you can make important decisions about when to spend your money and when to save it.

    If you know a slow period is coming up, it might be better to save your money for now and give out smaller bonuses. If you can anticipate your slow period, you can plan major purchases and bill payments around it, to stretch your cash further.

    At least by conducting cash flow forecasts you’re less likely to be surprised by a sudden cash flow crisis.

    They show banks you can plan ahead

    Banks prefer to give their money to entrepreneurs who show they are capable of planning ahead. Financial institutions prefer business owners who are realistic with their financial projections and show they have a means of addressing cash flow issues.

    Final thoughts

    Forecasting your cash flow gives you a clearer picture overall about your business and how the money moves into and out of it. It provides important insight into your company’s financial health.

    If you haven’t conducted cash flow forecasting so far, it’s a good idea to get started now so you have a better understanding of your company’s finances and so you can prepare for the future.

    Want help to improve your cashflow? Contact us today. We are happy to chat with you about the future of your business. Please get in touch if you would like to chat. S &H Tax Accountants offer Accounting and taxation services in Cranbourne and surrounding suburbs.

  • Working out an effective marketing budget

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    “How much should I spend on marketing?” Most small business people ask me this question at some stage. Many small business people find working out how much to spend on marketing a tricky exercise to calculate.

    Generally there are five ways to work out a marketing budget for the year. Remember that these are marketing budgets, not advertising budgets. Marketing covers everything you do in your business that creates awareness, including such activities as advertising, brochures, competitions, free tastings, demonstrations, trade shows, travel, personal selling, direct mail, sponsorships, etc.

     

    1. No idea at all method

    Some businesses don’t have any budgets, and just advertise either when they feel that sales have slipped and they need extra business, or when they get duped into advertising by some advertising salesperson (“Buy now and we will give you 50% extra free!”). Ever wondered why they offer you the freebies? Usually because it’s such a dumb time to advertise that all their regular clients are holding back and the sales rep is desperate.

    I see many businesses that are just too busy during certain times of the year to think of advertising, and if they did, it would be a waste as they would not be able to handle the work anyway. Suddenly, however, sales fall (perhaps due to seasonality) and then the business starts advertising. However, this could be a waste of money as often you’re advertising at the wrong time, or advertising to get instant sales, which is unlikely to happen. So the problem is that the advertising money is spent during slow times (this hurts), and that it is spent to fix a problem instead of to create new opportunities.

    2. Whatever you can afford method

    Here you just spend spare cash (yes, spare cash may exist!) on advertising. So the advertising is dependent on cash flow. During the good times you advertise more, during the bad times you cut the advertising. The danger here is that if business falls, and you cut advertising, then the situation is likely to spiral out of control. How can you climb out of the situation when there is no money for marketing?

    3. The percentage of sales method

    This is a popular method. Typically, you work out at the start of the year what percentage of sales you want to spend on advertising. For example, if sales last year were $200,000 and you decided to spend 5% of sales on advertising, then you’d have a budget of $10,000 ($200,000 x 5%).

    The problem with this method is you may not actually need $10,000 worth of advertising to achieve your sales target. What if you can only do so much? If $4,000 spent on marketing creates enough work for you to be flat out, then the other $6,000 is just being wasted. And what percentage should you use? I’ve learned that 3 – 6% of sales is an average, but the figure obviously depends on what industry you are in. For example, here are some advertising-to-sales percentages researched in the USA for marketing budgets:

    • Couriers 2.1%
    • Rental car companies 2.9%
    • Computers 5.1%
    • Games and toys 18.4%
    • Cafes 5.6%
    • Hotels/motels 3.8%
    • Sporting goods 5.0%

    So what percentage you use all depends on your activity. If you are a retailer, then you will spend more on advertising than a manufacturer who concentrates on personal selling to suppliers.

    4. The ‘whatever the competition are doing’ method

    This is the cheat’s way. Find out what the competition is doing and then spend a similar amount on similar promotions. This approach has an obvious problem: what if the competition has been using method number one—the ‘no idea’ method? For example, a well-known retailer went into receivership after spending large amounts of money on TV and radio advertising. Now if you had copied that business, you might have found yourself down the gurgler as well.

    Never think that the competition or the larger businesses know what they are doing, as often they do not. I know of many large companies that spend thousands of dollars on wasted promotions. Just watch TV adverts every night to spot the ads that really represent a waste of money. Then again, copying the competition is basically a poor strategy anyway. You should always strive to be one jump ahead of the opposition.

    5. The objective and task method

    Now this is the one I recommend—I had to like one of them! At the start of the year select the targets you’ll be aiming at over the next 12 months. Work out what you want from each of these targets (such as 100 new customers, or each existing customer to spend another $100, or an increase in the average sale, or whatever). Then specifically state what you want to do to achieve this, estimating how much it will cost (common sense will give you guidelines, for example, a small business will not be spending $100,000 on TV advertising).

    Complete this exercise for each of your targets, then add up all the costs, and this will be your marketing budget for the year. Points to note include:

    • Always have a cash reserve for marketing, so you can take advantage of any opportunities that may arise during the year. Remember, not only can you not predict what may happen (for example, some action by your competitors), but the whole point of being in a small business is having the flexibility to adapt to market forces.
    • Your objectives must be specific, so that when you’ve reached them, you can choose to stop any further marketing expenditure if you wish to remove any wastage. Of course, you could continue and look for more growth. The point is, you—not someone else—make that conscious decision to spend your whole budget.
    • Conduct a break-even analysis. For example, if you’re spending $1,000 to get 50 new customers to spend on average $50, then sales will be $2,500. Will $2,500 in sales generate enough profit to cover the $1,000 spent on marketing?
    • You may have a number of methods that you have used in the past, which you know work. Fine, just include them in your plan.
    • You may have to spend a certain amount of money just to keep your existing customers and maintain market share. Fine, but again make sure this is in your plan, and you review the effectiveness of what you’ve always done.

    Remember to monitor results

    Finally, always have a method of monitoring if your marketing is working or not—otherwise you’ll fall into the ‘no idea’ category that far too many small business owners belong to. You can’t refine and improve your marketing spend unless you measure the results

    If you need help please call Business Accountant Cranbourne and surrounding suburbs call us on 0387595532

  • COVID-19 Business Update – 27 May 2020

    Welcome back to our Weekly Digest. We hope you and your family are doing well. Read on for this week’s update.

    JobKeeper Key Dates

    The ATO’s website has a list of key dates relevant to JobKeeper which you might find handy. Not-for-profits and charities can find some JobKeeper information here also.

    If you are still wondering if you are eligible, or what schemes apply to you and your business, get in touch with us and we can arrange a chat.

    Cashflow

    If you’re not having cashflow problems right now, that’s great, you’re one of the lucky ones. Plenty of businesses across the country are struggling with cashflow right now. There are a few ways to relieve the cashflow pressure from finance through to restructuring options. Don’t stick your head in the sand – we can help.

    Here are some options that might be suitable for your business:

    • Borrow money – Businesses can access finance quite quickly through the Government’s SME Guarantee Scheme. Under this scheme the Government will guarantee 50% of new loans issued by eligible lenders. Chat to us to find out if this is the best way forward for your business. In addition to lending options, most states are offering business grants which could be worthwhile for you to investigate.
    • Restructure expenses and commitments – You can implement various measures to restructure your expenses and financial commitments. There are a range of programs aimed at providing temporary relief to debtors affected by COVID-19. We can help you work out your existing debt with your banks and creditors to improve your cashflow, so please get in touch.
    • Sell more – Consider new sales possibilities, expand your market, refine your marketing strategy– it may be difficult to increase your sales right now, but we’re sure you’re doing all you can. We can help you get your plan together for the next few months of business.

    JobMaker

    Earlier this week Scott Morrison outlined some preliminary steps in a “JobMaker” plan. The PM’s main point in his address this week was that opening up the economy is much harder than closing it down, and recovery could take years.

    While we have no details of the JobMaker plan yet, the goal is to get Australian businesses out of crisis. The focus will be on industrial relations reform as well as improving the skills and training sector. We’ll keep you updated as more details are announced.

    What’s next?

    Over the last few weeks we’ve brought you updates on various government initiatives and cashflow schemes to help businesses impacted by COVID-19. We’ll keep you updated if anything changes, but please feel free to get in touch to discuss what these schemes mean for your business.

    Get in touch

    We are happy to chat with you about the future of your business. Please get in touch if you would like to chat. S &H Tax Accountants offer Accounting and taxation services in Cranbourne and surrounding suburbs.

  • Tax tips for new Cafe or Restaurant business owners

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    Want to avoid paying more than you should come tax time? Or a frantic last minute search for missing financial records?

    New business owners have a lot on their plate, and can easily lose track of an approaching tax deadline or financial data needed to submit their return.

    Organization is key when preparing for tax time. As is taking advantage of the many tools and resources out there to support new entrepreneurs.

    Set yourself up for success by following these four pillars of painless tax prep.

    1. Commit to clean bookkeeping from day one

    Year-round, effective bookkeeping is the best way new business owners can minimize tax season stress. With the wide range of accounting software out there, there’s no reason to rely on time consuming manual methods that leave room for error.

    All-in-one options like Xero, KashFlow and QuickBooks automate your most important bookkeeping processes, including:

    • Tracking expenses;
    • Tracking sales and income;
    • Creating and sending invoices and
    • Managing inventory.

    With your financial records all in one place and up-to-date, you’re better positioned to maximize your refund, while avoiding penalties associated with incorrect or incomplete tax returns.

    2. Capture every business expense

    Each year, 21% of small business owners claim less than half of their business expenses, largely because they don’t have a reliable system for documenting expenditures while on the go.

    Without carefully logged receipts, entrepreneurs must forfeit valuable tax deductions, sacrificing cash they could be funneling back into their business.

    Cash in on claimable expenses by using a mobile app to record receipt data, track mileage and generate expense reports. As an added bonus, many of these tools sync with your all-in-one accounting software.

    3. Separate business from personal

    Right from day one, small business owners should clearly divide their personal and business expenses. Differentiating between the two will make it much easier to claim deductions on your tax return – and support those claims in case of an audit.

    Recommended steps to separate your business and personal finances include:

    • Create a separate bank account for your business, and designate a credit card solely for business purposes (this will help you track expenditures while building up your credit and borrowing power);
    • Never combine business and personal expenses (for example, if you buy printer ink for your home and your business at the same time, ask for two separate receipts);
    • Pay yourself a set salary from your business checking account each month (this will help you determine how your income, as well as the business, will be taxed).

    4. Always consult with an accountant

    Not sure exactly what you can claim as a business expense? Wondering which accounting software to use or how to interpret local tax regulations?

    Consult with an accounting professional to put your mind at ease – well before the filing deadline! In addition to managing the nuts and bolts of tax preparation, regular meetings with an accountant will help you continuously improve bookkeeping practices and better understand the financial workings of your small business.

    Those organizational strategies you commit to now will promote positive relations with your local tax authorities – and the long-term financial health of your company.

    Contact S & H Tax Accountants for help if you need. We are highly experienced team of accountants. we are specialist in Cafe or Restaurant business. Contact us today on 0387595532 forobligation free appointment.

  • The advantages of a business dashboard

    The advantages of a business dashboard

    Business dashboards are a valuable business intelligence tool, offering an “at-a-glance” big picture view of a company’s performance.

    Some business owners use a dashboard to track KPIs relevant to just one aspect of their business, such as sales growth, marketing, or financial data. Others rely on an executive dashboard for an overview of data culled from various sources (e.g. their accounting software, CRM tools, and website analytics).

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    The great advantage of a dashboard is that it presents and compares complex data drawn from a number of sources using visual tools (i.e. tables, line graphs, and bar graphs). With access to this consolidated data – info that would take hours to compile and analyze on your own – business owners are empowered to make more informed real-time business decisions.

    Find out more about business dashboards and how they can help you grow a more profitable business.

    Better business intelligence

    Business owners get the most value from using a business dashboard when they have specific objectives in mind. When you know your objectives, you know which data to monitor, and which type of dashboard will help you gauge progress and meet your goals.

    Think about your priorities for the next six months, year, three years. Once you’re clear on your goals,
    test drive a free trial to get a sense of how business dashboards work and find one that might be a good fit for your needs.

    Of course, free software with limited features won’t demonstrate everything a dashboard can do. But testing one out can help you see the potential for your business, and decide whether to look into other paid options.

    Customized dashboards

    If you’re comfortable with coding, the free open-source dashboard may be a good solution for your small business. Open-source dashboards allow you to integrate data from different sources to create the perfect dashboard to meet your needs.

    If you decide to shop for a solution, you’ll have many customizable options to choose from: analytical, operational, or information dashboards, as well as those that operate via software, web-based tools, cloud-based, and mobile-friendly dashboards.

    As a tip, many business owners prefer cloud-based dashboards for their convenience, allowing real-time data to be accessed from multiple devices. A cloud dashboard solution with a drag and drop interface is simple to use, and lets you decide which data you want to view, and how you’d like it displayed.

    Final thoughts

    There are many benefits to working with a business dashboard, but the main advantage is that they can help you make more informed decisions that will have a positive impact on your company’s agility and competitiveness – and ultimately, your bottom line.

    Using a dashboard can help you spot problem areas and negative trends quickly, so you can take steps to correct them. You’ll know what to do more of to increase sales and profits, and implement the best strategies to achieve your business goals

    If you haven’t updated your business plan recently, take some time to identify your high-priority objectives. Then you can take the next step and find a dashboard that offers you the business intelligence you need to meet your current and longer-term goals.

     

     

     

     

     

     

     

  • How to find a good niche

    How to find a good niche

    In business, finding a niche that can supply enough revenue is important. More entrepreneurs than ever are realizing the importance of finding a narrow set of customers and catering their products or service to them. This allows you to focus your efforts on being great at a few things, rather than mediocre at many. But how do you find your ideal target market? This article will get you started by telling you how to find a good niche.

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    Research

    This stage is probably the most important and most overlooked part of finding a good niche. Many entrepreneurs try to take a shortcut by spending very little time on this part of the process. Some don’t do any research at all. Don’t make the same mistake. Instead, use the amazing (and free) tools available to conduct market research. For example, Google’s Keyword Planner allows you to enter a set of keywords and see the search volume for those terms. By analyzing traffic and then searching the web for competitors, you can see if a given keyword is worth pursuing. Instead of wandering around in the dark, save yourself countless hours by conducting great research upfront.

    Track Behavior

    Once you’ve found a niche that looks attractive and created a website and brand for your product or service, you will hopefully get your first customers. It’s important to be prepared for visitors and customers by installing tracking software on your website. Luckily, Google has a free service for this as well called Google Analytics. It only takes a few clicks to set up, and it allows you to see where visitors are from, how much time they spent on your site, and at what point they left your site. With this newfound information, you can tweak your product or service to align with the behavior of your visitors. This way, you can adapt to new sub-niches that may be more profitable than your original idea.

    Evolve Your Idea

    Now that you’ve done research upfront, created a site for your product, and analyzed the behavior of the visitors, you’re ready to pivot. You can now evolve your original niche into a better niche based on what your customers click on, read, and buy. Using the above-mentioned tools, you can craft a customized experience for an even more specific set of customers. This is where the real success is. Improving on your first idea allows you to use its strengths without any of the weaknesses. With your new product serving your newfound niche, you’ll be ready to turn on the thrusters and watch the sales come flooding in.

    Gone are the days of trying to appeal to everybody. By focusing on these principles and taking action, you can find the perfect niche and create all the income you need to be successful in your online business.

     

  • Seven Tips for Managing Managers

    Seven Tips for Managing Managers

    Managing people is one thing, but anyone with experience in managing managers will know that’s a completely different ball game. A management team that works in complete harmony is a rare and beautiful thing, but it never comes easy.

    In fact, it’s paradoxical to think it should ever be that a group of people with strong leadership and management skills will operate without conflict for any length of time. The seven tips below highlight the most likely areas of contention and how to overcome these.

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    Strategy and Planning

    Do you have a clear strategy that sets out the medium to long-term (three to five years) vision for your business unit? Do you have a clear business plan that sets out specific business objectives for the current financial year? Although you can set targets and objectives for your managers without these, those can seem hollow and hard for them to fully engage with if they aren’t part of a coherent strategy and plan.

    Make sure you fully understand the overall strategy and objectives that are driving the business at its core. Only then will you be able to set your own local plan that translates those higher-level aims into meaningful, measurable targets for your managers that facilitate them working in unison with each other and in alignment with the wider business.

    More Leadership, Less Management

    Remember, the more senior a manager you are, the more your role becomes about leadership rather than management. Of course, you have to manage the performance of your managers and at times make decisions and give direct instructions to them, but remember they are managers.

    They need direction, not solutions. Feel free to project your vision in all its glory, and give them guidance if they seek it, but let your managers manage. Let them figure the most effective path to get to the destination you’ve set for them.

    You won’t always feel comfortable doing this, but take a deep breath and let it happen; allowing yourself to micro-manage is a slippery slope that rarely ends well. Stay on the bridge with your hands firmly on the wheel and stay out of the engine room, unless circumstances are exceptional.

    Beware of Projects

    Improvement is a buzzword in the boardroom of any business. It’s synonymous with so many business objectives, from increased customer satisfaction to decreased cost. The trouble is, improvement doesn’t come without time and effort to drive change.

    Businesses are typically very good at identifying potential projects that need to be undertaken to realize improvements but don’t have nearly the same appetite to invest in the skill and resources to bring them to fruition. Too often it is wrongly assumed that project management is a core skill of any manager. Engage your managers in defining a business case and requirements, but if you have project management or business improvement resource within your business, then hand them over to them to initiate a project once you have a green light. You might not get the results as quickly as you’d like, but you run the risk of a failed project or worse if you saddle your managers with unrealistic workloads.

    Acknowledge and Reward

    Managers tend to be conscientious types, often more than willing to go the extra mile; working late, at weekends or outside their normal jurisdiction without any recompense. By all means, take advantage of this when you can, but be willing to give some payback from time to time.

    Managers are rarely paid overtime, yet understand better than most that sometimes the business needs a little more of them than usual. But be mindful when a little becomes a lot, and when this starts to become the rule rather than the exception. If your managers feel they are being taken for granted or treated unfairly they will become disillusioned and disengaged. Sustain that position for too long and you will lose them.

    A simple acknowledgment of efforts beyond the call of duty goes a long way, but sometimes more tangible recognition is called for. This doesn’t have to be financial; be creative, but find ways to reward when it’s due.

    Know your People

    Take the time to get to know your managers as people as well as professionals. It can be tough to fit regular one-to-one meetings into busy diaries, but they are essential; overlook them at your peril.

    Make sure those conversations strike a balance between the person and the business tasks at hand. Losing sight of the human being is dangerous as you need to connect on a personal level to get the best out of them. If you don’t you also risk missing early warning signs that they may be struggling with workload, or with circumstances outside work that are affecting their performance in work.

    Busy managers may also struggle to network, even within their own management community. Make sure you create the opportunities to facilitate a good rapport between all your direct reports, inside or outside of the workplace. It’s likely that their roles and responsibilities overlap to some degree, so their relationship with each other is just as important as their relationship with you.

    Just like in sport, a group of highly talented individuals doesn’t necessarily make a good team. You need to work on that, and it will pay dividends in more open communications and more collaborative working.

    Trust and Honesty

    Managers who feel under pressure will often find ways to hide areas of inadequacy or underperformance for fear of the consequences. Building a culture of trust and honesty with your managers has to start with you. Lead by example and encourage them to share their struggles and concerns. Show them it is safe to do so, but challenge them to come up with solutions, not just problems.

    This can feel like walking a tightrope at times, as you need to maintain respect amongst the group and for your authority, so be clear on lines that cannot be crossed. However, allow them to feel comfortable expressing themselves fully. Set boundaries, but ensure you have protected time behind closed doors to allow for open and honest exchanges. Consider drawing up a management charter to set basic rules of engagement to create an uninhibited but safe environment.

    Support and Backing

    If you’re under pressure from your manager, it’s easy to transfer this to your direct reports. Some will say that the best managers are those that delegate, and don’t shy away from doing that, but resist the temptation to use delegation as a means to simply palm off the tasks you don’t like or feel comfortable with.

    Delegate fairly and provide support and guidance when sought of you and be willing to share the load sometimes. Recognize when it’s appropriate for you to step in to back your managers when they need you to pull rank, or when an initiative or key communication needs visible endorsement from someone more senior.

    There will also be times when you need to push back against your own manager’s demands and expectations where these are not realistic or reasonable, to protect your team. You will need the facts and figures to do this effectively, but ultimately the buck stops with you and you must be willing to have these difficult conversations. You will strengthen the trust and respect from your managers if they know you have their back and they will offer you the same support and loyalty in return.

    The subtleties of approaches you take to tackle these seven areas will be dependent on the specific personalities you are managing, but if you’re paying regular attention to them all, you’ll find your life a whole lot easier. You’ll also have managers who are more likely to be relaxed, communicative, and able to perform to their full potential. It’s never a case of ‘one size fits all and you may need to experiment with different styles, so don’t be disheartened if something doesn’t work the first time. Eventually, you’ll establish working practices that fit, and you’ll never look back.

  • Social Media Etiquette: 9 more Quick Tips for Professionals

    Social Media Etiquette: 9 more Quick Tips for Professionals

    With social media, you can connect with business associates quickly and creatively. But this communication mode is not without risk. A thoughtless post can offend customers and other business partners and damage relationships rather than build them. By following a few ground rules you can be confident your comments and posts will be appropriate ones.

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    Check Your Messages for Grammar and Spelling

    Your co-workers and business partners evaluate your communication skills so don’t send a message until you check it for grammar and spelling. This is easily done if you prepare your social media messages in a Word document before making them public.

    Consider the Possibility that Your Message Might Offend Someone

    Before you send a post, consider who has access to your profile and if it will matter to you that you shared this information with a certain person or business. If you cringe at the thought of your boss, client, or employee reading and sharing your message, it’s best to delete the message.

    If You’re Feeling Needy, Disguise It

    Refrain from asking Twitter followers to retweet a tweet or Facebook friends to like a page. Instead, make the effort necessary to find an enticing way to accomplish those tasks.

    Share the Observations of Others

    A key benefit of social media is that it grants immediate access to a diverse group of people willing to share their expertise. So share the posts and tweets of others, rather than limiting your content to your own commentary. In the process, give credit where credit is due by including their network handle and name in your message. Also, by sending a ‘thank you’ to those whose work you enjoy, you might create a valuable connection.

    Ask May I Before Tagging

    Because a photo is a flattering one of you, doesn’t mean it’s an equally flattering of others. So be considerate and don’t post photos and tag friends if the photos are ones the other subjects are unlikely to share with others. And never relay a conversation on your Facebook wall without asking the permission of all involved.

    Limit Your Use of Hashtags

    A hashtag is a way to group your tweets and posts of similar content so those in need of information about a particular topic can find it. But refrain from creating a hashtag for multiple words in a post.

    Don’t Use the Automated Direct Message Tool – Ever

    If it’s worth saying, it’s worth saying well to a specific person or group. So never send automated direct messages to anyone for any reason.

    Be Transparent

    If an issue arises that leads to a burst of activity on social platforms, don’t delete the comments and become defensive. Instead, post a thoughtful and informative response and work diligently to resolve the issue. When a solution is reached, post that information online.

    Engage with your Readers

    Encourage your readers to respond to your comments and posts by asking or answering a question and sharing relevant links. When they do so, reciprocate by ‘liking’ their posts or commenting on their tweets.

    Social media offers a way to quickly and creatively connect with business partners who can be hard to reach. Unfortunately, these social platforms provide many opportunities to offend others in a variety of ways, including conveying extremely personal information in this very impersonal way. But you can avoid this and other faux pas by adhering to a few simple rules of social media etiquette.

  • Social Media Etiquette: 12 Quick Tips for Professionals

    Social Media Etiquette: 12 Quick Tips for Professionals

    With social media, you can connect with business associates quickly and creatively. But this communication mode is not without risk. A thoughtless post can offend customers and other business partners and damage relationships rather than build them. By following a few ground rules you can be confident your comments and posts will be appropriate ones.

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    Abstain From Posting or Tweeting Certain Information

    If you aren’t sure it’s acceptable to post a certain type of information on social media, it’s probably wise not to do so. For example, it’s best to use a personal mode of communication such as a phone call rather than social media to offer condolences after the death of a colleague or concerns about the illness of a coworker.

    Curb Any Tendency to Over Share

    It’s important to have a consistent presence on your chosen social networks but don’t over-share. Tweeting about six times a day is fine for Twitter but one post a day is enough for Facebook and LinkedIn.

    Adhere to Offline Rules of Etiquette

    Just because you’re communicating via the Twitter or Facebook platforms doesn’t mean you’re free to ignore certain protocols. Regardless of the mode of communication, readers will expect you to adhere to accepted rules of etiquette. So follow social norms, and you’ll avoid the negative outcomes of doing otherwise.

    Unplug When Others Are Present

    Important relationships deserve your undivided attention, so ‘unplug’ from technology during scheduled appointments with clients and colleagues. Doing so demonstrates your respect for these individuals and your willingness to make them your number one priority at a point in time.

    Limit Your Posts to Items of Real Importance

    A social network can provide quick updates on a project’s status and other topics of interest. That purpose is defeated if you post about trivial matters throughout the day. Make sure a post is something of value that will benefit your networks, such as a tip, a status, or a helpful link.

    Carefully Select Your Audience Members

    Be as discerning about the volume and type of information you disclose using social media as you would be in face-to-face communications. To do so, take time to become familiar with a platform’s basic functions, such as how to limit your audience for a particular message.  Being oblivious to the number of people who can read a message doesn’t negate the possible damage that can result from indiscriminate tweets and posts.

    Consider Who Might Be Interested in a Message

    Having four or five hundred friends is impressive only if the people really are valued, business partners. So friend or tweet only those with whom you share common interests or relationships and who will have an interest in your message. When you limit your message recipients, you also limit possible responses to those you can somewhat anticipate. Refrain from ‘friending’ or ‘tweeting’ indiscriminately and you’ll preserve your social media account as the valuable asset it is, rather than a liability.

    Carefully Choose Your Network and Recipients

    Each social platform has a unique syntax and norms and each group is formed based on a particular shared interest. So don’t automatically send the same information – self-promotional or not – using Facebook, LinkedIn, Twitter, and other platforms. If you choose to share the same information with all networks, tailor the message for each network.

    When it’s Time, Pull the Plug

    Whether your audience will consider a post or comment an appropriate or inappropriate one will depend on its context.  For example, in the midst of a project, team members are likely to be available and responsive to your messages. But once the project wraps up, a 24-7 news cycle is no longer required or appreciated as people will have new priorities and responsibilities.

    Abstain From Posting Personal Information

    With the creation of a social media account comes the possibility that your image as a professional will conflict with your image as a friend or family member.  As a result, you might post a photo or comment that can harm your professional image. So balance your various roles and abstain from posting truly personal information.

    Consider a Reader’s Response to a Message

    Although some companies encourage an employee’s use of social media, it’s likely a business discourages disclosure of insider information that might negatively affect a brand.  Before any post about your company, consider if the post will be helpful or harmful to your company or your standing within a company.

    Issue Timely Responses to Inquiries

    The more targeted the message, the shorter the acceptable response time. Consequently, companies may expect you to answer an email within 24 hours and a phone call much sooner.  Because social media operates in an open forum, messages have a somewhat longer shelf life.

    Social media offers a way to quickly and creatively connect with business partners who can be hard to reach. Unfortunately, these social platforms provide many opportunities to offend others in a variety of ways, including conveying extremely personal information in this very impersonal way. But you can avoid this and other faux pas by adhering to a few simple rules of social media etiquette.

     

  • Killer CV or CV? 5 Blunders That Could Kill Your Chances

    Killer CV or CV? 5 Blunders That Could Kill Your Chances

    Your CV is one of the most important documents you will ever create but a single mistake could send all that hard work straight to the recycle bin. Hiring managers and HR executives sort through hundreds of CVs for every job opening. That means they may spend only a few seconds on each one.

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    If you make any of these 5 blunders, you could be dooming your chances of getting the job.

    1. Fancy Fonts

    Your CV should be polished and professional, not showy. Even if the job you are seeking has a creative bent, your CV is not the place to show off your artistic talents. Avoid fancy fonts, unusual colors, clip art, and other flourishes – they take more from your CV than they add.

    2. Misspelled Words and Grammatical Errors

    No matter what your past accomplishments, misspellings, and grammatical errors are sure to send your CV straight to the trash. With so much on the line, there is simply no excuse for sending out a CV that is not letter-perfect.

    3. A Lack of Accomplishments

    Your future boss does not want to know what your daily duties were. He or she wants to know what you were able to accomplish in the past and what you can bring to the organization in the future. Your CV should focus on what you have been able to achieve thus far in your career, and the skills you will use to build more in the future.

    4. Not Using Keywords

    The first person to read your CV may not be a person at all. Search engine robots and automated systems are often used to sort CVs and look for key job skills. If your CV does not include the keywords the robot is looking for, the document may never make it to human eyes. If you do not know which keywords to include, just take your cue from the job description.

    5. Going On and On

    Your CV should not tell your life story, and it certainly should not resemble a novel. Keep your CV short and sweet; limit it to a single page wherever possible. The goal is to make the CV easy to read, even for hiring managers who are pressed for time.

    When it comes to landing a job, knowing what to avoid can be even more important than knowing what to do. Learning to recognize and overcome these common CV blunders may not guarantee you the position but it can improve your odds.

     

     

  • Email Etiquette: How to Respond to Rude Email

    Email Etiquette: How to Respond to Rude Email

    The worst thing about a rude message is the author presuming you’ll respond to a complaint or request when his communication lacks any hint of civility.

    When confronted with an obvious violation of good manners, you can easily delete the email without upsetting anyone who is aware of politeness standards. You can also punt the request to a co-worker, but that would make you the bad guy. It’s best to respond but take certain steps to ensure your response is a solicitous one, and then move on to other, more pleasant tasks.

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    Delay Your Response to the Email

    To ensure you don’t send a scathing reply in response to the offensive email, close the message after you read it, flag it for follow-up and move on to another task.  This will help you focus on something else, rather than sit and simmer about the rude email. When you deal with the message later, after you’ve had a chance to separate the subject of the message from its tone, you’ll be better prepared to create a congenial and rational response, rather than an emotional one.

    Use the Text Expansion Utility

    If you can’t just delete the rude email, but rather must issue a response, don’t over-invest in the process. The text expansion utility can help you in this regard. The utility will automatically enter long blocks of text that you create in advance based on a few keystrokes that you type. By limiting the time you commit to your response, your emotional investment will be less as well.

    Create a Neutral Response

    It might be tempting to send a rude email in return, but remember the goal of the sender may have been to get your attention and perhaps make you angry – so it’s best to ignore the person and handle the issue. If you allow yourself to be baited, things may get worse.

    After waiting a few hours to respond, you’ll be able to focus on the problem or issue that was the origin of the email rather than its tone. Identify an appropriate solution and convey the information to the originator of the rude email.

    If you can’t solve the problem, tell them so and the reason you can’t. If appropriate, tell them you’ll convey their concern to the appropriate department or person for handling.

    Review the Email Twice, Then Send It

    It’s best not to transmit an email unless you’ve had the time to review it carefully first. While some messages contain so few words that it would be difficult to misinterpret their intent, a reader can easily misconstrue a lengthier one. So study the message carefully, particularly if the subject is a delicate one. When you’re confident your message is a helpful and amiable one, send it.

    Move On to the Next Task

    People tend to mull over issues even after they’ve dealt with them. But there’s nothing you can do about a person who chooses to send a rude email. Spare yourself the frustration by issuing your response to the offending message and then moving on to another message or work task. You have more important issues to deal with and more gracious people to help.

     

     

     

  • How to create an advisory board for your business

    How to create an advisory board for your business

    Many remarkable entrepreneurs, including Warren Buffet, Sheryl Sandberg, and Richard Branson, have credited their success, in part, to the advice of their mentors.

    An advisory board is an informal group of mentors whose collective business expertise—and objectivity—can help you make better, more informed decisions, thereby accelerating growth.

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    Unlike business consultants (whose fees may well exceed your budget), advisory board members may agree to provide advice pro bono, for a small stipend, meal, or reimbursement of travel expenses.

    These tips will help you create a first-rate advisory board that can immediately help improve your bottom line.

    Selecting board members

    When deciding who you’d like to join your advisory board, think first of your purpose—the goals you most need to accomplish—as well as your own strengths and weaknesses as an entrepreneur.

    If you want your board to serve in a general business development capacity you’ll want a legal advisor, accountant, marketing expert, and business owner from outside your industry who can meet on an ongoing basis.

    You may also want to bring together an advisory board for a very specific purpose—to solve a problem or achieve a short-term goal. In that case, you’ll be looking for advisors with expertise in a particular area who will meet on the understanding that once your goal is achieved the group will dissemble.

    Tips for finding advisors

    It’s ideal to have between three to five advisors serving on your board who can fill any critical knowledge gaps and offer key business insights.

    When looking for advisors, start with your own business network including any organizations or associations you belong to, your local business community, previous employers and colleagues.

    LinkedIn can help you discover new connections in your area through your business groups as well as the network of people you already know.

    Another option is to ask the business professionals you work with—your accountant, lawyer, or financial advisor—if they can suggest any good candidates for your advisory group.

    Get the most out of each meeting

    Plan to meet with your advisory board regularly—at least every quarter. If you meet any infrequently than every few months you’ll risk losing focus and momentum.

    Between meetings, it’s wise to send along relevant interim reports to keep your group informed and engaged. Likewise, you’ll want to distribute any relevant documentation—business plans, financial statements, and other reports—in advance of each meeting to generate more productive discussions.

    Although advisory meetings can be quite informal, drafting an agenda can save time and help maintain focus when your advisory board gets together.

    Final thoughts

    Working with an advisory board can yield some appealing side benefits. You may find the preparation required before a meeting helps keep you thinking analytically about your business and encourages you to keep striving toward your goals.

    Your board’s network of connections can also be an advantage when you’re looking for capital, partners, vendors, experts—or even new customers.

    A small business with an advisory board may also be less risky for potential lenders, who may be reassured that a business owner isn’t making all the key decisions on her own.

  • How to turn your hobby into a business

    How to turn your hobby into a business

    Thinking about turning your passion into a paying gig? These steps will help you avoid some common mistakes as you set out to earn an income from your favorite pastime.

    Do you have what it takes?

    Unless you’ve run a business before, it’s easy to get carried away with the idea of how perfect it will be to get paid for doing what you love. Reality check: the stress of needing to earn an income from your hobby can quickly take all the pleasure out of it.

    Running a successful business isn’t all a hobby indulgence. Unless you can afford to hire someone to take care of the bookkeeping, marketing and sales, expect to spend a lot of hours on necessary tasks completely unrelated to your true passion.

    Before you start investing in your hobby-to-business idea, take this online quiz to see if running a business is right for you.

    Do your market research

    If you’ve been gifted with the entrepreneurial spirit, you’re ahead of the game. It’s definitely a plus to be able to combine business know-how with your passion.

    The question is, will people pay you for your great idea. If you love to garden, for instance, who will buy your herb garden kids, custom flower arrangements, or green thumb e-books?

    One of the biggest mistakes home-based solopreneurs make is not doing their market research.

    In a nutshell, market research is the process of:

    • identifying potential markets
    • understanding what your customers most want and need
    • matching up your products and services to those needs
    • examining the competition and
    • creating a marketing plan.

    As a pro tip, focus your efforts on a niche that isn’t currently being filled to increase your chances of success. You’ll minimize the competition and cut out unprofitable possibilities by creating a must-have solution designed for a highly specific customer.

    Strategic marketing ideas

    If you’re just starting up, odds are you’ll be running your business on a shoestring. You’ll need to be very selective about how you spend your marketing dollars—which is why it’s so important to know exactly who your customers are off the bat. Then it’s all a matter of making it as easy as possible for those people to find you.

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    A website and social media presence are essential for any small business. Consider craft fairs and trade shows, sponsoring a community event, joining a local business association, or partnering up with a compatible business as low-cost ways to get the word out.

    Final thoughts

    If turning your hobby into a business seems right for you, test the waters for six months to a year before diving in. Running a small, no-pressure side business at first will show you whether your idea has the potential to become a sustainable full-time business—before you quit your day job and invest all your savings.

    Drafting a simple one-page business plan before early on is a great way to help you think through and evaluate your idea, step by step, as you set goals and identify strategies to achieve them.

    Business planning may seem like a lot of work for a small part-time business venture, but unless you have a plan, how will you know when you’ve achieved your benchmark for success?

  • Using Scarcity to Make More Sales

    Using Scarcity to Make More Sales

    For an online business owner, scarcity is a valuable tool that can turn a failing product into a winner. It is best implemented in a subtle way that does not draw attention to itself, but the urge to purchase remains very potent. Scarcity can be a small part of your sales process that adds some additional revenue, or it can be a major component of your marketing funnel that influences how your product is sold.

    Scarcity in Action

    Most major retailers have an element of scarcity, but it may not be immediately obvious. Amazon, for example, provides stock inventory information, so you are informed if they only have limited availability of the product. It may be the case that they have a whole new shipment coming soon, but if there is only one copy left at the moment, chances are high that you will buy.

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    Of course, sites like eBay have an end date attached to an auction. If the item is rare, there is no way of knowing when it may come up again for auction, so the temptation to purchase becomes harder to fend off. In the real world, closing down sales make all their product inventory scarce. The draw of a bargain, coupled with the fact that the item has become scarce, will encourage more customers to buy.

    How to Implement It

    So how can you use scarcity in your own business? There are various ways to gradually add it to an existing system you have in place, or you can create something brand new which uses it more prominently.

    Adding a stock count, as mentioned above, can be a fairly simple way to get started if you run an online store. In order to check the effectiveness, use an analytics program to ensure it is not having an undesirable result. Limited discounts and deals can be very effective, and you can even run these offers sporadically throughout the year. Holiday periods are great for scarcity deals as they give a ready-made reason for you running the offer. Providing a reason for something being scarce is an important part of the process.

    An example of a brand new use of scarcity is a product launch. Product launches are a regular occurrence in the internet marketing world, creating a huge buzz over a period of a couple of weeks. Regardless of your industry, there is a good chance you can create something that can recreate the product launch techniques. Create a sense of occasion and excitement, build this to a crescendo, then take the product off the market while you take care of your new customers. If your product is of great quality, word of mouth will spread and you can re-launch later in the year.

    Things to Avoid

    While the effect can be extremely powerful, there are some potential pitfalls to using scarcity, particularly when you draw too much attention to it. Faking scarcity is a tactic that can destroy any credibility you have earned, but there are many business owners who still try it. They may use automated countdowns which continually reset based on your cookies or suggest they have a limited bonus for early buyers, but don’t remove this when the allocation has been taken.

    Always keep your integrity, even when the option of scarcity can benefit you in the short term. If you promise that a product will never return to the sale, don’t start selling it again a few months later. Remember the promises you have made to your customers, and be sure to keep them at all costs.

    Get Started Today

    Having looked at scarcity in action, the best ways to implement it, and the things to avoid, try to think of a way to add it to your business as soon as possible. There is probably an instance that could really benefit sales, even if it is subtle and goes unnoticed by most of your audience. The scarcity model is tried-and-tested in business, both on and offline, so make sure it is a tool in your arsenal.

  • What is your succession plan?

    What is your succession plan?

    According to recent research, a staggering two-thirds of US millionaire-owned businesses are operating without a succession plan—and even fewer small business owners around the globe are prepared for their CEO’s eventual exit.

    Recent stats from PWC Global show that family-owned businesses are no more prepared: 43% don’t have a succession plan in place, and only 12% survive to the third generation.

    No matter whether your company has one employee, a hundred or a thousand, a succession plan is essential to minimize the risk of financial loss.

    succession planning

    Read on to help prepare for a stress-free transition when it’s time to sell or transfer ownership of your business.

    Define your objectives

    The starting point for any succession plan is a reflection on your long term goals, both personally and professionally.

    Where do you see yourself in five or ten years? What would you like your retirement to look like? Who are the best people to take over if you have to step away from the business suddenly – and how can you best prepare them for the task?

    Once you’ve tackled the big picture questions, your next step is to seek planning advice from your lawyer, accountant, wealth management, and business advisors.

    At the same time you’ll be able to start grooming your predecessor and training your employees for a smooth transition when you leave.

    Tips for successful succession planning

    Most entrepreneurs find it daunting to think about everything they’ll need to do before they can leave the company they’ve worked so hard to build. It takes time to create a useful, well-thought-out succession plan—so start early, and don’t rush the process.

    One of the most important elements of succession planning is clear and timely communication. Be sure to keep key stakeholders, business partners, employees, and family members involved in the planning process early and often.

    Set a reasonable timeline for the creation of your succession plan and try your best stick to it. Once you have a plan in place, schedule a review on a yearly basis. It’s always wise to have contingency plans in place in case any sudden life changes require an unexpected exit.

    Many business owners time an annual review of their business plan along with a review of their succession plan to ensure both are always up to date.

    Final tips

    A wealth of information is available online for small business owners ready to start succession planning. Free and low cost tools—including this self-paced e-course—can help you get started and stay on track throughout the process.

    Although it’s impossible to predict how long it might take for a small business to sell, a good guideline to keep in mind is two to five years. In addition to the other professionals you’ll want to consult as you draft your succession plan, you may want to consider the services of a business broker.

    Ask your business colleagues for a referral to a local broker with experience in your industry. A good broker can really streamline the sales process and maximize the perceived value of your business to buyers.

    It can be heart wrenching for a business owner to walk away from their company, and some entrepreneurs will plan to stay involved in some way for a few months—or indefinitely. Many find maintaining an ongoing role in their business can mean a more satisfying, and financially stable, retirement.

  • How to Survive the Emotional and Financial Devastation of a Job Loss

    How to Survive the Emotional and Financial Devastation of a Job Loss

    The loss of a job is one of the most devastating things a person can go through. The results of a job loss can be long lasting and the implications go far beyond the financial. While losing your job will most likely put your financial life at risk, the emotional consequences can be just as damaging.

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    When you consider that most of us spend more time at our jobs than anywhere else, the sudden loss of employment can mean losing our identity as well as our paycheck. If you’ve just received the unwelcome news that you will not be returning to work tomorrow morning, you need to step back, evaluate your situation and find a way to move on.

    Stop Panicking

    The first thing you should do when you lose your job is to stop panicking. Losing your job is devastating, but the loss is a temporary one. Life will go on, and you will most likely find a suitable position sooner rather than later.

    There is no reason to panic at the sudden loss of a job. Panic can blind you, and that can be just as dangerous as the loss of a paycheck. We tend to make poor decisions when we let our emotions get the best of us. No matter how hard it may be the best strategy is to detach emotionally and let your brain take the lead.

    Gather Your Resources

    The immediate aftermath of a job loss can be very difficult, but how you handle the first couple of days can make all the difference in the world. Now is the time to gather your resources and start your job-hunting strategy. If you still have access to the email addresses and contact information of your former colleagues, record that data as soon as you can. Your former co-workers can be valuable resources going forward, but you will want to give yourself a few days to cool off and take stock.

    You can use that time to start building your online network and get ready for the job search to come. If you do not already have a LinkedIn profile, now is the time to create one. If you already have a profile, spend the next few days polishing it. Take the time to update your resume and post it online. Make sure the information is up to date and that the document meets the recommended formatting guidelines.

    Assess Your Monthly Expenses

    The sudden loss of a regular paycheck can be financially devastating but taking some proactive steps now can reduce the pain substantially. Grab your checkbook, pull out your monthly bills and do some serious financial planning.

    You may not be able to afford a high-end mobile phone bill and you may need to stop eating out for a month or two or kick your morning Starbucks habit. Making a few temporary changes now can reduce your expenses and make surviving on unemployment a lot easier. You may even find that you do not miss the fancy phone or daily latte. If so, making your temporary changes permanent could give you more money to save and invest once you do find a new job.

    Get What You Have Coming

    Most large companies offer laid-off workers some sort of severance package but the rules are not written in stone. If your tenure with the company was a positive one, you may be able to negotiate a much better severance package than the one you were originally offered.

    Do not be in a hurry to sign your exit paperwork; that impatience could cost you a lot of money. Take the time to read the documents carefully and negotiate a better package if you can. Whether you negotiate a longer severance period, company-paid health insurance, or both, you will put yourself on the firmer financial footing and reduce the stress of your sudden unemployment.

    Stop Blaming Yourself

    Most people will suffer an involuntary job separation at some point in their careers. Losing your job does not mean you were not a good worker or that you are not worthy of respect. Stop beating yourself up and place the blame where it belongs –on the financial conditions that forced the company you worked for to cut back.

    Even if the job loss was partially your fault, you can learn from the experience and be a better worker going forward. It is easy to be defensive when faced with an unexpected termination but paying attention to the reasons and moving forward is the best strategy.

    Nothing can fully soothe the emotional and financial devastation of a job loss, but making the right moves now can make recovery faster and easier. Whether your job was an integral part of your life or just a way to pay the bills, you can recover your financial independence and your dignity. In the end, you may end up with a much better job and a more secure future.