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When you’re in business for long enough, you’ll likely come up with new ideas you want to try. Innovation is important for your company to grow, diversify its income, and attract new customers. An important step between having an idea and jumping into it is testing the idea.

Here are some important ways to test your idea, so you can launch it with confidence.

1. Talk to people

One of the best ways to test your idea is to share it with people, internal and external to your company.

You’ll need to talk to people internally to find out if your company and team have the necessary skills, capacity, and equipment to carry out your vision. Your people may also have additional insight or ideas for things that could work, and suggestions for avoiding possible pitfalls.

Talk to your customers or clients as well, to get their feedback. Ask some important questions:

• Is your new product or service something they could or would use?
• Is it something they would pay for?
• Does it solve a pain point for them?

2. Set your budget

Have a budget to develop your new product or service and make sure part of that budget is set aside for testing. You may have to set aside a few weeks for testing, but it’s worth it in the long run before you dive into an unproven idea. Showing yourself your idea is profitable gives you increased confidence moving forward.

3. Determine what resources you need

If you’re trying something new, chances are you’ll have to expand your resources in some way. If you’re building a new product, you may need to purchase new equipment or materials. If you’re adding a new service or location, you may have to hire new staff with additional qualifications.

Conduct a needs assessment to determine what resources you’ll need to be successful in the venture. Then conduct a gap analysis to determine which resources are already accessible to you and which you’ll need to source.

4. Build a prototype or test service

Choose 50 potential target clients to test your product or service and ask them to be really critical of it. You want all their thoughts on your idea, not just positive ones. The people testing it should feel free to express any issues they noticed, so you can build the best possible solution for them.

5. Embrace failure

Being comfortable with failure allows you to take risks and try new things. Embrace the idea that your new product or service won’t be perfect immediately, but with some constructive feedback and testing, you can tweak it so that it works.

Rather than focusing on the possibility of failure, focus on the idea of experimenting to make things work better. As a result, you’ll be more open to new ideas and pursue innovation.

Final thoughts

Successful businesses are built on innovative ideas, and it’s important to embrace great ideas. That said, with careful planning and testing you can increase your chances of success in the long run. If you have an idea for your business, these five tips will help you refine it so you can move forward.

If you’re wondering about the financial feasibility of your business idea, speak to us about your circumstances. We can help you take control of your business’s finances.

Payroll is one of those things that starts out simply enough. You start your business, hire a few employees, and things tick along pretty well. It’s straightforward enough to keep everything in line at first, but what happens to most companies is… they grow!

This is a great thing, but it also means that payroll becomes more complicated. As such an important aspect of your business, it’s important that payroll runs smoothly. Getting paid is, after all, the primary reason that most people come to work.

Here are some tips to manage payroll effectively:

1. Simplify

Payroll is one of those things that can be overly complex, and the importance of simplifying it can’t be overstated. Many companies, especially small and medium-sized ones, have their own quirks about how they manage their payroll. This can make it difficult for somebody else to step in, or for someone new to be trained.

Keep things as simple as possible wherever you can. One way to do this is by switching to direct deposit. This will drastically reduce the amount of work put into issuing and tracking payments.

2. Schedule

At least once per year, and preferably more, it’s important that your payroll professional take some time to create a payroll calendar. This will allow them to highlight any dates that may cause a lag in your employees getting paid.

It will also allow you to plan for any potential shortcomings or other issues that may arise from holiday closures or oddities in the calendar. Making a payroll mistake is a surefire way to lower employee morale, so it’s important to be aware of these dates ahead of time.

Once compiled, distribute the calendar to your managers so that they can communicate the information to their employees. This will keep everyone apprised of any potential delays in getting paid that may come up.

3. Automate

The computer can be your best friend. Finding the right software to help with payroll can automatically take care of simplifying and scheduling, freeing up valuable time for your payroll specialist.

It also eliminates the potential for human error in payroll processing and creates a crystal clear picture of your finances. There are many options available these days that are easy to learn and straightforward to maintain.

4. Brush up

Payroll rules and regulations can change frequently and for any number of reasons. It’s important to stay informed on any changes in your region and proactively plan for them.

A lot of time can go into correcting a payroll error, so know what’s happening ahead of time to avoid this. With more and more employees being hired remotely, it’s also important to be aware of any regulations that may pertain to those that are geographically located in a different area from your business.

5. Get help

There comes a point for all growing businesses where they have to outsource their payroll processing. If this is you, congratulations! It is truly a milestone.

There are many options out there as far as hiring a payroll specialist is concerned, and many of them are available online. Choose the one best suited for you without leaving your desk. This takes the pressure off of you to know all of the nitty-gritty details about payroll processing. By hiring an outside professional, you can be sure that your employees will be paid correctly and on time.

Final thoughts

Payroll is most effectively managed when it’s simple, straightforward, and coordinated. When it starts getting tough to keep it that way, it’s likely a sign that your company has grown and you’re ready for more robust support.

The working environment of the past 2 years has brought the concept of burnout to the forefront. Unexpected work-from-home situations, juggling the new normal, and mental fatigue have all contributed to the issue. Recognizing employee burnout and having a plan to address it will ensure you retain employees and keep your company healthy.

1. Ensure everyone takes their time off

In an attempt to appear as though they can handle it all, many people try to do too much. They neglect to take time off because they believe it will make them appear reliable and committed. The problem is, that everyone needs time to recharge. Not taking it can actually affect productivity negatively. Set a reminder to check twice yearly to make sure that everyone has taken the time off that they’re entitled to. If they haven’t, give them a gentle reminder to do so.

2. Be generous with your policies

All workplaces have rules. Be on time, work a certain amount of hours, be reasonable with breaks. These rules keep things running smoothly, and they’re important. But don’t get uptight if someone is a few minutes late once in a while, or expresses an interest in working from home from time to time. Allowances like these often make little difference to the company as a whole, but they can make a colossal difference to an employee who just needs a little bit of grace now and then.

3. Offer extended benefits

Extended benefits plans for your employees are such great incentives to draw people to your company. They allow your employees to rest and recuperate in ways that they may not otherwise. Anything that can be done to contribute to the overall health of your people is a terrific bonus, and one all employers should provide.

4. Encourage work-life balance

The Internet has made it so that we are always available, which is very convenient. It’s also terribly demanding. Since many of us are now working from home at least sometimes, it’s increasingly difficult to leave work at work. Make sure your employees are crystal clear about taking time away from their job. Ignoring this divide and having your employees feel like they have to be “on” 24/7 is a very efficient way to ensure they reach burnout quickly.

5. Make use of performance metrics

Every role in your organization should have a clear set of expectations, and they should be defined so that it’s clear how your employees can meet or exceed them. Not knowing how they’re doing, or being unpleasantly surprised at a performance review, is a fast track to burnout. Make the job easier by outlining expectations and rewarding those who exceed them, and watch morale rise.

6. Allow side tasks

Yes, we were all hired to do a specific job, but there are different things that make each employee tick. Allowing side tasks that your employees find enjoyable and rewarding allows them to mix it up a bit and show off their passions and talents. It’s a great way for people to flex muscles they wouldn’t otherwise, and workers tend to bring extra drive and creativity to activities that interest them. It brings more joy to work, which adds to the overall health of the company.

7. Remember we’re all human

Nobody likes to feel like a cog in the machine. There are, of course, expectations to meet in every job. However, employers would do well to remember that every single person working for them has an entire life outside of the company. Anything could be going on behind closed doors. A company that understands, supports and shows compassion to its employees is more likely to keep the good ones from burning out.

Final thoughts

Happy, well-rested employees are more productive and loyal. It’s in your best interests to do what you can to combat employee burnout.

Perhaps you’d always planned to build a thriving business to eventually sell for a tidy sum – or maybe for unexpected personal reasons, it’s best to let your company go sooner rather than later.

No matter what the reason for selling your business, experts agree: it’s best to be prepared well in advance as it can take years to complete a successful sale.

These four tips will help you get a head start on making your business attractive to buyers for the day you’re ready to sell.

1. Get a business valuation

Even if a business sale isn’t imminent for the next five years, it isn’t too early to meet with an appraiser. A valuation will give you a realistic picture of what your business is worth right now, and invaluable information on what you can do to improve its value.

When you’re ready to sell, having already had an appraisal can be a real plus for potential buyers. Sharing the details of your valuation shows transparency, creating trust and building credibility—while saving a buyer the expense of getting one done themselves.

Remember that timing is often everything with a business sale. Once you know what your business is worth, you can decide whether it’s best to move forward—or wait for a growth phase or improved economic conditions.

2. Make a succession plan

Every business, large or small, needs a succession plan. And when you’re ready to sell, having an exit strategy in place will put a buyer’s mind at ease because you’ll have already ironed out a smooth transition for you and the new owner.

A succession plan should include both the human resources aspect (e.g. a training plan for the new owner and any employees that stay on when ownership is transferred), as well as the management of any financial, legal, or tax issues. 

Once you’ve made all the hard decisions about how the business will run without you, be sure to review it once a year to make sure it’s always up to date. 

3. Tidy up your financials

The biggest red flag for anyone considering a business deal has to be disorganized or incomplete financial records.

A potential buyer will want to see your yearly tax returns for the last three to five years, as well as balance sheets and your profit and loss statements. You may also be asked to share accurate sales and marketing data, the value of your assets, and any outstanding liabilities – as well as your plans to resolve them.

4. Hire a business broker

Hiring a business broker with a proven track record can really simplify the sales process—especially if you’re too busy to look for an interested buyer or need professional expertise to get your business in order to sell on your preferred timeline.

You’ll want to meet with a few brokers to make sure you find the right fit. Look for someone with experience selling businesses in your industry, a large database of interested buyers, and an impressive closing ratio.

When you interview a broker ask for testimonials and info on the strategies they’ll use to market and sell your business. Reach out to your network for referrals—as with any professional service, when it comes to business brokers an honest recommendation can help you find a winner.

Final tips

Ask your broker about the best way to structure your business sale for the best return. If you’ve built up some solid equity it may be wise to offer a buyer a gradual sale or lease. In addition to a continued income stream for you, this type of arrangement can help make the deal attractive by reducing the new owner’s financial burden.

Making a few good local business connections can go a long way in helping your business grow. Networking can spark mutually beneficial partnerships, lead to new opportunities, and attract more customers through word of mouth.

In the age of social media, small business owners may think networking isn’t as valuable as it used to be. On the contrary, it’s just as important for people to get to know your face out and about in the community as it ever was. And fellow business owners are much more likely to refer you once you’ve met in person, even if you’re known for running a successful business online.

Here’s how to start networking more effectively with business owners in your neighborhood.

Join local business groups

Getting involved with your local Chamber of Commerce, Rotary Club, industry associations, or a local meet-up group is a great way to increase your visibility.

As an active member, you’ll quickly get to know a host of other small business owners to bounce ideas off of, partner up with on projects, and support each other’s professional growth.

Here are a few ideas for expanding your list of local business contacts:

• Run an ad and offer a member discount in your association’s newsletter
• Participate in networking events organized by and for members of your business community
• Host a workshop that helps members increase profits and/or improve an aspect of their business

Pay it forward

One of the simplest ways to the network (without feeling like you’re networking!) is to get involved in projects that benefit your local community.

Consider these opportunities to work with community leaders and business people for a good cause –while spreading positive word of mouth about your business.

• Host a community fundraiser
• Volunteer for a local hospital, shelter, or school
• Serve on a non-profit board or offer pro-bono services

Doing good work in your community will help you get to know other small business owners you can refer your customers to, and who may return the favor.

Pro networking tips

Here are a few proven ways to make better business connections at your next community event:

• Do a bit of background research on the people you’d like to connect with. When you meet in person, you’ll be able to break the ice more easily with a question or two prepared in advance.
• Follow up immediately after meeting someone. Stay connected on your shared social networks. Email a useful article from time to time to build goodwill and stay in touch.
• Use social media to stay abreast of what’s happening in your area, chat with local businesses make referrals, and target new customers.
• Be helpful. Networking isn’t about what a new connection can do for you. Ask how you can help your fellow business owners. Be supportive. Share ideas and information.

Final thoughts

Networking with local business owners can do much more for your business than help you gain exposure in your community.

Running a small business can be a lonely venture at times – especially if you work with remote staff or you’re operating as a freelancer or solopreneur.

Connecting with other businesses in your area can certainly boost your business, but it can also lead to close friendships, as well as mentorship opportunities, you’d never come across any other way.

Many entrepreneurs operate with their business processes and systems in their heads. They know what they need to do each day and the way they want to get things done.

Unfortunately when a business grows and staff needs to be hired – or the owner needs to take time away from the business – it’s a real liability not having processes and systems documented in one place.

Read on to learn the top five reasons to record your company processes and systems, so your business can run more efficiently and effectively even when you’re not there.

1. Improve efficiency

When you sit down to record your processes and systems, you may discover gaps where improvements could be made. You might find better ways to perform routine tasks, reduce bottlenecks, and eliminate extra steps. You may decide that some tasks are too time-consuming, and you’d save time and money by switching to an automated solution. Reviewing how you do things as you record systems can help create better systems, improving productivity.

2. Support staff training

When it’s time to hire new talent, a systems manual can dramatically reduce the time you spend training. Documenting your processes can also ensure jobs are consistently performed to a high standard. Sharing your procedure guidelines can help new employees and casual staff quickly get up to speed on expectations and give them a reference to check before asking questions.

3. Sell your systems

Develop a unique turnkey system that other businesses can implement to save time and cut costs, and you can increase profits by selling your operating manual. Those documented processes are part of your company’s intellectual property and can be licensed just like your brand name.

4. Getaway

One of the perks of running your own business is setting your own schedule. But without systems in place, it can be difficult to get away for a vacation, let alone retire. In order to build a business that can run without you, you need to be able to delegate the tasks and processes to someone else, with confidence they’ll be performed correctly and consistently. Another excellent reason to make sure your systems are recorded and your manual is updated regularly.

5. Sell your business

When it comes time to sell your business, you’ll get top dollar if you can provide a buyer with an operating manual. A potential buyer wants to know the business will continue to run smoothly without you throughout the transition period, and that institutional memory will be retained when there’s staff turnover. The greater ease with which someone can step in and operate the business, the greater the value and the higher your compensation when you’re ready to sell.

As we’ve seen, there are a number of excellent reasons to review your systems and record them, even if you’re just starting out. You might plan to update it yearly, just like your business plan, to discover best practices and ensure it maintains its usefulness to you and your staff.

Ready to begin documenting your processes and systems? Try this free template offered by manualtemplate.org to help you get started.

Cybercrime is a serious concern for business owners. Recently IBM Chair, CEO, and President, Ginni Rometty, called it “the greatest threat to every company in the world”. According to Juniper Research, by 2019 cybercrime will cost businesses a staggering $2 trillion.

It’s impossible to put a dollar value on what your customer data is worth – or the cost to your business should sensitive data be compromised by theft or loss. For many small companies, a security breach could simply mean the end of the business.

If you don’t already have a data security plan in place, these tips will help you take steps to prevent a devastating loss.

Protect your company’s information assets

Given what’s at stake, every company should prepare a data security plan that identifies their information assets – that is, hardware that stores private customer and employee information. Your plan should also outline potential threats to keeping information assets safe, and strategies to protect them.

Your information assets may include:

• computers
• tablets
• mobile phones
• servers
• USB keys
• fax machines
• employee devices used for work

In addition to inventorying information assets with descriptions and serial numbers, your security plan should outline your strategy for protecting data by asset, prioritized by severity of loss in a security breach.

This free cybersecurity self-assessment can help you determine the strength of your internal cybersecurity processes – a useful starting point to develop your company’s security plan.

Move to cloud-based storage

Storing company data in the cloud is one way to minimize the risk of customer data loss by keeping sensitive information off devices.

Cloud storage providers offer secured data centers, encryption, and authentication for your company data, as well as trained professionals working around the clock to keep your data safe from cyber-attacks.

Another benefit to cloud-based storage is that employees can log in securely to access customer information – a much safer option than transferring data over email or downloading it to computers, laptops, or mobile devices.

Set rules for company devices

Many small businesses rely on tablets and mobile phones to conduct day-to-day operations. Unfortunately, these company devices pose a serious threat to customer data if they are lost, damaged, or stolen.

Protect customer data with encryption, and be sure to install tracking software, update anti-virus protection regularly, and wipe data remotely from lost or stolen devices.

Talk to your employees about the importance of keeping customer data private and secure, and consider implementing these security guidelines:

• All employee passwords should be unique, difficult to guess, and re-set frequently
• Files should not be downloaded from the cloud to company devices, nor should apps that may carry malicious codes or security flaws
• Personal devices should not be used for work

Limit customer data access

Ensure only employees who need access to customer data in order to perform their jobs can do so. Take advantage of software settings that “lock” customer data by user, and disable access rights whenever employees retire or move on to a job at another company.

By following these guidelines, you can rest easy knowing you’ve taken important steps to keep your customer data safe – and your business safe from a devastating cyber attack.

Research suggests that as much as 93% of communication is non-verbal, so it’s not surprising that the tone and meaning of emails are misinterpreted as much as half the time.

For small businesses, email is frequently the preferred way to communicate with new leads, customers, and employees – but if haven’t mastered your tone, the meaning of your message may be lost. In the worst-case scenario, you may even unintentionally offend your audience.

Follow these tips to improve your tone when writing emails – or any other business communications.

Adapt to your audience

The tone reflects the writer’s attitude toward the reader, so you’ll use a different tone depending on whether you’re asking a bank officer for a loan or your customer to attend an exclusive sale.

Your relationship and your purpose will help you decide on your word choices, which might be formal and serious or relaxed and fun.

Using an active voice will bring your reader right to the point. Taking care to always use courteous language will keep them on the side.

Simple tone tips

If you’re ever in doubt about how an email may be interpreted, hit save and go back to it a day later – or ask a colleague to read and provide some feedback.

These additional tips can help you write emails that get read and avoid offense or confusion:

• Avoid using slang or sexist language
• Be concise, removing any unnecessary words
• Be appropriately respectful of subordination
• Be gracious (please and thank you go a long way with creating the right tone, and will keep you from coming off as too abrupt, especially if your email is brief).

Delivering a negative message

If your message contains some bad news, the tone becomes a bigger challenge. After all, there is no way around creating some unpleasant feelings in some circumstances.

You can, however, avoid insult to injury by following these tips:

• Thank the reader for their message, briefly explaining why you are unable to approve a request. In this case, passive voice is preferred because it helps neutralize the message.
• Take care to avoid personal attacks. You can maintain a professional tone by deferring to policies rather than your personal feelings about an event or situation.
• Avoid the “bright side”. Listing any perceived benefits can come off as uncaring, by downplaying the emotional impact the reader may experience upon receiving the message.

Final tips

Drafting a style guide will help make your company’s “tone rules” clear to staff, help build greater brand recognition with a consistent voice, and help you avoid the wrong tone in your communications.

Start by defining your tone. Is it casual and fun, formal and serious – or a bit quirky? Come up with five words that describe the tone of your brand. Then make a list of words that may and may not be used in your marketing emails.

To illustrate exactly what you’re aiming for with tone, include some sample text in your guide – perhaps some of your company’s collateral or examples of marketing emails that you’d like your business to emulate.