With the Coronavirus officially gaining pandemic status, many businesses are forced to close their doors. If you’re not there yet, it is a great idea to create a COVID 19 response plan to keep your business productive should you have to shut down for a period of time. Is your team prepared to work from home? They may say they have a home computer, but can it perform as well as the device at the office, or are you creating false expectations for clients around deadlines? You can only manage expectations if you have the assurance that your employees are equipped to deliver results from their homes. Alongside this, is your organisation’s personal data safe? Here are tips from Fiona Kresby from Go-VA, an offshore outsourcing expert. She shares some of the top tips from the industry to enable small business to keep operations going. Here is Fiona's comprehensive COVID 19 response plan for businesses; Step 1: Have a trial run Have your team utilise their home setup on a chosen day to have a test run. This will give you insight into the potential pitfalls you might face when you have to resort to this plan. Preparation is key! The trial run will reveal how capable your employees’ devices are at home, how stable the internet connection is (especially in homes with families where children might also access the internet line], and how capable your teams are of working quietly and undistracted. Step 2: Make use of free software Compare the specs and evaluate the capabilities of your employees’ home devices in comparison with the devices used at work by using a free diagnostic tool. Try the handy dothis.to software - it will give you a complete insight into the capabilities of both devices, giving you a realistic idea of which tasks can and which tasks can not be completed at home. Equipped with this insight, you can plan ahead which will reduce the stress and the pressure later on. Step 3: Understand the true risks around data security (and take precautions) Data security goes beyond spyware and firewalls. The truth is that while you may trust your employee, you don’t know what kind of environment they’re working from. You can’t control what kind of people might peer over their shoulder or access their device while they’re using the bathroom. The integrity of your privacy is completely out of your control. Use software like timedoctor to monitor the progress and privacy of your work. It comes with a camera, it can track screenshots, and it tracks time spent on a task for productivity analysis. Use zoom.us as an alternative to Skype when you need to host meetings. Shut down might be out of your hands, but keeping your business up and running is possible. Equipping your employees to work remotely, however, requires preparation. If you are not able to prepare adequately, offshore outsourcing can keep your operations running even if your doors are “officially” closed.
As a rule of thumb, I recommend that a first-time potential franchisee be prepared to spend at least one hour of research for each thousand dollars they are looking to invest in a business. Franchising continues to appeal to existing Australians who are looking to become self-employed, as well as new arrivals who qualify for business migration visas as a method of obtaining entry into Australia. However to buy and operate a successful franchise requires more than just having the cash to pay for it. Potential franchisees must be prepared to do some hard work to research and understand the business, the franchisor, and themselves in order to make the best possible decision. And here is the first hurdle: A potential franchisee must be prepared to roll up their sleeves and put some real time and effort (as well as some money via personal development and professional advice) into their franchise search. If not, they greatly increase their chances of picking the wrong franchise, and losing part or all of their investment. To increase the chances of picking the right franchise, here are some key pointers: What should I look out for? This boils down to three key things: Profitability. Sustainability and strong, competent Leadership. In good times, tough times, or anytime, these three criteria remain the same. Of course it’s rare that a franchisor will make representations about profitability or concede that their business is anything less than sustainable. It is rarer still that a franchisor would claim to have anything less than strong, competent leadership, so these concepts all need to be tested by a potential franchisee’s own research. If a potential franchise buyer is not prepared to invest the time to properly research what they are buying, then they must accept some or all of the responsibility if the investment fails. How much time should I spend researching a franchise? As a rule of thumb, I recommend that a first-time potential franchisee be prepared to spend at least one hour of research for each thousand dollars they are looking to invest in a business. For example, if a franchise costs $250,000, this amounts to up to 250 hours of research. That might sound like a lot, but the saying that a fool and his money is easily parted might have been created specifically for those people who recklessly invest after making hasty, ill-considered decisions. Most franchises offered at $250,000 and above will be retail businesses, so prior knowledge and experience in retailing may be useful and should be included as part of any pre-purchase research. What sort of research should I do? Such research might include (but not be limited to): Start your search for a franchise by visiting one of the upcoming franchise expos held each year in Australia Sydney, Brisbane, Melbourne and Perth, as well as look at franchise opportunities online; Once you have shortlisted one or more franchise systems, carefully read through the information provided by the franchisor. You should also engage an experienced franchising lawyer and accountant, and read the documents for yourself as well as get professional advice. (Many franchisees fail to read their franchise contracts, and then afterwards discover they have signed for something that they didn’t know about or wouldn’t otherwise agree with. Reading the documentation for themselves will also help potential franchisees understand the advice they are being given, and to ask more informed questions of their advisors and the franchisor.) You should contact current franchisees in the system (or at least as many as possible) to ask them about their satisfaction with the franchise, the lessons they’ve learned along the way, and the sort of research they did (or wished they had done) before buying the franchise. The list of current franchisees and their contact details will be included in the franchisor’s disclosure document, however this document may only be available at a relatively advanced stage of negotiations with the franchisor, and in the meantime, franchisees’ details or locations may also be available on the franchisor’s website and in the telephone directory. You should also contact the former franchisees who have left the system in the last three years. Franchisors must provide a list of these franchisees and their contact details (where known) in the disclosure document. By contacting former franchisees, you will have an understanding of their satisfaction with the business and their reasons for exiting. Again it is important to contact as many as possible of the names provided. Calling just one or two is likely to provide a distorted positive or negative view of the system, and only after contacting the full list can a potential franchisee develop a balanced view of the satisfaction of former franchisees and why they left. Compare concepts. There is usually more than one franchise concept servicing a market niche (however unique], so check out the value of the competing offer. Even if the initial investment price is the same, similar franchises may have radically different fee structures, marketing levies, support systems, purchasing or other arrangements that can radically affect the long-term value and profitability of the business, or satisfaction of the franchisee. Verify for yourself any statements or representations made by the franchisor, or issues raised when contacting current and former franchisees. This might include even spending time doing market research such as counting houses in a territory, searching Australian Bureau of Statistics and other sources of data, counting vehicle or pedestrian traffic and directionality outside a potential shopfront, or many other things. While this may sound tedious, it’s all part of ensuring that the facts being used to make the decision to buy the business are the right facts; Consider if you should work part or full time for a period in a franchised store or territory to get a genuine feel for the business (in which case, the longer the better, and the one hour per $1,000 invested rule can be extended). People who have worked in franchises before buying them increase their operational proficiency and become culturally acclimatised to the organisation, thus reducing the likelihood of a horrible “I wished I’d known this before” moment after the investment has been made. Undertake small business and franchise training courses and workshops. People going into self-employment forthe first time don’t know what they don’t know and look to the franchisor to fill this void for them. This creates the opportunity for unscrupulous franchisors to abuse their trust, or for the franchisee to develop unrealistically high expectations of the system for which the franchisor cannot deliver. Understanding basic principles of franchising, as well as basic business concepts and financial literacy are essential to improving and maximising the long-term value of any franchise investment. (The Franchise Advisory Centre (www.franchiseadvice.com.au) hold a number of workshops, seminars and short courses, as well as various state and federal bodies, and business/industry associations. What are the best franchises in the current economic climate? Established systems with a critical mass of profitable, satisfied franchisees will not only weather the current economic storm, they will come out the other side in top gear and quite possibly buy out or take market share from a competitor or two along the way. Furthermore, these systems will need to have dynamic and talented leadership teams, strong corporate governance, and enduring customer appeal. Having said that, concepts such as “established”, “critical mass”, “satisfied”, “dynamic”, “talented”, “corporate governance”, and “enduring appeal” are subjectively assessed, and relative to the eye of the beholder. An evaluation of a system on these criteria might produce different outcomes for different people. Cash businesses (or those with tight credit controls) combined with clever marketing and exceptional levels of customer service (and there are many examples of these in both service and retail franchise brands) that fit the above criteria will perform strongly in the next couple of years. What about new franchises? There is opportunity in adversity for any entrepreneur. New franchise concepts emerge in Australia at the rate of about 100 per year, however not all of these will be viable in the long run. There may be more risk associated with investing in a new franchise system with just a handful of franchisees, compared to larger and more-established brands, however there may also be more flexibility and growth opportunities for franchisees of new systems. It is also possible that the franchisor’s training, field support and marketing assistance for new franchisees may not be as well-developed in new systems compared to established systems. What should I be wary of? The recently-unemployed, particularly those with sizeable payouts for years of accumulated service, holiday pay, etc, are prey for unscrupulous operators. In particular, advertisements that claim a business is a “license, not a franchise”, or which include income guarantees or similar offers should be approached with caution. It is essential that business migrants, some of whom will not have been in business for themselves before, may well make excellent franchisees. However their potential naïveté makes them particularly vulnerable to poorly-considered decisions, hastened by unnecessarily eager franchise salesmen. Migrant franchisees should also be wary of offers to buy multiple outlets at the same time, or master franchises. It will be difficult enough in most cases to learn how to operate just one business, without compounding the challenge across many businesses. The key lesson here is to undertake proper research. (See research hints above). What laws exist to protect franchisees? It is also worth noting that although the last recession occurred before the Franchising Code of Conduct was introduced (ie. the laws that regulate the franchise sector], there is no amount of legislation that can adequately protect a franchisee from a hasty, unresearched and ill-considered investment decision. Distributorships and licensed business opportunities are often advertised alongside franchises, but look, sound and feel the same as a franchise. No matter what they call themselves, if they meet the four criteria in the Franchising Code, then they are a franchise. This entitles potential franchisees to receive a disclosure document (containing a variety of important information as well as the lists of current and former franchisees critical for proper research], as well as a mandatory cooling-off period, recourse to mediation in the event of a dispute and all the other protections available to franchisees under the Franchising Code of Conduct. The best way to distinguish between a legitimate franchise offering and something that is designed to separate an aspiring business owner from their cash is to educate yourself, and do your research. Only then can you make a balanced decision that takes into account your long-term interests. Where do I go for help? Visit the Franchise Council of Australia’s website at www.franchise.org.au to see if the franchise that interests you is a member. Membership of the Franchise Council means that franchisors have agreed to an even higher standard of conduct than the minimum required under the Franchising Code of Conduct. Also visit the Franchise Advisory Centre website at www.franchiseadvice.com.au for many free articles on what you should know before buying a franchise. Jason Gehrke is a director of the Franchise Advisory Centre and has been involved in franchising for 30 years at franchisee, franchisor and advisor level. He provides consulting services to both franchisors and franchisees, and conducts franchise education programs throughout Australia. He has been awarded for his franchise achievements, and publishes Franchise News & Events, Australia’s only fortnightly electronic news bulletin on franchising issues. www.franchiseadvice.com.au
Here today. Gone tomorrow. Such is the life of many brands in the fast paced digital world we now live in. The challenge for any brand, is how a brand can can effectively express it's own essence, it's true 'WHY\" and cut through all the social 'noise' in a way that’s more easily digested by those who will buy from you. As world famous Tennis star Andre Agassi said “Image is EVERYTHING”, and it’s especially true when it comes to creating a logo, the corner stone of any brand. A logo, by definition is a visual representation of your brand and is far more effective than a written explanation of your products or services. As a branding expert I’ve established 1000's of brands in my career and I’ve learnt a few things about how to create an iconic brand that will give your brand longevity and help your business stand out . Here are 9 ways you should consider when designing your brand. 1. Avoid a visual look too similar to another brandOnce a brand has become established it starts to become recognised by the general public. If you choose (or copy) a logo design that’s too similar to another brand, your market presence may be forgotten or overlooked - as your logo is mistaken for someone else’s and, worse still, they win the business! 2. Fonts matter, choose wiselyA font is just as important as the design of a logo. The font should incorporate the same feel as the business AND it should be appropriate and legible. Whether it's modern, edgy, timeless, or a sophisticated italic, it must match the overall appearance and personality of the brand or company it represents. 3. Cliché trends are fleetingDots, swooshes, straight lines, 3D shapes; these clichés have been so overused in a logo design that they are instantly disregarded. Don’t try to ‘spruce up’ a logo with these ineffective additions either, as it will only cheapen your brand. 4. Don’t rely on colourHaving a logo that doesn’t reproduce in black and white is a hugely common problem – even the Commonwealth Bank’s logo*, when not in colour, transpires to a black square! So make sure you check that your logos important features work well in colour and black and white. 5. Remember who you're targetingYour brand must appeal to your target audience if you ever want them to buy from you. So your logo is used as a visual tool to aesthetically draw the attention of your target audience and communicate your brand’s message. Unless your Mum or the kid studying design next door is your target market, don’t rely too heavily on their opinion. 6. Design for tomorrow, not todayBe cautious of creating a brand that look out of date or follows a trend that’s happening right now. A great brand grows with the business and can withstand time as long as the business does. Don’t choose a logo that is representative of a certain decade, era or trend, or you’ll risk making your products and services seem outdated, along with your logo. 7. Vanilla creates more blandSimplicity is important, but too much is boring and sterile. A “vanilla” brand isn’t memorable and adds to the noise out there. It won’t speak or form an emotion connection to your target audience. Your logo must incorporate just the right amount of personality, to avoid being boring or overlooked. 8. Simplicity is bestToo many styles, elements or ideas joined in the one brand could lead to a misinterpretation of your business, or attract the wrong kind of consumer. A brand is designed for quick recognition and brand loyalty – too much going on will defeat this. 9. Pay attention to spaceA busy brand with everything in it doesn’t appeal to customers. It creates a poor looking brand and becomes difficult to decipher, especially when letters are included. The visual logo must be clear and crisp to resonate with your target audience at first glance. Stick with an odd number of graphic elements, one, three or five elements work well. And, always remember the purpose of the 'why' of your brand. This single element alone will often set the tone for creating a brand that will be impactful and succinct, and can be used to represent your business for many years to come. For More Information: Stella [email protected] 109 102www.brandforbrands.com/stella-gianotto *Image Source: Adobe Stock (editorial use], References: Andre Agassi Quote http://www.tennis.com/pro-game/2015/08/image-everything-andre-agassis-infamous-ad/55425 Commonwealth Bank Logo reference: https://www.quora.com/What-does-the-Commonwealth-Bank-logo-represent
Building a business can be a tough gig, but working for your business owning boss when they’re at their wits end is no walk in the park either. The pressures facing entrepreneurs are widely known but sitting behind the owner’s stress, exhaustion and burnout are the staff doing their best to hold it together. Yes, the average entrepreneur spends nearly 70% of their time running a management hamster wheel. Yes, it’s a time consuming race that has a quarter of them working over 50 hours per week. But if the business owner is stretched too thin, chances are their staff are coming to the end of themselves too. Staff miss out on training It’s exhausting for business owners to chase their staff around to fix their mistakes. It’s frustrating for them to watch their team wasting precious time because they can’t find what they need. And it can be infuriating to realise that no matter how many times you show them, they still don’t know what to do. Even though research shows employees want to be trained, business owners in survival mode typically abandon the training and development their staff need to create business stability. Employees want to work more effectively, develop new skills, and advance their own careers. If they don’t get it, research shows 40% will leave the company altogether. If you employ millennials, 87% say they will jump ship if staying with you means missing out on professional development and career growth. Proactive business leaders make staff training a priority. They see the learning opportunity in every mistake and they champion the development of their staff as the best way to grow the business. Staff can feel unappreciated When you have been tied night and day to the work of growing your business it can be difficult to pop your head up out of the trenches to check in with your team. 30% of business owners report struggling with depression, and 50% of those deteriorate through to full burnout. Reaching out to care for your team is undeniably difficult when you can barely string five minutes together to care for yourself. It is easy to take your staff for granted, but when employees don’t feel valued or rewarded by their employer, they are likely to leave. 79% of employees who quit cite lack of appreciation as their reason for leaving, but with proper rewards and acknowledgement 90% of employees report feeling like their work really makes a difference. Strategic business owners invest just a few moments each day into acknowledging their staff and the contributions they make towards lasting business expansion. Staff will cost too much While your staff have the potential to be your greatest business asset, employees who miss out on the training and TLC they need can become a costly expense in any business. For every thousand employees, ineffective training costs businesses $13.5 million each year in poor customer care, reduced performance, and wasted resources. If a disgruntled employee leaves, replacing them will have the business owner spending half of their annual salary to find and train their replacement. The problem is that many business owners see training as a short term expense rather than an investment in the long game. Companies that invest in employee training have 24% higher profit margins than those that don’t, and they enjoy 218% higher income per employee than companies without formalised training. Business owners burning the candle at both ends in pursuit of growth will do well to remember that being the champion of their staff will accelerate the achievement of their aims. To develop a proactive leadership plan for your business, go to http://www.operationverve.com
Working on your business, not in your business, is the prevailing wisdom among businesses at the moment but growthcoaches.co founder Justin Theng said that it’s beneficial for entrepreneurs to learn to become better marketers. Speaking at a recent marketing training event, Justin Theng — a former advertising executive who now owns and operates marketing coaching business GrowthCoaches.co — said that many business owners have had at least one bad experience with a marketing agency or a marketing person they’ve hired. He subsequently told this publication that the reason is because instead of owning the marketing conversation the same way that they typically own the sales conversation, business owners abdicate instead of delegate. “For the last 15 years I’ve worked businesses ranging from large household brand names to small businesses and startups. What I’ve found is that the businesses that go onto see the most success are the ones where the owner has applied themselves to being the architect of their own marketing plans, with some guidance,” he said, “We have a diverse range of clients, from the top end who book in workshops over a number of days, and those who just want a quick online course with less than $500 to spend.” What is the most common mistake business owners make with their marketing? When it comes to their marketing, many business owners like to take a set-and-forget type approach. They’ll engage an expert to do the marketing, and hope that they’ll just get on with it, while the business sits tight and waits for the sales to come in. “When marketers don’t have regular connection with the visionary in the organisation, the chief ideas person, then the marketing can devolve into guesswork,” he said. “What’s worse, is the business owner is left thinking that they are not getting what they wanted, and the marketers wonder if their efforts are valued. That perceived indifference on both sides causes more lost ROI than anything else. How can business owners improve their mindset towards marketing? According to Mr Theng, entrepreneurs make the best marketers, because from the beginning they have lived and breathed the message to market. “Imagine one day the business owner is on a stage speaking to other entrepreneurs and inspiring them with the journey they've been on to get to where they are. In that context the brand and the entrepreneur are one in the same. They are the story of the business, and in a sense you can’t really delegate that,” he said. “Sure, they may not be able to use any marketing technology or use the tools, or even be the best with all the latest tactics and strategies, but that's not marketing. That's just execution. Real marketing is about moving people and motivating people to engage with the business and transact. That's it. That is what good sales is, and that is what good marketing is.” What to remember when planning your marketing Realise how involved you would be in your marketing if the whole world were watching. How close would you be to your marketing? You probably wouldn't set-and-forget.” Don't wait until you're on a stage to be an influencer and a brand ambassador. “Be an influencer now. You're already an influencer with your customers. When your customers or clients want the best of the best, who do they ask to speak to? You. So don't just be that in a small community of people who are already transacting. Be the best influencer you can beyond that. Whether that be on social media or in writing articles or blog posts or establishing partnerships or speaking engagements.\" Be an internal influencer. “Influence your team. Be the most customer-centric, marketing-thinking person in your business, and inspire, lead and coach your team. Be the one in your business to know the plan, like an architect turning up at a construction site. The architect is the one that designed the building. He knows what's going on. He doesn't know how to mix the concrete, necessarily. He's not there to tell the foreman how to be a foreman. But he is the guy that's carrying the vision in his head, and he knows not just what the building will look like, but what people will feel when they're in the building. What the space is supposed to feel like. What the emotions are that comes with it.\" For More Information Justin Theng [email protected] http://growthcoaches.co
Selling a business is often an emotionally taxing experience as an owner. You have to balance handling all the administrative matters correctly with preparing for life away from your business. As a result, it is really easy to overlook certain parts of the process, which unfortunately can create headaches down the track. This is particularly relevant to the legal aspect of selling your business. To help you avoid any complications, we’ve come up with a list of legal factors for you to consider before signing off on a sale Terms of Sale When presenting your business for sale to prospective buyers, it’s important to be very clear and specific about what exactly you want to sell. The goodwill of your business can be spread throughout your tangible and intangible assets. This can range from land and equipment to your business name and customer data. You will want to establish the elements of your business that you wish to sell or retain, prior to entering into a Business Sale Agreement. Business Name Transfer If you do agree for the new owners to take on your business name as part of the sale, you will be responsible for the transfer process. ASIC provides a simple to use service to transfer a business name to a new owner. This process is done completely online and is accessible here. It is important you are aware of this obligation prior to agreeing for your business name to be sold. Employees When selling your business, the future of your current employees will be one of the more pressing matters to deal with. This is something you don't want to neglect, as there can be legal consequences if you do not act appropriately. During the process of a business sale, there are essentially two outcomes that can occur with regards to your employees The new owners may want to keep your existing employees when they take over the business. In this instance, it is wise to provide as much information to the new owners in order to avoid any confusion or complication. As a starting point, you should transfer your employee’s most recent records over to their new employers. In addition, you will want to make them aware of any existing obligations you have with your employees. These could include contractual, financial, legal or leave related agreements. Despite the fact that your employees will still have work, you will need to provide notice of their employment ending. Inform them that they will have to enter into a new contract with the new owners, which comes into effect when the business is officially sold. Alternatively, if the new owners have no intention of employing your staff then you should notify them as early as possible. This can be a delicate situation to deal with, and as a result, honesty and transparency during this process is vital. Being clear with your employees about their future will not only benefit you as the employer but will also give them the best opportunity to find other employment. It’s best practice to refer to and follow the requirements of the Fair Work Act 2009. Leases and Licenses During the negotiation process with a potential new owner, it’s vital to identify any existing leases, licenses or permits that concern the operation of your business. An existing lease may require a transfer to be arranged with the vendor to the buyer. With regards to licences, councils tend to be the authority that will manage the transfer process when a business is sold. Liquor and food licences are examples of this. Failing to disclose any of these factors, can lead to legal consequences, especially if they are noticed after a sale has been completed. The key theme to remember throughout the entire process of selling your business is transparency. Disclosing relevant information about your business to a prospective buyer will ensure you don’t encounter any complications after the sale. If you are uncertain about any aspects of the selling process, the advice of a business sale lawyer be of use. For more information, contact Christopher Tsiknas at Lawpath [email protected]://www.lawpath.com.au
Before I take on a client I stop and look at everything about that industry that could gripe, frustrate or irritate a potential customer. I ask people what irritates them. I try to internalize the same problems so I can experience the customer’s frustration when I create my client’s marketing. I write down on paper precisely what aggravating problems I want my client to promise to correct - all the problems someone could have who seeks out my client’s product or service. I then examine companies in my client’s field who are doing things right by addressing one or more of the problems on my list. I look at a lot of different industries looking for the undisputable winners’ in each field. Why? Because many success-building techniques that work for one firm in one industry are adaptable to others. In fact, most are useful. I've prepared a suggested worksheet you can modify or add to. Carry it with you all day. Keep it in the car when you're driving and listening to the radio. Keep it handy at home or in the office. Every time you see or hear something that irritates you, assume that it irritates the heck out of most everybody else and jot it down. To remedy this problem or its equivalent in your industry can lift your business head and shoulders above your competitors. When you see a business that truly stands out, ask yourself – What distinguishes that firm’s performance from its competitors? Once you find an answer, record it, and then employ that same technique in your business. Here is my suggested worksheet: Things I can't stand in other businesses. What would I do if I were in that business to overcome that problem? How I can adapt the positive side of that negative observation over to my business? Things firms do that impress me. How I can adapt that technique into my business’s marketing operation? Terrible ads I've seen. How could they be improved? What salesman/woman has impressed me? - How and why? How can I adapt that positive impression to my marketing? What turnoffs have I been subjected to by salespeople? How could that negative be converted to positive? How could I adapt that positive? Prepare worksheets for radio, T.V., newspapers, the Internet and direct mail and then force yourself to review it regularly. Frequently and systematically review this data, to identify marketing elements that can be incorporated into your business operation. Take the necessary actions to test the effectiveness of these elements in enhancing your marketing programs. While doing all this, remember your Unique Selling Proposition (U.S.P.) the reason or reasons why customers should chose to do business with you over your competition? If asked to recite in a tight, concise, compelling 60 words or less, the Unique Selling Proposition their firm offers that goes above and beyond all their competitors, most business owners would go blank. If you can't immediately, clearly articulate one or many unique sales appeals, how do you expect your customers to perceive it? Indirectly this article is really about how to improve, expand or create a compelling U.S.P. to make your firm invincible. It really works. Try the techniques. Integrate them into every fabric of marketing and observe the impact. It truly will amaze you. Bob LyonThe Better Business Report0438 830 937
The job market is not like it used to be. The people on both sides of the table know that business owners need their staff more than the staff need their employer, and if they plan to sell up, they need the loyalty, reliability and efficiency of their staff more than ever. The power game is up for the boss. We are in a seeker’s market. I spoke with a business owner recently who is passionately invested into the goal of building his very successful creative design business into a cookie cutter franchise model. He says he plans to duplicate that model across multiple stores to create a saleable asset. He’s in the early stages of his journey, and on this day he was lamenting the frustrations of recruiting his first hire. “They come into the interview and ask what I will offer them! As if I owe them something!” The stats around employee motivation and expectation act as a challenging mandate for business owners. A 2018 study by Axonify showed that over 85% of employees not only want training to advance their own career, but they want it to be fun, personalised, easy to understand, delivered on paid time, at a time they choose. As real human beings with feelings and pride, employees also want acknowledgement, recognition and reward. Octanner tells us that 79% of employees who quit their jobs cite a lack of appreciation as a key reason for leaving. 69% of the participants in that particular study reported not having been recognised even once that year. No wonder 85% of employees are disengaged at work! In a 2016 Reventure study on the Australian Workplace, half of workers admitted that “some days of work don’t really get my maximum effort.” Guthrie Jensen tells us that 74% of employees feel they aren’t reaching their potential at work. This is an expensive problem. 40% of workers say they will leave their employer in the first twelve months if they do not receive adequate training to do their work, which costs Australian businesses $33 billion annually. Workplace disengagement across the board costs over $500 billion each year. The last thing you want if you are working a plan to sell your business is to have unpredictable, disengaged staff manning the fort. Long-time business mentor and exit strategist Denise Hall, affectionately known as “The Entrepreneurial Mother”, says most business owners leave their run too late when it comes to adequately preparing for the sale of their business. “The actual sale process should take anywhere between 3-9 months. But you’ve got work to do first to get the asking price up. From a salability perspective, your staff need to have the expertise to transition the business from your ownership to the next party. They need to be able to replace you entirely.” Business owners who break the statistical mould prepare their business for sale well in advance on the strength of their staff training and development programs. This is about more than boasting the competence and productivity of your current workers. Building a saleable asset relies on the creation of robust staffing processes. Effective systems for training, management and promotion attract high quality candidates, empower them to perform well when they’re hired, and make them reluctant to leave. Furthermore, a business asset is only truly ready for sale if it can be demonstrated that even in the face of staff departure, it is guaranteed that the business show can and will go on. Benjamin Franklin once said “an investment in knowledge pays the best interest” yet gaping holes in workplace training abound. Axonify’s study shows that one third of employees receive zero training, and 43% of those who are trained say that training was ineffective. A recent study by CareerBuilder.com shows that a whopping 58 percent of managers said they didn’t receive any management training at all. To be fair, the vast majority of businesses do offer staff training in one form or another, but effectiveness is the key to building a saleable business. A 2017 ReportLinker study revealed 83% of employees with opportunities to take on new challenges say they’re more likely to stay with the organisation. Companies that offer comprehensive training programs have 218% higher income per employee than companies without formalized training. But it doesn’t stop there. These companies also enjoy a 24% higher profit margin than those who spend less on training. You might like to think of your business asset like your car. Your employees are the engine, and training them provides the fine-tuning and maintenance they need to ensure optimum performance. If you’re looking to sell that car, the potential buyer will be impressed if it hums like a dream. If you can show long term service records, they will be confident the vehicle has been prepared to perform well into the future. If you’re selling your business, your potential buyers need to see staff working like a well-oiled machine as a result of their performance being maintained by systems that are recorded, tried and tested. When you as the seller can show that the work of your staff is consistently excellent because you have developed well-refined management systems, you are a very attractive candidate indeed. For more information about setting productive goals in your business, contact Kerry Anne Nelson at Operation Verve http://www.operationverve.com
The end of the financial year brings with it the thrills of counting the beans of your business wins, or the condolences of tallying up losses. It is a perfect time to take stock of your current position and how you got here. Revise the goals you have set in your business for improved performance and better results. Ultimately, your goals will be successful only when their achievement grows your business and establishes freedom. Often measurements are set around lag goals which is not always helpful. Lag goals are usually results oriented, meaning their achievement comes directly from your organisation’s activity. Lag goals are easy to measure but not as easy to improve or influence. These goals target outcomes such as the number of sales made or the amount of revenue produced. While tracking them has value, they’re not always the most productive areas to set KPIs around, because they are by definition the type of goals that lag behind the activity being done. They can only be attained as a result of your routine business activity. Lag goals are important to measure because results are important to achieve. But if you want to control the activity leading these results you need to set KPIs around lead goals. Lead goals measure what is actually being done in the here and now. They are easier to influence or improve because they deal with immediate progress and show the likelihood that you will reach your aims. Lead goals track activities such as the amount of sales calls being made to result in the sales. They count the amount of customer interactions that you’re having which will result in revenue. They tally how many ads being presented on a daily, weekly or monthly basis to achieve the social media reach that you might be looking for. To put it simply, the difference between lead goals and lag goals is the difference between counting the amount of workouts you do and counting the amount of kilos you lose. The workouts are directly within your control, while the weight loss is something you cross your fingers for in hope. When you’re setting your business goals this financial year, be clear on the difference between lead goals (which are your daily and weekly routine activities) and lag goals (the results or the output of that activity). For more information about setting productive goals in your business, contact Kerry Anne Nelson at Operation Verve http://www.operationverve.com/
Did you know that 97% of all businesses here in Australia are small businesses? And did you also know that over 67% of small business owners don’t make it through to survive their first 5 years? Running a business is not for the faint of heart. Entrepreneurship is undeniably risky. While there are a number of small businesses that perform well and are continuously profitable, a larger portion of businesses fail without the proper tools in place to achieve critical business objectives. So many small businesses are on an inevitable path to failure. Here are four reasons why small businesses fail: Not making enough sales A large number of businesses fail because they are over-reliant on a very small number of clients. It takes just one unexpected closure to result in a significant fall to rocky financial. Short-term future earnings can be massively reduced, and invoices for completed work can go unpaid. While maintaining caution about spreading yourself too thin, you should try not to rely on a very small client base. If you deal with a very few clients, or if a small number make up the bulk of your turnover, you should begin scouting for new prospects. 2. Expenses are too high – Just as good cash flow keeps a business afloat, poor cash flow can sink it. If your bills exceed cash on hand, you’ve got a cash flow problem. Cash flow can also shift dramatically depending on the time of year, or even by day of the week. What makes it even more challenging is that cash is most needed when your business is growing. A strict handle on cash flow helps insulate your business during struggles, downturns, or unpredictability, and also allows more flexibility during growth periods. 3. Record keeping As a small business owner, you understand your business’ processes inside and out. You probably lose sleep at night worrying about your sales. You’re passionate about your business succeeding, and you’ve invested your life’s work into it. But, there are metrics that small business owners often overlook and fail to record and track effectively, which ultimately hinders them from making strategic plans thus preventing them to succeed in their businesses. 4. Strategic management A 2011-12 report by the Australian Securities and Investments Commission (ASIC) found that 44 percent suffered poor strategic management. This is another common reason why small businesses fail. For a small business to grow and succeed, it needs a good strategy and a plan to support it. As an entrepreneur, don’t make the mistake of excessive idealism concerning your business, don’t be so focused on your vision for the business that you forget or neglect creating a strategic plan that factors in important components of your business and addresses them adequately. Having a clear understanding of exactly what we are dealing with here in our small business journey is half the battle. It is vital that we keep the passion we have for our small business in check with the realities of our very survival. Developing a clear plan to address each of these four areas in our small business is the only way that we will earn our right to be on the positive side of the statistics, growing and expanding beyond our humble beginnings to the larger operation we always imagined. If this article has struck a chord with you, please reach out to Kerry Anne online. She loves hearing about her readers’ businesses and is passionate about helping them to transform their operations into the Freedom Machine they’ve wanted all along. She is dedicated to establishing proven business systems to create team certainty and sustainable expansion which open pathways to new lifestyle choices. http://www.operationverve.com/
“The greatest thing in this world is not so much where we stand as in what direction we are moving.” Johann Wolfgang von Goethe It’s hard to keep up appearances in your business when the backend is chaotic and stressful. Successful businesses thrive on the hard work of well-oiled business processes, dedicated employees, excellent communication, continuous innovation and a desire to provide more to customers. All of these depend on how well managed a business is – how effective the management is in steering the business in the right direction. Whether you are the business owner, a customer or a prospective investor, you want to be a part of a business that’s being run smoothly and efficiently. Let’s explore the five groups that can see all the behind the scenes pieces of your business. These are the people who experience the effects of a poorly managed business, which this puts you on the back foot when it comes to driving business growth: STAFF: The first group of people is your staff. What does your business look like from a staff point of view? The more you can get your staff flowing competently and confidently, you will find that they are the very people that will pick up the mission of your business expansion and drive it forward are better than you ever could. Make sure to create a supportive environment where everyone knows what a good job looks like. And when that is done, ensure that work is getting rewarded. CUSTOMERS: The next group of people who are going to see the effects of the backend of your business are your customers. They may not see what's going on in your business filing systems, but they're certainly going to get the effects of how things are run. Make sure your customers experience a consistently positive event when they engage with your business. They should always have the same type of service, receive the same sorts of follow up, and have the same sort of exemplary experience in your business. If they don't, they may not tell you, but they will tell their friends and family or put their reviews online. So make sure that the backend of your business is driving exceptionally positive customer experiences. SERVICE PROVIDERS: The next group of people who are going see the effect of a poorly managed business backend is your service providers. Your suppliers and contracted service providers have the potential to become some of your biggest raving fans and they have the ability to drive your business forward into new growth. If your business doesn't have a good flow when you're dealing with your service providers, that word will spread like wildfire. FAMILY: The fourth group of people to see the effects of the behind the scenes part of your business is your family. If you're going home tired and stressed, worried that you're juggling too many balls in the air because your systems and processes don’t flow, they are going to feel the impact. But conversely, if you are refreshed, and constantly achieving and expanding in a sustainable way, your family will jump on board and celebrate that with you. It's really important to get that behind the scenes aspect of your business set up and running smoothly because you want your family to be advocates for you and your business’s growth. YOU: And finally, the last person is you. You can put on all the smiles in the world when you’re in public, but if your business is a mess behind that veil, deep down you know that things aren't right. It is hugely important that you have a sense of integrity and honour about what’s happening in the engine room of your business. If your business is clean and clear, and it matches the glossy front end of your business, then you know the entire operation is being represented truthfully for everyone to see. If you want to stay ahead of the growth curve in your business, it's really important that the back end of your business matches what's happening in the front. If you want to continue to scale that business through to become something that's bigger than yourself, expanding, multiplying, creating a positive impact in the world, you need to realise that in reality, what’s happening behind the scenes is driving what people see and experience, and not the other way around. If this article has struck a chord with you, please reach out to Kerry Anne online. She loves hearing about her readers’ businesses and is passionate about helping them to transform their operations into the Freedom Machine they’ve wanted all along. She is dedicated to establishing proven business systems to create team certainty and sustainable expansion which open pathways to new lifestyle choices. http://www.operationverve.com/
Today one of our major national newspapers is carrying a front-page story about the ongoing energy crisis and the potential economic risks that flow from political plans based around ideology not reality. Peter Strong, CEO of Council of Small Business Organisations Australia (COSBOA], responded saying; “Business knows that if you have a problem then you must address it with a plan that identifies and manages change and the risks - practically and comprehensively – you can’t stand still. It is time for our political parties to stop pandering to the extreme left and extreme right voices in their ranks – they must let the ‘sensible centre’ majority to be heard.” “Small business is frustrated and angry – we continue to feel the pain from ever increasing energy prices while farmers and businesses in regional communities face devastating losses from bushfire and floods of increasing severity.” COSBOA knows that small business people, like all Australians, want an energy system that provides reliable and affordable electricity while reducing GHG emissions. This can be done without destroying jobs and wrecking the Australian economy in the process. COSBOA will be holding an invite-only Small Business Energy Summit in Melbourne on 20 March to confront this issue head-on. This summit will focus on all challenges and develop a roadmap that is about change management and risk management. The Energy Summit will be working out ways small businesses can take control of their electricity usage and costs, in a way that is both affordable and environmentally responsible. Mr Strong added, “Many households have voted with their feet by installing rooftop solar panels. Doing this in a small business, operating in a building or shop they don’t necessarily own is harder, but not impossible.” “And it is not just about coal and renewables. There are major opportunities for Australia to better harness its vast reserves of natural gas to power Australia’s economy with lower carbon emissions, alongside coal and renewables. Yet many State/Territory governments appear to be asleep at the wheel in respect of these opportunities”. “We are going to assemble a team of partners (political leaders, business leaders – big, medium and small) to develop a practical plan that will work for Australian Businesses.” “We are delighted that Minister Taylor has agreed to open the forum and we will be inviting the other political leaders in this space to tell us how they could help Australian businesses (of all sizes) take control of their energy costs and responsibly reduce their GHG emissions”. Mr Strong finally added; “It is past time for action. The time for talk ended years ago.” ____________________________________________________________________ For more information on COSBOA visit cosboa.org.auInterviews with Peter Strong, CEO of COSBOA are available upon request.