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Small Business Management Tips In this section you'll find practical tips on how you can improve how you manage yourself, your staff and your business TODAY! What I like about these articles is that they provide information which you can start to implement right away.
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7 Techniques to Supercharge your Creativity and Solve your
Problems
7 Techniques to Supercharge your Creativity and Solve your
Problems Do you ever encounter problems, challenges or obstacles in your business? If you answered 'no,' then you can stop reading and continue to rake in the fortune you must be making. For the rest of us, the answer of course is 'yes.' For the most troubling problems, the biggest challenge is in your inability to come up with new and innovative solutions. This is because when you try to solve a problem, you probably use the same approach every time ('let me sit here and think about it until I come up with something…'). The next time you try to solve a problem, try applying any (or all) of these approaches: 1) Be Obvious - Cances are, whatever your problem is, there is some conventional wisdom about how to solve it. Ask yourself why you are not following it, and evaluate for yourself whether your reasons are valid. Sometimes the easiest solution is the one right in front of us. 2) Be Contrarian - The opposite of being obvious, being contrarian means to consider doing the opposite of what conventional wisdom says. If the standard advice is to buy, think about selling. Instead of working more, work less. Note: This does not mean you should automatically DO what the opposite is; it just means to let your mind wander over the opposite to get it working in another direction. 3) Start Where you are - Sometimes we get so caught up in the long term goal that we lose sight of where we are. Think about your problem and what you might do right now to solve it. Usually this results in frustration because we don't have a fully formed solution. But just because an idea is not fully formed does not mean that it does not have some validity. Start with your current idea and watch as new ideas present themselves. 4) Chunk up - If you can't figure out how to achieve your goal, try looking at the bigger picture. If your goal is to earn $10,000 this month and you can't figure out how, think bigger - maybe you want $10K because you want to earn six figures this year. Then start to brainstorm ways of earning six figures. Don't get so caught up on your problem that you lose sight of the bigger picture. 5) Chunk down - The opposite of chunking up. Think in terms of smaller details. Continuing with the $10K example, if you can't think of how to earn $10,000 this month, can you think of ways to earn $333 per day? Maybe, but even if you can't it gets the mind working in a new way. 6) Take a REAL Break - Stop working on the problem for a bit and let your subconscious work on it. This requires two things. First, you need to actually give your mind a break and recharge. Switching from thinking about one problem to another will not do it. Get away from the problem an your work, even if for only five minutes. Second, make sure you are not dwelling on the problem. Taking a walk to get away from work is great, but if you continue to mull over the problem your not really giving your mind a break from it. 7) Move - Get the blood flowing! Exercise, walk, run, stretch, whatever. Be it from blood flow, endorphins, or a change in focus, physical movement enhances creativity. I do some of my best thinking while shooting baskets. Find out what works for you and do it. There are many different techniques you can use to solve a problem. Try the few above to start, and then come up with your own. Use them well, and watch yourself create new and exciting solutions faster than ever. About the Author: Back to the top of Small Business Management
Six Reasons to K.I.S.S.
“Very often, people confuse simple with
simplistic. The nuance is lost on most.” We’ve all heard THIS acronym, K.I.S.S. – Keep it Simple, Stupid! While I prefer, Keep it Splendidly Simple; the point is the same. Make it simple! All of us have heard the phrase. All of us nervously laugh and knowingly nod our heads when we hear it. All too often we don’t follow this sage advice. We’ve all heard the joke that a consultant is someone who will tell you about how to design, build and sell a watch, when all you wanted to know was the time. We are stereotyped often as people who like to make things more complicated, if for no other reason, than to justify our fee. While I don’t completely agree with the stereotype, as is usually true with these things, it contains a grain of truth. I believe we can serve both ourselves and our clients better if we remember to keep our proposals, project plans, reports and other services more elegant (defined in my dictionary as, “ingeniously simple and pleasing, or excellent”), or simple. Here are six reasons why we should strive to make simple one of the criteria for our work products: 1. Simple reduces errors. The more complex something becomes, the easier it is to make mistakes. Want your client to implement your 18-step model? How likely will they be able to successfully navigate each step without errors or frustration? Not very likely. Which is of the following is more likely to succeed? A nine-page booklet of steps to follow in using the new software, or a concise job aid, that gives 80% of the users all the detail they’ll ever need, in a more usable format? (Even if you do need to provide the in-depth handbook, perhaps you need to write the job aid too!) When we design simple, elegant solutions, the error rate drops. 2. Simple is motivating. Simple plans give people confidence that they can succeed. When people understand the four key points in your presentation, they are more motivated to apply them, because they feel like they have a fighting chance of success. 3. Simple is more effective. People are bright, but people have many things on their mind. When presenting findings to clients, we often have a 100 page report and a one page executive summary. The one page is probably too high an overview to lead to effective decisions, and how many people will actually read your 100 page report? (When was the last time you read a 100 page report?). What clients need from us is the ability not only to analyze, or come up with the reams of data, but also the ability to synthesize, or draw together the key elements in new and all encompassing ways. A simpler report can lead us to that. The simpler, five-pager, will force you to synthesize and provide the client with something much more valuable than the briefcase breaker. 4. Simple saves time. This one is easy. It is common sense. When we make things simpler, we save time for the client (and ourselves in the long run). Enough said. 5. Simple brings focus. Having one clear goal is easier for people to follow, than knowing the Nine Strategic Initiatives of the First Half of the Year. One is motivating, the other a hopeless clutter for the mind. I recently read, “When everything is important, nothing is.”. It hit home and helped my perspective about keeping it simple. If we want to stay focused, we have to keep it simple. 6. Simple is easier to sell. Being simple in our approach does not mean “quick and dirty”, or incomplete. Remember that simple and elegant can be synonyms. Would you rather buy an elegant, simple approach, or something very detailed and elaborate? Think about your answer before you design your next consulting engagement. A short comment in a recent Leadership Team meeting I was facilitating nudged me to write this. They were discussing a vision for their organization, and someone was talking about keeping things simple. They stated it as, “Sealed with a KISS”. I’ve decided to use that a criteria for all of our client work, and for internal efforts as well (even my personal projects!). Hopefully this piece has given you pause to think about this concept, and accept my premise. My next article will focus on how to keep or make things simpler, but including those ideas now might clutter your mind. Until then, try “sealing things with a KISS”. ©2001, Kevin Eikenberry, All Rights Reserved.
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Tips
In Management from the Movie "Shrek" - by Erifili Davis If you have kids (or even if you haven't!) chances are you've had the pleasure of watching the excellent animated feature "Shrek". Thanks to my son, I've seen it so many times, I can recite it word for word. But I digress... Watching "Shrek" this afternoon for the gazillionth time, I started to think, "Hmmm, this Lord Farquaad has an interesting management style". And, thinking about it a little more, I decided that there is a lot we can learn about small business management from Farquaad. Learn to Delegate Farquaad, although just a lowly "Lord", is the king of delegation. From torturing the Gingerbread Man, to rescuing the Princess from the fire breathing dragon to rounding up guests for the wedding, he understands the value of delegating jobs to those that are better skilled in doing them, leaving him with the time to... well, do whatever it is Lords do best! When starting out, most small business owners need to do every job themselves usually from financial necessity. Often, as the business is growing, small business owners find themselves still trying to run around doing everything even if they have employed others to do those jobs. Take Farquaad's example. After hiring people you trust (otherwise, why would you hire them, right?) train them to do the job and trust them to do it right! When Things Don't Go to Plan - Make Up a New One! Farquaad likes to plan - which is important - but, when an opportunity presents itself, he grabs it and runs with it even if it means changing the plan. Take the tournament scene when knights are meant to duel for the "honour" of risking their lives to save the princess. Shrek crashes the tournament so Farquaad declares a new plan - whoever defeats the ogre (i.e., Shrek) wins. Alas, Shrek defeats all the knights and not the other way around. So what does Lord Farquaad do - he makes another new plan! He negotiates with Shrek to have Shrek save the princess instead. Many small businesses don't plan at all, which is a big mistake - how do you know how you're travelling if you have nothing to compare your performance against. But if you have a plan, and you're business isn't measuring up, don't be afraid to review the situation - and create a new plan! Don't Be a Tyrant One of Farquaad's failings as a manager is his tyrannical attitude and it proves to be his undoing. Lets face it, most tyrants throughout history meet a sticky end. Although you might not be swollowed by a dragon (see the film - you'll understand!) if you go through the day being a grump and a grouch, it only makes life harder for you and those around you. Yes, being a Lord - or a small business owner - can be stressful. A smile and a friendly attitude can make life easier as people will be more likely to see thing your way if you approach them with the right attitude. And it makes life a lot more pleasant for everyone, especially you! -------------------------------------------------------------- About the Author: Erifili Davis is owner / webmaster of FreeTipsPlus.com (http://www.FreeTipsPlus.com) and I-Fusion Information Solutions (http://www.ifusionnet.com). FreeTipsPlus.com offers a free weekly newsletter with business and computer tips + more. To subscribe just send a blank e-mail to freetipsplus@freeautobot.com and you'll also receive 2 free e-books on creative uses for Microsoft Word. Back to the top of Small Business Management
by Napoleon Hill
I will sign my name to this formula, commit it to memory, and repeat it aloud once a day, with full FAITH that it will gradually influence my THOUGHTS and ACTIONS so that I will become a self-reliant, and successful person. Back to the top of Small Business Management 11 Tips for Writing a Business Proposal by June Campbell Business in the new millennium means fierce competition, aggressive marketing and strategic alliances. The extent to which a business succeeds or fails often depends upon that business's ability to be awarded contracts or to attract other businesses into Joint Ventures or strategic alliances. To accomplish either one usually requires two key items: good ideas and the ability to present those good ideas in a superbly developed business proposal. Business proposals are developed for one of two possible reasons. (1) A business entity has called for tenders or has invited you to submit a RFP (Request for Proposal). In this case, your goal is to be "short listed," meaning that you will be one of the three or four bidders who is awarded an interview. Your proposal must stand among possibly dozens of submissions. (2) You have an idea, concept or project that you want to propose to someone with the goal of gaining support, funding or an alliance. In this case, there is no competitive bidding process. However, your proposal must make a favorable impression and must explain all aspects of your proposed concept clearly and quickly. A document that is vaguely written, difficult to understand or that presents more questions than answers will likely be discarded promptly. The following eleven tips are guidelines that I keep in mind when I develop a business proposal for a client of my writing service: 1. Clarity Before you begin to write the proposal, summarize the concept in 2-3 sentences, then show it to a lay person and check for understanding. If they don't grasp the basic idea, rewrite until they do. Until you can do this, you are not ready to start writing the proposal. How many times have you received a document that you had to read repeatedly before you comprehended the meaning? When this happens, it may be because your comprehension skills are under- developed, but it's more likely that the writer substituted clarity of thought and good document structure with sloppy thinking, wordy, rambling explanations, vague descriptions and heavy reliance on buzzwords and jargon. It's worth saying again: If you can't summarize it in 2-3 sentences, you are not ready to start writing. 2. Strive to communicate, not to impress If you have a good idea and you communicate that idea clearly and effectively, the recipients will be impressed. If you try to baffle them with your brilliance, you'll lose ground. 3. Error Free Your proposal will be competing with proposals prepared by professional writers, graphic designers and desktop publishers. You may not have those resources at your disposal, but you can be fastidious about checking for typing, spelling and grammatical errors. Spell checkers can only go so far; the rest is up to you. Ask someone else to check your document for errors before you submit it, or wait a few days before rereading it. If you have worked on a document intensely, you will "learn" to interpret errors as being correct. It takes a fresh eye to spot the typos. 4. Print and Bind Print your document on good quality, heavy-bond paper, using either a laser printer or a good-quality bubble jet. Take it to an office service for backing and binding. For less than $10, you can produce a nicely done, professionally presented package. 5. Layout When laying out your document, format it so the body of the text appears in the right two-thirds of the page. The one-third of the page to the left contains titles and white space. The white space to the left allows the reader to make notes. This sounds like a trivial matter, but it elicits positive reactions from recipients. 6. Visual Elements Include visual elements sporadically throughout your document. Logos, clip art, graphs, charts, tables and other elements greatly enhance the visual appeal of your document and make it easier for many people to read and comprehend. Pages of pure text are tiring to the eye and a challenge to the attention span. Additionally, many people are visually oriented, meaning the preferred method of learning is through imagery and not text. 7. Title Page Begin with a Title Page that includes images (graphics, pictures, etc.), the name of the proposal recipient, the name of the project, your company name and address, the date, and your copyright symbol. 8. Be Politically Correct Whether you support political correctness or whether you don't, the issue here is to avoid offending the people who will receive your proposal document. Avoid any language that can be construed as offensive to any group of people - including women, men, persons with disabilities, persons belonging to visible minorities, senior citizens, and so on. If you're not certain of correct terminology, consult with someone knowledgeable before submitting your proposal. 9. Write for Global Audiences Emerging technologies, immigration policies and agreements like NAFTA have produced a global marketplace. Documents nowadays should be written with the understanding that they may be evaluated by persons living in other countries or by persons for whom English is a second language. Even if you are submitting your proposal to a local business, they may well have joint ventures with international companies, and these companies may be asked to peruse your document. Unless your proposal is local to a specific geographic area, avoid references that would not be understood by persons living in other areas (or explain these references if you must use them). Also, avoid the use of slang or expressions from pop culture. When persons from other cultures study the English language, they are taught to speak formal, correct English. They are often unfamiliar with the use of slang terms. 10. Jargon Free Every industry has its own particular "language" - words, terms and expressions that are common to that industry but foreign to people from other industries. Avoid the use of jargon, or if you must use it, explain it. For example, expressions like "branding," "turnkey solution," "E-commerce" are not necessarily understood by everyone who is doing business. Also, remember that your proposal may go to a committee that is comprised of people from various walks of life. Make sure they understand what you are talking about. 11. Technology What was just said about jargon goes double for technology. If your proposed project involves the use of technologies, be very careful with your explanation. The persons reading the document may have little or no technological background. Therefore, in the body of the proposal, it's usually recommended that you explain your technology in terms of what it will do - i.e. "A data base that members can use to search for information about your products." There is a place for detailed information about the technology that you are proposing - and that spot is the appendix. In many cases, a non-technically oriented business will engage a technology consultant to review your proposed technology. This person can use the detailed explanations that you include in the appendix while other readers will be able understand the proposal itself. Keep these guidelines in mind and you will be off to a good start with your next business proposal! About the Author: June Campbell is the Owner / Webmaster of Nightcats Multimedia Productions. Learn How to Write Business Plans, Business Proposals, JV Contracts, More! No-cost ebook "Beginners Guide to Ecommerce". Business Writing by Nightcats Multimedia Productions - visit www.nightcats.com Back to the top of Small Business Management
Did you know that the average executive wastes 150 hours per year looking for documents? One in 20 documents is lost and never recovered. No wonder paper overload is the biggest frustration of busy people! There are several quick ways you can cut the paper load in your life, such as eliminating junk mail and faxes, creating a workable filing system, and filing on a routine basis. by Debbie Williams, copyright 1999 Just Say No! Eliminate incoming junk mail and faxes by removing your name from mailing lists. If you never receive junk mail, you won't have to process it. Junk email, or spam, can become a thing of the past if you set up your email program to automatically delete incoming junk mails. (Check the user's manual or HELP function on your software for this feature.) Sort it Out. Create filters for your computer's in-box to sort messages. You can set up automatic files for: Delete, Read Later, and Take Action. If you want to separate email by subject or name, folders can be created for clients and territories. This reduces time spent each day processing your virtual mail. Choose a spot in your home or office to process your regular mail each day, and make it a natural part of your routine. Sorting by category reduces your processing time by more than half, and it's the most important step in organizing. Common categories include: junk mail, magazines, bills, and reminders. Now turn these into your own categories for processing: Throw Away, Pay, File, Follow Up. Colour My World. Colour-coding email messages as they arrive in your mailbox helps you prioritise, and is a big time-saver. It flags messages from important people, and facilitates sorting and organizing. Purchase coloured folders for your mail centre. As mail is sorted by category, place it in the appropriately labelled folder for action. Go Vertical. Store folders and reading materials vertically in racks rather than flat in a box or basket. Shuffling through papers is a big time waster, and many important items are hidden from view. Magazine holders, stair-step desk organizers, and wall-mounted bins are all effective tools for paper storage. They not only contain the clutter, but create more desk or counter space in your mail centre. Stop incoming junk mail before it starts, create a time and space to sort and file your papers, and prove efficient storage for items requiring action. You will cut the paper load in your life, making room for more important things in your life, such as family and self-development. Stick to your new routine for at least two weeks to make sure it is the system for you; if it doesn't work then modify it. If you continue this on a regular basis, same time and same channel, you'll find that you've practically eliminated input overload in your life. About the Author: Debbie Williams is a professional organizer and founder of OrganizedU, which provides training and support for professional organizers. Learn how to reduce clutter and simplify your life at http://www.organizedu.com Back to the top of Small Business Management Is Your Business Small? Nobody Has To Know! You may be operating your business as a solo operator in your garage or bedroom; but guess what -- no one needs to know! Image plays a huge part in business, and to be perceived as a small home-based business entity can sometimes work against you. Here are tips to make your small business look big. By Isabel M Isidro You may be operating your business as a solo operator in your garage or bedroom; but guess what -- no one needs to know! Even if your capital is less than $1,000 that you borrowed from your grandparents, you do not need to shout to the world how undercapitalised and how small your operations are. Sure, you hate to pretend to be somebody else! But you also have to realize that image plays a huge part in business. To be perceived as a small business entity can sometimes work against you. Let’s face it: some potential clients will refuse to touch you with a ten-foot pole if they consider you too small. Whether you like it or not, other people sometimes equate being small with inability to deliver, lack of credibility and a tremendous business risk. If you’d like the outside world and business community to view you with larger lenses, you can try these tactics:
Isabel M Isidro is Managing Editor of Power HomeBiz Guides. For a step-by-step guide to starting a business, order the CD-Rom "Power Home Business Ideas" from PowerHomeBiz.com at http://www.powerhomebiz.com/Index/powercd.htm Back to the top of Small Business Management Do You Know How Your Business is Doing? Take These Tests! Every entrepreneur wants his or her business to be successful. But what is success, and how will you know if you are successful? Do you need to win the Small Business Person of the Year award to know that you are victorious in your entrepreneurial quest? Take these eight tests to help you evaluate where you and your business stand.by Isabel M Isidro Every entrepreneur wants his or her business to be successful. But how do you know if your business has reached this threshold called success?As you spend your energy, time, resources and talent building your business, there will be moments when you question yourself. How am I doing? Am I making it? Am I earning money from it? Is all the trouble worth it? Am I still enjoying what I am doing, or has the business become a big burden? As a founder, you have to always question yourself and the value of the ideas that you have. Despite all your best efforts, you may feel that your business is not moving in the direction you hope it will be. Self-assessment and benchmarking should be part of your daily management process. Feedback and realistic self-appraisals using various tools will help you build a stronger business and maintain your positive attitude towards your business. By knowing what and how you are performing, you will be able to know how to move on. Having this kind of information on your hands will help you, for example, ascertain whether your business will qualify for a bank loan, or if you can now afford to buy that ultra-thin laptop you saw on television. There are several tests to help you determine how well (or how bad) your business is doing. However, you need to be careful in applying these tools as circumstances differ. A 2-month old business should not be evaluated with standards suitable for a business that has been in existence for five years. Are you achieving your goals? Every now and then, you need to gauge how your business is performing vis-à-vis your personal goals. Check with your business plan (this is one reason why you need to have one!) if you are accomplishing what you have set out to do. Have you launched your product as scheduled? Were you able to get investors on board as you planned? You also need to compare the performance of your business with the industry as a whole, as well as your close competitors. How visible is your business relative to your competitor? If you are running an online business, for example, how many unique visitors are you getting compared to your nearest competitor? What is your market share? Are you growing as fast as your industry? Your business does not operate in a vacuum, and you need to be responsive to what is happening around you. Are you paying your bills? A clear indication of how well your business is doing is whether you are able to cover all your business expenses. If you are, then you are definitely on the right track. But if you are not, then you need to examine ways you can improve your operation. Maybe you need to be more aggressive in collecting your receivables, or you need to cut down on your inventory and costs. Maybe you need to get out more and spread the word out about your business. Or maybe (and we hope not), you selected the wrong business and it is time for you to pack your bags. Do not expect, though, that your income for your first six months of operation will allow you that much-coveted Jaguar sports car (unless you are really, really lucky). Be patient and nurture your business well. If you play your cards right, your business may be able to provide you with a comfortable lifestyle, vacations, nights out, insurance premiums, and even a retirement plan. Are you making more now than you were as an employee? You left your job for the financial nirvana that you thought opening your own business would give you. But are you earning more now as an entrepreneur, compared to the salary and wages you would have received had you remained as an employee? Also check out the current going-rate in the job market for someone of your qualifications and experience. If you will earn more as an employee rather than as a business person working 15 hours day, seven day weeks, then maybe it is time to reconsider your decision particularly if your long-term prospects are as bleak as your present situation. If you are an investor in your business, will you earn money? Entrepreneurs operate their business with their all hearts and passion, that sometimes they fail to see its misgivings and weaknesses. Remove yourself in your position right now, and see yourself as an objective investor may view your business. Then ask yourself, "If I put my money in this business, will it give me a hearty return for my investments? Are the prospects bright for this business? Is there sufficient demand for their products or service? Does this business have a tremendous growth potential?" If you think that the business will yield less than the prevailing rates, you might want to consider putting your money in an alternative investment and finding a job. What do your financial reports say? The best indicator for the state of health of a business is its financial numbers. Simple financial ratio analysis can tell you the financial strengths and weaknesses of your business, as well as point you to appropriate action when necessary. There are several rules of thumb for recognizing a healthy business.
There are other financial ratio analyses that will be of great help to you in managing your financial situation. Remember, though, that while financial analyses can illuminate you about your business; it cannot tell you everything about your financial performance. How are your sales doing? Your ability to get business and move your inventory are your best assurance that you have a future in your business. Study your sales numbers thoroughly, and track how it is growing relative to the previous year and the previous month. While some products are seasonal, you need to stop and rethink your strategy is you are continuously seeing a decline in your sales. More so if sales of your competitors and your total industry are growing, while yours are plummeting down. Your sales figures can tell you whether your marketing efforts are effective, your distribution mechanism are working well, and whether a strong demand for your products still exist. At the very least, your sales and earnings must be keeping up with the inflation rate. How do you compare relative to others? While you may think of your business as unique and different, you also need to know how you stack up compared to your competitors. Knowing as much information about your industry and your competitors will provide you with valuable lessons you can apply to your business. Are there industry-wide standards that you need to comply? Are there opportunities that your competitors are not tapping? How can you improve your performance relative to your nearest competitor? Are you making profits? Let's face it, making money is what being in business is about. Look closely at your bottom line, and determine if it commensurates the pressure, headache and long hours you put in your business. Are you losing money or just breaking even? When can your business profitable? Do you have the resources to operate until your business gets out of the red ink? You also need to look closely at your individual products and service categories. What product categories or who among your clients are bringing you the most money, and how much time do you give them? You may be giving most of your time to your marginally profitable products. This information can help you weed out unprofitable products or clients, and focus your resources on those that bring you the most money. You might be better off employed by someone else and secure in the knowledge of a regular and steady pay cheque, free time and 8-hour workdays. Note, however, that businesses often show a loss, or minimal profit during its first year, but may show great improvement during the second and third year as the business matures. How do you feel about your business? Perhaps the best indicator of all is how do you feel about your business. Is your business giving you what you were looking for? In addition to financial considerations, many entrepreneurs start their own businesses for a variety of personal goals -- perhaps greater time with your family, higher income, more leisure time, and improved quality of life. Or is your business failing to fulfil the personal goals you have when you started? Do you still have the passion with what you do, or are you simply burnt out that you want out as soon as possible? In the final analysis, only you can tell if the business is still worth it. You can only succeed in a venture that you are most happy with. About the Author: Isabel M Isidro is Managing Editor of Power HomeBiz Guides. For a step-by-step guide to starting a business, order the CD-Rom "Power Home Business Ideas" from PowerHomeBiz.com at http://www.powerhomebiz.com/Index/powercd.htm Back to the top of Small Business Management
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