Seattle Small Business Blog

Today’s economy is characterized by is a lot of insecurity in the workplace. People are becoming aware of the fact that job security is now really a thing of the past. Some have replaced job security with the idea of employment security. Employment security is a concept that states that if you concern yourself with being a valuable person and employee, someone that is of value to an employer, you may not be guaranteed to keep your job but you will most certainly be able to get another one. To a large extent this will probably hold up in many situations. However it still assumes an employer – employee relationship.

The original relationship between the employer and the employee will probably be around for a long time. However in the future it will not be as commonplace as it is today. People who used to work in a single department in a single function for most of their professional lives are now getting used to working more on a project by project basis. In most situations they are still on the same company’s payroll, however this is already starting to change.

Many employers are starting to outsource some of the work that was traditionally performed by employees to freelancers and small businesses. The disadvantages of having people on the payroll are starting to weigh in on their hiring decisions. With today’s high speed of technological change the necessary expertise to perform certain functions can literally change from year to year. In some areas it’s even more extreme. In many of these cases it’s simply easier and cheaper to hire different people on a limited time basis instead of continuously having one employee trying to keep up with all the different tricks of the trade.

This trend will have far reaching consequences for today’s workforce. Even the more experienced employees will have to stay sharp. They can’t sit on their laurels anymore because they will continuously have to prove their worth in new situations, more now than ever before.

Some consider this a huge threat to their career. The truth is, they probably should. Then again, some seem to be adapting to this phenomenon by looking at the opportunity that this brings them. More and more people today are starting their own part time businesses. Many do this while still working on their day job, either full- or part time. Scott Adams, author of the famous Dilbert comic, identifies this trend in his book “The Dilbert Future”. He claims this trend will become more prevalent in the years to come. Many of these newborn entrepreneurs start businesses that perform a function that was formerly performed by an employee. Sometimes people even come back to their original employer who has now become their customer.

Everybody knows running your own business can make you more money. There are a number of reasons for this. Of course you are probably more motivated and more results oriented than you would be working for someone else. You can also control your overhead better. Larger companies are not as efficient as they should be in many areas. Company policy sometimes drives up operating costs significantly. Certain companies hand out cell phones and laptops to all employees without taking proper notice of the need for such items. Also employees are less aware of many costs and business expenses. The bottom line is simply not a priority for them. If they had to pay for everything out of their own pocket this would probably be very different. The fact is: when you are in you’re own business you have to keep a very close eye on your bottom line or you’ll probably be out of business in no time.

This raises questions for many people who currently hold a job as well as the people they work for. Which functions will continue to be performed by employees and which jobs will be outsourced? It would be hard if not impossible to make an easy distinction at this point. Some companies may choose to retain employees for the same jobs that are outsourced by other companies. Each may have their reasons and who’s to say what’s right. It will depend on many different factors like: the importance of the job for that particular business, the ability to attract the right people and the company’s culture. Nobody could accurately predict what the situation will be ten to fifteen years from today.

Imagine yourself enjoying the warm autumn sunlight while listening to Paul Simon’s song, “50 Ways to Leave your Lover”.

Now, stretch your imagination just a bit and think about how many “Ways” you can come up with for saving and/or making more money in business…

“The problem is all inside your head
She said to me
The answer is easy
If you take it logically”

So, let’s look at the problem logically for a minute. Here are four basic ways you can increase your profits:

1. You can charge more for your products or services.
2. You can sell more of your products or services to your existing clients.
3. You can find additional clients.
4. You can find ways to cut back on your business expenses.

“Slip Out the Back, Jack” (Simple ways to save money):

So, if you’re on a shoestring budget (and who isn’t these days?), then obviously you need to do everything you can to save as much money as possible, and make as much money as possible, as quickly and easily as possible. Here are 10 simple ideas you can use:

1. Know your target market. Who are your “ideal” customers?
Where do they shop? What do they read? What solutions are they looking for that your business provides? The more you know about your customers, the better you’ll be able to target your promotions towards them, which will increase your bottom line two ways – it will save you spending money on advertising that doesn’t work, and it will increase your sales, because you’re offering your customers what they really want.

2. Get double duty out of any contact with your customers. If you sell products, put your contact information on everything –products, bags, invoices sales receipts. Make it easy for everyone to find you. Give away something free. If you have a Website (and if you don’t, then get one), give your customers something for giving you their contact information. Free Ebooks, reports, or software are all good choices (just make sure it’s relevant to your customers). Anytime you send your customers anything – a product, a newsletter, an invoice –include a coupon or information about your latest products or services. To save money on postage, if you have a brick and mortar store, put a copy of your latest newsletter or an informational flyer in your customer’s bag after each sale.

3. Reward your customers. Set up a reward program. Offer them a reward for anyone they refer who becomes a customer. Or give your customers a free gift when they spend $50 (or whatever amount makes sense in your business). When they’re eligible for the free gift, offer them an upgrade to something bigger or better for a few dollars more. Start a customer loyalty program. Provide “customer only” sales, or promotions. Let your customers earn points, or “magic money” that they can use to redeem your products or services.

4. Get ready for your close-up. When you’re brainstorming about creating a promotion or advertising campaign, don’t forget about your local cable TV channel. You may be pleasantly surprised by how low their rates actually are. Create your own television commercial or infomercial. Although you may not be ready for prime time, you can still target your ad to reach your customers.

5. Get involved in your community. Find a nonprofit organization that is doing work you believe in, and either publicly support their program, or be one of their sponsors for an upcoming event or fundraiser. Use the advertising spot to let people know about the fundraiser (and, incidentally, your business). You could put together an inexpensive ad campaign that will help those in need, increase your visibility and let your potential customers know that you’re supportive and aware of the needs of the community.

“Make a new plan, Stan” (Business Planning Basics):

6. Beef up your business plan. If you don’t have a business plan, make writing one a priority. Your business plan is more than just a way to interest investors. It’s a road map that will help you get from where you are now to where you want to be. That old saying, “If you fail to plan then you’re planning to fail” really is true when it comes to business.

“No need to be coy, Roy” (Ask your customers):

7. Get testimonials from your satisfied clients. But don’t stop there. What about creating your own television commercial that you can run in your store? (With a video camera and a little ingenuity, you could even create your own infomercial that shows customers how to use or get the most out of your products or services. If you’ve got a Website, put an audio testimonial on there. (And don’t forget to include pictures).

8. Speak up. Again, keeping in mind who your ultimate ideal customers are and what their most pressing problems are, write an article, offer a free seminar, or offer to be a speaker at local chamber of commerce or other organization or community meetings. Being perceived as an “expert” is a relatively easy and inexpensive way to get the word out about your business, and bring in more customers.

“Just hop on the bus, Gus” (Expand your business potential)

9. Create joint ventures. Even if your primary business is a brick and mortar one, you can still create a joint venture that will help you save money by sharing the costs for advertising. What about creating a special “sidewalk sale” with other business owners on your street or in your neighborhood? Or finding businesses with complementary products or services to yours, and creating a “package deal”? If your business is only online, look for ways you can partner with other businesses – maybe you could create solo ads and promote each other’s products or services in your mailing lists. There are a lot of ways you can save money and increase your client base if you’re willing to get creative.

“Just drop off the key, Lee” (Provide the key solutions)

10. Let your customers know you know what their problems are. It’s sad but true that your customers don’t care how good your products or services are. They only want to know two things: do you understand what their problems are; and can you solve them. Give your customers the “key” to their problems, and you’ll have evangelistic customers who come back again and again.

Most business owners subscribe to the thought that you “must spend money to make money”. This can be true, but you also must know exactly where that money is going and the results it brings.

Some ways that your business might waste money includes the following:

1. Manage your credit cards – If you have several cards, develop a computer program that will show you the exact balances, due dates, and the interest rate you are paying. Always be aware of other solicitations that save you money and possibly change your balances over to a new company. If you have any employee cards, see if you can set a limit on them. If not with the credit card company, make sure that the employees know their limits. Manage your credit cards wisely and never, ever miss a due date.

2. Develop an annual plan so you know where you will spend money. This helps you in several ways. The business person will be aware of what portion of the profits are going to advertising, towards incentives, towards accounting and other internal expenses, etc.

3. Do not over-purchase any products or services for a business. If you buy in bulk, the money is tied up and a place must be provided to keep the extras. That might be an unnecessary expense.

4. Developing an advertising budget and knowing just what resources to use is key to keeping money under control in a small business. You must advertise, but you also must get value for your money or you will soon be out of business. Keep a record of how much is spent, can you get payment terms, when is the most efficient time to advertise your particular product or service to get the most value for the dollar. Every dollar must be accounted for in advertising because the lifeline of your business depends on new and paying customers. Advertising is the way to get the word out to the community or the Internet.

5. A small business owner will sometimes be under self-induced stress to manage all aspects of the business. Sometimes, leaving the control and decisions to others that are qualified is the best way to manage the business. Releasing control may be hard to do sometimes, but in a lot of businesses, money can be wasted because the owner cannot possibly be as efficient as the person who has studied or is knowledgeable about a particular field. For instance, if a business owner does not know accounting, many mistakes in reporting income and taxes can be made. A qualified accountant can possibly save more than the cost of their services in reduced taxes.

Take a hard look around your business and do not let anything be set in stone if saving money is the goal. Challenge everything that will cost money and see what can be done to change the situation. Any money that is saved is money that can be put back into the business either in profits or in growth.

A business owner wants their business to be successful and will work hard to sustain growth. A business owner wants a way to continue making and growing money from a product or service that is interesting to them. After growing a business and being smart with cash flow, many business owners will sell their businesses only to start another business.

The reason is that business owners are independent types and challenges are rewarding when met and faced. Saving money through every day operations will help the business owner to meet their financial and emotional goals.

In today’s fast-paced world, time management is more important than ever. Here are ten tips to improve your management of your time.

1) Plan goals a week in advance. The key tasks you need to accomplish each week should be worked out in advance so that you know where you need to focus your energies in the coming week.

2) Make sure you have a clean and tidy desk. It has been proven that one of the biggest business time wasters is a desk that has less than 80% of its surface area free from clutter. If you maintain a clear and clutter free desk, you will maintain your productivity at its maximum.

3) Learn to use your email program’s filter system. Set up a priority email folder and have all of the emails from your most important clients and contacts routed to it automatically so you don’t have to wade through a mountain of email manually to get to them.

4) Program in some ‘me’ time into every day. No matter how busy you are you should always make time for yourself to do something entirely non-business related. Recharging your batteries in this way will help you to deal with your work commitments at maximum efficiency.

5) Tackle the task you dislike the most first. Putting this task to the bottom of your to-do list will lead to a lot of wasted time fretting about it. If you get this task out of the way as quickly as possible you will feel such relief that the other tasks on your list will be a breeze.

6) Don’t think you have to be totally accessible all of the time. When you have important tasks to complete try to make sure you switch off your cell phone and stop checking your emails for the duration. This will allow you to make optimal use of your time by focussing entirely on the single task at hand without time-wasting distractions.

7) Allow time in your day for the unexpected. If you give yourself a task list that takes up every second of your day, an unexpected event will throw a complete spanner in the works. But if you allow time for the unexpected, when it occurs you’ll be able to cope.

Have an agenda for each meeting. Make sure that you have a clear list of everything to be discussed at every meeting and that every attendee gets that agenda ahead of time. During the meeting make sure that you keep from becoming sidetracked so that you waste the minimum amount of time.

9) Get used to saying ‘no’. If you get asked to do something that doesn’t fit into your schedule then learn how to refuse to do it. This can be hard to do at first but will get easier when the benefits become apparent.

10) Try to reduce the number of meetings you attend to the absolute minimum. Excessive meetings can be the biggest business time wasters. Try to only attend essential meetings to avoid this drain on your time and energy.

Of course, there are many more time management techniques you can use but the above will be a good starting point to help you manage your time more effectively.