bizthreads.net: Business Information for Entrepreneurs by an Entrepreneur

When to Say No to New Business

When you are new to your business, you could have a tough time getting new and continued business. In your desperation, you might also cater to clients that you would not normally do business with.

Here are some cases where you should say no to new business.

When Clients Don’t Respect You

There are clients that will be very rude to you - who may think that by giving you business, they own you or that you are obligated to them.

You should avoid this type of client at all costs. You have every right to expect that your clients give you the same respect that you give to them.

Clients Who Value Only Money

There are always customers who will be desperate to make sure that they get the lowest price possible – at your expense. They will regularly deduct some amount from your payments for frivolous reasons, and threaten to go to your competition.

Drop customers like these like a hot brick. They will end up costing your more money in the long run.

The Time Bandits

There may be some clients who remain confused, even after you have spent hours trying to explain a particular product or service to them.

Such clients will only end up wasting your time, and in the end might go to your competitor to purchase the product. Spend only a limited time with people like these - you may have to ignore them if they are still confused.

Clients Who Expect Freebies

There are some clients who will expect to pay only once - and then expect all future services to be free.

They will not pay you for any extra effort that you make. Customers like this should tactfully be avoided, since it will only result in a waste of your time and effort.

Turning down new business may be hard; but in some cases it is necessary to ensure that your business is profitable.

How to Turn Around a Floundering Business

Most new businesses flounder at some time or another. It is during these tough times that you need to gather your wits and dig deep to not only stop the downward slide, but also climb back up to the winner’s circle.

Below are some tips that will help you turn your floundering business around.

Identify the Disease

It is important to identify the problem that is plaguing your business in order to find a solution.

If it is higher prices that are driving clients away, then search for new vendors so that you can offer more competitive pricing. If it is lack of quality service, then you may need to retrain your staff to make improvements.

By ignoring your problems and wishing that they will go away, you will only be letting your business fall further into the hole.

Review All Expenses

Put an immediate stop to all your expenses and review the situation calmly.

Then, go ahead with only critical expenditures and defer all others until you recover financially.

Take Out a Temporary Loan

If you have identified the problem and are confident that you can turn the business around, then you can take out a temporary loan to help you ride out the crisis.

Remember that you will need to pay interest on that loan – so take out the smallest amount possible.

Learn From the Turnaround

As you claw your way back into the red, remember what led to the problem in the first place. Change your business strategy so that you do not fall in the same trap again - and have mental red flags in place to warn you if you start sliding toward a similar situation in the future.

While it is tough to negotiate a successful turnaround of your business, true grit and tenacity will ensure that it gets back on track as soon as possible.

How to Boost Morale by Arranging an Employee Picnic

Even if you are running a small business with very few employees, it is a good idea to arrange an employee picnic from time to time. It is a good way to release work-related stress and learn new things about your employees other than their work skills.

Here are some tips on how to arrange an employee picnic.

Find a Good Picnic Spot

You should locate a nice picnic spot not too far away from your offices. That way, your employees can enjoy more time having fun instead of spending more time traveling.

Arrange For Food and Drinks

You should arrange for food and drinks in advance – after all, that’s what having a picnic is all about!

It is not a good idea to have liquor available during the picnic; you might see a side of your employees which you would not have imagined exists.

Coordinate Fun and Games

You should also bring along some fun games that your employees will enjoy. Including a game of softball or soccer is also a good idea.

This will lighten up the atmosphere and will ensure that all your employees participate.

Do Not Discuss Business

Keep your employee picnic free of any office talk. You can also invite the spouses and children of your employees, which will give the picnic a more casual feel.

Take a First Aid Kit

If the picnic spot is a bit out of the way, then you should take a first aid kit along. This will be very useful, especially if children will be in attendance.

Make It a Regular Affair to Encourage Bonding

Make your employee picnic a regular affair so that your employees will look forward to it. This will help strengthen the bond between your employees.

Use employee picnics as a way of appreciating your employees and just chilling out. Your relationships with your employees will improve tremendously - and will be reflected in your employees’ performances.

5 Tips to Keep Your Small Business Safe from Fraud

When starting or running a small business, it is essential to keep an eye out for potential fraud, especially since you probably don’t have the resources to pay for the damage that could result.

Below are 5 tips that will help your small business stay safe.

1. Keep Your Check Books Locked. Do not empower any of your employees to sign checks. Keep your checkbooks and your bank statements under lock and key.

2. Do Not Hire Unknown Employees. Make it a point to hire new employees only after cross-checking their references. Get complete details of all your new employees including their photographs, addresses, and other personal information.

   Many small businesses go bust due to the inner cancer of dishonest employees. While watching your front end for dishonest clients, you also need to keep your back end covered.

3. Do A Thorough Check Before Offering Credit. Before setting credit terms with your clients, make sure their credit standing is acceptable – otherwise, you can kiss your products (as well as your incoming payments!) goodbye.

4. Stay Away From Get-Rich Schemes. Many dishonest dealers target small businesses by offering them various unbelievable offers, since they know that entrepreneurs are often desperate to make it to the big leagues.

   Stay away from any offer that seems too good to be true – because it probably is.

5. Communication And Alertness Is The Key. By keeping communication channels open, and by being alert with your employees, suppliers and clients, you will catch wind of potential fraud before it happens.

How to Motivate Your Employees Through a Points System

For your small business to succeed, you will need to continually motivate your employees, especially your key employees.

Your employees need to feel appreciated for the hard work and sweat that they put into ensuring that your business surges ahead. One of the most effective ways to motivate your employees is through a points system.

Here’s how it works.

Set Points for Different Tasks

You could first set up different points, that you would like to award to your employees according to the quality of their work or their duties.

This will eliminate the chances of any ill-will popping up later on. You can post the plan in a prominent place and mark the points down as your employees complete their given tasks on time.

Let Your Employees Observe the System

If your employees can see the system, then they will have a good idea of their position. You can even help employees that have lower points by finding out their problems and trying to solve them.

On the other hand, you should also offer words of encouragement to those employees who are top on the list in order to keep them motivated. Ensure that this internal competition is fair and healthy, so that it does not turn into internal combustion.

Reward the Top Employees

After a month or a quarter, you can give away rewards to your top-rated employees at a public function, which should be attended by all employees. This will provide satisfaction to your top employees and motivate others to work harder.

By posting the points, your employees will know their standing - and this will inspire those who are behind to try harder to catch up. It will also compel those on top to try even harder to maintain their lead.

Overall, it is an excellent system to keep your employees motivated and happy – and working hard to help your small business succeed.

How to Ensure Safe Product Shipping

If you are running a small business where you need to ship your products to your clients, then it is vital that your product reaches your clients intact. If not, your business’ reputation will suffer.

Here are some points to consider to ensure that the products that you ship reach your clients safely.

Pack Them As You Would Pack an Egg

It is important that you use proper packing materials, such as bubble wrap or recycled cardboard or even newspapers to ensure that products are not damaged during transit.

You can also use shrink-wrap to complete the final wrapping, so that products are not damaged if they somehow come in contact with water.

Use the Services of an Efficient Shipper

The transporter or courier that you use should be efficient and should have staff that is conversant in handling your products.

Inefficient staff is usually responsible for products reaching customers in a shabby or damaged state. Even if your shipper is marginally expensive, use their services if his deliveries are timely and safe.

If your shipper offers some type of guarantee, even better!

Ensure That You have Adequate Insurance

You should insure your products during transit and storage, so that you do not suffer financial losses if the product does not reach your customer, or arrives in a damaged condition.

This will ensure that you can at least send a replacement product quickly without worrying about losing money.

Get Feedback from Your Clients

You should call your clients and get their feedback regarding the promptness of delivery and the condition of your product at the client’s end. This will help you to change your packing methods or take your shipper to task if they are lacking in any area.

5 Email Management Tips for Your Small Business

If you want your business to keep up with the changing times, then it is essential that you have a regular interaction with your clients and your suppliers by email.

Here are 5 tips that can help you to manage your email effectively.

Keep a Regular Check on Your Email Account

You should check your email regularly. This will help you in retrieving all your received messages and acting on them immediately.

There is no point in advertising your email address and then ignoring the messages.

Create Different Folders

You can create different folders in your account so that you can attend to them according to their priority.

Keep separate folders for complaints, orders and inquiries, and attend to them in order of urgency. Avoid unwanted emails by utilizing a spam filter.

Have a Dedicated Time Slot for Answering Emails

If you are busy throughout the day, then keep 2 or 3 slots open during the day when you cannot be disturbed and sit down to answer to all your email.

This will help you to concentrate on replying, and you will avoid costly mistakes when quoting rates or delivery schedules. You can also send out emails to any prospective clients during this time.

Keep a Record of all Email

You should maintain a record of all your received and sent emails. This is because if a dispute should arise, you will still have all your messages on hand.

Send all unwanted emails to the trash to reduce clutter.

Keep a List of All Senders and Receivers

Keep the auto save function on so that your email addresses will be saved. This will help you in creating a directory of all your email contacts, and help you to identify email senders and recipients quickly.

Follow the above tips and keep the online aspect of your business as efficient as your offline one. Times are changing - and so should you.

5 Easy Steps to a Positive Cash Flow

Most small businesses fail due to poor financial planning – they run out of cash before the business even has a chance to get going. Therefore, it is essential for every small business to have a positive cash flow.

If you do not have adequate cash on hand when you need it the most, your business expansion plans will be restricted – and you may not have enough money to meet your day-to-day expenses.

1. Concentrate on Collections

You should concentrate on collecting payments from your clients. Any delay in collecting payments will only result in less cash available to settle your expenses.

2. Send Invoices Immediately

As soon as your products are sent to your clients, make sure that your invoices are made and sent out.

This will ensure that your accounts department can start processing your pending invoices in a timely manner.

3. Research Your Clients Thoroughly Before Giving Them Any Credit

Conduct thorough research on the credit worthiness of your clients before agreeing to supply products on credit.

That way, clients who have no intention of paying on time will not be able to take advantage of you.

4. Ask Your Suppliers to Increase Your Credit Period

If you have been paying your creditors or suppliers on time, every time, then you could negotiate a longer credit period with them.

This will leave more cash in your accounts for a longer period of time.

5. Look into Taking out a Short Term Loan or Invoice Factoring

These 2 measures can provide you with an immediate injection of cash into your business. However, be aware that you will need to pay interest on both these financial tools.

Use the above 5 tips to stay out of financial trouble - and keep an eye on your expenses to ensure that your money doesn’t simply evaporate. These tips will help you keep your business running successfully.

How to Leverage Public Speaking to Increase Your Business

In addition to increasing your confidence in dealing with customers, public speaking can also increase your business.

Read on and find out how public speaking can help you grow your small business.

You Will Be Branded As an Expert

Once you start public speaking at conferences or workshops, the people listening to you will soon look at you as an expert in your field. They will come to you for advice or help regarding the products or services in your field.

This will definitely build up your reputation, and result in an increase in your business.

Speaking Will Bring You into the Limelight

Your speeches will bring you into the limelight and will shift the focus of your future customers and suppliers to your small business. This will differentiate your small business from the many other businesses that could be present at that conference or workshop.

This means that after your speech, there will probably be many people approaching you for business instead of the other way around.

Speaking Will Help You to Understand Your Market

By interacting with your audience, you will get the right feedback regarding your market much faster than your competitors - and this will help you to put your marketing strategies into action quicker.

By observing the reactions of your audience, you will also be able to determine their likes and dislikes regarding any new products or services. This can help you to alter any strategies that you might have devised.

It Does Not Cost Anything

Except for the time factor, public speaking does not cost anything - and usually, your expenses will be taken care of by the organizers themselves.

Unlike other expensive advertising strategies that might drain your pocket, public speaking requires only your time for adequate preparation and presentation.

Try starting small by addressing a small seminar or workshop, and proceed to bigger speeches as your confidence increases.

5 Ways to Have a Productive Day in Your Small Business

Just putting in more than 10 to 12 hours everyday does not mean much if you are still unable to clear the backlog of your pending work.

Here are 5 tips to have a productive day in your small business:

1. Make a List of All the Overdue Things to Be Done

Make a list of all the pending and overdue items to be done first and devote a particular time of the day to do them.

It doesn’t matter if you have a fixed time to do them or not. But you should devote some time to take care of overdue work bit by bit everyday.

2. Organize Your Work in Different Folders

You should prioritize your work and put each item in different folders according to their priority level. Do not ignore work that is lower in your priority list.

You can also use an electronic organizer with an alarm system to remind you of your pending work and when it should be done.

3. Concentrate on the Job at Hand

Concentrate on the work at hand and do not leave it half-completed to start another project. This will lead to many half-completed jobs.

Complete all pending jobs within a fixed time period.

4. Learn To Delegate

You can offload some of your work to your staff.

However, you will definitely have to learn to monitor your employees on a regular basis - otherwise you will end up with even more confusion on your hands.

5. Keep Your Office Neat and Organized

You should keep your office neat and organized with an efficient office filing system. This will save a lot of time which otherwise would have been spent in searching for misplaced records and other items.

Use the above 5 tips to increase your productivity every day - and create a little spare time for you to relax and enjoy running your business.