When writing your strategic plan, it is imperative that your financials are analysis ready. Bookkeepers and accountants often code items under an umbrella such as “commission income” and “dues and subscriptions”, which is fine for tax purposes, but not for budget and planning purposes.

To ensure profitability, it is imperative for business owners to know the details of their expenses and the income that offsets it. To do this, I recommend using subaccounts. The practice of assigning items to subaccounts clearly identifies areas that are thriving and areas that are failing, and provides an easy outline for future business-building strategies.

For example, if you are in insurance broker you should be more concerned about the type of policies you sold than what company wrote your commission check. Yes, listing the company in your chart of accounts is important, but I would take it a step further and add a subaccount to identify the exact type of policy you are being paid for, such as: Health, Life, Disability or P&C. Another example would be for a consultant. A consultant wants to know what services are selling, so they can match the trend when marketing and writing proposals.

On the expense side of your P & L, if you are spending $1500 a year on various networking groups, it is important that you match the incoming revenue generated by those relationships, so you may effectively decide in following years which of those commitments are justifiable.

The bottom line… know what is coming in and going out and the relationship between the two. The more detail you have, the better. At the end of the day, your financials are the story of your business and knowing that story inside and out is essential to growth.

As a follow up to “Are You Connected to Your Staff”, one of the number one complaints I hear when interviewing employees, especially those in small businesses, is that their employers impose rules they themselves do not follow.  To the staff, this behavior is not only belittling, but also confusing. 

This reminds me of when I was a child. My mother would tell me no when I asked for something she did not want me to have, but then would proceed with enjoying the very thing I asked for. Granted, this may have been necessary for my well-being (think adult beverages, or walking across the street without holding my dad’s hand), but the whole “do as I say, not as I do” never sat well with me. Unfortunately, being a child may have inherently taken away my aptitude for arguing equal rights, but in an employer/employee relationship, this is not the case. Employers following the mantra “do as I say, not as I do” are not exhibiting leadership behavior, rather they are placing what seems to be unreasonable expectations on perfectly capable, intelligent, viable adults.

Yes, owners might be able to set their own schedule and call the shots; however, this does not mean it is feasible to impose rules they are personally unwilling to follow. In fact, this behavior could very well lead to broken interoffice relations that will inevitably affect the bottom line.

To nurture a productive and harmonious office culture, it is imperative that a leader emulates the behaviors he or she expects from their staff. In fact, I cannot stress enough the importance of a leader “leading by example”. This means – if you have a dress code, follow it. If you expect people to respect your needs, respect theirs, and without a doubt, if you have an expectation that requires a certain level of commitment, equally commit.

This does not mean you are not free to exercise the benefits of being a leader, but it is important to recognize that as a leader you are tasked with setting an example.  A leader, by definition, is someone who guides and teaches. To truly embrace being a guide and teacher, showing you are capable of following the rules creates an environment of respect and pretty much anything is possible when its based on respect.

My job, by nature, is to fix what is broken, or improve what is not productive.  Oddly enough, when I am hired to fix or improve business operations, my assessments often do not find that a company’s procedures or general operations are the main issue – what I do find, however, is much more damaging – I find a complete disconnect between the owners, managers and staff.

When the leadership is not connecting properly with their staff, everything suffers – moral, commitment, processes, customer service and revenue. Even if a company has textbook operations, if the staff is not connected to the leadership, the company will inevitably fail.

I cannot tell you how often I hear small business owners say… “I am not a manger”, “I do not want to be a manager”, or manager’s say, “I am doing everything I can, but the staff just doesn’t care”.  Unfortunately, these are not only excuses for failing to be a leader; they are going to sink your ship!

Staff IS your organization – they are the face and the power that can make your organization soar.  If you do not nurture them, teach them, admire them and lead them they are not going to produce the results you desire. 

If you are a business owner or manager, you need to create ways to connect with your staff.  Here are some ideas:

(1)     Be honest.  If you feel your staff is not meeting the requirements of the job, talk “with” them – never “to” them.  Share with them your concerns and inquire as to why they are struggling.  Often times you will find it was merely a misunderstanding – the expectation was unclear, training was inconsistent, or perhaps your employee has far too much on their plate.

(2)     Job descriptions.  When hiring an employee it is imperative to have their responsibilities written, in detail, on paper.  This document will serve as their daily road map and it will manage their day when you are unable.  Additionally, if you are over-taxing them, it serves as a reminder to you.  It will detail what is expected of them and ensure you are not being overly demanding.  Sometimes, as owners and managers we get lost in a mountain of things to do and forget that our staff takes on more than we know, or should expect.

(3)     Employee appreciation.  It is important to not only recognize and appreciate your employee’s efforts, it is important to reward.  Setting up a profit-sharing plan, bonus plan, or giving small gifts for meeting milestones goes a long way in making your staff feel special.  This is a small investment compared to the increase in revenue you will see when your staff is productive and your clients are happy.

Always remember… this world is full of all kinds of people, and in the world of Entrepreneurship, you have leaders and you have supporters.  If you did not, everyone would have a single person enterprise without the support of staff.  This is good news in that, as nature always does, it provides a balance.  Nature does its job to provide; now it is up to you to make proper use of this gift.  Help your staff succeed, and you will succeed in kind.

When launching a business, the skill of effectively managing your time is crucial. For most, managing client needs, networking, and tending to your business fills more hours in a single day than what you traditionally spent working for someone else. Why? It is simple. When working for someone else, your time is dedicated to fulfilling a handful of specific tasks in a timeframe dictated by your employer. As a business owner, you are dedicated to fulfilling numerous tasks associated with running your business in a timeframe dictated by your clients. This means you have to make time for your clients’ needs, your business-building needs, and your back-office needs.

Initially, the thought process when working for yourself is that your time is yours – you can work when you want, go to the gym when you want, take a day off when you want, and call in sick whenever you want, right? Well, not entirely – not if you are running your business right. Do not feel bad – most of us believe we can leave the workweek ritual happily behind, but many of us find out the hard way that there is not enough hours in the day to work and play when we are starting out.

Yesterday, I was in a meeting when a brand new entrepreneur (only 5 days retired from 32 years in corporate America) cracked a joke about how early the meeting was and how he thought he would be able to sleep in now that he is self-employed. Many of us had a good chuckle because the reality is – self-employment takes no less commitment than corporate employment. To be successful you have to work time-and–a-half without overtime pay and sometimes put in weekend and holiday hours. And, most of the time, you have to work a full day, every day – only taking vacations if and when your business can survive your absence. If this sounds painfully similar to corporate America, you are right – it is.

My point is this. Your business can only be as successful as you make it. This means working that dreaded workweek – sometimes more, sometimes less to ensure you build a proper foundation. But, remember this… the beauty of being self-employed does not necessarily come in the form of free time, rather it comes with the realization that you are providing a quality service that is needed and your accomplishments and rewards were born from YOUR vision and dedication. 

So… though your time is not necessarily yours to always spend in the manner of your choosing, it does grant you the flexibility of doing what you love – your way. At the end of the day you are in control of your success, and, frankly, what is more awesome than that?!  If I have to choose between working a potentially 40+-hour workweek for someone else, or a 40+-hour workweek for the benefit of myself and my family, I will always choose the latter. You?

Working from home can be difficult and challenging.  I know that I find my mind wanders and the kitchen calls my name if I am not prepared, so I have incorporated a few things to alter my thinking in order to make my time at the home office productive. 

1)       Get ready.  Working in your pj’s does not put you in a working frame of mind.  In the same way that dressing for success applies to working outside of the home – dressing for productivity applies in general.  You do not wear flip-flops to the gym to run a treadmill, so why would you wear pj’s to your home office if you are working? 

2)       Bring snacks and beverages to your home office, so you are not compelled to make kitchen visits.  The kitchen is likely near the living room where television and your favorite movie can distract – not to mention access to unlimited snack supplies, which is not good for your middle. 

3)       Set a schedule.  Tell yourself you are working from this time to this time without interruption.  Shut down all sites that are not involved in your task, including facebook, twitter, and email.  It can all be reopened in a moment if the need arises.

4)       When taking a break, go outside and get some fresh air.  Being locked in your home office all day can limit your creativity and productivity.  Take a quick 10-minute walk around the block – you will be glad you did, especially in this beautiful AZ weather.

 5)       Finally, when your time is up – close up shop!  Do not work all day and night.  Just because your office is at home, does not mean your home is your office!

Do you know if you have a sustainable business idea?  Is your idea something you deeply desire to do? Is it able to provide a suitable income?  If so, in a timeframe you can live with? And, does it fulfill your personal goals? 

These questions are key in developing your strategy for launching your business – regardless if it is a new or existing.  Over time, businesses evolve and a business owner must understand his or her purpose and evolve with it.  Unfortunately, launching or evolving cannot be done on the fly if you want to be successful.  You need to put considerable thought, time and care into developing your plans, or you may find yourself focusing on too many things and accomplishing nothing at all.

I remind all of my clients that there are certain things a business of any size cannot do without… a business plan for a new business or a strategic plan for an existing business, and a solid understanding of your current financials and projections.

These must have’s will outline the goals of your business by identifying how you plan to achieve those goals, the financial resources you have to do it, and the revenue you need to sustain it.  Additionally, you will be able to identify intellectual property that may need protection from competitors, or imbalances or inconsistencies that need to be remedied prior to launching or reorganizing your business. 

Do not get my wrong, you can do all these things without documentation, but you may be putting yourself at risk of spreading yourself too thin, purchasing equipment that your company cannot afford, or expanding when your business does not have the foundation to support it. 

Do not turn your long-term career into a short-term hobby.

As a business owner, do you ever feel your ability to be productive is hindered? Do you find it difficult to get it all done in a reasonable amount of time? Do you forget items on your To-Do list? Do you find yourself overwhelmed by not meeting your daily/weekly/monthly goals?

What if I told you it is as simple as organizing your thoughts on paper. That this simple list can increase productivity and define your immediate and long-term needs. Would you believe me? You should, because it is that simple.

Does your To-Do list consist of items that needed to be done two weeks ago? Does it include items that you continually ignore because you do not have the tools needed to get it done or the time to figure out how? Does it consist of items that are time-consuming, yet you are unable to find a block of time to complete it?

If you identify a repetitive action that continues to fall through the cracks, you have identified a productivity issue. Perhaps your reasons are justifiable, but is it possible to run a successful, sustainable business on justifiable, but unaccomplished tasks? The answer is… no.

By making a list of everything you need to accomplish on a given day, week, or month you are off to a good start. To increase productivity, further identify what is needed to accomplish the task, i.e. what tools and knowledge are needed to complete the task; how time-consuming is the task; where does it stand on the priority list; and any expected upkeep that may follow completion of the task. Finally, list all of the commitments you have that will take you away from accomplishing your tasks.

Through this list, you will be able to identify several items of importance:

1. Are you over-promising? Do you have a working knowledge of what it takes to complete the task? Have you identified the time, costs and resources you need before taking on an assignment, so you can adequately provide an appropriate estimation of completion?

2. Are you providing services that you are not yet equipped to provide – meaning are you fully educated on the subject and do you have the proper tools in place, or are you having to spend significant time researching? Would you be better off out-sourcing to a business partner?

3. Are you managing your time effectively? Are you possibly spending too much time on unproductive tasks, such as: twittering, facebooking, in-person networking, e-mails, etc that are not imperative to the task or beneficial to your business overall? Clients are your biggest asset. No amount of facebooking, networking or twittering will grow your business if you have unhappy clients that cannot recommend you.

4. Are all the tasks on your To Do list necessary for your personal and professional needs?
By identifying the issue, you are one-step closer to fulfilling your goals. Understanding why you have an issue is a step toward completion. Once you understand, you can effectively move forward.

When I woke this morning, my very first thought was… “how lucky am I to own a business that not only helps business owners succeed – it also provides for my family and gives me complete and total satisfaction”. I then hopped out of bed and had the most productive morning I’ve had in a couple of weeks.

Isn’t that what life is all about? I have been self-employed for many years, yet it was not until recently that I realized my passion and love for what I do propels me much further than my need to make money. Money is not a motivator – your passion is! You will always strive for what makes you feel good and there is nothing more rewarding than providing for others.

So… always take stock of your blessings when you wake in the morning. It sets the tone for the day. Being optimistic and happy is the best tool you have in your success arsenal. As long as you are content in your heart and working with good intentions, good things will come because people will want to be around you. Bottom line… happy people make people happy!

“consistency builds confidence – confidence builds trust” – Tim Moran, Private Client Group.

Intellectual Property (IP) is the talk of the town. All companies have it in some form. Do you protect yours as the asset it is? Do you nurture your environment so creativity and innovation is not only supported but also promoted? If not, RECONSIDER!! IP brings exceptional value to your company and your clients. Additionally, it may open doors to growth opportunities you may have never considered.