Employees need some idea of your firm's fiscal health
May 5, 2011
By Jerry Osteryoung
“Information can tell us everything. It has all the answers. But they are answers to questions we have not asked, and which doubtless don't even arise.” ~Jean Baudrillard
A local business owner who is a distributor for a large manufacturer was considering asking his staff to help cut costs. He decided to survey his staff first, asking everyone three questions:
What percent of the selling price of goods or services do the owners get to keep?
What is the dollar amount the owners have invested in this company out of their own pocket?
By what percentage do you think the profits of this company grow every year?
When the entrepreneur compiled the results from these questions, he was floored. Like so many others, this entrepreneur understood very little about his staff's knowledge of the business. He assumed that they knew much more than they actually did.
In response to question one, several employees said the owner kept 100 percent of the sale price, and not one staff member said he kept less than 30 percent. Every one of his employees believed he got to keep 30 percent or more of the profit, and the average response was 50 percent.
Staff does not need to know the exact amount, but it is important they have some idea of the range of profits you are making. Ensuring your staff has a reasonable expectation is important for many reasons. In this case, it was going to be very difficult for this entrepreneur to convince his staff to help cut costs if they thought he was making 50 percent on every sale.
The entrepreneur showed his staff that the average public company only earned two percent in net profits last year — a shocking revelation for many. Most never imagined the number would be so low.
As for the second question, most of the staff greatly underestimated the amount the owner had invested in the business. Most answered that the owner had put in $100,000, but in reality he had contributed more than $1 million of his own money.
To correct this false impression, the owner simply told his employees how much of his own money he had invested. Again, the staff was floored. They had no idea.
On the question about profit growth, most of the staff answered that profits had been increasing by more than 20 percent each year. In reality, profits had been declining.
Through this exercise, employees gained a new understanding of the business and a more accurate idea of its financial situation. Now that those major misconceptions had been replaced with more realistic impressions, it was much easier to get the staff to buy in to cost-cutting measures.
Now go out and make sure your staff has a general idea about your profitability and the amount you have invested in the business. I am convinced that the more upfront you are about this, the harder your staff will work.
You can do this!
Jerry Osteryoung is the Director of Outreach of The Jim Moran Institute for Global Entrepreneurship in the College of Business at Florida State University; The Jim Moran Professor Emeritus of Entrepreneurship; and Professor Emeritus of Finance. He was the founding Executive Director of The Jim Moran Institute and served in that position from 1995 through 2008. His newest book “If You Have Employees, You Really Need This Book” is an Amazon.com bestseller. He can be reached by e-mail at jerry.osteryoung@gmail.com. All of Osteryoung's articles can be found in a searchable format at http://jmi.fsu.edu/Services/Jerry-s-Articles.
Sunday, May 8, 2011
Sunday, May 1, 2011
Pricing and Inflation in today's economy
Price is what you pay. Value is what you get.” ~Warren Buffett
One question every entrepreneur must answer is what price they should charge for their products. The immediate impulse is to keep prices as low as possible so you are able to attract the most business, but low prices do not necessarily generate the highest level of profits.
Today, costs are increasing with inflation and you may need to evaluate your pricing. Among others, the price of fuel is soaring, the cost of medical insurance is escalating, as are the costs of airline travel and a variety of raw materials. Cotton, for example, has increased in price by more than 30 percent in the last six months.
With inflation beginning to show its ugly head and cause dramatic cost increases, you may need to raise your prices simply to balance the added expenses. If you fail to do so, your profitability will plummet.
From a customer's perspective, pricing sends a strong message, and for many, pricing is an indicator of value. If a product or service is priced too low, it will be perceived by customers as subpar. Priced higher, customers will perceive a higher value.
One of my friends truly believes that the more she pays for an item, the better it is. I have seen her contemplate two very similar products, and without fail, she chooses the more expensive alternative. She believes that by doing so, she is getting more value.
Pricing also affects the types of customers you attract to your business. Depending on the clientele you seek, setting your prices low may bring the wrong type. If customers are only focused on prices, they are not loyal to your business. They see you and your products and services only as interchangeable commodities.
Between bargain hunters and loyal customers, it is much better to have loyal customers. To encourage loyalty among your customers, a business should never rely on pricing as the sole differentiator. You must set prices appropriately and compete on nonprice elements, such as service, experience and speed of delivery.
We have been helping a wonderful lady who operated a medical clinic. Despite the fact that she worked tirelessly, she was struggling with low profits. When we reviewed her income statements and talked things over with her, we discovered that she had very little control over her costs. The only element she could control was her pricing, and she had not raised that in five years.
When we suggested she consider raising prices, she was strongly opposed. She feared that if she upped prices, she would lose customers and eventually go out of business. When we worked the numbers, however, we quickly showed her that if she raised prices by 10 percent, she would pull in a higher level of profits, even if her sales fell off 20 percent.
She finally took our advice and raised prices. When she did, her customers never said a word. Her sales have decreased by less than 2 percent, and overall, her revenues have increased by 5 percent. Her profits have grown by 10 percent.
For this entrepreneur, raising prices had a minimal impact on her customers, but a big impact on her bottom line. Though she was fearful that she would lose customers, she discovered one important truth: generally speaking, customers will remain loyal to your business as long as the value they receive is more than the price they pay, and value is dependent upon a number of elements, not just price.
Now go out and take a look at your pricing. As inflation returns, you may find you need to raise prices to offset cost increases.
You can do this!
One question every entrepreneur must answer is what price they should charge for their products. The immediate impulse is to keep prices as low as possible so you are able to attract the most business, but low prices do not necessarily generate the highest level of profits.
Today, costs are increasing with inflation and you may need to evaluate your pricing. Among others, the price of fuel is soaring, the cost of medical insurance is escalating, as are the costs of airline travel and a variety of raw materials. Cotton, for example, has increased in price by more than 30 percent in the last six months.
With inflation beginning to show its ugly head and cause dramatic cost increases, you may need to raise your prices simply to balance the added expenses. If you fail to do so, your profitability will plummet.
From a customer's perspective, pricing sends a strong message, and for many, pricing is an indicator of value. If a product or service is priced too low, it will be perceived by customers as subpar. Priced higher, customers will perceive a higher value.
One of my friends truly believes that the more she pays for an item, the better it is. I have seen her contemplate two very similar products, and without fail, she chooses the more expensive alternative. She believes that by doing so, she is getting more value.
Pricing also affects the types of customers you attract to your business. Depending on the clientele you seek, setting your prices low may bring the wrong type. If customers are only focused on prices, they are not loyal to your business. They see you and your products and services only as interchangeable commodities.
Between bargain hunters and loyal customers, it is much better to have loyal customers. To encourage loyalty among your customers, a business should never rely on pricing as the sole differentiator. You must set prices appropriately and compete on nonprice elements, such as service, experience and speed of delivery.
We have been helping a wonderful lady who operated a medical clinic. Despite the fact that she worked tirelessly, she was struggling with low profits. When we reviewed her income statements and talked things over with her, we discovered that she had very little control over her costs. The only element she could control was her pricing, and she had not raised that in five years.
When we suggested she consider raising prices, she was strongly opposed. She feared that if she upped prices, she would lose customers and eventually go out of business. When we worked the numbers, however, we quickly showed her that if she raised prices by 10 percent, she would pull in a higher level of profits, even if her sales fell off 20 percent.
She finally took our advice and raised prices. When she did, her customers never said a word. Her sales have decreased by less than 2 percent, and overall, her revenues have increased by 5 percent. Her profits have grown by 10 percent.
For this entrepreneur, raising prices had a minimal impact on her customers, but a big impact on her bottom line. Though she was fearful that she would lose customers, she discovered one important truth: generally speaking, customers will remain loyal to your business as long as the value they receive is more than the price they pay, and value is dependent upon a number of elements, not just price.
Now go out and take a look at your pricing. As inflation returns, you may find you need to raise prices to offset cost increases.
You can do this!
Sunday, April 24, 2011
Daily Dealer Marketers on the Web
“Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced. Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation. And they need to know and to apply the principles of successful innovation.” ~Peter Dricker
One thing I know about marketing is that the vehicles for reaching potential clients are continually changing and evolving. Traditional methods are declining in importance as so many people are getting all of their news and information on the web.
While there are many things you can do with traditional advertising, it is so much better to use some of the new techniques that are currently on the rise. One such method is something called Daily Deal Marketing (DDM). This new vehicle is proving very effective and economical.
This is a brand new industry that will mature over time, but even still, there is so much opportunity out there. The two predominant Daily Deal Marketers are Groupon and LivingSocial. Both are designed to help drive new business to your door, and many companies are having some great success with them. A plant nursery we were working with was able to generate more than 500 new customers, and a spa grew its client base by more than 250.
Groupon is only three years old, but it already has over 50 million subscribers in more than 500 markets. The company raised close to a billion dollars in new capital after turning down a $6 billion-dollar buyout deal from Google.
The concept is pretty simple. The merchant offers a deal—typically 50 percent or less of retail value—that is made available to potential customers for a limited time. Generally, it takes a minimum number of purchases to activate the deal, and the merchant can put a limit on how many deals they are willing to give as well.
What the customer pays for the deal is split between the merchant and the DDM, so if you are offering a $4 cup of yogurt for $2, you will get $1 for each customer purchase. Payment by the DDM normally occurs within three weeks of the customer’s purchase.
Many entrepreneurs do not like these new marketing tactics as they generate so little income and they have to sell the product below cost. However, the real return is not the money that you receive for the product but the advertising. Not to mention the ability to bring in new customers. If you can bring a new customer to your door, it is worth the sacrifice on the initial sale because, now that they know about you, they are likely to come back.
Another return that you get from these deals is that you receive funds even if the customer never actually uses the coupon, which occurs around 20 percent of the time.
If you are a business that deals directly with customers, especially retailers, look into using DDMs. The concept is relatively simple, but the returns are very high. They are a very economical method for bringing new customers into your business.
You can do this.
One thing I know about marketing is that the vehicles for reaching potential clients are continually changing and evolving. Traditional methods are declining in importance as so many people are getting all of their news and information on the web.
While there are many things you can do with traditional advertising, it is so much better to use some of the new techniques that are currently on the rise. One such method is something called Daily Deal Marketing (DDM). This new vehicle is proving very effective and economical.
This is a brand new industry that will mature over time, but even still, there is so much opportunity out there. The two predominant Daily Deal Marketers are Groupon and LivingSocial. Both are designed to help drive new business to your door, and many companies are having some great success with them. A plant nursery we were working with was able to generate more than 500 new customers, and a spa grew its client base by more than 250.
Groupon is only three years old, but it already has over 50 million subscribers in more than 500 markets. The company raised close to a billion dollars in new capital after turning down a $6 billion-dollar buyout deal from Google.
The concept is pretty simple. The merchant offers a deal—typically 50 percent or less of retail value—that is made available to potential customers for a limited time. Generally, it takes a minimum number of purchases to activate the deal, and the merchant can put a limit on how many deals they are willing to give as well.
What the customer pays for the deal is split between the merchant and the DDM, so if you are offering a $4 cup of yogurt for $2, you will get $1 for each customer purchase. Payment by the DDM normally occurs within three weeks of the customer’s purchase.
Many entrepreneurs do not like these new marketing tactics as they generate so little income and they have to sell the product below cost. However, the real return is not the money that you receive for the product but the advertising. Not to mention the ability to bring in new customers. If you can bring a new customer to your door, it is worth the sacrifice on the initial sale because, now that they know about you, they are likely to come back.
Another return that you get from these deals is that you receive funds even if the customer never actually uses the coupon, which occurs around 20 percent of the time.
If you are a business that deals directly with customers, especially retailers, look into using DDMs. The concept is relatively simple, but the returns are very high. They are a very economical method for bringing new customers into your business.
You can do this.
Sunday, April 17, 2011
Mindfulness Can Make You A Better Leader
“Leaders all over the planet are beginning to understand the benefits of purposefully learning to be more attentive and focused, non-reactive, and clear.” ~Saki Santorelli, EdD, Center for Mindfulness executive director
It is so satisfying when your personal and professional lives intersect. The art of mindfulness is one that I have been working on for some time, and it is now in vogue in the business world.
To me, "mindfulness" is living in the present moment without being influenced by the past or the future. That may sound glib, but it is really tough because our minds naturally want to dash back and forth between the past and the future and everything in between.
To illustrate, watch the way young kids play and interact. They do not really consider the past and the future because all they know is the present. Over time, however, our minds become more busy, and it becomes tough to live in the present moment. If we are able to get our minds to focus on the present, though, life is so much clearer and simpler.
Most mindfulness training starts with some form of meditation. Find a place to sit either on a cushion or the floor, and close your eyes. With your eyes closed, observe your thoughts. The most effective way to do this is to focus on your breathing. As thoughts or feelings arise, let them pass and return to your breathing. It may sound easy, but in reality, it takes some practice to get the mind to slow down.
Practicing mindfulness through meditation relieves anxiety and stress. I can personally attest to this.
You may be thinking, "That is great, Jerry, but what does all this have to do with leadership?" It is about finding clarity and getting to a place where you can make better decisions. When living in the present, the baggage of the past will not affect current decisions. Mindful leaders also do not fight change. If you are living in the present, resistance to change is not an issue.
To see things more clearly, you must have an undistracted mind. If your mind is busy, even at a subconscious level, your ability to focus and analyze is diminished. Now, I am not saying that mindfulness can replace knowledge, skill and relevant data in business decisions. Instead, all these elements should be utilized to get maximum benefits.
The University of Massachusetts is home to the Center for Mindfulness, which offers courses to help leaders bring mindfulness into their organizations. For iPhone users, there are many additional resources in the App Store under "meditation." Consider taking some classes on mindfulness. I promise it will change the way you see the world and your business with very little effort.
You can do this!
It is so satisfying when your personal and professional lives intersect. The art of mindfulness is one that I have been working on for some time, and it is now in vogue in the business world.
To me, "mindfulness" is living in the present moment without being influenced by the past or the future. That may sound glib, but it is really tough because our minds naturally want to dash back and forth between the past and the future and everything in between.
To illustrate, watch the way young kids play and interact. They do not really consider the past and the future because all they know is the present. Over time, however, our minds become more busy, and it becomes tough to live in the present moment. If we are able to get our minds to focus on the present, though, life is so much clearer and simpler.
Most mindfulness training starts with some form of meditation. Find a place to sit either on a cushion or the floor, and close your eyes. With your eyes closed, observe your thoughts. The most effective way to do this is to focus on your breathing. As thoughts or feelings arise, let them pass and return to your breathing. It may sound easy, but in reality, it takes some practice to get the mind to slow down.
Practicing mindfulness through meditation relieves anxiety and stress. I can personally attest to this.
You may be thinking, "That is great, Jerry, but what does all this have to do with leadership?" It is about finding clarity and getting to a place where you can make better decisions. When living in the present, the baggage of the past will not affect current decisions. Mindful leaders also do not fight change. If you are living in the present, resistance to change is not an issue.
To see things more clearly, you must have an undistracted mind. If your mind is busy, even at a subconscious level, your ability to focus and analyze is diminished. Now, I am not saying that mindfulness can replace knowledge, skill and relevant data in business decisions. Instead, all these elements should be utilized to get maximum benefits.
The University of Massachusetts is home to the Center for Mindfulness, which offers courses to help leaders bring mindfulness into their organizations. For iPhone users, there are many additional resources in the App Store under "meditation." Consider taking some classes on mindfulness. I promise it will change the way you see the world and your business with very little effort.
You can do this!
Sunday, April 10, 2011
Managing your Boss
“For a manager to be perceived as a positive manager, they need a four to one positive to negative contact ratio” ~Ken Blanchard
In the 10+ years I have been writing this column, people have regularly sent me requests for topics they'd like me to cover. The No. 1 most requested topic is how to manage a boss.
It is a common complaint, and employees really only have two options: either they learn how to deal with a bad boss or they leave, which is not a palatable option for most.
If you are one of those with a bad boss, you must figure out a way to work with the person. Unfortunately, you cannot expect your boss to change. Dwelling on your boss' shortcomings is not productive and will only make you feel bad.
All bosses — even the good ones — make mistakes, and some do not have the best skills to make each employee feel valued. Even so, you still must make an effort to do the best job you can.
Try to understand what motivates your boss, his or her goals, and how he or she is being evaluated. If you know what your boss values, you can easily figure out what to do to help achieve those goals. Your boss will appreciate your efforts and value you as an employee that much more.
If, however, you just cannot figure out what your boss needs to be successful, you need to ask. Nothing will flatter your boss more than asking him or her what you can do to help the firm or department be more successful. If you do not receive an adequate answer, which might happen, ask your colleagues if they can help you in this process.
We know marketing is a vital element of a business. For employees, it plays an equally important role in their relationship with their bosses. Employees need to market themselves to their bosses by communicating with them on a regular basis; weekly is the best frequency.
Keeping an open line of communication with your boss is important to managing your workload. Often bosses do not really know what all is on their employees' plates. The more you can communicate with them about your work load, the less likely they are to overload you.
If you have a problem with your boss, go talk to him, but make sure you take a positive, productive approach. Whether it is true or not, telling your boss how wrong he is will seldom yield positive results. Focus on the specific issue without making it a personal attack. For example, if you are concerned about a specific policy, explain how the policy makes you feel and offer suggestions for how it might be improved. Most bosses value constructive input from staff.
While managing your boss is not easy, it is something that every employee has to do. The more you can align yourself with your boss' goals, the better your relationship will be. A critical piece of this is marketing yourself to your boss on a regular basis.
You can do this!
In the 10+ years I have been writing this column, people have regularly sent me requests for topics they'd like me to cover. The No. 1 most requested topic is how to manage a boss.
It is a common complaint, and employees really only have two options: either they learn how to deal with a bad boss or they leave, which is not a palatable option for most.
If you are one of those with a bad boss, you must figure out a way to work with the person. Unfortunately, you cannot expect your boss to change. Dwelling on your boss' shortcomings is not productive and will only make you feel bad.
All bosses — even the good ones — make mistakes, and some do not have the best skills to make each employee feel valued. Even so, you still must make an effort to do the best job you can.
Try to understand what motivates your boss, his or her goals, and how he or she is being evaluated. If you know what your boss values, you can easily figure out what to do to help achieve those goals. Your boss will appreciate your efforts and value you as an employee that much more.
If, however, you just cannot figure out what your boss needs to be successful, you need to ask. Nothing will flatter your boss more than asking him or her what you can do to help the firm or department be more successful. If you do not receive an adequate answer, which might happen, ask your colleagues if they can help you in this process.
We know marketing is a vital element of a business. For employees, it plays an equally important role in their relationship with their bosses. Employees need to market themselves to their bosses by communicating with them on a regular basis; weekly is the best frequency.
Keeping an open line of communication with your boss is important to managing your workload. Often bosses do not really know what all is on their employees' plates. The more you can communicate with them about your work load, the less likely they are to overload you.
If you have a problem with your boss, go talk to him, but make sure you take a positive, productive approach. Whether it is true or not, telling your boss how wrong he is will seldom yield positive results. Focus on the specific issue without making it a personal attack. For example, if you are concerned about a specific policy, explain how the policy makes you feel and offer suggestions for how it might be improved. Most bosses value constructive input from staff.
While managing your boss is not easy, it is something that every employee has to do. The more you can align yourself with your boss' goals, the better your relationship will be. A critical piece of this is marketing yourself to your boss on a regular basis.
You can do this!
Sunday, April 3, 2011
Incentives Can Motivate Your Staff
“Life takes on meaning when you become motivated, set goals and charge after them in an unstoppable manner.” ~Les Brown
Motivating your workforce is tough. Out of the many strategies and solutions for keeping staff motivated, the most effective way is using incentives.
We were assisting a very progressive firm that had set up a great incentive system to reward its employees for their billable hours. The system had been in place for three years, and the staff loved it. However, the owner was now concerned that the incentive was no longer working.
When I asked what made him think so, he explained that although folks were working hard to earn their incentives, but it was all they were concerned with. When it came to helping another colleague, they were not motivated to do so because there was no direct benefit to them.
On the surface this incentive system appeared to be working, yet it had unintended consequences. We changed the system to take into account a combination of individual production, team production and company success. Individual production was weighted at 60 percent, and team production and company success were each worth 20 percent. There is no question in my mind that this new incentive system aligns the goals of the individual with those of the firm.
Since the staff liked the old system so much, the owner’s challenge is to get them to accept the new plan. His strategy is to show them how they can make more money on this new plan, while promoting a spirit of cooperation.
While monetary incentives are great, many employees may not be motivated by money, particularly Gen-Xers (staff born after 1980). This group is motivated more by time off rather than a direct monetary incentive. In response, some entrepreneurs are rewarding staff with an additional day off for every month they hit their goals. The key to a successful incentive system is finding the reward that will motivate your staff to be more productive.
While incentives vary depending upon the work force and the goals of the organization, there are several key elements to include. First, the more frequently you reward the incentive, the better. It is hard to wait a year before you know how successful you have been and whether you have earned your bonus.
Second, the incentive system should be continually monitored to ensure it is working effectively.
Third, the incentive must have meaning for the people receiving it. Giving staff money, when doing so is not particularly motivating, is not good business.
A fourth element essential to a successful incentive system is a plan for support employees, whose efforts do not directly affect production numbers. Incentives for these workers should be based on the team’s production and the firm’s success.
Finally, you will need to have employee buy-in for the plan. When introducing a new incentive or changing the existing system, it is important that you sell it to your staff by showing them what they will gain.
Now go out and make sure that you have an incentive system in place to motivate your staff to help achieve the firm’s goals.
You can do this.
Motivating your workforce is tough. Out of the many strategies and solutions for keeping staff motivated, the most effective way is using incentives.
We were assisting a very progressive firm that had set up a great incentive system to reward its employees for their billable hours. The system had been in place for three years, and the staff loved it. However, the owner was now concerned that the incentive was no longer working.
When I asked what made him think so, he explained that although folks were working hard to earn their incentives, but it was all they were concerned with. When it came to helping another colleague, they were not motivated to do so because there was no direct benefit to them.
On the surface this incentive system appeared to be working, yet it had unintended consequences. We changed the system to take into account a combination of individual production, team production and company success. Individual production was weighted at 60 percent, and team production and company success were each worth 20 percent. There is no question in my mind that this new incentive system aligns the goals of the individual with those of the firm.
Since the staff liked the old system so much, the owner’s challenge is to get them to accept the new plan. His strategy is to show them how they can make more money on this new plan, while promoting a spirit of cooperation.
While monetary incentives are great, many employees may not be motivated by money, particularly Gen-Xers (staff born after 1980). This group is motivated more by time off rather than a direct monetary incentive. In response, some entrepreneurs are rewarding staff with an additional day off for every month they hit their goals. The key to a successful incentive system is finding the reward that will motivate your staff to be more productive.
While incentives vary depending upon the work force and the goals of the organization, there are several key elements to include. First, the more frequently you reward the incentive, the better. It is hard to wait a year before you know how successful you have been and whether you have earned your bonus.
Second, the incentive system should be continually monitored to ensure it is working effectively.
Third, the incentive must have meaning for the people receiving it. Giving staff money, when doing so is not particularly motivating, is not good business.
A fourth element essential to a successful incentive system is a plan for support employees, whose efforts do not directly affect production numbers. Incentives for these workers should be based on the team’s production and the firm’s success.
Finally, you will need to have employee buy-in for the plan. When introducing a new incentive or changing the existing system, it is important that you sell it to your staff by showing them what they will gain.
Now go out and make sure that you have an incentive system in place to motivate your staff to help achieve the firm’s goals.
You can do this.
Sunday, March 27, 2011
Try part-time ventures to test your idea.
"Natural abilities are like natural plants; they need pruning by study." ~Francis Bacon
When starting a new business, there is no question in my mind that the best method is to start small and grow it little by little.
I recommend that entrepreneurs keep their existing jobs and work on their new business part time. This approach allows potential business owners to test the waters before diving in.
Many people who start their own business find out that it is not for them. Owning a small business is most definitely not for everyone. Not everybody is cut out for it, and many lack the requisite skills and financial assets to be successful.
One of the best ways to find out if you have what it takes is to test your entrepreneurial skills on a part-time basis. This approach is much better than quitting your job and going all in with nothing to fall back on.
Frequently, I see small businesses fail not because the owners lack the skills and capital, but because their business concept was not viable. In cases where these entrepreneurs started part time, they were able to greatly reduce their capital loss and preserve their full-time jobs.
For all its benefits, starting a small business part time is by no means easy. It will be tough on you and your family. Starting your business while keeping your existing job is going to take much more time than your full-time job ever did, and your family will see much less of you because getting a new business up and running will require constant attention.
There are several ways to balance the needs of your new business and that of your family. One is to designate some time every day to spend with your family. The key to this is ensuring your daily family time — however long or short — is quality time. You must make sure you are not preoccupied.
Consider having an agreement with your family that you'll work on this business venture for a finite period of time. Once the designated period expires, you will either quit pursuing the venture or you'll take your new business full time by giving up your regular job.
Whichever method you choose, it's critical that your family understands the effort this venture will require, and that you commit to making absolutely sure your family does not feel abandoned.
Now go out and consider whether becoming an entrepreneur is for you. If you think it is, consider starting your own business part time. Not only does this approach reduce your risk, but it also provides a real-world opportunity to test the viability of your business concept.
You can do this!
When starting a new business, there is no question in my mind that the best method is to start small and grow it little by little.
I recommend that entrepreneurs keep their existing jobs and work on their new business part time. This approach allows potential business owners to test the waters before diving in.
Many people who start their own business find out that it is not for them. Owning a small business is most definitely not for everyone. Not everybody is cut out for it, and many lack the requisite skills and financial assets to be successful.
One of the best ways to find out if you have what it takes is to test your entrepreneurial skills on a part-time basis. This approach is much better than quitting your job and going all in with nothing to fall back on.
Frequently, I see small businesses fail not because the owners lack the skills and capital, but because their business concept was not viable. In cases where these entrepreneurs started part time, they were able to greatly reduce their capital loss and preserve their full-time jobs.
For all its benefits, starting a small business part time is by no means easy. It will be tough on you and your family. Starting your business while keeping your existing job is going to take much more time than your full-time job ever did, and your family will see much less of you because getting a new business up and running will require constant attention.
There are several ways to balance the needs of your new business and that of your family. One is to designate some time every day to spend with your family. The key to this is ensuring your daily family time — however long or short — is quality time. You must make sure you are not preoccupied.
Consider having an agreement with your family that you'll work on this business venture for a finite period of time. Once the designated period expires, you will either quit pursuing the venture or you'll take your new business full time by giving up your regular job.
Whichever method you choose, it's critical that your family understands the effort this venture will require, and that you commit to making absolutely sure your family does not feel abandoned.
Now go out and consider whether becoming an entrepreneur is for you. If you think it is, consider starting your own business part time. Not only does this approach reduce your risk, but it also provides a real-world opportunity to test the viability of your business concept.
You can do this!
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