Maximize Business Potential with a Cash Flow Statement

The Cash Flow Statement provides a clear picture of how cash is moving in and out of the company. It helps in evaluating the overall financial health of your business. By analyzing the cash flow statement, you can understand the sources and uses of cash, identify potential cash flow issues, and make informed decisions regarding investments. It also determines the ability of the business to meet its financial obligations. Undoubtedly, a cash flow statement is a vital tool for monitoring and managing the financial performance of a company.

Financial reports can be intimidating. But, they don’t have to be. We use Fathom as our reporting platform. Below is an example of a Cash Flow Statement. Creating financial reports that are easy to read and understand are invaluable in business. I can’t say it enough, understanding financial reports is crucial for informed decision-making in business. It’s essential for maintaining transparency, ensuring accountability, and driving long-term success in any organization.

Do you want to improve profitability, spot trends, and secure cash reserves? Let’s talk about how we can help you interpret your financial reports and create custom reports that explain the story your financial data is telling you.

Our mission statement: TO MAKE BUSINESSES MORE PROFITABLE BY ASSISTING OWNERS IN INTERPRETING KEY FINANCIAL REPORTS AND DELIVERING ACCURATE BOOKKEEPING SERVICES.

What does the Balance Sheet tell you

A balance sheet is a financial statement that provides a snapshot of your company's financial position at a specific point in time. It’s a summary of your business’ assets, liabilities, and shareholders' equity. Here’s how to use a balance sheet effectively:

1. Understand each Section: Learn the three main parts of a balance sheet – assets, liabilities, and equity. Assets are what your company owns, liabilities are what it owes, and equity represents the shareholders' ownership in the company.

2. Analyze Liquidity: Assess the liquidity of your company by reviewing the current assets and current liabilities. A healthy balance between the two indicates the company can meet its short-term obligations.

3. Evaluate Debt: Look at the proportion of debt to equity to gauge the company's financial leverage. High debt levels may indicate increased financial risk.

4. Calculate Financial Ratios: Use the balance sheet info to calculate important financial ratios like debt-to-equity ratio, current ratio and cash ratio. These ratios show how well the company is doing financially.

5. Compare Over Time: Track changes in the balance sheet over different periods to identify trends. Trends can indicate its ability to manage finances, leverage, and potential for growth. Consistent analysis can help in understanding your company's financial growth or decline.

6. Use for Decision-Making: By analyzing a balance sheet, you can assess your company's overall financial health. You should use the balance sheet report to make informed business decisions. Whether it's assessing creditworthiness, attracting investors, or planning for expansion, the balance sheet is a crucial tool in financial analysis.

You can effectively utilize a balance sheet, along with a profit and loss and cash flow statement, as powerful financial management tools for your business.

All that said, financial reports can make your eyes glaze over. Reading a report with nothing but numbers and trying to decipher what they mean can be daunting. We create financial reports that are engaging ( I know sounds impossible) easy to read and are customized for your business.

Let’s talk about how we can help you interpret your financial reports and explain the story your financial data is telling you.

The Necessity of Profit

Making a profit is essential for the sustainability and growth of any business. Profit serves as a means to drive innovation, and a way to contribute to the economy and society. But more than that, it provides entrepreneurs with the incentive to continue their ventures and potentially start new ones, allowing owners to achieve goals that go beyond financial success.

Every business has a reason why they started a business (aka a mission statement) and making a profit allows each company to achieve that ‘why.’ Apple’s mission statement is, “bringing the best user experience to its customers through its innovative hardware, software and services.” Walmart; ‘To save people money so they can live better.” Tesla: “To accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.” TOMS Shoes, “ Improving lives. One for One.” Google, “Organize the world’s information and make it universally accessible and useful.” Aveda; “Care for the world we live in, from the products we make to the ways in which we give back to society.” Patagonia: “We are in business to save the planet.’ You get the idea.

Profit provides the necessary funds for research and development, allowing businesses to create new products, improve existing ones, and explore new markets. This innovation is crucial not only for the growth of the individual business but also for the advancement of industries and the economy as a whole. Companies like Apple and Tesla, known for their groundbreaking products, have leveraged their profits to invest heavily in innovation, setting new standards and creating significant value for consumers worldwide.

Profitability is a fundamental measure of a business's health and viability. A profitable business is one that successfully balances its costs with its revenue, demonstrating effective management and market demand for its products or services. Without profit, a business cannot survive in the long term, as it would eventually exhaust its resources. Profit signals that a business is meeting customer needs efficiently and can sustain itself, providing a stable environment for employees and suppliers.

A focus on profit encourages businesses to think long-term and make sustainable decisions. Profitable companies are better positioned to weather economic downturns and invest in sustainable practices. Profits allow businesses to reinvest in their operations by expanding facilities, or enhancing employee skills through training programs which provide livelihoods for individuals and families. Simply stated, embracing profit as a positive force can lead to a more dynamic, innovative, and prosperous economy and society.

Our mission statement: TO MAKE BUSINESSES MORE PROFITABLE BY ASSISTING OWNERS IN INTERPRETING KEY FINANCIAL REPORTS AND DELIVERING PRECISE BOOKKEEPING SERVICES.

In other words, we help businesses stay in business. Let’s talk about how we can help you achieve your mission.

Why is Cash Flow Important

Cash flow refers to the movement of money in and out of a business. It is a crucial financial metric that indicates the liquidity and operational health of a company. Positive cash flow means that more money is coming into the business than going out, while negative cash flow signifies the opposite. Monitoring and managing cash flow is essential for sustaining business operations, covering expenses, investing in growth, and meeting financial obligations.

Cash flow forecasting is a financial tool that uses historical data to help businesses estimate the future inflows and outflows of cash over a specific period. It allows companies to anticipate how much cash will be generated and how much will be spent, aiding in planning for the future. By analyzing cash flow forecasts, businesses can make informed decisions regarding investments, expenses, and overall financial strategy. This forward-looking assessment is crucial for effective financial management and ensuring the sustainability of a business.

Estimating your sales is the first step. Review your historical data to predict the sales for next month. You’ll find the sales or revenue data on the P&L report. Now include customer invoices, and remember to consider terms of payment for each customer. Make sure to consider what your business plans for the next month. Are you launching a new product or service or will you hire a new employee. Next calculate your expenses, rent, utilities, insurance, vendor bills, etc.

Once you’ve taken last month’s balance add it to the forecasted sales and subtract the forecasted expenses. Cash flow forecasting is invaluable information is to help steer your business in the right direction.

Our cash flow forecast reports ensure that your business stays financially healthy by providing accurate projections of your incoming and outgoing cash. With our advanced forecasting reports, we’ll help you anticipate potential cash shortages or surpluses, allowing you to make informed decisions to keep your operations running smoothly. Partner with us for comprehensive cash flow forecast reports that will empower your business and secure your financial stability.

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Take Control of Your Schedule

Ever wish there were more hours in a day? Ever look at your calendar and wonder how you’ll accomplish it all? It’s an overwhelming feeling, and I don’t like to feel overwhelmed. So I decided to take control of my schedule. I took some time on a Saturday morning to relax and decide what my priorities are. It was time to start being intentional about my time. I made a list of what I needed or wanted to do daily in every area of my life. 

As you can imagine it was a long list. I began to edit it and start to fit each activity into a time slot. I had to really think about what I wanted to achieve each day. I started to feel excited about the possibility of creating a schedule that included both personal and professional activities. Things like waking up early, eating breakfast and reading a devotional, working on my business (and not in it), exercising, taking time to be with my family. There isn’t enough time each day to do all I want to do, so I had to decide what was important to me. That’s what I focused on and that’s what I built my schedule around.  This resulted in a list of things that were important for my growth, health, and my relationships. 

Being intentional makes a difference. Spending my time doing things that matter to me makes me feel more accomplished and more satisfied with my life. Every decision I make is made with my priorities in mind. I say no to anything that’s not aligned with my priorities. So when things don’t go according to plan, I at least know that I’ve accomplished what matters most, and that gives some peace. 

Feeling overwhelmed is a much less frequent feeling now. Scheduling priorities allows me to stay focused. My days are filled with intentional activities that help me stay attentive and achieve balance, at a slower pace, with a lot of joy. 

When Should I Hire Help?

Your business is growing, you’re working every minute you can, and you are doing everything. You know you need to hire help, but the thought of going through the hiring process and training someone seems daunting, time consuming, and more work than you can handle. But what is the alternative? Keep going at the same pace?

Schedule some time to work on your business and determine what tasks should be and can be delegated. Hiring a contractor may be a great way to start. Some benefits to hiring a contractor:

1.       You don’t have to pay employee taxes (because they are an independent contractor not an employee).

2.       You don’t have to supply equipment, computers, phones, etc.

3.       You don’t have to offer benefits, such as vacation time, retirement plans, etc.

4.       Contractors have a skill set that will save you time training.

5.       Contractors can be flexible. Negotiate a small amount of time as a trial period, and if all goes well, you can increase your time and delegate more tasks.

There is a lot to consider when hiring, whether it be an employee or an independent contractor. The hiring process should take some time. You want to surround yourself with a team of people who you like to work with, who are loyal, dedicated, and do outstanding work. Take your time to find the right person for your company who will help with the workload and grow your business. Be intentional about the hiring process. Write out exactly what kind of person you want on your team.

Taking time out to work on your business instead of in it is so challenging, but it’s worth every minute. Below are just a few of the many benefits:

1.       You begin to see your vision more clearly and create a plan to achieve your goals.

2.       You become more creative with solving problems after you have a chance to analyze and assess the situation (instead of making decisions in the moment which are usually short sighted and more of a band aid).

3.       You begin to build momentum, see the future, and lead you, your team, and your business towards success.  This is a much healthier and productive approach than head down, plowing through the day putting out fires, and feeling exhausted.

Take action today. Schedule some time, just 30 minutes, and plan, dream, and determine what needs to be done to move your business forward. Sometimes just starting is all you need to fuel the momentum to achieve your goals.  

ASAP Business Solutions may be able to help you get started. We offer bookkeeping and administrative assistance. Visit our website and let us know if we can help!

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How to Keep New Year’s Resolutions

Why is it hard to keep a New Year’s resolution? The way I look at a resolution is like a goal. There is a right way and a wrong way to set goals. See our blog post on goal setting here.  If you want to be successful at keeping your New Year’s resolutions, then state your resolutions just like a small goal. 

Write your goals with details. Make your goals measurable, achievable, and assign a time limit. Now, put your paper with your goals in a place where you can read it every day. Here are a few more tips that may help you stay on track to achieve your goals. Setting yourself up to win is just as important as writing down your goals. 

1. Go slow and change one habit at a time. We all want instant gratification, but if we’re being intentional about changing our habits or achieving something, we need to be purposeful in our actions and adjust our expectations accordingly. As my grandmother would say, “Rome wasn’t built in a day.” Being patient and intentional is key. For example, cook one healthy meal a day to start. Then continue the momentum and cook two healthy meals a day then keep moving forward. 

2. Write your thoughts and feelings down as you go. Write your goals repeatedly. The more you write your goals, the more likely you are to achieve them. It will also help you remember why you are doing this. If you have a big enough why, it will compel you to get through the hard days. 

3. Be kind to yourself and don’t get discouraged., This is a process.  Be honest with yourself and remember to adjust your expectations. Speak to yourself as you would a close friend. Give yourself grace and allow yourself to move forward despite the messiness. 

4. Find a friend or an accountability partner to help you with your goals. It’s remarkable how much you can accomplish knowing that you’ll be speaking to someone that knows your goals and is expecting you to follow through. My accountability partner has helped me achieve many goals. This can be a great motivator, especially when you're feeling like nothing is working.

5. Reward yourself as you go. Either make the task enjoyable or set mini goals for yourself. For example, if I walk daily for six weeks, I can buy new sneakers. When I cook a healthy meal, I’ll play my favorite music. Start treating yourself as you go, it helps keep you motivated and it makes the journey more enjoyable. 

We understand that running a business can be overwhelming and stressful. We can help you achieve your goals by doing tasks that free up your time so you can grow your business.. We offer bookkeeping and administrative assistance. Visit our website and let us know if we can help! 

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How to Set Goals that You Can Achieve

A new year is approaching, and with it comes the anticipation of a new beginning filled with hope and expectation. The week leading up to the new year is a time I look forward to. I take time to look back at the year to see what worked and what failed.  I reorganize calendars and office systems.   And most importantly, I set goals for the new year. 

As with anything else in life, there’s a right way and a wrong way to set goals. If you just say what you want, and you don’t make a plan, you’ll fail. If you don’t say anything, then you’ll definitely fail. 

“A goal is a dream with a deadline.” - Napoleon Hill

Goals need to be specific, measurable, achievable, realistic, and have a time limit. Let’s break this down into easy steps. Since we are business minded, we’ll focus on your business, but these tips will work in your personal life too. 

An example of a business goal for the next year would be to increase gross income by 15%. At first glance, this goal might sound good. But let’s restate this goal so it meets the criteria. 

1. Specific: Acquire 1 new client every quarter by joining a local networking group.

2. Measurable: Take last year’s gross revenue, $500,000, and multiply it by 15%.  This equals $75,000. Now you know that you’ll need to make an additional $6,250 a month or $1,442 a week in order to meet this goal. 

3. Achievable: Ask yourself  if it is possible that joining a local networking group will bring in an additional $6,250 a month? 

4. Realistic: If you think the goal can not be achieved, then adjust your goal. Look at the weekly number, break it down to a daily goal, and add it to your calendar or to do list. This ensures that you are working toward your goal every day. An added benefit is that if you’re missing your weekly goals, you’ll know early in the year that you’re not going to hit that additional 75K of income. You can adjust and move forward.

5. Set a deadline: 12 months.

Now let’s look at the revised goal. By December 31, 2021, I will increase gross revenues by $75,000 by joining a networking group and acquiring one new client every quarter. Put the goal in writing with pen and paper and read it every day.  Write the weekly goal, in this case $1,442 a week, in your calendar and work toward it, adjusting as needed. 

Let us help you achieve your goals by doing tasks that can free up your time so you can focus on increasing your revenues. We offer bookkeeping and administrative assistance. Visit our website and let us know if we can help! 

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How to Prepare for Year End Reviews

It’s the end of the year, your team members have helped you through thick and thin, and now it’s time to evaluate their performance. There are so many different ways companies, both large and small, evaluate their team’s performance. Some have weekly reports from their team on the wins and struggles of the week, others have quarterly reviews, and yet others have yearly reviews. No matter how you review your team’s performance, constant communication with your team, and providing feedback, encouragement, and support is vital to the success of your team and your company. 

Here are some tips for annual reviews:

1. Keep track of performance wins and losses for each month or least each quarter and be prepared to discuss them in detail. 

   1. Track what goals were obtained and what goals weren’t. 

   2. Discuss what needs to be done better by you, the boss, to help your team members achieve their goals.

   3. Discuss what your team members liked and disliked about their goals.

   4. Ask them what goals or ideas they would like to implement.

   5. Ask how they would like to grow within the company.

      1. What position would they like to do?

      2. What tasks would they like to perform?

2. Discuss expectations and goals for the next year.

3. End on a positive note. Encourage the attributes you want them to continue.

Communicate, communicate, and communicate again. You can’t over communicate, especially with your team. With business moving at the speed of light, evaluating expectations and performances should be done frequently. Catch your team doing something right and congratulate them. Let them know that you are there to support them and help them achieve their goals. You're all in this together.  Treat your team with respect, appreciation, and gratitude, and you’ll be well on your way to accomplishing great things. 

At ASAP Business Solutions, we understand managing a team and running a business is all consuming. Let us help you achieve your goals by doing tasks that can free up your time while you lead your business forward. We offer bookkeeping and administrative assistance. Visit our website and let us know if we can help!

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Staying Organized at Work

Organization skills are essential to work. Everyone stays organized in different ways. We’ve talked about being productive and efficient. I know that working in a clean, uncluttered space helps me to focus. I physically feel relaxed when I walk into my office and everything is clean and in its place. In contrast, when my office is messy, I feel distracted and unproductive. Often, I can’t even start to work until the mess is cleaned up.

Designate a place for all your work “tools.”  Pens, pencils, rulers, calculators, phones, chargers, anything you need to do your job needs to have a place. This will keep clutter to a minimum and it helps you clean up faster because you know where everything goes. There is no thought process about what you should do with this or where you should put that. Cleaning up after work should take no time at all.

Eliminate paperwork. When possible, store your files digitally. Technology can get you organized and stay organized. For example, request suppliers and vendors to send bills via email. There are countless apps to help you automate tasks. Do a quick search and determine which one will help you the most.

Determine what it will take to get organized and stay organized. Commit to the plan. It will take some time to make it a habit, but the effort will be worth it. That being said, if you fall out of the habit, be kind to yourself. There are seasons in life that sometimes make a simple task like staying organized feel impossible. Be aware and take action to get yourself back on track.

Getting started can be the hardest part. Creating a habit takes time. Take one small step and move forward.  For more information on how we can help you with bookkeeping, operation tasks, and admin services visit us at https://www.asapbusinesssolutions.net/news.

Grow your Business

There are so many facets that are critical to starting, growing, and maintaining a business. Successful, thriving businesses have a lot in common. One segment of commonality is how they grow their businesses. As business owners, we make decisions all day, every day. But how we make those decisions and what criteria we base those decisions on matter greatly in the success of those decisions.

Here are some very basic fundamental action steps you can take to gain momentum and start winning. Know your vision. Creating a vision should be done in the very beginning stages of starting a business. If you previously created your vision, revisit it. Refine it, modify it, or change it if need be. Determine the company’s purpose.  Describe what success looks like for your company in 5 years, 10 years, and at retirement. Get detailed and creative.

Why is having a vision critical? Because when you have to make a decision, you can ask yourself, “Does this move me towards my vision or away from it?” When you routinely ask yourself this question, decision making becomes easy and it will give you forward momentum. 

Change the way you think about risk. An example would be making a large financial investment, like hiring.  Hiring is not only a large financial investment it is also a large commitment. Instead of seeing it as a risk, look at it like an experiment and start slowly. Hire a contractor for a few hours a week and slowly move forward, adding more time and delegating more tasks until you feel comfortable with your ROI.  

Build a cohesive team. To do this, you need to be an authentic leader. Make an investment in yourself to grow and be more effective with your team. Learn how to be a successful communicator. Focus on your team first then your customers. Give your employees purpose. Help them to learn more and grow with you.

These tips are just that, tips, but they will help you get started and move in the right direction. Take action today! For more strategies on how to grow your business, your team, and yourself as a leader, check out our blogs at https://www.asapbusinesssolutions.net/news.

Does Multitasking Work?

We all know that driving a car and texting on your phone is not safe. Not giving your full  attention to driving, even for a moment, can be catastrophic. So, is working on your computer, listening to music, and texting any different? Some research supports that not only is it harmful to the brain, but it reduces productivity. Multitasking can include  doing several tasks simultaneously, doing several tasks quickly in succession, or going back and forth between tasks.

Stanford researchers compared groups of people based on their tendency to multitask and their belief that it helps their performance. The results were that their performance was worse than people who did one task at a time. Why? Because they had difficulty organizing their thoughts and filtering out irrelevant information, and they were slower at switching from one task to another task. Research shows that the human brain can only focus on one thing at a time. We just don’t have the capacity to perform several tasks simultaneously successfully. Multitasking reduces our productivity, organization, and attention to detail.

So, how can we run a business and not multitask? There are strategies that can make your business more efficient and make you more productive.

1.       Write down your priorities to be completed first and block off time to complete them.

2.       Get organized. Find a system that will help you focus on one thing at a time and prevent distraction . For example, I work best in a clean, unclutter environment. I take time at the end of the day to clean and declutter my office, so I can start the next work day with no stress and distractions.

3.       Work in 20 minute, uninterrupted segments of time. Dive deep for 20 minutes on a task and you’ll be amazed at how productive you can be when your brain is myopically focused. There’s also a good chance you’ll want to keep working on the task because you are making so much progress.

4.       Take short breaks, refocus your eyes, eat healthy snacks, take a quick walk. These simple activities help  to refuel your body to sustain your energy.

5.       Make a list of things that pop into your mind while you are focusing on your work. Once you’ve written it down, you are more apt to go back to the work at hand knowing that you won’t forget about it.

6.       Delegate tasks that someone else can do so you can focus on your business. Hire a bookkeeper for a few hours a month. Hire an admin assistant to organize and maintain your emails, data entry, or other tasks that take your time away from growing your business.

The bottom line is only you can lead your business. Only you can create a vision for your business and make a plan to move it forward. Decide to be more productive by getting focused, creating organization, and hiring a team (even if only for a few hours a month) to help you get your business to the next level.

Adams, Chris. "Can People Really Multitask?" ThoughtCo, Aug. 26, 2020, thoughtco.com/can-people-really-multitask-1206398.

Bradberry, Travis. “Multitasking damages your brain and career, new studies suggest.” Forbes, Oct. 8, 2014. 

Create a Comfortable Work Space

More and more people are working from home. Although working from home can be a great way to achieve a more balanced life between our work and personal lives, it can be a challenge. But as with any challenge met head on and with a plan, it can work and work well.  Here are a few suggestions for creating a productive and comfortable working environment.

1.       Create an ergonomic workstation. Your computer, desk, and chair should be ergonomic. This doesn’t necessarily mean you need new equipment. Adjust the height of your chair so your elbows are at desktop level and your wrists are straight.  Sit back into your chair and adjust the seat back for good lower back support.  Position the mouse to be as close as practical to the keyboard while keeping elbows under the shoulder. The computer should be at eye level.

2.       Use a headset. It will reduce the strain on your neck and shoulders if you need to type while on the phone. Headsets will eliminate outside noise allowing you to stay focused on your conversation.

3.       Use ambient and task lighting. Since task lighting is bright, it will help reduce eye strain. Ambient lighting can help create a calm, more relaxed space without glare which can help reduce headaches and tension. However, natural light is especially beneficial at improving mood, energy, alertness, and productivity. So, when possible, pull back the curtains and let the sun shine in.

4.       Personalize your office. Make your space reflect who you are and how you work. There’s no one piece of advice that will work for everyone. Take a few minutes to think of what kind of office would make you feel comfortable to be in for extended periods of time.  Some design elements in my office are pictures of family, minimalist furniture, curtains, art that makes me smile, and an essential oil diffuser that makes the office smell great. My office is functional, comfortable, and relaxing.

5.       Declutter your space. To help boost productivity, make sure you have a place to store your papers and other necessary items. Keep your desk as clear as possible of clutter. This will help you focus more on the task at hand and give you room to spread out if you need the surface area to be creative. Studies suggest that decluttering a space will help reduce anxiety.  

Bottom line: creating a space that reflects you and the way you work will help you feel relaxed, comfortable and productive. Take action now. The sooner you decorate, reorganize, and reconstruct your desk ergonomics to create your ideal work space, the sooner you’ll set yourself up to win.  

The Importance of Delegating

Owning a business is hard work. When your business grows it presents new challenges. Although this process is exciting, it can be stressful. You’ve created and cultivated your business, but now it’s time to delegate some of the work. Knowing what and how to delegate is essential for success--success in growing both your business and your team. 

The most effective way to delegate a task, is to give up most of the control. Think about your schedule and what tasks you are doing that do not directly affect your revenues. Ask yourself, “Do I need to do this or can someone else complete the task? Will this task develop a team member's skills? Will taking this task off my to do list allow me to focus on planning and growing revenues?” 

Delegating tasks will help you maximize your own productivity as well as develop your team. When you delegate a task, your team feels valued. The more valued someone feels the more compelled they are to succeed. 

Here are some tips to help you to successfully delegate:

1. Pick the right person for the job. Do you trust the person? Is the task utilizing this person’s skills, strengths, and talents? How is this person qualified to complete the task? The better you can qualify the person, the higher success rate you’ll both have. 

2. Communicate, communicate, and communicate. Communicate your expectations clearly and often. Be specific with why each  task needs to be done, how important it is, and that team members  are free to ask questions at any time. Being available to troubleshoot will show that you support their efforts.

3. Do not micromanage. Once you’ve trained your team  and explained the expectations and guidelines, walk away. If you trust each  team member, then this should not be a problem. If you find yourself looking over his/her  shoulder, you’ve chosen the wrong person for the task.

4. Give feedback. If you need to suggest some corrections, give a positive statement first, then explain the correction and end with a positive statement. An example might be, “Thank you for submitting your work on time. Going forward, please insert our logo and mission statement on every document. I like how you included our new services into the report. Keep up the good work.”

5. Be thankful. Showing your gratitude is essential. If you’ve trained your team properly, they will continue to be productive, add to the success of the company and be a valuable asset. Never take that for granted. A handwritten note, a smile, or a small token of your appreciation goes a long way. Plus, it’s the right thing to do. 

Delegating can be a challenge when you are accustomed to maintaining control of all aspects of your business, but it is necessary in order to free you up to build your business.  Find the right team members within your company or hire an independent contractor to manage the tasks that you do not need to take care of yourself.  You’ll find that it is a big help in growing your business as well as building up your team.

Benefits of Hiring a Contractor

When your workload is busy, that’s when you think, “I need to hire someone!” When your business is growing and you feel completely stretched too thin, you definitely  need help. But the right kind of help makes all the difference. 

Take some time to consider what type of help you need. Is it office help, bookkeeping, project management, or administrative work? Develop a list of tasks that need to be done. Now, create a list of skills that are needed to complete the tasks successfully. This is key. If you don’t know the types of skills that it will take to successfully complete the task you won’t know who to hire. 

Here are  a few reasons why an independent contractor can be a benefit:

1. Contractors serve many clients, therefore, they are professionals that know their craft and are well positioned to complete projects successfully. Since they already possess the skills to perform the task, they require minimal training. 

2. Although contractors may cost more per hour, business owners make up the money in several ways. You do not pay tax withholdings, unemployment or workers compensation benefits, sick days, vacation pay, or health benefits.

3. Contractors work when they are needed. Their work schedules are usually very flexible which is an advantage over most on site employees. 

Saving money, building in more flexibility, and acquiring highly qualified workers are some of the benefits of hiring an independent contractor. If you are feeling overwhelmed and know it is time to start delegating tasks, an independent contractor may just be the way to go.

A Simple Way To Be Productive

Being productive is a mindset. There are lots of ways people can be productive. Over the course of my career both in corporate and small business, I’ve learned many methods of keeping on track to meet goals. Some are more effective than others. There is one (rather famous) method that is simple, and if you can shift your mindset, it will enable you to be more productive. 

Steven Covey is quoted as saying, “The challenge is not to manage time, but to manage ourselves.”  We all get the same 24 hours each day, yet some people get more done at the end of the day. Why? Some of us spend our time on distractions and urgent tasks. Said another way, some of us spend too much time on things that are not important. If we spend our time on things that are important, such as planning, preparing, prevention, and relationship building, we can achieve great results both professionally and personally. 

In order to analyze your personal time management, write down the tasks you do on a daily basis for a week. This will give you a clear indication of how you spend your time, what you focus on, and what results you achieve. Now that you know what you’ve been doing all week, get ready to shift your mindset and focus your attention on different tasks. 

Here are Steven Covey’s time management quadrants and some examples to help shift your mindset. 

Quadrant I is made up of short term crises and problems. These are tasks that should be managed. We should spend about 5% of our time on these tasks. Some examples are deadlines, last minute preparations, and true emergencies. 

Quadrant II includes activities we should focus the majority (about 75%) of our time on. The more time we spend  doing these tasks the fewer crises will arise because we are prepared for them.  Some examples are preparation and planning, personal development, relationship development, creating new opportunities, and exercise. 

Quadrant III tasks are things we should avoid. Delegate as much as possible and only spend 15% of your time on these tasks. Some examples are emails, interruptions, and meeting other people’s priorities. These tasks have the appearance of being important but they do not develop or grow you or your business. 

Quadrant IV  includes activities we should limit spending time on. Everyone needs to unplug but we should spend 5% of our time doing it. Some examples are social media, busywork, junk mail, tv, and escape activities. Try to unplug by exercising. It will clear your head, keep you in shape, and you’ll be spending your valuable time doing something productive!

When you spend the majority of your time in Quadrant II, you will be thinking ahead and working on preventative solutions that will minimize the stress of working in an urgent/important environment all the time. A great analogy is a car. If we don’t plan for maintenance, then we will eventually be dealing with a car emergency. Spend time  focusing your priorities, delegate as many tasks as possible, and limit your time wasting activities. You’ll be more productive, less stressed, and have success professionally and personally. 

Are You an Authentic Leader?

Being a leader is not easy and oftentimes it’s downright difficult. It involves making the best decisions with the worst data, being strong and confident when you’re unsure, even  being flexible when your team is rigid. There are so many skills that are needed to be a leader. But what about authentic leadership? What does that entail? Does it even matter?

Yes, it matters. It matters greatly. Being an authentic leader builds legitimacy through honest relationships with your team. It means treating others ethically and fairly, keeping an open mind and valuing input from your team. It means being self aware of your faults and mistakes and taking responsibility. It means giving grace to those who make mistakes and assuring them that it will be ok. Being an authentic leader also requires asking for forgiveness and giving it when needed, asking for honest feedback and appreciating it when it’s given, and treating people with respect and trust. 

Trust...that’s a big issue with many leaders. Trust takes time to build, and it starts during the interview process. The leaders that take their time during the hiring process (which takes discipline) are slowly building trust. If you trust your team, you can create an amazing work environment. You’ll be respected, not feared. You will have a place to pitch ideas and get some honest feedback. Your team will feel confident to pitch their own ideas knowing they won’t get shot down and embarrassed. 

Leading is hard enough, but if you lead authentically and build a culture of trust and confidence with your team you’ll have a team that is productive, happy, and confident. Who wouldn’t want to work in an environment where you can talk to your boss about an idea and know you won’t get laughed at or criticized? As a leader, won’t it be great  not having the pressure to always have the answers and know you have a team of people that will work together to win?

Being an authentic leader is a lot like being a good person. It requires many important characteristics such as being self aware, having integrity and morality, listening to others with empathy, being transparent and honest, sharing success with people, learning from mistakes, forgiving others,  having a purpose and plenty of patience. When you’re open and transparent with your team, you’ll earn their respect and their loyalty. According to an extensive global study, 79% of people who quit their jobs did so because they did not feel appreciated.* Because the bottom line is, people will be loyal to a company if they feel valued. 

*https://www.octanner.com/content/dam/oc-tanner/documents/global-research/White_Paper_Performance_Accelerated.pdf      

Efficient Work Flows

When you own a business, you do most if not all the work in the beginning. As your business grows, you realize that you need help. You hire new employees, tell them what to do, and move forward. You keep repeating this process as your business grows. As you move forward and grow your business, oftentimes you are just trying to keep up with the growing demands of the business. Your customers and employees all need your attention. It’s so easy to get caught up just trying to keep up, that many things go unnoticed.

As a business owner, one of the hardest tasks is to take a break from working in your business so you can work on your business.If you are going to take your business to the next level, you need to step back, remove yourself from the daily grind, and take some time to ask some important questions: an we be more productive? Am I  working as efficiently as possible? What can we improve? The operations of your business are just as important as anything else, but are often overlooked. 

Analyze how your business processes everything. What’s the process to take an order? What’s the process to communicate to my team? What’s the process to deliver my services? What’s the process to take inventory? What’s the process to collect accounts receivables? Break down every procedure needed to run your company. This is a great opportunity to invite your team to participate. They will be able to contribute valuable insight, and this allows your team to feel included and important.  The analysis will take some time and may seem overwhelming at first but the results are well worth all the effort.  

After you take the time to analyze how you do things, ask how each process can be improved to make it easier to do business. Since your team is actually doing the work, they’ll come up with great ideas for improvement. Get creative and start mapping out all the workflows. Take your time to determine what and how things will work. Be practical. Stay on budget. This exercise is designed  to help your business work more efficiently, not to be impractical or wasteful. 

Create a strategy to implement the new workflows. Delegate the workflows to your team and start using them. Communication, as always, is key. Encourage lots of feedback on what works and what doesn’t. Make adjustments and keep communicating until the workflow is efficient. Remember to be flexible. As your business grows, your workflows will change. Give your team incentives to come up with new and innovative ideas to keep your company running as efficiently as possible. 

Once the workflows are established, you’ll have an efficient company that will produce results quickly with less stress and increased productivity. You’ll have built more unity with your team that will promote honesty, trust, and transparency. Your clients will recognize and appreciate the ease of doing business with you. It’s possible to be intentional about your business and create an environment that is a pleasure to work in and do business with. It’s your business. Have a vision and take action...today. 

A Simple Marketing Strategy

To some, marketing a business comes easy. To others, not so much. I fall into the not so much category. I can write a plan but the execution is a little outside my comfort zone. However, as Roy T. Bennett stated, “Great things don’t come from comfort zones.” -. It is true that the more you do something the better you’ll get, and while I am by no means a marketing guru, I have learned a lot.  I’ve been in the business world for a long time, both in corporate America and in small businesses. Although the marketing strategies are different, the concept of marketing remains the same. Find your ideal clients and sell to them. 

Here are some basic tools to get you started:

1. What service/product are you offering and how is it unique? This sounds simple, and it is, but don’t overlook all that goes into your product/service. For instance, pricing, location, business policies, delivery, manufacturing, etc. all need to be considered

2. Identify your ideal client. Get very specific. For example: Is your client, male, female, or a business? What is your ideal client’s profession? What is their educational background? What do they spend their money on? What do they do in their leisure time? Remember, you can’t market to everyone, so be specific.

3. Develop your elevator pitch. This a short sentence or two (at most) that explains what you do and how it helps your client. Create a solution to their problem.  Here’s an example: We help businesses with bookkeeping, project management, and administrative services which allows our clients to be more efficient and profitable. 

4. Create your platform. It could be a blog, online store, or a website. Choose a platform that plays to your strengths. If writing is one of your talents, then a blog might work perfectly. Websites are becoming easier to manage and could give you an opportunity to create your brand exactly as you want.  Online stores are an option too.  

5. Determine where your ideal client “hangs out.” Wherever your client works or plays, you should show up with a solution to their problem. There are so many ways to reach your client. Networking events, social media, asking for referrals, or sponsoring a local team are all possibilities  Get creative.

Marketing plans can be extensive and very detailed. These are just a few ideas to get you started. Whatever you create will not be perfect. That’s okay. When you start to execute your plan, you’ll need to make adjustments. That’s okay. You won’t have all the answers, and that’s okay too. What’s not okay is not taking action. So get started, make a plan, and take action…. today.