The following 33 Business Insights are based on wide experience as a business owner, advisor and coach working with business leaders . Facilitating business workshops for Regional Business in Victoria and as chair of two monthly business groups in rural Victoria and regional cities who come together in a confidential forum to share business issues and experiences.
Having owned and operated a food and beverage company over a fifteen year period from start-up to its eventual sale, Bill experienced many highs and lows associated with a fast growing business that required careful cash flow techniques and performance monitoring. Bill sold his business and now acknowledges that as a sole owner, external advice was missing.
Note: This publication is Copyright Village Green Enterprises Pty Ltd 2023
Having owned and operated a food and beverage company over a fifteen year period from start-up to its eventual sale, Bill experienced many highs and lows associated with a fast growing business that required careful cash flow techniques and performance monitoring. Bill sold his business and now acknowledges that as a sole owner, external advice was missing.
Note: This publication is Copyright Village Green Enterprises Pty Ltd 2023
INSIGHT No 1 HAVE A CLEAR VISION FOR THE FUTURE
If your staff were interviewed and asked to explain what your vision for the future looked like, how many different versions would you hear? The answers a few year ago would be very confusing given the business activity rollercoaster with COVID-19 lockdowns.
Many small to medium operators suffered reduced or zero cash flow due to a lack of income as customers were required to stay home and there no consistency in staying open.
As the economy recovers and will slowly rebuild beyond 2024, visioning, research and planning is important.
Make sure you are able to communicate the problems you are solving for clients,
Would you hop on a train or bus if you didn't know where it was going. So, how do you expect your business and its key drivers, your people, to follow you if they don't know where your business in heading?
It's essential to create a vivid picture or vision of what you want the future to look like and make sure everyone around you can see the same image and are motivated to work with you in collaboration to get there.
If you cannot do this, then you will waste a lot of time, effort and money and eventually, you may not survive.
If your staff were interviewed and asked to explain what your vision for the future looked like, how many different versions would you hear? The answers a few year ago would be very confusing given the business activity rollercoaster with COVID-19 lockdowns.
Many small to medium operators suffered reduced or zero cash flow due to a lack of income as customers were required to stay home and there no consistency in staying open.
As the economy recovers and will slowly rebuild beyond 2024, visioning, research and planning is important.
Make sure you are able to communicate the problems you are solving for clients,
Would you hop on a train or bus if you didn't know where it was going. So, how do you expect your business and its key drivers, your people, to follow you if they don't know where your business in heading?
It's essential to create a vivid picture or vision of what you want the future to look like and make sure everyone around you can see the same image and are motivated to work with you in collaboration to get there.
If you cannot do this, then you will waste a lot of time, effort and money and eventually, you may not survive.
INSIGHT No 2 ENGAGE, TRAIN, DEVELOP AND COMMUNICATE WITH YOUR EMPLOYEES
Don't think that people have left their brains at home just because they have come to work.
I often see business owners treating their staff as if they are adolescents. This is especially so in family business where the second generation are employed.
Outside their work place your employees manage families, sit on local committees, help others in the community, offer opinions and advice to friends and are not afraid to state their opinion.
Find a way whereby you can harness that knowledge, attitude, enthusiasm and experience to ensure that their input at work is meaningful and productive for everyone. Make sure you are hearing what they are saying and not just listening.
With many working from home since COVID, it's likely some future employees will work both at home and at the office in rotation.
You need a communication strategy that ensures your method of communication is not a 'One size fits all' and is delivered in a way to meet the diversity of how employees take in information within your workplace.
Don't think that people have left their brains at home just because they have come to work.
I often see business owners treating their staff as if they are adolescents. This is especially so in family business where the second generation are employed.
Outside their work place your employees manage families, sit on local committees, help others in the community, offer opinions and advice to friends and are not afraid to state their opinion.
Find a way whereby you can harness that knowledge, attitude, enthusiasm and experience to ensure that their input at work is meaningful and productive for everyone. Make sure you are hearing what they are saying and not just listening.
With many working from home since COVID, it's likely some future employees will work both at home and at the office in rotation.
You need a communication strategy that ensures your method of communication is not a 'One size fits all' and is delivered in a way to meet the diversity of how employees take in information within your workplace.
INSIGHT No 3 UNDERSTAND YOUR ADVANTAGE OVER YOUR COMPETITION
Differentiate or die.
If you really want to succeed in the existing competitive market, separate yourself from the crowd and rise above your competition.
You must have a demonstrable difference in the way you make your clients feel about your business.
What is the most compelling reason a buyer should favour you over your competitors?
A sustainable competitive advantage is when you have a unique advantage that enables a business to outperform its competitors in the long term. It is a set of attributes, resources, or capabilities that allow a business to differentiate itself from its competitors and create value for customers.
To be sustainable, a competitive advantage should be durable, meaning that it should not be easily replicated by competitors. It should also be relevant, meaning that it should be valuable to customers and meet their needs better than competing products or services. Finally, it should be difficult to imitate, meaning that competitors should not be able to easily copy or reproduce the advantage.
Examples of sustainable competitive advantages include:
Brand recognition: A strong brand will create customer loyalty and will distinguish a business from its competitors.
Consistent and outstanding customer service through well-trained, motivated and satisfied employees.
Unique expertise: A business that possesses unique skills, knowledge, or technology can provide superior products or services to customers.
Creative and powerful marketing: A business that benefits from strong marketing, such as social media platforms or online marketplaces, can create a strong network of users that is difficult for competitors to replicate.
Overall, a sustainable competitive advantage is crucial for a business's long-term success, and it requires a combination of strategic planning, innovation, great people and execution.
Once you have identified your sustainable competitive advantage (SCA), ensure that everyone understands it. Your SCA must be your number one marketing message in showing how you meet your customer's needs. Finally, make sure you can sustain it.
Differentiate or die.
If you really want to succeed in the existing competitive market, separate yourself from the crowd and rise above your competition.
You must have a demonstrable difference in the way you make your clients feel about your business.
What is the most compelling reason a buyer should favour you over your competitors?
A sustainable competitive advantage is when you have a unique advantage that enables a business to outperform its competitors in the long term. It is a set of attributes, resources, or capabilities that allow a business to differentiate itself from its competitors and create value for customers.
To be sustainable, a competitive advantage should be durable, meaning that it should not be easily replicated by competitors. It should also be relevant, meaning that it should be valuable to customers and meet their needs better than competing products or services. Finally, it should be difficult to imitate, meaning that competitors should not be able to easily copy or reproduce the advantage.
Examples of sustainable competitive advantages include:
Brand recognition: A strong brand will create customer loyalty and will distinguish a business from its competitors.
Consistent and outstanding customer service through well-trained, motivated and satisfied employees.
Unique expertise: A business that possesses unique skills, knowledge, or technology can provide superior products or services to customers.
Creative and powerful marketing: A business that benefits from strong marketing, such as social media platforms or online marketplaces, can create a strong network of users that is difficult for competitors to replicate.
Overall, a sustainable competitive advantage is crucial for a business's long-term success, and it requires a combination of strategic planning, innovation, great people and execution.
Once you have identified your sustainable competitive advantage (SCA), ensure that everyone understands it. Your SCA must be your number one marketing message in showing how you meet your customer's needs. Finally, make sure you can sustain it.
INSIGHT No 4 UNDERSTAND YOUR CASH FLOW, REVIEW MONTHLY AND IMPLEMENT A TWELVE MONTH BUDGET
Cash is the lifeblood of any business. During COVID it has also been shown how important it is to have a pool of working capital.
In the future there will be no value in growing your business, showing a healthy profit on the books and not having any money in the bank to pay the bills. If you don't have the systems in place to forecast your cash flow over the next three to six months your are, in effect, flying blind.
After people management, cash flow management is the most important daily, weekly, monthly task you must master. If you are unsure how to manage your cash flow properly, seek outside advice.
Cash flow is essential for privately owned businesses because it reflects the amount of money coming in and going out of a business over a period of time. It measures the liquidity of the company, or its ability to pay its bills on time and continue operations.
Why cash flow is critical for businesses:
Paying bills and expenses: Cash flow enables small business owners to pay their bills and expenses on time. When a company has positive cash flow, it can pay its bills, rent, salaries, and other expenses on time, which is essential for maintaining positive relationships with vendors, employees, and lenders.
Planning for the future: Cash flow projections help business owners to plan for the future. By knowing the company's future cash needs, they can plan for investments, expansion, and hiring new employees.
Managing unexpected expenses: Positive cash flow provides a cushion for unexpected expenses, such as repairs, equipment replacements, or natural disasters. Having a strong cash flow position allows business owners to weather these unexpected events without harming their long-term financial health.
Meeting loan obligations: When a business takes out a loan, it needs to make timely payments to the lender. Cash flow enables the business to make these payments on time, avoiding late fees and penalties.
Overall, managing cash flow is essential for businesses owners to maintain financial stability, meet their obligations, and plan for growth.
Cash is the lifeblood of any business. During COVID it has also been shown how important it is to have a pool of working capital.
In the future there will be no value in growing your business, showing a healthy profit on the books and not having any money in the bank to pay the bills. If you don't have the systems in place to forecast your cash flow over the next three to six months your are, in effect, flying blind.
After people management, cash flow management is the most important daily, weekly, monthly task you must master. If you are unsure how to manage your cash flow properly, seek outside advice.
Cash flow is essential for privately owned businesses because it reflects the amount of money coming in and going out of a business over a period of time. It measures the liquidity of the company, or its ability to pay its bills on time and continue operations.
Why cash flow is critical for businesses:
Paying bills and expenses: Cash flow enables small business owners to pay their bills and expenses on time. When a company has positive cash flow, it can pay its bills, rent, salaries, and other expenses on time, which is essential for maintaining positive relationships with vendors, employees, and lenders.
Planning for the future: Cash flow projections help business owners to plan for the future. By knowing the company's future cash needs, they can plan for investments, expansion, and hiring new employees.
Managing unexpected expenses: Positive cash flow provides a cushion for unexpected expenses, such as repairs, equipment replacements, or natural disasters. Having a strong cash flow position allows business owners to weather these unexpected events without harming their long-term financial health.
Meeting loan obligations: When a business takes out a loan, it needs to make timely payments to the lender. Cash flow enables the business to make these payments on time, avoiding late fees and penalties.
Overall, managing cash flow is essential for businesses owners to maintain financial stability, meet their obligations, and plan for growth.
INSIGHT No 5 LOOK TO INCREASE SALES AND SERVICE TO CURRENT CUSTOMERS
Don't forget about existing and past customers. Reconnect and stay in touch with them on a regular basis. Develop a customer contact strategy and ensure your staff understand the importance of this. Don't give your customers a reason to drift to your competitors.
There are obvious benefits to customer retention.
Cost-effectiveness: Acquiring new customers can be expensive, as it often involves marketing and advertising costs. On the other hand, retaining existing customers is generally more cost-effective, as you have already invested in building a relationship with them.
Increased revenue: Existing customers are more likely to purchase from you again than new customers. They already trust your brand and are familiar with your products or services, which makes them more likely to make repeat purchases. This can lead to increased revenue for your business.
Brand advocacy: Satisfied customers are likely to recommend your business to others, which can help attract new customers. This can help you grow your customer base without spending as much on marketing and advertising.
Competitive advantage: If you can retain your existing customers and build a loyal customer base, it can give you a competitive advantage over other businesses in your industry.
Overall, retaining existing customers is important for the long-term success of any business. By providing excellent customer service, delivering high-quality products or services, and building strong relationships with your customers, you can increase customer loyalty and ultimately drive business growth.
Studies show that it costs many more dollars to gain a new customer than it does to keep an existing one. Many businesses I have met over time have customer data or files of customer and records that are just sitting in your system.
Do you understand the lifetime value of an existing customer? There are many great software programs that can assist in customer data and contact plans and you should be implementing one.
INSIGHT No 6 HAVE THE RIGHT BALANCE IN YOUR LIFE TO SUIT YOUR PERSONALITY
Only you can make the decision to make a change. I have know many business owners who think it's a badge of honour when declaring that holidays are something that other people do. Or, they have poor time management and think that only they can run the business and must be there all the time.
Achieving a work-life balance can be a challenging task, but it is essential to maintain overall well-being and satisfaction in life.
Prioritize: Identify your priorities and focus on them. Determine what matters most to you in your work and personal life and allocate time and energy accordingly.
Set Boundaries: Set clear boundaries between work and personal life. Decide on a work schedule and stick to it. Try to lessen checking work emails or taking work calls outside of your designated work hours.
Learn to say No: It's important to learn to say no when you feel overwhelmed or stretched too thin. Be assertive and communicate your limitations to others.
Take Breaks: Taking breaks is crucial to maintaining productivity and avoiding burnout. Step away from work every now and then, take a walk, or engage in an activity that relaxes you. If you cannot take a break because you think the business will suffer. You have a real problem.
Engage in Hobbies: Engage in activities outside of work that you enjoy. Hobbies like reading, painting, or playing sports can help you unwind and take your mind off work.
Spend Time with Family and Friends: It's essential to prioritize spending time with loved ones. Make plans with family and friends and engage in activities that you all enjoy. Too many marriages fail due to excessive time spent in your business.
Practice Self-Care: Take care of your physical and emotional health. Exercise regularly, eat healthily, and get enough sleep. Practice mindfulness or meditation to reduce stress. Get a full medical check on a regular basis. You would not let your car go without servicing. So why do you neglect your own health checks?Remember, work-life balance is unique to each person. It's essential to find what works for you and make adjustments as necessary to maintain balance and well-being.
Family time, mixing with friends, going out with others, reading, exercise, fishing, doing nothing in a deck chair, going to events, or what ever it is you should do. Do it !
One day you will wake up and wonder where your children and family went and you have become lonely wishing your life away.
Your business will benefit if you are in sound mind and enjoy a healthy body.
INSIGHT No 7 CREATE OR REVISIT YOUR BUSINESS PLAN
A leading Australian bank has research stating that, on average, businesses with a working business plan achieved 63% higher revenue growth, 58% higher profit and had 21% higher awareness of their business than those who don't have a plan.
Not taking time to plan your future business success is like making a movie without a script or building a house without a set of plans. There is a lot of guesswork, a lot of risk, and a lot of wasted time and money.
Business plans now need to be on shorter time frames. The COVID experience means we must be flexible and and measure often.
It might be wise to set your long term future vision say 3-5 years out.
However, until we know what the commercial world will be toward the end of 2024/25, reset your plans every six months but still have the longer term end goal in place.
Overall, a business plan is a critical tool for any business owner, regardless of the size or stage of their business. It helps provide direction, secure funding, identify potential challenges, set benchmarks for success, and improve decision-making.
Set your vision and a plan provides direction:
A business plan outlines the goals, objectives, and strategies of the business. It provides a roadmap for the business owner to follow, enabling them to make decisions that align with the overall direction of the business. It sets targets that can be reviewed often.
Helps secure funding:
If you are going to a bank for finance, business plans are often required by investors, lenders, and other sources of funding. Having a well-prepared business plan can help attract potential investors and lenders, increasing the chances of securing funding.
Identifies potential challenges: A business plan allows business owners to identify potential challenges and risks, and develop strategies to address them. This can help mitigate risks and increase the likelihood of success.
Conducting a SWOT analysis is critical in understanding your strengths.
Sets benchmarks for success: A business plan includes financial projections and other metrics that can be used to measure the success of the business. This can help business owners track progress and make adjustments as needed.
Improves decision-making: By having a clear understanding of the business's goals, strategies, and potential challenges, business owners can make better decisions that are aligned with the long-term success of the business.
INSIGHT No 8 EMBRACE INFORMATION AND COMMUNICATION TECHNOLOGY
First there was the wheel, then carving letters on stone, then writing on parchment, then the printing press and now the internet. Then, along came COIVID-19. It advanced the need for all business to pivot and embrace technology as a key business enabler.
Those who have embraced the internet and technology as key marketing and communication strategies are racing ahead of their competitors. There are many success stories where businesses are using the internet to increase sales, improve productivity, streamline operations and keep in contact with existing customers. The majority of business owners have now accepted that technology and the smart use of data can make things easier, faster, and more effective.
Yet, a small percentage actually have a formal internet strategy to drive growth.
Young employees and the next generation of consumers use the internet automatically to organise their work and personal lives. It is essential you get to understand how to embrace and use social media to communicate with and market your business. While you are sitting there wondering what to do be aware that a competitor is already doing it and gaining an advantage.
Now in 2024 it's important that businesses should embrace AI (Artificial Intelligence):
Enhanced Efficiency and Productivity: AI technologies can automate repetitive tasks, freeing up valuable time for small business owners and employees. It can handle routine activities like data entry, customer support, and inventory management, allowing the workforce to focus on more strategic and creative tasks that require human expertise. This increased efficiency leads to higher productivity and cost savings.
Improved Customer Experience: AI-powered chatbots and virtual assistants can provide instant and personalized customer support, available 24/7. They can address customer inquiries, offer product recommendations, and even process orders. By leveraging AI, small businesses can deliver better customer experiences, increase customer satisfaction, and build long-term relationships.
Data-Driven Decision Making: AI can analyze vast amounts of data quickly and derive valuable insights. Small businesses can use AI algorithms to gain a deeper understanding of customer preferences, market trends, and competitive landscapes. This data-driven approach helps in making informed decisions about pricing, marketing strategies, inventory management, and product development, ultimately leading to better business outcomes.
Enhanced Marketing and Sales: AI enables small businesses to optimize their marketing and sales efforts. Machine learning algorithms can analyze customer data to identify patterns and predict customer behavior, allowing businesses to tailor their marketing campaigns and offers accordingly. AI-powered recommendation systems can also suggest relevant products or services to customers, increasing sales and improving customer engagement.
Competitive Advantage: Embracing AI technology can give small businesses a competitive edge. By leveraging AI tools that were once accessible only to larger enterprises, small businesses can level the playing field and compete effectively. AI allows them to automate processes, reduce costs, deliver personalized experiences, and make data-driven decisions, which can help them stand out in the market.
Innovation and Adaptability: AI technologies constantly evolve and improve. By embracing AI early on, small businesses can position themselves as innovative and adaptive players in their respective industries. They can explore new opportunities, leverage emerging AI trends, and stay ahead of competitors by integrating AI into their business models.
INSIGHT NO 9 BE ACTIVE ON SOCIAL MEDIA IN THE PROMOTION OF YOUR BUSINESS
There is no benefit in being the best kept secret in town. Sell the benefits of your products and services with passion. Tell potential clients how you can solve their problems. Be pro-active and be different in your marketing.
Develop innovative customer service strategies that keep your customers wondering what great new idea you are coming up with next. It is true that most your sales come from word-of-mouth referrals or now most referrals come through social media channels.
What are you doing to make sure your customers are talking about you ? How can you be a version of the best social media marketing efforts ?
There are several compelling reasons why businesses should use social media:
Increased brand awareness: Social media platforms provide a powerful tool for increasing brand awareness. By creating a presence on social media platforms and regularly posting trusted content, businesses can reach a larger audience and increase their visibility.
Improved customer engagement: Social media platforms allow businesses to engage with their customers in real-time. This can help build stronger relationships with customers, increase customer loyalty, and provide valuable feedback.
Cost-effective marketing: Social media platforms are relatively inexpensive compared to traditional marketing channels. Businesses can use social media to promote their products and services, run targeted ad campaigns, and reach a large audience at a low cost.
Don't just promote posts without conducting due diligence on demographic reach and potential final costs
Increased website traffic: Social media can be used to drive traffic to a business's website. By sharing links to their website on social media, businesses can increase the number of visitors to their site and potentially generate more leads and sales.We do recommend you use an experienced social media marketing expert to get started or to review what you are currently doing.
INSIGHT No 10 CREATE A CONTINUOUS LEARNING ENVIRONMENT
Would you work for someone if you couldn't learn from them ? Would you want a member of your family to work for a business that doesn't teach them anything new or make them a better person or employee ? So, what are your employees learning from you and your business ? Make it a personal challenge to improve the skills of everyone who works in your business. Send them to TAFE part-time, to personal development programs or to Yoga, if that's what they want to do.
You will be repaid many times over.
Continuous learning goals should be built into you personal plans every year:
Personal Growth: Continuous learning allows individuals to expand their knowledge and acquire new skills, fostering personal growth and development. It keeps the mind active and engaged, leading to a greater sense of fulfillment and satisfaction.
Adaptability: In today's rapidly evolving world, where technology, industries, and job requirements are constantly changing, the ability to adapt is crucial. Continuous learning enables individuals to stay relevant and agile, making it easier to navigate through career transitions or changes in the professional landscape.
Innovation and Creativity: Learning new things sparks creativity and fosters innovation. By exposing ourselves to diverse ideas, perspectives, and knowledge, we can generate fresh insights and ideas that can lead to breakthroughs and improvements in various aspects of life.
Problem-Solving: Continuous learning equips individuals with a broader set of tools and knowledge to tackle challenges and solve problems effectively. It enhances critical thinking skills, enables individuals to see problems from different angles, and provides them with a wider range of solutions to draw upon.
Personal Resilience: Learning new skills and acquiring knowledge builds personal resilience. It cultivates a growth mindset, which is the belief that abilities and intelligence can be developed through effort and learning. This mindset helps individuals embrace challenges, persevere in the face of setbacks, and bounce back from failures.
Improved Well-being: Engaging in continuous learning contributes to overall well-being. Learning stimulates the brain, boosts confidence, and provides a sense of accomplishment. It can also lead to increased self-esteem, improved mental health, and a more positive outlook on life.In summary, continuous learning is important because it promotes personal growth, adaptability, career advancement, innovation, problem-solving, personal resilience, and overall well-being. It enables individuals to thrive in a rapidly changing world and enhances their ability to succeed personally and professionally.
INSIGHT No 11 SET TARGETS, MEASURE AND HOLD PEOPLE ACCOUNTABLE
It's not acceptable to have people working for you if they are not held accountable for their responsibilities. Put systems in place that measures performance and results and bring the team together every month to share the gain or the pain. There has to be a scoreboard as you will never achieve your targets if a few are just going through the motions.
Setting targets for employees in a business is important for several reasons:
Lazer Focus: Targets provide employees with clear objectives and expectations. This clarity helps employees prioritize their tasks, focus on what's important, and align their work with the overall business strategy.
Motivation : Well-defined targets can motivate employees by giving them a sense of purpose and direction. When employees have challenging yet attainable goals to strive for, they are more likely to be engaged, driven, and proactive in their work.
Performance Measurement: Targets enable businesses to measure and evaluate employee performance objectively. By setting specific metrics or milestones, managers can assess progress and identify areas for improvement. This information is valuable for performance appraisals, feedback discussions, and making informed decisions regarding promotions, bonuses, or training opportunities.
Business Improvement: Setting targets encourages employees to constantly improve their skills, knowledge. . As they strive to meet or exceed targets, employees often seek innovative solutions, develop new strategies, and explore better ways of working.
A scoring system by everyone will mean a better result for the whole business.
Build a Score Board: Place the results up around the workplace. It's a team effort that is required for success.
As a last resort, you may need to retrain those players who are not meeting their targets make the tough decision if they are unable to improve.
INSIGHT No 12 LEAD BY EXAMPLE
Employees are watching everything you do.
Give me a business owner to talk to and I can very quickly tell you if they are the one holding the business back. Your staff will set their attitude for the day based on what they perceive your mood to be. You are the leader, you have to win the hearts and minds of those who are going to help you achieve your vision. Whether you like it or not, there is no room for you to in a bad frame of mind or to treat people poorly. They will mimic your attitude, actions and behavior. Maintaining a positive culture is not negotiable.
Leaders by example can do a number of things including:
When leaders set a positive example through their actions, they build trust with their team members. By consistently demonstrating integrity, accountability, and ethical behavior, leaders create an environment of trust and credibility.
Inspiring Others: Leading by example is a powerful way to inspire and motivate others. When leaders embody the values and behaviors they expect from their team, it encourages team members to emulate those qualities and strive for excellence.
Reinforcing Organizational Culture: Leaders play a significant role in shaping the culture of an organization. When they lead by example, they reinforce the desired values, norms, and behaviors that contribute to a healthy and productive work environment.
Promoting Accountability: When leaders hold themselves to the same standards they expect from others, it promotes a sense of accountability throughout the organization. Team members are more likely to take ownership of their actions and responsibilities when they see their leaders doing the same.
Building Cohesion and Unity: Leading by example fosters unity and cohesion within a team or organization. When leaders consistently demonstrate teamwork, collaboration, and respect, it encourages others to work together towards shared goals and objectives.
Facilitating Learning and Development: Leaders who lead by example become role models for their team members. They provide opportunities for learning and development by showcasing effective strategies, problem-solving techniques, and decision-making processes.
Enhancing Communication: Leading by example improves communication within a team. When leaders actively listen, communicate openly, and treat others with respect, it sets the tone for healthy and effective communication throughout the organization. Overall, leading by example is a powerful leadership approach that creates a positive and productive work environment, fosters trust and accountability, and inspires individuals to reach their full potential.
INSIGHT No 13 COMMUNICATE VIA ONE-ON-ONE TO EVERYONE
Most internal disputes are caused by a breakdown in communication. The more you talk to each other, the more you share ideas, the more you create an environment for people to express their opinions, the greater chance you have of developing a culture of respect for each other. I have yet to meet a mind reader in this world so don't ever assume you know what your staff are really thinking. One-on-one meetings allow for focused and direct communication between a manager or business owner and an employee. This setting encourages open dialogue and ensures that both parties understand expectations, goals, and challenge
One-on-one meetings provide an opportunity to build a stronger relationship between managers and employees. By engaging in personal conversations and getting to know each other better, trust and loyalty can be fostered, which can lead to increased employee satisfaction and productivity.
These meetings enable managers to provide personalized feedback and guidance to employees. Managers can address specific strengths and areas for improvement, set goals, and discuss career aspirations. This individual attention can help employees grow professionally and enhance their skills.
One-on-one meetings offer a dedicated space to discuss and resolve any challenges or issues. Employees can express concerns, seek guidance, and work collaboratively with managers to find solutions. This can contribute to a healthier work environment and prevent problems from escalating.
Regular one-on-one meetings demonstrate that the manager values the employee's contribution and wants to invest time in their development. This recognition and attention can improve employee engagement and motivation, leading to higher job satisfaction and retention rates.
Business owners should prepare an agenda, actively listen, provide constructive feedback, and follow up on action items discussed. Additionally, it's crucial to respect employee privacy and maintain confidentiality during these conversations.
INSIGHT No 14 BECOME A PROBLEM SOLVER FOR YOUR CLIENTS
There is no doubt that once you recognise what problems your products or services solve for your clients you can then develop an effective and targeted marketing strategy.
Why would anyone buy from you if they can't see that you can make their business more successful or are able to solve a problem within their business?
Identify the problem, show them how they will be better off because of dealing with your business and finally, tell them how you can fix the problem. Sometimes people don't even understand they have a problem in the first place. Steve Jobs of Apple was the master of innovation as he created products people did not even know they needed and now they cannot live without them.
When a product or service addresses a specific problem or pain point that customers have, it provides them with value. People are more likely to invest in products or services that offer a solution to their problems, as it improves their quality of life, saves time, or enhances their overall experience.
Business success is easier when you have a competitive advantage: Solving a problem in a unique or superior way gives your business a competitive edge. By offering a more effective, efficient, or innovative solution compared to competitors, you differentiate yourself in the market, attract customers, and potentially gain a loyal customer base.
Everyone knows that customer satisfaction and Loyalty are cost effective in keeping clients. When your product or service effectively solves a problem, it leads to greater customer satisfaction. Satisfied customers are more likely to become repeat buyers, refer your business to others, and become loyal advocates for your brand.
Finally, understanding your target audience, conducting market research, and developing solutions that effectively solve their problems are key steps in building a successful and impactful product or service.
It is crucial for a product or service to solve a problem in order to be successful and meet the needs of customers effectively. Here are a few reasons why solving a problem is important.
INSIGHT No 15 NETWORK, GET INVOLVED AND GIVE SOMETHING BACK
By networking I don't mean going to an event and handing out business cards to everyone you meet. Networking is about meeting and connecting with people and sharing ideas and knowledge without expecting anything in return in the short term. If you go about your life with the attitude of adding value to those you meet instead of thinking what you can get out of them, then you will receive something back when you least expect it.
Business owners should get involved in networking for several reasons:
Networking provides a platform for business owners to meet and connect with other professionals, industry experts, potential clients, and suppliers. These connections can lead to mutually beneficial relationships, such as partnerships, collaborations, or mentorship opportunities. Building a robust network can open doors to new business opportunities and valuable resources.
Networking events, conferences, and industry-specific gatherings offer an opportunity to stay updated on the latest trends, innovations, and best practices within your field. By interacting with other business owners and professionals, you can gain insights into market shifts, emerging technologies, and industry developments. This knowledge can help you adapt your business strategies accordingly and stay ahead of the competition. When you build relationships with individuals who are familiar with your industry, they may recommend your products or services to their contacts. Word-of-mouth referrals often carry significant weight and can result in new clients or business partnerships. Our favourite saying is Be Seen Be Read Be Heard.
By engaging in conversations, attending industry events, and participating in networking groups, you can gain insights into the challenges and successes of your peers. Diverse groups of individuals exposes you to different perspectives, ideas, and approaches to business.
You can showcase your expertise, knowledge, and unique value proposition. By actively participating in conversations, sharing insights, and contributing to industry discussions, you can establish yourself as a thought leader and build a positive reputation within your field. This can enhance your brand image and increase trust and credibility among your peers and potential clients.
Overall, networking is a strategic investment of time and effort for business owners. It offers numerous benefits, including expanding your professional connections, staying informed about industry trends, generating referrals and leads, learning from others' experiences, fostering personal and professional growth, and building your reputation and brand.
INSIGHT No 16 STAY ONE STEP AHEAD
I don't know who said "if you want to know the future you have to create it" however it has relevance today in business. It's accepted by many that you must develop a culture of innovation to stay ahead of your competitors. Unless you are a multinational company with a large R&D budget and cash reserves to spend, it is not financially practical to try and force change in buyer habits. The market is about needs and not habits. You must be alert to changing trends. Make it your business to know what the world wide trends are in your industry and use guerilla tactics to gain and advantage. Don't be afraid to adapt ideas that are working elsewhere and try to make them better. Just make sure you don't breach copyright or infringe intellectual property rights. Attend trade shows in Australia and in other countries, read and research what is going on.
Staying one step ahead in business requires a combination of strategic thinking, market awareness, continuous learning, and adaptability. Here are some examples:
Market Research: Stay updated on industry trends, market shifts, and customer preferences through thorough research. Analyze data, monitor competitors, and understand the needs of your target audience to identify opportunities before they become mainstream.
Competitive Analysis: Regularly assess your competitors' strengths, weaknesses, and strategies. Identify their unique selling propositions and areas where you can differentiate yourself. This allows you to proactively develop strategies to outperform them.
Innovation and Creativity: Foster a culture of innovation within your organization. Encourage your team to think outside the box, explore new ideas, and continuously improve your products, services, or business processes. Embrace emerging technologies and disruptive trends that can give you a competitive edge.
Customer Focus: Understand your customers deeply, anticipate their needs, and provide exceptional customer experiences. Listen to customer feedback, conduct surveys, and engage in regular communication to stay in tune with their changing preferences. This enables you to offer tailored solutions and exceed their expectations.
Continuous Learning: Develop a learning and growth mindset and encourage ongoing learning within your organization. Stay updated on industry news, attend workshops, seminars, and webinars, and invest in employee training and development. Embrace new technologies and processes to optimize efficiency and productivity.
Agility, flexibility and Adaptability: In a rapidly changing business environment, the ability to adapt quickly is crucial. Embrace a flexible and agile approach to your business operations. Be open to change, and adjust your strategies and tactics accordingly.
Strategic Planning: Develop a robust strategic plan that aligns with your long-term vision. Regularly review and refine your plan to ensure it remains relevant and responsive to market dynamics. Set clear goals, define key performance indicators (KPIs), and regularly measure your progress against them.
Staying ahead in business is an ongoing process that requires consistent effort, vigilance, and a willingness to embrace change. It's essential to remain adaptable, proactive, and always strive for continuous improvement.
INSIGHT No 17 EMBRACE CHANGE
There is a quote by Albert Einstein that says if you keep doing tomorrow what you do today and expect things to change then you are insane. A real issue in implementing change is convincing your employees that change is necessary and is designed to improve the business overall and ensure that you grow the business for future sustainability.
In any business you will have those who will resist change and will try to sabotage your efforts wanting to go back to way is was before.
There is no room in a business for those who do not to make an effort to improve process on a continuous basis. We live in a fast changing world and you have to be willing and capable of adapting with it.
Embracing change allows businesses to adapt to changing market conditions, new technological systems, and customer preferences. By staying flexible and open to change, businesses can better respond to new opportunities and challenges, remaining competitive in the marketplace.
By embracing change, business owners can foster a culture of creativity and encourage their employees to think outside the box. This can lead to the development of new products, services, and processes, giving the business a competitive edge.
Your customer needs and expectations change over time. Embracing change enables businesses to stay in tune with their customers, anticipate their needs, and provide better products and services.
Change can lead to process improvements and the adoption of new technologies or methodologies that increase productivity and lower costs. This allows businesses to streamline operations, automate and stop outdated practices.
Managing risk is important and often driven by external factors such as market shifts, legislative requirements, or economic conditions. You must anticipate and prepare for changes in advance, reducing the impact on your business operations and profit.
A mindset of continuous change presents opportunities for personal and professional growth. Business owners who embrace change are open to learning new skills, exploring different perspectives, and expanding their knowledge base.
We all know that change is constant. Businesses that resist change risk falling behind their competitors who are more agile and perceptive of the world around them.
Business owners must recognize that change is inevitable and to proactively embrace it as an integral part of their growth strategy. Change leads to long-term success and sustainability in a rapidly changing business landscape.
INSIGHT No 18 SET AND ADJUST YOUR STANDARDS TO A HIGHER LEVEL
The standards you have in your business must be challenged all the time. What your standards are today must be raised as each month or year goes by. Near enough is not good enough and you have to set the bar higher every time you reset your business objectives and the targets . That applies to everyone who works in the business with you. It's the same in sport , we see records being beaten every year. The target has to be challenged all the time and be able to be measured.
Raising your standards in business is crucial for long-term success and growth.
Enhanced Performance: When you set higher standards for yourself and your business, you push yourself to perform at a higher level. By raising the bar, you are more likely to achieve exceptional results and surpass your previous achievements.
Competitive Advantage: In today's competitive business landscape, maintaining a high standard can give you an edge over your competitors. When you consistently deliver superior products or services, you differentiate yourself from others in the market. This can help you price at a premium for quality and choose your business over competitors.
Continuous Improvement: Raising your standards encourages a culture of continuous improvement within your organization. By consistently striving for higher levels of performance, you foster, creativity, and a mindset of we can do better.. This can lead to new ideas, better processes, and better financial returns .
Personal and Professional Development: Aiming for higher standards in business often requires personal and professional growth. It pushes you out of your comfort zone and encourages you to acquire new skills and develop new strategies.
Attracting and Retaining Talented Employees: A business that maintains high standards is more likely to attract top talent. Talented individuals are often motivated by challenging work environments where they can contribute their skills and expertise. You create an environment that attracts and retains high-performing employees.
By setting high expectations, you motivate yourself and your team to strive for excellence, deliver much better results, and maintain your competitive advantage in the market.
4
INSIGHT No 19 THE ECONOMY ALWAYS GOES IN CYCLES
In business, history has proven that what goes up usually comes down and vice versa. In 2023/2024 there seems to be consensus that we are not seeing a rebound in activity and consumer spending of the last year. One big difference now will be the impact of technology and the internet .
Now external forces are a factor such as inflations, higher interest rates supply chain problems and other world wide events.
We have survived through the low times over the last thirty years and have always seen a recovery. You should keep your longer term vision in mind and be able to change your business strategy more often to ensure you can ride out the dips along the way and be able to adjust your operation when times require different thinking and actions. Never assume that that your business will be the same in the future or you will be left behind.
In my lifetime, I have lived through the economy through cycles of expansion and contraction. These cycles are always characterized by periods of economic growth, followed by periods of recession or slowdown, and then a recovery phase leading back to another period of growth. It is a complex and dynamic process that can be affected by both internal and external factors.
In my hard earned experience covering boom and bust times I have seen:
Expansion: This is a phase of increasing economic activity characterized by rising GDP, low unemployment rates, high consumer spending, and strong business profits. During this time, business owners tend to spend more and expand their operations.
Peak: The peak represents the highest point of economic growth in a cycle. It is characterized by high economic indicators such as full employment, and business profits. As we have seen in 2024, inflationary pressures starts to build up, and the economy may be operating close to its full capacity.
Contraction or Recession: After boom times, the economy enters a phase of contraction or recession. This is characterized by a decline in economic activity, rising unemployment, reduced consumer spending, and declining business profits. It is a period of economic slowdown and negative growth.
The Bottom: The bottom of the cycle represents the lowest point of the economic cycle. It is where economic activity bottoms out, and the recession starts to come to an end. During this phase, the economy is usually operating below its potential, and there may be excess capacity in the labor market. Many business owners will struggle with cash flow , sales and survival.
Recovery: Following the low point, history shows the economy always enters recovery. It is characterized by increasing economic activity, rising GDP, declining unemployment, and improving business conditions. This phase marks the transition from recession to expansion, leading back to the start of a new cycle.
Be Prepared : As shown during COVID, when many SMEs could not meet ongoing expenses and lockdowns, if your business is living from month to month and the bills keep coming, you must have some back up of cash reserves at all times. Now in 2023, review every cost you have in your business and take a frugal approach to everything you do.
INSIGHT No 19 THE ECONOMY ALWAYS GOES IN CYCLES
In business, history has proven that what goes up usually comes down and vice versa. In 2023/2024 there seems to be consensus that we are not seeing a rebound in activity and consumer spending of the last year. One big difference now will be the impact of technology and the internet .
Now external forces are a factor such as inflations, higher interest rates supply chain problems and other world wide events.
We have survived through the low times over the last thirty years and have always seen a recovery. You should keep your longer term vision in mind and be able to change your business strategy more often to ensure you can ride out the dips along the way and be able to adjust your operation when times require different thinking and actions. Never assume that that your business will be the same in the future or you will be left behind.
In my lifetime, I have lived through the economy through cycles of expansion and contraction. These cycles are always characterized by periods of economic growth, followed by periods of recession or slowdown, and then a recovery phase leading back to another period of growth. It is a complex and dynamic process that can be affected by both internal and external factors.
In my hard earned experience covering boom and bust times I have seen:
Expansion: This is a phase of increasing economic activity characterized by rising GDP, low unemployment rates, high consumer spending, and strong business profits. During this time, business owners tend to spend more and expand their operations.
Peak: The peak represents the highest point of economic growth in a cycle. It is characterized by high economic indicators such as full employment, and business profits. As we have seen in 2024, inflationary pressures starts to build up, and the economy may be operating close to its full capacity.
Contraction or Recession: After boom times, the economy enters a phase of contraction or recession. This is characterized by a decline in economic activity, rising unemployment, reduced consumer spending, and declining business profits. It is a period of economic slowdown and negative growth.
The Bottom: The bottom of the cycle represents the lowest point of the economic cycle. It is where economic activity bottoms out, and the recession starts to come to an end. During this phase, the economy is usually operating below its potential, and there may be excess capacity in the labor market. Many business owners will struggle with cash flow , sales and survival.
Recovery: Following the low point, history shows the economy always enters recovery. It is characterized by increasing economic activity, rising GDP, declining unemployment, and improving business conditions. This phase marks the transition from recession to expansion, leading back to the start of a new cycle.
Be Prepared : As shown during COVID, when many SMEs could not meet ongoing expenses and lockdowns, if your business is living from month to month and the bills keep coming, you must have some back up of cash reserves at all times. Now in 2023, review every cost you have in your business and take a frugal approach to everything you do.
INSIGHT No 20 SEEK EXPERT OUTSIDE ADVICE
No one has a mortgage on smart ideas or the knowledge to cover all aspects of their business. Unfortunately many business owners shun outside advice and believe no one knows their business better than they do.
Research from a leading Australian Bank show advisory boards/panel improves business performance Many successful business owners should develop a trusted network of professional contacts who you can use as a confidential sounding board and know you are going to get honest feedback even if it hurts to hear it.
If you are the owner of your company, your obligations and responsibilities under the law are many. Ignorance is no excuse if you are in breach of legal duties.
The two areas of success for me would be having great financial accounting advice and having access to technology expertise and know how use technology to drive your business.
Some benefits of engaging with external expertise are:
Expertise and Experience: External advisors bring specialized knowledge, skills, and experience that may not be available within the business. They can offer valuable insights and strategies based on their expertise in specific areas such as marketing, finance, operations, or human resources. Their external perspective can help identify blind spots and provide innovative solutions to challenges.
Objectivity and Fresh Perspective: External advisors offer an unbiased viewpoint since they are not directly involved in the day-to-day operations of the business. This objectivity allows them to identify strengths, weaknesses, and areas for improvement . They can bring fresh ideas and alternative approaches that may not have been considered internally.
Access to Networks and Resources: Advisors often have extensive networks of professionals and contacts in various industries. They can leverage these networks to connect businesses with potential clients, partners, suppliers, or investors.
Risk Mitigation: External advisors can help identify and mitigate risks that may be overlooked internally.
Flexibility: Small to medium-sized businesses may not have the resources or need to hire full-time specialists in every area. Engaging external advisors allows businesses to access expertise on a project or part-time basis, providing the flexibility to scale up or down as needed.
Personal Development: Working with external advisors can be a valuable learning experience for business owners and employees. They can transfer knowledge and mentor key staff members.
In summary, engaging external advice enables small to medium-sized businesses to gain access to specialized expertise, brings a fresh perspectives, access networks and resources and mitigates risks.
INSIGHT No 21 PROVIDE INNOVATIVE CUSTOMER SERVICE. DON'T EVER LET THEM FORGET YOU
Everyone talks about having superior customer service to be successful in business. What you really need to do is to provide innovative customer service that ensures your customers never have a reason to use your competitors
What are you doing to differentiate your business from your competitors? Get your team involved challenge what you are doing daily, get feedback from customers. Find out what the top performers in your industry are doing and better it. There are many excellent customer related software systems that can make a difference in tracking the data you need to drive sales and interact with people.
Is the attitude in your workplace one where everyone understands what it means to meet your customers' expectations?
how can business offer innovative customer service?
Most know offering innovative customer service is crucial for businesses to stand out in a competitive market and build strong relationships with their customers.
Strategies to challenge you regarding improving customer service:
Embrace technology: Utilize the latest technologies to streamline customer service processes. This can include AI-powered chatbots for instant responses, mobile apps for customer support, and personalized customer portals.
Personalise: Target customer experiences to individual preferences. Obtain data on customer behavior and preferences to offer personalized product recommendations .
Proactive support: See how you can anticipate customer needs and address potential issues before they arise. Use data analytics and customer feedback to identify common pain points and take proactive measures to resolve them.
Omni-channel support: Co-ordinate customer service across various channels, such as phone, email, social media, live chat, and messaging apps. Ensure a seamless experience regardless of the platform customers choose.
Social media engagement: Leverage social media to interact with customers, respond to queries, and handle issues promptly.
Interactive tutorials and guides: Provide interactive guides, video tutorials, and FAQs to help customers troubleshoot issues independently.
Customer feedback: Seek feedback from customers and use it to improve your products and services. Conduct surveys, feedback forms, to understand customer satisfaction levels.
Encourage employees : Train employees to develop a mindset in helping customers. Ongoing training to ensures they have the skills and knowledge to address customer needs .
Augmented Reality (AR) and Virtual Reality (VR): Implement AR/VR solutions for virtual product demonstrations, troubleshooting, or training, providing customers with an interactive experience.
Quick action procedures: Focus on call response and resolution to reducing wait times. People appreciate efficient and effective resolutions to their problems.
Remember, innovative customer service is an ongoing process. Continuously be aware of customer needs and industry trends and be open to changing what you do.
I suggest you might start by reading a book titled The New Gold Standard by J A Michelli in which he talks of legendary customer service.
INSIGHT No 22 DEVELOP ROBUST INTERNAL CONTROL SYSTEMS
Without the right systems in place you have no real hope of building and sustaining reliable business performance.
With all the technology available today, there is no excuse for not knowing what your key numbers are at anytime. Systems allow a business to operate with consistency. By implementing systems for the processes in your business you take a lot of the guess work out of day to day operations that lead to greater efficiently and improved productivity. Although sometimes it's right to trust your gut feel and your intuition I still want to know that I had the right data and numbers to verify the strength of my thinking. The success of franchising all over the world as a business model has been based on having great working systems.
Having robust internal control systems is crucial for businesses for several reasons:
Safeguarding Assets: Internal controls help protect a company's assets, including physical assets like equipment and inventory, as well as intangible assets like intellectual property. By implementing measures that restrict unauthorized access and prevent theft or misuse of assets, a business can avoid significant financial losses.
Preventing Fraud and Errors: Internal controls are designed to detect and prevent fraudulent activities . Fraud can be perpetrated by employees or external parties, and having strong internal controls in place can reduce the likelihood of such incidents occurring.
Accurate Financial Reporting: Internal controls ensure that financial information is in real time, accurate, reliable, and consistent.
Compliance with Laws and Regulations: Businesses owners within a complex web of laws and regulations. Internal controls help ensure that the company complies with these rules, reducing the risk of legal and regulatory violations that could result in fines, penalties, or damage to the organization's reputation.
Risk Management: Internal systems help in identifying and managing various risks. By identifying potential risks early on, companies can take proactive measures to mitigate them and avoid potential disasters.
Protection of Information: It's vital to protect sensitive and confidential information from unauthorized access, ensuring data privacy and data security.
Trust and Confidence: Strong internal control systems enhance the trust and confidence of stakeholders, customers, and business partners. When stakeholders have trust in the company's operations, they are more likely to invest, purchase products or services, and engage in business relationships.
Preventing Conflicts of Interest: Strong controls can help identify and manage conflicts of interest within an organization. This ensures that employees act in the best interest of the company rather than personal gain.
INSIGHT No 23 ASK FOR REFERRALS
To harness the power of referrals, businesses can implement referral programs, offer incentives to customers who refer others, and ensure exceptional customer experiences to encourage organic word-of-mouth marketing.
The most valued and easiest customers that you can get in the world are those who come via referrals. Referrals are the result of satisfying and meeting the expectations of your existing customers. Referrals cost very little, all you have to do is ask those you deal with and they will do the introduction work for you. I have never meet a person who is comfortable with cold calling. Referrals are developed through trusting relationships and building rapport within your networks and database.
Don't forget to thank those who provide the referral.
Here are some key reasons why referrals are important for businesses:
Trust and Credibility: Referrals come from satisfied customers who have firsthand experience with your products or services. When people receive a recommendation from someone they trust, it builds credibility . Potential customers are more likely to trust the word of a friend or colleague than traditional marketing messages.
Higher Conversion: Referred customers tend to have higher conversion rates than leads generated through other means. Since they already have a positive impression of your business, they are more likely to become paying customers.
Cost-Effective Marketing: Referral marketing is often more cost-effective than traditional advertising or marketing campaigns. You're leveraging your existing customer base to spread the word about your business
Increased Customer Lifetime Value: Referred customers have a higher potential for loyalty and repeat business. They have a stronger connection to your business from the start, leading to longer-lasting relationships and increased customer lifetime value.
Expansion of Network: Referrals can introduce your business to new networks and markets that you might not have been able to tap into otherwise. This can lead to new opportunities for growth and diversification.
Positive Brand Association: When customers refer others to your business, they are essentially endorsing your brand.
Competitive Advantage: If your business consistently receives positive referrals, it can create a competitive advantage. Prospective customers are more likely to choose a business that has a strong track record of satisfying customers.
INSIGHT No 24 BE READ
Everyone has knowledge and business experience that can be shared with others. Start writing articles, develop a blog, contribute to linkedin groups or similar on subject matter that you care about or have a particular expertise in. Trade and industry websites, magazine and local newspapers are always looking for articles that are interest to their readers. Keep a diary or note book of the knowledge locked in your brain and that becomes your own bank of ideas. You will be surprised what will be published and then you can post that on your website as important content.
Why do I make it a habit to read a book every month and articles every week?
Knowledge and Continuous Learning: Books and articles offer a source of knowledge and insights, providing in-depth information on various business topics, from marketing and management to industry trends . Reading helps business owners stay up-to-date with the latest developments and best practices in their field.
Problem Solving: Articles often discuss real-world case studies and practical solutions to common business challenges. By reading about how other businesses have overcome similar obstacles, business owners gain valuable insights and strategies to think about in their own business.
Personal Growth: Reading is a form of personal development. Business owners can gain a broader understanding of many things and various aspects of life. This can contribute to their overall personal growth and make them more well-rounded individuals.
Innovation and Creativity: Reading exposes business owners to diverse ideas and concepts, challenging their creativity and innovative thinking.
Inspiration and Motivation: Reading success stories, biographies, and motivational books can smtimes provide business owners with the inspiration and motivation. Learning about others business owners journeys can instill a sense of resilience and determination.
In summary, reading books and articles is a valuable habit for business owners because it enriches their knowledge, enhances critical thinking skills, fosters personal growth, and equips them with the tools needed to navigate the complexities of the business world.
INSIGHT No 25 BE SEEN, GET OUT AND NETWORK
In this fast-paced world of social media sometimes we might wonder if future generations will know how to interact correctly with each other through face-to-face contact. Could you imagine having a Disney theme park experience through Facebook or Twitter?
Linkedin has proven to be a valuable business information forum for individuals and builds your personal online network. The right social media can be a valuable platform for your clients to interact with you online. In addition, mobile technology is critical as a business medium and will grow even bigger. Business owners should get of their environment and attend business functions, industry association events and seminars. You will surprised who you might meet. On average I would mix with over 100 people every month by going to selected events that are opportunities to learn and to meet new people. You build stronger personal relationships having sat down and had a coffee with someone and when you learn to give more than you take.
Networking is not easy for some people. However, It's a crucial activity for business owners otherwise you may miss:
Opportunity for Business Growth: Networking exposes business owners to potential clients, customers, partners, investors, and collaborators.
Exposure to Ideas and Knowledge: Networking events bring together individuals from diverse backgrounds and industries. This provides business owners with an opportunity to exchange ideas, share insights, and gain knowledge from others' experiences.
Building Peer Group Support : Owning and running a business can be challenging and isolating at times. Networking allows business owners to connect with like-minded individuals who understand the challenges they face.
Don't be invisible. Work on Your Visibility and Credibility: Being active in networking events can increase a business owner's visibility in their industry or community. This can contribute to building credibility and a positive reputation.
Staying Informed About Industry Trends: Sometimes working events allows business owners to stay updated on the latest industry trends,
Learning from Others' Mistakes and Successes: Networking provides opportunities for business owners to learn from others' experiences. Hearing about challenges, failures, and success stories can provide valuable insights that help replicate successful strategies.
Personal Growth and Self Confidence: Networking encourages business owners to step out of their comfort zones, improve their communication skills, and develop their interpersonal skills.
Networking is not just about handing out business cards; it's about building meaningful relationships, learning from others, accessing resources, and helping you build a better business.
INSIGHT No 26 BE HEARD
Most people are terrified of speaking in public and it is known to be one of the greatest personal fears in life. We all like to listen to presenters who are interesting and who can tell a good story to get their point across. If you have to present and are afraid, go and get some coaching. Enroll in a course on public speaking and be the first to offer yourself at industry conferences and local business events. Practice and then practice some more. Being able to present in public builds your reputation and that of your company.
Look into starting a podcast and becoming a recognised authority or become a SME. Subject Matter Expert. We have successfully launched a Podcast interviewing private business owners and the response has been better than we expected. We are being noticed and meeting new contacts all the time.
Speaking in public about their area of expertise can offer numerous benefits to business owners.
Establishing Authority: Public speaking allows business owners to show their knowledge and expertise in their field. You become a SME Subject Matter Expert. This helps establish yourself as credible and trustworthy authority, which can lead to increased respect and recognition within industry.
Building a Personal Brand: When business owners consistently speak about their area of expertise, they create a strong personal brand. This can lead to increased visibility, opportunities for collaborations, and media coverage. People will seek you out.
Potential to Generating Leads: Speaking engagements can attract potential customers who are interested in the topic being discussed. These attendees are likely to be more receptive to the business owner's products or services, potentially resulting in new leads and sales.
Increased Exposure: Speaking in public can expose a business owner and their brand to a wider audience. This exposure can lead to mentions in the media, invitations to other speaking engagements, and even invitations to participate in podcasts or interviews.
Content Creation for other channels: Speaking engagements often require preparing presentations or speeches. Your content can be repurposed into blog posts, articles, social media updates, or even e-books, providing valuable material for content marketing.
Enables Differentiation from Competitors: When a business owner is known for their public speaking, it sets them apart from competitors.
Cultivating Thought Leadership: Regularly speaking about a specific topic allows business owners to develop a reputation as thought leaders in their industry. This can lead to invitations to participate in panels and conferences.
As a Leader you make a Positive Impact on Company Culture: Employees often take pride in working for a company led by individuals who are respected and recognized within their field.
Find a person who can coach you on speaking in public. In our experience, it came through practice and lots of presenting. You have to take the first step and then you are on your way.
j
INSIGHT No 27 ENGAGE WITH AN EXTERNAL ADVISOR OR MENTOR
I don't know anyone who achieved real success working on their own. You need to seek out someone who is outside your own circle of friends and who has a broad range of business and life experience.
We all need a person with whom we can share our issues and who can offer pragmatic feedback, both positive and negative. Someone who has no emotional ties. You have to be prepared to listen and consider the option offered.
Objective perspective: A good advisor/mentor is not there to tell you what to do but to challenge your thinking and the strategy you are following. It's an opportunity to benefit from their experience, knowledge and wisdom. They will help you see challenges and opportunities more, clearly.
They have extensive networks: No one has a mortgage on good ideas. An experienced advisor can connect you to people who can help you in areas where you own knowledge is limited.
Help with focusing on your core business: Business owners are often trying to be all things to all people. You need someone who can ensure you stay on task. Someone who can help you mange your time and not get distracted.
INSIGHT No 27 ENGAGE WITH AN EXTERNAL ADVISOR OR MENTOR
I don't know anyone who achieved real success working on their own. You need to seek out someone who is outside your own circle of friends and who has a broad range of business and life experience.
We all need a person with whom we can share our issues and who can offer pragmatic feedback, both positive and negative. Someone who has no emotional ties. You have to be prepared to listen and consider the option offered.
Objective perspective: A good advisor/mentor is not there to tell you what to do but to challenge your thinking and the strategy you are following. It's an opportunity to benefit from their experience, knowledge and wisdom. They will help you see challenges and opportunities more, clearly.
They have extensive networks: No one has a mortgage on good ideas. An experienced advisor can connect you to people who can help you in areas where you own knowledge is limited.
Help with focusing on your core business: Business owners are often trying to be all things to all people. You need someone who can ensure you stay on task. Someone who can help you mange your time and not get distracted.
INSIGHT No 28 GET IT IN WRITING
Unfortunately in today's business world the word trust and integrity are no longer something that can be taken for granted. They usually go out the door when money is involved. I does not matter how well you know someone or if they are related to you, get it in writing. The days of the handshake deal are gone. There is always a lawyer or such who is only too willing to advise people to take legal action when someone does the wrong thing by you.
Business owners should get agreements in writing for several key reasons:
Unfortunately in today's business world the word trust and integrity are no longer something that can be taken for granted. They usually go out the door when money is involved. I does not matter how well you know someone or if they are related to you, get it in writing. The days of the handshake deal are gone. There is always a lawyer or such who is only too willing to advise people to take legal action when someone does the wrong thing by you.
Business owners should get agreements in writing for several key reasons:
- Clarity: Written agreements clearly outline the terms, responsibilities, and expectations of all parties involved, reducing misunderstandings.
- Legal Protection: A written contract serves as a legal document that can be enforced in court if disputes arise.
- Record Keeping: It provides a permanent record of the terms agreed upon, which can be referenced later if needed.
- Professionalism: Having written agreements conveys professionalism and commitment to the business relationship.
- Risk Management: Written agreements can help mitigate risks by clearly defining what happens in case of non-compliance or other issues.
- Negotiation Tool: They provide a framework for negotiation and can help in resolving conflicts by referring back to the agreed-upon terms.
INSIGHT No 29 TRAVEL - ATTEND TRADE SHOWS
Travel frequently and observe what is happening in the world in your market segment. Attend trade shows and, if possible international exhibitions. Get out and about and talk to people at these events. You will be surprised at what you will learn and how much people are willing to share. Talk to State and Federal Governments and find out what assistance is available and look at going on trade missions. Australia is a very small market place. If you get a chance make sure you send your staff to trade shows as well.
Traveling to trade shows in Australia and overseas can offer several benefits to businesses owners, including:
- See Opportunities for Market Expansion: Exploring new markets can lead to increased sales opportunities and customer bases.
- Networking: Building relationships with other businesses owners, suppliers, and customers can open doors for collaboration and support and sharing ideas
- Cultural Insights: Understanding different cultures can enhance marketing strategies and product offerings to better meet local needs.
- Innovation and Inspiration: Exposure to new ideas, technologies, and business practices can spark innovation within the business.
- Brand Exposure: Participating in international trade shows or conferences can elevate brand visibility and reputation.
- Learning Opportunities: Gaining knowledge about global best practices and operational efficiencies can improve business processes.
INSIGHT No 30 MAKE A WILL AND HAVE PARTNERSHIP AGREEMENTS
I know from first hand experience that the old saying " where there is a will there is a relative " is very true. I have seen sudden death in families cause great hardship in family business when there is no clear will or succession plan in place. Too many times it means that the business has to be sold. I cannot believe how many business owners I meet who do not have an up-to-date will.
A break up in a marriage often is a cause of angst with business partners and results in the lawyers doing very well out of the mess. The right time to put a partnership buy and sell agreement in place is when you start the business. If you die suddenly what agreements have you in place to protect the business, your family and your business partners ? Is it fair and equitable ?
A business owner should have a will and a partnership agreement for several important reasons:
A will ensure:
- Asset Distribution: A will ensures that your business and personal assets are distributed according to your wishes after your death, preventing disputes among heirs.
- Business Continuity: It can outline how your business will be managed or transferred, ensuring its continuity and minimizing disruption.
- Debt Management: A will can specify how debts and liabilities should be handled, protecting your estate and beneficiaries from unexpected financial burdens.
- Roles and Responsibilities: A partnership agreement clearly defines each partner's roles, responsibilities, and contributions, reducing misunderstandings and conflicts.
- Decision-Making Processes: It establishes how decisions will be made, which is crucial for maintaining harmony in the partnership.
- Dispute Resolution: The agreement typically includes procedures for resolving disputes, helping to manage conflicts before they escalate.
- Exit Strategy: It outlines the process for a partner exiting the business, whether through retirement, sale, or death, which helps prevent future complications.
- Financial Arrangements: It can specify profit sharing, investment contributions, and how expenses are handled, providing transparency and fairness.
Always seek legal advice on theses issues.
INSIGHT No 31 STAY HEALTHY
Yearly health checks should be compulsory as you get older. I don't mean just going to your GP and having your blood pressure taken. Talk to your health fund and arrange to have a full stress test with the lot. You wouldn't let your car go without a regular service. So, why not do the same for the engine that makes you and your business tick over, your heart and personal well being. You owe it to your family, your business partners and then to your employees. Make sure your employees are also having regular health checks. Sick people cost time, cause lost productivity and money. You get you car serviced regularly. Why not your own health and wellbeing.
Business owners should be concerned with their health for several reasons:
- Productivity: Good health enhances focus, energy levels, and overall productivity, which are essential for running a successful business.
- Decision-Making: Being healthy can improve cognitive function, helping owners make better, more strategic decisions.
- Stress Management: Business ownership can be stressful. Prioritizing health can help manage stress levels, leading to better emotional resilience.
- Financial Impact: Health issues can potentially impact business operations if the owner is unable to work.
- Work-Life Balance: Focusing on health can help create a more balanced lifestyle, preventing burnout and enhancing overall well-being.
INSIGHT No 32 HAVE AN EXIT STRATEGY
If your operate your business on the premise that you are getting ready for sale you will end up with a more profitable and efficient business. No one should assume that you are going to be in the same business for ever.
That will kill innovation and risk-taking. Have your business ready for sale at all times. You never know when someone will knock on the door and you want to buy your business.
An exit strategy is crucial for business owners for several reasons:
1. Maximizing Value
- An exit strategy helps a business owner plan the best way to sell or transition the business when the time comes. This ensures they can maximize the value of their company, rather than making rushed decisions that could result in a lower sale price or less favorable terms.
- Business owners may not want to run the business forever, so having an exit strategy helps them prepare for their next steps, whether it's retirement, starting a new venture, or pursuing personal goals.
- Life is unpredictable. An exit strategy helps prepare for unforeseen events such as economic downturns, health issues, or changes in personal circumstances. It ensures the business can continue or transition smoothly even under difficult conditions.
- For family-owned or closely held businesses, an exit strategy often involves planning for succession. This ensures that the business can continue under new leadership or that family members are prepared to take over.
- Without a clear exit plan, exiting the business can be emotionally draining. Planning in advance allows the owner to manage the transition more smoothly and with less stress, making the experience more positive and controlled.
INSIGHT No 33 HAVE FUN, WORK HARD AND SHARE IN THE REWARDS
What's the point if your spend most of your life at work and you don't really enjoy it ?
I once worked for an organisation (public company) where most employees wanted to be somewhere else. They were afraid, intimidated, shouted at and miserable. It was an experience I would rather not have had.
Employees want to be challenged and recognised for doing their work. They should look forward to coming to work because they have pride in what they do and their work is appreciated.
Make sure you celebrate and share successes and ensure there is laughter in the workplace.