10 BITS OF ADVICE FOR BUSINESS OWNERS by Stephen Gibson

 

1.      Niche:  Establish a niche, and stay in it.  More money is made through niche marketing and problem solving than trying to be all things to all people.  The faster you establish it, and the deeper you penetrate it, the more money you will make.

2.      Flash Reports:  Use weekly flash reports.  Traditional financial statements are often six weeks late in getting to the business owner.  Select 10 key indicators that you want measured weekly or daily.  Set up systems to get reports that give you those numbers, and review them religiously.  They will tell you what quick adjustments or tweaks you need to make.  Then make them!

3.      Payroll Service:  Use a payroll service.  Best decision I ever made.  It avoids weekly grief of figuring taxes and eliminates the end-of-year hassles with W-2's and 1099's.  You also may save money in IRS fines and interest charges.

4.      Fire Quicker:  I had a lot more business problems from the people that I didn't fire than from those I did.  As I gained more experience, I would ask myself if I would be pleased if this person quit.  If the answer was yes, then I needed to be man enough to let the person go.  We would both be better off.

5.      Hire Slower:  Write out a job description, and then employ the best person you can find to perform the job.  Don't hire someone just because s/he is available and then try and make her/him fit.  Check references carefully.  Don't hire someone elses problems thinking you can fix the new employee's shortcomings.  To be the best, you must hire the best.

6.      Weekly Invoicing:  Send out invoices weekly.   Many company owners could avoid sleepless nights if they would just be more aggressive in invoicing immediately or collecting at the time of service.  Turning accounts receivable into cash can solve most money problems for businesses.

7.      Measurable Goals:  Establish clearly defined, measurable goals with each employee.  Don't leave the employee not knowing what is expected, by when and how much.  Annual reviews are not enough.  Do it often.  And work together with them to obtain goals.

8.      More Incentives:  Pay employees small salaries and more incentives.  This will do wonders to keep everyone focused on what is most profitable and what you want and need done.  It will also keep both discussing their goals.

9.      Job-Related Reading:  Insist employees read a job related book each month.  It will keep them fresher, motivated and more disciplined, plus it will stimulate your business.

10.  3-Day Weekends:  Take your spouse on at least one 3-day weekend a month.  I guarantee your business will be stronger.  Some of my best business decisions have been made when I have been at a mountain cabin with my wife.  These weekends will do a lot for your marriage as well.