Management

Ideally, hiring employees should allow you to focus your time and talent on the areas of your business that require your attention.

Unfortunately, it doesn’t always work out that way. Small business owners often find themselves spending more time (and money) training, solving problems or correcting employee mistakes than when they were operating as a one-woman shop.

The process of hiring employees may sometimes seem like a gamble. But there are some steps you can take to tip the odds in your favor.

Know what you need

Employees will bring the most value to your business when they have clear direction on what their jobs are. You may know you need help, but take some time to think about exactly what kind of help you need. Create a formal job description for the position. It’s okay if it includes the line “Other tasks as assigned by…” Your employee needs to know what your expectations are. If he/she has a list of ongoing responsibilities, it will save you the time and frustration of constantly having to tell him/her what needs done.

Temps Vs. Hiring Employees

If you’re not sure you need a permanent part-time or full-time person, you might consider using a personnel services agency to hire a temporary worker for times when you need some extra help. The benefits of hiring a temp are that the agency has already screened the worker for you and the agency handles the wages and benefits for the employee. You simply pay the agency for the service provided. But don’t assume that “temp” equals cheap. There is a cost for this convenience. If you really do need someone on a more permanent basis, trying to bridge the gap with temps may end up being more expensive than hiring employees on your own.

Hire Smart

When you post a job opening, you will likely be inundated with applications. Some will be qualified for the position. Many will not be. Others may be overqualified and be at risk for jumping ship the moment a better offer comes their way. Sifting through a mountain of resumes can be overwhelming, and setting up a parade of interviews is time consuming.

You need to bring only the best people in to be interviewed—preferably the top three applicants with the qualifications that you need to fill the job. To whittle down your options, set some guidelines on the front end of the process to help you decide which candidates will make the cut. Only pull resumes of applicants that meet those standards that you have established.

At this point, your main focus is filling the position, but you should be looking toward the future as well. While interviewing, try to pick up on cues that would indicate what type of employee the applicant would be. Does she seem to be just interested in a job, or does it appear that she is motivated by a challenge? Does the candidate seem to have a particular interest in what your business does?

Ask the right questions and be careful to not ask the wrong ones.  Avoid asking applicants illegal or inappropriate questions during the interview.

If your schedule and responsibilities don’t allow for you to take the time you should to hire the best person for the position, you might consider contracting an HR consultant to help. Many solo HR consultants are willing to take on the task of hiring employees, and can even help you onboard and train your new employees.

We all make mistakes, but when you are running a business, mistakes can cost you money. While you may approach big decisions with care to avoid a costly error, sometimes it’s the little things that really count.   Here’s my list of the top subtle business blunders. I have witnessed all of them, maybe even committed a few myself. If you have employees, the list is worth sharing.

“Celling” it short. I recently had a life insurance agent visit me on a sales call. I had scheduled to give him 30 minutes of my valuable time. As he began his presentation, his cell phone rang. When he reached for it, I assumed he was going to hit the switch to send the call directly to voicemail. Instead, he answered it. Rather than politely tell the person on the other end of the call that he was in a meeting with a client, he engaged in the phone conversation as if I weren’t in the room. From my end, it didn’t appear to be urgent. He was on the phone for about five minutes—five minutes of my 30 minutes that I had graciously provided to him.   He didn’t apologize when he hung up, just picked up where he left off. Needless to say, he didn’t make the sale. In that single mindless action, he made me feel as if I was not a priority. Why would I purchase from him? What could I expect from him in customer service if this is the way he treated me in the sales process? If you’re in a meeting with a real, living, breathing person, turn the cell phone off. If for some life/death reason, you must take a call, at least let your client know in advance that there is a possibility of an interruption and sincerely apologize for the potential inconvenience.

Driving Ms. Crazy. If your company car has your company logo on it, don’t do anything in it that you wouldn’t want your granny to witness.   Don’t cut people off in traffic or provide a “middle finger salute” to those that cut you off. Don’t park in a handicapped space if you are not legally able to do so and don’t text while driving. You get the idea. The same rules (and many others) apply when you are wearing your business’ logo on your clothing.

No cards left behind. This one still gets me once in awhile. Obviously, it is important to always have a good inventory of your business cards with you at business functions, but a valuable networking connection can happen anywhere. Don’t let an opportunity slip through your hands because you weren’t prepared.

Follow-up failure. If you make an offer or a promise to a new networking connection or an established contact, deliver on it. If you don’t, you may be leaving money on the table. So many opportunities are missed because the follow-up didn’t happen.

All the world is a stage. And we can see the plots play out via social media outlets on a daily basis. You’ve probably heard the news stories of people getting fired from their jobs for bashing their employers on Facebook, Twitter, etc. I recently heard the story of a business that lost a huge account because an employee was posting some pretty hateful banter on a social media site about one of the business’ clients. You know how it ends. The client found out and decided to do their very hefty chunk of business elsewhere.   The employee got fired, but it will take a very long time for the business to recover the revenue lost and rebuild its reputation with the lost client and others.

Building a positive reputation for your business takes time and effort. And while one small misstep may not destroy your business’ reputation, over time, subtle shortcomings can chip away at what you are working so hard to build.

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As a small business owner, you likely take on multiple roles in your organization. From staff bookkeeper to social media manager, you may find yourself doing a little bit of everything. But you’re only one person. Of course, you need to be aware of everything that’s going on in your business. But, that doesn’t mean you need to or should be doing it all. It pays to know when to outsource.

We’ve sought a lot of feedback from women who are running businesses or planning startups to help develop relevant content for Wobizzle.com.   A few of those sources offered cautionary tales of lessons learned the hard way because they applied the DIY method in areas of their businesses where they really didn’t have expertise.

It’s tough when you are working with a very limited budget (or no budget at all) to allocate funds to something that you think you might be able to do yourself. But you need to consider whether doing the job yourself will truly save you money. Here are a few questions to ask to help you decide whether to roll up your sleeves or call in a pro.

How To Decide When To Outsource

Do You Have the Money to Spend?

Of course, this is the first question that needs answered. If you don’t have the money to spend, then you may need to take on the task yourself. But before you jump in, ask yourself how important the project is to your business right now. If it’s mission critical, you may want to proceed on your own. If it’s something that is not an immediate priority, consider putting it on hold until you have the resources to get it done right.

Don’t have the cash flow? Consider trade. Some freelancers or other small business owners might be open to trading services. For example, my hair stylist has a standing line of trade with a massage therapist. Their hourly rates are compatible, so she trades a haircut for a massage on a regular basis. Always approach a trade proposal on the front end. Make sure the service provider is open to the idea. Also, you may want to get the agreement in writing so both of you know what to expect.

Do You Have the Skills?

If you’re operating on a shoestring budget, but have a knack for bookkeeping, it might be a good decision to do that yourself until you have the cash flow to hire it out. But, if numbers aren’t your thing, you will be much better off if you call in a professional. The same goes for tech tasks like IT and website development, and creative services like graphic design, copywriting, etc.

Freelancers can often be a more affordable option than hiring the services of a larger organization. Put an appeal out within your network to find quality freelancers in the areas where you need help. Websites like Upwork and Fiverr can also help connect you with freelance professionals.

What’s Your Time Worth?

Knowing the value of your time is critical. Consider how much time it will take you to complete the task or project and what that equals in lost revenue. Run those numbers, and you’ll know when to outsource. If you could be generating revenue for your business instead, or if your time/talent could be better spent doing something else to grow your business, then it’s worth the investment to outsource the job to a professional.

Making good choices about where you spend your money and your time are critical to the ongoing success of your business. Knowing when to outsource is part of that. Keep in mind, if you choose to go the DIY route on tasks or projects where you lack expertise, you may end up having to pay a professional to clean up your mess later, which could cost you more than it would have to have them do it in the first place.

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I recently had the opportunity to babysit for a friend.  Since I don’t have children, this was quite an event.  Her daughter is six years old and in kindergarten. I love interacting with children of this age for the usual reasons—no diapers to change, they can clearly communicate their needs/wants in complete sentences and they have a refreshing and wonderful sense of humor. I also love that they have a vision for their futures.

Most any child that age is quite definitive about what he or she wants to be when they grow up.  Sometimes they may still be in the process of narrowing down the choices, but when asked, they typically answer quickly and with conviction.

For my friend’s daughter, the question was decisively answered with the response—fashion designer.  I don’t know about you, but when I was six I wasn’t even aware that such a vocation existed.  Not surprising I suppose, since my wardrobe consisted mainly of Toughskins, Garanimals and a few hand-me downs from older cousins.  What I found absolutely inspiring about my little friend’s vision was that she not only knew what she wanted to be, but how she was going to get there.  She had a plan.

She told me that her favorite class is art or “awt” as she pronounced it.  She also revealed that her grandmother and aunt were going to teach her to knit and sew, because as she informed me, “every fashion designer needs to know how to sew!”

Her passion for creating led us to undertake some crafting activities. And right at my dining room table, the start-up of a six-year old’s microenterprise began to transpire.  She asked for paper and markers to draw me a picture.  I rummaged through a closet and produced a small storage container full of random crafting supplies.  One peek into that box and her plan to simply draw me a picture turned into the vision for an entire product line.

She took the confidence that she had for her own skills and combined that with the resources within that container, and before I could say Wobizzle.com, production was underway.

She began creating her mixed-media artwork, an outdoor scene of three Christmas trees, using her paper, markers and random items from the crafting container.  When she was finished, she immediately began production on another, then another, then another.  As she began each new piece, she announced the intended recipient of the work.  I was delighted that I made the list. Five pieces later, she concluded her work day and we retired to the living room to watch a video.

As I watched her operate, I realized there were a few business lessons to be learned from this young entrepreneur.

Do something you love and are good at

My young friend not only enjoys creating art, but also has a great amount of confidence in her ability to do it.  She took pride in each piece and was certain that the individuals she would be giving the pieces to would be very pleased with the product.  Her love for her craft kept her happy and motivated as she kept the production line moving.

Know your target customer

This “kinderpreneur” had the benefit of knowing her “customers” by name.  That’s not possible for every business owner, but every business owner should attempt to understand who her target customers are, what they want and how she can meet their needs.  Dig deeper than just demographics, try to understand them as people.

Know your strengths, outsource accordingly

After a few unsuccessful attempts of trying to glue sequins onto the paper, my young guest enlisted my help to handle the job.  She realized that she didn’t have the skills to do it efficiently, so she outsourced the task.  The result was that the job got done and she was able to spend her valuable time on the portion of the project that required her expertise.

So, today I challenge you to channel your inner six-year old.  Draw out the confidence and imagination you had at age six (I know it’s in there somewhere), combine it with the skills, experience, knowledge and street smarts you have developed in your adult life and simply believe.  Believe in yourself and your ability to turn your great idea into a business success.

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Gone are the days of business as usual.  Welcome to a new era of a constant and rapidly changing business landscape. To keep your business competitive,  you must be prepared to innovate and roll with change.

Laura McCaskill owns two successful businesses, Medavera and The Medical Package.  She has also served as a counselor with SCORE, a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow, and succeed.   Laura says business is changing so rapidly that it is critical for business owners to spend time thinking about where their businesses are headed and how they will adapt to increased competition and other changes in the marketplace.

“If you don’t you will miss something that is crucial to your growth,” she says.  And perhaps even your survival. “The world is flat,” Laura warns. “And there is somebody ready to take business from you.”

That said, when you are caught up in your business’ day-to-day operations, it can be difficult to think about the big picture and to take time away to plan for the future. Here are some tips to help you take those first steps to keep your business competitive.

Plan Early And Often To Keep Your Business Competitive.

Start now.  If you wait until your competition has seized your territory, it’s too late.  And while the beginning of a new year can be an inspirational time for goal setting, Laura suggests re-visiting your plan at regular intervals to tweak as needed to make sure you remain competitive.

Retreat! 

Not from your competition, but from the distractions of your daily operations.  Get away from your office or storefront so you can have some uninterrupted time to think. Do some advance prep work. Your time will be much more productive if you set an agenda for what you want to accomplish in your planning session.  If you have employees, invite them or key staff members along to brainstorm.  Make them aware of the agenda in advance so they will be prepared.

Talk it up. 

Initiate an open discussion about the challenges your business is facing and how you can overcome them.  Envision and communicate where you want your business to be in the next three months, six months, or year. Set aggressive but attainable goals and line out the action steps to achieve those goals.

Find a Sounding Board.

Group brainstorming is a great way to develop new ideas and creative solutions to business challenges.  But, if you’re a one-woman show, you don’t have the benefit of that dynamic.  Laura recommends finding other business owners with which to share your challenges, identify solutions and float your ideas. “One of the things that continually surprises me is that most people in business truly want others in business to succeed,” she says.  “Find someone who has had success and is very positive,” she suggests.

Why Me?

The most successful businesses are those that are able to set their products/services apart from the competition. That point of differentiation may be price, quality or a unique niche that only they fill.  They know why their customers choose them and they use that to their advantage.  Ask yourself why me?  Why do/would customers choose you over the competition? What is different about your product or service?  Build your marketing efforts on your answers.  Revisit these questions regularly, because new competition may be trying to move in on your territory.

Consumer Survey.  

Laura says one of the things that business owners often intend to do, but for lack of time, put on the back burner, is to ask their existing clients/customers for feedback.  Don’t just make your best guess. Find out from the people who use your products/services what you are doing well, and what you could be doing better.  And don’t forget the most important part.  Use that information to make improvements.

Focus.

You can spend a lot of time and money trying to let everyone know about your business.  But in a competitive market, working smarter, not harder will give you a better return on your investment. “You have to devote more time to business development now than ever before,” Laura says.  “A blanket approach is not going to be nearly as effective as targeting highly probable clients or customers.” Laura’s advice is to be continually engaged in business development activities, but to take a thoughtful approach.  Spend some time really thinking about not only who your ideal customer is and but also who it isn’t, and focus your efforts accordingly.

Flexibility & Adaptation.

The final piece is flexibility and adaptation.  As good as your plan may be, unforeseen circumstances happen.  You have to be willing and able to adapt as your situation changes to keep your business competitive.  Whether your competition moves in next door or street construction puts a damper on your business’ foot traffic, you must be able to alter your plan of action to position your business for success.

Laura says a positive attitude can make a difference.  “It is absolutely critical to be an optimist if you are in business today. Focusing on the negative can bring you down in ways you wouldn’t even imagine, in your outlook and your ability to move forward.” Laura says being positive increases your energy level and willingness to try new things and think differently.  Positive people tend to be solution-oriented, while negativity can paralyze you with fear so you don’t react to anything.

When you hit bumps in the road, use disappointment and failure to your advantage.  Take the opportunity to learn from mistakes or misfortune.  “Most successes in life and business stem from failure,” says Laura. “It’s how you channel it.  You have to use it and learn from it.  Discover something from the failure that you can learn and channel toward future success.”