Business Reorganization After Growth

arrows-box-business-533189As your business becomes increasingly successful, certain aspects of your business will need to change and/or grow to keep up with your demand. Through TAB meeting discussions, I’ve seen this growth take the form of increasing your inventory to meet local demand, expanding to another location to meet national demand, providing more offerings to meet client interests, or outsourcing or hiring more staff to meet all of the above. If you keep hiring more employees, there will come a time when you need to reorganize your reporting structure or even your departments.

In anticipation for future growth, I encourage all business owners to create an organizational restructuring process to ensure your business expansion goes as smoothly as possible. Here are just a few topics you may want this process to cover:

Promoting vs. Hiring ­

When your business requires a new department, you will need to decide if it’s best to promote an existing employee or hire someone new to manage it. It may sound ideal to promote someone who already knows your business, but it could be best to hire someone from outside your business with a more precise set of skills. For example, your highly skilled and dedicated salesperson may not have the right qualifications to lead a new marketing department.

Training

If you do hope to promote from within, how will you prepare your employee for the tasks and responsibilities that come with a higher-level position? If you anticipate expansion in the coming months, I have seen many business owners see success with managers mentoring talented employees to prepare them to take on the same or similar position. An outside hire can learn the ins and outs of your business this same way.

Communication

To ensure everyone in your business is on the same page at every step of growth, you may also want to detail how to communicate to staff that the growth may affect their roles within the company. If big changes are coming and your employees aren’t aware of what they are, they may jump to the conclusion that their jobs or the business may be in trouble when in fact the opposite is true. Your success is their success, and clear communication of any changes in roles or responsibilities can greatly help the progress continue.

Once your organizational restructuring process has been developed and implemented, I encourage you to regularly monitor and reassess its effectiveness. Perhaps there’s an area that can be improved or wasn’t ideal for the type of growth your business experienced. Did you actually need to hire more in-house staff, or should you consider hiring contract workers in the future? It’s important to be flexible and allow your processes to grow and improve with your business.

If you would like to discover how other business owners have restructured as a result of growth, contact me today to discuss becoming a member of a TAB peer advisory board!

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Creating and Tracking Business Processes

pexels-photo-1157859You may have a firm grasp on how to run your business, but if you left the company today, would someone else know exactly how to fill your shoes? I have seen many business owners make the mistake of storing an abundance of knowledge in their head and overlook documenting company processes and procedures for others to reference in their absence.

As a business owner, it is understandable that the needs of your business can consume a substantial amount of your time, which sometimes means documenting your processes takes a backseat on your priority list. If you would like to improve your business’s organization but are unsure where to start, here are a few procedures to consider documenting first:

  • Recruitment
  • Onboarding
  • Customer relations
  • Product development
  • Organizational restructuring

Once presented with a list, I’ve noticed that many TAB members don’t seem to have problems identifying which processes they use, but they do often question exactly which details they should write down. Again, this may differ from business to business, but I encourage every business owner to describe as much about their processes as they can.

Once you have prioritized your business’s processes and decided which to detail first, here are the next steps you can take:

  1. Choose a name. What will you and your employees call this process so that it can be easily referenced? Consider a name that is clear and concise yet informative enough so as not to accidently be confused with other processes.
  2. List the steps. What event triggers the start of this process, and what has to happen to reach the desired end result? For example, the need for a new employee would trigger your recruitment process, and writing a detailed job description would be one of many steps that must be taken to reach the end result of a qualified hire.
  3. List the roles. Who is in charge of which step? Continuing with the recruitment example, your HR manager may pass along the job applications to the applicable department head, who then conducts the interviews and hiring negotiations.
  4. Organize the document. How will you and your employees ensure the process is being followed? You can create a summarized version of the process in the form of a checklist or flowchart that can easily track completion of steps.

This may seem like a daunting undertaking, especially if you have a lot of processes that need documenting. However, you may find some employees are equipped to document the processes of certain tasks that only require your final approval.

If you would like to discuss how to organize your business processes, contact me today to join a TAB peer advisory board.


Don’t Let Numbers Paralyze Your Business

document-3268750_1920Since profit is essential for longevity and overall success of a business, it can be difficult to not obsess over your business’s numbers. As a passionate business owner, you may find yourself spending a lot of time worrying about unmet sales goals, overspent budgets, or unforeseen expenditures. These are all valid concerns, but is fixating on them benefitting your business?

Probably not. Instead, I encourage you to look at your business’s big picture. I believe that numbers are better used as a point of reference for the future rather than as an immediate source of panic. To help free you of the burden that numbers place on many business owners, here is what I suggest:

Build a Detailed Plan

You may have annual or quarterly financial goals, but are they included in an in-depth plan that includes steps and strategies to reach those goals? It’s generally easier to reach a destination with a map. Consider implementing KPIs into your business plan to help you recognize that a poor financial quarter doesn’t necessarily mean your business isn’t growing in other relevant areas.

Re-evaluate Your Existing Plan

If you already have a detailed business plan, it can be understandably frustrating if you are not meeting your goals. You have big ambitions for your business, but every business moves at its own pace. Consider that perhaps some goals may be currently out of reach and can be postponed until next year. Aim for greatness, but ensure your goals are realistic for your current means.

Communicate With Staff

Part of re-evaluating your business plan may include confirming that individual staff and departments are aware of the specific part they play in achieving the company’s goals. Perhaps your employees are doing their best to play their parts, but their best could be better if offered the right motivation. Budgets are often tight, but there are ways to keep employees motivated without giving pay raises.

Remember, going over budget on one item or for one quarter rarely means that you need to stop everything. Businesses have their ups and downs, but you will remain on the path to success as long as you treat everything as a learning opportunity.

If you would like to discuss how to build an effective business plan, contact me today to join a TAB peer advisory board.


Holiday Pay: Is It Worth It?

K-P-32-WorkSchedule-id-1551-jpegThe Victoria Day long weekend is approaching, and as a business owner, you may be debating whether or not you should pay employees holiday pay in order to continue your business operations during this holiday.

To clarify, when I say “holiday pay,” what I mean is the regular holiday pay plus premium pay employers are required to grant employees that agree to work on a public holiday. For guidelines regarding how holiday pay is calculated, you can visit the Ontario Ministry of Labour’s website. In most cases, holiday pay is 2.5 times an employee’s regular salary.

When my clients are making this decision, I suggest they ask themselves this question: Does the cost of paying employees holiday pay outweigh the potential value added to your clients?

Are your clients 24/7/365? Then perhaps your business should be too. If there is a high probability that your clients will need your products/services on a holiday, you may want to consider having employees on hand. Providing availability on public holidays can greatly improve client relationships and ROIs, as it’s an uncommon and possibly lucrative practice.

Since paying employees 2.5 times their regular salary can take a big hit on any small- or medium-sized business’s bottom line, I’d like to share some alternatives to providing holiday pay in order to minimize your costs:

Have Employees Be On Call

If you don’t want to trust the “chance” that clients may need attention, you could have employees be on call rather than officially in the office. However, this won’t be without it’s own price. As a result of Bill 148, beginning on January 1, 2019, on-call employees are entitled to at least 3 hours of pay, even if they aren’t called in to work.

Schedule a Substitute Holiday

In order to avoid the cost of holiday pay or the eventual cost of having an employee on call, you could instead provide employees with substitute holidays. This would save you money, but it may leave you short-staffed on later dates. As a business owner, I know that being only one person short can have a large impact on the productivity of a regular workday.

Is paying employees holiday pay worth it? The truth is, there is no one-size-fits-all formula to decide, even though the government provides a handy calculator to help you figure out the exact cost of an employee’s holiday pay depending on their wage. If you would like some business advice or would like to connect with other business owners in a peer advisory board, contact me today to find out more about TAB!


Small Business Trends for 2018 – Are You Ready?

shutterstock_365392142Welcome to 2018! After a hopefully restful and enjoyable holiday break, it is time to get back to business, and this year promises some interesting trends I want to share with you. In my 30+ years of experience helping small businesses, I have seen many significant changes, and this year brings new ways you can further expand and develop your business. I’m excited to highlight some of the trends worth noting, and look forward to working with you to implement these changes to grow your business even further in 2018.

The Mobile Experience – Consumers are using mobile devices to search for information, browse social media, and make purchases more than ever before. Ensuring that your business has a website that is easy to find and navigate, specifically on mobile devices, will help you expand your business’ reach to new customers.

Taking It Outside – Getting tasks done through freelancers, contract workers and outsourcing is becoming easier and more popular than ever before. Many businesses are leaving one-time functions or administrative tasks, like shipping, logistics, graphic design and content writing to others, thus leaving your staff to focus on other areas of expertise, and potentially saving overhead costs as well. Furthermore, giving your own employees the means to work and contribute from outside of the office can improve productivity, and satisfy your employees.

Engaging with Customers Online – The Internet is being used more and more by customers and companies to engage in business and share experiences. It’s becoming more important that businesses keep an online presence in order to communicate their brand, answer questions, respond to comments, and engage directly with consumers to highlight positive experiences, and minimize negative ones.

Storing and Protecting Data – Businesses are increasingly dealing with large data files and technical planning and software in their work. In order to best maintain, organize and protect their data, businesses that leverage the Cloud and other software can save storage costs, work with distant clients and partners, and increase their productivity.

Want more advice on ways to build on the success of your business with these trends, or general advice from other business owners like you? Make 2018 the year you join a TAB Board and get the support you need to make your plan a reality. Contact me today!


Business Plan: Too Early To Start A Succession Plan?

Business PlanningAs a business owner, you’re most likely consumed with the day-to-day running of your business and driving growth. It’s your baby and the last thing you want to do is sit down and make a plan for turning it over to someone else. As a TAB advisor, I have met owners who think they’re too young or believe that they’ll run the business for the rest of their lives, so why bother with succession planning? A 2014 PwC survey found that by 2019, more than half of Canadian family businesses are expected to change owners, but that only 20% of those businesses have a clearly documented succession plan in place for when the time comes.

Why does every business owner need a succession plan? We don’t have a window into the future and have no idea if or when events may arise that force succession – premature death, disability, personal or financial reasons or retirement. Without a succession plan, your business’s fate is uncertain and could be left in the hands of the court. It may also cause disputes among family members as to who should take over. The only way to control your company’s future and to protect yourself, your family and your employees is with a succession plan. I’ve outlined below what I feel are the three top options for succession.

  1. Transition the business within the family: If you choose to transition the business within the family, you’ll have to choose a successor. This may not be an easy (or popular decision) if multiple family members work in the business and all want the position at the helm. There may also not be a qualified successor among the family members, which brings with it a unique set of problems.
  2. Sell the business to a partner or employee(s): You’ll have to determine the value of the business. There are many factors that affect the value of your business, so it’s important to seek assistance in helping you calculate an accurate value. And the value of your business will continue to change so it will have to be re-evaluated on an ongoing basis.
  3. Sell the business to an outside buyer: Same as above.

It’s never too early to create a succession plan. It should be done by experts as it involves several disciplines including accounting, financial services, and law. There isn’t a one-size-fits-all succession plan template that you can download and plug information into. Each business owner will have different ideas about what their business succession should look like and the experts can ensure that your wishes are carried out.

I would be remiss if I also didn’t mention that in order for any succession plan to really succeed, you’ll need to have the right people and processes in place that allow for the day-to-day operations of the business to function without you.

No matter how good your succession plan is, it can’t anticipate changes that may affect your business in the future, which is why it will constantly have to evolve and change. I believe in starting early, setting expectations, and making the decisions that are right for you and your business. Succession planning is the only way to control the fate of your business.

Have you started working on your succession plan? Want more advice on succession planning, or general advice from a seasoned business advisor? Find out if a TAB Board is right for you!


Put an End to the Feast and Famine of Owning Your Own Business

indexI’ve seen it time and time again, business owners, whether they own an accounting, engineering firm, marketing agency or IT company, are left feeling vulnerable due to the feast and famine of income streams.

When I meet with business owners they share with me their concerns about their struggle for consistent revenues; one month the financials look great, but next month, they are not on target and they begin to stress about making enough income to cover their expenses. Sometimes this cycle is endless and it can take a toll on the many business owners striving for income predictability and growth.

When a business experiences the feast or famine scenario, things like hiring staff for a project today in hopes that there is work for them tomorrow can result in more stress and pressure on the owner to bring in more business.

Owning a business can be one of the most rewarding experiences, but so often business owners are conflicted with decisions about hiring the right staff, committing to paying rent for the appropriate space, investing in office equipment and technology, not to mention marketing. Without consistent and predictable revenue it is hard to make long term plans that will allow owners of professional services businesses to accomplish their goals.

If you are interested in learning about a professional business that will put an end to this feast or famine scenario but still give you the freedom to own a business, check out this website or simply contact me to discuss your situation.