As 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.
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.
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!
You 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:
- 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:
- 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.
- 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.
- 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.
- 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.
Have you ever considered running a family business? Perhaps you’re enticed by the convenience of working with people you already know, or maybe you’re seeking to leave a family legacy for your children and theirs. While there are many benefits to working with family, it can also have its downsides. Although many families succeed in business, sometimes the stress of running a business can get in the way of family relationships and vice versa.
I have worked with dozens of family businesses over the years, and through TAB meetings I have noticed several pros and cons family business owners seem to experience. Here are a few pros and cons you may encounter if you decide to work with family:
- Kick-Start Your Succession Plan. Your business may be your pride and joy right now, but if you ever plan on retiring or starting another venture, you may need to consider eventually passing it along to someone else. Partnering with or hiring a family member can be a great way to show them the ropes so they can one day run the business.
- Gain a Valuable Marketing Angle. Consumers prefer purchasing from family businesses. Although this doesn’t mean you should partner with any family member for the sake of owing a family business, hiring a qualified sibling or child can improve your business’s image.
- Trust Who You’re Hiring. Hiring can be a convoluted process, and it can become discouraging if your business experiences a high turnover. By hiring a family member, you likely already have a strong sense of their work ethic and whether they’d be a good fit for your business and team.
- Taking Work Home With You. Many business owners I know are guilty of this, but you may find it difficult to keep business discussions within business hours. For the sake of continued positive family relationships you may not want business to be at the forefront of every family gathering.
- Concerned Employees. Unless your entire staff is family, some of your non-related employees may worry that they won’t be treated equally. I encourage you to communicate to your staff that all employees are held to the same standards, and are subject to the same policies and codes of conduct.
- Maintaining Professionalism. Regardless if you’re working with relatives, a certain level of professionalism should still be maintained in the workplace. Keep family gossip out of the office and treat each other no differently than you’d treat a normal co-worker.
If you truly believe that one of your family members would be a valuable asset to your team, I encourage you to hire them. If, on the other hand, you are considering working with family solely out of convenience or family pressure, I suggest standing firm on the decisions that are in the best interest of your business. There can be substantial benefits to partnering with or hiring a family member, but it takes a strong, communicative family to make it work.
To discuss the ups and downs of your family business with a TAB peer advisory board, contact me today!
Since 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.
Based on discussions at TAB meetings, I have found that regular client feedback is essential for business improvement. Because of this, business owners often ask me how they can create surveys that get opened and collect relevant information.
To increase the probability that clients will complete your survey, here are the practices I follow:
- Use action verbs. Much of English conversation consists of the verb “to be”, resulting in dull, passive language. Try to use the active voice as much as possible.
- Create an easy user experience. Because the human attention span is generally quite short, I suggest creating a simple survey using multiple choice and dropdown questions rather than paragraph-style questions where possible.
- Offer an incentive. Who doesn’t like free or discounted products and services? Consider holding a draw for clients that submit the survey or providing a discount code upon completion.
As for which questions to ask, here are my suggestions based on the type of data you want to collect:
Do you want your client email list to answer which demographics your clients are from and in which neighbourhoods or countries they live? If this kind of client information might benefit your business, surveys are great opportunities to ask for targeted information, which in turn allows you to customize marketing campaigns.
Consider including these questions to gather useful information about your clients:
- What is your postal code?
- In which age range do you belong?
- What is your ethic background?
- What is your job title?
In order to assure clients that their information is safe with you, it is likely in your best interest to include a disclaimer at the bottom of your survey that states how the information will be used.
When a business’s sale decrease or become stagnant, I have found that surveys are effective tools to find out why that is. Your loyal clients want to see your business succeed and are likely more than happy to suggest a couple small areas of improvement. But whom you really want to hear from are the one-time buyers that didn’t return. How can you get them back or at least prevent future clients from walking away for the same reasons they did?
Consider including these questions to gather useful feedback about your products and your business practices:
- Which of our products or services do you use?
- Are you satisfied with the product or service quality you received?
- How can we improve your customer service experience in the future?
- Will you continue to do business with us in the future?
- What types of discounts would encourage you to purchase our products or services in the future?
If you would like to discuss different forms of client engagement with a peer advisory board, contact me today to find out more about TAB!
The 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!
As a small business owner, you know that hiring quality talent on the first try can be critical to your bottom line. In fact, finding and hiring a suitable candidate can cost your business thousands, or even tens of thousands, of dollars.
When the cost of hiring is so high, what do you do when your offer is countered? Spend the money to start the interview process all over again, or negotiate?
As an owner, being presented with a counter offer may leave a bad taste in your mouth. It’s natural for you to consider the negative personality traits this may reveal about the candidate, such as greed and disinterest. However, in my experience, an attempt to negotiate reveals the following positive personality traits:
- Intelligence – From the candidate’s perspective, there isn’t much harm in asking for a higher salary. The worst you can say is no, so to not at least ask for a higher salary would be foolish.
- Confidence – A confident counter offer would tell me that the candidate intends to prove they are worth that value.
- Enthusiasm – If the candidate only wanted the experience and wasn’t planning on staying with your company long-term, they’d take any offer. It’s understandable for them to want to build a solid base before settling into your business.
If you see these traits in your candidate and want to go ahead with negotiations, you may first want to address this two-part question: How do you negotiate without 1) the candidate changing their mind, and 2) paying more than you can afford? To help guide you, here are some dos and don’ts tips I share with my clients when handling hiring negotiations:
If after a couple rounds of negotiations you two can’t come to an agreement, it wasn’t meant to be. If you are looking for ways to help your business grow including insights on hiring the right candidate on the first try, contact me today!