The role of a business owner gets more complex by the day, and it is little wonder that many business owners find that by spreading themselves so thinly across all of the activities they need to accomplish each day, nothing ever gets done properly, or as quickly as is optimal for their business.
Many owners fall for the trap of trying to do everything themselves to keep costs down, but in reality, the cost to the business of the inefficiencies inherent in this approach, and the lack of necessary attention to the detail in any business which inevitably results, will generally outweigh any savings expected by the business owner, in adopting this "one man band" approach.
In working with a client recently, I identified that as the business owner he was trying to perform at least 16 clearly identifiable key roles, many of which were measurably not the best use of his available time, and some were critical roles for which he was not all that well qualified, to perform.
In the best interests of the business, an owner should step back from attempting to be the jack of all trades and the master of none, and look at where specifically in the business their skill set and personality can be utilised to greatest advantage and for the greatest return, and delegate or outsource the remaining roles to others, or another entity, that can do what is required in far less time, more effectively, and at relatively lower cost, than the cost of the owners time in completing the particular role(s) themselves.
The issue of control and inability to delegate raises its ugly head time and time again when examining why, small business owners in particular, continue to beat their heads against a brick wall in trying to accomplish everything themselves, but at considerable cost to themselves, their families and their businesses.
In an earlier article, “Four Critical Business Roles”, I explored and discussed my view that it is a very rare individual who is capable of effectively performing all of the critical roles required to be performed in a SME business, and that one’s personality will to a high degree dictate the roles one can effectively perform, and which will positively contribute, to the expected outcomes for the business.
Where the business owner’s personality is not suited to one or more of the four critical roles which need to be performed on a daily basis, then the business will be facing an uphill battle to achieve any real level of success, and the business owner will constantly frustrated with his/her inability to achieve the outcomes desired, in the time frame available.
The answer is to recognise that “one man bands” generally run out of steam long before the businesses they operate grow to a level where they can be regarded as successful, sustainable businesses that are no longer reliant on the input of just one person, and take action now to make the most effective and productive use of your time, and pay others to perform the roles for which the business is paying a higher than necessary cost for you to perform.
Why do you continue to try to do everything yourself?
Do you have an inability to let go and an aversion to delegating or outsourcing?
Do you now understand that the cost of doing everything yourself is the future level of success of your business?
About Me
- Daniel Watson
- Melbourne, Victoria, Australia
- Born in the mid 1950's and raised in a very small country town situated in Northern Victoria. Resident of Melbourne since 1980 and happy to stay living in one of the world's most liveable cities. You can view my professional profile at http://www.linkedin/in/danielwatson
Tuesday, November 24, 2009
Wednesday, November 18, 2009
Rewards; Gold Mine or Minefield?
Rewards, to facilitate ongoing performance or to effect change in the company’s culture, are not generally used effectively, or often enough, by many otherwise astute, business owners.
Too often, consultants observe the wrong behaviours being rewarded by business owners, resulting in unintended consequences which can, and often do, derail well thought out business plans and lead to serious financial issues.
In business, rewards are generally allocated for the purposes of developing people and influencing changes in their behaviour to prepare them for alternative or higher level roles, or for effecting required organisational changes and improving overall company financial performance.
At an individual level, rewards encourage people to learn, prompt the taking of necessary steps for personal growth, facilitate the desire to make greater contributions to the company’s well being, entice the desire to lead others and leverage off their success, and flame the passion in those who aspire to top leadership roles.
At a company level, rewards encourage the development of the required company culture, promote teamwork throughout the company, shift the performance focus to the achievement of specific financial outcomes, and display how serious the company is in respect to compliance with ethical and governance norms.
Rewards can take many forms, some which are familiar to most business owners, and many which may not be so familiar for one reason or another. Common rewards include;
a) a simple thank you
b) quiet words of encouragement
c) transfer to chosen area or location
d) promotion to a new position
e) better shift or roster allocation
f) paid day(s) off
g) preferred holiday dates
h) tickets to special events
i) discounts on company products/services
j) cash bonuses
k) trips at company expense
l) company shares or options
m) company expense account
n) child care/education allowances
o) company car
Used well, and with careful attention to ensuring that any reward offered is actually rewarding the right behaviour(s) to deliver the specific outcome the business wishes to achieve, rewards can turn any business into a veritable gold mine.
Used unwisely, not nearly often enough, or only in favoured parts of the business, rewards can create a minefield for the unsuspecting business owner. Whilst it is beyond the scope of this article to provide the level of guidance needed to step a business owner through the minefield that reward systems can become, the following tips may prevent a little pain;
a) ensure that you reward only behaviours that clearly support and reinforce company culture,
b) ensure that rewards to encourage high performance in all areas of the business are spread throughout all operational and support areas,
c) ensure that everyone, without exception, receives a reward of some kind when key elements of the business strategy are delivered on time and on budget,
d) ensure that evidenced behaviour supporting required cultural change is immediately rewarded and crucially,
e) ensure that any reward offered, especially at an individual level, is of a value to the recipient equal to, or exceeding, the cost of the reward to the company.
How well do you understand how rewards motivate or demotivate?
Do you use appropriate rewards to encourage peak performance and staff retention?
When did you last reward yourself?
If you enjoyed this post, please consider leaving a comment below or subscribing to the RSS feed to have future articles delivered to your feed reader.
Too often, consultants observe the wrong behaviours being rewarded by business owners, resulting in unintended consequences which can, and often do, derail well thought out business plans and lead to serious financial issues.
In business, rewards are generally allocated for the purposes of developing people and influencing changes in their behaviour to prepare them for alternative or higher level roles, or for effecting required organisational changes and improving overall company financial performance.
At an individual level, rewards encourage people to learn, prompt the taking of necessary steps for personal growth, facilitate the desire to make greater contributions to the company’s well being, entice the desire to lead others and leverage off their success, and flame the passion in those who aspire to top leadership roles.
At a company level, rewards encourage the development of the required company culture, promote teamwork throughout the company, shift the performance focus to the achievement of specific financial outcomes, and display how serious the company is in respect to compliance with ethical and governance norms.
Rewards can take many forms, some which are familiar to most business owners, and many which may not be so familiar for one reason or another. Common rewards include;
a) a simple thank you
b) quiet words of encouragement
c) transfer to chosen area or location
d) promotion to a new position
e) better shift or roster allocation
f) paid day(s) off
g) preferred holiday dates
h) tickets to special events
i) discounts on company products/services
j) cash bonuses
k) trips at company expense
l) company shares or options
m) company expense account
n) child care/education allowances
o) company car
Used well, and with careful attention to ensuring that any reward offered is actually rewarding the right behaviour(s) to deliver the specific outcome the business wishes to achieve, rewards can turn any business into a veritable gold mine.
Used unwisely, not nearly often enough, or only in favoured parts of the business, rewards can create a minefield for the unsuspecting business owner. Whilst it is beyond the scope of this article to provide the level of guidance needed to step a business owner through the minefield that reward systems can become, the following tips may prevent a little pain;
a) ensure that you reward only behaviours that clearly support and reinforce company culture,
b) ensure that rewards to encourage high performance in all areas of the business are spread throughout all operational and support areas,
c) ensure that everyone, without exception, receives a reward of some kind when key elements of the business strategy are delivered on time and on budget,
d) ensure that evidenced behaviour supporting required cultural change is immediately rewarded and crucially,
e) ensure that any reward offered, especially at an individual level, is of a value to the recipient equal to, or exceeding, the cost of the reward to the company.
How well do you understand how rewards motivate or demotivate?
Do you use appropriate rewards to encourage peak performance and staff retention?
When did you last reward yourself?
If you enjoyed this post, please consider leaving a comment below or subscribing to the RSS feed to have future articles delivered to your feed reader.
Wednesday, November 11, 2009
Are You a Slave to your Business?
One of the perceived, toughest tasks for any business owner, is to find enough hours in the day to achieve even half of what needs to be done every day, to ensure that their business survives and grows to a point where they see a good return on the time, effort, and money invested.
I disagree with this common perception as I find that, as a general rule, if a business it is going to achieve success in the long run, it is more likely to do so if the owner does not personally put in any more than 50 to 55 hours per week on a continual basis, once the initial business startup phase is over.
In my considered opinion, consistently working more hours than this per week, especially with the pressures that most business owners work under, will not only lead to reduced personal effectiveness, but will more than likely also have adverse effects on the health, general wellbeing, and most importantly, the personal relationships of the business owner.
Often, much of the time a business owner spends working in or on their business, becomes unproductive time for a whole host of reasons, but a key one being the old adage that the more time available, the longer required tasks will take to complete.
The key to striking the right balance between the time allocated to the business and time allocated to ensuring that physically, intellectually, and emotionally you are as fit as possible to be super productive when working, is to first set a limit on the average number of hours per week, you will devote to your business, over any given period in the future.
Once you have determined the maximum number of hours per week you will allocate to working in and on the business, you need work out how you will then complete all the tasks you usually need to complete each week, in the reduced time frame.
There is a real art in determining the amount of time you should allocate to each specific task, but if you start by looking at how long it currently takes you, and halving that due to the fact that you will be more focussed, more energetic and more determined to complete it in a specific time, you will have a good starting point.
The next step is a simple one, but requires a good self knowledge as to your own capabilities at various times of the day, and on different days of the week. What you need to do is break the week up into the number of timeslots necessary, which may be of different durations, to complete all of the tasks you need to complete for the week.
A couple of good tips are firstly, to set aside either one or two timeslots each day to deal with incoming e-mails and other correspondence and leave them alone at all other times, and secondly, when dealing with the key tasks requiring the most concentration have a “do not disturb under pain of death policy” to stop phone calls, staff, visitors and anything other than dire emergencies, from stopping the flow of your concentration.
The final thing you should do as part of this process, is identify whether or not some of the tasks you are allocating to yourself, are really the best use of your time, and/or could be better performed by someone else, with a lower skill set than your own.
If you are serious about assisting your business to become a long term success, take action now to reduce your hours, and you and your business will reap the long term benefits. The simple process above, if implemented effectively, should shave a minimum of 15 hours per week off the time you currently put into your business, without any negative effect whatsoever.
Do you want to continue to be a time slave to your business?
Would you achieve more in less time if you were more focused, more energetic and more determined?
How will you celebrate seeing the light and limiting your time input to no more than 50 to 55 hours per week?
If you enjoyed this post, please consider leaving a comment below and subscribe to the RSS feed to have future articles delivered to your feed reader.
I disagree with this common perception as I find that, as a general rule, if a business it is going to achieve success in the long run, it is more likely to do so if the owner does not personally put in any more than 50 to 55 hours per week on a continual basis, once the initial business startup phase is over.
In my considered opinion, consistently working more hours than this per week, especially with the pressures that most business owners work under, will not only lead to reduced personal effectiveness, but will more than likely also have adverse effects on the health, general wellbeing, and most importantly, the personal relationships of the business owner.
Often, much of the time a business owner spends working in or on their business, becomes unproductive time for a whole host of reasons, but a key one being the old adage that the more time available, the longer required tasks will take to complete.
The key to striking the right balance between the time allocated to the business and time allocated to ensuring that physically, intellectually, and emotionally you are as fit as possible to be super productive when working, is to first set a limit on the average number of hours per week, you will devote to your business, over any given period in the future.
Once you have determined the maximum number of hours per week you will allocate to working in and on the business, you need work out how you will then complete all the tasks you usually need to complete each week, in the reduced time frame.
There is a real art in determining the amount of time you should allocate to each specific task, but if you start by looking at how long it currently takes you, and halving that due to the fact that you will be more focussed, more energetic and more determined to complete it in a specific time, you will have a good starting point.
The next step is a simple one, but requires a good self knowledge as to your own capabilities at various times of the day, and on different days of the week. What you need to do is break the week up into the number of timeslots necessary, which may be of different durations, to complete all of the tasks you need to complete for the week.
A couple of good tips are firstly, to set aside either one or two timeslots each day to deal with incoming e-mails and other correspondence and leave them alone at all other times, and secondly, when dealing with the key tasks requiring the most concentration have a “do not disturb under pain of death policy” to stop phone calls, staff, visitors and anything other than dire emergencies, from stopping the flow of your concentration.
The final thing you should do as part of this process, is identify whether or not some of the tasks you are allocating to yourself, are really the best use of your time, and/or could be better performed by someone else, with a lower skill set than your own.
If you are serious about assisting your business to become a long term success, take action now to reduce your hours, and you and your business will reap the long term benefits. The simple process above, if implemented effectively, should shave a minimum of 15 hours per week off the time you currently put into your business, without any negative effect whatsoever.
Do you want to continue to be a time slave to your business?
Would you achieve more in less time if you were more focused, more energetic and more determined?
How will you celebrate seeing the light and limiting your time input to no more than 50 to 55 hours per week?
If you enjoyed this post, please consider leaving a comment below and subscribe to the RSS feed to have future articles delivered to your feed reader.
Tuesday, November 3, 2009
Slash New Business Acquisition Costs
Most business owners understand that the cost of acquisition of customers/clients is one of the major drains on the overall profitability of their particular business enterprise. Unfortunately, a far fewer number, approach the task of ensuring that a high proportion of their new business comes from prospects referred to them via their customers/clients and business associates.
The downside of not treating the obtaining of consistent referral business as a real business strategy, and thereby devoting time and necessary resources to affect the required outcomes, is firstly, a higher cost of acquisition of new business and secondly, detrimental fluctuations in the monthly revenue generated from new business.
Realistically, as a business owner you cannot afford not to be doing everything you can to ensure that your business receives a consistent flow of referrals from satisfied customers/clients, and that the other businesses that you do business with, reciprocate by referring business to you.
The only way I know to consistent get referrals of potential new business from your own customers/clients is to set up a formal referral system, as part of the overall customer acquisition strategy of your business.
The key component of any referral system should be as follows;
a) a process for asking for referrals from customers/clients,
b) a process for acknowledging all referrals received,
c) a process for recording and monitoring progress of all referrals,
d) a process for rewarding referrals which result in new business,
e) a program of targeted training to ensure all staff understand both the importance of all referrals and the workings of the system you put in place to obtain same, and
f) a mechanism for rewarding staff for supporting the referral system.
The other major source of referrals of new business is through your own business associates, and this avenue should also be carefully considered, when establishing your referral system.
The key elements here are similar to those outlined for obtaining referral from customers/clients, but with business associates, you need to add the additional task of informing them fully of the types of new business you are specifically seeking, what your ideal new customer/client looks like, and what you intend doing for them as a reciprocal approach.
Without an overall customer acquisition strategy, which includes a formal referral process that is supported throughout the business, referrals of new business to you as a business owner, will always be inconsistent, and the level thereof always well below what it should be for a well run business.
What percentage of your new business comes from direct referral from existing customers/clients?
Do you have a formal customer acquisition strategy and does this include a referral strategy?
Do you currently devote sufficient time and other resources to ensuring that your business maximises its opportunities to become more profitable through generating the bulk of its new business via direct referrals?
If you enjoyed this post, please consider leaving a comment below and subscribe to the RSS feed to have future articles delivered to your feed reader.
The downside of not treating the obtaining of consistent referral business as a real business strategy, and thereby devoting time and necessary resources to affect the required outcomes, is firstly, a higher cost of acquisition of new business and secondly, detrimental fluctuations in the monthly revenue generated from new business.
Realistically, as a business owner you cannot afford not to be doing everything you can to ensure that your business receives a consistent flow of referrals from satisfied customers/clients, and that the other businesses that you do business with, reciprocate by referring business to you.
The only way I know to consistent get referrals of potential new business from your own customers/clients is to set up a formal referral system, as part of the overall customer acquisition strategy of your business.
The key component of any referral system should be as follows;
a) a process for asking for referrals from customers/clients,
b) a process for acknowledging all referrals received,
c) a process for recording and monitoring progress of all referrals,
d) a process for rewarding referrals which result in new business,
e) a program of targeted training to ensure all staff understand both the importance of all referrals and the workings of the system you put in place to obtain same, and
f) a mechanism for rewarding staff for supporting the referral system.
The other major source of referrals of new business is through your own business associates, and this avenue should also be carefully considered, when establishing your referral system.
The key elements here are similar to those outlined for obtaining referral from customers/clients, but with business associates, you need to add the additional task of informing them fully of the types of new business you are specifically seeking, what your ideal new customer/client looks like, and what you intend doing for them as a reciprocal approach.
Without an overall customer acquisition strategy, which includes a formal referral process that is supported throughout the business, referrals of new business to you as a business owner, will always be inconsistent, and the level thereof always well below what it should be for a well run business.
What percentage of your new business comes from direct referral from existing customers/clients?
Do you have a formal customer acquisition strategy and does this include a referral strategy?
Do you currently devote sufficient time and other resources to ensuring that your business maximises its opportunities to become more profitable through generating the bulk of its new business via direct referrals?
If you enjoyed this post, please consider leaving a comment below and subscribe to the RSS feed to have future articles delivered to your feed reader.
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