Are You Putting Out Fires or Growing Your Company?

As your startup grows the business challenges (i.e., the fires) you face will grow two-fold.

Your daily to-do list can be determined by the newest fire, the fastest growing one, or the blazing fire you simply can’t seem to put out. This is make or break time – are you simple putting out fires or are you going to get focused and grow your business?

The good news is that every challenge you face is another way to learn. But, the way you solve it can also have a long-term impact on your business (no pressure). There’s a very important question you need to ask yourself before you jump into firefighting mode:

What is the actual problem I’m trying to solve?

Stop, Drop and Problem Solve

This sounds simple, however sometimes you may be moving so quickly that you’re at risk of making changes for the sake of change. Remembering to stop and truly identify the underlying issue will enable you to stay focused and create a powerful solution that will last.

Here’s an example, and it’s one that you may have already faced: Let’s say you’re receiving complaints about customer service, especially when a customer is upset about their ordering experience. This frustrates you to no end because you built this business by always taking care of the customer and making sure they had a smile on their face—no matter what.

The correct firefighting solution is this: Identify specific customer service reps who are tied to the issues and provide refresher customer service training on how to handle complaints.

The powerful, lasting solution comes next. Once you look back at how you handled customer complaints you realize that you spent your entire day interacting with customers and never “bottled” your approach.

After reviewing your customer service training materials, you recognize they walk employees through handling a complaint in a generic manner. There is none of your passion and commitment to taking care of the customer regardless of what the issue such as listening, not being defensive and most importantly, not taking it personally.

So, now what?

You can now create new, simple training methods that begin with your company’s customer service mantra: Listen. Empathize. Do Whatever It Takes To Make It Right. You have everyone in the company take part in this training, including you, so your staff knows that it starts at the top. This mantra then becomes an integral part of every employee’s onboarding, regardless of their role.

Putting Out Business Fires, Permanently

This question, “What is the actual problem we are trying to solve?,” can be asked for nearly any business challenge you face and it can be modified based for the matter at hand. Beyond solving problems, it can also help you frame areas for growth. In some cases you’ll need to ask yourself, “What is the true opportunity ahead of me?” It will make you think big . . . maybe even bigger.

The key when going through this exercise is to peel back the layers and look beyond the surface. Don’t be fooled, this is definitely not the easy solution. It’s the one that budding entrepreneurs follow if they want to evolve from volunteer firefighter to a great business leader.

Source: http://yfsmagazine.com/2014/10/14/are-you-putting-out-fires-or-growing-your-company

5 Ways to Stand Above the Competition as a Property Manager

A huge part of being a property manager is learning how to market yourself and your company.

You have to do it twice, after all: once to your client owners, the property owners who allow you to look after their buildings, and once to your client tenants, who live in those buildings. For all that, you’re no “middle man.” Most of the minds sharp enough to succeed at investing in real estate aren’t really the same guys who want to get their hands dirty underneath a sink or spend their time chatting up the old lady with the seven cockatoos to convince her to pay the rent.

You’re the go-between who makes sure everyone gets as much of what they want as they can get.

Unfortunately, it’s rare that either side sees you in such a positive light, so mastering the art of marketing is part and parcel of the job. As you learn about marketing, you learn about a concept called the “USP,” or the Unique Selling Proposition. In short, it means, “What do you do differently than everyone else, and why does it make you better than them?” Or in even more easy terms: how do you stand out from the crowd?

Every business needs to have an idea of what makes them better than their competitors, but not many businesses actually have that idea. If you’re struggling to separate yourself from the crowd, here are four tips you can take to develop something outstanding.

5 Tips to Stand Out From the Crowd

1. Create Something Exclusive

Exclusivity sells — if you can describe to your clients and/or tenants something that you do that very few other people are doing, you create a firm “anchor point’ in their mind to hang their thoughts on.

Everyone is constantly competing for “price” and “customer service,” so you’ll have to come up with something that isn’t part and parcel of either of those.For example, perhaps you could offer the opportunity for tenants to pay their rent via an app or a mobile website. This appeals to tenants because it makes paying easy, and it appeals to clients because it means tenants pay on time more often. It’s also not something that many property managers are doing yet, so it presents the air of exclusivity.

2. Be Who You Are

When you sit down to brainstorm things you can do to stand out from the crowd, don’t try to become something you’re not. Consider your strengths, be authentic to what you (as an individual and as a company) do best, and above all, avoid insincerity.

If you’re not “green” by nature, don’t try to force-start a recycling program in your building. If you’re not tech savvy, skip out on the online rent payment. If you do something that doesn’t come off as genuine, you’ll end up chasing people away.

3. Build Anticipation

Whatever you create, spend the time to brainstorm some ways that you can whet your clients’ and tenants’ anticipation for that program. Oftentimes, the promise of a reveal is more effective of a marketing technique than simply laying out all of the details of a program or service up front.

In this case, you’re focusing mostly on the tenants — your clients tend to be more of the analytical, return-on-investment type who will respond better to a complete understanding of what you’re going to do for them.

4. Keep It Simple

A vast quantity of good ideas fail ultimately because they require too much effort. They sound good on paper, but when it comes time to actually implement some special program, it turns out that it’s more important to keep the normal flow of business flowing. Similarly, if an offering is going to be too challenging for a client and/or tenant to take advantage of easily, they simply won’t, and you might as well have never come up with the idea.

5. Be Consistent & Be Memorable

Very few property owners will hire you when they first encounter your marketing. The simple reason for this is that they’re usually contractually committed to one of your competitors.

So you want to be top of mind when they are thinking about switching companies. The only way to do that is by repeatedly exposing them to your company. They’ll more easily remember you, even with less repetition, if you can be memorable somehow. This is the reason people do crazy things in marketing!

If you can combine simplicity, authenticity, exclusivity, and anticipation consistently, while throwing in something to be memorable, your chances of standing out from your competition increase exponentially. Standing out means more business on both sides of the desk! 

What steps do you take to stand out — as an individual and as a company?

Let us know in the comments!

Source: http://www.biggerpockets.com/renewsblog/2014/09/27/5-ways-to-stand-above-the-competition-as-a-property-manager

5 Ways to Run Meetings Like a BOSS!

The worst thing happened to me on Monday mornings. I hesitantly opened my inbox and there it was, staring back at me:

“Calendar Invite: 9:30 to 11:00am – Weekly Priorities Meeting”

Fuck. I knew what this meant. An hour and a half meeting to “talk” about things we needed to focus on for the week. Sound like a good idea right?

It was. Just not how it was done.

Not only was all my energy drained after that meeting, but I had very little willpower to do work. What began as un update meeting turned into a strategy session on how to tackle  different situations people were in. No bueno.

So how do you run short, efficient meetings that leave your crew ready to fight? Here are 5 ways to run meetings like a boss!!

1. Always have an agenda!

This should go without saying. You need a framework for your discussion. Without one, meetings can easily turn into aimless social gatherings rather than productive working sessions. You can also allot time for each agenda item to effectively use the time you do have. Most importantly, be respectful of everyone’s time…everyone has their own shit to do too.

2.  Decisions should never wait for a meeting

Sure decisions can be made at meetings, but waiting for a meeting to make a decision can be deadly. The velocity of your company slows to its meeting schedule. If something needs to get done that needs a meeting, hold the meeting ASAP!!

3. Everyone should have concrete next steps or action items

Apple drives accountability at meetings by having a Directly Responsible Individual (DRI) whose in charge of any given action or task that needs to be done. With every task matched to a person, there will be significantly less confusion about who is getting what done.

4. Invite only the people needed

Invite people only involved with the content of the meeting. The marketing person doesn’t need to to be apart of a meeting on business operations, unless specifically requested. Less people = less time.

5. Know when to have stand up meetings vs sit down meetings

Stand up meetings are great for quick communication-based meetings. For example, at the beginning of each day, it’s good to have a quick 10 min stand up meeting that ONLY communicates what everyone is focused on for that day. If an idea or suggestion comes up, it should be tables for a later discussion. This remedies the “lack of communication” excuse for problems.

Sit-down ‘solution’ based meetings are used to discuss specific topics that need more thought. Even those these take longer, these should have a specified end time and decision on how to proceed.

Source: http://www.thephatstartup.com/2014/09/10/5-ways-to-run-meetings-like-a-boss

How Stress is Slowly Killing You (And How to Avoid it)

Let me guess…
You clicked on this article because your guilty conscience is telling you that you stress too much.
And you’re worried that all this time, you’ve been causing damage to your body (without even realizing it!)
Well, it’s no secret anymore. Chances are, it’s true. Stress is a killer and at its very least, it will lower your immune system and make you more prone to serious illnesses.
But…there’s some great news!
You can do something about it. You can live a healthy, balanced and happy life and you can avoid the nasty effects of stress.
To help you do that, I’ll be sharing with you 13 highly effective ways to drastically lower the stress in your life as well as ways to restore your body of stress related damage.
But first, find out how stress is one of the leading causing of death.

Stress is designed to protect us…not kill us!

Stress is actually designed to protect us. Also known as the fight or flight reflex, stress is our body’s way of protecting us from danger or predators.
When in danger, hormones, adrenaline and the stress hormone ‘Cortisol’ flood your blood stream which gives you more energy, makes you more alert and helps you to better deal with the situation.
Imagine you are being chased by a scary bear whose only intention is to fill his hungry stomach. Well, it’s that same stress response that will hopefully push you to make it out of there alive!
By now, you are probably wondering how stress can also kill you.

The shocking truth about stress

Surprisingly, that same fight or flight reflex that we experience in times of danger is also triggered every time we experience stress in our day to day lives.
Perhaps for you, your stress response is being triggered by work, financial or family related stress.
Whatever it may be, the problem with these ongoing stressful situations is that our bodies literally become accustomed to functioning at a highly stressed level.
This causes irreversible damage to our cardiovascular network such as our heart and blood vessels.
This is how stress can kill you.
First of all, stress speeds up the aging process in your body, particularly your blood vessels. As we stress, our blood pressure hits the roof. High blood pressure damages cells in the artery walls making them thick and stiff.
This restricts blood flow and our heart is forced to work harder to pump blood throughout our body. The more we stress, the more we damage our blood vessels.
As a result, you can experience:

• A heart attack as blood struggles to get to the heart
• A stroke, as high blood pressure can cause blood vessels to burst

Did you know that stress increases the risk of heart disease by 40%, a heart attack by 25% and a stroke by 50%?
Pretty shocking isn’t it?
But wait, stress can also cause your brain to shrink!  Extreme stress events reduce the amount of grey matter in our brain, mostly in the areas related to our emotions and psychological functions. Not only does this shrink your brain, it can also lead to psychiatric problems.
Stress can also cause;

• The immune system to shut down
• A reduce in white blood cells, and
• An increased susceptibility to disease

Believe it or not, but stress is the basic cause of 60% of all illness and disease. Three out of four people who visit the doctor are there because of stress related illnesses.
By now, I imagine that you are feeling determined to lower the amount of stress in your life.
Am I right?
And you’re probably thinking “wouldn’t it be great if the perfect guide to lowering stress could just be handed to me?”
Well, you’re in luck!
Below are 13 extremely effective ways to dramatically reduce stress in your life and to restore your body from stress related damage.

The only guide to tackling stress you’ll ever need

Step 1: Eliminate daily influences

1. Change your lifestyle

This is potentially the most important step in reducing your stress levels. The main reason that we are constantly stressed is because of our busy, competitive and overly productive lifestyles.
Think about the things that cause you stress and try to eliminate them.
Are you working too hard? Are you trying to multitask and be more productive? Multitasking is actually less effective than doing things more mindfully.
Other things you might try to eliminate are;

• Getting stuck in traffic (this is a big stressor)
• Being late for things
• Overwhelming yourself with too many tasks or goals
• Leaving things to the last minute
• Time constraints in the workplace

The power is in your court. Do you want to be extremely productive but feel stressed out on a daily basis, or rather do less, have more time for yourself and live a more relaxed and healthier life?

2.  Consume less caffeine

Caffeine literally puts your body in a state of stress. As your body adsorbs caffeine, you get a big adrenaline boost, your heart pumps faster, your blood pressure rises and the level of ‘cortisol’ (the stress hormone) can also increase.

 3. Eat less sugar and fatty foods

Sugar and fatty foods can increase blood clotting, blood pressure and can stimulate high levels of stress hormones in the blood stream.

4. Control your thoughts

Constant negative thoughts and worrying will higher your stress levels. We have approximately 50,000 thoughts per day. Just imagine, if only 10% of those thoughts were negative, that’s 5,000 negative thoughts a day!

5. Get enough sleep

Having too little sleep will cause you to feel naturally more stressed. Not only will your body have to work harder to complete its daily functions, you will be fatigued and less able to cope and deal with whatever gets thrown your way. And then you’ll probably want to drink more coffee too!!

Step 2: Take advantage of these natural stress relievers

 6.  Oxytocin

Oxytocin, also known as the cuddle hormone is believed to help reduce the stress response. It relaxes your blood vessels and helps to restore your heart from stress related damage.
How can you produce oxytocin? Well, it is released during positive social interaction and while caring for others so all you need to do is spend more time with others.

7.  Exercise

Exercise is a great stress reliever. When exercising, your body produces endorphins which makes you feel happy and reduces anxiety.

8. Playing with children and pets

Studies show that people who play with children and pets are dramatically less stressed.

 9. Laughing

Did you know that laughing is actually a form of therapy?
That’s because laughing has such a powerful influence over how happy and relaxed we feel. Not only does laughing lighten our load mentally, it causes changes in the body to take place including the release of endorphins, causing us to feel more positive.

 10. Meditation, yoga & breathing exercises

Simply put, stress is something that causes tension and strain. Yoga, meditation and breathing exercises are all proven ways of releasing stress and tension mentally and physically.
Yoga, meditation and focusing on your breathing helps you to feel in touch with yourself, clear your mind and resist getting wrapped up in your thoughts and the drama in your life.

11. Fill your nutritional gap

Consume more essential fatty acids and vitamin B and C. Essential fatty acids help to produce the hormones that help your body deal with stress. Vitamin B helps to ease stress by supporting the stress response and vitamin C feeds the adrenal tissues in your body.

12.  Take a two minute vacation

Close your eyes and take a two minute vacation in your head. Think about and imagine your favorite place for example. This will help you to take a step back from whatever stress you are experiencing and feel more rested.

13.  Take a real vacation

Now days, people literally work their life away. Life becomes about work and money. To stress less, it’s important to live a balanced life. Taking vacations from your busy life is necessary to lower your stress levels.
However you choose to relieve stress in your life, the important thing is that you take action!
Stress really is a killer, and at its least, it will cause irreversible damage to your body.
You may have to do a little shuffling in your life to lower the amount of stress you experience, but it will be well worth it.  Not only will you be healthier, you’ll be a lot happier too.
So I challenge you to take control from today onward. Don’t give into the temptations of a super productive lifestyle where your stress levels constantly hit the roof.
Rather, make the choice every day to put your health and happiness first by giving your body time to relax and restore itself.
Make the choice to live a healthy, balanced and stress free life.

Source: http://www.pickthebrain.com/blog/stress-slowly-killing-avoid/#E1jM2TidTYwCwj3U.99

4 Ways Income Investors May Get it Wrong

For decades, there has been a grand debate afoot in the investing world between “total return” and “income” investors. The truly educated don't worry about it much because they realize there isn't a lot to it. Your goal should be to avoid an extremist or absolutist position on the matter.

Income investing

The basic idea behind income investing is that you only spend the income from your investments. Seems like a great idea, right? It's easy to know when you have enough to retire—when the income from your investments replaces the income from your job (or at least your living expenses). Plus, you know you'll never run out of money if you're only spending the income.

Unfortunately, if you become an extremist in this camp, you may get burned by several issues. There are really 4 ways that income investors get it wrong when compared to a "total return" investor.

1. Income investors are likely to underspend

Safe withdrawal rate studies, such as the Trinity Study, have demonstrated it is quite safe (although not perfectly safe) for you to spend about 4% of a traditional portfolio each year and expect your portfolio to keep up with inflation throughout a 30-year retirement.

However, these days most traditional investments have a yield much less than 4%. The Vanguard Total Stock Market Fund yields just 1.8% and the Total Bond Market Fund is only slightly higher at 2.1%. CDs, "high-yield" savings accounts, short-term bond funds and most muni and Treasury bond funds are even worse. Even value stocks and REITs have yields much less than that.

If you're only going to be spending the yield on these investments, you're going to be spending much less than 4% per year. That means you will need to do one of 3 things: have a higher savings rate, work longer, or spend less in retirement. Since you are spending less, you are also likely to leave a lot more money behind at death.

In short, you'll spend less than you could have if you were willing to spend some principal.

2. Income investors may not hold the best portfolio

An income investor is far more likely than a total return investor to chase yield, since every little bit of extra yield increases his or her lifestyle. However, there are many investments with a high yield whose total return may not be what you would hope. The classic example is junk bonds, and the junkiest of junk bonds these days are peer-to-peer loans.

A portfolio of peer-to-peer loans may yield 20%, while only having a total return of 10% due to a high rate of default. If you're spending 20%, that portfolio isn't going to last long. That doesn't mean there isn't room for higher yielding investments in your portfolio, but you want to make sure you are holding a diversified portfolio with excellent long-term, risk-adjusted returns. Such a portfolio almost surely will include some assets that have a low-yield.

Never forget that a yield of 8% is not the same as a total return of 8%. While it feels good to have an 8% dividend in hand, if the investment actually lost 25% in value, you’re not making much progress financially.

Investment real estate is a particularly attractive asset class for income investors because a significant portion of the return comes from income, often 5% to 7% of a 7% to 10% return. This yield is much higher than anything available in the "paper market" outside of low-quality bonds.

While income property can form a significant portion of your portfolio, a portfolio of 100% real estate doesn't pass the sniff test when it comes to diversification. In addition, real estate possesses significant downsides as an asset class including significant maintenance and transaction costs, aspects of a second job, and an inefficient market requiring expertise and experience to get solid returns.

3. Income investors may pay too much in taxes

As a general rule, income tends not to be very tax efficient. There are exceptions, of course, as muni bonds are usually federal, and sometimes state, income tax free and some of the income from real estate can be shielded by depreciation, especially early on in the life of a property.

Bond dividends, REIT dividends, and CD interest is taxed at your regular marginal tax rates instead of the lower dividend and capital gains rates available with stocks. To make matters worse, you have to pay those taxes even if you didn't really want to spend that income yet. There is no way to defer the income until you actually want it in the future.

However, a total return investor can often "declare his own dividend" by selling some of his investment—for instance, a few shares of stock. The tax bill on that money (which spends just as well as CD interest) may be very low when you consider the ability to sell high-basis shares, harvest tax losses, and take advantage of the lower long-term capital gains rates, especially in the lower brackets.

4. Income investors may get burned by inflation

 
Higher yielding investments, such as CDs and bonds, tend not to keep up with inflation nearly as well as traditional lower yielding investments such as stocks.

If you focus too much just on income, you may forget that your real opponent in the investing game is your personal rate of inflation. If your income is steady, or only increasing slowly, and your expenses are increasing at a moderate rate, it won't take long before you will be faced with an unsavory choice: cut your lifestyle or sell your investments.

A total return investor spending 4% of his portfolio each year has an inflation adjustment built in to his plan. An income investor needs not only to make sure his investment income is greater than his spending, but also needs to make sure it will stay that way as the years go by.

The solution

 
Rather than focusing only on your investment yield, first build a reasonable, diversified, low-cost portfolio without considering the yield. Then, when it comes time to spend from that portfolio, use a combination of income and tax-efficient selling of assets to fund your retirement-spending needs.

Avoid an extreme position on income in order to develop a successful investing plan.

 

Source: http://www.hcplive.com/physicians-money-digest/personal-finance/Dahle-4-Ways-Income-Investors-May-Get-it-Wrong

10 Characteristics Of High-Performing Teams

According to Ron Ricci and Carl Wiese, authors of the book, The Collaboration Imperative, high-performing teams have the following characteristics:

1. People have solid and deep trust in each other and in the team's purpose--they feel free to express feelings and ideas.
2. Everybody is working toward the same goals.
3. Team members are clear on how to work together and how to accomplish tasks.
4. Everyone understands both team and individual performance goals and knows what is expected.
5. Team members actively diffuse tension and friction in a relaxed and informal atmosphere.
6. The team engages in extensive discussion, and everyone gets a chance to contribute--even the introverts.
7. Disagreement is viewed as a good thing and conflicts are managed.  Criticism is constructive and is oriented toward problem solving and removing obstacles.
8. The team makes decisions when there is natural agreement--in the cases where agreement is elusive, a decision is made by the team lead or executive sponsor, after which little second-guessing occurs.
9. Each team member carries his or her own weight and respects the team processes and other members.
10. The leadership of the team shirts from time to time, as appropriate, to drive results.  No individual members are more important than the team.

Source: http://ericjacobsononmanagement.blogspot.co.uk/2014/08/10-characteristics-of-high-performing.html

Become The Leader Worth Following

Examples of leaders are everywhere. Many are powerful, many are popular, but few are worthy of being followed.

The ones that extend themselves to keep promises, act ethically, lead by example, show fairness, act out of humility, show confidence, and demonstrate trust.

They are the people we count on. They are the ones we want to follow without being told.

Here are some ways that these true leaders go about their work and lives. Ask yourself which of these things you’re already doing and which you need to work on:

A leader worth following leads with ethics. True leaders are proof you can do well by doing right. Their ethics are not conveniently molded to fit a particular situation but indelibly etched in their very being, as natural impulses that never go stale or out of style.

A leader worth following leads by example. True leaders don’t expect others to do anything they aren’t willing to do themselves. Their leadership comes from their actions, not simply their words. They hold themselves equally responsible as those they are leading.

A leader worth following leads with fairness. True leaders treat everyone fairly.It’s a necessity.They understand that fairness is the ability to rise above their own prejudices and treat everyone equally.

A leader worth following leads with humility. True leaders know that humility is concerned with what is right, that it leads to strength and not to weakness—that it is the equilibrium of power. It is the highest form of self-respect to lead from the stance of humility.

A leader worth following leads brings out the best in others. True leaders guide and support others in their success, ensuring that everyone is performing at their best, doing the work they are meant to do, and doing it with excellence.

A leader worthy of following kindles within others a desire to excel simply by believing in them—bringing out the best in them and building their confidence in return.

A leader worth following leads with trust. True leaders are competent and reliable and consistent, and in return they get people who are loyal and show them great respect. They lead with trust, not power or control.

A leader worth following leads with confidence. True leaders have great confidence and courage. They look fear in the face and defy it, they know that wherever their heart is, there lies their confidence.

Most of all, a leader worth following embraces the concept that leadership is, above all, a privilege and recognizes that the things they think, say, and do have a significant impact on those around them.

Lead From Within: Leadership is a privilege, and making yourself worthy of being followed comes with great responsibility. It means you can inspire others to dream more, learn more, do more, be more. Being the leader matters most if the position is taken seriously and is used to make a difference.

Source: http://www.lollydaskal.com/leadership/become-leader-worth-following

Simple Accounting Tips for Growing Small Businesses

Your small business has reached that point where excel spreadsheets just can't cut it for accounts any more. This growth is great for your business but it means you may be facing the task of creating an entire accounts department, potentially from scratch.

It is worth taking a moment to consider this move before you dive right in. These few points should be kept in mind when you find your small business accounts growing.

Don't DIY

While accounts are a vital part of a business, without the business there is not much use for accounts. As the owner of a business you are the driving force that keeps that business in motion, pushes sales and sustains the income that makes accounts necessary.

Spending your valuable time struggling with accounts to save on the expense of an accountant is a false economy. Bookkeepers and accountants can often be hired on a freelance basis as you determine what your requirements are.

Accountants can also provide much more than book balancing. They can advise on many issues such as tax planning that can result in substantial savings for a business.

Don't Skimp on the Hire

A less experienced accountant might be less expensive but they will have to learn a lot on the job and much of that learning will come from making mistakes, at your business. Larger companies can afford to take on junior staff who can be supervised and mentored by experienced co-workers.

For small businesses this is not an option. Not only will an experienced accountant be far less likely to make errors they will also be able to advise you on spending strategies as well as act as a CFO, negotiating on your behalf with banks or other creditors.

Make Sure your Staff and Software Match

Your new accountant may have years of experience but if its in another accounting software package that might be a problem. Getting to grips with new software may take some time and understanding its finer points will take even longer.

Make sure they have time to get to know the software you have or if you can, implement the software your new accountant is familiar with.

Don’t Be Afraid to Implement Direct Debit

It may ruffle a few feathers but you should always insist on receiving payment by direct debit. Primarily it ensures a healthy cash flow for your business. Any small business owner will tell you how vital cash flow is to the survival of their business, particularly in transitional growth periods.

The other key benefit of using direct debit is the simplification of record keeping. Using accounting software that not only records but implements direct debits can save on a lot of accounting work and also ensures more accurate accounts.

Be Smart About Tracking your Expenses

Everyone knows how important it is to keep track of expenses. But somehow everyone always forgets to do it. For many small businesses keeping track of expenses means stuffing every receipt from every expense in a folder then forgetting about it until it’s time to do the books.

This is fine until people start forgetting to keep receipts, or misplace them or even start a second expense folder because they can’t find the first. Taking the time to set up a dedicated expenses debit or credit card means that all expenses are recorded automatically, eliminating the need to keep receipts.

Source: http://www.brook.ie/expert/accounting-software/simple-accounting-tips-for-growing-small-businesses

If You’re Always Working, You’re Never Working Well

In early April a series of reports appeared online in the United States and the United Kingdom lamenting the “lazy French.”  A new labor law in France had apparently banned organizations from e-mailing their employees after 6 p.m. In fact, it turned out to be more a case of “lazy journalists” than “lazy French”: as The Economist explained, the “law” was not a law at all but a labor agreement aimed at improving health among a specific group of professionals, and there wasn’t even a hard curfew for digital communication.

Like all myths, however, this one revealed a set of abiding values subscribed to by the folk who perpetuated it. Brits and Americans have long suspected that the French (and others) are goofing off while they — the good corporate soldiers — continue to toil away.  They’re proud about it too. A Gallup poll, released in May, found that most U.S. workers see their constant connection with officemates as a positive.  In the age of the smartphone, there’s no such thing as “downtime,” and we profess to be happier — and more productive — for it.

Are we, though?  After reviewing thousands of books, articles and papers on the topic and interviewing dozens of experts in fields from neurobiology and psychology to education and literature, I don’t think so. When we accept this new and permanent ambient workload — checking business news in bed or responding to coworkers’ emails during breakfast — we may believe that we are dedicated, tireless workers. But, actually, we’re mostly just getting the small, easy things done. Being busy does not equate to being effective.

And let’s not forget about ambient play, which often distracts us from accomplishing our most important tasks. Facebook and Twitter report that their sites are most active during office hours. After all, the employee who’s required to respond to her boss on Sunday morning will think nothing of responding to friends on Wednesday afternoon. And research shows that these digital derailments are costly: it’s not only the minutes lost responding to a tweet but also the time and energy required to “reenter” the original task. As Douglas Gentile, a professor at Iowa State University who studies the effects of media on attention spans, explains, “Everyone who thinks they’re good at multitasking is wrong. We’re actually multiswitching [and] giving ourselves extra work.”

Each shift of focus sets our brain back and creates a cumulative attention debt, resulting in a harried workforce incapable of producing sustained burst of creative energy. Constant connection means that we’re “always at work”, yes, but also that we’re “never at work” — fully.

People and organizations looking for brave new ideas or significant critical thinking need to recognize that disconnection is therefore sometimes preferable to connection. You don’t ask a jogger who just ran six miles to compete in a sprint, so why would you ask an executive who’s been answering a pinging phone all morning to deliver top-drawer content at his next meeting?

Some parts of the workforce do rely on constant real-time communication. But others should demand and be given proper breaks from the digital maelstrom. Batch-processing email is one easy solution.  Do it a few times a day and reserve the rest of your time for real work.  Most colleagues and clients will survive without a response for three hours, and if it’s truly urgent, they can pick up the phone.

The great tech historian Melvin Kranzberg said, “technology is neither good nor bad, nor is it neutral.” That statement should become a real tenant of the information age. I don’t advocate abstinence or blanket rules like that fictional post-6 p.m. email ban.  (Though, if you want to try unplugging for a weekend, check out my “analog August” challenge.)

However, I do think our cult of connectivity has gone too far. We can’t keep falling prey to ambient work or play. Instead, we must actively decide on our level of tech engagement at different times to maximize productivity, success, and happiness.

Source: http://blogs.hbr.org/2014/08/if-youre-always-working-youre-never-working-well

Lessons from an entrepreneur: Start before you are ready

I attended an entrepreneurship summit recently, where I was asked to help select and distribute an interesting award. Attendees were asked to write down something inspiring they learned at the summit and the best entry would win.

The majority of attendees entered the same mantra from an earlier speaker: Start before you’re ready. However, only one attendee went the extra mile and described what that principle meant to him. He applied the knowledge and was named the winner.

I was impressed by that because, of all the so-called entrepreneurs in the room, he was the real deal.

Thinking about this, I decided to look at my own entrepreneurship efforts (some successful and some not) to see how the “Start before you’re ready” mantra could apply to me. Here’s what I learned:

Don’t wait for perfection before launching your idea. In an effort not to fail, many entrepreneurs spend precious time and money perfecting a product or service before launching it to the market. I am no different. When developing an idea I had for a new social network, I was focused on creating the best user experience possible before launching it, when I should have launched the idea and let users guide my product development. Looking back, I wish I would have spent half the time and money on my MVP (minimum viable product) because my early adopters would likely work through challenges with me.

Focus on a few user scenarios first. Entrepreneurs want everyone to love their idea, and this can cause paralysis. Instead of trying to build a product for everyone, it’s better to focus on a few use cases, learn from these users to refine your idea, and then roll the idea out to more users. My reluctance to walk away from my big vision delayed the launch of my social network into the market and also watered down the user experience.

Pick the right investors and meet with them quickly. Even if you’re not yet looking for funding, it’s important to begin conversations early with the right investors. When launching my idea, I made the mistake of reaching out to the investors I know, not necessarily the right investors. Instead of talking to investors who understand B2C companies, I went to my tried-and-true network of B2B investors, spending time with people who would never invest in my idea. Instead, I should have used my investor contacts to network to find the right investors for my idea.

Claim your seat at the table. When talking with investors and other advisors, it’s easy to get pulled off task by following advice that’s not right for your idea. When meeting with advisors, ask yourself what you want to get out of the meeting and stay true to your idea. I ended up following advice that caused me to abandon some major features I had planned for my idea. These features would have driven value to a user, but I was pulled in another direction.

Finally, entrepreneurial success is often about people and execution, but it also is about timing. When looking at today’s great entrepreneurial companies, it’s clear that they had the right idea hitting the right market at the right time. It’s almost impossible to replicate this as a template or best practice. This is why it is so critical to solicit market feedback early and often to further assess the timing and market readiness.

Source: http://businesstips.com/lessons-entrepreneur-start-ready

Find Out What Type of Leader You Are

You’ve probably heard the saying, “Absolutely power corrupts absolutely.” Give a leader power and see how they respond to it.

Leadership is all about power and influence. Leaders use power to get things done. According to psychologist Ronald E. Riggio, there are two general types of power. The first is socialized power. Socialized power is power used to benefit others. Leaders that exercise this type of power are primarily concerned with the best interests of those they serve, not themselves.

The other form of power is called personalized power, and it is using power for personal gain. Personal power can become a problem when it dominates and gains, often at the followers’ expense.

What type of leader are you? And what type of power do you exert?

Business Insider details seven types of power that are present in the workplace:

1. Coercive Power - where a person leads by threats and force. It is unlikely to win respect and loyalty from employees for long.
2. Expert Power - the perception that one possesses superior skills or knowledge.
3. Informational Power - where a person possesses needed or wanted information. This is a short-term power that doesn’t necessarily influence or build credibility.
4. Reward Power – where a person motivates others by offering raises, promotions, and awards.
5. Connection Power - where a person attains influence by gaining favor or simply acquaintance with a powerful person. This power is all about networking.
6. Referent Power - the ability to convey a sense of personal acceptance or approval. People with charisma, integrity and other positive qualities hold it. It is the most valuable type of power.

Being a leader puts you in a position of influence. So how do you keep from letting that power go to your head? Here are four tips to avoid the CEO power-trip:

1. Be a Man/Woman of Character. As a leader, you will inevitably face competing demands from time to time. The ability to manage these demands with integrity, honesty and selflessness becomes crucial in times like these. Being willing to sacrifice your success, your fortune and even your life takes courage and character.

2. Stay Attentive. A good leader needs to be accurately informed. Be sure you have all the available facts before deciding anything. Thinking through the potential consequences of your decisions often prevents problems from occurring down the road.

3. Stay Connected. Having the ability to develop meaningful relationships with others is the most important quality a leader can possess. You gain power through relationships. Developing relationships with key people will expand your sphere of influence, your access to resources and your capacity to make things happen.

4. Serve Others. One of the greatest attributes of a good leader is your willingness to serve others. This service, however, should come from the heart and be genuine. Putting others’ needs and desires before your own is reflected in the attitude and actions of a good leader.

Source: http://bcrelativity.com/2014/07/17/find-out-what-type-of-leader-you-are

The Best Way to Tell If You're a Successful Entrepreneur

I'm not a very successful entrepreneur.  Are you?
You may think so because your business is doing well financially.  Or you've managed to stick a lot of money in the bank.  Or you're on the cover of Inc. Magazine.  But these are not the true indicators of success.  The most successful entrepreneurs I know are the ones that are building value and creating assets.  And do you know how they do that?  They take vacations. Yes...vacations! And for a long time too.  Whenever they want.  Unfortunately, I'm unable to do this.  Which is why I'm not truly successful.  And, apparently, I'm not alone.
According to data released today from Office Depot, a whopping one-third of small business owners in the U.S. are unable to break away for vacation this summer.  60% of them cited financial hardship as the reason.  The rest had excuses ranging from "it's my busy season" to "I don't have enough staff."  These are not successful business owners either.
Sure, I take vacation.  But it has to be planned well in advance.  I can never take more than a week at a time. I have to be somewhere accessible.  During my vacation I'm always checking in with the office.  I'm answering questions when away.  I'm sending emails, taking a few calls, talking to my staff. I'm that guy who's watching "Old Faithful" while responding to text messages at the same time or talking on the phone while his family is going on that Disney ride without him.  This is not success.  This is the madness of keeping a business running while I'm trying to spend time with my family.  I'm earning a living. But I'm not creating value.  A valuable company is the true sign of an entrepreneur's success.
A valuable company doesn't just have a strong balance sheet.  Or strong earnings. Or a healthy cash flow. Those are all good things.  But a truly valuable company has intangible value.  It can run on its own.  There is infrastructure.  There is organization.  There is a chain of command.  It's a ship that will keep sailing on course regardless if the captain is there for a reasonable period of time.  It has processes and procedures and protocols.  There are set ways of doing things, documentation, manuals and rules.  A McDonald's franchise is valuable because everything is so regimented that the owner can slot in a different manager every week who can then run with the ball after just a little training.  This is not my business.
If a potential buyer were to look at my business he'd find a ten person company that's completely reliant on me.  I sign all the checks.  I make all the deals.  I approve all the transactions.  I hire all the workers.  I make all the decisions.  I have the primary relationship with our clients. I micro-manage every project.  A buyer would need to keep me on as an employee or consultant to keep the business going so that it can gradually, someday be transitioned over to a company that can run without me.  If I were hit by a bus then my company would ultimately fold in on itself after just a few short weeks.  This is not success.  This is not value.  This is just a glorified job. I haven't been creating an asset.  I've just created work for myself and nine others.
Is it a good time to sell your business?  Definitely, absolutely, yes.  According to a BizBuySell.com report issued this week, second quarter small business transactions reached their pre-recession activity, up 11% over Q2 2013 and transactions were just 3% short of the record mark set in Q2 2008.  The 2,029 reported transactions in Q2 2014 represented the second highest total recorded since BizBuySell.com began tracking insights data in 2007.
Why all the activity? Interest rates are low so getting financing is attractive.  Inflation is low which means alternative investments are fewer.  Capital gains taxes are still at a relatively low level while the general population of business owners are getting older and looking to retire, which creates more supply of available companies.  "If you're an experienced entrepreneur then now's a great time to buy a company," Curtis Kroeker, President of Marketplace Verticals at BizBuySell, told me recently.
Unfortunately, if you're like me, your selling price may not be as high as you hoped.  And that's because your business can't run on its own, even when you're on vacation.  A buyer will need to buy you along with the business.  And that really impacts your company's value.  And your value too.  So maybe you think you're a successful entrepreneur.  But if your situation is like mine then really...you're not.

Source: http://www.inc.com/gene-marks/the-one-way-to-tell-if-you-re-a-successful-entrepreneur.html

Work Smarter Not Harder

It is said that when one lives for a stronger purpose, then hard work is not an option but a necessity. No matter how inspirational this saying may sound, it doesn’t have much to do with real life scenarios. The endless list of tasks that need to be completed on time, the overbearing bosses and ever-increasing work pressure render the convention of hard work ineffective. When time is your enemy and productivity is your goal, you need to be a step ahead. That’s when your mental agility and out-of-the-box thinking comes into play.

Smart work is the latest buzzword in the modern-day corporate world. It means getting things done with minimal efforts, resources and within deadlines. Creativity, pragmatism, flexibility, enthusiasm and astuteness are the most important qualities that will help you work smart. Keep reading to learn how can you work smart on the job and expect better results.

Maintain a To-Do List 

Smart working people like to have a clear picture of what needs to be accomplished during the day. Maintaining a to-do list, preferably on paper than just in your mind, will help you prioritize your tasks. You can delegate the responsibility of each task to the right person with clear instructions. A well maintained and religiously followed to-do list will help you avoid duplicate work, waste of time and avoid missing out on important activities.

Steer Clear of Over-Scheduling

Today, workplaces are bursting with workload and it is up to you not to let it get the best of you. If you think working for longer hours or on multi-tasking at once can help you pull off everything, then you are downright wrong. These approaches will only diminish your productivity in the long run. Therefore, do not commit to tasks that you cannot complete within the day. Learn to say no when you are asked to bite off more than you can chew.

Synchronize Your Work and Life

Keeping your productivity high is the priority when you want to be a smart worker. It is important that you establish a balance between your work and personal life. A lack of balance between work and home can cause you to fail at fulfilling the demands of your profession and your family, leaving you feeling down in the dumps. Therefore, follow the right lifestyle in order to composedly cater to the demands of your work and family. This is a great way to avoid job burnout and depression.

Learning through Reflection

A collective study conducted by researchers at Harvard Business School, University of North Carolina and HEC Paris suggests that learning new things by dedicating some time towards thinking about it proves effective. By thinking, we mean reflective thinking. A person should articulate the key steps about what they just learned before putting it into practice. The result will decrease the probability of having to retake the lesson, better performance and higher productivity.

Engage is Creative Endeavors

A recent research study conducted by researchers from, San Francisco State University, Air Force Research Laboratory, Ohio and Illinois State University suggests a strong positive correlation between one’s engagement in creative activities and their work-place performance. The findings have been published in the Journal of Occupational and Organizational Psychology. Engaging yourself in non-work creative activities will stimulate your intelligence and create a bend of mind that favors out of the box thinking. You are more likely to come up with creative solutions at work to resolve the routine complexities of business.

By maintaining a learning attitude, following the learning by reflection technique and by developing logical workflow patterns, you can work smart and be a step ahead of time. Always remember, slogging like a beast of burden will only affect your productivity and push you in a vicious circle.

Source: http://runapptivo.apptivo.com/work-smarter-not-harder-12228.html