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Archive for December, 2008

Time to Shed Some Fat

Sunday, December 21st, 2008

Many of us are probably still in disbelief that the economy turned so bad so fast. In a matter of few months, our investment portfolios have dropped 30, 40, even 50%. And it’s not news any more when we read about company layoffs or industry bailouts. What does this all mean to small business owners? Some of my clients say they haven’t felt it but are watchful; others are already seeing the impact of the recession on their businesses. What we know for sure is that there’re some lean times ahead – it’s wise to take precaution and start reviewing your business and looking for ways to cut cost and save money.
For that reason, I’ve been meaning to write an article on ways to cut costs for my clients as a guide. Then someone else beat me to it… I came across an article by Annette Bourdeau and Jennifer Myers in Profit magazine – “Managing – 75 Ways to Cut Costs Now”. There are such tips as “Buy generic supplies whenever possible. Do you need name-brand pencils?” I knew Annette and Jennifer had a comprehensive list and nailed it for me. Here is the link to their handy-dandy list.

It doesn’t matter if you run a one-person operation, or have 100 strong in staff, there are tips in this article that will save you money. It will be a worthwhile exercise for your business.

Planning for the Rainy Days

Wednesday, December 10th, 2008

Ever since I decided to fly solo and work as an independent business consultant, I have enjoyed the flexibility and the immense satisfaction of running my own business. This very same flexibility and satisfaction is probably what motivated many other entrepreneurs to take the plunge. However, not all of us remembered to plan for the unexpected life throws at us.

A couple of months ago, someone who was very dear to me past away very suddenly, leaving behind loved ones who were much unprepared for his sudden departure. I had to take time off work. Unlike full-time employment, many small business owners don’t have the luxury of calling in sick as their business operations depend on their presence. What happens when life happens and you need time off work, or would simply like to take a well deserved break? Some emergency planning ahead of time will ease the anxiety of leaving your business.

  • Have someone (or several people) who you can rely on to step up and take over when you are away from work. This could be a family member, or even a friendly competitor who knows the nature of the business.
  • Create a manual of tasks that need to be done daily, weekly, even monthly, so someone else is able to attend to your business and keep it afloat for the period of time you are away. The list could look like this:
  1. Daily: answer phone calls, reply emails, sort mail, follow up with clients, etc.
  2. Weekly: invoice clients, debt collections, pay bills, etc.
  3. Monthly: balance cheque book, sales review, etc.
  • It may be helpful to document each business process if it’s not self explanatory
  • Compile all the contact information of your clients, suppliers, and affiliates
  • Have steps in place to inform your clients or suppliers who are expecting deliverables in the case of your absence. It could be automated email or voice response. If there are deadlines for your business, make sure someone is calling the appropriate parties to re-negotiate the timelines
  • Make sure your website or business pamphlets have up to date information to guide your potential clients so they can easily be redirected in your absence

The better you plan for the raining days, the less stressful you will feel when life happens and you need some time off to take care of yourself.