May 17, 2012

How to motivate your staff?

How to motivate your staff?

As a web hosting business owner, you face the important challenge of getting the most from your employees. Perhaps you have a staff that already feels overworked and depressed. This can have significant consequences in regards to quality of service for your business. A loss in quality will eventually result in less revenue. This is something you need to prevent or that you have to fix if it already happened. But how do you motivate staff that feels depressed? How do you keep motivation high and the staff emphasized about their tasks?

What does a great business manager do that an average business manager doesn’t? Motivate, motivate, motivate—and I’m not talking about the occasional pep talk or a halftime speech. Great managers motivate their staff on an ongoing base to prevent having staff members slipping into that dark hole of fading motivation.

To motivate and to retain your employees, you must understand how they want to be rewarded. What makes the employee feel appreciated? Nearly employee has a preferred reward structure. This is usually a combination of compensation (money), work-life balance (time off), and recognition (e.g. employee of the month). Compensation is not limited to pure cash (salary, bonus pay, etc.) but can also be in form of gift certificates or even movie tickets. Time off is not only the available vacation. Imagine walking up to an employee at lunch time and sending him home for the rest of the day just because. Or sponsor a night at a close by vacation resort. You get the idea. Recognition can include formal awards, public acknowledgments, and title changes. A title change should usually be accompanied by a salary increase though.

Different employees will value different combinations of motivation. Not everyone is alike, and the possible combination of rewards will change over time the same way as aspects of employees’ work life and personal life change. Employees with families will are more often motivated with work-life balance affecting rewards. Younger employees are often motivated more by compensation and recognition. They might have to pay off student loans, car loans or are planning on buying a house or apartment soon.

You, the business owner should think about recognition and rewards for each budget year. Put some money aside for these things. You will most-likely have limited resources with which to reward your employees. Being creative can still get you going. Suppose one of your employees has recently worked way beyond the call of duty and went several extra miles for a customer. You could reward him with a 150 dollar prepaid gift certificate (compensation), an afternoon off (work-life balance), a special award at a team meeting (employee of the month = recognition). The options are there – you just need to put them into the right perspective.

But this is not everything about team morale. If morale is already down you should work on the cause for this and not just patch the open wound. Talk to your employees on a regular base. A weekly team meeting might be a good thing. Let everyone explain (in high level words) what the planned tasks for the week are and make sure that help is available where needed. No employee should feel left alone with a huge task on his or her plate. Be sure to set clear, obtainable goals for every team member and work with your staff to build a strategy to attain those goals. Be aware – you will have employees who do not need much supervision and others that do to do a great job. Great business owners always have their finger on the pulse of the team and individual’s morale.

30 Ways to be a Butt-Head Boss

30 Ways to be a Butt-Head Boss

1. Trust no one. Not your superiors and not your employees. Especially not your employees. They’re probably out to get you anyway.

2. Believe that all of your people are lazy, good-for-nothing slackers. Remind them of that frequently.

3. Get mad and shout a lot. This will reinforce to your “workers” that you mean business.

4. Never grant special favors. Having babies, being sick, taking time off to go to weddings, funerals or 50th anniversaries are just ways to get out of work. Don’t let them get away with it.

5. Try not to make decisions. Decisions will only give your boss a reason to fire you. If a decision is absolutely necessary, try to postpone it as long as possible.

6. Do not tolerate errors. Of any kind or any size. Even the smallest of errors just reinforces the fact that your people are screw-ups. Fire people for minor infractions.

7. Criticize. Never be satisfied with any of your employees’ work products. If they were trying at all, they would be doing better.

8. Refuse to listen to suggestions. Your subordinates are just trying to get you to do something that will get you into trouble. They don’t have the sense god gave a goose anyway. Your way is the right way.

9. Complain to various employees how bad the others are. Try to get them on your side so they’ll group together and force the really worthless people to leave.

10. Change your mind often. About everything – policies, procedures, work assignments. Don’t let your employees become complacent with the way things are.

11. Come into work late and leave early. Take long lunches. Show your people that you’re the boss and can do whatever you want.

12. Prohibit office celebrations and parties. No birthdays, no holiday parties or decorating, no nothing. This is no place to be goofing off. There is work to do.

13. Never praise your people. They’ll just expect more of it. Besides, no one ever does anything that’s worth recognizing anyway.

14. Never tell any of your employees exactly what you do. They’ll use it against you.

15. Refuse to discuss the status of the company with any of your employees. Finances and future plans are none of their business. They need to focus on just their jobs.

16. Do not train your employees. Give them only the minimum information they need to do their jobs. Let them prove themselves by figuring out the details.

17. Definitely do not cross-train your people. That will only cause them to get big-headed about how much they know. Don’t give them a reason to complain about their miserable wages.

18. Give the easy jobs to the employees who always agree with you. They’ve earned it.

19. Give the really cushy jobs to the really “friendly” people – the cutest or best looking ones who aren’t afraid to show just how friendly they are. Being a boss is tough. You deserve your perks.

20. Petty cash is your discretionary lunch money. Enjoy it.

21. Cut company expenses by firing whoever you want. Demand increases in productivity from those remaining. Maybe they will eventually get the idea that they need to get to work.

22. Never show your people that you care about them. It would make you look weak and erode your status as a boss.

23. Display your power. Sit behind a big desk. Make sure all the other chairs in your office are much lower than yours.

24. Never go to employees’ work stations to discuss anything – unless you need to chew them out. You’re much too important to leave your office. Make them come to you.

25. Use meetings to intimidate your employees. Be loud, be forceful, pound the table – show them who’s boss.

26. Do not accept the blame for anything. When your people screw up, it’s completely their fault. Never yours.

27. Take full credit for everything good that happens in your group. None of your employees are smart enough to have done it by themselves.

28. Never, ever make your own coffee. You’re much too important to spend your time doing that.

29. Tell your employees that you’re reading ALL e-mails whether you do or not. Do not permit them to make personal phone calls for any reason. Make sure they know that you are watching their every move. You can’t trust any of them.

30. Never, never, never give any of your people access to the Internet. They’ll just waste their time accessing porn sites or maybe even self-improvement sites like NuPathz.com.

About The Author

Gene Simmons, through NuPathz.com, provides an easy reading self-help blog, articles, quotations, thoughts and links along with affordable self-help and self improvement books & materials – all designed to help folks find the road to a more enjoyable lifestyle, to pass on some of life’s “secrets for survival” in a chaotic world & offer a few smiles along the way. It’s a down-to-earth, simple approach to discovering a better life. You can visit Gene at his website.

gene@nupathz.com

Your Business: Part-Time Real Estate Agent

Your Business: Part-Time Real Estate Agent

Is your business being a part-time real estate agent? Well, if so you better be good as otherwise the market will tear you apart. I am currently in the market trying to sell my house and I already bought a new one. I have been dealing with a very professional real estate agent who owns her own agency and does this full-time. However, during the process I visited many open houses and talked to many real estate agents and watched how everyone was doing things. It’s amazing how easy it is to separate the full-time realtors from the part-time people. And often this is the same separation between a successful realtor and someone less successful and less professional.

If you are a part-time real estate agent you have a great shot at this business. The main thing however is to separate yourself from all the other part-time realtors out there. It starts with your appearance. Look professional at all times when being a realtor. Don’t go overboard, but do not go cheap. Drive a decent car – not something too old. Understatement is fine if done correctly. Instead of driving a Lexus or Mercedes Benz you could drive a loaded 4-5 year old Jeep Grand Cherokee.

An experienced real estate agent advises customers in regards to what to do in their house to make it look more appealing. I have seen too many part-time agents not really knowing anything about home staging. Being a real estate agent means to be passionate and knowledgeable, too. This separates the boys from the men so to speak. This job is not just about the money and that is often shown in how successful a real estate agent is. They hope the house will sell itself and they can collect a nice commission. This might work in boom times to an Ok level, but when you collect $20,000 per month in commissions, your more professional counterparts make 4 or 5 times as much + build a loyal customer base at the same time.

This article only scratches the surface about this topic. Being a real estate agent can be a very rewarding business. However, treat it as a part-time business and success will never come.

Change Management Processes for Corporations

Change Management Processes for Corporations

Change Management is a critical piece for corporations. Large corporations depend on it for anything that affects their production environment. But what is change management at all? Change Management is the process that kicks in when a change is made to the production environment of a business. For the matter of this article we will use an Information Technology related case to explain Change Management.

Company “A” uses change management to keep track of changes to its web servers. The change management process also allows to inform all internal business units and departments of the upcoming change to the web servers and what parts of the business are affected by this change. The change management process is started by the decision to update the web servers with a newer version of the web application. The website administrators, the QA department and the developers have finished the final testing of the new application update and now it is time to go live.

The website administrator starts the process by writing down the purpose of the change and what steps are required to complete the task. He also describes the impact to internal and external users and which departments of the business might be affected (example: external customer service). The description of these tasks for the update are usually high level and not too detailed. The reason for this is more to inform the business about the change and not to list an exact how to step by step guide.

Once the website administrator has finished the initial change management request form (electronic or hardcopy) it goes up one level to his direct manager and with his approval the change management request is being distributed among departmental points of contact that have been defined in an earlier process. The different departments and business groups review the change management request to evaluate the impact to the department or group. If no impact is visible or if a possible impact is already addressed and covered in the change request the department or group approves the change management. If a possible impact is not addressed the group or department denies approval and ask for more information or how the issue in question will be addressed. Approval for the change request goes to “pending”.

Once all issues are addressed and worked out and every necessary approval has been submitted the change management request awaits one more step – CTO (Chief Technology Officer) or CIO (Chief Information Officer) approval might be required. This process makes sure that a track record of changes that affect the business is created and that every group, every department and the business management are aware of what is going on.

Some critics see change management as a process that slows down the ability to act fast when needed. Others see it as assurance for continuing business success as department A might not realize how big the impact of a proposed change is to department B.

7 Tips to Improving Your Cash Flow

7 Tips to Improving Your Cash Flow

Cash is King… That is what everyone tells us and it is true! You cannot function successfully in any business without proper cash flow. So if this Cash Principle is so well known, then why is it that so many businesses struggle? Sometimes the obvious is not always so obvious when you are entrenched in running the day-to-day aspects of your business. Here are 7 Tips to Improve Your Cash Flow!

1. Cash and Carry. Operate a cash and carry type business versus worrying about receivables. The best business plan is one where customers pay at the time of purchase so you don’t have to worry about invoicing or collection procedures. Invoicing and collections take up valuable time, so you want to come up with creative ways to incentivize payment immediately. Set the ground rules in the beginning so your clients know what you expect.

2. Receivables Collection. Collect your receivables in a prompt manner. Don’t let them hang out there forever until your customers decide they want to pay you. Being a good steward of your business is “good business”, so have a process in place for invoicing and collections. The longer your receivables are outstanding, the less likely you are to collect. You don’t have to be mean and rough to collect promptly from your clients. A good rule of thumb is that you should always have a due date on the invoice and then send out a follow-up statement within 10 to 30 days from the due date. Each industry and business environment has different insights as to what is the “ideal” time. I would not send follow-up correspondence any sooner than 10 days past due. Payment may just be delayed by the mail; however, waiting longer than 30 days is too long. If you have not received payment within 45 to 60 days of the due date, then a phone call should be made to follow-up with your customer. Accounts that go past due 90 or more days should be taken to the next level of collections with an outside agency, internal collection “ninja” or any other mode you have established for collections. Find what works best for your business and stick to it. Each day that you are delayed in receiving payment is an additional cost of doing business. Time is money.

3. Receivables Funding. Implement an accounts receivable funding program. Factoring of accounts receivable has become very popular and it can be a great way of keeping the cash flowing. Businesses who deal with large businesses or government agencies lend themselves to utilizing factoring programs. If your clientele is made up of small businesses or individuals, you may find it more difficult to establish an accounts receivable funding program. Why? Funding companies are monitoring risk. There is less risk with larger companies or government agencies. Or so they think!

4. Vendors. Negotiate terms with your vendors to help delay the outflow of cash payments. Lots of vendors have payment terms where you can delay the payment until end of the month or maybe even up to 60 days. This allows you a little float time to use their money while you are working on your project. Then hopefully you’ll receive payment from your customers prior to needing to pay for the products you purchased. Some companies also go the route of consignment. Then you are selling someone else’s goods and don’t have your money wrapped up in inventory. This option can help you increase your product offerings without having to invest large amounts of money in inventory.

5. Customer Deposits. Have your customers pay a deposit prior to the start of the job. This will help you cover your upfront costs as you start the projects. It’s very common to have a deposit with the signing of your contract. It decreases the risk associated with nonpayment because you’ve received a portion up front. You can also implement periodic payments throughout the contract vs. a single payment upon completion of the project so that cash is flowing in consistently.

6. Revolving Credit Line. Establish a revolving line of credit through a lender to help you with potential cash flow crunches. Especially if the amount of savings from prompt pay discounts are greater than the financing charge from the lender or the lender’s financing charge is less than what your vendors might charge for late payments. This helps give your business a safety net so that you can continue to operate during those times when you are offered great specials if you buy today but may not have extra cash available.

7. Savings Fund. Establish a savings fund to help you operate through slow times. Most businesses have swings in their business flow and managing cash effectively can be a challenge. Store away extra during the good times to help alleviate issues during the slow season. I know this sounds easier than it is, but if you take out a percentage each month and transfer it to a savings account then it will be “out of sight and out of mind.”

You may find that each of these 7 tips is viable for your business, or maybe only 1 or 2. Anything that you can do to focus on better cash flow will provide benefits to your business. The worst thing you can do is sit back and “hope” that things go well. Look around! See those “CLOSED” signs on the surrounding shop windows? They played the “hope” game and lost. What are you going to do? Hope? No…implement a plan for cash flow management starting now.

About the Author

Copyright 2005 Pam Newman

Pam Newman helps business owners keep money from slipping through their fingers. Pam is a Certified Management Accountant, Certified QuickBooks ProAdvisor, and Author of Out of the Red and Unlocking the Secrets of QuickBooks. Pam believes that it is important for you to understand the financial picture of your business, so that you can make informed decisions. For more information, please visit http://www.rppc.net