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6 Benefits to Help Retain Employees for Your Small Business

Posted on | by Jessica Weston | Leave a Comment on 6 Benefits to Help Retain Employees for Your Small Business

The covid-19 pandemic sparked The Great Resignation, as many employees chose to resign from their jobs. As a consequence, small businesses are currently having a difficult time retaining employees. Since smaller companies typically cannot afford to offer the same benefits as larger enterprises, it’s essential for business owners to do what they can to keep their employees as satisfied as possible. Fortunately, there are several benefits that small businesses can offer to help keep their employees happy and make them feel appreciated.

#1 – Health & Wellness

One way to show your employees that you care about their well-being is to offer them health and wellness subscriptions. This could include access to online fitness classes or access to an app. Not only will this help your employees stay healthy, but it can also improve morale and encourage team camaraderie.

If your team works remotely, then even access to a mindfulness or meditation app can go a long way in terms of supporting their mental health and wellbeing. 

If this all sounds abit expensive, there are lots of free apps you could promote. You could also encourage a more active lunch break, this could be a walk, yoga or anything to raise the heart rate. Alternatively try swapping a tea break into a mini workout or desk break.

#2 – Remote Work Options

The pandemic has led to an increased demand for remote work options. Employees prefer the flexibility that comes with being able to work from home or elsewhere. Therefore, it is important for small businesses to make a firm commitment to offering flexible and remote working opportunities. This can include allowing employees to take their laptops home, allowing them to work from home a few days a week, or offering access to co-working spaces.

#3 – Flexible Hours

Many employees prefer working flexible hours. For example, they may want to work from home in the morning and then come into the office later in the day or vice versa. In general, people like having more control over their schedules instead of sitting at a desk for nine straight hours each day.

This is especially true for parents who need to take their kids to and from school or childcare. Offering flexible hours can help them better manage their work-life balance so they do not feel overwhelmed with having to juggle too many responsibilities at once.

In addition, flexible working hours will allow your employees the opportunity to have a life outside of work by allowing them time for personal projects, errands, and social engagements.

Offering flexibility also demonstrates to your employees that you trust them.  This could make them more likely to go the extra mile for you and your company.

However, it is important that employees who work flexible hours are still committed to finishing their projects on time so they do not fall behind or negatively affect other members of the team.

#4 – Personal Development

Continued Professional Development can boost staff morale and help employees feel like they are moving forward. Giving your team the opportunity to learn new skills or attend workshops or courses makes you team feel like you are really invested in them, their development, and a long career with your business.

You could organise group training, or simply provide information on opportunities that employees can take advantage of independently.

#5 – Partnership Discounts

If your small business has partnered with other local businesses, then consider offering your employees discounts at those establishments. This could include restaurants, bars, or even stores. Employees will love the opportunity to save money on their everyday expenses, and it can help to strengthen relationships between businesses in your community.

#6 – Employee Recognition

Recognising employee accomplishments is a great way to boost morale and make your employees feel valued. You could acknowledge individual achievements with an email or even announce them at the next staff meeting.

Rewarding employee achievements can encourage others to do their best, as well as maintaining high standards of performance throughout the company.

Final Thoughts

Small businesses often struggle with retaining employees. However, by implementing some of the strategies listed above, you can create a workplace that your employees will love and want to stick with for years to come.

Hiring your first employee – things worth knowing

Posted on | by Jessica Weston | Leave a Comment on Hiring your first employee – things worth knowing

Hiring your first employee is a big step as a business owner. It’s great that you’re ready to grow your business and delegate some responsibility in order to narrow your focus, but it’s also natural to be nervous about the process. We’ve compiled a list of the most important things to bear in mind when hiring your first employee so that you can prepare and make the right decision for your business.

#1 – Payroll

When you hire an employee, you need to put a payroll system in place to make sure that employees get paid the right amount at the right time. Otherwise, your staff won’t be with you for very long.

You will need to submit National Insurance contributions and PAYE tax where applicable. And may also need to set up a Pension Scheme.

#2 – Contracts

It’s important to have a written contract in place with all employees. This document should outline the employee’s job duties, hours of work, pay rate, and benefits. It’s also a good idea to include an exit clause in case the relationship between employer and employee doesn’t work out.

#3 – A Code of Conduct

When you’re operating solo, you don’t really need a code of conduct – you know how to behave. However, when you have employees, it’s important to have a code of conduct in place that everyone is expected to follow. 

This document should outline the company’s expectations for employee behaviour, both on and off the job. It should also include disciplinary procedures for employees who violate the code of conduct.

#4 – Management Skills

If you’re not used to managing people, it’s important to learn the basics of good management before hiring your first employee. This includes setting expectations, providing feedback, and creating a positive work environment.

This is an important part of your growth as an entrepreneur. Learning great management skills as early on in your journey as possible will set you up for success.  Especially as your business grows and you add even more employees to your organisation.

#5 – Hire Based on Attitude

You can teach new skills and provide experience, but you can’t change a bad attitude.

That’s why it’s important to take attitude into account when hiring your first employee. 

Look for someone who is positive and enthusiastic about their work, even if they don’t have a lot of experience. Employees who are keen to grow and develop their skills will prove immensely valuable to you and your company.

Of course, you may well be keen to hire an experienced employee, but still be sure to screen candidates carefully and pay close attention to their attitude.

#6 – Ensure That You’re Financially Ready

Hiring employees is a great way to grow your business, but you need to make sure that the timing is right.

In other words, make sure that you’ve got enough money in the bank before making this big decision. Once you have an employee on board, it’s important not to let them down by being unable to pay their wages on time.

If you’re not sure whether your business is ready for its first employee, consult with your accountant or financial advisor to get their opinion.

Final Thoughts

When it comes to hiring your first employee, there are a few things you need to keep in mind. The most important of these is getting everything set up so that they get paid correctly and on time. You’ll also need contracts for both the employer and the employee, as well as a code of conduct for all staff members who work with you.

If you’re not sure whether or not your company is ready for its first employee, consult with an accountant or financial advisor who can help guide you through the process of hiring employees, managing all their associated responsibilities and ensuring that your operations remain cost-effective.

How to Use Profitability Ratios to Grow Your Small Business

Posted on | by Jessica Weston | Leave a Comment on How to Use Profitability Ratios to Grow Your Small Business

If you’re looking to grow your small business, you need to understand profitability ratios. These ratios help you measure how efficiently your business is using its assets and generating revenue. There are three main types of profitability ratios: operating, asset use, and contribution. In this blog post, we’ll discuss what each one is and how to use them to make smart decisions for your business.

What is a Profitability Ratio?

A profitability ratio measures how efficiently your business is using its assets and generating revenue. Profitability ratios are used by lenders, investors, and profit-seeking businesses to evaluate a company’s ability to generate profit relative to sales, assets, or equity.

Profitability ratios can be calculated on an annual basis or over any period you choose. For example, if you’re evaluating your company’s profitability ratio based on the sales of widgets in a specific month, you could calculate each ratio using that period.

Operating Profitability Ratio

The operating profitability ratio measures how much profit your business generates from its operations compared to the revenue it earns. To understand this better, let’s look at an example.

Let’s say you own a company called Widget Co., which manufactures widgets and sells them to retailers for $100 each. In one month, your business produced 100,000 widgets and sold 70,000 of them at $100 each. The operating profitability ratio would be calculated as follows:

First, we calculate the gross profit by subtracting the cost of goods sold from the revenue. This gives us $700,000 (70,000 x $100 – 100,000 x $60).

Next, we divide the gross profit by the revenue to get the operating profitability ratio. This gives us 0.70 (700,000 / 1000000).

This tells us that for every dollar in revenue Widget Co. generates, it earns 70 cents in gross profit.

Asset Use Profitability Ratio

The asset use profitability ratio measures how much profit your business makes from the use of its assets, minus the cost of those assets. This ratio is helpful for businesses that have a lot of fixed assets, such as property and equipment.

Let’s use the same example as above to calculate asset use profitability ratio. In this scenario, Widget Co.’s fixed assets are worth $200,000 and its total revenue is $100,000 (70,000 units sold at $100 each). We’ll also assume that the company has no debt or other liabilities.

First, we calculate the net profit by subtracting all expenses from revenue. This gives us $300,000 (100,000 x 100 – 70,000 x 60).

Next, we divide the net profit by fixed assets to get the asset use profitability ratio. This gives us 0.15 ($300,000 / 2000000).

This tells us that for every dollar in fixed assets Widget Co. owns, it earns 15 cents in net profit.

Contribution Profitability Ratio

The contribution profitability ratio measures how much money your business makes from each sale after deducting variable expenses such as material costs and labour. It’s also known as the gross margin percentage because it is calculated by dividing the gross margin by sales.

Let’s use the same example as above, but this time we’ll assume that Widget Co. has a contribution margin of $40 per widget (meaning it costs the company $60 to produce each widget, but it sells them for $100).

First, we calculate the gross margin by subtracting the cost of goods sold from the revenue. This gives us $600,000 (100,000 x $100 – 100,000 x $60).

Next, we divide the gross margin by sales to get the contribution profitability ratio. This gives us 0.60 (600,000 / 1000000).

This tells us that for every dollar in sales Widget Co. generates, it earns 60 cents in gross profit.

This figure can help you to understand how effective your marketing efforts are and whether you’re pricing your products correctly.

How to Use Profitability Ratios

Profitability ratios are helpful when used alongside other financial metrics because they can help you make sense of your business’s overall profitability and identify areas where you can improve performance. For example, if your company’s asset use profitability ratio is low, you might consider investing in more fixed assets to increase profits.

Likewise, if your contribution profitability ratio is high, you might be able to reduce the cost of goods sold by finding a cheaper supplier or streamlining production.

Final Thoughts

Keeping track of your company’s profitability ratios can help you make informed decisions about how to improve profitability, reduce expenses and grow your business. A more profitable company is better positioned to earn more revenue, hire new employees, and reinvest.

4 Bad Financial Habits That Are Hurting Your Business

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Habits are everything.  From getting up early, to working out and eating healthy, habits are what differentiate successful people from others. The same applies in business – entrepreneurs who have good financial habits tend to make better decisions than those who lack them.

If you have poor financial habits, then your small business could be suffering as a result. What’s more is that many business owners aren’t even aware of the behaviours that are costing them money and  slowing their growth.

Let’s take a look at four bad financial habits that could be hurting your business:

#1 – Not Paying Attention to Expenses

One of the biggest killers of small businesses is neglecting to keep track of expenses. This often leads business owners to overspend on unnecessary items, or worse: not having enough money to cover necessary costs. The key to overcoming this habit is creating a budget, and sticking to it.

This will help you identify areas where you’re overspending, so that you can make the appropriate changes. For example, if your business spends too much on travel expenses, then consider having meetings via Skype or Google Hangouts instead of in-person whenever possible.

Working with an accountant is a great way to keep you accountable when it comes to  your finances. This person can help you create a budget, and  assist you with making financial decisions on behalf of your business.

Having someone who assures that things are done correctly is a lifesaver for many small businesses, especially those with little experience in managing their own finances.

#2 – Paying Too Much for Office Space

Another common mistake that business owners make is spending too much on office space. This can be a major issue, especially if your business isn’t generating a lot of revenue yet.

There are several ways to avoid overspending on office space. For starters, consider working from home until your business is more established. You could also look into renting  office space on a shared basis, or taking out a flexible contract with a coworking space. This means you won’t have to worry about forking out for furniture and equipment, and you’ll have the flexibility to pay for less space when things are slow.

#3 – A DIY Attitude

Doing everything yourself saves money, right?

Wrong.

Many small business owners try to do things on their own,  but this can be a huge waste of time and money. In some cases, you may end up doing more damage than good. This is especially true when it comes to financial matters – unless you’re an accountant or bookkeeper, there’s no reason for you to handle all  the financial tasks for your business.

Hiring professionals to help you with bookkeeping, accounting and other financial matters can save you a lot of time and money in the long run. Not only will you have more time to focus on what you’re truly good at, but you’ll also have peace of mind knowing that everything is being handled correctly.

#4 – Lax Invoicing and Billing Practices

Another bad financial habit that can hurt your business is lax invoicing and billing practices. This happens when you don’t send out invoices in a timely manner, or when you don’t follow up on unpaid bills.

Both of these things can lead to money being left on the table, which is obviously not ideal  for any small business.

To make sure that you don’t fall victim to this bad habit, it’s a good idea to create an invoicing and billing schedule. This ensures that your bills are sent out on time each month, without fail. It also helps you avoid forgetting about overdue bills, so that you can follow up with clients in a timely manner.

You may want to consider hiring an accountant or bookkeeper to help you with this task, as it’s something that can easily be overlooked by busy business owners. A simple mistake like forgetting to send out invoices on time could cost your business thousands of dollars each year – money that could have been spent on paying bills, marketing your business, or hiring new staff.

Final Thoughts

Make sure to avoid these bad financial habits if you want your business to succeed! Implementing a budget, working with professionals, and sending out invoices on time are all great ways to keep your finances in check. Remember that over time, good habits compound to  provide great results!

How to Use Social Proof to Drive Sales

Posted on | by Jessica Weston | Leave a Comment on How to Use Social Proof to Drive Sales

As an business owner, you probably already know that social proof is an important factor in generating leads and sales. However, the vast majority of businesses I speak to, aren’t using enough reviews and testimonials as part of their marketing efforts.

Your clients love you and the value that you provide, but often, you’re afraid to ask them for a testimonial because you’re afraid it will seem unprofessional and don’t want to hassle them.

The truth is, most of your clients are more than happy to sing your praises if you give them the opportunity.

When you learn how to leverage social proof properly, it can have a significant impact on your sales funnel and help you to close those high value clients that you really want.

With that in mind, let’s take a look at how you can use reviews and testimonials to drive sales for your business.

Website Testimonials

It’s important to include plenty of  testimonials on your website. It’s a good idea to have a dedicated testimonial page, but you should also include them in the sidebar and in other strategic locations throughout the site to maximise their effectiveness.

When adding  client testimonials to your website, make sure that:

  • They are featured prominently
  • Concise and easy to understand – new leads don’t want to read an entire novel
  • Include specific details about how you solved the client’s problem
  • Feature the client’s full name, business name and a photograph 

Social Media Testimonials

Your social media accounts are a great place to showcase reviews and testimonials from happy clients.

It’s a good idea to create social media graphics that you can share across a variety of platforms. This is also a clever way around Twitter’s character limit!

Your graphics should all align with your brand, using your colours, fonts and style.

YouTube

Video testimonials are  a great way to add social proof. They are more convincing than  text testimonials and can be effective at building trust with a new lead. It’s easy to write a fake review, but video testimonials are hard to fabricate.

Just like social media graphics, you can  use these videos  across multiple platforms and also add them to your website.

Facebook Reviews

Using the Facebook reviews feature, you can encourage clients to leave a review on your business profile that will then show up in search results when someone is looking for an accountant or bookkeeper in your area. This helps build trust and encourages new leads to get in touch.

When someone leaves a review on your Facebook page, make sure to respond and thank them. This also helps to show that you’re engaged with your clients and care about their experience.

Case Studies

Client case studies are  a more in-depth look at  how you solved a specific problem for a client. They can be very helpful in convincing someone to become a  client, as they show that you have the experience and expertise to help them too.

Case studies should be well written, easy to understand and visually appealing. You can include images, infographics and videos to make them more engaging.

A typical case study format would  include:

  • What was the client’s problem?
  • How did you solve it for them?
  • What were the results and outcomes? 

Google Reviews

Google Reviews are crucial in building trust with your audience.  They are one of the first things that people look at when they’re considering working with a new business and can be the deciding factor for some.

As discussed, it’s fairly easy to fake a testimonial on your website, but Google requires users to have a verified account  in order to leave a review. This makes them much more trustworthy.

Make sure you ask your clients for a Google Review after they’ve had a positive experience working with you and make it easy for them to do so.

The more reviews your business has, the more trustworthy you will appear.

Awards and Affiliations

Showing that your practice is a member of a professional association or has been recognised for its achievements through awards can help to add credibility and build trust.

If you have any awards, consider creating badges that you can display on your website and social media accounts. 

Press Features

If you’ve been featured in the press, make sure to include a screenshot on your website and share it on social media.

When you’ve been featured in a major publication, this not only signals to your audience that you are a trustworthy accountant or bookkeeper but also helps to establish you as an authority within your niche – and this is essential if you want to have high value clients queuing up to work with you.

Numbers

How many businesses have you worked with? How many decades of experience do you have? How many years have you been a member of the professional association?

Displaying numbers that show your experience, expertise and scale can help build trust with leads. If you’re new to business or just starting out, including testimonials from previous roles is a great way to show some social proof and gain credibility early on.

Influencer Endorsements

Influencer marketing is an incredibly powerful way to add credibility to your business. Collaborating with the right influencer can be extremely powerful in convincing leads to work with you, because they have an established audience who trusts their opinion.

Make sure you only work with influencers who have a similar target market to yours and are relevant to what you do. This will ensure that their audience is more likely to be interested in your services. It’s also important to choose a creator who shares your values and reflects  the brand you want to portray.

Joint Venture Partnerships

Business owners often overlook joint venture partnerships when considering how to use social proof to drive sales. However, they can be incredibly powerful.

Working with a complementary business is an amazing way to reach new audiences and add credibility to your firm in the process.

A partnership with a trusted business is essentially a stamp of approval from them.  Clearly, they believe  in you, your business and what you do. If a lead is already familiar with the partner organisation, there’s a good chance they will trust them enough to at least find out more about your services.

Final Thoughts

When it comes to growing your business, social proof is incredibly important. It’s essential to use it to build trust with your audience and stand out from the crowd.

When done well, social proof can be a game changer for your business because it helps you to fill your sales funnel with more high quality leads and allows you to nurture them along the customer journey more easily.

A Guide to Writing a Business Growth Plan

Posted on | by Jessica Weston | Leave a Comment on A Guide to Writing a Business Growth Plan

Successful business growth requires a solid plan. In fact, rapid and uncontrollable growth can actually do more harm than good in the long run, which is why it’s vital to have a growth plan in place.

But how do you go about mapping out a growth strategy? And, since no-one can predict the future with 100% accuracy, what do you do when things inevitably veer slightly off-course?

This guide will discuss the components of a successful growth plan and provide tips for creating one that works for your business. Let’s get started.

What is a Business Growth Plan?

A business growth plan is a roadmap for increasing revenue and expanding operations. It outlines your company’s goals, strategies, and tactics for achieving growth in both the short- and long-term.

Why Do You Need One?

Businesses of all sizes can benefit from having a growth plan, for multiple reasons.

Market Share

If you’re not growing, your competition is. And if they’re taking market share from you, it’s only a matter of time before they start eating into your profits. A growth plan can help you take back control and regain any lost market share.

Minimise Risks

As your business grows, things will inevitably become more complex. This can lead to a number of risks, such as cash flow problems, operational inefficiencies, and customer service issues. A growth plan will help you identify and mitigate these risks before they start to pose a real problem.

Cash Flow and Revenue

Your business needs money to survive.  A growth plan will ensure that you have the necessary cash flow to sustain operations and fund expansion. It will also help you to increase revenue and profits, which can provide a cushion in tough times.

How to Write a Business Growth Plan

Now that we’ve discussed the importance of having a business growth plan, let’s take a look at how to write one.

There are four key components to any successful growth plan:

  • Market analysis
  • The right target market
  • Product/service offering
  • Sales and marketing strategy

We’ll discuss each of these in more detail below.

Market Analysis

The first step in writing a business  growth plan is to do a market analysis. This involves studying your industry and competitors, identifying trends, and assessing the potential for growth.

To conduct a market analysis, you’ll need to gather data on:

  • Industry size and growth
  • Market share by segment
  • Trends in technology, demographics, and consumer behaviour
  • The competitive landscape
  • Opportunities and threats in the market

Target Market

Once you’ve completed your market analysis, it’s time to identify your target market. This is the group of customers that you want to do business with and who are most likely to buy from you.

Your target market should be based on:

  • Your company’s strengths and capabilities
  • The needs of your target customers
  • The size of the market
  • The potential for growth in the market

Product/Service Offering

Once you’ve identified your target market, it’s time to develop a product or service offering that meets their needs, or adjust your current offering to capitalise on new opportunities for growth. This will involve creating  a unique value proposition and determining what makes your product or service different from the competition.

Evaluate Your Team

No matter how great your product or service is, you won’t be able to sell it if you don’t have a team of talented salespeople. Before you write your growth plan, take some time to evaluate your current sales and marketing teams. Do they have the skills and experience necessary to reach your target market? If not, you’ll need to make some changes.

Sales and Marketing Strategy

Once you’ve developed your product or service offering, it’s time to create a sales and marketing strategy that will help you reach your target market. This should include:

  • A plan for increasing market share
  • A budget and timeline
  • Strategies for generating leads 
  • Tactics for converting leads into customers
  • A communications plan
  • A way to track results

Finding Capital to Fund Growth

The final step in writing your business growth plan is to identify the capital you’ll need to fund expansion. This may involve taking out loans, seeking investment, or using your own cash reserves. Whatever route you choose, be sure to include a detailed plan for how the money will be used and when you expect to see a return on investment.

Putting It All Together

Now that you know what goes into a business growth plan, it’s time to put all the pieces together. Start by creating a rough outline of the plan, then fill in the details as you go. This will help you stay on track and ensure that your growth plan is comprehensive and achievable. Bear in mind that your growth plan can be adjusted as you go along, so check back in regularly to ensure that the document stays up-to-date.

7 Benefits of Coworking Spaces for Online Businesses

Posted on | by Jessica Weston | Leave a Comment on 7 Benefits of Coworking Spaces for Online Businesses

Coworking spaces are becoming more and more popular as the number of remote workers continues to grow. However, what many people don’t realize is that coworking spaces offer a lot of benefits for entire online businesses, too. Let’s take a look at seven reasons why online businesses should consider coworking.

#1 – Better Value for Money

Coworking spaces often represent better value for money than renting your own shared office for businesses that can function remotely for a large portion of the time.

In addition to this, coworking spaces offer amenities like printing and meeting rooms that are not included in many private office memberships, and you can simply pay for the hours you use.

There’s also less up-front investment with a co-working space.  You can usually start by paying for a day or week pass, which gives you the opportunity to test out the space before signing up for a longer-term membership.

#2 – Community and Collaboration

In addition, coworking spaces offer a sense of community and collaboration that you don’t get when working from home. 

This can be extremely beneficial for online businesses who are looking to connect with other professionals and exchange ideas. 

Studies show that working from home has a negative impact on innovation across teams, so coworking spaces can be a great way to encourage creative thinking.

#3 – Scalability

Coworking spaces offer flexible month-to-month contracts, meaning that they can grow and shrink with your business. 

If you only need an extra desk for a month while you’re launching a new product, no problem. 

If your team is growing rapidly and you need more space, then you can scale up easily. 

Finally, if the time does come to move into a more permanent space, you won’t have to wait out a months-long contract beforehand.

#4 – Flexibility

In the wake of the pandemic, many businesses are adopting hybrid working, which is a mix of remote and in-office work. Coworking spaces are perfect for this style of working, because you can simply pay for the hours that you need the space. This means that you don’t end up renting an office that you’re only using for two or three days per week. 

#5 – A Better Work-Life Balance

One big downside of working from home is that it can make employees feel as though there’s no separation between work and personal life. This represents a major challenge for businesses that want to maintain a healthy work-life balance and keep morale high. However, coworking spaces can help because they allow employees to separate work and home life. 

#6 – An Attractive Workspace

Coworking spaces tend to be modern and carefully designed for optimum productivity.  This can be a major draw for online businesses who want their employees to feel inspired and motivated. 

At a coworking space, you get to access a beautiful office without forking out for expensive furniture and an interior designer.

#7 – Networking Opportunities

Many coworking spaces offer unique programming and events that can help connect with other professionals in your industry.  

There are often workshops and masterminds available, as well as social gatherings such as happy hours and dinners. This can be a great way to expand your network, get new ideas, and learn from others in your field.

Summary

If you’re an online business looking for a better way to work, then coworking spaces should definitely be on your radar. They offer many benefits that are perfect for remote workers and businesses of all sizes, and you can scale your usage as you grow. Much as businesses are replacing expensive hardware with cloud software subscriptions, many are also now opting for co-working spaces as an alternative to traditional offices.

How to Keep Your Employees Motivated and Why It Matters So Much

Posted on | by Jessica Weston | Leave a Comment on How to Keep Your Employees Motivated and Why It Matters So Much

When it comes to small businesses, motivation is key – but we’re not talking about your motivation as the owner. You need discipline and consistency to grow your business, but keeping your employees motivated is also vital to your profits, innovation and customer service. Let’s take a closer look at the importance of employee motivation and dive into some top tips on how to keep your team inspired.

Why Motivation Matters

Employee motivation has a direct impact on the financial health of your business. A study by the Harvard Business Review (HBR) found that improving employee motivation can increase gross revenue by up to 47%.

On top of this, motivated employees are more likely to stay loyal to your company rather than seeking roles elsewhere. The HBR has also reported that a 5% increase in employee retention can boost profitability by 25-85%.

Meanwhile, the International Journal of Core Engineering and Management published a paper that found that employee motivation directly improves customer experience.

What Employees Value

So we’ve established that employee motivation is a key component of a successful business, but how do you actually go about it?

It’s important to understand what your employees value so that you can use these factors to motivate them.

Of course, salary is important but there are many other factors that come into play in terms of employee satisfaction. In fact, the HBR found that salary was surprisingly far down the average list of priorities, which are as follows:

  • Role design – duties, responsibilities, goals, principles and objectives. Employees want to feel that their work matters and contributes to a greater good.
  • Organisational identity –  company culture, values and ethics should align with the employee’s personal beliefs.
  • Career development – employees want to keep learning new skills and progress in their career.
  • Relationships with colleagues – positive relationships within teams are a key motivator for many workers. A strong team dynamic can help employers retain staff as well as improve productivity and innovation.
  • Leadership –  employees want and value clear, consistent leadership.
  • Compensation –  salary and benefits are still important, but employees are increasingly looking for flexible working arrangements, social responsibility programmes and other benefits that go beyond just a pay cheque.
  • Feedback, evaluation and opportunities to improve –  employees want to receive feedback on a regular basis so that they can understand how they’re doing and what areas to focus on.

How To Motivate Employees

Now that you understand what your employees value, it’s time to use these factors as the foundation of your motivation strategy.

A good starting point is with communication – keeping staff informed about company  happenings, sharing goals and objectives, and giving regular feedback will help employees feel more connected to their work. Remember that no-one wants to feel as though they’re stuck in a dead-end job or doing meaningless work.

It’s also important to create a positive workplace culture where employees feel comfortable taking risks and voicing new ideas. This can be done through team-building exercises, offering training and development opportunities, and celebrating successes together.

Leadership is another key factor – employees need to feel that their leaders are competent and trustworthy. Leaders should be setting an example for the team, modelling desired behaviours and providing clear instructions.

Last but not least, it’s important to recognise and appreciate employees’ efforts. A simple ‘thank you’ can go a long way. However, internal awards and tokens of recognition are even more effective in motivating staff.

Final Thoughts

Employee motivation is a key component of any successful business. By understanding what employees value and using these factors to motivate them, you can create a positive work environment that encourages productivity and innovation. Increasing staff morale plays a powerful role in building a strong, profitable and innovative business so it’s well worth investing your time and energy into.

4 Healthy Financial Habits to Conserve Cash in Your Small Business

Posted on | by Jessica Weston | Leave a Comment on 4 Healthy Financial Habits to Conserve Cash in Your Small Business

In order to keep your small business running smoothly, it is important to develop healthy financial habits. This means being conscious of how you spend your money and conserving cash wherever possible. In this blog post, we will discuss four healthy financial habits that can help you conserve cash in your small business. Let’s dive into how you can build habits and create a more sustainable small business.

#1 – Set Financial Goals

In order to conserve cash in your small business, you need to get into the habit of regularly setting and updating financial goals. You can do this by thinking about your current financial situation and what changes you would like to make. Consider the following questions before setting a goal:

  • What is my current profit margin
  • What is my desired profit margin after tax?
  • What are my current expenses?
  • How many hours per week do I spend on this business?
  • What would be the best ways for me to save money or increase revenue?

Once you have answered these questions, it will be easier for you to set realistic goals that conserve cash.

Remember, your goals should be SMART:

S – Specific, M – Measurable, A – Attainable, R – Relevant and T- Timely.

An example of a SMART goal would be: Increase my profit margin from 20% to 30% within 12 months by streamlining operations and reducing costs. 

The goal is:

  • Specific because it includes how much you want your profit margin to increase.
  • Measurable because you can track your progress over time. 
  • Attainable because it’s not impossible to achieve. 
  • Relevant because it will help improve your bottom line 
  • Timely because you have set a deadline for yourself.

When setting financial goals, make sure to keep the SMART acronym in mind.

#2 – Perform an Expense Audit (and Then Plug the Leaks)

In order to conserve cash, it is a good idea to perform an audit of where you spend your money. You can do this by reviewing your bank statements from the past few months and identifying expenses that are not necessary for running your business.

The next step is to cancel any subscriptions or memberships that you no longer need or use. After that, you can try to renegotiate contracts with suppliers or vendors and ask them for a lower rate on their services. You should also make sure that your accounting software is up-to-date so you know where every dollar goes in your business (and what it’s paying for).

Finally, keep track of how much money comes  in and out of your business on a monthly basis. This will help you to stay on top of your finances and identify any areas where you need to tighten the belt.

#3 – Automate Your Emergency Fund

One way to conserve cash in your small business is by automating your emergency fund. This means setting up a system where a certain amount of money is automatically transferred from your checking account to your savings account on a regular basis.

This can help you avoid the temptation to spend all of your money and will ensure that you have some funds saved up in case of an emergency.

There are a number of different online banking services that offer this feature, so be sure to do your research and find the best one for you.

When automating your emergency fund, make sure to set up a transfer that is realistic for your budget. You don’t want to put too much stress on yourself or your business by setting the transfer too high.

#4 – Monitor Your Cash Flow DAILY

Monitoring your cash flow on a daily basis is an important habit that can help conserve cash in your small business.

The best way to do this is by setting up an automated system where you receive notifications every day at a certain time of the day when there are new transactions recorded in your accounting software. This will keep track of all expenses and income so that you can quickly see where money is coming from and going to.

Final Thoughts 

Conserving cash is important for any small business owner. The small changes outlined above amount to a big difference to your finances over time, so don’t wait to implement them in your business. Remember the old adage: in three months’ time, you’ll be glad you started today.

5 Myths About Making Tax Digital Busted

Posted on | by Jessica Weston | Leave a Comment on 5 Myths About Making Tax Digital Busted

The UK government’s plans to make tax digital have been shrouded in controversy since they were first announced. There has been a lot of misinformation floating around, and many people are unsure about what the changes will mean for them. In this blog post, we will dispel some of the myths about making tax digital and give you the facts.

What’s Happening?

The Making Tax Digital (MTD) scheme rolled out in 2019 for VAT-registered businesses with over £85,000 in taxable income. In April 2024, this threshold will be reduced to £10,000.

There are many benefits to MTD, but many business owners are apprehensive about the change, fearing it will mean more stress, fear and penalties. Let’s take a look at some of the incorrect assumptions about MTD and talk about what the truth is instead…

#1 – HMRC Will See All of Your Data

This is a common misconception about MTD. The scheme does require quarterly updates but the amount of data you reveal to HMRC remains the same. With your VAT return, for example, you will still fill in the same nine fields of information but you will simply do it digitally.

Quarterly updates will actually encourage business owners to stay on top of their finances and give them a better insight into their cash flow.

#2 – You Will Pay More Tax

MTD is not about creating a heftier tax bill; it’s about reducing errors and fraud.  When businesses are able to submit accurate tax returns more quickly and easily, it minimises the chances of mistakes being made. This means that you are likely to pay the right amount of tax – no more, no less.

In addition, MTD will help to reduce the administrative burden on business owners, so everyone can focus on more important things.

#3 – Tax Returns Will Take Forever to Complete

This is another common misconception about MTD. The reality is that tax returns will take the same amount of time to complete – or quite possibly less. The main difference is that you will be doing them digitally instead of on paper. You won’t have to spend hours poring over your accounts – the software does all of the hard work for you.

This also means that there is less opportunity for human error, meaning your tax return will be more accurate.

#4 – MTD Means No More Tax Returns

MTD involves quarterly updates but this doesn’t mean that you won’t have to complete tax returns anymore.

The quarterly updates are in addition to your annual tax return – they are not a replacement for it. The SA100 form will be replaced with a final declaration, which HMRC will then review.

#5 – Small Businesses Don’t Need to Worry About MTD

Currently, businesses with a taxable income of under £85,000 per year are not required to participate in MTD, but this will change as the 2024-2025 tax year commences. This may seem far off now, but it’s best to take steps to prepare for the change now.

The truth is that all businesses need to be prepared for MTD, even if they don’t have to start complying with it until later on.

The sooner you start getting ready, the smoother the transition will be. This means it’s a good idea to begin digitising your accounting process and using MTD-compliant software so that you’re ahead of the game when 2024 rolls around.

Summary

There are a lot of misconceptions about Making Tax Digital, but the truth is that the scheme has many benefits. It reduces the chances of mistakes and fraud, and it makes tax returns easier to complete.

All businesses need to be prepared for MTD, even if they don’t have to start complying for another few years. The sooner you start getting ready, the smoother the transition will be.