Category: Business Growth

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.

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.

What’s the Difference Between Budgeting and Forecasting?

Posted on | by Jessica Weston | Leave a Comment on What’s the Difference Between Budgeting and Forecasting?

Budgeting and forecasting are related, but they play different roles in business. In a nutshell, a budget is a step-by-step spending plan, while a forecast is an estimation of an outcome. Both have an important role to play in taking control of your business and preparing for the future, so let’s dive deeper into the key differences between the two tools.

What is Budgeting?

Budgeting is a detailed spending plan for the future. It’s used to provide financial direction while making sure you can meet your business goals and objectives. In other words, it controls what happens in your day-to-day operations by influencing how much money goes into different areas of the business, such as marketing and human resources.

Different Types of Budgets

There are two types of budgets: operational and capital. An operational budget is used to control your day-to-day operations, while a capital budget focuses on major purchases or investments in the business. For example, an annual marketing campaign will probably fall into the capital category because it’s something you do once per year instead of on a daily or weekly basis.

Budgeting Techniques

Budgeting techniques are used to determine how much you’ll spend in different areas of the business, such as sales and marketing. There are many types of budgeting techniques, including:

  • Zero-based budgeting, where all expenses for a period must be justified.
  • Percentage of sales budgeting, where a certain percentage of your total revenue is set aside for spending.
  • Value proposition budgeting, where you allocate resources based on the value each budget item brings to your business.
  • Surplus budgeting, where the total revenue is greater than the total expenses.
  • Gap budgeting, which identifies gaps between goals and actual performance levels in different areas of your business.

How to Prepare a Budget

In order to prepare a basic budget for your business, you need to calculate your total revenue for the period you’re looking at. 

Then, calculate your fixed and variable expenses. You should also factor in any planned purchases or investments over a set timeframe, as well as expected changes to your overall business strategy. 

Subtract your expenses from your income and then create a tax estimate. The final figure will be the profit that you have to invest in your business.

What is Forecasting?

Forecasting helps you create a plan for the future. It’s used to predict if your business will meet its financial goals, and is most commonly employed by growth companies that want to provide investors with an idea of their expected revenue. Forecasts are often related to quantitative data like sales forecasts or cost projections, but they can be based on qualitative data as well. 

The key difference between budgets and forecasts is that budgets are effective in the short-term, while forecasting works best over a longer period.

Qualitative vs Quantitative Forecasting

There are two main types of forecasting: qualitative and quantitative. A qualitative forecast is based on expert opinion, while a quantitative forecast uses hard data to produce numerical forecasts like sales projections.

How to Prepare a Forecast

In order to prepare a forecast for your business, you’ll need to list all of the assumptions that underpin it. This includes things like expected sales growth and any major changes in the market or economy over a certain timeframe. You should also factor in variables such as pricing models, competitor activity and customer behavior into your quantitative forecasts.

The Key Difference 

In conclusion, budgeting helps you control your daily operations, while forecasting is a tool for predicting future performance. A budget is used to set limits on your spending, while a forecast  is used to predict whether or not your business will meet its goals. Both are important tools for business performance and growth, and thus should be taken seriously.

4 Common Leadership Mistakes and How to Avoid Them

Posted on | by Jessica Weston | Leave a Comment on 4 Common Leadership Mistakes and How to Avoid Them

Being a leader is not always easy, but it’s part and parcel of being a business owner. You set the tone for the rest of the company, so it’s vital that you learn how to lead effectively. Let’s examine four common leadership mistakes and how to avoid them so that your small business stays on track for success.

#1 – Lacking a Clear Vision

As a leader, it’s crucial that you have a clear vision for your business. Without one, you and your employees will have no sense of direction. They’ll be stuck without a clear mission, and that can lead to low morale and reduced productivity.

Take the time to cultivate a clear vision for the future of your company.  What do you hope to achieve? What specific steps will your company take in the near future and beyond to ensure success? How does this vision align with a larger corporate mission or values, if necessary?

Once you’ve created a clear set of goals for your business, make sure that everyone on staff understands them. Hold regular meetings where employees can voice  concerns and ask questions about the vision. Over time, this dialogue will help your company grow quickly and adapt to changes in an ever-evolving market.

#2 – Avoiding Confrontation

Now, we’re not suggesting you go on the offensive just for the sake of it, but effective leaders simply cannot afford to be afraid of addressing issues and delivering constructive criticism.

As the head of your company, it’s up to you to guide employees and help them improve as needed. If they make mistakes, don’t be afraid to confront those failures directly and explain what needs to change in order for them – and consequently, your business – to succeed.

You don’t necessarily need to be aggressive with your employees, but you should never shy away from an honest discussion. When they understand what you expect of them, they’ll work even harder to meet those expectations and see that their actions have a direct impact on the company’s bottom line.

Avoiding conflict is not only unproductive; it can also be perceived as weak leadership by your employees. It’s also doing them a disservice by allowing problems to fester and denying them the opportunity to grow and improve.

Remember that you’re not just an employer; you’re also the captain of a ship. You need to communicate with everyone on board accordingly if you want them to act in accordance with their job responsibilities – and that means giving orders.

#3 – Failing to Delegate

Small business owners often feel as though they need to do everything themselves, but this only leads to inefficiency and burnout. As a leader, it’s important that you learn to delegate effectively.

Start by identifying the tasks and responsibilities best suited for each team member. You might not be able to trust certain employees with every job on your plate, but they may excel at one or two specific things when given proper training and support from management.

Then, look for ways to offload the work that you no longer have time for. This could include anything from delegating a specific project to hiring an outside contractor or consultant, depending on your company’s needs and budget.

Once these steps are in place, make sure everyone knows what they should be working on at all times – and hold them accountable for their performance. Make it clear that you expect the highest standards of work from everyone on staff.

When employees know their responsibilities and can meet your expectations, they’ll be more motivated to take initiative and go above and beyond when necessary – benefiting both them and your company’s bottom line.

#4 – Pride

Of course, you should have pride in your values, your mission and your company, but it doesn’t pay to be too proud as a leader – humility is an important quality.

When you make mistakes, own up to them and learn from your failures. Share what you’ve learned with the rest of your team – it will help everyone avoid similar pitfalls in the future.

Never let arrogance get in the way of an honest discussion about how things can be improved; doing so only hurts morale and makes it difficult for employees to  accept criticism.

Instead, be open to suggestions and listen carefully when your employees offer feedback, even if it’s not what you want to hear. Sometimes the best ideas come from unexpected places, so don’t miss an opportunity for growth due to stubbornness or pride.

Final Thoughts

Being a leader isn’t easy. In fact, it’s a constant journey of growth and self-improvement. As the captain of the ship, you need to communicate with everyone on board and make sure that all crew members know which direction you’re sailing in. Failing to delegate, avoiding conflict and becoming too prideful as a leader are all mistakes that can come back to haunt you, but if you avoid them from the start, your business stands a much better chance of success.

How to Build and Maximise Your Referral Network

Posted on | by Jessica Weston | Leave a Comment on How to Build and Maximise Your Referral Network

Referrals are an excellent way to grow your business and generate a lead flow. However, when you have a very specific ideal client in mind they are not always helpful. By creating a referral network, you can gain more control over the process. There are different types of referral networks you can create, so let’s take a closer look at how to build the right network and make it work for your business.

What is a Referral Network?

A referral network is a group of individuals or organisations that provide referrals for one another. Within certain industries, there are official referral networks that exist, but there are also more informal ones around, too.

An example of an informal referral network might be a loose group of professionals within your niche who share business cards and contact details, and regularly refer clients to one another. There’s nothing in writing, but it’s a de facto “you scratch my back, I’ll scratch yours” kind of arrangement.

Tip #1 – Connect with Larger Businesses

When you run a small business, it may seem counterintuitive to create a referral relationship with your larger competitors but it can, in some instances, be beneficial. For example, if a business only works on large projects, it’s better for their reputation if they refer smaller clients to an appropriate provider rather than flat-out refusing them.

Connecting with these companies means that they can send these leads your way. Equally, if you have a client whose requirements are too large for you to handle right now, then you can return the favour and thus strengthen the relationship.

#Tip 2 – Network

It almost goes without saying that in order to build a referral network, you first have to expand your general network.

This means attending conferences, events and trade shows. Get up on stage if possible – that way, people will be keen to talk to you and even seek you out. The more visible you can be, the better.

Online networking is another great way to build your referral network. Reach out to business contacts, past clients and other professionals within your industry. Swap contact details and even mention that you will send any suitable future leads their way, as they’re more likely to keep you in mind to do the same.

#Tip 3 – Content Marketing

Content marketing is great for a number of reasons. It allows prospective clients to find you more easily and it enables you to build trust and relationships with your audience. What you may not realise, however, is just how useful content marketing can be when it comes to your referral network.

When you are showing up every day delivering value, it’s not only your prospects who will notice. Other business owners are likely admiring you too, even if they’re doing it quietly. If they see you as an expert within your niche, they may well send leads your way if one of their clients or customers has a need that falls outside of their remit.

#Tip 4 – Offer Rewards

Finally, you can incentivise your customers and clients to refer you by offering a reward in exchange. This could be a discount the next time that they buy from or work with you, rewards points or a free gift; it all depends on your specific business type.

A referral reward scheme is also a great low-risk strategy to boost sales because you don’t need to pay out until after you’ve made a sale.

Conclusion

There are several ways to grow your referral network whilst continuing to attract the right kinds of leads. Referrals are a low-cost way of acquiring new clients and so don’t overlook this strategy and its power to boost your business.

Workforce Management Tips for Small Business Owners

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As a small business owner, you need to know how to manage your workforce efficiently and effectively, but that’s often easier said than done. With time and practice, your management skills will certainly improve, but we’ve put together five essential tips to get you started on the road to success.

#1 – Put It In Writing

Let’s be honest: no-one gets excited by rules and regulations, but they are essential to build a strong business foundation. You need to create clear policies and codes of conduct so that everyone understands how to behave. This also helps to prevent unfair treatment and discrimination, and protects you from misunderstandings and even legal action.

#2 – Invest in the Right Software

In today’s digital business environment, the right software is key to ensuring that your team runs like a well-oiled machine.

Scheduling software, for example, not only saves you a huge amount of time but also helps to optimise your team’s time. Cloud software also enables your workforce to access their schedules from anywhere and easily request shift swaps or changes when necessary. Best of all, the information is centralised so that everyone automatically stays on the same page.

Similarly, communication software, such as Slack or Teams is important, especially if your team works remotely much of the time.

Project management software also ensures that all relevant employees are up-to-date with regards to tasks and deadlines. This allows your projects to flow more smoothly, with fewer hiccups along the way.

Finally, payroll software is essential. It saves you time and also makes sure that you employees get paid and taxed the right amount, reducing the possibility of conflicts. After all, paying your staff the right amount at the right time is a key ingredient in keeping them happy – and loyal.

#3 – Ask for Input

Making your employees feel seen, heard and valued is essential for maintaining morale – and this, in turn, is directly linked to the success of your business. Therefore, it’s important to ask your team for feedback and actually listen to what they say.

In addition to this, your team members are on the ground and therefore are often able to pick up on things that you can’t. Asking for their input isn’t just about showing respect, it can also help you to identify problems and opportunities that you may otherwise have overlooked.

#4 – Don’t Micromanage

Micromanaging your workforce is probably the fastest way to turn them against you. When you micromanage your team, you’re essentially telling them that you don’t trust them, and this causes a serious decline in morale. On top of this, it also denies your team members the opportunity to grow and improve.

Your business is your baby and it’s only natural to feel protective over it. You understandably want to handle everything yourself but that’s simply not realistic. Learn to trust your team and create an environment in which they feel able to come to you for guidance if they do encounter any problems, rather than wasting your time breathing down their necks.

#5 – Offer Flexibility

Of course, flexible working isn’t possible for every business type, but if you are able to offer your staff greater flexibility then you should do it. For one thing, it’s a huge mark of trust and respect – and this won’t be lost upon your team.

On top of this, giving your staff greater flexibility will increase their job satisfaction and keep them loyal to you. Offering the chance to telecommute at least part of the time can also increase productivity and save you money in terms of overheads. You will certainly save money on utilities and you may even be able to move to a smaller office space, significantly reducing your rent.

Summary

Managing your workforce effectively isn’t rocket science; it’s a careful combination of the right practices, trust and respect. Make sure to invest in the right software, ask your team for input regularly and help them to work as effectively as they can. Your business is nothing without a strong team behind it, so don’t underestimate the importance of great management.

How to Set Business Goals For 2022 (And Beyond!)

Posted on | by Jessica Weston | Leave a Comment on How to Set Business Goals For 2022 (And Beyond!)

Setting goals for your business is an important step in making sure it thrives. While some people might think this is a simple task, it can be more complicated than you may think. This guide will walk you through the process of setting goals and provide tips on how to make them actionable, achievable and measurable.

Why Are Business Goals So Important?

Business goals and objectives are important and should be established for a number of reasons.

If you don’t define what success looks like, the chances are that your business will never achieve it.

You need goals to measure growth by comparing them from year to year or month to month. If you’re not seeing the results that coincide with your expectations, then it’s either time to adjust your goals or get to the bottom of why you cannot meet them.

Goals are also important because it shows that you’re organized and have a plan in place, which is especially helpful when raising capital for growth. It lets potential investors know what milestones to expect throughout the process of investing into your business.

Goals keep you and your team focused, and provide a clear benchmark against which to measure your success. Clear goals enable you to prioritise the most important tasks and focus on the things that matter most.

Step 1: Identify Key Areas Of Focus

First things first. What are the top areas you want to focus on in your business? Of course, this depends on your unique business and industry, but some examples to consider include:

  • Improve customer service
  • Reduce costs by 10%
  • Grow sales volume by 20%
  • Be the first mover in your industry with a new product or service offering
  • Increase employee satisfaction to 75%
  • Improve customer retention rate by 5%
  • Reduce company debt and interest expense below a certain threshold, e.g. $40,000
  • Increase profit margin by 10%
  • Reduce time required for product or service production by 12%

Step 2: Set SMART Goals

In order for your goals to be effective, you need them to meet a specific criteria. They must be SMART. This means:

  • Specific  – very clear and easy-to-understand.
  • Measurable  – determined by the numbers or data.
  • Achievable – your goals must be realistic, or else you are simply setting yourself up for failure.
  • Relevant –  each goal should be pertinent and directly beneficial to your business.
  • Time-bound – the deadlines must be clear and reasonable.

“Increasing profit margins” is not a good goal because it’s far too vague. However, “increasing our profits by 10% in the next 12 months by reducing costs and increasing efficiency”  is an example of a SMART goal.

Step 3: Set a Timeline

Your goals need to have a timeframe. This is important because it helps you think about which resources are required, how much time your goals will take and what milestones must be reached along the way. For example, you won’t increase your profits by 10% overnight – it will happen in much smaller increments. Therefore, you should set milestones that will be reached along the way. For example, you might aim to increase profits by 4% by the end of Q1. Then, you can adjust your goals against real-time progress.

Step 4: Review Your Goals Regularly

It is crucial that you regularly review your goals to ensure they are still relevant and helpful. You may find that the market has changed, or that new opportunities have emerged based on customer feedback which would alter some of your original plans – this means it’s time for an update. Maintaining four or five year goals is a good idea, but you should also create one-year and quarterly plans to ensure your business stays on track.

Step 5: Accurately Track Your Goals

You cannot measure progress unless you are measuring against something specific – that’s where SMART goals come in. You need to establish metrics and benchmarks against which you can measure your progress. This way, it’s easier for everyone to see whether they’re on track towards achieving the goal and when adjustments need to be made.

Final Thoughts

Clear goals provide a clear direction for your business and keep everyone on the same page, working towards achieving something that is meaningful and beneficial to all. They can be used as an effective tool when pitching to investors or potential partners to give an idea of how the business will progress over time.

No matter how well your business is doing, there are always areas for improvement and new heights to reach. Setting goals is the first step on the journey to success..

Four Steps to a Successful Profitability Analysis

Posted on | by Jessica Weston | Leave a Comment on Four Steps to a Successful Profitability Analysis

Are you uncertain about the level of success you achieved? There’s a quick way to get an overview of your finances.

Not enough companies run a profitability analysis – a defining indicator of profit. Such an analysis relates to costs and overall revenue and it can provide insights into how a business runs.

The occasional analysis can also indicate if it’s time to make some changes. 

Maybe some clients require too much time for the money. Perhaps there are other opportunities around the corner that you can jump on.

Either way, it should be on your list of tasks if you want to ensure long-term business growth. And here’s a simple blueprint to follow for a successful profitability analysis.

Step #1. Calculate Margins

Two of the most important variables in a profitability analysis are gross and net profit margins.

You can get the gross profit margin by knowing your sales revenue minus the cost of labour.

For the net profit margin, you must subtract all expenses from your revenue to get the magic number – the margin – and then divide the previous result by your revenue

Don’t forget to look at the segment profits, too. 

Odds are you offer a suite of services that each has its own revenue stream. Take the numbers for each segment, subtract the costs, and include overheads in your calculation.

If you do this, you get a more detailed insight into how money moves in your business.

Step #2. Perform Client Valuation

Here, you must look at each client and figure out how much each of them brings.

Performing a client valuation essentially means to determine the worth of each client. So, subtract from the revenue all of your costs, such as marketing, hourly labour, travel expenses, and so on.

After all, you want to find out the costs of keeping each client satisfied. 

Some clients may not pay a lot for your services. But you may have a better profit margin with them if their projects take very little time from you or your team.

Maybe you have good cash flow. But it’s possible that when you draw the line, there’s not a lot of profit in it.

Step #3. Look at the Past Numbers

A thorough profitability analysis looks at past quarters over the years.

Why?

Although your current numbers may look good on paper, you need something to compare them to if you want to know where you stand.

Step #4. Benchmark Industry Ratios

Your numbers only mean something in the context of your niche. It’s because profitability numbers aren’t the same in accounting as in health care, education, e-commerce, etc.

If you look at your past and current numbers, you can figure out your business’s progress so far. But what about compared to your competitors?

What about your position in relation to the market?

Always be sure to check average industry ratios to give you a better sense of where your company is as opposed to where it should be.

Do It for Peace of Mind and Direction

A good profitability analysis can help curb anxiety when it comes to your business. At the same time, it can tell you what you should be doing to improve and grow it.

If you ever find your business lacking direction, remember that an analysis can help you spot issues that you couldn’t otherwise. 

It’s a game changer.