by Monica Peña | Aug 10, 2022 | Business Tips
By Alison Flangel
Owning a small business requires help and cooperation from the people we chose to surround ourselves with … which means the teams we build must be strong ones. Employees should lift you up and contribute positively to your business, which in turn creates a healthy work environment.
How to build a great team for your small business:
- Create and explain your business vision
Before you make the decision to hire employees, it is important to communicate your goals and what you are aiming for within your company. Some components of a vision include: the type of culture you want to build, your future plans, and the environment of customers you hope to cater to. By explaining your vision to potential employees, you will get a sense of which individuals are the right fit for your business. - Define roles clearly
Once you have made the decision on individuals you want to hire as employees, it is essential to determine each person’s strengths and weaknesses. By doing so, roles will naturally be defined. As a small business owner it is important to constantly remind employees of the roles they are assigned to, in order to make sure work is effectively done. If roles are not clearly defined, progress and efficiency will be affected. - Implement team-building exercises into your routine
Small businesses often hinder fast-paced work environments, which means that your team must work fluidly. Team-building exercises can oftentimes help employees bond and get to know eachother better, which equates to becoming more effective in the business setting. Examine your employees to determine what type of bonding exercise would be most beneficial; paintball, go-karting, yoga class, etc… Something low budget such as providing drinks and snacks on a Friday afternoon can also work very well. - Identify problems head-on
As much as problems can be avoided, there is no doubt you will run into issues with employees. In this type of situation, you must carefully address the situation, because oftentimes problems can arise when someone is having crises arise in their personal life. Other times employees just may not be the best fit for your company. Firing someone should be a last resort, although make sure to follow local legislation if you make this decision.
by Monica Peña | Aug 10, 2022 | Business Tips
By Alison Flangel
Being the owner of a small business is often compared to being the parent to a child … small businesses are close to the heart. This being said, an effective business owner must learn how to delegate their responsibilities to other employees in order to run a successful company.
How to Delegate Responsibilities as a Small Business Owner:
- Determine which parts of the business you would rather not do –
No one loves doing every part of their job equally. Sometimes there are things that we do not enjoy, or are not one of our strong suits. If there are things you find yourself avoiding as a business owner, it could be something to consider delegating to others. For example, if you are not the best with technology, consider leaving social media posts to a colleague. - Choose whom you delegate to wisely –
Similarly to how we don’t enjoy doing every aspect of a job, each individual within a business has various strengths and weaknesses. It is important to take the time to learn about your employees skill sets before you delegate tasks. As a business owner, your priority should be setting up your employees for success. Trust is key! - Define expectations clearly –
In order to ensure a job is well done by an individual other than yourself, clear expectations and mutual understanding is necessary. Business owners are responsible for explicitly explaining to employees how they want a task to be completed, with an outline of each step in the process. - Don’t forget to praise hard work –
While this may sound elementary, acknowledging someone’s hard work, especially when it is your employee, goes a long way. Making a conscious effort to communicate with your employees and remind them they are doing a good job can make individuals feel appreciated, and gain respect for the importance of the task.
by Monica Peña | Aug 10, 2022 | Business Tips
By Alison Flangel
The people we surround ourselves with can either bring us up or drag us down – this goes for employees too! As a small business owner it is important to be selective as you are hiring staff, as these are the people you are trusting to help run your business. Here are some tips on what to look for when hiring your own employees …
- It is essential to clearly define your job descriptions before you even look for individuals to hire. Things to include are:duties, responsibilities, necessary skills, outcomes, and the work environment of a particular role. If the job description is true to your expectations, it will be much easier to find someone who is fit for the job.
- Creating a checklist can be an effective way to narrow down the hiring process. A checklist can include the aspects of a new hire that you feel are essential for decision making. A checklist for hiring employees also keeps your efforts on track by communication progress to interested employees.
- The search for new employees can involve a lot of resumes, cover letters, and applications. It is important to closely analyze all materials in order to make an informed decision regarding new hires. Consider screening all applicants against a list of qualifications, skills, and characteristics.
- When you ultimately get to the interview stage of the hiring process, as a business owner you are responsible for asking the right job interview questions. The questions that you ask individuals during an interview are critical in helping you to hire the right employee. Questions you ask should target an individual’s character, experience, and
knowledge. - While the line between business and personal life can sometimes be thin, it is important to check backgrounds and references when hiring new employees. As a business owner, you need to ensure that employees’ previous experiences and credentials are legitimate and verified. Background checks should include work references, criminal history, etc…
by Monica Peña | Aug 10, 2022 | Business Tips
By Alison Flangel
As a small business owner, apps are a great resource to manage various aspects of your business. With thousands of apps available at our fingertips, it can be hard to determine which are actually helpful. Below are some apps to consider using if you own a small business.
- Microsoft 365
Microsoft 365 is one of the best, if not the best, office software app out there. Previously only available as a software program on a PC computer, Microsoft has rebranded to make this application now available for Android and iOS mobile devices. Within the Microsoft 365 app are 3 essential office software programs that you can use: Word, Excel, and Powerpoint. Word can be used to create written documents of all sorts, which will likely be used daily within your business. Excel and Powerpoint are slightly more niche, although also extremely useful. Excel can help the organization of your business by creating spreadsheets, and Powerpoint can assist you in the making of presentations. Microsoft 365 is a must for small business owners, as it is universally used by the majority of the world. - Quickbooks Online
Quickbooks online is one of the most powerful business tools available in the new age of technology. Whether you are looking to convert tax accounting to payroll, organize inventory management, or analyze profit, quickbooks can do it all (depending on the version that you pay for!). Quickbooks has various versions and price points that cater to small businesses needs. Now available as a mobile accounting app, you can create invoices, track and manage expenses, and more on your mobile phone. - SOS Inventory
SOS Inventory is an app that helps you manage everything manufacturing; inventory tracking, order management, and more. With this app, you can manage all of your inventory from multiple business locations, track your items, and create tickets and packing slips. The mobile app is free with a software subscription, although plans for the software start at $39.95 per month. - Square
If you are a small business owner who owns a retail location, you have likely heard of Square. Square is the largest Point of Sale (POS) provider that has changed how businesses process credit card transactions. Square offers various software and hardware solutions, with the most basic version you only pay 2.6% + $0.10 for every in-person payment that you accept. Square is clean and professional, and guaranteed to make credit card payments easy for your customers. - Gusto
Gusto is a full-service payroll and human resource application, available on a desktop computer or mobile device. Gusto allows you to manage payroll, benefits, and compliance for your employees. Additionally, you can calculate and file payroll taxes, and track vacation/sick time on the app. Gusto is currently available via a monthly subscription, with the base plan starting at $39 per month. The cost is worth it for the effortless organization that Gusto provides.
by Monica Peña | Aug 10, 2022 | Business Tips
By Shamitha Ramanan
Operating costs are any expenses that are required for the day-to-day maintenance and administration of your business. Commonly referred to as “overhead,” these essential business costs include electricity, payroll, and office leases. Businesses can cut wasteful expenditure and save costs by routinely reviewing operating expenses.
The cost of products sold is one of the main elements of operational costs (COGS). The direct expenses incurred in manufacturing the products or services offered by your company are known as COGS, Cost of Goods Sold.
Operating cost ratios
The operational income and operating expense ratio are the two most crucial pieces of information you may gather from operating costs.
Operating income
The total profit generated by the operations of your business is known as operating income. Operating income is calculated using the following formula:
Operating Income = Total Revenues – Operating Costs
Operating expense ratio
On the other side, the operating expense ratio does suggest financial soundness. No matter how big or small your firm is, it is simpler to compare yourself to others in your field when efficiency is expressed as a percentage.
By directly comparing your expenses to your income, operating expense ratios (OER) allow you to monitor your efficiency. OER’s equation is as follows:
Operating Expense Ratio = Operating Costs ÷ Total Revenues
